Document:

<PAGE>
                                                                    EXHIBIT 10.2

Effective October 30,2002, the agreement between PVI and Roberto Sonabend
regarding Mr. Sonabend's service as interim co-Chief Executive Officer of PVI
was amended to provide that the options to purchase shares of PVI common stock
which were to be granted at the rate of 10,000 shares for each calendar month in
which he serves as interim co-Chief Executive Officer through May 8, 2003,
(subject to pro-ration for any shorter period) were granted as of October 30,
2002, subject to vesting at the rate of 10,000 shares for each calendar month
(subject to pro-ration for any shorter period) in which he serves as interim
co-Chief Executive Officer through May 8, 2003.SECOND AMENDMENT TO
                     REVOLVING CREDIT AND SECURITY AGREEMENT

         THIS SECOND AMENDMENT TO REVOLVING CREDIT AND SECURITY AGREEMENT
("Amendment"), dated as of September __, 2002, is by and between BADGER PAPER
MILLS, INC., a corporation organized under the laws of the State of Wisconsin
("Borrower") and PNC BANK, NATIONAL ASSOCIATION ("PNC") as sole Lender and as
Agent under the Credit Agreement referred to below.

                               W I T N E S E T H:

         WHEREAS, PNC and Borrower entered into a certain Revolving Credit and
Security Agreement, dated as of November 30, 2001, as amended by a First
Amendment to Revolving Credit and Security Agreement, dated as of April 30, 2002
(the "Credit Agreement");

         WHEREAS, Borrower has requested that the Credit Agreement be amended as
set forth herein;

         NOW, THEREFORE, in consideration of the terms and conditions contained
herein, the parties hereto agree as follows:

         1. DEFINITIONS. All capitalized terms used herein and not otherwise
defined shall have the meanings provided for in the Credit Agreement.

         2. AMENDMENT. Subject to satisfaction of the conditions precedent set
forth in Section 3 below, the Credit Agreement is hereby amended as follows:

                  "Life Insurance Assignments" shall mean, collectively, (i) the
         Assignment of Policy as Collateral Security, signed November 30, 2001,
         by Borrower in favor of Wisconsin Business Bank with respect to
         Transamerica Occidental Life Insurance Company ("Transamerica") policy
         number 41974199 on the life of William H. Peters in the face amount of
         $500,000, (ii) the Assignment of Policy as Collateral Security, signed
         January 8, 2002, by Borrower in favor of Wisconsin Business Bank with
         respect to Transamerica policy number 41976461 on the life of Michael
         J. Bekes in the face amount of $500,000, and (iii) the Assignment of
         Policy as Collateral Security, signed April 16, 2002, by Borrower in
         favor of Wisconsin Business Bank with respect to Transamerica policy
         number 42002782 on the life of Robert A. Olah in the face amount of
         $2,000,000."

                  2.1 Section 1.2 of the Credit Agreement is hereby amended by
         restating the definition of Wisconsin Business Bank Loan contained
         therein in its entirety to read as follows:

<PAGE>

                           "Wisconsin Business Bank Loan" shall mean,
                  collectively, the term loan from Wisconsin Business Bank to
                  Borrower in the original principal amount of $5,000,000 and
                  the term loan from the Wisconsin Business Bank to Borrower in
                  the original principal amount of $2,000,000, each made
                  pursuant to the Wisconsin Business Bank Loan Documents."

                  2.2 Section 1.2 of the Credit Agreement is hereby amended by
         restating the definition of Wisconsin Business Bank Loan Documents
         contained therein in its entirety to read as follows:

                           "Wisconsin Business Bank Loan Documents" shall mean
                  the Business Loan Agreement, dated as of November 30, 2001,
                  between Wisconsin Business Bank and Borrower, the Amendment to
                  Business Loan Agreement and Related Documents, dated as of
                  November 30, 2001, between Wisconsin Business Bank and
                  Borrower, the Second Amendment to Business Loan Agreement and
                  Related Documents, dated as of September __, 2002, between
                  Wisconsin Business Bank and Borrower, the Promissory Note,
                  dated November 30, 2001, issued by Borrower to the Wisconsin
                  Business Bank in the principal amount of $5,000,000, the
                  Promissory Note, dated September __, 2002, issued by Borrower
                  to Wisconsin Business Bank in the principal amount of
                  $2,000,000, the Commercial Security Agreement, dated November
                  30, 2001, by Borrower in favor of Wisconsin Business Bank, the
                  Mortgage, dated November 30, 2001, by Borrower in favor of
                  Wisconsin Business Bank, the Mortgage, dated September __,
                  2002, by Borrower in favor of Wisconsin Business Bank and the
                  Life Insurance Assignments."

         3. CONDITIONS PRECEDENT. This Amendment shall become effective upon the
delivery to Agent of executed counterparts of this Amendment and the following
additional items:

         a.       Executed copies of the Second Amendment to Business Loan
                  Agreement and Related Documents, dated as of August 15, 2002,
                  between Wisconsin Business Bank and Borrower, the Promissory
                  Note, dated August 15, 2002, issued by Borrower to Wisconsin
                  Business Bank in the principal amount of $2,000,000 and the
                  Mortgage, dated August 15, 2002, by Borrower in favor of
                  Wisconsin Business Bank; and

         b.       Such other items as Agent may reasonably request.

                                       2
<PAGE>

         4. EXPENSES. Borrower shall pay, upon demand, all reasonable attorneys'
fees and out-of-pocket costs of Agent and Lender in connection with this
Amendment and the agreements, documents and other items contemplated hereunder.

         5. REAFFIRMATION OF GRANT OF SECURITY INTEREST. Borrower expressly
acknowledges and agrees that all collateral, security interests, liens, pledges
and mortgages heretofore, under this Amendment or hereafter granted to Agent
including, without limitation, such collateral, security interests, liens,
pledges and mortgages granted under the Credit Agreement and the Other Documents
and all supplements thereto, extend to and secure all of the obligations of
Borrower to Agent and Lenders, now existing or hereafter arising including,
without limitation, those arising in connection with the Credit Agreement, as
amended by this Amendment, upon the terms set forth in such agreements, all of
which security interests, liens, pledges and mortgages are hereby ratified,
reaffirmed, continued and approved.

         6. MISCELLANEOUS.

                  6.1 Limited Nature of Amendment. The parties hereto
         acknowledge and agree that the terms and provisions of this Amendment
         amend, add to and constitute a part of the Credit Agreement. Except as
         expressly waived or modified and amended by the terms of this
         Amendment, all of the other tents and conditions of the Credit
         Agreement and all documents executed in connection therewith or
         referred to or incorporated therein remain in full force and effect and
         are hereby ratified, reaffirmed, confirmed and approved.

                  6.2 Conflict. If there is an express conflict between the
         terms of this Amendment and the terms of the Credit Agreement, or any
         of the other agreements or documents executed in connection therewith
         or referred to or incorporated therein, the terms of this Amendment
         shall govern and control.

                  6.3 Counterpart. This Amendment may be executed in one or more
         counterparts, each of which shall be deemed to be an original.

                  6.4 Representations and Warranties. Borrower represents and
         warrants to Agent and Lenders as follows: (A) Borrower has all
         necessary corporate power and authority to execute and deliver this
         Amendment and perform its obligations hereunder, (B) this Amendment and
         the Credit Agreement, as amended hereby, constitute the legal, valid
         and binding obligations of Borrower and are enforceable against
         Borrower in accordance with their terms; and (C) all representations
         and warranties of Borrower contained in the Credit Agreement arid all
         other agreements, instruments and other writings relating thereto are
         true and complete as of the date hereof.

                  6.5 Governing Law. This Agreement was executed and delivered
         in Chicago, Illinois and shall be governed by and construed in
         accordance with the internal laws (as opposed to conflicts of law
         provisions) of the State of Illinois.

                                       3
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the day and year first above written.

                                      BADGER PAPER MILLS, INC

                                      By:  /s/ William H. Peters
                                      --------------------------------
                                      Name:  William H. Peters
                                      Title:  V.P. C.F.O.

                                      PNC BANK, NATIONAL ASSOCIATION,
                                      as Agent and Lender

                                      By:  /s/ Sherry B. Winick
                                      --------------------------------
                                      Name:  Sherry B. Winick
                                      Title:  Vice President

                                       4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]