On January 25, 2019, Orchids Paper Products Company entered into Amendment No. 11 to its Second Amended and Restated Credit Agreement dated June 25, 2015 by and among the company, Black Diamond Commercial Finance, L.L.C., as successor to U.S. Bank National Association, and Orchids Investment LLC, as successor to the lenders party thereto. The Credit Agreement Amendment, among other things, waives any existing non-compliance by the company with any covenant under the Credit Agreement; sets the commitment fee rate at 3.55% and the base rate at 13.5%, in each case regardless of the then-current Leverage Ratio (as defined in the Credit Agreement), and provides that all outstanding loans under the Credit Agreement shall be converted to, and any revolving loans made in the future shall, bear interest at the base rate; defers future interest and principal payments until May 1, 2019; extends until March 1, 2019 the deadline for the company to deliver either (a) an executed purchase agreement for the sale of the company’s equity or assets or (b) a binding commitment from institutional lenders to refinance the company’s debt obligations, in either case in an amount sufficient to repay the company’s debt obligations to its existing lenders in full, and extends until May 1, 2019 the deadline for the company to consummate such transaction; eliminates the obligation of the Lender to issue any letters of credit to the Company; provides that the company will not permit Net Cash Flow (as defined in the Credit Agreement) for any week to be more than 10% less than the projected Net Cash Flow as set forth in the cash flow forecast that includes such week; and amends certain reporting and forecast requirements. There can be no assurance that the company will be able to consummate any sale, transaction, or refinancing on terms that are satisfactory to it, or at all. Fees of approximately $1.9 million will be paid to the lenders and administrative agent in connection with the Credit Agreement Amendment and the NMTC Loan Agreement.