**Exhibit 10.3**

 

**EXECUTION COPY**

 

**FIRST AMENDMENTTO THE CREDIT AGREEMENT**

**dated as of June 27, 2007**

 

*Among*

 

**CASCADES INC.****CASCADES USA INC.CASCADES EUROPE SASCASCADES ARNSBERG GMBH**(*as Borrowers*)

 

- *and* –

 

**SCOTIA CAPITAL**(*as Sole Lead Arranger fortheUnsecured Revolving Facilityreferred to herein*)

 

- *and* –

 

**NATIONAL BANK OF CANADATHE BANK OF NOVA SCOTIA**(*as Co-AdministrativeAgents*)

 

- *and* –

 

**THE LENDERSFROM TIME TO TIME PARTY HERETO**

 

**MCCARTHY TÉTRAULT LLP**

 

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**FIRST AMENDMENT****TO THE DECEMBER 29, 2006 CASCADES CREDITAGREEMENT** made as of June 27, 2007.

 
| **BETWEEN:**   | ** ** | **CASCADES INC.** (“Cascades”)                                   |
|----------------|------------|----------------------------------------------------------------------------|
| ** **     | ** ** | ** **                                                                 |
| **AND :** | ** ** | **CASCADES USA INC.**                                                      |
| ** **     | ** ** | ** **                                                                 |
| **AND :** | ** ** | **CASCADES EUROPE SAS**                                                    |
| ** **     | ** ** | ** **                                                                 |
| **AND:**       | ** ** | **CASCADES  ARNSBERG GMBH**                                                |
| ** **     | ** ** | ** **                                                                 |
| ** **     | ** ** | (each a  “Borrower” and collectively, the “Borrowers”) |
| ** **     | ** ** | ** **                                                                 |
| **AND:**       | ** ** | **THE  LENDERS PARTY TO THE CREDIT AGREEMENT REFERRED TO BELOW**           |
| ** **     | ** ** | ** **                                                                 |
| ** **     | ** ** | (each a  “Lender” and collectively the “Lenders”)      |
| ** **     | ** ** | ** **                                                                 |
| **AND:**       | ** ** | **THE  BANK OF NOVA SCOTIA**                                               |
| ** **     | ** ** | ** **                                                                 |
| ** **     | ** ** | (as “Agent”)                                                     |
| ** **     | ** ** |                                                                       |
| **AND:**       | ** ** | **NATIONAL  BANK OF CANADA**                                               |
| ** **     | ** ** | ** **                                                                 |
| ** **     | ** ** | (as  “Co-Agent”)                                                 |

 

**RECITALS**

 

A.                                   TheBorrowers, the Agent, the Co-Agent and the Lenders are party to a creditagreement dated as of December 29, 2006 (the “Credit Agreement”) providingfor credit facilities in an aggregate amount of $850,000,000 (the “Facilities”).

 

B.                                     TheFacilities were comprised of the Revolving Facility (in an aggregate amount of$650,000,000 and available to all Borrowers), the Additional Revolving Facility(in an aggregate amount of $100,000,000 and available to Cascades only) and theTerm Loan (in an amount of $100,000,000 and available to Cascades only).

 

C.                                     Inaccordance with Section 2.3 (c) of the Credit Agreement, Cascadestransferred as of June 18, 2007 the Commitment and the outstandingBorrowings under the Additional Revolving Facility to Tranche A of theRevolving Facility, thereby increasing the Revolving Facility by $100,000,000and terminating the Additional Revolving Facility.

 

D.                                    Cascadeshas requested that another revolving facility in an aggregate amount of$100,000,000 be made available to it under the Credit Agreement and that suchother revolving facility be not secured by the Security.

 

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E.                                      Theparties wish to amend the Credit Agreement in order to (i) provide forsuch additional unsecured revolving facility and (ii) make otherconsequential amendments.

 

**NOW, THEREFORE, THEPARTIES AGREE AS FOLLOWS:**

 

**1.****                                      Interpretation**

** **

1.1                                             Capitalized terms used herein and defined in the Credit Agreementhave the meanings ascribed to them in the Credit Agreement unless otherwisedefined herein.

 

1.2                                             This Agreement may be referred to as the First Amendment to the December 29,2006 Cascades Credit Agreement.

 

1.3                                             Any reference to the Credit Agreement in any Credit Document refersto the Credit Agreement as amended hereby.

 

**2.****                                      Amendments to the Credit Agreement**

** **

2.1                                             Section 1.1 of the Credit Agreement is amended by adding thefollowing definition of “Brampton Lease” after the definition of “Borrowings”:

 

“**Brampton Lease**” has the meaning given to such term in Section 10.3(c);”

 

2.2                                             Section 1.1 of the Credit Agreement is amended by deleting thedefinition of “Facilities” and replacing it with the following:

 

“**Facilities**”means the Revolving Facility, the Unsecured Revolving Facility and the TermLoan;”

 

2.3                                             Section 1.1 of the Credit Agreement is amended by adding thefollowing definition of “Unsecured Revolving Facility” after the definition of “Transaction”:

 

“**Unsecured RevolvingFacility**” means the unsecured revolving facility made available toCascades pursuant to Section 2.3;”

 

2.4                                             Section 1.1 of the Credit Agreement is amended by adding thefollowing definition of “Unsecured Revolving Facility Maturity Date” after thedefinition of “Unsecured Revolving Facility”:

 

“**Unsecured Revolving Facility Maturity Date**” means June 25,2008;”

 

2.5                                             Article 2 of the Credit Agreement is amended by replacing Section 2.3with the following:

 

**“2.3    The Unsecured RevolvingFacility**

 

a)                          The Lenders, individually and not solidarily (i.e. not jointly andseverally) agree to make available to Cascades an unsecured revolving facility(the 

 

3

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“Unsecured Revolving Facility”) in an aggregate amountat any time not exceeding the total of the Commitments at such time withrespect to the Unsecured Revolving Facility. As of the date hereof, theCommitment of each Lender under the Unsecured Revolving Facility as specifiedbelow opposite its name and the collective Commitments of the Lenders withrespect to the Unsecured Revolving Facility will aggregate to $100,000,000.

 
| **Name of Lender**                           | ** ** | **Commitment** | ** **     |
|--------------------------------------------------------|------------|----------------|----------------|
| ** **                                             | ** ** | ** **     | ** **     |
| The Bank of Nova Scotia                                |       | $              | 13,925,000.00  |   |
|                                                   |       |           |           |
| National Bank of Canada                                |       | $              | 11,765,000.00  |   |
|                                                   |       |           |           |
| Canadian Imperial Bank of Commerce                     |       | $              | 11,765,000.00  |   |
|                                                   |       |           |           |
| Caisse de dépôt et placement  du Québec |       | $              | 9,412,000.00   |   |
|                                                   |       |           |           |
| Caisse centrale Desjardins                             |       | $              | 9,742,000.00   |   |
|                                                   |       |           |           |
| The Toronto-Dominion Bank                              |       | $              | 5,882,000.00   |   |
|                                                   |       |           |           |
| Bank of Montreal                                       |       | $              | 5,882,000.00   |   |
|                                                   |       |           |           |
| BNP Paribas (Canada)                                   |       | $              | 6,570,000.00   |   |
|                                                   |       |           |           |
| Royal Bank of Canada                                   |       | $              | 4,118,000.00   |   |
|                                                   |       |           |           |
| Deutsche Bank AG, Canada Bank                          |       | $              | 2,941,000,00   |   |
|                                                   |       |           |           |
| JPMorgan Chase Bank, N.A., Toronto Branch              |       | $              | 2,941,000,00   |   |
|                                                   |       |           |           |
| Société Générale (Canada Branch)   |       | $              | 2,941,000,00   |   |
|                                                   |       |           |           |
| Wachovia Capital Finance Corporation (Canada)          |       | $              | 2,353,000.00   |   |
|                                                   |       |           |           |
| Citibank, N.A., Canadian Branch                        |       | $              | 2,353,000.00   |   |
|                                                   |       |           |           |
| Bank of America, N.A., Canada Branch                   |       | $              | 4,361,000.00   |   |
|                                                   |       |           |           |
| Rabobank Nederland, Canadian Branch                    |       | $              | 3,049,000.00   |   |
|                                                   |       |           |           |
| Total                                                  |       | $              | 100,000,000.00 |   |

 

4

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b)                         Borrowings under the Unsecured Revolving Facility may be obtainedonly to the extent that there is no availability (taking into account BorrowingBase requirements) under the Revolving Facility at the time such Borrowings arerequested.”

 

2.6                                 Sections 2.5, 2.7, 2.9, 6.4, 7.3, 10.2, 10.3 and 10.4 of the CreditAgreement are amended by replacing the term “Additional Revolving Facility”with “Unsecured RevolvingFacility.”

 

For greater certainty, it isunderstood and agreed that the Unsecured Revolving Facility will not be securedby the Security to be granted pursuant to Sections 10.2, 10.3 and 10.4 of theCredit Agreement.

 

2.7                                 Section 7.1 (b) of the Credit Agreement is deleted in itsentirety and replaced with the following:

 

“(b)               Cascadesmust repay in full the outstanding Borrowings and pay all other amounts owingunder the Unsecured Revolving Facility on the Unsecured Revolving FacilityMaturity Date.”

 

2.8                                 Section 10.3 of the Credit Agreement is amended by deleting inits entirety paragraph (c) and replacing it with the following paragraph :

 

“(c)                Afterthe date hereof, Cascades will have the option, but not the obligation, toincrease the Series 1 Charged Fixed Assets component of the Borrowing Baseby providing, or causing Designated Subsidiaries to provide, security over (i) therights of Dopaco Canada, Inc. as lessee under the terms of a lease (the “BramptonLease”) for a property located at 46-60 Hale Road, Brampton, Ontario togetherwith related assets and (ii) other fixed assets acceptable to the MajorityLenders by an amount equal to the market value of such assets or rights asdetermined by a valuation report to be furnished to the Agent and the Co-Agentprior to the grant of the related security.”

 

5

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2.9                                 Section 10.3 of the Credit Agreement is amended by adding thefollowing paragraph (g) in Section 10.3 :

 

“(g)               If,at any time after the granting of security by Dopaco Canada, Inc. over itsrights under the Brampton Lease and related assets as contemplated in paragraph(c) above, the Brampton Lease is terminated or is not renewed, the marketvalue attributable to the Brampton Lease will no longer be included in the Series 1Charged Fixed Assets component of the Borrowing Base.”

 

2.10                           The following Section 10.11 is added to the Credit Agreement :

 

“Notwithstanding Section 10.8 of theCredit Agreement, the Borrowers undertake to deliver (i) a surveyor’sreport by no later than August 15, 2007 with respect to the propertysituated in London, Ontario to form part of the Series 1 Charged FixedAssets and (ii) a certificate of location by no later than September 30,2007 with respect to the property situated in Cabano, Québec to form part ofthe Series 2 Charged Fixed Assets.”

 

2.11                           Section 15.4 of the Credit Agreement is deleted in its entiretyand replaced by the following :

 

“15.4                         **Reportingfrom Time to Time**

 

The Borrowers will promptly notify the Agentof any Default and deliver to the Agent any auditor letter highlighting issuesor deficiencies that, if not addressed or corrected, could reasonably result ina Material Adverse Change. The Borrowers will also promptly notify the Agent ofany breach or default under the Brampton Lease or any termination (ornon-renewal) notice under such Brampton Lease. The Borrowers will also furnishthe Agent all information, documents and records and allow any enquiry, study,audit or inspection that the Agent may reasonably request in connection withthe business, financial condition, property, assets or prospects of the CreditParties, or to verify compliance with the obligations of any of the Credit Partiesunder any Credit Document.”

 

2.12                           Schedule “A” of the Credit Agreement is amended by replacing thegrid applicable to the Additional Revolving Facility with the following grid:

 
| “Unsecured  Revolving Facility |
|-------------------------------------|
| ** **                          | ** ** | ** ** | ** ** | ** ** | ** ** |
| **Prime/US Base**              | ** ** | **Acceptance Fee /Libor** | ** ** | **Stand-By Fee** | ** ** |
| 0                                   |   | 100 bps |   | 25 bps |   |

 

and is furtheramended by replacing the term “Additional Revolving Facility” in Section 6with the term “Unsecured Revolving Facility”.

 

6

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** **

**3.****                                      Conditions Precedent**

** **

Prior to or concurrently upon the executionof this Agreement, each of the Borrowers must have delivered to the Lenders acopy of the corporate resolutions and other documents evidencing the authorityof the persons herein acting on behalf of such Borrower.

 

**4.****                                      Confirmation**

** **

Each of the Borrowers represent to theAgent and the Lenders that this Agreement will not result in any Default orEvent of Default.

 

**5.****                                      Fees and Expenses**

** **

5.1                                             On the date this agreement becomes effective pursuant to Section 8, Cascades must pay to each Lender who has a Commitment in respectof the Unsecured Revolving Facility:

 

a)                                a fee equal to 10 bps on such Lender’s Commitment under theUnsecured Revolving Facility; and

 

b)                               an additional fee equal to 2.5 bps on such Lender’s Commitment underthe Unsecured Revolving Facility, if any, which is in excess of the amountobtained by multiplying the aggregate amount of the Unsecured RevolvingFacility by such Lender’s share (expressed as a percentage) of all otherFacilities.

 

5.2                                             The Borrowers agree to pay on demand all reasonable costs andexpenses of the Agent in connection with the preparation, execution,delivery and implementation and administration of this Agreement including thereasonable fees and expenses of counsel for the Agent.

 

**6.****                                      Counterparts**

** **

This Agreement may be executed in anynumber of counterparts and by different parties hereto in separatecounterparts, each of which when so executed and delivered will be deemed to bean original and all of which taken together will constitute but one and thesame agreement. Delivery of an executed counterpart of a signature page tothis Agreement by telecopier will be effective as delivery of a manuallyexecuted counterpart of this Agreement.

 

**7.****                                      Governing Law**

** **

This Agreement is governed by, andconstrued in accordance with, the laws of the Province of Quebec and ofthe laws of Canada applicable therein.

 

**8.****                                      Effectiveness**

** **

This Agreement will be effective as of thedate on which the Agent confirms to the Borrowers and the Lenders that thisAgreement has been executed by all parties hereto.

 

7

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**IN WITNESS WHEREOF** the parties have caused this Agreement to be duly executed as ofthe date and year first above written.

 

 
| ** ** | **Cascades  Inc.**                                               |
|------------|------------------------------------------------------------------|
|       |                                                             |   |
|       | per:                                                             | (s) Alain Lemaire  President & Chief Executive Officer |
|       |                                                             |   |
|       | per:                                                             | (s) Laurent Lemaire  Executive Vice-Chairman |
|       |                                                             |   |
|       |                                                             |   |
| ** ** | **Cascades  USA Inc.**                                           |
|       |                                                             |   |
|       | per:                                                             | (s) Alain Lemaire |
|       |                                                             |   |
|       |                                                             |   |
| ** ** | **Cascades  Europe SAS**                                         |
|       |                                                             |   |
|       | per:                                                             | (s) Alain Lemaire |
|       |                                                             |   |
|       |                                                             |   |
| ** ** | **Cascades  Arnsberg GmbH**                                      |
|       |                                                             |   |
|       | per:                                                             | (s) Alain Lemaire |
|       |                                                             |   |
|       |                                                             |   |
| ** ** | **The  Bank of Nova Scotia,**as Agent                            |
| ** ** | ** **                                                       |
| ** ** | ** **                                                       | ** ** |
|       | per:                                                             | (s) Robert Boomhour  Director |
|       |                                                             |   |
|       |                                                             |   |
|       | **National  Bank of Canada**, as Co-Agent                        |
|       |                                                             |   |
|       | per:                                                             | (s) Roch Ledoux |
|       |                                                             |   |
|       | per:                                                             | (s) Dominic Albanese |
|       |                                                             |   |
|       | (the names  and signatures of the Lenders are  on the next page) |

 

 

**[Signaturepage – First Amending Agreement]**

 

8

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|   | **National Bank of Canada**                                                                       |
|--------|---------------------------------------------------------------------------------------------------|
|   | ** **                                                                                        |
|   | per :                                                                                        | (s) Roch Ledoux |
|   |                                                                                              |   |
|   | per:                                                                                              | (s) Dominic Albanese |
|   |                                                                                              |   |
|   | **National Bank of Canada**, New York Branch                                                      |
|   | (in respect of Tranche B)                                                                         |
|   |                                                                                              |
|   | per :                                                                                        | (s) Jeffrey Forgach |
|   |                                                                                              | Assistant Vice President |
|   |                                                                                              | Cross Border Financing Group |
|   |                                                                                              |   |
|   | per:                                                                                              | (s) Vincent Lima |
|   |                                                                                              | Vice President |
|   |                                                                                              | Cross Border Financing Group |
|   |                                                                                              |   |
|   | **The Bank of Nova Scotia**                                                                       |
|   | ** **                                                                                        |
|   | per :                                                                                        | (s) François De Broux |
|   |                                                                                              |   |
|   | per:                                                                                              | (s) David Loewen |
|   |                                                                                              |   |
|   |                                                                                              |   |
|   | **The Bank of Nova Scotia**, Atlanta Agency (in  respect of Tranche B)                       |
|   | ** **                                                                                        |
|   | per:                                                                                              | (s) J.P. Todd, Managing Director |
|   |                                                                                              |   |
|   |                                                                                              |   |
|   | **Canadian Imperial Bank of Commerce**                                                            |
|   | ** **                                                                                        |
|   | per :                                                                                        | (s) Peter Rawlins, Director |
|   |                                                                                              |   |
|   | per:                                                                                              | (s) Mark Chandler, Executive Director |
|   |                                                                                              |   |
|   | **CIBC Inc.**, as designated Lender pursuant to  Section 20.5 with respect to Tranche B |
|   | ** **                                                                                        |
|   | per :                                                                                        | (s) Dominic Soresso |

 

 

**[Signaturepage – First Amending Agreement]**

 

9

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|   | **Caisse de depôt et  placement du Québec**                                                                         |
|--------|-------------------------------------------------------------------------------------------------------------------------------|
|   | ** **                                                                                                                    | ** ** |
|   | per:                                                                                                                          | (s) Jean-Pierre Jetté, Manager |
|   |                                                                                                                          |   |
|   | per:                                                                                                                          | (s) Diane Favreau, Vice President |
|   |                                                                                                                          |   |
|   |                                                                                                                          |   |
|   | **Caisse centrale Desjardins**                                                                                                |
|   | ** **                                                                                                                    | ** ** |
|   | per :                                                                                                                    | (s) Francine Champoux, Vice President |
|   |                                                                                                                          |   |
|   | per:                                                                                                                          | (s) André Roy |
|   |                                                                                                                          |   |
|   | **Caisse centrale Desjardins US Branch**, as  designated Lender pursuant to Section 20.5  with respect to Tranche B |
|   | ** **                                                                                                                    | ** ** |
|   | per:                                                                                                                          | (s) Michel Brouillet, Vice President |
|   |                                                                                                                          |   |
|   |                                                                                                                          |   |
|   | **Bank of Montreal**                                                                                                          |
|   | ** **                                                                                                                    | ** ** |
|   | per :                                                                                                                    | (s) Bruno Lemay, Managing Director |
|   |                                                                                                                          |   |
|   | **Bank of Montreal**, Chicago Branch                                                                                          |
|   | (in respect of Tranche B)                                                                                                     |
|   |                                                                                                                          |   |
|   | per :                                                                                                                    | (s) Kristina H. Burden, Vice President |
|   |                                                                                                                          |   |
|   |                                                                                                                          |   |
|   | **BNP Paribas (Canada)**                                                                                                      |
|   | ** **                                                                                                                    | ** ** |
|   | per:                                                                                                                          | (s) Frank Shaw, Managing Director |
|   | ** **                                                                                                                    | ** ** |
|   | per:                                                                                                                          | (s) Edouard Sinor, Vice President |
|   |                                                                                                                          |   |
|   | **BNP Paribas**, as designated Lender pursuant  to Section 20.5 with respect to Tranche B and  Tranche C            |
|   | ** **                                                                                                                    | ** ** |
|   | per :                                                                                                                    | (s) Monique Vialatou |
|   |                                                                                                                          | Managing Director |

 

 

**[Signaturepage – First Amending Agreement]**

 

10

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|   | **Comerica Bank**, Canada Branch                                                                                      |
|--------|-----------------------------------------------------------------------------------------------------------------------|
|   | ** **                                                                                                            | ** ** |
|   | per :                                                                                                            | (s) Omer Ahmed, Portfolio Manager |
|   | ** **                                                                                                            | ** ** |
|   | ** **                                                                                                            | ** ** |
|   | **Comerica Bank**                                                                                                     |
|   | (in respect of Tranche B and Tranche C)                                                                               |
|   |                                                                                                                  |   |
|   | per :                                                                                                            | (s) James Lentner, Vice President |
|   |                                                                                                                  |   |
|   |                                                                                                                  |   |
|   | **The Toronto-Dominion Bank**                                                                                         |
|   | ** **                                                                                                            | ** ** |
|   | per:                                                                                                                  | (s) Yves Bergeron |
|   | ** **                                                                                                            | ** ** |
|   | per:                                                                                                                  | (s) Serge Cloutier |
|   |                                                                                                                  |   |
|   | **Toronto Dominion (Texas) LLC**, as  designated Lender pursuant to Section 20.5  with respect to Tranche B |
|   | ** **                                                                                                            | ** ** |
|   | per:                                                                                                                  | (s) Ian Murray |
|   |                                                                                                                  |   |
|   |                                                                                                                  |   |
|   | **Royal Bank of Canada**                                                                                              |
|   | ** **                                                                                                            | ** ** |
|   | per:                                                                                                                  | (s) Rod Smith |
|   | ** **                                                                                                            | ** ** |
|   | per:                                                                                                                  | (s) Dustin Craven |

 

 

**[Signaturepage – First Amending Agreement]**

 

11

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|   | **Deutsche Bank AG**, Canada Branch                                                        |
|--------|--------------------------------------------------------------------------------------------|
|   | ** **                                                                                 | ** ** |
|   | per:                                                                                       | (s) Robert A. Johnston,  Vice President |
|   | ** **                                                                                 | ** ** |
|   | per:                                                                                       | (s) Marcellus Leung |
|   |                                                                                       | Assistant Vice President |
|   |                                                                                       |   |
|   | **Deutsche Bank AG**, New York Branch, with  respect to Tranche B and Tranche C  |
|   | ** **                                                                                 | ** ** |
|   | per :                                                                                 | (s) Evelyn Thierry, Vice President |
|   |                                                                                       |   |
|   | per:                                                                                       | (s) Omayra Laucella, Vice President |
|   |                                                                                       |   |
|   | **JPMorgan Chase Bank, N.A**., Toronto  Branch                                             |
|   | ** **                                                                                 | ** ** |
|   | per :                                                                                 | (s) Drew McDonald |
|   |                                                                                       | Executive Director |
|   |                                                                                       |   |
|   |                                                                                       |   |
|   | **JPMorgan Chase Bank, N.A.**, with respect to  Tranche B                             |
|   | ** **                                                                                 | ** ** |
|   | ** **                                                                                 | ** ** |
|   | per :                                                                                 | (s) Peter S. Predun |
|   | Executive Director                                                                         |
|   |                                                                                       |   |
|   |                                                                                       |   |
|   | **Société Générale**(Canada Branch)                                    |
|   | ** **                                                                                 | ** ** |
|   | per:                                                                                       | (s) Robert Page, Managing  Director |
|   | ** **                                                                                 | ** ** |
|   | per:                                                                                       | (s) Vincent Gonzales, Vice President |
|   |                                                                                       | Corporate Credit |
|   |                                                                                       |   |
|   |                                                                                       |   |
|   | **Société Générale**, New York Branch, with  respect to Tranche B |
|   | ** **                                                                                 | ** ** |
|   | per :                                                                                 | (s) Maria Iarriccio, Vice President |

 

 

**[Signaturepage – First Amending Agreement]**

 

12

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|   | **Bank of America, N. A.**, Canada Branch                                                                                                                                                    |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ** **                                                                                                                                                                                   | ** ** |
|   | per :                                                                                                                                                                                   | (s) Nelson Lam, Vice  President |
|   | ** **                                                                                                                                                                                   | ** ** |
|   | ** **                                                                                                                                                                                   | ** ** |
|   | **Bank of America, N. A.**, with respect to  Tranche B                                                                                                                                       |
|   | ** **                                                                                                                                                                                   | ** ** |
|   | per :                                                                                                                                                                                   | (s) Michael L. Letson, Jr., Vice President |
|   |                                                                                                                                                                                         |   |
|   |                                                                                                                                                                                         |   |
|   | **Citibank, N.A.**, Canadian branch                                                                                                                                                          |
|   | ** **                                                                                                                                                                                   | ** ** |
|   | per :                                                                                                                                                                                   | (s) Isabelle Côté |
|   |                                                                                                                                                                                         |   |
|   |                                                                                                                                                                                         |   |
|   | **Citicorp North America, Inc.**, as designated  Lender pursuant to Section 20.5 with respect to  Tranche B                                                                   |
|   | ** **                                                                                                                                                                                   | ** ** |
|   | per :                                                                                                                                                                                   | (s) Jeffrey Neikirk, Managing Director |
|   |                                                                                                                                                                                         |   |
|   | **Rabobank Nederland**, Canadian Branch                                                                                                                                                      |
|   | ** **                                                                                                                                                                                   | ** ** |
|   | per:                                                                                                                                                                                         | (s) Rommel J. Domingo, Vice President |
|   | ** **                                                                                                                                                                                   | ** ** |
|   | per:                                                                                                                                                                                         | (s) Anthony H. Liang, Executive Director |
|   |                                                                                                                                                                                         |   |
|   |                                                                                                                                                                                         |   |
|   | **Cooperatieve Centrale Raiffeissen-  Boerenleenbank B. A. “Rabobank  Nederland”** New York Branch, as designated  Lender pursuant to Section 20.5 with respect to  Tranche B |
|   | ** **                                                                                                                                                                                   | ** ** |
|   | per :                                                                                                                                                                                   | (s) Brett Delfino, Executive Director |
|   |                                                                                                                                                                                         |   |
|   | per:                                                                                                                                                                                         | (s) Ian Reece, Managing Director |

 

 

**[Signaturepage – First Amending Agreement]**

 

13

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|   | **Wachovia Capital Finance Corporation**(Canada)                                                                                       |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|
|   | ** **                                                                                                                             | ** ** |
|   | per :                                                                                                                             | (s) Raymond Eghobamien |
|   |                                                                                                                                   | Vice President |
|   |                                                                                                                                   |   |
|   |                                                                                                                                   |   |
|   | **Wachovia Bank, National Association**, as  designated Lender pursuant to Section 20.5  with respect to Tranche B and Tranche C. |
|   | ** **                                                                                                                             | ** ** |
|   | per :                                                                                                                             | (s) Robert G. McGill, Jr. |
|   |                                                                                                                                   | Director |

 

 

We, theundersigned, as Designated Subsidiaries and guarantors under the CreditAgreement, hereby agree with the terms of this First Amending Agreement andconfirm that the guarantee in favour of the Agent and the Lenders dated December 29,2006 also guarantees the obligations under this First Amending Agreement.

 

**CASCADES BOXBOARD U.S., INC.**

**CASCADES CANADA INC.**

**CASCADES BOXBOARD GROUP INC.**

**6265642 CANADA INC.**

**SCIERIE LEMAY INC.**

**RABOTAGE LEMAY INC.**

**DOPACO, INC.**

**DOPACO PACIFIC LLC**

**DOPACO LIMITED PARTNERSHIP**

**DOPACO CANADA, INC.**

**GARVEN INCORPORATED**

**CONFERENCE CUP LTD.**

**CASCADES BOXBOARD GROUP – CONNECTICUT LLC**

**CASCADES AUBURN FIBER INC.**

**CASCADES MOULDED PULP, INC.**

**CASCADES PLASTICS INC.**

**CASCADES DIAMOND, INC.**

**CASCADES FINE PAPERS GROUP INC.**

**CASCADES FINE PAPERS GROUP THUNDER BAY INC.**

**CASCADES FINE PAPERS GROUP (SALES) INC.**

**CASCADES FINE PAPERS GROUP (USA) INC.**

**W.H. SMITH PAPER CORPORATION**

 

**[Signaturepage – First Amending Agreement]**

 

14

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**CASCADESTISSUE GROUP – ARIZONA INC.**

**CASCADESTISSUE GROUP – IFC DISPOSABLES INC.**

**CASCADESTISSUE GROUP – NEW YORK INC.**

**CASCADESTISSUE GROUP – NORTH CAROLINA INC.**

**CASCADESTISSUE GROUP – OREGON INC.**

**CASCADESTISSUE GROUP – PENNSYLVANIA INC.**

**CASCADESTISSUE GROUP – WISCONSIN INC.**

**CASCADESTISSUE GROUP – TENNESSEE INC.**

**CASCADESTISSUE GROUP – SALES INC.**

**CASCADESTISSUE GROUP – PICKERING INC.**

**CASCADESTISSUE GROUP – MARYLAND LLC**

**NORAMPACHOLDING US INC.**

**NORAMPACNEW YORK CITY INC.**

**NORAMPACLEOMINSTER INC.**

**NORAMPACFINANCE US INC.**

**NORAMPACINDUSTRIES INC.**

**NORAMPACDELAWARE LLC**

**NORAMPACNOVA SCOTIA COMPANY**

**NORAMPACTHOMPSON INC.**

**3815251CANADA INC.**

**NORAMPACSCHENECTADY INC.**

**CASCADESTRANSPORT INC.**

**KINGSEYFALLS INVESTMENTS INC.**

**CASCADES ENERGY INITIATIVE INC.**

**CASCADES DELAWARE LLC**

**CASCADES NOVA SCOTIA COMPANY**

**3815285 CANADA INC.**

**3815315 CANADA INC.**

**NORAMPACINC.**

**4341384 CANADA INC.**

 

 

each of the foregoing entitiesrepresented by

 
| Name : | Alain Lemaire |   |
|--------|---------------|--------|

 

 

duly authorized as he/they sodeclare:

 

 
| (s)  Alain Lemaire |   |
|------------------------------|--------|

 

 

**[Signaturepage – First Amending Agreement]**

 

15

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