**Exhibit10.4**

 

**EXECUTIONCOPY**

 

 

**SECOND AMENDMENTTO THE CREDIT AGREEMENT**

**dated as of March 27, 2008**

 

*Among*

 

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

 

- *and* —

 

 

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

 

- *and* —

 

**THE LENDERSFROM TIME TO TIME PARTY HERETO**

 

 

**MCCARTHY TÉTRAULT LLP**

 

----

 

**SECOND AMENDMENT****TO THE DECEMBER 29, 2006 CASCADES CREDITAGREEMENT** made as of March 27, 2008.

 
| **BETWEEN:**   | ** ** | **CASCADES INC.** (“Cascades”)                                   |
|----------------|------------|----------------------------------------------------------------------------|
| ** **     | ** ** | ** **                                                                 |
| **AND :** | ** ** | **CASCADES USA  INC.**                                                     |
| ** **     | ** ** | ** **                                                                 |
| **AND :** | ** ** | **CASCADES EUROPE SAS**                                                    |
| ** **     | ** ** | ** **                                                                 |
| **AND:**       | ** ** | **CASCADES ARNSBERG GMBH** (“Cascades Germany”)                  |
| ** **     | ** ** | ** **                                                                 |
| ** **     | ** ** | (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, as amended as of June 27,2007 (the “Credit Agreement”) providing for credit facilities in an aggregateamount of $950,000,000 (the “Facilities”).

 

B.                                     Cascadeshas advised the Agent and the Co-Agent that, in connection with transactionentered into with Reno de Medici, the shares of Cascades Germany weretransferred to a newly formed Subsidiary of Cascades, CascadesItalia s.r.l., (the “Cascades Germany Share Transfer”) and that as of March 1,2008 Cascades Italia s.r.l. was subsequently merged with Reno de Medici,an entity in which Cascades holds an indirect minority interest.

 

C.                                     Cascadesand Cascades Germany have advised the Agent and the Co-Agent that CascadesGermany is no longer a Subsidiary of Cascades and, accordingly, must cease tobe a Borrower under the Credit Agreement.

 

----

 

D.                                    Theparties wish to amend the Credit Agreement to provide that Cascades Germany hasceased to be a Borrower under the Credit Agreement as of March 1, 2008(the “Effective Date”).

 

E.                                      Theparties wish this Agreement to become effective on the Effective Date.

 

**NOW, THEREFORE, THE PARTIES 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 Second 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                                 On the Effective Date, Cascades Germany ceased to be entitled toobtain Borrowings or otherwise use the Revolving Facility under the CreditAgreement. Therefore:

 

a)                                      Tranche C has ceased to be available toCascades Germany and all applicable provisions of the Credit Agreement areamended accordingly;

 

b)                                     The term Borrowers as used in the CreditAgreement no longer includes or refers to Cascades Germany and all applicableprovisions of the Credit Agreement are amended accordingly;

 

c)                                      Tranche C,in the amount of $95,000,000, will be available to Cascades Europe only in theproportion as to each Lender of its Commitment under Tranche C; and

 

d)                                     Tothe extent Cascades Germany had any Borrowings outstanding on the EffectiveDate at the time of the Cascades Germany Share, Cascades Germany must make arepayment in an amount sufficient to repay such Borrowings and all accruedinterest and fees.

 

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

** **

Prior to or concurrently upon the execution of thisAgreement, each Borrower (including Cascades Germany) must have delivered tothe Agent a copy of the corporate resolutions 

 

2

----

 

and other documents evidencing the authority of thepersons herein acting on behalf of such Borrower.

 

**4.****                                      Confirmation**

** **

Each of the Borrowers represents to the Agent and theLenders that (i) this Agreement will not result in any Default or Event ofDefault and (ii) that Cascades Germany has not (and did not have on the EffectiveDate) any Borrowing outstanding.

 

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

** **

The Borrowers agree to pay on demand all reasonablecosts and expenses of the Agent in connection with the preparation,execution, delivery and implementation and administration of this Agreementincluding, without limitation, the reasonable fees and expenses of counsel forthe Agent.

 

**6.****                                      Counterparts**

** **

This Agreement may be executed in any number ofcounterparts and by different parties hereto in separate counterparts, each ofwhich when so executed and delivered will be deemed to be an original and allof which taken together will constitute but one and the same agreement.Delivery of an executed counterpart of a signature page to thisAgreement by telecopier will be effective as delivery of a manually executedcounterpart of this Agreement.

 

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

** **

This Agreement is governed by, and construedin accordance with, the laws of the Province of Quebec and of the laws ofCanada applicable therein.

 

**8.****                                      Effectiveness**

** **

This Agreement will be effective as of February 29,2008 once the Agent has received an executed copy of this Agreement togetherwith the documentation referred to in Article 3.

 

3

----

 

**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 |
|   |       |                                                            |
|   |       |                                                            |
|   | ** ** | **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)  Dominic Albanese |
|   |       |                                                            |
|   |       | per:                                                            |
|   |       |                                                            | (s)  Roch Ledoux |
|   | ** ** |                                                            |
|   |       | (the names and signatures of the Lenders are on the  next page) |

 

----

 
|   | ** ** | **LENDERS’ SIGNATURES**                                                                      |
|--------|------------|---------------------------------------------------------------------------------------------------|
|   |       |                                                                                              |
|   |       |                                                                                              |
|   |       | **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) Vincent Lima |
|   |       |                                                                                              | Vice President |
|   |       |                                                                                              |   |
|   |       | per :                                                                                        | (s) Kambiz Mahdavl |
|   |       |                                                                                              | Assistant Vice President |
|   |       |                                                                                              | International Commercial Operations |
|   |       |                                                                                              |
|   |       | **The Bank of Nova Scotia**                                                                       |
|   |       | ** **                                                                                        |
|   |       | per :                                                                                        | (s) John Santillo |
|   |       |                                                                                              |   |
|   |       | per :                                                                                        | (s) David Loewen |
|   | ** ** | ** **                                                                                        |
|   | ** ** | **The Bank of Nova Scotia**, Houston Branch (in respect of Tranche B)                        |
|   | ** ** | ** **                                                                                        |
|   |       | per :                                                                                        | (s) J.F. Todd |
|   |       |                                                                                              | Managing Director |
|   |       |                                                                                              |
|   |       | **Canadian Imperial Bank of Commerce**                                                            |
|   |       | ** **                                                                                        |
|   |       | per :                                                                                        | (s) Peter Rawlins |
|   |       |                                                                                              | Executive Director |
|   |       |                                                                                              |   |
|   |       | per :                                                                                        | (s) E.G. Ramsay |
|   |       |                                                                                              | Executive Director |
|   |       |                                                                                              |
|   |       | **CIBC Inc.**, as designated Lender pursuant to Section 20.5 with respect  to Tranche B |
|   |       |                                                                                              |   |
|   |       | per :                                                                                        | (s) Dominic J. Sorresso |
|   |       |                                                                                              | Executive Director |

 

----

 
|   |       | **Caisse de dépôt et  placement du Québec**                                                                   |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------|
|   |       | ** **                                                                                                                   |
|   |       | per :                                                                                                                   | (s) Jean-Pierre Jetté, Manager |
|   |       |                                                                                                                         |   |
|   |       | per :                                                                                                                   | (s) Diane C. Favreau, Vice President |
|   | ** ** | ** **                                                                                                                   |
|   |       | **Caisse centrale Desjardins**                                                                                               |
|   |       | ** **                                                                                                                   |
|   |       | per :                                                                                                                   | (s) Raymond Trempe |
|   |       |                                                                                                                         |   |
|   |       | per :                                                                                                                   | (s) Francine Champoux |
|   | ** ** | ** **                                                                                                                   |
|   |       | **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 Jarry |
|   | ** ** | ** **                                                                                                                   |
|   | ** ** | ** **                                                                                                                   |
|   |       | **Bank of Montreal**, Chicago Branch  (in respect of Tranche B)                                                              |
|   |       | ** **                                                                                                                   |
|   |       | per :                                                                                                                   | (s)  Kristina H. Burden |
|   |       |                                                                                                                         | Vice President |
|   | ** ** | ** **                                                                                                                   |
|   |       | **BNP Paribas (Canada)**                                                                                                     |
|   |       | ** **                                                                                                                   |
|   |       | per :                                                                                                                   | (s)  Frank L. Shaw, Managing Director |
|   |       |                                                                                                                         |   |
|   |       | per :                                                                                                                   | (s)  Edouard Sinor, Director |
|   | ** ** | ** **                                                                                                                   |
|   |       | **BNP Paribas**, as designated Lender pursuant to Section 20.5 with respect  to Tranche B and Tranche C            |
|   |       | ** **                                                                                                                   |
|   |       | per :                                                                                                                   | (s)  Philippe Rouvier |
|   |       |                                                                                                                         |   |
|   |       | per :                                                                                                                   | (s)  Benjamin Sileo, Vice President |
|   |       |                                                                                                                         |   |
|   |       | per :                                                                                                                   | (s)  Frederic Fournier, Vice  President |

 

----

 
|   |       | **Comerica Bank**, Canada Branch                                                                                      |
|--------|------------|-----------------------------------------------------------------------------------------------------------------------|
|   |       | ** **                                                                                                            |
|   |       | per :                                                                                                            | (s)  Omer Ahmed, Portfolio Manager |
|   | ** ** | ** **                                                                                                            |
|   | ** ** | ** **                                                                                                            |
|   |       | **Comerica  Bank**                                                                                                    |
|   |       | (in respect of Tranche B and Tranche C)                                                                               |
|   |       |                                                                                                                  |
|   |       | per :                                                                                                            | (s)  James Lentner |
|   | ** ** | ** **                                                                                                            |
|   | ** ** | ** **                                                                                                            |
|   |       | **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)  Debbi L. Brito |
|   |       |                                                                                                                  | Authorized signatory |
|   | ** ** | ** **                                                                                                            |
|   |       | **Royal  Bank of Canada**                                                                                             |
|   |       |                                                                                                                  |
|   |       | per :                                                                                                            | (s)  Rod Smith |
|   |       |                                                                                                                  | Authorized Signatory |
|   | ** ** | ** **                                                                                                            |
|   |       | **Royal  Bank of Canada**(in respect of Tranche B)                                                                    |
|   |       |                                                                                                                  |
|   |       | per :                                                                                                            | (s)  Dustin Craven |

 

----

 
|   |       | **Deutsche  Bank AG**, Canada Branch                                                        |
|--------|------------|---------------------------------------------------------------------------------------------|
|   |       |                                                                                        |
|   |       | per :                                                                                  | (s)  Robert A. Johnston |
|   |       |                                                                                        | Director |
|   |       |                                                                                        |   |
|   |       | per :                                                                                  | (s)  Renate Engel |
|   |       |                                                                                        | Assistant Vice President |
|   | ** ** | ** **                                                                                  |
|   |       | **Deutsche  Bank AG**, New York Branch, with respect to  Tranche B and Tranche C  |
|   |       |                                                                                        |
|   |       | per :                                                                                  | (s)  Erin Morrissey, Vice President |
|   | ** ** | ** **                                                                                  |
|   |       | per :                                                                                  | (s)  Evelyn Thierry, 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)  D. Baldoni |
|   | ** ** | ** **                                                                                  |
|   |       | per :                                                                                  | (s)  Vincent Gonzales |
|   | ** ** | ** **                                                                                  |
|   | ** ** | ** **                                                                                  |
|   |       | **Société  Générale**, New York Branch, with respect to  Tranche B |
|   |       |                                                                                        |
|   |       | per :                                                                                  | (s)  Ambrish D. Thanawala |
|   |       |                                                                                        | Managing Director |

 

----

 
|   |       | **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 Balok |
|   |       |                                                                                                                                                                                      | Senior 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)  Rob T. Jokhai, Vice President |
|   |       |                                                                                                                                                                                      |   |
|   | ** ** | **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)  Henrique Costa, Managing Director |
|   |       |                                                                                                                                                                                      | Credit Risk Management |

 

----

 
|   |       | **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, the undersigned, as Designated Subsidiaries and guarantorsunder the Credit Agreement, hereby agree with the terms of this Second AmendingAgreement.

 

**CASCADES BOXBOARD U.S., INC.****CASCADES CANADA INC.****CASCADESPAPERBOARD INTERNATIONAL INC.6265642 CANADA INC.SCIERIE LEMAY INC.RABOTAGE LEMAY INC.****DOPACO,INC.DOPACO PACIFIC LLCDOPACO LIMITED PARTNERSHIPDOPACO CANADA, INC.****GARVENINCORPORATEDCONFERENCE CUP LTD.CASCADES BOXBOARD GROUP — CONNECTICUT LLCCASCADES 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 CASCADES TISSUE GROUP — ARIZONA INC.CASCADES TISSUE GROUP — IFC DISPOSABLES INC.CASCADES TISSUE GROUP — NEW YORK INC.**

----

 

**CASCADES TISSUE GROUP — NORTH CAROLINA INC.CASCADES TISSUE GROUP — OREGON INC.CASCADES TISSUE GROUP — PENNSYLVANIA INC.CASCADES TISSUE GROUP — WISCONSIN INC.CASCADES TISSUE GROUP — TENNESSEE INC.CASCADES TISSUE GROUP — SALES INC.CASCADES TISSUE GROUP — PICKERING INC.CASCADES TISSUE GROUP — MARYLAND LLCNORAMPAC HOLDING US INC.NORAMPAC NEW YORK CITY INC.NORAMPAC LEOMINSTER INC.NORAMPAC FINANCE US INC.NORAMPAC INDUSTRIES INC.NORAMPAC DELAWARE LLCNORAMPAC NOVA SCOTIA COMPANYNORAMPAC THOMPSON INC.NORAMPAC SCHENECTADY INC.CASCADES TRANSPORT INC.KINGSEY FALLS INVESTMENTS INC.****CASCADES ENERGY INITIATIVE INC.CASCADES DELAWARE LLCCASCADES NOVA SCOTIA COMPANY3815285 CANADA INC.3815315 CANADA INC.****NORAMPAC INC.****CASCADESENVIROPAC HPM LLC**

**6806813 CANADA INC.**

**6806805 CANADA INC.**

**6806783 CANADA INC.**

 

each of the foregoing entities being represented by

 

 
| Name  :                                 | Robert  F. Hall          |   |   |
|-----------------------------------------|--------------------------|--------|--------|
|                                    |                     |   |
|                                    |                     |   |
| duly  authorized as he/they so declare: |                     |   |
|                                    |                     |   |
|                                    |                     |   |
|                                    | (s) Robert  F. Hall |   |   |

 

----