**Exhibit 10.5**

 

**EXECUTION VERSION**

 

 

**THIRD AMENDMENTTO THE CREDIT AGREEMENT**

**dated as of May 22, 2008**

 

*Among*

 

**CASCADES INC.CASCADES USA INC.CASCADES EUROPE SAS**(*as Borrowers*)

 

— *and* —

 

**SCOTIA CAPITAL**(*as Lead Arranger for theextensionof the Unsecured Revolving Facility*)

 

— *and* —

 

**NATIONAL BANK FINANCIAL**(*as Lead Arranger for theamendmentsto the financial covenant*)

 

 

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

 

— *and* —

 

**THE LENDERSFROM TIME TO TIME PARTY HERETO**

 

 

**MCCARTHY TÉTRAULT LLP**

 

----

 

**THIRD AMENDMENT****TO THE DECEMBER 29, 2006 CASCADES CREDITAGREEMENT** made as of May 22, 2008.

 
| **BETWEEN:**   | ** ** | **CASCADES INC.** (“Cascades”)                                   |
|----------------|------------|----------------------------------------------------------------------------|
| ** **     | ** ** | ** **                                                                 |
| **AND :** | ** ** | **CASCADES USA INC.**                                                      |
| ** **     | ** ** | ** **                                                                 |
| **AND :** | ** ** | **CASCADES EUROPE SAS**                                                    |
| ** **     | ** ** | ** **                                                                 |
| ** **     |       | (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.            The Borrowers, the Agent, theCo-Agent and the Lenders are party to a credit agreement dated as of December 29,2006, as amended as of June 27, 2007 and March 28, 2008 (the “CreditAgreement”) providing for credit facilities in an aggregate amount of$950,000,000 (the “Facilities”).

 

B.            The Lenders have been requested by arequest for extension and amendments dated April 17, 2008 to (i) extendthe Unsecured Revolving Facility Maturity Date to June 23, 2009, (ii) amendthe Funded Debt to Capitalization Ratio and the Interest Coverage Ratiocovenants of the Credit Agreement and (iii) make certain other amendmentsto the Credit Agreement.

 

C.            The Lenders are willing to grant theextension and amendments described in the above request and the Borrowers, theAgent, the Co-Agent and the Lenders wish to amend the Credit Agreement to giveeffect to the extension and amendments contemplated in the request in themanner provided for in this Agreement.

 

----

 

**NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:**

 

**1.****             Interpretation**

 

1.1           Capitalizedterms used herein and defined in the Credit Agreement have the meaningsassigned to them in the Credit Agreement unless otherwise defined herein.

 

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

 

1.3           Anyreference to the Credit Agreement in any Credit Document refers to the CreditAgreement as amended hereby.

 

**2.****             Amendments to theCredit Agreement**

** **

2.1           Section 1.1of the Credit Agreement is amended by deleting the definition of “UnsecuredRevolving Facility Maturity Date” and replacing it with the following:

 

                “**Unsecured Revolving Facility Maturity Date**”means June 23, 2009;”

 

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

 

**“2.3****    The Unsecured RevolvingFacility**

 

a)         TheLenders, individually and not solidarily (i.e. not jointly and severally) agreeto make available to Cascades an unsecured revolving facility (the “UnsecuredRevolving Facility”) in an aggregate amount at any time not exceeding the totalof the Commitments at such time with respect to the Unsecured RevolvingFacility. As of the date hereof and up to June 25, 2008, the Commitment ofeach Lender under the Unsecured Revolving Facility will be as specified belowopposite its name and the collective Commitments of the Lenders with respect tothe Unsecured Revolving Facility will aggregate to $100,000,000.

 

3

----

 
| **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   |   |
|                                                   |       |           |           |
| Bank of America, N.A., Canada Branch                   |       | $              | 6,714,000.00   |   |
|                                                   |       |           |           |
| Rabobank Nederland, Canadian Branch                    |       | $              | 3,049,000.00   |   |
|                                                   |       |           |           |
| Total                                                  |       | $              | 100,000,000.00 |   |

 

b)        As of June 25,2008, the Commitment of each Lender under the Unsecured Revolving Facility willbe as specified below opposite its name and the collective Commitments of theLenders with respect to the Unsecured Revolving Facility will aggregate to$100,000,000.

 

4

----

 

 
| **Name of Lender**                           | ** ** | **Commitment** | ** **     |
|--------------------------------------------------------|------------|----------------|----------------|
| ** **                                             | ** ** | ** **     | ** **     |
| The Bank of Nova Scotia                                |       | $              | 15,984,334.00  |   |
|                                                   |       |           |           |
| Canadian Imperial Bank of Commerce                     |       | $              | 11,765,000.00  |   |
|                                                   |       |           |           |
| National Bank of Canada                                |       | $              | 10,984,333.00  |   |
|                                                   |       |           |           |
| Caisse de dépôt et placement  du Québec |       | $              | 9,412,000.00   |   |
|                                                   |       |           |           |
| Caisse centrale Desjardins                             |       | $              | 10,726,333.00  |   |
|                                                   |       |           |           |
| 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   |   |
|                                                   |       |           |           |
| Bank of America, N.A., Canada Branch                   |       | $              | 7,500,000.00   |   |
|                                                   |       |           |           |
| Total                                                  |       | $              | 100,000,000.00 |   |

 

c)         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.

 

d)        On June 25, 2008, the Agent will notify Cascades and theLenders of the adjustments, if any, which are required to be made among theLenders to ensure that the outstanding Borrowings under the Unsecured RevolvingFacility are owed to the Lenders in the proportion of their respectiveCommitments under the Unsecured Revolving Facility.  The adjustments, if any, will be payable bythe Lenders three Business Days after the date of notification.”

 

5

----

 

2.3           A new Section 6.12 isadded to the Credit Agreement as follows:

 

“**6.12****      Usage Fee**

 

(a)        Cascadesmust pay to the Agent, for distribution to the Lenders  *pro rata* to their Commitments underthe Unsecured Revolving Facility, a usage fee on the aggregate amount ofoutstanding Borrowings under the Unsecured Revolving Facility. The usage feewill be calculated daily from the date of this Agreement at the annual ratespecified below and will be payable quarterly in arrears on the first BusinessDay of the following quarter.

 

(b)        For any day, the usage fee will be calculated (i) at a rate of0.75% if on such day the outstanding Borrowings under the Unsecured RevolvingFacility represent not more than 33 1/3% of the amount of the facility, (ii) ata rate 1.25% if on such day the outstanding Borrowings under the UnsecuredRevolving Facility represent more than 33 1/3% of the amount of thefacility without however exceeding 66 2/3% of the amount of the facility, and (iii) ata rate of 1.75% if on such day the outstanding Borrowings under the UnsecuredRevolving Facility represent more than 66 2/3% of the amount of thefacility.”

 

2.4           Sections14.1 and 14.2 of the Credit Agreement are deleted and replaced by thefollowing:

 

“**14.1****      Funded Debtto Capitalization Ratio**

 

Cascades must maintain at all times, on anadjusted consolidated basis, a Funded Debt to Capitalization Ratio of not morethan (i) 65% until June 30, 2009; and (ii) 60% thereafter.

 

**14.2**        **InterestCoverage Ratio**

 

Cascades must maintain at all times,****on an adjusted consolidated basis, an Interest CoverageRatio not less than (i) 2.25:1.00 until June 30, 2009 and (ii) 2.50:1.00thereafter**.**”

 

2.5           Schedule “A” of theCredit Agreement is amended by replacing (with effect from June 25, 2008)the grid applicable to the Unsecured Revolving Facility with the following:

 

6

----

 

**Unsecured Revolving Facility**

** **
| **Prime, US Base** | ** ** | **Acceptance Fee /  Libor** | ** ** | **Stand- By Fee** | ** ** |
|------------------------------|------------|---------------------------------------|------------|-----------------------------|------------|
| 0                            |       | 100 bps                               |       | 32.5 bps                    |       |

 

**3.****             Effectiveness andConditions Precedent**

** **

This Agreement willbecome effective on the date that the Agent notifies the Borrowers and the Lenders(through Intralinks in the case of the Lenders) that this Agreement has beenexecuted by all parties hereto, and that the following conditions precedenthave been fulfilled:

 

3.1           The payment of all fees andexpenses owing by the Borrowers to the Agent and the Lenders on the date ofthis Agreement and all fees and expenses of the Agent’s counsel to such date;and

 

3.2           Receipt of copies of thedocuments evidencing the authority of the persons acting on behalf of theBorrowers.

 

**4.****             Cost and Expenses**

 

4.1           On the date this Agreementbecomes effective pursuant to Article 3, Cascades must pay:

 

(a)        to each Lender who has consented to the amendments described in Section 2.4hereof an amendment fee equal to 6 bps on such Lender’s total Commitment underthe Facilities at such time (excluding however its Commitment under theUnsecured Revolving Facility if same has not been renewed in accordance withthe Request);

 

(b)        to each Lender who has agreed pursuant to the Request to renew itsCommitment under the Unsecured Revolving Facility an extension fee equal to 30bps on such Lender’s Commitment under the Unsecured Revolving Facility at suchtime; and

 

(c)        an additional fee equal to 35 bps on the portion (if any) of suchLender’s Commitment under the Unsecured Revolving Facility at such time whichis in excess of the amount of such Lender’s Commitment under the UnsecuredRevolving Facility on the second Business Day preceding the date on which thisAgreement becomes effective.

 

7

----

 

4.2                                 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 and the Co-Agent.

 

**5.****                                      Confirmation**

** **

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

 

**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.

 

 

**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) Robert  F. Hall |
|       |                    |
| ** ** | **Cascades USA Inc.**   |
| ** ** | ** **              |
|       | per:                    |
|       |                    | (s) Robert  F. Hall |
|       |                    |
| ** ** | **Cascades Europe SAS** |
| ** ** | ** **              |
|       | per:                    |
|       |                    | (s) Robert  F. Hall |

 

8

----

 
| ** ** | **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) |

 

9

----

 
| ** ** | ** ** | **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 |
| ** ** | ** ** |                                                                                              |   |
| ** ** | ** ** | 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) Jens Paterson, Executive Director |
| ** ** | ** ** |                                                                                              |   |
| ** ** | ** ** | **CIBC Inc.**, as designated Lender pursuant to Section 20.5 with respect  to Tranche B |
| ** ** | ** ** | ** **                                                                                        | ** ** |
| ** ** | ** ** | per :                                                                                        | (s) Dominic J. Sorresso |
| ** ** | ** ** |                                                                                              | Executive Director |

 

10

----

 

 
| ** ** | **Caisse  de dépôt et placement du Québec**                                                                     |
|------------|--------------------------------------------------------------------------------------------------------------------------------|
| ** ** | ** **                                                                                                                     | ** ** |
|       | per:                                                                                                                           | (s) Jean-Pierre  Jetté, Manager |
|       |                                                                                                                           |   |
|       | per:                                                                                                                           | (s) Dominique  Boies |
|       |                                                                                                                           | Vice-président  principal |
|       |                                                                                                                           |
|       | **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, Director |
|       |                                                                                                                           |
| ** ** | **Bank of  Montreal**, Chicago Branch (in respect of  Tranche B)                                                               |
| ** ** | ** **                                                                                                                     |
|       | per :                                                                                                                     | (s) Kristina  H. Burden, Vice President |
|       |                                                                                                                           |
|       | **BNP  Paribas (Canada)**                                                                                                      |
|       | ** **                                                                                                                     |
|       | per :                                                                                                                     | (s) Edouard  Sinor |
|       |                                                                                                                           |   |
|       | per:                                                                                                                           | (s) Frank  L. Shaw |
|       |                                                                                                                           |   |
| ** ** | **BNP  Paribas**, as designated Lender pursuant to  Section 20.5 with respect to Tranche B and Tranche C             |
| ** ** | ** **                                                                                                                     |
|       | per :                                                                                                                     | (s) Benjamin  Sileo, Vice President |
|       | per:                                                                                                                           | (s) Frederic  Fournier, Vice President |
|       | per:                                                                                                                           | (s) Philippe  Rouvier |
|       | per:                                                                                                                           | (s) Claude  Delaire |

 

11

----

 
| ** ** | **Comerica  Bank**, operating by and through its  Canadian Branch                                                     |
|------------|-----------------------------------------------------------------------------------------------------------------------|
| ** ** | ** **                                                                                                            | ** ** |
|       | per :                                                                                                            | (s) Omer  Ahmed, Portfolio Manager |
|       |                                                                                                                  |   |
|       |                                                                                                                  |   |
| ** ** | **Comerica  Bank**                                                                                                    |
| ** ** | (in respect  of Tranche B and Tranche C)                                                                              |
|       |                                                                                                                  |   |
|       | per :                                                                                                            | (s) Michael  J. Doyle, 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:                                                                                                                  | Debbi L.  Brito |
|       |                                                                                                                  | Authorized  signatory |
|       |                                                                                                                  |   |
|       | **Royal  Bank of Canada**                                                                                             |
|       | ** **                                                                                                            | ** ** |
|       | per :                                                                                                            | (s) Rod  Smith |
|       |                                                                                                                  | Attorney-in-Fact |
|       |                                                                                                                  |   |
|       |                                                                                                                  |   |
|       | **Royal  Bank of Canada**                                                                                             |
|       | (in respect  of Tranche B)                                                                                            |
|       |                                                                                                                  |   |
|       | per :                                                                                                            | (s) Dustin  Craven |
|       |                                                                                                                  | Attorney-in-Fact |

 

12

----

 
| ** ** | **Deutsche  Bank AG**, Canada Branch                                                        |
|------------|---------------------------------------------------------------------------------------------|
| ** ** | ** **                                                                                  | ** ** |
|       | per :                                                                                  | (s) Robert  A. Johnston, Director |
|       |                                                                                        |   |
|       | per:                                                                                        | (s) Marcellus  Leung |
|       |                                                                                        | Assistant  Vice President |
|       |                                                                                        |   |
| ** ** | **Deutsche  Bank AG**, New York Branch, with respect to  Tranche B and Tranche C  |
| ** ** | ** **                                                                                  | ** ** |
|       | per :                                                                                  | (s) EvenlynThierry,  Vice President |
|       |                                                                                        |   |
|       | per:                                                                                        | (s) Eric  Morrissey, 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  Pagé |
|       |                                                                                        |   |
|       | per:                                                                                        | (s) Vincent  Gonzales |
|       |                                                                                        |   |
|       |                                                                                        |   |
| ** ** | **Société  Générale**, New York Branch, with respect to  Tranche B |
| ** ** | ** **                                                                                  | ** ** |
|       | per :                                                                                  | (s) Ambrish  D. Thanawala |
|       |                                                                                        | Managing  Director |

 

13

----

 
| ** ** | **Bank of  America, N. A.**, Canada Branch                                                                                                                                                |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** ** | ** **                                                                                                                                                                                | ** ** |
|       | per :                                                                                                                                                                                | (s) Nelson  Lam, Vice President |
|       |                                                                                                                                                                                      |   |
|       |                                                                                                                                                                                      |   |
| ** ** | **Bank of  America, N. A.**, with respect to Tranche B                                                                                                                                    |
| ** ** | ** **                                                                                                                                                                                | ** ** |
|       | per :                                                                                                                                                                                | Michael L.  Letson, Mr. |
|       |                                                                                                                                                                                      | Vice  President |
|       |                                                                                                                                                                                      |   |
|       |                                                                                                                                                                                      |   |
|       | **Rabobank  Nederland**, Canadian Branch                                                                                                                                                  |
|       | ** **                                                                                                                                                                                | ** ** |
|       | per :                                                                                                                                                                                | (s) Rommel  J. Domingo |
|       |                                                                                                                                                                                      | Vice  President |
|       |                                                                                                                                                                                      |   |
|       | per:                                                                                                                                                                                      | (s) Jason  Hoogenboom |
|       |                                                                                                                                                                                      | Vice  President |
|       |                                                                                                                                                                                      |   |
|       |                                                                                                                                                                                      |   |
| ** ** | **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 |

 

14

----

 
| ** ** | **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 Third Amending Agreement.

 
| **CASCADES BOXBOARD U.S., INC.**                      |
|-------------------------------------------------------|
| **CASCADES CANADA INC.**                              |
| **CASCADES PAPERBOARD INTERNATIONAL 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**                      |
| **CASCADES TISSUE GROUP — ARIZONA INC.**         |
| **CASCADES TISSUE GROUP — IFC DISPOSABLES INC.** |
| **CASCADES TISSUE GROUP — NEW YORK INC.**        |

 

15

----

 
| **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 LLC**        |
| **NORAMPAC HOLDING US INC.**                         |
| **NORAMPAC NEW YORK CITY INC.**                      |
| **NORAMPAC LEOMINSTER INC.**                         |
| **NORAMPAC FINANCE US INC.**                         |
| **NORAMPAC INDUSTRIES INC.**                         |
| **NORAMPAC DELAWARE LLC**                            |
| **NORAMPAC NOVA SCOTIA COMPANY**                     |
| **NORAMPAC THOMPSON INC.**                           |
| **NORAMPAC SCHENECTADY INC.**                        |
| **CASCADES TRANSPORT INC.**                          |
| **KINGSEY FALLS INVESTMENTS INC.**                   |
| **CASCADES ENERGY INITIATIVE INC.**                  |
| **CASCADES DELAWARE LLC**                            |
| **CASCADES NOVA SCOTIA COMPANY**                     |
| **3815285 CANADA INC.**                              |
| **3815315 CANADA INC.**                              |
| **NORAMPAC INC.**                                    |
| **CASCADES ENVIROPAC 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 |   |

 

16

----