Document:

Exhibit 10.1

 

Execution Copy

 

Cdn. $750,000,000 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

dated as of
June 1, 2017

 

Among

 

Cascades
Inc.

Cascades USA Inc.

(as Borrowers)

 

- and -

 

National
Bank Financial Inc.

The Bank of Nova Scotia

(as Co-Lead Arrangers and Joint Bookrunners)

 

- and -

 

National
Bank of Canada

(as Administrative Agent)

 

- and -

 

The
Bank of Nova Scotia

(as Collateral Agent and Syndication Agent)

 

- and -

 

Canadian
Imperial Bank of Commerce

Fédération des Caisses Desjardins
du Québec

Wells Fargo Bank, National Association, Canadian
Branch

(as Co-Documentation Agents)

 

- and -

 

The
Lenders

from Time to Time Party Hereto

McCarthy
Tétrault LLP

 

     

     

    

 

Table of Contents

 

	 	 	Page
	 	 	 
	Article 1 - Interpretation	1
	 	 
	1.1	Amendment and Restatement	1
	1.2	Definitions	1
	1.3	Designated Subsidiaries	13
	1.4	Additional Borrowers	13
	1.5	Currency Conversions	14
	1.6	GAAP, Calculations and Historical Adjustments	14
	1.7	Time	14
	1.8	Headings and Table of Contents	14
	1.9	Governing Law and Jurisdiction	14
	1.10	Previous Agreements	15
	1.11	Inconsistency	15
	 	 	 
	Article 2 - The Facility	15
	 	 
	2.1	Amount of the Facility	15
	2.2	Reallocation among Tranches	15
	2.3	Purpose, Nature and Availability of the Facility	15
	2.4	Borrowing Options	16
	2.5	Borrowing Base Limitations	16
	2.6	Borrowings Proportionate to Commitments	16
	2.7	Notice of Borrowings	16
	2.8	Swingline Utilizations	17
	2.9	Funding	18
	2.10	Lender’s Failure to Fund	18
	2.11	Conversions and Renewals	18
	2.12	Limitations on Lender’s Obligation to Fund	19
	2.13	Increase of the Facility	19
	2.14	Extension of the Facility Maturity Date	20
	 	 	 
	Article 3 - Acceptances	21
	 	 
	3.1	Period and Amounts	21
	3.2	Disbursement	21
	3.3	Power of Attorney	21
	3.4	Depository Bills	21
	3.5	Availability	22
	 	 	 
	Article 4 - Libor Loans	22
	 	 
	4.1	Amounts and Periods	22
	4.2	Changed Circumstances	22
	4.3	Conversion Prior to Maturity	23

 

     

     

    

 

	Article 5 - Letters of Credit	23
	 	 
	5.1	Availability	23
	5.2	Maturity of Letters of Credit	23
	5.3	Borrowings	23
	5.4	Payments under Letters of Credit	24
	5.5	Indemnity	24
	5.6	I.C.C. Rules	24
	 	 	 
	Article 6 - Fees And Interest	24
	 	 
	6.1	Letter of Credit Fees	24
	6.2	Administrative Charges with respect to Letters of Credit	25
	6.3	Standby Fee	25
	6.4	Acceptance Fees	25
	6.5	Other Fees	25
	6.6	Interest on Prime Rate Loans	25
	6.7	Interest on US Base Rate Loans	25
	6.8	Interest on Libor Loans	25
	6.9	Calculation of Interest Rates	26
	6.10	Interest on Arrears	26
	 	 	 
	Article 7 - Repayment, Prepayment and Reduction	26
	 	 
	7.1	Repayment of the Facility	26
	7.2	Mandatory Prepayments	26
	7.3	Optional Prepayments	27
	7.4	Exchange Rate Fluctuations	27
	7.5	Reduction of the Facility	27
	 	 	 
	Article 8 – Place of Payment, Currency and Taxes	27
	 	 
	8.1	Payments to the Administrative Agent	27
	8.2	Manner of Payments	28
	8.3	Currency	28
	8.4	Judgment Currency	28
	8.5	Payments Net of Taxes	28
	 	 	 
	Article 9 - Conditions Precedent	29
	 	 
	9.1	Conditions Precedent to the Effectiveness of this Agreement	29
	9.2	Conditions Precedent to all Borrowings	29
	9.3	Waiver of Conditions Precedent	29
	9.4	Early Termination of this Agreement	29
	9.5	Borrowings under the Initial Credit Agreement	29

 

    - ii -

     

    

 

	Article 10 - Security	30
	 	 
	10.1	Guarantees	30
	10.2	Security over Current Assets	30
	10.3	Security over Charged Fixed Assets	30
	10.4	Insurance	31
	10.5	Security for Hedging Agreements and Credit Card Obligations	31
	10.6	Validity and Contents of Security Documents	32
	10.7	Release of the Security	33
	 	 	 
	Article 11 - Representations and Warranties	33
	 	 
	11.1	Corporate Existence and Capacity	33
	11.2	Authorization and Validity	33
	11.3	No Breach	33
	11.4	Approvals	33
	11.5	Compliance with Laws and Permits	34
	11.6	Title to Assets	34
	11.7	Litigation	34
	11.8	No Default	34
	11.9	Solvency	34
	11.10	Taxes	34
	11.11	ERISA and Pension Plans	34
	11.12	Margin Stock Restrictions	34
	11.13	Investment Company Act	35
	11.14	Restriction on Payments	35
	11.15	Corporate Structure and Location of Assets	35
	11.16	Financial Statements and Financial Year	35
	11.17	No Material Change	35
	11.18	True and Complete Disclosure	35
	 	 	 
	Article 12 - Affirmative Covenants	36
	 	 
	12.1	General Covenants	36
	12.2	Use of Proceeds and Compliance with Indenture Limitations	36
	12.3	Know Your Customer Laws	37
	12.4	Further Assurances	37
	12.5	Representations and Warranties	37
	 	 	 
	Article 13 - Negative Covenants	37
	 	 
	13.1	Negative Pledge	37
	13.2	Indebtedness	37
	13.3	Limitations on Fundamental Changes	38
	13.4	Investments	40
	13.5	Distributions	40
	13.6	Transactions with Related Parties	40

 

    - iii -

     

    

 

	Article 14 - Financial Ratios	41
	 	 
	14.1	Funded Debt to Capitalization Ratio	41
	14.2	Interest Coverage Ratio	41
	 	 	 
	Article 15 - Reporting Requirements	41
	 	 
	15.1	Annual Reporting	41
	15.2	Quarterly Reports	41
	15.3	ERISA	42
	15.4	Reporting from Time to Time	42
	15.5	Hedging Agreements, Securitization and Factoring	42
	 	 	 
	Article 16 - Events of Default and Remedies	43
	 	 
	16.1	Events of Default	43
	16.2	Remedies	44
	 	 	 
	Article 17 - Equality Among Lenders	44
	 	 
	17.1	Distribution among Lenders	44
	17.2	Other Security	44
	17.3	Direct Payment to a Lender	45
	17.4	Adjustments	45
	 	 	 
	Article 18 - The Agents and The Lenders	45
	 	 
	18.1	Appointment of the Agents	45
	18.2	Restrictions on the Powers of the Lenders	45
	18.3	Security Documents	45
	18.4	Action by the Agents	45
	18.5	Enforcement Measures	46
	18.6	Indemnification	46
	18.7	Reliance on Reports	46
	18.8	Liability of the Agents	46
	18.9	Liability of Lenders	46
	18.10	Rights of an Agent as Lender	46
	18.11	Sharing of Information	47
	18.12	Competition	47
	18.13	Successor Agent	47
	 	 	 
	Article 19 - Decisions, Waivers and Amendments	47
	 	 
	19.1	Amendments and Waivers by the Majority Lenders	47
	19.2	Amendments and Waivers by Unanimous Approval	48
	19.3	Amendments requiring the consent of the Affected Party	48
	19.4	Dissenting and Affected Lenders	48
	19.5	Defaulting Lenders	49

 

    - iv -

     

    

 

	19.6	Bail-In Provisions	51
	 	 	 
	Article 20 - Miscellaneous	52
	 	 
	20.1	Books and Accounts	52
	20.2	Determination	52
	20.3	Prohibition on Assignment by Borrowers	52
	20.4	Assignments and Participations	52
	20.5	Designated Lenders	53
	20.6	Notes	54
	20.7	No Waiver	54
	20.8	Irrevocability of Notices of Borrowings	54
	20.9	Set-off	54
	20.10	Indemnification	54
	20.11	Mitigation of costs	55
	20.12	Corrections of Errors	55
	20.13	Communications	56
	20.14	Counterparts	56
	20.15	Waiver of Jury Trial	56
	 	 	 
	Article 21 – Notices	56
	 	 
	21.1	Sending of Notices	56
	21.2	Receipt of Notices	56

 

    - v -

     

    

 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

This
Agreement is made as of June 1, 2017 among Cascades Inc., a corporation incorporated
under the laws of the province of Quebec (“Cascades”), Cascades USA Inc.,
a corporation incorporated under the laws of the State of Delaware (“Cascades US”) (each a “Borrower”
and, collectively the “Borrowers”), National Bank of Canada, a
Canadian bank, as administrative agent, The
Bank of Nova Scotia, a Canadian bank, as collateral agent, and
each of the financial institutions having executed this Agreement as Lender.

 

Recitals

 

		A.	Pursuant to a credit agreement dated as of December 29, 2006 (as amended and restated as of February
10, 2011, as again amended and restated as of July 7, 2015 and as further amended pursuant to requests for amendments dated November
23, 2015 and June 23, 2016, the “Initial Credit Agreement”), the Lenders agreed to make available
to the Borrowers a Facility in a principal amount of $750,000,000 for general corporate purposes.

 

		B.	Cascades US is a wholly-owned Subsidiary of Cascades.

 

		C.	The Borrowers and the Lenders wish to amend and restate the Initial Credit Agreement for the purposes
of, (i) extending the Facility Maturity Date to July 7, 2021, (ii) providing for an option to add additional borrowers, (iii) modifying
the definition of the Borrowing Base, and (iv) updating and making consequential changes to other provisions.

 

Therefore,
the parties agree as follows:

 

Article
1 - Interpretation

 

		1.1	Amendment and Restatement

 

The Initial Credit Agreement
is hereby amended and restated in its entirety, without novation of the Initial Credit Agreement and without derogation of the
rights and obligations of the parties thereunder (save as amended hereunder). However, from the Effective Date, this Agreement
will evidence the agreement of the parties with respect to the matters which are the subject of the Initial Credit Agreement and
this Agreement.

 

		1.2	Definitions

 

In this Agreement, unless
the context otherwise requires, the following terms have the respective meanings set out below or in the preamble (and all such
terms that are defined in the singular have the corresponding meaning in the plural and vice versa).

 

“Acceptance”
means:

 

		(a)	in respect of a Lender who is a bank that customarily accepts bankers' acceptances, at such Lender’s
discretion, either a depository bill subject to the Depository Bills and Notes Act (Canada) or a bill of exchange subject
to the Bills of Exchange Act (Canada), in each case, drawn by Cascades on and accepted by such Lender; and

 

     

     

    

 

		(b)	in respect of any other Lender, a promissory note bearing no interest, made by Cascades to such
Lender;

 

“Additional Borrower”
means any wholly-owned Subsidiary of Cascades who has become an additional Borrower pursuant to Section 1.4

 

“Adjusted Consolidated
Basis” means, in relation to Cascades, a consolidation that excludes all Persons who are not Credit Parties;

 

“Administrative
Agent” means National Bank of Canada or any successor administrative agent appointed pursuant to Section 18.13;

 

“Administrative
Agent’s Office” means the office of the Administrative Agent designated by it from time to time as its administrative
office for the purposes hereof, after notice to the Lenders;

 

“Affiliate”
means, with respect to a Person, any other Person that directly or indirectly Controls, or is Controlled by, or is under common
Control with, that Person;

 

“Agents”
means collectively the Administrative Agent and the Collateral Agent;

 

“Applicable Margin
(or Rate)” means a margin (or rate) determined in accordance with Schedule A;

 

“Borrowing Base”
means the amount (expressed in Dollars) determined by the Administrative Agent as being the sum of:

 

		(a)	80% of the book value of the trade accounts receivable of the Credit Parties which are subject
to the Security and are owed by customers located in Canada, the United States and Europe, but excluding accounts that have been
outstanding for more than 90 days, accounts owed by Credit Parties, accounts subject to set-off, accounts in dispute and doubtful
accounts, provided that,

 

		(i)	such 80% percentage will be increased to 90% for accounts receivable insured for at least 90% of
their amounts by Export Development Canada or another credit insurer acceptable to the Majority Lenders but on the condition that
the Collateral Agent be named as loss payee under the related policy,

 

		(ii)	if a Securitization or Factoring Program is in effect, the accounts receivable which are subject
(in whole or in part) to such program will be excluded from the Borrowing Base (as provided in Section 13.3(b)(iv)) and the
aggregate of the amounts determined pursuant to paragraphs (b) and (c) below will be included in the Borrowing Base only up to
300% of the amount determined under paragraph (a);

 

    	 	- 2 -	 

     

    

 

		(b)	60% of the book value of the inventory of the Credit Parties which is subject to the Security and
is located in Canada and the United States, but excluding work in process; and

 

		(c)	60% (rounded upwards to the next $5,000,000) of the market value of the Charged Fixed Assets but
only up to 50% of the aggregate amount of the Facility;

 

less the excess of (i) a reasonable estimate
of the aggregate of all amounts owing to creditors (including governments) whose claims are secured or protected by a Lien capable
of ranking pari passu with or prior to the Security with respect to such accounts receivables and inventory, over (ii)
$10,000,000;

 

“Borrowings”
means the Prime Rate Loans, the US Base Rate Loans, the Acceptances, the Libor Loans and the Letters of Credit;

 

“Branch of Account”
means, with respect to the Facility, a branch of a bank in Canada where the Administrative Agent has established an account for
the Facility, in each case as may be designated by the Administrative Agent from time to time as the applicable branch of account,
after consultation with Cascades;

 

“Business Day”
means a day on which banks are open for business in Montreal and in Toronto, excluding Saturday and Sunday; where such term is
used in the context of a US Base Rate Loan, such day must also be a day on which banks are open for business in New York City and
where such term is used in the context of a Libor Loan, such day must also be a day on which banks are open for business in London,
England;

 

“Cascades Indentures”
refers collectively to (i) the indenture dated as of June 19, 2014 between Cascades and Computershare Trust Company of Canada providing
for the issue of notes due in 2021, (ii) the indenture dated as of June 19, 2014 between Cascades and Wells Fargo Bank, National
Association providing for the issue of notes due in 2022, (iii) the indenture dated May 19, 2015 between Cascades and Wells Fargo
Bank National Association providing for the issue of notes due in 2023, (in each case, as any such indenture may be amended or
supplemented from time to time), and (iv) any other indenture or instrument providing for the issue or incurrence of Funded Debt
the proceeds of which are used to refinance any of the notes issued under the indentures referred to in clauses (i) to (iii) inclusively
or for any other general corporate purposes provided that such Funded Debt has a stated maturity falling beyond the Facility Maturity
Date;

 

“CDOR
Rate” means, for any day, the arithmetic average of the Dollar bankers’ acceptances offered discount rates
for the applicable period which appear on the Reuters service at 10:00 a.m., or if such day is not a Business Day, then on the
immediately preceding Business Day; provided however, that if such rates are not available, then the CDOR Rate for any day will
be the bankers’ acceptances discount rate of the Administrative Agent for the applicable period as of 10:00 a.m. on such
day, or if said day is not a Business Day, then on the immediately preceding Business Day, provided that if on any day the CDOR
Rate so determined is less than zero percent, then the CDOR Rate on such day will be deemed to be zero percent;

 

    	 	- 3 -	 

     

    

 

“Charged Fixed
Assets” means the fixed assets of the Credit Parties which are subject to the Security in accordance with Section 10.3;

 

“Collateral Agent”
means The Bank of Nova Scotia or any successor collateral agent appointed pursuant to Section 18.13;

 

“Commitment”
means, with respect to each Lender, its proportion (expressed as a percentage or as an amount, as the case may be) of the amount
of the Facility or, as the case may be, of any of Tranche A or Tranche B, as specified opposite its name on the signature pages
of this Agreement, subject however to any readjustment resulting from an increase or a reduction in the amount of the Facility,
a change in the amount of any Tranche or from an assignment of Commitment made pursuant to this Agreement;

 

“Control”
(including any correlative term) means the possession, directly or indirectly, of the power to direct or cause the direction of
the management or policies of a Person (whether through ownership of securities or partnership or trust interests, by contract
or otherwise); without limiting the generality of the foregoing (i) a Person is deemed to Control a corporation if such Person
(or such Person and its Affiliates) holds outstanding shares or other rights carrying more than 50% of the voting power in the
election of the board of directors of the corporation, (ii) a Person is deemed to Control a partnership if such Person (or such
Person and its Affiliates) holds more than 50% in value of the equity of the partnership, (iii) a Person is deemed to Control a
trust if such Person (or such Person and its Affiliates) holds more than 50% in value of the beneficial interests in the trust,
and (iv) a Person that controls another Person is deemed to Control any Person controlled by that other Person;

 

“Corporate Structure
Chart” means the corporate and capital structure of Cascades and its Subsidiaries and the other information relating
to them, as described in the chart dated as of the date of this Agreement to be delivered by Cascades pursuant to Section 9.1
(as may be updated from time to time thereafter by the delivery of any such update to the Administrative Agent);

 

“Credit Card Creditor”
has the meaning given to such term in Section 10.5;

 

“Credit Documents”
means this Agreement, the Security Documents, any note issued pursuant to Section 20.6 and any other present and future document
relating to any of the foregoing, in each case, as amended, supplemented or restated;

 

“Credit Parties”
means each of the Borrowers and their Subsidiaries, but excluding (i) Persons in which investments are classified under GAAP as
joint ventures or minority investments, (ii) Reno de Medici S.p.A. and its Subsidiaries until such time as all shares of Reno de
Medici S.p.A. carrying voting power in all circumstances are owned by Cascades or a wholly-owned Subsidiary thereof, (iii) 27102009
USA Inc. and its Subsidiaries until such time as all shares of the project vehicle formed for the purposes of the construction
and operation of the “Greenpac” project carrying voting power in all circumstances are owned by Cascades or a wholly-owned
Subsidiary thereof, and (iv) Cascades Europe S.A.S. and its Subsidiaries;

 

    	 	- 4 -	 

     

    

 

“Default”
means any event or circumstance which constitutes an Event of Default or which, with the passage of time, the giving of a notice
or both, would constitute an Event of Default;

 

“Designated Subsidiaries”
means the Subsidiaries of Cascades (other than a Borrower) designated as Designated Subsidiaries pursuant to Section 1.3;

 

“Discount Rate”
means on any day,

 

		(a)	in respect of any Acceptance accepted by a Lender that is a Canadian Schedule I bank, the CDOR
Rate on such day for the applicable period; and

 

		(b)	in respect of any Acceptance to which clause (a) does not apply, the lesser of (x) the discount
rate of such Lender in effect at or about 10:00 a.m. on the relevant date for bankers’ acceptances (or equivalent instruments
if such Lender does not customarily accept bankers’ acceptances) of such Lender for a period comparable to the period of
such Acceptance and (y) the CDOR Rate plus 0.10%, provided that for greater certainty such latter rate will apply to any Lender
that does not have a discount rate as contemplated in (x);

 

“Discounted Proceeds”
means, with respect to any issue of Acceptances, an amount (rounded to the nearest whole cent and with one-half of one cent being
rounded up) calculated by multiplying:

 

		(a)	the aggregate face amount of such Acceptances; by

 

		(b)	the price, where the price is determined by dividing one by the sum of one plus the product of:

 

		(i)	the Discount Rate applicable to such Acceptances (expressed as a decimal); and

 

		(ii)	a fraction, the numerator of which is the number of days in the period of such Acceptances and
the denominator of which is 365;

 

with the price as so determined being rounded
up or down to the fifth decimal place and .000005 being rounded up;

 

“Distribution”
means any payment in cash or in kind that provides an income (including interest or dividend) or a return on, or constitutes a
distribution or redemption of, the equity or capital of a Person (other than by way of the issuance of new equity interests);

 

“Dollar”
and the symbol $ mean lawful money of Canada;

 

“EBITDA”
means, with respect to Cascades, the net income of Cascades for the rolling four-quarter period ending on the date that EBITDA
is determined, plus the following items, to the extent such items have been deducted in calculating net income:

 

    	 	- 5 -	 

     

    

 

		(a)	Interest Expense;

 

		(b)	income taxes;

 

		(c)	depreciation;

 

		(d)	non-cash compensation expenses for grants of performance shares or stock options to the extent
same are not redeemable for cash;

 

		(e)	non-cash restructuring charges or reserves, including in relation to severance and termination
costs, pension settlement, future lease commitments, consolidation of facilities and employee relocation costs; and

 

		(f)	other non-cash items, including resulting from amortization, write-up, write-down or write-off
of any kind of tangible assets (other than inventory) or intangible assets (including goodwill and deferred financing costs), but
to the extent that they do not represent an accrual of or reserve for cash expenditures in any future period;

 

minus the following item:

 

		(g)	cash payments made during such period in respect of non-cash items referred to above which had
been added to net income during a prior period;

 

provided that net income is calculated excluding:

 

		(h)	the equity of Cascades in the net income of any other Person that is not a Credit Party to the
extent same has not been distributed in cash to a Credit Party by way of Distributions (it being understood that all cash dividends
received by a Credit Party from non-Credit Parties are included in its net income);

 

		(i)	gains or losses arising from (i) the translation of any long-term debt payable in a foreign currency,
(ii) Hedging Agreements and other derivative agreements, (iii) any refinancing, repurchase or extinguishment of Funded Debt, and
(iv) extraordinary, unusual or non-recurring items not otherwise dealt with in the definition of EBITDA including fees and expenses
relating to any event or transactions giving rise to such items;

 

		(j)	non-cash items that will not result in the receipt of cash payments in any future period; and

 

		(k)	the net income of any Subsidiary to the extent that the payment of Distributions of net income
by that Subsidiary is not at the date of determination permitted (i) without prior governmental approval (that has not been obtained),
or (ii) pursuant to the terms of its constitutive documents or any agreement, order, law or regulation applicable to such Subsidiary
or its shareholders;

 

“Effective Date”
means the date this Agreement becomes effective as provided in the first sentence of Section 9.1;

 

    	 	- 6 -	 

     

    

 

“Environmental
Laws” shall mean all laws, rules and regulations, and any orders or legally binding policies, in each case as
now or hereafter in effect, relating to the regulation or protection of human health, safety or the environment or to emissions,
discharges, releases or threatened releases of pollutants, contaminants, chemicals or toxic or hazardous substances or wastes into
the indoor or outdoor environment, including, without limitation, ambient air, soil, surface water, ground water, wetlands, land
or subsurface strata, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of pollutants, contaminants, chemicals or toxic or hazardous substances or wastes;

 

“Equity Derivative”
means any derivative agreement entered into by a Credit Party in connection with the Credit Parties’ stock option plans or
grant of performance shares and capable to protect Credit Parties against fluctuations of equity securities;

 

“ERISA”
means the Employee Retirement Income Security Act of 1974 of the United States, as amended from time to time;

 

“ERISA
Affiliate” means any corporation or trade or business that is a member
of any group of organizations (i) described in Section 414(b) or (c) of the US Revenue Code of which any Credit Party is a member
and (ii) solely for purposes of potential liability under Section 302(c)(11) of ERISA and Section 412(c)(11) of the US Revenue
Code and the lien created under Section 302(f) of ERISA and Section 412(n) of the US Revenue Code, described in Section 414(m)
or (o) of the US Revenue Code of which any Credit Party is a member;

 

“Event of Default”
has the meaning given to such term in Section 16.1;

 

“Facility”
means the revolving facility made available to the Borrowers pursuant to Section 2.1, by way of Tranche A and Tranche B;

 

“Facility Maturity
Date” means July 7, 2021, or such subsequent date as may be agreed on pursuant to Section 2.14;

 

“Funded Debt”
means, with respect to a Person, and without duplication, all obligations that under GAAP should be classified on such Person’s
balance sheet as liabilities or to which reference should be made by footnotes thereto, (i) including, whether or not so classified,
Guarantees and Liens granted in respect of Funded Debt of another Person, but (ii) excluding Subordinated Debt, future income taxes,
employees future benefits, the negative mark-to-market value of unrealized losses on Hedging Agreements and Equity Derivatives,
assets retirement obligations, deferred revenues, as well as trade accounts payable, obligations under operating leases and all
other accrued obligations and liabilities incurred in the ordinary course of business;

 

“Funded Debt to
Capitalization Ratio” means the ratio of Funded Debt to the sum of Funded Debt and shareholders’ equity (with shareholders’
equity being calculated including Subordinated Debt), provided that for the purposes of calculating this ratio:

 

		(a)	the mark-to-market value of Hedging Agreements relating to obligations for monies borrowed or raised
in US Dollars (i) if positive, will be deducted from Funded Debt and (ii) if negative, will be included in Funded Debt;

 

		(b)	cash and cash equivalents will be deducted from Funded Debt to the extent that the requirements
of Section 10.2(b) are met, but only up to an aggregate amount not exceeding $50,000,000;

 

    	 	- 7 -	 

     

    

 

		(c)	preferred shares redeemable in cash at the option of the issuer with no possibility of redemption
prior to the Facility Maturity Date or convertible in shares of another class at the option of the issuer or holder thereof may
be included in shareholders’ equity (and excluded from Funded Debt) even if they are treated as liabilities under GAAP; and

 

		(d)	other adjustments in shareholders equity as a result of changes in GAAP which came into effect
on January 1, 2011 will not reduce shareholders equity for the portion thereof that is not in excess of $225,000,000;

 

“GAAP”
means generally accepted accounting principles in Canada (including the International Financing Reporting Standards to the extent
applicable) which are in effect from time to time (subject however to Section 1.6(b));

 

“Guarantee”
means any obligation or arrangement, contingent or not, directly or indirectly (i) guaranteeing any liability or indebtedness of
any Person, or (ii) protecting a creditor of any Person from a loss in respect of any such liability or indebtedness, or (iii)
intended to ensure that any Person will maintain certain financial conditions such as financial ratios or solvency or liquidity
requirements, or (iv) having the same economic effect as any of the foregoing;

 

“Hedging Agreement”
means any foreign exchange contract, interest rate hedging contract and any other financial contract or arrangement capable to
protect a Credit Party against fluctuations in currencies, interest rates or commodities;

 

“Hedging Creditor”
has the meaning given to such term in Section 10.5;

 

“Initial Credit
Agreement” has the meaning given to such term in the Recitals;

 

“Interest Coverage
Ratio” means the ratio of EBITDA to Interest Expense for the period EBITDA has been calculated;

 

“Interest Expense”
means, for any period, the aggregate amount of interest and other financing expenses during such period, net of interest income,
in each case determined in accordance with GAAP, but (i) including interest and other financing charges which have been capitalized,
but however (ii) excluding amortization of financing expenses and debt discount or premium, deferred gains or losses on the translation
of any long-term debt payable in foreign currency or non-recurrent upfront and financing costs, (iii) excluding unrealized gains
or losses arising from Hedging Agreements, (iv) excluding any gain or loss arising from any refinancing, repurchase or extinguishment
of Funded Debt, and (v) excluding the non-cash portion of the net interest expense related to the net position of defined benefit
liability (asset);

 

“Issuing Lender”
means, in respect of any Tranche, the Lender who is the Swingline Lender under such Tranche, provided that Cascades will be entitled
with the consent of the Administrative Agent to replace an Issuing Lender by another Lender who has a Commitment under the applicable
Tranche and is willing to issue Letters of Credit;

 

    	 	- 8 -	 

     

    

 

“Lender”
means each of the Persons having executed this Agreement as Lender and any other Person who becomes a Lender pursuant to an assignment
or a designation made in accordance with Section 20.4 or Section 20.5;

 

“Letter of Credit”
means a documentary or standby letter of credit or a letter of guarantee issued pursuant to this Agreement;

 

“Libor”
means, with respect to any Libor Loan, the annual rate of interest determined by the Administrative Agent as being the average
(rounded upwards to the nearest multiple of 0.01%) of the rates for deposits in US Dollars or in Euros (as applicable) in the London
interbank market which is shown on the applicable page of the Reuters service as of 11:00 a.m. (London, England time) on the second
Business Day prior to the commencement of the applicable Libor Loan and for a comparable period, or if such rate is not available,
the annual rate (rounded up to the nearest 0.01%) which the Administrative Agent is prepared to offer in the London interbank market
for taking deposits in U.S. Dollars or Euros (as applicable) at approximately 11:00 a.m. (London time) on the second Business Day
prior to the commencement of the applicable Libor Loan and for a comparable period; provided that if any annual rate so determined
is a negative rate (below zero percent), then in such case Libor for the applicable Libor Loan will be deemed equal to zero percent
for the period of such Loan;

 

“Libor Loan”
means a loan denominated in US Dollars or in Euros bearing interest at Libor for US Dollars or Euros, as applicable, plus the Applicable
Margin;

 

“Lien”
means any hypothec, security interest, mortgage, lien, right of preference, pledge, assignment by way of security or any other
agreement or encumbrance of any nature that secures the performance of an obligation, and a Person is deemed to own subject to
a Lien any property or assets that it has acquired or holds subject to the right of a vendor or lessor under any conditional sale
agreement, capital or synthetic lease or similar agreement (other than an operating lease) relating to such property or assets;

 

“Majority Lenders”
means any group of Lenders whose Commitments amount in the aggregate to more than 50% of the aggregate amount of the Facility;

 

“Material Adverse
Change” means any change, condition, event or occurrence which, when considered individually or together with other changes,
conditions, events or occurrences, could reasonably be expected to have a Material Adverse Effect;

 

“Material Adverse
Effect” means (i) a material adverse effect on the condition (financial or otherwise), business, operations, assets,
liabilities (absolute or contingent) or prospects of the Credit Parties taken as a whole, (ii) a material adverse effect on the
ability of Cascades or of the Credit Parties taken as a whole to perform their obligations under any Credit Document, or, (iii)
a material impairment of the rights or remedies of the Lenders under any Credit Document;

 

“Net Tangible
Assets” means, in respect of Cascades, total assets, after deducting current liabilities and non-controlling interests,
and less, to the extent otherwise included in total assets, the amounts of (without duplication) (i) reevaluations and other write-ups
of assets subsequent to June 30, 2015, and (ii) goodwill and other intangible assets, in each case calculated on an Adjusted Consolidated
Basis;

 

    	 	- 9 -	 

     

    

 

“Non-Designated
Subsidiaries” means the Subsidiaries of Cascades (other than Borrowers and non-Credit Parties) that are not Designated
Subsidiaries;

 

“PBGC”
shall mean the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA;

 

“Permitted Liens”
means:

 

		(a)	Liens imposed or arising by operation of law, in each case, in respect of obligations which have
not been enforced or are being contested in good faith and by appropriate proceedings to the extent that adequate reserves are
maintained;

 

		(b)	pledges or deposits made in the ordinary course of business in connection with bids, or tenders
or to obtain performance bonds or to comply or ensure compliance with the requirements of any law or regulation applicable to a
Credit Party or its business or assets;

 

		(c)	Liens
                                         granted by Credit Parties incorporated in a member state of the European Union on their
                                         accounts receivable and inventory not subject to the Security and securing credit facilities
                                         made available to such Credit Parties in an aggregate amount at any time not exceeding
                                         $                  ;

 

		(d)	Liens (other than Liens permitted pursuant to paragraph (e) below) securing obligations incurred
in connection with the purchase or the lease of any real or immovable property, improvement thereto and equipment or securing any
renewal, extension or replacement of such obligations, provided that any such Lien charges only the property so purchased or leased
and for an amount not in excess of the related obligation and that the aggregate of all outstanding amounts secured by such Liens
does not at any time exceed for all Credit Parties the greater of $150,000,000 and 7.5% of the Net Tangible Assets of Cascades
and provided further that no such property is part of Charged Fixed Assets or is material to the operations of such assets;

 

		(e)	Liens
                                         existing on the date hereof and listed in the Permitted Liens list dated February 10,
                                         2011 delivered to the Administrative Agent on that date and any renewal, extension or
                                         replacement of any such Lien provided that no such renewal, extension or replacement
                                         may extend to property other than that initially charged by such Lien and that the aggregate
                                         of all outstanding amounts secured by Liens permitted under this paragraph does not at
                                         any time exceed $50,000,000 and provided further that no property charged by such Liens
                                         is part of Charged Fixed Assets or is material to the operation of such assets                                                                                                                                                                                                                                                       ;

 

		(f)	Liens securing loans and advances made by a Credit Party to another Credit Party, provided such
loans and advances are subject to the Security;

 

    	 	- 10 -	 

     

    

 

		(g)	Liens securing obligations under a Securitization or Factoring Program, provided that such Liens
charge only accounts receivable sold pursuant to such program; and

 

		(h)	Liens by way of deposits or pledges of segregated property consisting of cash and cash equivalents
(including marketable securities) to secure obligations under (i) Hedging Agreements with counterparties other than Hedging Creditors,
and (ii) Equity Derivatives with counterparties who are Lenders, provided that the aggregate value of the property subject to all
such Liens does not at any time exceed $25,000,000;

 

		(i)	Liens granted by Cascades Recovery Inc. to Metauro Group Holdings Inc. securing the $28,800,000
balance of purchase price payable by Cascades Canada ULC to Metauro Group Holdings Inc. pursuant to the terms of the share purchase
agreement dated as of November 27, 2015 between Cascades Canada ULC, Metauro Group Holdings Inc., Albino Metauro and Anthony Metauro;

 

“Person”
means any natural person, legal person, corporation, company, partnership, joint venture, unincorporated organization, business
trust or any other entity;

 

“Plan”
means an employee benefit or other plan established or maintained by a Credit Party or any ERISA Affiliate and that is covered
by Title IV of ERISA;

 

“Prime Rate”
means, for any day, the greater of:

 

		(a)	the annual rate of interest established by the Administrative Agent (or the Swingline Lender concerned
where Section 2.8 applies) as being its reference rate then in effect for determining interest rates for commercial loans
denominated in Dollars made in Canada; and

 

		(b)	the CDOR Rate for bankers’ acceptances with a period of one month, plus 0.75%;

 

“Prime Rate Loan”
means a loan denominated in Dollars bearing interest at the Prime Rate, plus the Applicable Margin;

 

“Securitization
or Factoring Program” means any securitization or factoring program providing for the sale of accounts receivable of
any Credit Party, provided for greater certainty that no such program may permit borrowings against the value of accounts receivable;

 

“Security”
means the security, the guarantees and the loss payee designations contemplated in Article 10;

 

“Security Documents”
means any document or agreement evidencing or relating to the Security, including any subordination agreement contemplated herein;

 

    	 	- 11 -	 

     

    

 

“Solvent”
means, with respect to any Person, that as of the date of determination such Person is “solvent” within the meaning
given to that term and similar terms under applicable corporations laws or laws relating to voidable transactions or fraudulent
transfers or conveyances;

 

“Subordinated
Debt” means any debt of Cascades which is fully subordinated and postponed to the obligations of the Credit Parties to
the Lenders, the Hedging Creditors and the Credit Card Creditors under the Facility, the Hedging Agreements and credit card obligations
(respectively), and that the Administrative Agent, acting with the consent of the Majority Lenders, has agreed in writing to consider
as such for the purposes of this Agreement;

 

“Subsidiary”
means a Person that is under the Control of another Person;

 

“Swingline Lender”
means, in respect of Tranche A, The Bank of Nova Scotia as Lender and in respect of Tranche B, Comerica Bank as Lender, provided
that the Borrower concerned will be entitled with the consent of the Administrative Agent to replace a Swingline Lender by another
Lender who agrees to become a Swingline Lender and has a Commitment under the applicable Tranche;

 

“Tranche”
means any of Tranche “A” and Tranche “B”; “Tranche A” means the portion of the Facility
made available as Tranche A as provided in Section 2.1; “Tranche B” means the portion of the Facility made
available as Tranche B as provided in Section 2.1;

 

“US Base Rate”
means, for any day, the greater of:

 

		(a)	the annual rate of interest established by the Administrative Agent (or the Swingline Lender concerned
where Section 2.8 applies) as being its reference rate then in effect for determining interest rates for commercial loans
denominated in US Dollars made in Canada (in the case of US Base Rate Loans made under Tranche A) or made in New York City (in
the case of US Base Rate Loans made under Tranche B), but in each case, not less than zero percent;

 

		(b)	the
                                         federal funds effective rate in effect on such day (and if such day is not a Business
                                         Day, then on the preceding Business Day),                     ;
                                         the term “federal funds effective rate” means the rate usually designated
                                         as such and as published by the Federal Reserve Bank of New York for the relevant Business
                                         Day, or if such rate is not available on any Business Day, the rate that the Administrative
                                         Agent is prepared to offer, at approximately 9:00 a.m. on such day, for overnight deposits
                                         in US Dollars in New York; and

 

		(c)	but
                                         only in the case of US Base Rate Loans made under Tranche B, the Libor that would
                                         apply on such day for a period of one month,                        ;

 

“US Base Rate
Loan” means a loan denominated in US Dollars and bearing interest at the US Base Rate, plus the Applicable Margin;

 

“US Revenue Code”
shall mean the Internal Revenue Code of 1986 of the United States, as amended from time to time;

 

    	 	- 12 -	 

     

    

 

		1.3	Designated Subsidiaries

 

		(a)	The Subsidiaries of Cascades listed in Schedule B hereof are hereby designated as Designated
Subsidiaries.

 

		(b)	Cascades may designate any other of its Subsidiaries that is a Credit Party (other than a Borrower)
as a Designated Subsidiary upon giving prior notice to the Agents specifying the date of effectiveness of the designation (which
must be after the date of the notice). Any such designation will be effective on the date specified in the notice and no such designation
may be cancelled or revoked.

 

		(c)	Each Designated Subsidiary must be at all times a wholly-owned Subsidiary of Cascades and must
provide Security as and to the extent required by Article 10.

 

		(d)	Cascades covenants that the Non-Designated Subsidiaries will include no Subsidiary of Cascades
who is directly or indirectly liable for the payment of obligations under any of the Cascades Indentures or Funded Debt issued
thereunder.

 

		1.4	Additional Borrowers

 

		(a)	Cascades may designate any of its wholly-owned Subsidiary as an additional Borrower (“Additional
Borrower”) under the Facility upon giving to the Agents a prior notice of such designation, such notice to be accompanied
by an accession agreement executed by the Additional Borrower, Cascades and such Subsidiary whereby the latter will agree to become
a Borrower and to be bound by the provisions of this Agreement.

 

		(b)	Any Additional Borrower so designated must be incorporated under the laws of Canada or a province
thereof (in which case it will be an Additional Borrower but under Tranche A only) or under the laws of a state of the United States
of America (in which case it will be an Additional Borrower but under Tranche B only).

 

		(c)	Any such designation will be effective when the Administrative Agent confirms to Cascades and the
Lenders that the following documents have been received by the Administrative Agent to its satisfaction: (i) the constitutive documents
of the Additional Borrower and a certificate as to its legal existence, (ii) a resolution of the board of directors of the Additional
Borrower evidencing the authority of the Persons acting on behalf of the Additional Borrower, (iii) an amendment to the Security
Documents to the effect that they also secure the obligations of the Additional Borrower, (iv) a legal opinion from counsel to
the Additional Borrower relating to such matters as the Agents may reasonably require, and (v) a confirmation by each Lender that
it has received the information requested by it pursuant to Section 12.3 to comply with its “know your customer” obligations
in respect of the Additional Borrower.

 

    	 	- 13 -	 

     

    

 

		1.5	Currency Conversions

 

Where any amount expressed
in any currency has to be converted or expressed in another currency, or where its equivalent in another currency has to be determined
(or vice versa), the calculation is made at the spot rate announced by the Bank of Canada in accordance with its normal
practices at or around 16:30 pm on the previous Business Day for the relevant currency against the other currency (or vice versa).
If the Bank of Canada does not announce such a rate, then the Administrative Agent or the Issuing Lender concerned (as applicable)
will use the spot rate available from the Bloomberg service, or if such rate is not available, its own spot rate or, if it does
not have its own rate, a rate it determines to be reasonable;

 

		1.6	GAAP, Calculations and Historical Adjustments

 

		(a)	Unless otherwise provided, (i) terms and expressions of an accounting or financial nature have
the respective meanings given to such terms and expressions under GAAP; (ii) calculations must be made and financial statements
must be prepared in accordance with GAAP insofar as applicable, and (iii) financial ratios must be calculated on an Adjusted Consolidated
Basis.

 

		(b)	In the event of a change in GAAP having a material effect on the intent or the application of the
provisions of this Agreement which are of a financial nature, Cascades and the Administrative Agent, at the request of either of
them, will use reasonable efforts to negotiate amendments to the affected provisions in order to preserve their original intent
or to facilitate their application provided that all such amendments will be subject to Article 19. Should no such amendments be
agreed on by Cascades and the Lenders within 120 days from any such request, then the affected provisions will be applied
as if the change in GAAP giving rise to the request had not occurred.

 

		(c)	If any business is acquired, discontinued or disposed of during any period in respect of which
EBITDA or Interest Expense has to be calculated, the historical financial results of such business will be included or excluded
(as applicable) in the relevant calculations for that period as if the acquisition, disposition or discontinuance had occurred
on the first day of said calculation period, but with such adjustments to said historical results as may be made by Cascades and
are acceptable to the Majority Lenders.

 

		1.7	Time

 

Except where otherwise
indicated, any reference to time means local time in Montreal.

 

		1.8	Headings and Table of Contents

 

The headings and the Table
of Contents are inserted for convenience of reference only and do not affect the construction or interpretation of this Agreement.

 

		1.9	Governing Law and Jurisdiction

 

		(a)	This Agreement is governed by and construed in accordance with the laws of the Province of Quebec
and the laws of Canada applicable therein.

 

		(b)	Any legal proceedings arising out of this Agreement may be instituted in the Superior Court of
the district of Montreal (Quebec) and the parties submit to the non-exclusive jurisdiction of such court.

 

    	 	- 14 -	 

     

    

 

		1.10	Previous Agreements

 

This Agreement supersedes
any previous agreement in connection with the Facility.

 

		1.11	Inconsistency

 

In the event of inconsistency
between this Agreement and any other Credit Document, the provisions of this Agreement must be accorded precedence.

 

Article
2 - The Facility

 

		2.1	Amount of the Facility

 

The Lenders, individually,
and not solidarily (and not jointly and severally), agree to make available to the Borrowers a revolving credit facility (the “Facility”)
in an aggregate maximum amount at any time not exceeding the total of the Commitments under the Facility in effect at such time.
As of the date hereof, the Commitment of each Lender under the Facility is as specified opposite its name on the signature pages
of this Agreement and the collective Commitments of the Lenders with respect to the Facility aggregate to $750,000,000. The Facility
is available in two tranches, Tranche A and Tranche B, as follows:

 

		(a)	Tranche A, in the amount of $100,000,000 on the date hereof, is available to Cascades and, as the
case may be, any Additional Borrower in the proportion as to each Lender of its Commitment under Tranche A; and

 

		(b)	Tranche B, in the amount of $650,000,000 on the date hereof, is available to Cascades US and, as
the case may be, any Additional Borrower in the proportion as to each Lender of its Commitment under Tranche B.

 

		2.2	Reallocation among Tranches

 

		(a)	Upon giving not less than ten Business Days prior notice to the Administrative Agent, Cascades
may change the allocations among Tranches set out in Section 2.1 (and, accordingly, the resulting available amounts of Tranche
A and Tranche B), in multiples of $5,000,000;

 

		(b)	Any reallocation will result in a corresponding adjustment in the amounts of the Commitments of
the Lenders under Tranche A and Tranche B, in order that the percentage of each Lender’s Commitment under any Tranche be
in the same percentage as under the Facility;

 

		(c)	Reallocations will be effective on the first Business Day of the quarter following the expiry of
said ten-day notice period. Any reallocation will remain in effect until the effective date of any subsequent reallocation replacing
same;

 

		(d)	No reallocation will be effective if, after giving effect thereto, the outstanding Borrowings under
any Tranche would exceed on the intended effective date of such reallocation the intended new amount of such Tranche.

 

		2.3	Purpose, Nature and Availability of the Facility

 

		(a)	The Borrowers will use the Facility for general corporate purposes.

 

    	 	- 15 -	 

     

    

 

		(b)	The Facility will revolve and, accordingly, Borrowings may be obtained, repaid and re-borrowed
by any Borrower under the applicable Tranche until the Facility Maturity Date.

 

		(c)	Any Borrower under the applicable Tranche may use such Tranche without the concurrence of notice
to any other Borrower.

 

		2.4	Borrowing Options

 

		(a)	Borrowings may be obtained by Cascades (or any Additional Borrower) under Tranche A in the form
of:

 

		(i)	Prime Rate Loans;

 

		(ii)	Acceptances;

 

		(iii)	US Base Rate Loans;

 

		(iv)	Libor Loans in US Dollars or Euros; and

 

		(v)	Letters of Credit;

 

		(b)	Borrowings may be obtained by Cascades US (or any Additional Borrower) under Tranche B in the form
of:

 

		(i)	US Base Rate Loans;

 

		(ii)	Libor Loans in US Dollars; and

 

		(iii)	Letters of Credit.

 

		2.5	Borrowing Base Limitations

 

The Borrowers must ensure
that all outstanding Borrowings under the Facility (expressed in Dollars) will not at any time exceed the lesser of the amount
at such time of the Facility and the Borrowing Base. Accordingly, no Borrower may request a Borrowing if the making of such Borrowing
would result in such limit being exceeded.

 

		2.6	Borrowings Proportionate to Commitments

 

Each Borrowing will be
made through the Administrative Agent at the applicable Branch of Account and will be allocated by the Administrative Agent among
the Lenders approximately in the proportion of their respective Commitments under the relevant Tranche subject however to the provisions
of Section 2.8 (Swingline Utilizations) and of Article 5 (Letters of Credit).

 

		2.7	Notice of Borrowings

 

To obtain a Borrowing (other
than a Letter of Credit), the Borrower concerned must give a notice to the Administrative Agent specifying:

 

		(a)	the applicable Tranche and the selected form of Borrowing;

 

		(b)	the amount of the Borrowing, with a minimum of (i) $5,000,000 (or US$5,000,000 or Euros 5,000,000
as the case may be) per Borrowing under Tranche A the Facility and (ii) US$5,000,000 per Borrowing under Tranche B;

 

    	 	- 16 -	 

     

    

 

		(c)	the date of the Borrowing, which must be a Business Day; and

 

		(d)	to the extent applicable, the period of the Borrowing.

 

The notice must be given
by telephone not later than 11:00 a.m. two Business Days prior to the Borrowing, except in the case of a Libor Loan where the notice
must be given not later than 10:00 a.m. three Business Days prior to the date of such Libor Loan. Each telephone notice must be
followed by a written confirmation on the same date, in the form of Schedule B or in any other manner as may be agreed between
the Administrative Agent and the relevant Borrower.

 

		2.8	Swingline Utilizations

 

		(a)	The notice and minimum amount requirements otherwise applicable to Borrowings do not apply to Borrowings
under the Facility in the form of Prime Rate Loans or US Base Rate Loans (as applicable) obtained from any Swingline Lender by
way of overdrafts in accounts opened and pursuant to agreements made for such purposes with the applicable Swingline Lender, up
to a maximum outstanding amount not exceeding $50,000,000 in Tranche A and $35,000,000 in Tranche B. Any cheque or payment instruction
or debit authorization from the Borrower concerned and resulting in an overdraft in any such account will be deemed to be a request
for such a Borrowing, in an amount that is sufficient to cover the overdraft.

 

		(b)	Such accounts may include accounts of the Borrower concerned and of other Credit Parties in respect
of which set-off and netting arrangements have been made with the applicable Swingline Lender, including any notional account reflecting
any such arrangements. The outstanding Borrowings owed to any Swingline Lender may be calculated after giving effect to said arrangements.

 

		(c)	The Administrative Agent may permit that Prime Rate Loans and US Base Rate Loans (as applicable)
under Tranche A or Tranche B be owing to the Lenders in proportions other than those of their respective Commitments under Tranche
A or Tranche B, as applicable. However, the Administrative Agent may from time to time, and will at the request of the applicable
Swingline Lender (which may be made at any time), make adjustments among the Lenders under any Tranche so that all Borrowings under
such Tranche be approximately in the proportion of the respective Commitments of the Lenders (including the Swingline Lender) under
said Tranche.

 

		(d)	For greater certainty, (i) this Section 2.8 does not authorize the Administrative Agent to
allow that Borrowings owing to a Lender (other than a Swingline Lender) under any Tranche exceed the amount of the Commitment of
such Lender under such Tranche, and (ii) the aggregate amount of the Borrowings outstanding under any Tranche (including Borrowings
from the applicable Swingline Lender) may not exceed the amount of such Tranche, as determined pursuant to Sections 2.1 and
2.2.

 

    	 	- 17 -	 

     

    

 

		2.9	Funding

 

		(a)	At the request of the Administrative Agent, (including following a request from a Swingline Lender),
each Lender will promptly pay to the Administrative Agent such Lender’s share of any Borrowing made or to be made by the
Administrative Agent on behalf of the Lenders and of any adjustment payable pursuant to Section 2.8(c). The Administrative
Agent will provide the Lenders with such information as may be necessary in order for the Lenders to make payments to the Administrative
Agent and fund their respective shares of any Borrowing.

 

		(b)	Any amount to be paid by a Lender to the Administrative Agent must be available to the Administrative
Agent at the Administrative Agent’s Office by 2:00 p.m. on the applicable day. Any amount to be disbursed by the Administrative
Agent to a Borrower will be made available to the relevant Borrower by crediting such Borrower’s account at the applicable
Branch of Account or at any other place to be agreed upon from time to time between the relevant Borrower and the Administrative
Agent.

 

		2.10	Lender’s Failure to Fund

 

If a Lender fails to advance
its share of any Borrowing and, despite such failure, the Administrative Agent advances such amount to a Borrower, the Administrative
Agent may recover such amount from such Lender or, if it is unable to do so, from such Borrower, with interest from the date of
disbursement at the rate applicable to Borrowings in the same form under the relevant Tranche. Nothing in this Section obliges
the Administrative Agent to fund any Borrowing or advance any sums on behalf of a Lender who has failed to comply with its obligations.

 

		2.11	Conversions and Renewals

 

		(a)	A Borrower may convert from one form of permitted Borrowings to another form of permitted Borrowings
the whole or any part of the outstanding Borrowings owed by it under the applicable Tranche and renew Acceptances and Libor Loans
owed by it, provided that (i) Acceptances and Libor Loans may not be converted prior to the maturity of their respective periods
and (ii) Letters of Credit may not be converted.

 

		(b)	Sections 2.4 to 2.10 (other than 2.8) apply to a conversion or a renewal with such modifications
as may be required.

 

		(c)	Unless they are repaid, converted or renewed upon the maturity date of their respective periods,
(i) Acceptances will then become Prime Rate Loans for the face amount of such Acceptances, (ii) Libor Loans in US Dollars will
then become US Base Rate Loans, and (iii) Libor Loans in Euros under Tranche A will then become Prime Rate Loans.

 

		(d)	Any conversion to Borrowings in another currency will be effected by the repayment of the Borrowings
to be so converted and by the re-borrowing of an equivalent amount in the other currency.

 

    	 	- 18 -	 

     

    

 

		2.12	Limitations on Lender’s Obligation to Fund

 

Each Lender’s obligation
to fund Borrowings is limited to such Lender’s Commitment under the relevant Tranche, subject however to the agreements made
with Swingline Lenders pursuant to Section 2.8(a). The obligations of the Lenders hereunder are not solidary (and are not
joint and several) and no Lender is responsible for the obligations of any other Lender.

 

		2.13	Increase of the Facility

 

		(a)	At any time following the execution of this Agreement but no later than the 180th day
preceding the Facility Maturity Date and so long as the amount of the Facility has not been voluntarily reduced by Cascades (but
solely pursuant to Section 7.5), Cascades may, by notice to the Administrative Agent, request an increase up to $250,000,000
in the amount of the Facility (an “increase”). The notice must specify:

 

		(i)	the amount of the proposed increase, which must be a multiple of $10,000,000, provided that the
aggregate amount of all increases made pursuant to this Section 2.13 may not exceed $250,000,000; and

 

		(ii)	the allocation of the proposed increase among the Tranches.

 

		(b)	Upon receipt of such notice, the Administrative Agent will offer to the Lenders to participate
in the increase pro rata to their Commitments. If some but not all of the Lenders accept the offer, then the Administrative
Agent will offer to the Lenders who have then accepted a portion of the increase to participate in the remaining unaccepted portion
of the increase pro rata to the Commitments of such Lenders. If after such offers,
any portion of the increase remains unaccepted, then Cascades will have the right to offer such portion to Persons who are
not Lenders, provided that any offer to any such Person would qualify as an assignment of Commitment hereunder, as if such offer
were an assignment.

 

		(c)	If offers made pursuant to Section 2.13(b) have been accepted, the Administrative Agent, the
Borrowers and the Lenders and other Persons who have accepted such offers will execute an amendment to this Agreement:

 

		(i)	providing that each Person who has accepted to participate in the increase will have a Commitment
equal to the amount of its participation in the increase (or an additional Commitment equal to such amount in the case of a Person
who is already a Lender); and

 

		(ii)	containing such other provisions as may be necessary to give effect to the increase including as
to the absence of a Default and the delivery of legal opinions.

 

		(d)	For greater certainty, (i) nothing in this Section is intended to commit any Lender to participate
or the Administrative Agent to arrange for a participation in an increase, and (ii) the aggregate amount of all increases made
pursuant to this Section 2.13 may not exceed $250,000,000. Notwithstanding any other provision of this Agreement, an amendment
agreement giving effect to an increase under this Section 2.13 will not require the consent of Lenders other than those participating
in the increase and the Agents, any Swingline Lender and any Issuing Lender.

 

    	 	- 19 -	 

     

    

 

		2.14	Extension of the Facility Maturity Date

 

		(a)	Cascades may request that the Facility Maturity Date be extended for a one-year period by delivering
to the Administrative Agent a written notice to that effect between April 1 and April 30 of each year (other than the year of the
Facility Maturity Date). If all Lenders agree to the extension request within 60 days from the receipt of such notice, the Administrative
Agent will notify Cascades of same and the Facility Maturity Date will be extended for a period of one year from its then current
date. Subject to Section 2.14(b), unless all Lenders agree in writing to the extension request within said 60-day period,
the Facility Maturity Date will not be extended.

 

		(b)	If a group of Lenders whose Commitments amount in the aggregate to more than 662⁄3% (but less
than 100%) of the Facility have agreed to an extension of the Facility Maturity Date within the 60-day period specified in Section 2.14(a),
the Administrative Agent will notify Cascades of same together with specifying the names of the Lenders who have not provided their
consent with such 60-day period (the “declining Lenders”). After receipt of such notice and for a period of
45 days, Cascades will be entitled to exercise any of the following options (or a combination of them):

 

		(i)	Cascades may require that any declining Lender assign its rights under the Facility to another
Person who has agreed to assume the Commitment of such declining Lender and to consent to the extension, provided that no such
assignment and assumption will be effective unless Section 20.4 be complied with and the consideration paid to such declining
Lender for the assignment include all amounts owed to such declining Lender in respect of the Facility (plus breakage costs, if
any);

 

		(ii)	Cascades may cancel in its entirety the Commitment of any declining Lender provided that no such
cancellation will be effective unless all amounts owed to such declining Lender in respect of the Facility (plus breakage costs,
if any) be paid to it.

 

		(c)	If the Commitments of all declining Lenders have been assumed or cancelled in accordance with Section 2.14(b)
within the period of time therein specified, the Administrative Agent will notify the Lenders of same and the Facility Maturity
Date will be extended for a period of one year from its then current date. However, if the Commitments of all declining Lenders
in respect of the Facility have not been so assumed or cancelled within such period of time, the Facility Maturity Date will not
be extended and the Administrative Agent will notify Cascades and the Lenders of same.

 

		(d)	For greater certainty, if an extension request is not made during any particular year or does not
give rise to an extension, such fact will not preclude Cascades from making an extension request during any subsequent year (other
than the year of the Facility Maturity Date).

 

    	 	- 20 -	 

     

    

 

Article
3 - Acceptances

 

		3.1	Period and Amounts

 

Acceptances:

 

		(a)	are for periods of one, two, three or six months (or such other periods agreed on by all Lenders),
but must mature on a date which is a Business Day and which is no later than the Facility Maturity Date;

 

		(b)	are denominated in Dollars, in multiples of $100,000 with a minimum of $5,000,000 per issue, provided
that the Administrative Agent may round each Lender’s allocation of such issue to the nearest $100,000 increment;

 

		(c)	constitute outstanding Borrowings for their face amount;

 

		(d)	do not bear interest nor carry any days of grace; and

 

		(e)	may be discounted by the Lenders for their own account or may be sold to third parties.

 

		3.2	Disbursement

 

		(a)	The amount to be disbursed to the Borrower concerned with respect to Acceptances discounted by
the Lenders is the Discounted Proceeds of such Acceptances, less the applicable acceptance fee.

 

		(b)	In the case of an issue of Acceptances for the purposes of replacing existing Borrowings, the Borrower
concerned must, concurrently with such issue, pay to the Administrative Agent an amount equal to the aggregate amount of the Borrowings
so replaced. The amount so paid to the Administrative Agent will be applied to the portion of the Borrowings which have been replaced
by such Acceptances.

 

		3.3	Power of Attorney

 

		(a)	Upon any issue of Acceptances, each Lender is authorized to sign, complete, endorse and deliver
on behalf of the Borrower concerned the Acceptances to be so issued and to do all things necessary or useful in order to facilitate
such issuance. The Administrative Agent is also authorized to make the necessary arrangements for the negotiation of Acceptances
intended to be sold on the money market.

 

		(b)	In the case of an issue of Acceptances by way of promissory notes to the order of Lenders who do
not customarily accept banker’s acceptances (as provided in paragraph (b) of the definition of Acceptances), the Borrower
concerned will be deemed to have issued the corresponding notes to such Lenders, without the necessity of physical execution and
delivery of any note.

 

		3.4	Depository Bills

 

A Lender who accepts Acceptances
that are “depository bills” within the meaning of the Depository Bills and Notes Act (Canada) may deposit same
with the CDS Clearing and Depository Services Inc. and such Acceptances may be dealt with in accordance with the rules and procedures
of such entity.

 

    	 	- 21 -	 

     

    

 

		3.5	Availability

 

		(a)	The availability of Acceptances (including by way of conversions or renewals) is subject (i) to
funds being available for such purpose in the Canadian money market and the CDOR Rate being available, and (ii) with respect to
any Lender, such Lender not having advised the Administrative Agent and Cascades that the Discount Rate is less than its effective
funding cost for Acceptances issued by Cascades to be sold on the Canadian money market. The Administrative Agent will notify Cascades
if Acceptances cease to be so available (either generally or with any particular Lender) as well as when availability resumes.
For so long as Acceptances are not available with any particular Lender, Borrowings with such Lender that otherwise would have
been made by way of Acceptances will be made by way of Prime Rate Loans, notwithstanding Section 2.6.

 

		(b)	The Borrowers under Tranche A must ensure that no more than ten different issues of Acceptances
be outstanding at any time, provided that on an occasional basis the Administrative Agent may permit such limit to be exceeded.

 

Article
4 - Libor Loans

 

		4.1	Amounts and Periods

 

		(a)	Libor Loans may be obtained for periods of one, two, three or six months (or such other periods
agreed on by all Lenders), but must mature on a Business Day which is not later than the Facility Maturity Date;

 

		(b)	Libor Loans must be in multiples of US$100,000 (or 100,000 Euros), with a minimum of (i) US$5,000,000
(or 5,000,000 Euros) under Tranche A, and (ii) US$5,000,000 under Tranche B; and

 

		(c)	The Borrowers must ensure that no more than ten different Borrowings by way of Libor Loans be outstanding
at any time under the Facility, provided that on an occasional basis the Administrative Agent may permit such limit to be exceeded.

 

		4.2	Changed Circumstances

 

If a Lender determines
that:

 

		(a)	it is unable to obtain US Dollars or Euros in the London inter-bank market,

 

		(b)	a law, regulation, administrative decision or guideline, or a Court decision has made it unlawful
or prohibits such Lender from making or maintaining Libor Loans in US Dollars or in Euros, or has imposed costs or constraints
on such Lender that do not exist on the date hereof in respect of Libor Loans in US Dollars or in Euros, or

 

		(c)	Libor is less than its effective funding cost for making or maintaining Libor Loans in the applicable
currency,

 

    	 	- 22 -	 

     

    

 

the affected Lender may so notify the Administrative
Agent and the Borrowers concerned and no Libor Loans (including by way of conversions or renewals) in the applicable currency may
be made with such Lender from the date of the notice until the cause of such determination has ceased to exist. In any such case,
Borrowings with such Lender that otherwise would have been made by way of Libor Loans in US Dollars or Euros will be made by way
of US Base Rate Loans or Prime Rate Loans (respectively) notwithstanding Section 2.6.

 

		4.3	Conversion Prior to Maturity

 

If it becomes unlawful
or prohibited for a Lender to maintain Libor Loans in US Dollars or in Euros, all Libor Loans owed to such Lender in US Dollars
or Euros will become US Base Rate Loans or Prime Rale Loans respectively on the date of the notice given pursuant to Section 4.2.

 

Article
5 - Letters of Credit

 

		5.1	Availability

 

Letters of Credit will
be issued by the applicable Issuing Lender in Dollars, US Dollars, Euros or any other freely tradable currency acceptable to such
Issuing Lender, for such transactions and on such terms and conditions as are mutually agreed upon between the Borrower concerned
and the applicable Issuing Lender and are not inconsistent with the provisions of this Article 5. Letters of Credit are available
only up to an aggregate outstanding amount (expressed in Dollars) at any time not exceeding, in respect of any Tranche, 20% of
the amount of such Tranche. The applicable Issuing Lender will notify the Administrative Agent of any request for the issuance
of a Letter of Credit.

 

		5.2	Maturity of Letters of Credit

 

No Letter of Credit may
have at any time a remaining term exceeding 365 days from such time or extending beyond the 180th day following the
Facility Maturity Date.

 

		5.3	Borrowings

 

		(a)	Any Letter of Credit constitutes from the date of its issue an outstanding Borrowing under the
applicable Tranche in a principal amount equal to the maximum amount of the obligation of the applicable Issuing Lender. Any Issuing
Lender will notify the Administrative Agent of the issue of any Letter of Credit at least one Business Day prior to the date of
such issue.

 

		(b)	For greater certainty, if Letters of Credit under any Tranche are outstanding on the Facility Maturity
Date or on any other date the Borrowings hereunder become due, the aggregate amount of such outstanding Letters of Credit must
be prepaid on such date by the Borrower concerned to the Administrative Agent (for the account of the applicable Issuing Lender).
However, if any such Letter of Credit expires or is cancelled without having been drawn, the amount prepaid in respect of same
will be reimbursed to the Borrower concerned but only if no indebtedness of the Borrowers hereunder is due and payable; otherwise,
any such amount will be remitted to the Administrative Agent to be applied to such indebtedness.

 

    	 	- 23 -	 

     

    

 

		5.4	Payments under Letters of Credit

 

		(a)	Any amount paid by an Issuing Lender under a Letter of Credit issued under Tranche A (and not repaid
on the same day or already prepaid) will constitute, as of the date of payment, a Prime Rate Loan, if the payment is made in Dollars
or in a currency other than the US Dollar, and a US Base Rate Loan if the payment is made in US Dollars. Any amount paid by an
Issuing Lender under a Letter of Credit issued under Tranche B (and not repaid on the same day or already prepaid) will constitute,
as of the date of payment, a US Base Rate Loan. Any such Loan will be allocated among the Lenders pro rata to their
respective Commitments under the applicable Tranche. Each Lender must fund such loan by remitting to the Administrative Agent (for
the account of the applicable Issuing Lender) the amount of its share of such loan. The provisions of Section 2.10 will apply
in the event of non-disbursement by a Lender.

 

		(b)	If an Issuing Lender has paid an amount under a Letter of Credit in a currency other than the currency
of the resulting Loan, such amount will be converted into the applicable currency on the date of payment.

 

		5.5	Indemnity

 

The Borrower concerned
will reimburse and indemnify the Agents, any Issuing Lender and the Lenders in respect of any reasonable cost, loss or damage incurred
or suffered by them in connection with Letters of Credit or litigation relating thereto (including proceedings to restrain an Issuing
Lender from making or to compel it to make a payment), including reasonable legal fees and other costs of litigation, except for
any cost, loss or damage resulting from the wilful misconduct or gross negligence of any Agent, any Issuing Lender or the Lenders.

 

		5.6	I.C.C. Rules

 

Unless otherwise provided
in this Agreement or in any agreement relating to their issue, Letters of Credit are governed by the Uniform Customs and Practice
for Documentary Credits (I.C.C. Publication 600, 2007 revision).

 

Article
6 - Fees And Interest

 

		6.1	Letter of Credit Fees

 

The Borrower concerned
must pay a fee for each Letter of Credit. The fee for each Letter of Credit which is either a non-documentary letter of credit
or a letter of guarantee will be at an annual rate equal to the Applicable Rate. The fee for each documentary Letter of Credit
will be determined on the basis of the rate then offered by the applicable Issuing Lender to its customers for similar documentary
letters of credit. Fees are calculated on the face amount of each Letter of Credit for the number of days included in the period
of same. Any such fee must be paid to the Administrative Agent quarterly in arrears on the first Business Day of each calendar
quarter (commencing with the quarter of the issue of the relevant Letter of Credit), for distribution to the Lenders pro rata
to their Commitments under the relevant Tranche. Concurrently with the payment of any such fee, the Borrower concerned must
also pay to the applicable Issuing Lender, for its own account, a fronting fee at an annual rate equal to        %,
calculated as aforesaid.

 

    	 	- 24 -	 

     

    

 

		6.2	Administrative Charges with respect to Letters of Credit

 

The Borrower concerned
must pay to the applicable Issuing Lender administrative charges in connection with Letters of Credit at the rates and on the terms
generally applicable to the other customers of such Issuing Lender.

 

		6.3	Standby Fee

 

Cascades must pay to each
Lender, through the Administrative Agent, a standby fee on the unused portion of such Lender’s Commitment. The standby fee
will be calculated daily from the most recent date on which it has been paid under the Initial Credit Agreement. The stand-by fee
will be calculated for any day at the Applicable Rate and will be payable quarterly in arrears on the first Business Day of the
following quarter.

 

		6.4	Acceptance Fees

 

Upon the issue of any Acceptance,
Cascades must pay to the relevant Lender (or to the Administrative Agent for the account of such Lender) an acceptance fee at an
annual rate equal to the Applicable Rate. The acceptance fee will be calculated on the face amount of the applicable Acceptance
and for the number of days included in the period of same. Any such payment may be made in the manner provided in Section 3.2(a).

 

		6.5	Other Fees

 

Cascades must pay, on the
Effective Date, an extension fee calculated at an annual rate of 6.5 bps calculated on each Commitment for a period of two years.
The annual agency fee payable to the Administrative Agent will continue to be payable in accordance with the agency fee letter
executed by Cascades prior to the date of this Agreement.

 

		6.6	Interest on Prime Rate Loans

 

Prime Rate Loans bear interest
until they are converted or repaid in full (both before and after any Event of Default or judgment) at the Prime Rate in effect
from time to time, plus the Applicable Margin. The interest is payable by the Borrower concerned monthly in arrears on the first
Business Day of the following month.

 

		6.7	Interest on US Base Rate Loans

 

US Base Rate Loans bear
interest until they are converted or repaid in full (both before and after an Event of Default or judgment) at the US Base Rate
in effect from time to time, plus the Applicable Margin. The interest is payable by the Borrower concerned monthly in arrears on
the first Business Day of the following month.

 

		6.8	Interest on Libor Loans

 

Each Libor Loan bears interest
at the Libor applicable to each such loan, plus the Applicable Margin. The interest is payable by the Borrower concerned at the
maturity of the period of the loan or, if the period of such loan is more than three months, at three-month intervals during the
period of the loan.

 

    	 	- 25 -	 

     

    

 

		6.9	Calculation of Interest Rates

 

		(a)	Interest rates and fees calculated at the Applicable Margins or Rates are annual rates and are
calculated daily on the basis of a 365-day year, except for (i) Libor Loans, (ii) US Base Rate Loans under Tranche A when paragraph
(b) of the definition of US Base Rate applies to such loans, and (iii) US Base Rate Loans under Tranche B, where in each case rates
are calculated on the basis of a 360-day year.

 

		(b)	For the purposes of the Interest Act (Canada) only, the annual rate of interest equivalent
to a rate otherwise calculated under this Agreement is equal to the rate so calculated multiplied by the actual number of days
included in a given year and divided by 365 days (or by 360 days, in the case of a rate calculated on the basis of a 360-day year).

 

		6.10	Interest on Arrears

 

		(a)	Any amount (other than an amount due on account of principal or interest) which is not paid when
due will bear interest at the Prime Rate in effect from time to time, increased by 2%, in the case of an amount to be paid in Dollars
and at the US Base Rate in effect from time to time, increased by 2%, in the case of an amount to be paid in US Dollars or any
other currency (other than the Dollar).

 

		(b)	Any interest which is not paid when due will bear interest at the rate that has been used to calculate
such unpaid interest.

 

		(c)	Interest on arrears is compounded monthly and is payable on demand.

 

Article
7 - Repayment, Prepayment and Reduction

 

		7.1	Repayment of the Facility

 

Cascades and any Additional
Borrower under Tranche A must repay in full the outstanding Borrowings and pay all other amounts owing under Tranche A on the Facility
Maturity Date. Cascades US and any Additional Borrower under Tranche B must repay in full all outstanding Borrowings and pay all
other amounts owing under Tranche B on the Facility Maturity Date.

 

		7.2	Mandatory Prepayments

 

The Borrowers concerned
must make such prepayments as may be necessary to ensure (i) that all outstanding Borrowings under any Tranche (expressed in Dollars)
will not at any time exceed the amount of such Tranche, and (ii) that the aggregate of all outstanding Borrowings under the Facility
(expressed in Dollars) will not at any time exceed the Borrowing Base. Any such prepayment will be applied by the Administrative
Agent as specified by the Borrower making the prepayment or otherwise as the Administrative Agent may determine to eliminate the
excess.

 

    	 	- 26 -	 

     

    

 

		7.3	Optional Prepayments

 

		(a)	Prepayments may be made at any time on Borrowings outstanding under Tranche A or Tranche B
without affecting the right of any Borrower to re-borrow under the applicable Tranche up to its maximum available amount. Any such
prepayment (except for a prepayment applied to overdraft utilizations pursuant to Section 2.8) must be in an amount of at
least $2,000,000 or US$2,000,000 or 2,000,000 Euros (as applicable) and is subject to the Borrower concerned giving a one-Business
Day prior notice to the Administrative Agent.

 

		(b)	For greater certainty, any prepayment in respect of Acceptances or Libor Loans is subject to Section 20.10(c).

 

		7.4	Exchange Rate Fluctuations

 

If, at any time, due to
fluctuations in the rate of exchange of a currency against another currency, the outstanding amount of the Borrowings under any
Tranche (expressed in Dollars), exceeds the amount of such Tranche, Cascades must pay to the Administrative Agent, three Business
Days following a demand to that effect, the amount of such excess. However, no such demand may be made as long as the excess is
not more than 5% and the Borrowing Base is not exceeded.

 

		7.5	Reduction of the Facility

 

Cascades may, on giving
not less than ten Business Days prior notice to the Administrative Agent, permanently reduce the aggregate amount of the Facility
by amounts of not less than $5,000,000. Any such reduction will result in a corresponding reduction of each of Tranche A and Tranche
B, on a pro rata basis (such reduction to also apply on a pro rata basis as to each Lender). The notice
of reduction must specify the amount of the reduction, and the Business Day when the reduction will be become effective. On such
date, the Borrowers must make repayments in amounts sufficient for the outstanding Borrowings under any Tranche not to exceed the
new amount of such Tranche.

 

Article
8 – Place of Payment, Currency and Taxes

 

		8.1	Payments to the Administrative Agent

 

Unless otherwise provided
or agreed between the Borrower concerned and the Administrative Agent, (i) all payments to be made by a Borrower must be made to
the Administrative Agent at the applicable Branch of Account, except that interest payments on outstanding Borrowings owing to
a Swingline Lender pursuant to Section 2.8 must be made to such Swingline Lender, and (ii) all payments made to the Administrative
Agent will be deemed to have been made for the rateable benefit of the applicable Lenders. Any payment due by a Borrower may be
charged to an account maintained by such Borrower with the Administrative Agent or the applicable Lender.

 

    	 	- 27 -	 

     

    

 

		8.2	Manner of Payments

 

Any payment that is due
on a day that is not a Business Day may be made on the next Business Day but will bear interest until received in full. All payments
must be made free of any set-off or other deduction and in funds which are immediately available on the date on which payment is
due.

 

		8.3	Currency

 

Unless otherwise provided,
(i) all amounts owing under any Borrowing are payable in the currency of such Borrowing, (ii) Letter of Credit fees under Tranche
A are payable in Dollars, except that any such fee owing as a result of a Letter of Credit issued in US Dollars is payable in US
Dollars, (iii) Letter of Credit fees under Tranche B are payable in US Dollars, (iv) standby fees are payable in Dollars, and (v)
all other amounts are payable in Dollars, US Dollars or Euros, as may be specified by the Administrative Agent.

 

		8.4	Judgment Currency

 

If a judgment is rendered
against a Borrower for an amount owed hereunder and if the judgment is rendered in a currency (“other currency”)
other than that in which such amount is owed under this Agreement (“currency of the Agreement”), such Borrower
will pay, if applicable, at the date of payment of the judgment, an additional amount equal to the excess (i) of the said amount
owed under this Agreement, expressed into the other currency as at the date of payment of the judgment, over (ii) the amount of
the judgment. For the purposes of obtaining the judgment and making the calculation referred to in (i), the exchange rate will
be the spot rate at which the Administrative Agent, on the relevant date, may in Montreal, sell the currency of the Agreement to
obtain the other currency. Any additional amount owed under this Section will constitute a cause of action distinct from the cause
of action which gave rise to the judgment, and said judgment shall not constitute res judicata in that respect.

 

		8.5	Payments Net of Taxes

 

If a Borrower, any Agent
or any Lender is compelled by law to make any withholding or deduction due to any tax or if a Lender is liable to pay tax in respect
of any payment due or made by a Borrower, the Borrower concerned must pay to such Agent or such Lender such additional amount as
may be necessary in order that the payment actually received be equal to the payment which otherwise would have been received in
the absence of such withholding or deduction or tax (including in the absence of any additional withholding or deduction or tax
in respect of any additional amount payable pursuant to this Section). However, this Section 8.5 will not apply in respect
of (i) a tax on the overall net income or capital of a Lender or (ii) a withholding, deduction or tax from which a Lender would
have been exempted but for its failure to fulfill applicable exemption formalities.

 

    	 	- 28 -	 

     

    

 

Article
9 - Conditions Precedent

 

		9.1	Conditions Precedent to the Effectiveness of this Agreement

 

This Agreement will become
effective on the date (the “Effective Date”) the Administrative Agent confirms to Cascades and the Lenders that
the following documents have been received by the Administrative Agent, in form and substance satisfactory to the Lenders:

 

		(a)	a copy of this Agreement executed by all parties thereto;

 

		(b)	a certificate as to the legal existence of the Borrowers and a resolution of their board of directors
evidencing the authority of the Persons acting on behalf of the Borrowers;

 

		(c)	the Corporate Structure Chart as at the date of this Agreement;

 

		(d)	an acknowledgement agreement between the Administrative Agent, the Collateral Agent, the Borrowers
and the Designated Subsidiaries providing that the Security Documents executed pursuant to the Initial Credit Agreement are still
in full force and effect.

 

		9.2	Conditions Precedent to all Borrowings

 

The Borrowers may not obtain
any Borrowing or convert or renew any Borrowing:

 

		(a)	if the Administrative Agent has not received timely notice of such Borrowing, conversion or renewal;
or

 

		(b)	if a Default has occurred and is continuing or would occur after giving effect to such Borrowing,
conversion or renewal.

 

Each notice of Borrowing or of the renewal
or conversion of a Borrowing constitutes a certification by the Borrowers that no Default has occurred and is continuing or would
occur after giving effect thereto.

 

		9.3	Waiver of Conditions Precedent

 

The conditions precedent
provided for in this Article 9 are for the sole benefit of the Agents and the Lenders. The Agents and the Lenders may waive such
conditions precedent, in whole or in part, with or without conditions, without prejudice to any other rights that they might have
against the Borrowers and any other Person.

 

		9.4	Early Termination of this Agreement

 

If all of the conditions
precedent provided for in Section 9.1 have not been fulfilled or waived on or before June 15, 2017, this Agreement will not
come into effect.

 

		9.5	Borrowings under the Initial Credit Agreement

 

For greater certainty,
all Borrowing under the Initial Credit Agreement continue to be Borrowings under this Agreement in the same proportions for all
Lenders as immediately prior to the Effective Date.

 

    	 	- 29 -	 

     

    

 

Article
10- Security

 

		10.1	Guarantees

 

Each Borrower must guarantee
in favour of the Collateral Agent and the Lenders the performance of all obligations of the other Borrowers under the Facility
and each Designated Subsidiary must guarantee in favour of the Collateral Agent and the Lenders the performance of all obligations
of the Borrowers under the Facility.

 

		10.2	Security over Current Assets

 

		(a)	To secure the performance of the obligations of the Borrowers under the Facility, each of the Borrowers
and the Designated Subsidiaries that owns material inventory and accounts receivable must provide in favour of the Collateral Agent
(for the benefit of the Agents and the Lenders) security over all of its present and future inventory and accounts receivable and
other claims (including related assets), present and future.

 

		(b)	Any cash and cash equivalents deducted in the calculation of the Funded Debt to Capitalization
Ratio (as contemplated by the definition of such ratio) must be held by Cascades, Cascades USA Inc. and Cascades Canada ULC in
a bank account in Canada or the United States and be specifically subject to perfected security for the benefit of the Agents and
the Lenders.

 

		10.3	Security over Charged Fixed Assets

 

		(a)	To secure the performance of the obligations of the Borrowers under the Facility, Cascades Canada
ULC (formerly Cascades Canada Inc.) must provide in favour of the Collateral Agent and the Lenders, security over the following
plants and related assets: 467 Marie-Victorin Street, Kingsey Falls, Quebec, 75 Marie-Victorin Street, Candiac, Quebec, 200 Cascades
Street, Cabano, Quebec, 601, 655 and 701 Creditstone Road, Vaughan, Ontario and 115 de la Princesse, Lachute, Quebec (together
with other fixed assets which may become subject to the Security pursuant to this Section 10.3, the “Charged Fixed
Assets”).

 

		(b)	For Borrowing Base purposes, the market value of the Charged Fixed Assets will be determined by
the Agents using a market value in an aggregate amount of $853,000,000 until such amount is revised as a result of the delivery
to the Administrative Agent of a valuation report in accordance with the other provisions of this Section 10.3.

 

		(c)	After the date hereof, Cascades will have the option, but not the obligation, to increase the market
value of the Charged Fixed Assets component of the Borrowing Base by providing, or causing Designated Subsidiaries to provide,
security over other fixed assets acceptable to the Majority Lenders (or to all Lenders in the case of fixed assets located in the
United States) by an amount equal to the market value of such assets as determined by a valuation report to be furnished to the
Administrative Agent prior to or concurrently with the grant of the related security.

 

    	 	- 30 -	 

     

    

 

		(d)	If, at any time after the date of this Agreement, the Majority Lenders have reasonable grounds
to believe that the market value of the Charged Fixed Assets has reduced below the most recent value determined pursuant to this
Section 10.3 (or below $853,000,000 if such most recent value is greater than $853,000,000), Cascades will provide to the
Administrative Agent, within 30 days from a request by the Administrative Agent, a valuation report on such assets.

 

		(e)	From the date a valuation report is provided to the Administrative Agent and until such time a
new valuation report is so provided pursuant to this Section 10.3, the market value of the Charged Fixed Assets will be determined
for Borrowing Base purposes on the basis of the most recent valuation.

 

		(f)	If there has been a decrease in the market value of the Charged Fixed Assets or if a Credit Party
proposes to sell assets which are part of the Charged Fixed Assets, Cascades will have the option, but not the obligation, to provide
or to cause Designated Subsidiaries to provide security over other fixed assets acceptable to the Majority Lenders (or to all Lenders
in the case of fixed assets located in the United States) to increase at a higher level (or to maintain at a certain level in the
event of a proposed sale) the market value of the Charged Fixed Assets component of the Borrowing Base. The market value of such
other fixed assets will be determined on the basis of a valuation report which Cascades undertakes to provide to the Administrative
Agent at the time of any request made to the Majority Lenders (or to all Lenders) pursuant to this paragraph. For greater certainty,
(i) no such sale may be made unless same is otherwise permitted by Section 13.3(b) and (ii) from the date of any such sale,
the market value of the fixed assets so sold will no longer be included in the Charged Fixed Assets component of the Borrowing
Base.

 

		(g)	Any valuation report to be provided to the Administrative Agent pursuant to this Section 10.3
must use the discounting cash flow methodology and may be prepared using a combination of internal analysis and independent assessments;
the conclusion of each report must be validated by an independent firm acceptable to the Majority Lenders. Each such report must
be accompanied by an environmental review acceptable to the Majority Lenders.

 

		10.4	Insurance

 

The Borrowers will cause
the Collateral Agent to be named as loss payee on all insurance policies relating to the property and assets covered by the Security.
Each policy covering immovable property and equipment must contain a “mortgage clause”.

 

		10.5	Security for Hedging Agreements and Credit Card Obligations

 

		(a)	The guarantees, security and loss payee designations provided for under the other sections of this
Article 10 (the “Security”) will also secure the performance of the obligations of (i) the Borrowers to the
Lenders and their Affiliates in their capacity as counterparties under Hedging Agreements (the “Hedging Creditors”)
and (ii) the Credit Parties to the Lenders in their capacities as creditors of obligations arising from credit card agreements
with Credit Parties (the “Credit Card Creditors”). The Collateral Agent will act as agent for the Hedging Creditors
and the Credit Card Creditors for all purposes of the Security Documents, including the enforcement or release thereof. For such
purposes, the provisions of Article 17, Article 18 and Article 19 (adapted accordingly) will also apply to the Hedging Creditors
and the Credit Card Creditors. However, until termination and repayment in full of the Facility, the claims of the Hedging Creditors
and the Credit Card Creditors will not be taken into account in any situation where a decision regarding the Security has to be
made by the Lenders, including any enforcement or release thereof.

 

    	 	- 31 -	 

     

    

 

		(b)	The rights of the Lenders, the Hedging Creditors and the Credit Card Creditors under the Security
will rank pari passu, but only to the extent of an aggregate maximum amount of $135,000,000 in respect of the claims
of the Hedging Creditors under Hedging Agreements (such amount to be calculated as provided in Section 10.5(c)) and of $15,000,000
in respect of the claims of the Credit Card Creditors under credit card obligations. Any excess will rank after the rights
of the Lenders under the Facility. Any proceeds of realization of the Security to be distributed to the Hedging Creditors and the
Credit Card Creditors will be allocated among them pro rata to their claims (irrespective of the dates of the related
agreements or transactions).

 

		(c)	Each Hedging Creditor will calculate its claim under any Hedging Agreement in accordance with normal
market practices (using the mark-to-market method whenever applicable) and after giving effect to any close-out, netting arrangement
or right of set-off provided by contract or permitted by law.

 

		(d)	The Hedging Agreements and credit card obligations secured by the Security will consist of Hedging
Agreements made or credit card obligations incurred at a time when the counterparty or creditor thereof was a Lender (or an Affiliate
of a Lender in the case of Hedging Agreements). For greater certainty, the Security (to the extent not released by the Lenders)
will continue to secure the obligations of any Borrower to any Hedging Creditor or any Credit Party to any Credit Card Creditor
(i) after termination and repayment in full of the Facility, or (ii) after such Hedging Creditor or Credit Card Creditor has ceased
to be a Lender.

 

		(e)	The Agents will be entitled at any time to assume that the only Lenders or Affiliates thereof with
a Hedging Creditor or Credit Card Creditor status are those who have notified the Agents of such status before such time. Cascades
represents and warrants to the Agents that the Exiting Lender has no such status.

 

		10.6	Validity and Contents of Security Documents

 

The Security must be valid,
perfected and first-ranking at all times with respect to all property intended to be covered thereby, subject however to Liens
described in paragraph (a) and in the exception at the end of paragraph (e) of the definition of Permitted Liens. Each Security
Document must be in form and substance satisfactory to the Collateral Agent and remain valid and in force at all times. The Security
Documents will include such legal opinions, Lien searches and certificates of location or surveys as the Collateral Agent may reasonably
require.

 

    	 	- 32 -	 

     

    

  

		10.7	Release of the Security

 

The Collateral Agent
is authorized to act alone to release the Security with respect to any property which is the subject of a disposition permitted
by this Agreement or which is no longer required to be charged by the Security. The Collateral Agent is authorized to determine
whether any disposition is so permitted by relying on a certificate from Cascades.

 

Article
11 - Representations and Warranties

 

Each of the Borrowers
represents and warrants that:

 

		11.1	Corporate Existence and Capacity

 

Each of the Credit
Parties

 

		(a)	is a Person duly constituted and organized, validly existing and in good standing under the laws
of the jurisdiction of its constitution;

 

		(b)	has all requisite corporate or other power necessary to own its assets and carry on its business
as now being or as proposed to be conducted; and

 

		(c)	is qualified to do business and is in good standing in all jurisdictions in which the nature of
the business conducted by it makes such qualification necessary and where failure so to qualify could have a Material Adverse Effect.

 

		11.2	Authorization and Validity

 

Each Credit Party has
all necessary power, authority and legal right to execute, deliver and perform its obligations under the Credit Documents to which
it is a party, has duly authorized by all necessary action the execution, delivery and performance of its obligations under such
Credit Documents and has duly and validly executed and delivered the Credit Documents to which it is a party. The obligations of
each Credit Party under the Credit Documents to which it is a party constitute legal, valid and binding obligations, enforceable
against such Credit Party in accordance with their terms.

 

		11.3	No Breach

 

The execution and delivery
of the Credit Documents and the performance by the Credit Parties of their respective obligations thereunder will not conflict
with, result in a breach of or require any consent under, the constitutive documents or by-laws of any Credit Party, or any applicable
law or regulation in any material respect, or any order or decision of any court or governmental authority or agency, or any agreement
(including the Cascades Indentures) to which any Credit Party is a party or by which it or any of its property is bound.

 

		11.4	Approvals

 

Except for filings
or registrations required to perfect the Security, no authorization, approval or consent of, nor any filing or registration with,
any governmental or regulatory authority or agency, is necessary for the execution, delivery or performance by each Credit Party
of any Credit Document to which it is a party or to ensure its legality, validity or enforceability.

 

    	 	- 33 -	 

     

    

 

		11.5	Compliance with Laws and Permits

 

Each of the Credit
Parties is in compliance in all material respects with all laws and regulations applicable to it and its business and assets, including
Environmental Laws and anti-bribery, anti-money laundering, anti-terrorism and sanction laws. Each of the Credit Parties holds
all material permits, licenses, approvals, consents and other authorizations required under all such laws and regulations to own
its assets and to carry on its business.

 

		11.6	Title to Assets

 

The assets of the Credit
Parties, taken as a whole, are not subject to title defects or restrictions which could materially and adversely impair their value
or normal use. The Credit Parties own or have rights of use for all property and assets (including intellectual property) necessary
to carry on their businesses.

 

		11.7	Litigation

 

There are no legal
or arbitration proceedings, or any proceedings by or before any governmental or regulatory authority or agency, or, to the best
of its knowledge, any claim or investigation by any such authority or agency, or any labour disputes, now pending or, to the best
of its knowledge, threatened against any of the Credit Parties or any of their properties or rights that, if adversely determined,
could have a Material Adverse Effect.

 

		11.8	No Default

 

No Default has occurred
and is continuing.

 

		11.9	Solvency

 

Each of the Credit
Parties is Solvent.

 

		11.10	Taxes

 

Each of the Credit
Parties has filed all income tax returns and all other material tax returns and paid all taxes material in their amount that are
required to be filed or paid by them. The charges, accruals and reserves on the books of the Credit Parties in respect of taxes
and other governmental charges are adequate.

 

		11.11	ERISA and Pension Plans

 

Each Plan and each
other pension or employee benefit plan of any Credit Party is in compliance in all material respects with the applicable provisions
of ERISA, the US Revenue Code and any other applicable law. No Credit Party has any material unfunded liability under any pension
plan on an ongoing or termination basis.

 

		11.12	Margin Stock Restrictions

 

None of the Credit
Parties is engaged principally, or as one of its important activities, in the business of extending credit for the purpose, of
buying or carrying margin stock, and no part of the proceeds of any extension of credit hereunder will be used to buy or carry
any margin stock in violation of Regulations U and X issued by the Board of Governors of the Federal Reserve System of the United
States.

 

    	 	- 34 -	 

     

    

 

		11.13	Investment Company Act

 

None of the Credit
Parties is an “investment company”, or a company “controlled” by an “investment company”, within
the meaning of the Investment Company Act of 1940 of the United States, as amended.

 

		11.14	Restriction on Payments

 

Except as provided
in the Cascades Indentures, none of the Credit Parties is subject to any law, regulation, agreement or legal impediment that prohibits,
restricts or imposes any condition upon the ability of a Credit Party to pay Distributions or to make or repay loans or advances.

 

		11.15	Corporate Structure and Location of Assets

 

The Corporate Structure
Chart contains a complete and correct list of all of the Subsidiaries of Cascades and indicates (i) the jurisdiction of formation
of each such entity, (ii) each Person holding ownership interests in each such entity, (iii) the nature of the ownership interests
held by each such Person and the percentage of ownership represented by such ownership interests, (iv) the location of the registered
and chief executive offices of each Credit Party that must provide Security, (v) any prior name (including any pre-merger corporate
name) of each such Credit Party and (vi) the jurisdictions where the material inventory and accounts receivable of each such Credit
Party are located.

 

		11.16	Financial Statements and Financial Year

 

The most recent audited
financial statements of Cascades are complete and correct and fairly present the consolidated financial condition and results of
operation of Cascades as at their stated date, all in accordance with GAAP. Except as reflected or disclosed in such financial
statements, none of the Credit Parties has on the date hereof any material contingent liabilities, liabilities for taxes, unusual
forward or long-term commitments or unrealized or anticipated losses from any unfavourable commitments that have not been disclosed
in writing to the Administrative Agent and the Lenders. The fiscal year of each of the Credit Parties ends on December 31 of each
year.

 

		11.17	No Material Change

 

There has been no Material
Adverse Change since December 31, 2016.

 

		11.18	True and Complete Disclosure

 

The information, reports,
financial statements and documents furnished or to be furnished by or on behalf of the Credit Parties to the Agents or any Lender
in connection with the negotiation, preparation, execution, delivery or performance of the Credit Documents, when taken as a whole,
do not and will not contain any untrue statement of material fact or omit to state any material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading.

 

    	 	- 35 -	 

     

    

 

Article
12 - Affirmative Covenants

 

		12.1	General Covenants

 

Each of the Borrowers
will, and will cause each of the other Credit Parties to:

 

		(a)	Legal Existence – subject to Section 13.3, preserve and maintain its legal existence
and all of its material rights, privileges, licenses and franchises;

 

		(b)	Legal Compliance – comply in all material respects with the requirements of all laws
and regulations applicable to it and its business and assets (including Environmental Laws and anti-bribery, anti-money laundering,
anti-terrorism and sanction laws) and with all orders of governmental or regulatory authorities;

 

		(c)	Payment of Taxes – pay and discharge all taxes, assessments and governmental charges
or levies imposed on it or on its income or profits or on any of its property or assets prior to the date on which penalties or
interest attach thereto, except for any such tax, assessment, charge or levy the payment of which is being contested in good faith
and by proper proceedings and against which adequate reserves are being maintained;

 

		(d)	Maintenance of Property – maintain all of its properties and assets used or useful
in its business in good working order and condition, ordinary wear and tear excepted;

 

		(e)	Material Agreements – perform its obligations under and preserve and maintain in force
all agreements to which it is a party that are necessary for or material to its operations and business;

 

		(f)	Insurance – insure and keep insured its property, assets and business, and will maintain
business interruption and civil liability (including product and environmental liability) insurance for such coverage as a prudent
administrator would obtain for similar property, assets and businesses, in each case, with financially sound and reputable insurance
companies;

 

		(g)	Records – keep adequate records and books of account, in which complete entries will
be made in accordance with GAAP; and

 

		(h)	Access – permit representatives of any Agent and any Lender, upon reasonable prior
notice and during normal business hours, to examine, copy and make extracts from its books and records, to inspect any of its properties
or assets, and to discuss its business and affairs with its officers and auditors.

 

		12.2	Use
                                         of Proceeds and Compliance with Indenture Limitations

 

		(a)	The Borrowers will use the proceeds of the Facility only for the purposes permitted under this
Agreement. The Borrowers will not use the Facility to finance any private or public tender offer for the shares or other securities
of a Person whose governing body has not approved such offer (“hostile take-over”).

 

    	 	- 36 -	 

     

    

 

		(b)	The Borrowers will ensure that the outstanding obligations secured by the Security and that the
value of the assets subject to Permitted Liens will not at any time exceed any maximum amount permitted under any of the Cascades
Indentures.

 

		12.3	Know Your Customer Laws

 

Promptly, following
a request by any Lender, the Borrowers will provide all documentation and other information which such Lender may reasonably request
in order to comply with its ongoing obligations under applicable “know your customer” laws and regulations in effect
in Canada and the United States, including without limitation the USA Patriot Act (as amended) and any similar law. The Borrowers
authorize any Lender to request and obtain such information from any Person. The Borrowers also acknowledge that pursuant to such
laws and regulations each Lender is or may be required to obtain, verify and record information which allows such Lender to identify
each Borrower in accordance with said laws and regulations.

 

		12.4	Further Assurances

 

Each of the Borrowers
will, and will cause each of the other Credit Parties to, cooperate with the Lenders and the Agents and execute such further instruments
and documents as the applicable Agent may reasonably request to carry out to its satisfaction the transactions contemplated in
the Credit Documents.

 

		12.5	Representations and Warranties

 

Each of the Borrowers
will ensure that all representations made in this Agreement are true and correct at all times, except for representations made
as of a date expressly stated therein.

 

Article
13 - Negative Covenants

 

Each of the Borrowers
covenants and agrees that:

 

		13.1	Negative Pledge

 

None of the Credit
Parties will create, incur, assume or suffer to exist any Lien on their present and future property or assets except for the Security
and Permitted Liens.

 

		13.2	Indebtedness

 

None of the Credit
Parties other than Cascades will create, incur, assume or permit to exist any Funded Debt other than:

 

		(a)	indebtedness to the Agents and the Lenders under the Credit Documents;

 

		(b)	indebtedness among the Credit Parties;

 

		(c)	indebtedness permitted to be secured by Permitted Liens;

 

		(d)	indebtedness under Hedging Agreements and Equity Derivatives, provided that none of the Credit
Parties (including Cascades) will enter into Hedging Agreements, Equity Derivatives or other derivative agreements for speculative
purposes;

 

    	 	- 37 -	 

     

    

 

		(e)	indebtedness under any of the Cascades Indentures; and

 

		(f)	indebtedness up to an aggregate outstanding amount for all Credit Parties other than Cascades not
exceeding at any time the greater of $150,000,000 and 6% of Net Tangible Assets.

 

		13.3	Limitations on Fundamental Changes

 

None of the Credit
Parties will:

 

		(a)	enter into any transaction of merger or amalgamation, or liquidate, wind up or dissolve itself,
except that any Credit Party may merge or amalgamate with any other Credit Party provided that the following conditions are fulfilled:

 

		(i)	no Default occurs as a result of the merger or amalgamation;

 

		(ii)	if any of the merging or amalgamating entity is a Borrower or a Designated Subsidiary, the surviving
or amalgamated entity must be a Borrower or a Designated Subsidiary and must execute and deliver to the applicable Agent all such
documents as may be necessary or advisable to confirm that such entity is bound as successor of the merging or amalgamating entities
by all Credit Documents to which such entities were parties;

 

		(iii)	the Administrative Agent has been provided prior to or concurrently with the merger or amalgamation
with satisfactory evidence of compliance with the requirements of clauses (i) and (ii) including such financial information, certificates,
documents and legal or other professional opinions as the Administrative Agent may reasonably request; and

 

		(iv)	a seven-day prior notice is given to the Administrative Agent in the case of an amalgamation or
merger involving a Borrower.

 

		(b)	sell, lease, transfer or otherwise dispose of, in one transaction or a series of related transactions
to any Person (in each case, a “disposition”), any property (other than inventory sold in the ordinary course
of business), except for the following dispositions (in each case, provided that no Default occurs as a result of the disposition):

 

		(i)	a disposition of property with a market value of less than $50,000,000;

 

		(ii)	a disposition to another Credit Party provided the conditions of paragraph (a) above are fulfilled
(as if the disposition were a merger and the transferee were the surviving entity) and provided further that if the disposition
relates to substantially all of the property of the transferor, the latter (if not a Borrower) may wind-up or dissolve itself after
completion of such disposition;

 

    	 	- 38 -	 

     

    

 

		(iii)	a disposition to any non-Credit Party (other than pursuant to a Securitization or Factoring Program),
provided that the disposition is made for a consideration at least equal to the fair market value of the related property, at least
75% of the consideration is paid in cash or through assumption of liabilities and the available cash proceeds of the disposition
are used to permanently reduce the Facility by no later than the 360th day following their receipt; for purposes
of the foregoing, the available cash proceeds of a disposition are the cash proceeds of such disposition (net of related expenses
and payments made to repay indebtedness secured by Liens on the property sold), less the portion of such cash proceeds which has
been reinvested in Credit Parties within 360 days from the date of their receipt or allocated by Cascades to the funding of an
investment made in Credit Parties within 180 days prior to the date of the disposition; notwithstanding the foregoing:

 

		(x)	                                                                                                                                                                                                                         ;

 

		(y)	                                                                                                                                                                                                                         ;

 

		(iv)	dispositions of accounts receivable pursuant to a Securitization or Factoring Program to the extent
such accounts receivable are not generated by a disposition of inventory subject to the Security made after the occurrence of an
Event of Default specified in Section 16.1(f) or Section 16.1(g)) or after the date the outstanding Borrowings become
repayable pursuant to Section 16.2 and provided that no account receivable subject (in whole or in part) to a Securitization
or Factoring Program will be included in the Borrowing Base, it being understood however that accounts receivable permitted to
be disposed of pursuant to this clause (iv) will be excluded from the Security from the date of any such permitted disposition;
and

 

		(v)	a disposition of property to any non-Credit Party in exchange for other property to be used in
the business of the Credit Parties, provided that the market value of the property so received in exchange is not less than that
of the property so disposed;

 

		(c)	carry on any business, directly or indirectly, other than the businesses currently carried on by
them and activities ancillary or reasonably related thereto (the “core business”), or make any investment (other
than investments referred to in clauses (ii) and (iii) of Section 13.4(b)) in a non-Credit Party who is not in the same line
of business as the core business, provided that businesses other than the core business may be carried on by Credit Parties and
by non-Credit Parties in which investments are made to the extent that the aggregate of the combined assets of such Credit Parties
and of the value of all such investments in such non-Credit Parties does not at any time exceed 5% of Cascades’ Net Tangible
Assets, provided however that the foregoing limitation will not apply to the investments made by Cascades in Boralex prior to December
31, 2010.

 

    	 	- 39 -	 

     

    

 

		13.4	Investments

 

		(a)	None of the Credit Parties will, directly or indirectly, make any investment in any Person who
is not a Credit Party, if such investment would result in the aggregate amount of all investments made after July 1, 2015 in non-Credit
Parties being in excess of $300,000,000.

 

		(b)	However, the foregoing limitation will not apply to (i) investments funded from the proceeds of
any issue of equity made by Cascades after July 1, 2015, (ii) cash or cash equivalent investments made for cash management
purposes, and (iii) loans and advances to employees in an aggregate amount not exceeding $5,000,000 at any time.

 

		13.5	Distributions

 

		(a)	None of the Credit Parties will make any Distribution (other than a direct or indirect Distribution
to a Credit Party) if there is a Default or if such Distribution could result in a Default or if, after giving effect to the Distribution,
the aggregate amount of all Distributions made from July 1, 2015 to non-Credit Parties were to exceed 50% of the net income of
Cascades (calculated on an Adjusted Consolidated Basis but with the increases, exclusions or reductions resulting from the application
of paragraphs (d) to (k) of the definition of EBITDA) for the period from July 1, 2015 to the end of its most recent fiscal quarter
(treated as one accounting period) plus the sum of (i) the proceeds of any new issue of equity made by Cascades during the same
period less the portion of same which is used to fund investments in non-Credit Parties (other than investments permitted by Sections 13.4(b)(ii) and
(iii)), and (ii) $150,000,000.

 

		(b)	However, the foregoing limitation will not apply to (i) Distributions made pursuant to stock option
plans and other plans or agreements with or for the benefit of employees or directors up to an aggregate amount not exceeding $10,000,000
per fiscal year (with the unused portion being permitted to be carried forward but to the next year only and up to $5,000,000 only)
and (ii) ordinary course of business Distributions on Cascades’ shares and open market purchases of Cascades’ shares
pursuant to stock buyback programs, up to an aggregate amount of $50,000,000 per fiscal year (with the unused portion being permitted
to be carried forward but to the next year only and up to $25,000,000 only).

 

		13.6	Transactions with Related Parties

 

None of the Credit
Parties will engage in any material transactions with any related party on terms and conditions not less favourable in any material
respect to the relevant Credit Party than those that could be obtained on an arm’s length basis from unrelated third parties,
provided that the foregoing requirement will not apply to transactions among the Credit Parties. For the purposes of this Section 13.6,
(i) related party means, with respect to a Person, another Person that Controls or is Controlled by or is under common Control
with the relevant Person, and (ii) the definition of Control must be read replacing 50% by 20%.

 

    	 	- 40 -	 

     

    

 

Article
14 - Financial Ratios

 

		14.1	Funded Debt to Capitalization Ratio

 

Cascades must maintain
at all times, on an Adjusted Consolidated Basis, a Funded Debt to Capitalization Ratio of not more than 65%.

 

		14.2	Interest Coverage Ratio

 

Cascades must maintain
at all times, on an Adjusted Consolidated Basis, an Interest Coverage Ratio not less than 2.25:1.00.

 

Article
15 - Reporting Requirements

 

		15.1	Annual Reporting

 

The Borrowers will
deliver to the Administrative Agent, for distribution to the Lenders, as soon as possible but within 90 days after the end of each
fiscal year of the Borrowers:

 

		(a)	the unqualified audited annual financial statements of Cascades, on a consolidated basis and the
unaudited annual financial statements of Cascades, on an Adjusted Consolidated Basis;

 

		(b)	the unaudited annual financial statements of each of the other Borrowers on a consolidated basis;

 

		(c)	the annual business plans and annual operating and capital budgets for the current fiscal year
of Cascades, on a consolidated and Adjusted Consolidated Basis;

 

		(d)	the unaudited annual financial statements of each of the businesses operated with the Charged Fixed
Assets; and

 

		(e)	a certificate evidencing the insurance coverage required to be maintained by the Credit Parties
pursuant to this Agreement.

 

		15.2	Quarterly Reports

 

The Borrowers will
deliver to the Administrative Agent, for distribution to the Lenders, as soon as possible but within 60 days after the end
of each of their fiscal quarters (including the fourth quarter):

 

		(a)	the unaudited financial statements of Cascades for the relevant fiscal quarter, on a consolidated
and Adjusted Consolidated Basis;

 

		(b)	the unaudited financial statements for the relevant fiscal quarter of each of the other Borrowers
on a consolidated basis;

 

		(c)	the unaudited financial statements for the relevant quarter of each of the businesses operated
with the Charged Fixed Assets;

 

		(d)	a compliance certificate relating to the covenants herein in the form of Schedule D (with
sufficient details to reconcile the financial statements with the calculation base of the financial covenants);

 

    	 	- 41 -	 

     

    

 

		(e)	a Borrowing Base report in the form of Schedule D; and

 

		(f)	copy of any filing with securities regulators.

 

		15.3	ERISA

 

Cascades US will notify
the Administrative Agent of the occurrence of any of the following events, within 10 days after it knows or has reason to believe
that the relevant event has occurred (and will provide a copy of any report or notice required in that connection to be filed with
or given to PBGC):

 

		(a)	any reportable event, as defined in Section 4043(b) of ERISA and the regulations issued thereunder,
unless the 30-day notice requirement in respect thereof has been waived by the PBGC;

 

		(b)	a notice of intent to terminate any Plan or any action taken by a Credit Party to terminate any
Plan, provided notice of intent to terminate is required pursuant to Section 4041(a)(2) of ERISA;

 

		(c)	the institution by PBGC of proceedings under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Plan; and

 

		(d)	the adoption of an amendment to any Plan that, pursuant to Section 401(a)(29) of the US Revenue
Code or Section 307 of ERISA, would result in the loss of tax-exempt status of the trust of which such Plan is a part if security
has not been provided in accordance with the provisions of these Sections.

 

		15.4	Reporting from Time to Time

 

The Borrowers will
promptly notify the Administrative Agent of any Default and deliver to the Administrative Agent any auditor letter highlighting
issues or deficiencies that, if not addressed or corrected, could reasonably result in a Material Adverse Change. The Borrowers
will also furnish the Administrative Agent all information, documents and records and allow any enquiry, study, audit or inspection
that the Administrative Agent or, when an Event of Default is continuing, any Lender may reasonably request in connection with
the business, financial condition, property, assets or prospects of the Credit Parties, or to verify compliance with the obligations
of any of the Credit Parties under any Credit Document.

 

		15.5	Hedging Agreements, Securitization and Factoring

 

		(a)	The Borrowers will provide to the Administrative Agent, concurrently with the compliance certificates
required to be delivered pursuant to Section 15.2, a report listing all outstanding Hedging Agreements secured by the Security
and all outstanding Hedging Agreements and Equity Derivatives secured by a Permitted Lien, and specifying the counterparties, notional
amounts, dates, maturities and marked-to-market value of all such agreements (as applicable).

 

    	 	- 42 -	 

     

    

 

		(b)	Prior to or concurrently with the coming into effect of any material Securitization or Factoring
Program (or any material amendment thereto), Cascades will provide to the Administrative Agent (i) a description of such program
(or of such material amendment), such description to include the criteria permitting the identification of the accounts receivable
subject to the program as well as the amount and term of any such program, and (ii) an update (giving effect to the program or
the amendment) of the most recent Borrowing Base report delivered pursuant to Section 15.2(e).

 

Article
16 - Events of Default and Remedies

 

		16.1	Events of Default

 

The occurrence of one
or more of the following events constitutes an event of default (“Event of Default”) under the Credit Documents:

 

		(a)	a Borrower defaults in the payment when due of any amount owing under any Facility in respect of
principal, interest or acceptance fee, or defaults for more than five Business Days in the payment of any other amount owing under
a Credit Document or any Hedging Agreement with a Lender or an Affiliate thereof;

 

		(b)	anyone
                                         or more of the Credit Parties (i) fails or fail to make a payment or payments exceeding
                                         in the aggregate $           
                                          in respect of any obligation or obligations (other than the Facility), when and
                                         as due, or (ii) is or are in default under any of the Cascades Indentures and, in each
                                         case, such failure or default continues after the applicable notice or grace period,
                                         if any;

 

		(c)	any representation, warranty or certification made or deemed made by a Credit Party in any Credit
Document proves to be false or misleading as of the time made in any material respect;

 

		(d)	any of the provisions of Article 10 is not complied with;

 

		(e)	any of the covenants contained in Article 13 and Sections 14.1 and 14.2 is not complied
with;

 

		(f)	a Credit Party becomes unable to pay its debts generally as such debts become due or is adjudicated
bankrupt or insolvent;

 

		(g)	a Credit Party (i) applies for or consents to or is the subject of an order for the appointment
of a receiver, interim receiver, trustee (or any Person performing similar functions) in respect of itself or of all or a substantial
part of its assets, (ii) makes a general assignment for the benefit of its creditors, (iii) takes advantage of any law relating
to bankruptcy, insolvency, reorganization, liquidation, dissolution, arrangement or winding-up, or (iv) takes any action for the
purpose of effecting any of the foregoing;

 

		(h)	a
                                         proceeding is commenced or any similar action is taken against a Credit Party seeking
                                         (i) its bankruptcy, reorganization, liquidation, dissolution, arrangement or winding-up,
                                         or similar relief, (ii) the appointment of a receiver, interim receiver, trustee (or
                                         any Person performing similar functions) in respect of itself or of all or any substantial
                                         part of its assets, or (iii) the seizure or the attachment of, or the enforcement of
                                         remedies on, any part of the assets of the Credit Parties having a value of more than
                                         $        
                                          and, in each case, such proceeding (or similar action) is not dismissed or withdrawn
                                         after a period of 60 days, provided that such grace period will apply only if such proceeding
                                         (or action) is diligently contested in good faith and does not disrupt the business or
                                         normal operations of the Credit Party concerned;

 

    	 	- 43 -	 

     

    

 

		(i)	a Credit Party defaults in the performance of any of its other obligations under a Credit Document
and such default continues unremedied for a period of 30 days after notice by the Administrative Agent to the Borrowers;

 

		(j)	the Control of Cascades is acquired by any Person (or by a group of Persons acting in concert)
other than Bernard Lemaire, Laurent Lemaire or Alain Lemaire (the term “Control” being read for the purposes of this
Section 16.1(j) by referring only to clauses (i) through (iv) of the definition of Control in Section 1.1); or

 

		(k)	a Material Adverse Change.

 

		16.2	Remedies

 

If an Event of Default
occurs and is continuing, the Administrative Agent (or the Collateral Agent in the case of paragraph (c) below) may, on giving
a notice to the Borrowers take any one or more of the following actions:

 

		(a)	terminate the right of the Borrowers to use the Facility;

 

		(b)	declare all indebtedness of the Borrowers under the Credit Documents to be immediately payable
and demand immediate payment of the whole or part thereof;

 

		(c)	exercise all of the rights of the Agents and the Lenders under the Security Documents; and

 

		(d)	exercise all of the other rights of the Agents and the Lenders;

 

provided that all indebtedness of the Borrowers
under the Credit Documents will automatically become due and payable without any notice upon the occurrence of any Event of Default
specified in Section 16.1(f) or Section 16.1(g).

 

Article
17 - Equality Among Lenders

 

		17.1	Distribution among Lenders

 

Any payment received
by any Agent on account of the Facility, including any amount received through the exercise of any right of set-off and the enforcement
of any Security, must be distributed among the Lenders proportionately to the amount of the indebtedness owing to them hereunder
and which is then payable. Any such distribution must be made forthwith but no later than the Business Day following the date of
receipt of the payment.

 

		17.2	Other Security

 

No Lender may take
any Security or Lien in connection with the Facility, Hedging Agreements or credit card obligations except in accordance with Article
10.

 

    	 	- 44 -	 

     

    

 

		17.3	Direct Payment to a Lender

 

Subject to the other
provisions of this Agreement permitting direct payment to Lenders, if a Lender receives, otherwise than through an Agent, a payment
on account of any Facility (including any payment received through the exercise of any right of set-off), such Lender will remit
the payment to the Administrative Agent, for distribution among all Lenders.

 

		17.4	Adjustments

 

If, at any time, the
ratio of the Borrowings owing to a Lender under the Facility to the aggregate amount of all outstanding Borrowings under the Facility
is not proportional to such Lender’s Commitment, expressed as a percentage, the Administrative Agent may (and will, after
termination of the Facility) make from time to time such adjustments as may be necessary in order that the outstanding Borrowings
under the Facility are in the proportions of the Commitments. The Lenders will make all such payments as the Administrative Agent
may direct to give full effect to such adjustments. The Borrowers will be bound by such adjustments.

 

Article
18 - The Agents and The Lenders

 

		18.1	Appointment of the Agents

 

Each Lender irrevocably
appoints the Administrative Agent and the Collateral Agent to exercise on its behalf the rights and powers delegated to the Administrative
Agent or the Collateral Agent (as applicable) hereunder and authorizes each Agent to take any action necessary for the performance
of its duties. Whenever acting in such capacity, the Agent concerned represents and binds all Lenders.

 

		18.2	Restrictions on the Powers of the Lenders

 

No Lender may exercise
individually the rights and powers delegated to the Agents, including the enforcement of remedies after the occurrence of an Event
of Default.

 

		18.3	Security Documents

 

The Collateral Agent
is authorized to hold any Security on behalf of the Lenders and to execute in their name any Security Document. For greater certainty,
the Collateral Agent is authorized to act as hypothecary representative (fondé de pouvoir) of the Lenders (notwithstanding
that the Collateral Agent is also a Lender) for the purposes of any hypothec granted by any Credit Party pursuant to article 2692
of the Civil Code of Quebec to comply with Article 10.

 

		18.4	Action by the Agents

 

The duties of each
Agent are limited to those specifically conferred upon it in the Credit Documents. Except as otherwise provided, the Administrative
Agent or the Collateral Agent is not required to exercise any discretion or to take any action under the Credit Documents, unless
it has been so required by the Majority Lenders (or by all Lenders where the consent of all Lenders is required). In no event,
will an Agent be required to exercise any right or power, if in its judgment, doing so would contravene any Credit Document or
applicable law or where the Agent concerned determines that the indemnity provided in Section 18.6 may not be available or
adequate.

 

    	 	- 45 -	 

     

    

 

		18.5	Enforcement Measures

 

Any legal proceedings
and enforcement measures on behalf of the Lenders will be taken by the applicable Agent; at such Agent’s request, all Lenders
must join it in such proceedings or enforcement measures.

 

		18.6	Indemnification

 

Each Lender will indemnify
any Agent (and their directors, officers, employees and agents), proportionately to its respective Commitment, from and against
all losses suffered or liabilities or expenses incurred by such Agent of any kind or nature when exercising its rights and powers,
save any losses, liabilities or expenses resulting from the wilful misconduct or gross negligence of the applicable Agent (or their
directors, officers, employees or agents).

 

		18.7	Reliance on Reports

 

The Administrative
Agent will be entitled to make any determination of the Borrowing Base based on the most recent reports or certificates furnished
by Cascades in relation to such matter.

 

		18.8	Liability of the Agents

 

The Administrative
Agent or the Collateral Agent (as applicable) will only be liable to the Lenders for willful misconduct or gross negligence, and
will have no liability as a consequence of a failure of any Person to fulfil its obligations or any action authorized by the Majority
Lenders (or by all Lenders where the consent of all Lenders is required). Each Agent will be entitled to assume that there exists
no Default, unless it has been notified in writing of the existence of a Default.

 

		18.9	Liability of Lenders

 

Each Lender acknowledges
that it has been and will continue to be solely responsible for making its own independent appraisal and investigation of the financial
condition of the Borrowers and any other Credit Party, and for the assessment of the risks arising from the Facility. No Lender
may rely on any Agent in this regard nor will any Agent be responsible for ensuring the validity or enforceability of any Credit
Document.

 

		18.10	Rights of an Agent as Lender

 

In its capacity as
Lender, each Agent has the same rights as the other Lenders and may exercise such rights independently of its role as Agent; unless
the context otherwise requires, the expression “Lender” also refers to the Lender which is the Administrative Agent
or Collateral Agent.

 

    	 	- 46 -	 

     

    

 

		18.11	Sharing of Information

 

		(a)	The Lenders may share with each other any information held by them regarding the financial condition,
business or property of any Credit Party or relating to matters contemplated in the Credit Documents or the Hedging Agreements.
The Lenders may provide such information on a confidential and need-to-know basis to their Affiliates, any assignee or prospective
assignee of Commitments, any participant or prospective participant in the Facility, any counterparty or prospective counterparty
to any Hedging Agreement and any credit protection provider.

 

		(b)	Any Agent may disclose to any agency or organization that assigns standard identification numbers
to credit facilities such basic information describing the Facility as is necessary to assign unique identifiers (and, if requested,
supply a copy of this Agreement), it being understood that the Person to whom such disclosure is made will be informed of the confidential
nature of such information and instructed to make available to the public only such information as such person normally makes available
in the course of its business of assigning identification numbers. In addition, but after consultation with Cascades, any Agent
may provide to Loan Pricing Corporation or other recognized publishers of information for circulation in the loan market information
of the type customarily provided by financial institutions to Loan Pricing Corporation.

 

		18.12	Competition

 

Subject to the other
provisions of this Agreement, any Agent, and each of the Lenders may enter into other transactions with any Credit Party and they
are not required to notify each other of such transactions.

 

		18.13	Successor Agent

 

Any Agent may resign
by giving notice thereof to the Borrowers and to the Lenders. Any Agent may also be replaced by the Majority Lenders following
its failure to perform its obligations under this Agreement. The resignation or replacement of an Agent will be effective upon
the appointment by the Majority Lenders of a successor Agent from among the Lenders. Promptly after being so appointed, any successor
Agent must give notice thereof to the Borrowers and the Lenders. From the effective date of its appointment, any successor Agent
will be vested with all the rights, powers and duties of the Administrative Agent or Collateral Agent (as applicable) under the
Credit Documents.

 

Article
19 - Decisions, Waivers and Amendments

 

		19.1	Amendments and Waivers by the Majority Lenders

 

Subject to Section 19.2,
the provisions of the Credit Documents may be amended or waived, and consents thereunder may be given, only by an instrument signed
by the Administrative Agent or the Collateral Agent (as applicable), with the approval of the Majority Lenders, and in the case
of an amendment, also signed by the relevant Credit Party.

 

    	 	- 47 -	 

     

    

 

		19.2	Amendments and Waivers by Unanimous Approval

 

Except as otherwise
expressly provided in this Agreement, an amendment, waiver or consent that relates to any of the following matters must be made
or given by an instrument signed by the Administrative Agent (or the Collateral Agent in the case of paragraph (d) below), with
the prior consent of all Lenders, and in the case of an amendment, also signed by the relevant Credit Party:

 

		(a)	any increase in the amount of the Facility (other than pursuant to Section 2.13) or the extension
of the maturity date of the Facility (other than pursuant to Section 2.14);

 

		(b)	any postponement of the due date, any subordination or any reduction of any amount payable hereunder;

 

		(c)	the reduction of any interest rate, discount rate or fee (including an amendment to Schedule A
which would have the same economic effect);

 

		(d)	the release or subordination of any portion of the Security; and

 

		(e)	the definition of “Majority Lenders” and the provisions of Sections 1.4, 9.1,
16.1(a), 16.1(f), 16.1(g), Articles 17, 18, and 19 and Section 20.3.

 

		19.3	Amendments requiring the consent of the Affected Party

 

No amendment affecting
the rights and obligations of an Agent, an Issuing Lender or a Swingline Lender may be made without the consent of such Agent,
such Issuing Lender or such Swingline Lender (as applicable). No increase in the amount of the Commitment of any Lender, may be
made without the consent of such Lender.

 

		19.4	Dissenting and Affected Lenders

 

		(a)	Where an amendment or waiver referred to in Section 19.2 has been approved by the Majority
Lenders, but not by all the Lenders, the Administrative Agent will notify Cascades and each Lender of such fact and will identify
the Lenders approving of such amendment or waiver and the Lenders disapproving of such amendment or waiver (each a “dissenting
Lender”).

 

		(b)	Where a Lender claims the benefit of Sections 3.5(a) or 4.2 or claims amounts under Sections 8.5
or 20.10(b) such Lender (the “affected Lender”) will notify Cascades of that fact.

 

		(c)	At any time following the date of a notification under Section 19.4(a) or Section 19.4(b),
Cascades will be entitled to require that each such dissenting Lender or affected Lender, as applicable, assign its rights under
the Facility to another Lender (or a Person who would be a permitted assignee under Section 20.4) who has agreed to assume
the Commitment of such dissenting Lender or affected Lender, and to consent as the case may be to the amendment or waiver, provided
that no such assignment and assumption will be effective unless the consideration payable to such dissenting Lender or affected
Lender, for the assignment includes all amounts owed to such dissenting Lender or affected Lender, in respect of the Facility and
is paid to the latter by the assignee (together with breakage costs if any); Section 20.4 will apply (adapted accordingly)
to the said assignment and assumption.

 

    	 	- 48 -	 

     

    

 

		(d)	Notwithstanding Section 19.4(c), Cascades will not be entitled to require the replacement
of a dissenting Lender after the expiry of a 45-day time period following the date of the notification under Section 19.4(a)
relating to such dissenting Lender.

 

		19.5	Defaulting Lenders

 

		(a)	Where a Lender has become in default (a “defaulting Lender”), the Administrative
Agent will notify Cascades and each Lender of that fact after having acquired actual knowledge of same. For the purposes of this
Agreement, a Lender will be deemed to be in default if (i) such Lender has failed to fund its share of any requested or outstanding
Borrowing hereunder (including any related adjustment), (ii) such Lender has notified the Borrower, the Administrative Agent, any
Swingline Lender or any Issuing Lender that it does not intend to comply with its funding obligations hereunder or has made a public
statement to such effect (except if such position is based on the existence of a Default), (iii) such Lender becomes subject to
a “Bail-In Action” (as defined in Section 19.6) or (iv) if any of the events listed in Sections 16.1(f), (g) and (h)
occurs in respect of such Lender or a Person who Controls such Lender.

 

		(b)	At any time following the date of a notification under Section 19.5(a), Cascades will be entitled
to require that each such defaulting Lender assign its rights under the Facility to a Person who would be a permitted assignee
under Section 20.4 who has agreed to assume the Commitment of such defaulting Lender. However, no such assignment and assumption
will be effective unless the consideration payable to such defaulting Lender for the assignment includes all amounts owed to such
defaulting Lender in respect of the Facility and is paid to the latter by the assignee (together with breakage costs if any). Section
20.4 will apply (adapted accordingly) to the said assignment and assumption and any defaulting Lender will take all such actions
as are required to promptly effect same.

 

		(c)	Notwithstanding any other provision of this Agreement, from the time a Lender becomes a defaulting
Lender:

 

		(i)	such defaulting Lender will not be entitled to vote on any issue (other than on a reduction of
a principal amount payable to it and any increase or extension of its Commitment) and, subject to the foregoing exceptions, the
entirety of its Commitment will be disregarded in the calculation of all Majority Lenders’ or Lenders’ unanimous decisions;

 

		(ii)	standby fees and Letter of Credit fees will not accrue and be payable in respect of such defaulting
Lender’s Commitment provided that Letter of Credit fees relating to such defaulting Lender’s obligations that are reallocated
pursuant to clause (iv) below will be payable to the Lenders to whom such obligations have been reallocated;

 

    	 	- 49 -	 

     

    

 

		(iii)	such defaulting Lender will not participate in any new Borrowing and its Commitment will be disregarded
in the calculation of the pro rata share of the Lenders in any new Borrowing;

 

		(iv)	the funding obligations of the defaulting Lender under Section 2.9 in respect of Borrowings made
by any Swingline Lender and under Section 5.4 in respect of payments made by any Issuing Lender under Letters of Credit will be
reallocated among the other Lenders and will be calculated excluding the defaulting Lender’s Commitment from the pro rata
share of the funding obligations of the other Lenders, but only to the extent such reallocation and calculation does not cause
the outstanding Borrowings owing to any non-defaulting Lender to exceed the amount of its Commitment and provided that no such
reallocation will release the defaulting Lender from its obligations hereunder;

 

		(v)	if a reallocation contemplated in clause (iv) above cannot be effected (in full or in part), the
Borrower will (y) repay to any Swingline Lender the portion of any outstanding Borrowings under Section 2.6 which has not been
so reallocated, and (z) prepay, or provide cash collateral to secure the unreallocated portion of the funding obligations referred
to in Section 5.4 in respect of Letters of Credit;

 

		(vi)	any Swingline Lender or any Issuing Lender may decline to provide Borrowings under Section 2.8
or issue Letters of Credit under Article 5 (as applicable) if it has an exposure to a defaulting Lender as a result of any reallocation
pursuant to clause (iv) not being fully effected; and

 

		(vii)	the Administrative Agent will be entitled to withhold any amount that would otherwise be distributed
or payable to a defaulting Lender and to apply (in the order determined by the Administrative Agent) any such amount to the obligations
of such defaulting Lender hereunder or to outstanding Borrowings owing to the non-defaulting Lenders.

 

		(d)	A Lender who becomes a defaulting Lender will retain such status until the Administrative Agent,
any Issuing Lender and any Swingline Lender notify such defaulting Lender that they are satisfied that all existing defaults in
respect of such Lender have been remedied and that such Lender has the financial ability to perform its obligations hereunder.
Concurrently with such notification, the Administrative Agent will make such adjustments among the Lenders as are necessary to
give effect to the foregoing and to the fact that Section 19.5(c) has ceased to apply in respect of the Lender concerned, provided
that no retroactive adjustments will be made (including with respect to interest and fees).

 

		(e)	For greater certainty, (i) the default by a Lender to perform its obligations hereunder will not
relieve any other Lender from its obligations hereunder (including to fund Borrowings in the proportion of its Commitment), and
(ii) an assignment of the Commitment of a defaulting Lender will not relieve such defaulting Lender from its obligations to indemnify
any other party from the consequences of its default.

 

    	 	- 50 -	 

     

    

 

		19.6	Bail-In Provisions

 

		(a)	For the purposes of Section 19.6:

 

		(i)	“Bail-In Action” means the exercise of any Write-Down and Conversion Powers
by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

		(ii)	“Bail-In Legislation” means, with respect to any EEA Member Country implementing
Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing
law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule published by the Loan
Market Association (or any successor person), as in effect from time to time.

 

		(iii)	“EEA Financial Institution” means (x) any credit institution or investment firm
established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (y) any entity established
in an EEA Member Country which is a parent of an institution described in clause (x) of this definition, or (z) any financial institution
established in an EEA Member Country which is a subsidiary of an institution described in clauses (x) or (z) of this definition
and is subject to consolidated supervision with its parent;

 

		(iv)	“EEA Member Country” means any of the member states of the European Union, Iceland,
Liechtenstein, and Norway.

 

		(v)	“EEA Resolution Authority” means anybody which has authority to exercise any
Write-Down and Conversion Powers.

 

		(vi)	“Write-Down and Conversion Powers” means the write-down and conversion powers
of any EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country (which powers
are described in the EU Bail-In Legislation Schedule referred to in the definition of Bail-In Legislation).

 

		(b)	Notwithstanding anything to the contrary in any Credit Document or in any other agreement, arrangement
or understanding among any the parties thereto, each party hereto acknowledges that any liability of any EEA Financial Institution
arising under any Credit Document, may be subject to the write-down and conversion powers of an EEA Resolution Authority and consents
to, and agrees to be bound by:

 

		(i)	the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such
liability which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

    	 	- 51 -	 

     

    

 

		(ii)	the effects of any Bail-in Action on any such liability, including, if applicable:

 

		(x)	a reduction in full or in part or cancellation of any such liability;

 

		(y)	a conversion of all, or a portion of, such liability into shares or other instruments of ownership
in such EEA Financial Institution, its parent, or a bridge institution that may be issued to it or otherwise conferred on it, and
that such shares or other instruments will be accepted by it in lieu of any rights with respect to any such liability under any
Credit Document; or

 

		(z)	any variation of the terms of such liability in connection with the exercise of the write-down
and conversion powers of any EEA Resolution Authority.

 

Article
20 - Miscellaneous

 

		20.1	Books and Accounts

 

The Administrative
Agent will keep books and accounts evidencing the transactions made pursuant to this Agreement. Absent manifest error, such books
and accounts will be deemed to represent accurately such transactions and the indebtedness of the Borrowers.

 

		20.2	Determination

 

In the absence of manifest
error, any determination made by the Administrative Agent of the amounts payable hereunder will be conclusive and binding upon
the Lenders and the Borrowers.

 

		20.3	Prohibition on Assignment by Borrowers

 

No Borrower may assign
its rights under this Agreement.

 

		20.4	Assignments and Participations

 

		(a)	A Lender (the “assignor”) may assign, in whole or in part, its Commitment under
the Facility, including outstanding Borrowings owing to it, to any Person who makes purchases or otherwise invests in commercial
loans in the ordinary course of its business (the “assignee”). The assignment must be substantially in the form
of Schedule E. The assignor must pay to the Administrative Agent, for its own account, an assignment fee of $5,000. When the
assignment becomes effective, the assignee will become a Lender and will benefit from the rights and be liable for the obligations
of the assignor, proportionally to the assigned Commitment, and, to the same extent, the assignor will be released from its obligations.
The assignor and the assignee will be liable for all expenses incurred by the Administrative Agent in connection with such assignment.

 

    	 	- 52 -	 

     

    

 

		(b)	No partial assignment of a Commitment may be made (i) if the residual amount of the Commitment
of the assignor or if the total Commitment of the assignee is less than $10,000,000 or (ii) if the assigned portion is not allocated
among Tranches A and B in the same proportion as the Commitment of the assignor.

 

		(c)	Concurrently with any assignment in favour of an assignee who is not, at the time of the assignment,
party to this Agreement, the Borrowers and the Designated Subsidiaries (if so required by the Collateral Agent) must acknowledge
that the assignee is entitled to the benefit of the Security.

 

		(d)	Each assignment by a Lender is subject to the prior consent of the Agents, of any Issuing Lender
and of any Swingline Lender, and, if made at a time when no Default is continuing, to the prior consent of the Borrowers (which
consents will not be unreasonably withheld). However, no such consent will be required if the assignee is another Lender.

 

		(e)	Sections 20.4(a) to 20.4(d) do not apply to (i) a participation that a Lender may grant to
another financial institution or to an assignment by way of security to a Federal Reserve Bank provided that no such participation
or assignment will release any Lender of its obligations under the Credit Documents or confer upon any participant any right against
any Agent, and (ii) an assignment made after Default to effect any adjustment required to be made pursuant to Section 17.4.

 

		(f)	No assignment or participation made at the time when no Default is continuing may increase for
any Borrower the costs of the Borrowings pursuant to Section 8.5.

 

		20.5	Designated Lenders

 

		(a)	With the written consent of the Administrative Agent (which will not be unreasonably withheld),
a Lender (the “designating Lender”) may designate one of its Affiliates or another Lender or an Affiliate thereof
(the “designated Lender”) for the purposes of making available its Commitment in respect of Tranche B. Upon
its acceptance of the designation and as long as such designation has not been terminated, the designated Lender (if not already
a Lender) will be deemed to be a Lender for all purposes of the Credit Documents, with a Commitment (or an additional Commitment
if it is already a Lender) corresponding to the portion of the applicable Tranche to be made available to it and with the designating
Lender’s Commitment under the Facility being reduced accordingly. No such designation will reduce the obligations of the
designating Lender under Tranche A, including as a result of an increase in its Commitment due to a reallocation made pursuant
to Section 2.2.

 

		(b)	A designating Lender may not make an assignment of its Commitment under the Facility without terminating
the designation prior to making the assignment. For greater certainty, the assignee may also avail itself of the provisions of
Section 20.5(a). A designated Lender may not make an assignment in respect of the Tranche which is the subject of the designation.
Any termination of a designation will result in the outstanding Borrowings owing to the designated Lender in respect of the Tranche
which was the subject of the designation being automatically assigned to its designating Lender (notwithstanding anything to the
contrary in Section 20.4 but subject to Section 20.4(f)), with the designating Lender being obligated to pay to the designated
Lender the price of the assignment in accordance with their agreement relating to the designation.

 

    	 	- 53 -	 

     

    

 

		(c)	Each of Fédération des caisses Desjardins du Québec and The Toronto-Dominion
Bank designates as its designated Lender its Affiliate specified below its name on the signature pages of this Agreement for the
purposes of making available its Commitment in respect of Tranche B. Each such designated Lender hereby accepts the designation
made by its designating Lender.

 

		(d)	Sections 20.4(c) and 20.4(f) will apply to any designation of a designated Lender made after
the date of this Agreement, as if the designation were an assignment and the designated Lender were an assignee.

 

		20.6	Notes

 

At the request of a
Lender, any Borrower will execute in favour of such Lender a note evidencing its indebtedness to such Lender under this Agreement.

 

		20.7	No Waiver

 

The omission by any
Agent or any Lender to exercise any of its rights will not be deemed to be a waiver of the exercise of any such right subsequently.
The omission by any Agent or any Lender to notify any Credit Party of the occurrence of a Default will not be deemed to be a waiver
of the right of such Agent or of such Lender to avail itself of such Default.

 

		20.8	Irrevocability of Notices of Borrowings

 

No Borrower may cancel
a notice of Borrowing, conversion, renewal, reduction or prepayment. The Borrower concerned must indemnify the Lenders in respect
of any loss resulting from its failure to act in accordance with such notice.

 

		20.9	Set-off

 

If an Event of Default
occurs and is continuing, any Agent and any Lender are authorized to set off and to apply any and all deposits held for any Credit
Party against any amount due and payable by any Credit Party under the Credit Documents.

 

		20.10	Indemnification

 

		(a)	The Borrowers must pay on demand the amount of all reasonable costs and expenses (including legal
and other professional fees) incurred by any Agent in connection with the implementation of the Facility and the preparation, negotiation,
execution, syndication and administration of the Credit Documents, as well as the reasonable costs and expenses incurred by any
Agent or the Lenders in connection with the enforcement of, or the preservation of any rights under, any Credit Document.

 

    	 	- 54 -	 

     

    

 

		(b)	If any law, regulation, administrative decision or guideline or decision of a Court (i) increases
the cost of the Facility for any Lender or (ii) reduces the income receivable by any Lender from such Facility (including, without
limitation, by reason of the imposition of reserves, taxes or requirements as to the capital adequacy of such Lender but in no
event by reason of taxes on the overall net income of a Lender), such Lender may send to the Borrower concerned a statement indicating
the amount of such additional cost or reduction of income; in the absence of manifest error, this statement shall be conclusive
evidence of the amount of such additional cost or reduction of income and the Borrower concerned must pay forthwith said amount
to such Lender.

 

		(c)	The Borrowers must pay on demand the amount of any breakage cost and other loss suffered by a Lender
as a result of the conversion or repayment of a Borrowing before the maturity date of its period, irrespective of the cause of
such conversion or repayment (including a repayment resulting from a demand for payment after the occurrence of an Event of Default).
In the absence of manifest error, a statement prepared by the affected Lender indicating the amount of such cost or other loss
and the method by which same was calculated will be binding and conclusive.

 

		(d)	The Borrowers must indemnify the Administrative Agent, the Collateral Agent, the Lenders, their
Affiliates and their respective officers, directors, employees and agents (each, an “indemnitee”) and hold them
harmless from and against all losses, liabilities, claims, damages or expenses (including costs to defend any claim) suffered or
incurred by or made against any of them in any manner whatsoever arising from or related to the Credit Documents or the transactions
contemplated thereby (including the use of the proceeds from any Borrowing or as a result of any Default or non-compliance by any
Credit Party with any Environmental Laws or of any claim under Environmental Laws in connection with the operations of, or any
property owned or operated by, any Credit Party). The foregoing indemnity will not however apply as to any indemnitee to losses,
liabilities, claims, damages or expenses resulting from the gross negligence or wilful misconduct of such indemnitee or from a
breach in bad faith by such indemnitee of its obligations under a Credit Document.

 

		20.11	Mitigation of costs

 

Each Lender will use
its best efforts to avoid any additional cost or reduction of income for which a Borrower is required to indemnify such Lender
pursuant to Section 20.10(b). However, nothing herein will require any Lender to take any action which would cause such Lender
to incur any expense which would not materially reduce any amount to be received pursuant to Section 20.10(b) or which the
Lender determines in its sole judgment to be inadvisable for regulatory, competitive or internal management reasons. The Borrowers
will reimburse any Lender for any expense incurred by such Lender in taking any action pursuant to this Section 20.11.

 

		20.12	Corrections of Errors

 

The Administrative
Agent is authorized to correct any typographical error or other error of an editorial nature in this Agreement and to substitute
such corrected text in the counterparts of this Agreement, provided that such corrections do not modify the meaning or the interpretation
of this Agreement and provided that copies of the corrected texts are remitted to each party.

 

    	 	- 55 -	 

     

    

 

		20.13	Communications

 

Any Agent is entitled
to rely in its dealings with any Borrower upon any instruction or notice which such Agent believes in good faith to have been given
by a Person authorized to give such instruction or notice or to make the applicable transaction.

 

		20.14	Counterparts

 

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

 

		20.15	Waiver of Jury Trial

 

EACH OF THE BORROWERS,
THE AGENTS AND THE LENDERS IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY
JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER CREDIT DOCUMENTS.

 

Article
21 - Notices

 

		21.1	Sending of Notices

 

Unless otherwise provided,
any notice to be given to a party in connection with this Agreement will be given in writing and will be given by personal delivery,
by a reputable delivery service, by telecopier or (except for any notice pursuant to Article 16) by electronic mail, addressed
to the recipient at its address specified in Schedule F hereof in the case of a notice to a Borrower or an Agent or at its
address provided to the Administrative Agent in the case of a notice to another party or, in each case, at such other address as
may be notified by such party to the others pursuant to this Article.

 

		21.2	Receipt of Notices

 

Any notice given by
personal delivery or by a delivery service will be conclusively deemed to have been given at the time of such delivery and, if
given by telecopier or by electronic mail, on the day of transmittal if before 3:00 p.m. on a Business Day, or on the following
Business Day if such transmission occurs on a day which is not a Business Day or after 3:00 p.m. on a Business Day. If the telecopy
or electronic transmission system suffers any interruptions by way of a strike, slow-down, a force majeure, or any other
cause, a party giving a notice must do so using another means of communication not affected by the disruption.

 

    	 	- 56 -	 

     

    

 

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

 

	 	Cascades Inc.
	 	 	 
	 	Per:	/s/ Allan Hogg
	 	 	 
	 	Per:	/s/ Robert F. Hall
	 	 	 
	 	Cascades USA Inc.
	 	 	 
	 	Per:	/s/ Allan Hogg
	 	Per :	/s/ Robert F. Hall
	 	 	 
	 	National Bank of Canada, as Administrative Agent
	 	 	 
	 	Per:	/s/ Dominic Albanese
	 	 	 
	 	Per:	/s/ Alexandre Bergeron
	 	 
	 	The Bank of Nova Scotia, as Collateral Agent
	 	 	 
	 	Per:	/s/ Clement Yu
	 	 	 
	 	Per:	/s/ Ryan Moonilal
	 	 
	 	(the names and signatures of the Lenders are on the next pages)

 

[Signature page – June 1, 2017
Cascades Credit Agreement]

 

     

     

    

 

	Commitment Amounts	Lenders
	 	 
	Tranche A: 	$                     	National Bank of Canada
	Tranche B:	$                     	 
	 	 	per : /s/
    Alexandre Bergeron
	Total: 	$                     	 
	 	 	per: 
	Percentage: 	                       %	 
	 	National Bank of Canada, New York Branch
	 	(in respect of Tranche B)
	 	 
	 	per : /s/
    Alexandre Bergeron
	 	 
	 	per:
	 	 
	 	 
	Tranche A: 	$                     	The Bank of Nova Scotia
	Tranche B: 	$                     	 
	 	 	per : /s/
    François De Broux
	Total: 	$                     	 
	 	 	per: /s/
    Daniel Zolov
	Percentage: 	                       %	 
	 	 
	 	 
	Tranche A: 	$                     	Canadian Imperial Bank of Commerce
	Tranche B: 	$                     	 
	 	 	per :/s/ Peter Rawlins
	Total : 	$                     	 
	 	 	per:/s/ Kazim Mehdi
	Percentage: 	                       %	 
	 	 

 

[Signature page – June 1, 2017
Cascades Credit Agreement]

 

    	 	- 2 -	 

     

    

 

	Commitment Amounts	Lenders
	 	 
	Tranche A:	$                     	Fédération des caisses Desjardins du Québec
	Tranche B: 	$                     	 
	 	 	per :/s/ André Roy
	Total : 	$                     	 
	 	 	 
	Percentage: 	                       %	per:/s/ Dominique Parizeau
	 	 
	 	Desjardins Florida Branch, as designated Lender pursuant to Section 20.5 with respect to Tranche B
	 	 
	 	per: /s/ Michel Brouillet
	 	 
	 	 
	Tranche A: 	$                     	Wells Fargo Bank, National Association, 
	Tranche B: 	$                     	Canadian Branch
	 	 	 
	Total :
	$                     	per :/s/ Michel Sirois
	 	 	 
	Percentage:
	                       %	 
	 	 
	 	 
	Tranche A: 	$                     	Bank of America, N. A., Canada Branch
	Tranche B: 	$                     	 
	 	 	 
	Total: 	$                     	 
	 	 	per : /s/ Steven Côté
	Percentage: 	                       %	 
	 	per :
	 	 

 

[Signature page – June 1, 2017
Cascades Credit Agreement]

 

    	 	- 3 -	 

     

    

 

	Commitment Amounts	Lenders
	 	 
	Tranche A:  	$                     	BNP Paribas, Canada Branch
	Tranche B:  	$                     	 
	 	 	per : /s/
    Edouard Sinor
	Total:  	$                     	 
	 	 	per: /s/
    Jean Rolin
	Percentage:  	                       %	 
	 	 
	 	 
	 	 
	 	 
	Tranche A:  	$                     	Rabobank Canada
	Tranche B:  	$                     	 
	 	 	 
	Total:  	$                     	per : /s/
    Marc J. Drouin
	 	 	 
	Percentage:  	                       %	 
	 	per: /s/
    Yacouba Kane
	 	 
	 	 
	Tranche A:  	$                     	Comerica Bank, operating through its Canada 
	Tranche B:  	$                     	Branch
	 	 	 
	Total:  	$                     	per : /s/
    Gregory N. Bloch
	 	 	 
	Percentage: 	                       %	Comerica Bank,
	 	(in respect of Tranche B)
	 	 
	 	per : /s/
    Gregory N. Bloch
	 	 

 

[Signature page – June 1, 2017
Cascades Credit Agreement]

 

    	 	- 4 -	 

     

    

 

	Commitment Amounts	Lenders
	 	 
	Tranche A: 	$                     	The Toronto-Dominion Bank
	Tranche
B:  	$                     	 
	 	 	per : /s/ Serge Cloutier
	Total: 	$                     	 
	 	 	per: /s/ Mel Saklatvala
	Percentage:	                       %	 
	 	Toronto Dominion (Texas) LLC, as designated Lender pursuant to Section 20.5 with respect to Tranche B
	 	 
	 	per : /s/ Annie Dorval
	 	 
	 	 
	 	 
	Tranche A: 	$                     	Royal Bank of Canada
	Tranche B: 	$                     	 
	 	 	per: /s/ Pierre Bouffard
	Total: 	$                     	 
	 	 	per:
	Percentage: 	                       %	 
	 	 
	 	 
	Tranche A: 	$                     	Bank of Montreal
	Tranche B: 	$                     	 
	 	 	per: /s/ Bruno Jarry
	Total: 	$                     	 
	 	 	per:
	Percentage: 	                       %	 
	 	 
	 	Bank of Montreal, Chicago Branch
	 	(in respect of Tranche B)
	 	 
	 	per: /s/ Brian L. Banke
	 	 

 

[Signature page – June 1, 2017
Cascades Credit Agreement]

 

    	 	- 5 -	 

     

    

 

Schedule A

Applicable Margins or Rates

 

	Rating	Prime,

US Base	Acceptance Fee / Libor

L/C Fee	Stand-By Fee
	BBB/Baa2 or Higher	            bps	            bps	            bps
	BBB-/Baa3	            bps	            bps	            bps
	BB+/Bal	            bps	            bps	            bps
	BB/Ba2	            bps	            bps	            bps
	BB-/Ba3 or Lower	            bps	            bps	            bps

 

DETERMINATION OF APPLICABLE MARGIN
OR RATE

 

		1.	The rates of the margins applicable to Prime Rate, US Base Rate and Libor and the rates of the
Acceptance Fees, stand-by fees and Letter of Credit fees under the Facility (the “Rates”) will be determined
as set forth in this Schedule.

 

		2.	During any day that Cascades has a senior secured long-term debt rating from S&P or Moody’s
without third-party credit enhancement (a “Rating”), the applicable Rates will be those which correspond to
the Rating in effect at the close of business on such day, as specified in the above grids. If, on any day, Cascades has a Rating
from both of S&P and Moody’s but the two Ratings are not at the same level, then (i) the higher Rating will apply if
the Ratings are not more than one level apart, and (ii) the Rating which is at mid-point will apply if the Ratings are more than
one level apart; if there is no mid-point level, the higher of the two intermediate Ratings will apply.

 

		3.	If, on any day, Cascades has no Rating, then the applicable Rates will be those which correspond
to the Rating that would be one level higher than the S&P or Moody’s rating in effect on such day for the senior unsecured
long-term debt rating of Cascades; if on any day, Cascades has received different senior unsecured long-term debt ratings from
both S&P and Moody’s, then the applicable Rates will be determined using the same formula as in paragraph 2 for differentials
in Ratings. If there exists any day that Cascades does not have any Rating or senior unsecured long-term debt rating from S&P
and Moody’s, the applicable Rates for such day will be those which correspond to a Rating of lower than BB-/Ba3.

 

    	 	- 6 -	 

     

    

 

		4.	Interest, Letter of Credit fees and stand-by fees will be calculated, for any day, using the applicable
Rate in effect on the relevant day. Acceptance fees will be calculated using the Rate in effect on the date such fees are payable.
Any change of Rate (including on the Effective Date or as a result of an amendment to this Agreement) will give rise to adjustments
to Acceptance fees previously calculated if the period of calculation extended beyond the date of the modification. The adjustments
will apply to the number of days remaining to accrue from the date of the modification. The adjustments will be calculated by the
Administrative Agent and be payable by the Cascades or the Lenders (as applicable) within three Business Days from the date of
a demand therefor by the Administrative Agent.

 

		5.	The Applicable Rate will be 662⁄3% of the rate otherwise applicable (as specified in the column
governing Letter of Credit fees) for fees payable in respect of Letters of Credit securing the performance by the Credit Parties
of contracts (including bids) for the supply of goods or services by the Credit Parties to their customers.

 

		6.	This Schedule does not apply to the Letter of Credit fee applicable to a documentary Letter of
Credit. As provided in Section 6.2 of the Credit Agreement, the fee payable in respect of any documentary Letter of Credit
will be based on the rate then offered by the applicable Issuing Lender to its customers for similar documentary letters of credit.

 

    	 	- 7 -	 

     

    

 

Schedule B

List of Designated Subsidiaries

  

	Name
	Cascades Canada ULC
	Cascades Holding US Inc.
	Cascades Paperboard International Inc.
	Cascades New York Inc.
	Cascades Fine Papers Group Inc.
	Cascades Flexible Packaging Inc.
	7251637 Canada Inc.
	Norampac Inc.
	Cascades Containerboard Packaging – Export Sales Corp.
	4626 Royal Avenue Holding LLC
	401 47th Street Holding LLC
	Cascades Transport Inc.
	Cascades CS + Inc.
	Cascades CS + USA Inc.
	7678169 Canada Inc.
	Cascades Maritime Inc.
	Cascades Médcas Inc.

 

    	 	- 8 -	 

     

    

 

XXXXXX X

                                                    

                                                                 

                

 

                                         

                                

                            

                         

               

                                               

 

                                                                                                                                    

 

                                                                                                          

 

        

 

                      
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                 

 

                      
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                 

 

                                                        

 

                      
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                 

 

                         

 

                                                                                                    

 

                      

 

                      
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                                    
                                     
                                                    
                                     
                 

 

                                                                       

 

 

          

 

                                                                                                                                                                                                           

  

    	 	- 9 -	 

     

    

 

XXXX        XXXX X

                                                                                              

 

                

 

                                  

                                

                                

                         

               

                                               

 

                         

 

                                                                                                          

 

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
             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XXXXXXXX X

                                                    

                

 

                                  

                                

                                

                         

               

                                               

 

                           

  

                                                                                                          

 

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                    
                                   
                                   
                                   
                 

   

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
          
                                   
                                   
                                   
                                   
                                   
                                   
      

 

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
          
                                   
                                   
                                   
                                   
                                   
                                   
      

 

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
          
                                   
                                   
                                   
                                   
                                   
                                   
      

  

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
          
                                   
                                   
                                   
                                   
                                   
                                   
      

  

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
          
                                   
                                   
                                   
                                   
                                   
                                   
      

 

    	 	- 11 -	 

     

    

 

XXXXXXXX X

                                                                                                                                

 

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                    
                                   
                                   
                                   
                         

  

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                              
                                   
                                   
                                   
                                   
                                   
      

 

                                                                                                                                                    

 

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
       

 

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
         

  

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
          
                                   
                                   
                                   
                                   
                                   
                                   
      

 

                                                                                                                                      

 

                                       

 

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
         

 

                                       

 

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
          
                                   
                                   
                                   
                                   
                                   
                                   
      

 

                                       

 

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
       

 

    	 	- 12 -	 

     

    

 

  
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                 

 

                                       

 

                                                                                                                                                                                                           

 

                                                                              

 

  
                                   
                                   
                                   
                                   
                                   
                             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    	 	- 14 -	 

     

    

  

	 	        	 	 
	 	              	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	                                            
	 	 	 	 
	 	 	 	 
	 	        	 	 
	 	              	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	                                            
	 	 	 	 
	 	        	 	 
	 	              	 	 
	 	 	 	 
	 	 	 	                                                                                 
	 	 	 	 
	 	        	 	 
	 	              	 	 

  

    	 	- 15 -	 

     

    

 

                                      

                                                                                                                                

 

	                                                                	 	                                                                                     
	                                             	 	                                                                
	 	 	 
	                                                                             	 	                               
	                                                                                   	 	                                           
	                                                                     	 	                                                            
	                                           	 	 
	 	 	                                                                                     
	                                      	 	                                                
	                                              	 	                                                         
	                                      	 	 
	                                   	 	                                                            
	              	 	 
	                                                      	 	 
	 	 	 
	                                      	 	 
	                                 	 	 
	                                                      	 	 
	 	 	 
	                                       	 	 
	 	 	 
	                                                             	 	 
	                                              	 	 
	                                      	 	 
	                                       	 	 
	                                                    	 	 
	 	 	 
	                                      	 	 
	                                     	 	 
	 	 	 
	                                                                             	 	 
	              	 	 
	                            	 	 
	                                                                 	 	 
	                                         	 	 
	 	 	 
	                                	 	 
	                                          	 	 

 

    	 	- 16 -Exhibit 10.7

 

Personal
Employment Contract

 

Entered into
in Rosh Pina on February 27, 2018

 

		Between:	On Track Innovations Ltd.

A
an Israeli public corporation located in the ZHR Industrial Zone, Rosh Pina

(hereafter,
“Company”)

 

on the one hand;

 

		And:	Assaf Cohen, ID No. 066550468

		Address:	145 Aba Hushi Ave., Haifa

(hereafter,
“Employee”)

 

on the other hand;

 

	Wherefore:	The Employee has been employed by the Company as of July 19, 2015as a controller in the Company’s finance department pursuant to a Personal Employment contract dated June 23, 2015 (hereafter, “Previous Contract”) and as of February 27, 2018 the Employee is employed by the Company as Chief Financial Officer (hereafter, “CFO”) of the Company and its subsidiaries subject to and in accordance with a resolution of the Company’s Board of Directors (hereafter, “Board of Directors”) dated March 20, 2018; and

 

	Wherefore:	The Company desires to continue to employ the Employee as CFO of the Company and its subsidiaries (hereafter, the “Position”) and the employee desires to be employed in the Position, all subject to the terms and conditions set forth in this agreement, the principles of which were approved by the Board of Directors in its resolution dated March 20, 2018 and the rest of which will be approved as required by law; and

 

	Wherefore:	It has been agreed that the employment of the Employee in the Position will be done so as to ensure full continuation of the Employee’s rights, including the right to termination severance payment; and

 

	Wherefore:	The Employee declares that nothing prohibits his entry into this agreement and that he has the skills, experience, and competence required for the purpose of performing the Position and that he has expressed his interest in being employed by the Company in the Position; and

 

	Wherefore:	The parties desire to establish the terms and conditions for the Employee’s employment, all as set forth in this Agreement and subject to the terms and conditions herein.

 

	Therefore, the parties declare and agree as follows:

 

	A.	General

 

	1.	The preamble to this agreement constitutes and integral part thereof.

 

	2.	The attachments to this agreement constitute integral parts thereof.

 

	3.	Captions and headings are for convenience only and shall not serve as a basis for interpretation of this agreement.

  

    	 	1	 

     

    

 

	B.	The Employment

 

		4.	This agreement constitutes the entirety of the terms and
conditions applicable to Employee’s employment by the Company.  No collective bargaining agreements or arrangements
or other special arrangements or agreements shall be applicable to the employment relationship between Employee and Company and
the relationship between the parties will be governed by this agreement only.

 

		5.	The employee shall be employed by the Company in the Position and shall be subject to his
                                                                            supervisor as listed in Attachment A or to any person appointed by the Company. The Company’s management will determine
                                                                            the employee’s areas of activity and powers, and may change them from time to time, in consultation with the
                                                                            employee.

 

		C.	Obligations and Declarations of the Employee

 

		6.	The Employee declares and commits hereby as follows:

  

	 	6.1.	The Employee will perform the Position with dedication, loyalty and trustworthiness in any location, in Israel and abroad, in accordance with the instructions that he will receive from time to time from his supervisors, and to this effect will dedicate his time, efforts, skills and experience as necessary and needed.  The Employee will not take on any other employment or occupation without prior written approval of the Company.

 

	 	6.2.	Employee is not prevented, whether by contract or otherwise, from entering into this Agreement and performing his obligations hereunder.

 

	 	6.3.	All the details and information supplied by Employee to the Company in submission of his candidacy for the Position are truthful, correct and accurate, and Employee commits to notify the Company of any change in such details or information.

 

	 	6.4.	The Employee commits to notify the Employer, immediately and without delay, of any subject or matter in which Employee has a personal interest which may cause a conflict of interest in the Employee’s performance of the Position.

 

	D.	Work Hours

 

	7.	The employee will work five days a week, in accordance with the usual practice and as acceptable with the other employees of the Company at that time and according to the requirements of the supervisors. It is clarified that working hours will be subject to the Hours of Work and Rest Law, and that the worker will not be required to work on Saturdays or Jewish holidays that are not working days according to the law.

 

		8.	It is hereby agreed that in any event, the actual working
hours of the employee shall not be less than 43 regular weekly hours (as opposed to overtime) (not including a lunch break of
0.5 hour for no consideration). It is agreed that the consideration detailed in Section E below includes the full range of regular
work hours in respect of the employment of the employee in his position and up to 22 additional working hours at a value of 125%
of base hour + up to 22 additional work hours, 150% of the base hour per month. The Company prohibits the employee from increasing
the number of work hours beyond the aforesaid, unless the employee is given written and prior written approval by the direct manager
of the employee.

 

		9.	On holiday eves and during the intermediate days of the
holiday, the worker will work for a number of hours as is customary in the company, and in accordance with the law

 

	E.	Compensation

 

	10.	As compensation for the Company’s employment of the Employee, the Company will pay the Employee a monthly salary as detailed in the notice of terms of employment attached hereto as Attachment A (hereafter, the “Determining Wage”).

 

		11.	It is agreed that 15% of the Determining Wage specified
in section 10 above is paid to the Employee as special consideration for his confidentiality undertakings, non-competition and
protection of intellectual property rights, as set out in sections 40-42 of this agreement below and in a letter of confidentiality,
As Attachment B (hereinafter: “Special Consideration”).

  

The Employee
hereby undertakes to refund the Special Consideration to the Company in the event that it exceeds its obligations set forth
in Sections 40-42 of this Agreement below and in the letter of undertaking attached to this Agreement as Attachment B. The
Company reserves the right to withhold and / or demand any payment received by the Employee in respect of the Special
Consideration insofar as the Employee will breach his obligations as aforesaid. Any amount in respect of the special
consideration which the Employee will be required to repay to the Company shall bear fixed interest and linkage differentials
to the Consumer Price Index from the date on which they were paid to the Employee.

  

    	 	2	 

     

    

 

	12.	
        The employee is aware that his working
        relationship with the Company is based on trust and on flexible hours, and that the Position and the work needs will require the
        Employee, from time to time, to work beyond regular working hours and even on unusual days. Therefore, every month, in addition
        to the basic salary, the employee will be paid a global compensation for overtime and exclusions as detailed in the notice regarding
        the terms of employment in Attachment A (hereinafter: the “Global Consideration”). The global consideration as stated
        was determined on the basis of an average and multi-period evaluation of its function. The employee declares and undertakes that
        he will not exceed the quota of overtime hours without obtaining the Company’s prior approval for such deviation.

         

        It is hereby clarified that the Global
        Consideration shall constitute the full consideration to which the Employee shall be entitled in respect of his employment during
        overtime in that month and the Employee shall not be entitled to any additional consideration for such overtime work.

 

	13.	The basic salary and the global compensation (hereinafter together: “Determining Salary” or “Salary”) shall be paid to the employee once a month, no later than the ninth day of each month, for his work in the Company in the past month.

  

		14.	The Determining Wage shall be updated in accordance with
the cost of living adjustments as applied to the general economy, and subject to the decision of management from time to time.

 

		15.	Adjustments of the components of salary will be done, in
at all, at the discretion of the company once per year in January.

 

		16.	The Determining Wage is the exclusive basis for contributions
towards social benefits as provided in this agreement and for termination severance.

 

		17.	It is clarified hereby that any grant and/or expense participation
and/or expense reimbursement and/or other benefit that the Employee shall receive (if any), do not constitute part of the Determining
Wage for purposes of social benefits including termination severance and/or distributions to the various pension plans.

  

	F.	Annual Leave, Sick Pay and Recuperation

 

	18.	The Employee will be entitled to annual leave as set forth in Attachment A.

 

	19.	The Employee’s taking of any annual leave will be done in coordination with the Company and subject to the Employee’s direct supervisor’s approval at least 14 days in advance.

 

	20.	It is clarified hereby that the Employee will be required in each work year to utilize the annual leave to which he is entitled as set forth in Attachment A and will not be entitled to roll-over and aggregate annual leave days unless such aggregation is approved in writing in advance by the Company in certain circumstances as set by the Company from time to time in accordance with its policies.  Annual leave that is not utilized by the Employee within the work year in which such leave was earned will be void and will not be eligible for utilization or payout.

 

	21.	The Employee will be entitled to paid sick days in accordance with the Sick Pay Law and against presentation of medical approvals.

 

	22.	After the completion of one year of employment, Employee shall be paid Recuperation Pay (Dmei Havraa) at the rates determined from time to time in agreements between the Coordinating Bureau of Economic Organizations and the General Organization of Workers (Histadrut).

 

	G.	Term of Agreement

 

	23.	This agreement shall be valid from the date of its execution for an unlimited term.

  

    	 	3	 

     

    

 

	24.	Notwithstanding the above, each side may terminate the agreement for any reason and without cause by delivery of prior notice in writing as set forth in Attachment A.

 

	25.	In the prior notice period, the Employee will continue in the performance of his duties, and will transfer his duties in an efficient and organized manner to this replacement, in accordance with the Company’s instruction.  Notwithstanding the foregoing, the Company is entitled to waive, in whole or in part, Employee’s continued performance of his duties during the prior notice period.

 

	26.	During the prior notice period, whether or not employee continued performance of his duties in whole or in part, the Employee will be entitled to full compensation and benefits.  Notwithstanding the foregoing, the Company shall be entitled to notify the Employee of immediate termination of Employment and pay him for the prior notice period (at the monthly rate of salary at which the Employee would have been paid had he continued performance of his duties during the prior notice period) and in such instance, the Employee will be entitled to the prior notice period compensation only.

 

	27.	Notwithstanding anything else herein, the Company shall be entitled to terminate the Employee immediately and without prior notice in the events of breach of trust; intentional harm to the Company or its property; criminal conviction in connection with or due to performance of the Position; or criminal conviction for an offence of moral turpitude.

 

	H.	Savings Plan (Kupat Gemel), Study Fund (Keren Hishtalmut) and Managers’ Insurance (Bituach Menahalim)

 

	28.	If and to the extent set forth in Attachment A, Company shall make distributions to a pension fund and/or managers’ insurance or savings plan and/or study fund in the Employee’s name.

 

	29.	The Company will transfer the required payments monthly and in parallel will deduct Employee’s contributions from Employee’s salary as set forth in Attachment A.

 

	30.	For avoidance of doubt, the payments to the pension fund and/or managers’ insurance, if and to the extent the Employee is entitled to them per Attachment A, will be drawn from the Determining Wage as defined above.

 

	31.	It is hereby clarified that the employer’s payments to the pension fund and/or managers’ insurance, will constitute Employee’s entire entitlement to severance pay in respect of the paid salary, in place of any severance pay to which the Employee otherwise may have become entitled, as provide under 14 of the Severance Pay Law 1963.

 

	I.	Termination of Employment

 

	32.	Should the Employee’s employment terminate for whatever reason, except under circumstances which preclude Employee’s receipt of severance pay, the Employee shall be entitled to receive all amounts that have accrued to his benefit and all the amounts that were distributed to savings plan (to the extent distributed), whether from his distributions or the Company’s contributions, including all interest and profits that have accrued on such amounts.

 

	33.	The
Company and the Employee adopt for purposes of this agreement, the General Order regarding employers’ payments to pensions
and insurance funds instead of severance pay pursuant to the Severance Pay Law of 1963 (Section 14 to the Law), as issued under
the signature of the Minister of Labor on June 30, 1998 and published in Official Gazette 4659 (hereafter, “Labor Minister’s
Order”). 

 

	34.	The Company’s payments as described above will come in place of 100% of the severance pay that the Employee or his beneficiaries are entitled to in connection with the salary for which the payments were made and for the period they were made (hereafter, the “Exempt Wages”).

 

	35.	The Labor Minister’s Order will be applicable to the Company’s contributions, but does not diminish the Employee’s rights by law, collective agreement, expansion order or contract, to severance pay for salary above the Exempt Wages.

  

    	 	4	 

     

    

 

	36.	Should Employee’s employment terminate due to Employee’s resignation or events or circumstances preventing continued employment (including Employee’s death), the Employee (or his beneficiaries, as applicable) shall be entitled:

 

	36.1.	To receive from the Company the Employee’s monthly salary for the portion of the year which the Employee actually worked;

 

	36.2.	To receive from the pension fund all amounts that accrued to the benefit of the Employee said fund for distributions to the savings plan (Kupat Gemel), whether from Employee’s distributions or Company’s contributions, including all interest and profits that have accrued on said fund and also to receive the distributions that have accrued to the Employee’s benefits in the study fund (Keren Hishtalmut), whether from Employee’s distributions or Company’s contributions.

 

	37.	It is acknowledged and agreed that in the event that the Employee’s termination is due to breach of trust or other material breach of his obligations to the Company under this agreement, including but not limited to any obligations regarding confidentiality and non-competition and including termination due to circumstances which preclude receipt of severance pay in accordance with the law, then despite anything else herein to the contrary, the Employee will not be entitled to receive prior notice of termination or payment for a prior notice period, and will also not be entitled to severance pay and the Company shall be entitled to demand return of all funds that were transferred to the severance fund on account of such severance pay, including all interest and profits earned on such amounts.

 

	38.	Upon termination of the Employee’s emplacement with the Company, the Employee shall deliver to Company all documents, information and other materials or property that has been provided to him or prepared by him in connection with his employment with the Company.

 

	39.	For avoidance of doubt, the Employee shall not have any offset or lien rights against the property or funds of the Company that are in the Employee’s possession or in connection with any debt of the Company to the Employee.

 

	J.	Confidentiality and Non-Competition

 

	40.	The
Employee acknowledges hereby that in light of the business of the Company it is of utmost importance to preserve the confidentiality
of any information and/or document which he receives during his employment and he commits to preserve confidentiality in accordance
with the non-disclosure agreement attached hereto as Attachment B.

 

	41.	The Employee commits as follows:

 

	41.1.	Not to, directly or indirectly, engage with any customer of Company or its related companies, whether independently or as an employee, including by partnership or holding, by himself or through others, of shares or management rights in any companies, during the period of this agreement and for a period of 12 months thereafter, in any matter related to the business of the Company except as part of this performance of his duties to the Company.  It is clarified that the list of clients and/or vendors and/or marketing system and/or any other list that was utilized by employee in the regular course of his employment with the Company are trade secrets of the Company.  The Employee commits not to take advantage of and/or use such lists except with the specific written consent of the Company.

 

	41.2.	Not to work, during the period of this agreement and for a period of 12 months thereafter, for any reason, in Israel or elsewhere, whether directly or indirectly, in any business, job, or other occupation which competes in any way with the Company’s and/or its related companies’ business in the field of Contact/contactless smart cards and IoT.

 

	41.3.	Not to disparage the Company or its shareholders or its customer.

  

    	 	5	 

     

    

 

	K.	Intellectual Property and Instruments of Service

 

	42.	Without
    derogating from all of the Employee’s obligations in the letter of undertaking in Attachment B, any
    invention, patent, copyright, trade mark, trade secret, knowledge and information developed by the employee as a result of
    his employment with the Company and / or at the time of his employment in the Company shall belong to the Company and the
    Employee undertakes to sign any document Which will be required to realize the Company’s rights as
    aforesaid.

 

	L.	Miscellaneous

 

	43.	The payments and benefits granted under this agreement are subject to tax withholdings and other obligatory withholdings that the Company must withhold by law and nothing in this agreement shall be deemed as obligating Company to pay any tax or payment which Employee is obligated to pay, except the benefit value of meals which shall be grossed up by company to which Employee and as may be otherwise agreed.

 

	44.	The terms of employment with the Company are solely as set forth in this personal employment contract between Employee and Company and Employee will not be entitled to any payment or other benefits relating to his employment with the Company or termination thereof except as specifically provided in this agreement.

 

	45.	This agreement will supersede all prior agreements between Employee and Company whether written or oral.

 

	46.	Any change or cancellation of a term of this agreement shall be solely in writing and executed by both parties.

 

	47.	The address of the parties for purposes of this agreement shall be as first written hereinabove and any notice, document or pleading that will be sent by one part to the other to the above addresses shall be deemed as delivered to the recipient if delivered by hand – at the time of delivery and if delivered by registered mail – 72 hours after mailing.

 

Acknowledged
and Agreed:

 

	/s/ On Track Innovations Ltd.	 	/s/ Assaf Cohen
	On Track Innovations, Ltd.	 	Employee

   

    	 	6	 

     

    

 

Attachment A

 

Employee’s
Details:

 

		Name:	Assaf Cohen ID: 066550468 Address: 145
Aba Hushi Ave., Haifa

 

	1.	Title:	 Chief Financial Officer
of the Company and its Subsidiaries

 

	2.	Date
of commencement of Employment:	February 27, 2018

 

	3.	Direct Supervisor: 	Company CEO

 

	4.	Pay Basis:	Monthly Salary

 

	5.	The Employee will be entitled to a personal vehicle for purposes of performing his duties in accordance with the type and/or class of vehicle customary in the Company for employee’s position.  All regular expense relating to the use of the vehicle, except for fines of any type, will be borne and paid by Company.  Taxes for the benefit value of the vehicle will be borne by Company.

  

		6.	The total regular payments to be paid to Employee as salary
(gross) are:

 

		6.1	until December 31, 2018:

 

		6.1.1 	A basic wage of NIS 22,500 gross per month, including special consideration at the rate of
                                                                                          15% for the employee’s obligations to maintain confidentiality, non-competition and protection of intellectual property
                                                                                          rights as detailed in sections 40-42 of the personal employment agreement and in writing a commitment to confidentiality,
                                                                                          intellectual property and non-competition attached As Attachment B to the Personal Work Contract;

 

		6.1.2	Global compensation of NIS 7,500 gross per month, reflecting
full compensation for the worker’s work during overtime hours;

 

		6.2	Commencing on January 1, 2019:

 

		6.2.1 	A basic wage of NIS 26,250 gross per month, including special
consideration at the rate of 15% for the employee’s obligations to maintain confidentiality, non-competition and protection of
intellectual property rights as detailed in sections 40-42 of the personal employment agreement and in writing a commitment to
confidentiality, intellectual property and non-competition attached As Attachment B to the Personal Work Contract;

 

		6.2.2 	Global compensation of NIS 8,750 gross per month, reflecting
full compensation for the worker’s work during overtime hours;

 

		6.3	The basic salary and the Global Compensation (hereinafter
together: “Determined Salary” or “Salary”) shall be paid to the Employee by the 9th day of each
calendar month, in respect of the preceding month;

  

    	 	7	 

     

    

 

	7.	The breakdown of all payments to be paid to an employee as wages is as follows:

 

	Regular Payments	Irregular Payments
	Type of Payment	Date of Payment	Type
of Payment**	Date of Payment**
	Salary	The 9th of the following month	---	---

 

** Description
of types of payments: basic salary, money equivalent - non-intoxicating food and beverages for consumption in the workplace and
non-reimbursable housing, seniority increment, premiums and incentive, overtime, shifts and any other payment for non-fixed wages.

 

** If the date
of payment is not fixed, or the date will apply when a condition is met, please note this.

 

		8.	Payment for Social Benefits:

 

Social benefits will
be paid from the commencement of employment.

 

	Date of commencement of Payment	Percentage of Employer Contribution	Percentage of Employee’s Contribution	Receiving Entity and Name of Plan	Type of Payment
	Month following Pay	8.33% instead of severance + 5% savings (gemel) + up to 2.5% disability	6%	Managers’ insurance and/or pension fund	Insurances
	Month following Pay	7.5%	2.5%	By Employee’s Choice	Study Fund (Keren Hishtalmut)

 

	9.	Number of annual leaves days to be granted to Employee is 18 days.

 

	10.	Utilization of leave will be with prior approval from direct supervisor.

 

	11.	
        The prior notice period for termination
        of employment by the Company or by the Employee shall be:

         

        Until December 31, 2018 - 60 days.

         

        From January 1, 2019 – 90 days

 

	12.	Subject to applicable law and the Company’s compensation plan and policies from time to time, the Employee will be entitled to participate in the annual bonus plan for officers of the Company, pursuant to which he will be entitled to a maximum bonus of up to 4 monthly salaries, according to the annual bonus plan to be approved by the Compensation Committee and the Board of Directors of the Company.

 

		13.	The Company’s obligations to the employee, subject to the
employee signing this letter and the labor agreement.

 

We wish the Employee
good luck.

 

Sincerely,

On Track Innovations,
Ltd.

 

I hereby declare
that I have read the above-written and understand and agree to the foregoing.

                    

	/s/ Assaf Cohen	 	February 27, 2018
	Employee’s signature   	 	Date

  

    	 	8	 

     

    

 

Attachment B

Non-Disclosure
Agreement

 

I, the undersigned,
Assaf Cohen (ID No. 066550468) in consideration for value received, hereby declare and undertake towards On Track Innovations Ltd.
and any of its parent/controlling corporation, subsidiaries and/or affiliated entities (collectively, the “Company”)
as follows:

 

	1.	In this Undertaking, the following terms shall have the following meaning:

 

	 	1.1.	“Confidential Information” means any and all information relating to Company’s proprietary technology or business including, without limitation, information, data, know-how, formulas, concepts, tests, drawings, specifications, applications, designs and trade secrets, patents, know-how, technology data and all other information, design methodology, engineering and manufacturing processes and data and information related to Company’s products or their development, equipment, suppliers, sales, customers, potential customers, business operations and plans, financial situation, members, employees and investors.

 

	 	1.2.	“Confidential Documents” means any documents containing Confidential Information, including without limitation: (i) any documents, notes, memoranda, summaries, analyses, paper works, sketches, designs, charts, specifications, prints, compilations, or any other writings relating to Confidential Information, and any other materials embodied in drawings, floppy discs, tapes, CD ROM, hard drives, software or in any other possible way containing or relating to Confidential Information or any part thereof, whether or not prepared by Company or on its behalf, (ii) all documents received, used, or that shall be received or used, by me in relation with my employment with Company, and/or (iii) the contents of such Confidential Documents as stored in my memory.

 

	 	1.3	“Competing Goods” means any goods sold in competition with the Prescribed Goods;

 

	 	1.4	“Competing Services” means any services rendered in competition with the Prescribed Services;

 

	 	1.5	“Prescribed Areas” means Israel or in any other part of the world in which Company conducts its business;

 

	 	1.6	“Prescribed Customers” means any person who is or was a customer of Company at the termination date; or  who is or was a customer of Company at the termination date or who was a potential customer with which I had been engaged in negotiations with a view to doing business on behalf of Company within the period of 6 (six) months preceding the termination date;

 

	 	1.7	“Prescribed Goods” means any products sold by Company in the ordinary course of business as at the termination date or which is then included in any strategic plan of Company;

  

    	 	9	 

     

    

 

	 	1.8	“Prescribed Services” means any services rendered by Company in the ordinary course of business as at the termination date or which is then included in any strategic plan of Company;

 

	 	1.9	“Prescribed Suppliers” means any person who is or was a supplier of Prescribed Goods and/or Prescribed Services to Company at the termination date; or is or was a supplier of Prescribed Goods and/or Prescribed Services to Company at the termination date with which I had been engaged in negotiations with a view to doing business on behalf of Company within the period of 6 (six) months preceding the termination date;

 

	 	1.10	“Restraint Period” means a period of 12 (twelve) months calculated from the termination date;

 

	 	1.11	“Termination Date” means the date upon which my employment with the Company ceases or is terminated for any reason whatsoever;

 

	2.	I am fully aware that Confidential Information and Confidential Documents are the  exclusive property of Company, and that they were made or shall be made available to me and for my use solely for the purpose of my work as an employee of Company.

 

	3.	I undertake towards Company as follows:

 

	 	3.1.	To maintain as fully confidential all Confidential Information and Confidential Documents;

 

	 	3.2.	Not to disclose or divulge to any third party, or allow any third party access to any of Confidential Information or Confidential Documents, or use any of thereof, whether directly or indirectly, save exclusively for the purposes of my work as an employee of Company.

 

	 	3.3.	Not to misuse any of Confidential Information or Confidential Documents, or any part thereof, in a manner other than the usual use of Confidential Information and Confidential Documents and for a purpose other than the purpose for which Confidential Information and Confidential Documents were divulged to me.

 

	 	3.4.	Not to make public or divulge in any way Confidential Information and Confidential Documents or any part thereof.

 

	 	3.5.	Not to duplicate, copy, scan, or create in any other way copies of Confidential Documents or any part thereof, except for the purpose for which the Confidential Information and Confidential Documents were divulged to me.

 

	 	3.6.	Upon demand of Company, at any time whatsoever, to return to Company the Confidential Information and Confidential Documents or any part thereof or copies thereof in any form whatsoever, and to, if so required, confirm in writing to Company that all Confidential Information and Confidential Documents or any copies thereof in any form whatsoever which had been in my possession have been returned to Company, and that I did not retain any copies of it, including copies made by electronic forms.

  

    	 	10	 

     

    

 

	 	3.7.	Not to remove from Company’s premises or take for my use any of Confidential Information and Confidential Documents without Company’s prior written approval, unless if such removal is made strictly for the purposes of performing my undertakings towards Company.

 

	4.	I agree and accept that:

 

	 	4.1.	Company reserves all rights in any inventions, patents, copyrights, designs, and any other intellectual property invented or devised by it in relation to Confidential Information and Confidential Documents.

 

	 	4.2.	Any invention including any patent or patent application and any copyrights or any other intellectual property invented or created by me during my employment with Company or as a result of my employment with Company (the “IP”), shall be the exclusive property of Company, and I do not have and shall not have any demand or claim against Company relating to the IP and no monetary rights therein. This Section will be considered for any purpose as “Contract” according to the meaning of this term in Section 134 of the Patents law. In other words, I hereby agree that I will not be entitled for any compensation for IP, and that I will not address in this matter to The Payment and Compensation Commission (“Hava’ada Leinianey pitzuim vetamlugim”) by virtue of the Patents law. Despite of the above, it is hereby agreed that if Company will be forced, by any entity or authority, to pay me or whoever in my place, any compensation due to the rights stipulated above, this payment will be considered as my debt to Company, hence Company shall be entitled to offset and deduct this payment from any other sum that I am entitled to from Company according to this Undertaking (or according to other binding agreement between me and Company), including from the sum that I will be entitled to receive from Company as mentioned above.

 

	 	4.3.	I undertake to sign any document and to do any other act required in order to assign and register the said rights in the name of Company, or to prove Company’s rights, if and to the extent that this is required in the opinion of Company and/or Company’s legal counsels.

  

	 	4.4.	I shall not challenge Company’s intellectual property rights in any way, including without limitation, by filing to any court, patent or other authority, a claim, opposition or request for cancellation against such rights.

 

	5.	The restrictions of use and disclosure set forth in this undertaking shall not apply to any Confidential Information and Confidential Documents which after they were disclosed became, available to the general public, through no breach of a confidentiality undertaking towards Company.

  

    	 	11	 

     

    

 

	6.	It is recorded that in the course of my duties I (i) have acquired and/or will acquire considerable know-how in and will learn of Company’s techniques relating to the business; (ii) will have access to names of customers with whom Company does business, whether embodied in written form or otherwise; (iii) will have the opportunity of forging personal links with customers of Company; and (iv) generally will have the opportunity of learning and acquiring the trade secrets, business connections and other Confidential Information appertaining to Company’s business.

 

I acknowledged that
the only effective and reasonable manner in which Company’s rights in respect of its business secrets and customer connections
can be protected is the restraint I am imposing upon myself as set forth hereunder. Therefore, in consideration of the non-competition
payment, as set in my employment agreement, I hereby undertake that during the term of my employment with Company and for the duration
of the Restraint Period, whether as proprietor, partner, director, shareholder, member, employee, consultant, contractor, financier,
agent, representative, assistant, trustee or beneficiary of a trust or otherwise and whether for reward or not, directly or indirectly,
I shall not -

 

	 	6.1	Carry on or be interested or engaged in or concerned with or employed by any company, close corporation, firm, undertaking or concern which carries on, in the Prescribed Areas any business which sells Prescribed Goods and/or Competing Goods or renders Prescribed Services or Competing Services or in the course of which Prescribed Goods or Competing Goods are sold and/ or Prescribed Services or Competing Services are rendered; provided that I shall not be deemed to have breached my undertaking by reason of my – (i) holding shares in Company; or (ii) holding shares in any company the shares of which do not in aggregate constitute more than 5% (five per cent) of any class of the issued share capital of such company and which are listed on a recognized stock exchange if the shares owned by me or by my relatives (as defined in the Israeli Companies Act 1999) which do not in the aggregate constitute more than 5% (five per cent) of any class of the issued share capital of such company.6.2

 

	 	  6.2.1	Not to solicit, on my own account or for any other person, the services of, or endeavor to entice away from Company any director, employee, consultant or a subcontractor of, or any other person related to Company, who during the period of 12 months prior to such termination occupied a senior or managerial position in relation to Company, and/or who was likely (in the opinion of Company) to be: (i) in possession of Confidential Information; or (ii) able to influence the customers’ connections of Company (whether or not such person would commit any breach of his contract of employment or engagement with Company).

  

    	 	12	 

     

    

 

	 	   6.2.2	Furnish any information or advice (whether oral or written) to any prescribed customer that I intend to or will, directly or indirectly, be interested or engaged in or concerned with or employed by any company, close corporation, firm, undertaking or concern carried on in any of the Prescribed Areas which sells Prescribed Goods and/or Competing Goods or renders Prescribed Services and/or Competing Services or in the course of which Prescribed Goods and/or Competing Goods are sold and/or Prescribed Services or Competing Services are rendered during the Restraint Period; or

 

	 	   6.2.3	Furnish any information or advice (whether oral or written) to any Prescribed Customer or use any other means or take any other action which is directly or indirectly designed, or in the ordinary course of events calculated, to result in any such Prescribed Customer terminating his association with Company and/or transferring his business to or purchasing any Prescribed Goods or Competing Goods or accepting the rendering of any Prescribed Services or Competing Services from any person other than the Company, or attempt to do so.

 

	 	6.3	Solicit orders from Prescribed Customers for the Prescribed Goods and/or any Competing Goods and/or the Prescribed Services and/or any Competing Services; or canvass business in respect of the Prescribed Goods and/or any Competing Goods and/or the Prescribed Services and/or Competing Services from Prescribed Customers; or sell or otherwise supply any Prescribed Goods and/or Competing Goods to any Prescribed Customer; or render any Prescribed Services and/or Competing Services to any Prescribed Customer; or purchase any Prescribed Goods and/or Competing Goods from any Prescribed Supplier or accept the rendering of any Prescribed Services and/or Competing Services from it; or solicit appointment as a distributor, licensee, agent or representative of any Prescribed Supplier in respect of Prescribed Goods and/or Prescribed Services, including on behalf of or for the benefit of a Prescribed Supplier.

 

	 	6.4	Each of the undertakings set out in this Section 6 (including those appearing in a single sub-section) is severable inter alia as to (i)  the nature of interest, act or activity; (ii) the categories of persons falling within the definition of Prescribed Customers; (iii) the categories of goods falling within the definition of the Prescribed Goods and Competing Goods; (iv) the categories of services falling within the definition of the Prescribed Services and Competing Services; and (v) the categories of persons falling within the definition of Prescribed Supplier.

  

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	7.	It is agreed and recorded that, without prejudice to any right or remedy which is available to Company under any law or agreement, the unauthorized disclosure or use of any Confidential Information and Confidential Documents or a breach of my undertakings pursuant to Section 6 above, will cause immediate or irreparable injury to the Company and that the Company cannot be adequately compensated for such injury in monetary damages, then, in order to safeguard the Company from any possible breach of confidentiality, I consent in advance that Company will be permitted to obtain, from any court or tribunal, any temporary or permanent injunctive relief necessary to prevent such unauthorized disclosure or use, or threat of unauthorized disclosure or use.

 

	8.	This Undertaking shall form an integral part of my employment agreement with the Company and a breach of any of my obligations hereunder, shall also constitute a material breach of such employment agreement.

 

	9.	This Undertaking shall be interpreted and construed in accordance with the laws of the State of Israel and the competent courts in Tel-Aviv-Jaffa shall have exclusive jurisdiction for all matters pertaining or relating thereto.

 

	10.	If any condition, term or covenant of this Undertaking shall at any time be held to be void, invalid or unenforceable, such condition, covenant or term shall be construed as severable and such holding shall attach only to such condition, covenant or term and shall not in any way affect or render void, invalid or unenforceable any other condition, covenant or term of this Undertaking, and this Undertaking shall be carried out as if such void, invalid or unenforceable term were not embodied herein.

 

	11.	Unless specifically limited herein, my undertakings hereunder shall be valid: (i) during the term of my employment with the Company, and unless the Company waived such right in writing, following termination of my employment with the Company (and will survive such termination or expiration) without time limitation; (ii) in Israel or outside Israel, and - (iii) whether such undertakings may or may not be registered under any register prescribed by law.

 

	/s/ Assaf Cohen	 	February 27, 2018
	Employee's signature   	 	Date

 

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