Document:

Exhibit 10.4

 

 

January 22,
2004

 

TO:         THE BANK OF NOVA SCOTIA, as Agent

and to each Lender under the Credit Agreement

referred to below:

 

RE:         February 3, 2003 Credit Agreement between Cascades Inc. and the
other parties thereto - Interest Expense

 

Dear Sirs:

 

We are writing further to
our request for amendment dated December 17, 2003 regarding the definition
of Interest Expense.  Firstly, we thank
you for your consent to our request.

 

In addition, we would
like to confirm our interpretation of the calculation of Interest Expense
(under the new definition) for the purposes of the Credit Agreement.  In connection with the closing of our
$500,000,000 credit facility and the US $550,000,000 issuance of notes on February 5,
2003, we paid various upfront and other similar non-recurrent issuer fees which
have been capitalized.  These fees
represented an amount of $24,608,000.

 

We intend to continue to
exclude such fees from the calculation of Interest Expense.  In our view, the expressions “financing
expenses” or “financing charges” are intended to capture financing costs which,
in the strict sense, are not interest but are incurred on an ongoing
basis.  However, these expressions are
not meant in our view to include the non-recurrent upfront or issuer fees
referred to above.

 

Consequently, could you
kindly confirm that you agree with our interpretation that non-recurrent
upfront or issuer fees do not constitute Interest Expense for the purposes of
the Credit Agreement.

 

Please indicate your
agreement by signing a copy of this letter and returning same to the Agent by
5:00 p.m., Friday, February 6, 2004. Please send your response to the
attention of Kim Snyder by fax at (416) 866-3329.

 

	
  Yours very truly,

  	
   

  
	
   

  	
   

  
	
  Cascades
  Inc.

  	
   

  
	
  Cascades
  SPG Holding Inc.

  	
   

  
	
  Cascades G.P.S. S.A.

  	
   

  
	
  Cascades
  Arnsberg GmbH

  	
   

  
	
   

  	
   

  
	
  Per:

  	
  (s) André Belzile

  	
   

  
	
   

  	
  André Belzile

  	
   

  
				

 

 

WE
CONFIRM OUR AGREEMENT WITH THE INTERPRETATION OF INTEREST EXPENSE SET FORTH IN
CASCADES INC.’S JANUARY 22, 2004 LETTER:

 

	
  THE BANK OF NOVA SCOTIA, as

  Lender

  	
   

  	
  NATIONAL BANK OF CANADA,

  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Per:

  	
    (s) David Angel

  	
   

  	
   

  	
  Per:

  	
  (s)
  Jeffrey Forgach

  	
   

  
	
   

  	
   

  	
   

  	
  Assistant
  Vice President

  
	
  Per:

  	
    (s) John
  Santillo

  	
   

  	
   

  	
  Per:

  	
  (s)  Vincent Lima

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Vice
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CANADIAN IMPERIAL BANK OF

  COMMERCE, as Lender

  	
   

  	
  CIBC INC., as
  designated Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Per:

  	
    (s)
  Mark Chandler, Executive Director

  	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
  Per:

  	
    (s)
  Geoff Bond, Managing Director

  	
   

  	
   

  	
   

  	
  Executive Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  CITIBANK, N.A. Canadian Branch,

  as Lender

  	
   

  	
  CITICORP NORTH AMERICA,

  INC., as designated
  Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Per:

  	
    (s)  Isabelle Côté

  	
   

  	
   

  	
  Per:

  	
  (s)  Daniel J. Brill

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  BNP PARIBAS (CANADA), as

  Lender

  	
   

  	
  BNP PARIBAS,
  as designated Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Per:

  	
   

  	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COMERICA BANK,
  as Lender

  	
   

  	
  SOCIÉTÉ GÉNÉRALE (CANADA),

  as Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Per:

  	
    (s)  Monica Lewis

  	
   

  	
   

  	
  Per:

  	
   

  	
   

  
								

 

2

 

	
  SOCIÉTÉ GÉNÉRALE, as

  designated Lender

  	
   

  	
  BANK OF MONTREAL, as Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Per:

  	
   

  	
   

  	
   

  	
  Per:

  	
  (s)  Bruno Jarry

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  CAISSE CENTRALE

  DESJARDINS,
  as Lender

  	
   

  	
  THE TORONTO-DOMINION

  BANK, as Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Per:

  	
  (s)  Pierre Tremblay

  	
   

  	
   

  	
  Per:

  	
  (s) Yves
  Bergeron

  	
   

  
	
  Per:

  	
  (s)  Francine Champoux

  	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TORONTO-DOMINION (TEXAS)

  INC., as designated
  Lender

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Per:

  	
  (s)  Jill Hall

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Per:

  	
  Vice President

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3Exhibit 10.5

 

 

March 26, 2004

 

TO :        The Bank of Nova Scotia,. As Agent and to each

Lender under the Credit
Agreement referred to below

 

Re:         Request for amendment – Interest Coverage Ratio

 

Dear Sirs:

 

Reference is made to the Credit
Agreement dated as of February 5, 2003 among Cascades Inc., Cascades Boxboard
Group Inc., Cascades SPG Holding Inc., Cascades Boxboard U.S. Inc., Cascades
G.P.S. S.A., Cascades S.A., and Cascades Arnsberg GmbH, as Borrowers, The Bank
of Nova Scotia, as Agent and the Lenders from time to time party thereto (such
agreement, as amended by a first amending agreement dated
March 31, 2003 and two letters of agreement dated December 17,
2003 and January 22, 2004, respectively, and as same may be further amended,
supplemented or restated from time to time, is hereinafter referred to as the “Credit Agreement”).

 

We hereby request that Section
14.2 of the Credit Agreement be replaced, as of and from March 31, 2004, with
the following Section:

 

“14.2 Interest
Coverage Ratio

 

Cascades must maintain at all times, on an adjusted consolidated basis,
an Interest Coverage Ratio of not
 less than:

 

-   2.00 : 1 until March 31, 2004;

 

-   1.75 : 1 from April 1, 2004 to September 30,
2004;

 

-   2.00 : 1 from October 1, 2004 to December
31, 2004;

 

-   2.25 : 1 from January 1, 2005 to March 31,
2005;

 

-   2.50 : 1 thereafter.”

 

 

At our annual
review meeting to be held on April 8, 2004, we intend to discuss further
our projections for 2004 and their impact on our Interest Coverage Ratio.

 

Upon execution of this
Agreement, Cascades shall pay to the Agent an amendment fee of 5 basis
points calculated on the aggregate of the total Commitments of the Lenders who
shall have consented in writing to this Agreement on or before 12:00 noon April
22, 2004 (such fee to be distributed so such Lenders pro rata to their total
Commitments).

 

Please indicate your consent to
this amendment by signing in the space below, and kindly return same to the
Agent by 12:00 noon, April 22, 2004. 
Please send your response to the attention of Kim Snyder by fax at (416)
866-3329.

 

Upon receipt of the consent of
the Majority Lenders, this amendment will be effective as of and from March 31,
2004.

 

Yours very truly,

 

CASCADES INC.

CASCADES SPG HOLDING INC.

CASCADES G.P.S. S.A.

CASCADES ARNSBERG GmbH

 

 

	
  Per:

  	
  (s)
  André Belzile

  	
   

  
	
   

  	
    André Belzile

  
	
   

  	
    Vice-President and
  Chief Financial

  
	
   

  	
    Officer

  

 

(Form of
consent on the following pages)

 

2

 

WE
AGREE TO THE ABOVE

 

	
  THE BANK OF NOVA SCOTIA, as

  Lender

  	
   

  	
  NATIONAL
  BANK OF CANADA, as

  Lender

  
	
   

  	
   

  	
   

  
	
  Per:

  	
    (s) David Angel

  	
   

  	
  Per:

  	
    (s) Yvon Laplante

  
	
   

  	
    Director

  	
   

  	
   

  	
    Vice President
  and Manager

  
	
   

  	
   

  	
  Per:

  	
    (s) Jeffrey
  Forgach

  
	
   

  	
   

  	
   

  	
    Assistant Vice
  President

  

 

 

	
  CANADIAN IMPERIAL BANK OF

  COMMERCE, as
  Lender

  	
   

  	
  CIBC
  INC., as designated Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Per:

  	
    (s)  Scott Curtis

  	
   

  	
  Per:

  	
    (s) Geraldine
  Kerr

  
	
   

  	
    Executive Director

  	
   

  	
   

  	
    Executive Director

  
	
   

  	
   

  	
   

  

 

 

	
  CITIBANK, N.A. Canadian Branch,

  as Lender

  	
   

  	
  CITICORP
  NORTH AMERICA, INC.,

  as designated Lender

  
	
   

  	
   

  	
   

  
	
  Per:

  	
    (s) Isabelle
  Côté

  	
   

  	
  Per:

  	
    (s)  Daniel J. Brill

  
	
   

  	
   

  	
   

  	
   

  	
    Managing
  Director

  

 

 

	
  BNP PARIBAS (CANADA), as Lender

  	
   

  	
  BNP
  PARIBAS, as designated Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Per:

  	
    (s) Frank L. Shaw

  	
   

  	
  Per:

  	
    (s) Frank L. Shaw

  
	
  Per:

  	
    (s) Edouard
  Sinor

  	
   

  	
  Per:

  	
    (s) Edouard
  Sinor

  

 

 

	
  COMERICA BANK, as Lender

  	
   

  	
  SOCIÉTÉ
  GÉNÉRALE (CANADA), as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Per:

  	
    (s) Monica Lewis

  	
   

  	
  Per:

  	
    (s) David Daldoni

  
	
   

  	
   

  	
   

  	
   

  	
    (s) Cynthia Hansen

  

 

3

 

	
  SOCIÉTÉ GÉNÉRALE, as designated

  Lender

  	
   

  	
  BANK OF
  MONTREAL, as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Per:

  	
    (s) Maria Jackiccio

  	
   

  	
  Per:

  	
    (s) Bruno Jarry

  
	
   

  	
    Vice President

  	
   

  	
   

  	
    Director

  

 

 

	
  CAISSE CENTRALE DESJARDINS,

  as Lender

  	
   

  	
  THE
  TORONTO-DOMINION BANK,

  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Per:

  	
    (s)
  Pierre Tremblay

  	
   

  	
  Per:

  	
    (s) Yves Bergeron

  
	
  Per:

  	
    (s) Francine Champoux

  	
   

  	
   

  	
   

  

 

 

	
  TORONTO-DOMINION (TEXAS)

  INC., as
  designated Lender

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Per:

  	
    (s) Jill Hall

  	
   

  	
   

  	
   

  
	
   

  	
    Vice President

  	
   

  	
   

  	
   

  

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]