Document:

Exhibit 10.2

 

FIRST AMENDING
AGREEMENT DATED AS OF MARCH 31, 2003.

 

                THIS
FIRST AMENDING AGREEMENT is made as of March 31, 2003 among CASCADES INC.,
a corporation incorporated under the laws of the
province of Quebec (“Cascades”), CASCADES BOXBOARD GROUP INC., a corporation
incorporated under the laws of Canada (“Boxboard”), CASCADES SPG HOLDING INC.,
a corporation incorporated under the laws of the State of Delaware (“Cascades
US”), CASCADES BOXBOARD U.S., INC., a corporation incorporated under the laws
of the State of Delaware (“Boxboard US”), CASCADES G.P.S. S.A., a
corporation incorporated under the laws of France (“Cascades Europe”), CASCADES S.A.,
a corporation incorporated under the laws of France (“Boxboard Europe”) and CASCADES
ARNSBERG GMBH, a corporation incorporated under the laws of Germany (“Boxboard
Germany”) (each a “Borrower” and, collectively the “Borrowers”), THE BANK OF
NOVA SCOTIA, a Canadian bank, as administrative agent and collateral agent (in
such capacity, the “Agent”), and the financial institutions parties to the
Credit Agreement referred to below as Lenders.

 

RECITALS

 

A.            Each of the Borrowers, the Agent and the
Lenders is party to a credit agreement dated as of February 5, 2003 (the “Credit Agreement”).

 

B.            The parties wish to amend the Credit Agreement
to provide that Boxboard, Boxboard US and Boxboard Europe will cease to be
“Borrowers” thereunder and also to remove the provisions limiting the amount of
certain obligations of the members of the Boxboard Group.

 

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

 

1.             Interpretation

 

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

 

1.2           Any reference to the Credit Agreement in any Credit Document refers
to the Credit Agreement as amended hereby.

 

 

2.             Amendments to the Credit
Agreement

 

2.1           Each of Boxboard, Boxboard US and
Boxboard Europe is no longer entitled to borrow under the Credit Agreement.
Therefore:

 

(a)           Tranche A
ceases to be available to Boxboard, Tranche B ceases to be available to
Boxboard US and Tranche C ceases to be available to Boxboard Europe,
and the applicable provisions of the Credit Agreement are amended accordingly;
and

 

(b)           Subject
to Section 2.4 hereof, the term Borrowers as used in the Credit Agreement
no longer includes or refers to Boxboard, Boxboard US and Boxboard Europe.

 

2.2           Each of Boxboard and Boxboard US becomes
a Designated Subsidiary, and Schedule ”B” to the Credit Agreement is
amended by adding their name to the List of Designated Subsidiaries.

 

2.3           Sections 2.1(d), 2.5(b) and 10.7(a) of
the Credit Agreement are deleted.

 

2.4           For greater certainty, Section 2.1
hereof is not intended to amend or reduce the scope of the provisions of the
Credit Agreement and of any other Credit Document relating to the obligations
of Boxboard and Boxboard US with respect to Security granted or to be
granted by them for the obligations of the other Borrowers. Accordingly, any
such provision and any Security granted by Boxboard and Boxboard US remain
in full force and effect, notwithstanding that any Security Document may have
been executed by any of them as “Borrower” or that any applicable provision of
any Credit Document makes reference to or describes either of them as a “Borrower”.

 

3.             Liability of the Boxboard Group

 

Boxboard represents and warrants to the Agent
and the Lenders that all notes which were outstanding under the Boxboard
Indenture have been redeemed or repaid. Accordingly, Boxboard confirms that the
provisions of the Security Documents that correspond to Section 10.7(a) of
the Credit Agreement are no longer in effect.

 

4.             Conditions Precedent

 

Prior to or concurrently upon the execution of
this Agreement, each of the Borrowers must have delivered to the Agent a copy
of the documents evidencing the authority of the persons herein acting on
behalf of such Borrower.

 

2

 

5.             Cost and Expenses

 

The Borrowers agree to pay on demand all
reasonable costs and expenses of the Agent in connection with the
preparation, execution, delivery and administration of this Agreement
including, without limitation, the reasonable fees and expenses of counsel for
the Agent.

 

6.             Execution by the Agent

 

This Agreement
is executed by the Agent on behalf of the Lenders. The Agent confirms that all
Lenders have consented to the provision hereof.

 

7.             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 but one and the same agreement.
Delivery of an executed counterpart of a signature page to this
Agreement by telecopier will be effective as delivery of a manually executed
counterpart of this Agreement.

 

8.             Governing Law

 

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

 

9.             Effectiveness

 

This Agreement will be effective as of March 31,
2003, except that for the purposes of Article 15 of the Credit Agreement, Section 2.1
hereof will be deemed to have come into effect as of February 28, 2003.

 

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

 

	
   

  	
   

  	
  CASCADES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
    (s) Laurent Lemaire

  

 

3

 

 

	
   

  	
   

  	
  CASCADES BOXBOARD GROUP INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
    (s)  Laurent Lemaire

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CASCADES SPG HOLDING INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
    (s)  Mario Plourde

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CASCADES BOXBOARD U.S., INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
    (s)  Laurent Lemaire

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CASCADES G.P.S. S.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
    (s)  Mario Plourde

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CASCADES S.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
    (s)  Laurent Lemaire

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CASCADES ARNSBERG GMBH

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
    (s)  Laurent Lemaire

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE BANK OF NOVA SCOTIA, as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
    (s)  Anuj Dhawan

  

 

4Exhibit 10.3

 

 

December 17, 2003

 

	
  TO:

  	
  The Bank of Nova Scotia, as Agent
  and to each

  Lender under the Credit Agreement referred to below

  

 

 

Re:                             Request
for amendment - Definition of Interest Expense

 

Dear Sirs:

 

Reference is made to the Credit Agreement dated as of February 3, 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 (as amended by a first amending
agreement dated March 31, 2003) (the ”Credit Agreement”).

 

We are requesting an amendment to the definition of
Interest Expense in Section 1.1 of the Credit Agreement, so that such definition
may be replaced by the following:

 

““Interest Expense” means, for any period, the aggregate
amount of interest and other financing expenses during such period in each case
determined in accordance with GAAP, but (i) including interest and other
financing charges which have been capitalized, and (ii) excluding
amortization of financing expenses and deferred gains or losses on the
translation of any debt payable in foreign currency.”

 

The effect of this amendment on our Interest Coverage
Ratio as of December 31, 2003 is estimated at 0,1x.  We believe that the amended definition will
reflect more accurately the objective of the ratio to measure the cash flow
capacity to cover the cash interests and is also in line with the definition
established for our joint venture Norampac Inc. 
For your reference, the amortization of deferred financing costs at
present is approximately C$3 million per annum.

 

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

 

Please indicate your consent of this amendment by
signing in the space below, and return to the Agent by 12:00 noon, Thursday, January 15,
2004. Please send your response to the attention of Anuj Dhawan by fax at (416)
866-3329.

 

Upon receipt of the consent of the Majority Lenders,
this amendment will be effective from December 31, 2003.

 

 

Yours very truly,

 

	
  CASCADES INC.

  CASCADES SPG HOLDING INC.

  CASCADES G.P.S. S.A.

  CASCADES ARNSBERG GmbH

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Per:

  	
    (s)  André Belzile

  	
   

  	
   

  
				

 

(Form of
consent on the following pages)

 

2

 

WE AGREE TO THE ABOVE AMENDMENT:

 

 

	
  THE BANK OF NOVA SCOTIA, as

  Lender

  	
   

  	
  NATIONAL BANK OF CANADA,

  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Per:

  	
    (s) David Angel

  	
   

  	
   

  	
  Per:

  	
    (s) Roch Ledoux

  	
   

  
	
   

  	
   

  	
  Per:

  	
    (s)
  Réjean Guévremont

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  CANADIAN IMPERIAL BANK OF

  COMMERCE, as Lender

  	
   

  	
  CIBC INC., as
  designated Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Per:

  	
    (s)
  Mark Chandler, Executive Director

  	
   

  	
   

  	
  Per:

  	
    (s) Geraldine Kerr

  	
   

  
	
  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 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

  	
   

  
	
  Per:

  	
    (s) 
  Robert 

  	
   

  	
   

  	
  Per:

  	
    (s) Cynthia Hansen

  	
   

  
								

 

3

 

	
  SOCIÉTÉ GÉNÉRALE, as

  designated Lender

  	
   

  	
  BANK OF MONTREAL, as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Per:

  	
   

  	
   

  	
   

  	
  Per:

  	
    (s)
  Bruno Jarry

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CAISSE CENTRALE

  DESJARDINS,
  as Lender

  	
   

  	
  THE TORONTO-DOMINION

  BANK, as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Per:

  	
    (s) Pierre Tremblay

  	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
    (s)
  Francine Champoux

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TORONTO-DOMINION (TEXAS)

  INC., as designated
  Lender

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Per:

  	
   

  	
   

  	
   

  	
   

  

 

4

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