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

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 Xxx Xxxxxx by fax at (000) 000-0000.

Yours very truly,
Cascades Inc.
Cascades SPG Holding Inc.
Cascades G.P.S. S.A.
Cascades Arnsberg GmbH
Per:	(s) Xxxxx Xxxxxxx
	Xxxxx Xxxxxxx

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) Xxxxx Xxxxx				Per:	(s) Xxxxxxx Xxxxxxx
						Assistant Vice President
Per:	(s) Xxxx Xxxxxxxx				Per:	(s)  Xxxxxxx Xxxx
						Vice President
CANADIAN IMPERIAL BANK OF COMMERCE, as Lender					CIBC INC., as designated Lender
Per:	(s) Xxxx Xxxxxxxx, Executive Director				Per:
Per:	(s) Xxxxx Xxxx, Managing Director					Executive Director
CITIBANK, N.A. Canadian Branch, as Lender					CITICORP NORTH AMERICA, INC., as designated Lender
Per:	(s)  Xxxxxxxx Xxxx				Per:	(s)  Xxxxxx X. Xxxxx
						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)  Xxxxxx Xxxxx				Per:

2

SOCIÉTÉ GÉNÉRALE, as designated Lender				BANK OF MONTREAL, as Lender
Per:				Per:	(s)  Xxxxx Xxxxx
					Director
CAISSE CENTRALE XXXXXXXXXX, as Lender				THE TORONTO-DOMINION BANK, as Lender
Per:	(s)  Xxxxxx Xxxxxxxx			Per:	(s) Xxxx Xxxxxxxx
Per:	(s)  Xxxxxxxx Xxxxxxxx			Per:
TORONTO-DOMINION (TEXAS) INC., as designated Lender
Per:	(s)  Xxxx Xxxx
Per:	Vice President

3