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<br /> MERCER INTERNATIONAL INC.<br /> NOTICE OF ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON MAY 31, 2013<br /> TO THE SHAREHOLDERS OF MERCER INTERNATIONAL INC.<br /> NOTICE IS HEREBY GIVEN that the Annual General Meeting of Shareholders of Mercer International Inc. (the<br /> “Company”) will be held on May 31, 2013 at the Terminal City Club, 837 West Hastings Street, Vancouver,<br /> British Columbia, Canada at 9:00 a.m. (Vancouver time) for the following purposes:<br /> 1. To elect eight directors nominated by the board of directors to serve until the 2014 Annual Meeting of<br /> Shareholders;<br /> 2. To ratify the selection of PricewaterhouseCoopers LLP as the independent auditors;<br /> 3. To conduct a non-binding advisory vote on executive compensation; and<br /> 4. To transact such other business as may properly come before the meeting or any adjournment,<br /> postponement or rescheduling thereof.<br /> The board of directors of the Compan<a title="MERC-20130422-PR-DAS page 1" href="http://viewer.zmags.com/publication/3bddd26c?page=1"> MERCER INTERNATIONAL INC. NOTICE OF ANNUAL MEET</a> <a title="MERC-20130422-PR-DAS page 2" href="http://viewer.zmags.com/publication/3bddd26c?page=2"> PROXY STATEMENT TABLE OF CONTENTS PROXY STATEM</a> <a title="MERC-20130422-PR-DAS page 3" href="http://viewer.zmags.com/publication/3bddd26c?page=3"> Administration, Procedure and Role of th</a> <a title="MERC-20130422-PR-DAS page 4" href="http://viewer.zmags.com/publication/3bddd26c?page=4"> PROXY STATEMENT SUMMARY This summary hi</a> <a title="MERC-20130422-PR-DAS page 5" href="http://viewer.zmags.com/publication/3bddd26c?page=5"> Board Nominees The following table prov</a> <a title="MERC-20130422-PR-DAS page 6" href="http://viewer.zmags.com/publication/3bddd26c?page=6"> Corporate Governance Highlights Board Independen</a> <a title="MERC-20130422-PR-DAS page 7" href="http://viewer.zmags.com/publication/3bddd26c?page=7"> December 31, 2012 2011 </a> <a title="MERC-20130422-PR-DAS page 8" href="http://viewer.zmags.com/publication/3bddd26c?page=8"> Auditors As a matter of governance prac</a> <a title="MERC-20130422-PR-DAS page 9" href="http://viewer.zmags.com/publication/3bddd26c?page=9"> MERCER INTERNATIONAL INC. PROXY STATEMENT GEN</a> <a title="MERC-20130422-PR-DAS page 10" href="http://viewer.zmags.com/publication/3bddd26c?page=10"> COMMONLY ASKED QUESTIONS AND ANSWERS Q: Why a</a> <a title="MERC-20130422-PR-DAS page 11" href="http://viewer.zmags.com/publication/3bddd26c?page=11"> Q: What does it mean if I receive more than one</a> <a title="MERC-20130422-PR-DAS page 12" href="http://viewer.zmags.com/publication/3bddd26c?page=12"> so tendering his or her resignation, will act on </a> <a title="MERC-20130422-PR-DAS page 13" href="http://viewer.zmags.com/publication/3bddd26c?page=13"> PROPOSAL 1—ELECTION OF DIRECTORS In acc</a> <a title="MERC-20130422-PR-DAS page 14" href="http://viewer.zmags.com/publication/3bddd26c?page=14"> on the Toronto Stock Exchange and acquired by Pop</a> <a title="MERC-20130422-PR-DAS page 15" href="http://viewer.zmags.com/publication/3bddd26c?page=15"> Mr. Shepherd is also the former President of Cres</a> <a title="MERC-20130422-PR-DAS page 16" href="http://viewer.zmags.com/publication/3bddd26c?page=16"> the Board whether to accept them. Any director wh</a> <a title="MERC-20130422-PR-DAS page 17" href="http://viewer.zmags.com/publication/3bddd26c?page=17"> CORPORATE GOVERNANCE AND BOARD MATTERS Governanc</a> <a title="MERC-20130422-PR-DAS page 18" href="http://viewer.zmags.com/publication/3bddd26c?page=18"> Board Leadership Structure The Governan</a> <a title="MERC-20130422-PR-DAS page 19" href="http://viewer.zmags.com/publication/3bddd26c?page=19"> · developing and approving agendas and schedul</a> <a title="MERC-20130422-PR-DAS page 20" href="http://viewer.zmags.com/publication/3bddd26c?page=20"> Audit Committee The NASDAQ rules requir</a> <a title="MERC-20130422-PR-DAS page 21" href="http://viewer.zmags.com/publication/3bddd26c?page=21"> Executive Succession Planning. In light of the im</a> <a title="MERC-20130422-PR-DAS page 22" href="http://viewer.zmags.com/publication/3bddd26c?page=22"> Our Director Nominations Process Our Bo</a> <a title="MERC-20130422-PR-DAS page 23" href="http://viewer.zmags.com/publication/3bddd26c?page=23"> · Public company board experience. Directors w</a> <a title="MERC-20130422-PR-DAS page 24" href="http://viewer.zmags.com/publication/3bddd26c?page=24"> Potential Future Changes to Nomination Process </a> <a title="MERC-20130422-PR-DAS page 25" href="http://viewer.zmags.com/publication/3bddd26c?page=25"> Shareholder Communications with Board S</a> <a title="MERC-20130422-PR-DAS page 26" href="http://viewer.zmags.com/publication/3bddd26c?page=26"> As a result, pursuant to our Governance </a> <a title="MERC-20130422-PR-DAS page 27" href="http://viewer.zmags.com/publication/3bddd26c?page=27"> DIRECTORS' COMPENSATION Directors' Compensation </a> <a title="MERC-20130422-PR-DAS page 28" href="http://viewer.zmags.com/publication/3bddd26c?page=28"> Directors' Compensation Table The follo</a> <a title="MERC-20130422-PR-DAS page 29" href="http://viewer.zmags.com/publication/3bddd26c?page=29"> EXECUTIVE OFFICERS The following provid</a> <a title="MERC-20130422-PR-DAS page 30" href="http://viewer.zmags.com/publication/3bddd26c?page=30"> Genevieve Stannus, age 43, has been our </a> <a title="MERC-20130422-PR-DAS page 31" href="http://viewer.zmags.com/publication/3bddd26c?page=31"> SHARES OUTSTANDING AND OWNERSHIP OF CERTAIN BENEF</a> <a title="MERC-20130422-PR-DAS page 32" href="http://viewer.zmags.com/publication/3bddd26c?page=32"> Share Ownership of Directors and Executive Office</a> <a title="MERC-20130422-PR-DAS page 33" href="http://viewer.zmags.com/publication/3bddd26c?page=33"> INFORMATION REGARDING EQUITY COMPENSATION PLANS </a> <a title="MERC-20130422-PR-DAS page 34" href="http://viewer.zmags.com/publication/3bddd26c?page=34"> REPORT OF THE AUDIT COMMITTEE Our Audit</a> <a title="MERC-20130422-PR-DAS page 35" href="http://viewer.zmags.com/publication/3bddd26c?page=35"> COMPENSATION AND HUMAN RESOURCES COMMITTEE INTERL</a> <a title="MERC-20130422-PR-DAS page 36" href="http://viewer.zmags.com/publication/3bddd26c?page=36"> COMPENSATION DISCUSSION AND ANALYSIS Th</a> <a title="MERC-20130422-PR-DAS page 37" href="http://viewer.zmags.com/publication/3bddd26c?page=37"> The following table summarizes selected key finan</a> <a title="MERC-20130422-PR-DAS page 38" href="http://viewer.zmags.com/publication/3bddd26c?page=38"> The Compensation and Human Resources Com</a> <a title="MERC-20130422-PR-DAS page 39" href="http://viewer.zmags.com/publication/3bddd26c?page=39"> Bonus Awards for Fiscal 2012. Based upon</a> <a title="MERC-20130422-PR-DAS page 40" href="http://viewer.zmags.com/publication/3bddd26c?page=40"> To achieve our objectives, we use a mix </a> <a title="MERC-20130422-PR-DAS page 41" href="http://viewer.zmags.com/publication/3bddd26c?page=41"> including salaries and bonuses. These recommendat</a> <a title="MERC-20130422-PR-DAS page 42" href="http://viewer.zmags.com/publication/3bddd26c?page=42"> While we believe it is important to peri</a> <a title="MERC-20130422-PR-DAS page 43" href="http://viewer.zmags.com/publication/3bddd26c?page=43"> govern prior awards thereunder until all such awa</a> <a title="MERC-20130422-PR-DAS page 44" href="http://viewer.zmags.com/publication/3bddd26c?page=44"> VARIABLE PAY AT RISK The percentage of</a> <a title="MERC-20130422-PR-DAS page 45" href="http://viewer.zmags.com/publication/3bddd26c?page=45"> outstanding performance share or performance shar</a> <a title="MERC-20130422-PR-DAS page 46" href="http://viewer.zmags.com/publication/3bddd26c?page=46"> 2012 “Say-on-Pay” Advisory Vote on Executive Comp</a> <a title="MERC-20130422-PR-DAS page 47" href="http://viewer.zmags.com/publication/3bddd26c?page=47"> We believe the fiscal 2012 target total </a> <a title="MERC-20130422-PR-DAS page 48" href="http://viewer.zmags.com/publication/3bddd26c?page=48"> EXECUTIVE COMPENSATION TABLES Summary Compensat</a> <a title="MERC-20130422-PR-DAS page 49" href="http://viewer.zmags.com/publication/3bddd26c?page=49"> were issued to Claes-Inge Isacson as a r</a> <a title="MERC-20130422-PR-DAS page 50" href="http://viewer.zmags.com/publication/3bddd26c?page=50"> Chief Financial Officer, Executive Vice </a> <a title="MERC-20130422-PR-DAS page 51" href="http://viewer.zmags.com/publication/3bddd26c?page=51"> Grant of Plan-Based Awards Table The fo</a> <a title="MERC-20130422-PR-DAS page 52" href="http://viewer.zmags.com/publication/3bddd26c?page=52"> Outstanding Equity Awards at Fiscal Year-End Tabl</a> <a title="MERC-20130422-PR-DAS page 53" href="http://viewer.zmags.com/publication/3bddd26c?page=53"> · 20% is based on individual leadership and st</a> <a title="MERC-20130422-PR-DAS page 54" href="http://viewer.zmags.com/publication/3bddd26c?page=54"> Option Exercises and Stock Vested The f</a> <a title="MERC-20130422-PR-DAS page 55" href="http://viewer.zmags.com/publication/3bddd26c?page=55"> The following table sets forth informati</a> <a title="MERC-20130422-PR-DAS page 56" href="http://viewer.zmags.com/publication/3bddd26c?page=56"> Narrative Discussion on Potential Payments upon T</a> <a title="MERC-20130422-PR-DAS page 57" href="http://viewer.zmags.com/publication/3bddd26c?page=57"> payable for the years (or portions thereof) remai</a> <a title="MERC-20130422-PR-DAS page 58" href="http://viewer.zmags.com/publication/3bddd26c?page=58"> PROPOSAL 2—INDEPENDENT ACCOUNTANTS AND AUDITORS </a> <a title="MERC-20130422-PR-DAS page 59" href="http://viewer.zmags.com/publication/3bddd26c?page=59"> PROPOSAL 3—ADVISORY VOTE ON EXECUTIVE COMPENSATIO</a> <a title="MERC-20130422-PR-DAS page 60" href="http://viewer.zmags.com/publication/3bddd26c?page=60"> FUTURE SHAREHOLDER PROPOSALS Any propos</a> <a title="MERC-20130422-PR-DAS page 61" href="http://viewer.zmags.com/publication/3bddd26c?page=61"> OTHER MATTERS The directors know of no </a>