Document:

Exhibit 4.2

 

EXHIBIT 4.2

 

 

[LETTERHEAD OF RBC ROYAL BANK]

May 30, 2005

Mercer International Inc.

14900 Interurban Avenue South, Suite 282

Seattle, Washington, USA 98168

Attention: Mr. David Gandossi

Dear Sirs:

Re: Filing of Shelf Registration Statement Pursuant to the Registration Rights Agreement (“RRA”)
between Mercer International Inc. (the “Company”) and the Undersigned Dated February 10, 2005

We are writing to confirm our mutual agreement as of May 16, 2005 regarding the above matter. All
capitalized terms in this letter shall have the meanings ascribed to them respectively under the
RRA unless otherwise specified in this letter.

The Company has been proceeding with preparations to file a Shelf Registration Statement on or
before the Filing Deadline, Monday, May 16, 2005. However, as outlined in the letters dated May
11, 2005 and May 13, 2005 from your Canadian counsel, Sangra Moller, to Fasken Martineau DuMoulin,
and subsequent modification of May 17, 2005, we understand the Company was advised by its auditors
that it is necessary to file with the Commission certain financial information concerning the
business acquisition which can be accomplished by use of the financial information regarding Stone
Venepal (Celgar) Pulp Inc., in Bankruptcy, (“SVCPI”) set out in those letters and set forth on
Schedule A hereto (the “SVCPI Supplemental Statements”).

While neither the undersigned Holder, nor KPMG as Vendor under the Purchase Agreement, believe that
they are obligated to provide the SVCPI Supplemental Statements, the Holder agrees with the Company
that it is in their mutual interests to do so for the purposes of assisting the Company in
maintaining its compliance requirements with the Commission. Accordingly, the Holder is prepared
to make arrangements to cause the SVCPI Supplemental Statements to be provided to the Company, and
to consent to an extension of the Filing Deadline, on the terms herein set forth:

1. Provision of Statements:

     The Holder will use commercially reasonable efforts to cause SVCPI’s auditors to provide you
with the SVCPI Supplemental Statements (excluding item (e) on Schedule A which will be provided to
the Company by KPMG Inc.) on an expedited basis, and to cause the SVCPI Supplemental Statements to
be delivered to the Company in the time frames set out on Schedule A hereto and to complete
delivery on or before Wednesday, June 1, 2005 (the “Statement Target Date”) for purposes of filing
with the Commission. The Company will continue to be responsible for any additional review or
compilation of such information required for compliance with the Commission filing requirements,
and will file the SVCPI Supplemental Statements with the Commission on a timely basis as required.

 

 

 - 2 -

2. Incremental Cost:

     The Company will pay to or at the direction of the Holder, without duplication, the reasonable
incremental costs of: (a) SVCPI’s auditors in completing the U.S. GAAP reconciliation contained in
the December 31, 2004 audited financial statements of SVCPI; (b) assisting with the compilation of
the unaudited income statement of SVCPI for the period ending February 13, 2005, including the U.S.
GAAP reconciliation of the 2005 stub period statement; and (c) providing the requested consent
from SVCPI’s auditors for filing with the Commission. The Holders will advise the Company of that
incremental amount, together with reasonable backup data from the auditors, when it is in receipt
of the auditors’ invoice and the Company shall pay such incremental amount forthwith on request.

3. Filing Deadline Extension:

     In view of the need of the Company filing the SVCPI Supplemental Statements to assist in
maintaining its compliance requirements with the Commission and to facilitate review of its
filings, the parties have agreed to extend the Filing Deadline to Wednesday, June 15, 2005 (the
“Extended Filing Deadline”). If the SVCPI Supplemental Statements are not provided to the Company
by the Statement Target Date then the Extended Filing Deadline shall be further extended by the
number of days between the Statement Target Date and the actual date of provision of the SVCPI
Supplemental Statements to the Company. If the SVCPI Supplemental Statements are provided to the
Company by the Statement Target Date and the Company does not file the Shelf Registration Statement
with the Commission on or before the Extended Filing Deadline, the Company shall be deemed to be in
default of its obligations to file on or before the original Filing Deadline and Default Damages
shall be calculated and payable as of and from the original Filing Deadline. If the SVCPI
Supplemental Statements are provided to the Company after the Statement Target Date and the Company
does not file the Shelf Registration Statement by the Extended Filing Deadline (as further extended
as a result of the statement delay) Default Damages shall be calculated and payable as of and from
such Extended Filing Deadline.

4. Effectiveness Deadline:

The parties have agreed that the Effectiveness Deadline under the RRA shall not change, save and
except if the Extended Filing Deadline is further extended due to a delay in provision to the
Company of the SVCPI Supplemental Statements beyond the Statement Target Date, in which case the
Effectiveness Deadline will be similarly extended by the same number of days.

The foregoing arrangements are conditional upon the concurrence by KPMG Inc. as the ‘Holder’ of
certain Transfer Restricted Securities issued pursuant to the Purchase Agreement in respect of
their rights similar to those under the RRA, to be evidenced in a similar letter signed
concurrently herewith. Please confirm acceptance of the foregoing by the Company by signing and
returning the enclosed copy of this letter.

Yours truly,

/s/ W.D. (Doug) Cheyne

Per:

cc:     KPMG Inc.

 

 

 - 3 -

Confirmed and Agreed by:

Mercer International Inc.

Per:

/s/ David M. Gandossi

Dated: May 30, 2005

 

 

SCHEDULE “A”

	 	 	 	 	 
	a.

	 	Audited balance sheet for fiscal 2004
	 	On or about May 27, 2005
	 
	 	 	 	 
	b.

	 	Audited income statement for fiscal 2004
	 	On or about May 27, 2005
	 
	 	 	 	 
	c.

	 	Audited cash flow statement for fiscal 2004
	 	On or about May 27, 2005
	 
	 	 	 	 
	d.

	 	Deloitte & Touche LLP audit report
relating to the financial statements for
fiscal 2004
	 	On or about May 27, 2005
	 
	 	 	 	 
	e.

	 	Unaudited interim income statement for the
six-week period ending February 13, 2005
	 	Management prepared
statements and U.S.
GAAP reconciliation on
or about
June 1, 2005
	 
	 	 	 	 
	f.

	 	Deloitte & Touche LLP consent
	 	On or about May 27,
2005 regarding December
31, 2004 audited
statements.Exhibit 4.3

 

EXHIBIT 4.3

 

 

[LETTERHEAD OF KPMG INC.]

May 27, 2005

Mercer International Inc.

14900 Interurban Avenue South, Suite 282
 

Seattle, Washington, USA 98168
 

Attention: Mr. David Gandossi

Dear Sirs:

Re: Filing of Shelf Registration Statement Pursuant to the Registration Rights Agreement (“RRA”)
between Mercer International Inc. (the “Company”) and the Undersigned Dated November 22, 2004

We are writing to confirm our mutual agreement as of May 16, 2005 regarding the above matter. All
capitalized terms in this letter shall have the meanings ascribed to them respectively under the
RRA unless otherwise specified in this letter.

The Company has been proceeding with preparations to file a Shelf Registration Statement on or
before the Filing Deadline, Monday, May 16, 2005. However, as outlined in the letters dated May
11, 2005 and May 13, 2005 from your Canadian counsel, Sangra Moller, to Fasken Martineau DuMoulin,
and subsequent modification of May 17, 2005, we understand the Company was advised by its auditors
that it is necessary to file with the Commission certain financial information concerning the
business acquisition which can be accomplished by use of the financial information regarding Stone
Venepal (Celgar) Pulp Inc., in Bankruptcy (“SVCPI”), set out in those letters and set forth on
Schedule A hereto (the “SVCPI Supplemental Statements”).

While the undersigned believes that it is not specifically obligated to provide the SVCPI
Supplemental Statements, neither as the Holder, nor as the Vendor under the Purchase Agreement, the
Holder agrees with the Company that it is in their mutual interests to do so for the purposes of
assisting the Company in maintaining its compliance requirements with the Commission. Accordingly,
the Holder is prepared to make arrangements to cause the SVCPI Supplemental Statements to be
provided to the Company, and to consent to an extension of the Filing Deadline, on the terms herein
set forth:

1. Provision of Statements:

     The Holder will use commercially reasonable efforts to cause SVCPI’s auditors to provide you
with the SVCPI Supplemental Statements (excluding item (e) on Schedule A which will be provided to
the Company by us) on an expedited basis, and to cause the SVCPI Supplemental Statements to be
delivered to the Company in the time frames set out on Schedule A hereto and to complete delivery
on or before Wednesday, June 1, 2005 (the “Statement Target Date”) for purposes of filing with the
Commission. The Company will continue to be responsible for any additional review or compilation
of such information required for compliance with the Commission filing requirements, and will file
the SVCPI Supplemental Statements with the Commission on a timely basis as required.

 

 

 - 2 -

2. Incremental Cost:

     The Company will pay to or at the direction of the Holder, without duplication, the reasonable
incremental costs of: (a) SVCPI’s auditors in completing the U.S. GAAP reconciliation contained in
the December 31, 2004 audited financial statements of SVCPI; (b) assisting with the compilation of
the unaudited income statement of SVCPI for the period ending February 13, 2005, including the U.S.
GAAP reconciliation of the 2005 stub period statement; and, (c) providing the requested consent
from SVCPI’s auditors for filing with the Commission. The Holders will advise the Company of that
incremental amount, together with reasonable backup data from the auditors, when it is in receipt
of the auditors’ invoice and the Company shall pay such incremental amount forthwith on request.

3. Filing Deadline Extension:

     In view of the need of the Company filing the SVCPI Supplemental Statements to assist in
maintaining its compliance requirements with the Commission and to facilitate review of its
filings, the parties have agreed to extend the Filing Deadline to Wednesday, June 15, 2005 (the
“Extended Filing Deadline”). If the SVCPI Supplemental Statements are not provided to the Company
by the Statement Target Date then the Extended Filing Deadline shall be further extended by the
number of days between the Statement Target Date and the actual date of provision of the SVCPI
Supplemental Statements to the Company. If the SVCPI Supplemental Statements are provided to the
Company by the Statement Target Date and the Company does not file the Shelf Registration Statement
with the Commission on or before the Extended Filing Deadline, the Company shall be deemed to be in
default of its obligations to file on or before the original Filing Deadline and Default Damages
shall be calculated and payable as of and from the original Filing Deadline. If the SVCPI
Supplemental Statements are provided to the Company after the Statement Target Date and the Company
does not file the Shelf Registration Statement by the Extended Filing Deadline (as further extended
as a result of the statement delay) Default Damages shall be calculated and payable as of and from
such Extended Filing Deadline.

4. Effectiveness Deadline:

The parties have agreed that the Effectiveness Deadline under the RRA shall not change, save and
except if the Extended Filing Deadline is further extended due to a delay in provision to the
Company of the SVCPI Supplemental Statements beyond the Statement Target Date, in which case the
Effectiveness Deadline will be similarly extended by the same number of days.

The foregoing arrangements are conditional upon the concurrence by the Royal Bank of Canada as the
‘Holder’ of certain Transfer Restricted Securities issued pursuant to the Purchase Agreement in
respect of their rights similar to those under the RRA, to be evidenced in a similar letter signed
concurrently herewith. Please confirm acceptance of the foregoing by the Company by signing and
returning the enclosed copy of this letter.

Yours truly,

KPMG Inc., in its capacity as Receiver

of the Assets of Stone Venepal (Celgar) Pulp Inc.

/s/ Todd M. Martin

Senior Vice President

cc:      The Royal Bank of Canada

 

 

 - 3-

Confirmed and Agreed by:

Mercer International Inc.

Per:

/s/ David M. Gandossi

Dated: May 30, 2005

 

 

SCHEDULE “A”

	 	 	 	 	 
	a.

	 	Audited balance sheet for fiscal 2004
	 	On or about May 27, 2005
	 
	 	 	 	 
	b.

	 	Audited income statement for fiscal 2004
	 	On or about May 27, 2005
	 
	 	 	 	 
	c.

	 	Audited cash flow statement for fiscal 2004
	 	On or about May 27, 2005
	 
	 	 	 	 
	d.

	 	Deloitte & Touche LLP audit report
relating to the financial statements for
fiscal 2004
	 	On or about May 27, 2005
	 
	 	 	 	 
	e.

	 	Unaudited interim income statement for the
six-week period ending February 13, 2005
	 	Management prepared
statements and U.S.
GAAP reconciliation on
or about
June 1, 2005
	 
	 	 	 	 
	f.

	 	Deloitte & Touche LLP consent
	 	On or about May 27,
2005 regarding December
31, 2004 audited
statements.

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