10-K405

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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

(Mark One)

ý
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year (fifty-two weeks) ended December 29, 2001

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                              to                             

Commission File Number 0-8514

LIQUI-BOX CORPORATION
(Exact name of registrant as specified in its charter)

OHIO (State or other jurisdiction of incorporation)	31-0628033 (I.R.S. Employer Identification No.)
6950 Worthington-Galena Road, Worthington, Ohio (Address of principal executive offices)	43085 (Zip Code)

Registrant's telephone number, including area code (614) 888-9280

Securities registered pursuant to Section 12(b) of the Act: NONE

Securities registered pursuant to Section 12(g) of the Act:

Common Shares, No Par Value

(Title of Class)

        Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

        Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ý

        Based upon the closing price reported on The NASDAQ National Market on March 22, 2002, the aggregate market value of the voting stock held by non-affiliates of the Registrant was $128,625,052. The number of common shares outstanding at March 22, 2002 was 4,168,380.

PART I

Item 1. Business.

General Development of Business—Liqui-Box Corporation, including its subsidiaries ("Liqui-Box" or the "Company"), is one of the largest companies in the world specializing in the research, development and manufacture of bag-in-box flexible liquid packaging systems. The Company was incorporated in January, 1962 in the State of Ohio. Its principal offices are located at 6950 Worthington-Galena Road, Worthington, Ohio.

        Liqui-Box is a major producer of bag-in-box flexible packaging and related filling equipment systems for the beverage, processed foods, dairy, wine and other specialty products industries. The Company is also the leading supplier of containers and dispensing systems to the bottled water industry.

        The Company and its subsidiaries operate 11 manufacturing plants in the United States, Europe and India. Through licensees, a direct sales force and independent agents, the Company serves markets in many countries worldwide.

Description of Principal Products—The principal product of the Company is plastic packaging. Such packaging includes specialty plastic bags and plastic blow molded containers; injection molded plastic products used in liquid packaging and a variety of industrial and commercial plastic packaging films. In addition, the Company manufactures equipment for filling such packaging products (approximately 5% of total net sales). These products are marketed nationwide primarily to the edible products industries principally through a direct sales force. These products are also marketed internationally through a direct sales force, licensees, independent agents and the Company's own export operations.

Competition—The plastic packaging market is large and highly fragmented. There are numerous competitors and the major market in which the Company sells its products is very competitive. These products are in competition with similar products produced by other manufacturers, and in some instances, with products produced by other industries from other raw materials.

        The plastic packaging industry is, therefore, highly price competitive. A substantial number of manufacturers compete in the national and international markets. None are considered to be dominant. According to information in the public domain, the Company supplies less than one percent of the total plastic packaging market in the United States.

        While the Company's product and customer mix is generally diverse, The Perrier Group of America ("Perrier") constitutes a buying group of customers that is a material part of the Company's business to the extent that loss of this buying group, with which the Company has a good relationship, would have a material adverse effect on the Company's business. The risk associated with such a potential loss is partially mitigated by a 3-year supply agreement between the Company and Perrier for an amount, which would approximate 84% of the Company's sales to Perrier in the year 2001. This agreement, which was negotiated in 2000, expires on December 31, 2003. Sales to this customer constituted 18%, 21% and 22% of total sales in 2001, 2000 and 1999, respectively. However, due to the lower margins on this segment, the percent that this represents of the total margin of the Company was noticeably less than the percentage of sales.

Research and Development—The Company emphasizes applied research and development as a vital aspect of meeting the needs of its customers for plastic packaging. Thus, the Company's research activities focus on the development of new plastic packaging products and packaging systems to increase quality, improve production efficiency and/or reduce costs to its customers and to the ultimate consumer. The Company also devotes significant efforts to the research, development and improvement of plastic packaging machinery and equipment for use by its customers and in its own production operations.

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        Research and development expenditures in 2001, 2000 and 1999 were $1,519,000, $1,559,000 and $1,436,000, respectively. All such activities were entirely Company-funded from operations. It should also be noted that the funding levels only represent costs directly charged to research and development. The amounts do not represent the commitment and work of all employees of the Company to improving existing products and processes and to developing new products and processes. Many employees who are not part of the research and development organization of the Company spend part of their efforts on developing new products and processes.

        Information on research and development can also be found in Item 7, Management's Discussion and Analysis.

Patents and Licenses—The Company holds and maintains patents for packaging design, fitments and packaging equipment which are used by the Company in its production and which are also licensed to other manufacturers. Revenues from royalties from these patent licenses are not material to the total revenues of the Company.

Environment—Consumer recognition of environmental friendliness of liquid plastic packaging systems is growing. Compared to a conventional 5-gallon plastic pail, the 5-gallon plastic bag-in-box reduces total plastic use by 90 percent. An empty, collapsed 5-gallon bag requires a small fraction of the disposal space required by a comparable number of No. 10 cans, five wide-mouth one gallon jars or one 5-gallon pail. The corrugated box used to transport and store packaged liquids is completely recyclable. The Company utilizes proper recycling codes on all of its products for quick identification in community recycling programs.

        The bag-in-box design is increasingly seen as a major part of the solution to the problem of environmental waste, storage and disposal. In addition, the Company has asked its suppliers to experiment in the use of reprocessed material in the products furnished to the Company and several promising applications are being actively explored. The Company also has committed to zero scrap in the waste stream of its plant operations through sorting and recycling for use in shipping bags and other non-food applications. This commitment represents the elimination of more than one million pounds of waste annually.

        As a significant player in the solution to societal environmental problems, the Company supports such conscientiousness and is not aware of any federal, state or local statutory or regulatory provisions concerning environmental protection or the discharge of materials into the environment that has a material adverse effect on the capital expenditures, sales, earnings or competitive position of the Company in the future.

Raw Materials—The primary raw material essential to the Company's business is plastic resin. There are a number of suppliers for this material and the market is highly competitive. The Company believes that its sources of supply of resin are adequate for its needs in the foreseeable future.

Seasonality of Business—The demand for some applications of plastic packaging products is seasonal in nature. A mild summer, for example, can reduce the Company's sales to the beverage industry. However, experience over the years has shown that these variations generally offset each other and tend to level the total demand for the Company's products throughout the year. As a result, the Company usually experiences only minor variations in sales volume attributable to seasonal demands.

Backlog of Orders—Sales of the Company's packaging products generally are closely coordinated with the product production of its customers. Typically, orders are filled within 30 days. Therefore, the backlog of orders is not significant.

Employees—The Company employed 684 individuals in its operations throughout the United States, Europe, Hong Kong and India as of December 29, 2001. Approximately 2% of these employees are members of collective bargaining units. The Company considers itself an industry leader in participative management of its human resources, placing a premium value on innovation, creativity

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and attentiveness to solving customers' problems in packaging. Accordingly, the Company believes its relations with its employees to be an asset.

Foreign Operations and Sales—The Company's foreign operations constituted 13% and 12% of consolidated net sales, less than 1% of consolidated income before taxes and 24% and 22% of consolidated identifiable assets as of and for the fiscal years ended December 29, 2001 and December 30, 2000, respectively. Further information regarding the Company's foreign operations can be found in Item 14(a)(1), Note 9, "Segment Information," of the Notes to Consolidated Financial Statements.

Recent Developments—On March 25, 2002, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Enhance Packaging Technologies Inc., a Canadian corporation ("Enhance") and a wholly-owned subsidiary of DuPont Canada Inc., a Canadian corporation, and EPT Newco, Inc., an Ohio corporation and a wholly-owned subsidiary of Enhance ("EPT"). Under the Merger Agreement, Enhance has agreed to acquire all of the issued and outstanding common shares of the Company pursuant to a cash merger transaction for US$67.00 per share, for a total purchase price of approximately US$333 million (the "Merger"). At the effective time of the Merger, EPT will be merged with and into the Company, which will be the surviving corporation in the Merger and will become a wholly-owned subsidiary of Enhance. Consummation of the Merger is subject to various conditions, including, among others, (i) adoption of the Merger Agreement and approval of the Merger by the shareholders of the Company; (ii) compliance with regulatory requirements; and (iii) no more than 10% of the outstanding common shares of the Company may be held by shareholders who object to the Merger and comply with Ohio dissenting shareholder statutes.

        Unless otherwise agreed to in writing by the Company and Enhance, the closing of the Merger is scheduled to occur on the second business day following the satisfaction or waiver of all conditions to the obligations of the parties to consummate the transactions contemplated by the Merger Agreement, including adoption of the Merger Agreement and approval of the Merger by shareholders of the Company.

        In connection with the Merger Agreement, Samuel B. Davis, Chairman of the Board, Chief Executive Officer, Treasurer and principal shareholder of the Company, and Samuel N. Davis, Vice Chairman and Secretary of the Company, each entered into a Shareholders Agreement dated March 25, 2002 with Enhance (the "Shareholders Agreement"). Under the Shareholders Agreement, Messrs. Davis and Davis have granted to Enhance or EPT an irrevocable option to purchase (i) all of the common shares of the Company held by them at a cash price of US$67.00 per share and (ii) all of the options to purchase common shares of the Company held by them at a cash price equal to the excess of US$67.00 per share over the applicable exercise price per share. In addition, Messrs. Davis and Davis have agreed that, among other things, at any meeting of Liqui-Box shareholders held during the term of the Shareholders Agreement to consider the Merger, each of them will vote all common shares of the Company which he then has the right to vote in favor of the Merger.

        Also Messrs. Davis and Davis each have entered into a noncompetition and nonsolicitation agreement with the Company for additional consideration in connection with the execution of the Merger Agreement.

        The proposed merger transaction with Enhance was first publicly-announced by the Company in a press release dated March 25, 2002. Copies of the press release, the Merger Agreement, the Shareholders Agreement and the non-competition and non-solicitation agreements described above are included as exhibits to this filing, and the foregoing description is qualified in its entirety by reference to the texts of such exhibits.

        In connection with the above-described transactions, the Company intends to file a proxy statement and other materials with the Securities and Exchange Commission. Shareholders of the Company are urged to read the proxy statement and these other materials when they become available

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because they will contain important information. Shareholders may obtain a free copy of the proxy statement and these other materials when they become available, as well as other materials filed with the Securities and Exchange Commission concerning the Company, at the Securities and Exchange Commission's web site at http://www.sec.gov. Shareholders of the Company also may obtain for free the proxy statement and other documents filed by the Company with the Securities and Exchange Commission in connection with the above-described transactions by directing a request to Liqui-Box Corporation at 6950 Worthington-Galena Road, Worthington, Ohio 43085, Attention: President.

        The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies from shareholders with respect to the Merger. Information regarding these directors and executive officers and their ownership of common shares of the Company is contained herein. Additional information regarding directors and executive officers of the Company and their interests will be included in the proxy statement.

Item 2. Properties.

        At December 29, 2001, the Company owned or leased property at sixteen (16) locations for manufacturing and offices with a total of approximately 603,000 square feet of floor space. The following table summarizes the properties owned or leased by the Company:

Use and Location:		Approximate Floor Space (Sq.Ft.)	Owned or Leased	Expiration Date of Lease
Executive offices, research and manufacturing:
	Worthington, Ohio	63,000	Owned	N/A
Manufacturing:
	Ashland, Ohio	48,000	Owned	N/A
	Ashland, Ohio	15,000	Leased	2003
	Houston, Texas	35,000	Leased	2005
	Elkton, Maryland	40,000	Leased	2015
	Auburn, Massachusetts	30,000	Owned	N/A
	Ontario, California	60,000	Leased	2003
	Upper Sandusky, Ohio	76,000	Owned	N/A
	Lake Wales, Florida	8,000	Owned	N/A
	Lake Wales, Florida	12,000	Owned	N/A
	Sacramento, California	74,000	Leased	2007
	Sacramento, California	10,000	Leased	2002
	Allentown, Pennsylvania	40,000	Leased	2006
	Romiley, England	53,000	Leased	2006
	Romiley, England	12,000	Leased	2006
	Pune-Maharashtra, India	27,000	Leased	2003

        The Company believes that its properties, plant and equipment are all in good operating condition and are adequate for its expected needs. Certain of the leases contain renewal options, which the Company expects to exercise to maintain its operations at the facilities.

Item 3. Legal Proceedings

        At December 29, 2001 the Company has no pending legal proceedings which it deems to be material to its business.

Item 4. Submission of Matters to a Vote of Security Holders

        Not applicable.

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PART II

Item 5. Market for Registrant's Common Equity and Related Stockholder Matters

        The reported low and high closing prices on the NASDAQ National Market as reported by the National Quotation Bureau, Inc. and cash dividends per share were as follows:

	2001						2000
	Low		High		Cash Dividends Per Share		Low		High		Cash Dividends Per Share
First Quarter	$	36.38	$	43.37	$	0.20	$	44.13	$	52.50	$	0.20
Second Quarter	$	36.51	$	45.20	$	0.20	$	44.00	$	51.50	$	0.20
Third Quarter	$	38.10	$	44.99	$	0.20	$	31.63	$	53.00	$	0.20
Fourth Quarter	$	38.97	$	45.39	$	0.20	$	32.38	$	40.13	$	0.20

        As of December 29, 2001, there were 572 holders of record of common shares.

        Credit facility covenants restrict cash dividends to 50% of net income.

Item 6. Selected Financial Data

        For the Five Fiscal Years Ended December 29, 2001 (In thousands of dollars, except for per share data)

Selected Income Statement Data		2001			2000			1999			1998			1997(1)
Net Sales		$	145,219		$	157,124		$	167,201		$	154,656		$	154,145
Income Before Taxes		$	22,786		$	27,153		$	31,649		$	28,838		$	26,115
Net Income		$	13,463		$	16,427		$	19,134		$	17,043		$	15,646
Net Income as a % of Net Sales			9.3	%		10.5	%		11.4	%		11.0	%		10.2	%
Return on Stockholders' Equity			17.1	%		21.5	%		27.5	%		24.7	%		19.9	%
Earnings Per Share
	Basic	$	3.13		$	3.71		$	4.20		$	3.62		$	2.77
	Diluted	$	3.01		$	3.55		$	4.00		$	3.45		$	2.72
Selected Balance Sheet Data
Total Assets		$	92,255		$	96,174		$	94,890		$	92,074		$	97,442
Long-term Obligations			—			—			—			—			—
Cash Dividends Per Share		$	0.80		$	0.80		$	0.76		$	0.66		$	0.52
Book Value Per Share		$	18.93		$	18.13		$	16.30		$	14.14		$	14.06
Market Price at Fiscal Year-end		$	41.93		$	37.25		$	49.50		$	52.00		$	39.06

(1)

Includes 53 weeks

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation

Results of Operations

2001 Compared to 2000

        During 2001, the Company experienced an 8% decrease in net sales dollars on a 3% decrease in unit sales compared to 2000. This reduction can be attributed to the prolonged downturn in the economy.

        Gross margin, as a percentage of net sales, was 32.9% in 2001 and 34.4% in 2000. The decrease in gross margin is the result of the general economic conditions coupled with increases in the cost of raw materials, which the Company has not been able to pass on to its customers in a timely manner.

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        Selling, administrative and development expenses in 2001 were $24,932,000 compared to $27,074,000 in 2000, a decrease of $2,142,000. The planned decrease is due to the Company continuing to reduce costs to a level that the current state of the economy will support and a decrease in the Company's Profit Participation Plan costs.

        Research and development costs were $1,519,000 in 2001 and $1,559,000 in 2000, a decrease of $40,000. These amounts include direct costs associated with research and development only. Many of the Company's employees are involved in the process of developing new products and processes along with other duties and these costs are not included in the above figures.

        Income before taxes as a percentage of net sales was 15.7% in 2001 as compared to 17.3% in 2000. The decrease was due to the decrease in the gross margin, partially offset by the decrease in selling, administrative and development expenses.

        The provision for income taxes was 40.9% and 39.5% of before tax income in 2001 and 2000, respectively. Net income decreased by 18.0% to $13,463,000 compared to $16,427,000 in 2000, primarily due to the sales decrease.

        At the end of 2001 and 2000 the Company had no significant backlog of orders, which is industry typical.

2000 Compared to 1999

        During 2000, the Company experienced a 6% decrease in net sales dollars on a 5% decrease in unit sales compared to 1999. The decrease in sales dollars and units is attributed to a generally down year in certain customer segments of the bottled water market.

        Gross margin, as a percentage of net sales, was 34.4% in 2000 and 36.8% in 1999. The decrease in gross margin is attributable to increased raw material prices that have not been passed on to our customers.

        Selling, administrative and development expenses in 2000 were $27,074,000 compared to $29,908,000 in 1999, a decrease of $2,834,000. The decrease is primarily due to a favorable settlement of certain contingencies and a reduction in Profit Participation Plan cost partly offset by an increase in research and development costs.

        Research and development costs were $1,559,000 in 2000 and $1,436,000 in 1999, an increase of $123,000. The 2000 costs included significant costs associated with improvements of existing products, as well as the development of new generation products. These amounts include direct costs associated with research and development only. Many of the Company's employees are involved in the process of developing new products and processes along with other duties and these costs are not included in the above figures.

        Net income decreased by 14% to $16,427,000 compared to $19,134,000 in 1999. The provision for income taxes was 39.5% of before tax income in both 2000 and 1999.

        At the end of 2001 and 2000 the Company had no significant backlog of orders, which is industry typical.

Liquidity and Capital Resources

        Total working capital at year-end was $27,779,000, $31,958,000 and $30,249,000 in 2001, 2000 and 1999, respectively. The decrease was primarily due to the increase of share repurchases of the Company's stock which totaled $12,256,000 in 2001. The ratio of current assets to current liabilities was 3.0 to 1 in 2001, 3.0 to 1 in 2000 and 2.5 to 1 in 1999. Net cash provided from operations was $21,426,000 for 2001 compared to $20,642,000 in 2000 and $25,247,000 in 1999. The increase in cash provided in 2001 was the result of changes in operating assets and liabilities, which was offset by the

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decrease in net income. Net cash used in investing activities was $10,378,000 for 2001 compared to $9,833,000 in 2000 and $3,540,000 in 1999. The cash used in investing activities was primarily for purchases of new plant equipment and improvements to existing property and plant equipment. Cash used in financing activities was $14,298,000 for 2001 compared to $8,327,000 in 2000 and $18,542,000 in 1999. The cash used in financing activities was primarily for the repurchase of outstanding shares and payment of cash dividends, offset by exercise of stock options.

        The Company's major commitments for capital expenditures as of December 29, 2001 were, as they have been in the past, primarily for increased capacity at existing locations, building filler machines for lease and tooling for new products. Funds required to fulfill these commitments are expected to be provided by operations with any additional funding needed coming from credit facilities that aggregate $30,000,000 with The Huntington National Bank. No amounts were outstanding under these credit facilities as of December 29, 2001. The Company's foreign subsidiaries have secured credit facilities. The amounts outstanding under these facilities totaled $5,084,000 at December 29, 2001.

        Longer-term cash requirements, other than those related to normal operating expenses, are needed for financing anticipated growth; increasing capacity at existing plants; development of new products and enhancement of existing products; dividend payments and possible continued repurchase of the Company's common shares. The Company believes that its existing cash and cash equivalents, available credit facilities and anticipated cash generated from operations will be sufficient to satisfy its currently anticipated cash requirements for fiscal year 2002.

        There have been no significant changes in the Company's capitalization during the past three years except for the repurchase of and the issuance of treasury shares. The common shares were bought at a price considered fair by management and there was cash available for these purchases. The Company felt the purchases represented a good investment and would secure common shares for issuance under the Company's employee benefit plans. All significant financing arrangements of the Company are reported in the financial statements.

        Management feels that inflation did not have a material effect on the Company during 2001, 2000 or 1999. The Company has the ability to adjust prices as the cost of resin changes; however, there is generally a time lag between when the Company incurs a change in resin cost and when that change is passed on to a customer.

Significant Accounting Policies

        See the Company's significant accounting policies disclosed in Item 14(a)(1), Note 1, "Accounting Policies" of the Notes to Consolidated Statements.

Effect of New European Currency

        During January 2002, all Economic and Monetary Union ("EMU") countries began operating with the Euro as their single currency. Uncertainty exists as to the effect the Euro currency will have on the marketplace. The Company has not become aware of any negative impact on the Company resulting from the EMU formation and Euro implementation.

Comprehensive Income

        Comprehensive income is based on revenues, expenses, gains and losses, which, under generally accepted accounting principles, are excluded from net income and reflected as a component of equity, such as currency translation and unrealized gain or loss on securities adjustments. Comprehensive income, net of tax, was $13,270,000, $15,480,000 and $18,545,000 in 2001, 2000 and 1999, respectively. Comprehensive income is derived from net income, the change in foreign currency translation and the change in the value of marketable securities held for investment.

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New Accounting Standards

        In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards No. 133 (SFAS 133), "Accounting for Derivative Instruments and Hedging Activities". The statement establishes accounting and reporting standards requiring that all derivative instruments (including certain derivative instruments imbedded in other contracts) be recorded in the balance sheet as either an asset or a liability measured at its fair market value. The Company adopted this statement effective December 31, 2000. The statement requires that changes in the derivative's fair market value be recognized currently in earnings unless specific hedge accounting criteria are met. The accounting provision for qualifying hedges allow a derivative's gains and losses to offset related results on the hedged item in the income statement, and requires that the Company formally document, designate and assess the effectiveness of transactions that qualify for hedge accounting. The adoption of this statement did not have a material effect on the consolidated financial statements of the Company.

        In July 2001, the FASB issued Statement of Financial Accounting Standards No. 141 ("SFAS 141"), "Business Combinations". SFAS 141 requires the purchase method of accounting for business combinations initiated after June 30, 2001 and eliminates the pooling-of-interests method. The Company has determined that the adoption of SFAS 141 has no impact on its consolidated financial statements.

        In July 2001, the FASB issued Statement of Financial Accounting Standards No. 142 ("SFAS 142"), "Goodwill and Other Intangible Assets", which became effective January 1, 2002. SFAS 142 requires, among other things, the discontinuance of goodwill amortization. In addition, SFAS 142 includes provisions for the reclassification of certain existing recognized intangibles as goodwill, reassessment of the useful lives of existing recognized intangibles, reclassification of certain intangibles out of previously reported goodwill and the identification of reporting units for purposes of assessing potential future impairments of goodwill. SFAS 142 also requires the Company to complete a transitional goodwill impairment test within six months from the date of adoption. The Company has not determined the impact that SFAS 142 will have on its consolidated financial statements.

        In August 2001, the FASB issued Statement of Financial Accounting Standards No. 144 ("SFAS 144), "Accounting for Impairment or Disposal of Long-Lived Assets," which became effective December 30, 2001 (Fiscal Year 2002). While this statement supersedes SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets to Be Disposed Of", it retains the fundamental provisions of SFAS No. 121 for recognition and impairments of assets to be held and used, and assets to be disposed of by sale. The Company has not determined the impact, if any, that SFAS 144 will have on its consolidated financial statements.

Forward-Looking Statements

        The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements made by or on behalf of the Company. The Company and its representatives may from time to time make written or verbal forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and in its reports to shareholders. All such statements which are not historical fact are forward-looking statements based upon the Company's then current plans and strategies, and reflect the Company's then current assessment of the risks and uncertainties related to its business, including such things as product demand and market acceptance; the economic and business environment and the impact of governmental regulations, both in the United States and abroad; the effects of competitive products and pricing pressures; the impact of fluctuations in foreign currency exchange rates and the implementation of the Euro; capacity; efficiency and supply constraints; weather conditions; and other risks detailed in the Company's press releases, shareholder communications and Securities and Exchange Commission filings. It is not possible to identify or forsee all such risks and uncertainties, and the foregoing should not be considered an exhaustive statement of all risks and uncertainties relating to such forward looking statements. Actual

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events affecting the Company and the impact of such events on the Company's operations may vary from those currently anticipated. The Company is not obligated to update or revise forward-looking statements relating to the Company to reflect new events or circumstances.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

        The Company, in the normal course of business, is exposed to market risks associated with foreign currency exchange rates, fluctuations in the market value of equity securities available for sale, and changes in interest rates. The Company is also exposed to changes in the price of commodities used in its manufacturing operations. However, commodity price risk is not material as price changes are customarily passed along to the customer.

Foreign Currency Exchange Risk

        In 2001 and 2000, foreign operations accounted for approximately 13% and 12%, respectively, of the Company's consolidated net sales. As a result, there is exposure to foreign currency exchange risk on transactions that are denominated in a currency other than the business unit's functional currency. The Company maintains assets and liabilities with financial institutions in various foreign currencies to hedge transactions that are to be settled in the business unit's functional currency. For further information with respect to foreign currency exchanges, reference is made in Item 14(a)(1), Note 1—Foreign Currency Translation of Notes to the Consolidated Financial Statements. The Company's hedging activities provide only limited protection against currency exchange risks; however, a hypothetical 10% foreign exchange fluctuation would not materially impact the Company's operating results or cash flow.

Marketable Securities Risk

        The Company maintains a portfolio of marketable equity securities available for sale. The fair market value of these securities at December 29, 2001 was approximately $1,137,000 with the corresponding unrealized gain included as a component of stockholders' equity. A hypothetical 10% decrease in the quoted market price of marketable securities would not materially impact operating results or cash flow.

Interest Rate Risk

        The interest payable for the Company's credit facilities is affected by changes in market interest rates. During 2001, the Company's credit facilities interest rates varied between 5.0% to 6.75%. At December 29, 2001, the outstanding balance was $5,084,000. Therefore, a hypothetical 10% fluctuation would not materially impact the Company's operating results or cash flow.

Item 8. Financial Statements and Supplementary Data

        The Financial Statements and Supplementary Data of the Company are listed and included under Item 14.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

        None

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PART III

Item 10. Directors and Executive Officers of the Registrant

Directors of the Registrant

        The names, ages and positions of all of the directors of the Company are listed below along with their business experience during the past five years. The directors are elected for two-year terms. There are no arrangements or understandings between any executive officer and any other person pursuant to which the executive officer was selected.

Name	Age	Positions with Liqui-Box, Principal Occupation and Other Directorships	Director of Liqui-Box Since
Samuel B. Davis(1)	60	Chairman, Chief Executive Officer and Treasurer of Liqui-Box	1977
Samuel N. Davis(1)	37	Vice Chairman and Secretary of Liqui-Box	1997
Carl J. Aschinger, Jr.	63	Chairman and Chief Executive Officer of The Columbus Showcase Company, a manufacturer of retail showcases in Columbus, Ohio	1985
Charles R. Coate	60	Vice President of WesBanco Financial Services, Columbus, Ohio	1995
Russell M. Gertmenian	54	Partner of Vorys, Sater, Seymour and Pease LLP, a law firm; Director of AirNet Systems, Inc., a national courier system; Director of Abercrombie & Fitch Co., a clothing retailer	1995
John Trostheim	56	President of ABB Industrial Systems, Inc., Automation Products Group, an engineering firm in Cleveland, Ohio	2000
Robert L. Zieg	68	Assistant General Counsel, Battelle Memorial Institute, a research, development and commercialization of technology firm in Columbus, Ohio	2000

(1)

Named executive officers

        Samuel B. Davis has been Chairman of the Board, Chief Executive Officer and Treasurer since August, 1982. Mr. Davis was President of the Company from September, 1991 to December, 1997.

        Samuel B. Davis is the father of Samuel N. Davis

        Samuel N. Davis became Vice Chairman and Secretary of Liqui-Box in October of 2000. He was Vice President, Development and an executive officer of the Company from April, 1996 to October, 2000.

        Charles R. Coate was Vice President of Fifth Third Bank until June 1999. He has been Vice President of Wheeling National Bank since June 2000. WesBaco Financial Services acquired Wheeling National Bank in March, 2002.

        Russell M. Gertmenian is a partner in the law firm of Vorys, Sater, Seymour and Pease LLP, which rendered legal services to Liqui-Box during the 2001 fiscal year and continues to render legal services to Liqui-Box during the 2002 fiscal year.

Executive Officers of the Registrant

        The names, ages and positions of all of the executive officers of the Company are listed below along with their business experience during the past five years. Generally, executive officers are appointed annually by the Board of Directors at the annual meeting of directors immediately following the annual meeting of shareholders or the Executive Committee of the Board of Directors. There are

11

no arrangements or understandings between any executive officer and any other person pursuant to which the executive officer was selected.

Name	Age	Title
Samuel B. Davis(1)	60	Chairman of the Board, Chief Executive Officer, Treasurer and Director
Samuel N. Davis(1)	37	Vice Chairman of the Board, Secretary and Director
Stewart M. Graves(2)	51	Chief Operating Officer and President

(1)

See preceding table for the Directors of the Company for more information.

(2)

Stewart M. Graves became President and Chief Operating Officer of Liqui-Box in October, 2000. He was Vice President, International of the Company from August, 1996 until October, 2000.

Item 11. Executive Compensation

SUMMARY COMPENSATION TABLE

        The following table summarizes compensation awarded or paid to, or earned by, the Company's CEO and the other three most highly compensated executive officers of the Company during each of the last three fiscal years:

						Long-Term Compensation Awards
Name and Principal Position		Annual Compensation (1)
						Securities Underlying Options(#)		All Other Compensation
	Year	Salary($)		Bonus($)
Samuel B. Davis, Chairman, Chief Executive Officer and Treasurer	2001 2000 1999	$ $ $	70,000 70,000 70,000	$ $ $	1,003,304 1,103,141 1,251,507	50,000 50,000 2,325	(2) (2) (4)	$ $ $	19,602 12,557 16,970	(3)
Samuel N. Davis, Vice Chairman and Secretary	2001 2000 1999	$ $ $	18,550 51,000 51,000	$ $ $	249,477 173,451 202,672	50,000 50,000 376	(2) (2) (4)	$ $ $	13,608 8,807 13,220	(3)
Stewart M. Graves, President and Chief Operating Officer(5)	2001 2000 1999	$ $ $	26,500 42,000 42,000	$ $ $	360,974 211,665 173,319	50,000 50,000 0	(2) (2)	$ $ $	5,442 19,243 23,044	(3)
C. William McBee(6)	2001 2000 1999	$ $ $	160,000 70,000 70,000	$ $ $	0 321,866 422,734	0 0 863	(4)	$ $ $	0 12,807 16,384

(1)

Other annual compensation excluded from this table does not exceed the lesser of $50,000 or 10% of the total annual salary and bonus reported for the named individuals.

(2)

Options granted pursuant to the LB Shares Stock Option Plan—See table under OPTIONS GRANTED IN THE LAST FISCAL YEAR for more detailed information on the 2001 options granted.

12

(3)

Includes the following employer contributions to the Liqui-Box ESOP and 401(k) plan and payment for insurance premiums for the named individual during fiscal year 2001 as designated below:

Name	401(k) Plan		ESOP		Life Insurance Premium
Samuel B. Davis	$	12,264	$	4,500	$	2,838
Samuel N. Davis	$	12,264	$	750	$	594
Stewart M. Graves	$	2,034	$	1,890	$	1,518

(4)

Options granted pursuant to the 1990 Stock Option Plan.

(5)

Mr. Graves became President and Chief Operating Officer of Liqui-Box in October, 2000. Prior to that time, he served as Vice President, International of Liqui-Box.

(6)

Mr. McBee served as President, Chief Operating Officer and Secretary of Liqui-Box until October, 2000. He retired as an employee and director of and became a consultant to Liqui-Box in February, 2001.

OPTIONS GRANTED IN THE LAST FISCAL YEAR

        The following table sets forth certain information concerning individual grants of options made under LB Shares Stock Option Plan during the last fiscal year to each of the named executive officers. Liqui-Box has never granted stock appreciation rights.

							Potential Realizable Value at Assumed Annual Rates of Stock Price Appreciation for Option Term(1)
	Number of Securities Underlying Option Granted(#)(2)	% of Total Options Granted to Employees in Fiscal Year
Name				Exercise Price($/sh)		Expiration Date
							5%($)		10%($)
Samuel B. Davis	50,000	33	%	$	39.00	9/24/11	$	1,226,344	$	3,107,798
Samuel N. Davis	50,000	33	%	$	39.00	9/24/11	$	1,226,344	$	3,107,798
Stewart M. Graves	50,000	33	%	$	39.00	9/24/11	$	1,226,344	$	3,107,798
C. William McBee	None	—			—	—		—		—

(1)

The amounts reflected in this table represent certain assumed rates of appreciation only. Actual realized values, if any, on option exercises will be dependent on the actual appreciation of common shares of Liqui-Box over the term of the options. There can be no assurance that the Potential Realizable Values reflected in this table will be achieved.

(2)

These options were granted on September 24, 2001. The options become exercisable in 20% increments per year, beginning on the anniversary of the grant date and are forfeited upon termination of employment for reasons other than death or disability.

13

AGGREGATED OPTION EXERCISES IN LAST FISCAL YEAR
AND FISCAL YEAR-END OPTION VALUES

        The following table sets forth certain information with respect to options exercised during the last fiscal year by each of the named executive officers and information concerning unexercised options held at year end by such executive officers:

			Number of Securities Underlying Unexercised Options at Fiscal Year-End(#)		Value of Unexercised In-the-Money Options at Fiscal Year-End($)(1)(2)
Name	Shares Acquired On Exercise(#)	Value Realized($)(1)
			Exercisable	Unexercisable	Exercisable		Unexercisable
Samuel B. Davis	0	0	158,005	201,734	$	2,973,301	$	3,591,841
Samuel N. Davis	174	3,488	20,359	90,188	$	249,059	$	563,700
Stewart M. Graves	0	0	20,000	90,000	$	246,100	$	563,700
C. William McBee	34,260	505,000	—	—		—		—

(1)

All values shown are pretax.

(2)

Based on the fiscal year-end closing price of $41.93 per common share.

DIRECTOR COMPENSATION

        Directors who are not employees of Liqui-Box receive a $3,750 per quarter retainer. The Directors who are employees of Liqui-Box receive no additional compensation for serving as directors.

Item 12. Security Ownership of Certain Beneficial Owners and Management

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS

        The following table sets forth certain information, as of March 22, 2002, concerning the beneficial ownership of Liqui-Box's common shares by the only persons known to Liqui-Box to own beneficially more than five percent (5%) of the outstanding common shares of Liqui-Box.

	Common Shares of Liqui-Box Beneficially Owned(1)(2)
Name and Address of Beneficial Owner	Amount		% of Total
Samuel B. Davis 6950 Worthington-Galena Road P.O. Box 494 Worthington, Ohio 43085	1,654,733	(3)	38.2	%
T. Rowe Price Associates, Inc. 100 E. Pratt Street Baltimore, MD 21202	414,550	(4)	9.9	%

(1)

Sole voting and investment power, unless otherwise indicated.

(2)

The percent of total is based upon the sum of 4,168,380 common shares outstanding on March 22, 2002 and the number of common shares, if any, as to which the named person has the right to acquire beneficial ownership upon the exercise of "presently exercisable options". Under the rules of the Securities and Exchange Commission (the "SEC"), options which become exercisable during the next 60 days are deemed to be "presently exercisable options".

14

(3)

Includes 500,000 Common Shares held as trustee under the Samuel B. Davis 2002 Grantor Retained Annuity Trust and 293,939 Common Shares held as trustee under the Samuel B. Davis Revocable Trust. Also includes 158,005 Common Shares which are subject to options which are exercisable within 60 days of March 22, 2002. Supplemental Retirement Discounted Options become exercisable upon termination employment (other than upon termination for cause); however, the Supplemental Retirement Discounted Options become fully exercisable upon an earlier change in control of Liqui-Box. For purposes of determining options which are presently exercisable, it is assumed that the employment of the reporting person with Liqui-Box will not be terminated during the next 60 days and that a change in control of Liqui-Box will not occur within the next 60 days. Also includes 70,839 Common Shares held under the Liqui-Box Corporation Employee Stock Ownership Plan and 14,810 common shares held under the Liqui-Box Corporation 401(k) plan. Also includes 163,371 Common Shares held as Successor Trustee under the Davis Family Trust F/B/O Samuel B. Davis. Includes 127,027 Common Shares deposited with Mr. Davis in his capacity as voting trustee of a voting trust. Mr. Davis exercises sole voting power with respect to the Common Shares deposited in the voting trust; however, the person who deposited the Common Shares in the voting trust retained investment power, subject to a right of first refusal which may be exercised by Mr. Davis, and the right to receive dividends thereon. The voting trust expires on September 29, 2003. Includes 163,371 Common Shares held by Mr. Davis as Successor Trustee under the Davis Family Trust F/B/O Joan D. Guylas. Includes 163,371 Common Shares held by Mr. Davis as Successor Trustee under the Davis Family Trust F/B/O Jane D. Ferger. Does not include 11,643 Common Shares as to which the wife of Mr. Davis has sole voting and investment power. The shares owned by Mr. Davis also are subject to an option to purchase such shares held by Enhance Packaging Technologies Inc. under a Shareholders Agreement dated March 25, 2002. See "Item 1. Business—Recent Developments" herein.

(4)

Based upon information contained in a Form 13G filed with the SEC on February 14, 2002, of which T. Rowe Price Small-Cap Value Fund, Inc. may have shared voting and investment powers with respect to 253,300 of such shares. T. Rowe Price Associates, Inc. is the investment advisor for T. Row Price Small-Cap Value Fund, Inc.

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

        Section 16(a) of the Securities Exchange Act of 1934, as amended, requires Liqui-Box executive officers and directors, and persons who beneficially own more than 10% of the outstanding Liqui-Box common shares, to file initial reports of ownership and reports of changes in ownership of their equity securities of Liqui-Box with the SEC and the National Association of Securities Dealers, Inc. Liqui-Box executive officers, directors and greater than 10% beneficial owners are required by SEC regulations to furnish Liqui-Box with copies of all Section 16(a) reports filed by them. Based solely on a review of copies of reports furnished to Liqui-Box, Liqui-Box believes that all Section 16(a) filing requirements applicable to its executive officers, directors and greater than 10% beneficial owners were complied with for fiscal year 2001.

15

SECURITY OWNERSHIP OF MANAGEMENT

        The following table sets forth, as of March 22, 2002, certain information with respect to Liqui-Box's common shares owned beneficially by each director of Liqui-Box, by each nominee for election as a director of Liqui-Box, by each executive officer of Liqui-Box named in the SUMMARY COMPENSATION TABLE and by all current directors and executive officers of Liqui-Box as a group:

	Common Shares of Liqui-Box Beneficially-Owned(1)(2)(3)
Name of Beneficial Owner	Amount		% of Total(4)
Samuel B. Davis	1,654,733	(5)	38.2	%
Samuel N. Davis	80,342	(6)	1.9	%
Stewart M. Graves	20,135	(7)	0.5	%
Russell M. Gertmenian	2,600	(8)	0.1	%
Charles R. Coate	2,963		0.1	%
Carl J. Aschinger	1,895		0.0	%
John Trostheim	200		0.0	%
Robert L. Zieg	130		0.0	%
All current directors and executive officers as a group (8 persons)	1,762,998	(9)	40.4	%

(1)

All fractional common shares have been rounded.

(2)

Sole voting and investment power, unless otherwise indicated.

(3)

Supplemental Retirement Discounted Options become exercisable upon termination of employment. Under SEC rules, options that become exercisable during the next 60 days are deemed to be "presently exercisable options". For purposes of determining presently exercisable options, it is assumed that no current executive officer will terminate his employment with Liqui-Box during the next 60 days.

(4)

See footnote (2) to the preceding table.

(5)

See footnote (3) to the preceding table.

(6)

Includes 20,359 common shares subject to presently exercisable options and 1,983 common shares held for his account in the Liqui-Box ESOP and 401(k) plan.

(7)

Includes 20,000 common shares subject to presently exercisable options and 135 common shares held for his account in the Liqui-Box ESOP and 401(k) plan.

(8)

Includes 1,600 common shares currently held as custodian for his son.

(9)

Includes, as to all current directors and executive officers of Liqui-Box as a group, 198,364 common shares subject to presently exercisable options and an aggregate of 87,767 common shares held for their respective accounts in the Liqui-Box ESOP and 401(k) plan.

Item 13. Certain Relationships and Related Transactions

TRANSACTIONS INVOLVING MANAGEMENT AND OTHERS

        Russell M. Gertmenian, a director of Liqui-Box, is a partner in the law firm of Vorys, Sater, Seymour and Pease LLP, which rendered legal services to Liqui-Box during the 2001 fiscal year and continues to render legal services to Liqui-Box during the 2002 fiscal year.

        William A. Duelge resigned as an officer of Liqui-Box in February, 2001. In connection with a severance agreement with Mr. Duelge, Liqui-Box purchased from him 10,667 Liqui-Box common shares at a price of $46.875 per share, which was above the fair market value of the shares on the date of purchase. Subsequent to the sale, Mr. Duelge caused Liqui-Box to be released from stock loan

16

guarantees it had made on his behalf. In addition to the stock buyback, there were no additional severance payments made to Mr. Duelge.

        C. William McBee retired as a Liqui-Box employee in March, 2001. At that time, he also entered into a consulting agreement with Liqui-Box with a term of 27 weeks under which he received total consulting fees of $125,000. In connection with his retirement, Liqui-Box purchased from him 37,450 Liqui-Box common shares at a price of $40.00 per share, which was the fair market value per share on the date of purchase. Subsequent to the sale, Mr. McBee caused Liqui-Box to be released from stock loan guarantees it had made on his behalf.

        In September, 2001, Liqui-Box made a loan of $1,366,068 to the Employee Stock Ownership Plan (ESOP). The proceeds of the loan were used to purchase 31,047 common shares of Liqui-Box from the JASAM Foundation—Fund B. The transaction was completed at fair market value on the date of the purchase. Samuel B. Davis' sister is a trustee and beneficiary of the JASAM Foundation—Fund B.

        On March 25, 2002, Liqui-Box entered into noncompetition and nonsolicitation agreements with Samuel B. Davis and Samuel N. Davis, respectively, pursuant to which Samuel B. Davis will be entitled to receive from Liqui-Box $4 million in cash upon termination of his employment with Liqui-Box and Samuel N. Davis will be entitled to receive from Liqui-Box $2 million in cash upon termination of his employment with Liqui-Box. See "Item 1. Business—Recent Developments" herein.

PART IV

Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K.

(a)

(1) The following financial statement schedules are referenced in Part II Item 8 and submitted herewith:

INDEPENDENT AUDITOR'S REPORT

To the Stockholders and Directors of Liqui-Box Corporation

        We have audited the accompanying consolidated balance sheets of Liqui-Box Corporation and subsidiaries as of December 29, 2001 and December 30, 2000, and the related consolidated statements of income and comprehensive income, stockholders' equity and cash flows for each of the three fiscal years in the period ended December 29, 2001. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

        We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

        In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Liqui-Box Corporation and subsidiaries at December 29, 2001 and December 30, 2000, and the results of their operations and their cash flows for each of the three fiscal years in the period ended December 29, 2001, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP
Columbus, Ohio
March 15, 2002
(March 26, 2002 as to Note 10)

17

Liqui-Box Corporation and Subsidiaries
Consolidated Balance Sheets

Assets		December 29, 2001			December 30, 2000
Current Assets
Cash and cash equivalents		$	9,741,000		$	13,274,000
Accounts receivable:
	Trade, net of allowance for doubtful accounts of $605,000 and $756,000, respectively		15,031,000			13,800,000
	Other		453,000			682,000
Total receivables			15,484,000			14,482,000
Inventories:
	Raw materials and supplies		8,666,000			9,173,000
	Work in process		2,555,000			4,612,000
	Finished goods		3,054,000			4,355,000
Total Inventories			14,275,000			18,140,000
Deferred tax assets			1,474,000			1,668,000
Other current assets			799,000			724,000
Total Current Assets			41,773,000			48,288,000
Property, Plant and Equipment
Land, buildings and leasehold improvements			18,166,000			18,066,000
Equipment and vehicles			85,955,000			82,602,000
Equipment leased to customers			18,745,000			16,266,000
Construction in process			8,621,000			4,241,000
Total			131,487,000			121,175,000
Less accumulated depreciation and amortization			(91,811,000	)		(84,718,000	)
Property, plant and equipment, net			39,676,000			36,457,000
Other Assets
Goodwill, net of amortization			6,433,000			7,065,000
Deferred tax assets, noncurrent			439,000
Deferred charges and other assets, net			3,934,000			4,364,000
Total other assets			10,806,000			11,429,000
Total Assets		$	92,255,000		$	96,174,000

See notes to consolidated financial statements.

18

Liqui-Box Corporation and Subsidiaries
Consolidated Balance Sheets

Liabilities and Stockholders' Equity		December 29, 2001			December 30, 2000
Current Liabilities
Accounts payable		$	3,207,000		$	4,901,000
Short-term borrowings			5,084,000			4,577,000
Dividends payable			836,000			878,000
Salaries, wages and related liabilities			1,938,000			2,114,000
Federal, state and local taxes			1,373,000			351,000
Deposits			—			1,166,000
Other accrued liabilities			1,556,000			2,343,000
Total Current Liabilities			13,994,000			16,330,000
Other Noncurrent Liabilities
Deferred income taxes			—			228,000
Commitments and Contingencies			—			—
Stockholders' Equity
Preferred stock, without par value, 2,000,000 shares authorized; none issued			—			—
Common stock, $.1667 stated value, 20,000,000 shares authorized, 7,262,598 shares issued			1,210,000			1,210,000
Additional paid-in capital			11,757,000			10,593,000
Accumulated other comprehensive income			456,000			649,000
Retained earnings			174,532,000			164,499,000
Less:
	ESOP Loan, at cost—31,047 shares		(1,366,000	)		—
	Treasury stock, at cost—3,096,935 and 2,871,061 shares, respectively		(108,328,000	)		(97,335,000	)
Total Stockholders' Equity			78,261,000			79,616,000
Total Liabilities and Stockholders' Equity		$	92,255,000		$	96,174,000

See notes to consolidated financial statements.

19

Liqui-Box Corporation and Subsidiaries

Consolidated Statements of Income and Comprehensive Income

		Fifty-two Weeks Ended December 29, 2001			Fifty-two Weeks Ended December 30, 2000			Fifty-two Weeks Ended January 1, 2000
Net Sales		$	145,219,000		$	157,124,000		$	167,201,000
Cost of Sales			97,457,000			103,133,000			105,667,000
	Gross Margin		47,762,000			53,991,000			61,534,000
Selling, administrative and development expenses			24,932,000			27,074,000			29,908,000
	Operating Income		22,830,000			26,917,000			31,626,000
Other Income (Expense):
Interest and dividend income			607,000			610,000			381,000
Interest expense			(207,000	)		(145,000	)		(315,000	)
Other, net			(444,000	)		(229,000	)		(43,000	)
Income Before Income Taxes			22,786,000			27,153,000			31,649,000
Taxes on Income			9,323,000			10,726,000			12,515,000
Net Income			13,463,000			16,427,000			19,134,000
Other Comprehensive Income (Expense), Net of Tax:
Foreign currency translation adjustments			(233,000	)		(910,000	)		(213,000	)
Unrealized gain (loss) on marketable securities			40,000			(37,000	)		(376,000	)
	Other comprehensive income (expense)		(193,000	)		(947,000	)		(589,000	)
Comprehensive Income		$	13,270,000		$	15,480,000		$	18,545,000
Earnings per share
	Basic	$	3.13		$	3.71		$	4.20
	Diluted	$	3.01		$	3.55		$	4.00
Cash dividends per common share		$	0.80		$	0.80		$	0.76
Weighted average number of shares used in computing earnings per share:
	Basic		4,296,005			4,431,017			4,561,383
	Diluted		4,466,854			4,626,813			4,785,556

See notes to consolidated financial statements.

20

Liqui-Box Corporation and Subsidiaries

Consolidated Statements of Cash Flows

			Fifty-two Weeks Ended December 29, 2001			Fifty-two Weeks Ended December 30, 2000			Fifty-two Weeks Ended January 1, 2000
Cash Flows From Operating Activities:
Net income			$	13,463,000		$	16,427,000		$	19,134,000
Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization			7,339,000			7,642,000			8,258,000
	Provision for loss on accounts receivable			194,000			26,000			186,000
	Amortization of other noncurrent assets			850,000			843,000			883,000
	Loss on disposal of property, plant and equipment			114,000			66,000			57,000
	Deferred compensation			138,000			188,000			324,000
	Changes in deferred income tax accounts			(473,000	)		(306,000	)		159,000
	Changes in operating assets and liabilities:
		Accounts receivable		(1,194,000	)		5,418,000			(5,165,000	)
		Inventories		3,865,000			(4,980,000	)		(738,000	)
		Other current assets		(75,000	)		96,000			(128,000	)
		Accounts payable		(1,692,000	)		(5,999,000	)		3,230,000
		Salaries, wages and related liabilities		(176,000	)		142,000			79,000
		Other accrued liabilities		(927,000	)		1,079,000			(1,032,000	)
Net cash provided by operating activities				21,426,000			20,642,000			25,247,000
Cash Flows From Investing Activities:
Purchase of property, plant and equipment				(10,728,000	)		(12,437,000	)		(5,521,000	)
Proceeds from sale of property, plant and equipment				99,000			2,372,000			1,586,000
Other changes, net				251,000			232,000			395,000
Net cash used in investing activities				(10,378,000	)		(9,833,000	)		(3,540,000	)
Cash Flows From Financing Activities:
Acquisition of treasury shares				(12,256,000	)		(7,816,000	)		(8,773,000	)
Sale of treasury shares				27,000			530,000			20,000
Exercise of stock options and tax benefit				2,262,000			1,226,000			1,117,000
Cash dividends				(3,472,000	)		(3,561,000	)		(3,389,000	)
Proceeds (repayment) of short-term borrowings				507,000			1,294,000			(7,517,000	)
Loan issued to ESOP				(1,366,000	)		—			—
Net cash used in financing activities				(14,298,000	)		(8,327,000	)		(18,542,000	)
Effect of exchange rate changes on cash				(283,000	)		(843,000	)		(215,000	)
Increase (Decrease) in cash and cash equivalents				(3,533,000	)		1,639,000			2,950,000
Cash and cash equivalents, Beginning of year				13,274,000			11,635,000			8,685,000
Cash and cash equivalents, End of year			$	9,741,000		$	13,274,000		$	11,635,000

See notes to the consolidated financial statements.

21

Liqui-Box Corporation and Subsidiaries

Consolidated Statements of Stockholders Equity

	Shares Outstanding		Common Stock		Additional Paid-In Capital		Other Comprehensive Income			Retained Earnings			ESOP Loan			Treasury Stock
Balance at January 2, 1999	4,651,481		$	1,210,000	$	8,588,000	$	2,185,000		$	135,929,000					$	(82,146,000	)
Net income											19,134,000
Dividends											(3,455,000	)
Purchase of treasury stock	(172,168	)															(8,773,000	)
Proceeds from exercise of stock options	31,454					411,000											537,000
Sale of treasury stock	392					13,000											7,000
Tax benefit on stock options exercised						169,000
Deferred compensation						324,000
Translation loss								(213,000	)
Unrealized loss on marketable securities								(376,000	)
Balance at January 1, 2000	4,511,159			1,210,000		9,505,000		1,596,000			151,608,000						(90,375,000	)
Net income											16,427,000
Dividends											(3,536,000	)
Purchase of treasury stock	(169,962	)															(7,816,000	)
Proceeds from exercise of stock options	38,991					450,000											663,000
Sale of treasury stock	11,349					337,000											193,000
Tax benefit on stock options exercised						113,000
Deferred compensation						188,000
Translation loss								(910,000	)
Unrealized loss on marketable securities								(37,000	)
Balance at December 30, 2000	4,391,537			1,210,000		10,593,000		649,000			164,499,000						(97,335,000	)
Net income											13,463,000
Dividends											(3,430,000	)
Purchase of treasury stock	(300,187	)															(12,256,000	)
Loan issued to ESOP	(31,047	)											$	(1,366,000	)
Proceeds from exercise of stock options	73,662					745,000											1,252,000
Sale of treasury stock	651					16,000											11,000
Tax benefit on stock options exercised						265,000
Deferred compensation						138,000
Translation loss								(233,000	)
Unrealized gain on marketable securities								40,000
Balance at December 29, 2001	4,134,616		$	1,210,000	$	11,757,000	$	456,000		$	174,532,000		$	(1,366,000	)	$	(108,328,000	)

See notes to consolidated financial statements.

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Liqui-Box Corporation and Subsidiaries
Notes to Consolidated Financial Statements

December 29, 2001

NOTE 1—ACCOUNTING POLICIES

        Liqui-Box Corporation and subsidiaries (the "Company") are manufacturers of bag-in-box flexible packaging, blow-molded containers, filling equipment and bulk liquid dispensing systems for the beverage, processed foods, dairy, detergent, wine and other specialty products industries. The Company operates eleven manufacturing plants in the United States, Europe and India in primarily the plastic packaging industry. Significant accounting policies of the Company are as follows:

Consolidation—The consolidated financial statements include the accounts of Liqui-Box Corporation and its subsidiaries, all of which are wholly owned. The Company eliminates all significant intercompany balances and transactions in the consolidated financial statements.

Basis of Accounting—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash Equivalents—The Company considers money market funds and all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents are on deposit primarily with three financial institutions.

Concentration of Credit Risk and Major Customer—The Company's exposure to credit risk is impacted by the economic climate affecting its diverse customer base and wide geographic dispersion. The Company manages this risk by performing ongoing credit evaluations of its customers. Reserves for credit losses are maintained by the Company.

        Approximately 18%, 21% and 22% of the Company's revenues in 2001, 2000 and 1999, respectively, were derived from sales to one major customer in the United States. Trade receivables due from this customer were $1,448,000 and $1,870,000 at December 29, 2001 and December 30, 2000, respectively.

Inventory Valuation—Inventories are stated at the lower of cost or market. Substantially all of the Company's domestic product inventories are valued on the last in, first out (LIFO) method. If current cost had been used, inventories would have increased approximately $1,411,000 and $1,958,000 at December 29, 2001 and December 30, 2000, respectively. The Company's inventory of machine parts and inventories of certain foreign subsidiaries are valued on the first in, first out (FIFO) method. These inventories approximated $7,069,000 and $9,222,000 at December 29, 2001 and December 30, 2000, respectively.

Property, Plant and Equipment—Property, plant and equipment is stated at cost. Depreciation is computed using the straight line method (accelerated methods are generally used for tax purposes) in amounts adequate to amortize the cost over the estimated useful lives of the assets as follows: buildings and improvements—5 to 30 years and equipment—3 to 7 years.

Goodwill and Other Intangibles—Goodwill represents the excess purchase price over net assets acquired and is being amortized using the straight line method over 15 to 24 years. Other intangibles resulting from business acquisitions, comprised mainly of costs related to sales agreements, patents and non compete agreements, are being amortized using the straight line method over 15 to 17 years. Accumulated amortization of goodwill and other intangibles as of December 29, 2001 and December 30, 2000 approximated $8,184,000 and $7,334,000, respectively. At each balance sheet date, a

23

determination is made by the Company as to whether any intangible assets have been impaired based on several criteria including, but not limited to, sales trends, operating factors and undiscounted cash flows.

Marketable Securities—Marketable securities consist primarily of common stocks and are included in other noncurrent assets. The Company classifies its securities as available for sale and accordingly, carries such at fair market value based on quoted market prices with unrealized gains and losses reported as other comprehensive income. The fair market value, cost and cumulative unrealized gains, net of tax, were $1,137,000, $218,000 and $562,000, respectively, at December 29, 2001 and $1,190,000, $321,000 and $522,000, respectively, at December 30, 2000. The related deferred income tax expense (benefit) was $26,000, $(25,000) and $(250,000) at fiscal year ended 2001, 2000 and 1999, respectively.

Treasury Stock—During 2001 and 2000, the Company repurchased 300,187 common shares at an aggregate cost of $12,256,000 and 169,962 common shares at an aggregate cost of $7,816,000, respectively.

Revenue Recognition—Revenue from product sales is recognized at the time products are shipped and title transfers to customers. Reserves for estimated returns, allowances and customer rebates are established when revenues are recognized.

Freight Revenue—Revenue from the re-billing of customers freight charges are recorded as net sales. Freight revenue amounted to $2,362,000, $1,924,000 and $1,974,000 in 2001, 2000, and 1999, respectively. The Company records freight expense in cost of sales.

Research and Development—All research and development costs are expensed as incurred. Such costs amounted to $1,519,000, $1,559,000 and $1,436,000 in 2001, 2000 and 1999, respectively.

Advertising Costs—Advertising costs primarily relate to trade shows, product catalogues and product literature. Such costs are expensed as incurred. Total advertising expenses were $628,000, $912,000 and $830,000 in 2001, 2000 and 1999, respectively.

Earnings Per Share—Basic income per share amounts are based on the weighted average number of shares of common stock outstanding during the years presented. Diluted income per share amounts are based on the weighted average number of shares of common stock and stock options outstanding during the years presented.

Foreign Currency Translation—All assets and liabilities of wholly-owned foreign subsidiaries have been translated using the current exchange rate in effect at the balance sheet dates. Revenue and expense accounts of such subsidiaries have been translated using the average exchange rate prevailing during the year and capital accounts have been translated using historic rates. Gains and losses resulting from the elimination of long term intercompany receivable balances and the translation of the foreign financial statements into U.S. dollars are reflected as translation adjustments in comprehensive income. The foreign currency cumulative translation adjustment was $(105,000), $128,000, and $1,038,000 at fiscal year ended 2001, 2000 and 1999, respectively. The related deferred income tax expense (benefit) was $(93,000), $(364,000) and $(85,000) in fiscal years 2001, 2000 and 1999, respectively.

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        Foreign currency exchange gains (losses) arise primarily from transactions denominated in foreign currencies and from forward exchange contracts and are included in other income (expense) in the amount of approximately $16,000, $37,000 and $5,000 in 2001, 2000 and 1999, respectively.

Disclosures Concerning Fair Value of Financial Instruments—The carrying value of cash and cash equivalents; trade and other receivables; investments; accounts payable; fair value of guaranteed debt obligations to certain officers and employees; short-term borrowings and other current liabilities are estimated to approximate fair value because of the short-term maturity of these items.

New Accounting Standards—In June 1998, the Financial Accounting Standards Board "FASB" issued Statement of Financial Standards No. 133 (SFAS 133), "Accounting for Derivative Instruments and Hedging Activities". The statement establishes accounting and reporting standards requiring that all derivative instruments (including certain derivative instruments imbedded in other contracts) be recorded in the balance sheet as either an asset or a liability measured at its fair market value. The Company adopted this statement effective December 31, 2000. The statement requires that changes in the derivative's fair market value be recognized currently in earnings unless specific hedge accounting criteria are met. The accounting provision for qualifying hedges allow a derivative's gains and losses to offset related results on the hedged item in the income statement, and requires that the Company formally document, designate and assess the effectiveness of transactions that qualify for hedge accounting. The adoption of this statement did not have a material effect on the consolidated financial statements of the Company.

        In July 2001, the FASB issued Statement of Financial Accounting Standards No. 141 ("SFAS 141"), "Business Combinations". SFAS 141 requires the purchase method of accounting for business combinations initiated after June 30, 2001 and eliminates the pooling-of-interests method. The Company has determined that there is no impact on its consolidated financial statements from this statement.

        In July 2001, the FASB issued Statement of Financial Accounting Standards No. 142 ("SFAS 142"), "Goodwill and Other Intangible Assets", which is effective January 1, 2002. SFAS 142 requires, among other things, the discontinuance of goodwill amortization. In addition, SFAS 142 includes provisions for the reclassification of certain existing recognized intangibles as goodwill, reassessment of the useful lives of existing recognized intangibles, reclassification of certain intangibles out of previously reported goodwill and the identification of reporting units for purposes of assessing potential future impairments of goodwill. SFAS 142 also requires the Company to complete a transitional goodwill impairment test within six months from the date of adoption. The Company has not determined the impact that SFAS 142 will have on its consolidated financial statements.

        In August 2001, the FASB issued Statement of Financial Standards No. 144 ("SFAS 144"), "Accounting for Impairment or Disposal of Long-Lived Assets", which became effective December 30, 2001 (Fiscal Year 2002). While this statement supersedes SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets to Be Disposed Of" it retains the fundamental provisions of SFAS No. 121 for recognition and impairments of assets to be held and used, and assets to be disposed of by sale. The Company has not determined the impact, if any, that SFAS 144 will have on its consolidated financial statements.

Reclassification—Certain reclassifications have been made to the 2000 and 1999 financial statements to conform to the 2001 presentation.

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NOTE 2—TAXES ON INCOME

        Deferred income taxes are provided for the temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes by applying enacted statutory tax rates applicable to future years to the basis differences. The effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date.

        Significant components of the Company's deferred tax liabilities and assets are as follows:

		As of Fiscal Year End
		December 29, 2001			December 30, 2000
Current deferred tax assets:
	Accounts receivable	$	218,000		$	251,000
	Reserves, accruals and other		1,256,000			1,417,000
Net current deferred tax assets		$	1,474,000		$	1,668,000
Long-term deferred tax assets:
	Intangibles	$	229,000		$	400,000
	Deferred compensation and other		1,042,000			1,005,000
	Total long-term deferred tax assets		1,271,000			1,405,000
Long-term deferred tax liabilities:
	Tax over book depreciation		(451,000	)		(1,180,000	)
	Marketable securities		(381,000	)		(453,000	)
	Total long-term deferred tax liabilities		(832,000	)		(1,633,000	)
Net long-term deferred tax assets (liabilities)		$	439,000		$	(228,000	)

        Significant components of the provision for income taxes are as follows:

			2001			2000		1999
Current:
	Federal		$	7,936,000		$	8,590,000	$	10,169,000
	Foreign			124,000			399,000		483,000
	State			1,736,000			1,456,000		1,704,000
Total current taxes				9,796,000			10,445,000		12,356,000
Deferred—Federal and state expense (credit)				(473,000	)		281,000		159,000
		Total taxes	$	9,323,000		$	10,726,000	$	12,515,000

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        The following table summarizes the difference between income taxes computed at the expected Federal statutory rate and actual amounts:

		2001			2000			1999
Expense at Federal statutory rates		$	7,975,000		$	9,504,000		$	11,077,000
Foreign income taxes			124,000			399,000			321,000
State income taxes, net of Federal tax benefit			1,089,000			967,000			1,108,000
Other—net			135,000			(144,000	)		9,000
	Total	$	9,323,000		$	10,726,000		$	12,515,000
Effective income tax rate			40.9	%		39.5	%		39.5	%

        The Company made income tax payments, net of refunds, of approximately $8,774,000, $10,094,000 and $13,865,000 in 2001, 2000 and 1999, respectively.

NOTE 3—COMMITMENTS AND CONTINGENCIES

        The Company leases property and equipment pursuant to various non-cancelable operating lease agreements. Certain leases contain renewal options and generally provide that the Company shall pay for insurance, taxes and maintenance. Future minimum payments on non-cancelable operating leases with initial or remaining terms in excess of one year for the five fiscal years subsequent to December 29, 2001 are: $1,817,000, $1,237,000, $1,047,000, $752,000 and $700,000. Lease payments under non-cancelable operating leases subsequent to the year 2006 aggregate $1,764,000.

        Total rent expense including other cancelable and short-term leases were $2,001,000, $2,046,000 and $1,885,000 in 2001, 2000 and 1999, respectively.

        At December 29, 2001 the Company has no pending legal proceedings which it deems to be material to its business.

        The Company has guaranteed debt obligations of certain officers and employees totaling $687,000 as of December 29, 2001.

NOTE 4—STOCK OPTIONS

        As of December 29, 2001, the Company has stock-based compensation programs which are described below. The Company applies APB Opinion 25 and related interpretations in accounting for its plans. Accordingly, the only compensation expense charged against income is related to deferred compensation for options issued at a discount from market value at the measurement date of the grant. Compensation expense recorded in 2001, 2000 and 1999 was $138,000, $188,000 and $324,000, respectively. Had the compensation costs for the Company's stock-based compensation plans been determined using the fair value at the grant dates for awards under those plans consistent with the

27

method of FASB Statement No. 123, the Company's net income and earnings per share would have been as indicated in the pro forma amounts below:

		2001		2000		1999
Net Income	As reported Pro forma	$ $	13,463 12,913	$ $	16,427 15,933	$ $	19,134 18,920
Basic earnings per share	As reported Pro forma	$ $	3.13 3.01	$ $	3.71 3.60	$ $	4.20 4.15
Diluted earnings per share	As reported Pro forma	$ $	3.01 2.89	$ $	3.55 3.44	$ $	4.00 3.95

        The pro forma amounts are not representative of the effects on reported net income for future years.

        The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in 2001: dividend yield of 1.6%; expected volatility of 24%; risk-free interest rates of 4.9%; and expected lives of 7 years. The assumption for 2000 grants assumed a dividend yield of 1.6%; expected volatility of 25%; risk-free interest rates of 6.0%; and expected lives of 7 years. The assumption for 1999 grants assumed a dividend yield of 1.5%; expected volatility of 21%; risk-free interest rates of 6.0%; and expected lives of 7 years.

        Under the 1990 Liqui-Box Stock Option Plan ("the Plan"), the Company has granted incentive, non-qualified and deferred compensation stock options, or other stock-based awards. The terms and issuance prices of such awards are to be determined by the Board of Directors as limited by Internal Revenue Service rules where applicable. Options granted under the 1990 Plan are exercisable according to the terms of each option. However, in the event of a change in control as defined in the 1990 Plan, options become immediately exercisable, except those awarded within the last six months. Options granted under the 1990 Plan include incentive options, supplemental retirement options and other options.

        The Company has granted supplemental retirement options under the 1990 Plan to certain Company executives. These options were granted at an exercise price of 50% of the fair market value on the date of grant. Six months after the date of grant, each option vests with respect to 75% of the shares covered by the option if the grantee has signed a non-compete agreement; if a non-compete agreement has not been signed by the grantee, the option vests with respect to 50% of the shares covered by the option. In either case, the option vests based on age with respect to the remaining shares covered by the option. Supplemental retirement options are exercisable only upon termination of employment for other than cause.

        Other options outstanding under the 1990 Plan include non-qualified options and incentive options for the purchase of common shares. The exercise price per share for the incentive options is not less than the fair market value per share of Company common shares on date of grant and, for the non-qualified options, is at or below fair market value per share on the date of grant. The incentive and a portion of the non-qualified options become exercisable in 25% increments on each anniversary of the grant date. The remaining non-qualified options generally become exercisable in 10% increments on each anniversary of the grant date.

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        The 1990 Plan terminated by its terms on February 9, 2000, except with respect to options then outstanding which had been previously issued under the Plan.

        Under its LBShares Stock Option Plan, the Company may grant options annually to a majority of its employees based on their individual prior year's wages. Options are granted at exercise prices that equal the fair market value on the date of grant. Options become exercisable in 20% increments on each anniversary of the grant date and are forfeited upon termination of employment for reasons other than death or disability. Options expire 10 years after the grant date.

        A summary of the status of the Company's stock option plan as of December 29, 2001 and for the three years then ended is presented below:

		2001				2000				1999
		Shares (000)		Weighted- Average Exercise Price		Shares (000)		Weighted- Average Exercise Price		Shares (000)		Weighted- Average Exercise Price
Outstanding at beginning of year		780		$	27	639		$	27	671		$	26
	Granted	150		$	39	200		$	32	42		$	53
	Exercised	(74	)	$	27	(39	)	$	29	(31	)	$	30
	Forfeited	(62	)	$	36	(20	)	$	40	(43	)	$	36
Outstanding at end of year		794		$	29	780		$	27	639		$	27
Options Exercisable at year-end		336		$	29	381		$	28	387		$	28

	2001		2000		1999
Weighted-average fair value of options granted during the year where market price at date of grant is at exercise price	$	12	$	11	$	17

        The following table summarizes information about stock options outstanding at December 29, 2001:

	OPTIONS OUTSTANDING				OPTIONS EXERCISABLE
Range of Exercise Prices	Number of Outstanding (000)	Weighted- Average Remaining Contractual Life	Weighted- Average Exercise Price		Number Outstanding (000)	Weighted- Average Exercise Price
$12.50 to $18.50	192	4.5	$	14	62	$	14
$22.50 to $24.625	13	0.7	$	25	13	$	25
$27.25 to $30.75	143	3.9	$	28	143	$	28
$31.50 to $37.00	249	4.2	$	32	89	$	34
$38.25 to $53.3125	197	8.1	$	41	29	$	47
	794	4.5	$	29	336	$	29

        The Company receives tax deductions for the difference between fair market value and the exercise price of common shares at the time non-incentive options are exercised. In addition, common shares obtained through the exercise of stock options which are sold by the optionee within two years of grant or one year of exercise result in a tax deduction for the Company equivalent to the taxable

29

gain recognized by the optionee. The tax benefit of this deduction is reflected in additional paid-in capital and totaled $265,000, $113,000 and $169,000 in 2001, 2000 and 1999, respectively.

NOTE 5—EQUIPMENT LEASED TO CUSTOMERS

        The Company leases various types of filling machinery and equipment to its customers to support its packaging products. The leases are classified as operating leases and are generally cancelable at the option of the Company. Assets available for lease and assets under current lease contracts are included in the balance sheets as equipment leased to customers. Accumulated depreciation on these assets at December 29, 2001 and December 30, 2000 approximated $13,271,000 and $12,236,000, respectively. Total lease income, including other cancelable and short-term leases, was $874,000, $751,000 and $725,000 in 2001, 2000 and 1999, respectively. The future minimum rental income on non-cancelable operating leases for the five fiscal years subsequent to December 29, 2001 are: $499,000, $345,000, $235,000, $136,000 and $61,000.

NOTE 6—CREDIT FACILITIES

        The Company maintains unsecured credit facilities that aggregate $30,000,000 and include $10,000,000 for a revolving term loan, the availability of which terminates on April 1, 2005, when, at the option of the Company, outstanding amounts can be converted to a term note under the terms of the agreement as defined. No amounts were outstanding under these credit facilities as of December 29, 2001 and December 30, 2000. The remaining portion of the credit facilities of $20,000,000 is a line of credit that expires April 30, 2002; however, the Company intends to renew this facility on terms comparable to the existing facility. No amounts were outstanding under this facility as of December 29, 2001 and December 30, 2000. At the Company's option, the credit facilities bear interest at either the prime rate, the London Interbank Offered Rate plus 0.50%, the Daily Eurocurrency Rate plus 0.50% or a negotiated rate, as defined (2.43% at December 29, 2001). The facilities require the maintenance of certain financial ratios and restrict future common cash dividends to 50% of consolidated net income after taxes. Additionally, the Company's Europe and India subsidiaries maintain secured credit facilities (subject to certain limitations), that expire in October 2002. The amounts outstanding, at December 29, 2001 and December 30, 2000, under these facilities were $5,084,000 and $4,577,000, respectively. The credit facility bears interest at varying rates, based upon the currency borrowed (ranging from 5% to 6.75% during 2001). The facilities are collateralized by a $1,448,000 guarantee by the Company and the cash balances and accounts receivable of the subsidiaries which total approximately $7,600,000 at December 29, 2001. Total interest paid under all facilities in 2001, 2000 and 1999 was $207,000, $145,000 and $315,000, respectively.

NOTE 7—EMPLOYEE BENEFIT PLANS

        The Company has a deferred profit sharing plan covering the majority of its employees not covered by a collective bargaining agreement. The Company's contributions to this plan, which are at the discretion of the Board of Directors, were $652,000, $556,000 and $599,000 in 2001, 2000 and 1999, respectively.

        The Company also has an Employee Stock Ownership Plan ("ESOP") for the majority of employees who are not covered by a collective bargaining agreement. Eligible employees may elect to contribute not less than 2%, nor more than 6% of their annual compensation to the ESOP. For each

30

participating employee, the Company contributes an amount equal to 50% of the employee's contribution. All shares of common stock of the Company held by the ESOP and allocated to participants are treated as outstanding shares in the determination of earnings per share. Shares of common stock of the Company held by the ESOP and not allocated to participants are treated as shares not outstanding. ESOP allocated and unallocated shares were 180,000 and 46,000 at December 29, 2001, and 194,000 and 5,000 at December 30, 2000, respectively. Dividends paid on all shares held by the ESOP are charged to retained earnings. Total ESOP expenses were $51,000, $69,000 and $82,000 in 2001, 2000 and 1999, respectively.

        In 1999, the Company adopted an Executive Deferred Compensation Plan. Under the plan, eligible participants can defer up to 100% of their cash compensation as well as realized gains from the exercise of non-qualified stock options. There was no related deferred compensation expense in 2001, 2000 and 1999.

        In September, 2001, Liqui-Box Corporation made a loan of $1,366,068 to the Employee Stock Ownership Plan (ESOP). The proceeds of the loan were used to purchase 31,047 common shares of Liqui-Box Corporation from the JASAM Foundation—Fund B. The transaction was completed at fair market value on the date of the purchase. Samuel B. Davis' sister is a trustee of the JASAM Foundation—Fund B.

NOTE 8—SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

							Earnings per Share
2001	Net Sales		Gross Margin		Net Income
							Basic		Diluted
	($ in thousands, except per share data)
First quarter	$	34,425	$	12,051	$	3,622	$	0.83	$	0.80
Second quarter		39,559		13,115		3,711		0.85		0.83
Third quarter		39,483		12,487		3,948		0.92		0.89
Fourth quarter		31,752		10,109		2,182		0.53		0.49
Total	$	145,219	$	47,762	$	13,463	$	3.13	$	3.01

							Earnings per Share
2000	Net Sales		Gross Margin		Net Income
							Basic		Diluted
	($ in thousands, except per share data)
First quarter	$	36,919	$	14,108	$	4,567	$	1.02	$	0.98
Second quarter		43,686		15,545		4,923		1.11		1.06
Third quarter		44,047		14,349		4,449		1.01		0.97
Fourth quarter		32,472		9,989		2,488		0.57		0.54
Total	$	157,124	$	53,991	$	16,427	$	3.71	$	3.55

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NOTE 9—SEGMENT INFORMATION

        Financial information by segment for each of the three years in the period ended December 29, 2001, is summarized as follows:

	United States		Foreign			Total
2001
Net sales	$	126,270,000	$	18,949,000		$	145,219,000
Operating income	$	21,999,000	$	831,000		$	22,830,000
Depreciation and amortization	$	7,002,000	$	1,187,000		$	8,189,000
Capital expenditures	$	8,961,000	$	1,767,000		$	10,728,000
Interest income (expense), net	$	472,000	$	(72,000	)	$	400,000
Income tax expense	$	9,199,000	$	124,000		$	9,323,000
Net income (loss)	$	13,656,000	$	(193,000	)	$	13,463,000
Identifiable assets	$	70,502,000	$	21,753,000		$	92,255,000
2000
Net sales	$	137,621,000	$	19,503,000		$	157,124,000
Operating income	$	25,677,000	$	1,240,000		$	26,917,000
Depreciation and amortization	$	6,863,000	$	1,622,000		$	8,485,000
Capital expenditures	$	9,219,000	$	3,218,000		$	12,437,000
Interest income (expense), net	$	494,000	$	(29,000	)	$	465,000
Income tax expense	$	10,327,000	$	399,000		$	10,726,000
Net income (loss)	$	16,633,000	$	(206,000	)	$	16,427,000
Identifiable assets	$	74,771,000	$	21,403,000		$	96,174,000
1999
Net sales	$	145,714,000	$	21,487,000		$	167,201,000
Operating income	$	29,804,000	$	1,822,000		$	31,626,000
Depreciation and amortization	$	7,542,000	$	1,599,000		$	9,141,000
Capital expenditures	$	4,516,000	$	1,005,000		$	5,521,000
Interest income (expense), net	$	148,000	$	(82,000	)	$	66,000
Income tax expense	$	12,032,000	$	483,000		$	12,515,000
Net income	$	18,698,000	$	436,000		$	19,134,000
Identifiable assets	$	72,233,000	$	22,657,000		$	94,890,000

        The Company is managed in two geographic operating segments: United States and Foreign. Foreign operations are in the United Kingdom, India and Hong Kong. Inter-segment transactions are accounted for on the same basis as sales to unaffiliated parties. Identifiable assets are those assets associated with a specific segment. There were no significant inter-segment sales. Substantially all sales were derived from plastic packaging products in 2001, 2000 and 1999.

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NOTE 10—SUBSEQUENT EVENT

        On March 25, 2002, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Enhance Packaging Technologies Inc., a Canadian corporation ("Enhance") and a wholly-owned subsidiary of DuPont Canada Inc., a Canadian corporation, and EPT Newco, Inc., an Ohio corporation and a wholly-owned subsidiary of Enhance ("EPT"). Under the Merger Agreement, Enhance has agreed to acquire all of the issued and outstanding shares of the Company pursuant to a cash merger transaction for US$67.00 per share, for a total purchase price of approximately US$333 million. Consummation of the Merger is subject to certain conditions, but is expected to be completed in the second quarter of 2002.

33

        (a)(2) The following consolidated financial statement schedule of Liqui-Box Corporation and Subsidiaries is included herein pursuant to Item 14(d) of this Report.

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS
(amounts rounded to the nearest thousand dollars)
LIQUI-BOX CORPORATION AND SUBSIDIARIES

Column A		Column B		Column C			Column D			Column E
				Additions
Description		Balance at Beginning of Period		Charged to Costs and Expenses		Charged to Other Accounts	Deductions (1)			Balance at End of Period
Reserves deducted from assets:
Fifty-two weeks ended December 29, 2001:
	Allowance for doubtful accounts	$	756,000	$	194,000		$	(345,000	)	$	605,000
Fifty-two weeks ended December 30, 2000:
	Allowance for doubtful accounts	$	730,000	$	26,000		$	0		$	756,000
Fifty-two weeks ended January 1, 2000:
	Allowance for doubtful accounts	$	946,000	$	186,000		$	(402,000	)	$	730,000

(1)

Uncollectible accounts written off, net of recoveries and other adjustments.

        Schedules other than those listed above are omitted because they are not required or are not applicable.

34

(a)

(3) Listing of Exhibits—The following exhibits are included herein pursuant to Item 14(c):

Exhibit No.	Description	Pages
2	Agreement and Plan of Merger	Filed herein
3A	Amended Articles of Incorporation of the Registrant as filed with the Ohio Secretary of State on December 14, 1995 are incorporated herein by reference to the Registrant's Form 10-K for the fiscal year ended December 30, 1995 filed with the Securities and Exchange Commission (Exhibit 3A)	N/A
3B	Code of Regulations, as amended, of the Registrant are incorporated herein by reference to the Registrant's Form 10-Q for the fiscal quarter ended July 1, 1995 filed with the Securities and Exchange Commission (Exhibit 3B)	N/A
3C	Amendment to Code of Regulations, as amended, approved by Shareholders on April 20, 2000 is incorporated herein by reference to the Registrant's Form 10-K for the fiscal year ended December 30, 2000 filed with the Securities and Exchange Commission (Exhibit 3C)	N/A
9	Voting Trust and Right of First Refusal Agreement, effective as of September 29, 1993, by and among Mary Ann Davis, Samuel B. Davis, as Voting Trustee, and Samuel B. Davis, individually, is incorporated herein by reference to Amendment No. 6 to Schedule 13D of Samuel B. Davis filed on March 6, 1995 (Exhibit 1).	N/A
10A*	1990 Liqui-Box Stock Option Plan is incorporated herein by reference to the Registrant's Form 10-Q for the fiscal quarter ended June 30, 1990 filed with the Securities and Exchange Commission (Exhibit 19(a)) (File number 0-8514).	N/A
10AA*	2000 Amendment to 1990 Liqui-Box Stock Option Plan dated September 26, 2000 is incorporated herein by reference to the Registrant's Form 10-K for the fiscal year ended December 30, 2000 filed with the Securities and Exchange Commission (Exhibit 10AA)	N/A
10B*	Summary of Profit Participation Program is incorporated herein by reference to the Registrant's Form 10-K for the fiscal year ended January 2, 1993 filed with the Securities and Exchange Commission (Exhibit 10E) (File number 0-8514).	N/A
10C	Executive Deferred Compensation Plan is incorporated herein by reference to the Registrant's Form 10-K for the fiscal year ended January 1, 2000 filed with the Securities and Exchange Commission (Exhibit 10C)	N/A
10D	LB Shares Stock Option Plan is incorporated herein by reference to the Registrant's Form 10-K for the fiscal year ended December 30, 2000 filed with the Securities and Exchange Commission (Exhibit 10D)	N/A
10E	Noncompetition and Nonsolicitation Agreement with Samuel N. Davis	Filed herein
10F	Noncompetition and Nonsolicitation Agreement with Samuel B. Davis	Filed herein
21	Subsidiaries of the Registrant	Filed herein
23	Independent Auditors' Consent and Report on Schedule (Deloitte & Touche LLP)	Filed herein
24	Powers of Attorney	Filed herein
99A	Shareholders Agreement	Filed herein

35

99B Press Release Filed herein

*

Indicates executive compensation plan or arrangement.

(b)

Reports on Form 8-K. None.

(c)

Exhibits filed with this Annual Report on Form 10-K are attached hereto—See Item 14(a)(3)

(d)

Financial Statement Schedules—See Item 14(a)(2)

36

SIGNATURES

        Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	LIQUI-BOX CORPORATION
Date: March 26, 2002	By:	/s/  SAMUEL B. DAVIS Samuel B. Davis Chairman of the Board, Chief Executive Officer, and Treasurer

        Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Date: March 26, 2002	By:	/s/  SAMUEL B. DAVIS Samuel B. Davis Chairman of the Board, Chief Executive Officer, and Treasurer, Treasurer and Director (Principal Executive and Financial Officer)
Date: March 26, 2002	By:	/s/  *SAMUEL N. DAVIS Samuel N. Davis Secretary and Director
Date: March 26, 2002	By:	/s/  *CHARLES R. COATE Charles R. Coate Director
Date: March 26, 2002	By:	/s/  *CARL J. ASCHINGER, JR. Carl J. Aschinger, Jr. Director
Date: March 26, 2002	By:	/s/  *RUSSELL M. GERTMENIAN Russell M. Gertmenian Director
Date: March 26, 2002	By:	/s/  *JOHN TROSTHEIM John Trostheim Director
Date: March 26, 2002	By:	/s/  *ROBERT L. ZIEG Robert L. Zieg Director
Date: March 26, 2002	By:	/s/  *ROBERT VALENTINE Robert Valentine Chief Financial Officer (Principal Accounting Officer)

*By Power of Attorney

By:	/s/  SAMUEL B. DAVIS
	Samuel B. Davis (Attorney-In-Fact)

37

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(Mark One)

PART I

Item 1. Business.
Item 2. Properties.
Item 3. Legal Proceedings
Item 4. Submission of Matters to a Vote of Security Holders

PART II

Item 5. Market for Registrant's Common Equity and Related Stockholder Matters
Item 6. Selected Financial Data
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation
Results of Operations
2001 Compared to 2000
2000 Compared to 1999
Liquidity and Capital Resources
Significant Accounting Policies
Effect of New European Currency
Comprehensive Income
New Accounting Standards
Forward-Looking Statements
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Foreign Currency Exchange Risk
Marketable Securities Risk
Interest Rate Risk
Item 8. Financial Statements and Supplementary Data
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

PART III

Item 10. Directors and Executive Officers of the Registrant
Directors of the Registrant
Executive Officers of the Registrant
Item 11. Executive Compensation

SUMMARY COMPENSATION TABLE
OPTIONS GRANTED IN THE LAST FISCAL YEAR
AGGREGATED OPTION EXERCISES IN LAST FISCAL YEAR AND FISCAL YEAR-END OPTION VALUES
DIRECTOR COMPENSATION

Item 12. Security Ownership of Certain Beneficial Owners and Management

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
SECURITY OWNERSHIP OF MANAGEMENT

Item 13. Certain Relationships and Related Transactions

TRANSACTIONS INVOLVING MANAGEMENT AND OTHERS
PART IV

Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K.

INDEPENDENT AUDITOR'S REPORT
Liqui-Box Corporation and Subsidiaries Consolidated Balance Sheets
Liqui-Box Corporation and Subsidiaries Consolidated Balance Sheets
Liqui-Box Corporation and Subsidiaries Consolidated Statements of Income and Comprehensive Income
Liqui-Box Corporation and Subsidiaries Consolidated Statements of Cash Flows
Liqui-Box Corporation and Subsidiaries Consolidated Statements of Stockholders Equity
Liqui-Box Corporation and Subsidiaries Notes to Consolidated Financial Statements December 29, 2001
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (amounts rounded to the nearest thousand dollars) LIQUI-BOX CORPORATION AND SUBSIDIARIES
SIGNATURES

EX-2

EX-10.(E)

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Exhibit 10(E)

NONCOMPETITION AND NONSOLICITATION AGREEMENT

NONCOMPETITION AND NONSOLICITATION AGREEMENT (this "Agreement") dated as of March 25, 2002, by and between Liqui-Box Corporation (the "Company") and Samuel N. Davis ("Davis").

WHEREAS, Davis is an executive and shareholder of the Company with significant policy making and operational responsibilities in the conduct of the Company's business;

WHEREAS, the parties hereto desire to ensure that upon the termination of Davis' employment with the Company (the "Termination"), Davis will not compete with the Company, disclose certain information about the Company or solicit employees or customers of the Company.

NOW, THEREFORE, the parties to this Agreement, intending to be legally bound, agree as follows:

        1.    Non-Competition.

        (a)  For a period of five (5) years following the Termination, Davis shall not, directly or indirectly, engage in (as principal, partner, director, officer, agent, employee, consultant, owner, independent contractor or otherwise, with or without compensation) or hold a financial interest in any business that constitutes a Competing Business (as defined below) operating worldwide.

        (b)  As used in this Section 1, a "Competing Business" shall be any business that, at the time of the Termination, engages in, or plans to engage in, the business of developing, producing, marketing or selling products of the kind or type developed or being developed, produced, marketed or sold by the Company prior to the Termination, including, but not limited to, companies in the liquid and food packaging industry such as Scholle, Winpak, Cryovac, Smurfit, TetraPak and Raypak.

        (c)  Notwithstanding the restrictions contained in this Section 1, Davis shall be permitted to own no more than one percent (1%) of the shares of any class of equity securities of a company which has a Competing Business whose securities are listed on a national securities exchange or quoted on The Nasdaq Stock Market.

        2.    Solicitation.    Davis agrees that for a period ending five (5) years following the Termination, he will not, either directly or indirectly:

        (a)  solicit the employment of any person who is employed by the Company at the time of the Termination, unless such person is involuntarily discharged by the Company; or

        (b)  solicit, divert or take away, or attempt to divert or to take away, the business or patronage of any of the current or prospective clients, customers or accounts of the Company as of the Termination.

        3.    Confidential Information.    Davis acknowledges that, prior to the Termination, he has had access to confidential information of the Company and its affiliates, including, without limitation, information and knowledge pertaining to research activities, products and services offered, inventions, innovations, designs, ideas, plans, trade secrets, proprietary information, advertising, sales methods and systems, sales and profit figures, customer lists and relationships between the Company and its customers, suppliers and others who have had or will have business dealings with the Company ("Confidential Information"). Davis acknowledges that such Confidential Information is a valuable and unique asset of the Company and covenants that he will not, after the Termination, disclose any such Confidential Information to, or use any such Confidential Information for the benefit of, any person or entity other than the Company and/or its affiliates for any reason whatsoever without the prior written authorization of the Company's Board of Directors, except as may be required by law. In the event that Davis is subject to a subpoena or other order of any governmental entity which might seek disclosure of Confidential Information, Davis shall furnish a copy of such subpoena or order to the Chief

Executive Officer of the Company as soon as practicable but in no event later than forty-eight (48) hours after his receipt of such subpoena or order. Confidential Information shall not include: (i) information known to Davis before he became employed by the Company; (ii) information in the public domain or known generally in the industry through no fault of Davis; and (iii) information that is not treated by the Company as confidential or is disclosed by the Company to third parties without a duty of confidentiality imposed on such third parties.

        4.    Consideration.    In consideration for Davis entering into the restrictive covenants set forth in Sections 1, 2 and 3 of this Agreement, the Company agrees to pay Davis U.S. $2,000,000, in cash, in a single lump sum, upon the Termination by wire transfer of immediately available funds to an account designated in writing by Davis.

        5.    Equitable Relief.

        (a)  Davis acknowledges that the restrictions contained in Sections 1, 2 and 3 of this Agreement, individually and collectively, are reasonable and necessary to protect the legitimate interests of the Company and that any material violation of any provision of those Sections will result in irreparable injury to the Company. Davis further represents and acknowledges that: (i) he has been advised by the Company to consult with his own legal counsel in respect to this Agreement; and (ii) that he has, prior to execution of this Agreement, reviewed thoroughly this Agreement with his counsel.

        (b)  Davis agrees that the Company shall be entitled to preliminary and permanent injunctive relief, without the necessity of proving actual damages, as well as to an equitable accounting of all earnings, profits and other benefits arising from any violation of Sections 1, 2 and 3 above, which rights shall be cumulative and in addition to any other rights or remedies to which the Company may be entitled. In the event that any of the provisions of Sections 1, 2 and 3 above should ever be adjudicated to exceed the time, geographic, product, service or other limitations permitted by applicable law in any jurisdiction, then such provisions shall be deemed reformed in such jurisdiction to the maximum time, geographic, product, service or other limitations permitted by applicable law.

        (c)  The parties irrevocably and unconditionally: (i) agree that any suit, action or other legal proceeding arising out of this Agreement, including, without limitation, any action commenced by the Company for preliminary and/or permanent injunctive relief and/or other equitable relief, may be brought in any court of competent jurisdiction in Ohio; (ii) consent to the jurisdiction of any such court in any such suit, action or proceeding; and (iii) waive any objection which such party may have to the laying of venue of any such suit, action or proceeding in any such court.

        6.    Power and Authority.    Each of the parties hereto represents that it has the due corporate or individual power and authority to enter into this Agreement.

        7.    Miscellaneous.

        (a)  Notwithstanding any other provision in this Agreement, the provisions set forth in Sections 1, 2, 3 and 5 of this Agreement shall be binding on Davis, and shall inure to the benefit of the Company and any of its respective successors or assigns.

        (b)  This Agreement shall be governed by and interpreted under the laws of the State of Ohio, without giving effect to the principles of conflicts of laws thereof.

        (c)  This Agreement supersedes all prior agreements regarding noncompetition, nonsolicitation and nondisclosure between the Company and Davis, and sets forth the entire understanding between the parties hereto with respect to the subject matter hereof. This Agreement may not be changed, modified, extended or terminated except upon written amendment executed by Davis and the Company.

2

        (d)  The language of this Agreement shall be construed in accordance with its fair meaning and not for or against any party. The parties acknowledge that each party and its counsel have reviewed and had the opportunity to participate in the drafting of this Agreement and, accordingly, that the rule of construction that would resolve ambiguities in favor of non-drafting parties shall not apply to the interpretation of this Agreement or any portion of this Agreement.

        (e)  All payments under this Agreement shall be made subject to applicable federal, state, and local tax withholdings.

        (f)    All section headings are for convenience only. This Agreement may be executed in several counterparts, each of which is an original.

        [signature page to follow]

3

IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this Agreement as of the date(s) written below.

Attest	LIQUI-BOX CORPORATION
_________________________, Secretary	By: /s/ Stewart M. Graves
	Name: Stewart M. Graves
	Title: Chief Operating Officer and President
Date:	Date: 3/25/02
Witness:
/s/ Shelia S. Davis	/s/ Samuel N. Davis
	Samuel N. Davis
Date: 3/25/02	Date: 3/25/02

4

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Exhibit 10(E)

NONCOMPETITION AND NONSOLICITATION AGREEMENT

EX-10.(F)

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Exhibit 10(F)

NONCOMPETITION AND NONSOLICITATION AGREEMENT

NONCOMPETITION AND NONSOLICITATION AGREEMENT (this "Agreement") dated as of March 25, 2002, by and between Liqui-Box Corporation (the "Company") and Samuel B. Davis ("Davis").

WHEREAS, Davis is an executive and shareholder of the Company with significant policy making and operational responsibilities in the conduct of the Company's business;

WHEREAS, the parties hereto desire to ensure that upon the termination of Davis' employment with the Company (the "Termination"), Davis will not compete with the Company, disclose certain information about the Company or solicit employees or customers of the Company.

NOW, THEREFORE, the parties to this Agreement, intending to be legally bound, agree as follows:

        1.    Non-Competition.

        (a)  For a period of five (5) years following the Termination, Davis shall not, directly or indirectly, engage in (as principal, partner, director, officer, agent, employee, consultant, owner, independent contractor or otherwise, with or without compensation) or hold a financial interest in any business that constitutes a Competing Business (as defined below) operating worldwide.

        (b)  As used in this Section 1, a "Competing Business" shall be any business that, at the time of the Termination, engages in, or plans to engage in, the business of developing, producing, marketing or selling products of the kind or type developed or being developed, produced, marketed or sold by the Company prior to the Termination, including, but not limited to, companies in the liquid and food packaging industry such as Scholle, Winpak, Cryovac, Smurfit, TetraPak and Raypak.

        (c)  Notwithstanding the restrictions contained in this Section 1, Davis shall be permitted to own no more than one percent (1%) of the shares of any class of equity securities of a company which has a Competing Business whose securities are listed on a national securities exchange or quoted on The Nasdaq Stock Market.

        2.    No Solicitation.    Davis agrees that for a period ending five (5) years following the Termination, he will not, either directly or indirectly:

        (a)  solicit the employment of any person who is employed by the Company at the time of the Termination, unless such person is involuntarily discharged by the Company; or

        (b)  solicit, divert or take away, or attempt to divert or to take away, the business or patronage of any of the current or prospective clients, customers or accounts of the Company as of the Termination.

        3.    Confidential Information.    Davis acknowledges that, prior to the Termination, he has had access to confidential information of the Company and its affiliates, including, without limitation, information and knowledge pertaining to research activities, products and services offered, inventions, innovations, designs, ideas, plans, trade secrets, proprietary information, advertising, sales methods and systems, sales and profit figures, customer lists and relationships between the Company and its customers, suppliers and others who have had or will have business dealings with the Company ("Confidential Information"). Davis acknowledges that such Confidential Information is a valuable and unique asset of the Company and covenants that he will not, after the Termination, disclose any such Confidential Information to, or use any such Confidential Information for the benefit of, any person or entity other than the Company and/or its affiliates for any reason whatsoever without the prior written authorization of the Company's Board of Directors, except as may be required by law. In the event that Davis is subject to a subpoena or other order of any governmental entity which might seek disclosure

of Confidential Information, Davis shall furnish a copy of such subpoena or order to the Chief Executive Officer of the Company as soon as practicable but in no event later than forty-eight (48) hours after his receipt of such subpoena or order. Confidential Information shall not include: (i) information known to Davis before he became employed by the Company; (ii) information in the public domain or known generally in the industry through no fault of Davis; and (iii) information that is not treated by the Company as confidential or is disclosed by the Company to third parties without a duty of confidentiality imposed on such third parties.

        4.    Consideration.    In consideration for Davis entering into the restrictive covenants set forth in Sections 1, 2 and 3 of this Agreement, the Company agrees to pay Davis U.S. $4,000,000, in cash, in a single lump sum, upon the Termination by wire transfer of immediately available funds to an account designated in writing by Davis.

        5.    Equitable Relief.

        (a)  Davis acknowledges that the restrictions contained in Sections 1, 2 and 3 of this Agreement, individually and collectively, are reasonable and necessary to protect the legitimate interests of the Company and that any material violation of any provision of those Sections will result in irreparable injury to the Company. Davis further represents and acknowledges that: (i) he has been advised by the Company to consult with his own legal counsel in respect to this Agreement; and (ii) that he has, prior to execution of this Agreement, reviewed thoroughly this Agreement with his counsel.

        (b)  Davis agrees that the Company shall be entitled to preliminary and permanent injunctive relief, without the necessity of proving actual damages, as well as to an equitable accounting of all earnings, profits and other benefits arising from any violation of Sections 1, 2 and 3 above, which rights shall be cumulative and in addition to any other rights or remedies to which the Company may be entitled. In the event that any of the provisions of Sections 1, 2 and 3 above should ever be adjudicated to exceed the time, geographic, product, service or other limitations permitted by applicable law in any jurisdiction, then such provisions shall be deemed reformed in such jurisdiction to the maximum time, geographic, product, service or other limitations permitted by applicable law.

        (c)  The parties irrevocably and unconditionally: (i) agree that any suit, action or other legal proceeding arising out of this Agreement, including, without limitation, any action commenced by the Company for preliminary and/or permanent injunctive relief and/or other equitable relief, may be brought in any court of competent jurisdiction in Ohio; (ii) consent to the jurisdiction of any such court in any such suit, action or proceeding; and (iii) waive any objection which such party may have to the laying of venue of any such suit, action or proceeding in any such court.

        6.    Power and Authority.    Each of the parties hereto represents that it has the due corporate or individual power and authority to enter into this Agreement.

        7.    Miscellaneous.

        (a)  Notwithstanding any other provision in this Agreement, the provisions set forth in Sections 1, 2, 3 and 5 of this Agreement shall be binding on Davis, and shall inure to the benefit of the Company and any of its respective successors or assigns.

        (b)  This Agreement shall be governed by and interpreted under the laws of the State of Ohio, without giving effect to the principles of conflicts of laws thereof.

        (c)  This Agreement supersedes all prior agreements regarding noncompetition, nonsolicitation and nondisclosure between the Company and Davis, and sets forth the entire understanding between the parties hereto with respect to the subject matter hereof. This

2

Agreement may not be changed, modified, extended or terminated except upon written amendment executed by Davis and the Company.

        (d)  The language of this Agreement shall be construed in accordance with its fair meaning and not for or against any party. The parties acknowledge that each party and its counsel have reviewed and had the opportunity to participate in the drafting of this Agreement and, accordingly, that the rule of construction that would resolve ambiguities in favor of non-drafting parties shall not apply to the interpretation of this Agreement or any portion of this Agreement.

        (e)  All payments under this Agreement shall be made subject to applicable federal, state, and local tax withholdings.

        (f)    All section headings are for convenience only. This Agreement may be executed in several counterparts, each of which is an original.

        [signature page to follow]

3

IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this Agreement as of the date(s) written below.

Attest	LIQUI-BOX CORPORATION
/s/ Samuel N. Davis, Secretary	By: /s/ Stewart M. Graves
	Name: Stewart M. Graves
	Title: Chief Operating Officer and President
Date: 3/25/02	Date: 3/25/02
Witness:
	/s/ Samuel B. Davis
	Samuel B. Davis
Date:	Date: March 25, 2002

4

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Exhibit 10(F)

NONCOMPETITION AND NONSOLICITATION AGREEMENT

EX-21

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Exhibit (21)

SUBSIDIARIES OF THE REGISTRANT

LIQUI-BOX CORPORATION AND SUBSIDIARIES
FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 29, 2001

Subsidiaries	Jurisdiction of Incorporation	Percentage of Voting Securities Owned by Voting Securities the Registrant
Commander Systems, Inc.	Ohio	100%
Liqui-Box Packaging, Inc.	Ohio	100%
Liqui-Box India Ltd.	India	100%
LB Communications, Inc.	Ohio	100%
LB Development Corp.	Ohio	100%
LB Investments, Inc.	Delaware	100%
LB Europe Limited	England	100%
Inpaco Corporation	Ohio	100%
Liqui-Box International, Inc.	Ohio	100%
Liqui-Box International, Corp.	Barbados	100%
Liqui-Box of Canada, Ltd.	Canada	100%
Liqui-Box Asia Ltd.	Hong Kong	100%

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Exhibit (21)

SUBSIDIARIES OF THE REGISTRANT LIQUI-BOX CORPORATION AND SUBSIDIARIES FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 29, 2001

EX-23

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Exhibit (23)

INDEPENDENT AUDITORS' CONSENT AND REPORT ON SCHEDULE

        We consent to the incorporation by reference in Registration Statements No. 33-35815, No. 33-35816, No. 33-35817, and No. 33-42452 of Liqui-Box Corporation on Form S-8 of our report dated March 15, 2002 (March 26, 2002 as to Note 10) included in this Annual Report on Form 10-K of Liqui-Box Corporation for the year ended December 29, 2001.

        Our audits of the consolidated financial statements referred to in our aforementioned report also included the consolidated financial statement schedule of Liqui-Box Corporation, listed in Item 14(a). This consolidated financial statement schedule is the responsibility of the Company's management. Our responsibility is to express an opinion based on our audits. In our opinion, such consolidated financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

/s/ Deloitte & Touche LLP

DELOITTE & TOUCHE LLP

Columbus, Ohio

March 26, 2002

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Exhibit (23)

INDEPENDENT AUDITORS' CONSENT AND REPORT ON SCHEDULE

EX-24

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Exhibit 24

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned officer and/or director of LIQUI-BOX CORPORATION, an Ohio corporation, which is about to file with the Securities and Exchange Commission, Washington, D. C., under the provisions of the Securities Exchange Act of 1934, as amended, an Annual Report on Form 10-K, hereby constitutes and appoints Samuel N. Davis his/her true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him/her and in his/her name, place and stead, in any and all capacities, to sign such Report and any or all amendments or documents related thereto, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent, and substitute or substitutes, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes and he/she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them or their or his/her substitute or substitutes may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand and seal as of this 23rd day of March, 2002.

/s/  SAMUEL B. DAVIS


Samuel B. Davis
Chairman of the Board, Chief Executive
Officer and Director

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned officer and/or director of LIQUI-BOX CORPORATION, an Ohio corporation, which is about to file with the Securities and Exchange Commission, Washington, D. C., under the provisions of the Securities Exchange Act of 1934, as amended, an Annual Report on Form 10-K, hereby constitutes and appoints Samuel B. Davis his/her true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him/her and in his/her name, place and stead, in any and all capacities, to sign such Report and any or all amendments or documents related thereto, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent, and substitute or substitutes, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes and he/she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them or their or his/her substitute or substitutes may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand and seal as of this 23rd day of March, 2002.

/s/  SAMUEL N. DAVIS


Samuel N. Davis
Secretary and Director

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POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned officer and/or director of LIQUI-BOX CORPORATION, an Ohio corporation, which is about to file with the Securities and Exchange Commission, Washington, D. C., under the provisions of the Securities Exchange Act of 1934, as amended, an Annual Report on Form 10-K, hereby constitutes and appoints Samuel B. Davis and Samuel N. Davis his/her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him/her and in his/her name, place and stead, in any and all capacities, to sign such Report and any or all amendments or documents related thereto, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and substitute or substitutes, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes and he/she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them or their or his/her substitute or substitutes may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand and seal as of this 23rd day of March, 2002.

/s/  JOHN TROSTHEIM


John Trostheim
Director

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POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned officer and/or director of LIQUI-BOX CORPORATION, an Ohio corporation, which is about to file with the Securities and Exchange Commission, Washington, D. C., under the provisions of the Securities Exchange Act of 1934, as amended, an Annual Report on Form 10-K, hereby constitutes and appoints Samuel B. Davis and Samuel N. Davis his/her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him/her and in his/her name, place and stead, in any and all capacities, to sign such Report and any or all amendments or documents related thereto, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and substitute or substitutes, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes and he/she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them or their or his/her substitute or substitutes may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand and seal as of this 23rd day of March, 2002.

/s/  CHARLES R. COATE


Charles R. Coate
Director

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POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned officer and/or director of LIQUI-BOX CORPORATION, an Ohio corporation, which is about to file with the Securities and Exchange Commission, Washington, D. C., under the provisions of the Securities Exchange Act of 1934, as amended, an Annual Report on Form 10-K, hereby constitutes and appoints Samuel B. Davis and Samuel N. Davis his/her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him/her and in his/her name, place and stead, in any and all capacities, to sign such Report and any or all amendments or documents related thereto, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and substitute or substitutes, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes and he/she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them or their or his/her substitute or substitutes may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand and seal as of this 23rd day of March, 2002.

/s/  ROBERT L. ZIEG


Robert L. Zieg
Director

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POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned officer and/or director of LIQUI-BOX CORPORATION, an Ohio corporation, which is about to file with the Securities and Exchange Commission, Washington, D. C., under the provisions of the Securities Exchange Act of 1934, as amended, an Annual Report on Form 10-K, hereby constitutes and appoints Samuel B. Davis and Samuel N. Davis his/her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him/her and in his/her name, place and stead, in any and all capacities, to sign such Report and any or all amendments or documents related thereto, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and substitute or substitutes, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes and he/she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them or their or his/her substitute or substitutes may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand and seal as of this 23rd day of March, 2002.

/s/  CARL J. ASCHINGER, JR.


Carl J. Aschinger, Jr.
Director

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POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned officer and/or director of LIQUI-BOX CORPORATION, an Ohio corporation, which is about to file with the Securities and Exchange Commission, Washington, D. C., under the provisions of the Securities Exchange Act of 1934, as amended, an Annual Report on Form 10-K, hereby constitutes and appoints Samuel B. Davis and Samuel N. Davis his/her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him/her and in his/her name, place and stead, in any and all capacities, to sign such Report and any or all amendments or documents related thereto, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and substitute or substitutes, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes and he/she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them or their or his/her substitute or substitutes may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand and seal as of this 23rd day of March, 2001.

/s/  RUSSELL M. GERTMENIAN


Russell M. Gertmenian
Director

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POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned officer and/or director of LIQUI-BOX CORPORATION, an Ohio corporation, which is about to file with the Securities and Exchange Commission, Washington, D. C., under the provisions of the Securities Exchange Act of 1934, as amended, an Annual Report on Form 10-K, hereby constitutes and appoints Samuel B. Davis and Samuel N. Davis his/her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him/her and in his/her name, place and stead, in any and all capacities, to sign such Report and any or all amendments or documents related thereto, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and substitute or substitutes, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes and he/she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them or their or his/her substitute or substitutes may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand and seal as of this 23rd day of March, 2002.

/s/  ROBERT VALENTINE


Robert Valentine
Principal Accounting Officer

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EX-99.(A)

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Exhibit 99(A)

SHAREHOLDERS AGREEMENT

        This Shareholders Agreement (this "Agreement"), dated as of March 25, 2002, among the persons listed on Schedule 1 hereto (each, a "Holder" and, collectively, the "Holders"), Enhance Packaging Technologies Inc., a Canadian corporation (the "Parent"), and EPT Newco, Inc., an Ohio corporation and a wholly owned subsidiary of the Parent (the "Merger Subsidiary").

WHEREAS, the Parent, the Merger Subsidiary and Liqui-Box Corporation, an Ohio corporation (the "Company"), are entering into an Agreement and Plan of Merger (the "Merger Agreement"), dated as of the date hereof, which provides for the merger of the Merger Subsidiary into the Company, with the Company surviving (the "Merger");

WHEREAS, each Holder owns the number of common shares, without par value, of the Company (the "Shares") or options to purchase Shares (the "Stock Options" and, collectively with the Shares, the "Optioned Securities"), or has the right to vote the number of Shares or other securities (the "Voting Securities"), listed opposite the name of such Holder on Schedule 1;

WHEREAS, the board of directors of the Company has unanimously, with the exception of the Holders, who abstained, approved this Agreement, the Merger Agreement and the Merger and the transactions contemplated hereby and thereby in accordance with the Ohio General Corporation Law, including but not limited to specifically for purposes of Chapter 1704 thereof;

WHEREAS, the Parent and the Merger Subsidiary have required, as a condition to entering into the Merger Agreement, that the Holders enter into this Agreement; and

WHEREAS, the Holders believe that it is in the best interest of the Company and its shareholders to induce the Parent and the Merger Subsidiary to enter into the Merger Agreement and, therefore, the Holders are willing to enter into this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements set forth herein and such other valuable consideration the receipt of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

        1.    The Option.    Each Holder hereby grants the Parent or the Merger Subsidiary an irrevocable option to purchase all of the Shares held by such Holder at a price of $67.00 per share and all of the Stock Options held by such Holder at a price equal to the excess of $67.00 per share over the applicable exercise price per share, payable in cash, without interest (the "Option"); provided, however, that, if the price per share paid by the Parent or the Merger Subsidiary to other shareholders in connection with the Merger is more than $70.18, the price per Share and price per Stock Option paid by the Parent or the Merger Subsidiary to the Holders shall be adjusted so that the Holders also receive the difference between such higher price and $67.00; and provided, further, that, if, prior to the consummation of the Merger, in connection with an Acquisition Transaction (as defined in the Merger Agreement) other than the Merger, the Parent or the Merger Subsidiary sells any of the Optioned Securities purchased by the Parent or the Merger Subsidiary from the Holders for a price per Share or price per Stock Option in excess of the price per Share or price per Stock Option paid by the Parent or the Merger Subsidiary to the Holders, as adjusted, or any of the Optioned Securities purchased by the Parent or the Merger Subsidiary from the Holders are cancelled in exchange for the right to receive from a third party not related to the Parent or the Merger Subsidiary an amount in cash in excess of the price per Share or price per Stock Option paid by the Parent or the Merger Subsidiary to the Holders, as adjusted, the price per Share and price per Stock Option paid by the Parent or the Merger Subsidiary to the Holders shall be further adjusted so that the Holders also receive the difference between such higher price or amount and the price per Share or price per Stock Option paid to them by the Parent or the Merger Subsidiary.

        2.    Exercise of the Option; Term.

        (a)  On the terms and subject to the conditions of this Agreement, the Parent or the Merger Subsidiary may exercise the Option at any time after the date on which all waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act"), and the antitrust, competition, foreign investment or similar laws of any foreign countries or supranational commissions or boards that require pre-merger notifications or filings with respect to the Merger (collectively, "Foreign Merger Laws") applicable to the Merger have expired or been terminated, by written notice to each Holder specifying a date and time for the closing not later than thirty (30) business days from the date of such notice (which date and time may be one day after the delivery of such notice).

        (b)  As used in this Agreement, "person" shall have the meaning specified in Sections 3(a)(9) and 13(d)(3) of the Exchange Act. Notwithstanding any other provision of this Agreement or the Merger Agreement any reference to beneficial ownership of Shares or similar references shall exclude from the determination thereof any Shares issuable upon exercise of or subject to this Agreement.

        (c)  The Option shall expire on the earliest of (1) the Effective Time (as defined in Section 2.3 of the Merger Agreement), (2) August 30, 2002 and (3) the date on which the Parent notifies the holders in writing that it no longer intends to acquire control of the Company (such earliest date being referred to in this Agreement as the "Expiration Date"); provided that, if the Option cannot be exercised or the Optioned Securities cannot be delivered to the Merger Subsidiary upon such exercise because (x) there shall be in effect a preliminary or permanent injunction or other order issued by any federal or state court of competent jurisdiction prohibiting delivery of the Optioned Securities or (y) any applicable waiting periods under the HSR Act or Foreign Merger Laws shall not have expired or been terminated, then the Expiration Date shall be extended until thirty (30) days after such impediment to exercise or delivery has been removed.

        3.    Closing.    Any closing hereunder shall take place on the date specified by the Parent or the Merger Subsidiary at the offices of Ballard Spahr Andrews & Ingersoll, LLP, 1735 Market Street, Philadelphia, Pennsylvania (the "Closing Date"). On the Closing Date:

        (a)  against delivery of the Optioned Securities, free and clear of all liens, claims, charges and encumbrances of any kind or nature whatsoever, the Parent shall or shall cause the Merger Subsidiary to make payment of the aggregate consideration for each Holder's Optioned Securities by wire transfer of immediately available funds to such Holder; and

        (b)  each Holder shall deliver to the Parent or the Merger Subsidiary a duly executed stock certificate or certificates or evidence of option grant representing the number of Optioned Securities purchased from such Holder, together with transfer powers endorsed in blank relating to such certificates or grants and, if requested by the Parent or the Merger Subsidiary, an irrevocable proxy duly executed by such Holder, authorizing such persons as the Parent or the Merger Subsidiary shall designate to act for such Holder as his lawful agents, attorneys and proxies, with full power of substitution, to vote in such manner as each such agent, attorney and proxy or his substitute shall in his sole discretion deem proper, and otherwise act with respect to the Optioned Securities at any meeting (whether annual or special and whether or not an adjourned meeting) of the Company's Holders or otherwise, and revoking any prior proxies granted by such Holder with respect to the Holder's Optioned Securities.

        4.    Voting of Equity Securities.    Each Holder hereby agrees that, during the period from the date of this Agreement until the expiration of this Agreement, at any meeting of the shareholders of the Company, however called, and in any action by written consent of the shareholders of the Company, he shall (a) vote all Voting Securities with respect to which such Holder then has the right to vote in favor

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of the Merger; (b) not vote any Voting Securities with respect to which such Holder then has the right to vote in favor of any action or agreement which would result in a breach in any material respect of any covenant, representation or warranty or any other obligation of the Company under the Merger Agreement; and (c) vote all Voting Securities with respect to which such Holder then has the right to vote against any action or agreement which would impede, interfere with or attempt to discourage the Merger, including, but not limited to: (i) any proposal opposed by the Parent or the Merger Subsidiary; (ii) any Acquisition Proposal (other than the Merger) involving the Company or any of its subsidiaries; (iii) any change in the management or board of directors of the Company, except as otherwise agreed to in writing by the Merger Subsidiary; (iv) any material change in the present capitalization or dividend policy of the Company; or (v) any other material change in the Company's corporate structure or business. In the event that either Holder does not comply with the foregoing sentence, such Holder shall be deemed to have hereby irrevocably appointed designees of the Parent or the Merger Subsidiary, its attorneys, agents and proxies, with full power of substitution, for the undersigned and in the name, place and stead of the undersigned to vote in such manner as such attorneys, agents and proxies or their substitutes shall in their sole discretion deem proper and otherwise act, including the execution of written consents, with respect to all Voting Securities of the Company which the undersigned is or may be entitled to vote at any meeting of the Company held after the date hereof, whether annual or special and whether or not an adjourned meeting, or in respect of which the undersigned is or may be entitled to act by written consent. This proxy shall be coupled with an interest and shall be irrevocable and binding on any successor in interest of the applicable undersigned Holder. This proxy shall operate to revoke any prior proxy as to Voting Securities heretofore granted by the Holder and shall terminate upon the expiration of this Agreement.

        5.    Covenants of the Holders.

        (a)  During the period from the date of this Agreement until the expiration of this Agreement, except in accordance with the provisions of this Agreement, each Holder severally and not jointly agrees that he will not:

(i)

sell, sell short, transfer, pledge, hypothecate, assign or otherwise dispose of, or enter into any contract, option, hedging arrangement or other arrangement or understanding with respect to the sale, transfer, pledge, hypothecation, assignment or other disposition of, any Optioned Securities or Voting Securities over which such Holder has dispositive power;



(ii)

deposit any Optioned Securities or Voting Securities over which such Holder has dispositive power into a voting trust, or grant any proxies or enter into a voting agreement with respect to any Optioned Securities or Voting Securities over which such Holder has dispositive power; or



(iii)

initiate, solicit or encourage, directly or indirectly, any inquiries or the making or implementation of any proposal that constitutes, or may reasonably be expected to lead to, any Acquisition Proposal (as defined in the Merger Agreement) or enter into discussions or negotiate with any person or entity in furtherance of such inquiries or to obtain an Acquisition Proposal, or agree to or endorse any Acquisition Proposal; except that any Holder who is a member of the board of directors of the Company may conduct himself in the manner expressly permitted under Section 7.2 of the Merger Agreement.

        (b)  Any additional Shares, Stock Options, warrants or other securities or rights exercisable for, exchangeable for or convertible into Shares (collectively, "Equity Securities") acquired by any Holder, or with respect to which any Holder obtains voting power, will become subject to this Agreement and shall, for all purposes of this Agreement, be considered Optioned Securities or Voting Securities, as the case may be.

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        (c)  Each Holder agrees not to engage in any action or omit to take any action which would have the effect of preventing or disabling such Holder from delivering his Optioned Securities to the Parent or the Merger Subsidiary or otherwise performing his obligations under this Agreement. To the extent that any Optioned Securities (other than Shares) may not be assigned by such Holder to the Parent or the Merger Subsidiary without exercising, exchanging or converting such Optioned Securities for or into Shares, each Holder agrees to exercise, exchange or convert such Optioned Securities for or into Shares prior to the closing of the purchase of such Optioned Securities upon exercise of the Option.

        6.    Representations and Warranties of each Holder.    Each Holder severally and not jointly represents and warrants to Parent and the Merger Subsidiary as follows:

        (a)  (i) such Holder is the record or beneficial owner of the Optioned Securities, or has the right to vote the Voting Securities, listed opposite the name of such Holder on Schedule 1, (ii) such Optioned Securities or Voting Securities are the only Equity Securities owned of record or beneficially by such Holder or in which such Holder has any interest or which such Holder has the right to vote, as the case may be, and (iii) such Holder does not have any option or other right to acquire any other Equity Securities;

        (b)  such Holder has the right, power and authority to execute and deliver this Agreement and to perform his obligations hereunder; the execution, delivery and performance of this Agreement by such Holder will not require the consent of any other person and will not constitute a violation of, conflict with or result in a default under (i) any contract, understanding or arrangement to which such Holder is a party or by which such Holder is bound, (ii) any judgment, decree or order applicable to such Holder or (iii) to the Holder's knowledge, any law, rule or regulation of any governmental body applicable to such Holder; and this Agreement constitutes a valid and binding agreement on the part of such Holder, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, moratorium or other similar laws relating to creditors' rights and general principles of equity;

        (c)  to the Holder's knowledge, any Shares included in the Optioned Securities owned by such Holder have been validly issued and are fully paid and nonassessable and any Shares issuable upon exercise of the Stock Options, when issued and upon payment of the exercise price therefor, will be validly issued, fully paid and nonassessable;

        (d)  except as set forth on Schedule 1, the Optioned Securities owned by such Holder are now, and at all times during the term of this Agreement will be, held by such Holder free and clear of all adverse claims, liens, encumbrances and security interests, and none of the Optioned Securities are subject to any voting trust or other agreement or arrangement (except as created by this Agreement) with respect to the voting or disposition of the Optioned Securities; and there are no outstanding options, warrants or rights to purchase or acquire, or agreements (except for this Agreement) relating to, such Optioned Securities; and

        (e)  upon purchase of the Optioned Securities owned by such Holder, the Parent or the Merger Subsidiary will obtain good and marketable title to such Optioned Securities, free and clear of all adverse claims, liens, encumbrances and security interests (except any created by the Merger Subsidiary).

        7.    Effect of Representations, Warranties and Covenants of the Holders.    The representations, warranties and covenants of the Holders shall be several and not joint. The liability of each individual Holder shall extend only to the representations, warranties and covenants of such Holder and not to any representation, warranty or covenant of any other Holder.

        8.    Representations and Warranties of the Parent and the Merger Subsidiary.    Each of the Parent and the Merger Subsidiary represents and warrants to each Holder that: it is a corporation duly

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incorporated under the laws of Canada and the State of Ohio, respectively; it has all requisite corporate power and authority to enter into and perform all its obligations under this Agreement; the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on its part; this Agreement has been duly executed and delivered by it; and this Agreement constitutes a valid and binding agreement on its part, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, moratorium or other similar laws relating to creditors' rights and general principles of equity.

        9.    Adjustments.    In the event of any increase or decrease or other change in the Optioned Securities by reason of stock dividend, stock split, recapitalizations, combinations, exchanges of shares or the like, the number of Optioned Securities and Voting Securities subject to this Agreement shall be adjusted appropriately.

        10.    Restrictions on Transfer.    As soon as practicable after the execution of this Agreement, each Holder shall instruct the transfer agent to place a stop transfer order on its records with respect to such Holder's Optioned Securities or place the following legend s on the certificates representing such Holder's Optioned Securities:

        "The Securities represented by this certificate are subject to certain transfer and other restrictions contained in a Shareholders Agreement, dated as of March 25, 2002, among Enhance Packaging Technologies Inc., a Canadian corporation, EPT Newco, Inc., an Ohio corporation, and certain stockholders of the Corporation."

        11.    Resignations.    Samuel B. Davis and Samuel N. Davis agree to resign from the board of directors of the Company and as officers of the Company prior to the Effective Time.

        12.    Governing Law.    This Agreement shall be governed by and construed in accordance with the law of the State of Delaware without regard to its rules of conflict of laws.

        13.    VENUE.    THE PARTIES HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF DELAWARE AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN THE COUNTY OF NEW CASTLE, DELAWARE SOLELY IN RESPECT OF THE INTERPRETATION AND ENFORCEMENT OF THE PROVISIONS OF THIS AGREEMENT AND OF THE OTHER DOCUMENTS REFERRED TO IN THIS AGREEMENT, AND IN RESPECT OF THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY, AND HEREBY WAIVE, AND AGREE NOT TO ASSERT, AS A DEFENSE IN ANY ACTION, SUIT OR PROCEEDING FOR THE INTERPRETATION OR ENFORCEMENT HEREOF OR OF ANY SUCH DOCUMENT, THAT IT IS NOT SUBJECT THERETO OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE IN SAID COURTS OR THAT THE VENUE THEREOF MAY NOT BE APPROPRIATE OR THAT THIS AGREEMENT OR ANY SUCH DOCUMENT MAY NOT BE ENFORCED IN OR BY SUCH COURTS, AND THE PARTIES HERETO IRREVOCABLY AGREE THAT ALL CLAIMS WITH RESPECT TO SUCH ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN SUCH A DELAWARE STATE OR FEDERAL COURT. THE PARTIES HEREBY CONSENT TO AND GRANT ANY SUCH COURT JURISDICTION OVER THE PERSON OF SUCH PARTIES AND OVER THE SUBJECT MATTER OF SUCH DISPUTE AND AGREE THAT MAILING OF PROCESS OR OTHER PAPERS IN CONNECTION WITH ANY SUCH ACTION OR PROCEEDING IN THE MANNER PROVIDED IN SECTION 18 OR IN SUCH OTHER MANNER AS MAY BE PERMITTED BY LAW, SHALL BE VALID AND SUFFICIENT SERVICE THEREOF.

        14.    Waiver of Conflicts.    Each Holder severally acknowledges and represents that (i) Vorys, Sater, Seymour and Pease LLP has in the past and may continue to perform legal services for the Company and certain of the Holders in matters unrelated to the transactions described in this Agreement;

5

(ii) Vorys, Sater, Seymour and Pease LLP is representing both the Company and the Holders in the transaction contemplated by this Agreement; (iii) they have been given the opportunity to ask for information relevant to the representation by Vorys, Sater, Seymour and Pease LLP of both the Company and the Holders in connection with the transaction contemplated by this Agreement. Each Holder represents that, after such disclosure, each Holder has requested that Vorys, Sater, Seymour and Pease LLP represent such Holder in connection with the transactions contemplated by this Agreement and each of the Holders hereby gives its informed consent to the representation by Vorys, Sater, Seymour and Pease LLP of both the Company and the Holders in connection with the transactions contemplated hereby.

        15.    Further Assurances.    Each party hereto shall perform such further acts and execute such further documents as may reasonably be required to carry out the provisions of this Agreement.

        16.    Assignment.    This Agreement may not be assigned by any party hereto, except that the Parent or the Merger Subsidiary may assign their respective rights and obligations under this Agreement to any of their respective wholly owned subsidiaries or affiliates.

        17.    Remedies.    The parties agree that legal remedies for breach of this Agreement will be inadequate and that this Agreement may be enforced by the Parent and the Merger Subsidiary by injunctive relief, specific performance or other equitable remedies.

        18.    Notices.    All notices or other communications required or permitted hereunder shall be in writing (except as otherwise provided herein) and shall be deemed duly given if delivered in person, by confirmed facsimile transmission or by overnight courier service, addressed as follows:

        To the Parent or the Merger Subsidiary:

Enhance Packaging Technologies Inc.
7070 Mississauga Rd.
Mississauga, Ontario L5N 5M8
Attention: General Counsel
Fax: (905) 821-5651

        With a copy to:

Ballard Spahr Andrews & Ingersoll, LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
Attention: Justin P. Klein, Esq.
Fax: (215) 864-8999

        To each Holder:

At the address set forth on the
signature pages hereto

        With copies to:

Vorys, Sater, Seymour and Pease LLP
52 East Gay Street, P.O. Box 1008
Columbus, OH 43216-1008
Attention: Ronald A. Robins, Jr.,
Esq. Fax: (614) 464-6350

        19.    Severability.    If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance

6

of the transactions contemplated hereby is not affected in any manner adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.

        20.    Binding Effect; Benefits.    This Agreement shall survive the death or incapacity of any Holder and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, legal representatives, successors and permitted assigns. Nothing in this Agreement, expressed or implied, is intended to or shall confer on any person other than the parties hereto and their respective heirs, legal representatives and successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement.

        21.    Termination.    This Agreement shall commence on the date hereof and terminate upon the expiration of the Option.

        22.    Counterparts.    This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same agreement.

[Signatures appear on the following pages.]

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        IN WITNESS WHEREOF, the Parent, the Merger Subsidiary and the Holders have entered into this Agreement as of the date first written above.

ENHANCE PACKAGING TECHNOLOGIES INC.
By:	/s/  ASH SAHI Name: Ash Sahi Title: President and Chief Executive Officer

EPT NEWCO, INC.
By:	/s/  ASH SAHI Name: Ash Sahi Title: President and Chief Executive Officer

[Remainder of page intentionally left blank]

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HOLDERS:

/s/  S. B. DAVIS Samuel B. Davis, individually, as Trustee under the Samuel B. Davis 2002 Grantor Retained Annuity Trust, as Trustee under the Samuel B. Davis Revocable Trust, as Successor Trustee under the Davis Family Trust and as Voting Trustee under that certain Voting Trust and Right of First Refusal Agreement dated as of September 29, 1993

/s/  SAMUEL N. DAVIS Samuel N. Davis

Address for all Holders:

c/o Liqui-Box Corporation
6950 Worthington-Galena Road
Worthington, Ohio 43085
Fax: 614-888-0982

GUARANTEE OF DUPONT CANADA INC.

        DuPont Canada Inc., on behalf of itself and its successors and assigns, hereby guarantees the obligations of the Parent and the Merger Subsidiary and their successors and assigns with respect to this agreement.

DUPONT CANADA INC.
By:	/s/  DAVE W. COLCLEUGH Name: Dave W. Colcleugh Title: Chairman, President and Chief Executive           Officer

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SCHEDULE 1

Name	Shares		Stock Options		Voting Securities
Samuel B. Davis	957,310(1	)	359,739(2	)	1,496,728(3	)
Samuel N. Davis	80,395(4	)	110,547(5	)	82,378(4	)(6)

(1)

Includes (i) 500,000 shares held by S. B. Davis as trustee under the Samuel B. Davis 2002 Grantor Retained Annuity Trust, (ii) 293,939 shares held by S. B. Davis as trustee under the Samuel B. Davis Revocable Trust, and (iii) 163,371 shares held by S. B. Davis as Successor Trustee under the Davis Family Trust F/B/O Samuel B. Davis.

(2)

Of this number, 158,005 represent common shares underlying options that are currently exercisable and may be sold as of the date hereof under Section 1 of this Agreement, and 201,734 represent common shares underlying options that are not currently exercisable but will become exercisable upon a "change of control" of the Company (as defined in the applicable stock option plan) and thereafter could be sold pursuant to the terms of Section 1 of this Agreement.

(3)

Includes (i) 500,000 shares held by S. B. Davis as trustee under the Samuel B. Davis 2002 Grantor Retained Annuity Trust, (ii) 293,939 shares held by S. B. Davis as trustee under the Samuel B. Davis Revocable Trust, (iii) 85,649 shares held for the account of S. B. Davis under the Company's ESOP and 401(k) plan, (iv) 163,371 shares held by S. B. Davis as Successor Trustee under the Davis Family Trust F/B/O Samuel B. Davis, (v) 163,371 shares held by S. B. Davis as Successor Trustee under the Davis Family Trust F/B/O Joan Guylas, (vi) 163,371 shares held by S. B. Davis as Successor Trustee under the Davis Family Trust F/B/O Jane Ferger and (vii) 127,027 shares deposited with S. B. Davis in his capacity as voting trustee of a trust that expires on September 29, 2003.

(4)

Does not include 10,360 shares held in an indirect trust as to which S. N. Davis has no voting power and shared investment power.

(5)

Of this number, 20,359 represent common shares underlying options that are currently exercisable and may be sold as of the date hereof under Section 1 of this Agreement, and 90,188 represent common shares underlying options that are not currently exercisable but will become exercisable upon a "change of control" of the Company (as defined in the applicable stock option plan) and thereafter could be sold pursuant to the terms of Section 1 of this Agreement.

(6)

Includes 1,983 shares held for the account of S. N. Davis under the Company's ESOP and 401(k) plan.

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Exhibit 99(A)

SHAREHOLDERS AGREEMENT
GUARANTEE OF DUPONT CANADA INC.
SCHEDULE 1

EX-99.(B)

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Exhibit 99(B)

For immediate release

DuPont Canada to acquire Liqui-Box Corporation

Highlights

•

Establishes DuPont Canada as a global leader in the liquid packaging systems market, with a presence in all regions of the world, by creating a Cdn $400 million company;



•

Accretive acquisition expected to contribute to DuPont Canada's earnings in the first 12 months of combined operations;



•

Strong strategic fit of complementary technologies, products, customers and markets positions DuPont Canada for accelerated growth; and



•

Combined business to operate as Liqui-Box, a DuPont Canada company.

Mississauga, Ontario and Worthington, Ohio (March 26, 2002)—DuPont Canada Inc. (TSE: DUP.A), a leading diversified science company, and Liqui-Box Corporation (NASDAQ: LIQB), a leading manufacturer of packaging systems for pumpable food products for institutional applications, today announced the signing of an agreement for DuPont Canada's wholly owned subsidiary, Enhance Packaging Technologies Inc., to acquire all of the outstanding common shares of Liqui-Box, pursuant to a cash merger transaction, at US$67 per share, for a total purchase price of approximately US$333 million. The transaction is expected to close in May or June, subject to regulatory and Liqui-Box shareholder approval.

DuPont Canada will bring together Liqui-Box's business with that of Enhance, which also provides packaging systems for pumpable foods for retail applications. The new entity will operate as Liqui-Box, a DuPont Canada company, under the leadership of Ash Sahi, Enhance's President and CEO, with operations in North America, South America, Europe and Asia and more than 1,000 employees. The transaction will immediately position DuPont Canada as a leading provider of liquid packaging systems.

"Our agreement with Liqui-Box demonstrates the progress of our long-term strategy to continually reinvent and expand the scope of our business in food, polymers, and safety and security," said Dave Colcleugh, Chairman, President and CEO, DuPont Canada Inc. "It also supports our long-standing commitment to deliver rapid, sustainable growth in value for all stakeholders."

Samuel B. Davis, Chairman of the Board of Liqui-Box, commented, "The acquisition by DuPont Canada is good news for Liqui-Box's customers, suppliers, employees and shareholders. The resulting entity should be a solid, international company with strong capabilities in aseptic and refrigerated liquid food packaging systems, and with significant long-term growth potential. DuPont Canada's cash offer is an attractive opportunity for Liqui-Box shareholders to realize significant value for their shares."

The Liqui-Box board of directors and a special committee of disinterested directors have received an opinion from their financial advisor, McDonald Investments Inc., that the consideration to be received by the shareholders of Liqui-Box is fair from a financial point of view. Liqui-Box's board of directors and the special committee have determined that the acquisition is fair to and in the best interests of the shareholders of Liqui-Box, and have resolved to recommend to shareholders that they approve the transaction. Samuel B. Davis and his son, Samuel N. Davis, who have voting control over approximately 38% of the outstanding common shares on the date hereof, have entered into an agreement with DuPont Canada pursuant to which they have given DuPont Canada an option to buy their shares and have agreed to vote shares under their control in favour of the transaction.

DuPont Canada's subsidiary Enhance Packaging is a world-leading supplier of cost-effective and environmentally friendly turnkey pouch technology solutions for pumpable food and liquid packaging, primarily for the retail market. Specific examples include the milk bag in Canada and the Mini-Sip™ in

the US market. In May 2001, DuPont Canada acquired Prepac of France, a pioneer in liquid packaging systems and equipment as well as a long-time supplier to Enhance. DuPont Canada's innovative aseptic technology preserves the freshness of beverages and food for up to one year without refrigeration.

Liqui-Box is a leading manufacturer and supplier of packaging systems for liquids and other pumpable food products to institutional customers through its operations in the US, UK and India. The company's flexible packaging systems are used for everyday products such as soft drink syrups, dairy products, bulk ketchup and mustard and other foods for restaurants, fast food chains and institutions across North America and Europe.

Additionally, Liqui-Box is a profitable cash flow generator and has a solid balance sheet. For the fiscal year ended December 29, 2001, Liqui-Box posted revenue of US$145.2 million, with net earnings of US$13.5 million, or US$3.01 per fully diluted common share.

"As a well-managed company with world-class technology platforms and a 40-year brand heritage, Liqui-Box is well positioned to serve leading blue-chip food companies," Mr. Colcleugh continued. "We expect to realize significant synergies, increased revenue and expanded capabilities, all of which will deliver greater value to customers and shareholders while accelerating DuPont Canada's momentum in the global liquid packaging industry."

Added Ash Sahi, President and Chief Executive Officer of Enhance, "Existing and new customers will benefit from a broader product offering and DuPont Canada's continuing commitment to R&D and high quality customer service. For employees, we expect the internationalization of operations to create additional career and professional development opportunities."

Liqui-Box's and Enhance's product portfolio and technologies, as well as their complementary market presence, will enable the combined unit to offer complete turnkey systems for the liquid packaging of beverages, dairy products or pumpable foods, in retail as well as institutional applications, anywhere in the world.

Lehman Brothers Inc. and CCFL Advisory Services Inc. have advised DuPont Canada regarding this transaction.

Investment Community and Media Information

DuPont Canada Inc. and Liqui-Box management will hold a conference call on Tuesday, March 26, 2002 at 10 a.m. (EST). In North America, the numbers to call to listen to the teleconference are 416-695-5801 or 1-800-478-9326. International callers should dial the country access code, available from their local operator, followed by 800-3276-6311. To access the simultaneous live audio webcast, please visit www.dupont.ca or www.newswire.ca/webcast. Participants will require Windows Media Player™, which can be downloaded prior to accessing the call. A taped rebroadcast will be available to listeners following the call until April 2, 2002 at midnight. To access the rebroadcast, please dial 416-695-5800 or 1-800-408-3053, and enter the passcode 1118653.

Following the analyst conference call, there will also be a question and answer session for the media at 11:30 a.m. (EDT). Media in North America who wish to participate should dial 416-695-5806 or 1-800-273-9672. International media should dial the country access code, followed by 800-3276-6333.

About DuPont Canada Inc.:

        DuPont Canada Inc. is a diversified science company, serving customers across Ontario, Canada, and in more than 40 other countries. Headquartered in Mississauga, the company operates manufacturing facilities at seven sites in Canada and one in France, with more than 3,300 employees. For more information about DuPont Canada, please visit the company's website at http://www.dupont.ca.

About Enhance Packaging Technologies Inc.:

Based in Whitby, Ontario, Canada, Enhance Packaging Technologies Inc., which includes Prepac of France, supplies films and systems to a wide range of customers including dairies, drink beverage producers, food producers, film converters and industrial customers in 30 countries. Brands include Enhance® flexible packaging systems, SclairFilm® polyethylene films, Dartek® nylon films and Vexar® netting. Enhance is also the Canadian master distributor of Mylar® polyester films. Recognized for its technological leadership, breadth of product offerings and superior quality and service, Enhance is committed to helping its customers succeed.

About Liqui-Box Corporation:

Liqui-Box Corporation is a leading manufacturer of dispensing packaging systems for liquids and other flowable products, serving the bottled water, beverage, dairy, pharmaceutical, processed food and wine industries. The company specializes in packages with unique dispensing capabilities to be used wherever convenient, airtight, sanitary storage, and delivery of products are critical. Liqui-Box's principal products include rigid blow-molded containers, flexible bag-in-box containers, pouch containers, and customized filling systems. The company operates nine production facilities in the US, one in the UK and one in India.

Forward-Looking Statements:    This news release contains forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents which may be filed by DuPont Canada with the Ontario Securities Commission and/or the Toronto Stock Exchange, or by Liqui-Box Corporation with U.S. Securities and Exchange Commission, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales of agricultural products.

In connection with the above-described transactions, Liqui-Box Corporation intends to file a proxy statement and other materials with the Securities and Exchange Commission. Security holders are urged to read the proxy statement and these other materials when they become available because they will contain important information. Security holders may obtain a free copy of the proxy statement and these other materials when they become available, as well as other materials filed with the Securities and Exchange Commission concerning Liqui-Box Corporation, at the Securities and Exchange Commission's web site at http://www.sec.gov. Security holders of Liqui-Box Corporation may also obtain for free the proxy statement and other documents filed by Liqui-Box Corporation with the Securities and Exchange Commission in connection with the above-described transactions by directing a request to Liqui-Box Corporation at 6950 Worthington-Galena Road, Worthington, Ohio 43085, Attention: President.

Liqui-Box Corporation and its directors and executive officers may be deemed to be participants in the solicitation of proxies from Liqui-Box Corporation shareholders with respect to the merger. Information regarding these directors and executive officers and their ownership of Liqui-Box Corporation common stock is contained in Liqui-Box Corporation's Annual Report on Form 10-K for the fiscal year ended

December 30, 2000. Additional information regarding these directors and executive officers and their interests will be included in the proxy statement

# # #

For additional information, please contact:

DuPont Canada Inc.	Liqui-Box Corporation
Investors:	Investors:
Michael Oxley	Stewart Graves
Treasurer and Director, Finance	President
DuPont Canada Inc.	Liqui-Box Corporation
(905) 821-5320	(614) 888-9280
Media: Richard Gareau Manager, Public Affairs DuPont Canada Inc. (905) 821-5623

The DuPont Oval is a registered trademark of E.I. du Pont de Nemours and Company. DuPont Canada Inc. is a licensee.

Dartek®, Enhance™, Mini-Sip™ and Vexar® are trademarks of Enhance Packaging Technologies Inc.

Mylar is a registered trademark of DuPont Teijin Films.

SclairFilm® is a registered trademark of Nova Chemicals Corporation. Used under license.

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Exhibit 99(B)
For immediate release

DuPont Canada to acquire Liqui-Box Corporation

Highlights
About DuPont Canada Inc.
About Enhance Packaging Technologies Inc.
About Liqui-Box Corporation
For additional information, please contact