Agreement and Plan of Merger (2001)Full Document 

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                          AGREEMENT AND PLAN OF MERGER

                                   DATED AS OF

                                JANUARY 21, 2001

                                      AMONG

                             TUSCARORA INCORPORATED,

                        SCA PACKAGING INTERNATIONAL B.V.

                                       AND

                             SCA PACKAGING USA, INC.
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                                TABLE OF CONTENTS



                                                                                                                        PAGE
                                                                                                                     
ARTICLE I             DEFINITIONS...............................................................................          1

ARTICLE II            THE MERGER................................................................................          5

         2.01              The Merger...........................................................................          5

         2.02              Organizational Documents.............................................................          6

         2.03              Directors and Officers...............................................................          6

ARTICLE III           CONVERSION OF SECURITIES AND RELATED MATTERS..............................................          6

         3.01              Conversion of Capital Stock..........................................................          6

         3.02              Exchange of Certificates and Cash....................................................          7

         3.03              Dissenting Shares....................................................................          8

         3.04              Tuscarora Stock Options, Phantom Shares and Tuscarora Common Stock Purchase
                           Plan.................................................................................          8

ARTICLE IV            REPRESENTATIONS AND WARRANTIES OF TUSCARORA...............................................          9

         4.01              Corporate Existence and Power........................................................          9

         4.02              Corporate Authorization..............................................................          9

         4.03              Governmental Authorization...........................................................         10

         4.04              Non-Contravention....................................................................         10

         4.05              Capitalization.......................................................................         10

         4.06              Subsidiaries.........................................................................         11

         4.07              Tuscarora SEC Documents..............................................................         11

         4.08              Financial Statements; No Material Undisclosed Liabilities............................         12

         4.09              Proxy Statement......................................................................         12

         4.10              Absence of Certain Changes...........................................................         13

         4.11              Litigation...........................................................................         13

         4.12              Taxes................................................................................         13

         4.13              Employee Benefits....................................................................         13

         4.14              Compliance with Laws; Licenses, Permits and Registrations............................         15

         4.15              Title to Properties..................................................................         15

         4.16              Intellectual Property................................................................         16

         4.17              Environmental Matters................................................................         16

         4.18              Finders' Fees; Opinions of Financial Advisor.........................................         17

         4.19              Required Vote; Board Approval........................................................         17

         4.20              State Takeover Statutes; Rights Agreement............................................         18

         4.21              Labor Matters........................................................................         18

         4.22              Year 2000............................................................................         18

         4.23              Certain Contracts....................................................................         19




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                                                                                                                        PAGE
                                                                                                                     
ARTICLE V             REPRESENTATIONS AND WARRANTIES OF SCA PACKAGING...........................................         19

         5.01              Corporate Existence and Power........................................................         19

         5.02              Corporate Authorization..............................................................         19

         5.03              Governmental Authorization...........................................................         19

         5.04              Non-Contravention....................................................................         20

         5.05              Litigation...........................................................................         20

         5.06              Proxy Statement......................................................................         20

         5.07              Finders' Fees........................................................................         20

ARTICLE VI            COVENANTS OF TUSCARORA....................................................................         20

         6.01              Tuscarora Interim Operations.........................................................         20

         6.02              Shareholder Meeting..................................................................         23

         6.03              Acquisition Proposals; Board Recommendation..........................................         23

ARTICLE VII           COVENANTS OF SCA PACKAGING................................................................         25

         7.01              Director and Officer Liability.......................................................         25

         7.02              Conduct of SCA Acquisition...........................................................         26

ARTICLE VIII          COVENANTS OF SCA PACKAGING AND TUSCARORA..................................................         26

         8.01              Reasonable Best Efforts..............................................................         26

         8.02              Certain Filings; Cooperation in Receipt of Consents..................................         26

         8.03              Public Announcements.................................................................         27

         8.04              Access to Information; Notification of Certain Matters...............................         27

         8.05              Further Assurances...................................................................         28

         8.06              Confidentiality......................................................................         28

         8.07              Legal Opinion........................................................................         28

         8.08              Employment Continuation Agreements...................................................         28

ARTICLE IX            CONDITIONS TO THE MERGER..................................................................         28

         9.01              Conditions to the Obligations of Each Party..........................................         28

         9.02              Conditions to the Obligations of Tuscarora...........................................         29

         9.03              Conditions to the Obligations of SCA Packaging and SCA Acquisition...................         29

ARTICLE X             TERMINATION...............................................................................         30

         10.01             Termination..........................................................................         30

         10.02             Effect of Termination................................................................         31

         10.03             Fees and Expenses....................................................................         31

ARTICLE XI            MISCELLANEOUS.............................................................................         32

         11.01             Notices..............................................................................         32




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                                                                                                                        PAGE
                                                                                                                     
         11.02             Survival of Representations, Warranties and Covenants after the Effective Time.......         33

         11.03             Amendments; No Waivers...............................................................         33

         11.04             Successors and Assigns...............................................................         33

         11.05             Governing Law........................................................................         33

         11.06             Counterparts; Effectiveness; Third Party Beneficiaries...............................         33

         11.07             Waiver of Jury Trial.................................................................         34

         11.08             Enforcement..........................................................................         34

         11.09             Entire Agreement.....................................................................         34




                                    EXHIBITS

Exhibit A - Opinion of Reed Smith




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                          AGREEMENT AND PLAN OF MERGER

         AGREEMENT AND PLAN OF MERGER dated as of January 21, 2001 (the
"Agreement"), among TUSCARORA INCORPORATED, a Pennsylvania corporation
("Tuscarora"), SCA PACKAGING INTERNATIONAL B.V., a company organized under the
laws of the kingdom of the Netherlands ("SCA Packaging"), and SCA PACKAGING USA,
INC., a Pennsylvania corporation and an indirect wholly-owned subsidiary of SCA
Packaging's ultimate parent company ("SCA Acquisition").

                                    RECITALS

         WHEREAS, the Boards of Directors of Tuscarora and SCA Packaging each
have determined that a business combination between Tuscarora and SCA
Acquisition is advisable and in the best interests of their respective companies
and shareholders, and presents an opportunity for their respective companies to
achieve long-term strategic and financial benefits, and accordingly have agreed
to effect the merger provided for herein upon the terms and subject to the
conditions set forth herein;

         WHEREAS, by resolutions duly adopted, the respective Boards of
Directors of Tuscarora, SCA Packaging and SCA Acquisition have approved and
adopted this Agreement and the transactions contemplated hereby.

         NOW, THEREFORE, in consideration of the foregoing, and of the
representations, warranties, covenants and agreements contained herein, and
intending to be legally bound, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         (a) As used herein, the following terms have the following meanings:

         "Acquisition Proposal" means any offer or proposal for, or indication
of interest in, a merger, consolidation, share exchange, business combination,
reorganization, recapitalization, liquidation, dissolution or other similar
transaction involving, or any direct or indirect purchase of 15% or more of the
assets or any purchase or sale of, or tender offer or exchange offer for, 15% or
more of any class of equity securities of, Tuscarora or any Tuscarora Subsidiary
other than the transactions contemplated by this Agreement.

         "Affiliate" means, with respect to any Person, any other Person,
directly or indirectly, controlling, controlled by, or under common control
with, such Person. For purposes of this definition, the term "control"
(including the correlative terms "controlling", "controlled by" and "under
common control with") means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract, or otherwise.

         "Applicable Law" shall mean all applicable federal, state, local,
municipal, foreign, international, multinational, or other administrative order,
constitution, law, ordinance, principle of common law, regulation, statute or
treaty and in the case of Tuscarora or any Tuscarora Subsidiary any judgment or
decree applicable to Tuscarora or any Tuscarora Subsidiary or any of their
assets or properties.

         "Articles Amendment" means the Amendment to the Articles of
Incorporation of Tuscarora, pursuant to which Tuscarora's Restated Articles of
Incorporation will be amended to provide that Subchapter E of Chapter 25 of the
PBCL (Sections 2541 to 2548) will not be applicable to Tuscarora.
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         "Business Day" means any day other than a Saturday, Sunday or one on
which banks are authorized by law to close in New York, New York.

         "Code" means the Internal Revenue Code of 1986, as amended.

         "Employment Agreements" means the employment agreements between
Tuscarora and John P. O'Leary, Jr., between Tuscarora and David C. O'Leary and
between Tuscarora and Brian C. Mullins, and entered into contemporaneously
herewith and dated January 19, 2001.

         "Employment Continuation Agreements" means the employment agreements to
be offered by Tuscarora to certain officers of Tuscarora in substantially the
form included as Exhibit 6.01A to the Tuscarora Disclosure Schedule.

         "Environmental Law" means any Applicable Law of any Governmental Entity
relating to human health, safety or protection of the environment or to
emissions, discharges, releases or threatened releases of pollutants,
contaminants or Hazardous Materials in the environment (including, without
limitation, ambient air, surface water, ground water, land surface or subsurface
strata), or otherwise relating to the treatment, storage, disposal, transport or
handling of any pollutant, contaminant or Hazardous Material.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.

         "Governmental Entity" means any federal, state or local governmental
authority, any transgovernmental authority or any court, administrative or
regulatory agency or commission or other governmental authority or agency,
domestic or foreign.

         "Hazardous Material" means (A) any petroleum or petroleum products,
radioactive materials, asbestos in any form that is or could become friable,
urea formaldehyde foam insulation and transformers or other equipment that
contain dielectric fluid containing levels of polychlorinated biphenyls (PCBs);
(B) any chemicals, materials, substances or wastes which are now or hereafter
become defined as or included in the definition of "hazardous substances,"
"hazardous wastes," "hazardous materials," "extremely hazardous wastes,"

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