DEFERRED COMPENSATION PLAN FOR KEY EMPLOYEES OF SONOCO PRODUCTS COMPANY

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1.

“Company” : Sonoco Products Company, a South Carolina Corporation, and Corporate successors.

2.

“Committee” : The Administrative Committee appointed by the Board of Directors of the Company to administer this plan.

3:

“Key Employee”: Any person who is serving as an officer of the Company.

4:

“Participant” : A Key Employee or former Key Employee who has deferred fees hereunder and has a credit balance in his deferred compensation account.

5.

“Separation from Service” : The date of termination of an employee’s active service, for reasons other than death, with the Company, which for this purpose includes all companies that would be considered a single employer under Section 414(b) of the Internal Revenue Code (“Code”) applying a standard of “at least 50 percent” instead of “at least 80 percent” as provided in the regulations to Section 409A of the Code.

6.

“Plan” : The Deferred Compensation Plan for Key Employees of Sonoco Products Company as contained herein, and as may be amended from time to time hereafter, together with any election forms that the Committee requires a Participant to complete.

7.

“Plan Year” : The period commencing January 1 and ending December 31.

8.

“Stock Equivalent Account” : The account described in Article V.

9.

“Interest Account” : The account described in Article V.

10.

“Compensation” : Salary and annual incentive compensation.

11.

“Fixed Payment Period ”: The period of years over which annual payments are made to a Participant following his Separation from Service or upon his death preceding his Separation from Service.

1.

Key Employees of the Company are eligible to become participants in the plan, subject to approval of the Board of Directors.

2.

An eligible Key Employee participates in the plan by irrevocably electing on an annual basis, in the manner specified herein, to defer future Compensation earned for which the related services commence in the calendar year following the year in which the election is made.

3.

An eligible Key Employee may elect to defer up to fifty (50) percent of salary and up to fifty (50) percent of annual incentive earned during the year for which the deferral choice is made.

4.

An eligible Key Employee becomes a Participant in the Plan upon the execution and delivery of a Deferred Compensation Agreement. Such Agreement must be executed (and must become irrevocable) in all cases on or before December 31 preceding the calendar year in which the services related to the Compensation to be deferred commence.

1.

A Participant electing to defer payment of compensation may elect his deferrals to be invested in the Interest Account and/or the Stock Equivalent Account.

2.

Subject to such limitations as the Committee may impose, a Participant electing to defer hereunder shall also elect at the same time as his deferral election, a Fixed Payment Period commencing six months following the Participant’s Separation from Service over which the amount deferred under such election shall be paid to him in annual installments and a Fixed Payment Period (which may be a different period) over which the unpaid portion of the amount deferred shall be paid to his beneficiary or estate in annual installments in the event of his death before Separation from Service occurs. Finally, the participant may elect to have the unpaid portion of the amount deferred paid in a lump sum to his beneficiary or estate in the event of his death following a Separation of Service.

3.

Any Fixed Payment Period Election to defer compensation shall be irrevocable and may not be changed or modified thereafter by a Participant or the Company.

4.

The fact that the Participant has made a particular election with respect to a deferral shall not preclude such Participant from making different elections with respect to new deferrals covering a future period of service.

5.

In the event of a Fixed Payment Period commencing due to a Separation from Service, the initial amount due shall be paid six months following Separation from Service. In the event of a Fixed Payment Period commencing due to a Participant’s death prior to a Separation from Service, the initial payment amount due shall be

paid upon death (or on such later date permitted under the regulations to Code Section 409A). The amount of any payment during a Fixed Payment Period shall equal the unpaid balance of the amount deferred (including any earnings thereon) immediately preceding the payment date divided by the number of annual payments remaining in the Fixed Payment Period (including the payment that is about to be made).

6.

Upon consummation of a Change in Control that qualifies under 409A, all amounts credited to the Stock Equivalent Account and/or Interest Account (along with any amounts deferred but not yet credited to these accounts up to the date of payment), shall be paid in a lump sum payment to the Participant within 30 days following the Change in Control.