DEFERRED COMPENSATION PLAN FOR OUTSIDE DIRECTORS OF SONOCO PRODUCTS COMPANY

STATEMENT OF PURPOSE

3

DEFINITIONS

4 – 5

ELIGIBILTY AND PARTICIPATION

6

DEFERRED COMPENSATION ELECTIONS

7 – 8

CREDITS TO DEFERRAL ACCOUNTS

9 – 10

ADMINISTRATIVE COMMITTEE & CLAIMS

11 – 12

AMENDMENT AND TERMINATION

13

MISCELLANEOUS

14 – 15

CONSTRUCTION

16

1.

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

2.

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

3.

“Director”: Any person who is serving on the Board of Directors and is not an employee of the Company or any of its subsidiaries.

4.

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

5.

“Separation from Service”: The date of termination of a Director’s active service with the Company as defined under code section 409A.

6.

“Plan”: The Deferred Compensation Plan for Outside Directors 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.

“Director’s Fees”: Retainer fees and meeting fees.

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.

Any Director of the Company who is not also an employee of the Company is eligible to participate in the plan.

2.

The Director may elect to defer receipt of all or a specified part of the compensation payable to the Director for serving on the Board of Directors or committees of the Board of Directors of the Company.

3.

An eligible Director participates in the plan by irrevocably electing on an annual basis, in the manner specified herein, to defer future Director’s Fees earned for which the related services commence in the calendar year following the year in which the election is made. Participation commences 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 Director’s Fees to be deferred commence.

1.

A Director electing to defer payment of fees may elect deferral to be invested in the Interest Account and/or the Stock Equivalent Account.

2.

Subject to such limitations as the Committee may impose, a Director electing to defer hereunder shall also elect at the same time as his deferral election, a Fixed Payment Period commencing six months following the Director’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 Director 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 a Director has made a particular election with respect to a deferral shall not preclude such Director from making different elections with respect to new elections to defer fees covering 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.

1.

Deferred compensation shall be credited to