Document:

Document

Exhibit 10.1

Sonoco Retirement and Savings Plan
(Amended and Restated as of January 1, 2022)

Contents
						
	Article 1. The Plan
	1

	1.1 Establishment of Plan
	1

	1.2 Applicability of Plan
	2

	1.3 Purpose of Plan
	2

	Article 2. Definitions
	3

	2.1 Account
	3

	2.2 Affiliate
	5

	2.3 After-Tax Contributions
	6

	2.4 Annuity Starting Date
	6

	2.5 Before-Tax Contributions
	6

	2.6 Beneficiary
	6

	2.7 Board
	6

	2.8 Cares Act
	6

	2.9 Code
	6

	2.10 Collectively-Bargained Nonelective Employer Contributions
	6

	2.11 Committee
	6

	2.12 Company
	6

	2.13 Company Stock
	6

	2.14 Compensation
	7

	2.15 Eligible Employee
	9

	2.16 Employee
	11

	2.17 Employer
	12

	2.18 Employment Commencement Date
	12

	2.19 ERISA
	12

	2.20 Fund
	12

	2.21 Highly Compensated Employee
	12

	2.22 Investment Council
	13

	2.23 Leased Employee
	13

	2.24 Matching Contributions
	13

	2.25 Member
	13

	2.26 Nonhighly Compensated Employee
	13

	2.27 Participant
	14

	2.28 Pay Reduction Agreement
	14

	2.29 Plan
	14

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	2.30 Plan Year
	14

	2.31 Predecessor Plan
	14

	2.32 Preretirement Survivor Annuity
	14

	2.33 Qualified Joint and Survivor Annuity
	14

	2.34 Qualified Optional Survivor Annuity
	14

	2.35 Retirement Contributions
	14

	2.36 Secure Act
	15

	2.37 Single Life Annuity
	15

	2.38 Social Security Wage Base
	15

	2.39 Spouse
	15

	2.40 Ten-Year Certain and Life Annuity
	15

	2.41 Trust Agreement
	15

	2.42 Trust Fund
	15

	2.43 Trustee
	15

	2.44 Valuation Date
	16

	2.45 Vested Balance
	16

	2.46 Vested Percentage
	16

	2.47 Vesting Service
	16

	Article 3. Vesting Service
	17

	3.1 Elapsed Time Vesting Service
	17

	3.2 Hours-Based Vesting Service
	19

	3.3 Military Service
	23

	Article 4. Eligibility and Enrollment
	24

	4.1 Eligibility
	24

	4.2 Enrollment
	26

	4.3 Transfers of Employment
	27

	4.4 Participation upon Reemployment
	28

	Article 5. Contributions and Allocations
	30

	5.1 Before-Tax Contributions
	30

	5.2 After-Tax Contributions
	31

	5.3 Matching Contributions
	31

	5.4 Retirement Contributions
	32

	5.5 Collectively-Bargained Nonelective Employer Contributions
	33

	5.6 Rollover Contributions
	34

	5.7 Pay Reduction Agreements
	35

	5.8 Limitations on Contributions
	36

	5.9 Limitation on Annual Additions
	41

	Article 6. Investment Funds
	43

	6.1 Investment of Contributions
	43

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	6.2 Investment Transfers
	44

	6.3 Sonoco Stock Fund
	44

	6.4 Plan Expenses
	45

	6.5 Valuation; Allocation of Investment Earnings and Losses
	45

	6.6 Compliance with ERISA Section 404(c)
	46

	Article 7. Vesting
	47

	7.1 Immediate Vesting in Certain Contributions
	47

	7.2 Vesting Schedules for Matching Contributions
	47

	7.3 Vested Percentage in Retirement Contributions.
	48

	7.4 Vested Percentage in Collectively-Bargained Nonelective Employer Contributions.
	48

	7.5 Accelerated Vesting.
	50

	7.6 Forfeitures
	50

	7.7 Treatment of Forfeitable Amounts
	50

	7.8 Transfer of Employment.
	51

	Article 8. Distributions
	52

	8.1 Entitlement to Distribution upon Death of Member
	52

	8.2 Distribution upon Separation from Service for Reasons Other Than Death
	53

	8.3 Form of Benefit Payments
	53

	8.4 Time of Benefit Payments
	55

	8.5 Distribution of Tuscarora Money Purchase Pension Plan Account Balances
	56

	8.6 In-Service Withdrawals
	62

	8.7 Restrictions on Distributions
	65

	8.8 Direct Transfers
	68

	8.9 Rehired Member
	70

	8.10 Distributions on Account of Military Service
	70

	Article 9. Loans to Members
	72

	9.1 Committee Authorized to Make Loans
	72

	9.2 Amount of Loans
	72

	9.3 Interest
	73

	9.4 Term
	73

	9.5 Repayment
	73

	9.6 Loans Treated as Plan Investments
	74

	9.7 Documents
	74

	Article 10. Amendment and Termination
	76

	10.1 Amendment and Termination
	76

	10.2 Vesting on Termination or Partial Termination
	76

	10.3 Merger, Consolidation, or Transfer
	76

	Article 11. Administration
	77

	11.1 Plan Administrator and Fiduciary
	77

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	11.2 Specialists and Expenses
	78

	11.3 Records
	78

	11.4 Manner of Action
	79

	11.5 Assistance
	79

	11.6 Administration
	80

	11.7 Appeals from Denial of Claims
	80

	11.8 Notice of Address and Missing Persons
	81

	11.9 Data and Information for Benefits
	82

	11.10 Effect of a Mistake
	82

	11.11 Indemnity for Liability
	82

	Article 12. Trust Arrangements
	83

	12.1 Appointment of Trustee
	83

	12.2 Removal of Trustee; Appointment of Other Trustee
	83

	12.3 Change in Trust Agreements
	83

	12.4 Trust Fund
	83

	12.5 Reversion of Employer Contributions
	83

	Article 13. Top-Heavy Plan Provisions
	85

	13.1 Top-Heavy Determination
	85

	13.2 Definitions
	86

	13.3 Vesting Requirements
	87

	13.4 Minimum Contribution
	87

	13.5 Union Employees
	88

	Article 14. Participation in and Withdrawal from Plan by an Affiliate
	89

	14.1 Participation in Plan
	89

	14.2 Withdrawal from Plan
	89

	Article 15. Miscellaneous
	91

	15.1 Incompetency
	91

	15.2 Nonalienation of Benefits
	91

	15.3 No Guarantee of Employment
	91

	15.4 Applicable Law
	91

	15.5 Severability
	92

	15.6 Rights to Trust Assets
	92

	15.7 Military Service
	92

	15.8 Titles
	92

Appendix A. Participating Employers     87

    iv    

Appendix B. Collectively-Bargained Participants—Plan Benefits Other than Retirement Contributions    89
Appendix C. Collectively-Bargained Participants—Plan Provisions Related to Retirement Contributions    99        
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Article 1. The Plan

1.1 Establishment of Plan
Sonoco Products Company, a C corporation (the “Company”), previously established the Sonoco Savings Plan which has been renamed the Sonoco Retirement and Savings Plan for the benefit of its Eligible Employees and the Eligible Employees of participating Affiliates. The following plans have been merged into this Plan:
(a)    Effective January 3, 2012, the Clear Pack Company 401(k) Retirement Plan; 
(b)    Effective December 15, 2012, the Sonoco and Investment Retirement Plan;
(c)    Effective January 1, 2013, the Tegrant Investment and Retirement Plan; 
(d)    Effective May 1, 2014, The Norske Skog 401(k) Plan (sponsored by Reparco USA); 
(e)    Effective March 1, 2017, the Plastic Packaging, Inc. 401(k) Plan and the Plastic Packaging, Inc. Profit Sharing Plan;
(f)    Effective January 1, 2018, the Peninsula Packaging, LLC 401(k) Profit Sharing Plan & Trust and the Clear Lam Packaging, Inc. Employees’ Profit Sharing and Savings Growth Plan;
(g)    Effective January 1, 2019, the Conitex Sonoco, Inc. & Subsidiaries 401(k) Plan F/K/A Texpack U.S.A. Inc. 401(k) Retirement Plan;
(h)    Effective March 2, 2020, the Corenso 401(k) and Savings Plan;
(i)    Effective April 1, 2020, the account balances of employees hired by the Company as part of the acquisition of Thermoform Engineered Quality, LLC, and Plastique Holdings, LTD (the “TEQ Employees”), were transferred in a plan-to-plan transfer from the ESCO Employee Savings Investment Plan (the “ESCO Plan”) to the Plan; and
(j)    Effective April 1, 2021, the Sebro Plastics, Inc. Employees Profit Sharing Plan (the “Sebro Plan”).
The Plan was restated effective January 1, 2013 and its name was changed from the Sonoco Savings Plan to the Sonoco Retirement and Savings Plan (the “Plan”). The Plan was further restated as of January 1, 2014, January 1, 2015, and again as of January 1, 2022. 
1.2 Applicability of Plan
This Plan generally applies only to Employees who are employed by an Employer on or after January 1, 2022. Except as otherwise provided in a retroactively effective provision of this Plan document, or except as otherwise required by law, the rights and benefits of former 
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Employees who terminated or died before January 1, 2022 (and their Beneficiaries) shall be determined under the terms of the prior plan documents as in effect upon their termination or death.

In addition, the provisions of this Plan shall apply to each Eligible Employee, except as otherwise noted in an Appendix. Appendix A lists each Participating Employer hereunder (other than Sonoco Products Company) and describes specific variations to Plan provisions and features that apply to certain nonunion Eligible Employees. Appendix B lists each group of collectively-bargained Employees who are Eligible Employees with respect to Plan benefits other than Retirement Contributions and also describes specific variations to Plan provisions and features that apply to each such collectively-bargained group. Appendix C lists each group of collectively-bargained Employees who are Eligible Employees with respect to Retirement Contributions.

1.3 Purpose of Plan
The purpose of this Plan is to allow Eligible Employees to set aside a portion of their wages and salaries for their retirement, to encourage Employee savings by matching a portion of Employee contributions with contributions from the Employer, and to provide other Employer-paid sources of retirement income. The Plan and any related trusts are intended to meet the requirements of sections 401(a), 401(k), 401(m), and 501(a) of the Internal Revenue Code of 1986 (the “Code”). The portion of the Plan comprised of assets invested in the Company Stock Fund (but not amounts that are transferred from the Company Stock Fund into other Funds) is intended to be a stock bonus plan that qualifies as an employee stock ownership plan under Code section 4975(e)(7).
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Article 2. Definitions
Whenever used in the Plan, the following terms shall have the meanings set forth below unless otherwise expressly provided. The definition of any term in the singular shall also include the plural, whichever is appropriate in the context.
2.1 Account
Account means the separate Account maintained under the Plan for each Member that represents the Member’s total proportionate interest in the Trust Fund as of any Valuation Date. A Member’s Account consists of the following subaccounts:
(a)    After-Tax Contributions Account means the portion of the Member’s Account that evidences the value of the Member’s After-Tax Contributions under section 5.2 (or corresponding provisions of a Predecessor Plan), including any gains and losses of the Trust Fund attributable thereto.
(b)    After-Tax Rollover Contributions Account means the portion of the Member’s Account that evidences the value of the Member contributions under section 5.6 (or under corresponding provisions of a Predecessor Plan) that are attributable to after-tax contributions made by the Member to the plan of a previous employer, including any gains and losses of the Trust Fund attributable thereto.
(c)    Before-Tax Contributions Account means the portion of the Member’s Account that evidences the value of the Member’s Before-Tax Contributions under section 5.1(a) (or under corresponding provisions of a Predecessor Plan), including any gains and losses of the Trust Fund attributable thereto.
(d)    Collectively-Bargained Nonelective Employer Contributions Account means the portion of the Member’s Account that evidences the value of the Collectively-Bargained Nonelective Employer Contributions made on behalf of Members who are covered by certain collective bargaining agreements (as specified in Appendix B), or similar nonelective contributions made to collectively-bargained employees under corresponding provisions of a Predecessor Plan, including any gains and losses of the Trust Fund attributable thereto.
(e)    Matching Contributions Account means the portion of the Member’s Account that evidences the value of the Matching Contributions made on the Member’s behalf under section 5.3 (or under corresponding provisions of a Predecessor Plan), including any gains and losses of the Trust Fund attributable thereto. 
(f)    Paysop Account means the portion of the Member’s Account that evidences the value of contributions made by the Employer before January 1, 1989 in the form of Company Stock to the tax credit employee stock ownership portion of the Plan in effect at that time, including any gains and losses of the Trust Fund attributable thereto.

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(g)    Retirement Contributions Account means the portion of the Member’s Account that evidences the value of the contributions made by an Employer under the Sonoco Investment Retirement Plan prior to January 1, 2013, plus the Retirement Contributions made by the Employer on or after January 1, 2013 under section 5.4, including any gains and losses of the Trust Fund attributable thereto.
(h)    Rollover Contributions Account means the portion of the Member’s Account that evidences the value of rollover contributions made under section 5.6(a) (or corresponding provisions of a Predecessor Plan), but excluding any such contributions that are allocated to the Member’s After-Tax Rollover Contributions Account, including any gains and losses of the Trust Fund attributable thereto.
(i)    Roth Contributions Account means the portion of the Member’s Account that evidences the value of the Member’s Roth Contributions under section 5.1(b), including any gains and losses of the Trust Fund attributable thereto.
(j)    Roth Rollover Contributions Account means the portion of the Member’s Account that evidences the value of the qualified Roth rollovers that are transferred to the Plan on behalf of a Member in accordance with section 5.6(b), including any gains and losses of the Trust Fund attributable thereto.
(k)    Tuscarora Money Purchase Pension Plan Account means the portion of the Member’s Account that evidences the value of employer contributions made previously under the Tuscarora Incorporated and Subsidiary Companies Non-Union Hourly Employees’ Money Purchase Pension Plan, the Tuscarora Incorporated Salaried Employees’ Money Purchase Pension Plan, and the Tuscarora Incorporated Union Employees’ Money Purchase Pension Plan, including any gains and losses of the Trust Fund attributable thereto. (These accounts were transferred previously into the Tegrant Investment and Retirement Plan which was itself merged into this Plan effective January 1, 2013.)
(l)    Prior Plan Matching Contributions Account means the portion of the Member’s account which evidences the value of the safe harbor matching contributions that were transferred into this Plan from the Norske Skog 401(k) Plan, including any gains and losses attributable thereto.
(m)    PPI 401(k) Account means the portion of the Member’s account which was transferred from the Plastic Packaging, Inc. 401(k) Plan and merged into this Plan.
(n)    PPI Profit Sharing Account means the portion of the Member’s account which was transferred from the Plastic Packaging, Inc. Profit Sharing Plan and merged into this Plan.

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(o)    Peninsula 401(k) Account means the portion of the Member’s account which was transferred from the Peninsula Packaging, LLC 401(k) Profit Sharing Plan & Trust and merged into this Plan.
(p)    Clear Lam 401(k) Account means the portion of the Member’s account which was transferred from the Clear Lam Packaging, Inc. Employees’ Profit Sharing and Savings Growth Plan and merged into this Plan.
(q)    Conitex 401(k) Account means the portion of the Member’s account which was transferred from the Conitex Sonoco, Inc. & Subsidiaries 401(k) Plan F/K/A Texpack U.S.A. Inc. 401(k) Retirement Plan and merged into this Plan.
(r)    Corenso 401(k) Account means the portion of the Member’s account which was transferred from the Corenso 401(k) and Savings Plan and merged into this Plan.
(s)    TEQ 401(k) Account means the portion of the Member’s account that was transferred on behalf of former TEQ employees from the ESCO Plan to the Plan in a plan-to-plan transfer. A separate sub-account of the TEQ 401(k) Account shall be established to hold pre-2004 matching contributions (the “TEQ Pre-2004 Matching Account”).
(t)    Sebro 401(k) Account means the portion of the Member’s account that was transferred from the Sebro Plan and merged into this Plan.”

2.2 Affiliate
Affiliate means—
(a)    any corporation while it is a member of the same “controlled group” of corporations (within the meaning of Code section 414(b)) as the Company;
(b)    any other trade or business (whether or not incorporated) while it is under “common control” with the Company within the meaning of Code section 414(c);
(c)    any organization during any period in which it (along with the Company) is a member of an “affiliated service group” (within the meaning of Code section 414(m)); and
(d)    any other entity during any period in which it is required to be aggregated with the Company under Code section 414(o). 
2.3 After-Tax Contributions
After-Tax Contributions mean the voluntary contributions made by a Participant, as described in section 5.2. 

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2.4 Annuity Starting Date
Annuity Starting Date means the first day of the first period for which an amount is payable as an annuity or, in the case of a benefit not payable in the form of an annuity, the first day on which all events have occurred that entitle the Member to the benefit. 
2.5 Before-Tax Contributions
Before-Tax Contributions mean the contributions made by the Employer on behalf of a Participant pursuant to the Participant’s election to reduce Compensation, as described in section 5.1(a).
2.6 Beneficiary
Beneficiary means the person or persons, or entity or entities, designated by the Member under section 8.1(b) to receive any benefits payable on behalf of the Member after his or her death.
2.7 Board
Board means the Board of Directors of the Company. 
2.8 Cares Act 
Cares Act means the Coronavirus Aid, Relief, and Economic Security Act (2020).
2.9 Code
Code means the Internal Revenue Code of 1986, as amended. A reference to a section of the Code shall also refer to any regulations and other guidance issued under that section.
2.10 Collectively-Bargained Nonelective Employer Contributions
Collectively-Bargained Nonelective Employer Contributions mean the contributions made by an Employer under section 5.5.
2.11 Committee
Committee means the committee described in section 11.1(a).
2.12 Company
Company means Sonoco Products Company or any successor thereto that agrees to assume and continue this Plan.
2.13 Company Stock
Company stock means common stock of the Company that is readily tradable on an established securities market. Company Stock may also include treasury shares and noncallable preferred stock that is convertible into common stock at any time and at a reasonable price. Preferred stock will be treated as noncallable if there is a reasonable opportunity for conversion after a call. All shares of preferred stock will have voting rights equal to the common stock into which they can be converted. 

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2.14 Compensation
(a)    Compensation for Determining Contributions. The Compensation that is subject to a Participant’s election to make Before-Tax Contributions under section 5.1(a), Roth Contributions under section 5.1(b), and/or After-Tax Contributions under section 5.2, and the Compensation used to determine the amount of Retirement Contributions made by an Employer under section 5.4 and Collectively-Bargained Nonelective Employer Contributions made by an Employer under section 5.5, shall be an Employee’s taxable earnings for the Plan Year (or, for an Employee who was a Participant for less than the full Plan Year, the portion of the Plan Year during which he or she was a Participant) as reported on Federal Wage and Tax Statement (Box 1 of IRS Form W-2)—
(1)    increased by any salary reduction contributions made on the Participant’s behalf during the Plan Year under any plan maintained by the Company or an Affiliate under Code section 125, 132(f)(4), or 401(k); and
(2)    decreased (to the extent included in Box 1 of IRS Form W-2) by—
(A)    bonuses, vacation pay, and other payments made after 21⁄2 months after Separation from Service (as defined in section 3.1(e)(2));
(B)    severance pay;
(C)    reimbursements for moving expenses;
(D)    reimbursements for educational expenses; 
(E)    automobile allowances;
(F)    tax counsel allowances;
(G)    compensation related to the exercise of stock options or any other stock-related compensation;
(H)    expatriate-related expenses;
(I)    any form of imputed income;
(J)    contributions made by the Company or an Affiliate to this Plan or any other benefit plan;
(K)    amounts paid pursuant to a short-term disability plan sponsored by the Company or an Affiliate (other than amounts paid to salaried and nonunion hourly employees under a pay continuation policy); and

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(L)    in-service payments and other employee benefits provided under this Plan and all other employee benefit plans and deferred compensation plans maintained by the Company or an Affiliate. 
(b)    Compensation for Determining Limit on Annual Additions. For the purpose of calculating limits on annual additions under section 5.9, Compensation means a Participant’s wages, tips, and other compensation which are to be reported on a Federal Wage and Tax Statement (Box 1 of IRS Form W-2) for a Plan Year, and shall include a Participant’s salary reduction contributions made during the Plan Year under any plan or program maintained by the Company or an Affiliate under Code section 125, 132(f), or 401(k). Compensation shall include only amounts paid or treated as paid to a Participant prior to his or her severance from employment (as determined pursuant to Code section 415), except as otherwise provided in sections 2.14(b)(1) and (2) below.
(1)    The following amounts shall be included in Compensation if paid by the later of 21⁄2 months after the severance from employment or the last day of the Plan Year in which the severance from employment occurs:
(A)    regular compensation for services during or outside the Participant’s regular working hours, commissions, bonuses, or other similar payments, if the payment would have been paid prior to severance from employment if the Participant had continued in employment;
(B)    payment for unused accrued bona fide sick, vacation, or other leave, but only if the Participant would have been able to use the leave if his or her employment had continued; and
(C)    payments received by a Participant pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid to the Participant at the same time if his or her employment had continued and only to the extent that the payment is includible in the Participant’s gross income.
(2)    Compensation shall include payments to a Participant who does not currently perform services for the Company or an Affiliate by reason of qualified military service (as defined in Code section 414(u)) to the extent that the payments do not exceed the amounts that the Participant would have received if he or she had continued to perform services for the Company or an Affiliate rather than entering military service.
The limitation on Compensation described in section 2.14(f) shall be applied in determining Compensation under this section 2.14(b).

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(c)    Nondiscrimination Testing. For purposes of satisfying the requirements described in sections 5.8(b) and 5.8(c), Compensation for any Plan Year means the Eligible Employee’s wages, tips, and other compensation which are to be reported on a Federal Wage and Tax Statement (Box 1 of IRS Form W-2) for a Plan Year, unless the Committee determines for any such Plan Year to use a different definition of compensation that complies in all respects with Code section 414(s). 
(d)    Identifying Highly Compensated Employees. For purposes of identifying Highly Compensated Employees, Compensation means the amount determined under section 2.14(b). 
(e)    Differential Wage Payments for Employees in Active Military Service. Compensation shall include differential wage payments (as defined in Code section 3401(h)(2)) paid to a Participant to the extent required by Code section 414(u)(12) (but shall not be treated as eligible Compensation under section 2.14(a)).
(f)    Code Section 401(a)(17) Limit. The Compensation of each Member that may be taken into account under the Plan for any Plan Year shall not exceed $265,000 (or such higher amount determined by the Secretary of the Treasury under Code section 401(a)(17)).
(g)    Corenso Compensation. Corenso Compensation, as used in Appendix B for collectively-bargained employees of Corenso, means taxable earnings for the Plan Year (or, for an Employee who was a Participant for less than the full Plan Year, the portion of the Plan Year during which he or she was a Participant) as reported on Federal Wage and Tax Statement (Box 1 of IRS Form W-2):
(1)    Increased by any salary reduction contributions made on the Participant’s behalf during the Plan Year under any plan maintained by the Company or an Affiliate under Code section 401(k); and
(2)    Decreased by profit-sharing bonuses, expense reimbursements, fringe benefits (cash and noncash), moving expenses, payments from a deferred compensation plan, welfare benefits, unused leave, differential wages, commissions, income due to restricted stock or qualified or nonqualified stock options, severance pay (paid before or after termination).
2.15 Eligible Employee
(a)    General Rule. An Employee who was an eligible employee under the terms of the Plan on December 31, 2021, shall be an Eligible Employee with respect to Plan benefits other than Retirement Contributions on and after January 1, 2022 if he or she is still an active Employee of an Employer on such date. Except as otherwise provided in section 2.15(c), each other Employee of an Employer shall become an 
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Eligible Employee with respect to Plan benefits other than Retirement Contributions on his or her Employment Commencement Date. 
(b)    Eligibility for Retirement Contributions. Effective for Compensation earned after December 31, 2021, no Employees shall be eligible to receive Retirement Contributions unless specifically provided for by a collective bargaining agreement and memorialized in Appendix C of the Plan.  
(c)    Excluded Employees.
(1)    General Rule. Notwithstanding Plan sections 2.15(a) and (b), the following individuals shall not be treated as Eligible Employees under this Plan:
(A)    an Employee who is classified as a seasonal or temporary Employee. Notwithstanding the foregoing, a seasonal or temporary Employee will be eligible to participate on the first day of the next Plan Year after the earlier of (i) earning 1000 hours of service during a single Plan Year; or (ii) earning at least 500 hours of service in each of three consecutive Plan Years (counting hours of service for this purpose begins with the 2021 Plan Year, the 2024 Plan Year is the first year that a seasonal or temporary Employee could become eligible under this subsection 2.15(c)(1)(A)).
(B)    except as provided in section 2.15(d), an Employee who is covered by a collective bargaining agreement, provided that retirement benefits were the subject of good faith bargaining (and the collective bargaining agreement does not provide for such Employee’s participation in the Plan);
(C)    an Employee who is a non-U.S. citizen employed outside the United States; and
(D)    an Employee who is a non-resident alien with no U.S.-source income.
(d)    Participating Unions. Notwithstanding section 2.15(c)(1)(B), collectively-bargained Employees will qualify as Eligible Employees to the extent specified in a collective bargaining agreement. 
(1)    Collectively-bargained Employees who qualify as Eligible Employees with respect to Plan benefits other than Retirement Contributions, and related variations in Plan terms that apply to such Employees, are described in Appendix B.

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(2)    Collectively-bargained Employees who qualify as Eligible Employees with respect to Retirement Contributions, and related variations in Plan terms that apply to such Employees, are described in Appendix C.
2.16 Employee
Employee means any person employed by the Company or an Affiliate as a common-law employee (and for whom FICA taxes are withheld by the Company or an Affiliate). The term “Employee” excludes individuals who are classified as independent contractors, consultants, or Leased Employees, regardless of whether a government agency, court, or other entity subsequently determines such classification was in error. 
2.17 Employer
Employer means the Company and any Affiliate that, with the approval of the Company, elects to adopt this Plan for the benefit of its eligible employees in the manner described in Article 14. Participating Employers (other than the Company), and the effective date of their participation and variations in Plan terms that apply to selected Employers, are listed in Appendix A.  
2.18 Employment Commencement Date
Employment Commencement Date means the first day on which an Employee is credited with an Hour of Service (as defined in section 3.2(e)(1)).
2.19 ERISA
ERISA means the Employee Retirement Income Security Act of 1974, as amended, or as it may be amended from time to time. A reference to a section of ERISA shall also refer to any regulations and other guidance issued under that section.
2.20 Fund
Fund means any of the funds established under the Plan for the investment of Members’ Accounts. The Investment Council shall have the discretion to establish and terminate Funds as it may deem appropriate. 
Subject to the Investment Council’s discretion to establish and terminate Funds, there shall be a Sonoco Stock Fund which shall be invested exclusively in Company Stock. The portion of the Plan’s assets that are invested in the Sonoco Stock Fund (but not amounts that are transferred from the Sonoco Stock Fund into other Funds) is intended to be a stock bonus plan that qualifies as an employee stock ownership plan under Code section 4975(e)(7). 
2.21 Highly Compensated Employee
Highly Compensated Employee means, with respect to any Plan Year, a highly compensated active Employee or a highly compensated former Employee.
(a)    A highly compensated active Employee means any Employee who performs services for the Employer during the Plan Year and who either—

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(1)    is a 5 percent owner (as defined in Code section 416(i)(1)) at any time during the Plan Year or the immediately preceding Plan Year; or
(2)    received Compensation from the Company and its Affiliates in the immediately preceding Plan Year in excess of $120,000 (as adjusted pursuant to Code section 415(d)).
(b)    A highly compensated former Employee means any Employee who—
(1)    separated from service (or was deemed to have separated from service) prior to the Plan Year;
(2)    performs no services for the Employer during the Plan Year; and
(3)    was a highly compensated active Employee with respect to either the Plan Year in which he or she separated from service or any Plan Year ending on or after such Employee’s 55th birthday.
2.22 Investment Council
Investment Council means the individuals appointed by the Board who have the investment powers and responsibilities described in section 11.1(b)(4). 
2.23 Leased Employee
Leased Employee means any person who is not an Employee of an Employer and who provides services to an Employer if—
(a)    such services are provided pursuant to an agreement between the Employer and any other person;
(b)    such person has performed such services for the Employer (or for the Employer and related persons determined in accordance with Code section 414(n)(6)) on a substantially full-time basis for a period of at least one year; and
(c)    such services are performed under primary direction or control by the Employer.
If a Leased Employee becomes eligible to participate in the Plan as a result of later employment with an Employer as an Eligible Employee, the Leased Employee shall receive credit for Vesting Service as a Leased Employee. Notwithstanding the preceding paragraph, a Leased Employee shall be included as an Employee for purposes of applying the requirements described in Code section 414(n)(3).
2.24 Matching Contributions
Matching Contributions mean the contributions made by an Employer under section 5.3.

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2.25 Member
Member means a Participant or a former Participant who still has an Account balance under the Plan. 
2.26 Nonhighly Compensated Employee
Nonhighly Compensated Employee means any Employee who is not a Highly Compensated Employee.
2.27 Participant
Participant means any Eligible Employee who has met and continues to meet the active participation requirements of the Plan as set forth in Article 4. 
2.28 Pay Reduction Agreement
Pay Reduction Agreement means an agreement described in section 5.7.
2.29 Plan
Plan means this Sonoco Retirement and Savings Plan, as amended.
2.30 Plan Year
Plan Year means the calendar year.
2.31 Predecessor Plan
Predecessor Plan means the Sonoco Investment and Retirement Plan and any other qualified plan that the Company elects to merge into this Plan.
2.32 Preretirement Survivor Annuity
Preretirement Survivor Annuity means an annuity payable for the life of the Member’s surviving Spouse, having a value equal to the Member’s Tuscarora Money Purchase Pension Plan Account that is payable as an annuity upon the Member’s death, as determined under section 8.5(b)(1).
2.33 Qualified Joint and Survivor Annuity
Qualified Joint and Survivor Annuity means an annuity that provides a level monthly benefit to the Member for his or her lifetime and, upon the Member’s death, provides an annuity for the life of his or her surviving Spouse (to whom the Member was married on the Annuity Starting Date) in an amount equal to 50 percent of the amount payable to the Member during his or her life. The Qualified Joint and Survivor Annuity shall be payable only as required under section 8.5(a) and shall have a value equal to the Member’s Tuscarora Money Purchase Pension Plan Account.
2.34 Qualified Optional Survivor Annuity
Qualified Optional Survivor Annuity means an annuity that provides a level monthly benefit to the Member for his or her lifetime and, upon the Member’s death, provides an annuity for the life of his or her surviving Spouse (to whom the Member was married on the Annuity Starting Date) in an amount equal to 75 percent of the amount payable to the Member during his or her life. The Qualified Optional Survivor Annuity shall be payable only as required under section 8.5(a) and shall have a value equal to the Member’s Tuscarora Money Purchase Pension Plan Account.
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2.35 Retirement Contributions
Retirement Contributions mean the contributions made by an Employer under section 5.4 and Appendix C.
2.36 Secure Act
Secure Act means the Setting Every Community Up for Retirement Enhancement Act of 2019.
2.37 Single Life Annuity
Single Life Annuity means an annuity providing equal monthly payments for the lifetime of a Member with no survivor benefits. The Single Life Annuity shall be payable only as required under section 8.5(a) and shall have a value equal to the Member’s Tuscarora Money Purchase Pension Plan Account.
2.38 Social Security Wage Base
Social Security Wage Base means for any Plan Year, the maximum wages on which Social Security taxes are assessed for old age, survivors, and disability insurance benefits for such Plan Year.
2.39 Spouse
Prior to June 26, 2013, Spouse means a person of the opposite sex to whom a Member was legally married (as recognized under the laws of the State where the marriage was contracted and also under federal law, including the Defense of Marriage Act and the Code) immediately prior to the earlier of (a) the date on which a distribution to the Member begins under Article 5; or (b) the date of the Member’s death.
Effective June 26, 2013, Spouse means a person to whom a Member is legally married (as recognized under federal law) immediately prior to the earlier of (a) the date on which a distribution to the Member begins under Article 5; or (b) the date of the Member’s death. 
2.40 Ten-Year Certain and Life Annuity
Ten-Year Certain and Life Annuity means a monthly annuity payable for the lifetime of the Member, and if the Member dies before receiving 120 monthly payments, such payments shall continue to the Member’s Beneficiary until a total of 120 payments have been made. A Ten-Year Certain and Life Annuity shall be payable only as required under section 8.5(a) and shall have a value equal to the Member’s Tuscarora Money Purchase Pension Plan Account.

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2.41 Trust Agreement
Trust Agreement means the agreement under which Plan assets are held and invested under Article 12.
2.42 Trust Fund
Trust Fund means the trust fund established under Article 12 to hold the assets of the Plan.
2.43 Trustee
Trustee means any corporation or individual acting as trustee of the Trust Fund.
2.44 Valuation Date
Valuation Date means each day on which the New York Stock Exchange is open for business.
2.45 Vested Balance
Vested Balance as of a given date means the sum of—
(a)    The Member’s After-Tax Contributions Account, After-Tax Rollover Contributions Account, Before-Tax Contributions Account, Paysop Account, Rollover Contributions Account, Roth Contributions Account, Roth Rollover Contributions Account, Tuscarora Money Purchase Pension Plan Account, Prior Plan Matching Contributions Account, PPI 401(k) Account,  PPI Profit Sharing Account; Peninsula 401(k) Account; Clear Lam 401(k) Account; Conitex 401(k) Account; Corenso 401(k) Account; TEQ 401(k) Account; and Sebro 401(k) Account.
(b)    the Member’s Vested Percentage, as determined under section 7.2, multiplied by the balance in his or her Matching Contributions Account;
(c)    the Member’s Vested Percentage, as determined under section 7.3, multiplied by the balance in his or her Retirement Contributions Account; and 
(d)    the Member’s Vested Percentage, as determined under section 7.4, multiplied by the balance in his or her Collectively-Bargained Nonelective Employer Contributions Account.
2.46 Vested Percentage
Vested Percentage means the percentage determined under section 7.2, 7.3, or 7.4, as applicable.
2.47 Vesting Service
Vesting Service means the period of employment determined under Article 3. 
    15    

Article 3. Vesting Service
3.1 Elapsed Time Vesting Service
(a)    Applicability. Years of Vesting Service will be determined on an elapsed time basis for purposes of determining a Member’s Vested Percentage in his or her:
(1)    Retirement Contributions Account;
(2)    Collectively-Bargained Nonelective Employer Contributions Account accumulated pursuant to the collective bargaining agreement in effect between the Employer and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union, Local 1517, representing union Employees at the Company’s USPMC – DePere location; 
(3)    Matching Contributions Account and Collectively-Bargained Nonelective Employer Contributions Account accumulated pursuant to the collective bargaining agreement in effect between the Employer and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union, Local 273, representing union Employees at the Company’s USPMC – Menasha location; 
(4)    Matching Contributions Account accumulated pursuant to the collective bargaining agreement in effect between the Employer and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union, Local 1-150, representing union Employees at the Company’s Orville location;
(5)    Collectively-Bargained Nonelective Employer Contributions Account accumulated pursuant to the collective bargaining agreement in effect between the employer and the International Union of Operating Engineers, Local #465, representing union Employees at Tegrant Corporation’s Butner, NC location;
(6)    Collectively-Bargained Nonelective Employer Contributions Account accumulated pursuant to the collective bargaining agreement in effect between the employer and the International Association of Machinists and Aerospace Workers Union, Local #1546, representing union maintenance Employees at Tegrant Corporation’s Hayward, CA location;
(7)    Collectively-Bargained Nonelective Employer Contributions Account accumulated pursuant to the collective bargaining agreement in effect between the employer and the Teamsters Union, IBT Local #853, representing union production Employees at Tegrant Corporation’s Hayward, CA location; and

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(8)    Collectively-Bargained Nonelective Employer Contributions Account accumulated pursuant to the collective bargaining agreement in effect between the employer and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union, Local #851, representing union Employees at Tegrant Corporation’s Pardeeville, WI location.
(b)    General Rule. Except as otherwise provided below, an Employee shall receive elapsed time Vesting Service beginning on the Employee’s Employment Commencement Date and ending upon the Employee’s Separation from Service (as defined in section 3.1(e)(2)). 
Vesting Service shall be expressed in completed full years and months, aggregating non-continuous partial months into whole 30 day months and ignoring the remaining days. 
(c)    Pre-Acquisition Service. If an individual becomes an Employee in connection with the Company’s or an Affiliate’s acquisition of such individual’s prior employer, the period of employment with the prior employer shall be included in the Employee’s elapsed time Vesting Service under this section 3.1. 
(d)    Reinstatement of Elapsed Time Vesting Service. If an Employee incurs a Separation from Service (as defined in section 3.1(e)(2)) and is then subsequently reemployed by the Company or an Affiliate as an Employee, the elapsed time Vesting Service the Employee had upon his or her Separation from Service shall be reinstated immediately upon his or her reemployment.
In addition, if such Separation from Service was on account of quit, discharge, or retirement, the Employee shall receive elapsed time Vesting Service for the period of absence (but not in excess of 12 months). Moreover, if the Employee’s Separation from Service was for a reason other than quit, discharge, or retirement, but the Employee then quits, is discharged, or retires during such absence, and is then reemployed by the Company or an Affiliate before the first anniversary of the original absence, the Employee shall receive elapsed time Vesting Service for the period of absence (but not in excess of 12 months).
(e)    Definitions Applicable to Elapsed Time Vesting Service
(1)    One-Year Period of Separation is used in determining whether Plan balances accrued before a Member’s Separation from Service (as defined in section 3.1(e)(2)) will be reinstated under section 7.7 in the event of the Member’s subsequent reemployment by the Company or an Affiliate. One-Year Period of Separation means a 12-consecutive-month period beginning on the date an Employee incurs a Separation from Service and ending on each anniversary of such date, provided that the Employee does not perform an Hour of Service (as defined in section 3.2(e)(1))for the Company or an Affiliate during such period.
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Solely for the purpose of determining whether a One-Year Period of Separation has occurred, in the case of an Employee who is absent from work beyond the first anniversary of the first day of an absence, and the absence is for maternity or paternity reasons, the date the Employee incurs a Separation from Service shall be the second anniversary of the Employee’s absence from employment. An absence from work for maternity or paternity reasons means an absence—
(A)    by reason of pregnancy of the individual;
(B)    by reason of the birth of a child of the individual;
(C)    by reason of the placement of a child with the individual in connection with the individual’s adoption of such child; or
(D)    for the purpose of caring for such child for a period beginning immediately following such birth or placement.
In addition, for purposes of determining whether an Employee has incurred a One-Year Period of Separation, a leave that is protected under the Family and Medical Leave Act of 1993 shall be treated as a period of active employment.
(2)    Separation from Service means the earlier of—
(A)    the date on which the Employee quits, is discharged, retires, or dies; or
(B)    the first anniversary of the Employee’s absence from employment with the Company or an Affiliate (with or without pay) for any other reason, such as vacation, holiday, layoff, leave of absence, or military service (except as provided in section 3.3).
An Employee who fails to return to employment at the expiration of an approved leave of absence shall be deemed to have had a Separation from Service on the first to occur of the expiration of the leave or the first anniversary of the first day of the absence.
3.2 Hours-Based Vesting Service
(a)    Applicability. Years of Vesting Service will be determined on the basis of a Member’s Hours of Service (as defined in section 3.2(e)(1)) for purposes of determining a Member’s Vested Percentage in his or her:
(1)    Collectively-Bargained Nonelective Employer Contributions Account accumulated pursuant to the collective bargaining agreement in effect between the Employer and the Chicago & Midwest Regional Joint Board Affiliate of Workers United, SEIU, covering union employees at the Company’s Edinburgh location; and

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(2)    Collectively-Bargained Nonelective Employer Contributions Account accumulated pursuant to the collective bargaining agreement in effect between the Employer and the Graphic Communications International Union Local 508M, covering union employees at the Company’s Franklin location.
(b)    General Rule. Except as provided below, an Employee shall be credited with one year of hours-based Vesting Service for each Plan Year in which the Employee is credited with 1,000 or more Hours of Service (as defined in section 3.2(e)(1)). 
(c)    Pre-Acquisition Service. If an individual becomes an Employee in connection with the Company’s or an Affiliate’s acquisition of such individual’s prior employer, the period of employment with the prior employer shall be included in the Employee’s Vesting Service under this section 3.2.
(d)    Reinstatement of Hours-Based Vesting Service. If an Employee is reemployed by the Company or an Affiliate as an Employee after an earlier Termination Date (as defined in section 3.2(e)(3)), the Vesting Service earned by the Employee prior to such Termination Date shall be reinstated upon his or her reemployment.
(e)    Definitions Applicable to Hours-Based Vesting Service.
(1)    Hour of Service means each hour used to determine an individual’s hours-based Vesting Service under this section 3.2, determined as follows:
(A)    For the Performance of Duties. An Employee shall receive an Hour of Service for each hour for which the Employee is paid or entitled to payment by the Company or an Affiliate for the performance of duties. Hours of Service under this section 3.2(e)(1)(A) shall be credited to the Employee in the Plan Year in which the duties are performed.
(B)    Periods During Which No Duties are Performed. An Employee shall receive an Hour of Service for each hour for which the Employee is directly or indirectly paid or entitled to payment by the Company or an Affiliate on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty, or leave of absence. Hours of Service under this section 3.2(e)(1)(B) shall be credited to the Employee in the Plan Year for which the Employee is paid or entitled to payment. 
(C)    Back Pay. An Employee shall receive an Hour of Service for each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the Company or an Affiliate. Hours of Service under this section 3.2(e)(1)(C) shall be credited to the Employee in the Plan Year to which the award or agreement relates.

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(D)    Hours Not Counted. This section 3.2(e)(1)(D) limits the Hours of Service credited for periods during which no duties are performed and it shall be applied without regard to whether Hours of Service otherwise would have been counted for these periods under sections 3.2(e)(1)(B) or (C).
(i)    Nonduplication. No hour shall be credited as an Hour of Service more than once under this section 3.2(e)(1).
(ii)    Unpaid Time. An hour for which an Employee is not paid, either directly or indirectly, shall not be credited, except as provided in section 3.2(e)(1)(E) (regarding maternity or paternity leave), section 3.2(e)(1)(F) (regarding a leave of absence pursuant to the Family and Medical Leave Act of 1993), and section 3.2(e)(1)(G) (regarding military leave).
(iii)    Workers’ Compensation, Disability Insurance, or Unemployment Compensation. An hour for which an Employee is directly or indirectly paid or entitled to payment on account of a period during which the Employee performs no duties shall not be credited as an Hour of Service if the payment is made or due under a plan maintained solely for the purpose of complying with applicable disability insurance or unemployment compensation laws. 
(iv)    Medical Reimbursement. Hours of Service shall not be credited for a payment that solely reimburses the Employee for medical or medically-related expenses.
(E)    Maternity/Paternity Leave. Solely for purposes of determining whether a One-Year Break in Service (as defined in section 3.2(e)(2)) has occurred, an Employee shall receive eight Hours of Service for each day of the Employee’s absence from employment for maternity or paternity reasons. An absence for maternity or paternity reasons shall mean an absence by reason of—
(i)    the Employee’s pregnancy; 
(ii)    the birth of the Employee’s child;

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(iii)    the placement of a child with the Employee in connection with the adoption of the child; or
(iv)    the caring for a child for a period immediately following the child’s birth or placement.
No more than 501 Hours of Service shall be credited under this subsection for any such absence. Hours of Service under this subsection shall be credited in the Plan Year in which the absence from employment commences if the crediting is necessary to prevent a One-Year Break in Service, or in all other cases, such Hours of Service shall be credited in the following Plan Year.
(F)    FMLA Leave. Solely for purposes of determining whether a One-Year Break in Service (as defined in section 3.2(e)(2)) has occurred, an Employee shall receive an Hour of Service for each hour of the normally-scheduled workweek for each week during any period the Employee is on an approved leave of absence taken pursuant to the Family and Medical Leave Act of 1993.
(G)    Military Leave. An Employee shall receive an Hour of Service for each hour of the normally-scheduled workweek for each week during any period the Employee is absent from work with the Company or an Affiliate for voluntary or involuntary military service with the armed forces of the United States, but not to exceed the period required under the law pertaining to veterans’ reemployment rights. However, if the Employee fails to report for work at the end of this absence before his or her reemployment rights expire, the Employee shall not receive credit for hours on the leave.
(H)    Construction. For purposes of crediting Hours of Service, the Committee shall follow Department of Labor regulation sections 2530.200b-2(b) and (c).
(2)    One-Year Break in Service. One-Year Break is used in determining whether Plan balances accrued before a Member’s Termination Date (as defined in section 3.2(e)(3)) will be reinstated under section 7.7 in the event of the Member’s subsequent reemployment by the Company or an Affiliate. One-Year Break in Service means a Plan Year during or after a Termination Date (as defined in section 3.2(e)(3)) occurs in which an Employee is credited with 500 or fewer Hours of Service.
(3)    Termination Date. Termination Date means the last day on which an individual performs duties as an Employee of the Company or an Affiliate, or any other date determined in accordance with the Company’s policies and practices.

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3.3 Military Service
Notwithstanding any other provision in the Plan to the contrary, contributions, benefits, and service credit with respect to qualified military service will be provided in accordance with Code sections 414(u) and 401(a)(37). If a Participant dies while performing qualified military service, his or her Beneficiaries are entitled to any additional benefits provided under the Plan had the participant resumed employment and then terminated employment on account of his or her death.

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 Article 4. Eligibility and Enrollment
4.1 Eligibility 
(a)    General Rule: Each Employee who was eligible to participate under the terms of the Plan on December 31, 2021 shall be eligible to participate under this Plan as of January 1, 2022 if he or she is still an Eligible Employee on such date. Except as otherwise provided in Appendix B, each other Employee shall be eligible to become a Participant with respect to Plan benefits other than Retirement Contributions as of the first day of the month next following the later of—
(1)    the date on which the Employee completes 30 days of service; or
(2)    the date on which the Employee becomes an Eligible Employee.
Notwithstanding the above, an Eligible Employee shall be eligible to make a Rollover Contribution as provided in section 5.6 before satisfying the service requirement described in this section 4.1(a). However, any such Eligible Employee shall be treated as a Participant hereunder solely with regard to his or her Rollover Contributions Account until he or she satisfies the eligibility requirements described in this section 4.1(a).
Notwithstanding the foregoing, Employees who are initially hired as a result of an acquisition will not be eligible to participate in the Plan until the Plan is amended to permit participation.
(b)    Eligibility for Retirement Contributions: Effective for Compensation earned after December 31, 2021, no individual is eligible to receive Retirement Contributions unless specifically provided for in a collective bargaining agreement and memorialized in Appendix C of this Plan. Unless otherwise specified, such individuals will be eligible to receive Retirement Contributions described in section 5.4 as of the first day of the month next following the later of—
(1)    The date on which the Employee completes one year of Vesting Service (as determined under section 3.1); 
(2)    The date on which the Employee attains age 21; and
(3)    The date on which the Employee becomes an Eligible Employee. 
(c)    Special Eligibility Provision: Employees who were first employed by the Company as part of the acquisition described in the “STOCK PURCHASE AGREEMENT by and among Sonoco Flexible Packaging, Co., Inc., as the Purchaser, Plastic Packaging, Inc., as the Company, each of the Sellers identified on the signature pages hereto, and Steven D. Yeater, as Sellers’ Representative Dated as of October 28, 2016” will not be eligible to participate in the Plan until January 1, 2017, and are not eligible to earn Retirement Contributions under Section 5.4.

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On February 2, 2017, Plastic Packaging, Inc. was renamed Sonoco Hickory, Inc. Employees who are employed by Sonoco Hickory, Inc. (formerly known as Plastic Packaging, Inc.) are not eligible to earn Retirement Contributions under Section 5.4. This applies to all employees of Sonoco Hickory, Inc., even those who transferred from positions in which they were eligible for Retirement Contributions prior to the effective date of the transfer.
(d)    Special Eligibility Provision: Employees who were first employed by the Company as part of the acquisition of the Peninsula Packaging Company described in the “AGREEMENT AND PLAN OF MERGER Dated as of February 15, 2017, by and among Sonoco Plastics, Inc., as the Acquiror, Sequoia 2017, Inc., as Merger Sub, Sonoco Products Company, solely for purposes of Section 13.17 as Parent Guarantor, and Packaging Holdings, Inc., as the Company, and Odyssey Investment Partners, LLC, as the Holder Representative” will not be eligible to participate in the Plan until January 1, 2018, and are not eligible to earn Retirement Contributions under Section 5.4.
The acquired company is known as the Peninsula Packaging Company. Employees who are employed by the Peninsula Packaging Company are not eligible to earn Retirement Contributions under Section 5.4. This applies to all employees of the Peninsula Packaging Company, even those who transferred from positions in which they were eligible for Retirement Contributions prior to the effective date of the transfer.
(e)    Special Eligibility Provision: Employees who were first employed by the Company as part of the acquisition of Clear Lam Packaging, Inc., completed on or about July 24, 2017, will not be eligible to participate in the Plan until January 1, 2018, and are not eligible to earn Retirement Contributions under Section 5.4.
On January 30, 2018, Clear Lam Packaging, Inc. was renamed Sonoco Elk Grove, Inc. Employees who are employed by Sonoco Elk Grove, Inc. (formerly known as Clear Lam Packaging, Inc.) are not eligible to earn Retirement Contributions under Section 5.4. This applies to all employees of Sonoco Elk Grove, Inc., even those who transferred from positions in which they were eligible for Retirement Contributions prior to the effective date of the transfer.

(f)    Special Eligibility Provision: Employees who were first employed by the Company as part of the acquisition described in the “PURCHASE AGREEMENT dated as of March 21, 2018 by and among SONOCO PLASTICS, INC., as Purchaser, HIGHLAND PACKAGING SOLUTIONS, INC., as the Company, each of the Holders identified on the signature pages hereto, as the Holders, JOHN D. DURHAM, As Holders’ Representative, and SONOCO PRODUCT COMPANY as the Parent Guarantor” will be eligible to participate in the Plan beginning on January 1, 2019 and will be eligible to earn Retirement Contributions under Section 5.4 starting on the same date.

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(g)    Special Eligibility Provision: US-based employees who became employed by the Company as part of the acquisition described in the “SHARE PURCHASE AGREEMENT dated as of May 28, 2018 by and among SONOCO INTERNATIONAL (BVI), INC., as Acquiror, CONITEX SONOCO (BVI), LTD., as the Company, and TEXPACK INVESTMENTS, INC. as the Seller will be eligible to participate in the Plan beginning on January 1, 2019 and will be eligible to earn Retirement Contributions under Section 5.4 starting on the same date. Employees described above who are not based in the US are not eligible to participate in the Plan.
(h)    Special Eligibility Provision: Employees who were first employed by the Company as part of the acquisition described in the “STOCK PURCHASE AGREEMENT by and among NORDIC PACKAGING AND CONTAINER INTERNATIONAL, INC., CORENSO HOLDINGS AMERICA INC. and SONOCO PRODUCTS COMPANY, May 17, 2019” will be eligible to participate in the Plan beginning on January 1, 2020, and nonunion members of the group will be eligible to earn Retirement Contributions under Section 5.4 starting on the same date. Provisions applicable to union employees are found in Appendix B.
(i)    Effective for Compensation earned after December 31, 2021, no Employees shall be eligible to receive Retirement Contributions unless specifically provided for by a collective bargaining agreement and memorialized in Appendix C of the Plan.
4.2 Enrollment
Subject to section 5.7(b) (regarding automatic enrollment), an Eligible Employee who is entitled to become a Participant under section 4.1(a) may enroll in the Plan—and make Before-Tax under section 5.1(a), Roth Contributions under section 5.1(b), and After-Tax Contributions under section 5.2, as of the first day of the month next following his or satisfaction of the eligibility requirements described in section 4.1(a), or as of the first day of any subsequent payroll period, by completing a Pay Reduction Agreement under section 5.7. 
4.3 Transfers of Employment
(a)    General Rules. This section 4.3(a) describes how employment transfers affect eligibility for Plan benefits other than Retirement Contributions. 
(1)    Transfer into Position as Eligible Employee. When an Employee transfers from a position of employment in which he or she is not an Eligible Employee with respect to Plan benefits other than Retirement Contributions (as defined in section 2.15(a)) into a position of employment where he or she is such an Eligible Employee, the Eligible Employee shall be eligible to become a Participant with respect to Plan benefits other than Retirement Contributions—

    25    

(A)    immediately as of the transfer date if he or she had satisfied the service requirement described in section 4.1(a)(1) as of such date; or
(B)    as of the date determined under section 4.1(a) if he or she had not met the service requirement described in section 4.1(a)(1) as of the transfer date.
(2)    Transfer into Position as Ineligible Employee. If an Employee who is an Eligible Employee with respect to Plan benefits other than Retirement Contributions (as defined in section 2.15(a)) transfers into a position of employment in which he or she is no longer such an Eligible Employee, such Employee shall not be entitled to—
(A)    make any Before-Tax Contributions under section 5.1(a), Roth Contributions under section 5.1(b), or After-Tax Contributions under section 5.2, or 
(B)    receive any Matching contributions under section 5.3 or Collectively-Bargained Nonelective Employer Contributions under section 5.5, 
with respect to Compensation earned after the date of transfer. 
(b)    Impact of Employment Transfers on Eligibility for Retirement Contributions. This section 4.3(b) describes how employment transfers affect eligibility for Retirement Contributions.
(1)    Transfer into Position as Eligible Employee. Except as otherwise provided in this section 4.3(b)(1), when an Employee transfers from a position of employment in which he or she is not an Eligible Employee with respect to Retirement Contributions (as defined in section 2.15(b)) into a position of employment where he or she is such an Eligible Employee, the Employee shall become a Participant with respect to Retirement Contributions—
(A)    immediately as of the transfer date if he or she is at least age 21 and has completed one or more years of Vesting Service as of such transfer date; or
(B)    as of the date determined under section 4.1(b) if he or she did not meet the requirements described in section 4.3(b)(1)(A) as of the transfer date.
However, if a nonunion Employee who is actively participating in a pay-based defined benefit plan sponsored by the Company or an Affiliate transfers to a position of employment with an Employer hereunder, such individual shall continue as an active participant in such defined benefit plan and shall not be treated as an Eligible Employee with respect to Retirement Contributions (except as provided otherwise under section 2.15(b)(3)).

    26    

(2)    Transfer into Position as Ineligible Employee. If an Employee who is an Eligible Employee with respect to Retirement Contributions (as defined in section 2.15(b)) transfers into a position of employment in which he or she is no longer such an Eligible Employee, such Employee shall not be entitled to any Retirement Contributions under section 5.4 with respect to Compensation earned after the date of transfer.
(c)    Transfer of Plan Accounts. If a Member transfers to a position of employment with a nonparticipating Affiliate that maintains a qualified retirement plan under Code section 401(a) that will accept a transfer of the Participant’s Account from this Plan, the Committee may, in its sole discretion, direct the Trustee to transfer such Member’s Account to this other plan. The Trustee will execute the transfer as soon as practicable after receiving appropriate directions from the Committee.
4.4 Participation upon Reemployment
(a)    General Rule. This section 4.4(a) describes when a former Employee who is reemployed by an Employer can become a Participant with respect to Plan benefits other than Retirement Contributions upon reemployment. If such former Employee is reemployed as an Eligible Employee with respect to Plan benefits other than Retirement Contributions (as defined in section 2.15(a)), he or she shall be eligible to become a Participant with respect to such benefits—
(1)    immediately upon reemployment if he or she had satisfied the service requirement described in section 4.1(a)(1) as of such date; or
(2)    in all other cases, as of the date determined under section 4.1(a), assuming such individual is treated as a new Employee under this Plan at the time of his or her reemployment. 
(b)    Impact of Reemployment on Eligibility for Retirement Contributions. This section 4.4(b) describes when a former Employee who is reemployed by an Employer can become a Participant with respect to Retirement Contributions. If such former Employee is reemployed as an Eligible Employee with respect to Retirement Contributions (as defined in section 2.15(b)), he or she will become a Participant with respect to Retirement Contributions—
(1)    immediately upon reemployment if—

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(A)    such Employee was vested in his or her Retirement Contributions Account under Article 7 upon his or her earlier Separation from Service (as defined in section 3.1(e)(2)); or 
(B)    such Employee is at least age 21 upon his or her reemployment and had completed one or more years of Vesting Service as of his or her earlier Separation from Service (as defined in section 3.1(e)(2)); or
(2)    in all other cases, as of the date determined under section 4.1(b).

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Article 5. Contributions and Allocations
5.1 Before-Tax Contributions
(a)    Election by Participant. Each Eligible Employee who has met the participation requirements described in section 4.1(a) may elect to have his or her Compensation reduced under a Pay Reduction Agreement described in section 5.7, and to have this amount contributed on his or her behalf as a Before-Tax Contribution to the Plan. Subject to the limits described in sections 5.8(a) and 5.9 (and Appendix A or Appendix B, if applicable), this reduction for Before-Tax Contributions shall be a specified whole percentage of Compensation. Notwithstanding the above, in the interests of managing nondiscrimination test results under section 5.8(b) for any Plan Year, the Committee may, in its sole and absolute discretion, impose more restrictive limits on the percentage of Compensation that may be contributed as Before-Tax Contributions by Participants who are Highly Compensated Employees. 
(b)    Roth Contributions. Each Eligible Employee who has met the participation requirements described in section 4.1(a) may elect to designate all or a part of his or her Before-Tax Contributions as Roth Contributions. Such designation shall be prospective only and shall be made at the time and in the manner specified by the Committee. Any election by a Participant to designate all or part of his or her Before-Tax Contributions as Roth Contributions shall remain in force until modified by the Participant or until the Participant ceases to be eligible to participate in the Plan. 
Amounts designated as Roth Contributions shall be included in the Participant’s taxable income in the year of contribution, but unless otherwise noted, these Roth Contributions shall be treated as Before-Tax Contributions for all other purposes under this Plan.
(c)    Catch-Up Contributions. Each Eligible Employee who has met the participation requirements described in section 4.1(a), and who has attained age 50 before the end of the Plan Year, shall be eligible to make a separate election of catch-up contributions in accordance with, and subject to the limitations of, Code section 414(v). Such catch-up contributions shall not be taken into account for purposes of the Plan provisions implementing the required limitations of Code sections 402(g) and 415. In addition, the Plan shall not be treated as failing to satisfy the provisions of the Plan implementing the requirements of Code section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416, as applicable, by reason of making such catch-up contributions.
(d)    Payment to Trust Fund. The Employer shall contribute to the Trust Fund the Before-Tax Contributions and Roth Contributions elected by its Eligible Employees for each payroll period. These contributions shall be made as soon as practicable after the payroll period, provided that in no event shall contributions under this section for any Plan Year be made later than—

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(1)    the date prescribed by law for the Employer to obtain a federal income tax deduction for the Plan Year for which the contributions are made; or 
(2)    the date required under ERISA, if earlier. 
Contributions under section 5.1(a) shall be allocated to the Participant’s Before-Tax Contributions Account and contributions under section 5.1(b) shall be allocated to the Participant’s Roth Contributions Account.
5.2 After-Tax Contributions
(a)    Election by Participant. Each Eligible Employee who has met the participation requirements described in section 4.1(a) may elect to make After-Tax Contributions for each payroll period in an amount specified by the Participant under a Pay Reduction Agreement described in section 5.7. This reduction for After-Tax Contributions shall be a whole percentage of Compensation (subject to the limits of section 5.9 and Appendix A or Appendix B, if applicable). Notwithstanding the above, in the interests of managing nondiscrimination test results under section 5.8(c) for any Plan Year, the Committee may, in its sole and absolute discretion, impose more restrictive limits on the percentage of Compensation that may be contributed as After-Tax Contributions by Participants who are Highly Compensated Employees.
(b)    Payments to the Trust Fund. After-Tax Contributions under this section 5.2 shall be paid to the Trust Fund as soon as practicable after the payroll period, and in no event after the date required by ERISA. Contributions under this section shall be allocated to the Participant’s After-Tax Contributions Account.
5.3 Matching Contributions
(a)    Regular Matching Contributions. Except as provided in Appendix A and Appendix B, each Employer shall make Matching Contributions on behalf of each of its Participants for each payroll period in an amount equal to 50 percent of the first 4 percent of Compensation contributed on behalf of the Participants for each payroll period (but only with respect to Before-Tax Contributions under section 5.1(a) or Roth Contributions under section 5.1(b)). However, an Employer shall not make Matching Contributions with respect to Before-Tax Contributions that a Participant separately elects to make as catch-up contributions pursuant to section 5.1(c), regardless of whether any Before-Tax Contributions so elected are categorized as catch-up contributions in accordance with Code section 414(v). Effective for Compensation paid after December 31, 2021, the amount of regular matching contributions described above shall be increased to a safe harbor matching contribution of 100 percent of the first six percent of Compensation. No other provisions of this section are changed.

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(b)    True-Up Matching Contributions. Except as provided in Appendix A and Appendix B, for each Plan Year, the Employer shall provide to each Participant who is in active employment with the Company or an Affiliate on the last day of the Plan Year an additional “true- up” Matching Contribution equal to the difference (if any) between—
(1)    the Matching Contribution to which the Participant would have been entitled under section 5.3(a) considering the amount of the Participant’s Before-Tax Contributions and Roth Contributions for the entire Plan Year; and 
(2)    the Matching Contribution made throughout such Plan Year on a pay period by pay period basis. 
This “true- up” Matching Contribution shall be made as soon as administratively feasible following the end of each Plan Year (to be allocated to such Participant’s Account as of the last day of such prior Plan Year). True-up Matching Contributions will be invested pursuant to the investment elections that are current at the time such contributions are made. In no event will adjustments to the “true-up” Matching Contributions be made to reflect any changes in investment performance which occur prior to the date such contributions are actually made.
(c)    Payments to the Trust Fund. Matching Contributions under this section 5.3 shall be paid to the Trust Fund at such time or times as the Employer may determine, but not later than—
(1)    the date prescribed by law for the Employer to obtain a federal income tax deduction for the Plan Year for which the contributions are made; or 
(2)    the date required under ERISA, if earlier. 
Contributions under this section shall be allocated to the Participant’s Matching Contributions Account.
5.4 Retirement Contributions
(a)    Eligibility 
(1)    Prior to January 1, 2022, an Employee who qualified as a Participant under section 4.1(b) was entitled to a Retirement Contribution for the Plan Year if he or she either—
(A)    was actively employed by the Company or an Affiliate on the last day of the Plan Year; or 
(B)    terminated employment before the last day of the Plan Year on account of death or after reaching age 55.
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(2)    Effective for Compensation earned after December 31, 2021, no Employees shall be eligible to receive Retirement Contributions unless specifically provided for by a collective bargaining agreement and memorialized in Appendix C of the Plan. Employees with Retirement Contributions specifically provided for Appendix C are not required to be actively employed on the last day of the Plan Year in order to be eligible to receive Retirement Contributions.
(b)    Amount. For each Plan Year, an Employer shall make Retirement Contributions to the Account of each of its Participants who meets the eligibility requirements described in section 5.4(a) equal to the sum of—
(1)    4 percent of such Participant’s eligible Compensation for the Plan Year; and 
(2)    4 percent of such Participant’s eligible Compensation for the Plan Year in excess of the Social Security Wage Base.
However, notwithstanding the above, only Compensation earned after an Eligible Employee has become a Participant (as determined under section 4.1(b)) shall be considered in determining the amount of Retirement Contributions under this section 5.4(b). 
(c)    Payment to Trust Fund. Retirement Contributions under this section 5.4 shall be paid to the Trust Fund at such time or times as the Employers may determine, but not later than—
(1)    the date prescribed by law for the Employer to obtain a federal income tax deduction for the Plan Year for which the contributions are made; or 
(2)    the date required under ERISA, if earlier.
Contributions under this section shall be allocated to the Participant’s Retirement Contributions Account. 
5.5 Collectively-Bargained Nonelective Employer Contributions
(a)    Eligibility. A collectively-bargained Employee who qualifies as an Eligible Employee under section 2.14(d)(1) shall be entitled to Collectively-Bargained Nonelective Employer Contributions for the Plan Year if he or she—
(1)    qualifies as a Participant for such Plan Year under section 4.1(a); 
(2)    is covered by a collective-bargaining agreement that provides for such contributions, as described in Appendix B; and
(3)    satisfies the additional eligibility requirements that apply to such contributions (if any), as described in Appendix B.

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(b)    Amount. For each Plan Year, an Employer shall make Collectively-Bargained Nonelective Employer Contributions to the Account of each of its Participants who meet the eligibility requirements described in section 5.5(a) equal to the amount determined under Appendix B.
(c)    Payment to Trust Fund. Collectively-Bargained Nonelective Employer Contributions under this section 5.5 shall be paid to the Trust Fund at such time or times as the Employers may determine, but not later than—
(1)    the date prescribed by law for the Employer to obtain a federal income tax deduction for the Plan Year for which the contributions are made; or 
(2)    the date required under ERISA, if earlier.
Contributions under this section shall be allocated to the Participant’s Collectively-Bargained Nonelective Employer Contributions Account.
5.6 Rollover Contributions
(a)    General Rule. This section 5.6(a) applies to the rollover of eligible distributions other than Roth rollovers. In accordance with procedures established by the Committee, an Eligible Employee may contribute cash amounts attributable to eligible rollover distributions from:
(1)    a qualified plan described in Code section 401(a) or 403(a), including the direct rollover of after-tax employee contributions made to such plan;
(2)    an annuity contract described in Code section 403(b); or
(3)    an eligible plan under Code section 457 that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state.
An Eligible Employee may also contribute cash distributions from an individual retirement account or annuity described in Code section 408(a) or (b) that are eligible to be rolled over and would otherwise be includible in gross income.
The Committee may, in its sole and absolute discretion, direct the return of rollover contributions to an Eligible Employee if the Committee determines that such return is necessary to insure the continued qualification of the Plan under Code section 401(a).
Rollover contributions shall be credited to the Eligible Employee’s Rollover Contributions Account, except that a rollover of after-tax employee contributions shall be credited to the Eligible Employee’s After-Tax Rollover Contributions Account.

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(b)    Roth Rollover Contributions. In accordance with procedures established by the Committee, an Eligible Employee may contribute a qualified Roth rollover to the Plan including—
(1)    a direct transfer from a designated Roth account under another qualified plan described in Code section 401(a); or
(2)    an indirect transfer of the portion of a distribution from a designated Roth account under another applicable retirement plan that would have been includible in the Eligible Employee’s gross income if not for the rollover.
Amounts contributed to the Plan pursuant to this section 5.6(b) shall be credited to the Eligible Employee’s Roth Rollover Contributions Account.
5.7 Pay Reduction Agreements
(a)    General Rule. Except as provided in section 5.7(b), an Eligible Employee who has satisfied the requirements to become a Participant section 4.1(a) can make Before-Tax Contributions under section 5.1(a), Roth Contributions under section 5.1(b), catch-up contributions under section 5.1(c), and After-Tax Contributions under section 5.2 only by filing with the Committee a Pay Reduction Agreement in a manner specified by the Committee. Under this Pay Reduction Agreement, the Eligible Employee’s Compensation may be reduced on a before-tax and/or after-tax basis (as specified by the Eligible Employee) within the limits specified under section 5.1 or section 5.2 (as applicable), and the Employer shall agree to contribute these withheld amounts to the Plan on the Eligible Employee’s behalf in accordance with section 5.1 or section 5.2 (as applicable). 
The Pay Reduction Agreement shall be filed with the Committee at a time specified by the Committee before the date on which it is to take effect. A Participant’s Pay Reduction Agreement shall remain in effect until canceled or amended.
(b)    Automatic Enrollment for Newly Eligible Employees. 
(1)    General Rule. Except as provided in Appendix A or Appendix B, an Eligible Employee shall be treated as having filed a Pay Reduction Agreement authorizing Before-Tax Contributions equal to three percent of Compensation, commencing as of the first day of the month next following his or her satisfaction of the eligibility requirements described in section 4.1(a) unless such Eligible Employee affirmatively elects in advance of such date to contribute at a different percentage, to contribute on a Roth or after-tax basis, or to decline participation. Effective April 1, 2021, the three percent of Compensation automatic enrollment rate is increased to four percent of Compensation. Effective for Eligible Employees hired or rehired on or after 
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January 1, 2022, the amount of the Pay Reduction Agreement is increased to six percent of Compensation. 

However, the Before-Tax Contribution rate for a nonunion Employee who was eligible to participate in the Tegrant Investment and Retirement Plan on December 31, 2012, and who becomes an Eligible Employee under this Plan as of January 1, 2013, shall be set automatically at the rate required (if any) to ensure that the sum of his or her Before-Tax Contributions and Roth Contributions on January 1, 2013 are equal to three percent of Compensation (subject to such Employee’s affirmative election to contribute in a different manner or to decline participation). 
(2)    Notice. The Committee shall provide Eligible Employees with notice of the automatic contribution feature at least 30 days in advance of the first payroll deduction under section 5.7(b)(1).
(c)    Suspension of Contributions. A Pay Reduction Agreement may be canceled by a Participant at any time during the Plan Year by giving notice to the Committee at a time and in a manner specified by the Committee. This notice shall be effective, and the Pay Reduction Agreement shall be cancelled, as soon as administratively practicable following the receipt of such notice by the Committee. Any Participant who elects to suspend contributions pursuant to this section 5.7(c) shall be eligible to resume contributions as of any later date by filing with the Committee a new Pay Reduction Agreement, which shall be effective as soon as administratively practicable following its receipt by the Committee.
(d)    Change in Contributions. A Pay Reduction Agreement may be amended by a Participant to increase or decrease the percentage amount of the Participant’s Before-Tax Contributions, Roth Contributions, or After-Tax Contributions by giving notice to the Committee at a time and in a manner specified by the Committee. This notice shall be effective as soon as administratively practicable following the receipt of such notice by the Committee.
5.8 Limitations on Contributions
(a)    Limit on Before-Tax Contributions. No Employer shall make Before-Tax Contributions (which, for this purpose, shall also include Roth Contributions) for any calendar year for any Member which, when aggregated with any previous deferrals by the Member pursuant to any other cash or deferred arrangement maintained by the Company or an Affiliate under Code section 401(k), are in excess of $18,000 (or such greater amount as may be determined under Code section 402(g)). To the extent that any Before-Tax Contributions are made in contravention of the preceding sentence, such excess amounts (plus earnings or minus losses, determined in the manner described below), shall be refunded to the Member as soon as administratively practicable after the end of the Plan Year, but no later than April 15 of the Plan Year following the Plan Year in which the excess deferrals occurred. 
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In addition, if the limitation in Code section 402(g) would be exceeded by the total of the Member’s Before-Tax Contributions under this Plan and deferrals for the same calendar year made under any other cash or deferred arrangement maintained by an employer other than an Affiliate, the excess amount designated by the Member (or by the Employer on the Member’s behalf) shall be refunded to the Member no later than April 15 following such calendar year. The amount of excess deferrals refunded by the Plan shall not exceed the Member’s Before-Tax Contributions for the calendar year.
Refunds of excess deferrals under this section 5.8(a) shall be taken first from the Member’s Roth Contributions Account, and then from the Member’s Before-Tax Contributions Account (but only to the extent that the excess deferrals for such Plan Year exceed the amount of the Member’s Roth Contributions for such Plan Year).
Any refund required under this section 5.8(a) shall be adjusted for attributable earnings and losses, as determined under section 6.5, up to the end of the Plan Year for which the deferrals were made (and there shall be no adjustment for earnings and losses for any period after the end of the Plan Year for which the deferrals were made).
(b)    Actual Deferral Percentage Test. The actual deferral percentage for each Plan Year of the group of Highly Compensated Employees eligible to participate in the Plan shall not exceed the greater of—
(1)    one and one-quarter times the actual deferral percentage of the group of Nonhighly Compensated Employees for such Plan Year; or
(2)    the lesser of (A) two times the actual deferral percentage of the group of Nonhighly Compensated Employees for such Plan Year or (B) two percentage points plus the actual deferral percentage of the group of Nonhighly Compensated Employees for such Plan Year.
The actual deferral percentage of each group of Eligible Employees for any Plan Year shall be the average of the ratios (calculated separately for each Eligible Employee in each group) of (i) the Before-Tax Contributions and Roth Contributions made on behalf of each Eligible Employee for such Plan Year to (ii) such Eligible Employee’s Compensation for the Plan Year. In the discretion of the Committee, the Compensation used for this purpose may be limited to Compensation for the portion of the Plan Year during which the Eligible Employee satisfied the eligibility requirements of section 4.1(a), provided that this alternative is applied uniformly to all Eligible Employees for the Plan Year. Before-Tax Contributions and Roth Contributions shall be taken into account for purposes of this test only if they are allocated to the Eligible Employee’s Account as of a date within the Plan Year and are paid to the Trust Fund within 12 months after the end of the Plan Year.

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To the extent necessary to conform to the limitation of this section 5.8(b), the Committee shall reduce Before-Tax Contributions and Roth Contributions made on behalf of the Highly Compensated Employees consistent with regulations issued under Code section 401(k). Such reduction shall be effected by reducing contributions made on behalf of Highly Compensated Employees in the order of the dollar amount of such contributions, beginning with the Highly Compensated Employees who elected the largest dollar amount of such contributions.
Excess contributions determined under this section 5.8(b) shall be refunded to the Member with the income thereon and without regard to any other provision in the Plan. Refunds of excess contributions under this section 5.8(b) shall be taken first from the Member’s Roth Contributions Account, and then from the Member’s Before-Tax Contributions Account (but only to the extent that the excess contributions for the Plan Year exceed the amount of the Member’s Roth Contributions for such Plan Year).
The income that is refunded under this section 5.8(b) shall be calculated in accordance with section 6.5 and applicable Treasury regulations or other regulatory guidance. However, a refund under this section shall not include income attributable to any period after the end of the Plan Year for which the contributions were made.
A refund shall occur within the first two and one-half months after such Plan Year, or as soon as practicable thereafter, but in no event later than 12 months after the end of the Plan Year. A refund of excess contributions under this section 5.8(b) shall be coordinated with any refund required under section 5.8(a). Any Matching Contributions made with respect to Before-Tax Contributions or Roth Contributions that are refunded pursuant to this section 5.8(b) shall be treated as a forfeiture (and shall be used to reduce future Matching Contributions due under section 5.3 from the Employer of the affected Member).
Effective for contributions made to the Plan on and after January 1, 2022, the plan has been amended to provide safe harbor matching contributions to the nonunion portion of the Plan. No actual deferral percentage test shall be required for the nonunion portion of the Plan beginning with the 2022 Plan Year.
(c)    Actual Contribution Percentage Test. The actual contribution percentage for each Plan Year of the group of Highly Compensated Employees eligible to participate in the Plan shall not exceed the greater of—

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(1)    one and one-quarter times the actual contribution percentage of the group of Nonhighly Compensated Employees for such Plan Year; or
(2)    the lesser of (A) two times the actual contribution percentage of the group of Nonhighly Compensated Employees for such Plan Year or (B) two percentage points plus the actual contribution percentage of the group of Nonhighly Compensated Employees for such Plan Year.
The actual contribution percentage of each group of Eligible Employees for any Plan Year shall be the average of the ratios (calculated separately for each Eligible Employee in each group) of (i) the After-Tax and Matching Contributions made on behalf of each Eligible Employee for such Plan Year to (ii) the Eligible Employee’s Compensation for the Plan Year. In the discretion of the Committee, the Compensation used for this purpose may be limited to Compensation for the portion of the Plan Year during which the Employee satisfied the participation requirements of section 4.1(a), provided that this alternative is applied uniformly to all Eligible Employees for the Plan Year. After-Tax and Matching Contributions shall be taken into account for purposes of this test only if they are allocated to the Eligible Employee’s Account as of a date within the Plan Year, are paid to the Trust Fund within 12 months after the end of the Plan Year, and (regarding Matching Contributions only) are made on account of the Eligible Employee’s Before-Tax Contributions (or Roth Contributions) for the Plan Year.
To the extent necessary to conform to the limitation described in this section 5.8(c), the Committee shall reduce After-Tax and Matching Contributions made on behalf of the Highly Compensated Employees in a manner similar to the method described in section 5.8(b). Any After-Tax and Matching Contributions so reduced (including allocable income) shall be refunded to the Member. The income on After-Tax and Matching Contributions that are refunded under this section 5.8(c) shall be calculated in accordance with section 6.5 and applicable Treasury regulations or other regulatory guidance. However, a refund under this section shall not include income attributable to any period after the Plan Year for which the contributions were made.
Any refund made pursuant to this section 5.8(c) shall be paid without regard to any other provision in the Plan. Each refund shall occur within the first two and one-half months after the Plan Year, or as soon as practicable after that date, but in no event later than 12 months after the end of the Plan Year. Any refund of After-Tax and Matching Contributions shall be coordinated with any forfeiture required under section 5.8(b) and shall not discriminate in favor of those Highly Compensated Employees receiving such distributions.
Effective for contributions made to the Plan on and after January 1, 2022, the plan has been amended to provide safe harbor matching contributions to the nonunion portion of the Plan. No actual contribution percentage test shall be required for the nonunion portion of the Plan beginning with the 2022 Plan Year.

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(d)    Special Testing Provisions.
(1)    For purposes of section 5.8(b), the actual deferral percentage of a Highly Compensated Employee who is eligible for Before-Tax Contributions or Roth Contributions under two or more plans described in Code section 401(k) that are maintained by the Company or an Affiliate shall be determined as if all such contributions were made under a single Plan, except as otherwise provided in regulations under Code section 401(k).
For purposes of section 5.8(c), the actual contribution percentage of a Highly Compensated Employee who is eligible to participate in two or more plans providing for After-Tax or Matching Contributions (within the meaning of Code section 401(m)) that are maintained by the Company or an Affiliate shall be determined as if all these contributions are made under a single plan, except as otherwise provided in regulations under Code section 401(m).
(2)    For purposes of this section 5.8, the actual deferral percentages and actual contribution percentages shall be determined by considering all applicable contributions made under any other plans that are aggregated with this Plan for purposes of Code sections 401(a)(4) and 410(b). If other plans are permissively aggregated with this Plan for purposes of Code section 401(k) or 401(m), the aggregated plans must satisfy Code sections 401(a)(4) and 410(b) as if they constituted a single plan.
(3)    In the discretion of the Committee, the actual contribution percentage for a Participant may be determined by taking into account all or part of his or her Before-Tax Contributions and Roth Contributions, provided that the requirements in applicable Treasury regulations are satisfied.
(4)    In addition to the foregoing, if the Committee determines during the course of the Plan Year that the actual deferral percentage test in section 5.8(b) or the actual contribution percentage test in section 5.8(c) might not be met for the Plan Year, the Committee may reduce, at any time, the maximum percentage of Compensation at which Highly Compensated Employees may elect Before-Tax Contributions, Roth Contributions, and/or After-Tax Contributions to the percentage deemed necessary to satisfy the appropriate test for the Plan Year. Any such limitation shall be treated as an employer-provided limit with respect to these Highly Compensated Employees for purposes of electing catch-up contributions pursuant to section 5.1(c).

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(5)    The portion of the Plan that benefits Eligible Employees who are included in collective bargaining units shall be tested separately from the portion of the Plan that benefits Eligible Employees who are not covered by collective bargaining units. In addition, when testing the portion of the Plan that benefits Eligible Employees who are members of collective bargaining units, (A) this portion of the Plan shall not be subject to the average contribution percentage test described in section 5.8(c) and (B) the Committee may test each bargaining unit separately under section 5.8(b) or may combine two or more bargaining units into a single test (provided that any such combinations are reasonable and reasonably consistent from year to year).
5.9 Limitation on Annual Additions
(a)    General Limitation. Notwithstanding any other provision of this Article 4, the Annual Additions (as defined in section 5.9(c)) with respect to a Member for a Plan Year shall not exceed the lesser of—
(1)    $53,000, or any higher annual amount permitted under Code section 415(d); or
(2)    100 percent of the Member’s Compensation for the Plan Year.
(b)    Reduction in Annual Additions. If in any Plan Year a Member’s Annual Additions exceed the limitation determined under section 5.9(a), such excess shall not be allocated to the Member’s accounts in any other defined contribution plan. Instead, the excess shall be taken first from the Member’s subaccounts under this Plan as follows:
(1)    to the extent allowed by regulations, the Member’s After-Tax Contributions, or any part thereof, shall be refunded to the Member, along with any earnings attributable thereto;
(2)    to the extent allowed by regulations, the Member’s Before-Tax Contributions, or any part thereof, shall be refunded to the Member, along with any earnings attributable thereto; 
(3)    to the extent allowed by regulations, the Member’s Roth Contributions, or any part thereof, shall be refunded to the Member, along with any earnings attributable thereto; and
(4)    the Matching Contributions that would have been allocated to the Member’s Account but for this section 5.9 shall be placed in a suspense account.
Any amount held in a suspense account shall be used to reduce contributions by the Employer for the next Plan Year. Such suspense account shall share in the gains and losses of the Trust Fund on the same basis as other Accounts. 

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Effective for contributions made to the Plan on and after January 1, 2022, the plan has been amended to provide safe harbor matching contributions to the nonunion portion of the Plan. No actual contribution percentage test shall be required beginning with the 2022 Plan Year.
(c)    Annual Additions. For purposes of this section, Annual Additions mean the sum, credited to a Member’s Account under this Plan and the Member’s accounts under all other qualified defined contribution plans maintained by the Company or an Affiliate, of—
(1)    Company and Affiliate contributions;
(2)    forfeitures;
(3)    Employee contributions;
(4)    amounts allocated to an individual medical account (as defined in Code section 415(l)) that is part of a defined benefit plan maintained by the Company or an Affiliate; and
(5)    amounts (derived from contributions paid after December 31, 1985, in taxable years ending after that date) attributable to post-retirement medical benefits allocated to the separate account of a key employee (as defined in Code section 419A(d)(3)) under a welfare benefit fund (as defined in Code section 419(e)) maintained by the Company or an Affiliate.
However, any amount described in section 5.9(c)(4) or (5) shall not be counted as an Annual Addition in applying the rule in Code section 415(c)(1)(B) and section 5.9(a)(2) of the Plan (limiting Annual Additions to 100 percent of Compensation). In addition, restored forfeitures shall not be treated as Annual Additions.
(d)    Definition of Affiliate. In applying the limitations on contributions under this section, an employer shall be treated as an Affiliate of the Company if, in determining common control under Code section 414(b) and (c), the phrase “more than 50 percent” were substituted for the phrase “at least 80 percent” each place the latter appears in Code section 1563 and in the regulations under Code section 414(c).
(e)    IRS Regulations. This section 5.9 shall be interpreted and applied consistently with the final regulations under Code section 415 that were adopted by the Internal Revenue Service on April 5, 2007 (and all subsequent modifications to such regulations). These regulations are hereby incorporated by reference.
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Article 6. Investment Funds
6.1 Investment of Contributions
(a)    Election of Investments. Each Participant shall elect to direct the investment of all Plan contributions made on his or her behalf into any one or more of the Funds in increments of 1 percent (except that the amount directed into the Sonoco Stock Fund may not exceed 50 percent of such contributions). The Participant shall make this election upon becoming a Participant by giving notice in a manner specified by the Committee. 
(b)    Default Election. In the event that a Participant fails to make the election described in section 6.1(a) upon first becoming a Participant, his or her Account shall be invested in the Target Date Retirement Fund applicable to the Participant (or similar Fund selected by the Investment Council in its sole discretion). The Fund designated by the Investment Council under this section 6.1(b) is intended to be a qualified default investment arrangement under ERISA section 404(c)(5) (and related regulations). As such, the Committee shall provide a notice to Participants describing—
(1)    the circumstances under which contributions will be invested in the default Fund selected by the Investment Council under this section 6.1(b);
(2)    the investment objectives, risk and return characteristics, and fees and expenses related to the default Fund selected by the Investment Council under this section 6.1(b);
(3)    the right of Participants to self-direct the investment of their contributions into the other Funds; and 
(4)    where Participants can obtain explanations of the other Funds.
This notice shall be provided to each Participant at least 30 days in advance of the date of the first investment that is made on the Participant’s under this section 6.1(b) and at least 30 days in advance of each subsequent Plan Year. 
(c)    Changes in Elections. Each Participant may change his or her investment election for future contributions at any time (in 1 percent increments) by giving notice of such change to the Committee at a time and in a manner specified by the Committee (subject to the limitation described in section 6.1(a) that no more than 50 percent of future contributions may be directed into the Sonoco Stock Fund). This change shall be effective as soon as administratively practicable following the receipt of such notice.

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6.2 Investment Transfers
Each Member may elect to transfer the assets in any Fund to any one or more of the other Funds in 1 percent increments at any time by giving notice of such transfer to the Committee at a time and in a manner specified by the Committee. This transfer shall be effective as soon as administratively practicable following the receipt of such notice.
6.3 Sonoco Stock Fund
(a)    Dividends. Each Member (or Beneficiary) who has a portion of his or her Account invested in Company Stock under the Sonoco Stock Fund may elect to have any cash dividends attributable to such investments—
(1)    retained in the Sonoco Stock Fund and reinvested in Company Stock;
(2)    paid directly in cash to such Member (or Beneficiary); or 
(3)    paid to the Trustee and distributed by the Trustee in cash to such Member (or Beneficiary) no later than 90 days after the end of the Plan Year in which such dividends are paid to the Trustee. 
Any election by a Member or Beneficiary under this section 6.3(a) shall be made at a time and manner prescribed by the Committee, but any procedures prescribed by the Committee shall meet regulatory guidance issued under Code section 404(k) and provide each Member and Beneficiary a reasonable opportunity to (A) make an election before a dividend is paid or distributed to the Member or Beneficiary and (B) change his or her election at least annually. Any dividends that are reinvested in Company Stock shall be 100% vested at all times.
(b)    Voting Rights. Each Member and Beneficiary may, on all matters, direct the Trustee how to vote shares of Company Stock under the Sonoco Stock Fund that are allocated to his or her Account. Full shares of Company Stock shall be voted by the Trustee in accordance with any such directions. Fractional shares shall be combined and voted by the Trustee in a manner that reasonably reflects the voting directions of the Members and Beneficiaries whose Accounts are credited with such fractional shares. The Trustee shall vote all shares of Company Stock for which it does not receive timely voting directions in the same proportion as those shares for which timely voting directions were received.
For voting purposes, each Member and Beneficiary shall be a named fiduciary with respect to the Company Stock that is allocated to his or her Account. Voting directions from Members and Beneficiaries shall be made at a time and in a manner prescribed by the Committee, and any procedures established by the Committee for this purpose shall require the Trustee to hold voting directions from Members and Beneficiaries in strict confidence. The Committee shall provide the Trustee and each Member and Beneficiary with proxy materials and other information that is identical to that provided to other shareholders. 

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(c)    Tender Offers. In the event of a tender offer to acquire Company Stock, the Trustee will provide to each Member and Beneficiary who has a portion of their Accounts invested in the Sonoco Stock Fund with—
(1)    information and material related to such offer; and 
(2)    a form on which each such Member and Beneficiary can confidentially instruct the Trustee whether to tender the Company Stock allocated to his or her Account. 
For Company Stock allocated to Accounts for which no timely tender instructions are received by Members or Beneficiaries, the Trustee shall act in accordance with the directions given with respect to the majority of the shares of Company Stock for which timely directions were provided to the Trustee by Members and Beneficiaries. 
For purposes of any tender offer, each Member and Beneficiary shall be a named fiduciary with respect to the Company Stock that is allocated to his or her Account.
(d)    Qualifying Employer Securities. The Sonoco Stock Fund shall be invested in qualifying employer securities.
6.4 Plan Expenses
(a)    Investment Fees. Except to the extent paid by an Employer in its sole discretion, expenses attributable to the management and investment of each of the Funds shall be charged against the respective Fund.
(b)    Administrative Expenses. Except to the extent paid by an Employer in its sole discretion, or except to the extent that fees for specific services (e.g., distributions or investment services) are assessed against the Account of specific Members (as determined by the Committee in its sole discretion), all fees paid to the Trustee for trustee services, all fees paid for recordkeeping services performed by the Trustee or by any other third-party service provider, and any other costs or expenses described in section 11.2 shall be paid out of Trust Fund assets and charged against each Member’s Account in the same proportion as the Member’s Account balance bears to the total balance of all Accounts.
6.5 Valuation; Allocation of Investment Earnings and Losses
Following the end of each Valuation Date, the Trustee shall value all assets of the Trust Fund, allocate net gains or losses, and process additions to and withdrawals from Accounts in the following manner:

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(a)    The Trustee shall first compute the fair market value of securities and any other assets comprising each Fund. Each Account shall be adjusted each Valuation Date by applying the closing market price of the Fund on the current Valuation Date to the share/unit balance of the Fund as of the close of business on the current Valuation Date.
(b)    The Trustee shall then account for any request for additions or withdrawals made to or from a specific designated Fund by any Member, including allocations of contributions. In completing the valuation procedure described above, such adjustments in the amount credited to such Accounts shall be made on the Valuation Date to which the investment activity relates. Contributions received by the Trustee pursuant to this Plan shall not be taken into account until the Valuation Date coinciding with or next following the date when the contribution was both actually paid to the Trustee and allocated among the Accounts of Members.
It is intended that this section 6.5 shall operate to distribute among each Account in the Trust Fund all income of the Trust Fund and changes in the value of the assets of the Trust Fund.
6.6 Compliance with ERISA Section 404(c) 
The Plan is intended to constitute a plan that satisfies the requirements of ERISA section 404(c) and, as such, the Plan fiduciaries shall be relieved of liability for losses that may result from a Member’s or Beneficiary’s investment instructions. To the extent that any one Fund does not satisfy the requirements of ERISA section 404(c), the protections thereunder shall continue to apply to all other Funds which otherwise satisfy these requirements. The Committee and Investment Council shall provide all information and take all other steps they deem necessary and appropriate to comply with the requirements of ERISA section 404(c). 

    45    

Article 7. Vesting
7.1 Immediate Vesting in Certain Contributions
Each Member shall have a fully vested interest at all times in his or her After-Tax Contributions Account, After-Tax Rollover Contributions Account, Before-Tax Contributions Account, Paysop Account, Rollover Contributions Account, Roth Contributions Account, Roth Rollover Contributions Account, Tuscarora Money Purchase Pension Plan Account, PPI 401(k) Account, PPI Profit Sharing Account, Peninsula 401(k) Account, Clear Lam 401(k) Account, Conitex 401(k) Account, Corenso 401(k) Account, TEQ 401(k) Account, and Sebro 401(k) Account
7.2 Vesting Schedules for Matching Contributions
(a)    General Rule. Except as otherwise provided in section 7.2(b), a Member shall have at all times a Vested Percentage in his or her Matching Contributions Account equal to 100 percent.
(b)    Vested Percentage in Matching Contributions Account for Certain Union Groups. 
(1)    Menasha. A Member who is covered by the collective bargaining agreement in effect between the Employer and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union, Local 273, covering union Employees at the USPMC -  Menasha location will have the Vested Percentage in his or her Matching Contributions Account determined in accordance with the following schedule:
						
	Years of Vesting Service	Vested Percentage
	Fewer than 3	0%
	3 or more	100%

Vesting Service under this section 7.2(b)(1) shall be determined under the elapsed time vesting provisions described in section 3.1.
(2)    Orville. A Member who is covered by the collective bargaining agreement in effect between the Employer and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union, Local 1-150, covering union Employees at the Orville location, will have the Vested Percentage in his or her Matching Contributions Account determined in accordance with the following schedule:

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	Years of Vesting Service	Vested Percentage
	Fewer than 1	0%
	1 but fewer than 2	25%
	2 but fewer than 3	50%
	3 but fewer than 4	75%
	4 or more	100%

However, any Participant who is subject to this section 7.2(b)(2) shall have a Vested Percentage of 100% if he or she experiences a Separation from Service after November 15, 2009. Years of Vesting Service under this section 7.2(b)(2) shall be determined under the elapsed time vesting provisions described in section 3.1.
7.3 Vested Percentage in Retirement Contributions.
A Member’s Vested Percentage in his or her Retirement Contributions Account shall be determined in accordance with the following schedule:
						
	Years of Vesting Service	Vested Percentage
	Fewer than 3	0%
	3 or more	100%

Vesting Service under this section 7.3 shall be determined under the elapsed time vesting provisions described in section 3.1.
7.4 Vested Percentage in Collectively-Bargained Nonelective Employer Contributions. 
(a)    Tegrant Union Employees. Each Member of the unions listed below shall at all times have a Vested Percentage in his or her Collectively-Bargained Nonelective Employer Contributions Account equal to 100 percent:
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(1)    the International Union of Operating Engineers, Local #465, representing union Employees at Tegrant Corporation’s Butner, NC location;
(2)    the International Association of Machinists and Aerospace Workers Union, Local #1546, representing union maintenance Employees at Tegrant Corporation’s Hayward, CA location; 
(3)    the Teamsters Union, IBT Local #853, representing union production Employees at Tegrant Corporation’s Hayward, CA location; and
(4)    the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union, Local #851, representing union Employees at Tegrant Corporation’s Pardeeville, WI location.   
(b)    Other Eligible Union Groups. Except as provided in section 7.4(a), a Member who is covered by a collective bargaining agreement that provides for Collectively-Bargained Nonelective Employer Contributions, as specified in Appendix B, shall have the Vested Percentage in his or her Collectively-Bargained Nonelective Employer Contributions Account determined as follows:
						
	Years of Vesting Service	Vested Percentage
	Fewer than 3	0%
	3 or more	100%

(c)    Elapsed Time Vesting Service. Vesting Service under section 7.4(b) shall be determined under the elapsed time vesting provisions described in section 3.1 for Eligible Employees who are covered by a collective bargaining agreement in effect between the Employer and one of the following unions:
(1)    the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union, Local 1517, representing union Employees at the Company’s USPMC - DePere location; 
(2)    the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union, Local 273, representing union Employees at the USPMC -  Menasha location; or
(d)    Hours-Based Vesting Service. Vesting Service under section 7.4(b) shall be determined under the hours-based vesting provisions described in section 3.2 for Eligible Employees who are covered by a collective bargaining agreement in effect between the Employer and one of the following unions:

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(1)    the Chicago & Midwest Regional Joint Board Affiliate of Workers United, SEIU, representing union Employees at the Company’s Edinburgh location; or
(2)    the Graphic Communications International Union Local 508M, representing union Employees at the Company’s Franklin location.
7.5  Accelerated Vesting. 
Notwithstanding section 7.2, 7.3, or 7.4, and except as provided in section 7.5(b) below, a Member shall have a Vested Percentage equal to 100 percent if—
(a)    the Member incurs a Separation from Service (as defined in section 3.1(e)(2)) or reaches a Termination Date (as defined in section 3.2(e)(3)) after attaining age 55; 
(b)    the Member dies after reaching age 55 while performing qualified military service (as defined in Code section 414(u)); or
(c)    the Member incurs a Separation from Service due to the divesture of the location in which Member is employed (e.g., divestiture of Canton location effective February 15, 2015).
7.6 Forfeitures
If a Member’s Matching Contributions Account, Retirement Contributions Account, and/or Collectively-Bargained Nonelective Employer Contributions Account are not yet fully vested upon the Member’s Separation from Service, any such nonvested portion shall be forfeited as of the earlier of—
(a)    the date the Member receives a complete distribution of his or her Vested Balance; or
(b)    the date on which the Member incurs five consecutive One-Year Periods of Separation (as defined in section 3.1(e)(1)) or five consecutive One-Year Breaks in Service (as defined in section 3.2(e)(2)), as applicable.
These forfeitures shall be used to defray reasonable administrative costs, restore previous forfeitures to Accounts of reemployed Members under section 7.7(a), and reduce future Matching Contributions, Retirement Contributions, and/or Collectively-Bargained Nonelective Employer Contributions due under the Plan from the Employer of the affected Member, as determined by the Committee in its sole and absolute discretion.
Notwithstanding the foregoing, Company Stock from the Sonoco Stock Fund held in a Participant’s Account shall be forfeited only after all other assets are forfeited. If more than one class of Company Stock from the Sonoco Stock Fund is held in a Participant’s Account, the Plan must forfeit the same proportion of each class.

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7.7 Treatment of Forfeitable Amounts
(a)    General Rule. Except as otherwise provide in section 7.7(b), if a Member incurs a Separation from Service (as defined in section 3.1(e)(2)) or reaches a Termination Date (as defined in section 3.2(e)(3)), as applicable, before his or her Vested Percentage is 100 percent, the portion of the Member’s Account that was forfeited under section 7.6 shall be restored to the Member only if he or she is reemployed by the Company or an Affiliate before incurring five consecutive One-Year Periods of Separation (as defined in section 3.1(e)(1)) or five consecutive One-Year Breaks in Service (as defined in section 3.2(e)(2)), as applicable.
(b)    Orville Collective-Bargaining Unit. If a Member described in section 7.2(b)(2) receives a distribution upon a Separation from Service that is less than the value of the Member’s Account, and such Member is later reemployed by the Company or an Affiliate prior to incurring five consecutive One-Year Periods of Separation (as defined in section 3.1(e)(1)), the portion of such Member’s Matching Contributions Account that was forfeited under section 7.6 shall be restored only if the Member repays to the Plan the full amount of the amount distributed from his or her Matching Contributions Account within five years after the date of the Member’s reemployment.
A Member’s repayment under this section 7.7(b) shall be credited to the Member’s Account as soon as administratively practicable following the date of such repayment. Any such repayment shall be invested in the Funds according to the Member’s current election of investments pursuant to Article 6.
(c)    Source of Restored Forfeitures. Forfeitures that are restored under this section 7.7 shall be restored first from current forfeitures with respect to Accounts of other Members. To the extent such other forfeitures are insufficient, an additional Employer contribution shall be made. 
7.8 Transfer of Employment. 
If a Member transfers from a position of employment in which the Matching Contributions and/or Collectively-Bargained Nonelective Employer Contributions are subject to a vesting schedule under this Article 7 into a position of employment in which any such future contributions will either vest immediately under section 7.2(a) or be subject to a different vesting schedule under section 7.2(b) or 7.4, the Matching Contributions and/or Collectively-Bargained Nonelective Employer Contributions made prior to any such transfer shall continue to be subject to the vesting schedule that applied to such contributions before the date of the Member’s transfer. 
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Article 8. Distributions
8.1 Entitlement to Distribution upon Death of Member
(a)    Death of Member. If a Member dies before the complete distribution of the Vested Balance of his or her Account, the Beneficiary designated by the Member shall be entitled to receive the remaining portion of the Vested Balance of such Account in the form described in section 8.3(b), as of the Valuation Date provided in section 8.4(b), and in compliance with the rules in section 8.7.
(b)    Designation of Beneficiary.
(1)    General Rule. Each Member may designate one or more persons as Beneficiary to receive the remaining portion of the Vested Balance of the Member’s Account in the event of his or her death. Each such designation shall be effective only when filed in writing at a time and in a manner specified by the Committee, and shall revoke all prior designations, subject to the provisions of section 8.1(b)(2).
(2)    Rule for Surviving Spouses. A Spouse to whom the Member was married on the date of his or her death shall be the Member’s sole Beneficiary unless, prior to the Member’s death, one or more other persons have been named pursuant to a qualified alternate designation (as defined in section 8.1(b)(3)) made and filed prior to the Member’s death in accordance with procedures prescribed by the Committee. The consent of a Member’s Spouse shall not be required where—
(A)    the Committee determines that the required consent cannot be obtained because there is no Spouse or the Member’s Spouse cannot be located;
(B)    the Committee determines that the Member is legally separated;
(C)    the Committee determines that the Member has been abandoned within the meaning of local law and there is a court order to that effect; or
(D)    there exists any other circumstance (as determined by the Committee) prescribed by law as an exception to the consent requirement.
(3)    Qualified Alternate Designation. A designation shall be a qualified alternate designation only if—
(A)    the Member, in a signed written instrument, designates by name one or more persons to be Beneficiary in lieu of, or along with, the Member’s surviving Spouse;

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(B)    the Member’s surviving Spouse (if any), determined at the time of the Member’s death, has consented in writing to the naming of such Beneficiary and has acknowledged the effect of such consent; and
(C)    such consent is witnessed by a notary public or a Plan representative.
A qualified alternate designation may not be changed without spousal consent. Any spousal consent to a qualified alternate designation shall be irrevocable.
(4)    Default Beneficiary. If no person is otherwise designated under this subsection, if a designation is revoked in whole or in part, or if no designated Beneficiary survives the Member, benefits payable under the Plan shall be paid to the Member’s surviving Spouse, or if there is no surviving Spouse, to the Member’s estate.
If any payment is made under the Plan to any Beneficiary in reasonable reliance on (A) a written attestation by the Member of unmarried status, (B) a spousal consent that on its face conformed to the requirements set forth above, or (C) evidence establishing to the Committee’s satisfaction that a Member’s Spouse could not be located at the time of a Beneficiary designation, the Plan’s liability for death benefits shall be satisfied to the extent of such payment, and the Plan shall have no liability to any Spouse to such extent.
(5)    Death of Beneficiary. If a Beneficiary who is entitled to receive payments from the Trust Fund dies before receiving all payments due, any remaining benefit shall be paid to the Beneficiary’s estate in a lump sum.
8.2 Distribution upon Separation from Service for Reasons Other Than Death
Upon a Member’s Separation from Service (as defined in section 3.1(e)(2)) for reasons other than death, such Member shall be entitled to the Vested Balance of his or her Account in the form described in section 8.3(a) (or 8.5, if applicable), and as of the Valuation Date provided in section 8.4(a) (or 8.5, if applicable).
8.3 Form of Benefit Payments
The forms of payment described in this section 8.3 are subject to the restrictions contained in sections 8.4(c) and 8.6.
(a)    Distribution upon Separation from Service. Except as otherwise provided in section 8.5 (regarding special distribution provisions that apply to the Tuscarora Money Purchase Pension Plan Account), a Member who is entitled to a distribution under section 8.2 may elect to receive his or her Account—
(1)    in a lump sum payment;

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(2)    in up to five substantially equal annual installments (as elected by the Member or the Beneficiary), with each installment payment equal to the Vested Balance of the Account as of the payment date divided by the remaining number of payments;
(3)    prior to February 1, 2021, in quarterly or annual installments equal to a stated dollar amount or stated number of installment payments from the Vested Balance of the Account (as specified by the Member or Beneficiary), provided that each such payment is at least $1,000. On and after February 1, 2021, in monthly, quarterly, or annual installment payments from the Vested Balance of the Account (as specified by the Member or Beneficiary); or
(4)    in partial withdrawals elected on an as-needed basis in an amount selected by the Member or Beneficiary, provided that each such withdrawal (except the final one) must equal or exceed $1,000.
A Member or Beneficiary who elects initially to receive distributions under section 8.3(a)(2), (3), or (4) may elect to receive the remaining portion of the Vested Balance of his or her Account at any time in a single lump sum payment. In addition, a Member who has elected installment payments under section 8.3(a)(2) or (3) may also elect one or more partial withdrawals under section 87.3(a)(4) during the installment distribution period.
(b)    Distribution upon Death. Except as otherwise provided in section 8.5 (regarding special distribution provisions that apply to the Tuscarora Money Purchase Pension Plan Account), if distribution of a Member’s Account has commenced to the Member under a payment form described in section 8.3(a)(2), (3), or (4), the Beneficiary may either continue receiving those payments or elect any other payment option available under section 8.3(a). Except as otherwise provided in section 8.5, if distribution of a Member’s Account has not already commenced to the Member, a Beneficiary entitled to payment under section 8.1(a) may elect to receive distribution of the Vested Balance of the Member’s Account in any of the payment forms permitted under section 8.3(a).
(c)    Medium of Payment. Distributions under the Plan shall generally be made in cash, except that a Member or Beneficiary may elect to receive all or a portion of the Account that is invested in the Sonoco Stock Fund in the form of Company Stock. (To the extent that a distribution of Company Stock results in a fractional share, the value of any such fractional share shall be distributed in cash.)
(d)    Investment Gains and Losses. Amounts payable hereunder shall continue to accrue earnings and losses under section 6.5 pending such payment.

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8.4 Time of Benefit Payments
(a)    General Rule. Except as otherwise provided in section 8.4(c) (regarding the distribution of small balances) or section 8.5 (regarding special distribution provisions that apply to the Tuscarora Money Purchase Pension Plan Account), distribution to a Member may commence as of the earliest practicable Valuation Date following the Member’s Separation from Service (as defined in section 3.1(e)(2)), or any later Valuation Date (but not later than the Member’s latest allowable commencement date under section 8.7), as the Member may request. A Member requesting a distribution must file such request at a time and in the manner specified by the Committee.
(b)    Distribution Upon Death. Except as otherwise provided in section 8.4(c) (regarding the distribution of small balances), a distribution to a Beneficiary under section 8.1(a) may be made as of the earliest practicable Valuation Date following the Member’s death, or any later Valuation Date (but no later than the Beneficiary’s latest allowable commencement date under section 8.7), as the Beneficiary may request. A Beneficiary requesting a distribution must file such request at the time and in the manner specified by the Committee.
(c)    Small Amounts. Notwithstanding any other provision in this Article 8, if a Member or Beneficiary is entitled to a distribution under this Article 8, and the Vested Balance of the Member’s Account as of the first Valuation Date coinciding with or next following the Member’s Separation from Service (as defined in section 3.1(e)(2)) or death is not greater than $5,000, distribution shall be made in a single sum payment as soon as practicable following such Valuation Date. 
If a Member becomes entitled to an automatic cashout under this section 8.4(c) in excess of $1,000 (effective March 15, 2021, the $1,000 threshold has been eliminated), and the Member does not elect a direct distribution or a qualified rollover, the Committee shall arrange for a rollover distribution to an individual retirement plan in the name of the Member. If no such plan exists at the time of the rollover distribution, the Committee shall establish an individual retirement plan for the benefit of the Member. (Prior to March 15, 2021, account balances of $1,000 or less were distributed directly to the Member or Beneficiary, as applicable).
(d)    Sonoco Stock Fund. Notwithstanding anything to the contrary in this Plan, Participants and their Beneficiaries (as applicable) are entitled to elect to commence distribution of the Company Stock from the Sonoco Stock Fund in their Accounts within one year after Separating from Service due to attaining normal retirement age, dying, or becoming disabled. If a Participant Separates from Service for a reason other than attainment of normal retirement age, death, or disability, the Participant or his or her Beneficiaries are entitled to elect to commence distribution of the Company Stock from the Sonoco Stock Fund in their Accounts no later than one year after the close of the fifth Plan Year after Separation from Service. Any such distributions must comply with the requirements of Section 8.7.
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8.5 Distribution of Tuscarora Money Purchase Pension Plan Account Balances
This section 8.5 applies to each Member who has a balance in the Tuscarora Money Purchase Pension Plan Account.
(a)    Distribution to the Member. If Member who has a balance in the Tuscarora Money Purchase Pension Plan Account becomes entitled to a distribution under section 8.2, the amount credited to such account shall be distributed to the Member in accordance with this section 8.5(a).
(1)    Time of Payment. The time of payment of the Member’s Tuscarora Money Purchase Pension Plan Account shall be determined under section 8.4(a) (or section 8.4(c), if applicable). 
(2)    Normal Form of Payment. 
(A)    Unmarried Members. Except as provided in sections 8.4(c) and 8.5(a)(3), the Tuscarora Money Purchase Pension Plan Account belonging to a Member who is not married on his or her Annuity Starting Date shall be distributed in the form of a Single Life Annuity. 
(B)    Married Members. Except as provided in sections 8.4(c) and 8.5(a)(3), the Tuscarora Money Purchase Pension Plan Account belonging to a Member who is married on his or her Annuity Starting Date shall be distributed in the form of a Qualified Joint and Survivor Annuity. 
(3)    Waiver Procedures. In lieu of the normal forms of payment specified in section 8.5(a)(2), a Member may elect to receive his or her Tuscarora Money Purchase Pension Plan Account in one of the optional payment forms specified in section 8.5(a)(4). However, any such waiver by a Member who is married on his or her Annuity Starting Date shall be subject to the waiver procedures described in this section 8.5(a)(3).
(A)    General Rule. A married Member may elect, in a manner prescribed by the Committee, to waive the Qualified Joint and Survivor Annuity and to elect instead to receive his or her Tuscarora Money Purchase Pension Plan Account in accordance with an optional form of payment described in section 8.5(a)(4). Except as otherwise provided in section 8.5(a)(5), any such election must be filed with the Committee within the 90-day period ending on the Member’s Annuity Starting Date. For this election to be effective—
(i)    the Member’s Spouse must consent in writing to the election;

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(ii)    the election and consent must specify the optional form of benefit;
(iii)    the election and the consent must designate a Beneficiary (if applicable);
(iv)    the Member’s Spouse must acknowledge the financial consequences of the consent; and
(v)    the Spouse’s consent must be witnessed by a notary public or a Plan representative.
(B)    Exception to Consent Requirement. The consent of a Member’s Spouse shall not be required where—
(i)    the Member elects the Qualified Optional Survivor Annuity;
(ii)    the Committee determines that the required consent cannot be obtained because there is no Spouse or the Member’s Spouse cannot be located;
(iii)    the Committee determines that the Member is legally separated;
(iv)    the Committee determines that the Member has been abandoned within the meaning of local law and there is a court order to that effect; or
(v)    there exists any other circumstance (as determined by the Committee) prescribed by law as an exception to the consent requirement.
(C)    Revocation and Modification. An election by a Member under section 8.5(a)(3)(A) to waive the Qualified Joint and Survivor Annuity may be revoked by the Member in writing without the consent of his or her Spouse at any time during the election period. Any subsequent election by a Member to waive the Qualified Joint and Survivor Annuity must comply with the requirements in section 8.5(a)(3)(A). 
(4)    Optional Forms of Payment. In lieu of the normal form of payment specified in section 8.5(a)(2), a Member may elect to his or her Tuscarora Money Purchase Pension Plan Account in accordance with one or more of the following payment options:
(A)    a Single Life Annuity; 
(B)    a Qualified Optional Survivor Annuity (but only for a Member who is married on his or her Annuity Starting Date);

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(C)    a Ten-Year Certain and Life Annuity: or  
(D)    a lump sum payment. 
Any such election made by a Member who is married on his or her Annuity Starting Date must comply with the requirements of section 8.5(a)(3). Any such election made by a Member who is not married on his or her Annuity Starting Date shall be valid only if the Member is furnished with an explanation of the material features of the optional payment form within the notice period described in section 8.5(a)(5).
(5)    Notice and Explanation to Members. Except as otherwise provided in this section 8.5(a)(5), the Committee shall provide to each Member who has a balance in the Tuscarora Money Purchase Pension Plan Account, between 30 and 90 days before the Member’s Annuity Starting Date, a written explanation of the Qualified Joint and Survivor Annuity. This explanation shall describe—
(A)    the terms and conditions of the Qualified Joint and Survivor Annuity and the Qualified Optional Survivor Annuity; 
(B)    the material features and relative values of other optional forms of benefit available under the Plan; 
(C)    the Member’s right to make (and the effect and financial consequences of) a waiver of the Qualified Joint and Survivor Annuity;
(D)    the rights of the Member’s Spouse regarding a waiver of the Qualified Joint and Survivor Annuity; and
(E)    the right of a Member to revoke a prior waiver of the Qualified Joint and Survivor Annuity and the effect and financial consequences of such a revocation.
If the notice required under this section 8.5(a)(5) is not provided to the Member at least 30 days before the Member’s Annuity Starting Date, the election period described in section 8.5(a)(3)(A) shall end on the 30th day following the date on which the explanation was provided. Subject to section 8.5(a)(3), a Member may elect to waive the requirement that the explanation must be provided at least 30 days before the Annuity Starting Date or at least 30 days before the end of the election period (as applicable). In the event of such a waiver, distribution of the Member’s benefits must commence more than seven days after the explanation was provided.
(b)    Distribution to Beneficiaries. If Member who has a balance in the Tuscarora Money Purchase Pension Plan Account dies before receiving a complete distribution of such account, any remaining distribution of such account to the Member’s Beneficiary shall be made in accordance with this section 8.5(b).

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(1)    Death Before the Annuity Starting Date. 
(A)    Time of Payment. If a Member who is subject to this section 8.5(b) dies before his or her Annuity Starting Date, the Member’s Tuscarora Money Purchase Pension Plan Account shall be paid to the Member’s Beneficiary as of the date determined under section 8.4(b) (or section 8.4(c), if applicable).
(B)    Form of Payment. 
(i)    Unmarried Member. If a Member dies before his or her Annuity Starting Date, and such Member does not have a surviving Spouse at the time of his or her death, the Member’s Tuscarora Money Purchase Pension Plan Account shall be distributed to the Member’s Beneficiary in the form of a single lump sum payment.
(ii)    Married Member. Except as otherwise provide in section 8.4(c) or section 8.5(b)(1)(C), if a Member dies before his or her Annuity Starting Date, and such Member has a surviving Spouse at the time of his or her death, the Member’s Tuscarora Money Purchase Pension Plan Account shall be distributed to the Member’s surviving Spouse in the form of a Preretirement Survivor Annuity.
(C)    Waiver Procedures.
(i)    General Rule. A married Member who has a balance in the Tuscarora Money Purchase Pension Plan Account may waive the Preretirement Survivor Annuity and instead—
(I)    designate a Beneficiary other than his or her Spouse to receive such account in the form of a lump sum payment after the Member’s death; or 
(II)    elect to have such account distributed to the Spouse in the form of a single lump sum payment after the Member’s death. 
Any election by a married Member under this section 8.5(b)(1)(C) must be filed with the Committee during the period that begins on the first day of the Plan Year in which the Member attains age 35 and ends on the date of the Member's death. The Member's waiver must be made in a manner prescribed by the Committee. The Member's Spouse must give written consent to the waiver that states the optional payment form and/or the Beneficiary designated by the Member (as applicable) and acknowledges the effect and financial consequences of the waiver. The Spouse's consent must be witnessed by a notary public or a Plan representative.

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(ii)    Exception to Consent Requirement. The consent of a Member's Spouse shall not be required where—
(I)    the Committee determines that the required consent cannot be obtained because there is no spouse or the Member's spouse cannot be located;
(II)    the Committee determines that the Member is legally separated;
(III)    the Committee determines that the Member has been abandoned within the meaning of local law and there is a court order to that effect; or
(IV)    there exists any other circumstance (as determined by the Committee) prescribed by law as an exception to the consent requirement.
(D)    Revocation and Modification. A waiver made by a married Member under section 8.5(b)(1)(C) may be revoked by the Member in writing without the consent of his or her Spouse at any time during the waiver period. Any subsequent election by a Member to waive the Preretirement Survivor Annuity must comply with the requirements of section 8.5(b)(1)(C)(i) above.
(E)    Waiver By Spouse. Notwithstanding the above, a surviving Spouse who becomes entitled to a Preretirement Survivor Annuity under section 8.5(b)(1)(B)(ii) may elect to waive this benefit and elect instead to receive the Member’s Tuscarora Money Purchase Pension Plan Account in the form of a single lump sum payment. 
(F)    Notice to Employee.
(i)    In General. The Committee shall provide each Member, within the notice period described below a written explanation of—
(I)    the terms and conditions of the Preretirement Survivor Annuity;

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(II)    the Member's right to make, and the effect and financial consequences of, a waiver of the Preretirement Survivor Annuity;
(III)    the material features and relative values of the optional forms of benefit; 
(IV)    the rights of the Member's Spouse regarding a waiver of the Preretirement Survivor Annuity; and
(V)    the right of the Member to revoke a prior waiver of the Preretirement Survivor Annuity and the effect and financial consequences of a revocation.
(ii)    Notice Period. The Committee shall provide the notice described in section 8.5(b)(1)(F)(i) within whichever of the following periods ends later—
(I)    the period beginning with the first day of the Plan Year in which the Member attains age 32 and ending on the last day of the Plan Year preceding the Plan Year in which the Member attains age 35; or
(II)    the period beginning on the first day the Member commenced participation in the Plan and ending on the close of the 12-month period following commencement of participation.
Notwithstanding the foregoing, if a Member terminates employment before age 35, the notice shall be provided within one year following the Member's termination. If a Member again becomes an Employee of the Employer before age 35, the Committee must again provide this notice within the period described in section 8.5(b)(1)(F)(ii)(I) or (II), whichever ends later. In no event shall the Committee be required to provide notice to a Member who has no vested benefit under the Plan after the Member has terminated employment with the Employer.  
(2)    Death after the Annuity Starting Date. If distribution of the Member's Tuscarora Money Purchase Pension Plan Account has commenced to the Member in the form of an annuity, benefits payable after the Member's death (if any) shall be made to the Member's Beneficiary as survivor payments in accordance with the form of payment in effect before the Member's death.

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8.6  In-Service Withdrawals
(a)    General Rule. No Member shall make a withdrawal under the Plan prior to incurring a Separation from Service (as defined in section 3.1(e)(2)) except to the extent specifically provided in this section and section 8.6.
(b)    Voluntary Withdrawals. A Member who is in active employment with the Company or an Affiliate may withdraw all or part of his or her After-Tax Contributions Account, After-Tax Rollover Contributions Account, Rollover Contributions Account, and TEQ Pre-2004 Matching Account. A withdrawal under this section 8.6(b) shall be charged against these subaccounts on a pro rata basis. 
(c)    Age 591⁄2 Withdrawals. A Member who is in active employment with the Company or an Affiliate, and who has attained age 591⁄2, may withdraw all or part of the Vested Balance of his or her Account (excluding the portion of such Account that is attributable to his or her Retirement Contributions Account, Collectively-Bargained Nonelective Employer Contributions Account, and Tuscarora Money Purchase Pension Plan Account), or all or part of his or her Corenso Account (without exclusions) after such account balance is transferred to this Plan. A withdrawal after age 591⁄2 shall be charged on a pro rata basis against the various subaccounts from which a withdrawal is permitted under this section 8.6(c). Effective June 1, 2021, the Tuscarosa Money Purchase Plan Account is an eligible source for withdrawals under this section.
(d)    Hardship Withdrawals.
(1)    In General. A Member who is in active employment with the Company or an Affiliate may withdraw on account of hardship all or part of the following accounts: Before-Tax Contributions Account (excluding earnings allocated to such account after 1988); Roth Contributions Account (excluding earnings allocated to such Account); Paysop Account; the Vested Balance of his or her Matching Contributions Account; PPI 401(k) Account (excluding earnings allocated to such Account); Peninsula 401(k) Account (excluding earnings allocable to such Account); Clear Lam 401(k) Account (excluding earnings allocable to such account); Conitex 401(k) Account (excluding earnings allocable to such account); and, effective after the Corenso 401(k) Plan is merged into the Plan, Corenso 401(k) Account. Members may not withdraw on account of hardship any part of his or her Prior Plan Matching Contributions Account or PPI Profit Sharing Account. Effective January 1, 2019, earnings shall no longer be excluded from amounts eligible for hardship withdrawals.
A Member may make a hardship withdrawal under this section 8.6(d) only after first exhausting withdrawals that are otherwise available to the Member under section 8.6(b) and (c).

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(2)    Definition of Hardship. A withdrawal is on account of hardship only if it is on account of an immediate and heavy financial need of the Member and the amount withdrawn is necessary to satisfy such need. 
(A)    Immediate and Heavy Financial Need. A distribution will be on account of an immediate and heavy financial need only if it is on account of—
(i)    medical expenses described in Code section 213(d) incurred by the Member or the Member’s spouse or dependents (as defined in Code section 152 without regard to Code section 152(b)(1), 152(b)(2), and 152(d)(1)(B));
(ii)    costs directly related to the purchase (excluding mortgage payments) of a principal residence of the Member;
(iii)    payment of tuition, related educational fees, and room and board expenses for the next 12 months of post-secondary education for the Member or the Member’s Spouse, children, or dependents (as defined in Code section 152 without regard to Code sections 152(b)(1), 152(b)(2), and 152(d)(1)(B)); 
(iv)    the need to prevent the eviction of the Member from his or her principal residence or foreclosure on the mortgage of the Member’s principal residence;
(v)    burial or funeral expenses for the Member’s deceased parent, Spouse, children, or dependents (as defined in Code section 152 without regard to Code section 152(d)(1)(B)); or
(vi)    expenses for the repair of damage to the Member’s principal residence that would qualify for the casualty deduction under Code section 165 (determined without regard to whether the loss exceeds 10 percent of adjusted gross income).
(B)    Necessary Amount. A hardship withdrawal will be deemed necessary to satisfy an immediate and heavy financial need if—
(i)    the distribution does not exceed the amount of the Member’s immediate and heavy financial need (including any amounts necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution);
(ii)    the Member has previously obtained all other distributions and loans currently available to him or her under this Plan or any other plan maintained by the Company or an Affiliate. Effective January 1, 2019, the Member no longer has to take all available loans under the Plan in order to qualify to receive a hardship withdrawal; and
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(iii)    all plans of deferred compensation maintained by the Employer suspend all Member contributions for the six-month period following receipt of the hardship withdrawal (but only if the withdrawal is comprised, in whole or in part, of Before-Tax and/or Roth Contributions). Effective for hardship distributions made on and after January 1, 2019, this requirement no longer applies, and no Member contributions will be suspended.
(C)    Order of Withdrawals. A hardship withdrawal shall be charged on a pro rata basis against the various subaccounts from which a withdrawal is permitted under section 8.6(d)(1).
(e)    Rules Governing Withdrawals.
(1)    A Member making a withdrawal must file a request with the Committee at the time and in the manner specified by the Committee, and may be assessed a processing fee as determined from time to time by the Committee.
(2)    Effective July 1, 2020, there is no minimum withdrawal requirement under this section 8.6. Prior to July 1, 2020, the minimum withdrawal under this section 8.6 was $500 (or, if less, the entire amount available for the particular withdrawal). However, effective April 1, 2014, this $500 minimum did not apply to any withdrawal under section 8.6(c) (related to withdrawals after age 591⁄2) made by a Member who first became an Eligible Employee on April 1, 2014 in connection with the Company’s acquisition of Reparco USA. Effective March 1, 2017, this $500 minimum did not apply to withdrawals under this section 8.6 from a Member’s PPI 401(k) Account. Effective January 1, 2018, this $500 minimum did not apply to withdrawals under this section 8.6 from a Member’s Clear Lam 401(k) Account or Peninsula 401(k) Account.
(3)    A withdrawal under this section 8.6 shall be made as of the earliest practicable Valuation Date following the date on which the request for withdrawal is made.
(4)    A withdrawal under this section 8.6 shall be charged on a pro rata basis to each Fund (other than the loan fund) in which the affected subaccounts are invested.
(f)    Qualified Birth and Adoption Distribution. Effective June 1, 2021, and in accordance with the terms of the Secure Act, Members may take up to $5,000 as a qualified birth and/or adoption distribution in accordance with procedures established by the Plan administrator.

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(g)    Coronavirus Related Distribution. In accordance with the terms of the Cares Act, Members who are qualified individuals (as defined in the Cares Act) may take an in-service distribution of up to the lesser of $100,000 and the vested portion of the Member’s Account. This distribution is only available on and after April 13, 2020, and on or before December 30, 2020.
8.7 Required Minimum Distributions
(a)    Definitions. For purposes of this Plan, the following definitions apply:
(1)    Required Beginning Date. A Member’s “Required Beginning Date” is April 1 of the calendar year following the later of:
(A)    The calendar year in which the Member attains age 72 (or 701⁄2 if the Member attained age 701⁄2 prior to January 1, 2020); or
(B)    The calendar year in which the Member incurs a Separation from Service (as defined in section 3.1(e)(2)).
Notwithstanding the foregoing, if a Member is a 5 percent owner (as described in Code section 416(i)) at any time during the Plan Year in which the Member attains age 72 (or 701⁄2 if the Member attained age 701⁄2 prior to January 1, 2020), distribution of the Member’s Account shall commence no later than the April 1 of the calendar year following the calendar year in which the Member attains age 72 (or 701⁄2 if the Member attained age 701⁄2 prior to January 1, 2020) regardless of whether the Member has incurred a Separation from Service (as defined in section 3.1(e)(2)).
(2)    Designated Beneficiary. A Member’s “Designated Beneficiary” is any individual designated as a Beneficiary by the Member, in accordance with section 8.1, who remain Beneficiaries as of September 30 of the calendar year following the calendar year in which the Member dies.
(3)    Eligible Designated Beneficiary. A Member’s “Eligible Designated Beneficiary” is any Designated Beneficiary who, on the date of the Member’s death, is:
(A)    The Member’s surviving Spouse;
(B)    The Member’s child who has not attained age 18 (the child will cease being an Eligible Designated Beneficiary upon attainment of age 18);
(C)    The Member’s disabled child (within the meaning of Code section 72(m)(7));
(D)    Chronically ill (within the meaning of Code section 7702B(c)(2) as modified by Code section 401(a)(9)(E)(ii)(IV)); or

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(E)    An individual who is not more than 10 years younger than the Member. 
(b)    Latest Allowable Commencement Dates.
(1)    General Rule. Distribution of a Member’s Account shall commence no later than his or her Required Beginning Date.
(2)    Periodic Benefit Payments. No election under this Article 8 will be effective unless the Member’s total benefit will be distributed over a period that will not exceed—
(A)    the life of the Member;
(B)    the lives of the Member and the Member’s Designated Beneficiary;
(C)    a period certain not extending beyond the life expectancy of the Member; or
(D)    a period certain not extending beyond the joint life and last survivor expectancy of the Member and the Member’s Designated Beneficiary.
(c)    Required Distributions Where Member Dies Before Entire Interest is Distributed.
(1)    If benefits have commenced and the Member dies prior to receiving his or her entire interest under the Plan, the remaining portion of such interest shall be distributed as follows:
(A)    To Eligible Designated Beneficiaries described in sections 8.7(a)(3)(A), (C), (D), or (E), to his or her Eligible Designated Beneficiary at least as rapidly as under the method of distribution selected by the Member;
(B)    To Eligible Designated Beneficiaries described in section 8.7(a)(3)(B), by the end of the tenth year following the year of the Member’s death;
(C)    To Designated Beneficiaries who are not Eligible Designated Beneficiaries, by the end of the tenth year following the year of the Member’s death; or
(D)    To Beneficiaries who are not Designated Beneficiaries, at least as rapidly as under the method of distribution selected by the Member.
(2)    If the Member dies prior to the commencement of benefits under the Plan, the interest payable shall be paid over a time period that does not exceed:  

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(A)    For Eligible Designated Beneficiaries described in sections 8.7(a)(3)(A), (C), (D), or (E), the Eligible Designated Beneficiary’s life expectancy, commencing no later than:
(i)    For Eligible Designated Beneficiaries described in section 8.7(a)(3)(A), distributions are required to begin no later than December 31 of the calendar year preceding the Member’s Required Beginning Date.
(ii)    For Eligible Designated Beneficiaries described in sections 8.7(C), (D), or (E), distributions are required to begin no later than the end of the calendar year following the year of the Member’s death.
(B)    For Eligible Designated Beneficiaries described in section 8.7(a)(3)(B), all amounts must be paid by the end of the tenth year following the year of the Member’s death;
(C)    For Designated Beneficiaries who are not Eligible Designated Beneficiaries, all amounts must be paid by the end of the tenth year following the year of the Member’s death; or
(D)    For Beneficiaries who are not Designated Beneficiaries, all amounts must be paid by the end of the fifth year following the year of the Member’s death.
(d)    Minimum Distribution Amount. If a distribution is required under this section 8.7, the minimum amount that must be distributed each calendar year shall be determined under Code section 401(a)(9) and Treasury Regulations sections 1.401(a)(9)-1 through 1.401(a)(9)-9. 
In accordance with the provisions of the Cares Act, no required minimum distributions were made from the Plan for the 2020 Plan Year.
8.8 Direct Transfers
(a)    General Rule. Notwithstanding any provision of the Plan to the contrary, a distributee may elect, at the time and in the manner prescribed by the Committee, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.

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(b)    Definitions.
(1)    Eligible rollover distribution means any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include—
(A)    any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated beneficiary, or for a specified period of ten years or more; 
(B)    any distribution to the extent such distribution is required under Code section 401(a)(9);
(C)    except as provided below, the portion of any distribution that is not includible in gross income (determined with regard to the exclusion for net unrealized appreciation with respect to employer securities); and 
(D)    the portion of any distribution that represents a hardship withdrawal pursuant to section 8.6(d).
Notwithstanding section 8.8(b)(1)(C), a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of the Participant’s After-Tax Contributions Account or After-Tax Rollover Contributions Account. Any such amounts may be transferred to (i) a qualified trust described in Code section 401(a) or an annuity contract described in Code section 403(b) that agrees to separately account for amounts so transferred (including separately accounting for the portion of such distribution which is includible in gross income and the portion of the distribution which is not includible in gross income); (ii) an individual retirement account described in Code section 408(a); or (iii) an individual retirement annuity (other than an endowment contract) described in Code section 408(b).
In addition, a portion of a distribution from a Member’s Roth Contributions Account or Roth Rollover Contributions Account does not fail to be an eligible rollover distribution merely because the portion is not includible in the distributee’s gross income (determined without regard to the rollover). However, such portion may only be transferred to a Roth IRA or directly transferred to a designated Roth account under a Code section 401(a) plan or a Code section 403(b) plan that agrees to account separately for the amounts so transferred, including separately accounting for the portion of such distribution that is includible in gross income and the portion such distribution that is not so includible. 

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(2)    Eligible retirement plan means—
(A)     an individual retirement account described in Code section 408(a);
(B)    an individual retirement annuity described in Code section 408(b);
(C)    an annuity plan described in Code section 403(a);
(D)    a qualified trust described in Code section 401(a);
(E)    an annuity contract described in Code section 403(b);
(F)    an eligible plan under Code section 457(b) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and that agrees to account separately for amounts transferred into such plan from this Plan; and
(G)    an individual retirement arrangement described in Code section 408A.
(3)    Distributee means a Participant or former Participant. In addition, the Participant’s or former Participant’s surviving Spouse and the Participant’s or former Participant’s Spouse or former Spouse who is the alternate payee under a qualified domestic relations order (as defined in Code section 414(p)) are distributees with regard to the interest of the Spouse or former Spouse.
In addition, a non-Spouse Beneficiary may elect, at a time and in a manner prescribed by the Committee, to have any portion of a distribution from the Plan paid directly to an eligible retirement plan specified by the non-Spouse Beneficiary in a direct trustee-to-trustee transfer. However, in the case of any such distribution to a non-Spouse Beneficiary, an eligible retirement plan shall mean an individual retirement account described in Code section 408(a) or an individual retirement annuity described in Code section 408(b).
(4)    Direct rollover means a payment by the Plan to the eligible retirement plan specified by the distributee.
8.9 Rehired Member
In the event that a Member who has had a Separation from Service (as defined in section 3.1(e)(2)) is rehired by the Company or an Affiliate before having received a complete distribution of the Vested Balance of his or her Account, further distribution of the Member’s Account shall be suspended, and the undistributed balance shall continue to be held in the Account until the Member is again entitled to a distribution under this Article 8.
8.10 Distributions on Account of Military Service
A Member who is performing service in the uniformed services (as defined in chapter 43 of title 38 of the U.S. Code) for a period of more than 30 days shall be treated as having severed 

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from employment under Code section 401(k)(2)(B)(i)(I) during such period of service and may elect to receive all or part of his or her Before-Tax Contributions Account, Roth Contributions Account, and, effective March 1, 2017, his or her PPI 401(k) Account in a lump sum payment. Effective January 1, 2018, Members who satisfy the foregoing criteria may elect to receive all or part of all of their Accounts. If a Member elects to receive a distribution pursuant to this section 8.10, the Member shall be prohibited from making any contributions to the Plan and all other plans maintained by the Company and its Affiliates for six months after the date of the distribution.

Effective March 1, 2017, Members can take Qualified Reservist Distributions from the pretax contribution portion of their PPI 401(k) Accounts. Effective January 1, 2018, Members can take Qualified Reservist Distributions from the pretax and/or Roth contribution portion of any of their Accounts holding pretax or Roth contributions. A “Qualified Reservist Distribution” means any distribution to an individual who is ordered or called to active duty after September 11, 2001, if the Member was (by reason of being a member of a reserve component, as defined in section 11 of Title 37 of the United States Code) ordered or called to active duty for a period in excess of 179 days or for an indefinite period and the Plan makes the distribution during the period beginning on the date of such order or call, and ending at the close of the active duty period.

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Article 9. Loans to Members
9.1 Committee Authorized to Make Loans
Upon application of a Member who is in active employment with the Company or an Affiliate, the Committee may direct the Trustee to make a cash loan to the Member from the Vested Balance of his or her Account (excluding the portion of such Account that is attributable to the Member’s Retirement Contributions Account and Tuscarora Money Purchase Pension Plan Account). Whether these loans are made, as well as their amounts and terms, shall be in the sole discretion of the Committee, subject to the provisions of this Article. 
(Loans shall also be available on a reasonably equivalent basis to a Member or a Beneficiary who is a “party in interest” (as defined in ERISA section 3(14)).)
9.2 Amount of Loans
(a)    Maximum Amount. The maximum amount of any loan permitted under this Article (when added to the outstanding loan balance of all loans to the Member under this Plan and any other qualified retirement plan maintained by the Company or an Affiliate) shall be the lesser of—
(1)    $50,000, reduced by the excess (if any) of—
(A)    the highest outstanding balance of loans from this Plan or any other qualified retirement plan maintained by the Company or an Affiliate during the one-year period ending on the day before the loan was made; over 
(B)    the outstanding balance of loans from this Plan and any other qualified retirement plan maintained by the Company or an Affiliate on the date the loan is made; or
(2)    50 percent of the Member’s Vested Balance at the relevant time.
Notwithstanding the foregoing, for loans issued to qualified individuals (as defined in the Cares Act) on and after April 13, 2020, and on or before September 22, 2020, the $50,000 limit in subsection (1) is increased to $100,000, and the 50% limit in subsection (2) is increased to 100%.
(b)    Minimum Amount. The minimum amount of any loan made under this Article shall be $1,000.
(c)    Collateral. A portion of the Member’s Account equal to the amount of the loan shall be used as collateral to secure the loan.

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(d)    Number of Loans. A Member may have up to two general purpose loans, or one general purpose loan and one residential loan, outstanding from this Plan at any one time.
If a Member who was a Clear Lam employee had more than two outstanding loans from the Clear Lam Plan on January 1, 2018, the foregoing limitation will not apply and the Member will be permitted to have more than two outstanding loans from the Plan at the same time. However, the Member will not be eligible to obtain any new loans from the Plan until he or she has only one outstanding loan. This exception only applies to loans merged into the Plan from the Clear Lam Plan.
9.3 Interest
Each loan made under the Plan shall bear a reasonable rate of interest established by the Committee in a uniform and nondiscriminatory manner on the basis of rates currently charged by commercial lenders for loans made in similar circumstances.
9.4 Term
A loan shall be for the term (in whole month increments) requested by the Member or Beneficiary, but shall not exceed five years (or 20 years, in the case of a loan for the acquisition of the Member’s principal residence). 
9.5 Repayment
(a)    Equal Installments. Loans shall be repaid in equal installments, one per payroll period, representing a combination of interest and principal sufficient to amortize the loan during its term (plus any reasonable processing fees, as determined by the Committee). 
(b)    Active Members. Payments by active Members shall be made each payroll period through payroll withholding. If the payroll period for an active Member changes, the loan installments determined under section 9.5(a) shall be adjusted to reflect the change. 
(c)    Inactive Members and Beneficiaries. A Member who has an outstanding loan upon his or her Separation from Service may continue making payments on a monthly basis by an automatic debit to such Member’s personal bank account.  
(d)    Prepayment. Prepayments of the entire loan balance in a manner acceptable to the Trustee may be made without penalty. Partial prepayments are not allowed.
(e)    Default. If a Member fails to make an installment payment required by this section by 90 days after the date on which such installment is first due, the loan may be declared in default and shall then become immediately due and payable in full. If the Member does not then repay the full loan balance, his or her Account shall be offset by the unpaid loan balance at the earliest time permitted by law.

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(f)    Suspension of Payments during Military Leave. Each Member may elect to suspend his or her loan repayments while on unpaid military leave covered under the Uniformed Services Employment and Reemployment Rights Act of 1994. In such event, the loan term will be extended by the length of the suspension and interest will not accrue during the period of the leave.
(g)    Cares Act Suspension of Loan Payments and Reamortization. Notwithstanding the foregoing, the payment deadlines for loan payments required to be made by qualified individuals (as defined in the Cares Act) between April 13, 2020 and December 31, 2020, may be extended for one year in accordance with the Cares Act. The payment amount shall be reamortized so that the loan is fully paid off one year after the original final payment date.
9.6 Loans Treated as Plan Investments
(a)    Charge to Accounts and Funds. Loan proceeds distributed to a Member shall be charged on a pro rata basis against the various subaccounts from which a loan is permitted under section 9.1. Additionally, loan proceeds distributed to the Member shall be charged, on a pro rata basis, to each Fund in which the affected subaccount is invested. The amount distributed to a Member shall be equal to the face value of the loan less any origination or other fee assessed in connection with making the loan.
(b)    Loan Fund. A promissory note equal to the face value of the loan shall then be credited as an asset of an individual loan fund established in the Member’s name. The value of a Member’s Account shall include the amount of principal and accrued interest remaining to be paid under this note.
(c)    Credit to Accounts and Funds. As soon as reasonably practicable following receipt of loan repayments, the Trustee shall credit principal and interest repayments to the subaccounts of the Member’s Account from which the loan was initially withdrawn on a pro rata basis. The amount of the loan repayment (including principal and interest) shall be invested in the Funds in accordance with the investment election last submitted by the Member or Beneficiary under Article 6.
9.7 Documents
No loan under this Article shall be made until the Member or Beneficiary has—
(a)    completed a loan application setting forth any information the Committee deems appropriate;
(b)    agreed to a promissory note designating the Trustee as payee and stating the amount, term, repayment schedule, interest rate, and other terms and conditions consistent with this Article;

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(c)    authorized and directed that the Employer shall withhold each payroll period, and remit to the Trustee, the installment amounts determined under section 9.5(a); and
(d)    granted a conditional security interest in the Member’s Account to the Trustee as security for repayment of the loan.
All such steps shall be completed by submitting the appropriate forms or as otherwise directed by the Committee.

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 Article 10. Amendment and Termination
10.1 Amendment and Termination
The Company expects the Plan to be permanent, but the Company must necessarily and does hereby reserve the right to amend or modify in any respect, or to terminate, the Plan at any time, for any reason whatsoever, by written resolution of the Company’s Board. Any such amendments to the Plan may be made retroactively if necessary or appropriate to maintain the Plan as a plan meeting the requirements of Code section 401(a). 
In addition, the Committee shall have the authority to adopt in writing any amendment that is not expected to significantly alter the Plan’s contribution provisions or increase its expense.
No amendment of the Plan shall cause any part of the Trust Fund to be used for, or diverted to, purposes other than the exclusive benefit of the Members or their Beneficiaries. No plan amendment may decrease the accrued benefit of any Member. Retroactive plan amendments may not decrease the accrued benefit of any Member determined as of the time the amendment was adopted.
No amendment may eliminate or reduce an early retirement benefit or a retirement-type subsidy (as defined in Treasury regulations), or eliminate an optional form of benefit with respect to benefits attributable to service before the amendment, except as permitted under Code section 411(d)(6).
10.2 Vesting on Termination or Partial Termination
Upon a complete or partial termination of the Plan or complete discontinuance of contributions to the Plan (within the meaning of Treasury Regulation section 1.411(d)-2), no further contributions shall be made under the Plan on behalf of affected Members; the Account of each Member (or, in the case of a partial termination, each affected Member within the meaning of Treasury Regulation section 1.411(d)-2) shall fully vest; and the Accounts of any affected Members shall be distributed at the time and in the manner specified in Article 8.
10.3 Merger, Consolidation, or Transfer
In the case of any merger or consolidation of the Plan with, or any transfer of assets and liabilities of the Plan to, any other plan, provision shall be made so that each Member would, if the Plan were then terminated, receive a benefit immediately after the merger, consolidation, or transfer that is equal to or greater than the benefit the Member would have been entitled to receive immediately before the merger, consolidation, or transfer if the Plan had then been terminated.

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Article 11. Administration
11.1 Plan Administrator and Fiduciary
(a)    Plan Administrator. The general administration of the Plan shall be carried out by the Committee, which shall act as the “plan administrator” within the meaning of Title I of ERISA. 
The Committee shall consist of at least three, but no more than seven, individuals who will serve as members of the Committee by virtue of their job titles, as specified in a resolution adopted by the Board. A Committee member will lose his or her status as such when he or she ceases to hold the job title by virtue of which he or she is a member. In addition, a Committee member may resign at any time by written resignation from his or her job title, submitted to the Company and the Committee. The successor to such job title will then become the successor Committee member.
(b)    Fiduciaries. Plan fiduciaries will have the powers and duties described in this section 11.1(b), and may delegate such duties to the extent permitted under ERISA section 402.
(1)    The Board. The fiduciary duties of Board members are limited to the adoption of resolutions indicating (i) which Employees (by job title) will serve as members of the Committee; and (ii) which Employees (by job title) will serve as members of the Investment Council.
(2)    The Employers. The fiduciary duties of the Company and other Employers hereunder are limited to (i) making contributions to the Plan in the amounts determined by the Committee; and (ii) executing documents by which the Plan is governed.
(3)    The Trustee. The fiduciary duties of the Trustee are those enumerated in the Trust Agreement.
(4)    The Investment Council. The Investment Council shall consist of at least three, but no more than seven, individuals who will serve as members of the Investment Council by virtue of their job titles, as specified in a resolution adopted by the Board. An Investment Council member will lose his or her status as such when he or she ceases to hold the job title by virtue of which he or she is a member. In addition, a member of the Investment Council may resign at any time by written resignation from his or her job title, submitted to the Company and the Investment Council. The successor to such job title will then become the successor Investment Council.
The Investment Council has primary responsibility for the investment of Plan assets including (i) the power to select and remove the Trustee; (ii) the power to 

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select and remove investment managers (and to determine how Plan assets will be allocated among the Trustee and any such investment managers); (iii) the obligation to maintain a written investment policy; (iv) the obligation to determine which Funds will be available under the Plan (to the extent that this responsibility is not delegated to the Trustee or one or more investment managers); and (v) the obligation to evaluate the performance of investment managers and Funds. 

(5)    The Committee. The Committee shall have the duties described in sections 11.6 through 11.10.
11.2 Specialists and Expenses
(a)    The Committee and/or Investment Council may employ any counsel, auditors, and other specialists, and obtain any clerical, actuarial, and other services, and purchase products which are appropriate and helpful in carrying out the provisions of the Plan. Except to the extent paid by the Company or an Affiliate in its sole and absolute discretion, these fees and expenses shall be paid by the Trust Fund.
(b)    The Company or an Affiliate may initially pay any expense that normally would be a charge on the Trust Fund and later obtain reimbursement from the Trust Fund.
(1)    This even applies in cases where at the time of the initial payment of the expense, it is not clear that the Company or Affiliate may lawfully seek reimbursement from the Trust Fund, but such legal right to reimbursement is later clarified.
(2)    It is specifically anticipated that there may be situations, such as litigation, where the Company or an Affiliate might choose to bear costs initially, but later obtain reimbursement many years after the costs were incurred. Such delayed reimbursements shall be permissible.
(c)    Each member of the Committee and Investment Council who is also a full-time Employee of the Company or an Affiliate shall not receive additional compensation for his or her services as a member of the Committee or Investment Council. Any other member of the Committee or Investment Council may receive compensation for services as a member, to be paid from the Trust Fund to the extent not paid by the Company or an Affiliate in its sole and absolute discretion. Any member of the Committee or Investment Council may also receive reimbursement from the Trust Fund to the extent not paid by the Company or an Affiliate in its sole and absolute discretion for expenses properly and actually incurred.
11.3 Records
All resolutions, proceedings, acts, and determinations of the Committee and Investment Council shall be recorded in writing. All such records, together with any documents and instruments as may be necessary for the administration of the Plan, shall be preserved in the custody of the Committee or Investment Council.
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11.4 Manner of Action
Subject to the terms of the Plan, the Committee and Investment Council may from time to time in its discretion establish rules for the conduct of their affairs and the exercise of the duties imposed upon them under the Plan.
A majority of the members of the Committee or Investment Council at the time in office shall constitute a quorum for the transaction of business. All resolutions adopted and other actions taken by the Committee or Investment Council shall be by a majority vote of their members taken either at a meeting or by polling all such members.
The Committee or Investment Council may certify to the Trustee, by majority vote or action as provided for herein, the name of one member of the Committee or Investment Council who is authorized to act on its behalf in its relationship with the Trustee. The Trustee is authorized to act pursuant to the written instructions of any member of the Committee or Investment Council so designated.
11.5 Assistance
The Committee and Investment Council, in its sole and absolute discretion, may delegate any of its powers and duties under this Plan to one or more individuals or committees. In such a case, every reference herein to the Committee or Investment Council shall be deemed to include such individuals as to matters within their jurisdiction.
The Committee and Investment Council shall also have the authority and discretion to engage an administrative delegate who shall perform, without discretionary authority or control, administrative functions within the framework of policies, interpretations, rules, practices, and procedures made by the Committee or Investment Council. 
Any action made or taken by the administrative delegate may be appealed by an affected Member or Beneficiary to the Committee in accordance with the claims review procedures provided in section 11.7. Any decisions that call for interpretations of Plan provisions not previously made by the Committee shall be made only by the Committee. The administrative delegate shall not be considered a fiduciary with respect to the services it provides. Notwithstanding the foregoing, the administrative delegate shall not be relieved of any liability to the Plan or an Employer, Member, or Beneficiary arising from any action (or failure to act) that is judicially determined to result from the administrative delegate’s gross negligence or willful misconduct.
In addition, the Investment Council may, at its discretion, appoint one or more investment managers, each of whom will have full power and authority to manage, acquire, or dispose (or direct the Trustee with respect to acquisition or disposition) of any Plan asset under its control. For purposes of this section, “investment manager” means any person, firm, or corporation who is a registered investment adviser under the Investment Advisers Act of 1940, a bank, or an insurance company, and who (a) has the power to manage, acquire, or dispose of Plan assets, and (b) acknowledges in writing his or her fiduciary responsibility to the Plan.

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11.6 Administration
The Committee shall have all powers necessary or appropriate to carry out the provisions of the Plan. It may, from time to time, establish rules for the administration of the Plan and the transaction of the Plan’s business.
In making any determination or rule, the Committee shall pursue uniform policies established by it. The Committee shall not discriminate in favor of or against any Member. The Committee shall have the exclusive right to make any finding of fact necessary or appropriate for any purpose under the Plan including, but not limited to, the determination of the eligibility for and the amount of any benefit payable under the Plan.
The Committee shall have the right to interpret the terms and provisions of the Plan and to determine any and all questions arising under the Plan or in connection with the administration thereof, including, without limitation, the right to remedy or resolve possible ambiguities, inconsistencies, or omissions, by general rule or particular decision. The Committee shall make, or cause to be made, all reports or other filings necessary to meet the reporting, disclosure, and other filing requirements of ERISA that are the responsibility of “plan administrators” under ERISA.
To the extent permitted by law, all findings of fact, determinations, interpretations, and decisions of the Committee shall be conclusive and binding upon all persons having or claiming to have any interest or right under the Plan.
In carrying out its responsibilities hereunder, the Committee shall have the utmost discretion permitted by law.
11.7 Appeals from Denial of Claims
If any claim for benefits under the Plan is wholly or partially denied, the claimant shall be given notice of the denial. This notice shall be in writing within a reasonable period of time after receipt of the claim by the Committee. This period will not exceed 90 days after receipt of the claim, except that if the Committee determines that special circumstances require an extension of time, the period may be extended up to an additional 90 days. Written notice of the extension shall be furnished to the claimant prior to termination of the initial 90-day period, and it shall indicate the special circumstances requiring an extension of time and the date by which the benefit determination is expected.
Notice of any claim denial shall be written in a manner calculated to be understood by the claimant and shall set forth the following information:

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(a)    the specific reasons for the denial;
(b)    specific reference to the Plan provisions on which the denial is based;
(c)    a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why this material or information is necessary;
(d)    an explanation that a full and fair review by the Committee of the decision denying the claim may be requested by the claimant or his or her authorized representative by filing with the Committee, within 60 days after the notice has been received, a written request for the review; and
(e)    a statement of the claimant’s right to bring a civil action under ERISA section 502(a) following an adverse decision upon review.
If a claimant files a written request for review of a denied claim, the claimant or his or her representative may request, free of charge, reasonable access to and copies of all documents, records, and other information relevant to the claim and may submit written comments, documents, records, and other information relevant to the claim within the 60-day period specified in section 11.7(d). The notice of claim denial shall include a statement of the claimant’s rights to review and submit information pursuant to this paragraph.
The review by the Committee shall take into account all comments, documents, records, and other information submitted by the claimant relating to the claim without regard to whether such material was submitted or considered as part of the initial determination. The decision of the Committee upon review shall be made promptly, and not later than 60 days after the Committee’s receipt of the request for review. However, if the Committee determines that special circumstances require an extension of time, this period may be extended up to an additional 60 days. Written notice of the extension shall be furnished to the claimant prior to termination of the initial 60-day period, and it shall indicate the special circumstances requiring an extension of time and the date by which the decision on review is expected.
If the claim is denied, wholly or in part, the claimant shall be given a copy of the decision promptly. The decision shall be in writing and shall be written in a manner calculated to be understood by the claimant. The decision shall include specific reasons for the denial; specific references to the pertinent Plan provisions on which the denial is based; a statement that the claimant may request, free of charge, reasonable access to and copies of all documents, records, and other information relevant to the claim; and a statement of the claimant’s right to bring a civil action under ERISA section 502(a).
11.8 Notice of Address and Missing Persons
Each person entitled to benefits under the Plan must file with the Committee, in writing, his or her post office address and each change of post office address. If a person entitled to benefits cannot be located, actions compliant with the requirements of Department of Labor Field Assistance Bulletin No. 2014-01 (“FAB 2014-01”) will be taken. If the steps required by FAB 2014-01 are satisfied and the person still cannot be located, the Committee may direct that his or benefit and all further benefits with respect to such person be discontinued and all liability for the payment thereof terminate. However, in the event of the subsequent reappearance of the Member, Beneficiary, or Alternate Payee prior to termination of the 
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Plan, the benefits that were due and payable shall be paid in a single sum, and the future benefits due such person shall be reinstated in full.
11.9 Data and Information for Benefits
All persons claiming benefits under the Plan must furnish to the Committee such documents, evidence, or information as the Committee considers necessary or desirable to administer the Plan. Any such person must furnish this information promptly and sign any documents the Committee may require before any benefits become payable under the Plan.
11.10 Effect of a Mistake
In the event of a mistake or misstatement as to the eligibility, participation, or service of any Member, or the amount of payments made or to be made to a Member or Beneficiary, the Committee shall, if possible, cause such payment amounts to be withheld, accelerated, or otherwise adjusted as will in its sole judgment result in the Member or Beneficiary receiving the proper amount of payments under this Plan. Any such adjustments shall be made in accordance with the correction principles established by the Internal Revenue Service under the Employee Plans Compliance Resolution System or other applicable guidance.
11.11 Indemnity for Liability
To the extent permitted by law, the agents, representatives, directors, officers, and Employees of the Company shall be indemnified by the Company against any and all claims, losses, damages, expenses (including counsel fees), and any other liability (including any amounts paid in settlement with the Company’s approval) arising from such individuals’ action or conduct relating to Plan administration. The Company is not liable to indemnify these persons against such claims, losses, damages, expenses, or liabilities when the same is judicially determined to be attributable to gross negligence or willful misconduct. The Company shall pay the premiums on any bond secured under this section and shall be entitled to reimbursement by the other Employers for their proportionate share.

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Article 12. Trust Arrangements
12.1 Appointment of Trustee
A Trustee for the Plan shall be named in the Trust Agreement, and upon acceptance thereof, the Trustee shall perform the duties and exercise the authority of the Trustee as set forth in the Plan and in the Trust Agreement. Any Trust Agreement holding funds under the Plan is incorporated herein by reference.
12.2 Removal of Trustee; Appointment of Other Trustee
The Company reserves the right to remove the Trustee and to appoint a successor Trustee upon giving 60 days prior written notice to the Trustee, or upon any other date mutually agreed to by the Company and the Trustee.
12.3 Change in Trust Agreements
The Company may from time to time enter into further agreements with a Trustee or other parties and make amendments to Trust Agreements that it deems necessary or desirable to carry out the Plan. The Company may take any other steps and execute any other instruments that it deems necessary or desirable to put the Plan into effect.
12.4 Trust Fund
All deposits under this Plan shall be paid to the Trustee and deposited in the Trust Fund. All assets of the Trust Fund, including investment income, shall be retained for the exclusive benefit of Members and Beneficiaries, shall be used to pay benefits under the Plan or to pay administrative expenses of the Plan and Trust Fund, to the extent not paid by an Employer in its sole discretion, and shall not revert to or inure to the benefit of an Employer, except as provided in section 12.5.
12.5 Reversion of Employer Contributions
(a)    If the Internal Revenue Service initially determines that the Plan does not meet the requirements of Code section 401, the Employer shall be entitled to receive a return of all its contributions made hereunder.
(b)    The portion of a contribution made by an Employer by a mistake of fact shall be returned to the Employer within one year after the payment of the contributions.
(c)    The portion of a contribution made by an Employer and disallowed by the Internal Revenue Service as a deduction under Code section 404 shall be returned to the Employer within one year after the Internal Revenue Service disallows the deduction. All contributions by Employers are strictly conditioned on their current deductibility under Code section 404.

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(d)    Earnings attributable to the contributions to be returned under this section shall not be returned to an Employer, and any losses attributable to these contributions shall reduce the amount returned.
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Article 13. Top-Heavy Plan Provisions
13.1Top-Heavy Determination
The top-heavy provisions of this Article shall be applied as follows.
(a)    Single Plan Determination. Except as provided in section 13.1(b)(2) below, if as of the Applicable Determination Date the aggregate amount of the Account balances of Key Employees under the Plan exceeds 60 percent of the aggregate amount of the Account balances of all Employees (other than former Key Employees) under the Plan, the Plan will be top-heavy, and the provisions of this Article shall become applicable. For the purposes of this Article—
(1)    Account balances shall include the aggregate amount of any distributions made with respect to the Employee during the five-year period (or one-year period for distributions made on account of severance from employment, death, or disability) ending on the Applicable Determination Date and any contribution due but unpaid as of said Applicable Determination Date; and
(2)    the Account balance of any individual who has not performed services for the Employer or the Affiliates at any time during the one-year period ending on the Applicable Determination Date shall not be taken into account.
The determination of the foregoing ratio, including the extent to which distributions, rollovers, and transfers shall be taken into account, shall be made in accordance with Code section 416.
(b)    Aggregation Group Determination.
(1)    If as of the Applicable Determination Date the Plan is a member of a Required Aggregation Group which is top-heavy, the provisions of this Article shall become applicable. For purposes of this section 13.1(b), an Aggregation Group shall be top-heavy, as of the Applicable Determination Date, if the sum of—
(A)    the aggregate amount of account balances of Key Employees under all defined contribution plans in such group, and
(B)    the present value of accrued benefits for Key Employees under all defined benefit plans in such group
exceeds 60 percent of the same amounts determined for all Employees (other than former Key Employees) under all plans included within the Aggregation Group. Account balances and accrued benefits shall be adjusted for any distribution made in the five-year period (or one-year period for distributions made on account of severance from employment, death, or disability) ending on the Applicable Determination Date and any contribution due but unpaid as of the Applicable Determination Date. The account balance of any individual who has not performed services for the Employer or the Affiliates at any time during the one-year period ending on the Applicable Determination Date shall not be taken into account. The determination of the foregoing ratio, including the extent to which distributions (including distributions from terminated plans), 
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rollovers, and transfers are taken into account, shall be made in accordance with Code section 416 and the regulations thereunder.
(2)    If the Plan is top-heavy under section 13.1(a) above, but the Aggregation Group is not top-heavy, this Article shall not be applicable.
(c)    The Committee. The Committee shall have responsibility to make all calculations to determine whether the Plan is top-heavy.
13.2 Definitions
For purposes of this Article, the following definitions apply.
(a)    Aggregation Group means a required aggregation group or a permissive aggregation group as follows.
(1)    Required Aggregation Group. All plans maintained by the Company and Affiliates in which a Key Employee participates shall be aggregated to determine whether the plans, as a group, are top-heavy. Each other plan of the Company and Affiliates which enables this Plan to meet the requirements of Code section 401(a) or section 410 shall also be aggregated.
(2)    Permissive Aggregation Group. One or more plans maintained by the Company and Affiliates, which are not required to be aggregated, may be aggregated with each other or with plans under section 13.2(a)(1) if such group would continue to meet the requirements of Code sections 401(a)(4) and 410 with such plan(s) being taken into account.
(b)    Applicable Determination Date shall mean, with respect to the Plan, the Determination Date for the Plan Year of reference and, with respect to any other plan, the Determination Date for any plan year of such plan which falls within such calendar year as the Applicable Determination Date of the Plan.
(c)    Determination Date shall mean, with respect to the initial plan year of a plan, the last day of such plan year and, with respect to any other plan year of a plan, the last day of the preceding plan year of such plan.
(d)    Key Employee means a Member or Beneficiary of such Member, if such Member for the Plan Year containing the Determination Date is—
(1)    an officer of the Company or an Affiliate who has annual Compensation greater than $170,000 (as indexed from time to time in accordance with Code section 416(i));
(2)    a 5-percent owner of the Company or an Affiliate; or
(3)    a 1-percent owner of the Company or an Affiliate having annual Compensation of more than $150,000.
Ownership shall be determined in accordance with Code section 416(i)(1)(B) and (C). Any Employee who is not a Key Employee shall be a “non-key Employee” for purposes of applying this Article 13.
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(e)    Compensation means, for all purposes under this Article 13, an Employee’s “Compensation” as determined under section 2.14(b). In no event shall an Employee’s Compensation under this Article 13 exceed the limit described in section 2.14(f).
13.3 Vesting Requirements
If the Plan is determined to be top-heavy with respect to a Plan Year, then a Member’s interest in his or her Account shall vest in accordance with the following schedule:
						
	Years of Vesting Service	Vested Percentage
	Fewer than 1	0%
	1 but fewer than 2	20%
	2 but fewer than 3	40%
	3 or more	100%

If in a subsequent Plan Year, the Plan is no longer top-heavy, the vesting provisions that were in effect prior to the time the Plan became top-heavy shall be reinstated. However, the Member’s Vested Percentage following such reinstatement (with respect to the Member’s Account both before and after the reinstatement) shall not be reduced below the Member’s Vested Percentage immediately before such reinstatement.
13.4 Minimum Contribution
For each Plan Year with respect to which the Plan is top-heavy, the minimum amount contributed by the Employer under the Plan for the benefit of each Participant who is not a Key Employee and who is otherwise eligible for such a contribution shall be the lesser of—
(a)    3 percent of the non-key Participant’s Compensation for the Plan Year, or
(b)    the non-key Participant’s Compensation times a percentage equal to the largest percentage of such Compensation allocated under such plan with respect to any Key Employee for the Plan Year.
Matching Contributions allocated to Key Employees shall be treated as an allocation of contributions by an Employer under this section 13.4. However, if Matching Contributions to non-key Employees are used to satisfy the minimum contribution requirement under this section 13.4, these Matching Contributions shall not be tested under section 5.8, and they must otherwise satisfy the nondiscrimination requirements of Code section 401(a)(4).

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This minimum contribution is determined without regard to any Social Security contribution. This minimum contribution shall be made on behalf of each non-key Employee who has not separated from service before the end of the Plan Year, without regard to whether the non-key Employee declines to make any mandatory contributions that may be required by the Plan. Contributions attributable to a salary reduction or similar arrangement shall be taken into account only with respect to contributions made on behalf of Key Employees. The minimum contribution provisions stated above shall not apply to any Participant who was not employed by the Company or an Affiliate on the last day of the Plan Year.
This section 13.4 shall not apply to a Participant covered under a qualified defined benefit plan or a qualified defined contribution plan maintained by the Company or an Affiliate if the Participant’s vested benefit thereunder satisfies the requirements of Code section 416(c). Amounts contributed under this section shall be credited to a Member’s Retirement Contributions Account.
13.5 Union Employees
The requirements of this Article 13 shall not apply with respect to any Employee included in a unit of Employees covered by a collective bargaining agreement between Employee representatives and an Employer if retirement benefits were the subject of good faith bargaining between such Employee representatives and the Employer.

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Article 14. Participation in and Withdrawal from Plan by an Affiliate
14.1 Participation in Plan
Any Affiliate that desires to become an Employer hereunder may elect, with the consent of the Company, to become a party to the Plan by—
(a)    having its board of directors adopt the Plan for the benefit of its eligible Employees effective as of the date specified in the adoption resolution; and 
(b)    by filing with the Company a certified copy of such resolution, together with any other instruments that the Company may require.
The Company shall then file with the Trustee a copy of the Affiliate’s adoption resolution, together with the Company’s written approval of the adoption.
The adoption resolution may contain any specific changes and variations in Plan or Trust Agreement terms and provisions applicable to the adopting Employer and its Employees that are acceptable to the Company and the Trustee. However, the sole, exclusive right of any other amendment to the Plan or Trust Agreement is reserved by the Company. The Company may not amend specific changes and variations in the Plan or Trust Agreement terms and provisions as adopted by the Employer in its adoption resolution without the consent of the Employer. The adoption resolution shall become, as to the adopting organization and its Employees, a part of this Plan and the related Trust Agreement. It shall not be necessary for the adopting organization to sign or execute the original or amended Plan and Trust Agreement documents.
The effective date of the Plan for any adopting Affiliate shall be that stated in the resolution of adoption. From and after this effective date, the adopting Affiliate shall assume all the rights, obligations, and liabilities of an individual Employer entity under the Plan and Trust Agreement.
The administrative powers and control of the Company, as provided in the Plan and Trust Agreement, including the sole right of amendment, and of appointment and removal of the Trustee, and its successors, shall not be diminished by reason of the participation of any adopting Affiliate in the Plan.
14.2 Withdrawal from Plan
Any Employer, by action of its board of directors or other governing authority, may withdraw from the Plan and Trust Agreement after giving 90 days’ notice to the Company, provided the Company consents to the withdrawal. Distribution may be implemented through continuation of the Trust Fund, or transfer to another trust fund exempt from tax under Code section 501, or to a group annuity contract qualified under Code section 401, or distribution may be made

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as an immediate cash payment in accordance with the directions of the Committee. However, no action shall divert any part of the fund to any purpose other than the exclusive benefit of the Employees of the Employer. Additionally, no such action shall be inconsistent with the requirements of Code sections 401(a).

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Article 15. Miscellaneous
15.1 Incompetency
Every person receiving or claiming benefits under the Plan shall be conclusively presumed to be mentally competent and of age until the Committee receives written notice, in a form and manner acceptable to it, that the person is incompetent or a minor, and that a guardian, conservator, or other person legally vested with the care of his or her estate has been appointed. If the Committee finds that any person to whom a benefit is payable under Plan is unable to care properly for his or her affairs, or is a minor, any payment due will be made to a legal guardian or other legal representative.
If a guardian or conservator of the estate of any person receiving or claiming benefits under the Plan is appointed by a court of competent jurisdiction, payments shall be made to such guardian or conservator if proper proof of the appointment is furnished in a form and manner suitable to the Committee.
To the extent permitted by law, any payment made under the provisions of this section shall be a complete discharge of liability under the Plan.
15.2 Nonalienation of Benefits
Except as provided in Code section 401(a)(13), no benefit payable at any time under the Plan shall be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment, garnishment, or encumbrance of any kind. Any attempt to alienate, sell, transfer, assign, pledge, or otherwise encumber any such benefit, whether presently or thereafter payable, shall be void. The Trust Fund under the Plan shall not in any manner be liable for or subject to the debts or liabilities of any Member or Beneficiary entitled to any benefit. 
The preceding paragraph shall also apply to the creation, assignment, or recognition of a right to any interest or benefit payable with respect to a Member pursuant to a domestic relations order, unless the order is determined to be a qualified domestic relations order (as defined in Code section 414(p)). The Committee shall establish reasonable written procedures to determine the qualified status of domestic relations orders and to administer distributions under such qualified orders.
15.3 No Guarantee of Employment
Nothing contained in the Plan shall be deemed to give any Employee the right to be retained in the service of the Company or an Affiliate or to interfere with the right of the Company or an Affiliate to discharge or retire any Employee at any time.
15.4 Applicable Law
To the extent not preempted by ERISA, the Plan shall be governed by and construed according to the laws of South Carolina.
15.5 Severability
If a provision of this Plan shall be held illegal or invalid, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included in this Plan.
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15.6 Rights to Trust Assets
No Employee or Beneficiary shall have any right to, or interest in, any assets of the Trust Fund upon termination of employment or otherwise, except as specifically provided under the Plan, and then only to the extent of the benefits payable under the Plan to the Employee or Beneficiary out of the assets of the Trust Fund. All payments of benefits under this Plan shall be made solely out of assets of the Trust Fund, and the Employers, the Affiliates, or any fiduciary shall not be liable therefor in any manner.
15.7 Military Service
Effective December 12, 1994, and notwithstanding any other provision of this Plan to the contrary, contributions, benefits, and service credit with respect to qualified military service will be provided in accordance with the mandatory provisions of Code section 414(u). 
15.8 Titles
The titles of sections are included only for convenience and shall not be construed as part of this Plan or in any respect affecting or modifying its provisions.
******************************************
In Witness Whereof, the authorized officers of the Company have signed this document and have affixed the corporate seal on February16, 2022, effective as of January 1, 2022.

                 Sonoco Products Company

By:  /s/John Florence           .        

John Florence, VP, General Counsel, Secretary and VP, Human Resources 

Attest:

By:        /s/Julie Albrecht
             Julie Albrecht, VP and Chief 
Financial Officer

    (CORPORATE SEAL)
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Appendix A. Participating Employers
The table below lists each Affiliate of the Company that has become a participating Employer in accordance with section 14.1. The adoption dates listed below represent the effective date for each Affiliate’s participation. However, because of multiple business restructurings, the adoption dates shown below do not necessarily represent the participation dates for individual Members currently employed by each Affiliate.

(The effective dates of Plan coverage for various groups of collectively-bargained Employees are listed in Appendix B and Appendix C.)  

									
	Affiliate	Adoption Date	
		Plan Provisions (Except Retirement Contributions)	Plan Provisions Related to Retirement Contributions
	Georgia Paper and Tube, Inc.	April 1, 2002	January 1, 2004
	Hayes Manufacturing Group, Inc.	January 1, 2002	January 1, 2004
	Sonoco Development, Inc.	January 1, 1999	January 1, 2004
	Sonoco Flexible Packaging, Inc.	January 1, 1997	January 1, 2004 (or January 1, 2006 for Employees of Waco Flexibles)
	Sonoco-Hutchinson, Inc.	November 1, 2001	January 1, 2004
	Sonoco Paperboard Group, LLC	January 1, 1997	January 1, 2004
	Sonoco Phoenix, Inc.	January 1, 2002	January 1, 2004
	Sonoco Recycling, Inc.	January 1, 1981	January 1, 2004 (or January 1, 2005 for Employees of Paperstock Dealers, Savannah)
	Sonoco SPG Inc.	January 1, 1997	January 1, 2004
	Sonoco Sustainability Solution	January 1, 2010	January 1, 2010
	Southern Plug & Mfg, Inc.	January 1, 1999	January 1, 2004
	SPC Resources, Inc.	January 1, 1992	January 1, 2004
	U.S. Paper Mills Corporation	January 1, 2002	January 1, 2004
	Trident Graphics NA, LLC	January 1, 1997	January 1, 2004 (or January 1, 2006 for Employees of Keating Gravure)
	Sonoco CorrFlex Display & Pack	January 1, 2005	January 1, 2007
	Sonoco CorrFlex D&P, LLC	January 1, 2005	January 1, 2007
			
			
			

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	Affiliate	Adoption Date	
		Plan Provisions (Except Retirement Contributions)	Plan Provisions Related to Retirement Contributions
	Sonoco CorrFlex LLC	January 1, 2005	January 1, 2007
	Sonoco Clear Pack	July 1, 2008	July 1, 2008
	Sonoco Plastics, Inc.
    APT Locations
	

January 1, 2011
	

January 1, 2011

	    Columbus location
	January 1, 2007	January 1, 2007
	    Hanover location
	January 1, 1995	January 1, 2004
	    Matrix Packaging, Inc. CA
	January 1, 2010 (except as noted below) – Closure of location in 2016	January 1, 2010 (except as noted below) – Closure of location in 2016
	    Matrix Packaging, Inc. IL locations
	January 1, 2010 (except as noted below) – Closure of location in 2016	January 1, 2010 (except as noted below) – Closure of location in 2016
	    Matrix Packaging, Inc. MO locations
	January 1, 2010 (except as noted below) – Closure of location in 2016	January 1, 2010 (except as noted below) – Closure of location in 2016
	Sonoco Crellin locations	January 1, 1995	January 1, 2004
	Wausau location	January 1, 2010 (except as noted below) – Closure of location in 2012	January 1, 2010 (except as noted below) – Closure of location in 2012
	Winchester location	January 22, 1996	January 1, 2004
	Tegrant Corporation	January 1, 2013	January 1, 2013
	Dalton Paper Products 	January 1, 2015	January 1, 2015
	Sonoco Hickory, Inc. (formerly known as Plastic Packaging, Inc.)	January 1, 2017	Not eligible
	Sonoco Elk Grove, Inc. (formerly known as Clear Lam Packaging, Inc.)	January 1, 2018	Not eligible
	Peninsula Packaging Company	January 1, 2018	Not eligible
	Highland Packaging Solutions, Inc.
	January 1, 2019	January 1, 2019
	Conitex Sonoco, Inc. (US-based employees only)	January 1, 2019	January 1, 2019
			
			
			

    92    

									
	Affiliate	Adoption Date	
		Plan Provisions (Except Retirement Contributions)	Plan Provisions Related to Retirement Contributions
	Conitex Sonoco US, Inc. (US-based employees only)	January 1, 2019	January 1, 2019
	Corenso Holdings America Inc.	January 1, 2020	January 1, 2020
	Sebro Plastics, Inc.	January 1, 2021	January 1, 2021

Additional Provisions
Nonunion Eligible Employees of Matrix Packaging, Inc. CA, Matrix Packaging, Inc., IL, or Matrix Packaging, Inc. MO who are compensated on an hourly basis shall be subject to the following:

(a)    Such Employees can make Before-Tax Contributions, Roth Contributions, and After-Tax Contributions under section 5.2, but the total amount contributed across all three contribution types is limited to 30 percent of Compensation until January 1, 2015; thereafter, the limits are increased to 100 percent of Compensation as of the first payroll period in 2015;
(b)    Effective with the first payroll paid in 2015 (including amounts earned in 2014 and 2015), such Employees are eligible for Matching Contributions under section 5.3, prior to that payroll period such Employees were not eligible for Matching Contributions under section 5.3; and
(c)    Such Employees are not eligible for Retirement Contributions under section 5.4.
(d)    Matrix Employees who were terminated on or about November 7, 2016 as part of the divestiture described in the “ASSET PURCHASE AGREEMENT dated as of September 1, 2016 by and among SONOCO PLASTICS, INC., SONOCO PLASTICS CANANDA ULC, SONOCO DEVELOPMENT, INC, SONOCO PRODUCTS COMPANY, AMCOR RIGID PLASTICS USA, LLC and AMCORPACKAGING CANADA, INC.” and who are otherwise eligible to earn Retirement Contributions, are entitled to a prorated Retirement Contribution for the period beginning on January 1, 2016 and ending on November 7, 2016. Notwithstanding anything in this Plan to the contrary, individuals described in the foregoing sentence shall be 100% vested in all of the Accounts in this Plan effective as of their date of Separation from Service.
In addition, nonunion Eligible Employees of the Wausau location who are compensated on an hourly basis are eligible for (i) Matching Contributions under section 5.3, but only with respect to Before-Tax Contributions made on and after April 1, 2011 and Roth Contributions 

    93    

made on and after January 1, 2013. and (ii) Retirement Contributions under section 5.4, but only with respect to Compensation earned on and after April 1, 2011. Note that this location closed in 2012 and no further contributions may be made to the Plan for these Employees after the date of the closure (other than with respect to Compensation earned prior to the closure).

    94    

Appendix B. Collectively-Bargained Participants—Plan Benefits Other than Retirement Contributions
The table below lists each group of collectively-bargained Employees who qualify as Eligible Employees with respect to Plan benefits other than Retirement Contributions under Plan section 2.15(d)(1). The table also includes the date on which Plan provisions related to Plan benefits other than Retirement Contributions took effect for each covered bargaining unit and any variations in the standard Plan terms and features (as they relate to Plan benefits other than Retirement Contributions) that apply to Eligible Employees of each such bargaining unit.

																		
	Location/Union	Effective Date of Plan Coverage	Employee Contributions	Employer Match	Collectively-Bargained Nonelective Employer Contributions	Other Variations to Standard Plan Terms
	Edinburgh/Chicago & Midwest Regional Joint Board Affiliate of Workers/United, SEIU	May 1, 1999	Follows the standard Plan	Amount: $0.50 per $1.00 on first 6% of  Compensation contributed as Before-Tax Contributions or Roth Contributions

(Per the labor agreement, if the Matching Contribution under the standard Plan is increased to a level that exceeds the Matching Contribution described above, the higher standard Plan match will apply.)

True-Up Match: Plan section 5.3(b) does not apply
	    Eligibility: Attain age 21 and complete one Year of Eligibility Service (defined as 1,000 Hours of Service in either the first year of employment or in any subsequent Plan Year)
    Amount: 3.50% of Compensation, provided Participant earns at least 1,000 Hours of Service during Plan Year 
    Vesting: Collectively-Bargained Non-Elective Employer Contributions are subject to the vesting provisions described in Plan sections 3.2 and 7.4
	None

    95    

																		
	Location/Union	Effective Date of Plan Coverage	Employee Contributions	Employer Match	Collectively-Bargained Nonelective Employer Contributions	Other Variations to Standard Plan Terms
	Franklin/Graphic Communications International Union Local 508M		Follows the standard Plan	Amount: $0.50 per $1.00 on first 6% of Compensation contributed as Before-Tax Contributions or Roth Contributions

True-Up Match: Plan Section 5.3(b) does not apply 
	Amount: Effective March 22, 2018: $0.95 per hour paid (no hourly maximum)

Effective June 1, 2014 through March 21, 2018: 
$0.85 per hour paid if hired before March 22, 1998; $0.85 per hour paid (not to exceed 2,200 hours per Plan Year) if hired on or after March 22, 1998

Prior to June 1, 2014, $0.85 per hour paid if hired before March 22, 1998; $0.70 per hour paid (not to exceed 2,080 hours per Plan Year) if hired on or after March 22, 1998

Vesting: Collectively-Bargained Non-Elective Employer Contributions are subject to the vesting provisions described in Plan sections 3.2 and 7.4
	None

    96    

																		
	Location/Union	Effective Date of Plan Coverage	Employee Contributions	Employer Match	Collectively-Bargained Nonelective Employer Contributions	Other Variations to Standard Plan Terms
	USPMC – DePere/United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union, Local 1517	January 1, 2004	    Contribution Limits:
    Before-Tax: Prior to March 22, 2021: 1% to 30% of Compensation
On and after March 22, 2021: 1% to 100% of Compensation
    Roth: Prior to March 22, 2021: Not permitted. 
On and after March 22, 2021: permitted
    After-Tax: 1% to 30% of Compensation
    Combined Before-Tax and After-Tax: Up to 30% of Compensation
    Automatic Enrollment: Prior to June 15, 2017, Plan section 5.7(b) does not apply. Effective June 15, 2107, Plan section 5.7(b) applies to employees hired on and after June 15, 2017, with the percentage being 6%.
	    Amount: $0.50 per $1.00 on first 6% of  Compensation contributed as Before-Tax Contributions
    True-Up Match: Prior to March 22, 2021: Plan section 5.3(b) does not apply. On and after March 22, 2021: Plan section 5.3(b) does apply
	    Amount: 4.00% of Compensation 
    Vesting: Collectively-Bargained Non-Elective Employer Contributions are subject to the vesting provisions described in Plan sections 3.1 and 7.4 
	None

    97    

																		
	Location/Union	Effective Date of Plan Coverage	Employee Contributions	Employer Match	Collectively-Bargained Nonelective Employer Contributions	Other Variations to Standard Plan Terms
	Sumner/Association of Western Pulp and Paper Workers Local 28	January 1, 2004	Contribution Limits from January 1, 2004 through September 30, 2015:
    Before-Tax: 1% to 30% of Compensation
    Roth: 1% to 30% of Compensation
    After-Tax: 1% to 30% of Compensation
    Combined Before-Tax, Roth, and After-Tax: Up to 30% of Compensation
    Automatic Enrollment: Follows the standard Plan,
    Contribution limits follow the standard plan terms on and after October 1, 2015.
	Follows the standard Plan

Effective for Compensation paid after December 31, 2021, the amount is $0.50 per $1.00 on first 4% of Compensation contributed as Before-Tax Contributions.”
	None	None
	Richmond/United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union—AFL-CIO-CLC,  Local 747	July 1, 2004	Follows the standard Plan	Follows the standard Plan	None	None

    98    

																		
	Location/Union	Effective Date of Plan Coverage	Employee Contributions	Employer Match	Collectively-Bargained Nonelective Employer Contributions	Other Variations to Standard Plan Terms
	USPMC – Menasha/United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union, Local 273	July 1, 2006	    Contribution Limits:
    Before-Tax: 1% to 30% of Compensation
    Roth: Not permitted
    After-Tax: 1% to 30% of Compensation
    Combined Before-Tax and After-Tax: Up to 30% of Compensation
    Automatic Enrollment: Plan section 5.7(b) applies to employees hired on and after April 1, 2017, with the percentage being 6%.
	    Amount: $0.50 per $1.00 on first 6% of  Compensation contributed as Before-Tax Contributions
    True-Up Match: Plan section 5.3(b) does not apply
    Vesting: Matching Contributions are subject to the vesting provisions described in Plan sections 3.1 and 7.2(b)(1)
	    Eligibility: Immediately following completion of 60-day union probationary period
    Amount: Effective May 19, 2011, 4% of Compensation.
Prior to May 19, 2011, 5.5% of Compensation if date of birth is before January 1, 1940; 4.0% of Compensation if date of birth is on or after January 1, 1940 
    Vesting: Collectively-Bargained Non-Elective Employer Contributions are subject to the vesting provisions described in Plan sections 3.1 and 7.4
	Contribution during Period of Disability: After 14 days of disability, Employer continues Participant contributions for up to 26 weeks at a rate equal to the Participant’s  average contribution rate over 24-week period preceding disability. This provision was eliminated effective [DATE].

	Norwalk / Los Angeles/District Council No. 2 Affiliated with the International Brotherhood of Teamsters	July 1, 2006	Contribution Limits:
    Before-Tax: 1% to 30% of Compensation
    Roth: Not permitted
    After-Tax: 1% to 30% of Compensation
    Combined Before-Tax and After-Tax: Up to 30% of Compensation
	Amount: $0.50 per $1.00 on first 4% of  Compensation contributed as Before-Tax Contributions

Effective for Compensation earned after December 31, 2021, Employer Match contributions follow the standard plan
	None	None

    99    

																		
	Location/Union	Effective Date of Plan Coverage	Employee Contributions	Employer Match	Collectively-Bargained Nonelective Employer Contributions	Other Variations to Standard Plan Terms
	Caraustar – Orville, OH/United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union, Local 1-150	October 1, 2007 – September 2, 2011	    Contribution Limits:
    Before-Tax: 1% to 30% of Compensation
    Roth: Not permitted
    After-Tax: 1% to 30% of Compensation
    Combined Before-Tax and After-Tax: Up to 30% of Compensation
    Automatic Enrollment: Plan section 5.7(b) does not apply 
	    Amount: $0.50 per $1.00 on first 6% of  Compensation contributed as Before-Tax Contributions
    True-Up Match: Plan section 5.3(b) does not apply
    Vesting: Matching Contributions are subject to the vesting provisions described in Plan sections 3.1 and 7.2(b)(2)
	None	None
	New Albany, IN/Bakery, Confectionary, Tobacco Workers and Grain Millers (BCTGM), Local 33G	January 1, 2008	Follows the standard Plan	No Matching Contributions under Plan section 5.3	None	None
	Clear Pack/Teamsters Local #777	January 1, 2009	Follows the standard Plan	Amount: 1.00 per $1.00 on first 3% of  Compensation contributed as Before-Tax Contributions; plus $0.50 per $1.00 on next 2% of Compensation contributed as Before-Tax Contributions

True-Up Match: Plan section 5.3(b) does not apply
	None	None

    100    

																		
	Location/Union	Effective Date of Plan Coverage	Employee Contributions	Employer Match	Collectively-Bargained Nonelective Employer Contributions	Other Variations to Standard Plan Terms
	Carrollton/United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union—AFL-CIO-CLC	May 5, 2009	Follows the standard plan	    Amount: 1.00 per $1.00 on first 3% of  Compensation contributed as Before-Tax Contributions; plus $0.50 per $1.00 on next 2% of Compensation contributed as Before-Tax Contributions
    True-Up Match: Plan section 5.3(b) does not apply
	None	None
	Memphis— Ragan Street/United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union, Local 9-1274	July 1, 2010	Follows the standard Plan	Follows the standard Plan	None	None
	Forest Park/Bakery, Confectionary, Tobacco and Grain Millers International Union, Local 42, Atlanta, GA	January 1, 2011	Follows the standard Plan	No Matching Contributions under Plan section 5.3 until January 1, 2017. Effective January 1, 2017, follows the standard Plan.	None	None

    101    

																		
	Location/Union	Effective Date of Plan Coverage	Employee Contributions	Employer Match	Collectively-Bargained Nonelective Employer Contributions	Other Variations to Standard Plan Terms
	Butner, NC/International Union of Operating Engineers, Local #465	January 1, 2013	    Contribution Limits: 
    Before-Tax: 1 to 25% of Compensation
    Roth: 1 to 25% of Compensation
    After-Tax: 1 to 25% of Compensation
    Combined Before-Tax, Roth, and After-Tax: Up to 25% of Compensation
    Automatic Enrollment: Plan section 5.7(b) applies to employees hired on and after January 1, 2014
	    Amount: $1.00 per $1.00 on the first 5% of Compensation contributed as Before-Tax Contributions or Roth Contributions
    True-Up Match: Plan section 5.3(b) does not apply
	None on or after December 1, 2007

(Nonelective employer contributions made before December 1, 2007 under the Tegrant Investment and Retirement Plan are subject to the vesting provisions described in Plan sections 3.1 and 7.4.)
	None

    102    

																		
	Location/Union	Effective Date of Plan Coverage	Employee Contributions	Employer Match	Collectively-Bargained Nonelective Employer Contributions	Other Variations to Standard Plan Terms
	Hayward, CA/International Association of Machinists and Aerospace Workers Union, Local #1546 (Maintenance Employees)	January 1, 2013	    Contribution Limits: 
    Before-Tax: 1 to 25% of Compensation
    Roth: 1 to 25% of Compensation
    After-Tax: 1 to 25% of Compensation
    Combined Before-Tax, Roth, and After-Tax: Up to 25% of Compensation
    Automatic Enrollment: Plan section 5.7(b) applies with an automatic enrollment amount of 1%
	    Amount: $1.00 per $1.00 on the first 5% of Compensation contributed as Before-Tax Contributions or Roth Contributions
    True-Up Match: Plan section 5.3(b) does not apply
	None on or after October 1, 2008

(Nonelective employer contributions made before October 1, 2008 under the Tegrant Investment and Retirement Plan are subject to the vesting provisions described in Plan sections 3.1 and 7.4.)
	None

    103    

																		
	Hayward, CA/Teamsters Union, IBT Local #853 (Production Employees)	January 1, 2013	    Contribution Limits: 
    Before-Tax: 1 to 25% of Compensation
    Roth: 1 to 25% of Compensation
    After-Tax: 1 to 25% of Compensation
    Combined Before-Tax, Roth, and After-Tax: Up to 25% of Compensation
    Automatic Enrollment: Individuals who commenced employment in the bargaining unit (or who were reemployed in the bargaining unit) on or after January 1, 2008, and before June 1, 2016 are enrolled automatically under section 5.7(b) at a Before-Tax Contribution rate of 1% of Compensation. Individuals who commenced employment in the bargaining unit (or who were reemployed in the bargaining unit) on or after June 1, 2016 are enrolled automatically under section 5.7(b) at a Before-Tax Contribution rate of 3% of Compensation.
	    Amount: $1.00 per $1.00 on the first 5% of Compensation contributed as Before-Tax Contributions or Roth Contributions
    True-Up Match: Plan section 5.3(b) does not apply
	None on or after September 1, 2007

(Nonelective employer contributions made before September 1, 2007 under the Tegrant Investment and Retirement Plan are subject to the vesting provisions described in Plan sections 3.1 and 7.4.)
	None

    104    

																		
	Location/Union	Effective Date of Plan Coverage	Employee Contributions	Employer Match	Collectively-Bargained Nonelective Employer Contributions	Other Variations to Standard Plan Terms
	Hutchinson/ United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, Local #1350	July 1, 2015	    Contribution Limits: 
    Before-tax or Roth: 100% of Compensation

Automatic Enrollment: Plan section 5.7(b) does not apply. 
	No Matching Contributions under Plan section 5.3	None	None
	Pardeeville, WI/United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, Local #851 

Note: This union group voted to decertify effective July 6, 2021. The group retained the union benefits described herein through December 31, 2021. Effective January 1, 2022, this group receives standard, nonunion benefits under the Plan. 
	January 1, 2013	Effective January 1, 2022, follows standard plan for nonunion Members. Prior to January 1, 2022, the following provisions applied:

    Contribution Limits: 
    Before-Tax: 1 to 25% of Compensation
    Roth: 1 to 25% of Compensation
    After-Tax: 1 to 25% of Compensation
    Combined Before-Tax, Roth, and After-Tax: Up to 25% of Compensation
    Automatic Enrollment: Bargaining unit employees are enrolled automatically under section 5.7(b) at a Before-Tax Contribution rate of 2% of Compensation
	Effective January 1, 2022, follows standard plan for nonunion Members. Prior to January 1, 2022, the following provisions applied:

    Amount: $1.00 per $1.00 on the first 5% of Compensation contributed as Before-Tax Contributions or Roth Contributions
    True-Up Match: Plan section 5.3(b) does not apply
	Effective January 1, 2022, follows standard plan for nonunion Members. Prior to January 1, 2022, the following provisions applied:

None on or after November 1, 2008.

(Nonelective employer contributions made before September 1, 2007 under the Tegrant Investment and Retirement Plan are subject to the vesting provisions described in Plan sections 3.1 and 7.4.)
	Effective January 1, 2022, follows standard plan for nonunion Members. Prior to January 1, 2022, the following provisions applied:

None

    105    

																		
	Location/Union	Effective Date of Plan Coverage	Employee Contributions	Employer Match	Collectively-Bargained Nonelective Employer Contributions	Other Variations to Standard Plan Terms
	Montgomeryville, PA/Laborers Local #332	December 14, 2015 (when Members unionized, Members may have accrued non-union benefits prior to unionizing)	    Follows the standard Plan
	    Follows the standard Plan. Changes to the match formula in the standard Plan apply to this group.
	None	None
	Corenso/Office & Professional Employees’ Union Local #39	January 1, 2020	    Follows the standard Plan but uses Corenso Compensation plus profit-sharing bonuses
	    Amount: $0.25 per $1.00 on first 6% of Corenso Compensation through 12/31/2020. On and after 1/1/2021: $0.30 per $1.00 on first 6% of Corenso  Compensation.
    Catch-Up Contributions: Eligible for matching contributions
	    Amount: 6% of base wages + overtime
	    Participation Eligibility: The 90th calendar day after the member’s first day of employment
    After-Tax Contributions: Not eligible

	Corenso/United Steel, Paper & Forestry, Rubber, Mfg, Energy, Allied-Ind and Service Workers Int’l Union Local #2-94/2-187	January 1, 2020	    Follows the standard Plan but uses Corenso Compensation plus profit-sharing bonuses
	    Amount: $0.25 per $1.00 on first 6% of Corenso Compensation through 12/31/2020. On and after 1/1/2021: $0.30 per $1.00 on first 6% of Corenso  Compensation.
    Catch-Up Contributions: Eligible for matching contributions
	    Amount: $1.25 per hour worked
	    Participation Eligibility: The 40th calendar day after the member’s first day of employment
    After-Tax Contributions: Not eligible

    106    

																		
	Location/Union	Effective Date of Plan Coverage	Employee Contributions	Employer Match	Collectively-Bargained Nonelective Employer Contributions	Other Variations to Standard Plan Terms
	Corenso/International Assoc of Machinists and Aerospace Workers Local #655	January 1, 2020	    Follows the standard Plan but uses Corenso Compensation plus profit-sharing bonuses
	    Amount: $0.25 per $1.00 on first 6% of Corenso Compensation.
    Catch-Up Contributions: Eligible for matching contributions
	    Amount: 5% of base wages. Effective April 1, 2021, 5% of base wages + overtime.
	    Participation Eligibility: The 90th calendar day after the member’s first day of employment
    After-Tax Contributions: Not eligible

	Corenso/International Brotherhood of Electrical Workers Local #1147	January 1, 2020	    Follows the standard Plan but uses Corenso Compensation plus profit-sharing bonuses
	    Amount: $0.25 per $1.00 on first 6% of Corenso Compensation.
    Catch-Up Contributions: Eligible for matching contributions
	    Amount: 6% of base wages. Effective April 1, 2021, 6% of base wages + overtime.
	    Participation Eligibility: The 90th calendar day after the member’s first day of employment
    After-Tax Contributions: Not eligible

	Corenso/United Association of Journeymen & Apprentices of the Plumbing & Pipefitting Ind. Local #434	January 1, 2020	    Follows the standard Plan but uses Corenso Compensation plus profit-sharing bonuses
	    Amount: $0.25 per $1.00 on first 6% of Corenso Compensation.
    Catch-Up Contributions: Eligible for matching contributions
	    Amount: 5% of base wages. Effective April 1, 2021, 5% of base wages + overtime.
	    Participation Eligibility: The 90th calendar day after the member’s first day of employment
    After-Tax Contributions: Not eligible

    107    

Appendix C. Collectively-Bargained Participants—Plan Provisions Related to Retirement Contributions
The table below lists each group of collectively-bargained Employees who qualify as Eligible Employees with respect to Retirement Contributions under Plan section 2.15(d)(2). The table also includes the date on which Plan provisions related to Retirement Contributions took effect for each covered bargaining unit.

									
	Affiliate/Location	Union	Effective Date of Retirement Contribution Provisions
	Carrollton	United Steel, Paper and Forestry, Rubber 
Manufacturing, Energy, Allied Industrial and                                                                        Service Workers Union, AFL-CIO-CLC
	    Bargaining unit employees hired on and after January 1, 2004 
    Bargaining unit employees hired before January 1, 2004 will be covered by the Retirement Contribution provisions of this Plan on—
    January 1, 2010 if they elected to freeze accruals under the Sonoco Pension Plan as of December 31, 2009; or
    January 1, 2019 if they elect to continue accruals under the Sonoco Pension Plan through December 31, 2018 (and are still in active employment on January 1, 2019)
    Retirement contributions shall be made at the standard amount in effect on January 1, 2015 and shall not be modified unless and until the collective bargaining agreement in effect on January 1, 2015 is modified, even if the standard amount is amended in the Plan for other employees

	Caraustar/St. Paris, Ohio	United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial, and Service Workers International Union—Local #1467	October 1, 2007 – March 13, 2009
	Clear Pack	Teamsters Local #777	July 1, 2008
    Retirement contributions shall be made at the standard amount in effect on January 1, 2015 and shall not be modified unless and until the collective bargaining agreement in effect on January 1, 2015 is modified, even if the standard amount is amended in the Plan for other employees

			

    108    

									
	Affiliate/Location	Union	Effective Date of Retirement Contribution Provisions
	City of Industry	Sonoco Products Company City of Industry and Graphic Communications Union District Council No. 2, Local 388M	    Bargaining unit employees hired on and after January 1, 2010
    Bargaining unit employees hired before January 1, 2010 will be covered by the Retirement Contribution provisions of this Plan on January 1, 2010 if they elected to freeze accruals under the Sonoco Pension Plan as of December 31, 2009 
    Effective for Compensation paid after December 31, 2021, no Retirement Contributions will be paid for this collective bargaining group

	Richmond	United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union—AFL-CIO-CLC,  Local 747	    Bargaining unit employees hired on and after January 1, 2010
    Bargaining unit employees hired before January 1, 2010 will be covered by the Retirement Contribution provisions of this Plan as of January 1, 2011 if they elected to freeze accruals under the Sonoco Pension Plan as of December 31, 2010 
    Effective for Compensation paid after December 31, 2021, no Retirement Contributions will be paid for this collective bargaining group

	Norwalk/Los Angeles	District Council No. 2 Affiliated with the International Brotherhood of Teamsters	    Bargaining unit employees hired on and after January 1, 2012
    Bargaining unit employees hired before January 1, 2012 will be covered by the Retirement Contribution provisions of this Plan as of January 1, 2012 if they elected to freeze accruals under the Sonoco Pension Plan as of December 31, 2011
    Effective for Compensation paid after December 31, 2021, no Retirement Contributions will be paid for this collective bargaining group

	Sumner, WA	Association of Western Pulp and Paper Workers, Local 28	    Bargaining unit employees hired on and after January 13, 2016
    Bargaining unit employees hired before January 13, 2016 will be covered by the Retirement Contribution provisions of this Plan on January 1, 2017 if they elected to freeze accruals under the Sonoco Pension Plan as of December 31, 2016.

	Montgomeryville, PA	Laborers Local #332	December 14, 2015
    Effective for Compensation paid after December 31, 2021, no Retirement Contributions will be paid for this collective bargaining group

    109Document

Exhibit 10.9

Omnibus Benefit Restoration Plan of Sonoco Products Company
Amended and Restated as of January 1, 2022

        

Contents

						
	Article 1. Introduction	1

	1.1 Background and History	1

	1.2 Restatement of Plan	1

	1.3 Purpose and Applicability of the Plan	1

	Article 2. Definitions	3

	2.1 Actuarial Equivalent	3

	2.2 Affiliate	3

	2.3 Beneficiary	3

	2.4 Board	4

	2.5 Code	4

	2.6 Committee	4

	2.7 Company	4

	2.8 Company Stock	4

	2.9 DB Restoration Benefit	5

	2.10 DC Restoration Account	5

	2.11 DC SERP Account	5

	2.12 DC SERP Benefit	5

	2.13 Eligible Compensation	5

	2.14 Employee	6

	2.15 Employer	6

	2.16 ERISA	7

	2.17 Executive Benefit	7

	2.18 Final Average Pay	7

	2.19 Five-Year Certain and Life Annuity	7

	2.20 Gross Executive Restoration Benefit	7

	2.21 Gross Executive SERP Benefit	7

	2.22 Joint and 50 Percent Survivor Annuity	8

	2.23 Joint and 75 Percent Survivor Annuity	8

	2.24 Joint and 100 Percent Survivor Annuity	8

	2.25 Key Employee	8

	2.26 Military Leave	9

	2.27 Net Executive Restoration Benefit	9

	2.28 Net Executive SERP Benefit	9

	2.29 Normal Retirement Date	9

	2.30 Participant	9

	2.31 Participation Agreement	9

	2.32 Pension Plan for Inactive Participants	10

i

        

						
	2.33 Plan	10

	2.34 Plan Year	10

	2.35 Qualified Pension Plan	10

	2.36 Restricted Stock Units	10

	2.37 Retirement and Savings Plan	10

	2.38 Separation from Service	10

	2.39 Single Life Annuity	11

	2.40 Social Security Benefit	11

	2.41 Target Date Retirement Fund	11

	2.42 Ten-Year Certain and Life Annuity	11

	2.43 Valuation Date	12

	2.44 Years of Benefit Service	12

	2.45 Years of Vesting Service	12

	Article 3. Executive Benefit	14

	3.1 Eligibility and Participation	14

	3.2 Normal Retirement Benefits	14

	3.3 Early Retirement Benefits	15

	3.4 Deferred Vested Retirement Benefits	17

	3.5 Net Executive Restoration Benefit	18

	3.6 Form of Payment	21

	3.7 Preretirement Death Benefits	24

	Article 4. DB Restoration Benefit	28

	4.1 Eligibility and Participation	28

	4.2 Normal Retirement Benefit	28

	4.3 Early Retirement Benefits	29

	4.4 Deferred Vested Retirement Benefits	30

	4.5 Form of Payment	31

	4.6 Preretirement Death Benefits	31

	Article 5. DC Restoration Account	33

	5.1 Eligibility and Participation	33

	5.2 Benefits	33

	5.3 Investment Gains and Losses.	34

	5.4 Vesting	35

	5.5 Distributions Following a Separation from Service	35

	5.6 Distributions upon the Participant’s Death	36

	5.7 New Contribution after December 31, 2021             	37
	Article 6. DC SERP Benefit	38

	6.1 Eligibility and Participation	38

	6.2 Benefits	38

	6.3 Investment Gains and Losses.	39

ii

        

						
	6.4 Vesting	39

	6.5 Distributions Following a Separation from Service	40

	6.6 Distributions Upon the Participant’s Death	41

	Article 7. Participation Agreements	43

	7.1 Social Security Bridge Benefit	43

	7.2 Pension Enhancement.	44

	Article 8. Financing and Administration	48

	8.1 Financing	48

	8.2 The Committee	48

	8.3 Manner of Action	48

	8.4 Committee’s Powers and Duties	49

	8.5 Delegation of Powers and Duties	50

	8.6 Committee’s Decisions Conclusive	50

	8.7 Compensation, Indemnity and Liability	50

	8.8 Notice of Address	50

	8.9 Data	51

	8.10 Benefit Claims Procedures	51

	Article 9. Amendment and Termination	53

	9.1 Amendments	53

	9.2 Termination and Liquidation of Plan	53

	9.3 Successors	53

	9.4 Prohibition on Changes Due to Code Section 409A	54

	9.5 Employer Participation and Termination	54

	Article 10. Miscellaneous Provisions	55

	10.1 Taxation	55

	10.2 Withholding on Distributions	55

	10.3 Benefit Cash-out	55

	10.4 Permissible Delays or Accelerations	56

	10.5 No Enlargement of Employment Rights	56

	10.6 Non-Alienation	56

	10.7 Code Section 409A Aggregation Rules	57

	10.8 No Examination or Accounting	57

	10.9 Incompetency	57

	10.10 Records Conclusive	58

	10.11 Service of Legal Process	58

	10.12 Qualified Military Service	58

	10.13 Counterparts	58

	10.14 Forfeiture	58

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Article 1. Introduction
1.1 Background and History
Sonoco Products Company (the “Company”) previously established and presently maintains the Omnibus Benefit Restoration Plan of Sonoco Products Company (the “Plan”). The Plan was initially effective as of January 1, 1979 and was last amended and restated effective as of January 1, 2015. 
1.2 Restatement of Plan
Effective as of January 1, 2022, the Company hereby amends and restates the Plan primarily to incorporate previous amendments to—
(a)    restore the Plan’s forfeiture provision (effective January 1, 2008);
(b)    eliminate the level income annuity as an optional form of payment (effective January 1, 2010 with respect to certain benefits payable under Articles 3 and 4, and effective January 1, 2013 with respect to certain benefits payable under Article 7); 
(c)    provide for Participant-directed investment of DC Restoration Account balances (effective December 15, 2010); 
(d)    grant amendment authority to the Vice President of Human Resources for matters that do not materially impact the Plan’s eligibility provisions, benefit amounts, or costs (effective October 1, 2011);
(e)    reflect the establishment of the Sonoco Retirement Savings Plan through the merger of the Sonoco Investment Retirement Plan into the Sonoco Savings Plan (effective January 1, 2013); and
(f)    freeze the Executive Benefit under Article 3 as of December 31, 2018 and extend the DC SERP Benefit to participants affected by such freeze as of January 1, 2019. 
(g)    end credits made with respect to section 5.2(b) after the 2021 Plan Year credit is made and add new contribution as section 5.7 effective for Eligible Compensation earned  after December 31, 2021.
1.3 Purpose and Applicability of the Plan
The purpose of this Plan is to—
(a)    Provide certain eligible employees with supplemental retirement income; and
(b)    Restore to certain eligible employees benefits that may be lost or curtailed under the Company’s broad-based qualified retirement plans as a result of limits imposed on such benefits under the Internal Revenue Code. 
The Plan is intended to be a nonqualified deferred compensation arrangement for eligible employees who are members of a “select group of management or highly compensated 

1

        

employees” within the meaning of ERISA section 201(2). The Plan, therefore, is intended to be exempt from the participation, funding, and fiduciary requirements of Title I of ERISA.

The provisions of this Plan are generally applicable only to eligible employees who are employed by the Company or an Affiliate on and after January 1, 2022. Unless otherwise provided in a retroactively effective provision of this restatement, any person who was covered by the Plan as in effect before January 1, 2022, and who had a Separation from Service before that date, shall continue to be covered by the provisions of this Plan as in effect upon his or her Separation from Service. 
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Article 2. Definitions 
Whenever used in the Plan, the following terms shall have the meanings set forth below, unless otherwise expressly provided; and when the defined meaning is intended, the term is capitalized.
2.1 Actuarial Equivalent 
“Actuarial Equivalent” means the following:
(a)    General Rule. Actuarial Equivalent means a benefit having the same value as the benefit which it replaces, computed on the basis of—
(1)    the 1984 Unisex Pension Mortality Table, with no age setback for Participants and a three-year age setback for beneficiaries; and
(2)    interest at 9 percent compounded annually.
(b)    Lump Sum Payments. Notwithstanding section 2.1(a), the value of a lump sum payment calculated under section 10.3(a)(1) and 10.3(b) shall be computed on the basis of—
(1)    the mortality table specified in section 2.1(a)(1); and
(2)    an interest rate equal to the discount rate used to compute FASB ASC 715 costs under the Qualified Pension Plan for the Plan Year immediately preceding the Plan Year in which the distribution occurs, as stated each year in the Company’s annual report to shareholders.  
2.2 Affiliate 
“Affiliate” means—
(a)    any corporation while it is a member of the same controlled group of corporations (within the meaning Code section 414(b) as the Company); and
(b)    any other trade or business (whether or not incorporated) while it is under common control with the Company (within the meaning of Code section 414(c)). 
2.3 Beneficiary
“Beneficiary” means the person or persons designated by the Participant to receive any benefits that become payable under this Plan on account of the Participant’s death under: 
(a)    Section 3.6(a), regarding survivor payments that may become due if the Participant elected to receive his or her Net Executive Restoration Benefit in one of the optional forms of payment described therein;

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(b)    Section 3.6(b), regarding survivor payments that may become due if the Participant’s Net Executive SERP Benefit was being distributed in the form of a Ten-Year Certain and Life Annuity or three annual installments at the time of his or her death);
(c)    Section 4.5(b), regarding survivor payments that may become due if the Participant elects to receive his or her DB Restoration Benefit in one of the optional forms of payment described therein;
(d)    Section 5.6, regarding the vested portion of a Participant’s DC Restoration Account that remains unpaid at the time of the Participant’s death; 
(e)    Section 6.6, regarding the vested portion of a Participant’s DC SERP Benefit that remains unpaid at the time of the Participant’s death; and
(f)    Section 7.2(d), regarding survivor payments that may become due with respect to a Qualified Pension Plan enhancement payable under an individual Participation Agreement (depending on the form of payment in effect under such section).
A Participant’s Beneficiary shall be the person or persons designated by the Participant to receive the benefits described in section 2.3(a) through (f) above. This designation shall be made at a time and in a manner prescribed by the Committee. If the Participant fails to designate a Beneficiary, or if the person named by the Participant as his or her Beneficiary is not living as of the date that a benefit becomes payable, the Participant’s Beneficiary shall be the Participant’s surviving spouse; or if there is no surviving spouse, the Participant’s estate. 
(With respect to the preretirement death benefits that may become payable under section 3.7 or 4.6, the only permissible Beneficiary under this Plan is the Participant’s surviving spouse.)
2.4 Board
“Board” means the Board of Directors of the Company.
2.5 Code 
“Code” means the Internal Revenue Code of 1986, as amended, or as it may be amended from time to time. A reference to a section of the Code shall also be deemed to refer to the regulations and other guidance promulgated under that section.
2.6 Committee
“Committee” means the Benefits Committee which shall have primary responsibility for administering the Plan under Article 8.
2.7 Company
“Company” means Sonoco Products Company or any successor thereto that agrees to adopt and continue this Plan. 
2.8 Company Stock
“Company Stock” means the Company’s no par value common stock. 

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2.9 DB Restoration Benefit
“DB Restoration Benefit” means the benefit that is intended to provide benefits that would have been provided under the Qualified Pension Plan or the Pension Plan for Inactive Participants (as applicable) without regard to the limits in effect under Code sections 401(a)(17) and 415, as determined under Article 4.
2.10 DC Restoration Account
“DC Restoration Account” means the bookkeeping account maintained by the Company which represents the total benefits accumulated by a Participant under Article 5. A Participant’s DC Restoration Account shall be comprised of the following subaccounts: 
(a)    Company Match Restoration Account means the portion of the Participant’s DC Restoration Account that evidences the value of benefits accumulated by the Participant under section 5.2(a), including any gains and losses attributable to such benefits, as determined under section 5.3.
(b)    Retirement Contribution Restoration Account means the portion of the Participant’s DC Restoration Account that evidences the value of benefits accumulated by the Participant under section 5.2(b), including any gains and losses attributable to such benefits, as determined under section 5.3.  No credits will be made after the 2021 Plan Year credit is made.
(c)    Restoration Contribution on Eligible Compensation above the annual Social Security Wage Base means the portion of the Participant’s DC Restoration Account that evidences the value of benefits accumulated by the Participant under section 5.7, including any gains and losses attributable to such benefits, as determined under section 5.3.
2.11 DC SERP Account
“DC SERP Account” means the bookkeeping account maintained by the Company that evidences the portion of an eligible Participant’s DC SERP Benefit that is determined under section 6.2(a)(1), including the investment gains that are allocated to such account under section 6.3(a). 
2.12 DC SERP Benefit
“DC SERP Benefit” means the benefit determined under Article 6, comprised of both a Participant’s DC SERP Account and a Participant’s Restricted Stock Units. 
2.13 Eligible Compensation
“Eligible Compensation” means the compensation used to determine the amount of a Participant’s benefits under Article 3 (regarding the Executive Benefit), Article 5 (regarding the DC Restoration Account) and Article 6 (regarding the DC SERP Benefit).
(a)    General Rule. Except as otherwise provided in sections 2.13(b) and (c) below, “Eligible Compensation” means the sum of the total base salary received by the 

5

        

Participant for the Plan Year and any annual bonus earned by the Participant for the                             Plan Year (even if such bonus is actually paid in a subsequent year). 

(b)    DC Restoration Account. For the purpose of determining amounts to be credited to a Participant’s DC Restoration Account under Article 5 for a Plan Year, “Eligible Compensation” means the Participant’s compensation that is used in calculating contributions under the Retirement and Savings Plan for the same Plan Year, but determined without regard to the limit imposed on such compensation by Code section 401(a)(17). 
(c)    Special Rule for Last Year of Employment. When calculating Final Average Pay under section 2.18 for a Participant who incurs a Separation from Service before the last day of the Plan Year, Eligible Compensation for this final partial Plan Year of employment shall equal the sum of—
(1)    the base salary actually paid to the Participant for such Plan Year for employment before his or her Separation from Service; 
(2)    the additional base salary the Participant would have received had he or she remained in active employment for the period beginning on the date of his or her Separation from Service and ending on the next following December 31 (at the same rate of base salary as in effect immediately prior to such Separation from Service); and 
(3)    the annual bonus actually earned by Participant for such Plan Year for employment before his or her Separation from Service (even if such bonus is actually paid in a subsequent year). However, if such annual bonus has not been determined as of the Participant’s benefit commencement date, the annual bonus that will be treated as part of the Participant’s Eligible Compensation for his or her last partial Plan Year of employment shall equal the Participant’s target bonus percentage for such year multiplied by the base salary actually paid to the Participant for such year for employment before his or her Separation from Service. 
2.14 Employee
“Employee” means any person who is employed by the Company or an Affiliate, other than a person who is retained as an independent contractor, a leased employee (as determined under the Company’s or an Affiliate’s customary worker classification procedures), or a non-employee member of the Board.
2.15 Employer
“Employer” means the Company and each Affiliate that has been designated as an Employer under this Plan in accordance with section 9.5.

6

        

2.16 ERISA 
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or as it may be amended from time to time. A reference to a particular section of ERISA shall also be deemed to refer to the regulations and other guidance promulgated under that section. 
2.17 Executive Benefit
“Executive Benefit” means the benefit determined under Article 3, comprised of both a Participant’s Net Executive Restoration Benefit and Net Executive SERP Benefit. 
2.18 Final Average Pay
“Final Average Pay” is used to determine an eligible Participant’s Gross Executive SERP Benefit under section 2.21. “Final Average Pay” means the monthly average of the Eligible Compensation earned by the Participant for any three Plan Years of employment (regardless of whether such years are consecutive), selected from the last seven full Plan Years of employment (and the final partial Plan Year of employment for a Participant whose Separation from Service occurs on a date other than December 31), that produces the highest average.   If a Participant has fewer than three complete Plan Years of Eligible Compensation after annualizing the final year in accordance with section 2.13(c), Final Average Pay shall be determined by averaging all Eligible Compensation received by the Participant over his or her whole and partial years of employment with the Company and its Affiliates.
Notwithstanding any provision in this Plan to the contrary, for a Participant who incurs a Separation from Service after December 31, 2018, Final Average Pay shall be determined as if the Participant incurred a Separation from Service on December 31, 2018 and shall not be adjusted to reflect Eligible Compensation that may be earned by the Participant after such date.
2.19 Five-Year Certain and Life Annuity
 “Five-Year Certain and Life Annuity” means a monthly retirement benefit payable to the Participant for life, and if the Participant dies before receiving 60 monthly payments, such payments shall continue to the Beneficiary until a total of 60 payments have been made.
2.20 Gross Executive Restoration Benefit
“Gross Executive Restoration Benefit” is used in the calculation of the Net Executive Restoration Benefit and shall be determined in accordance with section 3.5(b).
2.21 Gross Executive SERP Benefit
“Gross Executive SERP Benefit” is used in the calculation of the Executive Benefit under Article 3. An eligible Participant’s Gross Executive SERP Benefit is expressed as a Joint and 75 Percent Survivor Annuity commencing on the Participant’s Normal Retirement Date and shall equal the product of (a) and (b) where—
(a)    is 4 percent of the Participant’s Final Average Pay multiplied by his or her Years of Benefit Service (but not to exceed 15 years); and 

7

        

(b)    is a fraction having a numerator equal to the Participant’s Years of Benefit Service and 
a denominator equal to the Years of Benefit Service the Participant would have earned 
had he or she continued in the employment of an Employer through his or her Normal Retirement Date. 

Notwithstanding the above, for a Participant who incurs a Separation from Service after December 31, 2018, the amount determined under section 2.21(a) shall be based only upon the Participant’s Final Average Pay and Years of Benefit Service as of December 31, 2018 and shall not be adjusted in any manner to reflect Eligible Compensation and Years of Benefit Service for employment with the Company or its Affiliates after such date. In addition, for a Participant who incurs a Separation from Service after December 31, 2018, the numerator of the fraction described in section 2.21(b) shall include only those Years of Benefit Service earned as of December 31, 2018 and the denominator of such fraction shall equal the Years of Benefit Service the Participant would have earned had the Participant continued to earn Years of Benefit Service until his or her Normal Retirement Date.
 
2.22 Joint and 50 Percent Survivor Annuity
“Joint and 50 Percent Survivor Annuity” means a monthly retirement benefit payable for the lifetime of the Participant with a monthly survivor annuity for the lifetime of the Participant’s Beneficiary equal to 50 percent of the monthly amount payable during the joint lives of the Participant and such Beneficiary. 
2.23 Joint and 75 Percent Survivor Annuity
“Joint and 75 Percent Survivor Annuity” means a monthly retirement benefit payable for the lifetime of the Participant with a monthly survivor annuity for the lifetime of the Participant’s Beneficiary equal to 75 percent of the monthly amount payable during the joint lives of the Participant and such Beneficiary.  
2.24 Joint and 100 Percent Survivor Annuity
“Joint and 100 Percent Survivor Annuity” means a monthly retirement benefit payable for the lifetime of the Participant with a monthly survivor annuity for the lifetime of the Participant’s Beneficiary equal to 100 percent of the monthly amount payable during the joint lives of the Participant and such Beneficiary.
2.25 Key Employee
“Key Employee” means generally a Participant who is either:
(a)    one of the top-paid 50 officers of the Company or an Affiliate who has annual compensation in excess of $170,000 (as indexed from time to time in accordance with Code section 416(i)(1)); 
(b)    a 5-percent owner of the Company or an Affiliate; or
(c)    a 1-percent owner of the Company or an Affiliate who has annual compensation in excess of $150,000. 

8

        

A Participant who meets one or more of the conditions described in section 2.25(a), (b), or (c) at any time during a Plan Year shall be subject to the distribution restrictions that apply to Key Employees under this Plan during the 12-month period that begins on the April 1 next following the last day of such Plan Year. 
(For purposes of this section 2.25, “compensation” means an amount determined in accordance with Code section 415(c)(3).) 
2.26 Military Leave
“Military Leave” means leave subject to reemployment rights under the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended from time to time.  
2.27 Net Executive Restoration Benefit
“Net Executive Restoration Benefit” means the portion of the Participant’s Executive Benefit determined under section 3.2(b)(1), 3.3(b)(1), or 3.4(b)(1), whichever applies to the Participant as of his or her Separation from Service.   
2.28 Net Executive SERP Benefit
“Net Executive SERP Benefit” means the portion of the Participant’s Executive Benefit determined under section 3.2(b)(2), 3.3(b)(2), or 3.4(b)(2), whichever applies to the Participant as of his or her Separation from Service.  
2.29 Normal Retirement Date
“Normal Retirement Date” means the first day of the month next following the date on which the Participant attains age 65 (or incurs a Separation from Service, if later).
2.30 Participant
“Participant” means an Employee who has met and continues to meet the eligibility requirements described in—
(a)    section 3.1 (related to the Executive Benefit);
(b)    section 4.1 (related to the DB Restoration Benefit);
(c)    section 5.1 (related to the DC Restoration Account); 
(d)    section 6.1 (related to the DC SERP Benefit); and/or
(e)    section 7.1 (related to an individual Participation Agreement).
2.31 Participation Agreement
“Participation Agreement” means an agreement individually negotiated between the Employer and an Employee to provide certain benefits after retirement. Any such Participation Agreement shall form an integral part of this Plan and shall be subject to the provisions of Article 7.
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2.32 Pension Plan for Inactive Participants
“Pension Plan for Inactive Participants” means the tax-qualified Sonoco Pension Plan for Inactive Participants, as amended from time to time.

2.33Plan 
“Plan” means this Omnibus Benefit Restoration Plan of Sonoco Products Company, as amended from time to time. 
2.34 Plan Year
“Plan Year” means the 12-month period beginning on January 1 and ending on December 31.
2.35 Qualified Pension Plan
“Qualified Pension Plan” means the tax-qualified Sonoco Pension Plan, as amended from time to time.  
2.36 Restricted Stock Units
“Restricted Stock Units” means the portion of the DC SERP Benefit that is valued by reference to a share of Company Stock and the accumulated valued of dividend equivalents determined under sections 6.2(a)(2) and 6.3(b).
2.37 Retirement and Savings Plan
“Retirement and Savings Plan” means the tax-qualified Sonoco Retirement and Savings Plan, as amended from time to time. 
2.38 Separation from Service
“Separation from Service” means an Employee’s termination from employment with the Company and all Affiliates, whether by retirement, resignation from or discharge by the Company or an Affiliate (but not by a transfer among Affiliates or death).
(a)    A Separation from Service shall be deemed to have occurred as of the date the Employee and the Company or any Affiliate reasonably anticipates, based on the facts and circumstances, that either:
(1)    The Employee will not provide any additional services for the Company or an Affiliate after that date; or 
(2)    The level of bona fide services performed by the Employee after that date will permanently decrease to no more than 20 percent of the average level of bona fide services performed by the Employee over the immediately preceding 36 months. 
(b)    If an Employee is absent from employment due to Military Leave, sick leave, or any other bona fide leave of absence authorized by the Company or an Affiliate, and there is a reasonable expectation that the Employee will return to perform services for the 

10

        

Company or an Affiliate, then a Separation from Service shall not occur until the later of:

(1)    The first date immediately following the date that is six months after the first date that an Employee was absent from employment; and 
(2)    To the extent the Employee retains a right to reemployment with the Company or any Affiliates under an applicable statute or by contract, the date the Employee no longer retains a right to reemployment. 
2.39 Single Life Annuity
“Single Life Annuity” means a monthly retirement benefit payable for the lifetime of the Participant, with no continuing payments following the Participant’s death. 
2.40 Social Security Benefit
“Social Security Benefit” is used in the calculation of the Net Executive SERP Benefit under sections 3.2(b)(2), 3.3(b)(2), and 3.4(b)(2). “Social Security Benefit” means the estimated monthly benefit that the Participant would be entitled to receive under the Social Security Act commencing at age 62 (or, if later, the date of the Participant’s Separation from Service). This estimate shall be based on—
(a)    the Social Security Act in effect as of the date of the Participant’s Separation from Service; and
(b)    an assumption that the Participant’s compensation does not increase after the last day of the Plan Year that precedes the date of the Participant’s Separation from Service. 
Notwithstanding any provision in this Plan to the contrary, the Social Security Benefit for a Participant who incurs a Separation from Service after December 31, 2018 shall be determined as if he or she incurred a Separation from Service on December 31, 2018 and shall not be adjusted in any way to reflect a Participant’s earnings from the Company or an Affiliate after such date or any Social Security law changes that may become effective after such date.

2.41 Target Date Retirement Fund
“Target Date Retirement Fund” means the target date retirement funds that are available for the investment of a Participant’s account under the Retirement and Savings Plan. With respect to a particular Participant, the Target Date Retirement Fund shall be the fund having the target date that is closest to the year in which the Participant reaches age 65.
2.42 Ten-Year Certain and Life Annuity
“Ten-Year Certain and Life Annuity” means a monthly retirement benefit payable to the Participant for life, and if the Participant dies before receiving 120 monthly payments, such payments shall continue to the Beneficiary until a total of 120 payments have been made.
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2.43 Valuation Date
“Valuation Date” means any date selected by the Committee in its sole and absolute discretion for revaluation and adjustment of the Participant’s DC Restoration Account and DC SERP Account.  
2.44 Years of Benefit Service
“Years of Benefit Service” mean generally the years of service earned by a Participant for benefit accrual purposes under the Qualified Pension Plan (or the Pension Plan for Inactive Participants for any Participant who, upon his or her Separation from Service, has an accrued benefit under such plan). However, for purposes of determining the amount of a Participant’s Gross Executive SERP Benefit under section 2.21, “Years of Benefit Service” shall be credited for the Participant’s full period of employment with the Company and its Affiliates.
Except as provided in section 2.21, a Participant who incurs a Separation from Service after December 31, 2018 shall not earn Years of Benefit Service for employment with the Company and its Affiliates on and after January 1, 2019.  
2.45 Years of Vesting Service
“Years of Vesting Service” mean the following:
(a)    Executive Benefit. For purposes of determining whether a Participant has a vested interest in the Executive Benefit under Article 3, “Years of Vesting Service” mean the vesting service earned by the Participant as determined under the Qualified Pension Plan (but considering only such service earned during the Participant’s period of active participation under Article 3).
(b)    DB Restoration Benefit. For purposes of determining whether a Participant has a vested interest in the DB Restoration Benefit under Article 4, “Years of Vesting Service” mean the vesting service earned by the Participant as determined under the Qualified Pension Plan (or the vesting service recognized under the Pension Plan for Inactive Participants for any Participant who, upon his or her Separation from Service, has an accrued benefit under that plan).
(c)    Retirement Contribution Restoration Account. For purposes of determining whether a Participant has a vested interest in his or her Retirement Contribution Restoration Account under Article 5, “Years of Vesting Service” mean the vesting service earned by the Participant as determined under the Retirement and Savings Plan.
(d)    DC SERP Benefit. For purposes of determining whether a Participant has a vested interest in a DC SERP Benefit under Article 6, “Years of Vesting Service” will be determined as follows:
(1)    If the Participant is accruing benefits under the Qualified Pension Plan, his or her “Years of Vesting Service” mean the vesting service earned by the Participant as determined under the Qualified Pension Plan (but considering only such service 

12

        

earned during the Participant’s period of employment as an officer of the Company). 

(2)    If the Participant is eligible to receive “Retirement Contributions” (as defined and determined under the Retirement and Savings Plan), his or her “Years of   Vesting Service” mean the vesting service earned by the Participant as determined under the Retirement and Savings Plan (but considering only such service earned during the Participant’s period of employment as an officer of the Company). 
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Article 3. Executive Benefit
3.1 Eligibility and Participation
(a)    Eligibility. Subject to section 3.1(b) below, an Employee who was a Participant with respect to the Executive Benefit as of December 31, 2007 shall continue to be a Participant with respect to this benefit on and after January 1, 2008. Each Employee who was not a Participant with respect to the Executive Benefit as of December 31, 2007 shall not be eligible to become a Participant under this Article 3.   
(b)    Duration of Participation. An individual who becomes a Participant under this Article 3 shall continue as an active Participant until the earliest of the following three dates:
(1)    the date on which the Participant is designated by the Committee as no longer eligible to be a Participant with respect to the Executive Benefit; 
(2)    the date on which the Participant incurs a Separation from Service; or 
(3)    December 31, 2018. 
When active participation ends under section 3.1(b)(1), (2), or (3), the individual will continue as an inactive Participant with respect to the Executive Benefit until he or she has received a complete distribution of any benefits to which he or she is entitled under this Article 3 (or forfeits any such benefits either by incurring a Separation from Service before qualifying for a deferred vested retirement benefit under section 3.4(a) or by violating any of the conditions specified in section 10.14). 
3.2 Normal Retirement Benefits
(a)    Eligibility. A Participant under this Article 3 who incurs a Separation from Service on or after attaining age 65 shall be eligible for a normal retirement benefit under this section 3.2. This benefit shall commence as of the date determined under section 3.2(c) and shall be paid in the form determined under section 3.6.
(b)    Amount. The Executive Benefit payable under this section 3.2 to a Participant who retires after reaching age 65 shall equal the sum of—
(1)    the Participant’s Net Executive Restoration Benefit determined under section 3.5 as of the date of the Participant’s Separation from Service, but expressed as a Single Life Annuity (i.e., determined before converting the Gross Executive Restoration Benefit and the offset for the benefit payable under the Qualified Pension Plan into a Joint and 75 Percent Survivor Annuity under section 3.5(d)); and
(2)    the Participant’s Net Executive SERP Benefit, which shall equal (A) reduced by the sum of (B) and (C) where—

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(A)    is the Gross Executive SERP Benefit determined as of the date of the Participant’s Separation from Service; 
(B)    is the Gross Executive Restoration Benefit determined under section 3.5(b) as of the date of the Participant’s Separation from Service (after such amount has been converted into a Joint and 75 Percent Survivor Annuity in the manner described in section 3.5(d)); and 
(C)    is the Participant’s Social Security Benefit. 
(c)    Commencement. If a Participant becomes entitled to an Executive Benefit under this section 3.2 upon his or her Separation from Service, both the Net Executive Restoration Benefit and the Net Executive SERP Benefit shall commence as of the first day of the month next following the month in which the six-month anniversary of the Participant’s Separation from Service occurs. If all or a portion of the Executive Benefit is paid as an annuity under section 3.6, the first such annuity payment shall include the monthly amounts (with no adjustment for interest) the Participant would have received had his or her benefit commencement date been the first day of the month next following the date on which the Participant incurs a Separation from Service.
(d)    Freeze of Accruals. Notwithstanding any provision in this section 3.2 to the contrary, the benefit amount for a Participant who incurs a Separation from Service after December 31, 2018 shall be determined under section 3.2(b) as if the Participant incurred a Separation from Service on December 31, 2018 (but the benefit commencement date under section 3.2(c) shall still be based upon the Participant’s actual Separation from Service). 
3.3 Early Retirement Benefits
(a)    Eligibility. A Participant under this Article 3 who incurs a Separation from Service before reaching age 65, but after reaching age 55, shall be eligible for an early retirement benefit under this section 3.3. This benefit shall commence on the date determined under section 3.3(c) and shall be paid in the form determined under section 3.6. 
(b)    Amount. The Executive Benefit payable under this section 3.3 shall equal the sum of the Net Executive Restoration Benefit determined under section 3.3(b)(1) and the Net Executive SERP Benefit determined under section 3.3(b)(2).
(1)    Net Executive Restoration Benefit. The Net Executive Restoration Benefit under this section 3.3 shall equal (A) reduced by (B) where—
(A)    is the Net Executive Restoration Benefit determined under section 3.5 as of the date of the Participant’s Separation from Service, but expressed as a Single Life Annuity (i.e., determined before converting the Gross Executive Restoration Benefit and the offset for the benefit payable under 

15

        

the Qualified Pension Plan into a Joint and 75 Percent Survivor Annuity under section 3.5(d)); and 

(B)    is 0.30 percent of the amount determined under section 3.3(b)(1)(A) for each month by which the first day of the month that next follows the month in which the Participant incurred a Separation from Service precedes the first day of the month next following the month in which the Participant would attain age 65.
(2)    Net Executive SERP Benefit. The Net Executive SERP Benefit payable under this section 3.3 shall equal (A) reduced by the sum of (B) and (C) where—
(A)    is the Participant’s Gross Executive SERP Benefit determined as of the date of the Participant’s Separation from Service, reduced by 0.25 percent for each month by which the first day of the month that next follows the month in which the Participant incurred a Separation from Service precedes the first day of the month next following the month in which the Participant would attain age 62; 
(B)    is the Gross Executive Restoration Benefit determined under section 3.5(b) as of the date of the Participant’s Separation from Service (after such amount has been converted into a Joint and 75 Percent Survivor Annuity in the manner described in section 3.5(d)), reduced for commencement before age 65 in the manner and amount described in section 3.3(b)(1)(B) above; and 
(C)    is the Participant’s Social Security Benefit, calculated as if it were to commence on the first day of the month next following the later of (i) the month in which the Participant incurs a Separation from Service or (ii) the  month in which the Participant attains age 62. (This offset for the Social Security Benefit shall first be applied as of the first day of the month next following the later of the month in which the Participant incurs a Separation from Service or attains age 62.)
(c)    Commencement. If a Participant becomes entitled to an Executive Benefit under this section 3.3 upon his or her Separation from Service, both the Net Executive Restoration Benefit and the Net Executive SERP Benefit shall commence as of the first day of the month next following the month in which the six-month anniversary of the Participant’s Separation from Service occurs. If all or a portion of the Executive Benefit is paid as an annuity under section 3.6, the first such annuity payment shall include the monthly amounts (with no adjustment for interest) the Participant would have received had his or her benefit commencement date been the first day of the month next following the date on which the Participant incurs a Separation from Service.
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(d)    Freeze of Accruals. Notwithstanding any provision in this section 3.3 to the contrary, the benefit amount for a Participant who incurs a Separation from Service after December 31, 2018 shall be determined under section 3.3(b) as if the Participant incurred a Separation from Service on December 31, 2018 (but the applicable reductions under sections 3.3(b)(1)(B) and 3.3(b)(2)(A), and the benefit commencement date under section 3.3(c), shall still be based upon the Participant’s actual Separation from Service).
3.4 Deferred Vested Retirement Benefits
(a)    Eligibility. A Participant under this Article 3 who incurs a Separation from Service before qualifying for early retirement under section 3.3, but after completing five or more Years of Vesting Service as a Participant under this Article 3, shall be eligible for a deferred vested retirement benefit under this section 3.4. This benefit shall commence on the date determined under section 3.4(c) and shall be paid in the form determined under section 3.6. 
(b)    Amount. The Executive Benefit payable under this section 3.4 shall equal the sum of the Net Executive Restoration Benefit determined under section 3.4(b)(1) and the Net Executive SERP Benefit determined under section 3.4(b)(2).
(1)    Net Executive Restoration Benefit. The Net Executive Restoration Benefit payable under this section 3.4 shall equal (A) multiplied by (B) where—
(A)    is the Net Executive Restoration Benefit determined under section 3.5 as of the date of the Participant’s Separation from Service, but expressed as a Single Life Annuity (i.e., determined before converting the Gross Executive Restoration Benefit and the offset for the benefit payable under the Qualified Pension Plan into a Joint and 75 Percent Survivor Annuity under section 3.5(d)); and 
(B)    is 64 percent. 
(2)    Net Executive SERP Benefit. The Net Executive SERP Benefit payable under this section 3.4 shall equal (A) reduced by the sum of (B) and (C) where—
(A)    is 79 percent of the Participant’s Gross Executive SERP Benefit determined as of the date of the Participant’s Separation from Service;  
(B)    is 64 percent of the Gross Executive Restoration Benefit determined under section 3.5(b) as of the date of the Participant’s Separation from Service, (after such amount has been converted into a Joint and 75 Percent Survivor Annuity in the manner described in section 3.5(d)); and 
(C)    is the Participant’s Social Security Benefit, calculated as if it were to commence on the first day of the month next following the month in which the Participant attains age 62. (This offset for the Social Security Benefit 

17

        

shall first be applied as of the first day of the month next following the month in which the Participant attains age 62.) 

(c)    Commencement. If a Participant becomes entitled to an Executive Benefit under this section 3.4 upon his or her Separation from Service, both the Net Executive Restoration Benefit and the Net Executive SERP Benefit shall commence as of the later of—
(1)    the first day of the month next following the month in which the Participant reaches age 55; or 
(2)    the first day of the month next following the month in which the six-month anniversary of the Participant’s Separation from Service occurs. 
If all or a portion of the Executive Benefit is paid as an annuity under section 3.6, and the Participant’s benefit commencement date is the date determined under section 3.4(c)(2), the first such annuity payment shall include the monthly amounts (with no adjustment for interest) the Participant would have received had his or her benefit commencement date been the first day of the month next following the month in which the Participant reaches age 55.
(d)    Freeze of Accruals. Notwithstanding any provision in this section 3.4 to the contrary, the benefit amount for a Participant who incurs a Separation from Service after December 31, 2018 shall be determined under section 3.4(b) as if the Participant incurred a Separation from Service on December 31, 2018 (but the benefit commencement date under section 3.2(c) shall still be based upon the Participant’s actual Separation from Service).
3.5 Net Executive Restoration Benefit
(a)    In General. A Participant’s Net Executive Restoration Benefit shall equal the difference between—
(1)    the Gross Executive Restoration Benefit determined as of the Participant’s Separation from Service under section 3.5(b); and 
(2)    the benefit accrued by the Participant under the Qualified Pension Plan determined as of his or her Separation from Service as determined under 3.5(c).  
(b)    Gross Executive Restoration Benefit.  A Participant’s Gross Executive Restoration Benefit shall be determined initially as of December 31, 2008 (in accordance with section 3.5(b)(1)); then adjusted for each full Plan Year of participation thereafter (in accordance with section 3.5(b)(2)); and adjusted further for the Plan Year in which the Participant incurs a Separation from Service (in accordance with section 3.5(b)(3)).
(1)    Gross Executive Restoration Benefit as of December 31, 2008. The Gross Executive Restoration Benefit as of December 31, 2008 shall equal the amount that would have been accrued by the Participant under the Qualified Pension Plan 

18

        

as of such date without regard to the limits imposed by Code sections 401(a)(17) 
and 415, and calculated initially as a Single Life Annuity commencing on the Participant’s Normal Retirement Date, but then converted into a Joint and 75 Percent Survivor Annuity commencing on the Participant’s Normal Retirement Date (in the manner described in section 3.5(d)).

(2)    Annual Adjustments to Gross Executive Restoration Benefit for Full Plan Years of Participation. Beginning January 1, 2009, the Gross Executive Restoration Benefit determined as of the end of the immediately preceding Plan Year shall be increased as of the last day of each subsequent full Plan Year of participation by an amount equal to the lesser of (A) or (B) where—
(A)    is the difference (but not less than zero) between—
(i)    the amount that would have been accrued by the Participant under the Qualified Pension Plan through the last day of the current Plan Year without regard to the limits imposed by Code sections 401(a)(17) and 415, and calculated initially as a Single Life Annuity commencing on the Participant’s Normal Retirement Date, but then converted into a Joint and 75 Percent Survivor Annuity commencing on the Participant’s Normal Retirement Date (in the manner described in section 3.5(d)); and
(ii)    is the lesser of—
(I)    the amount that would have been accrued by the Participant under the Qualified Pension Plan through the last day of the immediately preceding Plan Year without regard to the limits imposed by Code sections 401(a)(17) and 415, calculated initially as a Single Life Annuity commencing on the Participant’s Normal Retirement Date but then converted into a Joint and 75 Percent Survivor Annuity commencing on the Participant’s Normal Retirement Date (in the manner described in section 3.5(d)); and
(II)    the amount of the Gross Executive Restoration Benefit as of the last day of the immediately preceding Plan Year; and 
(B)    is the increase in the Gross Executive SERP Benefit for such full Plan Year of participation. (This increase shall equal the Gross Executive SERP Benefit as of the last day of the Plan Year reduced by the Gross Executive SERP Benefit determined as of the last day of the immediately preceding Plan Year.) 
(3)    Final Determination of Gross Executive Restoration Benefit as of Separation from Service. As of the date of the Participant’s Separation from Service, the

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 Gross Executive Restoration Benefit shall equal the Gross Executive Restoration Benefit determined under section 3.5(b)(2) as of the last day of the immediately preceding Plan Year increased through the date of the Participant’s Separation from Service by an amount equal to the lesser of (A) or (B) where—

(A)    is the difference (but not less than zero) between—
(i)    the amount that would have been accrued by the Participant under the Qualified Pension Plan through the date of his or her Separation from Service without regard to the limits imposed by Code sections 401(a)(17) and 415, calculated initially as a Single Life Annuity commencing on the Participant’s Normal Retirement Date, but then converted into a Joint and 75 Percent Survivor Annuity commencing on the Participant’s Normal Retirement Date (in the manner described in section 3.5(d)); and 
(ii)    the lesser of—
(I)    the amount that would have been accrued by the Participant under the Qualified Pension Plan through the last day of the immediately preceding Plan Year without regard to the limits imposed by Code sections 401(a)(17) and 415, calculated initially as a Single Life Annuity commencing on the Participant’s Normal Retirement Date, but then converted into a Joint and 75 Percent Survivor Annuity commencing on the Participant’s Normal Retirement Date (in the manner described in section 3.5(d)); and
(II)     the amount of the Gross Executive Restoration Benefit as of the last day of the immediately preceding Plan Year; and 
(B)    is the increase in the Gross Executive SERP Benefit for the Plan Year in which the Participant incurred a Separation from Service.  (This increase shall equal the Gross Executive SERP Benefit as of the date of the Participant’s Separation from Service reduced by the Gross Executive SERP Benefit determined as of the last day of the immediately preceding Plan Year).
(4)    Freeze of Accruals. Notwithstanding any provision of this Plan to the contrary, for a Participant who incurs a Separation from Service after December 31, 2018, the Gross Executive Restoration Benefit shall be calculated under this section 3.5 as if the Participant incurred a Separation from Service on December 31, 2018.
(c)    Offset for Qualified Pension Plan Benefit. The offset described in section 3.5(a)(2) shall equal the amount accrued by the Participant under the Qualified Pension Plan as of the date of the Participant’s Separation from Service, calculated initially as a Single

20

        

Life Annuity commencing on the Participant’s Normal Retirement Date, but then converted into a Joint and 75 Percent Survivor Annuity (in the manner described in section 3.5(d)). Notwithstanding any provision in this Plan to the contrary, for a Participant who incurs a Separation from Service after December 31, 2018, the offset determined under this section 3.5(c) shall equal the amount accrued by the Participant under the Qualified Pension Plan as of December 31, 2018. 

(d)    Adjustment to the Single Life Annuity Amounts. Amounts calculated initially as a Single Life Annuity under sections 3.5(b) and 3.5(c) shall be converted into actuarially equivalent Joint and 75 Percent Survivor Annuity by—
(1)    applying the mortality and interest assumptions described in section 2.1, and
(2)    for a Participant who is not married as of the applicable calculation date, by assuming that the Participant’s beneficiary under the Joint and 75 Percent Survivor Annuity is the same age as the Participant.  
3.6 Form of Payment 
(a)    Net Executive Restoration Benefit. If a Participant’s benefit commencement date under this Article 3 is on or after January 1, 2009, such benefit shall be distributed as follows:
(1)    Normal Form of Payment. Unless a Participant elects an optional form under section 3.6(a)(2), and unless otherwise provide under section 10.3, the Net Executive Restoration Benefit shall be paid in the form of a Single Life Annuity, as determined under section 3.2(b)(1), 3.3(b)(1), or 3.4(b)(1) (as applicable).
(2)    Optional Forms of Payment. In lieu of the Single Life Annuity described in section 3.6(a)(1), and unless otherwise provide under section 10.3, a Participant may elect instead, at any time before his or her benefit commencement date and in a manner specified by the Committee, to receive his or her Net Executive Restoration Benefit in any one of the following forms of payment (each of which shall be the Actuarial Equivalent of the Single Life Annuity):
(A)    Joint and 50 Percent Survivor Annuity;
(B)    Joint and 75 Percent Survivor Annuity;
(C)    Joint and 100 Percent Survivor Annuity;
(D)    Five-Year Certain and Life Annuity; or
(E)    10-Year Certain and Life Annuity.
(b)    Net Executive SERP Benefit.

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(1)    Normal Form of Payment. Except as provided in sections 3.6(b)(2) and 10.3, the portion of the Executive Benefit that is attributable to the Net Executive SERP Benefit shall be paid as follows:
(A)    Married Participant: If a Participant is married when the payment of his or her Executive Benefit commences under this Article 3, the Net Executive SERP Benefit (i.e., the monthly amount determined under section 3.2(b)(2), 3.3(b)(2), or 3.4(b)(2), as applicable) shall be paid in the form a Joint and 75 Percent Survivor Annuity, with the Participant’s spouse as his or her Beneficiary.
(B)    Unmarried Participant. If a Participant is not married when the payment of his or her Net Executive SERP Benefit commences under this Article 3, such benefit shall be paid in the form of a Ten-Year Certain and Life Annuity. This Ten-Year Certain and Life Annuity shall be the Actuarial Equivalent of the Joint and 75 Percent Survivor Annuity determined under section 3.2(b)(2), 3.3(b)(2), or 3.4(b)(2), as applicable (which shall be valued assuming that the Participant’s Beneficiary is the same age as the Participant).
(2)    Optional Form of Payment.  
(A)    Three Equal Installments. Subject to section 10.3, a Participant may waive the normal form of payment specified under Section 3.6(b)(1) and elect instead to receive the Net Executive SERP Benefit in the form of three equal installments, with the first installment payable on the benefit commencement date determined under section 3.2(c), 3.3(c), or 3.4(c) (as applicable), the second installment payable six months after the payment of the first installment, and the third installment payable 12 months after the payment of the second installment. 
The amount of these installments shall be determined as follows:
(i)    The Net Executive SERP Benefit determined under 3.2(b)(2), 3.3(b)(2), or 3.4(b)(2) (as applicable) shall first be converted from an amount payable as a Joint and 75 Percent Survivor Annuity into an equivalent lump sum using—
(I)    the “applicable mortality table” determined under Code section 417(e); and 
(II)    the “applicable interest rate” determined under Code section 417(e) for the month of November immediately preceding the first day of the Plan Year in which the distribution occurs.

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(ii)    The lump sum determined under section 3.6(b)(2)(A)(i) shall then be converted into an equivalent payment stream of three installments by applying the first tier segment rate described in Code section 430(h)(2)(C)(i).
(B)    Limitation on Final Installment Payments. If the amount of the final (i.e., third) installment payments made on behalf of all Participants who are entitled to such final installment payments in any Plan Year would trigger settlement accounting for such Plan Year under FASB ASC 715 (or any successor to such statement), the amount actually paid in such Plan Year shall be limited to avoid the application of settlement accounting in the manner described below. 
(i)    The aggregate excess amount for the Plan Year is equal to (I) minus (II) where—
(I)    is the total of all final (i.e., third) installment payments due to Participants under this section 3.6(b)(2) for the Plan Year; and 
(II)    is the total amount of all final (i.e., third) installment payments that could be made for such Plan Year without triggering settlement accounting for the Plan Year.
(ii)    The aggregate excess amount for the Plan Year (as determined under section 3.6(b)(2)(B)(i)) shall be allocated among the Participants who are otherwise entitled to their final installment payments in the Plan Year in proportion to the amount of each individual’s final installment payment. 
(iii)    The installment payment actually made to each such Participant for the Plan Year shall equal the difference between (I) and (II) where—
(I)    is the installment payment the Participant would otherwise be entitled to for the Plan Year without regard to this section 3.6(b)(2)(B); and
(II)    is the Participant’s proportionate share of the aggregate excess amount determined under section 3.6(b)(2)(B)(ii). 
(iv)    Each affected Participant will then receive an additional payment during the next following Plan Year equal to the amount by which his or her third installment payment was reduced under section 3.6(b)(2)(B)(iii), provided such payment would not itself trigger settlement accounting for such Plan Year under Statement of Financial Accounting Standards No. 88 (or any successor to such statement). If such payment would trigger settlement accounting, the 

23

        

Committee will continue to apply the procedures described in this section 3.6(b)(2)(B) until the Participant has received a complete distribution of his or her final payment.   

(C)    Electing an Optional Form. An election of the optional form of payment described in this section 3.6(b)(2) must be made by the Participant at a time and in a manner prescribed by the Committee, but not later than June 30, 2008. 
(D)    Death of the Participant after the Benefit Commencement Date. If a Participant who has elected the optional form of payment described in this section 3.6(b)(2) dies after the benefit commencement date specified in section 3.2(c), 3.3(c), or 3.4(c) (as applicable), but before receiving all three installments, the remaining installments shall be paid to the Participant’s Beneficiary at the same time as such installments would have been paid to the Participant.
3.7 Preretirement Death Benefits
(a)    Eligibility. If a Participant under this Article 3 dies before his or her benefit commencement date, but after attaining age 55 or completing five or more Years of Vesting Service as a Participant under this Article 3, the Participant’s surviving spouse shall be entitled to the preretirement death benefit determined under this section 3.7. (If a Participant dies before meeting the eligibility requirements described above, or if the Participant does not have a surviving spouse as of the benefit commencement date determined under this section, no benefits will be payable under this section 3.7.)
(b)    Net Executive Restoration Benefit. A surviving spouse who becomes entitled to a benefit under section 3.7(a) shall receive a preretirement death benefit attributable to the Participant’s Net Executive Restoration Benefit. The amount of such benefit shall be determined under section 3.7(b)(1). In addition, this benefit shall commence on the date determined under section 3.7(b)(2) and shall be paid in the form described in section 3.7(b)(3).  
(1)    Benefit Amount. The preretirement death benefit attributable to the Participant’s Net Executive Restoration Benefit shall be a monthly benefit that is determined as follows:
(A)    In the case of a Participant who dies after reaching age 55, the surviving spouse shall receive a Single Life Annuity having monthly payments equal to the survivor portion of the Joint and 50 Percent Survivor Annuity that would have become payable to the Participant as a Net Executive Restoration Benefit under this Article 3 had he or she incurred a Separation from Service on the day before his or her death and commenced a benefit as of the date determined under section 3.2(c) or 3.3(c) (as applicable) in

24

        

the form of a Joint and 50 Percent Survivor Annuity with the Participant’s spouse as his or her designated Beneficiary.

(B)    In the case of a Participant who dies before reaching age 55, the surviving spouse shall receive a Single Life Annuity having monthly payments equal to the survivor portion of the Joint and 50 Percent Survivor Annuity that would have become payable to the Participant as a Net Executive Restoration Benefit under this Article 3 had he or she incurred a Separation from Service on the date of his or her death, survived to the first day of the month next following the month in which the Participant would have attained age 55, and commenced a benefit as of such date in the form of a Joint and 50 Percent Survivor Annuity with the Participant’s spouse as his or her designated Beneficiary. 
(2)    Benefit Commencement Date. A preretirement death benefit that becomes payable under this section 3.7(b) shall commence on the first day of the month next following the later of—
(A)    the date of the Participant’s death; or
(B)    the date the Participant would have reached age 55.
(3)    Form of Payment. Except as provided in section 10.3, a preretirement death benefit under this section 3.7(b) shall be paid to the Participant’s surviving spouse in the form of a Single Life Annuity.
(c)    Net Executive SERP Benefit. A surviving spouse who becomes entitled to a benefit under section 3.7(a) shall receive a preretirement death benefit attributable to the Participant’s Net Executive SERP Benefit. The amount of such benefit shall be determined under section 3.7(c)(1). In addition, this benefit shall commence on the date determined under section 3.7(c)(2) and shall be paid in the form described in section 3.7(c)(3). 
(1)    Benefit Amount. The preretirement death benefit attributable to the Participant’s Net Executive SERP Benefit shall be a monthly benefit that is determined as follows:
(A)    Death on or after Age 55. If a vested Participant dies before the commencement date of his or her Net Executive SERP Benefit, but on or after attaining age 55, the Participant’s surviving spouse shall be entitled to a Single Life Annuity with monthly payments equal to (i) reduced by (ii) where—
(i)    is 75 percent of the Gross Executive SERP Benefit accrued by the Participant as of the date of his or her death (with no reductions for early commencement)—

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(I)    assuming the Participant had at least 15 Years of Benefit Service under section 2.21(a); 
(II)    using the Participant’s actual Years of Benefit Service as of his or her date of death under section 2.21(b); and
(III)    replacing the offset for Social Security Benefits with an offset for the combined family Social Security benefit; and 
(ii)    is the sum of—
(I)    the survivor portion of the amount that would have become payable to the Participant under the Qualified Pension Plan, assuming the Participant incurred a Separation from Service on the day before his or her death, and commenced a benefit under such plan as of the first day of the month next following the month of the Participant’s death in the form of a Joint and 50 Percent Survivor Annuity with the Participant’s spouse as his or her designated Beneficiary; and
(II)    the amount that would become payable to the Participant’s spouse under section 3.7(b) as of the first day of the month next following the month of the Participant’s death.
(B)    Death before Age 55. If a vested Participant dies before attaining age 55, the Participant’s surviving spouse shall be entitled to a Single Life Annuity with monthly payments equal to (i) reduced by (ii) where—
(i)    is the amount determined under section 3.7(c)(1)(A)(i) above as of the date of the Participant’s death; and 
(ii)    is the sum of—
(I)    the survivor portion of the amount that would have become payable to the Participant under the Qualified Pension Plan, assuming the Participant incurred a Separation from Service on the day of his or her death, survived to the first day of the month next following the month in which the Participant would have attained age 55, and commenced a benefit as of such date in the form of a Joint and 50 Percent Survivor Annuity with the Participant’s spouse as his or her designated Beneficiary; and
(II)    the amount that would become payable to the Participant’s spouse under section 3.7(b) as of the first day of the month next following the month in which the Participant attains age 55.

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(2)    Benefit Commencement Date.
(A)    Death on or after Age 55.  A preretirement death benefit payable on behalf of a Participant described in section 3.7(c)(1)(A) shall commence as of the first day of the month next following the month of the Participant’s death. 
(B)    Death before Age 55. A preretirement death benefit that becomes payable on behalf of a Participant under section 3.7(c)(1)(B) shall commence as of the first day of the month next following the month in which the Participant would have attained age 55.
(3)    Form of Payment. 
(A)    General Rule. Except as provided in sections 3.7(c)(3)(B) and 10.3, a preretirement death benefit under this section 3.7(c) shall be paid to the Participant’s surviving spouse in the form of a Single Life Annuity.
(B)    Installments. If a Participant made a timely election under section 3.6(b)(2)(C) to receive his or her Net Executive SERP benefit in the form of three equal installments, the preretirement death benefit attributable to the Net Executive SERP benefit under section 3.7(c) shall be paid to the Participant’s surviving spouse in the form of three equal installments (calculated in the manner described in section 3.6(b)(2)(A), but with the first installment to be paid as soon as practicable following the Participant’s death, and no later than the last day of the Plan Year in which the Participant died (or the 15th day of the third calendar month following date of the Participant’s death, if later). The second installment shall be paid in January of the year following payment of the first installment, and the third installment shall be paid in January of the year following payment of the second installment).
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Article 4. DB Restoration Benefit
4.1 Eligibility and Participation
(a)    Eligibility. Each Employee who was a Participant with respect to the DB Restoration Benefit on December 31, 2021 shall continue to be Participant under this Article 4 on January 1, 2022. Each other Employee shall be eligible to become a Participant with respect to the DB Restoration Benefit described in this Article 4 if the Employee—
(1)    has an accrued benefit under the Qualified Pension Plan or the Pension Plan for Inactive Participants; and
(2)    is determined by the Committee to be among a select group of management or highly compensated employees.
However, notwithstanding any provision in this Plan to the contrary, any Employee who is a Participant with respect to the Executive Benefit described in Article 3 shall not be a Participant with respect to the DB Restoration Benefit described in this Article 4.
(b)    Date of Participation. Each Employee who is eligible to participate under section 4.1(a) shall become a Participant under this Article 4 as of the first day of the month next following the month in which his or her accrued benefit under the Qualified Pension Plan or the Pension Plan for Inactive Participants (as applicable) becomes limited by Code section 401(a)(17) and/or Code section 415.
(c)    Duration of Participation. An individual who becomes a Participant under this section 4.1 shall continue as an active Participant under this Article 4 until the earlier of the date on which he or she—
(1)    is determined by the Committee as no longer meeting the requirements of section 4.1(a); or
(2)    incurs a Separation from Service.
When active participation ends under section 4.1(c)(1) or (2), the individual will continue as an inactive Participant with respect to the DB Restoration Benefit until he or she has received a complete distribution of any benefits earned under this Article 4 (or forfeits any such benefits by incurring a Separation from Service before meeting the eligibility requirements for a deferred vested retirement benefit under section 4.4(a)).
4.2 Normal Retirement Benefit
(a)    Eligibility. A Participant under this Article 4 who incurs a Separation from Service after reaching age 65 shall be entitled to a normal retirement benefit under this section 4.2. This normal retirement benefit shall be calculated as a Single Life 

28

        

Annuity commencing on the date specified in section 4.2(c)(1), but shall be paid in the form determined under section 4.5.

(b)    Amount. A Participant who is eligible for a normal retirement benefit under section 4.2(a) shall be entitled to a monthly benefit equal to the difference between—
(1)    the monthly benefit to which the Participant would be entitled to under the Qualified Pension Plan or the Pension Plan for Inactive Participants (as applicable) commencing as of the first day of the month next following the month in which the Participant incurs a Separation from Service, but calculated without regard to the compensation and benefit limits in effect under the Qualified Pension Plan pursuant to Code sections 401(a)(17) and 415; and
(2)    the monthly normal retirement benefit payable to the Participant under the Qualified Pension Plan or the Pension Plan for Inactive Participants (as applicable) commencing as of the first day of the month next following the month in which the Participant incurs a Separation from Service.
(c)    Benefit Commencement Date. 
(1)    In General. Except as provided in section 4.2(c)(2), payment of benefits under this section 4.2 shall begin as of the first day of the month following the date on which the Participant incurs a Separation from Service.
(2)    Delayed Commencement for Key Employees. If the Participant is a Key Employee upon his or her Separation from Service, payment of the DB Restoration Benefit shall commence as of the first day of the month next following the month in which the six-month anniversary of the Participant’s Separation from Service occurs. However, the first benefit payment will include the payments (with no adjustment for interest) the Participant would have received had his or her benefit commencement date been the date determined under section 4.2(c)(1).
4.3 Early Retirement Benefits
(a)    Eligibility. A Participant under this Article 4 who incurs a Separation from Service after reaching age 55, but before meeting the requirements for a normal retirement benefit under section 4.2(a), shall be entitled to an early retirement benefit under this section 4.3. This early benefit shall be calculated as a Single Life Annuity commencing on the date specified in section 4.3(c)(1), but shall be paid in the form determined under section 4.5.
(b)    Amount. The benefit payable to a Participant under this section 4.3 shall equal the normal retirement benefit accrued by the Participant under section 4.2(b) as of the date of his or her Separation from Service, reduced by 0.3 percent of such amount for each month by which the benefit commencement date described in section 4.3(c)(1) precedes the Participant’s Normal Retirement Date.

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(c)    Benefit Commencement Date. 
(1)    In General. Except as otherwise provided in section 4.3(c)(2) below, for a Participant who incurs a Separation of  Service on or after January 1, 2009, payment of an early retirement benefit under this section 4.3 shall commence as of the first day of the month next following the date on which the Participant incurs a Separation from Service.
(2)    Delayed Commencement for Key Employees. If the Participant is a Key Employee upon his or her Separation from Service, and such Participant’s benefit commencement date under section 4.3(c)(1) would otherwise occur on or after January 1, 2009, payment of the DB Restoration Benefit shall commence as of the first day of the month next following the month in which the six-month anniversary of the Participant’s Separation from Service occurs. However, the first benefit payment will include the payments (with no adjustment for interest) the Participant would have received had his or her benefit commencement date been the date determined under section 4.3(c)(1).
4.4 Deferred Vested Retirement Benefits
(a)    Eligibility. A Participant under this Article 4 who incurs a Separation from Service before becoming eligible for an early retirement benefit under section 4.3, but after completing five or more Years of Vesting Service, shall be entitled to a deferred vested retirement benefit under this section 4.4. This deferred vested retirement benefit shall be calculated as a Single Life Annuity commencing on the date specified in section 4.4(c)(1), but shall be paid in the form determined under section 4.5.
(b)    Amount. The benefit payable to a Participant under this section 4.4 shall equal the normal retirement benefit accrued by the Participant under section 4.2(b) as of the date of his or her Separation from Service, reduced by 0.3 percent of such amount for each month by which the benefit commencement date described in section 4.4(c)(1) precedes the Participant’s Normal Retirement Date.
(c)    Benefit Commencement Date. 
(1)    In General. Except as otherwise provided in section 4.4(c)(2), for a Participant who incurs a Separation of  Service on or after January 1, 2009, payment of a deferred vested retirement benefit under this section 4.4 shall commence as of the first day of the month next following the date on which the Participant reaches age 55.
(2)    Delayed Commencement for Key Employees. If the Participant is a Key Employee upon his or her Separation from Service, and such Participant’s benefit commencement date under section 4.4(c)(1) would otherwise occur on or after January 1, 2009, payment of the DB Restoration Benefit shall commence as of the first day of the month next following the month in which the six-month anniversary of the Participant’s Separation from Service occurs. However, the

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first benefit payment will include the payments (with no adjustment for interest) the Participant would have received had his or her benefit commencement date been the date determined under section 4.4(c)(1).

4.5 Form of Payment
Except as provided in section 10.3, if a Participant’s benefit commencement date under this Article 4 is on or after January 1, 2009, the benefit shall be distributed to the Participant as follows:

(a)    Normal Form of Payment. Unless a Participant elects an optional form under section 4.5(b), the DB Restoration Benefit shall be paid in the form of a Single Life Annuity.
(b)    Optional Forms of Payment. In lieu of the Single Life Annuity described in section 4.5(a), a Participant may elect instead, at any time before his or her benefit commencement date and in a manner specified by the Committee, to receive his or her DB Restoration Benefit in any one of the following forms of payment (each of which shall be the Actuarial Equivalent of the Single Life Annuity):
(1)    Joint and 50 Percent Survivor Annuity;
(2)    Joint and 75 Percent Survivor Annuity;
(3)    Joint and 100 Percent Survivor Annuity;
(4)    Five-Year Certain and Life Annuity; or
(5)    10-Year Certain and Life Annuity. 
4.6 Preretirement Death Benefits
(a)    Eligibility. If a Participant under this Article 4 dies before his or her benefit commencement date, but after attaining age 55 or completing five or more Years of Vesting Service, the Participant’s surviving spouse shall be entitled to the preretirement death benefit determined under this section 4.6. No preretirement death benefit shall be payable under this Article 4 on behalf of a Participant who—
(1)    is not married at the time of his or her death; or 
(2)    is married at the time of his or her death, but had not either attained age 55 or completed five or more Years of Vesting Service. 
(b)    Amount. A surviving spouse who becomes eligible for a preretirement death benefit under section 4.6(a) shall be entitled to a monthly benefit equal to the difference between—
(1)    the preretirement death benefit to which the spouse would be entitled under the Qualified Pension Plan commencing as of the date specified under section 4.6(c),

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but calculated without regard to the compensation and benefit limits in effect under the Qualified Pension Plan pursuant to Code sections 401(a)(17) and 415; and

(2)    the preretirement death benefit that actually would be payable to the spouse under the Qualified Pension Plan if such benefit were to commence as of the date specified under section 4.6(c) below.
(c)    Benefit Commencement Date. A preretirement death benefit that becomes payable under this section 4.6 shall commence on the first day of the month following the later of—
(1)    the date of the Participant’s death; or
(2)    the date the Participant would have reached age 55.
(d)    Form of Payment. Except as provided in section 10.3, a preretirement death benefit under this section 4.6 shall be paid to the Participant’s surviving spouse in the form of a Single Life Annuity. 
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Article 5. DC Restoration Account
5.1 Eligibility and Participation
(a)    Eligibility. Each Employee who was a Participant on December 31, 2007 with respect to the “Excess ESSOP Benefit” (as defined under the Plan as in effect on such date) shall continue to be Participant under this Article 5 on January 1, 2008. Each other Employee shall be eligible to become a Participant with respect to the DC Restoration Account described in this Article 5 if the Employee is—
(1)    a participant under the Retirement and Savings Plan; and
(2)    determined by the Committee to be among a select group of management or highly compensated employees.
(b)    Date of Participation. Each Employee who is eligible to participate under section 5.1(a) shall become a Participant under this Article 5 as of the first day of the month next following the month in which his or her benefits under the Retirement and Savings Plan become limited by Code section 401(a)(17) and/or Code section 415.
(c)    Duration of Participation. An individual who becomes a Participant under this section 5.1 shall continue as an active Participant under this Article 5 until the earlier of the date on which he or she—
(1)    is determined by the Committee as no longer meeting the requirements of section 5.1(a); or
(2)    incurs a Separation from Service.
When active participation ends under section 5.1(c)(1) or (2), the individual will continue as an inactive Participant under with respect to the DC Restoration Account until he or she has received a complete distribution of all vested benefits earned under this Article 5.
5.2 Benefits
(a)    Company Match Restoration Benefit. For each Plan Year, the Company shall credit to the Company Match Restoration Account of each Participant an amount equal to:
(1)    the portion of the Participant’s Eligible Compensation for the Plan Year that exceeds the limit in effect for such Plan Year under Code section 401(a)(17); multiplied by 
(2)    the matching contribution percentage that would have applied to the Participant under the Retirement and Savings Plan for such Plan Year assuming that he or she had been contributing at a rate to qualify for the maximum matching contribution percentage under such plan.   

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(b)    Retirement Contribution Restoration Benefit. For each Plan Year, the Company shall credit to the Retirement Contributions Restoration Account of each Participant who is eligible to receive a “Retirement Contribution” under the terms of the Retirement and Savings Plan for such Plan Year an amount equal to the difference between—
(1)    the annual contribution to which the Participant would be entitled to as a “Retirement Contribution” for such Plan Year (as defined and determined under the Retirement and Savings Plan), calculated without regard to the compensation and benefit limits in effect pursuant to Code sections 401(a)(17) and 415; and
(2)    the “Retirement Contributions” (as defined and determined under the Retirement and Savings Plan) actually allocated to the Participant’s account under the Retirement and Savings Plan for such Plan Year.
However, notwithstanding the above, a Participant shall be entitled to an allocation under this section 5.2(b) for a Plan Year only if (i) he or she is actively employed on the last day of the Plan Year or (ii) incurs a Separation from Service before the last day of the Plan Year on account of death, disability, or termination of employment after reaching age 55. No credits will be made with respect to this section 5.2(b) after the 2021 Plan Year credit is made. 
(c)    Timing.  Contributions under this section 5.2 shall be credited to each Participant’s DC Restoration Account at the time or times determined by the Committee within its sole and absolute discretion, but in no event shall contributions for a Plan Year be allocated to a Participant’s DC Restoration Account later than March 1 of the next following Plan Year (or as soon as administratively practicable after such date).
5.3 Investment Gains and Losses.
Amounts credited to a Participant’s DC Restoration Account shall be adjusted as of each Valuation Date to reflect the earnings and losses that would have occurred had such account actually been invested in the manner described below. 
(a)    Investment Funds. For purposes of this section 5.3, “investment funds” mean the investment funds available under the Retirement and Savings Plan (but excluding the self-directed brokerage account and the Company Sock fund). 
(b)    Investment of Contributions. Contributions allocated to a Participant’s Company Match Restoration Account and Retirement Contributions Restoration Account shall be deemed to be invested in one or more investment funds selected by the Participant. The Participant shall direct the investment of these contributions in 1 percent increments, at a time and manner prescribed by the Committee. 
A Participant may change his or her deemed investment elections with respect to future contributions (in 1 percent increments) by giving notice of such change to the 

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Committee at a time and manner prescribed by the Committee. The change shall be effective as soon as administratively practicable following the receipt of such notice.

(c)    Investment Transfers. Each Participant may elect to transfer any portion of his or her DC Restoration Account that is deemed invested in any particular investment fund to any one or more of the other investment funds by giving notice of such change to the Committee at a time and manner prescribed by the Committee. This change shall be effective as soon as administratively practicable following the receipt of such notice.
(d)    Default Investment. If a Participant fails to make an election under section 5.3(b), the contributions allocated to the Participant’s Company Match Restoration Account under section 5.2(a) and/or the Participant’s Retirement Contributions Restoration Account under section 5.2(b) shall be deemed to be invested in the Target Date Retirement Fund.
5.4 Vesting
(a)    Company Match Restoration Account. A Participant shall at all times have a fully vested interest in his or her Company Match Restoration Account. 
(b)    Retirement Contributions Restoration Account. A Participant will become fully vested in his or her Retirement Contributions Restoration Account upon the earlier of—
(1)    completing three Years of Vesting Service; or
(2)    attaining age 55 while actively employed by the Company or an Affiliate.
A Participant who incurs a Separation from Service before reaching age 55 or completing three Years of Vesting Service will forfeit all amounts accumulated in his or her Retirement Contributions Restoration Account.
5.5 Distributions Following a Separation from Service
(a)    Time of Payment. The payment of vested benefits under this Article 5 shall commence as soon as administratively practicable following the first day of the month next following the month in which the six-month anniversary of the Participant’s Separation from Service occurs. In no event, however, shall payment commence later than the last day of the Plan Year in which such six-month anniversary occurs (or the 15th day of the third calendar month following such six-month anniversary, if later).
(b)    Form of Payment. Except as otherwise provided in section 10.3, the Participant’s DC Restoration Account shall be distributed as of the benefit payment date determined under section 5.5(a) in the form of three installments, with—
(1)    the first installment occurring on the benefit payment date determined under section 5.5(a) above, and comprised of a cash payment equal to one-third of the

35

        

amount credited to the Participant’s DC Restoration Account as of such payment date;

(2)    the second installment occurring in January of the Plan Year next following the Plan Year in which the first installment is paid, and comprised of a cash payment equal to 50 percent of the amount credited to the Participant’s DC Restoration Account as of such payment date; and 
(3)    the third installment occurring in January of the Plan Year next following the Plan Year in which the second installment is paid, and comprised of a cash payment equal to the balance remaining in the Participant’s DC Restoration Account as of such payment date.
During the installment distribution period described under this section 5.5(b), the Participant’s remaining DC Restoration Account will continue to be adjusted for gains and losses under section 5.3 until such account has been completely distributed.
5.6 Distributions upon the Participant’s Death
(a)    Death After the Benefit Commencement Date. If a Participant dies after having received one or more installment payments under section 5.5, any installment that remains unpaid as of the date of the Participant’s death shall be distributed to the Participant’s Beneficiary on the same date on which such installment payment would have been distributed to the Participant in accordance with section 5.5(b).
(b)    Death Before the Benefit Commencement Date. If a Participant dies before his or her benefit commencement date (as determined under section 5.5), the vested balance of the Participant’s DC Restoration Account shall be distributed to the Participant’s Beneficiary in three installments, with—
(1)    the first installment occurring as soon as practicable following the Participant’s death, but no later than the last day of the Plan Year in which the Participant died (or the 15th day of the third calendar month following date of the Participant’s death, if later), and comprised of a cash payment equal to one-third of the amount credited to the Participant’s DC Restoration Account;
(2)    the second installment occurring in January of the Plan Year next following the Plan Year in which the first installment is paid, and comprised of a cash payment equal to one-half of the amount credited to the Participant’s DC Restoration Account; and
(3)    the third installment occurring in January of the Plan Year next following the Plan Year in which the second installment is paid, and comprised of a cash payment equal to the balance remaining in the Participant’s DC Restoration Account.

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During the installment distribution period described under this section 5.6, the Participant’s DC Restoration Account will continue to be adjusted for gains and losses under section 5.3 until the entire benefit has been completely distributed.

5.7    New Contribution. A new contribution shall be made to the Plan as follows:

(a)    Effective Date: This section is effective for Eligible Compensation earned after December 31, 2021;

(b)    Eligibility: Any nonunion Employee whose Eligible Compensation during a Plan Year exceeds the Social Security Wage Base in effect for such Plan Year;

(c)    Vesting: All contributions made pursuant to this section shall be 100% vested and nonforfeitable;

(d)    Contribution Amount: 4% of the amount that the nonunion Employee’s Eligible Compensation exceeds the Social Security Wage Base in effect for such Plan Year.

 
 
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Article 6. DC SERP Benefit
6.1 Eligibility and Participation 
(a)    Eligibility. An Employee shall be eligible to become a Participant with respect to the DC SERP Benefit described in this Article 6 if he or she—
(1)    first becomes an officer of the Company on or after January 1, 2008; and
(2)    is determined by the Committee to be among a select group of management or highly compensated employees.
In addition, an Employee who is an active Participant under Article 3 on December 31, 2018, and who remains employed as an officer of the Company on January 1, 2019, shall become a Participant with respect to the DC SERP Benefit described in this Article 6 on January 1, 2019.

(b)    Date of Participation. Each Employee who is eligible to participate under section 6.1(a) shall become a Participant under this Article 6 as of the first day of the month next following the month in which he or she first meets the eligibility requirements described in section 6.1(a). 
(c)    Duration of Participation. An individual who becomes a Participant under this section 6.1 shall continue as an active Participant under this Article 6 (and be entitled to the benefits described in section 6.2 below) until the earlier of the date on which he or she—
(1)    is determined by the Committee as no longer meeting the requirements of section 6.1(a); or
(2)    incurs a Separation from Service.
When active participation ends under section 6.1(c)(1) or (2), the individual will continue as an inactive Participant with respect to the DC SERP Benefit until he or she has received a complete distribution of any benefits earned under this Article 6 (or forfeits any such benefits under section 6.4).
6.2 Benefits
(a)    Amount. For each Plan Year:
(1)    the Company shall credit 7.50 percent of each Participant’s Eligible Compensation for that Plan Year to his or her DC SERP Account; and
(2)    the Company shall provide the Participant with a number of Restricted Stock Units equal to (A) 2.50 percent of the Participant’s Eligible Compensation for that Plan Year, divided by (B) the closing price of the Company Stock as of the contribution date determined under section 6.2(b).

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(b)    Timing. 
(1)    The amount determined under section 6.2(a)(1) for any Plan Year shall be credited to the Participant’s DC SERP Account as of a date or dates selected by the Committee within its sole and absolute discretion, but in no event shall these amounts be credited later than March 1 of the next following Plan Year (or as soon as administratively practicable after such date). 
(2)    The Restricted Stock Units determined under section 6.2(a)(2) for any Plan Year shall be issued to the Participant as of a date or dates selected by the Committee within its sole and absolute discretion, but in no event shall these Restricted Stock Units be issued later than March 1 of the next following Plan Year (or as soon as administratively practicable after such date).
6.3 Investment Gains and Losses.
(a)    DC SERP Account: A Participant’s DC SERP Account shall be adjusted for earnings as of each Valuation Date at a rate equal to 120 percent of the Federal long-term rate as determined under Code section 1274(d) for January of the Plan Year in which the Valuation Date occurs.
(b)    Restricted Stock Units: Each Participant shall be entitled to the following with respect to his or her Restricted Stock Units:
(1)    Cash Dividends. Whenever the Company pays a cash dividend with respect to Company Stock, the Company will issue an additional number of Restricted Stock Units to a Participant under this Article 6 equal to—
(A)    the number of Restricted Stock Units held by the Participant as of the date of record for such dividend; multiplied by
(B)    the per share cash dividend amount; divided by 
(C)    the closing price of the Company’s Stock on the dividend payment date.
(2)    Stock Dividends. Whenever the Company pays a stock dividend with respect to Company Stock, the Company will issue an additional number of Restricted Stock Units to a Participant under this Article 6 equal to—
(A)    the number of Restricted Stock Units held by the Participant as of the date of record for such dividend; multiplied by
(B)    the per share stock dividend rate.
6.4 Vesting
A Participant shall become vested in both the DC SERP Account and his or her Restricted Stock Units upon attaining age 55 and completing five Years of Vesting Service as an officer. A Participant who incurs a Separation from Service before reaching age 55 or before 

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completing five Years of Vesting Service as an officer will forfeit all amounts accumulated in his or her DC SERP Account and all of the Restricted Stock Units granted under this Article 6. 

6.5 Distributions Following a Separation from Service
(a)    Time of Payment. The payment of vested benefits under this Article 6 shall commence as soon as administratively practicable following the first day of the month next following the month in which the six-month anniversary of the Participant’s Separation from Service occurs. In no event, however, shall payment commence later than the last day of the Plan Year in which such six-month anniversary occurs (or the 15th day of the third calendar month following such six-month anniversary, if later).
(b)    Form of Payment. Except as otherwise provided in section 10.3, the Participant’s vested benefit under this Article 6 shall be distributed as of the benefit payment date determined under section 6.5(a) in the form of three installments, with—
(1)    the first installment occurring on the benefit payment date determined under section 6.5(a), and comprised of—
(A)    a cash payment equal to one-third of the amount credited to the Participant’s DC SERP Account as of such payment date; and
(B)    a number of shares of Company Stock equal to one-third of the number of the Participant’s Restricted Stock Units as of such payment date (rounded down to the nearest whole number with the any remaining fractional Restricted Stock Unit converted to, and distributed as, cash);
(2)    the second installment occurring in January of the Plan Year next following the Plan Year in which the first installment is paid, and comprised of—
(A)    a cash payment equal to one-half of the amount credited to the Participant’s DC SERP Account as of such payment date; and
(B)    a number of shares of Company Stock equal to one-half of the number of the Participant’s Restricted Stock Units as of such payment date (rounded down to the nearest whole number with the any remaining fractional Restricted Stock Unit converted to, and distributed as, cash); and
(3)    the third installment occurring in January of the Plan Year next following the Plan Year in which the second installment is paid, and comprised of –
(A)    a cash payment equal to the balance remaining in the Participant’s DC SERP Account as of such payment date; and
(B)    a number of shares of Company Stock equal to remaining number of the Participant’s Restricted Stock Units as of such payment date (rounded 

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down to the nearest whole number with the any remaining fractional Restricted Stock Unit converted to, and distributed as, cash).

During the installment distribution period described under this section 6.5(b), the Participant’s DC SERP Benefit will continue to be adjusted for gains and losses under section 6.3 until the entire benefit has been completely distributed.
6.6 Distributions Upon the Participant’s Death
(a)    Death After the Benefit Commencement Date. If a Participant dies after having received one or more installment payments under section 6.5, any installment that remains unpaid as of the date of the Participant’s death shall be distributed to the Participant’s Beneficiary on the same date (and in the same manner) on which such installment payment would have been distributed to the Participant in accordance with section 6.5(b).
(b)    Death Before the Benefit Commencement Date. If a Participant dies before his or her benefit commencement date (as determined under section 6.5), the Participant’s vested DC SERP Benefit shall be distributed to the Participant’s Beneficiary in three installments, with—
(1)    the first installment occurring as soon as administratively practicable following the Participant’s death, but no later than the last day of the Plan Year in which the Participant died (or the 15th day of the third calendar month following date of the Participant’s death, if later), and comprised of—
(A)    a cash payment equal to one-third of the amount credited to the Participant’s DC SERP Account as of such payment date; and
(B)    a number of shares of Company Stock equal to one-third of the number of the Participant’s Restricted Stock Units as of such payment date (rounded down to the nearest whole number with the any remaining fractional Restricted Stock Unit converted to, and distributed as, cash);
(2)    the second installment occurring in January of the Plan Year following the Plan Year in which the first installment is paid, and comprised of—
(A)    a cash payment equal to one-half of the amount credited to the Participant’s DC SERP Account as of such payment date; and
(B)    a number of shares of Company Stock equal to one-half of the number of the Participant’s Restricted Stock Units as of such payment date (rounded down to the nearest whole number with the any remaining fractional Restricted Stock Unit converted to, and distributed as, cash); and
(3)    the third installment occurring in January of the Plan Year following the Plan Year in which the second installment is paid, and comprised of –

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(A)    a cash payment equal to the balance remaining in the Participant’s DC SERP Account as of such payment date; and
(B)    a number of shares of Company Stock equal to the remaining number of the Participant’s Restricted Stock Units as of such payment date (rounded down to the nearest whole number with the any remaining fractional Restricted Stock Unit converted to, and distributed as, cash).
During the installment distribution period described under this section 6.6(b), the Participant’s DC SERP Benefit will continue to be adjusted for gains and losses under section 6.3 until the entire benefit has been completely distributed. 
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Article 7. Participation Agreements
7.1 Social Security Bridge Benefit
(a)    Eligibility. An Employee shall be eligible to become a Participant with respect to the Social Security bridge benefit described in this section 7.1 if he or she—
(1)    is determined by the Committee to be among a select group of management or highly compensated employees; and
(2)    has entered into a Participation Agreement requiring his or her immediate retirement from the Company and its Affiliates in exchange for the Social Security bridge benefit described below.
An individual who has met the eligibility requirements described in sections 7.1(a)(1) and (2) shall become a Participant with respect to the Social Security bridge benefit as of the first day of the month next following the month in which he or she incurred a Separation from Service. Such Participant shall continue as an inactive Participant under this Article 7 until he or she has received a complete distribution of all benefits to which he or she is entitled under his or her individual Participation Agreement.
(b)    Amount. The Social Security bridge benefit payable pursuant to a Participation Agreement shall be a monthly payment equal to the amount specified in the Participant’s Participation Agreement (but not to exceed the estimated monthly benefit the Participant would be entitled to under the Social Security Act commencing at age 62).
(c)    Commencement. 
(1)    In General. Except as otherwise provided in section 7.1(c)(2), the monthly Social Security bridge benefit described in this section 7.1 shall commence on the first day of the month next following the month in which the Participant incurred a  Separation from Service.
(2)    Delayed Commencement for Key Employees. If the Participant is a Key Employee upon his or her Separation from Service, payment of the Social Security bridge benefit described in this section 7.1 shall commence as of the first day of the month next following the month in which the six-month anniversary of the Participant’s Separation from Service occurs. However, the first benefit payment will include the payments (with no adjustment for interest) the Participant would have received had his or her benefit commencement date been the date determined under section 7.1(c)(1).
(d)    Duration.  The payment of the monthly Social Security bridge benefit under this section 7.1 shall cease as of the first day of the month next following the earlier of—
(1)    the month in which the Participant attains age 62; or

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(2)    the month of the Participant’s death. 
7.2 Pension Enhancement.
(a)    Eligibility. An Employee shall be eligible to become a Participant with respect to the pension enhancement described in this section 7.2 if he or she—
(1)    has an accrued benefit under the Qualified Pension Plan or the Pension Plan for Inactive Participants;
(2)    would be entitled to an immediate normal or early retirement benefit under the Qualified Pension Plan or Pension Plan for Inactive Participants (as applicable) upon his or her Separation from Service;
(3)    is determined by the Committee to be among a select group of management or highly compensated employees; and
(4)    has entered into a Participation Agreement requiring his or her immediate retirement from the Company and its Affiliates in exchange for the pension enhancement described below. 
An individual who has met the eligibility requirements described in this section 7.2(a) shall become a Participant under this section 7.2 as of the first day of the month next following the month in which he or she incurred a Separation from Service. Such Participant shall continue as an inactive Participant under this Article 7 until he or she has received a complete distribution of all benefits provided for under his or her individual Participation Agreement.
(b)    Amount. 
(1)    Executive Benefit Participants. The pension enhancement payable under a Participation Agreement on behalf of a Participant who is also entitled to an Executive Benefit under Article 3 shall equal (A) minus the sum of (B), (C),  and (D) where:
(A)    is the Gross Executive SERP Benefit determined as of the Participant’s benefit commencement date under Article 3, but calculated—
(i)    assuming the Participant’s Years of Benefit Service are a stated number of years greater than his or her actual Years of Benefit Service (as specified in the individual Participation Agreement); and
(ii)    assuming the Participant’s age as of the date of his or her Separation from Service is a stated number of years older than his or her actual age (as specified in the individual Participation Agreement); 
(B)    is the Net Executive SERP Benefit actually payable to the Participant as of the benefit commencement date determined under Article 3  (and 

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calculated without regard to the additional Years of Benefit Service and years of age specified under section 7.2(b)(1)(A));

(C)    is the Gross Executive Restoration Benefit determined as of the Participant’s benefit commencement date under Article 3 (and calculated without regard to the additional Years of Benefit Service and years of age specified under section 7.2(b)(1)(A)); and
(D)    is the Participant’s Social Security Benefit (with such offset applied as of the later of the Participant’s benefit commencement date under Article 3 or the first day of the month next following the month in which the Participant reaches age 62).
(2)    DB Restoration Participants. The pension enhancement payable under a Participation Agreement on behalf of a Participant who is also entitled to a DB Restoration Benefit under Article 4 shall be calculated initially as a Single Life Annuity equal to (A) minus (B) where: 
(A)    is the monthly benefit to which the Participant would be entitled under Article 4 as of the first day of the month next following the month in which the Participant incurs a Separation from Service , but calculated—
(i)    assuming the Years of Benefit Service used in the calculation of the amount described in section 4.2(b)(1) are a stated number of years greater than his or her actual Years of Benefit Service (as specified in the individual Participation Agreement); and
(ii)    assuming the Participant’s age as of the date of his or her Separation from Service that is used in calculating the reductions under section 4.3(b) or 4.4(b) (as applicable) is a stated number of years older than his or her actual age (as specified in the individual Participation Agreement); and
(B)    is the monthly benefit actually payable to the Participant under Article 4 as of the first day of the month next following the month in which the Participant incurs a Separation from Service (and calculated without regard to the additional Years of Benefit Service and years of age specified under section 7.2(b)(2)(A)). 
(3)    Other Participants.  The pension enhancement payable under a Participation Agreement on behalf of a Participant who is not entitled to a benefit under Article 3 or Article 4 shall be calculated initially as a Single Life Annuity equal to (A) minus (B) where: 
(A)    is the monthly accrued benefit to which the Participant would be entitled under the Qualified Pension Plan or the Pension Plan for Inactive 

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Participants (as applicable) commencing as of the first day of the month next following the month in which the Participant incurs a Separation from Service, but calculated—

(i)    without regard to the compensation and benefit limits in effect under Code sections 401(a)(17) and 415;
(ii)    assuming the Participant’s Years of Benefit Service are a stated number of years greater than his or her actual Years of Benefit Service (as specified in the individual Participation Agreement); and
(iii)    assuming the Participant’s age as of the date of his or her Separation from Service is a stated number of years older than his or her actual age (as specified in the individual Participation Agreement); and
(B)    is the monthly benefit actually payable to the Participant under the Qualified Pension Plan or the Pension Plan for Inactive Participants (as applicable) as of the first day of the month next following the month in which the Participant incurs a Separation from Service (as limited by Code sections 401(a)(17) and 415 and calculated without regard to the additional Years of Benefit Service and years of age specified under section 7.2(b)(3)(A)).
(c)    Commencement. 
(1)    Executive Benefit Participants. The pension enhancement payable to a Participant who is also entitled to an Executive Benefit under Article 3 shall commence on the Participant’s benefit commencement date as determined under Article 3.
(2)    DB Restoration Participants.  The pension enhancement payable to a Participant who is also entitled to a DB Restoration Benefit under Article 4 shall commence on the Participant’s benefit commencement date as determined under Article 4. 
(3)    Other Participants. 
(A)    General Rule. Except as otherwise provided in section 7.2(c)(3)(B), the pension enhancement payable to a Participant who is not described in section 7.2(c)(1) or (2) shall commence on the first day of the month next following the month in which the Participant incurs a Separation from Service. 
(B)    Delayed Commencement for Key Employees. If a Participant described in this section 7.2(c)(3) is a Key Employee upon his or her Separation from Service, payment of the pension enhancement described in this section 7.2 shall commence as of the first day of the month next following the month

46

        

in which the six-month anniversary of the Participant’s Separation from Service occurs. However, the first benefit payment will include the payments (with no adjustment for interest) the Participant would have received had his or her benefit commencement date been the date determined under section 7.2(c)(3)(A).

(d)    Form of Payment.
(1)    Executive Benefit Participant. The pension enhancement payable to a Participant who is also entitled to an Executive Benefit under Article 3 shall be distributed to the Participant in the same form (and with the same Beneficiary) as his or her Net Executive SERP Benefit. (If this pension enhancement is distributed in a form other than a Joint and 75 Percent Survivor Annuity, the amount payable shall be the Actuarial Equivalent of such Joint and 75 Percent Survivor Annuity, as determined under section 3.6(b).)
(2)    DB Restoration Participant. The pension enhancement payable to a Participant who is also entitled to a DB Restoration Benefit under Article 4 shall be distributed to the Participant in the same form (and with the same Beneficiary, as applicable) as his or her DB Restoration Benefit. (If this pension enhancement is distributed in a form other than a Single Life Annuity, the amount payable shall be the Actuarial Equivalent of the Single Life Annuity calculated under section 7.2(b)(2) above.)
(3)    Other Participants. In lieu of the Single Life Annuity determined under section 7.2(b)(3), a Participant who is not described in section 7.2(d)(1) or (d)(2) may elect instead, at any time before his or her benefit commencement date and in a manner specified by the Committee, to receive his or her pension enhancement in any one of the following forms of payment (each of which shall be the Actuarial Equivalent of the Single Life Annuity):
(A)    Joint and 50 Percent Survivor Annuity;
(B)    Joint and 75 Percent Survivor Annuity;
(C)    Joint and 100 Percent Survivor Annuity;
(D)    Five-Year Certain and Life Annuity; or
(E)    10-Year Certain and Life Annuity.
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Article 8.Financing and Administration
8.1 Financing
(a)    General Creditors. The Plan constitutes a mere promise of the Company to make payments in accordance with the terms of the Plan. This Plan does not give any Participant or Beneficiary any interest, lien, or claim in or against any specific assets of the Company or any Affiliate. Each Participant and Beneficiary shall have only the rights of general, unsecured creditors of the Company and its Affiliates with respect to their rights under the Plan.
(b)    Allocation among Employers. The obligation to pay Plan benefits shall be the obligation of the Employers whose Employees are Participants entitled to such benefits. Except to the extent provided in section 8.1(c), each Employer shall provide the benefits described in the Plan to its Employees from its general assets. However, the Company may, in its sole discretion, allocate the total liability to pay benefits under the Plan among the Employers in such manner and amounts as it deems appropriate.
(c)    Alternative Funding. The Company may, but shall not be required to, establish a grantor trust as a funding source for its obligations under the Plan. If such a trust is established, it shall constitute an unfunded arrangement for purposes of the Plan, and the Plan shall continue to be an unfunded plan maintained for the purpose of providing deferred compensation to a select group of management or highly compensated employees under ERISA. With respect to any Participant, the assets of any such trust shall remain subject to the claims of the creditors of that Participant’s Employer in the event of the Employer’s bankruptcy or insolvency. However, to the extent that funds placed in a trust and allocable to the benefits payable under the Plan are sufficient, the trust assets may be used to pay benefits under the Plan. If such trust assets are not sufficient to pay all benefits due under the Plan, then the appropriate Employer shall have the obligation, and the Participant or Beneficiary who is due such benefits shall look to such Employer to provide such benefits.
8.2 The Committee 
The Plan shall be administered by the Committee which is made up of at least three, but no more than seven, members. Members are comprised of certain Sonoco Human Resource and Finance professionals as appointed by the Vice President, Human Resources. The Vice President, Human Resources has the authority to remove Committee members and appoint replacements. Any member of the Committee may resign by delivering his or her written resignation to the Vice President, Human Resources.
8.3 Manner of Action
A majority of the members of the Committee at the time in office shall constitute a quorum for the transaction of business. All resolutions adopted, and other actions taken by the Committee at any meeting shall be by the vote of a majority of those present at any such 

48

        

meeting. Upon obtaining the written consent of a majority of the members at the time in office, action of the Committee may be taken otherwise than at a meeting.

8.4 Committee’s Powers and Duties
The Committee shall have responsibility for the general administration of the Plan and for carrying out the Plan’s provisions. The Committee shall have such powers and duties as may be necessary to discharge its functions hereunder, including, but not limited to, the following:
(a)    To construe and interpret the Plan, to supply all omissions from, correct deficiencies in and resolve ambiguities in the language of the Plan, and to determine any question arising under the Plan or in connection with the administration or operation thereof;
(b)    To decide all questions of eligibility;
(c)    To determine the amount, manner, and time of payment of any benefits that may be payable to any person;
(d)    With the advice of an actuary, from time to time to adopt, for purposes of the Plan, such actuarial and other tables as it may deem necessary or appropriate for the operation of the Plan;
(e)    To obtain from individuals such information as shall be necessary for the proper administration of the Plan and, when appropriate, to furnish such information promptly to the persons entitled thereto;
(f)    To prepare and distribute, in such manner as the Company determines to be appropriate, information explaining the Plan;
(g)    To establish rules for the administration of the Plan;
(h)    To maintain the necessary records, as determined by the Company in its sole discretion, of the administration of the Plan;
(i)    To authorize all disbursements by the Employers pursuant to the Plan;
(j)    To prepare and file, or respond to any governmental forms or documents;
(k)    To designate Affiliates as Employers as described in section 9.5 (to the extent authorized by the Board);
(l)    To delegate to other individuals or entities from time to time the performance of any of its duties or responsibilities hereunder; 
(m)    To hire agents, accountants, actuaries, consultants and legal counsel to assist in operating and administering the Plan; and
(n)    To exercise such other powers as are not inconsistent with the intent and purposes of this Plan.

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8.5 Delegation of Powers and Duties
(a)    Subcommittees. The Committee may appoint one or more subcommittees and delegate such of its power and duties as it deems desirable to any such subcommittee, in which case every reference made herein to the Committee shall be deemed to include the subcommittees as to matters within their jurisdiction.
(b)    Specialists. The Committee may authorize one or more of their members or any agent to execute or deliver any instrument or instruments on their behalf, and may employ such counsel, auditors, and other specialists and such clerical, actuarial, and other services as they may require in carrying out the provisions of the Plan. 
8.6 Committee’s Decisions Conclusive
The Committee shall have the exclusive right and discretionary authority to interpret the terms and provisions of the Plan and to resolve all questions arising hereunder, including the right to resolve and remedy ambiguities, inconsistencies, or omissions in the Plan; provided, however, that the construction necessary for the Plan to conform to the Code and ERISA shall in all cases control. Benefits under this Plan shall be paid only if the Committee decides in its discretion that the applicant is entitled to them. Any and all disputes with respect to the Plan that may arise involving Participants, Beneficiaries or alternate payees shall be referred to the Committee and its decisions shall be final, conclusive, and binding. All findings of fact, interpretations, determinations, and decisions of the Committee in respect of any matter or question arising under the Plan shall be final, conclusive, and binding upon all persons, including, without limitation, Employees, Participants, Beneficiaries, alternate payees, and any and all other persons having, or claiming to have, any interest in or under the Plan. The decisions of the Committee shall be given the maximum possible deference allowed by law.
8.7 Compensation, Indemnity and Liability
Committee members shall serve without compensation for services hereunder. All expenses of the Committee shall be paid by the Employers. No member of the Committee shall be liable for any act or omission of any other member of the Committee, or for any act or omission on his or her own part, except with regard to his or her own willful misconduct. The Employers shall indemnify and hold harmless the Committee and each member thereof against any and all expenses and liabilities, including reasonable legal fees and expenses, arising out of his or her membership on the Committee, excepting only expenses and liabilities arising out of his or her own willful misconduct.
8.8 Notice of Address
Each person entitled to benefits from the Plan must file with the Committee or its agent, in writing, his or her post office address and each change of post office address. Any communication, statement, or notice addressed to such a person at his or her latest reported post office address will be binding for all purposes of the Plan, and neither the Committee nor the Company shall be obliged to search for or ascertain such person’s whereabouts.

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8.9 Data
All persons entitled to benefits from the Plan must furnish to the Company such documents, evidence, or information, including information concerning marital status, as the Company considers necessary or desirable for the purpose of administering the Plan.
8.10 Benefit Claims Procedures 
This section 8.10 shall be subject to, and shall apply to the extent required under, Department of Labor Regulations section 2560.503-1 (relating to the requirements of claims procedures). All decisions made under the procedures described in this section shall be final and there shall be no further right of appeal. 
(a)    No lawsuit may be initiated by any person before fully pursuing the procedures set forth in this Plan section, including the appeal permitted under section 8.10(d). The right of a Participant, Beneficiary, alternate payee, or any other person entitled to claim a benefit under the Plan shall be determined by the Committee; provided, however, that the Committee may delegate its responsibility to any person. All persons entitled to claim a benefit under the Plan shall be referred to as a “Claimant” for purpose of this section 8.10. The term “Claimant” shall also include, where appropriate to the context, any person authorized to represent the Claimant under procedures established by the Committee.
(1)    The Claimant may file a claim for benefits by written notice to the Committee.
(2)    Any such claim shall be filed with the Committee no later than 18 months after the date that a transaction occurred, or should have occurred, with respect to a Claimant’s benefits under the Plan. The Committee in its sole discretion shall determine whether this limitation period has been exceeded. 
(b)    If a claim for benefits is wholly or partially denied, the Committee shall, within a reasonable period of time, but no later than 90 days after receipt of the claim, notify the Claimant of the denial of benefits. In the case of a claim, if special circumstances justify extending the period up to an additional 90 days, the Claimant shall be given written notice of this extension within the initial 90-day period, and such notice shall set forth the special circumstances and the date on which a decision is expected. 
(c)    A notice of denial:
(1)    shall be written in a manner calculated to be understood by the Claimant; and
(2)    shall contain:
(A)    the specific reasons for denial of the claim;
(B)    specific reference to the Plan provisions on which the denial is based;

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(C)    a description of any additional material or information necessary for the Claimant to perfect the claim, along with an explanation as to why such material or information is necessary; and
(D)    an explanation of the Plan’s claim review procedures and the time limits applicable to such procedures, including a statement of the Claimant’s right to bring a civil action under ERISA section 502(a) following an adverse determination on review.
(d)    Within 60 days of the receipt by the Claimant of the written denial of his or her claim or, if the claim has not been granted, within a reasonable period of time (which shall not be less than the applicable time period specified in section 8.10(b)), the Claimant may file a written request with the Committee that it conduct a full review of the denial of the claim. In connection with the Claimant’s appeal, upon request, the Claimant may review and obtain copies of all documents, records and other information relevant to the Claimant’s claim for benefits, but not including any document, record or information that is subject to any attorney-client or work-product privilege or whose disclosure would violate the privacy rights or expectations of any person other than the Claimant. The Claimant may submit issues and comments in writing and may submit written comments, documents, records, and other information relating to the claim for benefits. All comments, documents, records, and other information submitted by the Claimant shall be taken into account in the appeal without regard to whether such information was submitted or considered in the initial benefit determination.
(e)    The Committee shall deliver to the Claimant a written decision on the claim promptly, but no later than 60 days after the receipt of the Claimant’s request for such review, unless special circumstances exist that justify extending this period up to an additional 60 days. If the period is extended, the Claimant shall be given written notice of this extension during the initial 60-day period and such notice shall set forth the special circumstances and the date a decision is expected. The decision on review of the denial of the claim shall:
(1)    be written in a manner calculated to be understood by the Claimant;
(2)    include specific reasons for the decision;
(3)    contain specific references to the Plan provisions on which the decision is based;
(4)    contain a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and other information relevant to the Claimant’s claim for benefits; and
(5)    contain a statement of the Claimant’s right to bring a civil action under ERISA section 502(a) following an adverse determination on review.
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Article 9.Amendment and Termination 
9.1 Amendments
The Company must necessarily and does hereby reserve the right to amend or modify the Plan at any time by action of the Executive Compensation Committee of the Board or by written action of the Vice President of Human Resources (but only with respect to an amendment that does not materially affect the plan’s eligibility provisions, benefit amounts, or costs). However, no amendment will be permitted which would have the effect of reducing or eliminating any benefits earned by a Participant (including both vested and nonvested benefits) under the Plan as of the later of the date on which the amendment is adopted or the date on which the amendment is effective. 
9.2 Termination and Liquidation of Plan
The Company, through action of the Executive Compensation Committee of the Board, reserves the right to terminate and liquidate the Plan, or any portions of the Plan, at any time, for any reason provided such action does not result in the assessment of additional tax and/or interest under Code section 409A. Any such action shall be taken by such committee in the form of a written Plan amendment executed by a duly authorized officer of the Company or a member of the Executive Compensation Committee of the Board. However, no action taken under this section 9.2 shall have the effect of decreasing the level of benefits which a Participant would be entitled to receive under the Plan if he or she incurred a Separation from Service with the Company and all Affiliates on the later of:
(a)    The date the resolution to terminate and discontinue the Plan is adopted, or
(b)    The date the resolution to terminate and discontinue the Plan is effective. 
If the Plan (or portion of the Plan) is terminated under this section 9.2, all Plan benefits affected by such termination that are earned as of the effective date of such termination shall be treated as fully vested and nonforfeitable and shall be distributed in a single sum as of any date (as determined by the Committee) that would not result in the assessment of additional tax and/or interest under Code section 409A. 
9.3 Successors
In case of the merger, consolidation, liquidation, dissolution or reorganization of an Employer, or the sale by an Employer of all or substantially all of its assets, provision may  be made by written agreement between the Company and any successor corporation acquiring or receiving a substantial part of the Employer’s assets, whereby the Plan shall be continued by the successor. If the Plan is to be continued by the successor, then effective as of the date of the reorganization or transfer, the successor corporation shall be substituted for the Employer under the Plan. To the extent applicable, such written agreement may also specify no later than the closing date of an asset purchase transaction, whether Employees covered by the transaction shall incur a Separation from Service. The substitution of a successor corporation for an Employer shall not in any way be considered a termination of the Plan.
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9.4 Prohibition on Changes Due to Code Section 409A
Notwithstanding the foregoing, the Plan may not be amended or terminated in any manner that would result in the assessment of additional taxes under Code section 409A, as determined by the Executive Compensation Committee of the Board in its sole discretion and in accordance with the advice of counsel. 
9.5 Employer Participation and Termination
The Board or, if authorized by the Board, the Committee may designate any Affiliate as an Employer under this Plan. The Affiliate shall become an Employer and a party to this Plan upon acceptance of such designation effective as of the date specified by the Board or Committee.
(a)    Conditions of Participation. By accepting such designation or continuing as a party to the Plan, each Employer acknowledges that:
(1)    It is bound by such terms and conditions relating to the Plan as the Company or the Committee may reasonably require;
(2)    It has authorized the Company and the Committee to act on its behalf with respect to Employer matters pertaining to the Plan; and
(3)    It shall cooperate fully with the Plan officials and their agents by providing such information and taking such other actions, as they deem appropriate for the efficient administration of the Plan.
(b)    Withdrawal by Affiliate. Subject to the concurrence of the Board or Committee, any Affiliate may withdraw from the Plan, and end its status as an Employer hereunder, by communicating in writing to the Committee its desire to withdraw. The withdrawal shall be effective as of the date agreed to by Board or Committee, as the case may be, and the Affiliate. Upon such withdrawal, the Plan shall not be terminated with respect to such Affiliate until all Plan benefits have been distributed to Participants affected by such termination in accordance with other provisions of this Plan.
(c)    Termination by Company. The Company, acting through the Board or, if authorized by the Board, the Committee, reserves the right, in its sole discretion and at any time, to terminate the participation in this Plan of any Employer. Such termination shall be effective immediately upon the notice of such termination from the Company or such later effective date agreed to by the Company. Upon such termination, this Plan shall not be terminated with respect to such Affiliate until all Plan benefits have been distributed to Participants affected by such termination in accordance with other provisions of this Plan.
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Article 10. Miscellaneous Provisions
10.1 Taxation
It is the intention of the Company that the benefits payable hereunder shall not be taxable for federal income tax purposes to Participants or Beneficiaries until such benefits are paid by the Employers to such Participants or Beneficiaries. Without limiting the foregoing, it is intended that Participants will not be subject to the additional tax under Code section 409A and the Committee shall use its reasonable best efforts to interpret and administer the Plan so as to avoid this additional tax. When benefits are paid hereunder, it is the intention of the Company that they shall be deductible by the Employers under Code section 162.
10.2 Withholding on Distributions
All distributions shall be net of any applicable federal, state, or local income or employment taxes or any other amounts required to be withheld by law. In addition, the Company or any Affiliate may withhold from a Participant’s currently payable salary, bonus, or other compensation any applicable federal, state, or local income or employment taxes that may be due upon accruing benefits under the Plan.  
10.3 Benefit Cash-out
(a)    Cash-Out of Retirement Benefits.
(1)    If the Actuarial Equivalent lump sum value of the benefits payable to a Participant under Article 3, Article 4, Article 7, and all other “nonaccount balance plans” of the Company and its  Affiliates does not exceed the limit in effect under Code section 402(g)(1)(B), the Committee may, in its sole discretion, distribute all such benefits under Article 3, Article 4, and Article 7 to the Participant in a single lump sum payment if all of the Participant’s other nonaccount balance plan benefits are also paid in a single lump sum payment as of the same date. To the extent that a distribution is being made under this section 10.3(a)(1) on account of a Participant’s Separation from Service (for reasons other than the Participant’s death), and such Participant is a Key Employee upon his or her Separation from Service, the single lump sum payment described in this section 10.3(a)(1) shall not be paid before the end of the six-month period following the Participant’s Separation from Service.
(2)    If the benefits payable to a Participant under Article 5, Article 6, and all other “account balance plans” of the Company and its Affiliates do not exceed the limit in effect under Code section 402(g)(1)(B), the Committee may, in its sole discretion, distribute all such benefits under Article 5 and Article 6 to the Participant in a single lump sum payment if all of the Participant’s other account balance plan benefits are also paid in a single lump sum payment as of the same date. To the extent that a distribution is being made under this section 10.3(a)(2) on account of a Participant’s Separation from Service (for reasons other than the Participant’s death), and such Participant is a Key Employee upon his or her 

55

        

Separation from Service, the single lump sum payment described in this section 10.3(a)(2) shall not be paid before the end of the six-month period following the Participant’s Separation from Service.

(b)    Cash-Out of Pre-Retirement Death Benefits. If the Actuarial Equivalent lump sum value of all preretirement death benefits that become payable to a Participant’s surviving spouse under Article 3, Article 4, and all other “nonaccount balance plans” of the Company and all Affiliates does not exceed the limit in effect under Code section 402(g)(1)(B), the Committee may, in its sole discretion, distribute to the surviving spouse in a single lump sum payment all preretirement death benefits to which he or she is entitled to under Article 3 and Article 4 if all of such surviving spouse’s other nonaccount balance plan benefits are also paid in a single lump sum payment as of the same date.
(c)    Definitions.
(1)    For purposes of this section 10.3, a “nonaccount balance plan” is a plan that meets the requirements of Treasury Regulation section 1.409A-1(c)(2)(i)(C) and which must be aggregated with this Plan under this regulation.
(2)    For purposes of this section 10.3, an “account balance plan” is a plan that meets the requirements of Treasury Regulation section 1.409A-1(c)(2)(i)(A) and which must be aggregated with this Plan under this regulation.
10.4 Permissible Delays or Accelerations
If the Committee determines, in its sole and absolute discretion, that it would be advisable to delay or accelerate the payment of a Participant’s Plan benefits (e.g., a delay to comply with Code section 162(m) or an acceleration to pay employment taxes), the Committee may (again in its sole and absolute discretion) either delay or accelerate the payment of a Participant’s Plan benefit in accordance with Code section 409A. 
10.5 No Enlargement of Employment Rights
This Plan is strictly a voluntary undertaking on the part of the Company and the Employers and shall not be deemed to constitute a contract between the Employers and any Employee or Participant, Beneficiary, or alternate payee, or to be consideration for, or an inducement to, or a condition of, the employment of any Employee. Nothing contained in this Plan or any modification of the same or act done in pursuance hereof shall be construed as giving any person any legal or equitable right against the Company or an Affiliate, unless specifically provided herein, or as giving any person a right to be retained in the employ of the Company or an Affiliate. All Participants shall remain subject to assignment, reassignment, promotion, transfer, layoff, reduction, suspension, and discharge to the same extent as if this Plan had never been established. 
10.6 Non-Alienation
(a)    Except as otherwise permitted by the Plan, no benefit payable at any time under the Plan shall be subject to the debts or liabilities of a Participant or his or her Beneficiary. 

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Any attempt to alienate, sell, transfer, assign, pledge, or otherwise encumber any such benefit, whether presently or thereafter payable, shall be void. Except as provided in section 10.6(b), no benefit under the Plan shall be subject in any manner to attachment, garnishment, or encumbrance of any kind.
 
(b)    Payment may be made from a Participant’s Plan benefits to an alternate payee pursuant to a domestic relations order.
(1)    The Committee shall establish reasonable written procedures for reviewing court orders pursuant to state domestic relations law (including a community property law), relating to child support, alimony payments, or marital property rights of a spouse, former spouse, child, or other dependent of a Participant and for notifying Participants and alternate payees of the receipt of such orders and of the Plan’s procedures for determining if the orders are domestic relations orders and for administering distributions under domestic relations orders.
(2)    Except as may otherwise be required by applicable law, such domestic relations orders may not require a retroactive transfer of all or part of a Participant’s Plan benefits. 
10.7 Code Section 409A Aggregation Rules
The Company has the authority to provide to any individual or individuals selected by the Company or Committee benefits under the Plan or under a separate agreement, method, program or other arrangement. To the extent that any such separate agreement, method or arrangement constitutes an “account balance plan” (as defined in section 10.3(c)(2)), it shall be aggregated with the benefits provided under Articles 5 and 6 to the extent required by Code section 409A. To the extent that any such separate agreement, method or arrangement constitutes a “nonaccount balance plan” (as defined in section 10.3(c)(1)), it shall be aggregated with the benefits provided under Articles 3, 4, and 7 to the extent required by Code section 409A.
10.8 No Examination or Accounting
Neither this Plan nor any action taken thereunder shall be construed as giving any person the right to an accounting or to examine the books or affairs of the Company or any Affiliate.
10.9 Incompetency
Every person receiving or claiming benefits under the Plan shall be conclusively presumed to be mentally competent and of age until the date on which the Committee receives a written notice, in a form and manner acceptable to the Committee, that such person is incompetent or a minor, for whom a guardian or other person legally vested with the care of his or her person or estate has been appointed. However, if the Committee finds that any person to whom a benefit is payable under the Plan is unable to care for his or her affairs because of incompetency, or is a minor, any payment due (unless a prior claim therefore shall have been made by a duly appointed legal representative) may be paid instead to the guardian of such person or to the person having custody of such person, without further liability on the part of 

57

        

an Employer for the amount of such payment to the person on whose account such payment is made.

10.10 Records Conclusive
The records of the Company, Employer and the Committee shall be conclusive in respect to all matters involved in the administration of the Plan. 
10.11 Service of Legal Process
The members of the Committee and the Secretary of the Company are hereby designated agents of the Plan for the purpose of receiving service of summons, subpoena, or other legal process.
10.12 Qualified Military Service
Notwithstanding any provision of this Plan to the contrary, benefits and service credits with respect to qualified military service shall be provided in accordance with Code section 414(u).
10.13 Counterparts
This Plan may be executed in any number of counterparts, each of which shall be deemed to be an original. All the counterparts shall constitute but one and the same instrument and may be sufficiently evidenced by any one counterpart.
10.14 Forfeiture
Notwithstanding any provision in this Plan to the contrary, a Participant will forfeit his or her Net Executive SERP Benefit under Article 3 (including all survivor benefits) and DC SERP Benefit under Article 6 (including all survivor benefits), as applicable, if within three years of his or her Separation from Service, such Participant—

(a)    enters into any activity which competes with any business conducted by the Company or an Affiliate in any geographic area where the Company or an Affiliate has established a place of business, unless the Participant receives the Committee’s prior written consent;
(b)    interferes with the relations between the Company or an Affiliate and any customer; or
(c)    engages in any activity which can reasonably be expected to result in any decrease of or loss in profits by the Company or an Affiliate.

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***************************************
In Witness Whereof, the authorized officers of the Company have signed this document and have affixed the corporate seal on February 16, 2022, but effective as of January 1, 2022.

    Sonoco Products Company

    By  /s/John Florence                   

John Florence, Vice President, General Counsel, Human Resources and Secretary

Attest

By          /s/Julie Albrecht                          
              Julie Albrecht, Vice President
              and Chief Financial Officer

    (CORPORATE SEAL)
59

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