Document:

EX-10.3

Exhibit 10.3

Since 1897

December 19, 2008

Mr. Richard K. Smucker

The J.M. Smucker Company

Strawberry Lane

Orrville, OH 44667-0280

Dear Richard:

     The purpose of this letter agreement, together with the identical agreement that your brother
is signing separately, is to preserve the value of your family’s historical involvement in the
business and affairs of the Company in the event of your Separation from Service. Accordingly,
this Agreement evidences your commitment to maintain your public representations of the Company for
at least three years after Separation from Service, in consideration for the compensation described
below, subject to the terms and conditions set forth in this Agreement. This letter agreement is a
complete amendment and restatement, effective as of January 1, 2005, of the letter agreement
between you and the Company dated May 1, 2002, and brings that agreement into compliance with the
provisions of Internal Revenue Code Section (“IRC §”) 409A. Terms not defined herein will have the
definitions set forth in Appendix I attached hereto and incorporated herein.

     1. General. If you Separate from Service with the Company under any circumstances
other than those described in Section 3, so long as you comply with Section 2, you will be entitled
to receive the following compensation during the Service Period.

     (a) Salary. Your salary will continue at the rate in effect on the date of your
Separation from Service, payable at the same times and in the same amounts as if you had not
Separated from Service, but in all events within two and one-half months after the end of
the calendar year in which the right to the salary vests.

     (b) Bonus. Each time the Company pays annual bonuses to its executives during the
Service Period, you will receive a lump sum payment equal to one-half of the annual target
award most recently approved for you by the Executive Compensation Committee under the
Company’s Management Incentive Plan, payable in all events within two and one-half months
after the end of the calendar year in which the right to the bonus vests.

     (c) Options and Restricted Shares. All stock options you hold under any equity
incentive plan of the Company will immediately vest and all restricted shares you hold under
any equity incentive plan of the Company will continue to vest during the Service Period
pursuant to the vesting schedule set forth in the agreements governing the restricted shares.

The J. M. Smucker Company • Strawberry Lane • Orrville, Ohio 44667

Telephone (330) 682-3000 • Fax (330) 684-3370 • www.smuckers.com

 

 

     (d) Benefits. You and your eligible dependents will be entitled to receive those
benefits and perquisites under all welfare benefit plans of the Company, including, without
limitation, medical insurance and life insurance, but excluding stock options, restricted
            shares or other equity-based benefits, for which substantially all of the executives of the
Company are from time to time generally eligible, as determined from time to time by the
Executive Compensation Committee (the “Standard Executive Benefits Package”).

     2. Public Representation. During the Service Period, you will continue to represent
the Company publicly in accordance with the wishes of the Board of Directors, and you will take
such other actions as the Board or its designee may reasonably request in order to ensure the
continued identification of your family and its values with the Smucker’s brand. Without limiting
the generality of the foregoing, during the Service Period you will:

     (a) attend the Annual Meeting,

     (b) participate in employee events,

     (c) appear at promotional events,

     (d) authorize the exclusive use of your name, persona and likeness throughout the
Service Period, and thereafter, insofar as your name, persona or likeness is embodied in
publicity, advertising or other marketing materials used by the Company at any time before
the end of the Service Period,

     (e) participate in high-level meetings with customers and prospective customers of the
Company, and

     (f) represent the Company to its other constituents and the communities in which the
Company operates, as appropriate.

     3. Certain Terminations. If your employment terminates because of your death,
Disability or Retirement (as defined in Section 3(c)), or if you have an Involuntary Separation
from Service (as defined in Section 3(d)), your compensation will be governed by this Section 3.

     (a) Disability. If your employment terminates on account of your having become
Disabled , (i) you will be entitled to receive the benefits you would have received during
the Service Period as described in Sections 1(a), (b) and (d) for a period of three years
beginning, because you are a Specified Employee, six months after the date on which you
Separate from Service due to Disability, (ii) all stock options and restricted shares
granted to you under any equity incentive plan of the Company will immediately vest, (iii)
you will commence receiving your Monthly Retirement Benefit (as defined in the Company’s Top
Management Supplemental Retirement Benefit Plan (May 1, 1999 Restatement) (the “SERP”))
under the SERP as of the third anniversary of your Disability, and the Monthly Retirement
Benefit will be calculated without regard to the early retirement reduction factors
described in Section 2.2 of the SERP, regardless of whether you have reached your Normal
Retirement Date (as defined in the SERP), (iv) you will be entitled to receive within two
and one-half months of the date on which you

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Separate from Service due to Disability any salary which has accrued but is unpaid and
any reimbursable expenses which have been incurred but are unpaid, and (v) you will be
entitled to any option rights, restricted stock or other equity awards or plan benefits
which by their terms extend beyond termination of your employment (but only to the extent
provided in any option previously granted to you or any other benefit plan in which you
participated as an employee of the Company).

     (b) Death. If your employment terminates on account of your death, your beneficiaries,
your dependents or your estate, as the case may be, will be entitled to receive the benefits
described in Sections 3(a)(i) through 3(a)(v), except that the payments in Sections 3(a)(i)
and (ii) will begin within 90 days of the date of your death.

     (c) Retirement. If you voluntarily Separate from Service other than for Good Cause
under circumstances where you are entitled, subject to the six-month delay for Specified
Employees to commence receiving your Monthly Retirement Benefit under the SERP
(“Retirement”), (i) the Company will pay you, within two and one-half months after the date
of Retirement, any salary which has accrued but is unpaid and will reimburse you for any
reimbursable expenses which have been incurred but are unpaid, (ii) you will be entitled to
any option rights, restricted stock or other equity awards or plan benefits which by their
terms extend beyond termination of employment (but only to the extent provided in any option
granted to you or any other benefit plan in which you participated as an employee of the
Company) and (iii) you will be entitled to receive any benefits to which you are entitled
pursuant to the requirements of Part 6 of Subtitle B of Title I of the Employee Retirement
Income Security Act of 1974, as amended.

     (d) Involuntary Separation from Service. If you have an Involuntary Separation from
Service, either because the Company terminates your employment under circumstances that
constitute a Separation from Service other than for Disability or for Cause or because you
Separate from Service for Good Reason (“Involuntary Separation from Service”), you will be
entitled to receive the benefits described in Sections 3(a)(i) through 3(a)(v).

Notwithstanding the foregoing, in no event will you be deemed to have been terminated for
“Cause” unless prior to your termination the Company has delivered to you a copy of a
resolution duly adopted by the affirmative vote of not less than two-thirds of the directors
then in office at a meeting of the Board called and held for such purpose, after reasonable
notice to you and an opportunity for you, together with your counsel (if you choose to have
counsel present at such meeting), to be heard before the Board, finding that, in the good
faith opinion of the Board, you committed an act constituting “Cause” and specifying the
particulars of such act in detail. While such a determination will be a condition precedent
for the existence of “Cause” for purposes of this Agreement, such a determination will not
be determinative or create a presumption that “Cause” in fact exists, and nothing in this
Agreement will limit your right or the right of your beneficiaries to contest the validity
or propriety of any such determination.

     (e) Involuntary Separation from Service for Good Reason. If you Separate from Service
for Good Reason by means of advance written notice to the Company at

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least 90 days prior to the effective date of such termination identifying such
termination as a termination for Good Reason and identifying the Good Reason and the Company
fails to remedy the condition constituting the Good Reason within 30 days of the receipt of
such notice, you will be entitled to receive the benefits described in Sections 3(a)(i)
through 3(a)(v).

     (f) Termination by the Company for Cause. If the Company terminates your employment
and you Separate from Service for Cause, you will receive no payments or benefits under this
Agreement, and you will be entitled only to receive those payments and benefits to which you
would otherwise be entitled under the other plans of the Company as described in Sections
3(c)(i) through 3(c)(iii).

     (g) Interest on Unpaid Amounts. If the Company fails to make any payment or provide
any benefit required to be made or provided under this Agreement on a timely basis, the
Company will pay interest on the amount or value thereof at an annualized rate of interest
equal to the so-called composite “prime rate” as quoted from time to time during the
relevant period in the Midwest Edition of The Wall Street Journal. This interest will be
payable as it accrues on demand. Any change in the prime rate will be effective on and as
of the date of such change.

     (h) No Mitigation. You will not be required to mitigate the amount of any payment or
benefit provided for in this Agreement by seeking other employment or otherwise. It is
expressly understood that Company’s payment obligations under this Agreement will cease in
the event you breach any of your obligations under Sections 4 or 5.

     4. Confidentiality. You acknowledge that the information, observations and data
obtained by you while employed by the Company and during the continuance of the Service Period
pursuant to this Agreement, as well as those obtained by you while employed by the Company or any
of its subsidiaries or affiliates or any predecessor prior to the date of this Agreement,
concerning the business or affairs of the Company or any of its subsidiaries or affiliates or any
predecessor (unless and except to the extent the foregoing become generally known to and available
for use by the public other than as a result of your acts or omissions to act, “Confidential
Information”) are the property of the Company or such subsidiary or affiliate. Therefore, you
agree that, during your employment with the Company and after your Separation from Service, you
will not disclose any Confidential Information without the prior written consent of the Board
unless and except to the extent that such disclosure is (a) made in the ordinary course of your
performance of your duties under this Agreement or (b) required by any subpoena or other legal
process (in which event you will give the Company prompt notice of such subpoena or other legal
process in order to permit the Company to seek appropriate protective orders), and that you will
not use any Confidential Information for your own account or any other person or entity’s benefit
without the prior written consent of the Board. You will deliver to the Company at the termination
of the later of (i) your Separation from Service or (ii) the Service Period, or at any other time
the Company may reasonable request, all memoranda, notes, plans, records, reports, computer tapes
and software and other documents and data (and copies thereof) relating to the Confidential
Information, or to the work product or the business of the Company or any of its subsidiaries or
affiliates which you may then possess or have under

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your control. Nothing in this Section 4 will be deemed to limit or otherwise affect your
confidentiality or other similar covenant or obligations imposed on you under any agreement with,
or plan or arrangement of, the Company.

     5. Noncompetition, Nonsolicitation.

     (a) You acknowledge that, in the course of your employment with the Company and during
the continuance of the Service Period: (i) you will become familiar, and during the course
of your employment by the Company or any of its subsidiaries or affiliates or any
predecessor prior to the date of this Agreement, you have become familiar, with trade
secrets and customer lists of and proprietary information regarding the business of the
Company and its subsidiaries and affiliates and predecessors; (ii) such trade secrets and
customer lists of and proprietary information regarding the business of the Company and its
subsidiaries and affiliates and predecessors are confidential and the exclusive property of
the Company; and (iii) your services have been and will be of special, unique and
extraordinary value to the Company. You agree that you will not disclose, divulge, discuss,
copy or otherwise use or cause to be used in any manner in competition with, or contrary to
the interests of, the Company, the trade secrets and customer lists of and proprietary
information regarding the business of the Company and its subsidiaries and affiliates and
predecessors.

     (b) You agree that, during your employment with the Company and until the later of: (i)
three years after your Separation from Service with the Company or (ii) three years after
termination of the Service Period, you will not in any manner, directly or indirectly,
through any person, firm or corporation, alone or as a member of a partnership or as an
officer, director, shareholder, investor or employee of or in any other corporation or
enterprise or otherwise, engage or be engaged in, or assist any other person, firm,
corporation or enterprise in engaging or being engaged in, any business then actively being
conducted by the Company or any of its subsidiaries or affiliates or any business similar to
the businesses then conducted or contemplated to be conducted by the Company or any of its
subsidiaries or affiliates.

     (c) You further agree that, during your employment with the Company and until the later
of (i) three years after your Separation from Service with the Company or (ii) three years
after termination of the Service Period, you will not in any manner, directly or indirectly,
induce or attempt to induce any employee of the Company or of any of its subsidiaries or
affiliates to quit or abandon his or her employ.

     (d) Nothing in this Section 5 will prohibit you from being: (i) a shareholder in a
mutual fund or a diversified investment company or (ii) a passive owner of not more than 5%
of the outstanding equity securities of any class of a corporation or other entity which is
publicly traded, so long as you have no active participation in the business of such
corporation or other entity.

     (e) In the event you violate any legally enforceable provision of this Agreement as to
which there is a specific time period during which you are prohibited from taking certain
actions or from engaging in certain activities, as set forth in this

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Agreement, then, in such event, the violation shall toll the running of such time
period from the date of such violation until the violation ceases.

     (f) You acknowledge that you have carefully considered the nature and extent of the
restrictions on you and the rights and remedies conferred on the Company under this
Agreement. You further acknowledge and agree that the same are reasonable in time and
territory, are designed to eliminate competition which would otherwise be unfair to the
Company, do not stifle your inherent skill and experience, would not operate as a bar to
your sole means of support, are fully required to protect the legitimate interests of the
Company and do not confer a benefit upon the Company disproportionate to your detriment.

     (g) If, at the time of enforcement of this Section 5, a court holds that the
restrictions stated in this Section 5 are unreasonable under circumstances then existing,
you and the Company agree that the maximum period, scope or geographical area reasonable
under such circumstances will be substituted for the stated period, scope or area and that
the court will be allowed to revise the restrictions contained in this Section 5 to cover
the maximum period, scope and area permitted by law.

     (h) Nothing in this Section 5 will be deemed to limit or otherwise affect any
noncompetition or nonsolicitation or other similar covenant or obligations imposed on you
under any other agreement with, or plan or arrangement of, the Company.

     6. Enforcement. Because your services are unique and because you have access to
Confidential Information and work project, you agree that the Company would be damaged irreparably
in the event any of the provisions of Section 4 or 5 were not performed in accordance with their
specific terms or were otherwise breached and that money damages would be an inadequate remedy for
any such non-performance or breach. Therefore, the Company or its successors or assigns will be
entitled, in addition to other rights and remedies existing in their favor, to an injunction or
injunctions to prevent any non-performance, breach or threatened breach of any of such provisions
and to enforce such provisions specifically (without posting a bond or other security).

     7. Representations. You represent and warrant to the Company that (a) the execution,
delivery and performance of this Agreement by you does not and will not conflict with, breach,
violate or cause a default under any contract, agreement, instrument, order, judgment or decree to
which you are a party or by which you are bound, (b) you are not a party to or bound by any
employment agreement, noncompete agreement or confidentiality agreement any other person or entity
and (c) upon the execution and delivery of this Agreement by the Company, this Agreement will be
the valid and binding obligation of you, enforceable in accordance with its terms.

     8. Survival. Subject to any limits on applicability, Sections 4 and 5 will survive
and continue in full force in accordance with their terms, notwithstanding any Separation from
Service with the Company or the termination of the Service Period.

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     9. Notices. Any notice provided for in this Agreement must be in writing and must be
either personally delivered, sent by reputable overnight carrier or mailed by first class mail,
return receipt requested. Any notice to you will be delivered to the last home address on file
with the Company, and any notice to the Company should be delivered to:

The J.M. Smucker Company

Strawberry Lane

Orrville, OH 44667-0280

Attention: General Counsel

or such other address or to the attention of such other person as the recipient party has specified
by prior written notice to the sending party. Any notice under this Agreement will be deemed to
have been given when so delivered, sent or mailed.

     10. Severability. Whenever possible, each provision of this Agreement will be
interpreted in a manner as to be effective and valid under applicable law, but, if any provision of
this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable
law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Agreement will be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been
contained in this Agreement.

     11. Complete Agreement. This Agreement embodies the complete agreement and
understanding between the parties with respect to the subject matter in this Agreement and
effective as of its date supersedes and preempts any prior understandings, agreements or
representations by or between the parties, written or oral, which may have related to the subject
matter in this Agreement in any way.

     12. Counterparts. This Agreement may be executed in separate counterparts, each of
which will be deemed to be an original and both of which taken together will constitute one and the
same agreement.

     13. Successors and Assigns. This Agreement will bind and inure to the benefit of and
be enforceable by you, the Company and your or its respective heirs, executors, personal
representatives, successors and assigns, except that neither you nor the Company may assign any of
your or its rights or delegate any of your or its obligations under this Agreement without the
prior written consent of the other party. You consent to the assignment by the Company of all of
its rights and obligations in this Agreement to any successor to the Company by merger or
consolidation or purchase of all or substantially all of the Company’s assets, provided such
transferee or successor assumes the liabilities of the Company in this Agreement.

     14. Choice of Law. This Agreement will be governed by the internal law, and not the
laws of conflicts, of the State of Ohio.

     15. Amendment and Waiver. This Agreement may be amended only with the prior written
consent of the parties, and no course of conduct or failure or delay in enforcing the provisions of
this Agreement will affect the validity, binding effect or enforceability of this Agreement.

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     16. Prohibition on Participation. If under any provision of this Agreement you and
your dependents become entitled to receive the benefits provided under the Standard Executive
Benefits Package and you are not eligible to participate in any of the plans or programs set forth
in the Standard Executive Benefits Package, the Company will reimburse you, on a monthly basis, for
any premiums or other fees paid by you to obtain benefits (for you and your dependents) equivalent
to the Standard Executive Benefits Package.

     17. Right to Terminate Agreement Upon a Change in Control. Notwithstanding any
provision in this Agreement to the contrary, in the event of a Change in Control (as defined from
time to time in the Company’s 1998 Equity and Performance Incentive Plan, or any successor to that
plan), you will have the right to terminate this Agreement upon 30 days’ written notice to the
Company, and upon the Company’s receipt of such notice this Agreement will immediately become null
and void and have no further force or effect.

     18. Claims and Administration. The Claims and Administration procedures set out in
Appendix II attached hereto are incorporated herein by reference.

     19. No Distributions in Excess of IRC §162(m). Notwithstanding the above provisions,
no amount may be distributed pursuant to this Agreement if such amount would not be deductible to
the Company under IRC §162(m), as determined by the Board of Directors in its sole discretion, and
in accordance with Code §409A and the Treasury regulations promulgated thereunder.

     20. No Distributions in Violation of Securities Laws. Notwithstanding the above
provisions, a payment under the Plan may be delayed if the Company reasonably anticipates that the
making of such payment will violate Federal securities laws or other applicable law, in the
Company’s sole discretion, provided that the payment is made on the earliest at which the Company
reasonably anticipates that the making of the payment will not cause such violation.

     If you agree to the terms set forth above, please sign and date a copy of this Agreement below
and return it to the undersigned.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	THE J.M. SMUCKER COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Timothy P. Smucker
 

      Timothy P. Smucker
	 	 
	 

	 	Title:
	 	  Chairman of the Board and Co-CEO	 	 

	 	 	 	 	 
	Accepted and agreed to:
	 	 	 	 
	 
	 	 	 	 
	          /s/ Richard K. Smucker
 

Richard K. Smucker

	 	 
	 	Date: December 19, 2008

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Appendix I

     The following definitions will apply for purposes of the letter agreement between Richard
Smucker dated May 1, 2002, as amended and restated effective as of January 1, 2005:

     “Board of Directors” or “Board” means the Board of Directors of the Company.

     “Cause” means:

     (i) your willful and continued failure to perform your duties;

     (ii) gross negligence or willful misconduct by you with respect to the Company
or any of its subsidiaries or affiliates;

     (iii) your breach of any of the agreements in Section 4 or 5 prior to the end
of your employment with the Company; or

     (iv) your conviction of a felony or a crime involving moral turpitude.

     “Company” means The J.M. Smucker Company.

     “Disabled” or “Disability” means the first to occur of the following conditions:

	 	(a)	 	You are unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be expected to result in
death or can be expect to last for a continuous period of not less than 12 months, or
	 
	 	(b)	 	You are, by reason of any medically determinable physical or mental impairment
that can be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, receiving income replacement benefits for a period
of not less than 3 months under any plan covering employees of the Company, or
	 
	 	(c)	 	You have been determined to be totally disabled by the Social Security
Administration.

     “Good Reason” means:

     (v) any material diminution by the Board in your salary;

     (vi) the relocation of the Company’s principal executive offices or the
requirement by the Company that you change your principal place of employment to any
location that is in excess of 35 miles from your principal place of employment on
the date of this Agreement; or

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     (vii) any breach by the Company of this Agreement that is material and that is
not cured within 30 days after written notice to the Company from you.

     “Separation from Service” or “Separate(d) from Service” means a separation from service as
defined in IRC §409A, which IRC §409A is incorporated herein by reference, and includes, without
limitation, your separation from service with the Company, and related companies, if you die,
retire or otherwise have a termination of employment with the Company. However, for purposes of
this paragraph, the employment relationship is treated as continuing intact while you are on
military leave, sick leave, or other bona fide leave of absence if the period of such leave does
not exceed six months, or if longer, so long as you retain a right to reemployment with the Company
under an applicable statute or by contract. Notwithstanding the foregoing, where a leave of absence
is due to any medically determinable physical or mental impairment that can be expected to result
in death or can be expected to last for a continuous period of not less than six months, where such
impairment causes you to be unable to perform the duties of your position of employment or any
substantially similar position of employment, a 29-month period of absence may be substituted for
such six-month period.

     “Service Period” means the three-year period beginning on the date of your Separation from
Service and ending on its third anniversary date.

     “Specified Employee” refers to an individual defined in IRC §416(i) without regard to
paragraph (5) of that Section, as of the date of the individual’s Separation from Service
determined as provided in Treasury Regulation §1.409A-1(i).

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Appendix II

     (a) Plan Administrative Committee. The Executive Compensation Committee of the Board
of Directors, or its designee, will be the Plan Administrator under this Agreement.

     (b) Definitions. The following definitions apply for purposes of these Claims
Procedures:

     (i) “Adverse Benefit Determination” is any of the following: a denial,
reduction or termination of, or a failure to provide or make payment (in whole or in
part) for a benefit.

     (ii) “Claimant” is you or your beneficiary who files a claim under this
Agreement.

     (c) Filing Claims. A Claimant must file a written claim for benefits under the
Agreement with the Plan Administrator in accordance with the terms of the applicable Plan
and federal law. The written claim will be made on such form(s) as may be prescribed from
time to time by the Plan Administrator and will include such information as requested on the
claims form.

     (d) Claim Notifications.

     (i) Time for Providing Notification. The Plan Administrator will furnish
notice of its benefit determinations under the Agreement in accordance with the
following provisions. For purposes of determining the time periods specified below,
the period of time within which a benefit determination is required to be made will
begin at the time the claim is filed in accordance with the Agreement’s procedures,
without regard to whether all the information necessary to make a benefit
determination accompanies the filing. In the event a period of time to provide
notification is extended due to a Claimant’s failure to submit information necessary
to decide a claim, the period for making the benefit determination will be tolled
from the date on which the notification of the extension is sent to the Claimant
until the date on which the Claimant responds to the request for additional
information. A Claimant may also voluntarily agree to provide the Plan
Administrator additional time within which to make a decision on a claim beyond the
time limits specified below.

The Plan Administrator will notify the Claimant of its benefit determination within
a reasonable period of time, but not later than 90 days after receipt of the claim.
This period may be extended one time by the Plan Administrator for up to 90 days if
the Plan Administrator determines that the extension is necessary due to special
circumstances and notifies the Claimant, prior to the expiration of the initial
90-day period, of the circumstances requiring the extension of time and the date by
which the Plan Administrator expects to render a decision. This date will be not
later than 180 days after receipt of the claim.

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     (ii) Manner and Content of Notification of Benefit Determination. The Plan
Administrator will provide a Claimant with written or electronic notification of any
Adverse Benefit Determination. The notification will include the following:

     (A) The specific reason(s) for the Adverse Benefit Determination;

     (B) Reference to the specific Agreement provisions on which the
determination is based;

     (C) A description of any additional material or information necessary
for the Claimant to perfect the claim and an explanation of why such
material or information is necessary; and

     (D) A description of the Agreement’s review procedures in accordance
with the terms of this Agreement and the time limits applicable to such
procedures (including the address to which appeals should be mailed),
including a statement of the Claimant’s right to bring a civil action
following an Adverse Benefit Determination on review.

     (e) Appeal of Adverse Benefit Determination.

     (i) Review Procedures. If a Claimant is notified of an Adverse Benefit
Determination, the Claimant or his authorized representative may make a written
request for review of the determination by submitting such request to the Plan
Administrator within 60 days after notification of the Adverse Benefit
Determination.

A Claimant’s written request for review will be forwarded by the Plan Administrator
to the Board of Directors of the Company (other than you and other than the members
of the Executive Compensation Committee of the Company) for a full and fair review.
No individual will review a claim who reviewed the Claimant’s initial claim for
benefits, or who is a subordinate of such individual. The Claimant will be provided
the opportunity to submit written comments, documents, records and other information
relating to the claim for benefits. The Claimant will also be provided, upon
request and free of charge, reasonable access to, and copies of, all documents,
records, and other information relevant to the Claimant’s claim for benefits. The
Board of Directors will conduct its review without deference to the initial benefit
determination and taking into account all comments, documents, records and other
information submitted by the Claimant relating to the claim, without regard to
whether such information was submitted or considered in the initial benefit
determination.

     (ii) Timing of Notification of Benefit Determination on Review. The Plan
Administrator, or its delegatee, will notify a Claimant of the Plan’s benefit
determination on review as follows: For purposes of determining the time periods

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specified below, the period of time within which a benefit determination on
review is required to be made will begin at the time an appeal is filed in
accordance with the Agreement’s procedures, without regard to whether all the
information necessary to make a benefit determination on review accompanies the
filing.

The Plan Administrator will notify the Claimant of the Plan’s benefit determination on
review within a reasonable period of time, but not later than 60 days after receipt by the
Plan Administrator of the Claimant’s request for review of an Adverse Benefit Determination
or within 120 days if special circumstances require more time and the Plan Administrator, or
its delegatee, informs the Claimant within the initial 60 day period of the reason for the
delay and the date the Claimant can expect to receive notification of benefit determination
on review.

     (f) Authorized Representative. A Claimant is permitted to designate an authorized
representative to act on behalf of a Claimant with respect to a benefit claim or appeal of
an Adverse Benefit Determination. Designation of an authorized representative must be made
in writing on such form as the Plan Administrator will provide from time to time and must be
signed by the Claimant. If a Claimant designates an authorized representative to act on his
behalf as provided above, the Plan Administrator will direct all information and
notifications to which the Claimant is otherwise entitled to the authorized representative
with respect to the aspect of the claim for which the representative is designated (for
example, initial determination, request for documents, appeal, etc.), unless the Claimant
directs otherwise.

     (g) Record Retention. The Plan Administrator will maintain records and other relevant
documents adequate to demonstrate compliance with the Agreement’s Claims Procedures and
processes and to verify appropriately consistent decision-making with respect to initial
benefit determinations and review of Adverse Benefit Determinations.

13EX-10.4

Exhibit 10.4

THE J. M. SMUCKER COMPANY

VOLUNTARY DEFERRED COMPENSATION PLAN

(Amended and Restated Effective January 1, 2005)

     The J. M. Smucker Company Deferred Compensation Plan (hereinafter referred to as the “Plan”),
established effective as of May 1, 2003, by The J. M. Smucker Company, (hereinafter referred to as
the “Company”) and will be maintained by the Company for the purpose of providing benefits for
certain employees as provided herein. The Plan has been operated in good faith compliance with the
provisions of Code §409A and the Treasury regulations, and other guidance promulgated thereunder,
and the Company adopts this amendment and restatement, effective January 1, 2005, in order to
comply with Code § 409A and the regulations and other guidance promulgated thereunder.

ARTICLE I

ELIGIBILITY AND PARTICIPATION

     Section 1.1 Participants. The Company’s Board of Directors has identified
certain members of management who are highly compensated employees eligible to participate in the
Plan and has provided such individuals with written notice of eligibility (each a “Participant”).

     Section 1.2 Elections to Defer. The individuals described in Section 1.1
shall be eligible to participate in the Plan and may do so by filing a written election with the
Company in such form as approved by the Company. In the first year in which a Participant becomes
eligible

 

 

to participate in the Plan, in order to participate in the Plan, the newly eligible Participant
must make an election to defer compensation for services to be performed for the Company within 30
days after he or she becomes eligible. Subsequent elections to defer payment of compensation that
would otherwise be paid as annual base salary must be made before the beginning of the calendar
year for which the compensation is earned. Subsequent elections to defer payment of compensation
that would otherwise be paid as an annual bonus award must be made before the beginning of the
fiscal year (May 1) for which the bonus compensation is earned.

     Section 1.3 Participant Accounts. For each Participant, the Company shall
establish and maintain a separate deferred compensation account (the “Voluntary Deferral Account”).
The amount of each Participant’s compensation which is deferred pursuant to the deferral election
form shall be credited to the Voluntary Deferral Account as of the date such compensation otherwise
would be payable. Participants shall always be 100% percent vested in the balance in their
Voluntary Deferral Account and any earnings and losses on such amounts. In addition, for each
Participant who has a Grandfathered Benefit, as defined in this Section 1.3, the Company shall
determine the portion of the Participant’s Voluntary Deferral Account that is a Grandfathered
Benefit (as defined in this Section 1.3) (the “Grandfathered Portion”) which shall consist of all
amounts to which a Participant has a legally binding right to be paid and to which the right to be
paid was earned and vested prior to January 1, 2005, and any earnings or losses on such amounts
(the “Grandfathered Benefit”). Determination of the Grandfathered Benefit shall be made in
accordance with the provisions of Code § 409A and Treasury Regulation §1.409A-6(a)(3)(ii) and (iv).
No amount shall actually be set aside for payment under the Plan, and the Voluntary Deferral
Account shall be maintained for record keeping

2

 

purposes only. Any Participant to whom an amount is credited under the Plan shall be deemed a
general, unsecured creditor of the Company.

     Section 1.4 Elections to Defer Compansation. Any Participant may defer all or
any portion (up to the limits specified in Section 2.1 of this Plan) of his or her compensation
otherwise earned by him or her for the calendar year or fiscal year, as applicable, beginning after
the date of such election. Any amounts deferred shall be paid to the Participant only as provided
in this Plan. Any Participant may change the amount of, or suspend, future deferrals with respect
to compensation otherwise payable to him or her for calendar or fiscal years, as applicable,
beginning after the date of change or suspension. The election to defer shall be irrevocable as to
the deferred compensation for the period for which the election is made.

ARTICLE II

DEFERRED COMPENSATION

     Section 2.1 Deferred Compensation. Each Participant will have the right to
defer up to fifty percent (50%) of his/her respective annual base salary and up to one hundred
percent (100%) of his/her respective annual bonus award, and such amounts will be deemed
contributed to the Participant’s Voluntary Deferral Account. Annually, the Company will provide to
each Participant an election to defer form, either as a paper form or electronically, which must be
completed before: (i) December 31, in order to be effective for the subsequent calendar year’s
compensation that would otherwise have been paid as annual base salary, and (ii) April 30, in order
to be effective for the subsequent fiscal year’s compensation that would

3

 

otherwise have been paid as an annual bonus award.

     Section 2.2 Deemed Investment Earnings. All amounts credited under the terms
of the Plan to the Voluntary Deferral Account maintained in the name of a Participant by the
Company shall be credited with earnings or losses based upon the Participant’s deemed investments
made pursuant to an investment election form provided by the Company either as a paper form or
electronically. The investment vehicles available pursuant to this Plan are listed in Exhibit
A attached to the Plan. Such earnings or losses shall continue to be credited to the
Participant’s balance in the Voluntary Deferral Account until the entire amount credited to the
account has been distributed to the Participant or to the Participant’s beneficiary in accordance
with a beneficiary designation form delivered to the Company. The Company retains the right to
change the available investment vehicles at its sole discretion. Participants will have the right
to change deemed investment vehicles in accordance with administrative procedures adopted by the
Company by completing new investment elections in the paper or electronic form provided by the
Company.

ARTICLE III

DISTRIBUTION

     Section 3.1 Distribution of Grandfathered Benefit. Notwithstanding any
provisions of the Plan to the contrary, distribution of a Grandfathered Benefit shall be determined
in accordance with the provisions of the Plan in effect on December 31, 2004, and as provided on
Addendum I to the Plan.

4

 

     Section 3.2 Distribution of Nongrandfathered Benefit Upon Separation from
Service. Distribution of amounts deferred under the Plan other than a Grandfathered Benefit,
will commence: on the first anniversary of the date on which a Participant has a Separation from
Service with the Company and all other related employers of the Company (as determined under Code
§414) for any reason, (other than death, Total Disability, or Change in Control). The distributions
will be in ten annual installments, and shall reflect any gains or losses in the Participant’s
Voluntary Deferral Account in such manner as the Company shall determine. In the alternative, the
Participant may select one of the distribution alternatives set forth below:

     (a) lump sum payable within 60 days of Separation from Service due to retirement or
termination of employment; or

     (b) substantially equal annual installments for not less than two (2) and not greater than ten
(10) years. Distribution shall commence on the first anniversary of the date on which the
Participant has a Separation from Service. Subsequent installments, if any, will be made on each
anniversary date following the date of the first installment. The final installment will be the
balance of the Participant’s Voluntary Deferral Account.

Selection of an alternative form of distribution must be made prior to the calendar year or fiscal
year, as applicable, in which the compensation would be otherwise paid, as provided in Section 1.2
of the Plan. Subsequent changes to an election of an alternative form of distribution with respect
to a calendar year or fiscal year, as applicable, shall not be effective unless the election
satisfies the

5

 

following requirements:

     (a) A change of election will not be effective until at least twelve (12) months after the
date on which it is filed by the Participant with the Company.

     (b) A change of election with respect to a payment commencing on, or made on, a specified date
may not be filed with the Company less than twelve (12) months prior to such date.

     (c) A change of election with respect to a time of payment or a method of payment must provide
that the payment subject to the change be deferred for a period of not less than five (5) years
from the date such payment would otherwise have been made except in the event of a payment made on
account of the Participant’s death or Total Disability.

     Section 3.3 Distribution of Nongrandfathered Benefit in Event of Death, Total
Disability or Change in Control. Within 30 days following the date on which a Participant
Separates from Service as a result of death, Total Disability, or Change in Control, the Company
will distribute in a single lump sum the amount credited to the Participant’s Voluntary Deferral
Account in accordance with this Plan to the Participant, or in the event of death, to the
Participant’s Primary Beneficiary. If the Primary Beneficiary is no longer alive, then such
amounts shall be distributed to the Participant’s Secondary Beneficiary. If a Participant has not
designated a beneficiary, or if no designated beneficiary is living on the date of distribution,
then such amounts shall be distributed to such Participant’s spouse, or if deceased, or none, then
to the Participant’s children, per stirpes, or if none, then to the Participant’s estate in a lump
sum

6

 

distribution as soon as administratively feasible following such Participant’s death.

     Section 3.4 Distribution of Nongrandfathered Benefit When Distributions Have
Commenced. If a Participant should die before distribution of the full amount of the Voluntary
Deferral Account has been made to the Participant, any remaining amounts shall be distributed to
the Participant’s Primary Beneficiary by the same method as distributions were being made to the
Participant. If the Primary Beneficiary is no longer alive, then such amounts shall be distributed
to the Participant’s Secondary Beneficiary by the same method as distributions were being made to
the Participant. If a Participant has not designated a beneficiary, or if no designated
beneficiary is living on the date of distribution, then, such amounts shall be distributed to such
Participant’s spouse, or if deceased or none, then to the Participant’s children per stirpes, or if
none, then to the Participant’s estate, in a lump sum distribution as soon as administratively
feasible following such Participant’s death.

     Section 3.5 Distribution of Small Amounts. If, at any time following
termination of employment, the value of a Participant’s Voluntary Deferral Account is less than
$10,000, the Company may elect to distribute such account balance in a lump sum payment regardless
of the Participant’s election.

     Section 3.6 Distributions of Amounts in Excess of Code § 162(m).
Notwithstanding the above provisions, no amount may be distributed from the Plan if the Company
reasonably anticipates that such amount would not be deductible under Code §162(m), as determined
by the Board of Directors in its sole discretion, and in accordance with Code §409A and the

7

 

Treasury regulations promulgated thereunder.

     Section 3.7 Distributions of Amounts Deemed Includable in Gross Income.
Notwithstanding any provisions of the Plan to the contrary, if, at any time, a court or the
Internal Revenue Service determines that an amount in a Participant’s Voluntary Deferral Account is
includable in the gross income of the Participant and subject to tax, the Board of Directors of the
Company may, in its sole discretion, and in accordance with Code § 409A and the Treasury
regulations promulgated thereunder, permit a lump sum distribution of an amount equal to the amount
determined to be includable in the Participant’s gross income.

     Section 3.8 Distributions of Amounts in Violation of Securities Laws.
Notwithstanding any provisions of the Plan to the contrary, a payment under the Plan may be delayed
if the Company reasonably anticipates that the making of such payment will violate Federal
securities laws or other applicable law, in the Company’s sole discretion, and in accordance with
Code §409A and the Treasury regulations promulgated thereunder, provided that the payment is made
on the earliest at which the Company reasonably anticipates that the making of the payment will not
cause such violation.

     Section 3.9 Six-Month Delay of Distributions to Specified Employees. Under no
circumstances, other than death, will a Participant who is a Specified Employee, as of the date of
the Participant’s Separation from Service, receive a distribution under the Plan earlier than six
(6) months following such Participant’s Separation from Service.

8

 

ARTICLE IV

AMENDMENT AND TERMINATION OF PLAN

     The Company, through the action of the Board or a committee designated by the Board, reserves
the right to amend or terminate the Plan at any time. Any such termination shall be in writing and
shall be effective when made. The termination of the Plan shall be permitted only under the
circumstances provided and in accordance with Code §409A and the regulations promulgated
thereunder. Notification to Participants of any amendment or termination shall be in writing and
delivered by first class mail, addressed to each Participant at the Participant’s last known
address, or by other notice acknowledged in writing by the Participant. Any amounts credited to the
Voluntary Deferral Account of any Participant shall remain subject to the provisions of the Plan
and distribution will not be accelerated because of the termination of the Plan. No amendment or
termination shall directly or indirectly reduce the balance of any Voluntary Deferral Account
described in this Plan as of the effective date of such amendment or termination. Upon termination
of the Plan, distribution of amounts credited to a Participant’s Voluntary Deferral Account shall
only be made in accordance with the Plan and with Code §409A and the regulations promulgated
thereunder. No additional credits or contributions will be made to the Voluntary Deferral Accounts
of the Participants under the Plan after termination of the Plan, but Voluntary Deferral Accounts
of the Participants under the Plan will continue to fluctuate with investment gains and losses
until all benefits are distributed to the participants or to their beneficiaries. Upon termination
of the Plan, distribution of amounts credited to the Voluntary Deferral Accounts of the
Participants shall be made to the Participants or their beneficiaries in accordance with Article
III and Addendum I of this Plan.

9

 

ARTICLE V

CLAIMS PROCEDURE

     Section 5.1 Claims Reviewer. For purposes of handling claims with respect to
this Plan, the “Claims Reviewer” shall be the benefits committee, unless another person or
organizational unit is designated by the Company as Claims Reviewer.

     Section 5.2 Claims for Benefits. An initial claim for benefits under the Plan
must be made by the Participant or his or her beneficiary in accordance with the terms of the Plan
through which the benefits are provided. Not later than 90 days after receipt of such a claim, the
Claims Reviewer will render a written decision on the claim to the claimant, unless special
circumstances require the extension of such 90-day period. If such extension is necessary, the
Claims Reviewer shall provide the Participant or the Participant’s beneficiary with written
notification of such extension before the expiration of the initial 90-day period. Such notice
shall specify the reason or reasons for such extension and the date by which a final decision can
be expected.. In no event shall such extension exceed a period of 90 days from the end of the
initial 90-day period.

     In the event the Claims Reviewer denies the claim of a Participant or the beneficiary in whole
or in part, the Claims Reviewer’s written notification shall specify, in a manner calculated to be
understood by the claimant, the reason for the denial; a reference to the Plan or other document or
form that is the basis for the denial; a description of any additional material or information
necessary for the claimant to perfect the claim; an explanation as to why such information or
material is necessary; and an explanation of the

10

 

applicable claims procedure.

     Should the claim be denied in whole or in part and should the claimant be dissatisfied with
the Claims Reviewer’s disposition of the claimant’s claim, the claimant may have a full and fair
review of the claim by the Company (but not the same person who reviewed the initial claim, or
subordinate of such person) upon written request therefore submitted by the claimant or the
claimant’s duly authorized representative and received by the Company within 60 days after the
claimant receives written notification that the claimant’s claim has been denied In connection with
such review, the claimant or the claimant’s duly authorized representative shall be entitled to
review pertinent documents and submit the claimant’s views as to the issues, in writing. The
Company shall act to deny or accept the claim within 60 days after receipt of the claimant’s
written request for review unless special circumstances require the extension of such 60-day
period. If such extension is necessary, the Company shall provide the claimant with written
notification of such extension before the expiration of such initial 60-day period. In all events,
the Company shall act to deny or accept the claim within 120 days of the receipt of the claimant’s
written request for review. The action of the Company shall be in the form of a written notice to
the claimant and its contents shall include all of the requirements for action on the original
claim.

In no event may a claimant commence legal action for benefits the claimant believes are due to the
claimant until the claimant has exhausted all of the remedies and procedures afforded the claimant
by this Article V.

11

 

ARTICLE VI

ADMINISTRATION

     Section 6.1 Plan is Unfunded. The right of a Participant or the Participant’s
beneficiary to receive a distribution hereunder shall be an unsecured claim against the general
assets of the Company, and neither a Participant nor his or her designated beneficiary shall have
any rights in or against any amount credited to any Voluntary Deferral Accounts under this Plan or
any other assets of the Company. The Plan at all times shall be considered entirely unfunded both
for tax purposes and for purposes of Title I of the Employee Retirement Income Security Act of
1974, as amended. Any funds invested hereunder shall continue for all purposes to be part of the
general assets of the Company and available to its general creditors in the event of bankruptcy or
insolvency. Voluntary Deferral Accounts under this Plan and any benefits which may be payable
pursuant to this Plan are not subject in any manner to anticipation, sale, alienation, transfer,
assignment, pledge, encumbrance, attachment, or garnishment by creditors of a Participant or a
Participant’s beneficiary. The Plan constitutes a mere promise by the Company to make benefit
payments in the future. No interest or right to receive a benefit may be taken, either voluntarily
or involuntarily, for the satisfaction of the debts of, or other obligations or claims against,
such person or entity, including claims for alimony, support, separate maintenance and claims in
bankruptcy proceedings.

     Section 6.2 Plan Administration. The Plan shall be administered by the
benefits committee or such other committee as designated by the Board of Directors of the Company.
The committee administering the Plan shall have the authority, duty and power to interpret and
construe the provisions of the Plan and the duty and responsibility of maintaining records, making
the requisite

12

 

calculations and disbursing the payments hereunder The Board shall have the authority to determine
and identify participants eligible to participate in the Plan.

     Section 6.3 Expenses of Administration. Expenses of administration shall be
paid by the Company. The committee administering the Plan shall be entitled to rely on all tables,
valuations, certificates, opinions, data and reports furnished by any actuary, accountant,
controller, counsel or other person employed or retained by the Company with respect to the Plan.

     Section 6.4 Individual Participant Accounts. The committee administering the
Plan shall furnish individual annual statements of accrued benefits to each Participant, or current
beneficiary, in such form as determined by the Company or as required by law.

     Section 6.5 No Guaranty of Plan Benefits or of Employment. The sole rights of
a Participant or beneficiary under this Plan shall be to have this Plan administered according to
its provisions, to receive whatever benefits he or she may be entitled to hereunder, and nothing in
the Plan shall be interpreted as a guaranty that any funds in any trust which may be established in
connection with the Plan or assets of the Company will be sufficient to pay any benefit hereunder.
Further, the adoption and maintenance of this Plan shall not be construed as creating any contract
of employment between the Company and any Participant. The Plan shall not affect the right of the
Company to deal with any participants in employment respects, including their hiring, discharge,
compensation, and conditions of employment.

     Section 6.6 Incompetent Participant. The Company may from time to time
establish rules and

13

 

procedures which it determines to be necessary for the proper administration of the Plan and the
benefits payable to an individual in the event that individual is declared incompetent and a
conservator or other person legally charged with that individual’s care is appointed. Except as
otherwise provided herein, when the Company determines that such individual is unable to manage his
or her financial affairs, the Company may pay such individual’s benefits to such conservator,
person legally charged with such individual’s care, or institution then contributing toward or
providing for the care and maintenance of such individual. Any such payment shall constitute a
complete discharge of any liability of the Company and the Plan for such individual.

     Section 6.7 Lost Participants. Each Participant shall keep the Company
informed of his or her current address and the current address of his or her designated
beneficiary. The Company shall not be obligated to search for any person. If such person is not
located within three years after the date on which payment of the Participant’s benefits payable
under this Plan may first be made, payment may be made as though the Participant or his or her
beneficiary had died at the end of such three-year period.

     Section 6.8 No Liability. Notwithstanding any provision herein to the
contrary, neither the Company nor any individual acting as an employee or agent of the Company
shall be liable to any Participant, former Participant, designated beneficiary, or any other person
for any claim, loss, liability or expense incurred in connection with the Plan, including without
limitation, the investment performance of any deemed investments, unless attributable to fraud or
willful misconduct on the part of the Company or any such employee or agent of the Company.

     Section 6.9 Applicable Law. All questions pertaining to the construction,
validity and effect

14

 

of the Plan shall be determined in accordance with the laws of the United States, and to the extent
not preempted by such laws, by the laws of the State of Ohio.

     Section 6.10 Compliance with Code §409A. To the extent applicable, it is
intended that this Plan and any deferrals of compensation made hereunder comply with the provisions
of Code §409A. This Plan and any deferrals or compensation made hereunder shall be administrated
in a manner consistent with this intent, and any provisions that would cause this Plan or any grant
made hereunder to fail to satisfy Code §409A shall have no force and effect until amended to comply
with Code §409A (which amendment may be retroactive to the extent permitted by Code §409A and may
be made by the Company without the consent of Participants). Any reference in this Plan to Code
§409A will also include any proposed temporary or final regulations, or any other guidance,
promulgated with respect to Code §409A by the U.S. Department of the Treasury or the Internal
Revenue Service.

ARTICLE VII

DEFINITIONS

Whenever used in the Plan, the following words and phrases shall have the meanings set forth below
unless the context plainly requires a different meaning, and when a defined meaning is intended,
the term is capitalized in this document.

7.1 “Change of Control” means the definition of change of control provided in The J. M. Smucker
Company 2006 Equity Compensation Plan (the “2006 Plan”) provided that, for purposes of
distributions from the Plan (other than Grandfathered Benefits), such distribution shall only be
made on the basis of a

15

 

Change in Control to the extent that the event constitutes a “change in ownership or effective
control” of the Company or “in the ownership of a substantial portion of the assets” of the Company
(as determined under Code §409A, and Treasury regulation §1.409A-3(i)(5)).

7.2 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any
Regulations relating thereto.

7.3 “Company” means The J. M. Smucker Company and any of its subsidiaries or affiliated business
entities, as determined in accordance with the provisions contained in Code §414.

7.4 “Participant” means any employee described in Article I of this Plan.

7.5 “Plan” means The J. M. Smucker Company Voluntary Deferred Compensation Plan, as of May 1, 2003,
amended and restated effective January 1, 2005, and including any subsequent amendments thereto.

7.6 “Separation from Service” means a separation from service as defined in Code §409A, which Code
§409A is incorporated herein by reference, and includes, without limitation: An employee separates
from service with the Company, and any related employer (as determined under Code §414), if the
employee dies, retires, becomes Totally Disabled, or otherwise has a termination of employment with
the Company or any related employer (as determined under Code §414).

7.7 “Specified Employee” refers to an individual defined in Code §416(i) without regard to
paragraph (5) of that Section as of the date of the individual’s Separation from Service determined
as provided in

16

 

Treasury Regulation §1.409A-1(i).

7.8 “Totally Disabled” or “Total Disability” means the first to occur of the following conditions:

(a) The Participant is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be expected to result in death
or can be expect to last for a continuous period of not less than 12 months, or

(b) The Participant is, by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, receiving income replacement benefits for a
period of not less than 3 months under any plan covering employees of the Employer, or

(c) The Participant has been determined to be totally disabled by the Social Security
Administration.

The Company hereby adopts this Amendment and Restatement of the Plan, effective January 1, 2005.

	 	 	 	 	 	 	 	 	 
	 	 	THE J. M. SMUCKER COMPANY	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	          /s/ Richard K. Smucker	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	DATED:
	 	December 19, 2008	 	 	 	 

17

 

ADDENDUM I

PROVISIONS WITH RESPECT TO GRANDFATHERED BENEFITS

     Section 1.1 Grandfathered Benefits. A Participant’s Grandfathered Benefit,
as defined in Section 1.3 of the Plan, shall be determined in accordance with the provisions of
Code §409A and Treasury Regulation §1.409A-6(a)(3)(ii) and (iv). Notwithstanding any provision of
the Plan to the contrary, any Grandfathered Benefit under the Plan shall be subject to the
provisions of the Plan in effect on December 31, 2004, and as provided in this Addendum I.

     Section 1.2 Distributions Upon Retirement or Termination of Employment.
Distribution of a Grandfathered Benefit under the Plan will commence, on the first anniversary of
the date on which a Participant’s employment with the Company and all other related employers of
the Company (as determined under Code §414) terminates for any reason, (other than death,
disability (as defined in the 1998 Equity and Performance Incentive Plan), or change in control (as
defined in the 1998 Equity and Performance Incentive Plan)). The distributions will be in ten
annual installments, and shall reflect any gains or losses in the Grandfathered Portion of the
Participant’s Voluntary Deferral Account in such manner as the Company shall determine and which is
consistent with Treasury Regulation §1.409A-6(a)(3)(iv). In the alternative, the Participant may
select one of the alternative forms of distribution set forth below. Selection of an alternative
shall be made at the time the Participant first elects to participate in the Plan in accordance
with Section 1.2 of the Plan. Distribution elections as to a Grandfathered Benefit may be
subsequently changed provided that such new election is made at least 12 months prior to the date
that distributions under the Plan would commence.

 

 

The alternative forms of distribution are:

     (a) lump sum payable within 60 days of retirement or termination of employment; or

     (b) substantially equal annual installments for not less than two and not greater than ten
years. Distribution shall commence on the first anniversary of the date on which the Participant’s
employment with the Company and any other related employers of the Company (as determined under
Code §414) terminates. Subsequent installments, if any, will be made on each anniversary date
following the date of the first installment. The final installment will be the balance of the
Grandfathered Portion of the Participant’s Voluntary Deferral Account.

     Section 1.3 Distribution Upon Death, Disability or Change in Control. Within
30 days following the date on which a Participant’s employment with the Company and all other
related employers of the Company (as determined under Code §414) terminates as a result of death,
disability (as defined in Section 1.2 of this Addendum I), or change in control (as defined
in Section 1.2 of this Addendum I), the Company will distribute in a single lump sum the
amount constituting the Grandfathered Portion of the Participant’s Voluntary Deferral Account in
accordance with this Plan, to the Participant, or in the event of death, to the Participant’s
Primary Beneficiary. If the Primary Beneficiary is no longer alive, then such amounts shall be
distributed to the Participant’s Secondary Beneficiary. If a Participant has not designated a
beneficiary, or if no designated beneficiary is living on the date of distribution, then such
amounts shall be

 

 

distributed to such Participant’s spouse, or if deceased, or none, then to the Participant’s
children, per stirpes, or if none, then to the Participant’s estate in a lump sum distribution as
soon as administratively feasible following such Participant’s death.

     Section 1.4 Distribution Upon Death if Payments have Commenced. If a
Participant should die before distribution of the full amount of the Grandfathered Portion of the
Voluntary Deferral Account has been made to the Participant, any remaining amounts shall be
distributed to the Participant’s Primary Beneficiary by the same method as distributions were being
made to the Participant. If the Primary Beneficiary is no longer alive, then such amounts shall be
distributed to the Participant’s Secondary Beneficiary by the same method as distributions were
being made to the Participant. If a Participant has not designated a beneficiary, or if no
designated beneficiary is living on the date of distribution, then, such amounts shall be
distributed to such Participant’s spouse, or if deceased, or none, then to the Participant’s
children per stirpes, or if none, then to the Participant’s estate, in a lump sum distribution as
soon as administratively feasible following such Participant’s death.

     Section 1.5 Small Amount Distribution. If, at any time following termination
of employment, the value of a Participant’s Voluntary Deferral Account is less than $10,000, the
Company may elect to distribute such account balance in a lump sum payment regardless of the
Participant’s election.

     Section 1.6 Distributions Not Deductible Under Code § 162(m). Notwithstanding
the above provisions, no amount may be distributed from the Plan if the Company reasonably

 

 

anticipates that such amount would not be deductible under Code §162(m), as determined by the Board
of Directors in its sole discretion.

     Section 1.7 Distributions Subject to Tax. Notwithstanding the above
provisions, if, at any time, a court or the Internal Revenue Service determines that an amount in
the Grandfathered portion of a Participant’s Voluntary Deferral Account is includable in the gross
income of the Participant and subject to tax, the Board of Directors of the Company may, in its
sole discretion, permit a lump sum distribution of an amount equal to the amount determined to be
includable in the Participant’s gross income.

     Section 1.8 Distributions in Violation of Securities Laws. Notwithstanding
the above provisions, a payment under the Plan may be delayed if the Company reasonably anticipates
that the making of such payment will violate Federal securities laws or other applicable law, in
the Company’s sole discretion, provided that the payment is made on the earliest at which the
Company reasonably anticipates that the making of the payment will not cause such violation.

 

 

EXHIBIT A

TO

VOLUNTARY DEFERRED COMPENSATION PLAN

Deferred amounts may be tracked with investments in either (or a combination of):

1. Common shares of the Company; or

2. Funds of Fidelity Management and Research Company or any of its affiliates, which are available
as designated investments under the Company’s 401 (k) plan.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}]]