EXHIBIT INDEX
EXHIBIT NO.
IN ITEM 601
OF REGULATION S-K DESCRIPTION
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4.1 Articles of Incorporation (Incorporated by reference
to exhibits to the Company's Form 10-Q for the
quarter ended June 27, 1999)
4.2 Bylaws (Incorporated by reference to exhibits to the
Company's Form 10-Q for the quarter ended June 27,
1999)
4.3 Sonoco Savings Plan
5. Opinion of Haynsworth Sinkler Boyd, P.A.
15 Letter re: unaudited interim financial information
(incorporated by reference to exhibits to the
Company's Forms 10-Q for the quarters ended March 31,
2002 and June 30, 2002)
23.1 Consent of PricewaterhouseCoopers LLP
23.2 Consent of Haynsworth Sinkler Boyd, P.A. (included in
Exhibit 5).
24 Power of Attorney (included on signature page)
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EXHIBIT 4.3
SONOCO SAVINGS PLAN
Amended and Restated
Effective January 1, 2001
SONOCO SAVINGS PLAN
Introduction
Effective January 1, 1981, Sonoco Products Company (the "Company") adopted the
Sonoco Products Company Thrift-Savings and Deferred Pay Plan (the
"Thrift-Savings Plan"), a qualified profit sharing plan for its employees and
for employees of its affiliated companies that adopt the Plan (the "Employers").
The Company adopted the Plan to provide for after-tax contributions by employees
and for matching contributions by the Employers (35 percent of the first 6
percent of compensation deferred), in compliance with Section 401(a) of the
Internal Revenue Code (the Code). The Thrift-Savings Plan was amended to permit
employees to make before-tax contributions beginning January 1, 1983, in
compliance with Code Sections 401(a) and (k). The Thrift-Savings Plan stopped
accepting contributions as of December 31, 1989.
Effective January 1, 1983, the Company adopted the Sonoco Products Company
Employee Stock Ownership Plan, a qualified profit sharing and tax credit stock
ownership plan, to provide for contributions of Company Stock to employee
accounts in compliance with Code Sections 401(a) and (k) and 409 (the "Paysop").
The Company stopped making contributions to the Paysop in 1986. The Paysop was
amended and restated effective January 1, 1989 to reflect the transition from a
tax credit employee stock ownership plan under Code Section 409 to an employee
stock ownership plan under Code Section 4975(e)(7) and ERISA Section 407(d)(6)
(the "ESOP") designed to invest primarily in Company Stock.
Effective January 1, 1990, the Company merged the Thrift-Savings Plan into the
ESOP and amended, restated and renamed the merged Plan as the Sonoco Products
Company Employees Savings and Stock Ownership Plan (the "Plan"). The accounts of
employees of certain acquired companies (defined in Addendum A as Prior
Accounts) were merged into the restated Plan effective January 1, 1990. The
Continental Can Company, Inc. Retirement Thrift Plan (a/k/a the "Pittsburg,
California Plan") was merged into the Plan effective April 1, 1985 and its
assets were transferred into the Plan in June 1991 (see Addenda E and F).
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Effective January 1, 1994, the Plan was amended and restated to incorporate
amendments made since that date, and to comply with amendments made to the
Internal Revenue Code and the Employee Retirement Income Security Act by the Tax
Reform Act of 1986, the Omnibus Budget Reconciliation Act of 1986, the Technical
and Miscellaneous Revenue Act of 1988, the Unemployment Compensation Act of
1992, the Omnibus Budget Reconciliation Act of 1993, and Treasury Department
Regulations issued under those statutes. Certain amended provisions had
effective dates other than January 1, 1994, as stated within the various amended
sections of the Plan. As of September 16, 1994, the Plan instituted daily
valuations and investment elections, an interactive telephone system ("VRU"),
and liberalized the loan rules.
The Crellin, Inc. Investment Plan for Salaried Employees was merged into the
Plan effective December 31, 1994 (See Addendum G). Account balances of
Participants employed by Moldwood Products Company were transferred from the
Gulf States Paper Corporation Savings and Investment Plan into this Plan as of
March 1, 1996. (See Addendum H).
Effective January 1, 1997, eligible employees of Specialty Packaging Group, Inc.
became participants in the Plan. (See Addendum I). Effective October 1, 1997,
the Company merged the spun-off account balances for Hamilton Hybar, Inc.
employees from the Hamilton Hybar, Inc. 401(k) Profit Sharing Plan into the
Plan. (See Addendum J). Also, as of October 1, 1997, eligible employees of
Industrial Machine Company and Stonington Corporation became participants in the
Plan. (See Addenda K and L).
As of November 1, 1997, the vesting schedule was improved, the eligibility
period was shortened, the initial enrollment became automatic with a 2-percent
before-tax deferral unless the employee elects a different percentage or elects
not to contribute, daily enrollment and elections were permitted, investment
increments were reduced to 1 percent, and unlimited ESOP diversification rights
were granted at age 55.
Effective December 31, 1997, Sonoco formed a joint venture with Rock-Tenn
Company named RTS Packaging, LLC. As of this date, the Company agreed to
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transfer back to the Plan the assets and liabilities of any RTS Packaging
Employee who subsequently returns to Sonoco. (See Addendum M). As of July 1,
1998, the account balances of participants employed by Injecto Mold, Inc. were
transferred from the Injecto Mold, Inc. Employees Profit Sharing Plan and Trust
into the Plan. (See Addendum N).
Addendum O describes the provisions that relate to Flexible Packaging, Inc.
salaried and non-union hourly employees, effective as of January 1, 1999. As of
this date, the Company transferred assets for these employees from the Engraph,
Inc. Retirement Plus Plan into the Plan. As of April 1, 1999, eligible employees
of Southern Plug and Manufacturing, Inc. became participants in the Plan. (See
Addendum P.) Effective May 1, 1999, the accounts of Flexible Packaging, Inc.
union hourly employees were transferred from the Engraph, Inc. Retirement Plus
Plan and the Engraph Plan was merged into the Plan. (See Addendum Q.)
Account balances of certain former employees were transferred from the Crown,
Cork & Seal Company, Inc. 401(k) Retirement Savings Plan and the Crown, Cork &
Seal Company, Inc. Retirement Thrift Plan into the Plan as of August 19, 1999.
(See Addendum R.) As of November 1, 1999, the Company merged the spun-off
account balances for employees of Graphic Packaging, Inc. who were participating
in the ACX Technologies, Inc. Savings and Investment Plan into the Plan. (See
Addendum S.)
The Plan name was changed to the Sonoco Savings Plan, as of December 31, 1999.
Effective January 1, 2001, eligible employees of Paper Stock Dealers, Inc.
became participants in the Plan and their account balances from the Paper Stock
Dealers, Inc. 401(k) Profit Sharing Retirement Plan and Trust were merged into
the Plan. (See Addendum T.) Effective April 30, 2001, eligible employees of
Power Packaging, Inc. became participants in the Plan. (See Addendum U.)
The Plan has been operated in full compliance with all applicable laws in effect
from time to time and has not relied on good-faith compliance for any period.
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The ESOP component of the Plan is designed to invest primarily in Company Stock
and thereby provide participants with beneficial ownership of Company Stock. A
secondary purpose of the ESOP component of the Plan is to serve as a potential
means of corporate finance. The Company has the option of using the Plan to meet
its general financing requirements, including capital growth and transfers in
the ownership of Company Stock. The Plan may receive loans and other extensions
of credit to finance the acquisition of Company Stock.
Although the Plan has a separate Savings Plan component and has a separate ESOP
component that are subject to separate nondiscrimination and coverage tests as
if the two components were separate plans, the two components constitute a
single plan, held under a single trust, with all assets available to pay all
benefits. As used in the Plan in provisions other than the Plan name, the term
Savings Plan refers to the Savings Plan component, and the term ESOP refers to
the ESOP component of the single Plan.
The Plan is now amended and restated to comply with the requirements of the
Uruguay Round Agreements Act, the Uniformed Services Employment and Reemployment
Rights Act of 1994, the Small Business Job Protection Act of 1996, the Taxpayer
Relief Act of 1997, and the Internal Revenue Service Restructuring and Reform
Act of 1998. Except as provided in specific Sections throughout this document,
this restated Plan is effective January 1, 2001.
The history of revised provisions of the Plan document is set forth in Addendum
A, to the extent not included in the Addenda for specific units covered under
this Plan document. The procedures for qualifying and administering domestic
relations orders are set forth in Addendum B. The schedule of administrative
fees as in effect from time to time is set forth in Addendum C, which may be
updated as necessary to reflect changes without formal amendment. The Required
Beginning Date rules are set forth in Addendum D.
The provisions that apply only to employees in the Pittsburg, California
location are set forth in Addenda E and F. The provisions that apply only to
Participants who were employed by Crellin, Inc. are set forth in Addendum G. The
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provisions that apply only to Participants who were employed by Moldwood
Products Company as a subsidiary of Gulf States Paper Corporation are set forth
in Addendum H.
Addendum I describes the provisions that pertain only to employees of Specialty
Packaging Group, Inc. The provisions that apply only to employees of Hamilton
Hybar, Inc. are set forth in Addendum J. Addendum K describes the provisions
that pertain only to employees of Industrial Machine Company. The provisions
that apply only to employees of Stonington Corporation are set forth in Addendum
L. The provisions that apply only to certain employees of RTS Packaging, LLC who
subsequently return to the Company are set forth in Addendum M.
Addendum N outlines the provisions that apply only to employees of Injecto Mold,
Inc. The provisions that apply only to salaried and non-union hourly employees
of Flexible Packaging, Inc. are set forth in Addendum O. The provisions that
apply only to employees of Southern Plug and Manufacturing, Inc. are set forth
in Addendum P. Addendum Q describes the provisions that apply only to union
hourly employees of Flexible Packaging, Inc.
The provisions impacting only employees of Crown, Cork & Seal Company, Inc. are
set forth in Addendum R. Addendum S describes the provisions impacting employees
of Graphic Packaging, Inc. The provisions that apply only to employees of Paper
Stock Dealers, Inc. are set forth in Addendum T. Addendum U describes the
provisions that apply only to eligible employees of Power Packaging, Inc.
The provisions that apply only to groups of employees that enter the Plan after
the adoption date of this amended and restated document will be set forth in
subsequent Addenda. The sections of the Addenda are numbered to correspond to
the sections as numbered in the main document, and are prefixed by the letter
that identifies the Addendum, i.e., A, B, C, etc. The Addenda are attached to
the main document, and are an integral part of the Plan.
The rights of all employees who terminated employment with any adopting Employer
before the respective effective dates of the various provisions of the 2001
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restatement, and their beneficiaries, will be governed by the provisions in
effect on the Employee's termination date. All other employees, and their
beneficiaries, will be entitled to benefits payable under the 2001 restatement.
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SONOCO SAVINGS PLAN
Table of Contents
Page
ARTICLE 1 DEFINITIONS 1
1.1 ACP Test 1
1.2 ADP Test 1
1.3 Accounts 1
(a) Employer Contribution Accounts 1
(b) Employee Contribution Accounts 3
1.4 Actual Contribution Ratio (ACR) 4
1.5 Actual Deferral Ratio (ADR) 4
1.6 Addendum 4
1.7 Adoption Agreement 4
1.8 After-Tax Account 4
1.9 After-Tax Contributions 4
1.10 Average Contribution Percentage (ACP) 4
1.11 Average Deferral Percentage (ADP) 4
1.12 Before-Tax Account 4
1.13 Before-Tax Contributions 5
1.14 Beneficiary 5
1.15 Board 5
1.16 Break in Service 5
1.17 Code 5
1.18 Committee 5
1.19 Company 5
1.20 Company Matching Account 5
1.21 Company Stock 6
1.22 Compensation 6
(a) Contributions 6
(b) Nondiscrimination Testing 6
(c) (c) Identifying Highly Compensated Employees and Application
Of Top-Heavy Rules 7
(d) Compensation for Determining Limit on Annual Additions 7
(e) Statutory Limit 7
1.23 Contributions 8
(a) Employer Contributions 8
(b) Employee Contributions 9
(c) Rollover Contribution 10
1.24 Controlled Group 10
1.25 Corrective Contributions 10
1.26 Disability 10
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1.27 Discretionary Account 10
1.28 Discretionary Contributions 10
1.29 Dollar Limit 11
1.30 Earliest Retirement Age 11
1.31 Effective Date 11
1.32 Eligibility 11
1.33 Employee 11
1.34 Employee Contributions 12
1.35 Employee Contributions Accounts 12
1.36 Employer 12
1.37 Employer Contributions 12
1.38 Employer Contribution Accounts 12
1.39 Employment 12
1.40 Employment Date 12
1.41 ERISA 13
1.42 ESOP 13
1.43 ESOP Matching Account 13
1.44 ESOP Effective Date 13
1.45 Excess ACP Contributions 13
1.46 Excess ADP Contributions 14
1.47 Excess Deferrals 14
1.48 Fair Market Value 14
1.49 Five-Year Break in Service 14
1.50 HCE Group 14
1.51 Highly Compensated Employee (HCE) 14
1.52 Investment Funds 15
1.53 Matching Accounts 15
1.54 Matching Contributions 15
1.55 NHCE Group 15
1.56 Non-highly Compensated Employee (NHCE) 15
1.57 Normal Retirement Age 15
1.58 One-Year Break in Service 16
1.59 Participant 16
1.60 Paysop Account 16
1.61 Personal Identification Number (PIN) 16
1.62 Plan 16
1.63 Plan Administrator 16
1.64 Plan Year 16
1.65 Pre-1990 Matching Accounts 16
1.66 QNECs and QMACs 17
1.67 Recordkeeper 17
1.68 Rollover Contribution 17
1.69 Savings Plan 17
1.70 Spouse 17
1.71 Termination Date 17
1.72 Trust (or Trust Fund) 18
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1.73 Trustee 18
1.74 Valuation Date 18
1.75 Vested Percentage 19
1.76 Vesting Service 19
1.77 Voice Response Unit (VRU) 19
1.78 Website 19
1.79 Years of Vesting Service (or Vesting Service) 19
(a) Computation 20
(b) Leaves of Absence 20
(c) Employment With A Controlled Group Member 21
(d) Employment Before a Five-Year Break in Service 21
(e) Service Spanning 21
ARTICLE 2 ELIGIBILITY 22
2.1 Eligibility 22
2.2 Participation Upon Reemployment 22
2.3 Leased Employees and Independent Contractors 22
2.4 Transfer to a Controlled Group Member or Collective Bargaining Unit 23
2.5 Adoption of the Plan By a Controlled Group Member 23
ARTICLE 3 CONTRIBUTIONS 24
3.1 Employee Contributions 24
(a) Before-Tax and/or After-Tax 24
(b) Make-Up Contributions After Military Leave 26
(c) Vesting 28
(d) Election to Contribute 28
3.2 Employer Contributions 29
(a) Company Matching Contribution 29
(b) Corrective Contribution 29
(c) Make-Up Contributions After Military Leave 31
(d) Discretionary Contributions 31
(e) Vesting 31
(f) Vested Balance of Rehired Participants 31
(g) Forfeiture 32
(h) Reinstatement of Forfeitures 32
(i) Exclusive Benefit of Participants 34
(j) Contributions Limited to Tax Deductible Amounts 34
(k) Payment to the Trustee 34
(l) Return of Employer Contributions 34
3.3 Rollover Contributions 35
(a) Eligible Rollover Distribution 35
(b) Required Information 35
(c) Refund of Prohibited Rollovers 35
(d) Reliance on Participant's Representations 35
3.4 Purchase and Sale of Company Stock 36
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ARTICLE 4 ALLOCATIONS 36
4.1 Adjustments to Account Balances 36
(a) Regular Valuation Dates 36
(b) Recordkeeping Fees 36
(c) Dividends 36
(d) Valuations Binding 37
(e) Statement of Account Balances 37
(f) Correction of Mistakes 37
4.2 Investment Elections 38
(a) Investment Funds 38
(b) Liquidity 39
(c) Participant Elections 39
(d) Diversification Elections 41
(e) Reinvestment of Earnings 41
(f) Investment Expenses 41
(g) Special Election Rules 41
4.3 Voting Rights 41
4.4 Tender Offers 42
ARTICLE 5 IN-SERVICE WITHDRAWALS 43
5.1 General Rules 43
(a) Restrictions on Withdrawals from
Employer Contribution Accounts 43
(b) Available Amount 43
(c) Order of Withdrawal from Accounts 43
(d) Pro Rata Withdrawals from Investment Funds 43
(e) Frequency of Withdrawal 44
(f) Withdrawal Fee 44
5.2 In-service Withdrawal from After-Tax Account 44
5.3 In-service Withdrawal After Age 59 1/2 44
5.4 Required In-service Withdrawal After Age 70 1/2 45
5.5 Hardship Withdrawals 45
(a) Available Amount 45
(b) Order of Withdrawal 45
(c) Immediate and Heavy Financial Need 45
(d) Withdrawal Necessary to Meet Need 46
(e) Nondiscrimination 47
(f) Reliance on Participant's Representations 47
5.6 Loans 47
(a) Application and Eligibility 48
(b) Loan Origination Fee and Annual Fee 48
(c) Frequency of Loans 48
(d) Available Amount 48
(e) Order of Withdrawal from Accounts 48
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(f) Interest 49
(g) Investment of Account Balances 49
(h) Security 49
(i) Term 49
(j) Repayment 50
(k) Nonpayment 50
(l) Suspension of Repayments During Military Leave 51
ARTICLE 6 POST-EMPLOYMENT DISTRIBUTIONS 51
6.1 Payment Events 51
(a) Participant's Termination of Employment 51
(b) Participant's Death 51
6.2 Amount, Form and Timing of Payment 51
(a) Application for Payment 52
(b) Time of Payment 52
(c) Amount and Forms of Payment 52
(d) Automatic Cash-Out 53
(e) Constructive Cash-Out 53
(f) Medium of Payment 53
(g) Distribution Fee 54
(h) Order of Payment from Accounts 54
(i) Investment Elections During Installment Period 54
6.3 Required Distribution Rules 54
(a) General Rule 54
(b) Participant's Required Beginning Date 55
(c) Participant's Death Before Required Beginning Date 55
(d) Participant's Death After Required Beginning Date 55
(e) Compliance with Code Section 401(a)(9) 56
6.4 Designation of and Payment to Beneficiaries 56
(a) Procedure 56
(b) Waiver of Spouse's Rights 57
(c) Payment to Minor or Incompetent Beneficiaries 57
(d) Judicial Determination 57
6.5 Payment to the Participant's Representative 58
6.6 Unclaimed Benefits 58
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ARTICLE 7 LIMITATIONS ON CONTRIBUTIONS 58
7.1 Excess Deferrals 58
(a) Time of Distribution 59
(b) Reporting Form 59
(c) Order of Distributions 59
(d) Inclusion in ADP Test 59
(e) Inclusion in Annual Addition 60
(f) Determination of Earnings 60
7.2 Nondiscrimination Tests 60
(a) ADP Test 61
(b) ACP Test 62
(c) Multiple Use Prohibited 64
(d) Multiple-Use Test 64
(e) Correction of Excess ADP Contributions
and Excess ACP Contributions 64
(f) Excess Annual Addition 66
7.3 Code Section 415 Limitation 66
(a) Applicable Definitions 66
(b) Excess Annual Additions 68
(c) Combining of Plans 68
(d) Compliance With Code Section 415 69
7.4 Top-Heavy Rules 69
ARTICLE 8 AMENDMENT, TERMINATION AND MERGER 70
8.1 Amendment 70
(a) Procedure 70
(b) Prohibited Amendments 70
(c) Limited to Active Participants 71
(d) Administrative Changes Without Plan Amendments 71
8.2 Termination of the Plan 71
(a) Right to Terminate 71
(b) Full Vesting 71
(c) Provision for Benefits Upon Plan Termination 72
8.3 Plan Merger, Transfer of Plan Assets and Liabilities, Acceptance
Of Transfers 73
8.4 Distribution on Termination and Partial Termination 73
8.5 Notice of Amendment, Termination or Partial Termination 74
ARTICLE 9 ADMINISTRATION 74
9.1 Delegation of Authority 74
9.2 Allocation of Fiduciary Responsibilities 74
(a) The Board 74
(b) The Company and the Employers 75
(c) The Committee 75
(d) The Investment Council 78
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(e) The Trustee(s) 81
9.3 Expenses 82
9.4 Indemnification 82
9.5 Claims Procedure 82
(a) Application for Benefits 82
(b) Decision on Claim 82
(c) Appeal 83
ARTICLE 10 MISCELLANEOUS 83
10.1 Headings 83
10.2 Construction 84
10.3 Qualification for Continued Tax-Exempt Status 84
10.4 Non-alienation 84
10.5 No Employment Rights 84
10.6 No Enlargement of Rights 85
10.7 Direct Rollover 85
(a) General Rule 85
(b) Definitions 85
10.8 Withholding for Taxes 87
10.9 Notices 87
10.10 Evidence 87
10.11 Action by Employers 87
10.12 Plan Not Contract of Employment 87
10.13 Absence of Guaranty 88
10.14 Company's Decision Final 88
ADDENDUM A History of Revised Plan Provisions
ADDENDUM B Qualified Domestic Relations Orders
ADDENDUM C Schedule of Administrative Fees
ADDENDUM D Required Beginning Date Rules
ADDENDUM E Sonoco Fibre Drum, Pittsburg, California, Freight Checkers
Union, Clerical Employees and Helpers Union
ADDENDUM F Sonoco Fibre Drum, Pittsburg, California, International
Association of Machinists, AFL-CIO
ADDENDUM G Crellin, Inc.
ADDENDUM H Moldwood Products Company
ADDENDUM I Specialty Packaging Group, Inc.
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ADDENDUM J Hamilton Hybar, Inc.
ADDENDUM K Industrial Machine Company
ADDENDUM L Stonington Corporation
ADDENDUM M RTS Packaging, LLC
ADDENDUM N Injecto Mold, Inc.
ADDENDUM O Flexible Packaging, Inc. Salaried and Non-Union Hourly Employees
ADDENDUM P Southern Plug and Manufacturing, Inc.
ADDENDUM Q Flexible Packaging, Inc. Union Hourly Employees
ADDENDUM R Crown, Cork & Seal Company, Inc.
ADDENDUM S Graphic Packaging, Inc.
ADDENDUM T Paper Stock Dealers, Inc.
ADDENDUM U Power Packaging, Inc.
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ARTICLE 1
Definitions
As used in the Plan, the following words and phrases and any derivatives thereof
will have the meanings set forth below unless the context clearly indicates
otherwise. Definitions of other words and phrases are set forth throughout the
Plan. Section references indicate sections of the Plan unless otherwise stated.
The masculine pronoun includes the feminine, and the singular number includes
the plural and the plural the singular, whenever applicable.
1.1 ACP Test. See Subsection 7.2(b).
1.2 ADP Test. See Subsection 7.2(a).
1.3 Accounts means the records the Committee maintains to record the
Contributions and attributable gains/losses/expenses allocated to each
Participant.
(a) Employer Contribution Accounts means one or more of the following five
Employer Contribution Accounts, which will be funded from the
Employers' general treasuries. Effective as of January 1, 2001, each
Participant may elect to diversify all or a portion of the investment
of his Employer Contribution Accounts that were previously made in
Company Stock into other investment funds, under Subsection 4.2(d).
Prior to January 1, 2001, a Participant had to wait until he reached
age 55 before he could elect to diversify his Employer Contribution
Account balances.
(1) ESOP Matching Account meant the Account to record Matching
Contributions for each pay period, beginning January 1, 1990,
which (A) were made in Company Stock under the ESOP before 2001,
(B) were subject to the vesting schedule set forth in Subsection
3.2(e), and (C) cannot be withdrawn or borrowed before the
Termination Date. As of the date of this restatement, this
Account is converted to the Company Matching Account described in
Section 1.3(a)(5). Effective
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as of January 1, 2001, Matching Contributions will no longer by
made in Company Stock but will instead follow the investment
direction of Participant elections.
(2) Discretionary Account means the Account to record the Employer's
Discretionary Contributions, which either (A) will be made in
cash or in Company Stock for any Plan Year as the Committee
determines to be necessary to avoid violating the ADP Test and/or
the ACP Test for the ESOP and/or Savings Plan portion of the Plan
(QNECs and/or QMACs), and which will be fully vested when made,
or (B) will be made in amounts and for Plan Years authorized by
the Board and allocated among the Discretionary Accounts of all
Participants who are in Employment as of the last day of the Plan
Year, as a percentage of their Compensation for the Plan Year,
regardless of whether they made Employee Contributions for the
Plan Year. Discretionary Contributions will be fully vested when
made, and cannot be withdrawn or borrowed before the Termination
Date.
(3) PAYSOP Account means the Account to record Employer Contributions
that were made in Company Stock to the tax credit ESOP portion of
the Plan before 1989, which are fully vested, and which may be
withdrawn during Employment only for a hardship under Section
5.5.
(4) Pre-1990 Matching Account means the Account to record Employer
Matching Contributions made in cash to the Savings Plan portion
of the Plan before 1990 (35 percent of the first 6 percent of
Compensation deferred), which were subject to the Plan's vesting
schedule, and which cannot be withdrawn before the Termination
Date, but may be borrowed during Employment under Section 5.6.
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(5) Company Matching Account means the Account to record Matching
Contributions for each pay period, beginning January 1, 2001,
which (A) will be made in cash, (B) will be subject to the
vesting schedule set forth in Subsection 3.2(e), (C) will follow
the investment direction for Participant elections, and (D)
cannot be withdrawn or borrowed before the Termination Date.
(b) Employee Contribution Accounts means any of the following three
Employee Contribution Accounts, which will be funded by the
Participant's own Contributions that he elects to make each year as
After-Tax, Before-Tax, or Rollover. Amounts contributed by the
Participant on a Before-Tax or After-Tax basis are subject to a
combined contribution limit of 16 percent of Compensation for each
Plan Year (or 20 percent of Compensation for Plan Years beginning
after December 31, 2001. Amounts allocated to the Employee
Contributions Accounts shall be fully vested when made, and can be
withdrawn or borrowed during Employment under Article 5, except as
provided below.
(1) After-Tax Account means an Account to record (A) the amounts that
the Participant contributes to the Plan as his After-Tax
Contributions under Section 3.1, between 1 percent and 16 percent
(or, for Plan Years beginning after December 31, 2001, between 1
and 20 percent) of his Compensation (reduced by the percentage of
Compensation contributed as Before-Tax Contributions); and (B)
Prior Plan Accounts as described in Addendum A (which are treated
as after-tax or before-tax as applicable even though they are in
the After-Tax Account).
(2) Before-Tax Account means an Account to record the amounts a
Participant contributes to the Plan as Before-Tax Contributions
under Section 3.1, between 1 percent and 16 percent (or, for Plan
Years beginning after December 31, 2001, between 1 percent and 20
percent) of his Compensation (reduced by the percentage of
Compensation
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contributed as After-Tax Contributions). Earnings allocated to
the Before-Tax Account after 1988 cannot be withdrawn for
hardship.
(3) Rollover Contribution Account means an Account to record the
amounts a Participant transfers to this Plan from another
qualified retirement plan or individual retirement account or
plan, under Section 3.3.
1.4 Actual Contribution Ratio (ACR). See Subsection 7.2(b)(1).
1.5 Actual Deferral Ratio (ADR). See Subsection 7.2(a)(1).
1.6 Addendum. The provisions of the Plan as applied to any Employer or any
group of Employees of any Employer may be modified or supplemented from
time to time by the Company by the adoption of one or more Addenda. Each
Addendum will form a part of the Plan as of the Addendum's effective date.
In the event of any inconsistency between an Addendum and the Plan
document, the terms of the Addendum will govern.
1.7 Adoption Agreement means the document by which an Employer adopts the Plan
and which specifies any provisions that apply only to its Employees.
1.8 After-Tax Account. See Subsection 1.3(b)(1).
1.9 After-Tax Contributions. See Subsection 1.23(b)(1).
1.10 Average Contribution Percentage (ACP). See Subsection 7.2(b)(2).
1.11 Average Deferral Percentage (ADP). See Subsection 7.2(a)(2).
1.12 Before-Tax Account. See Subsection 1.3(b)(2).
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1.13 Before-Tax Contributions. See Subsection 1.23(b)(2).
1.14 Beneficiary means the person(s) or entity(s) named by the Participant under
Section 6.4 to receive any Account balances remaining in the Plan after his
death. The surviving Spouse will be the primary Beneficiary unless the
Spouse has waived that right under Subsection 6.4(b). The Beneficiary will
have the right to make investment elections under Section 4.2, to make
loans under Section 5.6, and to elect timing and form of payment under
Section 6.2. Each alternate payee named in a qualified domestic relations
order is a Beneficiary for purposes of the awarded amount.
1.15 Board means the Board of Directors of the Company.
1.16 Break in Service. See Section 1.49. One-Year Break in Service. See Section
1.58.
1.17 Code means the Internal Revenue Code of 1986 as amended from time to time,
and regulations and rulings issued under the Code.
1.18 Committee means the Benefits Committee, which will serve as the Plan
Administrator (as that term is defined in Section 3(16)(A) of ERISA), and
will have primary responsibility for administering the Plan under Article
9.
1.19 Company means Sonoco Products Company, a corporation organized and existing
under the laws of the State of South Carolina, or its successor or assign
that adopts the Plan. The authority to control and manage the
non-investment operations of the Plan is vested in the Company, to the
extent the Company has not delegated all or any part of its
responsibilities and powers to the Committee. Any such allocation or
delegation may be revoked at any time.
1.20 Company Matching Account. See Subsection 1.3(a)(5).
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1.21 Company Stock means common stock of the Company that is readily tradable on
an established securities market. Company Stock may 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
stock into which they can be converted.
1.22 Compensation. Compensation will have the following meanings for the
following purposes, and is intended to be a safe-harbor definition under
Code Section 414(s).
(a) Contributions. For purposes of determining the percentages that each
Participant can contribute, Compensation is the taxable earnings paid
by the Employer to the Participant and reported on his Form W2 for the
calendar year, plus amounts deferred under Code Sections 401(k) and
125 pursuant to the Participant's salary reduction agreement, and
excluding (1) bonuses, vacation pay and other payments made after the
calendar year in which the Termination Date occurs, (2) severance pay,
(3) reimbursement for moving expenses, (4) reimbursement for
educational expenses, (5) automobile allowance, (6) tax counsel
allowance, (7) compensation related to the exercise of stock option
grants or to any other stock related compensation program, (8)
expatriate-related expenses, (9) any form of imputed income, (10)
Employer Contributions to this Plan and to any other benefit plan, and
(11) in-service payments and all other benefits provided under this
Plan or under any deferred compensation plan or other benefit plan.
Compensation for the Participant who enters the Plan after the
beginning of a Plan Year will include only amounts earned after he
enters the Plan.
(b) Nondiscrimination Testing. For purposes of (1) the ADP Test and the
ACP Test, Compensation for any Plan Year means a Member's compensation
in any manner that satisfies the requirements of Code Section 414(s).
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(c) Identifying Highly Compensated Employees and Application of Top-Heavy
Rules. For purposes of identifying Highly Compensated Employees under
Section 1.51, and for purposes of applying the top-heavy requirements
described in Section 7.4, for Plan Years beginning before January 1,
1998, Compensation means "compensation" as defined under Code Section
415(c)(3), increased by amounts contributed on the Employee's behalf
by the Company or any Controlled Group member under Code Section 125
or 401(k). For purposes of identifying Highly Compensated Employees
under Section 1.51 for Plan Years beginning on and after January 1,
1998, Compensation means "compensation" as defined under Code Section
415(c)(3).
(d) Compensation for Determining Limit on Annual Additions. For purposes
of calculating limits on annual additions under Section 7.3,
Compensation means a Participant's wages, tips, and other compensation
which are required to be reported on a Federal Wage and Tax Statement
(Form W2). However, effective for Plan Years beginning on and after
January 1, 1998, Compensation under this subsection (d) shall also
include a Participant's salary reduction contributions made during the
Plan Year under any plan or program maintained by the Company or a
Controlled Group member under Code Section 125, 132(f)(4), or 401(k).
(e) Statutory Limit. The Compensation of each Participant taken into
account under the Plan for any Plan Year beginning before January 1,
2002 shall not exceed $150,000 (or such higher amount determined by
the Secretary of the Treasury under Code Section 401(a)(17)). The
Compensation of each Participant taken into account under the Plan for
any Plan Year beginning after December 31, 2001 shall not exceed
$200,000, as adjusted for cost-of-living increases in accordance with
Code Section 401(a)(17)(B).
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1.23 Contributions. The Trustee will accept the following Contributions to the
Plan:
(a) Employer Contributions means the total of each Participant's
allocations of the following Contributions for the Plan Year. The
Employers contribute cash to fund the Matching Contribution, and may
contribute cash, shares of Company Stock, or cash to purchase Company
Stock to fund any Discretionary and Corrective Contributions.
(1) Matching Contributions made through December 31, 2001 means cash
contributed by the Employer for each payroll period, equal in
value to 50 percent of the first 6 percent of Employee
Contributions made by each Participant for each payroll period,
as Before-Tax Contributions and/or as After-Tax Contributions.
Effective January 1, 2002, Matching Contributions will be made in
cash in accordance with the safe harbor provisions under Code
Sections 401(k)(12)(B) and 401(m)(11) that provide for a 100%
match on the first 3% of Compensation contributed by the
Participant as Before-Tax Contributions for each payroll period,
plus a 50% match on the next 2% of Compensation contributed by
the Participant as Before-Tax Contributions for each payroll
period. No Matching Contributions will be made on After-Tax
Contributions for any Plan Year after December 31, 2001.
(2) Discretionary Contributions means cash and/or Company Stock
contributed for any Plan Year for which the Board authorizes such
Contributions, which are allocated among the Discretionary
Accounts of all Participants who are in Employment as of the last
day of the Plan Year, as a percentage of their Compensation for
the Plan Year, regardless of whether they made Employee
Contributions for the Plan Year.
(3) Corrective Contributions means cash and/or Company Stock
contributed for any Plan Year in the amount that the
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Committee determines to be necessary to avoid violating the ADP
Test and/or the ACP Test for the ESOP and/or the Savings Plan
portions of the Plan, which will be allocated among Discretionary
Accounts of selected Participants, as determined by the Committee
under Subsection 3.2(b) (QNECs and/or QMACs).
(b) Employee Contributions means the amounts that each Participant elects
to contribute on an After-Tax and/or Before-Tax basis under Section
3.1, subject to the aggregate limit of 16 percent (or 20 percent for
Plan Years beginning after December 31, 2000) of Compensation for each
Plan Year. The Participant in the HCE Group who has his Contributions
limited under Article 7 may have a resulting fractional percentage.
(1) After-Tax Contributions means an amount equal to a whole
percentage not less than 1 percent nor greater than 16 percent
(or, for Plan Years beginning after December 31, 2001, not less
than 1 percent nor greater than 20 percent) of the Participant's
Compensation for the Plan Year, reduced by the percentage of
Compensation contributed by the Participant for the Plan Year as
Before-Tax Contributions, which he elects to contribute on an
after-tax basis.
(2) Before-Tax Contributions means an amount equal to a whole
percentage not less than 1 percent nor greater than 16 percent
(or, for Plan Years beginning after December 31, 2001, not less
than 1 percent nor greater than 20 percent) of the Participant's
Compensation for the Plan Year, reduced by the percentage of
Compensation contributed by the Participant for the Plan Year as
After-Tax Contributions, which he elects to contribute on a
before-tax basis.
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(c) Rollover Contribution means an amount transferred to this Plan from
another qualified retirement plan or individual retirement account or
plan, under Section 3.3.
1.24 Control Group means the Company and
(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 while 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 while it is required to be aggregated with the
Company under Code Section 414(o).
1.25 Corrective Contributions. See Subsection 1.23(a)(3).
1.26 Disability means a physical or mental impairment incurred while the
Participant is in active Employment, which permanently disables him from
engaging in substantial gainful employment, and which qualifies him to
receive either (a) benefits under Sonoco's Long-Term Disability Plan, (b)
Social Security disability benefits, or (c) Workers' Compensation
disability benefits due to an occupational illness or injury. The
impairment must not have occurred because of the Participant's involvement
in military service, war or similar hostilities, insurrection, rebellion,
revolution, felony, or employment with another employer. The term Disabled
Participant refers to the Participant who has incurred a Disability.
1.27 Discretionary Account. See Subsection 1.3(a)(2).
1.28 Discretionary Contributions. See Subsection 1.23(a)(2).
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1.29 Dollar Limit means the annual limitation on Before-Tax Contributions
determined for each Plan Year under Code Section 402(g).
1.30 Earliest Retirement Age means, for a Participant who is not credited with
an Hour of Service after December 31, 2001, the Participant's 55th
birthday, when he becomes fully vested in his Company Matching
Contributions even if he has not completed 2 Years of Service.
1.31 Effective Date means January 1, 1981 as the original Effective Date of the
Savings Plan; January 1, 1983 as the Effective Date of the ESOP; and
January 1, 1990 as the Effective Date of the merger of the Savings Plan and
the ESOP into this Plan, which was commonly called a KSOP, until the ESOP
was converted to part of the Savings Plan on January 1, 2001. The Effective
Date of this amendment and restatement is January 1, 2001, except that
certain amendments are effective as of other dates stated within the
affected sections.
1.32 Eligibility. Effective on and after November 1, 1997, Eligibility means the
first day of the month following, or coincident with, the date when the
Employee has completed 30 days of Employment, provided he works for a
Controlled Group member that has adopted the Plan as of that date. The
Eligibility rules prior to November 1, 1997 are described in Addendum A.
1.33 Employee means an individual (a) who is regularly employed by an Employer,
and (b) who has FICA taxes withheld by an Employer. The group of eligible
Employees includes those who are on approved leaves of absence included in
Service under Section 1.79. The group of eligible Employees excludes (a)
those individuals who are members of a bargaining unit for which coverage
under this Plan is not expressly provided by a bargaining agreement between
an Employer and a bargaining representative, (b) independent contractors,
(c) leased employees within the meaning of Code Section 414(n), (d)
non-U.S. citizens employed outside the United States, (e) non-resident
aliens with no
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U.S. source income, and (f) individuals who are classified as temporary or
seasonal employees. For purposes of identifying Highly Compensated
Employees under Section 1.51, Employees will include all individuals who
are regularly employed by all Controlled Group members.
Notwithstanding any provision in this Plan to the contrary, if an
individual is classified by the Company or any other entity within the
Controlled Group as an independent contractor, and is later determined by a
court or federal, state, or local regulatory or administrative authority to
have provided services as a common law Employee, such determination shall
not alter such person's exclusion from the group of Employees who are
eligible to participate under this Plan.
1.34 Employee Contributions. See Subsection 1.23(b).
1.35 Employee Contributions Accounts. See Subsection 1.3(b).
1.36 Employer means the Company at each of its locations covered under this
Plan, and each Controlled Group member that adopts the Plan, and each
Employer's successor or assign that adopts the Plan.
1.37 Employer Contributions. See Subsection 1.23(a).
1.38 Employer Contributions Accounts. See Subsection 1.3(a).
1.39 Employment means the period during which an Employee is regularly employed
by an Employer, including periods of Disability and approved leaves of
absence for which Vesting Service is granted under Section 1.79.
1.40 Employment Date means the date on which an individual completes his first
Hour of Service as an eligible Employee. However, for an Employee
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who is reemployed after incurring a One-Year Break in service or longer
period of absence, Employment Date means the date on which such individual
completes his first Hour of Service as an eligible Employee following such
reemployment date.
1.41 ERISA means the Employee Retirement Income Security Act of 1974, as amended
from time to time, and regulations and rulings under ERISA.
1.42 ESOP means the component of the Plan which is intended to be a stock bonus
plan that qualifies as an employee stock ownership plan under Code Section
4975(e)(7). For Plan Years beginning before 2001, the ESOP shall be that
portion of the Plan under which the Employers contributed Company Stock as
Matching Contributions (prior to January 1, 2001) and/or Discretionary
Contributions (QNECs and QMACs). For the 2001 Plan Year, the ESOP shall be
comprised of all amounts attributable to Participants' Employer
Contributions Accounts that are invested in the Sonoco Stock Fund. For Plan
Years beginning on and after January 1, 2002, the ESOP component of this
Plan shall be the portion of the Plan that is in the Sonoco Stock Fund (but
not amounts that are transferred from the Sonoco Stock Fund into other
Investment Funds). This ESOP component is intended to be a stock bonus plan
that qualified as an employee stock ownership plan under Code Section
4975(e)(7).
1.43 ESOP Matching Account. See Subsection 1.3(a)(1).
1.44 ESOP Effective Date means January 1, 1983 for the Paysop, and January 1,
1989 for the ESOP.
1.45 Excess ACP Contributions means, for Plan Years beginning before January 1,
2002. Matching Contributions that have caused the ESOP component of the
Plan to fail the ACP Test for the Plan Year, and/or After-Tax Contributions
that have caused the Savings Plan component of the Plan to fail the ACP
Test for the Plan Year. For Plan Years beginning after December 31, 2002,
Excess ACP Contributions means After-Tax
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Contributions that cause either the ESOP component or the Savings Plan
component of this Plan to fail the ACP Test for the Plan Year.
1.46 Excess ADP Contributions means Before-Tax Contributions that have caused
the Savings Plan component of the Plan to fail the ADP Test for the Plan
Year.
1.47 Excess Deferrals means the amount by which the total annual amount of
Before-Tax Contributions that any Participant makes under this Plan, plus
other "elective deferrals" (as defined under Code Section 402(g)(3)) made
by the Participant for the same Plan Year, exceeds the Dollar Limit for the
Plan Year. .
1.48 Fair Market Value means the closing price for shares of Company Stock
traded on the New York Stock Exchange as of the date of determination. The
Fair Market Value of other Plan assets is the cash value established by an
independent appraiser as of the date of determination, using a reasonable
method of valuation.
1.49 Five-Year Break in Service means five consecutive One-Year Breaks in
Service.
1.50 HCE Group. The entire group of Employees who are Highly Compensated
Employees (HCEs) for the Plan Year.
1.51 Highly Compensated Employee (HCE) means, effective January 1, 1997, any
individual who:
(a) is a 5-percent owner (as defined in Code Section 416(i))of the Company
or any Controlled Group member at any time during the current or
immediately preceding Plan Year; or
(b) had Compensation from the Company and its Controlled Group members
during the 12month period immediately preceding the Plan Year in
excess of $80,000 (as indexed from time to time under Code Section
414(q)(1)).
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(Notwithstanding the above, the Company may elect to treat an
individual as a Highly Compensated Employee under Subsection (b) only
if the Employee is also among the top-paid 20 percent of all Employees
for such prior Plan Year when ranked in order of Compensation.)
A former Employee shall be treated as a former Highly Compensated
Employee if such Employee was a Highly Compensated Employee when he or
she incurred a Termination of Service, or was a Highly Compensated
Employee any time after reaching age 55.
1.52 Investment Funds means the various funds that are available for the
investment of Accounts. The Investment Council has the discretion to add or
delete any Investment Fund and to change the investment strategy or
categories of permitted investments of any Investment Fund without prior
notice to Employees. One of the Investment Funds, the Sonoco Stock Fund,
will be invested in Company Stock and cash or cash equivalents held for
liquidity purposes.
1.53 Matching Accounts means the Company Matching Account, ESOP Matching
Account, and the Pre-1990 Matching Account.
1.54 Matching Contributions. See Subsection 1.23(a)(1).
1.55 NHCE Group means the entire group of Employees who are Non-Highly
Compensated Employees (NHCEs) for the Plan Year.
1.56 Non-Highly Compensated Employee (NHCE) means an Employee who is not within
the HCE Group for the Plan Year.
1.57 Normal Retirement Age means the Participant's 65th birthday.
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1.58 One-Year Break in Service means a twelve-consecutive-month period beginning
on the Employee's Termination Date and ending on each anniversary of that
date, provided the Employee does not perform an Hour of Service for the
Company or an Affiliate during any such twelve-month period.
1.59 Participant means an Employee participating in the Plan under Section 2.1.
The term vested Participant is sometimes used to refer to the Participant
whose Vested Percentage is greater than 0 percent. The term non-vested
Participant is sometimes used to refer to the Participant whose Vested
Percentage is 0 percent. For purposes of the ADP Test and ACP Test under
Section 7.2, the term Participant includes eligible Employees who did not
receive any allocation of Contributions for the Plan Year, including those
who terminated during the Plan Year being tested.
1.60 Paysop Account. See Subsection 1.3(a)(3).
1.61 Personal Identification Number ("PIN") means the individual and unique
number that is provided to each Participant for purposes of executing
transactions through the VRU and Website. Any entry by a Participant of his
PIN, together with his Social Security Number, will constitute his valid
signature for purposes of any transaction executed through the VRU or the
Website.
1.62 Plan means the Sonoco Savings Plan as amended from time to time.
1.63 Plan Administrator means the Committee.
1.64 Plan Year means the twelve--consecutive-month period beginning January 1
and ending December 31 of each year.
1.65 Pre-1990 Matching Accounts. See Subsection 1.3(a)(4).
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1.66 QNECs and QMACs means Discretionary Contributions (See Subsection
1.23(a)(2)), including Qualified Nonelective Contributions (QNECs) and
Qualified Matching Contributions (QMACs) made under Section 3.2(b) as
necessary to prevent failing the ADP and/or ACP test for the ESOP and/or
Savings Plan portion of the Plan for any Plan Year.
1.67 Recordkeeper means the entity retained from time to time to provide
administrative services for the Plan, including (to the extent delegated by
the Committee) but not limited to, (a) allocating Contributions, investment
gains and losses, expenses and fees to Accounts, (b) processing deferral
and investment elections and modifications, (c) processing in-service
withdrawals and loans, (d) processing lump sum and installment payments,
(e) performing nondiscrimination testing, and (f) maintaining the Plan's
compliance with all relevant qualification requirements.
1.68 Rollover Contribution. See Subsection 1.23(c).
1.69 Savings Plan means the component of the Plan that is not the ESOP.
1.70 Spouse means the person to whom the Participant is legally married. The
surviving Spouse is the person to whom the Participant is legally married
on his date of death. In the event of a dispute, such status will be
determined in accordance with the applicable laws of descent and
distribution of the Participant's state of domicile. The surviving Spouse
is sometimes referred to as a Beneficiary.
1.71 Termination Date means the earlier of (a) the date the Employee resigns,
retires, is discharged or dies; or (b) the first anniversary of the
beginning date of a paid or unpaid absence for any reason other than
resignation, retirement, discharge, death; provided that a Termination Date
will not occur prior to the end of an authorized leave of absence that is
included in Vesting Service under Subsection 1.79(b). The Termination Date
of the Employee who resigns, retires, is discharged or dies before the
first anniversary of his absence (or the
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second anniversary for a parental leave) will be the date such event
occurs. Vesting Service will cease on the Termination Date except as
otherwise provided under Section 1.79.
1.72 Trust (or Trust Fund) means the fund or funds maintained under the trust
agreement executed between the Company and the Trustee to receive and
invest the amounts contributed on behalf of Participants, and from which
distributions will be made.
1.73 Trustee means the individual(s) or corporation(s) appointed by the Company,
pursuant to a trust agreement, to hold and manage the Trust Fund.
1.74 Valuation Date means each business day on which the New York Stock Exchange
is open during each Plan Year, as of which date the Trustee will determine
the Fair Market Value of the Trust Fund and of each Account, and will make
allocations to Accounts as provided in Section 4.1. The Plan will use a
daily valuation system, which generally will mean that Accounts will be
updated each business day to reflect activity for that day, such as new
contributions received by the Trustee, changes in Participants' investment
elections, and changes in the unit value of the Investment Funds under the
Plan. Such daily valuation is dependent upon the Plan's Recordkeeper
receiving complete and accurate information from a variety of sources on a
timely basis. Since events may occur that cause an interruption in this
process, affecting a single Participant or a group of Participants, there
will be no guarantee by the Plan that any given transaction will be
processed on the anticipated day. In the event of any such interruption,
any affected transaction will be processed as soon as administratively
feasible and no attempt will be made to reconstruct events as they would
have occurred absent the interruption, regardless of the cause, unless the
Company in its sole discretion directs the Plan's Recordkeeper to do so.
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1.75 Vested Percentage means the percentage of the Participant's Company
Matching Account that is vested under the rules set forth in Subsection
3.2(e).
1.76 Vesting Service. See Section 1.79.
1.77 Voice Response Unit (VRU) means the interactive telephone system that the
Recordkeeper will make available for Participants and Beneficiaries to use
to make their deferral and investment elections and modifications, to
request in-service withdrawals and loans, and to request post-Employment
lump sum and installment payments. To the extent that for any reason the
VRU is not available from time to time for any such use, the Recordkeeper
or the Employer will provide the affected Participant or Beneficiary a
written form (that has been approved by the Committee) to use to execute
the desired transaction, as soon as practicable after it receives the
request for such written form. As used in this Plan document, the term VRU
includes such written forms to the extent applicable.
1.78 Website means the Internet Website that the Recordkeeper will make
available for Participants and Beneficiaries to use to make their deferral
and investment elections and modifications to those elections. To the
extent that for any reason the Website is not available from time to time
for any such use, the Recordkeeper or the Employer will provide the
affected Participant or Beneficiary a written form (that has been approved
by the Committee) to use to execute the desired transaction, as soon as
practicable after it receives the request for such written form. As used in
this Plan document, the term Website includes such written forms to the
extent applicable.
1.79 Years of Service (or Vesting Service) means the period beginning on the
Participant's Employment Date and ending on his Termination Date. Vesting
Service will be determined subject to the following rules:
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(a) Computation. The Committee will compute Vesting Service in whole and
partial years, by measuring months from the Employment Date, counting
each month as 1/12 year, aggregating non-continuous partial months
into whole 30day months, and ignoring any remaining days.
(b) Leaves of Absence. Except as provided in this Subsection, each
Participant will be credited with Vesting Service as if his status as
an Employee had continued during the period of his approved leave of
absence granted under his Employer's standard, uniformly-applied human
resources policies, but only if he resumes active Employment promptly
upon the expiration of his approved leave.
(1) Military Leave. Each Participant will receive credit for
eligibility and Vesting Service as if his active full-time
Employment had continued during the period of his military duty
covered under the Uniformed Services Employment and Reemployment
Rights Act of 1994, if he retains statutory reemployment rights
and resumes Employment within the period prescribed under Section
414(u) of the Code.
(2) Parental Leave. Each Participant will receive credit for Vesting
Service for the period of a parental leave, for a maximum of 12
months. If the Participant does not resume active Employment, the
first anniversary of the date the leave began will be the
Termination Date for purposes of crediting Vesting Service, but
the second anniversary will be the Termination Date for purposes
of determining when a Break in Service begins. The Plan will
credit Vesting Service for the period between the first
anniversary of the leave date and the date when the Participant
resumes active Employment only if that date occurs before the
second anniversary. The Termination Date of the Participant who
resigns, retires, is discharged or dies before the second
anniversary of the leave date will be the date such event occurs.
A parental leave is an absence from active Employment by reason
of pregnancy, childbirth, child adoption, and/or childcare
immediately following
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birth or adoption. The leave will be treated as any other absence
unless the Employee timely provides to the Committee all
information reasonably required to establish that the absence
constitutes a parental leave.
(c) Employment With a Controlled Group Member. Each individual who
transfers into covered Employee status will receive credit for
Vesting Service for the period of his service with any Controlled
Group member, whether or not it has adopted the Plan, beginning
on the date the member becomes part of the Controlled Group,
under the rules that apply to Employment under this Plan. Each
individual who transfers from covered Employee status to
non-covered service with a Controlled Group member will continue
to receive credit for Vesting Service, under the rules that apply
to Employment under this Plan. An individual who transfers into
covered Employee status, after being excluded under Section 1.33
as a non-U.S. citizen employed outside the United States, or a
non-resident alien with no U.S. source income, will receive
credit for Vesting Service beginning on the later of his first
day of service with his foreign employer, or the date when his
foreign employer becomes part of the Controlled Group.
(d) Reemployment Following a Break in Service. If a nonvested
Participant is reemployed as an Employee following an earlier
Termination Date, his prior Vesting Service shall be reinstated
upon such reemployment date only if he returns to Employment
before incurring a Five-Year Break in Service. If a vested
Participant is reemployed as an Employee following an earlier
Termination Date, his prior Vesting Service shall be restored
without regard to the number of his One-Year Breaks in Service.
(e) Service Spanning. If an Employee terminates Employment for any
reason and resumes Employment within twelve months, the Plan will
include his period of termination in his Vesting Service.
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ARTICLE 2
Eligibility
2.1 Eligibility. Effective on and after November 1, 1997, each Employee will
begin participating in the Plan as of the first day of the month following,
or coincident with, the date when he has completed 30 days of Employment.
See Addendum A for the rules in effect before that date.
2.2 Participation Upon Reemployment. If a former Participant is reemployed as
an eligible Employee, he shall be eligible to again become a Participant as
soon as practicable after the date he resumes Employment.
If a former Employee who did not participate previously in this Plan is
reemployed as an eligible Employee, he shall be eligible to become a
Participant as soon as practicable after the date he resumes Employment if
he (a) previously satisfied the Eligibility period described in Section 2.1
and (b) resumes Employment before incurring a Five-Year Break in Service.
If a former Employee who did not participate previously in this Plan, and
who is not described in the preceding sentence, is reemployed as an
eligible Employee, he shall be treated as new Employee under Section 2.1.
2.3 Leased Employees and Independent Contractors. A leased employee is an
individual who has performed services for an Employer on a substantially
full-time basis for at least one year, under the primary direction and
control of the Employer, and pursuant to an agreement between the Employer
and a leasing organization. Leased employees will be treated as Employees
to the extent required under Code Section 414(n) but will not be eligible
to participate in this Plan. If a leased employee becomes an eligible
Employee, the Plan will give him credit for vesting and eligibility for the
period when he worked as a leased employee, under Sections 1.79 and 2.1 as
if he had been an Employee during that period, unless (a) the leased
employee was covered by a money purchase plan sponsored by the leasing
organization, with 10
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percent contributions and immediate participation and vesting, and (b)
leased employees constitute no more than 20 percent of the Controlled
Group's Non-Highly Compensated Employees. If an individual who has worked
for an Employer as an independent contractor becomes a common-law employee,
or if a court or administrative agency determines that an individual whom
an Employer has designated as an independent contractor is in fact a
common-law employee, he will not receive credit for any purpose under the
Plan until the date when an Employer designates him as an eligible Employee
under this Plan.
2.4 Transfer to a Controlled Group Member that is not an Employer or to a
Collective Bargaining Unit. No Contributions will be made by or for the
Participant who has transferred from Employment to (a) employment with a
Controlled Group member that is not an Employer, (b) a position covered by
a collective bargaining agreement that does not expressly provide for
participation in this Plan, or (c) a position in which he is not an
eligible Employee. The Participant will continue to earn Vesting Service
for employment with the Controlled Group member under the rules described
in Section 1.79. If the Controlled Group member maintains a similar
qualified retirement plan under Code Section 401(k) and/or 4975(e)(7) that
will accept a transfer of the Participant's Account balances from this
Plan, the Committee may in its sole discretion direct the Trustee to
transfer the Participant's Account balances to the other plan. The Trustee
will execute the transfer as soon as practicable after receiving
appropriate directions from the Committee.
2.5 Adoption of the Plan By a Controlled Group Member. A Controlled Group
member may adopt this Plan document for one or more of its locations, by
appropriate action of its board of directors or authorized officer(s) or
representative(s), subject to the Committee's approval. The adopting
resolution must delegate authority to the Committee and the Investment
Council to administer the Plan and Trust, to enter into investment and
funding arrangements selected by the Investment Council, to amend the Plan,
and to take such other actions as they consider appropriate.
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ARTICLE 3
Contributions
3.1 Employee Contributions.
(a) Before-Tax and/or After-Tax. For each Plan Year, each Participant may
elect the percentage of his Compensation that he wishes to defer as
Before-Tax Contributions, and/or the percentage that he wishes to
contribute as After-Tax Contributions, within the aggregate limitation
described below in Subsection (a)(3).
(1) Amount. Subject to the limitations set forth in Subsection
3.1(a)(3) below and in Article 7, each Participant may make
Before-Tax Contributions and/or After-Tax Contributions in an
aggregate amount equal to a whole percentage not less than 1
percent nor greater than 16 percent (or, for Plan Years beginning
after December 31, 2001, not less than 1 percent nor greater than
20 percent) of his Compensation for each Plan Year.
(2) Amount Matched. Prior to January 1, 2002, the Employer shall
provide Matching Contributions equal to 50 percent of the first 6
percent of each Participant's Compensation contributed for each
payroll period, whether Before-Tax or After-Tax or both, unless
an Addendum provides otherwise. Any Employee Contributions above
6 percent of Compensation for a payroll period will not receive
Matching Contributions.
Effective January 1, 2002, the Employer shall provide Matching
Contributions for each payroll period equal to the sum of (i) 100
percent of the first 3 percent of Compensation contributed during
the payroll period as a Before-Tax Contribution and (ii) 50
percent of the next 2 percent of Compensation contributed during
the payroll period as Before-Tax Contributions. Any Before-Tax
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Contributions above 5 percent and any After-Tax Contributions
will not receive Matching Contributions.
Additionally, effective January 1, 2002, and subject to the
limitations stated above, the Company shall provide an additional
"true up" Matching Contribution for the Plan Year equal to the
difference (if any) between (i) the sum of 100 percent of the
first 3 percent, and 50 percent of the next 2 percent, of
Compensation contributed on behalf of the Participant as
Before-Tax Contributions for the entire Plan Year and (ii) the
amount of Matching Contributions made throughout such Plan Year
on a pay period by pay period basis. This "true up" Matching
Contribution shall 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" Company Matching Contributions will be invested
in the Investment Elections that are current at the time the
"true-up" Company Matching Contributions are made. In no event
will adjustments to the "true-up" Company Matching Contributions
be made to reflect any changes in investment performance that
occur prior to the date such "true-up" Company Matching
Contribution is actually made.
(3) Limitations on Amount. The amount of the Participant's
Contributions may be limited for any Plan Year to avoid exceeding
the Dollar Limit described in Section 7.1, the ADP Test and/or
the ACP Test described in Section 7.2, and/or the annual addition
limitations described in Section 7.3. The Participant in the HCE
Group who has his Contributions limited under Article 7 may have
a fractional percentage of his Compensation deducted for the Plan
Year, instead of the whole percentages described in Subsections
(a)(1) and (2).
(4) Special Pay. To the extent that the payroll system fails to
identify as eligible Compensation items of special pay such
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as those relating to changes in status (terminations, transfers,
etc.) and payroll corrections, elections will not apply to such
pay.
(b) Make up Contributions After Military Leave.
(1) Employee Contributions. If an eligible Employee who is reemployed
by his Employer following a period of "qualified military
service" (as defined in Code Section 414(u)(5)), but before such
Employee's reemployment rights expire under applicable federal
law pertaining to veteran's reemployment rights, such Employee
may elect (in a manner prescribed by the Committee) to have the
Employer make Before-Tax Contributions and/or After-Tax
Contributions on the Employee's behalf for the period of
qualified military service. These contributions shall not exceed
the maximum amount of Before-Tax and/or After-Tax Contributions
that such Employer would have been permitted to make on behalf of
such Employee under Code Sections 402(g), 404(a), and 415 during
such Employee's period of qualified military service assuming the
Employee:
(A) had continued to be employed by such Employer during the
period of qualified military service; and
(B) received Compensation from such Employer equal to:
(i) the Compensation the Employee would have received
during this period if the Employee were not in
qualified military service, based on the rate of pay
the Employee would have received from the Employer but
for the absence; or
(ii) if the Compensation the Employee would have received
during the period is not reasonably certain, the
Employee's average Compensation from the Employer
during the 12 month period immediately preceding the
period of qualified military service (or, the period of
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employment immediately preceding the period of
qualified military service, if shorter).
Contributions made on behalf of an Employee under this Subsection
(b) shall be made during the period, which begins on the date of
reemployment. This period shall last for (i) a period that is
three times the period of qualified military service or (ii) five
years, whichever is shorter.
The amount of contributions that may be made on an Employee's
behalf under this Subsection (b)(1) shall be adjusted to reflect
any contributions actually made by such Employee under the Plan
during the period of qualified military service.
(2) Matching Contributions. An Employer shall make Matching
Contributions on the additional contributions made under
Subsection (b)(1) which would have been required had such
contributions actually been made during the period of qualified
military service. These Matching Contributions shall not exceed
the maximum amount of Matching Contributions that would have been
permitted under the limitations of Code Sections 404(a) and 415
during the Employee's period of qualified military service.
(3) Limits on Contributions. Contributions under Subsections (b)(1)
and (b)(2) above shall not be subject to any otherwise applicable
limitation contained in Code Section 402(g), 404(a), or 415, and
shall not be taken into account in applying such limitations to
other contributions or benefits under the Plan or any other plan
maintained by the Company or a Controlled Group member for the
Plan Year in which such contributions are made. Any such
contributions shall not be taken into account, either for the
Plan Year in which they are made or for the Plan Year to which
they relate, for purposes of Code Sections 401(a)(4), 401(a)(26),
401(k)(3), 401(k)(11), 401(k)(12), 401(m), 410(b), and 416.
(4) Earnings and Forfeitures. This Subsection (b) shall not be
construed to require the crediting of earnings to a Participant's
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Account for any contribution before such contribution is actually
made or the allocation of any forfeiture before required with
respect to a Participant's period of qualified military service.
(c) Vesting. All Employee Contributions and all earnings allocated to
Employee Contribution Accounts will be fully vested at all times.
(d) Election to Contribute. The Recordkeeper will make available an
interactive telephone system for Participants to make their
Contribution elections, called the Voice Response Unit (VRU), and, if
available, an Internet Website. The Committee and/or Recordkeeper will
confirm the elections by a Participant Identification Number (PIN).
Effective November 1, 1997, Participants can make Contribution
elections on any Valuation Date. The Recordkeeper will effect all
elections to contribute, modify or revoke an election, as soon as
administratively possible.
(1) Initial Automatic Election. Effective November 1,1997, beginning
on the date each new Participant enters the Plan under Section
2.1, the Employer will automatically deduct 2 percent of his
Compensation as a Before-Tax Contribution, unless he has timely
submitted an election to contribute a greater or lesser percent,
or not to contribute. The Employee who does not begin
contributing as of the date when he is first eligible, may elect
to begin contributing as of any Valuation Date. Each election,
including an initial automatic election, will remain effective
until the Participant modifies or revokes his election, or ceases
to be an Employee. The elected percentage will apply to increased
or decreased Compensation.
(2) Modification. The Participant who has elected to contribute a
percentage of his Compensation may modify his election as of any
Valuation Date by submitting a new election to have a higher or
lower percentage deducted from his Compensation.
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(3) Revocation. The Participant may revoke his election to contribute
as of any Valuation Date.
(4) New Election. The Participant who has modified or revoked his
election may make a new election as of any Valuation Date. Each
modification or revocation will remain effective until a new
election is properly made.
(5) Committee Regulations. The Committee may from time to time
establish and uniformly apply rules governing elections,
including rules regarding the frequency with which elections may
be modified or revoked.
3.2 Employer Contributions.
(a) Company Matching Contribution. Except in Plan Years when the Board
designates a different percentage, each Employer will make a Matching
Contribution in accordance with Section 3.1(a)(2) for each payroll
period during the Plan Year. Such Matching Contribution will be
invested in the same Accounts and in the same percentages as elected
by each Participant. In the event the Board designates a Matching
Contribution other than the amounts described in Section 3.1(a)(2),
the Committee will communicate the designated percentage to Employees
early enough to permit them to modify their elections before the
beginning of the Plan Year in which the lesser percentage takes
effect. No Participant will receive a Matching Contribution for any
pay period that exceeds the amounts described in Section 3.1(a)(2).
(b) Corrective Contribution. In each Plan Year in which the Plan has
Excess ADP Contributions and/or Excess ACP Contributions, the
Committee may, in its discretion and in lieu of the
refunds/distributions/forfeitures described in Subsection 7.2(e),
require the affected Employer(s) to make a Corrective Contribution in
the amount necessary to satisfy the ADP Test and/or ACP Test. The
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Committee will cause each Corrective Contribution to be allocated by
one of the following methods, and may select the group(s) of NHCEs to
whom the Contributions will be allocated and the percentages allocated
to each group (for example, the entire Contribution may be allocated
to the lowest-paid 10 percent of NHCEs):
(1) Qualified Matching Contributions (QMACs). The Committee may
direct each affected Employer to make a Corrective Contribution
to match a percentage of the Before-Tax Contributions made by
certain NHCE Participants for the Plan Year, in addition to the
Matching Contribution described above in Subsection (a), in the
amount necessary to meet the ADP Test and/or ACP Test for the
Plan Year. The Committee may direct uniform or non-uniform
percentages for each selected NHCE Participant, at its
discretion.
(2) Qualified Non-elective Contributions (QNECs). The Committee may
direct each affected Employer to make a Corrective Contribution
in an amount equal to a percentage of the Compensation earned by
selected NHCE Participants for the Plan Year, in addition to the
Matching Contribution described above in Subsection (a), in the
amount necessary to meet the ADP Test and/or ACP Test for the
Plan Year. The Committee may direct uniform or non-uniform
percentages for each selected NHCE Participant, at its
discretion.
(3) Fixed-Dollar Method. The Committee may determine the amount of
the Corrective Contribution needed to satisfy the ADP Test and/or
ACP Test for the Plan Year, and may allocate those dollars among
selected NHCE Participants on the basis of performance or by any
method selected by the Committee, in its discretion.
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(c) Make-Up Contributions After Military Leave. Each Employer will make
special Matching Contributions for each of its Participants who
returns to Employment from unpaid military leave to the extent
required under Subsection 3.1(b).
(d) Discretionary Contributions. The Employers may make cash and/or
Company Stock Contributions for any Plan Year, which are neither
Matching Contributions nor QNECS nor QMACs. The Recordkeeper will
allocate the Discretionary Contribution as of the last day of the Plan
Year for which it is made, to each Employee who is in Employment as of
that date, in proportion to the ratio that his Compensation bears to
the aggregate Compensation of all Participants for the Plan Year. Each
Participant will receive an allocation whether or not he has made any
Employee Contributions to the Savings Plan for that Plan Year.
(e) Vesting. For a Participant who is credited with at least one Hour of
Service on or after November 1, 1997, but who does not earn any Hours
of Service after December 31, 2001, the Vested Percentage in his
Matching Contributions Account shall be 50 percent after the
Participant completes one Year of Service and 100 percent after the
Participant completes two Years of Service. However, notwithstanding
the above, any such Participant's Vested Percentage shall be 100
percent if his Termination Date occurs (i) after he attains age 55; or
(ii) on account of death or Disability. The Vested Percentage for a
Participant who is credited with an Hour of Service on or after
January 1, 2002 shall be 100 percent. The Participant will be fully
vested in his Paysop and Discretionary Account balances at all times.
(f) Vested Balance of Rehired Participant. If a Participant who is
partially vested in his pre-2002 Company Matching Contributions
terminates Employment and receives a cashout of his vested Company
Matching Account balance, then resumes Employment before he has a
Five-Year Break in Service and receives additional allocations, the
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Committee thereafter will determine the amount of his vested Company
Matching Account balance by the following steps: (1) add the amount of
the cash-out to his reinstated balance, plus any allocations after he
resumed Employment; (2) apply his vested percentage (taking into
account pre-Break in Service Employment) to the aggregated balance;
then (3) subtract the cash-out amount. The Committee will use this
method to prevent the rehired Participant from having a larger vested
balance than he would have had if he had not received the cash-out.
These steps will not be necessary for the Participant who has repaid
his cashout.
(g) Forfeiture. If a Participant's Vested Percentage is less than 100
percent upon his or her Termination Date, the nonvested portion of the
Participant's Account shall be forfeited by the Participant as of:
(1) the Participant's Termination Date, if the Participant's Vested
Percentage is 0 percent; or
(2) the earlier of the date on which the Participant (i) receives a
complete distribution of the entire vested balance in his
Accounts or (ii) incurs a Five-Year Break in Service.
Any forfeitures under this Subsection 3,2(g) shall be used to
defray reasonable administrative costs, to restore previous
forfeitures to the Accounts of reemployed Participants under
Subsection 3.2(h) below, and/or to reduce future contributions
required by the Employer under this Section 3.2, as determined by
the Committee in its sole and absolute discretion.
(h) Reinstatement of Forfeitures. This Subsection 3.2(h) applies only to a
Participant who experienced a forfeiture under Subsection 3.2(g).
(1) Received Distribution. If a terminated Participant who receives a
distribution after his Termination Date incurs a forfeiture under
-32-
Subsection 3.2(g), and is reemployed by the Company or a
Controlled Group member before incurring a Five-Year Break in
Service, the portion of the Account forfeited under Subsection
3.2(g) shall be restored to the Participant's Account only if he
repays to the Plan the full amount of the previous distribution.
This repayment must be made within five years after the date on
which the Participant resumes Employment. (Forfeitures restored
under this Subsection 3.2(h)(1) shall be adjusted for gains and
losses in accordance with the investment election the Participant
had in effect when the forfeiture occurred, provided such
Participant (i) had a Vested Percentage greater than 0 percent
and (ii) received a distribution that was less than his entire
vested balance. Otherwise, the forfeitures shall be restored
without adjustment for earnings.)
(2) No Distribution. If a terminated Participant who does not receive
a distribution after his Termination Date incurs a forfeiture
under Subsection 3.2(g), and is reemployed by the Company or a
Controlled Group member before incurring a Five-Year Break in
Service, the portion of the Account forfeited under Subsection
3.2(g) shall be restored when the Participant resumes Employment.
(Forfeitures restored under this Subsection 3.2(h)(1) shall be
adjusted for gains and losses in accordance with the investment
election the Participant had in effect when the forfeiture
occurred, provided such Participant (i) had a Vested Percentage
greater than 0 percent and (ii) received a distribution that was
less than his entire vested balance. Otherwise, the forfeitures
shall be restored without adjustment for earnings.)
(3) Five-Year Break. If a terminated Participant is not reemployed by
the Company or a Controlled Group member before incurring a
Five-Year Break in Service, amounts forfeited under Subsection
3.2(g) shall not be restored to the Participant's Account under
any circumstances.
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(i) Exclusive Benefit of Participants. All Employer Contributions will be
irrevocable when made and will not revert to the Employers, except as
provided in Subsection (l) below. All Employer Contributions and
attributable earnings will be used for the exclusive benefit of
Participants and their Beneficiaries and for paying the reasonable
expenses of administering the Plan.
(j) Contributions Limited to Tax Deductible Amounts. Notwithstanding any
provision in this Plan to the contrary, in no event shall an Employer
make Before-Tax Contributions or Employer Contributions in any Plan
Year that are greater than the maximum amount that is currently
deductible under Code Section 404 for such Plan Year. Contributions in
excess of this limit shall be returned to the Employers in accordance
with Subsection 3.2(l) below.
(k) Payment to the Trustee. Each Employer will transfer to the Trustee,
within 15 business days after the end of each month, the Employee
Contributions withheld for all of its Participants during the payroll
periods ending in that month. Each Employer will transfer its Employer
Contributions to the Trustee as soon as practicable after they are
made, but no later than the extended due date of the Employer's
federal income tax return for the fiscal year that ends in the Plan
Year for which the Contribution is made.
(l) Return of Employer Contributions. Employer Contributions will be
returned to the affected Employer(s) under the following
circumstances:
(1) Mistake of Fact. Employer Contributions made by a mistake of fact
will be returned to the affected Employer(s), reduced by the
amount of any losses thereon, within one year after the date of
payment.
(2) Nondeductible. All Employer Contributions are conditioned upon
their deductibility under Code Section 404 and will be returned
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to the affected Employer(s), to the extent disallowed and reduced
by the amount of any losses thereon, within one year after any
such disallowance.
3.3 Rollover Contributions.
(a) Eligible Rollover Distribution. An Employee may contribute under
Section 3.3 (or elect the direct transfer of) cash amounts
attributable to an eligible rollover distribution under Code Section
402(c), 403(a)(4), or 408(d)(3). These amounts, which may be
contributed before the Employee satisfies the Eligibility period under
Section 2.1, shall be allocated to the Employee's Rollover
Contributions Account. Effective January 1, 2002, the reference to
Code Section 402(c) shall be treated as referring to Code Section
402(c) as amended by the Economic Growth and Tax Relief Reconciliation
Act of 2001 (including, but not limited to, the provisions that permit
the rollover or direct transfer of after-tax contributions).
(b) Required Information. The Committee will adopt such procedures, and
may require such information from the Employee who desires to make a
Rollover Contribution, as it considers necessary to determine whether
the proposed rollover or direct plan transfer will meet the
requirements of this Section. Upon approval by the Committee, the
Rollover Contributions will be deposited in the Trust Fund and will be
credited to the Employee's Rollover Contribution Account.
(c) Refund of Prohibited Rollovers. In the event the Committee discovers
that a Participant has made a Rollover Contribution to the Plan that
fails to comply with this Section, the Committee will refund the
Contribution and all earnings attributable to it as soon as
practicable.
(d) Reliance on Participant's Representations. The Committee will rely in
good faith on the representations made by the eligible Employee in his
-35-
application to make a Rollover Contribution and will not be held
accountable for any misrepresentation of which it did not have actual
knowledge.
3.4 Purchase and Sale of Company Stock. Pursuant to directions from the
Committee, the Trustee may purchase Company Stock from any source, but
may not pay more than Fair Market Value for any share. The Trustee may
purchase outstanding shares, newly issued shares, or treasury shares.
To the extent that the Trustee needs to obtain cash for distributions
under Article 5, the Trustee may sell Company Stock on the New York
Stock Exchange or to any Employer.
ARTICLE 4
Allocations
4.1 Adjustments to Account Balances.
(a) Regular Valuation Dates. As of each Valuation Date, the Trustee will
determine the Fair Market Value of the Trust Fund and the value of
each Participant Account. As soon as practicable after the
Recordkeeper receives the Employer's payroll data and other relevant
records, the Trustee will adjust each Participant's Account balances
to reflect his allocations of Contributions, payments from his
Accounts, investment gains or losses, and expenses.
(b) Recordkeeping Fee. The Recordkeeper will deduct a recordkeeping fee in
the amount set forth in the Schedule of Administrative Fees under
Addendum C as in effect from time to time, pro rata from each of the
Participant's Accounts and from the investment funds in which his
Accounts are invested.
(c) Dividends. If the Company Stock has been allocated to Participant
Accounts, the Committee will allocate cash and/or whole and fractional
-36-
shares of Company Stock to such Accounts having a Fair Market Value
equal to the dividends issued on that Company Stock.
Effective January 1, 2002, the Committee may establish procedures that
will permit the Participant (or Beneficiary) to elect, with respect to
dividends paid after January 1, 2001 on shares of Company Stock held
in the ESOP and that are allocated to the Participant's Account, to
have such dividends (a) either (i) paid directly to the Participant
(or Beneficiary) in cash or (ii) paid to the Plan and then distributed
to the Participant (or Beneficiary) in cash not later than 90 days
after the close of the Plan Year in which such dividends were paid to
the Plan, or (b) paid to Participant's Account and reinvested in
Company Stock.
(d) Valuations Binding. In determining the value of the Trust Fund and
each individual Account, the Trustee and the Committee will exercise
their best judgment and all determinations of value will be binding
upon all Participants and their Beneficiaries.
(e) Statement of Account Balances. As soon as practicable after the end of
each calendar quarter, the Committee will provide to each Participant
and Beneficiary for whom an Account is maintained a statement showing
all allocations to, and distributions and withdrawals from, each of
his Accounts, and the current value of each of his Accounts. For any
Plan Year, the Committee may provide statements more frequently than
quarterly.
(f) Correction of Mistakes. In the event the Committee discovers that a
mistake has been made in an allocation to or distribution from any
Participant's Account balance, or any other mistake that affects an
Account balance, it will correct the mistake as soon as practicable.
If an overpayment has been made, the Committee will seek cash
reimbursement. If an underpayment has been made, the Committee will
-37-
pay the amount of the underpayment in a single sum. The Committee will
treat any other addition to the Account as an expense of the Plan, and
will treat any other subtraction from the Account as a forfeiture and
will use it to reduce the affected Employer's Matching Contributions
for the same or the next Plan Year. To the extent necessary to correct
errors in allocations that result from Contributions, including
Contributions that would have been made except for the error, the
Committee will permit or require adjustments to the Contributions
otherwise described in the Plan, including make-up Contributions,
accelerated Contributions, suspensions of Contributions, and similar
adjustments. If a Participant timely makes an election for Employee
Contributions under Section 3.1 to be effective in a stated payroll
period, but the Committee is unable to effect the election until the
following payroll period, the Committee will treat the Contribution as
if it had been made in the stated payroll period, but will allocate
earnings to the Contribution only from the date when it is actually
made. The Committee will correct all other administrative errors in
the manner that it considers appropriate under the circumstances.
However, if the Committee determines that the burden or expense of
seeking recovery of any overpayment or correcting any other mistake
(except corrections that are necessary to make a Participant or
Beneficiary whole) would be greater than is warranted under the
circumstances, it may in its discretion forego recovery or other
correction efforts. If a mistake in any communication creates a risk
of loss to any Participant or Beneficiary, the Committee will take
reasonable steps to mitigate such risk, such as making de minimus
variances from Plan provisions (including but not limited to medium
and timing of payment), to the extent any such variance would comply
with applicable qualification requirements if it were set forth in a
written provision of the Plan.
4.2 Investment Elections.
(a) Investment Funds. From time to time, the Committee will direct the
Trustee to maintain one or more Investment Funds for the investment of
Accounts, as elected by each Participant. The Committee in its
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discretion may add additional Investment Funds, may delete any
Investment Fund or may change the investment strategy or categories of
permitted investments of any Investment Fund without prior notice to
Participants. One of the Investment Funds, the Sonoco Stock Fund, will
be invested in Common Stock of the Company and cash or cash
equivalents held for liquidity purposes. The Committee will timely
describe the Investment Funds that are available from time to time, in
written notices to Participants. Effective January 1, 2001, each
Participant has the right to diversify the value of the balances in
his Employer Contribution Accounts into one or more of the other
available Investment Funds.
(b) Liquidity. Each fund may hold cash and other liquid investments in
such amounts as the Committee and/or the Trustee consider necessary to
meet the Plan's liquidity requirements and to pay administrative
expenses. The percentage of assets held in each Investment Fund in
cash or cash equivalents may differ from Fund to Fund and from time to
time, as considered appropriate by the Investment Council. The rate of
return of each Investment Fund will be a combination of the short term
earnings (or losses) on the cash portion of the Fund and the earnings
(or losses) of the securities or other investments in which such Fund
is primarily invested, determined in accordance with uniform rules
established by the Investment Council.
(c) Participant Elections. The Committee will make the VRU and the Website
available for Participants to make their investment elections. The
Committee will confirm the elections by Participant PIN numbers.
(1) Initial Election. As of the date he enters the Plan, the
Participant may elect to have the aggregate balances in his
Accounts invested among the Investment Funds in whole, 1percent
increments. Notwithstanding the above, Matching Contributions and
Discretionary Contributions made before January 1, 2001 are
invested automatically in the Sonoco Stock Fund and may be
-39-
transferred from such fund into other Investments Funds only as
permitted under Subsection 4.2(d).
(2) Failure to Elect. The Account balances of any Participant who
fails to timely complete his election will be invested in the
Investment Fund that has the lowest risk of loss.
(3) Change in Investment Election. As of any Valuation Date, the
Participant may elect to change his investment election for the
aggregate balances in his existing Accounts and/or for future
allocations to his Accounts, in 1percent increments. Reinvestment
elections for existing balances will become effective as of the
Valuation Date when made if the Participant completes his
investment election no later than the daily time deadline;
otherwise the election will become effective as of the next
following Valuation Date. The investment elections for future
allocations that are made during each payroll period will become
effective as of the first Valuation Date in the following payroll
period or as soon thereafter as practicable. The Recordkeeper or
the Committee will establish and publish to Participants from
time to time the daily time deadlines by which elections must be
completed. The Plan is intended to satisfy the requirements of
Section 404(c) of ERISA with respect to Participants' investment
elections. To the extent permitted by law, neither the Company,
the Investment Council, the Trustee nor any other fiduciary of
the Plan will be liable for any loss resulting from a
Participant's exercise of his right to direct the investment of
his Accounts.
(4) Insider Trading Rules. The Committee will assist Participants who
are insiders under Rule 16b-3 of Section 16 of the Securities
Exchange Act of 1934, to avoid discretionary transactions that
would trigger the short-swing profit recovery rules.
-40-
(5) Transaction Fee. The Committee reserves the right to direct the
Trustee and/or Recordkeeper to deduct from affected Accounts a
transaction fee, in an amount set forth in the Schedule of
Administrative Fees in Addendum C, for processing each investment
election.
(d) Diversification Elections. Before January 1, 2001, a Participant may
transfer all or a portion of Employer Contributions that have been
invested automatically in the Sonoco Stock Fund under Subsection
4.2(c)(1) at any time after reaching age 55. Effective as of January
1, 2001, each Participant may diversify the existing balances in his
Company Matching Account and Discretionary Account by making
investment elections in one percent increments among the available
investment funds as of any Valuation Date.
(e) Reinvestment of Earnings. Except as otherwise provided in Subsection
4.1(c) above, all dividends, capital gains distributions and other
earnings attributable to the Account balances invested in each
Investment Fund will be reinvested in that Investment Fund.
(f) Investment Expenses. All expenses of each Investment Fund will be paid
from that fund, to the extent not paid directly by the Employers.
(g) Special Election Rules. The Committee may permit (1) investments in
increments greater than or less than 1 percent, (2) other Investment
Funds, (3) other election filing dates, and/or (4) any other variance
from these rules as it considers proper, under regulations adopted by
the Committee, published to Employees, and uniformly applied.
4.3 Voting Rights. Each Participant will have the right to direct the Trustee
as to the manner in which the shares of Company Stock held in his Accounts,
if any, will be voted. The Trustee will vote combined fractional shares
-41-
held by all Participants in the manner that most closely reflects their
direction. The Trustee will vote unallocated shares in the Suspense
Account(s), and shares for which it does not receive voting directions,
proportionately in accordance with the directions of those Participants who
submit timely directions for the voting of their allocated shares.
Instructions by Participants to the Trustee shall be made at a time and in
a manner prescribed by the Committee. Any such instructions shall remain in
the strict confidence of the Trustee. For voting purposes, each Participant
will be a named fiduciary with respect to shares held in his own account.
The Committee will provide to Participants and to the Trustee proxy
materials and other information that is identical to that provided to other
stockholders.
4.4 Tender Offers. In the event the Trustee receives any information or
material that reasonably indicates that a tender offer is being made to
holders of Company Stock, the Trustee will furnish such information or
material to all Participants whose Accounts hold shares of Company Stock,
together with a form on which the Participant can confidentially direct the
Trustee whether to tender his shares or to take any other solicited action
with respect to his shares. Each Participant will be permitted to direct
the Trustee with respect to all, and not less than all, his whole and
fractional shares. Any instructions given by the Participant regarding the
tender of shares of Company Stock allocated to the Participant's Accounts
shall remain in the strict confidence of the Trustee. With respect to
shares for which Participants fail to give directions, the Trustee will act
in accordance with the directions given by Participants who hold the
majority of such shares. Each Participant who sells the shares held by his
Accounts will be permitted to direct the Trustee with respect to the
reinvestment of his proceeds, in accordance with Section 4.2. For purposes
of any tender offer, each Participant will be a named fiduciary with
respect to the shares held in his own Accounts.
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ARTICLE 5
In-service Withdrawals
5.1 General Rules.
(a) Restrictions on Withdrawals from Employer Contribution Accounts. No
Participant may withdraw any amount from his Company Matching Account,
Discretionary Account, or Pre-1990 Matching Account while he is in
Employment.
(b) Available Amount. The amount available to the Participant who makes an
in-service withdrawal will be based on his available Account balances
(minus any outstanding loan balance and restricted Employer
Contribution Account balances) determined as of the last Valuation
Date preceding the withdrawal date.
(c) Order of Withdrawal from Accounts. Except for hardship withdrawals
under Section 5.5 and loans under Section 5.6, each in-service
withdrawal will be made from the Participant's Accounts in the
following order:
(1) After-Tax Contributions made before 1987, without any earnings;
(2) After-Tax Contributions made after 1986 and a pro rata share of
earnings credited to his After-Tax Account both before and after
1986; and
(3) Rollover Contributions with earnings.
(d) Pro Rata Withdrawals from Investment Funds. The Committee will
subtract each in-service withdrawal, including hardship withdrawals
under Section 5.5 and loans under Section 5.6, pro rata from the
investment funds in which the Account balances available for the
withdrawal or loan are invested. The Committee will determine the
amount to be subtracted from each Investment Fund by multiplying the
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amount of the withdrawal by the ratio of the amount invested in each
investment fund to the total aggregate available Account balances.
(e) Frequency of Withdrawal. Each active Participant will be eligible to
make only one in-service withdrawal during each calendar quarter under
Sections 5.2, 5.3 or 5.4, plus any hardship withdrawal he may make
under Section 5.5, and any loan he may make under Section 5.6.
(f) Withdrawal Fee. The Recordkeeper will deduct from the amount of each
withdrawal under Section 5.2 (after-tax), 5.3 (age 59 1/2), 5.4 (age
70 1/2) and 5.5 (hardship), a processing fee in the amount set forth
in the Schedule of Administrative Fees under Addendum C as in effect
from time to time, pro rata from each of the Participant's Accounts
from which the withdrawal is made and from the Investment Funds in
which his Accounts are invested. The Recordkeeper will reflect the
deduction on the statement that it issues with the payment.
5.2 In-service Withdrawal from After-Tax Account and Rollover Contribution
Account. As of any date, but not more frequently than once in each calendar
quarter, each Participant may withdraw all or part of his After-Tax Account
and Rollover Contribution Account, in the order set forth in Subsection
5.1(c). The Participant must make his request using the VRU or the Website,
specifying the amount to be withdrawn. The Committee will pay the
withdrawal to the Participant in a single payment as promptly as
practicable after it approves his request. The minimum amount that may be
withdrawn will be the lesser of $500 or the entire balance in the
Participant's After-Tax Account.
5.3 In-service Withdrawal After Age 59 1/2. At any time after the Participant
reaches age 59 1/2, but no more frequently than once in any calendar
quarter, he may make a request using the VRU to withdraw a specific dollar
amount from his Before-Tax Account. The minimum amount that the Participant
may withdraw is the lesser of $500 or his available Before-Tax Account
balance.
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5.4 Required In-service Withdrawal After Age 70 1/2. For each Participant who
is a 5 percent owner, the Plan will begin in-service payments no later than
April 1 after the year in which he reaches age 70 1/2 , and will make
required annual payments.
5.5 Hardship Withdrawals. The active Participant who wishes to make a hardship
withdrawal during his Employment must submit a written request to the
Committee, specifying the amount to be withdrawn, a full statement of the
reasons for the withdrawal, and such other information as the Committee may
request. The amount withdrawn will be paid to the Participant as promptly
as practicable after the Committee approves his request. Each Participant
may make a hardship withdrawal only once in each calendar quarter.
(a) Available Amount. The amount withdrawn may not exceed the actual
expenses incurred or to be incurred by the Participant because of his
hardship, plus (simultaneously with the withdrawal) the reasonably
estimated amount of taxes and penalties he must pay on the withdrawal.
(b) Order of Withdrawal. The Participant may withdraw his Account balances
in the following order: (1) After-Tax Contributions made before
January 1, 1987, without any earnings; (2) After-Tax Contributions
made after December 31, 1986 and a pro rata share of earnings credited
to his After-Tax Account both before and after 1986; and (3)
Before-Tax Account (excluding earnings allocated to his Before-Tax
Account after 1988).
(c) Immediate and Heavy Financial Need. The Participant may make a
hardship withdrawal only if he incurs a hardship that creates an
immediate and heavy financial need and that he cannot meet without the
withdrawal. A hardship withdrawal must be necessitated by either:
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(1) Medical expenses described in Section 213(d) of the Code incurred
by either the Participant, his Spouse or dependents (as defined
in Section 152 of the Code), or medical care needed in the future
for any such person.
(2) Costs directly related to the purchase of the Participant's
principal residence (including land purchase and all construction
costs and excluding mortgage payments).
(3) Tuition payments, related educational fees, and expenses for room
and board, for the next 12 months of post-secondary education
(including trade and correspondence school) for the Participant,
his Spouse or dependents.
(4) Threatened imminent eviction from, or foreclosure of the mortgage
on, the Participant's principal residence.
(5) Other events that Treasury permits for hardship withdrawals under
the safe-harbor rules.
(d) Withdrawal Necessary to Meet Need. The Committee will treat a
withdrawal as necessary to meet the immediate and heavy financial need
if the following requirements are met:
(1) Amount Needed. The amount withdrawn does not exceed the amount of
the need.
(2) Loans. The Participant has obtained all other available
withdrawals, distributions and nontaxable loans under all
qualified and nonqualified plans maintained by his Employer, if
any. The Participant will not be required to obtain commercial
loans.
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(3) Suspension. After the Participant receives his hardship
withdrawal, the Committee will suspend his Before-Tax
Contributions to this Plan and his contributions to or deferrals
under any other qualified or nonqualified, cash or stock plan
maintained by any Employer, for a period of 12 months (or six
months with respect to a hardship withdrawal that is distributed
after December 31, 2001).
(4) Dollar Limit. The Participant's annual Dollar Limit on his
Before-Tax Contributions described in Section 7.1 for the
calendar year following the calendar year in which he receives
his hardship withdrawal, will be reduced by the amount of the
Before-Tax Contributions he made during the calendar year in
which he receives his hardship withdrawal, with the effect that
the Dollar Limit in effect for the second calendar year will
apply to the two calendar years as if they were a single year.
(However, this Subsection 5.5(d)(4) shall not apply to a hardship
withdrawal made to a Participant after December 31, 2000.)
(d) Nondiscrimination. The Committee will make the determination of
the existence of the Participant's immediate and heavy financial
need and the necessity of the withdrawal to meet the need, in a
uniform and nondiscriminatory manner.
(f) Reliance on Participant's Representations. The Committee will in
good faith rely on the representations made by the Participant in
his application for the hardship withdrawal and will not be held
accountable for any misrepresentation of which it did not have
actual knowledge.
5.6 Loans. The Committee will grant loans in a uniform and nondiscriminatory
manner, subject to the following rules. Since Beneficiaries and retired
Participants who maintain Account balances under the Plan are permitted to
make loans, the term Participant as used in this Section includes
Beneficiaries and retired Participants.
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(a) Application and Eligibility. Each Participant who wishes to make a
loan may request the loan through the VRU.
(b) Loan Origination Fee and Annual Fee. The Recordkeeper will deduct an
origination fee from the proceeds of each loan, in the amount set
forth in the Schedule of Administrative Fees under Addendum C as in
effect from time to time, and will reflect the deduction on the
statement that it issues with the proceeds. The Recordkeeper will also
charge an annual fee for each outstanding loan in the amount set forth
from time to time in the Schedule of Administrative Fees. Upon
origination of the loan, the Recordkeeper will add the annual fees to
the repayment schedule, based upon the term of the loan.
(c) Frequency of Loans. Each Participant will be eligible to have three
outstanding nonresidential loans and one outstanding residential loan
at any one time.
(d) Available Amount. The Participant may request a loan from the
aggregate balances in only those Accounts listed in Subsection 5.6(e).
The total principal amount of the Participant's outstanding loans may
not exceed the lesser of (1) 50 percent of his aggregate Account
balances as of the date the loan is approved, or (2) $50,000. If the
Participant has had an outstanding loan balance during the twelve
months immediately preceding the date of his current loan, the $50,000
cap will be reduced by an amount equal to his highest outstanding
balance minus his current outstanding balance (i.e., his total
principal repayments during the past twelve months). The minimum
amount of each loan will be $1,000.
(e) Order of Withdrawal from Accounts. The Committee will take the loan
proceeds from the Participant's Accounts in the following order: (1)
Before-Tax Account, (2) Pre1990 Matching Account, (3) After-Tax
Account, and (4) Rollover Contribution Account. He may not borrow from
any other Account.
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(f) Interest. Each loan will bear interest at a reasonable rate
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.
(g) Investment of Account Balances. The Committee will treat each loan as
an investment of the Participant's Account balances and will credit
his principal and interest payments to the Accounts from which his
loan proceeds were taken. Principal and interest payments will be
invested according to the Participant's current investment election.
(h) Security. The Committee will treat each loan as an investment of the
Participant's borrowed Account balances. Each loan will be evidenced
by the Participant's signature on the check issued for the loan
proceeds, which will constitute his promissory note to repay the loan
under the rules set forth in the Summary Plan Description and in
written information provided by the Recordkeeper. By such signature,
the Participant will pledge the balances in his Accounts from which
his loan is made, as security for the loan. Residential loans will be
evidenced by a written note.
(i) Term. Each nonresidential loan will be for a term not exceeding 5
years. However, the term may extend up to 20 years if the loan
proceeds are used to purchase the Participant's principal residence,
including land purchase and construction costs (residential loans).
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(j) Repayment.
(1) Payroll Deduction for Active Participant. So long as the
Participant earns Compensation, he must make his loan repayments
by payroll deductions in equal amounts throughout the term of the
loan.
(2) Inactive Participant. The Participant who has an outstanding loan
balance when he terminates, retires, or begins an unpaid leave or
layoff, either may repay his outstanding balance in full, or may
continue to make his scheduled loan repayments, by personal check
or money order. The Beneficiary or retired Participant must make
his scheduled loan repayments by personal check or money order.
Each check or money order must include the fee in the amount set
forth in the Schedule of Administrative Fees under Addendum C,
which the Recordkeeper will charge for processing each manual
repayment. The Participant either may make his repayments
according to the schedule that was in effect before his
Termination Date, or may aggregate his regularly scheduled
repayments into quarterly payments by making one payment for each
calendar quarter during the remainder of his original loan term.
If he makes quarterly payments, the amount of each payment must
equal the total he would have repaid during each quarter if he
had continued repayment through payroll deductions. The retired
Participant or Beneficiary may make his repayments monthly or
quarterly.
(k) Nonpayment. If the Participant or Beneficiary fails to timely repay
his loan, within 90 days after the end of the month in which such
failure occurs, the Committee will declare a default of the entire
outstanding balance, but will not deduct any portion of the defaulted
balance from his Before-Tax Account unless he has terminated
Employment. The Committee will hold the cancelled note in the
Participant's Before-Tax Account from which the loan proceeds were
paid as a non-income-producing investment until his Termination Date,
and will then reduce his Before-Tax Account balance by the amount of
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the defaulted loan balance attributable to that Account, as of the
last day of the month in which his Termination Date occurs.
(l) Suspension of Repayments During Military Leave. Each Participant
may elect to suspend his loan repayments while he is on unpaid
military leave covered under the Uniformed Services Employment
and Reemployment Rights Act of 1994. The five-year maximum
repayment period will be extended by the length of the
suspension. The Plan will not charge interest during the period
of leave.
ARTICLE 6
Post-Employment Distributions
6.1 Payment Events. The Participant or Beneficiary who has a payment event
described in this Section may elect to receive or begin receiving payment
of his Account balances in a form and amount described in Section 6.2 as of
any date on or after the Termination Date, but not later than the Required
Beginning Date under Section 6.3.
(a) Participant's Termination of Employment. Upon a Participant's
termination of Employment for any reason (including Disability) other
than death, such Participant shall be entitled to elect to receive a
distribution of the vested balance of his Accounts at a time, and in a
form, specified in Section 6.2 below.
(b) Participant's Death. If the Participant dies before the complete
distribution of the vested balance of his Accounts, the Beneficiary
designated by the Participant shall be entitled to receive the
remaining portion of the vested balance of the Participant's Accounts
at a time, and in a form, specified in Section 6.2.
6.2 Amount, Form and Timing of Payment. Each payment of a Participant's Account
balances will be subject to the following rules and any other rules adopted
by the Committee from time to time and uniformly applied:
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(a) Application for Payment. The Participant or Beneficiary must apply for
a payment via the VRU or via the Website and must elect either income
tax withholding or a direct rollover. The Committee will direct the
Trustee or other payor to issue the payment as soon as practicable
after the election is made
(b) Time of Payment. Except as otherwise provided in Subsection 6.2(d),
distribution to a Participant may commence as of the earliest
practicable Valuation Date following the Participant's Termination
Date, or any later Valuation Date, as elected by the Participant. In
no event, however, may a Participant delay distribution beyond his
Required Beginning Date, as determined under Section 6.3.
In addition, except as otherwise provided in Subsection 6.2(d),
distribution to a Beneficiary may commence as of the earliest
practicable Valuation Date following the Participant's death, or any
later Valuation Date, as elected by the Beneficiary. In no event,
however, may a Beneficiary delay payment beyond the Beneficiary's
Required Beginning Date, as determined under Subsection 6.3(c) or
6.3(d).
(c) Amount and Forms of Payment. Except as otherwise provided in
Subsection 6.2(d) below, a Participant or Beneficiary who is entitled
to a distribution under this Article 6 may elect to receive payment in
one of the following forms:
(1) Lump sum payment in the amount of his aggregate vested Account
balances as of the date on which the payment is made;
(2) Up to five substantially equal annual installments, each to be in
an amount equal to the aggregate vested Account balances as of
the payment date, divided by the remaining number of payments; or
(3) Installments to be elected on an as-needed basis, not more
frequently than quarterly, in amounts of at least $1,000.
Elections are not required for each quarter. The final
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installment may be less than $1,000 but not less than the
aggregate Account balances.
The Participant or Beneficiary who initially elects installment
payments may elect to receive a lump sum payment of the remaining
Account balances at any time. In addition, if the Participant was
receiving installment payments, but then died before receiving a
complete distribution of his vested Accounts, the Beneficiary may
either continue those installment payments or elect any other form of
payment available under this Subsection 6.2(c).
(d) Automatic Cash-Out. Effective January 1, 1998, and notwithstanding any
other provision in this Article 6, if the vested balance of the
Participant's Accounts does not exceed $5,000 as of the Valuation Date
coinciding with or next following a Participant's Termination Date or
death (as applicable), the Committee will automatically make a cash,
lump sum payment to such Participant (or Beneficiary) as soon as
practicable following such Termination Date or date of death.
(e) Constructive Cash-Out. Regardless of the amount of his Account
balances, each non-vested Participant will be considered to have
received a constructive cashout of his Company Matching Account and
Pre-1990 Matching Account balances as of his Termination Date. In the
event such Participant resumes Employment before he incurs a Five-Year
Break in Service, he will be considered to have repaid his
constructive cash-out as of the date he resumes Employment, and his
Account balances will be reinstated in accordance with Section
3.2(h)(1).
(f) Medium of Payment. The Participant or Beneficiary may elect to receive
his Account balances either entirely in cash, or cash for amounts
invested in funds other than Company Stock. Distributions from the
Sonoco Stock Fund may be made in cash or stock or a combination of
cash and stock. To the extent the distribution of stock results in
fractional shares, any such shares will be paid in cash.
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(g) Distribution Fee. The Recordkeeper will deduct from the amount of each
lump sum payment, or from the first installment payment if that option
is elected, a processing fee in the amount set forth in the Schedule
of Administrative Fees under Addendum C as in effect from time to
time. The Recordkeeper will reflect the deduction on the statement
that it issues with the payment.
(h) Order of Payment from Accounts. The Participant may elect to have each
payment made from his Accounts and/or from the Investment Funds in
which his Accounts are invested, in an order that he specifies. If he
does not specify otherwise, the Recordkeeper will deduct installment
payments pro rata from his Accounts and from the Investment Funds in
which his Accounts are invested. Unless he specifies otherwise, the
Recordkeeper will deduct withdrawals from his After-Tax Account in the
order described in Subsection 5.1(c).
(i) Investment Elections During Installment Period. The Participant or
Beneficiary will be permitted to make investment elections during the
installment period on the same basis as active Participants.
6.3 Required Distribution Rules.
(a) General Rule. Unless the Participant or Beneficiary elects later
payment, the Committee will distribute each Participant's aggregate
Account balances no later than the 60th day after the end of the Plan
Year in which the latest of the following events occurs: (1) the
Participant reaches Normal Retirement Age; (2) the tenth anniversary
of the date the Participant began participating in the Plan; or (3)
the Participant's Termination Date. The failure of a Participant to
consent to a distribution is deemed to be an election to defer
commencement of payment for purposes of the preceding sentence.
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(b) Participant's Required Beginning Date. Any other provision of the Plan
notwithstanding, the Committee will distribute the aggregate vested
Account balances of each inactive Participant no later than the last
day of the calendar year in which he reaches age 70 1/2. The Committee
will make payment in the amount of the aggregate vested Account
balances determined as of the Valuation Date on or preceding the
payment date.
(c) Participant's Death Before Required Beginning Date. If the Participant
dies with an Account balance and before his Required Beginning Date
under Subsection (c), the Committee will ignore any payment made
before the Required Beginning Date for purposes of the Beneficiary's
Required Beginning Date, (i.e., the Committee will treat the
Beneficiary as if the Participant had died before payments began, even
if the Participant had received his first required minimum
distribution before his death). If the Beneficiary is the surviving
Spouse, the Committee will begin payments to the Spouse no later than
the last day of the calendar year in which the deceased Participant
would have reached age 70 1/2, and will calculate each required
minimum distribution on the basis of the Spouse's life expectancy as
recalculated each year.
If the Beneficiary is not the Spouse, the Committee will begin
payments no later than the last day of the calendar year following the
year in which the Participant died and will calculate each required
minimum distribution on the basis of the Beneficiary's life expectancy
as recalculated each year. If the Committee does not begin payments by
such date, the Committee will pay the entire balance no later than the
end of the calendar year that coincides with the fifth anniversary of
the Participant's death.
(d) Participant's Death After Required Beginning Date. If the Participant
dies after his Required Beginning Date, the Committee will pay out his
remaining Account balances in an annual amount at least as great as
the Participant received each year between his Required Beginning Date
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and his date of death, regardless of the identity of his
Beneficiary(s).
(e) Compliance with Code Section 401(a)(9). The intent of this Section is
that the distribution date for each Participant and Beneficiary will
be within the limitations permitted under Code Sections 401(a)(9) and
401(a)(14) and applicable regulations thereunder, including the
minimum distribution incidental benefit requirement of Treas. Reg. ss.
1.401(a)(9)-2. If there is any discrepancy between this Section and
the Code Sections, the Code Sections will prevail. The Plan's detailed
compliance with Code Section 401(a)(9) is set forth in Addendum D.
However, notwithstanding any provision of this Plan to the contrary,
and with respect to distributions under the Plan in calendar years
beginning on or after January 1, 2002, the Plan will apply the minimum
distribution requirements of Code Section 401(a)(9) that were proposed
on January 17, 2001. This provision shall continue in effect until the
end of the last calendar year beginning before the effective date of
final regulations under Code Section 401(a)(9) or such other date
specified in guidance published by the Internal Revenue Service.
6.4 Designation of and Payment to Beneficiaries.
(a) Procedure. Each Participant, with the written consent of his Spouse
(if any), may designate one or more Beneficiary(s) to receive any
balance in his Accounts that may be payable upon his death. The
Participant may change his designation from time to time by filing the
proper form with the Committee, and each change will revoke all his
prior designations. To be effective, each designation or revocation
must be made in writing on a form provided by the Committee and must
be signed and filed with the Committee before the Participant's death.
The Participant may name one or more primary Beneficiaries and one or
more contingent Beneficiaries. If he names more than one Beneficiary,
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he must designate the percentage payable to each. If, upon the
Participant's death, his Spouse has not consented to his Beneficiary
designation or if no designated Beneficiary survives him, the
Committee will direct the payment of his benefits to his surviving
Spouse, if any, or if none then to the Participant's estate.
(b) Waiver of Spouse's Rights. Each married Participant may elect to have
all or any part of his Account balances that would otherwise be
payable to his surviving Spouse in the event of his death, payable
instead to one or more Beneficiary(s) designated under Subsection (a).
Each election must be in writing and (1) must be signed by the
Participant and his Spouse; (2) the Spouse's consent must acknowledge
the effect of the election and that he/she cannot later revoke the
waiver; (3) the Spouse's consent must either specifically approve each
named Beneficiary and the elected form of payment, or must permit the
Participant to name any Beneficiary and elect any form of payment; and
(4) the Spouse's consent must be witnessed by a notary public. Spousal
consent will not be required if the Participant provides the Committee
with a decree of abandonment or legal separation, or with satisfactory
evidence that he cannot obtain consent because he has been unable to
locate his Spouse after reasonable effort. If the Spouse is legally
incompetent, the Spouse's court-appointed guardian may give consent,
even if the guardian is the Participant.
(c) Payment to Minor or Incompetent Beneficiaries. In the event the
deceased Participant's Beneficiary is a minor, is legally incompetent,
or cannot be located after reasonable effort, the Committee will make
payment to the court-appointed guardian or representative of such
Beneficiary, or to a trust established for the benefit of such
Beneficiary, as applicable.
(d) Judicial Determination. In the event the Committee for any reason
considers it improper to direct any payment as specified in this
Section, it may have a court of applicable jurisdiction determine to
whom payments should be made.
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6.5 Payment to the Participant's Representative. If the Participant is
incompetent to handle his affairs at any time while he is eligible to
receive a payment from the Plan, or cannot be located after reasonable
effort, the Committee will make payment to his court-appointed personal
representative, or if none is appointed the Committee may in its discretion
make payment to his next-of-kin for the benefit of the Participant. The
Committee may request a court of competent jurisdiction to determine the
payee.
6.6 Unclaimed Benefits. In the event the Committee cannot locate, with
reasonable effort and after a period of five years, any person entitled to
receive the Participant's Account balances, his balances will be forfeited
but will be reinstated, as required under Treasury Regulations Section
1.401(a)-14(d) or any other applicable law, in the event a valid claim for
benefits is subsequently made. Each Participant and each designated
Beneficiary must file with the Recordkeeper from time to time in writing
his post office address and each change of post office address. Any
communication, statement or notice addressed to a Participant or designated
Beneficiary at his last post office address filed with the Recordkeeper,
or, in the case of a Participant, if no address is filed with the
Recordkeeper, then at his last post office address as shown on the
Company's records, will be binding on the Participant and his designated
Beneficiary for all purposes of the Plan. None of the Company, the
Committee, or the Trustee will be required to search for or locate a
Participant or designated Beneficiary.
ARTICLE 7
Limitations on Contributions
7.1 Excess Deferrals. Each Participant's Before-Tax Contributions for each
calendar year, when aggregated with any other deferrals by the Participant
to any other qualified cash or deferred arrangement maintained by the
Company or a Controlled Group member, may not exceed the Dollar Limit. In
the event any Participant makes Excess Deferrals for any calendar year, the
excess amount will be distributed under the following rules.
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(a) Time of Distribution. In the event a Participant made an Excess
Deferral under this Plan, the Committee will distribute the excess
amount and attributable earnings as soon as practicable after it
discovers the excess. If the Committee is aware of the Excess
Deferral, it will distribute it by no later than April 15 following
the calendar year in which the excess was contributed. The Committee
may distribute Excess Deferrals or attributable income later than
April 15 following the calendar year in which the excess was
contributed, to the extent permitted by the Internal Revenue Service
(the IRS) under a self-correction program or otherwise. In the event
any Excess Deferral is not refunded by April 15 of the calendar year
following the calendar year in which it was contributed, the Excess
Deferral will remain in the Participant's Before-Tax Account until a
distribution event occurs under Articles 5 or 6, unless the IRS
permits earlier distribution.
(b) Reporting Form. When the Committee refunds the Excess Deferral, it
will designate the refund as an Excess Deferral on the appropriate
form published by the Internal Revenue Service so that the Participant
can designate the refund as an Excess Deferral on his income tax
return.
(c) Order of Distributions. The Plan will refund Excess Deferrals before
it refunds any Before-Tax Contributions under Section 7.2 to avoid
failing the ADP Test.
(d) Inclusion in ADP Test. Excess Deferrals made by HCEs will be included
in the ADP Test under Section 7.2 for the Plan Year in which they were
made, whether or not they are refunded in the same or next following
Plan Year. Excess Deferrals refunded to NHCEs by the following April
15 will not be included in the ADP Test. However, Excess Deferrals
that are also Excess Annual Additions and that are refunded under
Subsection 7.3(b)(1) as such, will not be included in the ADP Test.
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(e) Inclusion in Annual Addition. Excess Deferrals made by HCEs and by
NHCEs that are refunded in the same Plan Year or by April 15 of the
next following Plan Year will not be included in their Annual
Additions under Section 7.3. Excess Deferrals that are also Excess
Annual Additions and that are refunded under Subsection 7.3(b) as such
will not be included in the Participant's Annual Additions.
(f) Determination of Earnings. The Committee will use the Plan's normal
method of calculating earnings to determine the amount of earnings
attributable to each Participant's Excess Deferrals.
7.2 Nondiscrimination Tests. The Committee will (a) limit or refund Before-Tax
Contributions for HCEs in any Plan Year to the extent necessary to meet the
ADP Test, (b) limit After-Tax Contributions and/or Matching Contributions
to the Savings Plan for HCEs in any Plan Year to the extent necessary to
meet the ACP Test, and (c) limit Company Matching Contributions for HCEs in
any Plan Year to the extent necessary to meet the ACP Test. Alternatively,
the Committee may direct the Employers to make the Corrective Contributions
described in Subsection 3.2(c). Beginning in 1999, the Committee may
exclude from the ADP and ACP Tests any NHCE who is younger than age 21
and/or has less than one Year of Service.
However, notwithstanding the above, effective for Plan Years beginning on
and after January 1, 2002, (i) the Before-Tax Contributions made on behalf
of Participants under Section 3.1(a) are intended to qualify for the ADP
Test exemption under the "safe harbor" procedure described in Code Section
401(k)(12) and (ii) the Matching Contributions made by the Employers under
Section 3.2(a) are intended to qualify for the ACP Test exemption under the
"safe harbor" procedure described in Code Section 401(m)(11). Accordingly,
the only testing performed under this Section 7.2 for Plan Years beginning
on and after January 1, 2002 shall be the ACP Test on After-Tax
Contributions.
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(a) ADP Test. The Committee will conduct the ADP Test for each Plan Year
to determine whether the Actual Deferral Percentage (ADP) for the HCE
Group and the ADP for the NHCE Group for each Plan Year are within the
maximum disparity described in Subsection (a)(3). The Committee will
conduct the ADP Test by the following steps:
(1) Actual Deferral Ratio (ADR). The Committee will determine the
Actual Deferral Ratio (ADR) for each eligible Employee. An
eligible Employee's ADR for the Plan Year equals (A) the
Before-Tax Contributions made on the Employee's behalf for the
Plan Year, divided by (B) the Employee's Compensation for the
Plan Year (or, in the discretion of the Committee, for the
portion of the Plan Year during which the Employee satisfied the
participation requirements under Article 2, provided that this
alternative is applied uniformly to all eligible Employees for
the Plan Year, and on a reasonably consistent basis from Plan
Year to Plan Year)..
(2) Average Deferral Percentage (ADP). The ADP for the HCE Group is
the average of their individual ADRs, calculated separately for
each Participant in the HCE Group. The ADP for the NHCE Group is
the average of their individual ADR's, calculated separately for
each Participant in the NHCE Group.
However, notwithstanding the above, for Plan Years beginning
after December 31, 2000, the Committee may use the ADRs for the
prior Plan Year (instead of the current Plan Year) when
calculating the ADP for the NHCE Group for the current Plan Year
by making an election at a time, and in a manner, prescribed by
the Secretary of the Treasury. Such an election may be revoked by
the Committee only in accordance with rules prescribed by the
Secretary of the Treasury.
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(3) Maximum Disparity. In no Plan Year will the Average Deferral
Percentage of the HCE Group exceed the greater of:
(A) the ADP of the NHCE Group multiplied by 1.25; or
(B) the lesser of the ADP of the NHCE Group plus 2 percentage
points, or the ADP of the NHCE Group multiplied by 2.
(b) ACP Test. The Committee will conduct the ACP Test to determine whether
the Actual Contribution Percentage (ACP) for the HCE Group and the ACP
for the NHCE Group for each Plan Year are within the maximum disparity
permitted under Subsection (b)(3). The Committee will conduct the ACP
Test separately for the Savings Plan and the ESOP as if the two
components were separate plans. The Committee will conduct the ACP
Test on each component by the following steps:
(1) Actual Contribution Ratio (ACR). For both the ESOP and Savings
Plan components of this Plan, the Committee will determine the
Actual Contribution Ratio (ACR) for each eligible Employee. An
eligible Employee's ACR for the Plan Year equals (A) the sum of
the After-Tax Contributions and/or Matching Contributions made on
the Employee's behalf for the Plan Year, divided by (B) the
Employee's Compensation for the Plan Year (or, in the discretion
of the Committee, for the portion of the Plan Year during which
the Employee satisfied the participation requirements under
Article 2, provided that this alternative is applied uniformly to
all eligible Employees for the Plan Year, and on a reasonably
consistent basis from Plan Year to Plan Year).
Prior to 2001, all Matching Contributions (including any QNECs
and QMACs used to satisfy the ACP Test) are tested under the ACP
Test for the ESOP portion of this Plan and all After-Tax
Contributions are tested under the ACP Test for the Savings Plan
portion of this Plan.
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For 2001, Matching Contributions that are invested initially in
Investment Funds other than the Sonoco Stock Fund, and all
After-Tax Contributions, shall be tested under the ACP Test for
the Savings Plan portion of this Plan. In addition, for 2001,
Matching Contributions that are invested initially in the Sonoco
Stock Fund shall be tested under the ACP Test for the ESOP
portion of this Plan.
Starting in 2002, only After-Tax Contributions that are invested
initially in the Sonoco Stock Fund shall be tested under the ACP
Test for the ESOP portion of this Plan and After-Tax
Contributions invested initially in something other than the
Sonoco Stock Fund shall be tested under the ACP Test for the
Savings Plan portion of this Plan.
(2) Average Contribution Percentage (ACP). The ACP for the HCE Group
will be the average of their individual ACRs, calculated
separately for each Participant in the HCE Group. The ACP for the
NHCE Group is the average of their individual ACRs, calculated
separately for each Participant in the NHCE Group.
However, notwithstanding the above, for Plan Years beginning
after December 31, 2000, the Committee may use the ACRs for the
prior Plan Year (instead of the current Plan Year) when
calculating the ACP for the NHCE Group for the current Plan Year
by making an election at a time, and in a manner, prescribed by
the Secretary of the Treasury. Such an election may be revoked by
the Committee only in accordance with rules prescribed by the
Secretary of the Treasury.
(3) Maximum Disparity. In no Plan Year will the Average Contribution
Percentage of the HCE Group in either the Savings Plan or the
ESOP exceed the greater of:
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(A) the ACP of the NHCE Group multiplied by 1.25; or
(B) the lesser of the ACP of the NHCE Group plus 2 percentage
points, or the ACP of the NHCE Group multiplied by 2.
(c) Multiple Use Prohibited. For Plan Years beginning before January 1,
2002, if the Plan satisfies both the ADP Test and ACP Test using the
alternative limit described in Subsections 7.2(a)(3)(B) and
7.2(b)(3)(B) above, the Plan shall also be subject to the aggregate
limit test described in Treasury Regulation Section 1.401(m)-2(b). If
the Plan fails this aggregate limit test, the Plan Administrator shall
reduce contributions made on behalf of the HCE Group in any manner
that is permitted under Treasury Regulation Section 1.401(m)-2(c).
(d) Correction of Excess ADP Contributions and Excess ACP Contributions.
The Committee will correct any Excess ADP Contribution and Excess ACP
Contribution, under the following rules.
(1) Correction before Excess Contributions are Made. In the event the
Committee determines, before Excess ADP Contributions and/or
Excess ACP Contributions are made, that the Plan will fail to
meet either the ADP Test or the ACP Test or both tests for that
Plan Year, then it will either make the Corrective Contribution
described in Subsection 3.2(c) or limit the Before-Tax
Contributions and/or the Matching Contributions for the HCE Group
by such amount and beginning as of such pay period as it
considers necessary to prevent failing the ADP Test and/or ACP
Test.
(2) Correction after Excess Contributions are Made. In the event the
Committee determines, after the Plan has already received Excess
ADP Contributions and/or Excess ACP Contributions, that the Plan
will fail to meet either the ADP Test or the ACP Test or both
Tests for that Plan Year, it will select one or more of the
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following methods to cure the failure: (A) make the Corrective
Contribution described in Subsection 3.2(c), (B) recharacterize
the amount of the excess from Before-Tax Contributions to
After-Tax Contributions, or (C) refund, distribute and/or forfeit
the excess amounts and attributable earnings for affected HCEs.
The Committee will effect the curative method no later than the
end of the Plan Year following the Plan Year for which the excess
amount was contributed, and if practicable by March 15 of that
Plan Year.
(A) Excess ADP Contributions.
(i) Recharacterization. Effective January 1, 1997, if the
Committee elects to correct Excess ADP Contributions by
recharacterizing Before-Tax Contributions as After-Tax
Contributions, it will recharacterize the Before-Tax
Contributions of HCEs in the order of the dollar amount
contributed, beginning with the HCE with the highest
dollar amount and continuing the recharacterizations,
if necessary, until all HCEs have the same dollar
amount, and then reducing those dollar amounts equally.
(ii) Refund. Effective January 1, 1997, if the Committee
elects to correct the excess by making refunds, it will
determine the dollar amount of the excess to be
refunded by using procedures required under Code
Section 401(k), and will then refund Excess ADP
Contributions to HCEs in the order of the dollar amount
contributed, beginning with the HCE with the highest
dollar amount and continuing the refunds, if necessary,
until all HCEs have the same dollar amount, and then
reducing those dollar amounts equally. The Committee
will first refund unmatched Employee Contributions to
each affected HCE, and will then refund matched
Employee Contributions.
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(B) Excess ACP Contributions. For any Plan Year, the Committee
will forfeit non-vested Matching Contributions attributable
to refunded Employee Contributions. To the extent that
forfeitures (if any) are not sufficient to cure failure of
the ACP Test, the Committee will refund and/or distribute
Excess ACP Contributions to HCEs. Effective January 1, 1997,
the Committee will determine the dollar amount of the excess
After-Tax Contributions to be refunded and/or Matching
Contributions to be distributed, by using procedures
required under Code Section 401(m), and will then refund
and/or distribute the excess amount in the order of the
dollar amount contributed, beginning with the HCE with the
highest dollar amount and continuing the refunds and/or
distributions, if necessary, until all HCEs have the same
dollar amount, and then reducing those dollar amounts
equally.
(3) Determination of Earnings Attributable to the Excess. The
Committee will use the Plan's normal method of calculating
earnings to determine the amount of earnings attributable to each
Participant's allocation of Excess ADP Contributions and/or
Excess ACP Contributions.
(e) Excess Annual Addition. Any Before-Tax Contribution or Employer
Contribution that is an Excess Annual Addition and that is distributed
under Subsection 7.3(b)(1) will not be included in the ADP Test or ACP
Test, as applicable.
7.3 Code Section 415 Limitation. In no event will the Maximum Annual Addition
for any Participant exceed the Code Section 415 Limit described in this
Section.
(a) Applicable Definitions. For purposes of this Section, the following
terms will have the meanings set forth below.
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(1) Annual Addition means the sum of Before-Tax Contributions and
Employer Contributions allocable to each Participant for the
Limitation Year. The Annual Addition includes any Excess ADP
Contributions and Excess ACP Contributions whether or not
corrected under Section 7.2, and excludes (A) Excess Deferrals
timely refunded under Section 7.1, and (B) any Contributions
distributed as Excess Annual Additions under Subsection 7.3(b).
For purposes of determining the Annual Addition, the Committee
will use Fair Market Value for shares of Company Stock.
(2) Compensation means the amount paid by the Employer to the
Participant and reported as taxable income on his Form W2 for the
Limitation Year, plus (beginning in 1998) his Before-Tax
Contributions to this Plan and salary reduction amounts
contributed to any other plan maintained by an Employer under
Code Sections 125, 132(f) or 401(k).
(3) Controlled Group means, for purposes of this Section, all
controlled group members that have at least 50 percent common
ownership, within the meaning of Code Sections 414(b) and 415(h),
which will be considered to be a single employer.
(4) Excess Annual Addition means any allocation of Contributions that
exceeds the Participant's Maximum Annual Addition for the Plan
Year.
(5) Limitation Year means the Plan Year.
(6) Maximum Annual Addition means, for each Participant during each
Limitation Year prior to January 1, 2002, an amount that does not
exceed the lesser of (A) $30,000 as indexed under Code Section
415, or (B) 25 percent of his Compensation for the Limitation
Year. For Limitation Years commencing January 1, 2002, Maximum
Annual Addition means an amount that does not exceed the lesser
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of (A) $40,000 as indexed under Code Section 415, or (B) 100% of
his Compensation for the Limitation Year.
(b) Excess Annual Additions. The Committee will remove from each
Participant's Accounts any allocations that would cause his Annual
Additions for any Plan Year to exceed his Maximum Annual Additions, if
the excess results from a reasonable error in estimating his annual
Compensation, or in determining the amount of Before-Tax Contributions
that he can make under the Dollar Limit described in Section 7.1, or
under other circumstances that the Internal Revenue Service permits.
The Committee will first refund unmatched Employee Contributions, and
will then refund matched Employee Contributions, with attributable
earnings. The Committee will remove the Matching Contribution
attributable to the refund to a suspense account. The Committee will
reallocate the amount in the suspense account to all Participants as
part of their Matching Contribution for the next Plan Year. In the
event the Plan terminates before the suspense account balance is
reduced to zero, the Committee will allocate the remaining balance as
a Discretionary Contribution under Subsection 1.23(a)(2).
(d) Combining of Plans. For purposes of applying the limitations described
in this Section, all defined contribution plans maintained by
Controlled Group members will be treated as a single defined
contribution plan.
(d) Combined Plan Limit. If a Participant participates in both a defined
contribution plan and a qualified defined benefit plan of an Employer
or a Controlled Group member, the sum of the defined benefit fraction
(as defined in Code Section 415(e)(2)) and the defined contribution
fraction (as defined in Code Section 415(e)(3)) shall not exceed 1.0.
In calculating the defined contribution fraction, the Committee may,
in its discretion, make the election provided under Code Section
415(e)(6). Before any contributions are reduced under this Plan, the
benefit under any defined benefit plan shall be reduced to the extent
necessary to ensure that the sum of the defined benefit fraction and
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defined contribution fraction does not exceed 1.0. This Subsection (d)
shall not apply to any Participant whose Termination Date is after
December 31, 1999.
(e) Compliance With Code Section 415. The intent of this Section is that
the maximum benefit payable to each Participant, including those in
pay status, will be exactly equal to the maximum amount permitted
under Code Section 415 for each Plan Year. If there is any discrepancy
between this Section and Code Section 415, then Code Section 415 will
prevail.
7.4 Top-Heavy Rules. The Plan will be top-heavy for any Plan Year if, as of the
last day of the preceding Plan Year under the rules set forth under Code
Section 416, (a) the sum of the cumulative Account balances of Participants
who are key employees exceeds 60 percent of the sum of the cumulative
Account balances of all Participants; or (b) the Plan is part of a required
aggregation group in which more than 60 percent of the sum of aggregated
cumulative Account balances, plus the present values of accrued benefits
under defined benefit plans, have been accumulated in favor of key
employees. Each Participant who is a non-key employee in a top-heavy Plan
Year and who also participates in a defined benefit plan maintained by a
Controlled Group employer, will receive the minimum benefit under the
defined benefit plan required under Code Section 416(c)(1). Each non-key
employee Participant who does not participate in a defined benefit plan,
and who has not terminated Employment as of the last day of the Plan Year,
will receive an allocation of Employer Contributions in an amount not less
than the lesser of 3 percent of his Compensation (whether or not he has
made any Employee Contributions for the Plan Year, and regardless of his
level of Compensation for the Plan Year), or the percentage contributed for
the HCE who receives the greatest percentage for the Plan Year. The Plan's
normal vesting schedule is at all times more generous than the Code Section
416 schedule.
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For Plan Years beginning on and after January 1, 2002, this Section 7.3
shall be applied by following the provisions of Code Section 416 as amended
by the Economic Growth and Tax Relief Reconciliation Act of 2001.
ARTICLE 8
Amendment, Termination and Merger
8.1 Amendment.
(a) Procedure. The Company will have the right to amend the Plan from time
to time by action of the Committee or the Board, as provided under
this Subsection 8.1(a). The Committee will determine that an amendment
is appropriate, and will determine whether the amendment may
significantly alter the Plan's contribution requirements or expense
provisions. The Committee or its agent will draft the amendment. Each
amendment must be approved and executed by a majority of the Committee
members then in office. If the amendment may significantly alter the
Plan's contribution requirements or expense provisions, the Board must
approve it by resolution and a duly authorized officer of the Company
must execute it. Within 30 days after the adoption of each amendment,
the Committee will provide a copy to each Employer.
(b) Prohibited Amendments. The Company will not adopt any amendment that
would have the effect of any of the following:
(1) Exclusive Benefit. No amendment will permit any part of the Trust
Fund to be used for purposes other than the exclusive benefit of
Participants and Beneficiaries, and to defray the reasonable
expenses of Plan administration.
(2) Nonreversion. No amendment will revert to any Employer any
portion of the Trust Fund.
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(3) No Cutback. No amendment will eliminate or reduce any
Participant's vested Account balance accrued before the
amendment, and no amendment will eliminate an optional form of
benefit with respect to a participant who has already made his
election, except as otherwise permitted by law.
(c) Limited to Active Participants. Except as specifically stated in the
amendment, no amendment will apply to any Employee whose Termination
Date occurred before the effective date of the amendment.
(d) Administrative Changes Without Plan Amendment. The Committee reserves
authority to make administrative changes to this Plan document that do
not alter the minimum qualification requirements, without formal
amendment to the Plan. The Committee may effect such changes by
substituting pages in the Plan document with corrected pages.
Administrative changes include, but are not limited to, (1) changes in
the Recordkeeping fees for maintaining Accounts, originating and
servicing loans, processing in-service withdrawals under Article 5,
and processing distributions under Article 6; (2) corrections of
typographical errors and similar errors, (3) conforming provisions for
administrative procedures to actual practice and changes in practice,
and (4) deleting or correcting language that fails to accurately
reflect the intended provision of the Plan. The Committee will timely
notify affected Participants of such changes.
8.2 Termination of the Plan.
(a) Right to Terminate. The Company expects this Plan to be continued
indefinitely but necessarily reserves the right to terminate the Plan
and all contributions at any time, and to terminate the participation
of any Employer at any time, subject to approval by the Board. Each
Employer reserves the right to terminate its participation in the Plan
at any time by appropriate action of its board of directors.
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Participants will cease active participation in the Plan on the first
to occur of the following:
(1) the date on which that Employer ceases to be an Employer by
appropriate action taken by the Company or by such Employer; or
(2) the dissolution, merger, consolidation, reorganization or sale of
that Employer, or the sale of all or substantially all of the
assets of an Employer, except that, subject to the provisions of
Subsection 8.3, with the consent of the Company, in any such
event arrangements may be made whereby the Plan will be continued
by any successor to that Employer or any purchaser of all or
substantially all of that Employer's assets, in which case the
successor or purchaser will be substituted for the Employer under
the Plan.
(b) Full Vesting. In the event of termination, partial termination or a
complete discontinuance of contributions that is determined to be a
termination, of the Plan, the non-vested balance in each affected
Participant's affected Accounts, to the extent funded, will become
fully vested as of the date of termination or partial termination. For
purposes of accelerated vesting, affected Participants will include
only those who are in active Employment as of the Plan termination
date. All non-vested Participants who terminated Employment before the
Plan termination date will be considered to have received constructive
cash-outs of their entire Account balances under Subsection 6.2(e).
(c) Provision for Benefits Upon Plan Termination. In the event of
termination, the Company may either:
(1) continue the Trust for so long as it considers advisable and so
long as permitted by law, either through the existing trust
agreement(s), or through successor funding media; or
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(2) terminate the Trust, pay all expenses, and direct the payment of
the benefits, either in the form of lump-sum distributions,
installment payments, transfer to another qualified plan, or any
other form selected by the Committee, to the extent not
prohibited by law.
8.3 Plan Merger, Transfer of Plan Assets and Liabilities, Acceptance of
Transfers. The Company in its discretion may direct the Trustee to transfer
all or a portion of the assets of this Plan to another defined contribution
plan of the Employers that is qualified under Section 401(a) of the Code
or, in the event of the sale of stock of an Employer or all or a portion of
the assets of an Employer, to a qualified plan of an employer that is not
an Employer. The Committee by written resolution may permit the Plan to
accept a transfer of assets and liabilities to this Plan from another
defined contribution plan that is qualified under Section 401(a) of the
Code, may direct the Trustee accordingly, and may adopt such amendment or
Addendum to the Plan as the Committee considers necessary to reflect the
terms of such transfer, including provision for any protected rights that
may not be eliminated by reason of such transfer under Section 411(d)(6) of
the Code. In the case of any merger or consolidation with, or transfer of
assets and liabilities to or from any other plan, provisions will be made
so that each affected Participant in the Plan on the date thereof would
receive a benefit immediately after the merger, consolidation or transfer,
if the Plan then terminated, which is equal to or greater than the benefit
he would have been entitled to receive immediately before the merger,
consolidation, or transfer if the Plan had then terminated.
8.4 Distribution on Termination and Partial Termination. Upon termination or
partial termination of the Plan, all benefits under the Plan will continue
to be paid in accordance with Sections 5 and 6, as those sections may be
amended from time to time, and in accordance with applicable IRS
regulations.
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8.5 Notice of Amendment, Termination or Partial Termination. Affected
Participants will be notified of an amendment, termination or partial
termination of the Plan as required by law.
ARTICLE 9
Administration
9.1 Delegation of Authority. The Company is the Plan's Sponsor and the Agent
for Service of Legal Process. In exercising its authority to control and
manage the operation and administration of the Plan, the Company may
delegate all or any part of its responsibilities and powers to any person
or persons selected by it. Any such allocation or delegation may be revoked
at any time. The Company has delegated its administrative authority to the
Committee.
9.2 Allocation of Fiduciary Responsibilities. The Plan fiduciaries will have
the powers and duties described below, and may delegate their duties to the
extent permitted under ERISA Section 402. Notwithstanding any other
provision of the Plan, the Plan's fiduciaries will discharge their duties
hereunder for the exclusive purpose of providing benefits to Participants
and other persons entitled to benefits under the Plan; and with the care,
skill, prudence and diligence under the circumstances then prevailing that
a prudent man acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of a like character and with like
aims.
(a) The Board. The Board members' status as Plan fiduciaries, and their
fiduciary duties, will be limited to (1) the adoption of a resolution
that Employees holding certain job titles will serve as Committee
members, (2) the adoption of a resolution that Employees holding
certain job titles will serve as Investment Council members, (3)
approval of any amendment that substantially alters the Plan's
contribution requirements or expense provisions, and (4) termination
of the Plan. To the extent provided in the Board resolution, an
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Employee can serve both as a member of the Committee and as a member
of the Investment Council.
(b) The Company and the Employers. The Company's and each Employer's
status as a Plan fiduciary, and its fiduciary duties, will be limited
to (1) making contributions to the Plan in the amounts determined by
the Committee based on the recommendations of the enrolled actuary,
and (2) executing documents by which the Plan is governed. The Company
reserves the right to terminate the Plan, subject to Board approval.
Officers of the Company will act on its behalf as specified in the
Company's by-laws, and officers of each Employer will act on its
behalf as specified in the Employer's by-laws.
(c) The Committee. The Committee will serve as Plan Administrator, as that
term is defined in Section 414(g) of the Code.
(1) Appointment and Termination of Office. The Committee will consist
of not less than 3 nor more than 7 individuals who, by authority
of the Board resolution described in Subsection (a), will serve
as such by virtue of their job titles. A Committee member will
lose his status as such when he ceases to hold a job title by
virtue of which he is a Committee member. A member may resign at
any time by written resignation from his job title, submitted to
the Company and to the Committee. The successor to such job title
will also be the successor Committee member.
(2) Organization of Committee. The Committee will elect a Chairman
from among its members, and will appoint a Secretary who may or
may not be a Committee member. The Committee may appoint agents
who may or may not be Committee members, as it considers
necessary for the effective performance of its duties, and may
delegate to the agents nondiscriminatory powers and duties as it
considers expedient or appropriate. The Committee will fix the
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compensation of the agents. Employee Committee members will serve
as such without additional compensation.
(3) Committee Meetings. The Committee will hold meetings at least
annually. A majority of the members then in office will
constitute a quorum. Each action of the Committee will be taken
by a majority vote of all members then in office. The Committee
will establish procedures for taking written votes without a
meeting.
(4) Powers and Duties. The Committee will have primary responsibility
for administering the Plan, except for the investment-related
duties reserved by the Investment Council under Subsection (d).
The Committee and the Company Employees and other agents to whom
it delegates non-discretionary duties will have all powers
necessary to enable it to properly perform its duties, including,
but not limited to, the following powers and duties:
(A) Plan Amendments and Rules. The Committee will be responsible
for amending the Plan (subject to the Board's approval to
the extent specified in Subsection (a) above), and for
adopting rules of procedure and regulations necessary for
the performance of its duties under the Plan.
(B) Construction. The Committee will have the power to construe
the Plan, to enforce the Plan in accordance with its terms
and with such applicable rules and regulations it may adopt,
and to decide all questions arising under the Plan.
(C) Individual Accounts. The Committee or its agent will
maintain individual Accounts for each Participant, and will
allocate Contributions, expenses and investment
earnings/losses to the proper Accounts.
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(D) Rights to Benefits. The Committee will have discretionary
authority to (1) determine the eligibility of any individual
to participate in the Plan, (2) determine the eligibility of
any Participant or Beneficiary to receive benefits under the
Plan, (3) determine the amount of benefits to which any
Participant or Beneficiary may be entitled under the Plan,
and (4) enforce the claims procedure described in Section
9.5. Benefits under the Plan will be paid only if the
Committee, in its discretion, decides that the Participant
or Beneficiary is entitled to them.
(E) Employee Data. The Committee will request from the Company
and the Employers complete information regarding the
Compensation and Employment of each Participant and other
facts as it considers necessary from time to time, and will
treat Company and Employer records as conclusive with
respect to such information. The Committee will maintain
records showing the fiscal operations of the Plan.
(F) Payments. The Committee will direct the payment of Account
balances from the Trust, (or may appoint a disbursing
agent), and will specify the payee, the amount and the
conditions of each payment.
(G) Disclosure. The Committee will prepare and distribute to the
Employees plan summaries, notices and other information
about the Plan in such manner as it deems proper and in
compliance with applicable laws.
(H) Application Forms. To the extent that elections and
applications are not executed via the VRU or the Website,
the Recordkeeper or the Committee will provide forms for use
by Participants in making contribution and investment
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elections, in-service withdrawals, and applying for
benefits.
(I) Nondiscrimination Tests. The Committee will monitor the ADP
Test and the ACP Test throughout the Plan Year and will take
any action necessary to ensure that the tests are satisfied
for each Plan Year.
(J) Agents. The Committee may delegate any of its administrative
duties to Company employees and other agents, and may retain
legal counsel, accountants, actuaries, consultants and such
other agents as it considers necessary to properly
administer the Plan.
(K) Financial Statements. The Committee will periodically
prepare reports of the Plan's operation, showing its assets
and liabilities in reasonable detail, and will submit a copy
of each report to the Board and cause a copy to be
maintained in the office of the secretary of the Committee.
(L) Reporting. The Committee will cause to be filed all reports
required under ERISA and the Code.
(d) The Investment Council. The Investment Council will have primary
responsibility for the investment of Plan assets.
(1) Appointment and Termination of Office. The Investment Council
will consist of not less than 3 nor more than 7 individuals, none
of whom will be a Trustee and who, by authority of the Board
resolution described in Subsection (a), will serve as such by
virtue of their job titles. An Investment Council member will
lose his status as such when he ceases to hold a job title by
virtue of which he is an Investment Council member. A member may
resign at any time by written resignation from his job title,
submitted to the Company and to the Investment Council. The
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successor to such job title will also be the successor Investment
Council member.
(2) Organization of Investment Council. The Investment Council will
elect a Chairman from among its members, and will appoint a
Secretary who may or may not be an Investment Council member. The
Investment Council may appoint agents who may or may not be
Investment Council members, as it considers necessary for the
effective performance of its duties, and may delegate to the
agents nondiscriminatory powers and duties as it considers
expedient or appropriate. The Investment Council will fix the
compensation of the agents. Employee Investment Council members
will serve as such without additional compensation.
(3) Investment Council Meetings. The Investment Council will hold
meetings at least annually. A majority of the members then in
office will constitute a quorum. Each action of the Investment
Council will be taken by a majority vote of all members then in
office. The Investment Council may establish procedures for
taking written votes without a meeting.
(4) Powers and Duties. The Investment Council will have primary
responsibility for investment of Plan assets, and all powers
necessary to enable it to properly perform its duties, including
but not limited to the following powers and duties:
(A) Appointment of Trustee. The Investment Council will select
and appoint the Trustee, and may remove and replace the
Trustee from time to time as it considers appropriate. The
Investment Council will determine the portion of Plan assets
to be invested by the Trustee instead of the investment
manager(s).
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(B) Appointment of Investment Managers. The Investment Council
may select and appoint one or more investment managers, as
defined in Section 3(38) of ERISA, from time to time, and
may remove any investment manager at any time. The
Investment Council will determine the portion of Plan assets
to be invested by each investment manager. To the extent it
considers appropriate, the Investment Council will direct
the investment manager(s) regarding the allocation of assets
among investment categories and the maintenance of asset
balancing.
(C) Investment Policy. The Investment Council will maintain and
execute written investment objectives and guidelines.
(D) Investment Funds. To the extent it does not delegate such
authority to the Trustee and/or the investment manger(s),
the Investment Council will determine the Investment Funds
that will be available for the investment of Account
balances. The Investment Council may direct transfers of
Plan assets between the Trustee and/or the investment
managers accordingly.
(E) Investment Performance. The Investment Council will
establish written procedures for reviewing and evaluating
investment performance of the various Investment Funds, and
will regularly review and evaluate the performance of the
investment manager(s) and the Investment Funds.
(F) Records. The Investment Council will maintain records of
investments and will keep in convenient form the investment
data required for communicating with Participants and for
government reports.
(G) Agents. The Investment Council may delegate any of its
non-discretionary duties to Company employees and other
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agents, and may retain legal counsel, accountants,
actuaries, consultants and such other agents as it considers
necessary to properly administer the Plan.
(e) The Trustee(s).
(1) Appointment and Termination. The Investment Council will appoint
one or more Trustees who will have the duties and
responsibilities described in the trust agreement executed by the
Company and each Trustee. The trust agreement will be an integral
part of this Plan.
(2) Powers and Duties. Each Trustee will have all powers necessary to
enable it to properly perform its duties, including but not
limited to the following powers and duties:
(A) The Trustee(s) will hold legal title to Plan assets.
(B) The Trustee(s) will pay expenses and benefits as directed by
the Committee, and will pay investment expenses as directed
by the Investment Council.
(C) The Trustee(s) will perform any investment functions
directed by the Investment Council and/or the investment
manager(s).
(D) Each Trustee will exercise any discretionary investment
authority expressly delegated to it by the Investment
Council.
(E) The Trustee(s) will perform all other duties inherent in
administering the trust, as described in the trust
agreement.
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9.3 Expenses. The Committee will determine, in its sole discretion, whether the
expenses incurred in administering the Plan and Trust will be paid by the
Company or by the Trustee from the Trust Fund. Plan expenses include, but
are not limited to, fees and charges for attorneys, accountants,
consultants, investment managers, and the Trustee, and the salary and
related costs of any person who provides administrative services to the
Plan. The Trustee will pay from the Trust Fund the expenses incurred in
connection with the investment of Plan assets and/or administration of the
Plan. The Committee may direct the Trustee to reimburse the Employers for
expenses they have paid directly on behalf of the Plan. No Employee will
receive any additional Compensation for services performed in connection
with the Plan.
9.4 Indemnification. The Company will indemnify and hold harmless the Committee
and the Investment Council and each member and each Employee to whom the
Committee and the Investment Council has delegated responsibility under
this Article, from all joint and several liability for their acts and
omissions and for the acts and omissions of their duly appointed agents in
the administration of the Plan, except for their own breach of fiduciary
duty and willful misconduct.
9.5 Claims Procedure. The individual(s), committee, corporation or other entity
that the Committee designates from time as being responsible for claims
administration will be identified in the Summary Plan Description by
entity, address and telephone number.
(a) Application for Benefits. Each Participant, or Beneficiary, must
submit a written application for payment, with such documentation as
the claims administrator considers necessary to process the claim.
(b) Decision on Claim. Within 90 days after receipt of a claim and all
necessary information, the claims administrator will issue a written
decision. If the claim is denied in whole or in part, the notice will
set forth (1) specific reasons for the denial and references to Plan
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provisions upon which the denial is based; (2) a description of any
additional information necessary to process the claim; and (3) an
explanation of the Plan's claim review procedure. If special
circumstances require an extension of time, the claims administrator
will furnish the claimant written notice of the extension, and an
explanation why it is necessary, before the end of the initial 90 day
period and the claims administrator shall be given an additional 90
days to provide written notice of its decision.
(c) Appeal. The claimant may appeal an adverse decision by requesting in
writing, within 60 days after he receives the decision, that the
claims administrator review the decision. Or, if the claims
administrator fails to issue a decision, the claimant must submit his
appeal within 150 days after he filed his claim. He may submit a
statement of issues and supporting arguments. He may inspect all
documents that are reasonably pertinent to his case, upon reasonable
notice to the claims administrator, but may not inspect confidential
information concerning any other person. The claims administrator may
set the matter for oral hearing and give the claimant reasonable
notice of the time and place. The claims administrator will proceed
promptly to resolve all issues and issue a written decision, with a
statement of reasons and references to supporting provisions of the
Plan, within 60 days. If special circumstances require an extension of
time, the claims administrator will render a decision as soon as
possible, but not later than 120 days after receipt of the appeal. If
an extension is required, the claims administrator will issue written
notice with an explanation of the circumstances requiring the
extension, before the extension period begins.
ARTICLE 10
Miscellaneous
10.1 Headings. The headings and subheadings in this Plan have been inserted for
convenient reference, and to the extent any heading or subheading conflicts
with the text, the text will govern.
-83-
10.2 Construction. The Plan will be construed in accordance with the laws of the
State of South Carolina, except to the extent such laws are preempted by
ERISA and the Code.
10.3 Qualification for Continued Tax-Exempt Status. Notwithstanding any other
provision of the Plan, the amendment and restatement of the Plan is adopted
on the condition that it will be approved by the Internal Revenue Service
as meeting the requirements of the Code and ERISA for tax-exempt status,
and in the event continued qualification is denied and cannot be obtained
by revisions satisfactory to the Committee, this amendment and restatement
will be null and void.
10.4 Non-alienation. No benefits payable under the Plan will be subject to the
claim or legal process of any creditor of any Participant or Beneficiary,
and no Participant or Beneficiary will alienate, transfer, anticipate or
assign any benefits under the Plan, except that distributions will be made
pursuant to (a) qualified domestic relations orders issued in accordance
with Code Section 414(p), (b) judgments and levies resulting from federal
tax assessments, and (c) agreements between a Participant or Beneficiary
and an Employer under Treasury Regulations 1.401(a)(13)(e) for the use of
all or part of his benefits under the Plan to repay his indebtedness to the
Employer, which amount of benefits will be paid in a lump sum as soon as
practicable after the agreement is executed and will be subject to the
withholding requirements set forth in Section 10.8; and (d) as otherwise
required by law. Effective August 5, 1997, the Committee will offset the
Account balances of any Participant or Beneficiary if required under a
judgment of conviction for a crime involving the Plan, or under a civil
judgment or a consent order, or settlement agreement with a governmental
agency, in an action brought in connection with a violation of fiduciary
duty under the Plan.
10.5 No Employment Rights. Participation in the Plan will not give any Employee
the right to be retained in the employ of any Employer, or upon termination
any right or interest in the Plan except as provided in the Plan.
-84-
10.6 No Enlargement of Rights. No person will have any right to or interest in
any portion of the Plan except as specifically provided in the Plan.
10.7 Direct Rollover.
(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.
(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) the portion of any distribution that is not includible in
gross income (determined without regard to the exclusion for
net unrealized appreciation with respect to employer
securities);
(D) effective January 1, 2000, any withdrawal of Before-Tax
Contributions on account of financial hardship under Section
5.5; and
-85-
(E) effective January 1, 2002, any amount (including amounts
from the After-Tax Account) that is distributed on account
of financial hardship under Section 5.5(c).
Notwithstanding the above, 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 Account. However,
the Participant's After-Tax Account may be transferred only to an
individual retirement account or annuity described in Code
Section 408(a) or (b), or to a qualified defined contribution
plan described in Code Section 401(a) or 403(a) 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.
(2) "Eligible retirement plan" means an individual retirement account
described in Code Section 408(a), an individual retirement
annuity described in Code Section 408(b), an annuity plan
described in Code Section 403(a), or a qualified trust described
in Code Section 401(a), that accepts the distributee's eligible
rollover distribution. Effective January 1, 2002, "eligible
retirement plan" shall also mean an annuity contract described in
Code Section 403(b) and an eligible plan under Code Section
457(b) which 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 which agrees to separately account for
amounts transferred into such plan from this Plan.
Notwithstanding the above, in the case of an eligible rollover
distribution to the surviving Spouse before January 1, 2002, an
eligible retirement plan is an individual retirement account or
individual retirement annuity only.
(3) "Distributee" means an Employee or former Employee. In addition,
the Employee's or former Employee's surviving Spouse and the
Employee's or former Employee's Spouse or former Spouse who is
-86-
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.
(4) "Direct rollover" means a payment by the Plan to the eligible
retirement plan specified by the distributee.
10.8 Withholding for Taxes. Payments under the Plan will be subject to
withholding for payroll taxes as required by law. Beginning in 1993,
each Employer will withhold 20 percent federal income tax from each
"eligible rollover distribution" (as defined in Subsection 10.7(b)(1))
over $200 that is not rolled over directly into another qualified
retirement plan or individual retirement account under Section 10.7.
10.9 Notices. Any notice or document required to be filed with the Company
under the Plan will be properly filed if delivered or mailed, postage
prepaid, to the Company (or its delegate), at its principal executive
offices. Any notice required under the Plan may be waived by the person
entitled to notice.
10.10 Evidence. Evidence required of anyone under the Plan may be by
certificate, affidavit, document or other information that the person
acting on it considers pertinent and reliable, and signed, made or
presented by the proper party or parties.
10.11 Action by Employers. Any action required or permitted to be taken by the
Company will be by resolution of its Board of Directors or a duly
authorized committee thereof, or by a duly authorized officer or
designated representative of the Company.
10.12 Plan Not Contract of Employment. The Plan does not constitute a contract
of employment, and participation in the Plan will not give any Employee
or Participant the right to be retained in the employ of the Employer
nor any right or claim to any benefit under the Plan, unless such right
or claim has specifically accrued under the terms of the Plan.
-87-
10.13 Absence of Guaranty. Neither the Company nor the Trustee in any way
guarantees the assets of the Plan from loss or depreciation, or
guarantees any payment to any person. The liability of the Trustee to
make any payment is limited to the available assets of the Plan held
under the Trust.
10.14 Company's Decision Final. Any interpretation of the Plan and any
decision on any matter within the discretion of the Company made by the
Company (or its delegate) will be binding on all persons. A misstatement
or other mistake of fact will be corrected when it becomes known, and
the Company will make such adjustment on account thereof as it considers
equitable and practicable.
-88-
IN WITNESS WHEREOF, Sonoco Products Company has caused this amendment
and restatement of the Sonoco Savings Plan to be executed by its duly authorized
officer this _____ day of , 2002, to be effective as of January 1, 2001, except
that certain provisions are effective as of other dates stated within each such
provision.
[SIGNATURES OMITTED]
-89-
SONOCO SAVINGS PLAN
ADDENDUM A
HISTORY OF REVISED PLAN PROVISIONS
The following provisions have the same Section headings and numbers as the
corollary Sections in the main text of the Plan, with the prefix "A" to
correspond to this Addendum A. The provisions set forth in this Addendum A were
in effect during the stated periods of the Plan's existence, but have been
revised as set forth in the corollary Sections of the main text of the Plan.
Although revised, these historical provisions may continue to affect the amount
of and/or entitlement to benefits of a Participant or beneficiary whose benefits
are determined after the dates when these provisions were changed, particularly
those Participants who terminated before the effective date of one or more
revisions.
SONOCO SAVINGS PLAN
ADDENDUM A
HISTORY OF REVISED PLAN PROVISIONS
Table of Contents
Page
ARTICLE A-1 DEFINITIONS A-1
A-1.3 Accounts A-1
(a) Employer Contribution Accounts A-1
(b) Employee Contribution Accounts A-1
A-1.42 ESOP A-1
A-1.43 ESOP Matching Account A-1
A-1.54 ESOP Matching Contributions
(or Matching Contributions) A-1
A-1.44 ESOP Effective Date A-1
ARTICLE A-2 ELIGIBILITY A-2
A-2.1 Eligibility A-2
ARTICLE A-3 CONTRIBUTIONS A-2
A-3.1 Employee Contributions A-2
(d) Election to Contribute A-2
A-3.2 Employer Contributions A-2
(e) Vesting A-2
ARTICLE A-1
Definitions
A-1.1 Accounts.
Employer Contribution Accounts. From January 1, 1990 to December 31, 2000, the
ESOP Matching Account meant the Account to record Matching Contributions that
were made in Company Stock under the ESOP.
Employee Contribution Accounts. The following Prior Plan Accounts are maintained
under the affected Participant's After-Tax Account and are used to record
Contributions made before the dates stated below, and to record
gains/losses/expenses which continue to be allocated to the Accounts. The Prior
Plan Accounts are treated as after-tax or before-tax, as applicable:
Baker Manufacturing Company, Inc. Profit Sharing Plan. Each affected
Participant's balance under such Plan as of December 31, 1980 was
transferred to this Plan as of January 1, 1981.
Container Corporation of America Employees Savings Plan. Each affected
Participant's balance under such Plan as of December 31, 1982 was
transferred to this Plan as of January 1, 1983.
Continental Group Inc. Savings Plan. Each affected Participant's
balance under such Plan as of March 31, 1985 was transferred to this
Plan as of April 1, 1985.
Boise Cascade Corporation Savings and Supplemental Retirement Plan.
Each affected Participant's balance under such Plan as of March 31,
1987 was transferred to this Plan as of April 1, 1987.
A-1
ARTICLE A-2
Eligibility
A-2.1 Eligibility. Before November 1, 1997 eligible Employees could begin
participating in the Plan as of the first day of the calendar quarter on or next
following the date when they had completed one Year of Service.
ARTICLE A-3
Contributions
A-3.1 Employee Contributions.
Election to Contribute. Before November 1, 1997, Participants could make
Contribution elections as of the first day of any calendar quarter.
Initial Automatic Election. Before November 1,1997, when the Employers began to
automatically deduct 2 percent of each new Employee's Compensation as a
Before-Tax Contribution, Participants were required to submit an affirmative
election to contribute, beginning as of the first day of any calendar quarter
after they met the eligibility requirements.
Employer Contributions.
(g) Vesting. Before November 1, 1997, the Plan used a 2-to-6 years graded
vesting schedule.
A-2
SONOCO SAVINGS PLAN
ADDENDUM B
QUALIFIED DOMESTIC RELATIONS ORDER PROCEDURES
Table of Contents
Page
1. Determination Whether a Domestic Relations Order is Qualified B-1
2. The Award B-1
3. Identification B-1
4. Awarded Amount B-2
5. Form of Payment and Payment Date B-2
(a) Separate Interest Award B-2
(b) Shared Payment Award B-3
6. Rights of Alternate Payee B-3
7. Investment Elections B-3
8. Alternate Payee's Death B-3
9. Holding Account Balances B-4
10. Notification of Parties B-4
11. Separate Account Until Determination is Made B-4
12. Separate Account After Committee Approves QDRO B-5
13. Notice of Favorable Tax Treatment B-5
14. Fiduciary ResponsibilityB-5
15. Internal Revenue Service Approval of QDRO Procedures B-6
SONOCO SAVINGS PLAN
ADDENDUM B
QUALIFIED DOMESTIC RELATIONS ORDERS PROCEDURES
The Sonoco Savings Plan (the Plan) is required by federal law to pay benefits
earned by a Participant under the Plan to his or her Spouse, former Spouse,
child(ren) or other dependents, to the extent awarded under a Qualified Domestic
Relations Order (a "QDRO"). This law is set forth in Section 414(p) of the
Internal Revenue Code (the "Code"). Each Spouse or dependent who is entitled to
benefits under a QDRO is called an Alternate Payee. The Code requires the Plan
to provide the following procedures to assist eligible individuals to obtain a
QDRO from a state court under the state's domestic relations laws:
1. Determination Whether a Domestic Relations Order is Qualified. The Plan's
Benefits Committee will determine whether a domestic relations order is
qualified under Code Section 414(p), i.e., whether it is a QDRO. The Code
prohibits the Plan from making any payment under any order until the
Committee has determined that it is a QDRO.
2. The Award. A QDRO must award to the Alternate Payee(s) the right to
receive all or part of the benefits that would otherwise be payable to a
Participant under the Plan. The only persons who can be Alternate Payees
or contingent Alternate Payees are the current or former Spouse,
child(ren) or other dependents of the Participant. Under no circumstance
can a QDRO result in the Plan paying a greater amount than it would have
paid to or on behalf of the Participant if the QDRO had not been issued.
3. Identification. The QDRO must clearly state (a) the name of the Plan, and
(b) the name and last known mailing address of the Participant and each
Alternate Payee, unless the Committee has records of the address(es).
B-1
4. Awarded Amount. The QDRO must state the amount or percentage of the
Participant's Account balances to be paid to each Alternate Payee, or a
method to calculate the awarded amount, and the date as of which the Plan
must make the calculation.
5. Form of Payment and Payment Date. The QDRO can award either a separate
interest or a shared interest in the Participant's Account balances. The
forms of payment from the Plan are (a) single lump sum, (b) five
substantially equal annual installments, and (c) installments elected on
an as-needed basis. The awarded amount can be paid in cash and/or in
shares of Sonoco Products Company, Inc. common stock (Company stock) to
the extent that the Alternate Payee's Accounts are invested in Company
stock (see Section 7).
(a) Separate-Interest Award. If the QDRO awards the Alternate Payee a
separate interest in the Participant's Account balances, the Plan
will pay the award in the form specified in the QDRO, or if the
QDRO so provides, in the form elected by the Alternate Payee
within the 90-day election period before the payment date. After
the awarded amount is paid in full, the Alternate Payee will have
no further interest in the Plan. To the extent that the Plan
cannot pay a stock award in whole shares, it will pay the award in
cash.
(1) Current Interest. If the separate interest relates only to
the Participant's Account balances already earned, the
Plan will pay the entire amount awarded in a single lump
sum as soon as practicable after the Committee determines
that the order is a QDRO and calculates the amount of the
awarded benefit, unless the QDRO specifies another form
and time for payment permitted under the Plan.
(2) Future Interest. If the QDRO award includes a portion of
the Participant's Account balances to be earned in the
B-2
future, the Plan will not calculate the awarded amount
until the earlier of the calculation date specified in the
QDRO, or the Participant's distribution date, after which
date no additional amount can accrue in favor of the
Alternate Payee.
(b) Shared Payment Award. A QDRO can grant a shared payment award to a
Spousal or non-Spousal Alternate Payee, in which event payment
will be made on the date(s) elected by the Participant. The Plan
will pay to the Alternate Payee the amount or percentage of each
payment actually made to the Participant, as specified in the
QDRO.
6. Rights of Alternate Payee. The Alternate Payee has the legal status of a
beneficiary under the Plan. The QDRO cannot give the Alternate Payee
certain rights that the Participant has. A QDRO cannot give the Alternate
Payee the right to make a hardship withdrawal, or to name a beneficiary
other than an individual who is the current or former Spouse of the
Participant, or child or other dependent of the Participant.
7. Investment Elections. Unless a QDRO states otherwise, the Committee will
permit the Alternate Payee to direct the investment of the amount awarded
under a separate interest QDRO while it is retained under the Plan. The
Alternate Payee under a shared interest QDRO will have no right to make
investment elections.
8. Alternate Payee's Death. Federal law does not permit any individual to be
awarded the status of an Alternate Payee or contingent Alternate Payee
unless that individual is a Spouse, former Spouse, child or other
dependent of the Participant. Therefore, the QDRO may neither name the
Alternate Payee's beneficiary to receive the awarded benefit in the event
of his/her death before the payment date nor permit the Alternate Payee
to name his or her own beneficiary, unless such contingent Alternate
Payee is also a Spouse, former Spouse, child or other dependent of the
Participant. In the event an Alternate Payee dies before the payment date
B-3
and there is no surviving contingent Alternate Payee, the amount awarded
to the Alternate Payee will revert to the Participant.
9. Holding Account Balances. After the Committee has received written notice
that all or part of a Participant's Account balances are or will become
subject to a QDRO, it will not pay to or on behalf of the Participant any
part of the Account balances to which the notice applies. For example, if
a written notice states that a Spouse or former Spouse has obtained or
will seek to obtain a QDRO for half the Participant's Account balances as
of a stated date, the Committee will not pay that portion of the Account
balance to anyone other than such Alternate Payee unless and until it has
determined that the domestic relations court with jurisdiction over the
matter has not and will not issue a QDRO directing payment to such
Alternate Payee. Between the date when the Committee receives written
notice of a pending QDRO and the date when it approves the QDRO, the
Committee will permit the Participant to continue making investment
elections for all his Account balances, unless the putative Alternate
Payee provides the Committee a written direction concerning investment of
the amount sought to be awarded by the QDRO.
10. Notification of Parties. The Committee will promptly notify the affected
Participant and each Alternate Payee when it receives a domestic
relations order, and will provide a copy of these Procedures to assist
them in obtaining a QDRO. Within a reasonable period after receiving the
order, but no later than 18 months after the payment date specified in
the order, the Committee will determine whether the order is qualified
and will notify the Participant and each Alternate Payee of the
determination. The parties may designate representatives to receive the
notices.
11. Separate Account Until Determination is Made. During any period in which
the issue of the qualified status of a domestic relations order is being
determined, the Committee will separately account for the amounts that
B-4
would have been payable to the Alternate Payee (if any) if the order had
already been determined to be qualified. If within 18 months the
Committee determines the order to be qualified, it will transfer any
required amounts to each Alternate Payee's separate Account under Section
12 below. If the Committee determines that the order is not qualified, it
will merge the separate accountings and will pay benefits to the persons
who would have received them if the order had not been issued. If within
18 months the Committee has not been able to determine whether the order
is qualified, after reasonable effort and due to circumstances beyond its
control, it will merge the separate accountings and will pay benefits to
the persons who would have received them if the order had not been
issued. If after the expiration of 18 months the Committee determines
that the order is qualified, it will apply the determination
prospectively only, and the Plan will not have any liability for failing
to make payment to the Alternate Payee for the period before it
determined that the order is qualified.
12. Separate Account After Committee Approves QDRO. After the Committee
approves a QDRO, it will pay the awarded amount to the Alternate Payee if
the payment date has occurred under Section 5. If the QDRO awards a
separate interest and the payment date has not yet occurred, the
Committee will establish a separate Account for the Alternate Payee and
will transfer the awarded amount into the separate Account as of the date
required under the QDRO. The Committee will allocate all subsequent
investment gains/losses to that Account, using the same method as for
Participants. The Committee will maintain the separate Account until the
payment date.
13. Notice of Favorable Tax Treatment. When the Committee makes a lump sum
payment of the awarded amount to a Spousal Alternate Payee, it will
notify the Alternate Payee that the payment can be rolled over to an
individual retirement account or to another employer's qualified plan.
14. Fiduciary Responsibility. All plan representatives will have an equal
B-5
fiduciary responsibility to the Participant and to the Alternate Payee,
who has the legal status of a beneficiary under the Plan.
15. Internal Revenue Service Approval of QDRO Procedures. The Procedures
stated in this Addendum B to the Plan for payments of Account balances
under QDROs, and restrictions on payments, are conditioned upon approval
by the Internal Revenue Service, and will be revised from time to time to
the extent necessary to maintain such approval.
B-6
SONOCO SAVINGS PLAN
ADDENDUM C
SCHEDULE OF ADMINISTRATIVE FEES
Plan Section Amount of Fee Administrative Service
4.1(b) $ 4.50 qtr./$18 yr. Recordkeeping for allocations to and deductions from Accounts, to be
deducted pro rata from the Participant's Accounts and from the investment
funds in which his Accounts are invested.
4.1(b) $60.00 yr. Annual account fee for the Self-Managed Account. In addition, other
transaction fees may apply depending on the mutual fund(s) selected.
4.2(c)(3) $ 0.00 Transaction fee for processing investment elections.
5.1(f) $25.00 each Processing fee to be deducted from each in-service withdrawal, either
after-tax, age 59 1/2, age 70 1/2or hardship.
5.6(b) $50.00 each Loan origination fee.
5.6(b) $ 0.00 year Annual loan servicing fee.
5.6(j)(2) $15.00 each Loan repayment processing fee for payments made by check or money order,
which the Participant or Beneficiary must add to the repayment amount.
6.2(g) $25.00 Processing fee for post-termination payments, to be deducted from either
the lump sum payment or from the first payment in any series of installment
payments.
The Committee reserves the right to revise this schedule of administrative fees
from time to time as necessary to reflect changes in the amounts charged by the
recordkeeper, without formal amendment.
C-1
SONOCO SAVINGS PLAN
ADDENDUM D
REQUIRED BEGINNING DATE RULES
(This Section intentionally left blank).
D-1
SONOCO SAVINGS PLAN
ADDENDUM E
SONOCO FIBRE DRUM, PITTSBURG, CALIFORNIA
FREIGHT CHECKERS, CLERICAL EMPLOYEES AND HELPERS UNION
The following are provisions that were effective as of April 1, 1985, the date
when Sonoco Products Company acquired the Continental Group, Inc. (the
predecessor employer). The unit covered by this Addendum E was covered by a
predecessor plan that was effective from January 1, 1983 until it was merged
into this Plan effective April 1, 1985. Sonoco Products Company divested the
unit covered by this Addendum E on March 31, 1998. This Addendum E applies only
to Participants who are employed by the Company at any time on and after that
date at the Pittsburg, California plant, and who are members of the Freight
Checkers, Clerical Employees and Helpers Union Local 865, Affiliated with the
International Brotherhood of Teamsters. Each Section of this Addendum is titled
and numbered to track the corollary Section of the main text of the Plan
document, but with the prefix E (to correspond to this Addendum E) to indicate
that the rule(s) stated in that Section apply only to Teamster Union
Participants at the Pittsburg, California plant. To the extent not otherwise
provided in this Addendum E, all provisions of the Plan document will apply to
the Participants covered under this Addendum, except those Plan provisions which
are inapplicable (such as those concerning before-tax and company matching
contributions).
SONOCO SAVINGS PLAN
ADDENDUM E
SONOCO FIBRE DRUM PITTSBURG, CALIFORNIA
FREIGHT CHECKERS, CLERICAL EMPLOYEES AND HELPERS UNION
Table of Contents
Page
ARTICLE E-1 DEFINITIONS E-1
E-1.3 Accounts
E-1
(a) Employer Contribution Account E-1
(b) Employee Contribution Account E-1
E-1.23 Contributions
E-2
(a) Employer Contributions E-2
(b) Employee Contributions E-2
E-1.26 Disability E-3
E-1.31 Effective Date E-3
E-1.33 Employee E-3
E-1.79 Years of Vesting Service (Vesting Service) E-4
(a) Computation E-4
(f) Regular Continuous Service; Break in Service E-4
ARTICLE E-2 ELIGIBILITY E-4
E-2.1 Eligibility E-4
(a) Calendar Year Test E-4
(b) Employment Year Test E-5
ARTICLE E-3 CONTRIBUTIONS E-5
E-3.1 Employee Contributions E-5
(a) After-Tax E-5
E-3.2 Employer Contributions E-6
(a) After-Tax Matching Contribution E-6
(f) Vesting E-6
ARTICLE E-4 ALLOCATIONS E-7
E-4.2 Investment Elections E-7
ARTICLE E-5 IN-SERVICE WITHDRAWALS E-7
E-5.2 In-service Withdrawal from After-Tax Account E-7
E-5.3 In-service Withdrawal from Age 59 1/2 E-7
E-5.5 Hardship Withdrawals E-7
E-5.6 Loans E-7
ARTICLE E-1
Definitions
E-1.3 Accounts.
(a) Employer Contribution Account.
(1) After-Tax Matching Account means the Account to
record the Participant's Matching Contributions for
each payroll period, which (A) will be made in cash,
(B) will be subject to the vesting schedule set forth
in Subsection E-3.2 (e), and (C) cannot be withdrawn
until the Termination Date.
(b) Employee Contribution Account.
(1) After-Tax Account means the Account to record (A) the
amounts which the Employer deducts from the
Participant's Compensation, (any whole dollar amount
up to $12 as his after-tax Basic Contributions, and
any whole dollar amount up to $25 as his after-tax
Supplemental Contributions) and contributes to the
Plan as his After-Tax Contributions under Section 3.2,
and (B) Rollover Contributions which he makes under
Section 3.3 (which are treated as before-tax).
E-1
E-1.23 Contributions.
(a) Employer Contributions.
(1) Matching Contributions means an amount equal to 40
percent of the Basic Contributions made by each
Participant for each payroll period, which the
Employer contributes for each payroll period.
(b) Employee Contributions.
(1) After-Tax Contributions.
(A) Basic Contributions means any whole dollar
amount up to $12, which the Participant
elects to contribute on an after-tax basis
for each weekly pay period, and for which the
Employer makes its Matching Contributions.
(B) Supplemental Contributions means an amount in
effect from time to time as set forth in the
chart below, which the Participant elects to
contribute on an after-tax basis for each
weekly pay period, in addition to his Basic
Contributions, and for which the Employer
does not make any Matching Contributions:
Effective Date Elective Amounts
April 1, 1985 $2, $4, $6, or $8.
November 1, 1985 $5, $10, $15, or $20.
November 1, 1988 Any whole dollar
amount up to $25.
E-2
E-1.26 Disability means a physical or mental impairment incurred while the
Participant is in active Employment, which permanently disables him
from engaging in substantial gainful employment, which has continued
for 5 consecutive months and in the opinion of a physician will be
permanent and continuous for life, and which qualifies him to receive
Social Security disability benefits. However, the impairment must not
have occurred because of the Participant's involvement in military
service, war or similar hostilities, insurrection, rebellion,
revolution, felony, or employment with another employer. The
Participant must submit proof of his Disability to the Committee before
the date on which he incurs a Break in Regular Continuous Service. The
Committee will base its determination on the Participant's physical
condition before the date when he incurs a Break in Regular Continuous
Service and on the evidence submitted, including the results of a
medical examination conducted by a physician chosen by the Committee.
The term Disabled Participant refers to the Participant who has
incurred a Disability.
E-1.31 Effective Date means April 1, 1985, as the initial Effective Date of
this Addendum E, which is the date when the Employer assumed
sponsorship of the Continental Group, Inc. predecessor plan and merged
it into this Plan.
E-1.33 Employee means, for purposes of this Addendum E, an individual (a) who
is regularly employed by the Employer at its Pittsburg, California
location, (b) who has FICA taxes withheld by that Employer, and (c) who
is a member of the Freight Checkers, Clerical Employees and Helpers
Union Local 865, Affiliated with the International Brotherhood of
Teamsters. The group of eligible Employees includes those who are on
approved leaves of absence for which Vesting Service is granted under
Section 1.79. An Employee who is regularly scheduled to work fewer than
1,000 Hours of Service in a Plan Year is treated as a part-time
Employee.
E-3
E-1.79 Years of Vesting Service (Vesting Service).
(a) Computation. For purposes of this Addendum E, non-continuous
partial months are aggregated into whole 30-day months, but if
the remaining days total at least 15, the Participant receives
credit for an additional month. ...
(f) Regular Continuous Service means the period beginning on the
Participant's Employment Date and ending on the date when he
incurs a Break in Regular Continuous Service. The Participant
will incur a Break in Regular Continuous Service as of the
date when he either (1) quits; (2) is discharged (provided
that if he is rehired within 6 months he is not treated as
having had a break); or (3) is absent more than 12 months due
to either layoff, approved leave of absence, physical
disability, or layoff due to permanent plant shutdown with
respect to which he did not elect to receive a severance
allowance. The Plan will continue to credit Vesting Service
after a Break in Regular Continuous Service, to the extent
provided under Section 1.79.
ARTICLE E-2
Eligibility
E-2.1 Eligibility. Each part-time Employee will begin participating in the
Plan on the Entry Date on or next following the date when he has met
one of the following requirements:
(a) Calendar Year Test. If the part-time Employee has worked at
least 1,000 hours in any calendar year, he will begin
participating in the Plan as of the following January 1.
E-4
(b) Employment Year Test. If the part-time Employee has worked at
least 1,000 hours in the year ending on the first anniversary
of his Employment Date, he will begin participating in the
Plan as of the next Entry Date.
ARTICLE E-3
Contributions
E-3.1 Employee Contributions.
(a) After-Tax. For each Plan Year, each Participant may elect the
dollar amount he wishes to defer as After-Tax Contributions,
within the aggregate limitation described in Subsection
3.1(a)(3) of the main text of the Plan.
(1) Amount. Each Participant may elect to make After-Tax
Contributions for each weekly pay period based on the
following schedule:
(A) Basic Contributions in any whole dollar
amount up to $12, for which he will receive
Matching Contributions.
(B) Supplemental Contributions in the amount in
effect from time to time as set forth in the
chart below, in addition to his Basic
Contributions, for which he will not receive
any Matching Contributions:
Effective Date Elective Amounts
April 1,1985 $2, $4, $6, or $8.
November 1, 1985 $5, $10, $15, or $20.
November 1, 1988 Any whole dollar amount
up to $25.
E-5
(2) Amount Matched. Each Participant will receive
Matching Contributions in an amount equal to 40
percent of his Basic Contributions for each payroll
period.
E-3.2 Employer Contributions.
(a) After-Tax Matching Contribution. The Employer will make a
Matching Contribution in cash equal to 40 percent of each
Participant's After-Tax Basic Contributions for each payroll
period during the Plan Year.
...
(f) Vesting. The Participant will become fully vested in his
After-Tax Matching Account on the date he completes 5 Years
of Vesting Service. Regardless of the number of his Years of
Vesting Service, he will become fully vested in his After-Tax
Matching Account either (1) when he reaches Normal Retirement
Age, (2) on his disability retirement date, (3) on his date
of death, (4) on the date when Employer Contributions under
this Addendum E cease, or (5) when he incurs a Break in
Regular Continuous Service as the result of a permanent plant
shutdown.
The 4-years class vesting schedule in effect before the 1989
Plan Year continued to apply to After-Tax Matching
Contributions made before the 1989 Plan Year. Each
Participant who had any Hours of Service under the Plan both
before and after January 1, 1989 received the greater of the
vested percentage he would have received if the previous
vesting schedule had continued to apply, or his vested
percentage under the schedule in effect beginning in 1989.
E-6
ARTICLE E-4
Allocations
E-4.2 Investment Elections. Participants in the unit covered by this Addendum
E are not permitted to make investment elections.
ARTICLE E-5
In-service Withdrawals
E-5.2 In-service Withdrawal from After-Tax Account. During each Plan Year,
each Participant may make one withdrawal from his After-Tax Account, in
any amount up to the entire Account balance. No Participant can make
any withdrawal from his Employer Contribution Account until after his
Termination Date. After a Participant makes a withdrawal, he will not
be permitted to make any Contributions, and will not receive any
allocation of Employer Contributions, for a period of six months
beginning on the date when the Trustee issues the withdrawal check. The
Trustee will issue the check as soon as practicable after it receives
the properly completed application form.
E-5.3 In-service Withdrawal After Age 59 1/2. Participants in the unit
covered by this Addendum E cannot make withdrawals under Section 5.3 of
the main text of the Plan.
E-5.5 Hardship Withdrawals. Participants in the unit covered by this Addendum
E cannot make withdrawals under Section 5.5 of the main text of the
Plan.
E-5.6 Loans. Participants in the unit covered by this Addendum E cannot make
loans under Section 5.6 of the main text of the Plan.
E-7
SONOCO SAVINGS PLAN
ADDENDUM F
SONOCO FIBRE DRUM, PITTSBURG, CALIFORNIA
INTERNATIONAL ASSOCIATION OF MACHINISTS AFL-CIO
The following are provisions that are effective as of April 1, 1985, the date
when Sonoco Products Company acquired the Continental Group, Inc. (the
predecessor employer). The unit covered by this Addendum F was covered by a
predecessor plan that was effective from January 1, 1983 until it was merged
into this Plan effective April 1, 1985. Sonoco Products Company divested the
unit covered by this Addendum F on March 31, 1998. This Addendum F applies only
to Participants who are employed by the Company at any time on and after that
date at the Pittsburg, California plant, and who are members of the
International Association of Machinists AFL-CIO, Richmond Lodge No. 824,
District No. 115. Each Section of this Addendum is titled and numbered to track
the corollary Section of the main text of the Plan document, but with the prefix
F (to correspond to this Addendum F) to indicate that the rule(s) stated in that
Section apply only to IAM Union Participants at the Pittsburg, California plant.
To the extent not otherwise provided in this Addendum F, all provisions of the
Plan document will apply to the Participants covered under this Addendum, except
those Plan provisions which are inapplicable (such as those concerning
before-tax and company matching contributions).
SONOCO SAVINGS PLAN
ADDENDUM F
SONOCO FIBRE DRUM, PITTSBURGH, CALIFORNIA
INTERNATIONAL ASSOCIATION OF MACHINISTS AFL-CIO
Table of Contents
Page
ARTICLE F-1 DEFINITIONS F-1
F-1.3 Accounts F-1
(a) Employer Contribution Account F-1
(b) Employee Contribution Account F-1
F-1.23 Contributions F-1
(a) Employer Contributions F-1
(b) Employee Contributions F-2
F-1.26 Disability F-2
F-1.31 Effective Date F-3
F-1.33 Employee F-3
F-1.79 Years of Vesting Service (Vesting Service) F-3
(a) Computation F-3
(f) Regular Continuous Service; Break in Service F-3
ARTICLE F-2 ELIGIBILITY F-4
F-2.1 Eligibility F-4
(a) Calendar Year Test F-4
(b) Employment Year Test F-4
ARTICLE F-3 CONTRIBUTIONS F-4
F-3.1 Employee Contributions F-4
(a) After-Tax F-4
F-3.2 Employer Contributions F-5
(a) After-Tax Matching Contribution F-5
(e) Vesting F-5
ARTICLE F-4 ALLOCATIONS F-6
F-4.2 Investment Elections F-6
ARTICLE F-5 IN-SERVICE WITHDRAWALS F-6
F-5.2 In-service Withdrawal from After-Tax Account F-6
F-5.3 In-service Withdrawal After Age 59 1/2 F-6
F-5.5 Hardship Withdrawals F-7
F-5.6 Loans F-7
ARTICLE F-1
Definitions
F-1.3 Accounts.
(a) Employer Contribution Account.
(1) After-Tax Matching Account means the Account to
record the Participant's Matching Contributions for
each payroll period, which (A) will be made in cash,
(B) will be subject to the vesting schedule set forth
in Subsection F-3.2(e), and (C) cannot be withdrawn
until the Termination Date.
(b) Employee Contribution Account.
(1) After-Tax Account means the Account to record (A) the
amounts which the Employer deducts from the
Participant's Compensation, (any whole dollar amount
up to $30 as his after-tax Basic Contributions, and
any whole dollar amount up to $10 as his after-tax
Supplemental Contributions) and contributes to the
Plan as his After-Tax Contributions under Section
3.2, and (B) Rollover Contributions that he makes
under Section 3.3 (which are treated as before-tax).
F-1.22 Contributions.
(a) Employer Contributions.
(1) Matching Contributions means an amount equal to 50
percent of the Basic Contributions made by each
F-1
Participant for each payroll period, which the
Employer contributes for each payroll period. Before
May 1, 1991, the Employer contributed 40 percent of
Basic Contributions.
(b) Employee Contributions.
(1) After-Tax Contributions.
(A) Basic Contributions means any whole dollar
amount up to $30, which the Participant
elects to contribute on an after-tax basis
for each weekly pay period, for which the
Employer makes its Matching Contributions.
The maximum Basic Contribution increased
from $12 to $20 effective May 1, 1988, and
increased to $30 effective May 1, 1994.
(B) Supplemental Contributions means any whole
dollar amount up to $10 which the
Participant elects to contribute on an
after-tax basis for each payroll period, in
addition to his Basic Contributions, for
which the Employer does not make Matching
Contributions. The maximum Supplemental
Contribution increased from $8 to $10
effective May 1, 1991.
F-1.26 Disability means a physical or mental impairment incurred while the
Participant is in active Employment, which permanently disables him
from engaging in substantial gainful employment, which has continued
for 5 consecutive months and in the opinion of a physician will be
permanent and continuous for life, and which qualifies him to receive
Social Security disability benefits. However, the impairment must not
have occurred because of the Participant's involvement in military
service, war or similar hostilities, insurrection, rebellion,
revolution, felony, or employment with another employer. The
Participant must submit proof of his Disability to the Committee before
the date on which he incurs a Break in Regular Continuous Service. The
F-2
Committee will base its determination on the Participant's physical
condition before the date when he incurs a Break in Regular Continuous
Service and on the evidence submitted, including the results of a
medical examination conducted by a physician chosen by the Committee.
The term Disabled Participant refers to the Participant who has
incurred a Disability.
F-1.31 Effective Date means April 1, 1985 as the initial Effective Date of
this Addendum F, which is the date when the Employer assumed
sponsorship of the Continental Group, Inc. predecessor plan and merged
it into this Plan.
F-1.33 Employee means, for purposes of this Addendum F, an individual (a) who
is regularly employed by the Employer at its Pittsburg, California
location, (b) who has FICA taxes withheld by that Employer, and (c)
who is a member of the International Association of Machinists
AFL-CIO, Richmond Lodge No. 824, District No. 115. The group of
eligible Employees includes those who are on approved leaves of
absence for which Vesting Service is granted under Section 1.79. An
Employee who is regularly scheduled to work fewer than 1,000 Hours of
Service in a Plan Year is treated as a part-time Employee.
F-1.79 Years of Vesting Service (Vesting Service).
(a) Computation. For purposes of this Addendum F, non-continuous
partial months are aggregated into whole 30-day months, but if
the remaining days total at least 15, the Participant receives
credit for an additional month.
...
(f) Regular Continuous Service means the period beginning on the
Participant's Employment Date and ending on the date when he
incurs a Break in Regular Continuous Service. The Participant
will incur a Break in Regular Continuous Service as of the
date when he either (1) quits; (2) is discharged (provided
that if he is rehired within 6 months he is not treated as
having had a break); or (3) is absent more than 12 months due
F-3
to either layoff, approved leave of absence, physical
disability, or layoff due to permanent plant shutdown with
respect to which he did not elect to receive a severance
allowance. The Plan will continue to credit Vesting Service
after a Break in Regular Continuous Service, to the extent
provided under Section 1.79.
ARTICLE F-2
Eligibility
F-2.1 Eligibility. Each part-time Employee will begin participating in the
Plan on the Entry Date on or next following the date when he has met
one of the following requirements:
(a) Calendar Year Test. If the part-time Employee has worked at
least 1,000 hours in any calendar year, he will begin
participating in the Plan as of the following January 1.
(b) Employment Year Test. If the part-time Employee has worked at
least 1,000 hours in the year ending on the first anniversary
of his Employment Date, he will begin participating in the
Plan as of the next Entry Date.
ARTICLE F-3
Contributions
F-3.1 Employee Contributions.
(a) After-Tax. For each Plan Year, each Participant may elect the
dollar amount he wishes to defer as After-Tax Contributions,
within the aggregate limitation described below in Subsection
3.1(a)(3) of the main text of the Plan.
F-4
(1) Amount. Each Participant may elect to make After-Tax
Contributions for each payroll period in the
following amounts:
(A) Basic Contributions in any whole dollar
amount up to $30, for which he will receive
Matching Contributions.
(B) Supplemental Contributions in any whole
dollar amount up to $10, in addition to his
Basic Contributions, for which he will not
receive any Matching Contributions.
(2) Amount Matched. Each Participant will receive
Matching Contributions in an amount equal to 50
percent of his Basic Contributions (40 percent before
May 1, 1991) for each payroll period.
F-3.2 Employer Contributions.
(a) After-Tax Matching Contribution. The Employer will make a
Matching Contribution in cash equal to 50 percent of each
Participant's After-Tax Basic Contributions for each payroll
period during the Plan Year.
...
(e) Vesting. The Participant will become fully vested in his
After-Tax Matching Account on the date he completes 5 Years of
Vesting Service. Regardless of the number of his Years of
Vesting Service, he will become fully vested in his After-Tax
Matching Account either (1) when he reaches Normal Retirement
Age, (2) on his disability retirement date, (3) on his date of
death, (4) on the date the Employer Contributions under this
Addendum F cease, or (5) when he incurs a Break in Regular
Continuous Service as a result of a permanent plant shutdown.
F-5
The 4-years class vesting schedule in effect before the 1989
Plan Year continued to apply to After-Tax Matching
Contributions made before the 1989 Plan Year. Each Participant
who had any Hours of Service under the Plan both before and
after January 1, 1989 received the greater of the vested
percentage he would have received if the previous vesting
schedule had continued to apply, or his vested percentage
under the schedule in effect beginning in 1989.
ARTICLE F-4
Allocations
F-4.2 Investment Elections. Participants in the unit covered by this Addendum
F are not permitted to make investment elections.
ARTICLE F-5
In-service Withdrawals
F-5.2 In-service Withdrawal from After-Tax Account. During each Plan Year,
each Participant may make one withdrawal from his After-Tax Account,
in any amount up to the entire Account balance. No Participant can
make any withdrawal from his Employer Contribution Account until after
his Termination Date. After a Participant makes a withdrawal, he will
not be permitted to make any Contributions, and will not receive any
allocation of Employer Contributions, for a period of six months
beginning on the date when the Trustee issues the withdrawal check.
The Trustee will issue the check as soon as practicable after it
receives the properly completed application form.
F-5.3 In-service Withdrawal After Age 59 1/2. Participants in the unit
covered by this Addendum F cannot make withdrawals under Section 5.3
of the main text of the Plan.
F-6
F-5.5 Hardship Withdrawals. Participants in the unit covered by this Addendum
F cannot make withdrawals under Section 5.5 of the main text of the
Plan.
F-5.6 Loans. Participants in the unit covered by this Addendum F cannot make
loans under Section 5.6 of the main text of the Plan.
F-7
SONOCO SAVINGS PLAN
ADDENDUM G
CRELLIN, INC.
The following are provisions which are effective as of December 31, 1994 and
which apply only to Participants who were employed by Crellin, Inc. before
Sonoco Products Company acquired that Employer. Effective December 31, 1994,
Sonoco Products Company merged the Crellin, Inc. Investment Plan for Salaried
Employees into this Plan. Effective January 1, 1995, Sonoco extended coverage to
Crellin hourly employees, who had not been covered under the Crellin Plan. Each
Section of this Addendum is titled and numbered to track the corollary Section
of the main text of the Plan, but with the prefix G (to correspond to this
Addendum G) to indicate that the rule(s) stated in that Section apply only to
Crellin Employees.
SONOCO SAVINGS PLAN
ADDENDUM G
CRELLIN, INC.
Table of Contents
Page
ARTICLE G-1 DEFINITIONS G-1
G-1.3 Accounts G-1
G-1.33 Crellin Employee G-1
G-1.79 Years of Vesting Service
(Vesting Service) G-1
G-1.80 Crellin Merger Date G-1
G-1.81 Crellin Plan G-1
ARTICLE G-2 ELIGIBILITY G-1
G-2.1 Eligibility G-1
ARTICLE G-3 CONTRIBUTIONS G-2
G-3.1 Employee Contributions G-2
ARTICLE G-5 IN-SERVICE WITHDRAWALS G-2
G-5.6 Loans G-2
ARTICLE G-6 POST-EMPLOYMENT DISTRIBUTIONS G-2
G-6.2 Amount, Form and Timing of Payment G-2
ARTICLE G-1
Definitions
G-1.3 Accounts. Accounts under the Crellin Plan will be merged into the
Accounts maintained under this Plan which hold the same type of
Contributions.
G-1.33 Crellin Employee means, for purposes of this Addendum G, an individual
who was employed by Crellin, Inc. on the Crellin Merger Date and who
became an Employee of the Company on that date.
G-1.80 Crellin Merger Date means December 31, 1994, the date when the Crellin
Plan merged into this Plan.
G-1.81 Crellin Plan means the Crellin, Inc., Investment Plan for Salaried
Employees, as in effect from January 1, 1984 until the Crellin Merger
Date.
ARTICLE G-2
Eligibility
G-2.1 Eligibility. Before the Crellin Merger Date, Crellin Employees began
participating in the Crellin Plan after they had completed either 3
months of employment or one year of service (an employment year or plan
year during which they earned at least 1,000 hours). Each Crellin
Employee became a Participant in this Plan as of the Crellin Merger
Date.
G-1
ARTICLE G-3
Contributions
G-3.1 Employee Contributions. Crellin Employees were permitted to elect to
begin making Employee Contributions under this Plan beginning as of the
first day of the 1995 Plan Year.
G-3.2 Employer Contributions.
(g) Vesting. Each Crellin Employee's Account balance transferred
from the Crellin Plan (if any) to this Plan, and his Account
balances under this Plan, were fully vested as of the Crellin
Merger Date.
ARTICLE G-5
In-service Withdrawals
G-5.6 Loans. All outstanding loan balances under the Crellin Plan were
transferred to this Plan as of the Crellin Merger Date and were
continued to be repaid to this Plan under the loan agreements that were
executed under the Crellin Plan.
ARTICLE G-6
Post-Employment Distributions
G-6.2 Amount, Form and Timing of Payment. The Crellin Plan provided for the
same forms of payment as those provided under this Plan, lump sums and
installment payments, except that the as-needed installment option
provided under this Plan permits the Participant more flexibility with
respect to the amount and timing of his installment payments.
G-6
SONOCO SAVINGS PLAN
ADDENDUM H
MOLDWOOD PRODUCTS COMPANY
The following are provisions which are effective as of March 1, 1996 (the
"Moldwood Effective Date") and which apply only to Participants who were
employed by Moldwood, Inc. before Sonoco Products Company acquired that
Employer. As of the Moldwood Effective Date, Sonoco Products Company merged the
spun-off account balances for the Moldwood Employees from the Gulf States Paper
Corporation Savings and Investment Plan (the "Gulf States Plan"), into the Plan.
Each Section of this Addendum is titled and numbered to track the corollary
Section of the main text of the Plan document, but with the prefix H (to
correspond to this Addendum H) to indicate that the rule(s) stated in that
Section apply only to Moldwood Employees.
SONOCO SAVINGS PLAN
ADDENDUM H
MOLDWOOD PRODUCTS COMPANY
Table of Contents
Page
ARTICLE H-1 DEFINITIONS H-1
H-1.3 Accounts H-1
H-1.33 Moldwood Employee H-1
H-1.80 Moldwood Effective Date H-1
H-1.81 Gulf States Plan H-1
ARTICLE H-2 ELIGIBILITY H-1
H-2.1 Eligibility H-1
ARTICLE H-3 CONTRIBUTIONS H-1
H-3.1 Employee Contributions H-1
H-3.2 Employer Contributions H-2
ARTICLE H-4 ALLOCATIONS H-2
H-4.2 Investment Elections H-2
ARTICLE H-5 IN-SERVICE WITHDRAWALS H-2
H-5.6 Loans H-2
ARTICLE H-6 POST-EMPLOYMENT DISTRIBUTIONS H-2
H-6.2 Amount, Form and Timing of Payment H-2
ARTICLE H-1
Definitions
H-1.3 Accounts. Accounts under the Gulf States Plan will be merged into the
Accounts maintained under this Plan which hold the same type of
Contributions.
H-1.33 Moldwood Employee. For purposes of this Addendum, a Moldwood Employee
is an individual who was employed by Moldwood, Inc. or who maintained
an account balance in the Gulf States Plan on the Moldwood Effective
Date (and who became an Employee of the Company on that date for all
purposes under the Plan).
H-1.80 Moldwood Effective Date. March 1, 1996, the date when the Moldwood
Employees' Account balances in the Gulf States Plan were spun off and
merged into this Plan.
H-1.81 Gulf States Plan. The Gulf States Paper Corporation Savings and
Investment Plan, as in effect from May 31, 1957 until the Moldwood
Effective Date.
ARTICLE H-2
Eligibility
H-2.1 Eligibility. Each Moldwood Employee became a Participant under this
Plan as of the Moldwood Effective Date.
ARTICLE H-3
Contributions
H-3.1 Employee Contributions. Moldwood Employees were permitted to begin
making Employee Contributions under this Plan beginning as of the
Moldwood Effective Date.
H-1
H-3.2 Employer Contributions.
(e) Vesting. Each Moldwood Employee's Account balance transferred from
the Gulf States Plan to this Plan (if any) and his Account balances
under this Plan, were fully vested as of the Moldwood Effective Date.
ARTICLE H-4
Allocations
H-4.2 Investment Elections. Each Moldwood Employee was permitted to make
investment elections for the Account balance that was transferred for
him from the Gulf States Plan (and merged into his Accounts under this
Plan), under the procedures described in Section 4.2 as of the Moldwood
Effective Date.
ARTICLE H-5
Inservice Withdrawals
H-5.6 Loans. All outstanding loan balances under the Gulf States Plan were
transferred to the Plan as of the Moldwood Effective Date and were
continued to be repaid to the Plan under the loan agreements that were
executed under the Gulf States Plan.
ARTICLE H-6
Post-Employment Distributions
H-6.2 Amount, Form and Timing of Payment. The Gulf States Plan provided for
the same forms of payment as those provided under this Plan, lump sums
and installment payments, except that the as-needed installment option
provided under this Plan permits the Participant more flexibility with
respect to the amount and timing of his installment payments.
H-2
SONOCO SAVINGS PLAN
ADDENDUM I
SPECIALTY PACKAGING GROUP, INC.
The following are provisions which are effective as of January 1, 1997 (the "SPG
Effective Date") and which apply only to Participants who were employed by
Specialty Packaging Group, Inc. ("SPG") before Sonoco Products Company acquired
that Employer. As of the SPG Effective Date, Sonoco Products Company merged the
spun-off account balances for the SPG Employees from the Specialty Packaging
Group, Inc. Employee 401(k) Profit Sharing Plan (the "SPG Plan"), into the Plan.
Each Section of this Addendum is titled and numbered to track the corollary
Section of the main text of the Plan document, but with the prefix I (to
correspond to this Addendum I) to indicate that the rule(s) stated in that
Section apply only to SPG Employees.
SONOCO SAVINGS PLAN
ADDENDUM I
SPECIALTY PACKAGING GROUP, INC.
Table of Contents
Page
ARTICLE I-1 DEFINITIONS I-1
I-1.3 Accounts I-1
I-1.33 Specialty Packaging Employee I-1
I-1.80 SPG Effective Date I-1
I-1.81 Specialty Packaging Plan I-1
ARTICLE I-2 ELIGIBILITY I-1
I-2.1 Eligibility I-1
ARTICLE I-3 CONTRIBUTIONS I-1
I-3.1 Employee Contributions I-1
I-3.2 Employer Contributions I-2
ARTICLE I-4 ALLOCATIONS I-2
I-4.2 Investment Elections I-2
ARTICLE I-5 IN-SERVICE WITHDRAWALS I-2
I-5.6 Loans I-2
ARTICLE I-6 POST-EMPLOYMENT DISTRIBUTIONS I-2
I-6.2 Amount, Form and Timing of Payment I-2
ARTICLE I-1
Definitions
I-1.3 Accounts. Accounts under the SPG Plan will be merged into the Accounts
maintained under this Plan which hold the same type of Contributions.
I-1.33 SPG Employee. For purposes of this Addendum, an SPG Employee is an
individual who was employed by Specialty Packaging Group, Inc. or who
maintained an account balance in the SPG Plan on the SPG Effective Date
(and who became an Employee of the Company on that date for all
purposes under the Plan).
I-1.80 SPG Effective Date. January 1, 1997, the date when the SPG Employees'
Account balances in the SPG Plan were spun off and merged into this
Plan.
I-1.81 SPG Plan. The Specialty Packaging Group, Inc. Employee 401(k) Profit
Sharing Plan, as in effect until the SPG Effective Date.
ARTICLE I-2
Eligibility
I-2.1 Eligibility. Each SPG Employee shall become a Participant under this
Plan in accordance with the terms of the Plan.
ARTICLE I-3
Contributions
I-3.1 Employee Contributions. SPG Employees were permitted to begin making
Employee Contributions under this Plan beginning as of the SPG
Effective Date.
I-1
I-3.2 Employer Contributions.
(e) Vesting. Each SPG Employee's Account balance transferred from
the SPG Plan to this Plan (if any) and his Account balances
under this Plan, were fully vested as of the SPG Effective
Date.
ARTICLE I-4
Allocations
I-4.2 Investment Elections. Each SPG Employee was permitted to make
investment elections for the Account balance that was transferred for
him from the SPG Plan (and merged into his Accounts under this Plan),
under the procedures described in Section 4.2 as of the SPG Effective
Date.
ARTICLE I-6
Post-Employment Distributions
I-6.2 Amount, Form and Timing of Payment. As of the SPG Effective Date, each
SPG Employee's post-employment distribution will be determined in
accordance with the terms of this Plan, as outlined in Section 6.2.
I-2
SONOCO SAVINGS PLAN
ADDENDUM J
HAMILTON HYBAR, INC.
The following are provisions which are effective as of October 1, 1997 (the
"Effective Date") and which apply only to Participants who were employed by
Hamilton Hybar, Inc. before Sonoco Products Company acquired that Employer. As
of the Effective Date, Sonoco Products Company merged the spun-off account
balances for the Hamilton Hybar Employees from the Hamilton Hybar, Inc. 401(k)
Profit Sharing Plan (the "Hamilton Hybar Plan"), into the Plan. Each Section of
this Addendum is titled and numbered to track the corollary Section of the main
text of the Plan document, but with the prefix J (to correspond to this Addendum
J) to indicate that the rule(s) stated in that Section apply only to Hamilton
Hybar Employees.
SONOCO SAVINGS PLAN
ADDENDUM J
HAMILTON HYBAR, INC.
Table of Contents
Page
ARTICLE J-1 DEFINITIONS J-1
J-1.3 Accounts J-1
J-1.33 Hamilton Hybar Employee J-1
J-1.80 Hamilton Hybar Effective Date J-1
J-1.81 Hamilton Hybar Plan J-1
ARTICLE J-2 ELIGIBILITY J-1
J-2.1 Eligibility J-1
ARTICLE J-3 CONTRIBUTIONS J-2
J-3.1 Employee Contributions J-2
J-3.2 Employer Contributions J-2
ARTICLE J-4 ALLOCATIONS J-2
J-4.2 Investment Elections J-2
ARTICLE J-5 IN-SERVICE WITHDRAWALS J-2
J-5.6 Loans J-2
ARTICLE J-6 POST-EMPLOYMENT DISTRIBUTIONS J-2
J-6.2 Amount, Form and Timing of Payment J-2
ARTICLE J-1
Definitions
J-1.3 Accounts. Accounts under the Hamilton Hybar Plan will be merged into
the Accounts maintained under this Plan which hold the same type of
Contributions.
J-1.30 Hamilton Hybar Employee. For purposes of this Addendum, a Hamilton
Hybar Employee is an individual who was employed by Hamilton Hybar,
Inc. or who maintained an account balance in the Hamilton Hybar Plan on
the Hamilton Hybar Effective Date (and who became an Employee of the
Company on that date for all purposes under the Plan).
J-1.80 Hamilton Hybar Effective Date. October 1, 1997, the date when the
Hamilton Hybar Employees' Account balances in the Hamilton Hybar Plan
were spun off and merged into this Plan.
J-1.81 Hamilton Hybar Plan. The Hamilton Hybar, Inc. 401(k) Profit Sharing
Plan, as in effect from November 1, 1992 until the Hamilton Hybar
Effective Date.
ARTICLE J-2
Eligibility
J-2.1 Eligibility. Before the Hamilton Hybar Effective Date, Hamilton Hybar
Employees began participating in the Hamilton Hybar Plan upon
completion of six months of service and attainment of age twenty-one
(21). Each Hamilton Hybar Employee shall become a Participant under
this Plan in accordance with the terms of the Plan.
J-1
ARTICLE J-3
Contributions
J-3.1 Employee Contributions. Hamilton Hybar Employees were permitted to
begin making Employee Contributions under this Plan beginning as of the
Hamilton Hybar Effective Date.
J-3.2 Employer Contributions.
(f) Vesting. Each Hamilton Hybar Employee's Account balance
transferred from the Hamilton Hybar, Inc. 401(k) Profit
Sharing Plan to this Plan (if any) and his Account balances
under this Plan, were fully vested as of the Hamilton Hybar
Effective Date.
ARTICLE J-4
Allocations
J-4.2 Investment Elections. Each Hamilton Hybar Employee was permitted to
make investment elections for the Account balance that was transferred
for him from the Hamilton Hybar Plan (and merged into his Accounts
under this Plan), under the procedures described in Section 4.2 as of
the Hamilton Hybar Effective Date.
ARTICLE J-6
Post-Employment Distributions
J-6.2 Amount, Form and Timing of Payment. As of the Hamilton Hybar Effective
Date, each Hamilton Hybar Employee's post-employment distribution will
be determined in accordance with the terms of this Plan, as outlined in
Section 6.2.
J-2
SONOCO SAVINGS PLAN
ADDENDUM K
INDUSTRIAL MACHINE COMPANY
The following are provisions which are effective as of October 1, 1997 (the
"Industrial Machine Effective Date") and which apply only to Employees who were
employed by Industrial Machine Company as of September 30, 1997. As of the
Industrial Machine Effective Date, Industrial Machine Company Employees became
participants in the Plan. Each Section of this Addendum is titled and numbered
to track the corollary Section of the main text of the Plan document, but with
the prefix K (to correspond to this Addendum K) to indicate that the rule(s)
stated in that Section apply only to Industrial Machine Employees.
SONOCO SAVINGS PLAN
ADDENDUM K
INDUSTRIAL MACHINE COMPANY
Table of Contents
Page
ARTICLE K-1 DEFINITIONS K-1
K-1.33 Industrial Machine Employee K-1
K-1.80 Industrial Machine Effective Date K-1
ARTICLE K-2 ELIGIBILITY K-1
K-2.1 Eligibility K-1
ARTICLE K-3 CONTRIBUTIONS K-1
K-3.1 Employee Contributions K-1
ARTICLE K-1
Definitions
K-1.33 Industrial Machine Employee. For purposes of this Addendum, an
Industrial Machine Employee is an individual who was employed by
Industrial Machine Company on the Industrial Machine Effective Date
(and who became an Employee of the Company on that date for all
purposes under the Plan).
K-1.80 Industrial Machine Effective Date. October 1, 1997, the date when
Industrial Machine Employees were eligible to participate in the Plan.
ARTICLE K-2
Eligibility
K-2.1 Eligibility. Each Industrial Machine Employee became a Participant
under this Plan as of the Industrial Machine Effective Date.
ARTICLE K-3
Contributions
K-3.1 Employee Contributions. Each Industrial Machine Employee was permitted
to elect to begin making Employee Contributions under this Plan
beginning as of the Industrial Machine Effective Date.
K-1
SONOCO SAVINGS PLAN
ADDENDUM L
STONINGTON CORPORATION
The following are provisions which are effective as of October 1, 1997 (the
"Stonington Effective Date") and which apply only to Employees who were employed
by Stonington Corporation as of September 30, 1997. As of the Stonington
Effective Date, Stonington Employees became participants in the Plan. Each
Section of this Addendum is titled and numbered to track the corollary Section
of the main text of the Plan document, but with the prefix L (to correspond to
this Addendum L) to indicate that the rule(s) stated in that Section apply only
to Stonington Employees.
SONOCO SAVINGS PLAN
ADDENDUM L
STONINGTON CORPORATION
Table of Contents
Page
ARTICLE L-1 DEFINITIONS L-1
L-1.33 Stonington Employee L-1
L-1.80 Effective Date L-1
ARTICLE L-2 ELIGIBILITY L-1
L-2.1 Eligibility L-1
ARTICLE L-3 CONTRIBUTIONS L-1
L-3.1 Employee Contributions L-1
ARTICLE L-1
Definitions
L-1.33 Stonington Employee. For purposes of this Addendum, a Stonington
Employee is an individual who was employed by Stonington Corporation on
the Stonington Effective Date (and who became an Employee of the
Company on that date for all purposes under the Plan).
L-1.80 Effective Date. October 1, 1997, the date when Stonington Employees
were eligible to participate in the Plan.
ARTICLE L-2
Eligibility
L-2.1 Eligibility. Each Stonington Employee became a Participant under this
Plan as of the Stonington Effective Date.
ARTICLE L-3
Contributions
L-3.1 Employee Contributions. Each Stonington Employee was permitted to elect
to begin making Employee Contributions under this Plan beginning as of
Stonington Effective Date.
L-1
SONOCO SAVINGS PLAN
ADDENDUM M
RTS PACKAGING, LLC
The following are provisions which are effective as of December 31, 1997 (the
"RTS Effective Date") and which apply only to Employees who were employed by RTS
Packaging, LLC on the RTS Effective Date, and who may transfer back (the
"Transfer Date") to Sonoco after the RTS Effective Date. As of the RTS Effective
Date, Sonoco Products Company and Rock-Tenn Company formed a joint venture named
RTS Packaging, LLC. Certain Sonoco employees became employees of RTS Packaging,
LLC and, as a result, their assets maintained under the Plan were transferred to
the RTS Packaging 401(k) Retirement Savings Plan (the "RTS Plan"), and they
subsequently became participants in the RTS Plan. Upon the return of an RTS
Packaging Employee to Sonoco and as soon as practicable after the Transfer Date,
the Company shall cause to be transferred the assets and liabilities of the RTS
Packaging Employee from the RTS Plan into the Plan. Each Section of this
Addendum is titled and numbered to track the corollary Section of the main text
of the Plan document, but with the prefix M (to correspond to this Addendum M)
to indicate that the rule(s) stated in that Section apply only to RTS Packaging
Employees.
SONOCO SAVINGS PLAN
ADDENDUM M
RTS PACKAGING, LLC
Table of Contents
Page
ARTICLE M-1 DEFINITIONS M-1
M-1.3 Accounts M-1
M-1.33 RTS Employee M-1
M-1.80 RTS Effective Date M-1
M-1.81 RTS Plan M-1
ARTICLE M-2 ELIGIBILITY M-1
M-2.1 Eligibility M-1
ARTICLE M-3 CONTRIBUTIONS M-1
M-3.1 Employee Contributions M-1
M-3.2 Employer Contributions M-2
ARTICLE M-4 ALLOCATIONS M-2
M-4.2 Investment Elections M-2
ARTICLE M-5 IN-SERVICE WITHDRAWALS M-2
M-5.6 Loans M-2
ARTICLE M-6 POST-EMPLOYMENT DISTRIBUTIONS M-2
M-6.2 Amount, Form and Timing of Payment M-2
ARTICLE M-1
Definitions
M-1.33 RTS Packaging Employee. For purposes of this Addendum, an RTS Packaging
Employee is an individual who was employed by Sonoco Products Company
prior to the RTS Effective Date and subsequently became an Employee of
RTS Packaging, LLC on the RTS Effective Date, and who subsequently
transfers back to Sonoco after the RTS Effective Date (and who becomes
an Employee of the Company as of the Transfer Date for all purposes
under the Plan).
M-1.80 RTS Effective Date. December 31, 1997, the date when Sonoco Products
Company and Rock-Tenn Company formed a joint venture named RTS
Packaging, LLC.
M-1.81 Transfer Date. The date after the RTS Effective Date when former Sonoco
Employees of RTS Packaging, LLC are transferred back to the Company.
M-1.82 RTS Plan. The RTS Packaging 401(k) Retirement Savings Plan effective
January 1, 1998.
ARTICLE M-2
Eligibility
M-2.1 Eligibility. Each RTS Packaging Employee shall become a Participant
under the Plan as of the Transfer Date.
ARTICLE M-3
Contributions
M-3.1 Employee Contributions. Each RTS Packaging Employee shall be permitted
to elect to begin making Employee Contributions under this Plan as of
the Transfer Date.
M-1
M-3.2 Employer Contributions.
(e) Vesting. Each RTS Packaging Employee's Account balance
transferred from the RTS Plan to this Plan (if any) and his
Account balances under this Plan, shall be fully vested as of
the Transfer Date.
ARTICLE M-4
Allocations
M-4.2 Investment Elections. Each RTS Packaging Employee shall be permitted to
make investment elections for the Account balance that was transferred
for him from the RTS Plan (which will be merged into his Accounts under
this Plan), under the procedures described in Section 4.2 effective as
of the Transfer Date.
ARTICLE M-5
In-service Withdrawals
M-5.6 Loans. All outstanding loan balances under the RTS Plan shall be
transferred to the Plan as of the Transfer Date and continue to be
repaid to the Plan under the loan agreements that were executed under
the RTS Plan.
ARTICLE M-6
Post-Employment Distributions
M-6.2 Amount, Form and Timing of Payment. As of the Transfer Date, each RTS
Packaging Employee's post-employment distribution will be determined in
accordance with the terms of this Plan, as outlined in Section 6.2.
M-2
SONOCO SAVINGS PLAN
ADDENDUM N
INJECTO MOLD, INC.
The following are provisions which are effective as of July 1, 1998 (the
"Injecto Mold Effective Date") and which apply only to Employees of Injecto
Mold, Inc. who were participating in the Injecto Mold, Inc. Employees Profit
Sharing Plan and Trust (the "Injecto Mold Plan") as of June 30, 1998. As soon as
practicable after the Injecto Mold Effective Date, Sonoco Products Company shall
transfer assets from the Injecto Mold Plan into the Plan. Each Section of this
Addendum is titled and numbered to track the corollary Section of the main text
of the Plan document, but with the prefix N (to correspond to this Addendum N)
to indicate that the rule(s) stated in that Section apply only to Injecto Mold
Employees.
SONOCO SAVINGS PLAN
ADDENDUM N
INJECTO MOLD, INC.
Table of Contents
Page
ARTICLE N-1 DEFINITIONS N-1
N-1.3 Accounts N-1
N-1.33 Injecto Mold Employee N-1
N-1.80 Injecto Mold Effective Date N-1
N-1.81 Injecto Mold Plan N-1
ARTICLE N-2 ELIGIBILITY N-1
N-2.1 Eligibility N-1
ARTICLE N-3 CONTRIBUTIONS N-1
N-3.1 Employee Contributions N-1
N-3.2 Employer Contributions N-2
ARTICLE N-4 ALLOCATIONS N-2
N-4.2 Investment Elections N-2
ARTICLE N-1
Definitions
N-1.3 Accounts. Accounts under the Injecto Mold Plan will be merged into the
Accounts maintained under this Plan which hold the same type of
Contributions.
N-1.33 Injecto Mold Employee. For purposes of this Addendum, an Injecto Mold
Employee is an individual who was employed by Injecto Mold, Inc. or who
maintained an account balance in the Injecto Mold Plan on the Injecto
Mold Effective Date (and who became an Employee of the Company on that
date for all purposes under the Plan).
N-1.80 Injecto Mold Effective Date. July 1, 1998, the date when the Injecto
Mold Plan shall be merged into this Plan document.
N-1.81 Injecto Mold Plan. The Injecto Mold, Inc. Employees Profit Sharing Plan
and Trust, as in effect from December 28, 1973 until the Effective
Date.
ARTICLE N-2
Eligibility
N-2.1 Eligibility. Before the Injecto Mold Effective Date, Injecto Mold
Employees began participating in the Injecto Mold Plan upon completion
of one year of service and attainment of age twenty-one (21). Each
Injecto Mold Employee shall become a Participant under this Plan in
accordance with the terms of the Plan.
ARTICLE N-3
Contributions
N-3.1 Employee Contributions. Each Injecto Mold Employee is permitted to
elect to begin making Employee Contributions under this Plan beginning
as of the Injecto Mold Effective Date.
N-1
N-3.2 Employer Contributions.
(f) Vesting. Each Injecto Mold Employee's Account balance
transferred from the Injecto Mold Plan to the Plan (if any)
and his Account balances under the Plan, were fully vested as
of the Injecto Mold Effective Date.
ARTICLE N-4
Allocations
N-4.2 Investment Elections. Each Injecto Mold Employee is permitted to make
investment elections for the Account balance that was transferred for
him from the Injecto Mold Plan (which will be merged into his Accounts
under this Plan), under the procedures described in Section 4.2
effective as of the Injecto Mold Effective Date.
N-2
SONOCO SAVINGS PLAN
ADDENDUM O
FLEXIBLE PACKAGING, INC. - SALARIED AND NON-UNION HOURLY EMPLOYEES
The following are provisions which are effective as of January 1, 1999 (the
"Flexible Packaging Effective Date") and which apply only to salaried and
non-union hourly Employees of Flexible Packaging, Inc. who were participating in
the Engraph, Inc. Retirement Plus Plan (the "Engraph Plan") as of December 31,
1998. As soon as practicable after the Flexible Packaging Effective Date, Sonoco
Products Company transferred assets from the Engraph Plan into the Plan. Each
Section of this Addendum is titled and numbered to track the corollary Section
of the main text of the Plan document, but with the prefix O (to correspond to
this Addendum O) to indicate that the rule(s) stated in that Section apply only
to salaried and non-union hourly Flexible Packaging Employees.
SONOCO SAVINGS PLAN
ADDENDUM O
FLEXIBLE PACKAGING, INC. - SALARIED AND NON-UNION HOURLY EMPLOYEES
Table of Contents
Page
ARTICLE O-1 DEFINITIONS O-1
O-1.3 Accounts O-1
O-1.33 Flexible Packaging Employee O-1
O-1.80 Flexible Packaging Effective Date O-1
O-1.81 Engraph Retirement Plus Plan O-1
ARTICLE O-2 ELIGIBILITY O-1
O-2.1 Eligibility O-1
ARTICLE M-3 CONTRIBUTIONS O-2
O-3.1 Employee Contributions O-2
O-3.2 Employer Contributions O-2
ARTICLE O-4 ALLOCATIONS O-2
O-4.2 Investment Elections O-2
ARTICLE O-5 IN-SERVICE WITHDRAWALS O-2
O-5.6 Loans O-2
ARTICLE O-6 POST-EMPLOYMENT DISTRIBUTIONS O-3
O-6.2 Amount, Form and Timing of Payment O-3
ARTICLE O-1
Definitions
O-1.3 Accounts. Accounts under the Engraph Plan will be merged into the
Accounts maintained under this Plan which hold the same type of
Contributions.
O-1.30 Flexible Packaging Employee. For purposes of this Addendum, a Flexible
Packaging Employee is a salaried or non-union hourly individual who was
employed by Flexible Packaging, Inc. or who maintained an account
balance in the Engraph, Inc. Retirement Plus Plan on the Flexible
Packaging Effective Date (and who became an Employee of the Company on
that date for all purposes under the Plan).
O-1.80 Flexible Packaging Effective Date. January 1, 1999, the date when the
Flexible Packaging Employees' Account balances in the Engraph Plan were
transferred into this Plan.
O-1.81 Engraph, Inc. Retirement Plus Plan. The Engraph, Inc. Retirement Plus
Plan, as in effect from January 1, 1992.
ARTICLE O-2
Eligibility
O-2.1 Eligibility. Before the Flexible Packaging Effective Date, Flexible
Packaging Employees began participating in the Engraph Plan upon
completion of one year of service. Each Flexible Packaging Employee
became a Participant under this Plan as of the Flexible Packaging
Effective Date in accordance with the terms of the Plan.
Notwithstanding the foregoing, a Flexible Packaging Employee who was
participating in the Engraph Plan and who had not yet attained age
twenty-one (21) as of the Flexible Packaging Effective Date was
permitted to become a Participant in the Plan.
O-1
ARTICLE O-3
Contributions
O-3.1 Employee Contributions. Flexible Packaging Employees were permitted to
begin making Employee Contributions under this Plan beginning as of the
Flexible Packaging Effective Date.
O-3.2 Employer Contributions.
(f) Vesting. Each Flexible Packaging Employee's Account balance
transferred from the Engraph Plan to this Plan (if any) and
his Account balances under this Plan, were fully vested as of
the Flexible Packaging Effective Date.
ARTICLE O-4
Allocations
O-4.2 Investment Elections. Each Flexible Packaging Employee was permitted to
make investment elections for the Account balance that was transferred
for him from the Engraph Plan (and merged into his Accounts under this
Plan), under the procedures described in Section 4.2 as of the Flexible
Packaging Effective Date.
ARTICLE O-5
In-service Withdrawals
O-5.6 Loans. All outstanding loan balances under the Engraph Plan were
transferred to the Plan as of the Flexible Packaging Effective Date and
were continued to be repaid to the Plan under the loan agreements that
were executed under the Engraph Plan.
O-2
ARTICLE O-6
Post-Employment Distributions
O-6.2 Amount, Form and Timing of Payment. As of the Flexible Packaging
Effective Date, each Flexible Packaging Employee's post-employment
distribution will be determined in accordance with the terms of this
Plan, as outlined in Section 6.2.
O-3
SONOCO SAVINGS PLAN
ADDENDUM P
SOUTHERN PLUG AND MANUFACTURING, INC.
The following are provisions which are effective as of April 1, 1999 (the
"Southern Plug Effective Date") and which apply only to Employees who were
employed by Southern Plug and Manufacturing, Inc. as of March 31, 1999. As of
the Southern Plug Effective Date, Southern Plug Employees became participants in
the Plan. Each Section of this Addendum is titled and numbered to track the
corollary Section of the main text of the Plan document, but with the prefix P
(to correspond to this Addendum P) to indicate that the rule(s) stated in that
Section apply only to Southern Plug Employees.
SONOCO SAVINGS PLAN
ADDENDUM P
SOUTHERN PLUG AND MANUFACTURING, INC.
Table of Contents
Page
ARTICLE P-1 DEFINITIONS P-1
P-1.3 Accounts P-1
P-1.33 Southern Plug Employee P-1
P-1.80 Southern Plug Effective Date P-1
ARTICLE P-2 ELIGIBILITY P-1
P-2.1 Eligibility P-1
ARTICLE P-3 CONTRIBUTIONS P-1
P-3.1 Employee Contributions P-1
ARTICLE P-1
Definitions
P-1.30 Southern Plug Employee. For purposes of this Addendum, a Southern Plug
Employee is an individual who was employed by Southern Plug and
Manufacturing, Inc. on the Southern Plug Effective Date (and who became
an Employee of the Company on that date for all purposes under the
Plan).
P-1.80 Southern Plug Effective Date. April 1, 1999, the date when Southern
Plug Employees were eligible to participate in the Plan.
ARTICLE P-2
Eligibility
P-2.1 Eligibility. Each Southern Plug Employee became a Participant under
this Plan as of the Southern Plug Effective Date.
ARTICLE P-3
Contributions
P-3.1 Employee Contributions. Each Southern Plug Employee was permitted to
elect to begin making Employee Contributions under this Plan beginning
as of the Southern Plug Effective Date.
P-1
SONOCO SAVINGS PLAN
ADDENDUM Q
FLEXIBLE PACKAGING, INC. - FULTON AND EDINBURGH UNION HOURLY EMPLOYEES
The following are provisions which are effective as of May 1, 1999 (the
"Flexible Packaging Effective Date") and which apply only to union hourly
Employees of Flexible Packaging, Inc. employed at the Fulton, New York or
Edinburgh, Indiana facilities who were participating in the Engraph, Inc.
Retirement Plus Plan (the "Engraph Plan") as of April 30, 1999. As soon as
practicable after the Flexible Packaging Effective Date, Sonoco Products Company
transferred assets from the Engraph Plan into the Plan. Each Section of this
Addendum is titled and numbered to track the corollary Section of the main text
of the Plan document, but with the prefix Q (to correspond to this Addendum Q)
to indicate that the rule(s) stated in that Section apply only to union hourly
Flexible Packaging Employees.
SONOCO SAVINGS PLAN
ADDENDUM Q
FLEXIBLE PACKAGING, INC. - FULTON AND EDINBURGH UNION HOURLY EMPLOYEES
Table of Contents
Page
ARTICLE Q-1 DEFINITIONS Q-1
Q-1.3 Accounts Q-1
Q-1.33 Flexible Packaging Employee Q-1
Q-1.80 Effective Date Q-1
Q-1.81 Engraph, Inc. Retirement Plus Plan Q-1
ARTICLE Q-2 ELIGIBILITY Q-1
Q-2.1 Eligibility Q-1
ARTICLE Q-3 CONTRIBUTIONS Q-2
Q-3.1 Employee Contributions Q-2
Q-3.2 Employer Contributions Q-2
ARTICLE Q-4 ALLOCATIONS Q-3
Q-4.2 Investment Elections Q-3
ARTICLE Q-5 IN-SERVICE WITHDRAWALS Q-3
Q-5.6 Loans Q-3
ARTICLE Q-6 POST-EMPLOYMENT DISTRIBUTIONS Q-3
Q-6.2 Amount, Form and Timing of Payment Q-3
ARTICLE Q-1
Definitions
Q-1.3 Accounts. Accounts under the Engraph Plan will be merged into the
Accounts maintained under this Plan which hold the same type of
Contributions.
Q-1.30 Flexible Packaging Employee. For purposes of this Addendum, a Flexible
Packaging Employee is a union hourly individual who was employed by
Flexible Packaging, Inc. at the Fulton, New York (a "Fulton
Participant") or Edinburgh, Indiana (an "Edinburgh Participant")
facilities, who maintained an account balance in the Engraph, Inc.
Retirement Plus Plan on the Flexible Packaging Effective Date (and who
became an Employee of the Company on that date for all purposes under
the Plan).
Q-1.80 Flexible Packaging Effective Date. May 1, 1999, the date when the
Engraph Plan shall be merged into this Plan.
Q-1.81 Engraph, Inc. Retirement Plus Plan. The Engraph, Inc. Retirement Plus
Plan, as in effect from January 1, 1992.
ARTICLE Q-2
Eligibility
Q-2.1 Eligibility. Each Edinburgh Flexible Packaging Employee shall become a
Participant under this Plan upon completion of one year of service.
Each Fulton Flexible Packaging Employee shall become a Participant
under this Plan in accordance with Section 1.32. A Flexible Packaging
Employee's service prior to the Flexible Packaging Effective Date shall
be included for purposes of determining eligibility under the Plan.
Notwithstanding the foregoing, a Flexible Packaging Employee who was
participating in the Engraph Plan and who had not yet attained age
twenty-one (21) as of the Flexible Packaging Effective Date was
permitted to become a Participant in the Plan.
Q-1
ARTICLE Q-3
Contributions
Q-3.1 Employee Contributions. Flexible Packaging Employees were permitted to
begin making Employee Contributions under this Plan beginning as of the
Flexible Packaging Effective Date as follows:
(a) Before-Tax and/or After-Tax. For each Plan Year, each Fulton
Participant and each Edinburgh Participant may elect the
percentage of his Compensation that he wishes to defer as
Before-Tax Contributions, and each Fulton Participant may
elect the percentage of his Compensation that he wishes to
defer as After-Tax Contributions, within the aggregate
limitation described in Subsection (a)(3).
(1) Amount. (A) Each Fulton Participant may make
Before-Tax Contributions in whole percentages from 1
percent to a maximum of 16 percent of his
Compensation for each Plan Year and/or After-Tax
Contributions in whole percentages from 1 percent to
a maximum of 16 percent of his Compensation for each
Plan Year, not to exceed a combined amount of 16
percent; and (B) Each Edinburgh Participant may make
Before Tax Contributions in whole percentages from 1
percent to a maximum of 15 percent of his
Compensation for each Plan Year.
(2) Amount Matched. A Fulton or Edinburgh Participant's
Contributions, whether Before-Tax or After-Tax or
both, will not receive Matching Contributions.
Q-3.2 Employer Contributions.
(d) Discretionary Contributions. The Company may contribute to
each Fulton and Edinburgh Participant's Account each year an
amount equal to 3.5% of Compensation. The actual amount of
this Company Basic Contribution will be determined at the
discretion of the Company. Notwithstanding the foregoing, a
Participant whose employment terminates during the Plan Year
for reasons other than death or Retirement will not be
eligible to receive the discretionary Company Basic
Contribution.
Q-2
(e) Vesting. Each Flexible Packaging Employee's Account balance
transferred from the Engraph Plan to this Plan (if any) and
his Account balances under this Plan, will be vested according
to the terms and conditions of his collective bargaining
agreement, as applicable.
ARTICLE Q-4
Allocations
Q-4.2 Investment Elections. Each Flexible Packaging Employee was permitted to
make investment elections for the Account balance that was transferred
for him from the Engraph Plan (and merged into his Accounts under this
Plan), under the procedures described in Section 4.2 as of the Flexible
Packaging Effective Date.
ARTICLE Q-5
In-service Withdrawals
Q-5.6 Loans. All outstanding loan balances under the Engraph Plan were
transferred to the Plan as of the Flexible Packaging Effective Date and
were continued to be repaid to the Plan under the loan agreements that
were executed under the Engraph Plan.
ARTICLE Q-6
Post-Employment Distributions
Q-6.2 Amount, Form and Timing of Payment. As of the Flexible Packaging
Effective Date, each Flexible Packaging Employee's post-employment
distribution will be determined in accordance with the terms of this
Plan, as outlined in Section 6.2.
Q-3
SONOCO SAVINGS PLAN
ADDENDUM R
CROWN, CORK & SEAL COMPANY, INC.
The following are provisions which are effective as of August 20, 1999 (the
"CC&S Effective Date") and which apply only to Employees who were participating
in the Crown, Cork & Seal Company, Inc. 401(k) Retirement Savings Plan or the
Crown, Cork & Seal Company, Inc. Retirement Thrift Plan (the "CC&S Plans") as of
August 19, 1999. As of the CC&S Effective Date, Sonoco Products Company merged
the spun-off account balances for the CC&S Employees from the CC&S Plans into
the Plan. Each Section of this Addendum is titled and numbered to track the
corollary Section of the main text of the Plan document, but with the prefix R
(to correspond to this Addendum R) to indicate that the rule(s) stated in that
Section apply only to Crown, Cork & Seal Employees.
SONOCO SAVINGS PLAN
ADDENDUM R
CROWN, CORK & SEAL COMPANY, INC.
Table of Contents
Page
ARTICLE R-1 DEFINITIONS R-1
R-1.3 Accounts R-1
R-1.33 CC&S Employee R-1
R-1.80 CC&S Effective Date R-1
R-1.81 CC&S Plans R-1
ARTICLE R-2 ELIGIBILITY R-1
R-2.1 Eligibility R-1
ARTICLE R-3 CONTRIBUTIONS R-2
R-3.1 Employee Contributions R-2
R-3.2 Employer Contributions R-2
ARTICLE R-4 ALLOCATIONS R-2
R-4.2 Investment Elections R-2
ARTICLE R-5 IN-SERVICE WITHDRAWALS R-2
R-5.6 Loans R-2
ARTICLE R-6 POST-EMPLOYMENT DISTRIBUTIONS R-3
R-6.2 Amount, Form and Timing of Payment R-3
ARTICLE R-1
Definitions
R-1.3 Accounts. Accounts under the CC&S Plans will be merged into the
Accounts maintained under this Plan which hold the same type of
Contributions.
R-1.33 CC&S Employee. For purposes of this Addendum, a CC&S Employee is an
individual who was employed by Crown, Cork & Seal Company, Inc. or who
maintained an account balance in the CC&S Plans on the CC&S Effective
Date (and who became an Employee of the Company on that date for all
purposes under the Plan).
R-1.80 Effective Date. August 20, 1999, the date when the CC&S Plan Employees'
Account balances in the CC&S Plans were spun off and merged into this
Plan.
R-1.81 CC&S Plans. The Crown, Cork & Seal Company, Inc. 401(k) Retirement
Savings Plan, as amended and restated effective October 1, 1998 until
the CC&S Effective Date; and the Crown, Cork & Seal Company, Inc.
Retirement Thrift Plan, as amended and restated effective January 1,
1994 until the CC&S Effective Date.
ARTICLE R-2
Eligibility
R-2.1 Eligibility. Before the CC&S Effective Date, CC&S Employees began
participating in the CC&S Plans upon completion of one year of service
and attainment of age twenty-one (21). Each CC&S Employee became a
Participant under this Plan in accordance with the terms of the Plan.
R-1
ARTICLE R-3
Contributions
R-3.1 Employee Contributions. Each CC&S Employee was permitted to elect to
begin making Employee Contributions under this Plan beginning as of the
CC&S Effective Date.
R-3.2 Employer Contributions.
(e) Vesting. Each CC&S Employee's Account balance transferred from the
CC&S Plans to this Plan (if any) and his Account balances under this
Plan, were fully vested as of the CC&S Effective Date.
ARTICLE R-4
Allocations
R-4.2 Investment Elections. Each CC&S Employee was permitted to make
investment elections for the Account balance that was transferred for
him from the applicable CC&S Plan (which will be merged into his
Accounts under this Plan), under the procedures described in Section
4.2 effective as of the CC&S Effective Date.
ARTICLE R-5
In-service Withdrawals
R-5.6 Loans. All outstanding loan balances under the Crown, Cork & Seal
Company, Inc. 401(k) Retirement Savings Plan were transferred to the
Plan as of the CC&S Effective Date and were continued to be repaid to
the Plan under the loan agreements that were executed under the Crown,
Cork & Seal Company, Inc. 401(k) Retirement Savings Plan.
R-2
ARTICLE R-6
Post-Employment Distributions
R-6.2 Amount, Form and Timing of Payment. As of the CC&S Effective Date, each
CC&S Employee's post-employment distribution will be determined in
accordance with the terms of this Plan, as outlined in Section 6.2.
R-3
SONOCO SAVINGS PLAN
ADDENDUM S
GRAPHIC PACKAGING, INC.
The following are provisions which are effective as of November 1, 1999 (the
"Graphic Effective Date") and which apply only to Employees of Graphic
Packaging, Inc. who were participating in the ACX Technologies, Inc. Savings and
Investment Plan (the "ACX Plan") as of October 31, 1999. As of the Graphic
Effective Date, Sonoco Products Company merged the spun-off account balances for
the Graphic Employees from the ACX Plan into the Plan. Each Section of this
Addendum is titled and numbered to track the corollary Section of the main text
of the Plan document, but with the prefix S (to correspond to this Addendum S)
to indicate that the rule(s) stated in that Section apply only to Graphic
Employees.
SONOCO SAVINGS PLAN
ADDENDUM S
GRAPHIC PACKAGING, INC.
Table of Contents
Page
ARTICLE S-1 DEFINITIONS S-1
S-1.3 Accounts S-1
S-1.33 Graphic Employee S-1
S-1.80 Graphic Effective Date S-1
S-1.81 ACX Plan S-1
ARTICLE S-2 ELIGIBILITY S-1
S-2.1 Eligibility S-1
ARTICLE S-3 CONTRIBUTIONS S-2
S-3.1 Employee Contributions S-2
S-3.2 Employer Contributions S-2
ARTICLE S-4 ALLOCATIONS S-3
S-4.2 Investment Elections S-3
ARTICLE S-5 IN-SERVICE WITHDRAWALS S-3
S-5.6 Loans S-3
ARTICLE S-6 POST-EMPLOYMENT DISTRIBUTIONS S-3
S-6.2 Amount, Form and Timing of Payment S-3
ARTICLE S-1
Definitions
S-1.3 Accounts. Accounts under the ACX Plan will be merged into the Accounts
maintained under this Plan which hold the same type of Contributions.
S-1.33 Graphic Employee. For purposes of this Addendum, a Graphic Employee is
an individual who was employed by Graphic Packaging, Inc. or who
maintained an account balance in the ACX Plan on the Graphic Effective
Date (and who became an Employee of the Company on that date for all
purposes under the Plan).
S-1.80 Effective Date. November 1, 1999, the date when the Graphic Employees'
Account balances in the ACX Plan were spun off and merged into this
Plan.
S-1.81 ACX Plan. The ACX Technologies, Inc. Savings and Investment Plan, as in
effect from December 28, 1992 until the Graphic Effective Date.
ARTICLE S-2
Eligibility
S-2.1 Eligibility. Before the Graphic Effective Date, Graphic Employees began
participating in the ACX Plan if they were scheduled to work 1,000 or
more hours per year, (or after completing 1,000 hours of service during
a computation period in the case of employees not scheduled to work the
required number of hours) and attained age eighteen (18). Each Graphic
Employee shall become a Participant under this Plan in accordance with
the terms of the Plan. Notwithstanding the forgoing, an ACX Employee
who is participating in the ACX Plan and who has not yet attained age
twenty-one (21) as of the Graphic Effective Date shall be permitted to
become a Participant in the Plan.
S-1
ARTICLE S-3
Contributions
S-3.1 Employee Contributions. Each Graphic Employee is permitted to elect to
begin making Employee Contributions under this Plan beginning as of the
Graphic Effective Date as follows:
(a) Before-Tax and/or After-Tax. For each Plan Year, each
Participant may elect the percentage of his Compensation that
he wishes to defer as Before-Tax Contributions and/or the
percentage that he wishes to contribute as After-Tax
Contributions, within the aggregate limitation described in
Subsection (a)(3) below.
(1) Amount. (A) Each salaried and non-union hourly
Participant may elect to contribute in accordance
with Section 1.23(b); and (B) each union hourly
Participant may make Before-Tax Contributions and/or
After-Tax Contributions in an aggregate amount equal
to a whole percentage not less than 1 percent nor
greater than 16 percent of his Compensation for each
Plan Year.
(2) Amount Matched. (A) Each salaried and non-union
hourly Participant shall receive Company Matching
Contributions in accordance with Section 1.23(a); and
(B) the first 5 percent of each union hourly
Participant's Compensation contributed for each
payroll period, whether Before-Tax or After-Tax or
both, will receive 50-percent Matching Contributions.
Any Contributions above 5 percent will not receive
Matching Contributions
S-3.2 Employer Contributions.
(d) Discretionary Contributions. The Company will contribute to
each union hourly Participant's Account each month an amount
equal to (i) $0.85 per hour times the number of hours worked
(not to exceed 2080 hours in any Plan Year) for any such
Participant whose hire date is on or before March 22, 1998,
S-2
and (ii) $0.35 per hour times the number of hours worked (not
to exceed 2080 hours in any Plan Year) for any such
Participant whose hire date is after March 22, 1998.
(e) Vesting. Each Graphic Employee's Account balance transferred
from the ACX Plan to this Plan (if any) and his Account
balances under this Plan, were fully vested as of the Graphic
Effective Date.
ARTICLE S-4
Allocations
S-4.2 Investment Elections. Each Graphic Employee is permitted to make
investment elections for the Account balance that was transferred for
him from the ACX Plan (which will be merged into his Accounts under
this Plan), under the procedures described in Section 4.2 effective as
of the Graphic Effective Date.
ARTICLE S-5
In-service Withdrawals
S-5.6 Loans. All outstanding loan balances under the ACX Plan will be
transferred to the Plan as of the Graphic Effective Date and will
continue to be repaid to the Plan under the loan agreements that were
executed under the ACX Plan.
ARTICLE S-6
Post-Employment Distributions
S-6.2 Amount, Form and Timing of Payment. As of the Graphic Effective Date,
each Graphic Employee's post-employment distribution will be determined
in accordance with the terms of this Plan, as outlined in Section 6.2.
S-3
SONOCO SAVINGS PLAN
ADDENDUM T
PAPER STOCK DEALERS, INC.
The following are provisions which are effective as of January 1, 2001 (the "PSD
Effective Date") and which apply only to Employees who were participating in the
Paper Stock Dealers, Inc. 401(k) Profit Sharing Retirement Plan and Trust (the
"PSD Plan") as of December 31, 2000. As of the PSD Effective Date, Sonoco
Products Company shall merge the PSD Plan into the Plan. Each Section of this
Addendum is titled and numbered to track the corollary Section of the main text
of the Plan document, but with the prefix T (to correspond to this Addendum T)
to indicate that the rule(s) stated in that Section apply only to Paper Stock
Dealer Employees.
SONOCO SAVINGS PLAN
ADDENDUM T
PAPER STOCK DEALERS, INC.
Table of Contents
Page
ARTICLE T-1 DEFINITIONS T-1
T-1.3 Accounts T-1
T-1.33 PSD Employee T-1
T-1.80 Effective Date T-1
T-1.81 PSD Plan T-1
ARTICLE T-2 ELIGIBILITY T-1
T-2.1 Eligibility T-1
ARTICLE T-3 CONTRIBUTIONS T-2
T-3.1 Employee Contributions T-2
T-3.2 Employer Contributions T-2
ARTICLE T-4 ALLOCATIONS T-2
T-4.2 Investment Elections T-2
ARTICLE T-5 IN-SERVICE WITHDRAWALS T-2
T-5.6 Loans T-2
ARTICLE T-6 POST-EMPLOYMENT DISTRIBUTIONS T-3
T-6.2 Amount, Form and Timing of Payment T-3
ARTICLE T-1
Definitions
T-1.3 Accounts. Accounts under the PSD Plan will be merged into the Accounts
maintained under this Plan which hold the same type of Contributions.
T-1.30 PSD Employee. For purposes of this Addendum, a PSD Employee is an
individual who was employed by Paper Stock Dealers, Inc. or who
maintained an account balance in the PSD Plan on the PSD Effective Date
(and who became an Employee of the Company on that date for all
purposes under the Plan).
T-1.80 Effective Date. January 1, 2001, the date when the PSD Plan shall be
merged into this Plan document.
T-1.81 PSD Plan. The Paper Stock Dealers, Inc. 401(k) Profit Sharing
Retirement Plan and Trust, as in effect from December 31, 1963 until
the PSD Effective Date.
ARTICLE T-2
Eligibility
T-2.1 Eligibility. Before the PSD Effective Date, PSD Employees began
participating in the PSD Plan upon completion of six (6) months of
service and attainment of age twenty and one-half (20 1/2). Each PSD
Employee shall become a Participant under this Plan in accordance with
the terms of the Plan. Notwithstanding the forgoing, a PSD Employee who
is participating in the PSD Plan and who has not yet attained age
twenty-one (21) as of the PSD Effective Date shall be permitted to
become a Participant in the Plan.
T-1
ARTICLE T-3
Contributions
T-3.1 Employee Contributions. Each PSD Employee is permitted to elect to
begin making Employee Contributions under this Plan beginning as of the
PSD Effective Date.
T-3.2 Employer Contributions.
(e) Vesting. Each PSD Employee's Account balance transferred from the
PSD Plan to this Plan (if any) and his Account balances under this
Plan, shall be fully vested as of the PSD Effective Date.
ARTICLE T-4
Allocations
T-4.2 Investment Elections. Each PSD Employee is permitted to make investment
elections for the Account balance that was transferred for him from the
PSD Plan (which will be merged into his Accounts under this Plan),
under the procedures described in Section 4.2 effective as of the PSD
Effective Date.
ARTICLE T-5
In-service Withdrawals
T-5.6 Loans. All outstanding loan balances under the PSD Plan will be
transferred to the Plan as of the PSD Effective Date and will continue
to be repaid to the Plan under the loan agreements that were executed
under the PSD Plan.
T-2
ARTICLE T-6
Post-Employment Distributions
T-6.2 Amount, Form and Timing of Payment. As of the PSD Effective Date, each
PSD Employee's post-employment distribution will be determined in
accordance with the terms of this Plan, as outlined in Section 6.2.
T-3
SONOCO SAVINGS PLAN
ADDENDUM U
POWER PACKAGING, INC.
The following are provisions which are effective as of April 30, 2001 (the "PPI
Effective Date") and which apply only to Employees who were participating in the
Power Packaging, Inc. 401(k) Incentive Savings Plan (the "PPI Plan") as of April
29, 2001. As of the PPI Effective Date, Sonoco Products Company shall merge the
spun-off account balances from the PPI Plan into the Plan. Each Section of this
Addendum is titled and numbered to track the corollary Section of the main text
of the Plan document, but with the prefix U (to correspond to this Addendum U)
to indicate that the rule(s) stated in that Section apply only to Power
Packaging, Inc. Employees.
SONOCO SAVINGS PLAN
ADDENDUM U
POWER PACKAGING, INC.
Table of Contents
Page
ARTICLE U-1 DEFINITIONS
U-1.3 Accounts U-1
U-1.33 PPI Employee U-1
U-1.80 PPI Effective Date U-1
U-1.81 PPI Plan U-1
ARTICLE U-2 ELIGIBILITY
U-2.1 Eligibility U-1
ARTICLE U-3 CONTRIBUTIONS
U-3.1 Employee Contributions U-2
U-3.2 Employer Contributions U-2
ARTICLE U-4 ALLOCATIONS
U-4.2 Investment Elections U-2
ARTICLE U-5 IN-SERVICE WITHDRAWALS
U-5.6 Loans U-2
ARTICLE U-6 POST-EMPLOYMENT DISTRIBUTIONS
U-6.2 Amount, Form and Timing of Payment U-3
ARTICLE U-1
Definitions
U-1.3 Accounts. Accounts under the PPI Plan will be merged into the Accounts
maintained under this Plan which hold the same type of Contributions.
U-1.33 PPI Employee. For purposes of this Addendum, a PPI Employee is an
individual who was employed by Power Packaging, Inc. or who maintained
an account balance in the PPI Plan on the PPI Effective Date (and who
became an Employee of the Company on that date for all purposes under
the Plan).
U-1.80 Effective Date. April 30, 2001, the date when the PPI Plan spun-off
account balances shall be merged into this Plan document.
U-1.81 PPI Plan. The Power Packaging, Inc. 401(k) Incentive Savings Plan, as
in effect from January 1, 1991 until the PPI Effective Date.
ARTICLE U-2
Eligibility
U-2.1 Eligibility. Before the PPI Effective Date, PPI Employees began
participating in the PPI Plan on the January 1 or July 1 following
completion of one year of service and attainment of age twenty-one.
Each PPI Employee shall become a Participant under this Plan in
accordance with the terms of the Plan.
U-1
ARTICLE U-3
Contributions
U-3.1 Employee Contributions. Each eligible PPI Employee is permitted to
elect to begin making Employee Contributions under this Plan beginning
as of the PPI Effective Date.
U-3.2 Employer Contributions.
(f) Vesting. Each PPI Employee's Account balance transferred from the
PPI Plan to this Plan (if any) and his Account balances under this
Plan, shall be fully vested as of the PPI Effective Date.
ARTICLE U-4
Allocations
U-4.2 Investment Elections. Each PPI Employee is permitted to make investment
elections for the Account balance that was transferred for him from the
PPI Plan (which will be merged into his Accounts under this Plan),
under the procedures described in Section 4.2 effective as of the PPI
Effective Date.
ARTICLE U-5
In-service Withdrawals
U-5.6 Loans. All outstanding loan balances under the PPI Plan will be
transferred to the Plan as of the PPI Effective Date and will continue
to be repaid to the Plan under the loan agreements that were executed
under the PPI Plan.
U-2
ARTICLE U-6
Post-Employment Distributions
U-6.2 Amount, Form and Timing of Payment. As of the PPI Effective Date, each
PPI Employee's post-employment distribution will be determined in
accordance with the terms of this Plan, as outlined in Section 6.2.
U-3
SONOCO SAVINGS PLAN
ADDENDUM V
REPUBLIC GROUP, LLC (HUTCHINSON)
The following are provisions which are effective as of November 1, 2001 (the
"Hutchinson Effective Date") and which apply only to salaried and non-union
hourly Employees who were participating in the Republic Group LLC 401(k) Plan
(the "Republic Plan") as of October 31, 2001. As of the Hutchinson Effective
Date, Sonoco Products Company shall merge the spun-off account balances from the
Republic Plan into the Plan. Each Section of this Addendum is titled and
numbered to track the corollary Section of the main text of the Plan document,
but with the prefix V (to correspond to this Addendum V) to indicate that the
rule(s) stated in that Section apply only to Hutchinson Employees.
SONOCO SAVINGS PLAN
ADDENDUM V
REPUBLIC GROUP, LLC (HUTCHINSON)
Table of Contents
Page
ARTICLE V-1 DEFINITIONS
V-1.3 Accounts V-1
V-1.33 Hutchinson Employee V-1
V-1.80 Hutchinson Effective Date V-1
V-1.81 Republic Plan V-1
ARTICLE V-2 ELIGIBILITY
V-2.1 Eligibility V-1
ARTICLE V-3 CONTRIBUTIONS
V-3.2 Employer Contributions V-2
ARTICLE V-4 ALLOCATIONS
V-4.2 Investment Elections V-2
ARTICLE V-5 IN-SERVICE WITHDRAWALS
V-5.6 Loans V-2
ARTICLE V-1
Definitions
V-1.3 Accounts. Accounts under the Republic Plan will be merged into the
Accounts maintained under this Plan which hold the same type of
Contributions.
V-1.33 Hutchinson Employee. For purposes of this Addendum, a Hutchinson
Employee is a salaried or non-union hourly individual who was employed
by Republic Group LLC Hutchinson or who maintained an account balance
in the Republic Plan on the Hutchinson Effective Date (and who became
an Employee of the Company on that date for all purposes under the
Plan).
V-1.80 Hutchinson Effective Date. November 1, 2001, the date when the Republic
Plan spun-off account balances shall be merged into this Plan document.
V-1.81 Republic Plan. The Republic Group LLC 401(k) Plan, as in effect
immediately prior to the Hutchinson Effective Date.
ARTICLE V-2
Eligibility
V-2.1 Eligibility. Before the Hutchinson Effective Date, Hutchinson Employees
began participating in the Republic Plan on the January 1, April 1,
July 1, or October 1 of each plan year coincident with or next
following completion of three months of eligibility service. Each
Hutchinson Employee who was eligible to participate in the Republic
Plan as of October 31, 2001 shall be eligible to become a Participant
under this Plan as of the Hutchinson Effective Date. Each other
Hutchinson Employee shall be eligible to become a Participant under
this Plan in accordance with the terms of the Plan.
V-1
ARTICLE V-3
Contributions
V-3.2 Employer Contributions.
(f) Vesting. Each Hutchinson Employee's Account balance transferred
from the Republic Plan to this Plan (if any) and his Account balances
under this Plan shall be fully vested as of the Hutchinson Effective
Date.
ARTICLE V-4
Allocations
V-4.2 Investment Elections. Each Hutchinson Employee is permitted to make
investment elections for the Account balance that was transferred for
him from the Republic Plan (which will be merged into his Accounts
under this Plan), under the procedures described in Section 4.2(c)
effective as of the Hutchinson Effective Date.
ARTICLE V-5
In-service Withdrawals
V-5.6 Loans. All outstanding loan balances under the Republic Plan will be
transferred to the Plan as of the Hutchinson Effective Date and will
continue to be repaid to the Plan under the loan agreements that were
executed under the Republic Plan.
V-2
SONOCO SAVINGS PLAN
ADDENDUM W
HAYES MANUFACTURING GROUP, INC.
The following are provisions which are effective as of January 1, 2002 (the
"Hayes Effective Date") and which apply only to Employees who were participating
in the Hayes Manufacturing Group, Inc. 401(k) Plan (the "Hayes Plan") as of
December 31, 2001. As of the Hayes Effective Date, Sonoco Products Company shall
merge the Hayes Plan into the Plan. Each Section of this Addendum is titled and
numbered to track the corollary Section of the main text of the Plan document,
but with the prefix W (to correspond to this Addendum W) to indicate that the
rule(s) stated in that Section apply only to Hayes Employees.
SONOCO SAVINGS PLAN
ADDENDUM W
HAYES MANUFACTURING GROUP, INC.
Table of Contents
Page
ARTICLE W-1 DEFINITIONS
W-1.3 Accounts W-1
W-1.33 Hayes Employee W-1
W-1.80 Hayes Effective Date W-1
W-1.81 Hayes Plan W-1
ARTICLE W-2 ELIGIBILITY
W-2.1 Eligibility W-1
ARTICLE W-4 ALLOCATIONS
W-4.2 Investment Elections W-2
ARTICLE W-1
Definitions
W-1.3 Accounts. Accounts under the Hayes Plan will be merged into the
Accounts maintained under this Plan which hold the same type of
Contributions.
W-1.33 Hayes Employee. For purposes of this Addendum, a Hayes Employee is an
individual who was employed by Hayes Manufacturing Group, Inc. or who
maintained an account balance in the Hayes Plan on the Hayes
Effective Date (and who became an Employee of the Company on that
date for all purposes under the Plan).
W-1.80 Hayes Effective Date. January 1, 2002, the date when the Hayes Plan
shall be merged into this Plan document.
W-1.81 Hayes Plan. The Hayes Manufacturing Group, Inc. 401(k) Plan as in
effect immediately prior to the Hayes Effective Date.
ARTICLE W-2
Eligibility
W-2.1 Eligibility. Before the Hayes Effective Date, Hayes Employees began
participating in the Hayes Plan on the January 1, April 1, July 1, or
October 1 of each plan year coincident with or next following
completion of one year of service (1,000 hours). Each Hayes Employee
who was eligible to participate under the Hayes Plan on December 31,
2001 shall be eligible to become a Participant under this Plan as of
the Hayes Effective Date. Each other Hayes Employee shall be eligible
to become a Participant under this Plan in accordance with the terms
of the Plan.
W-1
ARTICLE W-4
Allocations
W-4.2 Investment Elections. Each Hayes Employee is permitted to make
investment elections for the Account balance that was transferred for
him from the Hayes Plan (which will be merged into his Accounts under
this Plan), under the procedures described in Section 4.2(c)
effective as of the Hayes Effective Date.
W-2
SONOCO SAVINGS PLAN
ADDENDUM X
PHOENIX PACKAGING CORPORATION
The following are provisions which are effective as of January 1, 2002 (the
"Phoenix Effective Date") and which apply only to Employees who were
participating in the Phoenix Packaging Corporation Employees 401(k) Plan (the
"Phoenix Plan") as of December 31, 2001. As of the Phoenix Effective Date,
Sonoco Products Company shall merge the Phoenix Plan into the Plan. Each Section
of this Addendum is titled and numbered to track the corollary Section of the
main text of the Plan document, but with the prefix X (to correspond to this
Addendum X) to indicate that the rule(s) stated in that Section apply only to
Phoenix Employees.
SONOCO SAVINGS PLAN
ADDENDUM X
PHOENIX PACKAGING CORPORATION
Table of Contents
Page
ARTICLE X-1 DEFINITIONS
X-1.3 Accounts X-1
X-1.33 Phoenix Employee X-1
X-1.80 Phoenix Effective Date X-1
X-1.81 Phoenix Plan X-1
ARTICLE X-2 ELIGIBILITY
X-2.1 Eligibility X-1
ARTICLE X-4 ALLOCATIONS
X-4.2 Investment Elections X-2
ARTICLE X-5 IN-SERVICE WITHDRAWALS
X-5.6 Loans X-2
ARTICLE X-1
Definitions
X-1.3 Accounts. Accounts under the Phoenix Plan will be merged into the
Accounts maintained under this Plan which hold the same type of
Contributions.
X-1.33 Phoenix Employee. For purposes of this Addendum, a Phoenix Employee
is an individual who was employed by Phoenix Packaging Corporation or
who maintained an account balance in the Phoenix Plan on the Phoenix
Effective Date (and who became an Employee of the Company on that
date for all purposes under the Plan).
X-1.80 Phoenix Effective Date. January 1, 2002, the date when the Phoenix
Plan shall be merged into this Plan document.
X-1.81 Phoenix Plan. The Phoenix Packaging Corporation Employees 401(k) Plan
as in effect immediately prior to the Phoenix Effective Date.
ARTICLE X-2
Eligibility
X-2.1 Eligibility. Before the Phoenix Effective Date, Phoenix Employees
began participating in the Phoenix Plan on the January 1, April 1,
July 1, or October 1 of each plan year coincident with or next
following completion of six months of eligibility service and
attainment of age 21. Each Phoenix Employee who was eligible to
participate under the Phoenix Plan as of December 31, 2001 shall be
eligible to become a Participant under this Plan as of the Phoenix
Effective Date. Each other Phoenix Employee shall be eligible to
become a Participant under this Plan in accordance with the terms of
the Plan.
X-1
ARTICLE X-4
Allocations
X-4.2 Investment Elections. Each Phoenix Employee is permitted to make
investment elections for the Account balance that was transferred for
him from the Phoenix Plan (which will be merged into his Accounts
under this Plan), under the procedures described in Section 4.2(c)
effective as of the Phoenix Effective Date.
ARTICLE X-5
In-service Withdrawals
X-5.6 Loans. All outstanding loan balances under the Phoenix Plan will be
transferred to the Plan as of the Phoenix Effective Date and will
continue to be repaid to the Plan under the loan agreements that were
executed under the Phoenix Plan.
X-2
SONOCO SAVINGS PLAN
ADDENDUM Y
U.S. PAPER MILLS CORPORATION
SALARIED AND NON-UNION HOURLY EMPLOYEES
The following are provisions which are effective as of January 1, 2002 (the "US
Paper Mills Effective Date") and which apply only to salaried and non-union
hourly Employees who were participating in the US Paper Mills Savings Plan and
the US Paper Mills Retirement Plan (the "USPMC Plans") as of December 31, 2001.
As of the US Paper Mills Effective Date, Sonoco Products Company shall merge the
account balances from the USPMC Plans into the Plan. Each Section of this
Addendum is titled and numbered to track the corollary Section of the main text
of the Plan document, but with the prefix Y (to correspond to this Addendum Y)
to indicate that the rule(s) stated in that Section apply only to USPMC
Employees.
SONOCO SAVINGS PLAN
ADDENDUM Y
U.S. PAPER MILLS CORPORATION
SALARIED AND NON-UNION HOURLY EMPLOYEES
Table of Contents
Page
ARTICLE Y-1 DEFINITIONS
Y-1.3 Accounts Y-1
Y-1.33 USPMC Employee Y-1
Y-1.80 US Paper Mills Effective Date Y-1
Y-1.81 USPMC Plans Y-1
ARTICLE Y-2 ELIGIBILITY
Y-2.1 Eligibility Y-1
ARTICLE Y-4 ALLOCATIONS
Y-4.2 Investment Elections Y-2
ARTICLE Y-1
Definitions
Y-1.3 Accounts. Accounts under the USPMC Plans will be merged into the
Accounts maintained under this Plan which hold the same type of
Contributions.
Y-1.33 USPMC Employee. For purposes of this Addendum, a USPMC Employee is an
individual who was employed by U.S. Paper Mills Corporation or who
maintained an account balance in the USPMC Plans on the US Paper
Mills Effective Date (and who became an Employee of the Company on
that date for all purposes under the Plan).
Y-1.80 US Paper Mills Effective Date. January 1, 2002, the date when the
USPMC Plans shall be merged into this Plan document.
Y-1.81 USPMC Plans. The U.S. Paper Mills Corporation Savings Plan and the
U.S. Paper Mills Corporation Retirement Plan as in effect immediately
prior to the US Paper Mills Effective Date.
ARTICLE Y-2
Eligibility
Y-2.1 Eligibility. Before the US Paper Mills Effective Date, USPMC
Employees began participating in the USPMC Plans on the January 1 or
July 1 of each plan year following completion of 1,000 hours of
eligibility service. Each USPMC Employee who was eligible to
participate under a USPMC Plan as of December 31, 2001 shall be
eligible to become a Participant under this Plan as of the US Paper
Mills Effective Date. Each other USPMC Employee shall be eligible to
become a Participant under this Plan in accordance with the terms of
the Plan.
Y-1
ARTICLE Y-4
Allocations
Y-4.2 Investment Elections. Each USPMC Employee is permitted to make
investment elections for the Account balance that was transferred for
him from the USPMC Plans (which will be merged into his Accounts
under this Plan), under the procedures described in Section 4.2(c)
effective as of the US Paper Mills Effective Date.
Y-2
SONOCO SAVINGS PLAN
ADDENDUM Z
U.S. PAPER MILLS CORPORATION
MENASHA UNION HOURLY EMPLOYEES
The following are provisions which are effective as of January 1, 2002 (the "US
Paper Mills Effective Date") and which apply only to union hourly Employees who
were participating in the US Paper Mills Corporation Menasha Bargaining Unit
Savings Plan (the "USPMC Plan") as of December 31, 2001. As of the US Paper
Mills Effective Date, Sonoco Products Company shall merge the account balances
from the USPMC Plan into the Plan. Each Section of this Addendum is titled and
numbered to track the corollary Section of the main text of the Plan document,
but with the prefix Z (to correspond to this Addendum Z) to indicate that the
rule(s) stated in that Section apply only to USPMC Employees.
SONOCO SAVINGS PLAN
ADDENDUM Z
U.S. PAPER MILLS CORPORATION
MENASHA UNION HOURLY EMPLOYEES
Table of Contents
Page
ARTICLE Z-1 DEFINITIONS
Z-1.3 Accounts Z-1
Z-1.33 USPMC Employee Z-1
Z-1.80 US Paper Mills Effective Date Z-1
Z-1.81 USPMC Plan Z-1
Z-1.82 Eligible Earnings Z-1
ARTICLE Z-2 ELIGIBILITY
Z-2.1 Eligibility Z-1
ARTICLE Z-3 CONTRIBUTIONS
Z-3.1 Employee Contributions Z-2
Z-3.2 Employer Contributions Z-2
(a) Regular Contributions Z-2
(d) Vesting Z-2
(e) Continuation of Participation Following Disability Z-2
ARTICLE Z-4 ALLOCATIONS
Z-4.2 Investment Elections Z-4
ARTICLE Z-5 IN-SERVICE WITHDRAWALS
Z-5.2 In-service Withdrawal from After-Tax Account and
Rollover Contribution Account Z-4
Z-5.3 In-service Withdrawal After Age 591/2 Z-4
Z-5.6 Loans Z-4
ARTICLE Z-1
Definitions
Z-1.3 Accounts. Accounts under the USPMC Plan will be merged into the
Accounts maintained under this Plan which hold the same type of
Contributions.
(a) Employer Contributions Accounts.
. . .
(6) Regular Contributions Account means the account to record
Regular Contributions made by the Company in accordance with
Section Z-3.2(a) of this Addendum and amounts attributable to
corresponding contributions that were transferred into this Plan
from the USPMC Plan.
Z-1.33 USPMC Employee. For purposes of this Addendum, a USPMC Employee is a
union hourly individual who was employed by U.S. Paper Mills
Corporation or who maintained an account balance in the USPMC Plan on
the US Paper Mills Effective Date (and who became an Employee of the
Company on that date for all purposes under the Plan).
Z-1.80 US Paper Mills Effective Date. January 1, 2002, the date when the
USPMC Plan shall be merged into this Plan document.
Z-1.81 USPMC Plan. The U.S. Paper Mills Corporation Menasha Bargaining Unit
Savings Plan as in effect immediately prior to the US Paper Mills
Effective Date.
Z-1.82 Eligible Earnings. For purposes of this Addendum, Eligible Earnings
means the amount reportable by the Company for federal income tax
purposes as wages paid to the Participant by the Company for the Plan
Year (the Participant's W-2 Wages), decreased by any such amount that
is paid on a non-cash basis or as an expense reimbursement and
increased by the amount of any Employee Contributions made pursuant
to the provisions of Section Z-3.1 and any deductions made pursuant
to any cafeteria plan maintained by the Company pursuant to Code
Z-1
section 125, to the extent such reductions are not included in the
Participant's W-2 Wages for that Plan Year.
ARTICLE Z-2
Eligibility
Z-2.1 Eligibility. Each USPMC Employee who was a Participant in the USPMC
Plan shall begin participating in the Plan on the US Paper Mills
Effective Date. Each other individual who becomes an Employee in a
position that is represented by the United Paperworkers International
Union, AFL-CIO, Local No. 273, shall become a Participant in this
Plan, and shall be subject to the provisions set forth in this
Addendum Z, as of the first day of such employment.
ARTICLE Z-3
Contributions
Z-3.1 Employee Contributions
(a) Before-Tax and/or After-Tax.
. . .
(2) Amount Matched. The first 6 percent of each union hourly
Participant's Compensation contributed for each payroll period
on a Before-Tax basis will receive 25 percent Matching
Contributions. Any After-Tax Contributions and any Before-Tax
Contributions above 6 percent will not receive Matching
Contributions.
Z-3.2 Employer Contributions.
(a) Regular Contributions. For each Plan Year, and in addition to the
Matching Contributions described in Section Z-3.1(a)(2) of this
Addendum, the Company shall make a Regular Contribution to the
Trust on behalf of each Participant who was employed by the
Menasha Mill Division during such Plan Year, and such
Z-2
contribution shall be allocated to the Participant's Account. The
Regular Contribution on behalf of such a Participant shall be in
an amount equal to 4 percent of his Eligible Earnings paid to the
Participant during that portion of the Plan Year during which he
or she was a Participant in the Plan; provided, that, for
purposes of applying this sentence with respect to a Participant
whose employment commencement date with the Company is prior to
May 15, 1989 and whose date of birth is prior to January 1, 1940,
the term "51/2percent of his Eligible Earnings" shall be
substituted for "4 percent of his Eligible Earnings".
. . .
(d) Section 3.2(d) of the main text of the Plan does not apply to
Participants who are represented by the United Paperworkers
International Union, AFL-CIO, Local No. 273.
(e) Vesting. Each Participant's Matching Contributions and Regular
Contributions shall be vested after 3 years of service with the
Company (including service earned by a USPMC Employee under the
USPMC Plan prior to the US Paper Mills Effective Date.
. . .
(m) Continuation of Participation Following Disability. A Participant
who becomes disabled (within the meaning of Code Section
22(e)(3), i.e., unable to engage in any substantial gainful
activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or
which has lasted or can be expected to last for a continuous
period of not less than twelve months) and who is not a Highly
Compensated Employee, shall continue to receive an allocation of
Regular Contributions under Section Z-3.2(a) with respect to the
Participant's Eligible Earnings:
(i) in the case of an illness or injury that does not qualify
for workers' compensation coverage, for the period beginning
on the fifteenth day of the disability and ending 26 weeks
thereafter or, if earlier, the date of the Participant's
termination of employment or his return to active employment
with the Company or its Affiliates; or
Z-3
(ii) in the case of an illness or injury that qualifies for
workers' compensation coverage, for the period beginning on
the day of the occurrence of the disability and ending on
the earlier of the date on which the Participant returns to
active employment with the Company or its Affiliates, the
date on which it is determined that the Participant is
unable to return to active employment with the Company or an
Affiliate as the result of an injury or illness that
qualifies for workers' compensation payments, or the date of
the Participant's termination of employment.
The Regular Contributions under Section Z-3.2(a) for the
applicable period described above shall be based on the average
of the Participant's Eligible Earnings that he had received for
the 24 pay periods preceding the occurrence of his disability or
the average of all such pay periods if less than 24.
Notwithstanding any provisions in the Plan to the contrary,
disabled Participants with respect to whom Regular Contributions
are allocated under this Subsection (m) shall at all times have a
fully vested interest in such allocations.
ARTICLE Z-4
Allocations
Z-4.2 Investment Elections. Each USPMC Employee is permitted to make
investment elections for the Account balance that was transferred for
him from the USPMC Plan (which will be merged into his Accounts under
this Plan), under the procedures described in Section 4.2(c)
effective as of the US Paper Mills Effective Date.
ARTICLE Z-5
In-Service Withdrawals
Z-5.2 In-service Withdrawal from After-Tax Account and Rollover
Contribution Account. The Plan will not permit any in-service
withdrawals from the Participant's After-Tax and Rollover
Contribution Accounts.
Z-4
Z-5.3 In-service Withdrawal After Age 59 1/2. The Plan will not permit any
in-service withdrawals after age 59 1/2.
Z-5.6 Loans. All outstanding loan balances under the Phoenix Plan will be
transferred to the Plan as of the Phoenix Effective Date and will
continue to be repaid to the Plan under the loan agreements that were
executed under the USPMC Plan.
Z-5
SONOCO SAVINGS PLAN
ADDENDUM AA
U.S. PAPER MILLS CORPORATION
DEPERE UNION HOURLY EMPLOYEES
The following are provisions which are effective as of January 1, 2002 (the "US
Paper Mills Effective Date") and which apply only to union hourly Employees who
were participating in the US Paper Mills Corporation DePere Bargaining Unit
Savings Plan (the "USPMC Plan") as of December 31, 2001. As of the US Paper
Mills Effective Date, Sonoco Products Company shall merge the account balances
from the USPMC Plan into the Plan. Each Section of this Addendum is titled and
numbered to track the corollary Section of the main text of the Plan document,
but with the prefix AA (to correspond to this Addendum AA) to indicate that the
rule(s) stated in that Section apply only to USPMC Employees.
SONOCO SAVINGS PLAN
ADDENDUM AA
U.S. PAPER MILLS CORPORATION
DEPERE UNION HOURLY EMPLOYEES
Table of Contents
Page
ARTICLE AA-1 DEFINITIONS
AA-1.3 Accounts AA-1
AA-1.33 USPMC Employee AA-1
AA-1.80 US Paper Mills Effective Date AA-1
AA-1.81 USPMC Plan AA-1
AA-1.82 Eligible Earnings AA-1
ARTICLE AA-2 ELIGIBILITY
AA-2.1 Eligibility AA-1
ARTICLE AA-3 CONTRIBUTIONS
AA-3.1 Employee Contributions AA-2
(a) Before-Tax and/or After-Tax Contributions AA-2
AA-3.2 Employer Contributions AA-3
(e) Vesting AA-3
ARTICLE AA-4 ALLOCATIONS
AA-4.2 Investment Elections AA-4
ARTICLE AA-5 IN-SERVICE WITHDRAWALS
AA-5.2 In-service Withdrawal from Rollover Account AA-4
AA-5.3 In-service Withdrawal After Age 59 1/2 AA-4
AA-5.6 Loans AA-4
ARTICLE AA-1
Definitions
AA-1.3 Accounts. Accounts under the USPMC Plan will be merged into the
Accounts maintained under this Plan which hold the same type of
Contributions.
AA-1.33 USPMC Employee. For purposes of this Addendum, a USPMC Employee is a
union hourly individual who was employed by U.S. Paper Mills
Corporation or who maintained an account balance in the USPMC Plan on
the US Paper Mills Effective Date (and who became an Employee of the
Company on that date for all purposes under the Plan).
AA-1.80 US Paper Mills Effective Date. January 1, 2002, the date when the
USPMC Plan shall be merged into this Plan document.
AA-1.81 USPMC Plan. The U.S. Paper Mills Corporation DePere Bargaining Unit
Savings Plan as in effect immediately prior to the US Paper Mills
Effective Date.
AA-1.82 Eligible Earnings. For purposes of this Addendum, Eligible Earnings
means the amount reportable by the Company for federal income tax
purposes as wages paid to the Participant by the Company for the Plan
Year (the Participant's W-2 Wages), decreased by any such amount that
is paid on a non-cash basis or as an expense reimbursement and
increased by the amount of any Employee Contributions made pursuant
to the provisions of Section Z-3.1 and any deductions made pursuant
to any cafeteria plan maintained by the Company pursuant to Code
section 125, to the extent such reductions are not included in the
Participant's W-2 Wages for that Plan Year.
AA-1
ARTICLE AA-2
Eligibility
AA-2.1 Eligibility. Each USPMC Employee who was a Participant in the USPMC
Plan shall begin participating in the Plan on the US Paper Mills
Effective Date. Each other USPMC Employee who becomes an Employee in
a position that is represented by the United Paperworkers
International Union, AFL-CIO-CLC, Local No. 1517 shall become a
Participant in this Plan, and shall be subject to the provisions set
forth in this Addendum AA, as of the first day of such employment.
ARTICLE AA-3
Contributions
AA-3.1 Employee Contributions.
(a) Before-Tax and/or After-Tax.
(1) Amount. Each eligible USPMC Employee is permitted to make
Mandatory Contributions and Additional Contributions (as
described below). In no event, however, shall the sum of the
Participant's Mandatory and Additional Contributions for a
Plan Year exceed 15 percent of the Participant's Eligible
Earnings for such Plan Year. All Mandatory Contributions and
Additional Contributions shall be make on a before-tax
basis. Participants who are covered by this Addendum are not
permitted to contribute on an after-tax basis. Employee
Contributions will be paid to the Trustee as soon as
practicable after the date on which the Participant would
have otherwise received the Eligible Earnings with respect
to which such Contribution is made.
(i) Mandatory Contributions. If a Participant elects to
make Employee Contributions under the Plan, he shall
make Mandatory Contributions in an amount equal to the
product of:
AA-2
(A) Each Hour for which the Participant is deemed to
be working for the Company under the collective
bargaining agreement, multiplied by
(B) The Mandatory Contribution rate, as set forth in
the following table, that is applicable for the
particular time period in question, with future
rates subject to the respective collective
bargaining agreement:
Period of Time Mandatory Contribution Rate
June 15, 2001 - June 14, 2002 One Dollar and Two Cents
June 15, 2002 and thereafter One Dollar and Seven Cents
(ii) Additional Contributions. A Participant who is making
Mandatory Contributions under Subsection (a)(i) above
may elect to make Additional Contributions in an amount
equal to the product of:
(A) Each hour for which the Participant is deemed to
be working for the Company under the collective
bargaining agreement, multiplied by
(B) The Additional Contribution rate that he elects
and specifies in writing to the Plan
Administrator.
A Participant who is making Additional Contributions on a
regular payroll reduction basis in accordance with the
preceding sentence of this Subsection (a)(ii) shall be
entitled to contribute on a before-tax basis as an
Additional Contribution all or any portion of any Eligible
Earnings paid by the Company to the Participant that is in
excess of the Participant's regular payroll earnings.
(2) Amount Matched. The Company shall contribute to the Trust,
for each Plan Year, on behalf of each Participant with
respect to whom Mandatory Contributions have been made for
AA-3
the Plan Year, a Matching Contribution equal to the amount
of Mandatory Contributions made with respect to the
Participant for the Plan Year.
AA-3.2 Employer Contributions.
. . .
(e) Vesting. Each Participant's Matching Contributions shall be
vested after 3 years of service with the Company (including service
earned by a USPMC Employee under the USPMC Plan prior to the US Paper
Mills Effective Date).
ARTICLE AA-4
Allocations
AA-4.2 Investment Elections. Each USPMC Employee is permitted to make
investment elections for the Account balance that was transferred for
him from the USPMC Plan (which will be merged into his Accounts under
this Plan), under the procedures described in Section 4.2(c)
effective as of the US Paper Mills Effective Date.
ARTICLE AA-5
In-Service Withdrawals
AA-5.2 In-service Withdrawal from Rollover Contribution Account. The Plan
will not permit any in-service withdrawals from the Participant's
Rollover Contribution Accounts.
AA-5.3 In-service Withdrawal After Age 59 1/2. The Plan will not permit any
in-service withdrawals after age 59 1/2.
AA-5.6 Loans. The Plan will not permit any loans.
AA-4
SONOCO SAVINGS PLAN
ADDENDUM AB
GEORGIA PAPER TUBE, INC.
The following are provisions which are effective as of April 1, 2002 (the "GPT
Effective Date") and which apply only to Employees who were employed by Georgia
Paper Tube, Inc. as of March 31, 2002. As of the GPT Effective Date, GPT
Employees became participants in the Plan. Each Section of this Addendum is
titled and numbered to track the corollary Section of the main text of the Plan
document, but with the prefix AB (to correspond to this Addendum AB) to indicate
that the rule(s) stated in that Section apply only to GPT Employees.
SONOCO SAVINGS PLAN
ADDENDUM AB
GEORGIA PAPER TUBE, INC.
Table of Contents
Page
ARTICLE AB-1 DEFINITIONS AB-1
AB-1.3 Accounts AB-1
AB-1.33 GPT Employee AB-1
AB-1.80 GPT Effective Date AB-1
ARTICLE AB-2 ELIGIBILITY AB-1
AB-2.1 Eligibility AB-1
ARTICLE AB-1
Definitions
AB-1.30 GPT Employee. For purposes of this Addendum, a GPT Employee is an
individual who was employed by Georgia Paper Tube, Inc. on the GPT
Effective Date (and who became an Employee of the Company on that
date for all purposes under the Plan).
AB-1.80 GPT Effective Date. April 1, 2002, the date when GPT Employees were
eligible to participate in the Plan.
ARTICLE AB-2
Eligibility
AB-2.1 Eligibility. Each GPT Employee became a Participant under this Plan
as of the GPT Effective Date.
AB-1
SONOCO SAVINGS PLAN
ADDENDUM AC
PAPER STOCK DEALERS, INC.
(KANSAS CITY, MO AND TOPEKA, KS)
The following are provisions which are effective as of April 15, 2002 (the "PSD
Republic Effective Date") and which apply only to Employees who were
participating in the Profit Sharing and Retirement Plan of Centex Construction
Products, Inc. and the Hourly Profit Sharing and Retirement Plan of Centex
Construction Products, Inc. (the "Centex Plans") as of April 14, 2002. As of the
PSD Republic Effective Date, Sonoco Products Company shall merge the spun-off
account balances for the PSD Republic Employees from the Centex Plans into the
Plan. Each Section of this Addendum is titled and numbered to track the
corollary Section of the main text of the Plan document, but with the prefix AC
(to correspond to this Addendum AC) to indicate that the rule(s) stated in that
Section apply only to PSD Republic Employees.
SONOCO SAVINGS PLAN
ADDENDUM AC
PAPER STOCK DEALERS, INC.
(KANSAS CITY, MO AND TOPEKA, KS)
Table of Contents
Page
ARTICLE AC-1 DEFINITIONS
AC-1.3 Accounts AC-1
AC-1.33 PSD Republic Employee AC-1
AC-1.80 PSD Republic Effective Date AC-1
AC-1.81 Centex Plans AC-1
ARTICLE AC-2 ELIGIBILITY
AC-2.1 Eligibility AC-1
ARTICLE AC-4 ALLOCATIONS
AC-4.2 Investment Elections AC-2
ARTICLE AC-5 IN-SERVICE WITHDRAWALS
AC-5.6 Loans AC-2
ARTICLE AC-1
Definitions
AC-1.3 Accounts. Accounts under the Centex Plans will be merged into the
Accounts maintained under this Plan which hold the same type of
Contributions.
AC-1.33 PSD Republic Employee. For purposes of this Addendum, a PSD Republic
Employee is an individual who was employed by Republic Fiber Company
or who maintained an account balance in the Centex Plans on the PSD
Republic Effective Date (and who became an Employee of the Company on
that date for all purposes under the Plan).
AC-1.80 PSD Republic Effective Date. April 15, 2002, the date when the PSD
Republic Employees' Account balances in the Centex Plans shall be
spun off and merged into this Plan document.
AC-1.81 Centex Plans. The Profit Sharing and Retirement Plan of Centex
Construction Products, Inc. and the Hourly Profit Sharing and
Retirement Plan of Centex Construction Products, Inc., as in effect
immediately prior to the PSD Republic Effective Date.
ARTICLE AC-2
Eligibility
AC-2.1 Eligibility. Before the PSD Republic Effective Date, PSD Republic
Employees began participating in the Centex Plans on their Employment
Date. Each PSD Republic Employee who was eligible to participate
under a Centex Plan as of April 14, 2002 shall be eligible to become
a Participant under this Plan on the PSD Republic Effective Date.
Each other PSD Republic Employee shall be eligible to become a
Participant under this Plan in accordance with the terms of the Plan.
AC-1
ARTICLE AC-4
Allocations
AC-4.2 Investment Elections. Each PSD Republic Employee is permitted to make
investment elections for the Account balance that was transferred for
him from the Centex Plans (which will be merged into his Accounts
under this Plan), under the procedures described in Section 4.2(c)
effective as of the PSD Republic Effective Date.
ARTICLE AC-5
In-service Withdrawals
AC-5.6 Loans. All outstanding loan balances under the Centex Plans will be
transferred to the Plan as of the PSD Republic Effective Date and
will continue to be repaid to the Plan under the loan agreements that
were executed under the Centex Plans.
AC-2
EXHIBIT 5
Haynsworth Sinkler Boyd, P.A.
Attorneys at Law
The Palmetto Center
1426 Main Street, Suite 1200
Columbia, South Carolina 29201
(803) 779-3080
October 28, 2002
Sonoco Products Company
North Second Street
Hartsville, South Carolina 29551
Gentlemen:
In connection with the registration under the Securities Act of 1933 (the
"Act") of 5,000,000 shares of the common stock (the "Common Stock") of Sonoco
Products Company, a South Carolina corporation (the "Company"), for issuance
pursuant to the Sonoco Savings Plan, we have examined such corporate records,
certificates and other documents, and such questions of law, as we have
considered necessary or appropriate for the purposes of this opinion.
Upon the basis of such examination it is our opinion that original issuance
shares of the Common Stock, when issued upon the terms and conditions set forth
in the Registration Statement filed by the Company in connection with the
registration of the Common Stock, and upon receipt of the consideration
therefor, will be legally issued, fully paid and nonassessable.
We consent to be named in the Registration Statement as attorneys who will
pass upon certain legal matters in connection with the offering described in the
Registration Statement, and to the filing of a copy of this opinion as an
exhibit to the Registration Statement. In giving such consent, we do not thereby
admit that we are in the category of persons whose consent is required under
Section 7 of the Act.
Very truly yours,
s/ Haynsworth Sinkler Boyd, P.A.
Haynsworth Sinkler Boyd, P.A.
Exhibit 15
PricewaterhouseCoopers, LLP
214 N. Tryon Street
Suite 3600
Charlotte, NC 28202
Telephone(704) 344-7500
Facsimile (704) 344-4100
October 22, 2002
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Commissioners:
We are aware that our reports dated April 17, 2002 and August 8, 2002 on our
reviews of interim financial information of Sonoco Products Company for the
periods ended March 31 and June 30, 2002, respectively, and included in the
Company's quarterly reports on Form 10-Q for the quarters then ended are
incorporated by reference in this Registration Statement on Form S-8.
Yours very truly,
s/PricewaterhouseCoopers LLP
Exhibit 23.1
PricewaterhouseCoopers, LLP
214 N. Tryon Street
Suite 3600
Charlotte, NC 28202
Telephone(704) 344-7500
Facsimile (704) 344-4100
Consent of Independent Accountants
We hereby consent to the incorporation by reference into this Registration
Statement on Form S-8 of Sonoco Products Company of our report dated January 31,
2002, relating to the financial statements, which appears in the Annual Report
to Shareholders, which is incorporated in the Company's Annual Report on Form
10-K, as amended, for the year ended December 31, 2001. We also consent to the
incorporation by reference of our report dated January 31, 2002 relating to the
financial statement schedule, which appears in such Annual Report on Form 10-K.
s/PricewaterhouseCoopers LLP
Charlotte, NC
October 22, 2002
