Document:

Exhibit 10.2 Key Executive Insurance & Compensation

EXHIBIT 10.2

KEY EXECUTIVE LIFE INSURANCE AND

DEFERRED COMPENSATION PROGRAM

THIS AGREEMENT is made between Alliance One International, Inc. (the “Company”), as successor in interest to Dibrell Brothers, Inc. (“Dibrell”), and H. P. Green III (“Employee”). 

PART A

General Provisions

1.

Deferred Compensation.  Employee and Dibrell entered into Key Executive Life Insurance and Deferred Compensation Program agreements dated January 1, 1978 and October 1, 1980 (the “Original Agreements”).  Employee and the Company now desire to amend and restate the Original Agreements.  Accordingly, this Agreement constitutes a complete amendment and restatement, effective as of January 1, 2005, of the Original Agreements.

2.

Separate Parts.  Parts B and C set out below are distinct and separate agreements, and shall be construed and considered in all respects as if each were set forth in a separate document.

3.

Construction.  This Agreement shall be construed in accordance with North Carolina law. If any provision of any Part of this Agreement is hereafter determined to be invalid, the remaining provisions and Parts shall be severable and continue to be in full force and effect but shall be interpreted and administered consistently with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

4.

Reservation of Rights.  Except as provided in this section, this Agreement may not be modified or amended except by written instrument signed by the Company and by Employee. 

PART B

Life Insurance

1.

Policy.  The Company shall maintain one or more insurance policies insuring the life of Employee with an aggregate basic death benefit of not less than $165,521, with disability waiver of premium but without additional accidental death benefits (the “Policies”).

2.

Ownership.  The Company shall retain physical custody of the Policies and shall have full ownership rights therein, except that Employee (or his assignee) shall be owner of that right under the Policies to designate beneficiaries for that portion of the Policy proceeds described below in section 4 of this Part B. 

3.

Premium Payments.  On or before the premium due dates each year, the Company shall pay the full annual premium for the Policies. Employee will not be required to make any contribution or premium payments. The Company may elect and continue in force the special dividend option in the Policies by which the dividends will be used to purchase additional paid-up insurance.

4.

Beneficiary Designation.  The Company retains the right to designate the beneficiary of each Policy with respect to the portion of the proceeds equal to the total premiums paid by the Company less any policy indebtedness (the “Company Portion”).  The Employee (or his assignee) shall have the right to select the beneficiary and optional method of settlement with respect to the portion of the proceeds, if any, in excess of the Company Portion by directing the Company, in writing, to designate such beneficiary and method of settlement under each Policy. 

5.

Termination.  This Part B will terminate on March 31, 2007.  During the ninety (90) days immediately following such termination date (the “Option Period”), Employee (or his assignee) shall have an option to purchase the Policies with all the Company’s rights therein.  The consideration for the purchase of each Policy shall be the payment by Employee (or his assignee) to the Company of an amount equal to the cash surrender value of the Policy.  If the Policy shall then be encumbered by assignment, policy loan, or otherwise, the Company shall either remove such encumbrance, or reduce the sales price to Employee (or his assignee) by the amount of indebtedness (including interest then due or accrued thereon) outstanding against the Policy.  If Employee (or his assignee) exercises such option to purchase, the Company shall execute all necessary documents required by the insurance company to effect a transfer of ownership, or absolute assignment, of the Policy over to and in favor of Employee (or his assignee).  If Employee (or his assignee) does not complete the purchase within the Option Period, Employee shall have no further rights under this Part B or under the Policy.

6.

Insurer.  It is understood by the parties hereto that the insurer shall have no liability except as set forth in the policy and in the beneficiary designations. The insurer shall not be bound to inquire into or take note of any of the covenants herein contained as to the policy. In case of death, the insurer shall be discharged from all liability on payment of the proceeds in accordance with the Policy’s provisions and the beneficiary designations without regard to this Agreement or any amendment hereof.

7.

Intent.  This Part B is intended to constitute a bona fide death benefit plan for purposes of Code Section 409A.

8.

Assignment.  Employee shall have the right to make an absolute assignment of his entire interest under this Part B at any time to any person or persons. Upon delivery of a copy of such assignment to the Company, all of the rights and duties of Employee hereunder shall inure to and be binding upon the assignee, including the right to make further assignments, and Employee shall thereafter have no interest whatsoever in this Part B.

9.

Further Assurances.  The parties hereto agree to execute any instruments which may be necessary or proper in carrying out the purpose and intent of this Part B.

PART C

Deferred Compensation

1.

Compensation Deferred.  The Company shall establish a bookkeeping account to record Employee’s rights to deferred compensation under this Agreement.  Employee and the Company agree that:

(a)

The single sum value of the total amount deferred under this Part C as of Employee’s separation from service on March 31, 2007 is $72,892 (the “Total Deferral”). 

(b)

The provisions of this Part C are considered a “nonaccount balance plan” for purposes of Code Section 409A.  A portion of the Total Deferral was deferred prior to January 1, 2005, under the terms of the Original Agreements as in effect on October 3, 2004.  The portion of the Total Deferral that was deferred prior to January 1, 2005 under this Part C (determined in accordance with Code Section 409A and Proposed Treasury Regulation § 1.409A-6(a)(3)(i)) is $66,510 (the “Grandfathered Benefit”). 

(c)

The portion of the Total Deferral deferred after December 31, 2004 is $6,382 (the “409A Deferred Amount”).

2.

Severance Benefits.  Employee termination of employment on March 31, 2007 constitutes a “separation from service” with the Company (within the meaning of Code Section 409A(a)(2)(A)(i)).  As a result of his separation from service, Employee shall be entitled to receive severance benefits as provided in this section 2.

(a)

The Grandfathered Benefit shall be paid to Employee in equal annual installments of $6,651 over 10 consecutive years, without interest, commencing on May 20, 2007 (or within ten (10) business days thereafter) and continuing on each of the nine anniversaries thereafter.

(b)

The 409A Deferred Amount shall be paid to Employee in equal annual installments of $638.20 over 10 consecutive years, without interest, commencing on May 20, 2007 (or within ten (10) business days thereafter) and continuing on each of the nine anniversaries thereafter.  However, if Employee is a “specified employee” within the meaning of Code Section 409A(a)(2)(B)(i) at the time of his separation from service:

(i)

the first installment (and only the first installment) shall not be paid until October, 2007; and

(ii)

when paid in October, 2007, the first installment shall be equal to $651.72, representing the amount payable as of May 20, 2007 plus five months’ interest at the monthly rate of 0.42%. 

3.

Death Benefits.  In the event Employee dies before receiving the amount payable under section 2 of this Part C, the Company shall make the payment to such beneficiary(ies) as Employee may designate under this Part C in writing signed by him and delivered to the Company during his lifetime.  Payments shall be made at the time and in the amount Employee would otherwise have received it hereunder.  Such beneficiary(ies) may be changed by Employee from time to time, and the last such designation delivered to the Company before the death of Employee shall control. In the absence of any such designation, or if there should be a failure of beneficiaries with respect to all or any part of the payments provided for above, such payments or any part thereof with respect to which there has been a failure of beneficiary shall be made to the estate of Employee. 

4.

409A Compliance.  The Company intends that amounts payable to Employee or his Beneficiary pursuant to Part C of this Agreement shall not be included in income for federal, state or local income tax purposes until the benefits are actually paid or delivered to such Participant or Beneficiary.  Accordingly, with respect to any benefits that are subject to Code Section 409A, Part C of this Agreement shall be interpreted and administered consistently with the requirements of Code Section 409A, as amended or supplanted from time to time, and current and future guidance thereunder.

5.

No Fund.  The Company shall have no obligation to retain any fund or reserve or purchase any insurance policies or other assets for the payment of any amount set forth in this Part C; and, to the extent the Company elects to do so, neither Employee nor any beneficiary shall have any interest therein.  It is expressly understood and agreed by the parties to this Agreement that Employee relies only upon the Company’s bare, unsecured promise to pay and upon no other security as to his rights under this Part C.

6.

No Assignment.  Neither Employee nor any beneficiary shall have any right to assign, encumber, commute, anticipate or dispose of any right to receive payments under this Part C, nor shall any such rights hereunder be subject to the claims of Employee’s creditors.

7.

Successors.  The terms hereof shall inure to the benefit of and bind the respective parties, Employee’s beneficiaries, heirs and personal representatives, and the Company’s successors.

  IN
    WITNESS WHEREOF, the parties have executed this Agreement on this the 16th
    day of July, 2007.

ALLIANCE ONE INTERNATIONAL, INC.

By   /s/  Michael K. McDaniels

Authorized Officer    7/18/2007

H. P. GREEN III

/s/  H. P. Green III

BENEFICIARY DESIGNATION

I, H. P. Green III (hereinafter referred to as “the Employee”), have entered into a Key Executive Life Insurance and Deferred Compensation Agreement (hereinafter referred to as “the Agreement”) with Alliance One International, Inc., (hereinafter referred to as “the Company”), dated __________, 2007.  Under Part B, Article 4 and Part C, Article 3 of the Agreement, I reserve the right to designate recipients of payments to be made following my death in accordance with the terms of the Agreement, and under Part B, Article 4 and Part C, Article 3 of the Agreement I reserve the right to change such designees from time to time.

In accordance with the rights conferred upon me by these Articles, I hereby designate the following beneficiary or beneficiaries to receive any and all payments to be made following my death in accordance with the terms of the Agreement, and I revoke any and all beneficiary designations which I have heretofore made with respect to such Agreement (or with respect to prior agreements which the Agreement by its terms has amended and restated):

The Direct Beneficiary or Beneficiaries shall be:

(Print Name and Relationship)

The Contingent Beneficiary or Beneficiaries shall be:

(Print Name and Relationship)

The foregoing designation is made subject to the following conditions:

·

The Employee may designate one or more Direct Beneficiaries, and may designate one or more Contingent Beneficiaries, and the share to be taken by each.

·

If more than one Direct Beneficiary is named, the interest of any deceased Direct Beneficiary including any unpaid benefits due or to become due, shall pass to the surviving Direct Beneficiary or Beneficiaries, unless otherwise directed by the Employee herein.

·

Upon the death of the last surviving Direct Beneficiary, benefits shall be paid to the last surviving beneficiary’s estate.

__________________________________

Employee’s Signature

__________________________________

DateExhibit
      4.1

     

    

    

    [FORM
      OF
      FACE OF REGISTERED PUT WARRANT CERTIFICATE]

    

    

    
      
        	
                No.
                  _____

              	
                CUSIP
                  No. __________

              

      

       

    

    [Unless
      and until it is exchanged in whole or in part for Warrants in definitive
      registered form, this Warrant Certificate and the Warrants evidenced hereby
      may
      not be transferred except as a whole by the Depositary to the nominee of the
      Depositary or by a nominee of the Depositary to the Depositary or another
      nominee of the Depositary or by the Depositary or any such nominee to a
      successor Depositary or a nominee of such successor Depositary.

     

    Unless
      this Warrant Certificate is presented by an authorized representative of the
      Depositary (55 Water Street, New York) to Morgan Stanley or its agent for
      registration of transfer, exchange or payment, and any Warrant issued is
      registered in the name of Cede & Co. or such other name as requested by an
      authorized representative of the Depositary and any payment hereon is made
      to
      Cede & Co. or such other entity as is requested by an authorized
      representative of the Depositary, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
      FOR
      VALUE OR OTHERWISE BY A PERSON IS WRONGFUL inasmuch as the registered owner
      hereof, Cede & Co., has an interest herein.]1

     

    MORGAN
      STANLEY

    

    [Designation
      of Warrants]

    

    NUMBER
      OF
      WARRANTS EVIDENCED BY THIS CERTIFICATE: [UP TO ____]1

     

    CASH
      SETTLEMENT VALUE PER WARRANT (OR METHOD OF DETERMINING SAME):

     

    [WARRANT
      PROPERTY:] 2

     

    _______________________

      1
        Applies to global
        warrant certificates.

       

        
        2
          Only if the terms of
          the Warrants contemplate that the holder may deliver Warrant Property to
          exercise the Warrants.

      

    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     

    [AMOUNT
      OF
      WARRANT PROPERTY

    SALABLE
      PER WARRANT:]2

     

    [PUT
      PRICE
      FOR SUCH SPECIFIED AMOUNT OF WARRANT PROPERTY PER WARRANT:]2

     

    [METHOD
      OF
      DELIVERY OF ANY WARRANT PROPERTY TO BE DELIVERED FOR SALE UPON EXERCISE OF
      WARRANTS:]
      2

     

     

    DATES
      OF
      EXERCISE:

     

    OTHER
      TERMS:

     

    This
      Warrant Certificate certifies that _________, or registered assigns, is the
      Registered Holder of the number of [Designation of Warrants] (the
“Warrants”) [specified above]3 [specified on
      Schedule A hereto]4.  Upon receipt by the Warrant Agent
      of this Warrant Certificate, the exercise notice on the reverse hereof (or
      an
      exercise notice in substantially identical form delivered herewith)(the
“Exercise Notice”), duly completed and executed, except in the
      case of any automatic exercise, and the Amount of Warrant Property saleable
      per
      Warrant set forth above, adjusted, if applicable, as set forth above, for each
      Warrant to be exercised, delivered as set forth above at the Warrant Agent’s
      Window, Attention: Tender Department, in the Borough of Manhattan, The City
      of
      New York (which is, on the date hereof, 101 Barclay Street, 7W New York, New
      York 10286, Attention: Tender Department), each Warrant evidenced hereby
      entitles the Registered Holder hereof to receive, subject to the terms and
      conditions set forth herein and in the Warrant Agreement (as defined below),
      from Morgan Stanley (the “Company”) the [Cash Settlement Value]
      [Put Price]5 per Warrant specified
      above.

     

    Unless
      otherwise indicated above, a Warrant will not require or entitle a Warrantholder
      to sell or deliver to the Company, nor will the Company be under any obligation
      to, nor will it, purchase or take delivery from any Warrantholder of, any
      Warrant Property, and upon exercise of a Warrant, the Company will make only
      a
      cash payment in the amount of the Cash Settlement Value or Put 

     

    ________________________

    
      3
        Applies to
        definitive warrant certificates.

       

        
        4
          Applies to global
          warrant certificates.

         

      

        
        5
          Only if the terms of
          the Warrants contemplate that the holder may deliver Warrant Property to
          exercise the Warrants.

         

      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Price
      per
      Warrant.  Warrantholders will not receive any interest on any Cash
      Settlement Value.

     

    Reference
      is hereby made to the further provisions of this Warrant Certificate set forth
      on the reverse hereof and such further provisions shall for all purposes have
      the same effect as though fully set forth in this place.

     

    This
      Warrant Certificate shall not be valid unless countersigned by the Warrant
      Agent.

     

    
 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

      
       

    

     IN
      WITNESS
      WHEREOF, Morgan Stanley has caused this instrument to be duly
      executed.

     

    Dated:
      ______________________

    

    
      	
              MORGAN
                STANLEY

            
	 	 
	 	 
	
              By:

            	 
	
              Name:

            
	
              Title:

            
	 

    

    Attest:

    

    By:
      _________________________

    Assistant
      Secretary

     

    Countersigned
      as of the date above written:

     

    THE
      BANK
      OF NEW YORK,

    as
      Warrant
      Agent

     

    By:
      _________________________

    Authorized
      Signatory

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    [FORM
      OF
      REVERSE OF REGISTERED PUT WARRANT CERTIFICATE]

    
 

    MORGAN
      STANLEY

    

    The
      Warrants evidenced by this Warrant Certificate are part of a duly authorized
      issue of Warrants issued by the Company pursuant to a Warrant Agreement, dated
      as of November 1, 2004  (the “Warrant Agreement”),
      between the Company and The Bank of New York, a New York banking corporation,
      (as successor to JPMorgan Chase Bank N.A., (formerly known as JPMorgan Chase
      Bank)) (the “Warrant Agent”) and are subject to the terms and
      provisions contained in the Warrant Agreement, to all of which terms and
      provisions each Warrantholder consents by acceptance of this Warrant Certificate
      or a beneficial interest therein and which Warrant Agreement is hereby
      incorporated by reference in and made a part of this Warrant
      Certificate.  Without limiting the foregoing, all capitalized terms
      used herein and not otherwise defined shall have the meanings set forth in
      the
      Warrant Agreement.  A copy of the Warrant Agreement is on file at the
      Warrant Agent’s Office.  The Warrants constitute a separate series of
      Warrants under the Warrant Agreement.

     

    The
      Warrants are unsecured contractual obligations of the Company and rank pari
      passu with the Company’s other unsecured contractual obligations and with
      the Company's unsecured and unsubordinated debt.

     

    Subject
      to
      the provisions hereof and the Warrant Agreement, each Warrant may be exercised
      during the dates of exercise set forth on the face hereof by delivering or
      causing to be delivered this Warrant Certificate, the Exercise Notice, duly
      completed and executed, and the Exercise Property for each such Warrant to
      the
      Warrant Agent’s Window, in the Borough of Manhattan, The City of New York, which
      is, on the date hereof (unless otherwise specified herein), The Bank of New
      York, 101 Barclay Street, 7W New York, New York 10286, Attention: Tender
      Department, or at such other address as the Warrant Agent may specify from
      time
      to time.

     

    Each
      Warrant entitles the Warrantholder to receive, upon exercise, the [Cash
      Settlement Value] [Put Price]6 per
      Warrant set forth on the face hereof.

     

    The
      Warrant Agreement and the terms of the Warrants are subject to amendment as
      provided in the Warrant Agreement.

     

    
      __________________

        6
          Only if the terms of
          the Warrants contemplate that the holder may deliver Warrant Property to
          exercise the Warrants.

      

      

       

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    This
      Warrant Certificate shall be governed by, and interpreted in accordance with,
      the laws of the State of New York.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    [Designation
      of Warrants]

    

    Exercise
      Notice

     

    The
      Bank
      of New York

    101
      Barclay Street, 7W

    New
      York,
      New York 10286

    

    Attention:  Tender
      Department

    

    The
      undersigned (the “Registered Holder”) hereby irrevocably
      exercises __________ Warrants (the “Exercised Warrants”) and
      delivers to you herewith a Warrant Certificate or Certificates, registered
      in
      the Registered Holder’s name, representing a number of Warrants at least equal
      to the number of Exercised Warrants[, and the Warrant Property with respect
      thereto].1

     

    The
      Registered Holder hereby directs the Warrant Agent (a) to deliver the [Cash
      Settlement Value][Put Price] 1
      per Warrant as
      follows:

     

     

    and
      (b) if
      the number of Exercised Warrants is less than the number of Warrants represented
      by the enclosed Warrant Certificate, to deliver a Warrant Certificate
      representing the unexercised Warrants to:

     

    
      	 	 	 	 
	
              Dated:

            	 	 	 
	 	 	 	
              (Registered
                Holder)

            

    

    

    

    
      	
              By:

            	 
	 	
              Authorized
                Signature

            
	 	
              Address:

            
	 	
              Telephone:

            

    

    

    

    
_________________

    
      1 Only
        if terms
        of the Warrants contemplate that the holder may deliver Warrant Property
        to
        exercise the Warrants.

       

       

      
        
          1

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    [If
      Warrant is a Global Warrant, insert this Schedule A.]

     

    SCHEDULE
      A

     

    [Designation
      of Warrants]

     

    

    GLOBAL

    WARRANT

    SCHEDULE
      OF EXCHANGES

    

    The
      initial number of Warrants represented by this Global Warrant is __________.
      In
      accordance with the Warrant Agreement [and the Unit Agreement] dated as of
      November 1, 2004 among the Issuer [and], The Bank of New York (as successor
      to
      JPMorgan Chase Bank, N.A. (formerly known as JPMorgan Chase Bank)), [as Unit
      Agent,] as Warrant Agent[, as Collateral Agent, and as Trustee under the
      Indenture referred to therein and the Holders from time to time of the Units
      described therein], the following [(A) exchanges of [the number of Warrants
      indicated below for a like number of Warrants to be represented by a Global
      Warrant that has been separated from a Unit (a “Separated
      Warrant”)]1
      [the number of
      Warrants that had been represented by a Global Warrant that is part of a Unit
      (an “Attached Unit Warrant”) for a like number of Warrants
      represented by this Global Warrant]2 or] (B)
      reductions
      as a result of the exercise of the number of Warrants indicated below have
      been
      made:

     

    
      	Date
              of Exchange or Exercise	
              
                [Number
                  Exchanged for
                  Separated  Warrants]8

              

            	
              
                [Reduced
                  Number Outstanding Following Such
                  Exchange]1

              

            	
              
                [Number
                  of Attached Unit Warrants Exchanged  for Warrants represented by
                  this Separated Warrant]9

              

            	
              
                [Increased
                  Number  Outstanding
                  Following  Such  Exchange]2

              

            	
              
                Number
                  of Warrants  Exercised

              

            	
              
                Reduced
                  Number  Outstanding Following Such
                  Exercise

              

            	
              
                Notation
                  Made by or on Behalf of Warrant Agent

              

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

    

     

    _______________________  
      1
        Applies only if this
        Global Warrant is part of a Unit.

    

      
      2
        Applies only if this
        Global Warrant has been separated from a Unit.

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