8-KMaterial AgreementsExhibits & Filings

ALTRIA GROUP, INC. 8-K Report, Material Agreement (Oct 30, 2006)

Filed October 30, 2006For Securities:MO

Summary

Altria Group, Inc. (MO) filed an 8-K report on October 29, 2006, detailing a material definitive agreement. Specifically, the company entered into an indemnity agreement with each of its Board of Directors members, effective October 25, 2006. This agreement mandates the advancement and reimbursement of reasonable expenses incurred by directors in connection with various legal proceedings related to their service. The agreement, approved by the Board on October 25, 2006, is designed to protect directors by covering their legal costs, subject to certain exceptions, as permitted by Virginia law and Altria's governing documents. This move is standard corporate governance practice aimed at ensuring directors are willing to serve without undue personal financial risk from potential litigation stemming from their directorial duties.

Key Highlights

  • 1Altria Group entered into an indemnity agreement with its Board of Directors members.
  • 2The agreement is effective as of October 25, 2006.
  • 3It provides for mandatory advancement and reimbursement of directors' legal expenses.
  • 4These expenses are related to legal proceedings arising from their service as directors.
  • 5The agreement is in compliance with Virginia state law and Altria's corporate charter.
  • 6The form of the indemnity agreement was approved by the Board on October 25, 2006.
  • 7Exhibit 10.1 contains the Form of Indemnity Agreement.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Altria Group's entry into a material definitive agreement, specifically an indemnity agreement with its Board of Directors members. This agreement ensures directors are protected financially from legal actions related to their service.

This filing does not indicate Altria is facing a specific lawsuit. Indemnity agreements are a standard corporate governance practice designed to protect directors against potential legal proceedings that may arise due to their directorial duties, regardless of whether a specific suit is currently active.

The agreement mandates the advancement and reimbursement of reasonable expenses incurred by directors in various legal proceedings where they may be involved by reason of their service as directors. There are limited exceptions outlined in the agreement.

Yes, entering into indemnity agreements with directors is a common and standard practice for publicly traded companies. It helps attract and retain qualified board members by mitigating their personal financial risk associated with potential litigation related to their roles.