Common use of Fiduciary Liability Clause in Contracts

Fiduciary Liability. Effective on the Distribution Date, the existing Insurance Policy covering directors and officers of the Altria Group and the PMI Group will be converted to a six-year run-off policy. Each of Altria and PMI will be allocated any credit for premium return under the existing policy based on the percentage of the premium payment allocated to such party in the most recent premium payment. Altria and PMI will bear the expense of the run-off policy in the same proportion. In the event the run-off policy coverage limit is reduced to less than $40 million as the result of payments of claims or claims expense on behalf of either the Altria Group or the PMI Group, the Group or Groups responsible for such reduction shall pay (in proportion to payments or claims expenses received by such party with respect to such coverage) to reinstate the coverage with limits no less than $40 million. Each of the Altria Group and the PMI Group shall be responsible for obtaining its own fiduciary liability policy for acts or omissions occurring on or after the Distribution Date.