"Boomerang" Indemnification/Advancement-Gilbert v. Unisys

Under Delaware law, executives (and former executives) may be entitled to indemnification and advancement from their employer for claims arising in connection with their employment. These rights to indemnification/advancement are generally contractual; they typically arise under the company's governing documents (e.g., charter, by-laws, or partnership or LLC agreements) or indemnification agreements.

Indemnification may cover a range of expenses and liabilities and advancement may require the employer to advance attorney's fees incurred in defending a claim at the outset of litigation before final disposition of the action (subject to an undertaking to repay any amounts advanced if it turns out indemnification is not warranted).