Advancement and indemnification are distinct but related legal concepts. Both work in tandem to encourage corporate action by officers and directors for the benefit of the company without fear of personal liability. Indemnification is the company's promise to reimburse executives for out-of-pocket expenses and losses incurred in defending themselves against claims arising from their corporate action. Indemnification alone is not sufficient in many situations as the company's duty of indemnification does not get triggered until the end of a lawsuit, which could force the executive to pay out of pocket for what could be very costly litigation during the lawsuit. This is where advancement comes into play. Advancement provides immediate relief to ensure that executives have the necessary resources to defend against claims. Since most cases settle before trial, advancement provides executives with a greater benefit to allay costs. This column serves as a compliment to my earlier column discussing these topics.