Document:

Exhibit 10.2

 

INDEMNIFICATION
AGREEMENT

 

This INDEMNIFICATION AGREEMENT (this “Agreement”)
is effective as of August 11, 2015, by and between JERNIGAN CAPITAL, INC., a Maryland corporation (the “Company”
or the “Indemnitor”) and William C. Drummond (the “Indemnitee”).

 

WHEREAS, the Indemnitee
is an officer of the Company and in such capacities is performing a valuable service for the Company;

 

WHEREAS, Maryland law
permits the Company to enter into contracts with its officers or members of its Board of Directors with respect to indemnification
of, and advancement of expenses to, such persons;

 

WHEREAS, the Articles
of Amendment and Restatement of the Company (the “Charter”) provide that the Company shall indemnify and advance
expenses to its directors and officers to the maximum extent permitted by Maryland law in effect from time to time;

 

WHEREAS, the Amended
and Restated Bylaws of the Company (the “Bylaws”) provide that each director and officer of the Company shall
be indemnified by the Company to the maximum extent permitted by Maryland law in effect from time to time and shall be entitled
to advancement of expenses consistent with Maryland law; and

 

WHEREAS, to induce
the Indemnitee to provide services to the Company as an officer and a member of the Board of Directors, and to provide the Indemnitee
with specific contractual assurance that indemnification will be available to the Indemnitee regardless of, among other things,
any amendment to or revocation of the Charter or the Bylaws, or any acquisition transaction relating to the Company, the Indemnitor
desires to provide the Indemnitee with protection against personal liability as set forth herein.

 

NOW, THEREFORE, in
consideration of the premises and the covenants contained herein, the Indemnitor and the Indemnitee hereby agree as follows:

 

		1.	DEFINITIONS.

 

For purposes of this
Agreement:

 

		(a)	“Change in Control” shall have the meaning ascribed to it by the Company’s
2015 Equity Incentive Plan or any equity incentive or stock compensation plan adopted by the Board of Directors and approved by
the stockholders of the Company that may later replace the Company’s 2015 Equity Incentive Plan.

 

		(b)	“Corporate Status” describes the status of a person who is or was a director
or officer of the Company or is or was serving at the request of the Company as a director, officer, partner (limited or general),
member, director, employee or agent of any other foreign or domestic corporation, partnership, joint venture, limited liability
company, trust, other enterprise (whether conducted for profit or not for profit) or employee benefit plan. The Company shall be
deemed to have requested the Indemnitee to serve an employee benefit plan where the performance of the Indemnitee’s duties
to the Company also imposes or imposed duties on, or otherwise involves or involved services by, the Indemnitee to the plan or
participants or beneficiaries of the plan.

 

    	 		 

     

    

 

		(c)	“Expenses” shall include all attorneys’ and paralegals’ fees, retainers,
court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in connection
with prosecuting, defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding.

 

		(d)	“Proceeding” includes any action, suit, arbitration, alternate dispute resolution
mechanism, investigation (including any internal investigation), administrative hearing, or any other proceeding, including appeals
therefrom, whether civil, criminal, administrative, or investigative, except one initiated by the Indemnitee pursuant to paragraph
8 of this Agreement to enforce such Indemnitee’s rights under this Agreement.

 

		(e)	“Special Legal Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither presently is, or in the past two years has been, retained to represent (i)
the Indemnitor or the Indemnitee in any matter material to either such party, or (ii) any other party to the Proceeding giving
rise to a claim for indemnification hereunder.

 

		2.	INDEMNIFICATION.

 

The Indemnitee shall
be entitled to the rights of indemnification provided in this paragraph 2 and under applicable law, the Charter, the Bylaws, any
other agreement, a vote of stockholders or resolution of the Board of Directors or otherwise if, by reason of such Indemnitee’s
Corporate Status, such Indemnitee is, or is threatened to be made, a party to any threatened, pending, or completed Proceeding,
including a Proceeding by or in the right of the Company. Unless prohibited by paragraph 13 hereof and subject to the other provisions
of this Agreement, the Indemnitee shall be indemnified hereunder, to the maximum extent permitted by Maryland law in effect from
time to time, against judgments, penalties, fines, liabilities, and settlements and reasonable Expenses actually incurred by or
on behalf of such Indemnitee in connection with such Proceeding or any claim, issue or matter therein; provided, however, that
if such Proceeding was initiated by or in the right of the Company, indemnification may not be made in respect of such Proceeding
if the Indemnitee shall have been finally adjudged to be liable to the Company. For purposes of this paragraph 2, excise taxes
assessed on the Indemnitee with respect to an employee benefit plan pursuant to applicable law shall be deemed fines.

 

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		3.	EXPENSES OF A SUCCESSFUL PARTY.

 

Without limiting the
effect of any other provision of this Agreement, including the rights provided for in paragraphs 2 and 4 hereof, and without regard
to the provisions of paragraph 6 hereof, to the extent that the Indemnitee is, by reason of such Indemnitee’s Corporate Status,
a party to and is successful, on the merits or otherwise, in any Proceeding pursuant to a final non-appealable order, such Indemnitee
shall be indemnified against all reasonable Expenses actually incurred by or on behalf of such Indemnitee in connection therewith.
If the Indemnitee is not wholly successful in such Proceeding pursuant to a final non-appealable order but is successful, on the
merits or otherwise, as to one or more but less than all claims, issues, or matters in such Proceeding pursuant to a final non-appealable
order, the Indemnitor shall indemnify the Indemnitee against all reasonable Expenses actually incurred by or on behalf of such
Indemnitee in connection with each successfully resolved claim, issue or matter. For purposes of this paragraph and without limitation,
the termination of any claim, issue or matter in such Proceeding by dismissal, with or without prejudice, shall be deemed to be
a successful result as to such claim, issue or matter.

 

		4.	ADVANCEMENT OF EXPENSES.

 

Notwithstanding anything
in this Agreement to the contrary, but subject to paragraph 13 hereof, if the Indemnitee is or was or becomes a party to or is
otherwise involved in any Proceeding (including as a witness), or is or was threatened to be made a party to or a participant (including
as a witness) in any such Proceeding, by reason of the Indemnitee’s Corporate Status, or by reason of (or arising in part
out of) any actual or alleged event or occurrence related to the Indemnitee’s Corporate Status, or by reason of any actual
or alleged act or omission on the part of the Indemnitee taken or omitted in or relating to the Indemnitee’s Corporate Status,
then the Indemnitor shall advance all reasonable Expenses incurred by the Indemnitee in connection with any such Proceeding within
twenty (20) days after the receipt by the Indemnitor of a statement from the Indemnitee requesting such advance from time to time,
whether prior to or after final disposition of such Proceeding; provided that, such statement shall reasonably evidence the Expenses
incurred or to be incurred by the Indemnitee and shall include or be preceded or accompanied by (i) a written affirmation by the
Indemnitee of the Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Indemnitor
as authorized by this Agreement has been met and (ii) a written undertaking by or on behalf of the Indemnitee to repay the amounts
advanced if it should ultimately be determined that the standard of conduct has not been met. The undertaking required by clause
(ii) of the immediately preceding sentence shall be an unlimited general obligation of the Indemnitee but need not be secured and
may be accepted without reference to financial ability to make the repayment.

 

		5.	WITNESS EXPENSES.

 

Notwithstanding any
other provision of this Agreement, to the extent that the Indemnitee is, by reason of such Indemnitee’s Corporate Status,
a witness for any reason in any Proceeding to which such Indemnitee is not a named defendant or respondent, such Indemnitee shall
be indemnified by the Indemnitor against all Expenses actually incurred by or on behalf of such Indemnitee in connection therewith.

 

		6.	DETERMINATION OF ENTITLEMENT TO AND AUTHORIZATION OF INDEMNIFICATION.

 

		(a)	To obtain indemnification under this Agreement, the Indemnitee shall submit to the Indemnitor a
written request, including therewith such documentation and information reasonably necessary to determine whether and to what extent
the Indemnitee is entitled to indemnification.

 

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		(b)	Indemnification under this Agreement may not be made unless authorized for a specific Proceeding
after a determination has been made in accordance with this paragraph 6(b) that indemnification of the Indemnitee is permissible
in the circumstances because the Indemnitee has met the following standard of conduct: the Indemnitor shall indemnify the Indemnitee
in accordance with the provisions of paragraph 2 hereof, unless it is established that: (a) the act or omission of the Indemnitee
was material to the matter giving rise to the Proceeding and (x) was committed in bad faith or (y) was the result of active and
deliberate dishonesty; (b) the Indemnitee actually received an improper personal benefit in money, property or services; or (c)
in the case of any criminal proceeding, the Indemnitee had reasonable cause to believe that the act or omission was unlawful. Upon
receipt by the Indemnitor of the Indemnitee’s written request for indemnification pursuant to subparagraph 6(a), a determination
as to whether the applicable standard of conduct has been met shall be made within the period specified in paragraph 6(e): (i)
if a Change in Control shall have occurred, by Special Legal Counsel in a written opinion to the Board of Directors, a copy of
which shall be delivered to the Indemnitee, with Special Legal Counsel selected by the Indemnitee (the Indemnitee shall give prompt
written notice to the Indemnitor advising the Indemnitor of the identity of the Special Legal Counsel so selected); or (ii) if
a Change in Control shall not have occurred, (A) by the Board of Directors by a majority vote of a quorum consisting of directors
not, at the time, parties to the Proceeding, or, if such quorum cannot be obtained, then by a majority vote of a committee of the
Board of Directors consisting solely of two or more directors not, at the time, parties to such Proceeding and who were duly designated
to act in the matter by a majority vote of the full Board of Directors in which the designated directors who are parties may participate,
(B) if the requisite quorum of the full Board of Directors cannot be obtained therefor and the committee cannot be established
(or, even if such quorum is obtainable or such committee can be established, if such quorum or committee so directs), by Special
Legal Counsel in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee, with Special Legal
Counsel selected by the Board of Directors or a committee of the Board of Directors by vote as set forth in clause (ii)(A) of this
paragraph 6(b) (or, if the requisite quorum of the full Board of Directors cannot be obtained therefor and the committee cannot
be established, by a majority of the full Board of Directors in which directors who are parties to the Proceeding may participate)
(if the Indemnitor selects Special Legal Counsel to make the determination under this clause (ii), the Indemnitor shall give prompt
written notice to the Indemnitee advising him or her of the identity of the Special Legal Counsel so selected) or (C) if so directed
by a majority of the members of the Board of Directors, by the stockholders of the Company. If it is so determined that the Indemnitee
is entitled to indemnification, payment to the Indemnitee shall be made within ten (10) days after such determination. Authorization
of indemnification and determination as to reasonableness of Expenses shall be made in the same manner as the determination that
indemnification is permissible. However, if the determination that indemnification is permissible is made by Special Legal Counsel
under clause (ii)(B) above, authorization of indemnification and determination as to reasonableness of Expenses shall be made in
the manner specified under clause (ii)(B) above for the selection of such Special Legal Counsel.

 

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		(c)	The Indemnitee shall cooperate with the person or entity making such determination with respect
to the Indemnitee’s entitlement to indemnification, including providing upon reasonable advance request any documentation
or information which is not privileged or otherwise protected from disclosure and which is reasonably available to the Indemnitee
and reasonably necessary to such determination. Any reasonable costs or expenses (including reasonable attorneys’ fees and
disbursements) incurred by the Indemnitee in so cooperating shall be borne by the Indemnitor (irrespective of the determination
as to the Indemnitee’s entitlement to indemnification) and the Indemnitor hereby indemnifies and agrees to hold the Indemnitee
harmless therefrom.

 

		(d)	In the event the determination of entitlement to indemnification is to be made by Special Legal
Counsel pursuant to paragraph 6(b) hereof, the Indemnitee, or the Indemnitor, as the case may be, may, within seven days after
such written notice of selection shall have been given, deliver to the Indemnitor or to the Indemnitee, as the case may be, a written
objection to such selection. Such objection may be asserted only on the grounds that the Special Legal Counsel so selected does
not meet the requirements of “Special Legal Counsel” as defined in paragraph 1 of this Agreement. If such written objection
is made, the Special Legal Counsel so selected may not serve as Special Legal Counsel until a court has determined that such objection
is without merit. If, within twenty (20) days after submission by the Indemnitee of a written request for indemnification pursuant
to paragraph 6(a) hereof, no Special Legal Counsel shall have been selected or, if selected, shall have been objected to, either
the Indemnitor or the Indemnitee may petition a court for resolution of any objection which shall have been made by the Indemnitor
or the Indemnitee to the other’s selection of Special Legal Counsel and/or for the appointment as Special Legal Counsel of
a person selected by the court or by such other person as the court shall designate, and the person with respect to whom an objection
is so resolved or the person so appointed shall act as Special Legal Counsel under paragraph 6(b) hereof. The Indemnitor shall
pay all reasonable fees and expenses of Special Legal Counsel incurred in connection with acting pursuant to paragraph 6(b) hereof,
and all reasonable fees and expenses incident to the selection of such Special Legal Counsel pursuant to this paragraph 6(d). In
the event that a determination of entitlement to indemnification is to be made by Special Legal Counsel and such determination
shall not have been made and delivered in a written opinion within ninety (90) days after the receipt by the Indemnitor of the
Indemnitee’s request in accordance with paragraph 6(a), upon the due commencement of any judicial proceeding in accordance
with paragraph 8(a) of this Agreement, Special Legal Counsel shall be discharged and relieved of any further responsibility in
such capacity.

 

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		(e)	If the person or entity making the determination whether the Indemnitee is entitled to indemnification
shall not have made a determination within forty-five (45) days after receipt by the Indemnitor of the request therefor, the requisite
determination of entitlement to indemnification shall be deemed to have been made and the Indemnitee shall be entitled to such
indemnification, absent: (i) a misstatement by the Indemnitee of a material fact, or an omission of a material fact necessary to
make the Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a
prohibition of such indemnification under applicable law. Such 45-day period may be extended for a reasonable time, not to exceed
an additional fifteen (15) days, if the person or entity making said determination in good faith requires additional time for the
obtaining or evaluating of documentation and/or information relating thereto. The foregoing provisions of this paragraph 6(e) shall
not apply: (i) if the determination of entitlement to indemnification is to be made by the stockholders and if within fifteen (15)
days after receipt by the Indemnitor of the request for such determination the Board of Directors resolves to submit such determination
to the stockholders for consideration at an annual or special meeting thereof to be held within seventy-five (75) days after such
receipt and such determination is made at such meeting, or (ii) if the determination of entitlement to indemnification is to be
made by Special Legal Counsel pursuant to paragraph 6(b) of this Agreement.

 

		7.	PRESUMPTIONS.

 

		(a)	In making a determination with respect to entitlement or authorization of indemnification hereunder,
the person or entity making such determination shall presume that the Indemnitee is entitled to indemnification under this Agreement
and the Indemnitor shall have the burden of proof to overcome such presumption.

 

		(b)	The termination of any Proceeding by conviction, or upon a plea of nolo contendere or its equivalent,
or an entry of an order of probation prior to judgment, creates a rebuttable presumption that the Indemnitee did not meet the requisite
standard of conduct described herein for indemnification.

 

		8.	REMEDIES.

 

		(a)	In the event that: (i) a determination is made in accordance with the provisions of paragraph 6
that the Indemnitee is not entitled to indemnification under this Agreement, or (ii) advancement of reasonable Expenses is not
timely made pursuant to this Agreement, or (iii) payment of indemnification due the Indemnitee under this Agreement is not timely
made, the Indemnitee shall be entitled to an adjudication in an appropriate court of competent jurisdiction of such Indemnitee’s
entitlement to such indemnification or advancement of Expenses.

 

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		(b)	In the event that a determination shall have been made pursuant to paragraph 6 of this Agreement
that the Indemnitee is not entitled to indemnification, any judicial proceeding commenced pursuant to this paragraph 8 shall be
conducted in all respects as a de novo trial on the merits. The fact that a determination had been made earlier pursuant to paragraph
6 of this Agreement that the Indemnitee was not entitled to indemnification shall not be taken into account in any judicial proceeding
commenced pursuant to this paragraph 8 and the Indemnitee shall not be prejudiced in any way by reason of that adverse determination.
In any judicial proceeding commenced pursuant to this paragraph 8, the Indemnitor shall have the burden of proving that the Indemnitee
is not entitled to indemnification or advancement of Expenses, as the case may be.

 

		(c)	If a determination shall have been made or deemed to have been made pursuant to this Agreement
that the Indemnitee is entitled to indemnification, the Indemnitor shall be bound by such determination in any judicial proceeding
commenced pursuant to this paragraph 8, absent: (i) a misstatement by the Indemnitee of a material fact, or an omission of a material
fact necessary to make the Indemnitee’s statement not materially misleading, in connection with the request for indemnification,
or (ii) a prohibition of such indemnification under applicable law.

 

		(d)	The Indemnitor shall be precluded from asserting in any judicial proceeding commenced pursuant
to this paragraph 8 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate
in any such court that the Indemnitor is bound by all the provisions of this Agreement.

 

		(e)	In the event that the Indemnitee, pursuant to this paragraph 8, seeks a judicial adjudication of
such Indemnitee’s rights under, or to recover damages for breach of, this Agreement, if successful on the merits or otherwise
as to all or less than all claims, issues or matters in such judicial adjudication, the Indemnitee shall be entitled to recover
from the Indemnitor, and shall be indemnified by the Indemnitor against, any and all reasonable Expenses actually incurred by such
Indemnitee in connection with each successfully resolved claim, issue or matter.

 

		9.	NOTIFICATION AND DEFENSE OF CLAIMS.

 

The Indemnitee agrees
promptly to notify the Indemnitor in writing upon being served with any summons, citation, subpoena, complaint, indictment, information,
or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered
hereunder, but the failure so to notify the Indemnitor will not relieve the Indemnitor from any liability that the Indemnitor may
have to Indemnitee under this Agreement unless the Indemnitor is materially prejudiced thereby. With respect to any such Proceeding
as to which Indemnitee notifies the Indemnitor of the commencement thereof:

 

		(a)	The Indemnitor will be entitled to participate therein at its own expense.

 

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		(b)	Except as otherwise provided below, the Indemnitor will be entitled to assume the defense thereof,
with counsel reasonably satisfactory to Indemnitee. After notice from the Indemnitor to Indemnitee of the Indemnitor’s election
so to assume the defense thereof, the Indemnitor will not be liable to Indemnitee under this Agreement for any legal or other expenses
subsequently incurred by Indemnitee in connection with the defense thereof other than reasonable costs of investigation or as otherwise
provided below. Indemnitee shall have the right to employ Indemnitee’s own counsel in such Proceeding, but the fees and disbursements
of such counsel incurred after notice from the Indemnitor of the Indemnitor’s assumption of the defense thereof shall be
at the expense of Indemnitee unless (a) the employment of counsel by Indemnitee has been authorized by the Indemnitor, (b) the
Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Indemnitor and the Indemnitee in
the conduct of the defense of such action, (c) such Proceeding seeks penalties or other relief against the Indemnitee with respect
to which the Indemnitor could not provide monetary indemnification to the Indemnitee (such as injunctive relief or incarceration)
or (d) the Indemnitor shall not in fact have employed counsel to assume the defense of such action, in each of which cases the
fees and disbursements of counsel shall be at the expense of the Indemnitor. The Indemnitor shall not be entitled to assume the
defense of any Proceeding brought by or on behalf of the Indemnitor, or as to which Indemnitee shall have reached the conclusion
specified in clause (b) above, or which involves penalties or other relief against Indemnitee of the type referred to in clause
(c) above.

 

		(c)	The Indemnitor shall not be liable to indemnify Indemnitee under this Agreement for any amounts
paid in settlement of any action or claim effected without the Indemnitor’s written consent. The Indemnitor shall not settle
any action or claim in any manner that would impose any penalty or limitation on Indemnitee without Indemnitee’s written
consent. Neither the Indemnitor nor Indemnitee will unreasonably withhold or delay consent to any proposed settlement.

 

		10.	NON-EXCLUSIVITY; SURVIVAL OF RIGHTS; INSURANCE SUBROGATION.

 

		(a)	The rights of indemnification and to receive advancement of reasonable Expenses as provided by
this Agreement shall not be deemed exclusive of any other rights to which the Indemnitee may at any time be entitled under applicable
law, the Charter, the Bylaws, any other agreement, a vote of stockholders, a resolution of the Board of Directors or otherwise,
except that any payments otherwise required to be made by the Indemnitor hereunder shall be offset by any and all amounts received
by the Indemnitee from any other indemnitor or under one or more liability insurance policies maintained by an indemnitor or otherwise
and shall not be duplicative of any other payments received by an Indemnitee from the Indemnitor in respect of the matter giving
rise to the indemnity hereunder. No amendment, alteration or repeal of this Agreement or any provision hereof shall be effective
as to the Indemnitee with respect to any action taken or omitted by the Indemnitee prior to such amendment, alteration or repeal.

 

		(b)	To the extent that the Company maintains an insurance policy or policies providing liability insurance
for directors and officers of the Company, the Indemnitee shall be covered by such policy or policies in accordance with its or
their terms to the maximum extent of the coverage available and upon any Change in Control the Company shall use commercially reasonable
efforts to obtain or arrange for continuation and/or “tail” coverage for the Indemnitee to the maximum extent obtainable
at such time.

 

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		(c)	In the event of any payment under this Agreement, the Indemnitor shall be subrogated to the extent
of such payment to all of the rights of recovery of the Indemnitee, who shall execute all papers required and take all actions
necessary to secure such rights, including execution of such documents as are necessary to enable the Indemnitor to bring suit
to enforce such rights.

 

		(d)	The Indemnitor shall not be liable under this Agreement to make any payment of amounts otherwise
indemnifiable hereunder if and to the extent that the Indemnitee has otherwise actually received such payment under any insurance
policy, contract, agreement, or otherwise.

 

		11.	CONTINUATION OF INDEMNITY.

 

		(a)	All agreements and obligations of the Indemnitor contained herein shall continue during the period
the Indemnitee is an officer or a member of the Board of Directors of the Company and shall continue thereafter so long as the
Indemnitee shall be subject to any threatened, pending or completed Proceeding by reason of such Indemnitee’s Corporate Status
and during the period of statute of limitations for any act or omission occurring during the Indemnitee’s term of Corporate
Status. This Agreement shall be binding upon the Indemnitor and its respective successors and assigns and shall inure to the benefit
of the Indemnitee and such Indemnitee’s heirs, executors and administrators.

 

		(b)	The Company shall require and cause any successor (whether direct or indirect by purchase, merger,
consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written
agreement in form and substance reasonably satisfactory to the Indemnitee, expressly to assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

 

		12.	SEVERABILITY.

 

If any provision or
provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever, (i) the validity,
legality, and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any
paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid,
illegal or unenforceable) shall not in any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions
of this Agreement (including, without limitation, each portion of any paragraph of this Agreement containing any such provision
held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to
give effect to the intent manifested by the provisions held invalid, illegal or unenforceable.

 

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		13.	EXCEPTIONS TO RIGHT OF INDEMNIFICATION OR ADVANCEMENT OF EXPENSES.

 

Notwithstanding any
other provisions of this Agreement, the Indemnitee shall not be entitled to indemnification or advancement of reasonable Expenses
under this Agreement with respect to (i) any Proceeding initiated by such Indemnitee against the Indemnitor other than a proceeding
commenced pursuant to paragraph 8 hereof, or (ii) to the extent applicable, any Proceeding for an accounting of profits arising
from the purchase and sale by Indemnitee of securities of the Company in violation of Section 16(b) of the Securities Exchange
Act of 1934, as amended, rules and regulations promulgated thereunder, or any similar provisions of any federal, state or local
statute.

 

		14.	NOTICE TO THE COMPANY STOCKHOLDERS.

 

Any indemnification
of, or advancement of reasonable Expenses, to an Indemnitee in accordance with this Agreement, if arising out of a Proceeding by
or in the right of the Company, shall be reported in writing to the stockholders of the Company with the notice of the next Company
stockholders’ meeting or prior to the meeting.

 

		15.	HEADINGS.

 

The headings of the
paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or
to affect the construction thereof.

 

		16.	MODIFICATION AND WAIVER.

 

No supplement, modification
or amendment of this Agreement shall be binding unless executed in writing by each of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar)
nor shall such waiver constitute a continuing waiver.

 

		17.	NOTICES.

 

All notices, requests, demands, and other
communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted
for by the party to whom said notice or other communication shall have been directed, or (ii) mailed by certified or registered
mail with postage prepaid, on the third business day after the date on which it is so mailed, if so delivered or mailed, as the
case may be, to the following addresses:

 

If to the Indemnitee, to the address
set forth in the records of the Company. 

If to the Indemnitor, to: 

Jernigan Capital, Inc. 

6410 Poplar Avenue, Suite 650 

Memphis, TN 38119 

Attention: Chief Executive Officer

 

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with a copy (which shall not constitute
notice) to: 

Morrison & Foerster LLP 

2000 Pennsylvania Avenue 

Suite 6000 

Washington, DC 20006 

Attention: David Slotkin, Esq. 

Fax: 202-887-1554 

Email: DSlotkin@mofo.com

 

or to such other address as may have been
furnished to the Indemnitee by the Indemnitor or to the Indemnitor by the Indemnitee, as the case may be.

 

		18.	GOVERNING LAW.

 

The parties agree that
this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland, without
application of the conflict of laws principles thereof.

 

		19.	NO ASSIGNMENTS.

 

The Indemnitee may
not assign its rights or delegate obligations under this Agreement without the prior written consent of the Indemnitor. Any assignment
or delegation in violation of this paragraph 19 shall be null and void.

 

		20.	NO THIRD-PARTY RIGHTS.

 

Nothing expressed or
referred to in this Agreement will be construed to give any person other than the parties to this Agreement any legal or equitable
right, remedy or claim under or with respect to this Agreement or any provision of this Agreement. This Agreement and all of its
provisions are for the sole and exclusive benefit of the parties to this Agreement and their successors and permitted assigns.

 

		21.	COUNTERPARTS.

 

This Agreement may
be executed in one or more counterparts, each of which shall be deemed an original, but all of which together constitute an agreement
binding on all of the parties hereto.

 

[Signature page follows.]

 

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IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day and year first above written.

 

	 	JERNIGAN CAPITAL, INC.
	 	 
	 	By:	/s/ John A. Good
	 	Name: John A. Good
	 	Title:  President and Chief Operating Officer
	 	 
	 	INDEMNITEE:
	 	 
	 	By:	/s/ William C. Drummond
	 	Name: William C. Drummond
	 	Title: Senior Vice President, Chief Financial Officer and Secretary

 

Signature Page to Indemnification AgreementExhibit 10.40

 

 

 

November 12, 2015

 

Dear Robert Andrade (“Employee”):

 

On behalf of the Board of Directors of Fennec Pharmaceuticals,
Inc. (“Fennec” or the “Company”), I am pleased to make you an executable offer to join the Company as its
Chief Financial Officer. The purpose of this agreement is to clarify the terms of Employee’s employment with the Company,
including Employee’s compensation level and benefit entitlements.

 

1.    Employment and Duties.

 

A. The Company hereby agrees to employ Employee as Chief Financial
Officer (“CFO”) as of November 12, 2015 (the “Effective Date”). In that position, Employee will report
directly to the Company’s Chief Executive Officer, and Employee hereby agrees to accept such employment upon the terms and
conditions hereinafter set forth.

 

B. Employee will perform the duties inherent in Employee’s
position in good faith and in a reasonable and appropriate manner.

 

2.    Compensation.

 

A. Employee’s initial base salary will be at the rate
of $165,000 per year. Employee’s base salary will be subject to adjustment by the Company's Board of Directors on an annual
basis.

 

B. Employee shall be entitled to receive an annual bonus based
upon the Company’s and Employee’s performance during the applicable year (the “Annual Bonus”). The Annual
Bonus shall be determined and paid by the Company’s Board of Directors by no later than the close of the first quarter of
the following calendar year.

 

C. Employee’s base salary will be paid at periodic intervals
in accordance with the Company's payroll practices for salaried employees. The Company will deduct and withhold, from the base
salary and bonuses payable to Employee hereunder, any and all applicable Federal, state and local income and employment withholding
taxes and any other amounts required to be deducted or withheld by the Company under applicable statute or regulation.

 

    	 		 

     

    

  

3.    Employee Stock Options.

 

A. Upon execution of this Agreement and conditional upon the
approval of Fennec’s shareholders, as required by applicable law and regulations, and any other regulatory requirements,
Fennec will extend Employee's existing options (the “Equity Options”) to their original expiry date of seven years
from issuance, provided that the expiry date of the options granted on August 18, 2010 shall expire on August 18, 2018 if the Company’s
stock option plan (the Plan”) is amended to permit such a term. These options will be immediately vested and shall otherwise
be subject to the terms and conditions of the Plan, as amended. For the avoidance of doubt, the Equity Options are listed below
with their amended expiry date of August 18, 2017 and/or August 18, 2018 (as applicable) conditioned as stated above.

 

	 	 	 	 	 	 	 	 	 	 	Current	 	Amended	 
	Employee	 	Grant Date	 	Shares	 	 	Strike Price (CAD)	 	 	Expiry Date	 	Expiry Date	 
	Robert Andrade	 	8/18/2011	 	 	17,050	 	 	$	1.89	 	 	8/13/2016	 	8/18/2018	 
	Robert Andrade	 	8/18/2010	 	 	323,961	 	 	$	2.43	 	 	8/13/2016	 	8/18/2017	*
	 	 	Total	 	 	341,011	 	 	 	 	 	 	 	 	 	 

* Or 8/18/2018, if the Plan is amended to permit such a term.

 

B. At the discretion of the Company’s Board of Directors,
Employee may be granted stock option awards in addition to the Equity Grant described in 3(A).

 

4.    Expense Reimbursement. Employee
will be entitled to reimbursement from the Company for all customary, ordinary and necessary business expenses incurred by Employee
in the performance of Employee’s duties hereunder, provided Employee furnish the Company with vouchers, receipts and other
details of such expenses within ninety(90) days after they are incurred.

 

5.    Fringe Benefits. Employee
will be eligible to participate in any group life insurance plan, group medical and/or dental insurance plan, accidental death
and dismemberment plan, short-term disability program and other employee benefit plans, including any Section 401(k) plan or employee
stock purchase plan if and when established, which are made available to executive officers of the Company and for which Employee
otherwise qualify.

 

6.    Vacation. Employee will
accrue paid vacation benefits in accordance with Company policy in effect for executive officers.

 

7.    Proprietary Information. Upon
the commencement of Employee’s services as CFO, Employee will sign and deliver to the Company the standard-form Proprietary
Information and Inventions Agreement required of all key employees of the Company.

 

8.    Termination of Employment.

 

A. Employee’s employment shall commence as of the Effective
Date and shall continue for a period of one (1) year unless terminated by either party, provided, however that the term of this
Agreement shall be extended automatically for additional one-year periods (the “Renewal Term”).

 

Andrade Employment Contract

 

    	 		Page 2 of 5

     

    

  

B. The Company may terminate Employee’s employment under
this agreement at any time for any reason by providing Employee with at least thirty (30) days prior written notice. However, such
notice requirement is not required if Employee’s employment is terminated for cause as described in subparagraph 8(D) below.

 

C. If Employee’s employment is terminated by the Company
(other than for cause) pursuant to Subsection 8(B) or by the Employee for “good reason” pursuant to Subsection 8(F),
and such termination is not for any of the reasons set out in Subsections 8(D), then, following such termination, Employee shall
be entitled to continue to receive the following as severance (the "Severance Benefits"):

 

(i) an amount equal to three (3) months of Employee’s
Base Salary (if terminated on or prior to April 30, 2016) or six (6) months of Employee’s Base Salary (if terminated after
April 30, 2016), in either case, minus any federal, state and local payroll taxes and other withholdings legally required or properly
requested by Employee. The applicable foregoing amount shall be paid to Employee in full within five (5) days of termination. For
the avoidance of doubt, if Employee is terminated (other than for cause) on May 1, 2016, Employee will receive an amount equal
to six (6) months of Employee's Base Salary;

 

(ii) a pro rata share of any Annual Bonus earned by Employee
for the year in which the termination takes place, minus any federal, state and local payroll taxes and other withholdings legally
required or properly requested by Employee; and

 

(iii) acceleration of vesting of stock options as a result of
such termination;

 

provided, however, Employee shall receive no Severance
Benefits under this Paragraph 8(C) unless Employee executes and delivers to the Company, in a form acceptable to the Company and
its counsel, a general release of claims against the Company (the “Release”), which Release is not revoked within any
time period allowed for revocation under applicable law.

 

D. The Company may at any time, upon written notice, terminate
Employee’s employment hereunder for cause as described in i and ii below. Such termination will be effective immediately
upon such notice.

 

For purposes of this agreement, Employee’s employment
with the Company will be deemed to have been involuntarily terminated for cause if Employee’s services are terminated by
the Company for one or more of the following reasons:

 

		 i.	acts of fraud or embezzlement or other intentional misconduct which adversely affects the Company's business, or

		ii.	misappropriation or unauthorized disclosure or use of the Company's proprietary information.

 

Andrade Employment Contract

 

    	 		Page 3 of 5

     

    

  

E. Employee’s employment shall automatically terminate
in the event of Employee’s death on the date of his death. However, all the “Severance Benefits” described in
Section 8(C) shall be extended to Employee's beneficiaries for a period of 12 months.

 

F. Employee may terminate his employment under this agreement
at any time for any reason upon thirty (30) days prior written notice to the Company. If the Employee terminates his employment
for "good reason", the Employee is entitled to receive the “Severance Benefits” described in Section 8(C)
and acceleration of vesting of stock options as a result of such termination. "Good reason" means: (i) a material decrease
in the Employee’s title, duties, responsibilities, and/or compensation and benefits; or (ii) the Company’s material
breach of the employment agreement that has not been cured within seven (7) days after Employee provides written notice of such
material breach.

 

9. Governing Law. This agreement shall be
governed by and construed according to the laws of the State of North Carolina, without reference to the choice of law or conflict
of law provisions of such laws.

 

10. Entire Agreement. This agreement (inclusive
of the Confidentiality and Intellectual Property Agreement incorporated herein) contains the entire agreement and understanding
by and between the Company and Employee with respect to the terms described herein, and any representations, promises, agreements
or understandings, written or oral, not herein contained shall be of no force or effect. No change or modification hereof shall
be valid or binding unless the same is in writing and signed by the parties hereto.

 

Please indicate your acceptance of the foregoing provisions
of this employment agreement by signing the enclosed copy of this agreement and returning it to the Company.

 

	 	Very truly yours,
	 	 
	 	Fennec Pharmaceuticals, Inc.
	 	 
	 	By /s/ Rostislav Raykov
	 	 
	 	Title: Chief Executive Officer

 

Andrade Employment Contract

 

    	 		Page 4 of 5

     

    

  

ACCEPTED BY AND AGREED TO

 

Signature: /s/ Robert Andrade

 

Dated: November 12, 2015

 

Andrade Employment Contract

 

    	 		Page 5 of 5

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