Document:

Exhibit 10.1

 

SIDE AGREEMENT

This side agreement
(this “Agreement”) is entered into as of August 4, 2016 between Keyuan Petrochemicals, Inc., a Nevada corporation
(the “Company”), and Delight Reward Limited, a British Virgin Islands company and a majority shareholder of
the Company (“Delight Reward”), as a side agreement to that certain share purchase and settlement agreement
that the Company, Delight Reward, and other affiliated parties of the Company entered into with Dragon State Limited (“Dragon
State”) and others on July 11, 2016 (the “Settlement Agreement”).

WHEREAS,
immediately prior to the execution of the Settlement Agreement, Dragon State was the holder of (1) 5,333,340 shares of Series B
preferred stock of the Company, par value $0.001 per share (the “Shares”), convertible a certain number of shares
of common stock, par value $0.001 per share (the “Common Stock”) (the Common Stock that are convertible from
the Shares, the “Convertible Shares”); (2) 800,001 series C warrants to purchase 800,001 shares of the Company’s
common stock at a price of $4.50 per share (subject to adjustments); and (3) 800,001 series D warrants to purchase 800,001 shares
of the Company’s Common Stock at a price of $5.25 per share (subject to adjustments, together with series C warrants, the
“Warrants”);

WHEREAS,
on October 28, 2014, Dragon State filed a complaint against, among others, the Company and Mr. Chunfeng Tao, seeking rescission
of the securities purchase agreement dated September 28, 2010 pursuant to which Dragon State purchased the Shares and Warrants
(together, the “Purchased Securities”), and the return of $20 million, and in the alternative, seeking monetary
damages to be determined at a trial but not less than $20 million (the “Complaint”);

WHEREAS,
Delight Reward and the Company acknowledge, agree, and confirm that the Warrants are not exercisable under their respective terms,
and therefore have no value;

WHEREAS,
in consideration of the Company’s entry into the Settlement Agreement and the payment made under the Settlement Agreement,
Delight Reward and the Company agreed that the Shares and the Warrants would be delivered to Delight Reward, and in return Delight
Reward would pay to the Company a fair market value for such securities;

WHEREAS,
pursuant to the Settlement Agreement, the Company and Delight Reward, as applicable, agreed to cause Dragon State to be paid RMB
18 million to purchase the Purchased Securities from Dragon State and to settle all other claims made in the Complaint, such payments
to be made within 10 business days of the execution of the Settlement Agreement;

WHEREAS,
the Company, together with Keyuan Group Limited, its wholly owned subsidiary, paid an aggregate amount of RMB 18 million to Dragon
State under the Settlement Agreement and Dragon State delivered the Shares and Warrants at the direction of the Company to Delight
Reward;

WHEREAS,
the parties hereto have deemed that it is fair and reasonable to determine the purchase price per Convertible Share based upon
the highest sale price of the Company’s Common Stock, as reported on the Over-the-Counter (“OTC”) Pink
Marketplace during the period commencing on the date when the Settlement Agreement was executed; and

    

     

    

WHEREAS,
Delight Reward has agreed not to claim, or attempt to claim for any reason and in any circumstance, that the Warrants are exercisable.

Now,
therefore, in consideration of the mutual agreements contained in this Agreement, and for other good and valuable consideration
the receipt of which is hereby acknowledged, the parties hereto agree as follows:

 

 

ARTICLE I. 

PURCHASE

 

The Company has
paid all necessary amounts under the Settlement Agreement, and Delight Reward has received the Purchased Securities pursuant to
the Settlement Agreement, and Delight Reward shall pay to the Company for each Convertible Share the highest sale price of the
Company’s Common Stock per share as reported on the OTC Pink Marketplace during a period commencing on the date of the Settlement
Agreement (the aggregate amount for all Convertible Shares, the “Purchase Price”).

 

ARTICLE II. 

PAYMENT

 

Delight Reward shall
pay the Purchase Price within 10 days of the date hereof in US dollars or its equivalent in RMB (based on the interbank USD/RMB
exchange rate published by the People’s Bank of China at the date when the Settlement Agreement was executed).

ARTICLE III. 

REPRESENTATION AND WARRANTIES OF DELIGHT
REWARD

Delight Reward hereby represents and
warrants to the Company that:

Section 3. 1                Existence.

Delight Reward is
duly organized and validly existing and in good standing under the laws of its jurisdiction of organization, with all requisite
power and authority to own, lease, use and operate its properties and to conduct its business as currently conducted.

Section 3. 2                Authorization, Enforceability.

Delight Reward has
all necessary corporate power and authority to execute, deliver and perform its obligations under this Agreement and to consummate
the transactions contemplated hereby, and the execution, delivery and performance by Delight Reward of this Agreement has been
duly authorized by all necessary action on the part of Delight Reward; and this Agreement constitutes the legal, valid and binding
obligations of Delight Reward, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy,
insolvency, fraudulent transfer and similar laws affecting creditors’ rights generally or by general principles of equity,
including principles of commercial reasonableness, fair dealing and good faith.

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Section 3.3                 No Breach.

The execution, delivery
and performance of this Agreement by Delight Reward and the consummation by Delight Reward of the transactions contemplated hereby
does not and will not (a) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute
a default under, any material agreement to which Delight Reward is a party or by which Delight Reward is bound or to which any
of property or assets of Delight Reward is subject, (b) conflict with or result in any violation of the provisions of the
organizational documents of Delight Reward, or (c) violate any statute, order, rule or regulation of any court or governmental
agency or body having jurisdiction over Delight Reward or the property or assets of Delight Reward, except in the cases of clauses
(a) and (c), for such conflicts, breaches, violations or defaults as would not prevent the consummation of the transactions contemplated
by this Agreement.

Section 3.4                 Certain Fees.

No fees or commissions
are or will be payable by Delight Reward to brokers, finders, or investment bankers with respect to the purchase of the Purchased
Securities, or the consummation of the transaction contemplated by this Agreement. Delight Reward agrees that it will indemnify
and hold harmless the Company from and against any and all claims, demands, or liabilities for broker’s, finder’s,
placement, or other similar fees or commissions incurred by Delight Reward in connection with the purchase of the Purchased Securities
or the consummation of the transactions contemplated by this Agreement.

Section 3.5
                Investment.

The Shares and Warrants
are being acquired for Delight Reward’s own account, not as a nominee or agent, and with no present intention of distributing
the Purchased Securities or the Convertible Shares or any part thereof, and Delight Reward has no present intention of selling
or granting any participation in or otherwise distributing the same in any transaction in violation of the securities laws of
the United States or other jurisdiction, without prejudice, however, to Delight Reward’s right at all times to sell or otherwise
dispose of all or any part of the Purchased Securities or the Convertible Shares under a registration statement under the Securities
Act of 1933, as amended (the “Securities Act”), and applicable state securities laws or under an exemption
from such registration available thereunder (including, if available, the rules and regulations of the U.S. Securities and Exchange
Commission promulgated under the Securities Act by which securities may be sold without filing a registration statement which
are referred herein as the “Registration Exemptions”). Delight Reward was not formed for the purpose of acquiring
any of the Shares, the Warrants or the Convertible Shares. If Delight Reward should in the future decide to dispose of any of
the Shares, Warrants or Convertible Shares, Delight Reward understands and agrees (a) that it may do so only in compliance
with the Securities Act and applicable state or other securities laws, as then in effect, including a sale contemplated by any
registration statement pursuant to which such securities are being offered, or pursuant to an exemption from the Securities Act,
and (b) that stop-transfer instructions to that effect may be in effect with respect to such securities.

Section 3.6                 Nature of Purchaser.

Delight
Reward represents and warrants to, and covenants and agrees with, the Company that, (i) it is an “accredited investor”
within the meaning of Rule 501 of Regulation D promulgated by the United States Securities and Exchange Commission
pursuant to the Securities Act (the “Regulation D”), (ii) by reason of its business and financial experience
it has such knowledge, sophistication and experience in making similar investments and in business and financial matters generally
so as to be capable of evaluating the merits and risks of the prospective investment in the Purchased Securities and Convertible
Shares, (iii) was advised by the Company to obtain United States counsel, either obtained United States counsel or had a full and
fair opportunity and the means to obtain United States counsel, and (iv) is able to bear the economic risk of such investment and,
at the present time, would be able to afford a complete loss of such investment.

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Section 3.7                 Restricted Securities;
Affiliate Status.

Delight Reward understands
that the Purchased Securities and the Convertible Shares may be characterized as “restricted securities” under the
Securities Act inasmuch as they are being acquired in a transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances.
In this connection, Delight Reward represents that it is a sophisticated party knowledgeable with respect to Registration Exemptions.
Delight Reward (i) acknowledges that Delight Reward is deemed an “affiliate” of the Company under the Securities Act,
(ii) acknowledges that it understands the additional restrictions under the Securities Act applicable to affiliates of the Company,
and (iii) either (a) confirms having discussed such restrictions with United States securities counsel or (b) acknowledges that
it had both the means and a full and fair opportunity to obtain United States securities counsel and discuss such restrictions
prior to entering into this Agreement.

Section 3.8                 Legend.

Delight Reward understands
that any certificates or statements evidencing any Purchased Securities or the Convertible Shares may bear a legend in substantially
the following form (or a legend that provides a similar type disclaimer): “These securities have not been registered under
the Securities Act of 1933, as amended (the “Securities Act”). These securities may not be sold or offered for
sale except pursuant to an effective registration statement under the Securities Act or pursuant to an exemption from registration
thereunder, in each case in accordance with all applicable securities laws of the states or other jurisdictions, and in the case
of a transaction exempt from registration, such securities may only be transferred if the Company and transfer agent for such securities
has received documentation satisfactory to it that such transaction does not require registration under the Securities Act.”

Section 3.9                 Short Selling.

Delight Reward has
not entered into or effected any short sales of the Common Stock owned by it between the time it first began discussion with the
Company about the transactions contemplated by this Agreement and the date hereof.

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Section 3.10               No General Solicitation
or General Advertising.

Delight Reward is
not aware of any form of general solicitation or general advertising (within the meaning of Regulation D) in respect of the Purchased
Securities, including (1) any advertisement, article, notice or other communication published in any newspaper, magazine, or similar
media or broadcast over television, radio, or the internet; and (2) any seminar or meeting whose attendees have been invited by
any general solicitation or general advertising).

Section 3.11               Broker-Dealer Status.

Delight Reward is
not a broker dealer registered under Section 15(a) of the Exchange Act, or a member of Financial Industry Regulatory Authority,
Inc. or an entity engaged in the business of being a broker-dealer.

Section 3.12               Offering Materials.

Delight Reward did
not receive from the Company or its agent any offering materials or other documents in connection with offers and sales of the
Purchased Securities.

Section 3.13               Bad Actor.

Delight Reward and
its beneficial owners of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting
power (each, a “Covered Person”) is not subject to any of the “Bad Actor” disqualifications described
in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification
Event covered by Rule 506(d)(2) or (d)(3) under the Securities Act. Delight Reward has exercised reasonable care to determine whether
any Covered Person is subject to a Disqualification Event. The purchase of the Purchased Securities or the conversion of the Shares
by Delight Reward will not subject the Company to any Disqualification Event. Delight Reward acknowledges that it is aware of the
settlement between the Company and the U.S. Securities and Exchange Commission, which was approved by the United District Court
for the District of Columbia on July 2, 2013, which may have triggered disqualification under Rule 506(d)(1) under the Securities
Act but occurred before September 23, 2013.

ARTICLE IV. 

REPRESENTATIONS AND WARRANTIES OF
THE COMPANY

The Company represents and warrants
to the Purchaser as follows:

Section 4.1                 Due Authorization.

This Agreement has
been duly and validly authorized, and constitutes the legal, valid and binding obligations of the Company, enforceable in accordance
with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors’ rights and by general principles of equity, including principles of commercial
reasonableness, fair dealing and good faith.

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Section 4.2                 Valid Issuance; No
Preemptive Rights.

Each of (i) the Shares
have been, and, (ii) upon the due conversion of Shares, the Convertible Shares shall be, duly authorized in accordance with the
articles of incorporation of the Company and, when issued and delivered upon conversion into shares of Common Stock, such Common
Stock, will be validly issued, fully paid and non-assessable.

Section 4.3                 No Integration.

Neither
the Company nor any person, or any other person that directly or indirectly through one or more intermediaries controls, is controlled
by or is under common control with, the Company, has, directly or indirectly through any agent,
sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any “security” (as defined in
the Securities Act) that is or will be integrated with the sale of the Purchased Securities in a manner that would require registration
under the Securities Act. 

Section 4.4                 No General Solicitation
or General Advertising.

Neither the Company
nor any Person acting on behalf of the Company has offered or sold any of the Purchased Securities by any form of general solicitation
or general advertising (within the meaning of Regulation D, and including (1) any advertisement, article, notice or other communication
published in any newspaper, magazine, or similar media or broadcast over television, radio, or the internet; and (2) any seminar
or meeting whose attendees have been invited by any general solicitation or general advertising).

Section 4.5                 Certain Fees.

There are no fees
or commissions are or will be payable by the Company to brokers, finders, or investment bankers with respect to the sale and purchase
of any of the Purchased Securities or the issuance of the Convertible Shares or the consummation of the transaction contemplated
by this Agreement.

Section 4.6                 Offering Materials.

Neither the Company
nor any agents of the Company provided Delight Reward with any offering materials or any other documents in connection with offer
and sale of the Purchased Securities.

Section 4.7                 Bad Actor.

The Company and its
officers and directors are not subject to any Disqualification Event except for a Disqualification Event covered by Rule 506(d)(2)
or (d)(3) under the Securities Act. Delight Reward has exercised reasonable care to determine whether any Covered Person is subject
to a Disqualification Event. The Company is a party of a settlement, which would potentially have triggered disqualification under
Rule 506(d)(1) under the Securities Act but occurred before September 23, 2013.

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ARTICLE V. 

COVENANTS

Section 5.1                 No Exercise of Warrants.

Delight Reward agrees,
confirms and acknowledges that the Warrants are not exercisable, and it will not claim or demand, or attempt to claim or demand
for any reason and in any circumstance that the Warrants are exercisable.

Section 5.2                 Taking of Necessary
Action.

Each of the parties
hereto shall use its commercially reasonable efforts promptly to take or cause to be taken all action and promptly to do or cause
to be done all things necessary, proper or advisable under law to consummate and make effective the transactions contemplated by
this Agreement.

ARTICLE VI. 

MISCELLANEOUS

Section 6.1                 Communications.

All notices and demands
provided for hereunder shall be in writing and shall be given by mail, facsimile, air courier guaranteeing overnight delivery or
personal delivery to the following addresses:

(i)                If
to Delight Reward

Delight Reward Limited

Uni8te 06, 21/F Beautiful
Group Tower

77 Connaught Road
Central, Hong Kong

Attn: Chunfeng Tao

Facsimile: +86 0574
86232618

 

(ii)               If to the Company:

Keyuan Petrochemicals, Inc.

c/o Ningbo Keyuan Plastics Co., Ltd. 

No. 98 Gangkou Road,

Qijiashan, Beilun District, Ningbo
City,

Zhejiang Province, China 315803

Attention: Feng Chen

Facsimile:
+86 0574 86232616

 

or to such other address as the Company
or the Delight Reward may designate in writing. All notices and communications shall be deemed to have been duly given: at the
time delivered by hand, if personally delivered; upon actual receipt if sent by registered or certified mail, return receipt requested,
or regular mail, if mailed; when receipt acknowledged, if sent via facsimile; and upon actual receipt when delivered to an air
courier guaranteeing overnight delivery.

Section 6.3                 Governing Law.

This Agreement will
be construed in accordance with and governed by the laws of the State of New York without regard to conflicts of laws principles.
Any controversy, dispute or claim arising out of or in connection with this Agreement (including, without limitation, the existence,
validity, interpretation or breach hereof and any claim based on contract, tort of statute) may be brought in any New York State
or federal court.

Section 6.4                 Execution in Counterparts.

This Agreement may
be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which counterparts,
when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute
but one and the same agreement. Facsimile or electronic (i.e., PDF) signatures shall be as effective as original signatures.

[Signature Page Follows]

    7 

     

    

 

IN
WITNESS WHEREOF, the Company and Delight Reward have caused this Agreement to be executed by duly authorized persons
as of the date first written above.

	 	Keyuan Petrochemicals, Inc. 
	 	 
	 	By:	/s/ Feng Chen
	 	Name:

Title:	Feng Chen
Chief Executive Officer
	 	 
	 	 
		Delight Reward Limited
	 	 
	 	By:	/s/ Chunfeng Tao
	 	Name:

Title:	Chunfeng Tao
Director

 

8Exhibit 10.1

 

INDEMNIFICATION
AGREEMENT

 

This INDEMNIFICATION AGREEMENT (this “Agreement”)
is entered into as of August 4, 2016, by and among JERNIGAN CAPITAL, INC., a Maryland corporation (the “Company”
or the “Indemnitor”) and James D. Dondero (the “Indemnitee”).

 

WHEREAS, the Indemnitee
is a member of the Board of Directors of the Company and in such capacity 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 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.

 

    	2 

     

    

  

		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.

 

    	4 

     

    

  

		(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.

 

    	8 

     

    

  

		(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.

 

    	9 

     

    

  

		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: John A. Good

 

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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: Scott Lesmes

Fax: 202-887-1585

Email: slesmes@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/ James D Dondero
	 	Name: James D. Dondero
	 	Title: Director

 

Signature Page to Indemnification Agreement

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