Document:

exv10w27

 

Exhibit 10.27

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

     WHEREAS, on the 28th day of April 2005 (the “Effective Date”) PMC Commercial Trust (the
“Company”) and Ron Dekelbaum (“Employee”) executed an Employment Agreement (the “Agreement”).

     WHEREAS, the Company and Employee wish to amend and extend the term of the Agreement through
December 31, 2006; and

     WHEREAS, in consideration of the foregoing premises, the mutual agreements contained herein
and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the terms and conditions of the Agreement including the severance provisions provided
in paragraph 5 are hereby extended through December 31, 2006; and

     WHEREAS, all other terms and conditions pursuant to the Agreement shall remain in full force
and effect.

     IN WITNESS WHEREOF, the parties have executed this Amendment as of January 12, 2006.

	 	 	 	 	 
	EMPLOYEE:

	 	 	 	PMC COMMERCIAL TRUST
	 
	 	 	 	 
	By: /s/ Ron H. Dekelbaum

	 	 	 	By: /s/ Jan F. Salit
	 

	 	 	 	 

	     Ron H. Dekelbaum

	 	 	 	Name: Jan F. Salit
	 

	 	 	 	Title: Executive Vice President and Chief
	 

	 	 	 	Investment Officer
	 

	 	 	 	Date: February 1, 2006exv10w34

 

Exhibit 10.34

FOURTH AMENDMENT TO CREDIT AGREEMENT

     THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of
December 28, 2005, among PMC COMMERCIAL TRUST, a real estate investment trust organized under the
laws of the State of Texas (“Borrower”), certain Lenders, and JPMORGAN CHASE BANK, N.A.
(successor by merger to Bank One, N.A. (Main Office Chicago)) (“Administrative Agent”).

PRELIMINARY STATEMENT:

     Borrower, Administrative Agent and Lenders are party to that certain Credit Agreement, dated
as of February 29, 2004 (as amended by that certain First Amendment to Credit Agreement, dated as
of March 15, 2004, by that certain Second Amendment to Credit Agreement, dated as of December 29,
2004, by that certain Third Amendment to Credit Agreement dated February 2, 2005 and as further
renewed, extended, waived, consented to, or amended and restated, the “Credit Agreement”),
pursuant to which the Lenders have made and may hereafter make loans to Borrower. The parties
hereto have agreed to amend the Credit Agreement as described herein.

     Accordingly, for adequate and sufficient consideration, the receipt of which is hereby
acknowledged, Borrower, Administrative Agent and Lenders agree as follows:

     1. Defined Terms; References. Unless otherwise stated in this Amendment (a) terms
defined in the Credit Agreement have the same meanings when used in this Amendment and (b)
references to “Sections,” “Schedules” and “Exhibits” are to sections, schedules and exhibits to the
Credit Agreement.

     2. Amendments.

(a) The defined term “Applicable Margin” in Section 1.1 of the Credit Agreement is
amended in its entirety as follows:

     “Applicable Margin” means, for any day, the margin of
interest under or over the Base Rate or the LIBOR Rate, as the case
may be, that is applicable when the Base Rate or the LIBOR Rate, as
applicable, is determined under this agreement, which margin of
interest shall be as follows:

	 	 	 	 	 
	Type of Borrowing	 	Applicable Margin
	Base Rate
	 	 	-0.7500	%
	LIBOR Rate
	 	 	1.6250	%

 

 

(b) The defined term “Stated Termination Date” in Section 1.1 of the Credit
Agreement is amended in its entirety as follows:

“Stated Termination Date” means December 31, 2006.

     3. Conditions Precedent. Notwithstanding any contrary provisions, the foregoing
paragraphs in this Amendment are not effective unless and until (a) the representations and
warranties in this Amendment are true and correct and (b) Administrative Agent receives
counterparts of this Amendment executed by each party named below.

     4. Ratifications. This Amendment modifies and supersedes all inconsistent terms and
provisions of the Credit Documents, and except as expressly modified and superseded by this
Amendment, the Credit Documents are ratified and confirmed and continue in full force and effect.
Borrower, Administrative Agent and Lenders agree that the Credit Documents, as amended by this
Amendment, continue to be legal, valid, binding and enforceable in accordance with their respective
terms.

     5. Representations and Warranties. Borrower hereby represents and warrants to
Administrative Agent and Lenders that (a) this Amendment and any Credit Documents to be delivered
under this Amendment have been duly executed and delivered by Borrower, (b) no action of, or filing
with, any Governmental Authority is required to authorize, or is otherwise required in connection
with, the execution, delivery, and performance by Borrower of this Amendment and any Credit
Document to be delivered under this Amendment, (c) this Amendment and any Credit Documents to be
delivered under this Amendment are valid and binding upon Borrower and are enforceable against
Borrower in accordance with their respective terms, except as limited by any applicable Debtor
Relief Laws, (d) the execution, delivery and performance by Borrower of this Amendment and any
Credit Documents to be delivered under this Amendment do not require the consent of any other
Person and do not and will not constitute a violation of any Governmental Requirements, agreements
or understandings to which Borrower is a party or by which Borrower is bound, (e) the
representations and warranties contained in the Credit Agreement, as amended by this Amendment, and
any other Credit Document are true and correct in all material respects as of the date of this
Amendment, and (f) as of the date of this Amendment, no Event of Default or Potential Default
exists or is imminent.

     6. References. All references in the Credit Documents to the “Credit Agreement” refer
to the Credit Agreement as amended by this Amendment. This Amendment is a “Credit Document”
referred to in the Credit Agreement and the provisions relating to Credit Documents in the Credit
Agreement are incorporated by reference, the same as if set forth verbatim in this Amendment.

     7. Counterparts. This Amendment may be executed in any number of counterparts with
the same effect as if all signatories had signed the same document.

     8. Parties Bound. This Amendment binds and inures to the benefit of Borrower,
Administrative Agent and each Lender, and, subject to Section 13 of the Credit Agreement, their
respective successors and assigns.

2

 

     9. Entirety. THIS AMENDMENT, THE CREDIT AGREEMENT AS AMENDED BY THIS AMENDMENT, AND
THE OTHER CREDIT DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES FOR THE TRANSACTIONS
THEREIN, AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     EXECUTED as of the date first stated above.

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 	 	as Administrative Agent, Bank One and a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 

	/s/ John M. Curtin
 

	 	 
	 

	 	
Name: 
	
 

John M. Curtin
	 	 
	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	PMC COMMERCIAL TRUST,	 	 
	 	 	as Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 
	/s/ Barry Berlin
 

	 	 
	 	 	Name: Barry Berlin	 	 
	 	 	Title: Chief Financial Officer	 	 

3exv10w35

 

Exhibit 10.35

INDEMNIFICATION AGREEMENT

     This INDEMNIFICATION AGREEMENT (the “Agreement”) is made and entered into effective as of this
___ day of                     , 2006, by and between PMC Commercial Trust, a Texas real estate investment
trust (including any successors thereto, the “Company”), and                                         
(“Indemnitee”).

RECITALS:

     WHEREAS, competent and experienced persons are reluctant to serve or to continue to serve
entities as trust managers, directors, officers, or in other capacities unless they are provided
with adequate protection through insurance or indemnification, or both, against claims and actions
against them arising out of their service to and activities on behalf of those entities.

     WHEREAS, the current uncertainties relating to the availability of adequate insurance for
trust managers, directors and officers have increased the difficulty for entities to attract and
retain competent and experienced persons.

     WHEREAS, the Board of Trust Managers of the Company (the “Board”) has determined that the
continuation of present trends in litigation will make it more difficult to attract and retain
competent and experienced persons, that this situation is detrimental to the best interests of the
Company’s shareholders, and that the Company should act to assure its trust managers and officers
that there will be increased certainty of adequate protection in the future.

     WHEREAS, it is reasonable, prudent, and necessary for the Company to obligate itself
contractually to indemnify its trust managers and officers to the fullest extent permitted by
applicable law in order to induce them to serve or continue to serve the Company.

     WHEREAS, Indemnitee is willing to serve and continue to serve the Company on the condition
that he be indemnified to the fullest extent permitted by law.

     WHEREAS, concurrently with the execution of this Agreement, Indemnitee is agreeing to serve or
to continue to serve as a trust manager or officer, or both, of the Company.

AGREEMENTS:

     NOW, THEREFORE, in consideration of the foregoing premises, Indemnitee’s agreement to serve or
continue to serve as a trust manager or officer, or both, of the Company, the covenants contained
in this Agreement, and for other good and valuable consideration, the receipt of which is hereby
acknowledged, the Company and Indemnitee hereby agree as follows:

	1.	 	Certain Definitions. For purposes of this Agreement:

	 	(a)	 	Affiliate: shall mean any Person that directly, or indirectly, through one or
more intermediaries, controls, is controlled by, or is under common control with the
Person specified.

 

 

	 	(b)	 	Change of Control: shall mean the occurrence of any of the following events:

	 	(i)	 	The acquisition after the date of this Agreement by any
individual, entity, or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”)) (a
“Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 20% or more of either (x) the then outstanding shares of beneficial interest of the Company (the “Outstanding Company Shares”)
or (y) the combined voting power of the then outstanding voting securities of
the Company entitled to vote generally in the election of trust managers (the
“Outstanding Company Voting Securities”); provided, however, that for purposes
of this paragraph (i), the following acquisitions shall not constitute a Change
of Control: (A) any acquisition directly from the Company or any Subsidiary of
the Company; (B) any acquisition by the Company or any Subsidiary of the
Company; (C) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any Subsidiary of the Company; or (D)
any acquisition by any entity or its security holders pursuant to a transaction
which complies with clauses (A), (B), and (C) of paragraph (iii) below;
	 
	 	(ii)	 	Individuals who, as of the date of this Agreement, constitute
the Board (the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a trust
manager subsequent to the date of this Agreement whose election or appointment
by the Board or nomination for election by the Company’s shareholders, was
approved by a vote of at least a majority of the trust managers then comprising
the Incumbent Board, shall in either case be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of trust managers or other actual or threatened solicitation of
proxies or consents by or on behalf of a Person other than the Board;
	 
	 	(iii)	 	Consummation of a reorganization, merger or consolidation or
sale or other disposition of all or substantially all of the assets of the
Company or an acquisition of assets of another entity (a “Business
Combination”), unless in each case, following such Business Combination, (A)
all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Company Shares and
Outstanding Company Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of,
respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of trust managers or directors, as the case may be,
of the entity resulting from such Business Combination (including, without
limitation, an entity which as a result of such

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	 	 	 	transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership, immediately prior to such Business
Combination of the Outstanding Company Shares and Outstanding Company Voting
Securities, as the case may be, (B) no Person (excluding any employee
benefit plan (or related trust) of the Company or the entity resulting from
such Business Combination) beneficially owns, directly or indirectly, 20% or
more of, respectively, the ownership interests of the entity resulting from
such Business Combination or the combined voting power of the then
outstanding voting securities of such entity except to the extent that such
ownership of the Company existed prior to the Business Combination and (C)
at least a majority of the members of the board of trust managers or
directors of the entity resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board, providing for such Business
Combination; or
	 
	 	(iv)	 	Approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company.

	 	(c)	 	Claim: shall mean any threatened, pending, or completed action, suit, or
proceeding (including, without limitation, securities laws actions, suits, and
proceedings and also any cross claim or counterclaim in any action, suit, or
proceeding), whether civil, criminal, arbitral, administrative, or investigative in
nature, or any inquiry or investigation (including discovery), whether conducted by the
Company or any other Person, that Indemnitee in good faith believes might lead to the
institution of any action, suit, or proceeding.
	 
	 	(d)	 	Expenses: shall mean all costs, expenses (including attorneys’ and expert
witnesses’ fees, costs and expenses), and obligations paid or incurred in connection
with investigating, defending (including affirmative defenses and counterclaims), being
a witness in, or participating in (including on appeal), or preparing to defend, be a
witness in, or participate in, any Claim relating to any Indemnifiable Event.
	 
	 	(e)	 	Indemnifiable Event: shall mean any actual or alleged act, omission,
statement, misstatement, event, or occurrence related to the fact that Indemnitee is or
was a trust manager, officer, agent, or fiduciary of the Company, or is or was serving
at the request of the Company as a trust manager, director, officer, trustee, agent, or
fiduciary of another corporation, partnership, joint venture, employee benefit plan,
trust, or other enterprise, or by reason of any actual or alleged thing done or not
done by Indemnitee in any such capacity. For purposes of this Agreement, the Company
agrees that Indemnitee’s service on behalf of or with respect to any Subsidiary,
Affiliate or employee benefits plan of the Company or any Subsidiary or Affiliate of
the Company shall be deemed to be at the request of the Company.

-3-

 

	 	(f)	 	Indemnifiable Liabilities: shall mean all Expenses and all other liabilities,
damages (including, without limitation, punitive, exemplary, and the multiplied portion
of any damages), judgments, payments, fines, penalties, amounts paid in settlement, and
awards paid or incurred that arise out of, or in any way relate to, any Indemnifiable
Event.
	 
	 	(g)	 	Potential Change of Control: shall be deemed to have occurred if (i) the
Company enters into an agreement, the consummation of which would result in the
occurrence of a Change of Control; (ii) any Person (including the Company) publicly
announces an intention to take or to consider taking actions that, if consummated,
would constitute a Change of Control; or (iii) the Board adopts a resolution to the
effect that, for purposes of this Agreement, a Potential Change of Control has
occurred.
	 
	 	(h)	 	Reviewing Party: shall mean a member or members of the Board who are not
parties to the particular Claim for which Indemnitee is seeking indemnification or if a
Change of Control has occurred or if there is a Potential Change of Control and
Indemnitee so requests, or if the members of the Board so elect, or if all of the
members of the Board are parties to such Claim, Special Counsel.
	 
	 	(i)	 	Special Counsel: shall mean special, independent legal counsel selected by
Indemnitee (if permitted by applicable law) and approved by the Company (which approval
shall not be unreasonably withheld), and who has not otherwise performed material legal
services for the Company or for Indemnitee within the last three years (other than as
Special Counsel under this Agreement or similar agreements); it being agreed that if
applicable law does not permit selection by the Indemnitee and/or approval by the
Company, then the selection and approval of such counsel shall be made in accordance
with applicable law.
	 
	 	(j)	 	Subsidiary: shall mean, with respect to any Person, any corporation or other
entity of which a majority of the voting power of the voting equity securities or
equity interest is owned, directly or indirectly, by that Person.

	2.	 	Indemnification and Expense Advancement.

	 	(a)	 	The Company shall indemnify Indemnitee and hold Indemnitee harmless to the
fullest extent permitted by law, as soon as practicable but in any event no later than
30 days after written demand is presented to the Company, from and against any and all
Indemnifiable Liabilities. Notwithstanding the foregoing, the obligations of the
Company under this Section 2(a) shall be subject to the condition that the Reviewing
Party shall not have determined (in a written opinion, in any case in which Special
Counsel is involved) that Indemnitee is not permitted to be indemnified under
applicable law. Nothing contained in this Agreement shall require any determination
under this Section 2(a) to be made by the Reviewing Party prior to the disposition or
conclusion of the Claim against the Indemnitee.

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	 	(b)	 	If so requested by Indemnitee, the Company shall advance to Indemnitee all
reasonable Expenses incurred by Indemnitee to the fullest extent permitted by law (or,
if applicable, reimburse Indemnitee for any and all reasonable Expenses incurred by
Indemnitee and previously paid by Indemnitee) within ten business days after such
request (an “Expense Advance”). In making any request for an Expense Advance,
Indemnitee shall submit (but only if required by applicable law) to the Company a
written affirmation of Indemnitee’s good faith belief that Indemnitee has met the
standards of conduct necessary for indemnification under the terms of this Agreement
and a written undertaking by or on behalf of Indemnitee to repay the amount paid or
reimbursed if it is ultimately determined that indemnification against Expenses
incurred by Indemnitee in connection with such Indemnifiable Event is prohibited
pursuant to this Agreement or applicable law. The Company shall be obligated from time
to time at the request of Indemnitee to make or pay an Expense Advance in advance of
the final disposition or conclusion of any Claim. In connection with any request for an
Expense Advance, if requested by the Company, Indemnitee or Indemnitee’s counsel shall
submit an affidavit stating that the Expenses to which the Expense Advances relate are
reasonable. Any dispute as to the reasonableness of any Expense shall not delay an
Expense Advance by the Company. If, when, and to the extent that the Reviewing Party
determines that Indemnitee would not be permitted to be indemnified with respect to a
Claim under applicable law or the amount of the Expense Advance was not reasonable, the
Company shall be entitled to be reimbursed by Indemnitee and Indemnitee hereby agrees
to reimburse the Company without interest (which agreement shall be an unsecured
obligation of Indemnitee) for (x) all related Expense Advances theretofore made or paid
by the Company in the event that it is determined that indemnification would not be
permitted or (y) the excessive portion of any Expense Advances in the event that it is
determined that such Expenses Advances were unreasonable, in either case, if and to the
extent such reimbursement is required by applicable law; provided, however, that if
Indemnitee has commenced legal proceedings in a court of competent jurisdiction to
secure a determination that Indemnitee could be indemnified under applicable law, or
that the Expense Advances were reasonable, any determination made by the Reviewing
Party that Indemnitee would not be permitted to be indemnified under applicable law or
that the Expense Advances were unreasonable shall not be binding, and the Company shall
be obligated to continue to make Expense Advances, until a final judicial determination
is made with respect thereto (as to which all rights of appeal therefrom have been
exhausted or lapsed), which determination shall be conclusive and binding. If there
has been a Potential Change of Control or a Change of Control, the Reviewing Party
shall be advised by or shall be Special Counsel, if Indemnitee so requests. If there
has been no determination by the Reviewing Party or if the Reviewing Party determines
that Indemnitee substantively is not permitted to be indemnified in whole or part under
applicable law or that any Expense Advances were unreasonable, Indemnitee shall have
the right to commence litigation in any court in the State of Texas having subject
matter jurisdiction thereof and in which venue is proper seeking an initial
determination by the court or challenging any

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	 	 	 	such determination by the Reviewing Party or any aspect thereof, and the Company
hereby consents to service of process and to appear in any such proceeding. Any
determination by the Reviewing Party otherwise shall be conclusive and binding on
the Company and Indemnitee.
	 
	 	(c)	 	With respect to any Claim relating to any Indemnifiable Event, the Company
shall be entitled to participate in or, at its option, assume the defense, appeal or
settlement of such Claim.
	 
	 	(d)	 	Nothing in this Agreement, however, shall require the Company to indemnify
Indemnitee with respect to any Claim initiated by Indemnitee, other than a Claim solely
seeking enforcement of the Company’s indemnification obligations to Indemnitee or a
Claim authorized by the Board.

	3.	 	Change of Control. The Company agrees that, if there is a Potential Change in
Control or a Change of Control and if Indemnitee requests in writing that Special Counsel be
the Reviewing Party, then Special Counsel shall be the Reviewing Party. In such a case, the
Company agrees not to request or seek reimbursement from Indemnitee of any indemnification
payment or Expense Advances unless Special Counsel has rendered its written opinion to the
Company and Indemnitee (i) that the Company was not or is not permitted under applicable law
to pay Indemnitee and to allow Indemnitee to retain such indemnification payment or Expense
Advances or (ii) that such Expense Advances were unreasonable. However, if Indemnitee has
commenced legal proceedings in a court of competent jurisdiction to secure a determination
that Indemnitee could be indemnified under applicable law or that the Expense Advances were
reasonable, any determination made by Special Counsel that Indemnitee would not be permitted
to be indemnified under applicable law or that the Expense Advances were unreasonable shall
not be binding, and Indemnitee shall not be required to reimburse the Company for any Expense
Advance, and the Company shall be obligated to continue to make Expense Advances, until a
final judicial determination is made with respect thereto (as to which all rights of appeal
therefore have been exhausted or lapsed), which determination shall be conclusive and binding.
The Company agrees to pay the reasonable fees of Special Counsel and to indemnify Special
Counsel against any and all expenses (including attorneys’ fees), claims, liabilities, and
damages arising out of or relating to this Agreement or Special Counsel’s engagement pursuant
hereto.
	 
	4.	 	Indemnification for Additional Expenses. The Company shall indemnify Indemnitee
against any and all costs and expenses (including attorneys’ and expert witnesses’ fees, costs
and expenses) and, if requested by Indemnitee, shall (within two business days of that
request) advance those costs and expenses to Indemnitee, that are incurred by Indemnitee if
Indemnitee, whether by formal proceedings or through demand and negotiation without formal
proceedings: (a) seeks to enforce Indemnitee’s rights under this Agreement; (b) seeks to
enforce Indemnitee’s rights to expense advancement or indemnification under any other
agreement or provision of the Company’s Declaration of Trust, as amended (the “Declaration of
Trust”), or Bylaws (the “Bylaws”) now or hereafter in effect relating to Claims for
Indemnifiable Events; or (c) seeks recovery under any directors’ and officers’ liability
insurance policies maintained by the Company,

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	 	 	in each case regardless of whether Indemnitee ultimately prevails; provided that a court of
competent jurisdiction has not found Indemnitee’s claim for indemnification or expense
advancements under the foregoing clause (a), (b) or (c) to be frivolous, presented for an
improper purpose, without evidentiary support, or otherwise sanctionable under Federal Rule
of Civil Procedure No. 11 or an analogous rule or law, and provided further, that if a court
makes such a finding, Indemnitee shall reimburse the Company for all amounts previously
advanced to Indemnitee pursuant to this Section 4. Subject to the provisos contained in the
preceding sentence, to the fullest extent permitted by law, the Company waives any and all
rights that it may have to recover its costs and expenses from Indemnitee.

	5.	 	Partial Indemnity. If Indemnitee is entitled under any provision of this Agreement
to indemnification by the Company for some, but not all, of Indemnitee’s Indemnifiable
Liabilities, the Company shall indemnify Indemnitee for the portion thereof to which
Indemnitee is entitled. Moreover, notwithstanding any other provision of this Agreement, to
the extent that Indemnitee has been successful on the merits or otherwise in defense of any or
all Claims relating in whole or in part to an Indemnifiable Event or in defense of any issue
or matter therein, including dismissal with prejudice, Indemnitee will be indemnified against
all Expenses incurred in connection therewith.
	 
	6.	 	Establishment of Trust. Upon the request of Indemnitee, the Company shall create a
trust (the “Trust”) for the benefit of Indemnitee and, to the extent such Trust has been
created, from time to time upon request by Indemnitee will, if so authorized by the Company’s
Board of Trust Managers, fund the Trust in an amount sufficient to satisfy any and all
Expenses reasonably anticipated at the time of each such request, and any and all judgments,
fines, penalties and settlement amounts of any and all Claims relating to an Indemnifiable
Event from time to time actually paid or reasonably anticipated or proposed to be paid. The
terms of the Trust will provide that (a) the Trust will not be revoked, or the principal
thereof invaded, without the written consent of Indemnitee, (b) the trustee thereunder (the
“Trustee”) will advance, within ten(10) days of a written request by Indemnitee, any and all
Expenses to Indemnitee, (c) the Trust will continue to be funded by the Company in accordance
with and to the extent of the funding obligation set forth above, (d) the Trustee will
promptly pay to Indemnitee all amounts to which Indemnitee is entitled in respect of the
Company’s indemnification obligations under this Agreement or otherwise and (e) all unexpended
funds in the Trust will revert to the Company upon a final determination by a court of
competent jurisdiction that Indemnitee has been fully indemnified under the terms of this
Agreement. The Trustee will be chosen by Indemnitee. Nothing in this Section 6 will relieve
the Company of any of its obligations under this Agreement.
	 
	7.	 	Contribution.

	 	(a)	 	Contribution Payment. To the extent the indemnification provided for under any
provision of this Agreement is determined (in the manner hereinabove provided) not to
be permitted under applicable law, the Company, in lieu of indemnifying Indemnitee,
shall, to the extent permitted by law, contribute to the amount of any and all
Indemnifiable Liabilities incurred or paid by Indemnitee for which such

-7-

 

	 	 	 	indemnification is not permitted. The amount the Company contributes shall be in
such proportion as is appropriate to reflect the relative fault of Indemnitee, on
the one hand, and of the Company and any and all other parties (including officers
and trust managers of the Company other than Indemnitee) who may be at fault
(collectively, including the Company, the “Third Parties”), on the other hand.

	 	(b)	 	Relative Fault. The relative fault of the Third Parties and the Indemnitee
shall be determined by reference to the relative fault of Indemnitee as determined by
the court or other governmental agency or to the extent such court or other
governmental agency does not apportion relative fault, by the Reviewing Party (which
shall include Special Counsel) after giving effect to, among other things, the relative
intent, knowledge, access to information, and opportunity to prevent or correct the
relevant events, of each party, and other relevant equitable considerations. The
Company and Indemnitee agree that it would not be just and equitable if contribution
were determined by pro rata allocation or by any other method of allocation that does
take account of the equitable considerations referred to in this Section 7(b).

	8.	 	Burden of Proof. In connection with any determination by the Reviewing Party or
otherwise as to whether Indemnitee is entitled to be indemnified under any provision of this
Agreement or to receive contribution pursuant to Section 7 of this Agreement, to the extent
permitted by law the burden of proof shall be on the Company to establish that Indemnitee is
not so entitled.
	 
	9.	 	No Presumption. For purposes of this Agreement, the termination of any Claim by
judgment, order, settlement (whether with or without court approval), or conviction, or upon a
plea of nolo contendere, or its equivalent, or an entry of an order of probation prior to
judgment shall not create a presumption (other than any presumption arising as a matter of law
that the parties may not contractually agree to disregard) that Indemnitee did not meet any
particular standard of conduct or have any particular belief or that a court has determined
that indemnification is not permitted by applicable law.
	 
	10.	 	Non-exclusivity. The rights of Indemnitee hereunder shall be in addition to any
other rights Indemnitee may have under the Bylaws or Declaration of Trust or the Texas Real
Estate Investment Trust Act or otherwise. To the extent that a change in the Texas Real
Estate Investment Trust Act (whether by statute or judicial decision) permits greater
indemnification by agreement than would be afforded currently under the Bylaws or Declaration
of Trust and this Agreement, it is the intent of the parties hereto that Indemnitee shall
enjoy by this Agreement the greater benefits so afforded by that change. Indemnitee’s rights
under this Agreement shall not be diminished by any amendment to the Declaration of Trust or
Bylaws, or of any other agreement or instrument to which Indemnitee is not a party, and shall
not diminish any other rights that Indemnitee now or in the future has against the Company.
	 
	11.	 	Liability Insurance. Except as otherwise agreed to by the Company and Indemnitee in
a written agreement, to the extent the Company maintains an insurance policy or policies
providing directors’ and officers’ liability insurance, Indemnitee shall be covered by that

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	 	   	policy or those policies, in accordance with its or their terms, to the maximum extent of
the coverage available for any Company trust manager or officer.

	12.	 	Period of Limitations. No action, suit, or proceeding may be brought against
Indemnitee or Indemnitee’s spouse, heirs, executors, or personal or legal representatives, nor
may any cause of action be asserted in any such action, suit, or proceeding, by or on behalf
of the Company, after the expiration of two years after the statute of limitations commences
with respect to Indemnitee’s act or omission that gave rise to the action, suit, proceeding,
or cause of action; provided, however, that, if any shorter period of limitations is otherwise
applicable to any such action, suit, proceeding, or cause of action, the shorter period shall
govern.
	 
	13.	 	Amendments. No supplement, modification, or amendment of this Agreement shall be
binding unless executed in writing by both of the parties hereto. No waiver of any provision
of this Agreement shall be effective unless in a writing signed by the party granting the
waiver. 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 that
waiver constitute a continuing waiver.
	 
	14.	 	Other Sources. Indemnitee shall not be required to exercise any rights that
Indemnitee may have against any other Person (for example, under an insurance policy) before
Indemnitee enforces his rights under this Agreement. However, to the extent the Company
actually indemnifies Indemnitee or advances him Expenses, the Company shall be subrogated to
the rights of Indemnitee and shall be entitled to enforce any such rights which Indemnitee may
have against third parties. Indemnitee shall assist the Company in enforcing those rights if
it pays his costs and expenses of doing so. If Indemnitee is actually indemnified or advanced
Expenses by any third party, then, for so long as Indemnitee is not required to disgorge the
amounts so received, to that extent the Company shall be relieved of its obligation to
indemnify Indemnitee or advance Indemnitee Expenses.
	 
	15.	 	Binding Effect. This Agreement shall be binding upon and inure to the benefit of and
be enforceable by the parties hereto and their respective successors, assigns (including any
direct or indirect successor by merger or consolidation), spouses, heirs, and personal and
legal representatives. This Agreement shall continue in effect regardless of whether
Indemnitee continues to serve as an officer or trust manager of the Company or another
enterprise at the Company’s request.
	 
	16.	 	Severability. If any provision of this Agreement is held to be illegal, invalid, or
unenforceable under present or future laws effective during the term hereof, that provision
shall be fully severable; this Agreement shall be construed and enforced as if that illegal,
invalid, or unenforceable provision had never comprised a part of this Agreement; and the
remaining provisions shall remain in full force and effect and shall not be affected by the
illegal, invalid, or unenforceable provision or by its severance from this Agreement.
Furthermore, in lieu of that illegal, invalid, or unenforceable provision, there shall be
added automatically as a part of this Agreement a provision as similar in

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	 	   	terms to the illegal, invalid, or unenforceable provision as may be possible and be legal,
valid, and enforceable.

	17.	 	Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Texas applicable to contracts made and to be
performed in that state without giving effect to the principles of conflicts of laws.
	 
	18.	 	Headings. The headings contained in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement.
	 
	19.	 	Notices. Whenever this Agreement requires or permits notice to be given by one party
to the other, such notice must be in writing to be effective and shall be deemed delivered and
received by the party to whom it is sent upon actual receipt (by any means) of such notice.
Receipt of a notice by the Secretary of the Company shall be deemed receipt of such notice by
the Company.
	 
	20.	 	Complete Agreement. This Agreement constitutes the complete understanding and
agreement among the parties with respect to the subject matter hereof and supersedes all prior
agreements and understandings between the parties with respect to the subject matter hereof
(including, without limitation, the Indemnification Agreement dated September 8, 1999 by and
among Indemnitee, PMC Capital, Inc., PMC Investment Corporation, PMC Funding Corp., PMC Asset
Management, Inc. and PMC Advisers, Ltd.) other than any indemnification rights that Indemnitee
may enjoy under the Declaration of Trust, the Bylaws, or the Texas Real Estate Investment
Trust Act.
	 
	21.	 	Counterparts. This Agreement may be executed and delivered (including by facsimile
transmission) in any number of counterparts, each of which shall be deemed an original, but in
making proof hereof it shall not be necessary to produce or account for more than one such
counterpart.

[Signature page to follow]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered as of the date first set forth above.

	 	 	 	 	 	 	 
	 	 	PMC COMMERCIAL TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	INDEMNITEE:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

S-1

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