PMC COMMERCIAL TRUST /TX
EMPLOYMENT AGREEMENT WITH RON DEKELBAUM
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<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>d48872exv10w5.htm
<DESCRIPTION>EMPLOYMENT AGREEMENT WITH RON DEKELBAUM
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.5</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>EMPLOYMENT AGREEMENT</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Employment Agreement (the &#147;Agreement&#148;) is made and entered into this 5th day of June&nbsp;2007
(the &#147;Effective Date&#148;) between PMC Commercial Trust (the &#147;Company&#148;), and Ron Dekelbaum
(&#147;Employee&#148;). This Agreement replaces and supercedes any previous Agreements between the two
parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company wishes to employ Employee as of the Effective Date, pursuant to the terms
and conditions set forth below; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Employee is likewise desirous of obtaining employment with the Company as of the
Effective Date, pursuant to the terms and conditions set forth below:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">NOW, THEREFORE, 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, this Agreement is hereby entered into as of the Effective Date as to
read as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ADHERENCE TO RULES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. At all times during his employment with the Company, Employee agrees to strictly adhere to,
sign, acknowledge, and obey all the rules, regulations, handbooks, covenants, and policies, now in
effect or as subsequently modified, governing the conduct of employees of the Company.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>PAGE 1</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TERM OF EMPLOYMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The term of Employee&#146;s employment under this Agreement will begin upon execution of this
Agreement and will continue thereafter until May&nbsp;1, 2008. The employment is at-will meaning the
Company or Employee can terminate the employment relationship at any time for any reason.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMPENSATION OF EMPLOYEE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <B>Base Salary. </B>During Employee&#146;s employment with the Company, he shall receive his regular
Base Salary of $160,992 less required withholdings to federal, state, and local taxing authorities,
payable to Employee on a semi-monthly basis, or otherwise in accordance with Company&#146;s then
applicable payroll procedures. Employee shall be entitled to participate in such benefit plans
currently in effect and maintained by the Company for its employees, in accordance with the terms
of such plans, as the same may be amended by the Company from time to time. The Company will pay
for health insurance for the Employee and make available health insurance for immediate family
members reimbursable by the Employee at the Company&#146;s cost.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <B>Additional Compensation. </B>Bonus compensation is at the discretion of the Chief Executive
Officer based on the direction from the Compensation Committee of the Board of Trust Managers.
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>PAGE 2</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TERMINATION OF EMPLOYMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <B>Severance. </B>In the event an Agreement is executed which results in a change of control or sale of the
company prior to May&nbsp;1, 2008 which thereby results in the Employee&#146;s termination or elimination of
the Employee&#146;s position, the Employee will be paid severance in the amount of $160,992 paid within
10&nbsp;days of termination less lawful deductions. In the event of the sale of all or substantially
all of the assets of the Company, it will be the responsibility of the Company to notify the
Purchaser or Purchasers of the obligations under this Agreement and to ensure that the Purchaser or
Purchasers will assume the obligations under this Agreement.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <B>Arbitration. </B>If efforts to resolve a claim, dispute or controversy through dialogue are
determined by either party to be unsuccessful, then in that event, upon the written request of one
party served upon the other, any such claim, dispute or controversy shall be submitted to and
settled by arbitration in accordance with the Company&#146;s arbitration policy.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MISCELLANEOUS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <B>Vacation. </B>The employee shall be entitled to three weeks of paid vacation per year, which
shall be earned during the year.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <B>CLE/Bar License Fees</B>. The Employee shall be reimbursed by the Company for
reasonable professional and continuing legal education fees not to exceed $3,000 in a
calendar year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement and any amendments hereto shall inure to the benefit of and be binding upon the
Company and its successors and assigns, and shall be binding upon Employee and his heirs,
executors, and legal representatives. This Agreement supersedes all other oral and written
agreements, understandings, and communications between Employee and the Company, any of its
Affiliates, or any of their respective shareholders, directors, officers, employees, agents
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>PAGE 3</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or attorneys, and constitutes the entire agreement between the parties, with respect to the
employment of Employee. The parties acknowledge and agree that there are no agreements,
understandings, communications, representations or warranties with respect to such employment other
than those expressed in this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement and any amendments hereto shall be governed by and construed in accordance with
the laws of the State of Texas, without giving effect to the conflicts of laws provisions thereof.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above.
</DIV>
<DIV align="left">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="80%">
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<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">EMPLOYEE:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">PMC COMMERCIAL TRUST</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Ron H. Dekelbaum
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Jan F. Salit</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ron H. Dekelbaum
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Jan F. Salit</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
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</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">June&nbsp;5, 2007</TD>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>PAGE 4</B>
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