Document:

Filed by Bowne Pure Compliance

 

Exhibit 10(xxiv)

PROMISSORY NOTE AND SECURITY AGREEMENT

This PROMISSORY NOTE AND SECURITY AGREEMENT (this “Agreement”) is entered into as of this 14th day of
March, 2008 between American Oil & Gas, Inc., a Nevada corporation ( the “Borrower”), and Jefferies Group, Inc., a
Delaware corporation (the “Lender”).

WHEREAS, Lender has previously, or concurrently with the execution of this Agreement, lent to the Borrower an
amount equal $8,600,000 (the “Loan”);

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

	1.	 	Promise to Pay. For value received, the Borrower promises to pay to the order of the Lender, in lawful
money of the United States of America, in immediately available funds, the principal amount of Eight Million, Six
Hundred Thousand Dollars ($8,600,000) or the then outstanding principal amount of the Loan, together with interest
thereon, on or prior to September 30, 2008. The principal amount of the Loan (and any accrued and unpaid
interest) shall bear interest from the date hereof at a rate equal to the Overnight London Interbank Offered Rate
(as quoted on Bloomberg) plus 2.5%. Interest will accrue each month and shall be paid on or prior to the fifth
business day of every month.

	2.	 	Voluntary Prepayment. The Borrower shall have the right, at any time, or from time to time, to prepay,
without premium or penalty, the whole or any part of the principal or interest amount owing hereunder and then
unpaid.

	3.	 	Fees and Expenses. The Borrower agrees to pay all fees, costs, and expenses, including all reasonable
attorneys’ fees and expenses, incurred by the Lender in connection with the enforcement of this Agreement or in
connection with any other matters contemplated by or arising under this Agreement.

	4.	 	Application of Payments. All payments made hereunder shall be applied first to any unpaid costs, fees
and expenses payable to the Lender hereunder, then to principal and accrued interest.

	5.	 	Security Interest. As security for the payment of all principal, interest, fees, costs, expenses,
indemnities and any other indebtedness arising under or in connection with this Agreement, whether now existing or
hereafter arising (collectively, the “Obligations”), Borrower hereby pledges its interests in, and grants to the
Lender a continuing security interest in and lien on all of, the Borrower’s right, title, and interest in, to and
under Account No. 101-90036 held at Jefferies & Company, Inc. and all of the financial assets contained now or
hereafter in such account (collectively, the “Collateral”). The Lender may without demand, presentment or notice
of any kind (i) exercise all of the rights and remedies provided to a secured party by the Uniform Commercial Code
in effect in the State of New York or (ii) sell or otherwise dispose of the Collateral or any part thereof and use
the proceeds in application of the Obligations in accordance with this Agreement.

	6.	 	Rights and Remedies. In any legal action or proceeding relating to this Agreement, the Borrower waives
the right to interpose any set off or counterclaim of any nature and description and any such set off,
counterclaim, claim or cause of action shall not constitute a defense to enforcement of this Agreement.
Notwithstanding the security interest as set forth in section 5, Lender shall have full recourse against Borrower
for payment of the Obligations.

	7.	 	Indemnity. The Borrower hereby agrees to indemnify and hold harmless (to the fullest extent permitted by
applicable law) the Lender and its affiliates, subsidiaries, officers, directors, employees, agents, controlling
persons and successors and assigns from and against any and all liabilities, losses, taxes, damages, costs and
expenses of any kind (including reasonable attorneys’ fees, costs and expenses) in connection with any
liabilities, losses, damages, actions, suits, judgments or investigative or administrative proceedings
(“Liabilities”) that may be suffered or incurred by any such indemnified person in connection with this
Agreement and the exercise of any rights, remedies or privileges hereunder, other than Liabilities arising as
a result of the Lender’s gross negligence or willful misconduct.

 

1

 

	8.	 	Notices. Any notice, request, demand or other communication permitted or required to be given hereunder
shall be in writing, shall be signed by the party giving it, shall be delivered personally or sent by overnight
mail by a reputable courier service to the addressee at the address set forth on the signature pages hereof or to
such changed address as such party may have fixed by notice and, unless otherwise specifically provided herein,
shall be deemed conclusively to have been given when delivered personally or sent by overnight mail delivery by a
reputable courier service.

	9.	 	Rights Cumulative. Each and every right, power and remedy hereby specifically given to the Lender shall
be in addition to every other right, power and remedy specifically given under this Agreement or under any other
document now or hereafter existing at law or in equity, or by statute, and each and every right, power and remedy
whether specifically herein given or otherwise existing may be exercised from time to time or simultaneously and
as often and in such order as may be deemed expedient by the Lender. All such rights, powers and remedies shall
be cumulative and the exercise or the beginning of exercise of one shall not be deemed a waiver of the right to
exercise any other or others. No delay or omission by the Lender in the exercise of any such right, power or
remedy and no renewal or extension of any of the Obligations, shall impair any such right, power or remedy or
shall be construed to be a waiver thereof.

	10.	 	Successors and Assigns. All of the Lender’s rights hereunder shall inure to the benefit of its
successors and assigns and all duties and obligations of the Borrower shall be binding upon its permitted
successors and assigns. The Borrower may not assign any of its rights, duties or obligations under this Agreement
without the Lender’s prior written consent.

	11.	 	Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other jurisdiction.

	12.	 	Usury Laws. It is the intention of the Lender and Borrower to conform strictly to all applicable usury
laws now or hereafter in force, and any interest payable under this Agreement shall be subject to reduction to the
amount not in excess of the maximum legal amount allowed under the applicable usury laws as now or hereafter
construed by the courts having jurisdiction over such matters. If such interest does exceed the maximum legal
rate, it shall be deemed a mistake and such excess shall be canceled automatically, credited against unpaid
principal or rebated to Borrower.

	13.	 	GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE
TO CONFLICTS OF LAWS PRINCIPLES.

	14.	 	JURISDICTION/WAIVER OF JURY TRIAL. THE BORROWER HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION
OF ANY UNITED STATES FEDERAL COURT OR ANY NEW YORK STATE COURT SITTING IN NEW YORK, NEW YORK IN ANY SUIT, ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND WAIVES ANY OBJECTION THE BORROWER MAY NOW OR
HEREAFTER HAVE TO THE VENUE OF ANY SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH A COURT IS AN
INCONVENIENT FORUM. THE BORROWER HEREBY WAIVES HIS/HER RIGHT TO A JURY TRIAL IN ANY SUIT, ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT. THE PARTIES AGREE AND CONTEMPLATE THAT THIS AGREEMENT IS AN
INSTRUMENT FOR THE PAYMENT OF MONEY ONLY SUBJECT TO THE ENFORCEMENT PROCEDURES OF CPLR 3213.

	15.	 	Amendments. None of the terms or provisions hereof may be waived, altered, modified, limited or amended
except by an agreement expressly referring hereto and to which the Lender consents in a writing duly signed by it.

2

 

2

 

	16.	 	Counterparts. This Agreement may be executed in counterparts, each of which shall constitute an original
but all of which taken together shall constitute but one agreement.

	17.	 	Final Agreement. This Agreement embodies the final agreement among the parties and supersedes any and
all prior agreements, whether written or oral, relating to the subject matter hereof.

* * *

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

AMERICAN OIL & GAS, INC.

By:  /s/ Andrew P. Calerich

Andrew P. Calerich

President

Address: 1050 17th Street, Suite 2400
Denver, Colorado 80265

JEFFERIES GROUP, INC.

By: /s/ Charles J. Hendrickson

Charles J. Hendrickson

Treasurer

Address: 520 Madison Avenue

12th Floor

New York, New York 10022

3

 

3Filed by Bowne Pure Compliance

 

Exhibit 10.1

PERSONAL AND CONFIDENTIAL

June 18, 2007

Peachtree Equity Investment Management, Inc.

WCI (Private Equity) LLC

1170 Peachtree Street, Suite 1610

Atlanta, GA 30309

Attention: Matthew J. Sullivan

Re: Marlin Business Services Corp. Board Representative

Dear Sirs:

This Letter Agreement relates to the attached Passivity Agreement, dated June 18, 2007 (the “Passivity
Agreement”), by and between Peachtree Equity Investment Management, Inc. and WCI (Private Equity) LLC (collectively,
the “Peachtree Group”) and the Federal Deposit Insurance Corporation (the “FDIC”). The FDIC has required that the
Peachtree Group enter into the Passivity Agreement as a condition to the FDIC’s approval of the application for the
issuance of Federal deposit insurance (the “FDIC Insurance”) under the Federal Deposit Insurance Act (12 U.S.C. §1815)
for Marlin Business Bank (the “Marlin Bank”), a proposed state nonmember bank being formed as a direct subsidiary of
Marlin Business Services Corp. (the “Company”).

In consideration for the Peachtree Group entering into and complying with the Passivity Agreement, the Company
hereby agrees to the following provisions of this Letter Agreement during the term from the Effective Date (as defined
below) until such time as the Peachtree Group is no longer subject to any of the terms and provisions of the Passivity
Agreement (the “Term”). For purposes of this Letter Agreement, “Effective Date” shall mean the effective date of the
issuance of the FDIC Insurance for Marlin Bank that occurs after the satisfaction by the Company and the Marlin Bank of
all the conditions in the Order of the FDIC, dated March 20, 2007.

As soon as reasonably practicable after the Effective Date, but no event later the thirty (30) days after the
Effective Date: (i) the Company shall create one vacancy on the Company’s Board of Directors (the “Board”) by
increasing the size of the Board from six (6) to seven (7) directors; and (ii) the Company shall take all necessary
action to promptly appoint one individual proposed by the Peachtree Group (the “Peachtree Director”) as a member of the
Board, to serve as a director until the expiration of the term ending at the Company’s 2008 annual meeting of
shareholders and until his or her successor has been duly elected and qualified or his or her earlier death,
resignation or removal; provided, however that any individual proposed as the initial Peachtree Director must meet the
qualifications to serve as a member of the Board as reasonably determined in good faith by either the Board or the
Nominating and Governance Committee of the Board (the “Nominating and Governance Committee”). For so long as the Peachtree Director meets the definition of “independent” as defined by the listing standards of the Nasdaq Stock
Market (“Director Independence”), the Peachtree Director shall at all times be treated as an independent director and
shall be granted all the rights and protections afforded to the Company’s independent directors.

 

1

 

Peachtree Equity Investment Management, Inc.

WCI (Private Equity) LLC

June 18, 2007

Page Two

Currently with the appointment of the Peachtree Director to the Board, the Board shall appoint the Peachtree
Director to serve on the Nominating and Governance Committee; provided that (i) the Peachtree Director satisfies the
definition of Director Independence and (ii) such appointment and service meets the requirements of other applicable
laws, rules and regulations.

During the Term, the Company shall include the Peachtree Director in the Board’s slate of nominees for election as
a director of the Company and use its reasonable best efforts to cause the election of the Peachtree Director at each
annual meeting of shareholders including, without limitation, recommending that the Company’s shareholders vote in
favor of the election of the Peachtree Director at such annual meeting and voting the shares of Company Common Stock
represented by all proxies granted by shareholders in connection with the solicitation of proxies by the Board of
Directors in connection with such meeting in favor of the Peachtree Director, except for such proxies that specifically
indicate a vote to withhold authority with respect to the Peachtree Director. Neither the Board nor the Company shall
take any position, make any statements or take any action inconsistent with such recommendations.

If, during the Term, there shall occur a vacancy in a Board seat previously occupied by the Peachtree Director by
reason of the resignation, removal, death or incapacity of the Peachtree Director, then the Company shall take all
necessary action to promptly fill such vacancy by an individual proposed by the Peachtree Group, unless the Nominating
and Governance Committee reasonably determines in good faith that such individual does not meet the qualifications of
the Board as then in effect, in which case the Peachtree Group shall promptly propose another individual so qualified
to be appointed in accordance with the provisions of this paragraph. If as a result of a vacancy describe in this
paragraph, the Nominating and Governance Committee does not include a Peachtree Director, the Board shall currently
upon the appointment a new Peachtree Director to the Board, appoint such Peachtree Director to the Nominating and
Governance Committee; provided that such director meets the qualifications set forth in paragraph four of this Letter
Agreement. Any replacement director appointed pursuant to this paragraph shall also be referred to as a “Peachtree
Director.”

If, during the Term, the Peachtree Group exercises its rights under the Registration Rights Agreement (as defined
below) to request that Company Common Stock held by the Peachtree Group (the “Peachtree Shares”) be registered, then
the Company shall, in addition to its other obligations thereunder, actively participate in the offering and sale of
the Peachtree Shares as reasonably requested by the Peachtree Group, including, without limitation, the participation
of the Company’s senior management in responding to underwriters’ due diligence inquiries and in taking part in
investor roadshow presentations. For purposes of this Letter Agreement, “Registration Rights Agreement” shall mean Second Amended and Restated Registration Rights Agreement, dated April
7, 2000, as amended by the Second Amendment dated July 2001.

 

2

 

Peachtree Equity Investment Management, Inc.

WCI (Private Equity) LLC

June 18, 2007

Page Three

The Company hereby represents and warrants to the Peachtree Group that (a) the Board has approved the actions to
be taken by the Company under this Letter Agreement and (b) this Letter Agreement is a valid and binding obligation of
the Company.

If in connection with any other party entering into a similar passivity agreement with the FDIC on behalf of the
Company, the Company provides such party rights or privileges that could reasonably be determined to be more favorable
to such party than are set forth herein, the Company shall promptly notify the Peachtree Group in writing of such
favorable terms and, upon acceptance by the Peachtree Group, this Letter Agreement shall be deemed to have been
modified so that the Peachtree Group shall receive and be entitled to the benefits of the more favorable terms.

 

3

 

Peachtree Equity Investment Management, Inc.

WCI (Private Equity) LLC

June 18, 2007

Page Four

Very truly yours,

MARLIN BUSINESS SERVICES CORP.

By: /s/ George D. Pelose                                                      

George D. Pelose

Chief Operating Officer and General Counsel

Confirmed and Agreed to:

PEACHTREE EQUITY INVESTMENT MANAGEMENT, INC.

By: /s/ David Christopher                                                      

WCI (PRIVATE EQUITY) LLC

By: /s/ David Christopher                                                      

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]