AMENDMENT 2006-1 TO THE EMPLOYMENT AGREEMENT

Exhibit 10.1

AMENDMENT 2006-1
TO THE
EMPLOYMENT AGREEMENT

          AMENDMENT, dated as of May 19, 2006, between Marlin Business Services Corp., a Pennsylvania corporation (the “Company”) and George D. Pelose (the “Executive”).

RECITALS

          WHEREAS, the Company and Executive previously entered into an Employment Agreement, dated as of October 14, 2003 (the “Employment Agreement”), that sets forth the terms and conditions of Executive’s employment with the Company;

          WHEREAS, the Company desires to amend the Employment Agreement to change Executive’s title with the Company to Executive Vice President and to reflect his appointment as a member of the Office of the Chairman;

          WHEREAS, the Company also desires to amend the Employment Agreement to increase Executive’s base salary and change his annual target incentive bonus opportunity;

          WHEREAS, Executive has agreed to the changes to his Employment Agreement to reflect the foregoing; and

          WHEREAS, Section 18 of the Employment Agreement provides that the Employment Agreement may be amended pursuant to a written agreement between Executive and the Company.

          NOW, THEREFORE, the Company and Executive hereby agree that the Employment Agreement shall be amended as follows:

          1.          Paragraph A under the Background Section of the Employment Agreement is hereby amended by replacing the phrase “Senior Vice President and General Counsel” with the phrase “Executive Vice President and General Counsel”.

          2.          The first sentence of Section 1 of the Employment Agreement is hereby amended by replacing the phrase “Senior Vice President and General Counsel” with the phrase “Executive Vice President and General Counsel”.

          3.          A new sentence is hereby added to Section 1 of the Employment Agreement between the second and third sentences to read as follows:

                       “Executive shall also serve as a member of the Office of the Chairman.”