Document:

lmfa-ex1035_12.htm

Exhibit 10.35

Loan No.: 9100010227

FIRST AMENDMENT TO PLEDGE AGREEMENT

This FIRST AMENDMENT TO PLEDGE AGREEMENT (this “Amendment”) is effective as of March 15, 2017 and entered into this 31st day of March, 2017, between LM Funding, LLC, a Florida limited liability company (“Grantor”), and HEARTLAND BANK, an Arkansas state bank (“Secured Party”).  Capitalized terms used but not specifically defined herein shall have the meanings provided for such terms in the Pledge Agreement (as defined below).

RECITALS:

WHEREAS, Grantor, CRE Funding, LLC, a Florida limited liability company (“CRE”) and Secured Party have executed that certain Pledge Agreement dated as of December 30, 2014 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Pledge Agreement”);

WHEREAS, Grantor and CRE have requested that Secured Party (i) modify Exhibit A of the Pledge Agreement to reflect that Grantor owns 100% of the membership interests of LMF SPE#2, LLC and that such membership interests shall constitute the Pledged Equity Interests and (ii) release CRE from its obligations under the Pledge Agreement; and

WHEREAS, Secured Party is willing to make such modifications to the Pledge Agreement and release CRE from its obligations under the Pledge Agreement in accordance with and subject to the terms and conditions set forth herein.

NOW, THEREFORE, for and in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, intending to be legally bound, the parties agree as follows:

1.Acknowledgment of Parties.  Each of Grantor and Secured Party acknowledges and agrees that the recital of facts set forth in this Amendment are true and correct in all respects.

2.Amendments to Pledge Agreement.  

(a)Amendment to Exhibit A.  Exhibit A to the Pledge Agreement is hereby deleted in its entirety and replaced with Exhibit A hereto.

3.Release of CRE.  Secured Party hereby releases and discharges CRE from any and all obligations under the Pledge Agreement.

4.Conditions to Effectiveness.  The effectiveness of this Amendment is subject to Secured Party’s receipt of this Amendment, duly executed by Grantor and Secured Party.

5.Reaffirmation of Representations and Warranties.  Grantor hereby agrees with, reaffirms and acknowledges its respective representations and warranties contained in the Pledge Agreement.  Furthermore, Grantor hereby represents that its respective representations and 

WPB_ACTIVE 7608523.2 

 

warranties contained in the Pledge Agreement continue to be true and in full force and effect in all material respects.  This agreement, reaffirmation and acknowledgment is given to Secured Party by Grantor without defenses, claims or counterclaims of any kind.  To the extent that any such defenses, claims or counterclaims against Secured Party may exist, Grantor waives and releases Secured Party from same.

6.Ratification and Reaffirmation of Pledge Agreement.  Grantor ratifies and reaffirms all terms, covenants, conditions and agreements contained in the Pledge Agreement.

7.Legal Representation.  Each of the parties hereto acknowledge that they have been represented by independent legal counsel in connection with the execution of this Amendment, that they are fully aware of the terms and conditions contained herein, and that they have entered into and executed this Amendment as a voluntary action and without coercion or duress of any kind.

8.Partial Invalidity; No Repudiation.  If any of the provisions of this Amendment shall contravene or be held invalid under the laws of any jurisdiction, the Amendment shall be construed as if not containing such provisions and the rights, remedies, warranties, representations, covenants, and provisions hereof shall be construed and enforced accordingly in such jurisdiction and shall not in any manner affect such provision in any other jurisdiction, or any other provisions of this Amendment in any jurisdiction.

9.Binding Effect.  This Amendment is binding upon the parties hereto and their respective successors and assigns.

10.Full Force and Effect.  Except as otherwise modified hereby, the Pledge Agreement shall remain in full force and effect in accordance with its terms.

11.Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of Florida; provided that SECURED PARTY shall retain all rights under federal law.

12.Counterparts.  This Amendment and/or any documentation contemplated or required in connection herewith may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall be considered one and the same document.  Delivery of an executed counterpart of a signature page of this document by facsimile shall be effective as delivery of a manually executed counterpart of this document.

[SIGNATURE PAGES FOLLOW]

 

2

WPB_ACTIVE 7608523.2 

 

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, do hereby execute this Amendment the date and year first above written.

		
	
 
	
GRANTOR:

LM FUNDING, LLC

a Florida limited liability company

 

By: /s/ Bruce M. Rodgers

Name:  Bruce M. Rodgers
Title: Chief Executive Officer of LM Funding 

America, Inc., as Manager of LM Funding,

LLC

 

 

SECURED PARTY:

HEARTLAND BANK 

By: /s/ Mark Hoffpauir
Name:  Mark Hoffpauir
Title:  Executive Vice President

 

	
 
	
 

 

[Signature Page to First Amendment to Pledge Agreement – LM Funding, LLC]

WPB_ACTIVE 7608523.2 

 

EXHIBIT A

List of Pledged Equity Units 

 

				
	
Grantor
	
Issuer
	
Certificate Number
	
Membership Interests

	
LM Funding, LLC
	
LMF SPE#2, LLC
	
N/A
	
100%

	
 
	
 
	
 
	
 

 

WPB_ACTIVE 7608523.2Exhibit 10.1

 

INCENTIVE STOCK OPTION AWARD AGREEMENT

 

Stock
Option

 

Granted by

 

PB
BANCORP, INC.

 

under the

 

PB BANCORP, INC.

2017 EQUITY INCENTIVE PLAN

 

This stock option agreement
(“Option” or “Agreement”) is and will be subject in every respect to the provisions of the
2017 Equity Incentive Plan (the “Plan”) of PB Bancorp, Inc. (the “Company”) which are incorporated
herein by reference and made a part hereof, subject to the provisions of this Agreement. A copy of the Plan has been provided to
each person granted a stock option pursuant to the Plan. The holder of this Option (the “Participant”) hereby
accepts this Option, subject to all the terms and provisions of the Plan and this Agreement, and agrees that all decisions under
and interpretations of the Plan and this Agreement by the Compensation Committee of the Board of Directors of the Company (“Committee”)
will be final, binding and conclusive upon the Participant and the Participant’s heirs, legal representatives, successors
and permitted assigns. Except where the context otherwise requires, the term “Company” will include the parent and
all present and future subsidiaries of the Company as defined in Section 424(e) and 424(f) of the Internal Revenue Code of 1986,
as amended from time to time (the “Code”). Capitalized terms used herein but not defined will have the same
meaning as in the Plan.

 

		1.	Name of Participant.________________________________________________________________________

 

		2.	Date of Grant. March 30, 2017.

 

		3.	Total number of shares of Company common stock, $0.01
par value per share, that may be acquired pursuant to this Option.

(subject
to adjustment pursuant to Section 10 hereof).

 

		·	This is an Incentive Stock Option (“ISO”) to the maximum extent permitted under Code Section 422(d).

 

		4.	Exercise price per share. $ __________

(subject to adjustment pursuant to Section 10
below)

 

		5.	Expiration Date of Option. March 30, 2027.

 

		6.	Vesting Schedule. Except as otherwise provided in this Agreement, this Option first becomes
exercisable, subject to the Option’s expiration date, in accordance with the vesting schedule specified herein.

 

     

     

    

 

The Options granted under this
Agreement shall vest in five (5) equal annual installments, with the first installment becoming exercisable on the first anniversary
of the date of grant, or March 30, 2018, and succeeding installments on each anniversary thereafter, through March 30, 2022. To
the extent the Options awarded to me are not equally divisible by “5,” any excess Options shall vest on March 30,
2022.

 

This Option may
not be exercised at any time on or after the Option’s expiration date. Vesting will automatically accelerate pursuant to
Sections 2.9 and 4.1 of the Plan (in the event of death, Disability or Involuntary Termination following a Change in Control).

 

		7.	Exercise Procedure.

 

		7.1	Delivery of Notice of Exercise of Option. This Option will be exercised in whole or in part
by the Participant’s delivery to the Company of written notice (the “Notice of Exercise of Option” attached
hereto as Exhibit A) setting forth the number of shares with respect to which this Option is to be exercised, together with payment
by cash or other means acceptable to the Committee, including:

 

		·	Cash or personal, certified or cashier’s check in full/partial payment of the purchase price.

 

		·	Stock of the Company in full/partial payment of the purchase price.

 

		·	By a net settlement of the Option, using a portion of the shares obtained on exercise in payment
of the exercise price of the Option (and, if applicable, any required tax withholding).

 

		·	By selling shares from my Option shares through a broker in full/partial payment of the purchase
price.

 

		7.2	“Fair Market Value” shall have the meaning set forth in Section 8.1(s) of the
Plan.

 

		8.	Delivery of Shares.

 

		8.1	Delivery of Shares. Delivery of shares of Common Stock upon the exercise of this Option
will comply with all applicable laws (including the requirements of the Securities Act) and the applicable requirements of any
securities exchange or similar entity.

 

		9.	Change in Control.

 

		9.1	In the event of the Participant’s Involuntary Termination following a Change in Control,
all Options held by the Participant, whether or not exercisable at such time, will become fully exercisable, subject to the expiration
provisions otherwise applicable to the Option.

 

		9.2	A “Change in Control” will be deemed to have occurred as provided in Section
4.2 of the Plan.

 

    	 	2	 

     

    

 

		10.	Adjustment Provisions.

 

This Option,
including the number of shares subject to the Option and the exercise price, will be adjusted upon the occurrence of the events
specified in, and in accordance with the provisions of Section 3.4 of the Plan.

 

		11.	Termination of Option and Accelerated Vesting.

 

This Option will
terminate upon the expiration date, except as set forth in the following provisions:

 

		(i)	Death. This Option will become exercisable as to all shares subject to an outstanding Award,
whether or not then exercisable, in the event of the Participant’s Termination of Service by reason of the Participant’s
death. This Option may thereafter be exercised by the Participant’s legal representative or beneficiaries for a period of
one (1) year from the date of death, subject to termination on the expiration date of this Option, if earlier.

 

		(ii)	Disability. This Option will become exercisable as to all shares subject to an outstanding
Award, whether or not then exercisable, in the event of the Participant’s Termination of Service by reason of the Participant’s
Disability. This Option may thereafter be exercised for a period of one (1) year from the date of such Termination of Service by
reason of Disability, subject to termination on the Option’s expiration date, if earlier.

 

		(iii)	Retirement. Vested Options may be exercised for a period of one (1) year from the date of
Termination of Service by reason of Retirement, subject to termination on the Option’s expiration date, if earlier (and,
for purposes of clarity, non-vested Options will be forfeited on the date of Termination of Service by reason of Retirement). “Retirement”
shall have the meaning set forth in Section 8.1(dd) of the Plan. Options exercised more than three months following Retirement
will not have ISO treatment.

 

		(iv)	Termination for Cause.  If the Participant’s Service has been terminated for Cause,
all Options that have not been exercised will expire and be forfeited.

 

		(v)	Other Termination. If the Participant’s Service terminates for any reason other than
due to death, Disability, Retirement, Involuntary Termination following a Change in Control or for Cause, this Option may thereafter
be exercised, to the extent it was exercisable at the time of such termination, for a period of three (3) months following termination,
subject to termination on the Option’s expiration date, if earlier.

 

    	 	3	 

     

    

 

		12.	Miscellaneous.

 

		12.1	No Option will confer upon the Participant any rights as a stockholder of the Company prior to
the date on which the individual fulfills all conditions for receipt of such rights.

 

		12.2	This Agreement may not be amended or otherwise modified unless evidenced in writing and signed
by the Company and the Participant.

 

		12.3	Except as otherwise provided by the Committee, ISOs under the Plan are not transferable except
(1) as designated by the Participant by will or by the laws of descent and distribution, (2) to a trust established by the Participant,
or (3) between spouses incident to a divorce or pursuant to a domestic relations order, provided, however, that in the case of
a transfer described under (3), the Option will not qualify as an ISO as of the day of such transfer.

 

		12.4	This Agreement will be governed by and construed in accordance with the laws of the State of Connecticut.

 

		12.5	This Agreement is subject to all laws, regulations and orders of any governmental authority which
may be applicable thereto and, notwithstanding any of the provisions hereof, the Participant agrees that he will not exercise the
Option granted hereby nor will the Company be obligated to issue any shares of stock hereunder if the exercise thereof or the issuance
of such shares, as the case may be, would constitute a violation by the Participant or the Company of any such law, regulation
or order or any provision thereof.

 

		12.6	The granting of this Option does not confer upon the Participant
any right to be retained in the employ of the Company or any subsidiary.

 

[Signature Page to Follow]

 

    	 	4	 

     

    

 

IN WITNESS WHEREOF, the
Company has caused this Agreement to be executed in its name and on its behalf as of the date of grant of this Option set forth
above.

 

	 	PB BANCORP, INC.
	 	 
	 	 
	 	 	 
	 	By:	 
	 	Its:	 

 

PARTICIPANT’S ACCEPTANCE

 

The undersigned hereby
accepts the foregoing Option and agrees to the terms and conditions hereof, including the terms and provisions of the 2017 Equity
Incentive Plan. The undersigned hereby acknowledges receipt of a copy of the Company’s 2017 Equity Incentive Plan.

 

	 	PARTICIPANT
	 	 
	 	 
	 	 
	 	 

 

    	 	5	 

     

    

 

EXHIBIT A

NOTICE OF EXERCISE OF OPTION

 

I hereby exercise the stock
option (the “Option”) granted to me by PB Bancorp, Inc.

(the “Company”)
or its affiliate, subject to all the terms and provisions set forth in the Stock Option Agreement (the “Agreement”)
and the PB Bancorp, Inc. 2017 Equity Incentive Plan (the “Plan”) referred to therein, and notify you of my desire to
purchase __________________ shares of common stock of the Company (“Common Stock”) for a purchase price of $_______
per share.

 

I elect to pay the exercise
price by:

 

		___	Cash or personal, certified or cashier’s check in the sum of $_______, in full/partial payment
of the purchase price.

 

		___	Stock of the Company with a fair market value of $______ in full/partial payment of the purchase
price.*

 

		___	A net settlement of the Option, using a portion of the shares obtained on exercise in payment of
the exercise price of the Option (and, if applicable, any required tax withholding).

 

		___	Selling ______ shares from my Option shares through a broker in full/partial payment of the purchase
price.

 

I understand that after
this exercise, ____________ shares of Common Stock remain subject to the Option, subject to all terms and provisions set forth
in the Agreement and the Plan.

 

I hereby represent that
it is my intention to acquire these shares for the following purpose:

 

		___	investment

		___	resale or distribution

 

Please note: if your intention
is to resell (or distribute within the meaning of Section 2(11) of the Securities Act of 1933) the shares you acquire through this
Option exercise, the Company or transfer agent may require an opinion of counsel that such resale or distribution would not violate
the Securities Act of 1933 prior to your exercise of such Option.

 

	Date: ____________, _____.	_________________________________________
	 	Participant’s signature

 

*          If I elect to exercise
by exchanging shares I already own, I will constructively return shares that I already own to purchase the new option shares.
If my shares are in certificate form, I must attach a separate statement indicating the certificate number of the shares I am treating
as having exchanged. If the shares are held in “street name” by a registered broker, I must provide the Company with
a notarized statement attesting to the number of shares owned that will be treated as having been exchanged. I will keep the shares
that I already own and treat them as if they are shares acquired by the option exercise. In addition, I will receive additional
shares equal to the difference between the shares I constructively exchange and the total new option shares that I acquire.

 

    	 	6

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