Document:

Exhibit 10.3

 

THIS WARRANT AND THE SHARES OF COMMON STOCK
ISSUABLE UPON THE EXERCISE HEREOF HAVE BEEN ISSUED AND SOLD WITHOUT REGISTRATION IN RELIANCE UPON EXEMPTIONS FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933 (THE “1933 ACT”) AND APPLICABLE STATE SECURITIES LAWS (THE “STATE ACTS”).
SUCH SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, OR TRANSFERRED OTHER THAN PURSUANT TO AN EFFECTIVE REGISTRATION OR AN EXEMPTION
THEREFROM UNDER THE 1933 ACT AND THE STATE ACTS.

 

WARRANT TO PURCHASE COMMON STOCK

OF

INDIEPUB ENTERTAINMENT, INC.

Exercisable Only

upon Conditions Herein Specified

 

	Holder:	MMB Holdings LLC
	 	 
	Initial Shares:	4,000,000

 

1.Grant of Warrants.
indiePub Entertainment, Inc., a Delaware corporation (formerly known as Zoo Entertainment, Inc.) (the “Corporation”),
hereby certifies that the above-named Holder (“holder”), its registered successors and permitted assigns registered
on the books of the Corporation maintained for such purposes as the registered holder hereof, for value received, is entitled to
purchase from the Corporation Four Million (4,000,000) fully paid and nonassessable
shares (the “Shares”) of common stock of the Corporation (the “Common Stock”), at the purchase price of
$0.40 per Share (the “Exercise Price”). The Exercise Price and the number of Shares are subject to adjustment (as hereinafter
provided) upon the terms and conditions provided in this warrant (the “Warrant” or “Warrant Certificate”).

 

This Warrant is issued
in connection with a Loan and Security Agreement among the Holder, the Corporation and the subsidiaries of the Corporation.

 

2.Exercise of
Warrant.

 

(a)This Warrant may
be exercised in whole or in part at any time prior to July 30, 2017. Upon presentation and surrender of this Warrant Certificate
and a Notice of Exercise in the form attached hereto as Exhibit “A” at the principal office of the Corporation
at 11258 Cornell Park Drive, Suite 608, Blue Ash, Ohio 45242, or at such other place as the Corporation may designate by notice
to the Holder hereof, together with a check payable to the order of the Corporation in the amount of the Exercise Price times the
number of Shares being purchased, the Corporation shall deliver to the Holder hereof, as promptly as practicable, certificates
representing the Shares being purchased. This Warrant may be exercised in whole or in part in minimum increments of the lesser
of 100 Shares or the number of Shares then represented by this Warrant which have not been previously exercised. In case of exercise
hereof in part only, the Corporation, upon surrender hereof, will deliver to the Holder a new Warrant Certificate or Warrant Certificates
of like tenor entitling the Holder to purchase the number of Shares as to which this Warrant has not been exercised.

 

    	 

    	 

    
 

(b)All or any part
of the Exercise Price per share may be paid by offset against indebtedness owed by the Corporation, or any other corporation of
which the Corporation owns at least 50% of the voting stock, to the Holder.

 

The Exercise Price
may also be paid by surrendering the right to a number of shares issuable upon exercise of the Warrant that have a fair market
value equal to or greater than the Exercise Price. The fair market value shall be the last reported price on the most recent date
of trading in the Common Stock. If the Common Stock is not traded, fair market value shall be as determined by the board of directors
of the Corporation.

 

3.Exchange and
Transfer of Warrant. This Warrant Certificate at any time prior to the exercise hereof, upon presentation and surrender to
the Corporation and compliance with Section 6 below, may be exchanged, alone or with other Warrant Certificates of like tenor registered
in the name of the Holder, for another Warrant Certificate or Warrant Certificates of like tenor in the name of such Holder or
its assignee or transferee exercisable for the same aggregate number of Shares as the Warrant Certificate or Warrant Certificates
surrendered.

 

4.Rights and
Obligations of Warrant Holder.

 

(a)The Holder of
this Warrant Certificate shall not, by virtue hereof, be entitled to any rights of a shareholder in the Corporation, either at
law or in equity; provided, however, that in the event that any certificate representing the Shares is issued to the Holder hereof
upon exercise of this Warrant, such Holder shall, for all purposes, be deemed to have become the holder of record of such Shares
on the date on which this Warrant Certificate, together with a duly executed purchase form, was surrendered and payment of the
Exercise Price was made, irrespective of the date of delivery of such Share certificate. The rights of the Holder of this Warrant
are limited to those expressed herein and the Holder of this Warrant, by its acceptance hereof, consents to and agrees to be bound
by and to comply with all the provisions of this Warrant Certificate. In addition, the Holder of this Warrant Certificate, by accepting
the same, agrees that the Corporation may deem and treat the person in whose name this Warrant Certificate is registered on the
books of the Corporation maintained for such purpose as the absolute, true and lawful owner for all purposes whatsoever.

 

(b)The Holder of
this Warrant Certificate, as such, shall not be entitled to vote or receive dividends or to be deemed the holder of Shares for
any purpose, nor shall anything contained in this Warrant Certificate be construed to confer upon the Holder of this Warrant Certificate,
as such, any of the rights of a shareholder of the Corporation including but not limited to any right to vote, give or withhold
consent to any action by the Corporation, whether upon any recapitalization, issue of stock, reclassification of stock, consolidation,
merger, share exchange, conveyance or otherwise, receive notice of meetings or other action affecting shareholders (except for
the notices provided for herein), or receive subscription rights, until this Warrant shall have been exercised and the Shares purchasable
upon the exercise hereof shall have become deliverable as provided herein.

 

    	 

    	 

    
 

5.Shares Underlying
Warrant. The Corporation covenants and agrees that all Shares delivered upon exercise of this Warrant shall, upon delivery
and payment therefor, be duly and validly authorized and issued, fully paid and nonassessable, and free from all liens, encumbrances
and charges with respect to the purchase thereof.

 

6.Disposition
of Warrants or Shares. The Holder of this Warrant Certificate and any transferee hereof or of the Shares issuable upon the
exercise of this Warrant, by their acceptance hereof or thereof, hereby understand and agree that this Warrant, and the Shares
issuable upon the exercise hereof, have not been registered under either the Securities Act of 1933 (the “1933 Act”)
or applicable state securities laws (the “State Acts”) and shall not be sold, pledged, hypothecated, donated or otherwise
transferred (whether or not for consideration) except upon the issuance to the Corporation of a favorable opinion of counsel or
submission to the Corporation of such evidence as may be reasonably satisfactory to counsel to the Corporation, in each such case,
to the effect that any such transfer shall not be in violation of the Act and the State Acts. It shall be a condition to the transfer
of this Warrant that any transferee hereof deliver to the Corporation its written agreement to accept and be bound by all of the
terms and conditions of this Warrant Certificate.

 

7.Adjustments.
The Exercise Price and the number of Shares for which this Warrant is exercisable as hereinabove provided shall be subject to adjustments
as follows:

 

(a)In case the Corporation
shall (i) pay a dividend on its Common Stock in shares of its Common Stock, (ii) subdivide its outstanding shares of Common Stock
into a greater number of shares, (iii) combine its outstanding shares of Common Stock into a lesser number of shares, or (iv) issue
by reclassification of its shares of Common Stock any shares of its capital stock, the number of Shares purchasable upon the exercise
of this Warrant in effect immediately prior thereto and the Exercise Price, in each case, shall be adjusted so that the Holder
shall be entitled to receive, upon exercise of this Warrant, the aggregate number of Shares which such Holder would have owned
or have been entitled to receive after the happening of such event, at the aggregate Exercise Price that such Holder would have
paid, in each case, had such Holder exercised this Warrant immediately prior to the record date in the case of such dividend or
the effective date in the case of any such subdivision, combination or reclassification. In addition, in the case (x) the Corporation
shall pay a dividend on the Common Stock in assets (other than cash or Common Stock) or (y) the Common Stock is or becomes converted
into any other security or asset, then the Shares to which the Holder is entitled shall include such other security or assets that
the Holder would have owned or have been entitled to receive after the happening of such event had such Holder exercised this Warrant
immediately prior to the record date in the case of such dividend or the effective date in the case of any such conversion. An
adjustment made pursuant to this subsection (a) shall be made whenever any such events shall happen, but shall become effective
retroactively after such record date or such effective date, as the case may be, as to portion of this Warrant exercised between
such record date or effective date and the date of happening of any such event.

 

(b)All adjustments
under this Section 7 shall be made to the nearest cent.

 

    	 

    	 

    
 

(c)In case at any
time conditions arise by reason of action taken by the Corporation which, in the opinion of its board of directors or in the opinion
of the Holder, are not adequately covered by the other provisions of this Section 7 and which might materially and adversely affect
the rights of the Holder, then the board of directors of the Corporation shall appoint a firm of independent certified public accountants
of recognized national standing, who may be the accountants then auditing the books of the Corporation. Such accountant shall determine
the adjustment, if any, on a basis consistent with the standards established in the other provisions of this Section 5, necessary
with respect to the Exercise Price or adjusted Exercise Price, as so to preserve, without dilution, the exercise rights of the
Holder. Upon receipt of such opinion, the board of directors of the Corporation shall forthwith make the adjustments described
in such report. In this regard, the Corporation shall be deemed to have undertaken a fiduciary duty with respect to the Holder.

 

(d)Whenever the Exercise
Price or the number of Shares is adjusted as herein provided, the Corporation shall prepare a certificate signed by the chief financial
officer of the Corporation setting forth the adjusted Exercise Price and the adjusted number of Shares and showing in reasonable
detail the facts upon which such adjustment is based. As promptly as practicable, the Corporation shall cause a copy of the certificate
referred to in this subsection (d) to be mailed to the Holder.

 

8.Merger, Consolidation,
Etc. In case the Corporation shall execute any agreement providing for the consolidation of the Corporation with or merger
of the Corporation into another corporation or any sale, transfer or lease to another corporation of all or substantially all the
property of the Corporation (each of the foregoing are referred to as a “Corporate Transaction”), the Corporation shall
mail by first class mail, postage prepaid, to each holder of this Warrant, notice of the execution of such agreement. The holders
of this Warrant shall then have ten (10) days to exercise this Warrant and participate as a stockholder of the Corporation in any
such Corporate Transaction. Any purported exercise of this Warrant under this Section 8 shall be conditioned on the consummation
of such Corporate Transaction.

 

(a)If such Corporate
Transaction is not consummated, the Warrant and the Exercise Price paid by the holders shall be returned to the holders.

 

(b)After the consummation
of any Corporate Transaction, this Warrant (or any portion thereof) that has not been exercised shall terminate and shall thereafter
be rendered null and void.

 

9.Taxes.
The Corporation shall pay all taxes that may be payable in respect of the issue or delivery of Common Stock on exercise of this
Warrant, but shall not pay any tax which may be payable in respect of any transfer involved in the issue and delivery of the Common
Stock in a name other than that in which this Warrant was registered, and no such issue or delivery shall be made unless and until
the person requesting such issue has paid to the Corporation the amount of any such tax, or has established, to the satisfaction
of the Corporation, that such tax has been paid.

 

10.Rule 144
Information. At any time and from time-to-time after the earlier of the close of business on such date as a registration statement
filed by the Corporation under the Securities Act of 1933 becomes effective, the Corporation registers a class of securities under
Section 12 of the Securities Exchange Act of 1934 or the Corporation issues an offering circular meeting the requirements of Regulation
A under the Securities Act of 1933, the Corporation shall undertake to make publicly available and available to holders of the
Warrants and the shares of Common Stock issued thereunder, such information as is necessary to enable the holders thereof to make
sales of Warrants or Common Stock issued or issuable upon exercise of the Warrants pursuant to Rule 144 promulgated under the Securities
Act of 1933.

 

    	 

    	 

    
 

11.Fractional
Shares. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. If
the exercise of this Warrant results in a fraction, an amount equal to such fraction multiplied by the Exercise Price of the Shares
on the day of exercise shall be paid to the Holder in cash by the Corporation.

 

12.Preservation
of Holder’s Rights.

 

(a)The Corporation
covenants and agrees that it shall at all times reserve and keep available, free from preemptive rights, out of its authorized
Common Stock, solely for the purpose of effecting the exercise of this Warrant, the full number of shares of Common Stock then
deliverable in the event and upon the exercise of this Warrant. All shares of Common Stock which may be issued upon exercise of
this Warrant shall be fully paid.

 

(b)Notwithstanding
anything to the contrary elsewhere in this Warrant, the Corporation shall not, by amendment of its Certificate of Incorporation
or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate
in order to protect the rights of the holder of this Warrant against dilution. Without limiting the generality of the foregoing,
the Corporation (i) will not increase the par value of any shares of stock receivable on the exercise of this Warrant above the
amount payable therefor on such exercise, (ii) will take all such action as may be necessary or appropriate in order that the Corporation
may validly and legally issue fully paid and non-assessable shares of stock on the exercise of this Warrant from time to time outstanding,
and (iii) will not issue any capital stock of any class which is preferred as to dividends or as to the distribution of assets
upon voluntary or involuntary dissolution, liquidation or winding up, unless the rights of the holders thereof shall be limited
to a fixed sum or percentage of par value in respect of participation in dividends and in any such distribution of assets.

 

13.Loss or Destruction.
Upon receipt of evidence satisfactory to the Corporation of the loss, theft, destruction or mutilation of this Warrant Certificate
and, in the case of any such loss, theft or destruction, upon delivery of an indemnity agreement or bond satisfactory in form,
substance and amount to the Corporation or, in the case of any such mutilation, upon surrender and cancellation of this Warrant
Certificate, the Corporation at its expense will execute and deliver, in lieu thereof, a new Warrant Certificate of like tenor.

 

14.Survival/Permitted
Assigns. The various rights and obligations of the Holder hereof as set forth herein shall survive the exercise of this Warrant
at any time or from time to time and the surrender of this Warrant Certificate. The permitted assigns of the Holder shall consist
of the equityholders from time to time of the Holder.

 

    	 

    	 

    
 

15.Notices.
Whenever any notice, payment of any purchase price or other communication is required to be given or delivered under the terms
of this Warrant, it shall be in writing and delivered by hand delivery or registered or certified United States mail, postage prepaid,
and will be deemed to have been given or delivered on the date such notice, purchase price or other communication is so delivered,
and, if to the Corporation, it will be addressed to the address specified in Section 2(a) hereof, and if to the Holder, it will
be addressed to the registered Holder at his address as it appears on the books of the Corporation.

 

16Governing
Law. This Warrant Certificate shall be governed by and construed in accordance with the laws of the State of Delaware.

 

Dated as of the 30
day of July, 2012.

 

	 	INDIEPUB ENTERTAINMENT, INC.
	 	 
	 	By:	 /s/ Mark Seremet
	 	 	 
	 	Title:	 CEO

  

    	 

    	 

    

 

EXHIBIT “A”

 

NOTICE OF EXERCISE

 

(To be Executed by the Registered Holder

in order to Exercise the Warrant)

 

The undersigned hereby irrevocably elects
to exercise the Warrant held by the undersigned to acquire shares of common stock (“Common Stock”) of indiePub Entertainment,
Inc. (the “Company”) according to the conditions of the Warrant, as of the date written below. If shares are to be
issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto.
No fee will be charged to the Holder for any exercise, except for transfer taxes, if any. A copy of the Warrant is attached hereto.*

 

The undersigned acknowledges that all offers
and sales by the undersigned of the shares of Common Stock issuable to the undersigned upon exercise of the Warrant must be made
pursuant to registration of the Common Stock under the Securities Act of 1933, as amended (the “Act”) or pursuant to
an exemption from registration under the Act.

 

	 	Expiration of Warrant:	 

 

	 	Date of Exercise: 	 

 

	 	Applicable Exercise Price: 	 

 

	 	Number of Shares of	 
	 	Common Stock to be Issued: 	 

 

	 	Signature: 	 

 

	 	Name: 	 

 

	 	Address: 	 

 

* No Shares of Common Stock will be issued
until the Warrant to be exercised and the Notice of Exercise are received by the Company or its Transfer Agent.Exhibit 10.1

 

MUNICIPAL MORTGAGE & EQUITY, LLC

 

Non-Qualified Stock Option Agreement

 

THIS OPTION AGREEMENT
(this “Agreement”), dated as of April 24th, 2012 (the “Grant Date”), is made by and between
MUNICIPAL MORTGAGE & EQUITY, LLC, a Delaware limited liability company (the “Company”), and MICHAEL L. FALCONE
(the “Optionee”).

 

WHEREAS, the
Optionee is currently employed by MMA Financial, Inc., a wholly-owned subsidiary of the Company (the “Employer”);

 

WHEREAS, in
consideration of the continued employment of the Optionee with the Employer, on March 26, 2012 the Compensation Committee (the
“Committee”) of the Company authorized the grant to the Optionee of the right to purchase the number of common
shares, no par value per share, of the Company (the “Common Shares”), specified below on the terms and conditions
set forth herein;

 

WHEREAS, the
Committee authorized the grant to Optionee of options to purchase 700,000 of the Company’s Common Shares based on the closing
price on the date of the Committee’s approval (the “Authorization Date”), such award to be deemed granted
and effective only upon the execution by Employee and the Company of a grant agreement approved by the Committee, such shares to
be issued from and subject to the terms of the Company’s 2004 and 2010 Share Incentive Plans (collectively, the “Plan”);

 

WHEREAS, this
Agreement constitutes the grant agreement required by the Committee;

 

WHEREAS, the
Company has reserved Common Shares for such issuance pursuant to the Plan; and

 

WHEREAS, the
Committee has also approved the grant to Optionee of a cash bonus to be used to purchase Common Shares.

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged:

 

1.           Grant.

 

(a)          Option.
Effective as of the Grant Date, the Company hereby grants to the Optionee an option (the “Option”) to purchase
700,000 Common Shares (the “Option Shares”) under and pursuant to the Plan at an exercise price of $.36 per
Common Share (the closing price for the Common Shares on the Authorization Date). The source of 270,703 of the option shares shall
be the 2004 Share Incentive Plan and the remainder shall be sourced from the 2010 Share Incentive Plan. The Option is not intended
to constitute an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”).

 

(b)          Cash.
The Company hereby grants to Optionee a cash bonus in the amount of $45,000, payable at the end of the first complete pay period
following the date of this Agreement. Optionee agrees to use the entire cash bonus to purchase Common Shares within six (6) months
of the date hereof, subject, however, to extension by the Committee in the event Optionee shall be unable to make such purchases
due to the imposition of a “blackout” period under applicable securities laws or as otherwise reasonably determined
by the Company’s counsel.

 

    	 

    	 

    

 

2.           Conformity
with the Plan. The Option is being granted to the Optionee under and is intended to conform in all respects with the Plan,
a copy of which has been furnished to Employee and all of the terms, conditions, and other provisions of which are hereby incorporated
by reference herein. The Optionee hereby acknowledges receipt of the Plan and agrees to be bound by all the terms and provisions
thereof (as presently in effect or hereafter amended). Capitalized terms used in this Agreement but not defined herein shall have
the meaning ascribed to such terms in the Plan. In the event of any ambiguity in this Agreement or any matters as to which the
Agreement is silent, the Plan shall govern including, without limitation, the provisions thereof pursuant to which the Company’s
Board of Directors has the power, among others, to (i) interpret the Plan and option agreements related thereto, (ii) prescribe,
amend and rescind rules and regulations relating to the Plan and (iii) make all other determinations deemed necessary or advisable
for the administration of the Plan.

 

3.           Exercisability
of the Option.

 

(a)          Exercisability
of the Option Generally. The Option may be exercised only after it has become exercisable, to the extent that it has become
and remains exercisable, as specified in this Agreement. The Option Shares shall be divided into two groups, 400,000 of which shall
become vested and exercisable as set forth in paragraph 3(a)(i) and 300,000 of which shall become vested and exercisable as set
forth in Section 3(a)(ii); provided, however, that no Option Shares shall vest on any given vesting date if Optionee
shall not have been in the continuous employ of the Employer or a subsidiary of the Employer from the date hereof to the applicable
vesting date (the “Vesting Condition”); provided, further, however, that the Option shall
become fully exercisable upon the death or Disability (defined below) of the Optionee; and provided further, that
the Option shall be exercisable after the Optionee ceases to be employed by the Employer for any reason other than the Optionee’s
death or disability only to the extent that the Option was exercisable at the date of, or as a result of, such cessation of service.
The Optionee shall be considered to have a “Disability” if the Optionee is unable to perform the duties assigned
to the Optionee by the Employer due to illness, physical or mental disability or other incapacity for a total of 120 or more business
days during any twelve month period.

 

(i)          Subject
to forfeiture as provided herein or in the Plan, 400,000 of the Option Shares shall vest in four equal increments of 100,000 shares
on the Grant Date and on each of the first, second and third anniversaries of the Grant Date provided that Optionee meets the Vesting
Condition on each such date.

 

(ii)         Subject
to forfeiture as provided herein or in the Plan, 300,000 of the Option Shares shall vest in 60,000 share increments upon the attainment
of increases in the price of the Company’s Common Shares, as follows:

 

	Target Price	 	 	Vesting	 
	 	 	 	 	 
	$	1.00	 	 	 	60,000 Option Shares	 
	 	 	 	 	 	 	 
	$	1.50	 	 	 	60,000 Option Shares	 
	 	 	 	 	 	 	 
	$	2.00	 	 	 	60,000 Option Shares	 
	 	 	 	 	 	 	 
	$	2.50	 	 	 	60,000 Option Shares	 
	 	 	 	 	 	 	 
	$	3.00	 	 	 	60,000 Option Shares	 

 

Achievement of the target price shall be
based on the average closing price of the Company’s Common Shares for thirty consecutive trading days. If the target price
is achieved for such thirty day period, the designated shares shall vest on the thirtieth trading day. The Option Shares so vested
shall not be forfeited if the stock price thereafter drops below the target price at which they vested.

 

(b)          Acceleration
of Exercisability on a Discretionary Basis and Upon Change in Control. The provisions of Section 3(a) hereof notwithstanding,
the Committee may, in its sole discretion, at any time, upon written notice to the Optionee, accelerate the exercisability of all
or a specified portion of the Option. In addition, in the event of a Change in Control of the Company at a time that the Optionee
is employed by the Employer or any of its affiliates, the Option shall become immediately and fully exercisable upon the occurrence
of such Change in Control.

 

    	 

    	 

    

 

(c)          Option
Cumulatively Exercisable; Fractional Shares. The number of Option Shares with respect to which the Option may be exercised
shall be cumulative so that if, in any of the aforementioned periods, the full number of vested Option Shares shall not have been
purchased, any such unpurchased Shares shall continue to be included in the number of Option Shares with respect to which the Option
shall then be exercisable along with any other Option Shares as to which the Option may become exercisable in accordance with the
terms hereof. The Option may be exercised only to purchase whole shares, and no fractional shares will be issued upon exercise
of the Option.

 

4.           Exercise
and Payment of Exercise of Price.

 

(a)          Notice
of Exercisability; Method of Payment of Exercise Price. The Option shall be exercised by the delivery of written notice of
exercise, in the form attached hereto as Exhibit A (the “Exercise Notice”) or as otherwise specified
by the Company (with appropriate changes if notice is given by a person other than the Optionee), to the Secretary of the Company,
signed by the Optionee or other person entitled to exercise the Option, specifying the number of Option Shares to be purchased,
the date of grant of the Option, the method of payment, and other information required by such notice. The Exercise Notice shall
be accompanied by payment in full of the aggregate exercise price for all such Option Shares being purchased. Such exercise price
shall be payable to the Company either (i) in cash (including by check), (ii) by the tendering of previously acquired Common Shares
owned by the Optionee for more than six months and having an aggregate Fair Market Value (as defined in the Plan) at the date of
exercise equal to the exercise price being paid thereby, or (iii) by a combination of (i) and (ii).

 

(b)          Delivery
of Option Shares. An exercise of the Option shall be effective upon receipt by the Secretary of the Company of both the written
notice and payment of the exercise price (each, an “Exercise Date”). Within an administratively reasonable amount
of time after the Exercise Date, the Company shall either (i) deliver a certificate or certificates representing the purchased
Option Shares, with any appropriate legend(s) affixed thereto, to the Optionee or such other person as may be entitled thereto
at the principal office of the Company or such other place as may be mutually agreed upon by the Company and the Optionee or such
other person or deposit or (ii) deliver or cause to be delivered to the Optionee or Optionee's designated
broker a certificate or letter of electronic transfer instructions (“DWAC”) for the purchased Option Shares.
The Company agrees to pay all original issue or stock transfer taxes, if any, on the exercise of the Option and all other fees
and expenses necessarily incurred by the Company in connection therewith; provided, however, that expenses of the
Optionee, including withholding and other tax obligations, shall not be deemed Company expenses.

 

5.           Expiration
of the Option. The Option will expire at the earlier of (i) 11:59 p.m. Eastern Standard Time on the tenth anniversary of the
Grant Date or (ii) 12 months after the date on which the Optionee ceases to be employed by the Employer for any reason.

 

6.           Nontransferability;
Beneficiaries. No right or interest of the Optionee in the Option shall be pledged, encumbered, or hypothecated to or in favor
of any third party or shall be subject to any lien, obligation, or liability of the Optionee to any third party. The Option shall
not be transferable to any third party by the Optionee except by will or the laws of descent and distribution, and the Option shall
be exercisable, during the lifetime of the Optionee, only by the Optionee or his or her guardian or legal representative; provided,
however, that, subject to Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended, and consistent with
the registration of the offer and sale of the Common Shares related thereto on a then-effective registration statement on Form
S-8 covering the offer and sale of Common Shares issued under the Plan filed with the Securities and Exchange Commission (the “SEC”),
the Optionee will be entitled to transfer the Option (and rights relating thereto) to one or more trusts or other beneficiaries,
designated by the Optionee by filing the form attached hereto as Exhibit B or such other form as may be specified by
the Company, during the Optionee’s lifetime for estate planning purposes or upon the Optionee’s death.

 

    	 

    	 

    

 

7.           Investment
Representation; Legends. Unless, at the time of any exercise of the Option, the offer and sale of Option Shares hereunder to
the Optionee is registered under a then-effective registration statement under the Securities Act of 1933, as amended (the “Securities
Act”), and the offer and sale complies with all applicable registration requirements under state securities laws, the
Optionee shall provide to the Company, as a condition to the valid exercise of the Option and the delivery of any certificates
representing Shares, appropriate evidence, satisfactory in form and substance to the Company, that the Grantee is acquiring the
Option Shares for investment and not with a view to the distribution of the Option Shares or any interest in the Option Shares,
and a representation to the effect that the Optionee shall make no sale or other disposition of the Option Shares unless (i) the
Company shall have received an opinion of counsel satisfactory to it in form and substance that such sale or other disposition
may be made without registration under the then-applicable provisions of the Securities Act, the related rules and regulations
of the SEC, and applicable state securities laws and regulations, or (ii) the sale or other disposition of the Option Shares shall
be registered under a then-effective registration statement under the Securities Act and complies with all applicable registration
requirements under state securities laws. The certificates representing the Option Shares may bear an appropriate legend giving
notice of the foregoing restriction on transfer of the Option Shares and any other restrictive legend deemed necessary or appropriate
by the Company.

 

8.           Compliance
with Section 409A. The Option is not intended to provide deferred compensation subject to Section 409A of the
Code; provided, however, that the Company makes no representations as to the tax consequences of the Option to the
Optionee (including, without limitation, under Section 409A of the Code, if applicable). The Optionee understands and agrees that
the Optionee is solely responsible for any and all income, excise or other taxes imposed on the Optionee with respect to the Option.

 

9.           No
Rights of Holder of Common Shares. The Optionee shall not have any of the rights of a holder of Common Shares with respect
to the Option Shares that may be issued upon the exercise of the Option until such Option Shares have been issued upon the due
exercise of the Option.

 

10.          Miscellaneous.
This Agreement shall be binding upon the heirs, executors, administrators, and successors of the parties. In particular, the Optionee’s
heirs, executors, administrators, and successors shall be subject to the terms and conditions of the Plan and this Agreement, and
the Company may require any such person to execute an agreement or other documents acknowledging and agreeing to such terms and
conditions as a condition precedent to any transfer of the Option or any Common Shares purchased upon exercise of the Option into
the name of any such person. This Agreement constitutes the entire agreement between the parties with respect to the Option and
the Option Shares, and supersedes any prior agreements or documents with respect thereto, and in the event of a conflict between
the provisions of this Agreement and the provisions of the Plan or any other agreement between the Company and any of its affiliates,
on the one hand, and the Optionee, on the other hand, the provisions of the Plan shall govern. This Agreement may be amended, but
no amendment, alteration, suspension, discontinuation, or termination of this Agreement which may impose any additional obligation
upon the Company or impair the rights of the Optionee with respect to the Option shall be valid unless in each instance such amendment,
alteration, suspension, discontinuation, or termination is expressed in a written instrument duly executed in the name and on behalf
of the Company and by the Optionee.

 

11.          No
Other Awards. The Company and Optionee agree that this award replaces and supersedes any awards previously approved by the
Compensation Committee that have not heretofore been set forth in a fully-executed grant, share award, or similar agreement.

 

(Signatures appear on following page)

 

    	 

    	 

    

 

MUNICIPAL MORTGAGE & EQUITY, LLC

 

	 	By:	/s/Lisa Roberts
	 	 	Lisa Roberts
	 	 	Chief Financial Officer
	 	 	 
	 	Date:	April 24, 2012
	 	 	 
	 	EMPLOYEE/OPTIONEE:
	 	 	 
	 	/s/Michael L. Falcone
	 	Michael L. Falcone
	 	 	 
	 	Date:	April 24, 2012

 

	APPROVED:	 
	 	 
	COMPENSATION COMMITTEE	 
	 	 	 
	By:	/s/Douglas McGregor	 
	 	Douglas McGregor	 
	 	Chairman

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