Document:

CONSULTING
AGREEMENT

 

By
and between

 

Exhibit
10.14

 

Trademasterspro.com
Inc., “Consultant”

 

and

 

Algae
Dynamics Corp., “Client”

 

RECITALS:

 

This
Consulting Agreement (this “Agreement”) is made as of June 24, 2016, by and between Algae Dynamics Corp. (the “Client”)
with a notice address of 37 – 4120 Ridgeway Drive, Mississauga, Ontario, Canada L5L 5S9, and Trademasterspro.com Inc. having
its principal place of business at 535 Broad Hollow Rd, Suite B-10, Melville NY 11747 (Consultant”) and is made in light
of the following recitals which are a material part hereof:

 

WHEREAS,
the Client is a publicly-traded corporation listed on the OTCQB (symbol ADYNF);

 

WHEREAS,
Consultant is an independent consultant and has knowledge and experience to provide marketing as the Clients believe can assist
it in furthering execution of Client’s public awareness;

 

WHEREAS,
Client is retaining Consultant to create marketing awareness, which is the overriding objective and material inducement to this
Agreement, and the duties to be performed as a means to those ends;

 

NOW
THEREFORE, for and in consideration of good and valuable consideration, including, but not limited to the mutual promises
set forth herein, the receipt and sufficiency of which is acknowledged by each party hereto, the parties hereby agree as follows:

 

 

	Client’s
    Initials: ____________	 	Consultant’s
    Initials: ____________

 

    	 	 	 

    	 	 	 

    

 

WITNESSETH:

 

	1.	Recitals
    Govern. The parties desire to enter into this Agreement for purposes of carrying out the above recitals and intentions
    set forth above and this Agreement shall be construed in light thereof.
	 	 
	2.	Consulting
    Services. The Consultant agrees to provide the Consulting Services to the Client during the “Term” (as hereinafter
    defined). Consultant agrees to provide such information, evaluation and analysis, in accordance with the Consultant Services
    as will assist in maximizing the effectiveness of Client’s business model both relative to its business model and to
    its present and contemplated capital structure. The Consultant shall personally provide the Consultant Services and the Client
    understands that the nature of the services to be provided are part time and that the Consultant will be engaged in other
    business and consulting activities during the term of this Agreement.
	 	 
	3.	Conflicts.
    The Client waives any claim of conflict and acknowledges that Consultant has owned and continues to own and has consulted
    with and continues to consult with interests in competitive businesses which might compete but for location.
	 	 
	4.	Confidential
    Information. The Consultant agrees that any information received by the Consultant during any furtherance of the Consultant’s
    obligations in accordance with this Agreement, which concerns the personal, financial or other affairs of the Client will
    be treated by the Consultant in full confidence and will not be revealed to any other persons, firms or organizations. 
	 	 
	5.	Role
    of Consultant. Consultant shall provide outbound telemarketing services providing informational awareness for the Client.
    Consultant shall also provide full disclosure of its role and compensation to any party contacted as contemplated herein.
	 	 
	6.	Liability.
    With regard to the services to be performed by the Consultant pursuant to this Agreement, the Consultant shall not be liable
    to the Client, or to anyone who may claim any right due to any relationship with the Client, for any acts or omissions in
    the performance of services on the part of the Consultant or on the part of the agents or employees of the Consultant, except
    when said acts or omissions of the Consultant are due to willful misconduct or gross negligence. The Client shall hold the
    Consultant free and harmless from any obligations, costs, claims, judgments, attorneys’ fees, and attachments arising
    directly out of the services rendered to the Client pursuant to the terms of this Agreement or in any way connected with the
    rendering of services, except when the same shall arise due to the willful misconduct or gross negligence of the Consultant
    and the Consultant is adjudged to be guilty of willful misconduct or gross negligence by a court of competent jurisdiction.

 

 

	Client’s
    Initials: ____________	 	Consultant’s
    Initials: ____________

 

    	 	 	 

    	 	 	 

    

 

	7.	Compensation.
    In consideration of the execution of the Agreement, and the performance of his obligations hereunder, and in lieu of cash
    compensation on an hourly basis, the Consultant shall receive from Client 750,000 restricted common shares of Client (the
    “Shares”), to be issued as follows: (a) 250,000 Shares on the date hereof; (b) 250,000 Shares on August 24, 2016;
    and (c) 250,000 Shares on October 24, 2016. Provided that Rule 144 under the United States Securities Act of 1933, as amended
    (the “Securities Act”) is not available for the resale of the Shares, the Client shall include the Shares in any
    registration statement under the Securities Act filed by the Client which registers the resale of its common shares by selling
    securityholders. Once the resale of the Shares has been registered under the Securities Act, the Client shall use best reasonable
    commercial efforts to remove any restrictive legend to permit the deposit of the Shares with Consultant’s broker.
	 	 
	8.	 Term.
    The Term of this Agreement shall commence as of the date hereof. Term shall continue for a period of six months from that
    date; provided, however, that the Term shall be modified by mutual agreement of the parties based upon the level of Consultant’s
    activity. It is understood that this Agreement shall not automatically renew and no obligations to renew are implied notwithstanding
    continued efforts to fulfill terms and conditions incomplete as of the termination of this Agreement.
	 	 
	9.	Control
    as to Time and Place and Manner where Services Will Be Rendered.
	 	 
	9.1.	Consultant
    is an Independent Contractor. Both the Client and the Consultant agree that the Consultant will act as an independent
    contractor in the performance of its duties under this Agreement. Accordingly, the Consultant shall be responsible for payment
    of all taxes including Federal, State and local taxes arising out of the Consultant’s activities in accordance with
    this Agreement, including by way of illustration but not limitation, Federal and state income tax, Social Security tax, unemployment
    insurance taxes, and any other taxes or business license fee as required. Except as otherwise may be agreed, the Consultant
    shall at all times be in an independent contractor, rather than a co-venture, agent, employee or representative of the Client.
	 	 
	9.2.	Performance
    of Services. The Consultant will perform most services in accordance with this Agreement at a location and at times
    chosen in Consultant’s discretion. The Client may from time to time request that the Consultant arrange for the services
    of others, but Consultant shall choose and contract with same. All costs to the Consultant for those services will be paid
    by the Client but in no event shall the Consultant employ others without the prior authorization of the Client, nor shall
    the Client pay for any services due by the Consultant under this Agreement.
	 	 
	10.	Representations
    and Warranties.

 

	10.1.	Client
    Representations & Warranties: The Client represents and warrants that:
	 	 
	10.1.1.	The
    Shares are validly issued by Client;

 

 

	Client’s
    Initials: ____________	 	Consultant’s
    Initials: ____________

 

    	 	 	 

    	 	 	 

    

 

	10.1.2.	The
    Client has full right, power, and authority to execute and enter into this Agreement, and to execute all underlying documents
    and to bind it to the terms and obligations hereto and to the underlying documents and to deliver the interests and consideration
    conveyed thereby
	 	 
	10.1.3.	The
    Client has full right, power, and authority to sell, transfer, and deliver the Shares.
	 	 
	10.1.4.	The
    Client has no knowledge of any adverse claims affecting the subject Shares and there are no notations of any adverse claims
    marked on the certificates for same.
	 	 
	10.2.	Representations
    by Consultant:
	 	 
	10.2.1.	The
    Consultant is an independent contractor and will not and cannot make any binding obligations on behalf of the Client, and
    the Consultant will represent itself accordingly.
	 	 
	10.2.2.	Furthermore,
    the Consultant may be in possession of non-public information and if Consultant comes into possession of such non-public information,
    the Consultant will cease ALL trading activity until such information becomes public or stale.
	 	 
	10.2.3.	Notwithstanding
    the aforementioned, it is neither the Client’s nor Consultant’s intention for the Consultant to hold onto the
    Shares indefinitely. The Consultant agrees not to have a material adverse effect on the market during sell-in of the Shares.
	 	 
	10.2.4.	It
    has the requisite power and authority to provide the representations in this Agreement.
	 	 
	10.2.5.	It
    recognizes that acquiring the Shares involves a high degree of risk and is suitable only for persons of adequate financial
    means who have no need for liquidity in its investment, in that (a) it may not be possible to liquidate the investment in
    the event of emergency; (b) transferability is extremely limited; and (c) in the event of a disposition, a complete loss of
    investment could occur.
	 	 
	10.2.6.	It
    (a) is competent to understand and does understand the nature of the investment, and (b) is able to bear the economic risk
    of the investment.
	 	 
	10.2.7.	It
    is an accredited investor as defined in Rule 501 of Regulation D promulgated by the Securities and Exchange Commission under
    the Securities Act.
	 	 
	10.2.8.	It
    has significant prior investment experience, and that It has read all of the documents furnished or made available by the
    Client to evaluate the merits and risks of the investment, recognizes the highly speculative nature of this investment, and
    is able to bear the economic risk hereby assumed.
	 	 
	10.2.9.	All
    information regarding the Client which was requested or desired by it has been furnished, all other documents which could
    be reasonably provided have been made available for inspection and review, and it believes that such information is sufficient
    to make an informed decision with respect to it acquiring the Securities herein.

 

 

	Client’s
    Initials: ____________	 	Consultant’s
    Initials: ____________

 

    	 	 	 

    	 	 	 

    

 

	10.2.10.	It
    is acquiring the Shares for its own account, for investment, and not for distribution or resale to others, and that it will
    not sell, transfer, or otherwise dispose of the Shares or any portion thereof unless they are registered under the Securities
    Act or unless an exemption from such registration is available.
	 	 
	10.2.11.	It
    may, with the Client’s written consent, transfer the Shares if such request for transfer is accompanied by an opinion
    of counsel satisfactory to the Client that neither the sale nor the proposed transfer of the Shares results in a violation
    of the Securities Act or any applicable state “blue sky” laws.
	 	 
	10.2.12.	It
    consents to the placement of a legend on the certificates evidencing the Shares stating that they have not been registered
    under the Securities Act and setting forth or referring to the restrictions on transferability and sale thereof.

 

	11.	Arbitration.
    Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration
    in accordance of the rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrator(s)
    shall be entered in any Court having jurisdiction thereof. For that purpose and the resolution of any other claim hereunder,
    the parties hereto consent to the jurisdiction and venue of an appropriate Court located in New York. In the event that litigation
    results from or arises out of this Agreement or the performance thereof, the parties agree to reimburse the prevailing party’s
    reasonable attorney’s fees, court costs, and all other expenses, whether or not taxable by the court as costs, in addition
    to any other relief to which the prevailing party may be entitled. In such event, no action shall be entertained by said Court
    or any Court of competent jurisdiction if filed more than one year subsequent to the date the cause(s) of action actually
    accrued regardless of whether damages were otherwise as of said time calculable.
	 	 
	12.	Notices.
    All notices, requests, consents, and other communications under this Agreement shall be in writing and shall be mailed by
    registered or certified mail, postage prepaid, or delivered by email or delivered personally to the address written above
    or to such other address of which the addressee shall have notified the sender in writing. Notices mailed in accordance with
    this section shall be deemed given when sent.
	 	 
	13.	Binding
    Effect, Assignment and Succession. All covenants and agreements contained in this Agreement by or on behalf of any of
    the parties hereto shall bind and inure to the benefit of its respective heirs, personal representatives, successors, and
    assigns, whether so expressed or not. No party to this Agreement may assign his rights hereunder or delegate his obligations
    hereunder to any other person or entity without the express prior written consent of the other parties hereto.

 

 

	Client’s
    Initials: ____________	 	Consultant’s
    Initials: ____________

 

    	 	 	 

    	 	 	 

    

 

	14.	Entire
    Agreement and Interpretation. This Agreement, including any exhibits and schedules hereto, constitutes and contains the
    entire agreement of the Client and the Consultant with respect to the provision of Consultant Services and Compensation and
    supersedes any prior agreement by the parties, whether written or oral. It may not be changed orally but only by an agreement
    in writing signed by the party against whom enforcement of any waiver, change, modification, extension, or discharge is sought.
    The waiver of a breach of any term or condition of this Agreement must be in writing and signed by the party sought to be
    charged with such waiver, and such waiver shall not be deemed to constitute the waiver of any other breach of the same or
    of any other term or condition of this agreement.
	 	 
	15.	Miscellaneous.
    The section headings contained in this Agreement are inserted as a matter of convenience and shall not be considered in interpreting
    or construing this Agreement. This Agreement may be executed concurrently in two or more counterparts, each of which shall
    be deemed an original but all of which together shall constitute one and the same instrument. The invalidity or unenforceability
    of any provision of this Agreement shall not affect the validity or enforceability of the remaining provisions. Time is of
    the essence of this Agreement and the obligations of the parties hereto.

 

IN
WITNESS WHEREOF, the Client and the Consultant have executed this Agreement as of the day and year first written above.

 

	For
    Client:	 	For
    Consultant:
	 	 	 
	/s/
    Richard Rusiniak	 	/s/
    Janine Acosta
	Richard
    Rusiniak	 	Janine
    Acosta

 

 

	Client’s
    Initials: ____________	 	Consultant’s
    Initials: ____________Exhibit

NOTE EXCHANGE AGREEMENT

THIS NOTE EXCHANGE AGREEMENT (this “Agreement”) is dated August [__], 2016, by and between FUNCTION(X) INC., a Delaware corporation, (the “Company”), Sillerman Investment Company III, LLC, a Delaware limited liability company (“SIC III”) , Sillerman Investment Company IV, LLC, a Delaware limited liability company (“SIC IV”) and Sillerman Investment Company VI, LLC, a Delaware limited liability company (“SIC VI,” and collectively with the Company, SIC III and SIC IV, the “Parties”).
    
WHEREAS:
WHEREAS, on October 24, 2014, the Company filed a Certificate of Designations of its Series C Preferred Stock; and
WHEREAS, on August [__], 2016, the Company amended such Certificate of Designations; and
WHEREAS, the Company has approved (through unanimous consent of the independent members of its Board of Directors as a result of the transactions contemplated herein being a transaction with affiliates of the Chairman and Chief Executive Officer of the Company, Robert F.X. Sillerman, who is a principal of SIC III, SIC IV, and SIC VI) this Agreement in furtherance of the Company’s plan to (a) remain listed on the Nasdaq Global Market, and (b) upon consummation, improve its balance sheet and capital structure; and
WHEREAS, the Parties executed an exchange agreement dated as of July 8, 2016, as amended by that certain First Amendment to Exchange Agreement (collectively, the “Exchange Agreement”) obligating the Parties to, among other things, convert in an exchange transaction the Notes (as defined in the Exchange Agreement) and Series C Preferred Stock into shares of the Company’s common stock in accordance with the terms thereof; and
WHEREAS, the Parties desire to exchange the Notes, to the extent of outstanding indebtedness as of the date hereof, for Series C Preferred Stock, subject to the obligations and provisions of the Exchange Agreement, the Subordination Agreement (the “Subordination Agreement”) dated July 8, 2016 between SIC III, SIC VI, SIC IV, Rant, Inc., Dominion Capital, LLC, L1 Capital Global Opportunities Master Fund, Puritan Partners, LLC, Pinz Capital International, Union Capital, LLC, and Adar Bays LLC, which is hereby reaffirmed, and the Lock-Up Agreement (the “Lock-Up Agreement”) dated July 12, 2016 between Mitchell J. Nelson, Robert F.X. Sillerman, , Dominion Capital, LLC, L1 Capital Global Opportunities Master Fund, Puritan Partners, LLC, Pinz Capital International, Union Capital, LLC, and Adar Bays LLC, which is hereby reaffirmed.
NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained, the Parties agree as follows:
ARTICLE I
THE EXCHANGE
AND ISSUANCE OF EQUITY SECURITIES

1.1     Exchange.  The following shall occur at the Closing:
a)All of the outstanding principal and interest of the Notes (except for the Remaining Amount (as defined below) shall be exchanged for shares of the Company’s Series C Preferred Stock at a rate of $1,000 per share, which, based on the outstanding principal balance and accrued interest as of August [__], 2016, will result in the issuance of [___________] shares of Series C Preferred Stock.  For purposes hereof, the “Remaining Amount”) shall mean $900,000 in principal amount held by SIV IV pursuant to that Line of Credit Grid Promissory Note dated as of June 11, 2015.   
b)The Company shall issue the applicable number of shares of Series C Preferred Stock to each of SIC III, SIC IV, and SIC VI in proportion to the amounts that each is exchanging.

c)Each of SIC III, SIC IV, and SIC VI shall issue a letter to the Company confirming there is no remaining outstanding principal amount due to it under the Note(s), except that the letter issued by SIC IV will reflect that the Remaining Amount shall remain outstanding. 
1.2    Closing. The closing (the “Closing”) of the transactions contemplated by this Agreement shall take place simultaneously with the signing of this Agreement. 
1.3    Delivery. The transactions contemplated by this Agreement shall be completed at the Closing.
a)Each of SIC III, SIC IV, and SIC VI shall deliver original Notes to the Company, with appropriate transfer documentation as may be reasonably required by the Company; and

b)The Company shall issue the shares of Series C Preferred Stock to the applicable Party.
1.4    The indebtedness ($__________________) evidenced by the Notes is hereby exchanged for [______] shares of the Series C Preferred Stock.  The Parties hereto agree to perform the obligations under the Exchange Agreement as if the Series C Preferred Stock issued pursuant to this Agreement has been substituted in lieu of the Notes for which it was issued.
1.5    Subordination/Lock-Up Agreements.  Each Party acknowledges and agrees that the Series C Preferred Stock issued by the Company pursuant to this Note Exchange Agreement is expressly held subject to and in accordance with the provisions of the Subordination Agreement and the Lock-Up Agreement.  SIC IV also acknowledges that the Remaining Amount remains subject to the provisions of the Subordination Agreement as well.
ARTICLE II
REPRESENTATIONS AND WARRANTIES 
OF THE COMPANY

2.1     Authorization and Binding Obligation. The Company has the requisite power and authority to enter into and perform its obligations under this Agreement and to complete the transactions described herein, including the issuance of the shares of Series C Preferred Stock, in accordance with the terms hereof. The execution and delivery of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the shares of Series C Preferred Stock, have been duly authorized by the Company's Board of Directors and upon satisfaction of the closing conditions, no further filing, consent, or authorization is required by the Company, its Board of Directors or its stockholders. This Agreement has been duly executed and delivered by the Company, and constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights and remedies and except as rights to indemnification and to contribution may be limited by federal or state securities laws.
2.2     No Conflict. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated herein will not (a) result in a violation of the Certificate of Incorporation, as amended, or other organizational document of the Company or any of its subsidiaries, any capital stock of the Company or any of its subsidiaries or bylaws of the Company or any of its subsidiaries, (b) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its subsidiaries is a party, or (c) result in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and state securities laws and applicable to the Company or any of its subsidiaries or by which any property or asset of the Company or any of its subsidiaries is bound or affected except, in the case of clause (ii) or (iii) above, to the extent such violations that could not reasonably be expected to have a material adviser effect on the Company or its subsidiaries.
2.3     Securities Law Exemptions. Assuming the accuracy of the representations and warranties of each of SIC III, SIC IV, and SIC VI contained herein, the offer and issuance by the Company of the shares of Series C Preferred Stock is exempt from registration pursuant to the exemption provided by Section 3(a)(9) of the Securities Act.
2.4     Issuance of Securities. The issuance of the shares of Series C Preferred Stock is duly authorized and upon issuance in accordance with the terms of this Agreement, the shares of Series C Preferred Stock shall be validly issued, fully paid and non-assessable and free from all taxes, liens, charges and other encumbrances with respect to the issuance thereof and shall not be subject to any preemptive, participation, rights of first refusal and other similar rights, and each of SIC III, SIC IV, and SIC VI shall be entitled to all rights accorded to a holder of such shares of Series C Preferred Stock.
2.5     Transfer Taxes. On the Closing Date, all share transfer or other taxes (other than income or similar taxes) which are required to be paid in connection with the issuance of the shares of Series C Preferred Stock will be, or will have been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with.
2.6    Lock-Up.  In the event that the underwriters of an underwritten public offering of Company stock undertaken within ninety (90) days of the closing of the transactions contemplated herein require each or any of SIC III, SIC IV, and/or SIC VI to enter into a lock-up agreement in connection with such offering, then such party or parties shall execute such lock-up agreement as the underwriters may reasonably require.  The shares issued to SIC III, SIC IV, and SIC VI shall be subject to the lock-up agreements entered into in connection with the convertible debenture financing to be provided by Dominion Capital LLC.
ARTICLE III
REPRESENTATIONS AND WARRANTIES 
OF SIC III, SIC IV, AND SIC VI

As a material inducement to the Company to enter into this Agreement and consummate the exchange, each of SIC III, SIC IV, and SIC VI represents, warrants and covenants with and to the Company as follows:
3.1    Authorization and Binding Obligation. Each of SIC III, SIC IV, and SIC VI has the requisite legal capacity, power and authority to enter into, and perform under, this Agreement. Each of SIC III, SIC IV, and SIC VI has the requisite legal capacity, power and authority to purchase the shares of Series C Preferred Stock. The execution, delivery and performance of this Agreement by each of SIC III, SIC IV, and SIC VI, and the consummation by each of SIC III, SIC IV, and SIC VI of the transactions contemplated herein, have been duly authorized by all requisite corporate action on the part of each of SIC III, SIC IV, and SIC VI, as applicable, and no further consent or authorization is required. This Agreement has been duly authorized, executed and delivered by each of SIC III, SIC IV, and SIC VI, and constitutes the legal, valid and binding obligations of each of SIC III, SIC IV, and SIC VI, enforceable against each of SIC III, SIC IV, and SIC VI in accordance with its terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights and remedies and except as rights to indemnification and to contribution may be limited by federal or state securities laws.
3.2     Beneficial Owner. With respect to each of the Notes owned by it, (a) each of SIC III, SIC IV, and SIC VI owns, beneficially and of record, good and marketable title to the Note(s) owned by it, free and clear of any taxes or encumbrances; (b) none of the Notes are registered under the Securities Act and, therefore, cannot be resold unless registered under the Securities Act or in a transaction exempt from or not subject to the registration requirements of the Securities Act; (c) none of SIC III, SIC IV, and SIC VI has entered into any agreement or understanding with any person or entity to dispose of the any portion of any of the Notes; and (d) at the Closing, each of SIC III, SIC IV, and SIC VI will convey to the Company good and marketable title to the Note(s) owned by it in its entirety, free and clear of any security interests, liens, adverse claims, taxes or encumbrances.
3.3    Accredited Investor.  Each of SIC III, SIC IV, and SIC VI is an accredited investor as defined in Rule 501(a) of Regulation D, as amended, under the Securities Act, and none of SIC III, SIC IV, and SIC VI was organized for the specific purpose of acquiring the shares of Series C Preferred Stock.
3.4    Experience of Investor.  Each of SIC III, SIC IV, and SIC VI, together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the shares of Series C Preferred Stock, and has evaluated the merits and risks of such investment. Each of SIC III, SIC IV, and SIC VI is able to bear the economic risk of an investment in such securities and, at the present time, is able to afford a complete loss of such investment.
3.5    Purchase Entirely for Own Account.  The shares of Series C Preferred Stock will be acquired for the account of each of SIC III, SIC IV, and SIC VI, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the Securities Act, and neither SIC III, SIC IV, and SIC VI has any present intention of selling, granting any participation in, or otherwise distributing the same in violation of the Securities Act without prejudice, however, to the right of each of SIC III, SIC IV, and SIC VI at all times to sell or otherwise dispose of all or any part of such securities in compliance with applicable federal and state securities laws and in accordance with the Exchange Agreement.  Nothing contained herein shall be deemed a representation or warranty by any of SIC III, SIC IV, and SIC VI to hold the shares of Series C Preferred Stock for any period of time. None of SIC III, SIC IV, and SIC VI is a broker-dealer or agent of a broker-dealer required to be registered with the Securities and Exchange Commission under Section 15 of the Securities Exchange Act of 1934 (the “Exchange Act”), nor an entity or individual engaged in a business that would require it to be so registered.
3.5    Disclosure of Information.  Each of SIC III, SIC IV, and SIC VI has access to and has reviewed the Company’s filings with the Securities and Exchange Commission, at WWW.SEC.GOV, including the “Risk Factors” contained therein. Each of SIC III, SIC IV, and SIC VI has had the opportunity to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of the offering of the shares of Series C Preferred Stock.  Neither such inquiries nor any other due diligence investigation conducted by each of SIC III, SIC IV, and SIC VI shall modify, amend or affect the right of each of SIC III, SIC IV, and SIC VI to rely on the Company’s representations and warranties contained in this Agreement.
3.8    Proceedings.  No proceedings relating to any of the Notes are pending or, to the knowledge of any of SIC III, SIC IV, and SIC VI, threatened before any court, arbitrator or administrative or governmental body that would adversely affect the right and ability of SIC III, SIC IV, and/or SIC VI to surrender and exchange the Note(s) owned by it.
3.9    Tax Consequences.  Each of SIC III, SIC IV, and SIC VI acknowledges that the purchase of the shares of Series C Preferred Stock, may involve tax consequences to it, and that the contents of this Agreement do not contain tax advice. Each of SIC III, SIC IV, and SIC VI acknowledges that it has not relied and will not rely upon the Company with respect to any tax consequences related to the exchange of the Note(s).  Each of SIC III, SIC IV, and SIC VI assumes full responsibility for all such consequences and for the preparation and filing of any tax returns and elections which may or must be filed in connection with such Note.
3.10     Reliance on Exemptions. Each of SIC III, SIC IV, and SIC VI understands that the securities being offered and exchanged hereunder are being offered and exchanged in reliance on specific exemptions from the registration requirements of United States federal and state securities laws, and that the Company is relying in part upon the truth and accuracy of, and the representations of each of SIC III, SIC IV, and SIC VI, and compliance with, the representations, warranties, agreements, acknowledgments and understandings of each of SIC III, SIC IV, and SIC VI set forth herein in order to determine the availability of such exemptions and the eligibility of each of SIC III, SIC IV, and SIC VI to acquire the shares of Series C Preferred Stock.
3.11    Approval of Transactions.  Each of the signatories hereto shall vote any common or preferred shares owned by it to approve the transactions contemplated hereby as required at a meeting called for such purpose or by written consent in lieu of a meeting.
ARTICLE IV
CONDITIONS TO THE OBLIGATIONS 
OF THE PARTIES HEREUNDER

The obligations of the Company and each of SIC III, SIC IV, and SIC VI hereunder are subject to the satisfaction of each of the following conditions, provided that these conditions may be waived only with the consent of all applicable Parties.
4.1    Each and every representation and warranty of the Company shall be true and correct in all material respects as of the date when made and as of the Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required to be performed, satisfied or complied with by the Company at or prior to the Closing Date.
4.2     The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the consummation of the transactions contemplated herein.  No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by this Agreement.
4.3    The Company shall not have filed for or be the subject of a filing for bankruptcy, reorganization or assignment for the benefit of creditors or similar relief in any Federal or state proceeding.
ARTICLE V
TERMINATION

5.1    Expenses. Each Party agrees to pay for its own expenses related to the research, preparation and review of the transactions contemplated by this Agreement.
5.2    Cooperation.  The Parties shall cooperate with each other in connection with taking such actions as may be reasonably necessary to consummate the transactions contemplated herein, including without limitation obtaining the consent of Nasdaq and any governmental or market regulatory agencies as may be appropriate.

5.3     Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City and County of New York, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
5.4     Counterparts. This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together will constitute one and the same Agreement.  This Agreement, to the extent delivered by means of a facsimile machine or electronic mail (any such delivery, an “Electronic Delivery”), shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  At the request of any party hereto, each other party hereto shall re‐execute original forms hereof and deliver them in person to all other parties.  No party hereto shall raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such party forever waives any such defense, except to the extent such defense related to lack of authenticity.
5.5     Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.
5.6    Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).
5.7     Entire Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between the Investor, the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement, contains the entire understanding of the Parties with respect to the matters covered herein and, except as specifically set forth herein, neither the Company nor the Investor makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be amended other than by an instrument in writing signed by the Parties, and any amendment to this Agreement made in conformity with the provisions of this Section shall be binding upon the Parties.  No provision hereof may be waived other than by an instrument in writing signed by the Party against whom enforcement is sought.  Notwithstanding the provisions of this Section 5.7, this Agreement shall be subject to the obligations to comply with that certain Exchange Agreement dated July 8, 2016 between the parties, as it may be amended.
5.8    Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (a) upon receipt, when delivered personally; (b) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (c) one business day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:
If to the Company:    Function(X) Inc.
902 Broadway, 11th Floor 
New York, NY 1010
Telephone: 212.231.0092  
Attention:  Mitchell J. Nelson, Esq.
Email:  mitchell@functionxinc.com

If to the SIC III, SIC IV, or SIC VI:        Sillerman Investment Company, LLC
902 Broadway, 11th Floor
New York, NY 10010
ATTN: Robert F.X. Sillerman
Email: one@rfxs1.com

to its address and email address set forth above, or to such other address and/or email address and/or to the attention of such other person as the recipient party has specified by written notice given to each other Party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (i) given by the recipient of such notice, consent, waiver or other communication, (ii) electronically generated by the sender's email program containing the time, date, recipient email address and copy of the message or (iii) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by email or receipt from an overnight courier service in accordance with clause (a), (b) or (c) above, respectively.
5.9     Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of each of SIC III, SIC IV, and SIC VI.  Any of SIC III, SIC IV, and SIC VI may assign some or all of its rights hereunder without the consent of the Company, except as may be inconsistent with the terms of this Agreement.
5.10    Construction.  The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. No specific representation or warranty shall limit the generality or applicability of a more general representation or warranty.
Signatures on following page

IN WITNESS WHEREOF, the Investor and the Company have caused their respective signature pages to this Agreement to be duly executed as of the date first written above.
	
		
	 
	COMPANY:

	 
	 

	 
	FUNCTION(X) INC.

	 
	 

	 
	By:________________________________

	 
	Name: Mitchell J. Nelson

	 
	Title:  Executive Vice President

	 
	 

	 
	 

	 
	SILLERMAN INVESTMENT COMPANY 
III, INC.

	 
	 

	 
	 

	 
	By: ________________________________

	 
	Name: Robert F.X. Sillerman

	 
	Title: Manager

	 
	 

	 
	 

	 
	SILLERMAN INVESTMENT COMPANY 
IV, INC.

	 
	 

	 
	 

	 
	By: ________________________________

	 
	Name: Robert F.X. Sillerman

	 
	Title: Manager

	 
	 

	 
	 

	 
	 

	 
	SILLERMAN INVESTMENT COMPANY 
VI, INC.

	 
	 

	 
	 

	 
	By: ________________________________

	 
	Name: Robert F.X. Sillerman

	 
	Title: Manager

	 
	 

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