Document:

Exhibit

SECURITY AGREEMENT
This SECURITY AGREEMENT, dated as of July 8, 2016 (as amended, restated or otherwise modified from time to time, this “Agreement”) made by Function(x) Inc. (formerly known as DraftDay Fantasy Sports, Inc.), a Delaware corporation (the “Company”), wetpaint.com, Inc., a Delaware corporation, and Choose Digital Inc., a Delaware corporation (each of the Company, wetpaint.com, Inc. and Choose Digital Inc., a  “Grantor” and collectively, the “Grantors”), in favor of Rant, Inc., a Delaware corporation (the “Secured Party”).

RECITALS
WHEREAS, the Company and Secured Party are parties to the Note Purchase Agreement dated as of the date first stated hereof (as amended, restated or otherwise modified from time to time, the “Purchase Agreement”) pursuant to which the Company has agreed, upon the terms and subject to the conditions of the Purchase Agreement, to issue and sell to the Secured Party a 12% secured convertible promissory note in the aggregate principal amount of US$3,000,000 (as such Note may be amended, restated, replaced or otherwise modified from time to time in accordance with the terms thereof, the “Note” and together with the Purchase Agreement, and all other closing documents delivered in connection with the transactions contemplated therein, including this Agreement, the “Transaction Documents”).
WHEREAS, it is a condition precedent to the Secured Party purchasing the Note issued pursuant to the Purchase Agreement that the Grantors shall have executed and delivered to the Secured Party this Agreement providing for the grant to the Secured Party, to secure all of the Company’s obligations under the Transaction Documents and the Guarantors’ obligations under any such Transaction Documents, as applicable, of a valid, enforceable, and perfected security interest in all personal property of each Grantor.
WHEREAS, each of the Grantors have determined that the execution, delivery and performance of this Agreement directly benefits, and is in the best interest of, such Grantor.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and the agreements herein and in order to induce the Secured Party to perform its obligations under the Note, each of the Grantors agrees with the Secured Party, as follows:
Section 1.Definitions.
(a)
    Reference is hereby made to the Note for a statement of the terms thereof. All terms used in this Agreement and the recitals hereto which are defined in the Note or in Articles 8 or 9 of the Uniform Commercial Code as in effect from time to time in the State of New York or such other applicable jurisdiction (the “Code”), and which are not otherwise defined herein shall have the same meanings herein as set forth therein; provided that terms used herein which are defined in the Code as in effect in the State of New York on the date hereof shall continue to have the same meaning notwithstanding any replacement or amendment of such statute.
(b)
    As used in this Agreement, the following terms shall have the respective meanings indicated below, such meanings to be applicable equally to both the singular and plural forms of such terms:
“Capital Stock” means (i) with respect to any Person that is a corporation, any and all shares, interests, participations or other equivalents (however designated and whether or not voting) of corporate stock, and (ii) with respect to any Person that is not a corporation, any and all partnership, membership or other equity interests of such Person.
“Copyright Licenses” means all written licenses, contracts or other agreements naming a Grantor as licensee or licensor and providing for the grant of any right to use or sell any works covered by any copyright.
“Copyrights” means all domestic and foreign copyrights, whether registered or not, including, without limitation, all copyright rights throughout the universe (whether now or hereafter arising) in any and all media (whether now or hereafter developed), in and to all original works of authorship fixed in any tangible medium of expression, acquired or used by a Grantor, all applications, registrations and recordings thereof (including, without limitation, applications, registrations and recordings in the United States Copyright Office or in any similar office or agency of the United States or any other country or any political subdivision thereof), and all reissues, divisions, continuations, continuations in part and extensions or renewals thereof.
“Event of Default” shall have the meaning set forth in Section 6 of the Note.
“Intellectual Property” means the Copyrights, Trademarks and Patents.
“Licenses” means the Copyright Licenses, the Trademark Licenses and the Patent Licenses.
“Lien” means any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets (including accounts and contract rights).
“Patent Licenses” means all written licenses, contracts or other agreements naming a Grantor as licensee or licensor and providing for the grant of any right to manufacture, use or sell any invention covered by any Patent.
“Patents” means all domestic and foreign letters patent, design patents, utility patents, industrial designs, inventions, trade secrets, ideas, concepts, methods, techniques, processes, proprietary information, technology, know-how, formulae, rights of publicity and other general intangibles of like nature, now existing or hereafter acquired, all applications, registrations and recordings thereof (including, without limitation, applications, registrations and recordings in the United States Patent and Trademark Office, or in any similar office or agency of the United States or any other country or any political subdivision thereof), and all reissues, divisions, continuations, continuations in part and extensions or renewals thereof.
“Person” means an individual, corporation, limited liability company, partnership, association, joint-stock company, trust, unincorporated organization, joint venture or other enterprise or entity or governmental authority.
“Pledged Companies” means each direct Subsidiary of a Grantor that has issued Pledged Interests.
“Pledged Interests” means all of the Grantors’ right, title and interest in and to all of the Capital Stock now or hereafter owned by such Grantor, regardless of class or designation, including all substitutions therefor and replacements thereof, all proceeds thereof and all rights relating thereto, also including any certificates representing the Capital Stock, the right to receive any certificates representing any of the Capital Stock, all warrants, options, share appreciation rights and other rights, contractual or otherwise, in respect thereof, and the right to receive dividends, distributions of income, profits, surplus, or other compensation by way of income or liquidating distributions, in cash or in kind, and cash, instruments, and other property from time to time received, receivable, or otherwise distributed in respect of or in addition to, in substitution of, on account of, or in exchange for any or all of the foregoing.
“Pledged Operating Agreements” means all of the Grantors’ rights, powers, and remedies under the limited liability company operating agreements of each of the Pledged Companies that are limited liability companies, as may be amended, restated, supplemented, or otherwise modified from time to time.
“Pledged Partnership Agreements” means all of the Grantors’ rights, powers, and remedies under the partnership agreements of each of the Pledged Companies that are partnerships, as may be amended, restated, supplemented, or otherwise modified from time to time.
“Trademark Licenses” means all written licenses, contracts or other agreements naming a Grantor as licensor or licensee and providing for the grant of any right concerning any Trademark, together with any goodwill connected with and symbolized by any such trademark licenses, contracts or agreements and the right to prepare for sale or lease and sell or lease any and all Inventory now or hereafter owned by a Grantor and now or hereafter covered by such licenses.
“Trademarks” means all domestic and foreign trademarks, service marks, collective marks, certification marks, trade names, business names, d/b/a’s, Internet domain names, trade styles, designs, logos and other source or business identifiers and all general intangibles of like nature, now or hereafter owned, adopted, acquired or used by a Grantor, all applications, registrations and recordings thereof (including, without limitation, applications, registrations and recordings in the United States Patent and Trademark Office or in any similar office or agency of the United States, any state thereof or any other country or any political subdivision thereof), and all reissues, extensions or renewals thereof, together with all goodwill of the business symbolized by such marks and all customer lists, formulae and other Records of a Grantor relating to the distribution of products and services in connection with which any of such marks are used.
SECTION 2.
    Grant of Security Interest.  As collateral security for all of the “Obligations” (as defined in Section 3 hereof), each Grantor hereby pledges and assigns to the Secured Party, and grants to the Secured Party a continuing security interest in, all of the following personal property and assets of such Grantor, wherever located and whether now or hereafter existing and whether now owned or hereafter acquired, of every kind and description, tangible or intangible (collectively, the “Collateral”), including, without limitation, the following: 
(a)
    all Accounts;
(b)
    all Chattel Paper (whether tangible or electronic);
(c)
    all Documents;
(d)
    all Equipment;
(e)
    all Fixtures;
(f)
    all General Intangibles (including, without limitation, all Payment Intangibles);
(g)
    all Goods;
(h)
    all Instruments (including, without limitation, Promissory Notes and each certificated Security);
(i)
    all Inventory;
(j)
    all Investment Property (and, regardless of whether classified as Investment Property under the Code, all Pledged Interests, Pledged Operating Agreements and Pledged Partnership Agreements);
(k)
    all Copyrights, Patents and Trademarks, and all Licenses; 
(l)
    all Letter-of-Credit Rights;
(m)
    all Supporting Obligations; and
(n)
    all Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of any and all of the foregoing Collateral;
in each case, howsoever each Grantor’s interest therein may arise or appear (whether by ownership, security interest, claim or otherwise). To the extent that perfection of the Collateral requires possession or is shared with any of the lenders described in Schedule I hereof (the “Schedule I Lenders”), the Collateral is being held by the Collateral Agent described in the Intercreditor Agreement entered into between the Company, the Schedule I Lenders and the Secured Party.  Notwithstanding the foregoing, the security interests held hereunder and by Schedule I Lenders are subordinate to the security interest held by AmossyKlein Family Holdings LLLP on One Hundred Thousand (100,000) shares of the common stock of Perk.com, Inc. which are in certificated form and in its possession.
Notwithstanding anything herein to the contrary, the security interest created by this Agreement, and the term “Collateral,” shall expressly exclude any Capital Stock of (a) any foreign Subsidiary (except for Capital Stock consisting of more than 65% of the voting power of all classes of Capital Stock entitled to vote of any first-tier foreign Subsidiary) and (b) DraftDay Gaming Group, Inc.; provided, in each case, that Collateral shall include all Proceeds, including all Cash Proceeds and Noncash Proceeds, thereof. Notwithstanding anything herein to the contrary, the security interest created by this Agreement shall not extend to, and the term “Collateral” shall not include, (a) any lease, license, contract, property rights or agreement to which a Grantor is a party (or to any of its rights or interests thereunder) if the grant of such security interest would constitute or result in either (i) the abandonment, invalidation or unenforceability of any right, title or interest of such Grantor therein or (ii) in a breach or termination pursuant to the terms of, or a default under, any such lease, license, contract, property rights or agreement; (b) any Intellectual Property registrations owned and applications for Intellectual Property registrations to be owned, jointly by such Grantor and a Person other than such Grantor, including all renewals and extensions thereof, all rights to recover for past, present or future infringements thereof and all other rights whatsoever accruing thereunder or pertaining thereto; (c) assets owned by such Grantor on the date hereof or hereafter acquired that are subject to a Lien if the contract or other agreement in which such Lien is granted (or the documentation providing for such Lien) validly prohibits the creation of any other Lien on such assets; (d) any intent-to-use Trademark application to the extent and for so long as creation by such Grantor of a security interest therein would result in the loss by such Grantor of any material rights therein; and (e) in the case of any Collateral that consists of general or limited partnership interests in a general or limited partnership, the security interest hereunder shall be deemed to be created only to the maximum extent permitted under the applicable organizational instrument pursuant to which such partnership is formed; and in no event shall such Grantor be required to take any actions to perfect the security interest in any of its assets (including Intellectual Property) located outside the United States. Each Grantor hereby irrevocably authorizes the Secured Party and its counsel and other representatives, at any time and from time to time, to file or record financing statements, amendments to financing statements, and, with notice to such Grantor, other filing or recording documents or instruments with respect to the Collateral in such form and in such offices as the Secured Party determines appropriate to perfect the security interests created under this Agreement, and such financing statements and amendments to financing statements may describe the Collateral covered thereby as “all assets of debtor, whether now existing or hereafter acquired, together with all proceeds thereof” or words of similar effect.
SECTION 3.
    Security for Obligations. The security interest created hereby in the Collateral constitutes continuing collateral security for, so long as the Note is outstanding, the payment by any of the Grantors, as and when due and payable (by scheduled maturity, required prepayment, acceleration, demand or otherwise), of all amounts from time to time owing by it under the Note (the “Obligations”). 
SECTION 4.
    Representations and Warranties.  Each Grantor represents and warrants as of the date of this Agreement as follows:
(a)
    Schedule II hereto sets forth (i) the exact legal name of such Grantor, and (ii) the state of incorporation, organization or formation and the organizational identification number of such Grantor in such state. 
(b)
    No authorization or approval or other action by, and no notice to or filing with, any governmental authority or other regulatory body, is required for the grant by such Grantor of the security interest purported to be created hereby in the Collateral, except (A) for the filing under the Code as in effect in the applicable jurisdiction of the financing statements described in Schedule III hereto, all of which financing statements have been or will be duly filed and are or will be in full force and effect, (B) with respect to Commodity Contracts, for the execution of a control agreement with the commodity intermediary with which such commodity contract is carried, (C) with respect to the perfection of the security interest created hereby in the United States Intellectual Property and Licenses, for the recording of an appropriate Assignment for Security, substantially in the form of Exhibit A hereto in the United States Patent and Trademark Office or the United States Copyright Office, as applicable, (D) with respect to the perfection of the security interest created hereby in foreign Intellectual Property and Licenses, for registrations and filings in jurisdictions located outside of the United States and covering rights in such jurisdictions relating to such foreign Intellectual Property and Licenses, (E) with respect to the perfection of the security interest created hereby in any Letter-of-Credit Rights, for the consent of the issuer of the applicable letter of credit to the assignment of proceeds as provided in the Code as in effect in the applicable jurisdiction, (F) with respect to any action that may be necessary to obtain control of Collateral constituting Commodity Contracts, Electronic Chattel Paper, Investment Property or Letter-of-Credit Rights, the taking of such actions, and (G) the Secured Party having possession of all Documents, Chattel Paper, Instruments and cash constituting Collateral.
(c)
    This Agreement creates in favor of the Secured Party a valid and enforceable security interest in the Collateral, as security for the Obligations (except to the extent that enforcement may be affected by laws relating to bankruptcy, reorganization, insolvency and creditors’ rights and by the availability of injunctive relief, specific performance and other equitable remedies).
(d)
    Such Grantor has delivered to the Secured Party all Collateral constituting Certificated Securities and Instruments along with blank endorsements thereof; provided, however, that if any such Certificated Securities have been pledged and delivered prior to the date of this Agreement, then such Certificated Securities shall only be delivered to the Secured Party after the prior pledge has been released.
(e)
    Such Grantor does not have any Commercial Tort Claim for an alleged claim in excess of $100,000.  
SECTION 5.
    Covenants as to the Collateral. So long as any of the Obligations shall remain outstanding, unless the Secured Party shall otherwise consent in writing:
(a)
    Further Assurances.  Each Grantor shall at its expense, at any time and from time to time, promptly execute and deliver all further instruments and documents and take all further action that the Secured Party may reasonably request in order to: (i) perfect and protect the security interest purported to be created hereby; or (ii) enable the Secured Party to exercise and enforce its rights and remedies hereunder in respect of the Collateral.  
(b)
    Insurance. Each Grantor shall, at its own expense, maintain insurance (including, without limitation, commercial general liability and property insurance) with respect to the Equipment and Inventory in such amounts, against such risks, in such form and with responsible and reputable insurance companies or associations as is required by any governmental authority having jurisdiction with respect thereto or as is carried generally in accordance with sound business practice by companies in similar businesses similarly situated.  To the extent requested by the Secured Party at any time and from time to time, each such policy shall name the Secured Party as an additional insured party and/or loss payee, as applicable, thereunder (without any representation or warranty by or obligation upon the Secured Party) as its interests may appear.  Each Grantor shall, if so requested by the Secured Party, deliver to the Secured Party original or duplicate policies of such insurance and, as often as the Secured Party may reasonably request, a report of a reputable insurance broker with respect to such insurance.
(c)
    Provisions Concerning the Accounts and the Licenses.  Each Grantor shall give the Secured Party at least 5 days’ prior written notice of any change in the Grantor’s name, identity, organizational structure or jurisdiction of incorporation, organization or formation.
(d)
    Intellectual Property.  To the extent not otherwise held or shared with the Schedule I Lenders, if applicable, each Grantor shall duly execute and deliver the applicable Assignment for Security in the form attached hereto as Exhibit A.  Each Grantor (either itself or through licensees) shall take all action necessary to maintain all of the material Intellectual Property in full force and effect, and such Grantor shall not do any act or knowingly omit to do any act whereby any material Intellectual Property may become invalidated; provided, however, such Grantor shall have no obligation to use or to maintain any Intellectual Property (i) it determines in its reasonable discretion that such application or registration of such Intellectual Property is no longer material or useful to its business or operations, or that pursuit or maintenance of such application or registration is no longer reasonable, prudent or beneficial to it or its operations, (ii) that relates solely to any product or work, that has been, or is in the process of being, discontinued, abandoned or terminated, (iii) that is being replaced with Intellectual Property substantially similar to the Intellectual Property that may be abandoned or otherwise become invalid, so long as the failure to use or maintain such Intellectual Property does not materially adversely affect the validity of such replacement Intellectual Property and so long as such replacement Intellectual Property is subject to the Lien created by this Agreement or (iv) that is substantially the same as another Intellectual Property that is in full force, so long the failure to use or maintain such Intellectual Property does not materially adversely affect the validity of such replacement Intellectual Property and so long as such other Intellectual Property is subject to the Lien and security interest created by this Agreement. Each Grantor shall furnish to the Secured Party from time to time upon its reasonable (but not more frequently than on a quarterly basis) request statements and schedules identifying and describing the material Intellectual Property and material Licenses in connection with the Intellectual Property and Licenses, all in reasonable detail and promptly upon request of the Secured Party.
(e)
    Notices of Additional Collateral. Each Grantor shall promptly notify the Secured Party upon acquiring any Collateral constituting Certificated Securities, Instruments, Uncertificated Securities, Securities Accounts, Securities Entitlements, Commodities Accounts, Electronic Chattel Paper, Letter-of-Credit Rights or Commercial Tort Claims.  
(f)
    Additional Perfection Steps with respect to Certificated Securities and Instruments. Grantor shall take all actions necessary to: (i) establish the Secured Party’s “control” (within the meanings of Sections 8-106 and 9-106 of the UCC) over any portion of the Collateral constituting Certificated Securities; and (ii) deliver any portion of the Collateral constituting Instruments to the Secured Party along with blank endorsements thereof.
(g)
    Additional Perfection Steps with respect to Certain other Collateral. If an Event of Default occurs and is continuing, each Grantor shall, upon the Secured Party’s request, (i) establish the Secured Party’s “control” (within the meanings of Section  9-106 of the UCC) over any portion of the Collateral constituting Uncertificated Securities, Securities Accounts, Securities Entitlements or Commodities Accounts; (ii)  upon the Secured Party’s request, establish the Secured Party’s “control” (within the meanings of Section 9-105 of the UCC) over any portion of the Collateral constituting Electronic Chattel Paper; and (iii) upon Secured Party’s request, establish the Secured Party’s “control” (within the meanings of Section 9-107 of the UCC) over any portion of the Collateral constituting Letter-of-Credit Rights.  
(h)
    Commercial Tort Claims.  Each Grantor hereby covenants and agrees that with respect to any Commercial Tort Claim for an alleged claim in excess of $100,000 hereafter arising, it shall notify the Secured Party in writing and deliver updated applicable schedules, identifying such new Commercial Tort Claims.
SECTION 6.
    Remedies Upon Event of Default. If any Event of Default shall have occurred and be continuing upon prior written notice to the Company:
(a)
    The Secured Party may exercise in respect of the Collateral, in addition to any other rights and remedies provided for herein or otherwise available to it, all of the rights and remedies of a secured party upon default under the Code (whether or not the Code applies to the affected Collateral), and also may (A) sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Secured Party’s offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as the Secured Party may deem commercially reasonable and/or (B) lease, license or dispose of the Collateral or any part thereof upon such terms as the Secured Party may deem commercially reasonable.  Each Grantor agrees that, to the extent notice of sale or any other disposition of its respective Collateral shall be required by law, at least ten (10) days’ notice to such Grantor of the time and place of any public sale or the time after which any private sale or other disposition of its respective Collateral is to be made shall constitute reasonable notification. The Secured Party shall not be obligated to make any sale or other disposition of any Collateral regardless of notice of sale having been given. Each Grantor hereby acknowledges that (i) any such sale of its respective Collateral by the Secured Party shall be made without warranty, (ii) the Secured Party may specifically disclaim any warranties of title, possession, quiet enjoyment or the like, and (iii) such actions set forth in clauses (i) and (ii) above shall not adversely affect the commercial reasonableness of any such sale of Collateral.
(b)
    Any cash held by the Secured Party as Collateral and all Cash Proceeds received by the Secured Party in respect of any sale of or collection from, or other realization upon, all or any part of the Collateral shall be applied by the Secured Party against all or any part of the Obligations in such order as the Secured Party shall elect. Any surplus of such cash or Cash Proceeds held by the Secured Party and remaining after the satisfaction in full of all of the Obligations shall be paid over to the Company or to whomsoever shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct.
(c)
    In the event that the proceeds of any such sale, collection or realization are insufficient to pay all amounts to which the Secured Party is legally entitled, each Grantor shall be liable for the deficiency, together with interest thereon at the highest rate specified in the Note for interest on overdue principal thereof or such other rate as shall be fixed by applicable law, together with the costs of collection and the reasonable fees, costs, expenses and other client charges of any attorneys employed by the Secured Party to collect such deficiency.
(d)
    The Secured Party may perform any and all of its duties and exercise its rights and powers hereunder by or through, or delegate any and all such rights and powers to, any one or more agents appointed by the Secured Party.  
SECTION 7.
    Notices, Etc. All notices and other communications provided for hereunder (a) shall be given in the form and manner set forth in the Note and (b) shall be delivered (i) in the case of notice or other communications to the Grantors, by delivery of such notice to the Grantors at their address, facsimile number or e-mail address specified in the Note or at such other address, facsimile number or e-mail address as shall be designated by a Grantor in a written notice to the Secured Party in accordance with the provisions thereof or (ii) in the case of notice or other communications to the Secured Party, by delivery of such notice to the Secured Party to its address, facsimile number or e-mail address set forth below or at such other address as shall be designated by the Secured Party in a written notice to the Grantors.
	
		
	 
	If to the Grantors:

	 
	Function(x) Inc. / wetpaint.com, Inc / Choose Digital Inc. 
902 Broadway, 11th Floor, New York, New York 10010 
Attention:  Mitchell J. Nelson, Esq. 
Telephone:  212-231-0092 
Facsimile: 646-417-7393 
E-mail:  mitchell@wetpaint.com

	 
	If to the Secured Party:

	 
	Rant, Inc.
4 Park Plaza, Suite 950, Irvine, California 92614
Attention:           
Telephone:           
Facsimile:           
E-mail:           

	 
	With a copy to:

Sichenzia Ross Friedman Ference LLP
61 Broadway, 32nd Floor
New York, NY 10006
Attention: Harvey Kesner, Esq.
Telephone: 212-930-9700
Facsimile: 212-930-9725
Email: hkesner@srff.com

SECTION 8.
    Miscellaneous.
(a)
    Upon satisfaction in full of the Obligations, (i) this Agreement and the security interests created hereby shall automatically terminate and all rights to the Collateral shall revert to the Grantors, and (ii) the Secured Party shall, upon the Grantors’ request and at the Grantor’s expense, (A) return to the Grantors such of the Collateral as shall not have been sold or otherwise disposed of or applied pursuant to the terms hereof, and (B) execute and deliver to the Grantors such documents as the Grantors shall reasonably request to evidence such termination, all without any representation, warranty or recourse whatsoever. 
(b)
    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 Grantor irrevocably submits to the non- exclusive jurisdiction of the state and federal courts sitting in the State 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 Grantor 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 TO, 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.
(c)
    This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof. Any party delivering an executed counterpart of this Agreement by facsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement.
(d)
    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). 
(e)
    Headings used in this Agreement are for convenience only and shall not be used in connection with the interpretation of any provision hereof. 
(f)
    The pronouns used herein shall include, when appropriate, either gender and both singular and plural, and the grammatical construction of sentences shall conform thereto.
(g)
    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. For clarification purposes, the Recitals are part of this Agreement.
(h)
    Unless the context of this Agreement clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the terms “includes” and  “including” are not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement. Section, subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise specified. Any reference in this Agreement to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein).
(i)
    THIS AGREEMENT REPRESENTS THE ENTIRE AGREEMENT BETWEEN THE PARTIES SOLELY WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATER HEREOF. No provision of this Agreement may be amended other than by an instrument in writing signed by the Grantor and the Secured Party. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.
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IN WITNESS WHEREOF, the Grantors have caused this Agreement to be executed and delivered by its officer thereunto duly authorized, as of the date first above written.

GRANTOR:
FUNCTION(X) INC. 
By: __________________________
Name: Mitchell J. Nelson
Title:   Executive Vice President

GRANTOR:
WETPAINT.COM, INC. 
By: __________________________
Name: Mitchell J. Nelson
Title:   Executive Vice President

GRANTOR:
CHOOSE DIGITAL INC. 
By: __________________________
Name: Mitchell J. Nelson
Title:   Executive Vice President

SECURED PARTY:

RANT, INC

By: __________________________
Name: 
Title: 

SCHEDULE I
LENDER                            
Sillerman Investment Company III, LLC             
Sillerman Investment Company IV, LLC            
Sillerman Investment Company VI LLC            

SCHEDULE II
		
	•
	Viggle Inc., a Delaware corporation, No. 2413666  

		
	•
	wetpaint.com, Inc., a Delaware corporation, No. 3991989

		
	•
	Choose Digital Inc., a Delaware corporation, No. 5080835

SCHEDULE III
List of previously filed financing statements attached.

MIA 185075171v2Exhibit

SUBORDINATION AGREEMENT
FOR VALUE RECEIVED, and in order to induce the creditors set forth on the signature page hereof (collectively, the “Senior Creditor”) now and from time to time hereafter to extend financial accommodations to, or otherwise extend or continue to extend credit to or for the benefit of Function(x) Inc., a corporation organized and existing under the laws of the State of Delaware (“Company”), each of the undersigned (each a “Subordinated Creditor” and collectively, “Subordinated Creditors”) does hereby unconditionally and irrevocably postpone, defer and subordinate in all respects to the prior indefeasible payment in full in cash or by the issuance of shares of the Company’s common stock as provided for in the Convertible Debentures (as hereinafter defined), by the Company of the Obligations (as hereinafter defined) to the Senior Creditor, payment of the indebtedness of Company to such Subordinated Creditor evidenced by: (i) the notes, other instruments and/or documents set forth on Exhibit A hereto, and (ii) all other indebtedness of Company to such Subordinated Creditor of every nature, howsoever evidenced, incurred or created, and whether now or hereafter owing (collectively, the “Subordinated Indebtedness”) to: (x) the obligations and liabilities of Company to the Senior Creditor under those certain 10% Senior Secured Convertible Debentures dated as of July 8, 2016 among Company, as borrower, and Senior Creditor, as lender, including any Additional Debentures (as defined in the Securities Purchase Agreement, dated as of July 8, 2016, among the Company, the Senior Creditor and other persons signatory thereto )(as the same may from time to time be or has been amended, restated, modified or supplemented, the “Convertible Debentures”).
Each Subordinated Creditor further subordinates to the Senior Creditor any and all liens and security interests on the assets of Company or any of its subsidiaries heretofore and from time to time hereafter received by such Subordinated Creditor to secure the payment of the Subordinated Indebtedness or as security for any other indebtedness of Company or any of its subsidiaries to such Subordinated Creditor, howsoever evidenced, incurred or created, and whether now or hereafter owing (“Subordinated Creditor’s Liens”), and in connection therewith agrees that: (i) any and all liens and security interests upon the assets of Company or any of its subsidiaries heretofore and from time to time hereafter received by the Senior Creditor as security for the Obligations shall be superior to and take priority over Subordinated Creditor’s Liens, regardless of the order of filing or perfection; (ii) the Senior Creditor shall owe no duty to any Subordinated Creditor whatsoever as a result of or in connection with Subordinated Creditor’s Liens, and, without limiting the foregoing, the Senior Creditor shall not owe to any Subordinated Creditor any duty of notice, marshalling of assets or protection of the rights or interests of any Subordinated Creditor; (iii) promptly, but in any event within five (5) Business Days, to send to the Senior Creditor, a copy of any notice of default under the Subordinated Indebtedness sent to Company or any of its subsidiaries and (iv) so long as this Agreement shall be in effect, no Subordinated Creditor will take any action to foreclose or otherwise enforce any of Subordinated Creditor’s Liens. The Senior Creditor shall have the exclusive right to manage, perform and enforce the underlying terms of the Convertible Debentures relating to the assets of Company and to exercise and enforce its rights according to its discretion.  Each Subordinated Creditor waives all rights to affect the method or challenge the appropriateness of any action taken by the Senior Creditor in connection with the Senior Creditor’s enforcement of its rights under the Convertible Debentures and any and all other documents, instruments and agreements entered into in connection therewith.  As between each Subordinated Creditor and the Senior Creditor, only the Senior Creditor shall have the right to restrict, permit, approve or disapprove the sale, transfer or other disposition of the assets of Company.  As between the Senior Creditor and each Subordinated Creditor, the terms of this Agreement shall govern even if all or part of the Senior Creditor’s liens are avoided, disallowed, set aside or otherwise invalidated. 
Upon any distribution of the assets or readjustment of the indebtedness of Company or any of its subsidiaries, whether by reason of liquidation, composition, bankruptcy, arrangement, receivership, assignment for the benefit of creditors or any other action or proceeding involving the readjustment of all or any of the Subordinated Indebtedness, or the application of the assets of Company or any of its subsidiaries to the payment or liquidation thereof, the Senior Creditor shall be entitled to receive payment in full of any and all Obligations then owing to it by Company prior to the payment of all or any part of the Subordinated Indebtedness, and in order to enable the Senior Creditor to enforce its rights hereunder in any such action or proceeding, the Senior Creditor is hereby irrevocably authorized and empowered in its discretion as attorney in fact for each Subordinated Creditor to make and present for and on behalf of such Subordinated Creditor such proofs of claims against Company or any of its subsidiaries on account of the Subordinated Indebtedness as the Senior Creditor may deem expedient or proper and to vote such proofs of claims in any such proceeding and to receive and collect any and all dividends or other payments or disbursements made thereon in whatever form the same may be paid or issued and to apply same on account of any Obligations owing to the Senior Creditor by Company.
Each Subordinated Creditor will execute and deliver to the Senior Creditor from time to time such assignments or other instruments as may be required by the Senior Creditor in order to enable it to enforce any and all such claims and to collect any and all dividends or other payments or disbursements which may be made at any time on account of all or any part of the Subordinated Indebtedness.
Each Subordinated Creditor hereby acknowledges that the Subordinated Indebtedness is and shall be expressly subordinated in right of payment to the Obligations and no Subordinated Creditor will accept and Company shall not make, nor shall it permit any of its subsidiaries to make, any payment in respect of the Subordinated Indebtedness until such time as the Obligations have been indefeasibly paid in full.  No Subordinated Creditor shall now or hereafter directly or indirectly (i) ask, demand, sue for, take or receive payment of all or any part of the Subordinated Indebtedness or any collateral therefor, and neither Company nor any of its subsidiaries shall be obligated to make any such payment, and the failure of Company or any of its subsidiaries so to do shall not constitute a default by Company or any of its subsidiaries in respect of the Subordinated Indebtedness, (ii) seize any property of Company or any of its subsidiaries or (iii) institute or join any petition or other proceeding for any insolvency, bankruptcy, receivership or similar proceeding against Company or any of its subsidiaries under any bankruptcy, reorganization, readjustment of debt, arrangement of debt, receivership, liquidation or insolvency law or statute of the Federal or any state government (each an “Insolvency Proceeding”) unless the Senior Creditor shall also join.  In the event any Subordinated Creditor shall receive any payment in respect of the Subordinated Indebtedness, whether in cash, securities or other property, during any Insolvency Proceeding or when such Subordinated Creditor is not permitted to receive such payment in accordance with the terms of this Agreement, then such Subordinated Creditor shall forthwith deliver, or cause to be delivered, the same to the Senior Creditor in precisely the form held by such Subordinated Creditor (except for any necessary endorsement) and until so delivered the same shall be held in trust by such Subordinated Creditor as the property of the Senior Creditor. In the event of any Insolvency Proceeding, any payment or distribution in any such Insolvency Proceeding of any kind or character, whether in cash, securities or other property, which would otherwise (but for this Agreement) be payable or deliverable in respect of any Subordinated Indebtedness shall be paid or delivered by the person making such distribution or payment, whether a trustee in bankruptcy, receiver, assignee for the benefit of creditors, liquidating trustee or agent, or otherwise, directly to the Senior Creditor, in the same form as received (together with any necessary endorsements or assignments, in each case, without recourse) for application in payment of the Obligations in accordance with the priorities then existing among such holders, to the extent necessary to pay in full all Obligations then remaining unpaid, after giving effect to any concurrent payment or distribution to the Senior Creditor.  
Without the prior written consent of the Senior Creditor, no Subordinated Creditor will at any time while this Agreement remains in effect (a) amend or modify any term or provision of any document, instrument or agreement evidencing the Subordinated Indebtedness if such amendment or modification violates or contradicts the terms of this Agreement, or (b) assign or transfer any right, claim or interest of any kind in or to any of the Subordinated Indebtedness or any collateral therefor (other than, in each case, the Existing Liens (as defined below) and any assignment or transfer as a result of the enforcement of remedies with respect to the Existing Liens) unless, prior to the consummation of any such assignment or transfer, the assignee or transferee thereof shall execute and deliver to Senior Creditor an agreement substantially identical to this Agreement, providing for the continued subordination of the Subordinated Indebtedness to the Obligations as provided herein and for the continued effectiveness of all of the rights of the Senior Creditor arising under this Agreement.
Nothing contained herein shall restrict or otherwise prohibit the right of the Senior Creditor and/or any Subordinated Creditor to effectuate a conversion of its indebtedness into shares of common stock or preferred stock, including convertible preferred stock, of the Company.
The Senior Creditor may at any time, in its discretion, renew or extend the time of payment of all or any existing or future Obligations of Company to the Senior Creditor or waive or release any collateral which may be held therefor at any time, and in connection therewith may make and enter into any such agreement or agreements as it may deem proper or desirable without notice to or the consent of any Subordinated Creditor and without in any manner impairing or affecting this Agreement or any of the Senior Creditor’s rights hereunder.
Each Subordinated Creditor warrants to Senior Creditor that: (i) such Subordinated Creditor is the owner of the Subordinated Indebtedness set forth on Exhibit A; (ii) each Subordinated Creditor has the full right, power and authority to make, execute and deliver this Agreement; (iii) no Subordinated Creditor has heretofore assigned in the Subordinated Indebtedness or any instrument or document evidencing the Subordinated Indebtedness to any third party (it being acknowledged and agreed that each Subordinated Creditor has pledged and granted a security interest or other lien in the Subordinated Indebtedness to one or more creditors of such Subordinated Creditor (collectively, the “Existing Liens”)); (iv) this Agreement is valid and binding upon each Subordinated Creditor and is and will be enforceable by the Senior Creditor in accordance with its terms (except as limited by bankruptcy and other laws affecting the rights of creditors generally); and (v) Company is not now in default with respect to the Subordinated Indebtedness or any part thereof.  This Agreement shall be effective as of the date hereof and shall continue in effect until all of the Obligations have been indefeasibly paid in cash, performed and satisfied in full, in which case this Agreement shall automatically terminate and be of no further effect.
This Agreement shall continue in full force and effect after the filing of any petition (“Petition”) by or against Company or any of its subsidiaries under the United States Bankruptcy Code (the “Code”) and all converted or succeeding cases in respect thereof in accordance with Section 510(a) of the Code.  All references herein to Company or any of its subsidiaries shall be deemed to apply to Company and such subsidiaries as debtor-in-possession and to a trustee for Company and its subsidiaries.  If Company or any of its subsidiaries shall become subject to a proceeding under the Code, and if the Senior Creditor shall desire to permit the use of cash collateral or to provide post-Petition financing from the Senior Creditor to Company or any of its subsidiaries under the Code, each Subordinated Creditor agrees as follows:  (1)  adequate notice to such Subordinated Creditor shall be deemed to have been provided for such consent or post-Petition financing if such Subordinated Creditor receives notice thereof three (3) business days (or such shorter notice as is given to the Senior Creditor) prior to the earlier of (a) any hearing on a request to approve such post-petition financing or (b) the date of entry of an order approving same, (2) it consents to the use of cash collateral or provisions of post-Petition financing, in each case, on such terms and conditions and in such amounts as the Senior Creditor, in its sole discretion, may decide, (3) no objection will be raised by such Subordinated Creditor to any such use of cash collateral or such post-Petition financing from Senior Creditor, (4) Company or its subsidiaries may grant liens or adequate protection to the Senior Creditor (and Subordinated Creditor will not contest or object to such action) which shall be superior in priority to the liens held by Subordinated Creditor and (5) Subordinated Creditor shall not contest or object to (nor support any other person contesting or objecting to) the payment of interest, fees, expenses, or other amounts to the Senior Creditor under Section 506(b) or 506(c) of the Bankruptcy Code, or any objection by the Senior Creditor to any motion, relief, action or proceeding based on the Senior Creditor claiming a lack of adequate protection. Subordinated Creditor agrees that the Senior Creditor may consent to the sale or disposition of any or all of the Collateral in an Insolvency Proceeding pursuant to Section 363 of the Code or otherwise, and Subordinated Creditor, in its capacity as a secured creditor, shall be deemed to have consented to any such sale or disposition free and clear of Subordinated Creditor’s Liens and other interests (and all of the terms applicable thereto) if such sale proceeds are required by the court order approving such sale or disposition to be applied to the Obligations and the Subordinated Indebtedness in accordance with the priorities set forth in this Agreement.  If requested to do so by the Senior Creditor in connection with any such sale or disposition, Subordinated Creditor will promptly execute and deliver to the Senior Creditor a release of such Subordinated Creditor’s Liens and other interests with respect to the Collateral to be sold or disposed.
In any Insolvency Proceeding, Subordinated Creditor may seek adequate protection in respect of the Subordinated Indebtedness, subject to the provisions of this Agreement, only if and only to the extent that (I) Senior Creditor is granted adequate protection in the form of additional collateral including replacement liens on post-petition collateral and (II) such additional protection requested by Subordinated Creditor is in the form of a lien on such additional collateral including replacement liens on post-petition collateral, which liens, if granted, will be subordinated to the adequate protection liens securing the Obligations and the liens securing any postpetition financing on the same basis as the liens securing the Subordinated Indebtedness are so subordinated to the liens securing the Obligations under this Agreement.  Any claim by a Subordinated Creditor under section 507(b) of the Code will be subordinate in right of payment to any claim of the Senior Creditor under section 507(b) of the Code and any payment thereof will be deemed to be proceeds of Collateral.
In any Insolvency Proceeding, Subordinated Creditor shall not (i) seek relief from the automatic stay or any other stay in an Insolvency Proceeding in respect of the Collateral without the Senior Creditor’s prior written consent, (ii) provide post-Petition financing to Company or any of its subsidiaries secured by liens equal or senior in priority to the liens securing any Senior Obligations or (iii) oppose or seek to challenge any claim by the Senior Creditor for allowance or payment in such any Insolvency Proceeding of Obligations or other amounts consisting of post-Petition claims.
Subject to the prior payment in full in cash of the Obligations, to the extent that the Senior Creditor has received any payment on the Obligations which, but for this Agreement, would have been applied to the Subordinated Indebtedness, each Subordinated Creditor shall be subrogated to the then or thereafter rights of the Senior Creditor including, without limitation, the right to receive any payment made on the Obligations until the Subordinated Indebtedness shall be paid in full; and, for the purposes of such subrogation, no payment to the Senior Creditor to which any Subordinated Creditor would be entitled except for the provisions of this Agreement shall, as among the Company, its creditors (other than the Senior Creditor) and such Subordinated Creditor, be deemed to be a payment by Company to or on account of the Obligations, it being understood that the provisions hereof are and are intended solely for the purpose of defining the relative rights of each Subordinated Creditor on the one hand, and the Senior Creditor on the other hand.
The Senior Creditor shall: (i) be named as loss payee under any insurance policies of the Company insuring the Collateral; provided that, any insurance proceeds paid to Senior Creditor shall be distributed in accordance with this Agreement; (ii) adjust settlement of any claim for the Collateral in the event of a loss under such policy; and (iii) approve any award granted in any condemnation or similar proceeding affecting the Collateral.  The priorities set out in this Agreement shall govern the ultimate disposition of insurance proceeds.  Unless and until the Obligations are indefeasibly paid in full, (x) all proceeds of such insurance shall inure to the Senior Creditor, and Subordinated Creditor shall cooperate in a reasonable manner in effecting the payment of insurance proceeds to the Senior Creditor, and (y) the Senior Creditor shall have the exclusive right, without the consent of or notice to Subordinated Creditor, to determine whether insurance or condemnation proceeds will be applied to the Obligations or used to rebuild, replace or repair the affected Collateral.  
Notice details for each party hereto are set forth on the applicable signature page to this Agreement.  Any notice or other communication hereunder shall be in writing and, if delivered, it shall be considered received on the day it is given to an officer of the recipient, or if faxed during normal business hours on a business day, it shall be considered received on the same day as the transmission thereof was successfully completed to the number set forth below each party’s signature page hereto.  Any party may change its fax number from time to time in a notice similarly given.
This Agreement shall be binding upon Subordinated Creditors and their respective successors and assigns and shall inure to the benefit of the Senior Creditor and its successors and assigns.  This Agreement may be executed in any number of counterparts, all of which, taken together, shall constitute one and the same agreement. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
EACH SUBORDINATED CREDITOR SUBMITS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, STATE OF NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF, OR RELATING TO, THIS AGREEMENT, AGREES THAT ALL CLAIMS IN RESPECT OF THE ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND AGREES NOT TO BRING ANY ACTION OR PROCEEDING ARISING OUT OF, OR RELATING TO, THIS AGREEMENT IN ANY OTHER COURT.  EACH SUBORDINATED CREDITOR WAIVES ANY DEFENSE OF INCONVENIENT FORUM TO THE MAINTENANCE OF ANY ACTION OR PROCEEDING SO BROUGHT AND WAIVES ANY BOND, SURETY OR OTHER SECURITY THAT MIGHT BE REQUIRED OF ANY OTHER PARTY WITH RESPECT THERETO.  EACH SUBORDINATED CREDITOR AGREES THAT SERVICE OF SUMMONS AND COMPLAINT OR ANY OTHER PROCESS THAT MIGHT BE SERVED IN ANY ACTION OR PROCEEDING MAY BE MADE ON SUCH PARTY BY SENDING OR DELIVERING A COPY OF THE PROCESS TO THE PARTY TO BE SERVED AT THE ADDRESS OF THE PARTY AND IN THE MANNER PROVIDED FOR THE GIVING OF NOTICES HEREIN.  NOTHING IN THIS PARAGRAPH, HOWEVER, SHALL AFFECT THE RIGHT OF ANY PARTY TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.  EACH SUBORDINATED CREDITOR AGREES THAT A FINAL JUDGMENT IN ANY ACTION OR PROCEEDING SO BROUGHT SHALL BE CONCLUSIVE AND MAY BE ENFORCED BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.
 TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, EACH PARTY HEREBY IRREVOCABLY WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING IN WHOLE OR IN PART UNDER, RELATED TO, BASED ON OR IN CONNECTION WITH THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER SOUNDING IN TORT OR CONTRACT OR OTHERWISE.  ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.
IN WITNESS WHEREOF, the parties hereto have caused this Subordination Agreement to be duly executed and delivered as of July 8, 2016.

	
					
	 
	 
	

SUBORDINATED CREDITORS:
SILLERMAN INVESTMENT COMPANY III, LLC

	Date:
	July 8, 2016
	 
	By:
	 

	 
	 
	 
	 
	Name:   Robert F.X. Sillerman
Title:   Manager

	 
	 
	 
	 
	 

	 
	 
	 
	Address:  902 Broadway, 11th Floor  
                New York, New York 10010 
Attention:  Robert F. X. Sillerman 
Telephone No.: 212-231-0092 
Facsimile No.: 646-417-7393

	 
	 
	SILLERMAN INVESTMENT COMPANY IV, LLC

	 
	 
	 
	By:
	 

	Date:
	July 8, 2016
	 
	 
	Name:   Robert F.X. Sillerman
Title:   Manager

	 
	 
	 
	 
	 

	 
	 
	 
	Address:  902 Broadway, 11th Floor 
                New York, New York 10010 
Attention:  Robert F. X. Sillerman 
Telephone No.: 212-231-0092 
Facsimile No.: 646-417-7393

Signatures continue on following page
	
					
	 
	 
	SILLERMAN INVESTMENT COMPANY VI, LLC

	 
	 
	 
	By:
	 

	Date:
	July 8, 2016
	 
	 
	Name:   Robert F.X. Sillerman
Title:   Manager

	 
	 
	 
	 
	 

	 
	 
	 
	Address:  902 Broadway, 11th Floor 
                New York, New York 10010 
Attention:  Robert F. X. Sillerman 
Telephone No.: 212-231-0092 
Facsimile No.: 646-417-7393

	 
	 
	 
	RANT, INC.

	
					
	 
	 
	 
	By:
	 

	Date:
	July 8, 2016
	 
	 
	Name:   
Title:   

	 
	 
	 
	 
	 

	 
	 
	 
	Address:  4 Park Plaza 
    Suite 950
                Irvine, CA 92614 
Attention:   
Telephone No.:  
Facsimile No.: 

	
					
	 
	 
	ACKNOWLEDGED AND ACCEPTED:
DOMINION CAPITAL LLC

	Date:
	July 8, 2016
	 
	By:
	 

	 
	 
	 
	 
	Name:   
Title:   

	 
	 
	 
	 
	 

	 
	 
	 
	Address:  
                 
Attention:  
Telephone No.:  
Facsimile No.: 

AGREEMENT NOT TO PAY SUBORDINATED INDEBTEDNESS The undersigned hereby acknowledges receipt of a copy of the above and foregoing Agreement and agrees not to pay any of the Subordinated Indebtedness until such time as the Obligations have been indefeasibly paid in full. 
	
					
	 
	 
	FUNCTION(X) INC.

	Date:
	July 8, 2016
	 
	By:
	 

	 
	 
	 
	 
	Name:   
Title:   

EXHIBIT A TO SUBORDINATION AGREEMENT
Documents Evidencing Subordinated Indebtedness
		
	1.
	Line of Credit Promissory Note dated as of October 24, 2014 made by the Company in favor of Sillerman Investment Company III, LLC in the original principal amount of $20,000,000 as amended, supplemented, renewed, extended, replaced or restated from time to time.

		
	2.

	Line of Credit Grid Note dated as of June 11, 2015 made by the Company in favor of Sillerman Investment Company IV, LLC in the original principal amount of $10,000,000 as amended, supplemented, renewed, extended, replaced or restated from time to time.

		
	3.

	Revolving Secured Promissory Note dated as of January 29, 2016 made by the Company in favor of Sillerman Investment Company VI, LLC in the original principal amount of $1,500,000 as amended, supplemented, renewed, extended, replaced or restated from time to time.

		
	4.

	Revolving Secured Promissory Note dated as of March 29, 2016 made by the Company in favor of Sillerman Investment Company VI, LLC in the original principal amount of $500,000 as amended, supplemented, renewed, extended, replaced or restated from time to time.

		
	5.

	Revolving Secured Promissory Note dated as of April 25, 2016 made by the Company in favor of Sillerman Investment Company VI, LLC in the original principal amount of $500,000 as amended, supplemented, renewed, extended, replaced or restated from time to time.

		
	6.

	Revolving Secured Promissory Note dated as of May 16, 2016 made by the Company in favor of Sillerman Investment Company VI, LLC in the original principal amount of $500,000 as amended, supplemented, renewed, extended, replaced or restated from time to time.

		
	7.

	Revolving Secured Promissory Note dated as of June 27, 2016 made by the Company in favor of Sillerman Investment Company VI, LLC in the original principal amount of $1,500,000 as amended, supplemented, renewed, extended, replaced or restated from time to time.

		
	8.

	12% Secured Promissory Note dated as of July 8, 2016 made by the Company in favor of Rant, Inc. in the principal amount of $3,000,000 as amended, supplemented, renewed, extended, replaced or restated from time to time.

		
	9.

	Convertible Promissory Note dated as of June 10, 2016 made by the Company in favor of Reaz Islam in the original principal amount of $300,000 as amended, supplemented, renewed, extended, replaced or restated from time to time, which by its terms is subordinate to all Sillerman indebtedness. 

		
	10.

	Unsecured Demand Promissory Note made by the Company in favor of Robert F.X. Sillerman, assigned to Sillerman Investment Company VI, LLC in the principal amount of $152,439, as amended, supplemented, renewed, extended, replaced or restated from time to time.

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