X0306 4 2016-08-22 0 0000725876 Function(x) Inc. FNCX 0001622181 Sillerman Investment Co III, LLC 902 BROADWAY, FL 11 NEW YORK NY 10010 1 0 1 0 Common Stock 30811268 D Series C Preferred Stock 2016-08-22 4 A 0 23264 A 2016-08-22 Common Stock 7 D Series C Preferred Stock Common Stock 9 D Warrants (right to buy) 3.51 2014-10-24 2019-10-24 Common Stoock 225000 225000 D Warrants (right to buy) 2.98 2014-11-25 2019-11-25 Common Stock 150000 150000 D Warrants (right to buy) 3.63 2014-12-15 2019-12-15 Common Stock 775000 775000 D Warrants (right to buy) 1.78 2015-03-16 2020-03-16 Common Stock 350000 350000 D This transaction was exempt from the provisions of Section1 6(b) pursuant to Rule 16b-3 thereunder. The Reporting Person previously purchased 10,000 shares of the Issuer's Series C Preferred Stock at a price of $1,000 per share. 7,000 shares of Series C Preferred Stock were exchanged for 22,580,645 shares of the Issuer's common stock in a transaction exempt from the provisions of Section 16(b) pursuant to Rule 16b-3 thereunder. Warrants previously acquired by the Reporting Person, exercisable at $3.51 per share. Warrants previously acquired by the Reporting Person, exercisable at $2.98 per share. Warrants previously acquired by the Reporting Person, exercisable at $3.63 per share. Warrants previously acquired by the Reporting Person, exercisable at 1.78 per share. Subject to existing Exchange Agreement, the Series C Preferred Shares are convertible into common shares, the number of which will be based on the pricing at the time of conversion. Debt held by SIC III was exchanged for shares of Series C Preferred Stock. The Reporting Person previously held 3,000 shares of Series C Preferred Stock. The Reporting Person continues to hold those shares, but the terms of those shares were changed, such that the shares are no longer convertible by their terms. However, the shares are subject to an Exchange Agreement. See footnote (7). The Series C Preferred Shares are exchangeable for common shares pursuant to a pre-existing exchange agreement. Any exchange is subject to certain conditions, but there is no expiration on the time at which such exchange may occur. SILLERMAN INVESTMENT COMPANY III LLC 2016-08-29 /s/ Robert F.X. Sillerman 2016-08-29