Private Media Group (PRVT)

Compensation of Directors

Our Board of Directors may, at its discretion, compensate directors for attending Board and Committee meetings and reimburse the directors for out-of-pocket expenses incurred in connection with attending such meetings.

The Company has agreed to pay Daniel Sánchez and Lluis Torralba a fee of EUR 2,000, and Johan Carlberg a fee of EUR 1,000, for each Board and Committee meeting attended. Our directors are also eligible to receive stock option grants under its Stock Option Plan. In 2004 Messrs. Sánchez and Carlberg were each granted options to acquire 10,000 and 3,000 shares, respectively, of the Company’s Common Stock at an exercise price of $2.53 per share, which options vested in October 2005 and expire in October 2008; and in 2005 Messrs. Sánchez and Carlberg were each granted options to acquire 10,000 and 3,000 shares,

5

respectively, of the Company’s Common Stock at an exercise price of $2.17 per share, which options vested in October 2006 and expire in October 2009 In 2005 Mr. Torralba was granted options to acquire 8,000 shares of the Company’s Common Stock at an exercise price of $2.74 per share, which options vested in May 2006 and expire in May 2009.

6

Compensation of Directors

Our Board of Directors may, at its discretion, compensate directors for attending Board and Committee meetings and reimburse the directors for out-of-pocket expenses incurred in connection with attending such meetings.

Effective May 2002, we have agreed to pay to Berth Milton a director fee of $215,000 per year plus out-of-pocket expenses for serving as Chairman of the Board. In 1999 we adopted the 1999 Employee Stock Option Plan which authorizes stock

- 55 -

options to be issued to directors. On April 3, 2003 Mr. Milton received 2,000,000 options exercisable at $1.20 under the plan for serving as Director and Chairman of the Board. The Company has agreed to pay each of Daniel Sánchez and Lluis Torralba a fee of EUR 2,000 and Johan Carlberg a fee of EUR 1,000 for each Board and Committee meeting attended. In addition, Messrs. Sánchez and Carlberg have each been granted options to: (i) acquire 10,000 and 3,000 shares, respectively, of the Company’s Common Stock at an exercise price of $2.53 per share, which options vest in October 2005 and expire in October 2008, and (ii) acquire 10,000 and 3,000 shares, respectively, of the Company’s Common Stock at an exercise price of $2.17 per share, which options vest in October 2006 and expire in October 2009. Mr. Torralba has been granted options to acquire 8,000 shares of the Company’s Common Stock at an exercise price of $2.74 per share, which options vest in May 2006 and expire in May 2009.

Compensation of Directors

Our Board of Directors may, at its discretion, compensate directors for attending Board and Committee meetings and reimburse the directors for out-of-pocket expenses incurred in connection with attending such meetings.

Effective May 2002, we have agreed to pay to Berth Milton a director fee of $215,000 per year plus out-of-pocket expenses for serving as Chairman of the Board. In 1999 we adopted the 1999 Employee Stock Option Plan which authorizes stock options to be issued to directors. In 2003 Mr. Milton received 2,000,000 options exercisable $1.20 under the plan for serving as Director and Chairman of the Board. The Company has

5

agreed to pay Daniel Sánchez and Lluis Torralba a fee of EUR 2,000, and Johan Carlberg a fee of EUR 1,000, for each Board and Committee meeting attended. In addition, Messrs. Sánchez and Carlberg have each been granted options to acquire 10,000 and 3,000 shares, respectively, of the Company’s Common Stock at an exercise price of $2.53 per share, which options vested in October 2005 and expire in October 2008. Mr. Torralba has been granted options to acquire 8,000 shares of the Company’s Common Stock at an exercise price of $2.74 per share, which options vest in May 2006 and expire in May 2009.

Compensation of Directors

Our Board of Directors may, at its discretion, compensate directors for attending Board and Committee meetings and reimburse the directors for out-of-pocket expenses incurred in connection with attending such meetings.

Effective May 2002, we have agreed to pay to Berth Milton a director fee of $215,000 per year plus out-of-pocket

- 48 -

expenses for serving as Chairman of the Board. In 1999 we adopted the 1999 Employee Stock Option Plan which authorizes stock options to be issued to directors. On April 3, 2003 Mr. Milton received 2,000,000 options exercisable $1.20 under the plan for serving as Director and Chairman of the Board. The Company has agreed to pay each of Daniel Sánchez and Johan Carlberg a fee of EUR 2,000 and EUR 1,000, respectively, for each Board and Committee meeting attended. In addition, Messrs. Sánchez and Carlberg have each been granted options to acquire 10,000 and 3,000 shares, respectively, of the Company’s Common Stock at an exercise price of $2.53 per share, which options vest in October 2005 and expire in October 2008.