Private Media Group (PRVT)

Part 2 Compensation.

2.1 Base Salary. In consideration of the services rendered to the Company (and/or its Affiliates) by Employee, during the Term Employee shall receive an annual salary of CAD $235,000 (“Base Salary”), payable semi-monthly in accordance with the Company’s standard payroll practices.

2.2 Benefits. During the Term, Employee shall be entitled to participate in employee benefit plans (such as health, dental, vision, pension, retirement and similar plans) and receive fringe benefits that are substantially similar to those provided to similarly situated employees of Private, as are generally now or hereafter available to such employees in accordance with their then existing terms and conditions. Additionally, Employee shall have the option of allocating up to CAD $10,000 of Employee’s Base Salary per annum to the Company’s medical reimbursement plan.

2.3 Vacation. Employee shall be entitled to a total of twenty (20) vacation days or paid time off per year, exclusive of holidays observed by the Company, in accordance with the vacation policies of the Company in effect from time to time, which shall be scheduled in a reasonable manner by Employee. Vacation days which are not used during any calendar year may be accrued or paid in accordance with Company policy in effect from time to time.

2.4 Expenses. During the Term, Employee will be entitled to reimbursement of all reasonable expenses incurred in the ordinary course of business on behalf of the Company, including its Affiliates, subject to the presentation of appropriate documentation and approved in accordance with the then existing terms and conditions of the Company’s policies in effect from time to time.