Private Media Group (PRVT)

Section 6.3 Retraction Price

Corporation shall deliver or cause to be delivered, the Exchangeable Share Consideration representing the total Retraction Price for the Retracted Shares to the relevant holder, at the Holder Address or at the address specified in the holder’s Retraction Request or by holding for pick-up by the holder Designated Place, and such delivery of such Exchangeable Share Consideration to the holder shall be deemed to be payment of and shall satisfy and discharge all liability for the total Retraction Price.

On and after the Retraction Date, the holders of the Retracted Shares shall cease to be holders of such Retracted Shares and shall not be entitled to exercise any of the rights of a

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holder in respect thereof, other than the right to receive their proportionate share of the Exchangeable Share Consideration representing the total Retraction Price, unless payment of the Exchangeable Share Consideration representing the total Retraction Price shall not have been made upon presentation and surrender of the certificate or certificates in accordance with the foregoing provisions, in which case the rights of such holder shall remain unaffected until the Exchangeable Share Consideration representing the total Retraction Price has been paid in the manner hereinbefore provided.

Corporation shall have the right, at any time after the Retraction Date, to deposit or cause to be deposited the Exchangeable Share Consideration representing the total Retraction Price in respect of the Retracted Shares represented by the certificate or certificates that have not at the Retraction Date been surrendered by the holders thereof in a custodial account or for safekeeping, in the case of non-cash items, with any chartered bank or trust company in Canada. Upon such deposit being made, the rights of the holders of Retracted Shares shall be limited to receiving their proportionate share of the Exchangeable Share Consideration representing the total Retraction Price so deposited for such Retracted Shares, against presentation and surrender of the certificate or certificates held by them, respectively, in accordance with the foregoing provisions. Upon such payment or deposit of such Exchangeable Share Consideration and the entry of the names of the holders of the Exchangeable Shares in the stock records of PMG in respect of the PMG Common Stock, the holders of the Exchangeable Shares shall thereafter be considered and deemed for all purposes to be the holders of the PMG Common Stock delivered to them or the custodian on their behalf.