NEW FRONTIER MEDIA, INC.
DIRECTOR COMPENSATION ARRANGEMENTS
Each director who is not a New Frontier Media, Inc. employee receives for general board services, including
attendance at regular and special board meetings, an annual fee of $80,000, payable in equal quarterly
installments. Each such director receives an additional annual fee of $7,500 for each board committee on which
the director serves, and the chairman of each committee receives an additional annual fee of $2,500 for such
service. Each director is also reimbursed for reasonable expenses incurred in connection with the services
provided as a member of the board and its committees.
Subject to our corporate trading policies and general securities laws, each non-employee director is obligated to
purchase, in the open market or otherwise during each one-year period beginning immediately after an annual
meeting of shareholders, shares of our common stock equaling in value at least 20% of the amount of the annual
board service fee. Directors are not permitted to sell or otherwise transfer shares of our common stock while
serving as a director if the result would be to reduce the beneficial ownership to below 20,000 shares, and
directors are not permitted to sell any shares unless they were acquired two years prior to any such sale.