SEPARATION AND CONSULTING AGREEMENT
This Agreement is entered into as of February 13, 2003, by and between Mark Kreloff, an individual ("Kreloff"),
and New Frontier Media, Inc. ("NFM"), a Colorado corporation.
A. On or about December 22, 1998, NFM and Kreloff entered into a written Employment Agreement.
Subsequently, NFM and Kreloff agreed to a written Amendment to Employment Agreement, dated December
22, 2000, and later to an undated Amendment to Executive's Employment Agreement.
B. In addition, Kreloff has been elected to the Board of Directors of NFM and is currently a member of that
C. In view of the expiration of the Employment Agreement and in view of Kreloff's desire to engage in other
activities, it is now the mutual desire of the parties that Kreloff shall resign from his position as an officer of NFM
and any subsidiary corporation of NFM, that Kreloff shall resign from his position as member of the Board of
Directors of any subsidiary corporation of NFM, and that Kreloff shall continue to provide services to NFM in
the capacity of an outside consultant.
NOW, THEREFORE, the parties agree as follows:
1. Separation. Kreloff hereby resigns from his position as officer of NFM and any subsidiary corporation of
NFM. Kreloff hereby resigns from his position as Chairman of the Board of Directors of NFM, although he does
not resign from the Board of Directors of NFM. Kreloff hereby resigns from his position as member of the Board
of Directors of any subsidiary corporation of NFM. Subject to the foregoing, Kreloff shall remain employed by
NFM (in a non-officer position) until 5:00 p.m. on March 31, 2003.
1.1 During the remainder of his employment with NFM, Kreloff shall perform such services as are requested by
NFM (acting through its president, chief executive officer or board of directors). Kreloff shall use reasonable and
good faith efforts in providing such services and shall not engage in any conduct which NFM believes to be