PRIVATE MEDIA GROUP, INC.
1999 EMPLOYEE STOCK OPTION PLAN
This Employee Stock Option Plan (the "Plan") is intended to allow designated employees, executive officers,
directors, consultants, advisors and other corporate and divisional officers (all of whom are sometimes
collectively referred to herein as "Employees") of Private Media Group, Inc., a Nevada corporation ("Private"),
and its subsidiaries which it may have from time to time (Private and such subsidiaries being together referred to
herein as the "Company") to receive certain options ("Stock Options") to purchase Private's common stock,
$.001 par value ("Common Stock"), as herein provided. The purpose of the Plan is to provide Employees with
additional incentives to make significant and extraordinary contributions to the long-term performance and growth
of the Company and to attract and retain Employees of exceptional ability.
(a) The Plan shall be administered by a Committee of three or more persons ("Committee") established by the
Board of Directors of Private (the "Board") from time to time, which may consist of the Compensation
Committee, the full Board of Directors or such persons as the Board shall designate. A majority of its members
shall constitute a quorum. The Committee shall be governed by the provisions of Private's By-Laws and of
Nevada law applicable to the Board, except as otherwise provided herein or determined by the Board.
(b) The Committee shall have full and complete authority, in its discretion, but subject to the express provisions of
the Plan: to approve the Employees nominated by the management of the Company to be granted Stock Options;
to determine the number of Stock Options to be granted to an Employee; to determine the time or times at which
Stock Options shall be granted; to establish the terms and conditions upon which Stock Options may be
exercised; to remove or adjust any restrictions and conditions upon Stock Options; to specify, at the time of