Document:

Retention Agreement

 Exhibit 10.1 
 RETENTION AGREEMENT 
 This Retention Agreement (this
“Agreement”) is executed by MARK R. FARIS (“Employee”), who resides at the address listed at the end of this Agreement, and SRI/SURGICAL EXPRESS, INC. (the “Company”), a Florida
corporation with its principal executive office at 12425 Racetrack Road, Tampa, Florida 33626, to record their agreement regarding the continued payment by the Company to Employee of compensation and benefits on the occurrence of certain events.

 BACKGROUND 
 Employee is a valuable employee of the Company. To offer employee further assurance, the Company desires to offer Employee the arrangements to be paid severance compensation on his involuntary termination
of employment that are set forth in this Agreement. Employee is also agreeing to certain restrictive covenants in this Agreement in consideration of these severance arrangements and Employee’s continued employment with the Company. 

OPERATIVE TERMS 
 The parties agree as follows: 
 1. Definitions. As used in
this Agreement, the capitalized terms defined below have the respective meanings ascribed to them: 
 “Annual
Salary” means the annualized, base salary payable to Employee by the Company as of any particular date, and excludes all other cash and non-cash compensation paid or payable to Employee. 
 “Cause” means a termination of Employee’s employment that is the result of (a) Employee being charged with a
felony, (b) Employee’s disclosure of trade secrets or other confidential information related to the business of the Company or any affiliated companies, or (c) Employee’s action that constitutes misconduct, insubordination,
violation of Company policies, or compromised ethical behavior, or (d) Employee’s action that constitutes willful neglect or willful failure to perform a duty to the Company that continues after notice from the Company. 
 “Disability” means Employee’s incapacity due to physical or mental illness that causes him to be absent from the full
time performance of his duties with the Company for three (3) consecutive months or for four (4) months during any twelve (12) month period. Any question regarding the existence of Employee’s Disability on which Employee and the
Company cannot agree will be determined by a qualified independent physician selected by Company and approved by the Employee (or, if he is unable to select a physician, by any adult member of his immediate family), approval not to be unreasonably
withheld. The determination of the physician made in writing to the Company and to Employee will be final and conclusive for all purposes of this Agreement. 
 “Effective Date” means the date of this Agreement. 

 “Involuntary Termination” means the termination of Employee by the Company
for any reason other than for Cause, death, or Disability that constitutes an “involuntary separation from service” within the meaning of Treasury Regulations Section 1.409A-1(n)(1). To the extent necessary to comply with
Section 409A of the Code, references to “termination of employment,” “separation from service” or variations thereof in this Agreement shall mean the Employee’s “separation from service” from the Company
within the meaning of Section 409A(a)(2)(A)(i) of the Code and the default rules of Treasury Regulations Section 1.409A-1(h). 
 “Subsidiary” means a corporation of which 80% or more of its voting securities are owned directly or indirectly by the Company. 
 2. Term. This Agreement shall be in effect for a term beginning on the execution date of this Agreement and ending
automatically, without further obligation, when Employee ceases to be employed by the Company for any reason other than an Involuntary Termination. 
 3. Contingent Severance Payment on Involuntary Termination. In the event of an Involuntary Termination, the Company shall continue to pay Employee at the rate of his Annual Salary in
accordance with the Company’s standard payroll procedures for 270 calendar days after the date of the Involuntary Termination and furnish Employee health and dental insurance benefits. Employee’s right to the foregoing compensation will be
conditioned on (a) Employee’s continuing to be available to the Company in person or by telephone, as reasonably required by the Company, to assist with any post-termination transition for up to 30 days following the termination date, but
for no more than four hours during any week without added compensation, (b) Employee’s execution of a release in favor of the Company in a form satisfactory to the Company and its counsel, which generally and unconditionally releases from
all claims the Company and its directors, officers, and other affiliates, and (c) Employee’s continuing strict compliance with Section 5 of this Agreement. The Company will not have any obligation to Employee in connection with
his termination of employment in the absence of an Involuntary Termination or otherwise than as stated above. 
 For
clarification, the obligation of the Company to “furnish” health and dental benefits means that the Company shall, for the 270 day severance period, pay COBRA premiums in order for Employee to maintain health and dental insurance coverage
at the level in effect on the date of the Involuntary Termination. The Company’s obligation to furnish this benefit is conditioned on the Employee being eligible for and timely electing continuation of Employee’s health insurance benefits
pursuant to COBRA; and provided further that (x) the Company’s obligation to pay Employee’s COBRA premiums will cease immediately in the event Employee becomes eligible for group health insurance during such 270 day severance
period, and (y) Employee agrees to promptly notify the Company if Employee becomes eligible to be covered by group health insurance during such period. 
 If the Employee has not executed and delivered the release referenced in subsection (b) above with all periods for revocation thereof expired as of the date that is 60 days after the date of
Involuntary Termination (“Required Release Date”), the Employee shall forfeit the right to receive the foregoing severance compensation. Any severance compensation that is not deferred compensation within the meaning of
Section 409A shall commence upon the second payroll date following the first date on which the release is executed and delivered with all periods for

 
revocation thereof expired (the “Release Effective Date”), and continue for the remaining term of the 270 day severance period; provided that such first payment shall
include all such amounts that otherwise would have been paid prior to the Release Effective Date had the severance compensation commenced on the first payroll date following the date of Involuntary Termination. Subject to Section 9,
payments of severance compensation that constitute deferred compensation within the meaning of Section 409A shall commence on the second payroll date after the Required Release Date (regardless of when the Release Effective Date occurs); and
continue for the remaining term of the 270 day severance period; provided that such first payment shall include all such amounts that otherwise would have been paid prior to the Required Release Date had the severance compensation commenced
on the first payroll date following the date of Involuntary Termination. 
 4. Employment Status. This
Agreement does not constitute an employment agreement between the Company and Employee, but rather provides for the payment of severance compensation to Employee on the termination of his employment with the Company under the conditions described in
this Agreement. This Agreement does not guarantee the continued employment of Employee by the Company or the payment of any other amount of compensation. 
 5. Competition and Trade Secrets. Employee acknowledges that in the course of his employment by the Company he will obtain knowledge of confidential information regarding the
Company’s business and affairs and develop relationships with its employees, customers, and suppliers. Employee covenants and agrees that: 
 (a) Employee, directly or indirectly, in any capacity, either for himself, or on behalf of any corporation, partnership, joint venture, business trust, or other person or entity, shall not: 
 (i) during the term of this Agreement, for any additional period of time that Employee continues to be an employee of the
Company, and for a period of two years immediately after Employee’s employment with the Company ceases for any reason (whether or not voluntary)(the “prohibited period”), (A) engage in any business, or acquire an interest in any
business, or become affiliated as an agent, employee, partner, consultant, director, officer, stockholder, or proprietor of any business, that competes with the Company’s product offerings (and planned product offerings) at the time of
termination, in the United States or any other place in which the Company does business; (B) influence or attempt to influence any agent, customer, supplier, or distributor who has, or had during the 12 months preceding the date of employment
termination, a business relationship with the Company, to cease or adversely alter its business relationship with the Company; or (C) influence or attempt to influence any employee of the Company to terminate his employment with the Company for
any purpose or accept employment with another person; and 
 (ii) at any time while this Agreement remains in
effect and thereafter, divulge, disclose, or communicate, for any reason or in any manner, to any person or entity, any information (written or otherwise) concerning trade secrets or other

 
confidential information relating to the Company’s business or financial affairs, including the name of any customer or supplier or the business plans, methods, processes, and operating
procedures of the Company; provided, however, such obligation shall not apply to information in the public domain through no fault of Employee. 
 (b) Employee makes the preceding covenants in consideration for, and as a necessary condition of, Employee’s employment by the Company and the severance arrangements described in this Agreement. The
preceding covenants are independent of any obligation of the Company to Employee, including any obligations of the Company to Employee under this Agreement or arising from any aspect of the employment relationship, and are not subject to any
set-off, defense, deduction, or counterclaim based on any claim Employee might have against the Company. Employee stipulates that the duration and geographic scope of these restrictions are reasonable limitations necessary to protect the
Company’s business interests, that the restrictions do not unduly oppress Employee’s occupational future or opportunities, and that Employee has been adequately compensated for these restrictions. The “prohibited period” of the
obligation set forth in Section 5(a)(i) above will be extended by any period of time during which Employee is in breach of the obligation. 
 (c) Each provision of the preceding covenants should be construed and interpreted so that it is valid and enforceable under applicable law. However, if a court of competent jurisdiction determines that
the duration, geographical area, or proscribed activities of the restrictions under this Agreement would cause strict application of those restrictions to be invalid or unenforceable in a particular jurisdiction, the restrictions automatically will
be reformed to shorten their duration, diminish their geographical area, or confine their proscribed activities to the extent necessary (but only to that extent) to make the restrictions valid and enforceable. 
 6. Remedy at Law Insufficient. Employee acknowledges that damages at law will be an insufficient remedy if Employee violates
the terms of Section 5, and that the Company would suffer a decrease in value and irreparable damage as a result of such violation. Accordingly, on a violation of any of those covenants, the Company, without excluding or limiting any
other available remedy, shall be entitled to the following remedies: 
 (a) Upon posting a bond of up to $10,000
and filing with a court of competent jurisdiction an appropriate pleading and affidavit specifying each obligation breached by Employee, automatic entry by a court having jurisdiction of an order granting an injunction or specific performance
compelling Employee to comply with that obligation, without proof of monetary damage or an inadequate remedy at law; 
 (b) The recovery from Employee of all profit, remuneration, or other consideration that Employee gains from breaching the covenant and all damages that the Company suffers as a result of the breach; and 
 (c) Reimbursement of all costs and expenses incurred by the Company in enforcing those obligations or otherwise defending or
prosecuting any litigation arising

 
out of Employee’s obligations, including premiums for bonds, fees for experts and investigators, and legal fees, costs, and expenses incurred before a lawsuit is filed and in trial,
appellate, bankruptcy, and judgment-execution proceedings. 
 The foregoing remedies are cumulative to all other remedies afforded by law or in
equity, and the Company may exercise any such remedy concurrently, independently, or successively. 
 7. Legal
Matters. The validity, construction, enforcement, and interpretation of this Agreement are governed by the laws of the State of Florida and the United States of America, excluding the laws of those jurisdictions pertaining to the resolution
of conflicts with laws of other jurisdictions. Employee and the Company (a) consent to the personal jurisdiction of the state and federal courts having jurisdiction over Hillsborough County, Florida, (b) stipulate that the proper,
exclusive, and convenient venue for any legal proceeding arising out of this Agreement is Hillsborough County, Florida, and (c) waive any defense, whether asserted by a motion or pleading, that Hillsborough County, Florida, is an improper or
inconvenient venue. EMPLOYEE KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES THE RIGHT TO A JURY TRIAL IN ANY LAWSUIT BETWEEN EMPLOYEE AND THE COMPANY WITH RESPECT TO THIS AGREEMENT. 
 8. Notices. Every notice, demand, or consent required or permitted under this Agreement will be valid only if it is in writing
and delivered personally or by telex, telecopy, telegram, cablegram, commercial courier, or first-class, postage prepaid, United States mail (whether or not certified or registered and regardless of whether a return receipt is requested or received
by the sender), and addressed by the sender to the intended recipient at the address set forth in the preamble of this Agreement or to such other address as the intended recipient has previously designated to the sender by notice given in accordance
with this section. A validly given notice, demand, or consent will be effective on the earlier of its receipt, if delivered personally or by telex, telecopy, telegram, cablegram, or commercial courier, or the third day after it is postmarked by the
United States Postal Service, if delivered by first class, postage prepaid, United States mail. Each party shall notify the other of any change in its or his mailing address that is listed in this Agreement. 
 9. Miscellaneous. A waiver, amendment, cancellation, or modification of this Agreement will be valid and effective only if it
is in writing and signed by or on behalf of both parties to this Agreement. This Agreement records the final, complete, and exclusive understanding between the parties regarding the subject matter of it and supersedes any prior or contemporaneous
agreement, understanding, or representation, oral or written, by either of them. In particular, this Agreement cancels and supersedes any previous agreement between Employee and the Company that provides for severance compensation to Employee.
Nothing in this Agreement, whether express or implied, is intended or should be construed to confer upon, or to grant to, any person, except the Company, Employee and their respective heirs, assignees, and successors, any claim, right, remedy, or
privilege under, or because of, this Agreement or any provision of it. This Agreement is binding on every assignee and successor of the Company. The parties may execute this Agreement in counterparts. Each executed counterpart will constitute an
original document, and all executed counterparts, together, will constitute the same agreement. This Agreement will become effective, as of its stated date of execution, when each party has executed and delivered to the other party a counterpart of
it. 

 10. Section 409A. The parties intend for the severance benefits under
this Agreement to be exempt from the requirements of Section 409A under the exemptions set forth in Treasury Regulations Sections 1.409A-1(b)(4) (short-term deferral) or 1.409A-1(b)(9) (certain separation pay plans). The parties intend for
this Agreement to be interpreted, construed, administered and applied in a manner as shall meet and comply with any such exemptions from Section 409A. Notwithstanding any other provision of this Agreement, none of the Company, its subsidiaries
or affiliates or any individual acting as a director, officer, employee, agent or other representative of the Company or a subsidiary or affiliate shall be liable to Employee or any other person for any claim, loss, liability or expense arising out
of any interest, penalties or additional taxes due by Employee or any other person as a result of this Agreement or the administration thereof not satisfying any of the requirements of Section 409A. If Employee is a “specified
employee” (as determined by the Company under Section 409A) on the date of Employee’s separation from service, if and to the extent that the severance benefits under this Agreement constitute deferred compensation within the meaning
of Section 409A, each such severance payment shall be paid on the later of (a) the date scheduled to be paid under Section 3, or (b) the first business day after the date that is six (6) months after the date of
Employee’s separation from service. Each installment under this Agreement shall be regarded as a separate “payment” for purposes of Section 409A. 
 (signature page follows) 

 EXECUTED: As of December 23, 2009, in Tampa, Florida 
  

			
	“COMPANY”
	
	 SRI/SURGICAL EXPRESS, INC.,
 a Florida corporation

		
	By:	 	 /s/ Gerald Woodard

		 	Gerald Woodard
		 	Chief Executive Officer
	
	“EMPLOYEE”
	
	 /s/ Mark R. Faris

	MARK R. FARIS

			
		
	Address:Employment Agreement

 EXHIBIT 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT
AGREEMENT (“Agreement”) is made as of this 29th day of October, 2009, by and between ENTRUPHEMA INC., a corporation organized pursuant to the laws of the Province of Ontario (the “Company”), and Eric Johnson
(“Employee”). 
 Recitals 
 A. Concurrently with the execution and delivery of this Agreement, pursuant to an Acquisition Agreement dated as of October 9, 2009
(the “Acquisition Agreement”), by and among Private Media Group, Inc. (“Private”), 2220445 Ontario Inc. (“Sub”), the Company and the holders of all of the Company’s capital stock, including
Employee (the “Sellers”), Private will become the indirect owner of the Company. 
 B. Pursuant to the
Acquisition Agreement, Sub will purchase all of the outstanding shares of the Company from Sellers and, immediately following such purchase, Sub and the Company will amalgamate (with the amalgamated company being referred to herein as
“Amalco”). References to the Company herein include any successor thereto, including Amalco. 
 C. The parties
desire to continue Employee’s employment with Amalco following the Amalgamation upon the terms and conditions set forth in this Agreement. 
 D. The execution and delivery of this Agreement is a condition to the consummation of the transactions contemplated by the Acquisition Agreement. 
 E. All capitalized terms which are not defined herein shall have the respective meanings ascribed to such terms in the Acquisition
Agreement. 
 NOW, THEREFORE, in consideration of the foregoing, and the mutual covenants contained herein, the parties hereto,
intending to be legally bound, agree as follows: 
 Part 1 Employment and Duties. 
 1.1 Employment; Duties. During the “Term” (as such quoted term is defined in Part 3 of this Agreement), the
Company shall continue Employee’s employment, and Employee hereby accepts such continued employment, as the Chief Executive Officer and President of the Company, and shall report to the Chief Executive Officer of the consolidated Internet and
Internet-related business conducted by Private and its subsidiaries (the “Private Group”) (the Internet and Internet-related business conducted by the Private Group from time to time, including the business of the Company, is
referred to as the “Online Media Business”). Employee shall have such titles, responsibilities and duties, consistent with his position and expertise, as may from time to time be prescribed by the Company. 
 1.2 Full Time. Employee shall devote all of his business time, energy, and skill to the business and affairs of the
Private Group’s Online Media Business. Employee acknowledges and agrees that he shall observe and comply with all of the reasonable policies as prescribed from

 
time to time by the Company and the Private Group. Nothing in this Part 1, however, shall prohibit Employee from (i) serving as a director, trustee, officer of, or partner or investor
in, any other firm, trust, corporation or partnership; provided that such activities are not inconsistent with Employee’s duties under this Agreement; or (ii) engaging in additional activities in connection with personal investments
and community affairs that are not inconsistent with Employee’s duties under this Agreement. 
 1.3 Other
Conditions. As a condition to Employee’s employment with the Company following Closing, Employee will be required to sign and comply with the form of Assignment of Intellectual Property Agreement attached hereto as Exhibit A.
Further, this Agreement is contingent upon Employee being legally employable in Canada. 
 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. 
 2.5 Withholding. The Company may withhold from compensation payable to Employee all applicable federal and provincial withholding taxes. 
 Part 3 Term and Renewal. 
 3.1 Term. The term of
employment under this Agreement shall be a period commencing on the Closing (as defined in the Acquisition Agreement) and ending on the third anniversary of the Closing (the “Expiration Date”), unless terminated earlier in
accordance with Part 4 hereof (the “Term”). This Agreement shall terminate automatically on the Expiration Date without any pay in lieu of notice, severance pay, termination pay or any severance obligation whatsoever, other than as
may be owed to Employee for notice and severance pay (if applicable) under the Employment Standards Act, 2000 (Ontario). 
  

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 3.2 Renewal. Upon the conclusion of the Term, the Company and Employee
may negotiate a renewal term or the continuation of the Employee’s employment with the Company on such terms and conditions as the parties may then agree. 
 Part 4 Termination. 
 4.1 Definitions. As used herein,
the following terms shall have the following meanings: 
 4.1.1 “Notice of Termination” means a
written notice specifying the termination provision in this Agreement relied upon and the effective date of such termination. 
 4.1.2 “Date of Termination” means (i) where termination is due to the death of the Employee, the date of death, or (ii) the date specified in the Notice of Termination. 
 4.1.3 “Cause” means that Employee has (i) breached any fiduciary duty or material legal or contractual
obligation to the Company (including any Affiliate) which breach is not cured within thirty (30) days after notice to Employee thereof or, if cured, such conduct recurs (it being agreed that such cure right for any particular conduct shall only
be available once during the Term), (ii) failed to perform satisfactorily Employee’s material job duties or to follow any reasonable directive of the Chief Executive Officer of Private or the Board of Directors of Private, which failure is
not cured within thirty (30) days after notice to Employee thereof or, if cured, such conduct recurs (it being agreed that such cure right for any particular conduct shall only be available once during the Term), (iii) engaged in gross
negligence, gross insubordination, willful misconduct, fraud, embezzlement, acts of material dishonesty or a conflict of interest, in any such case relating to the affairs of the Company or any of its Affiliates, or (iv) been convicted of or
pleaded no contest to any criminal offence either (A) relating to the affairs of the Company or any of its Affiliates or (B) which could cause harm or damage to the Company’s or its Affiliates’ public image, reputation or
relations with the authorities, unless in either case (1) the offence involved actions or omissions of Employee in the ordinary course of the Private Group’s business, and (2) Employee was acting in good faith and what he reasonably
believed to be the best interests of the Private Group. 
 4.1.4 “Good Reason” means Employee’s
voluntary termination within thirty (30) days following the occurrence of one or more of the following: (i) a material diminution Employee’s authority, duties, reporting structure or responsibilities that is not remedied by the
Company within thirty (30) days after receipt of notice thereof given by Employee, or (ii) a material breach of this Agreement by the Company, which breach is not cured within thirty (30) days after notice thereof given by Employee,
or (iii) a change by the Company in the geographical location at which Employee must provide the services described in this Agreement by more than twenty-five (25) miles from his current location in Toronto, Ontario, Canada, excluding
reasonable travel. 
 4.1.5 “Disability” means illness (mental or physical) or accident, which results
in Employee being unable to perform Employee’s duties as an employee of the Company on a full time basis, for a period of ninety (90) consecutive days, or one hundred twenty (120) days, whether or not consecutive, in any twelve
month period. In the event of a dispute as to whether Employee is Disabled, the Company may refer the same to a mutually acceptable licensed practicing physician, whose written report shall be final and binding upon the parties, and Employee agrees
to submit to such tests and examination as such physician shall deem appropriate. If Employee fails or refuses for any reason to promptly submit to any examination requested by such physician, then Employee shall be considered to be Disabled.

  

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 4.2 General. Employee’s employment with the Company may be
terminated at any time by the Company for Cause, effective immediately upon receipt by Employee of written Notice of Termination. Employee’s employment shall automatically terminate upon his death. Employee’s employment with the Company
may be terminated at any time by the Company for Disability or for any reason other than for Cause, effective immediately upon receipt by Employee of written Notice of Termination or upon such other date specified in such Notice of Termination.
Employee may resign for Good Reason after at least thirty (30) days prior written Notice of Termination thereof from Employee to the Company which Notice of Termination may be contemporaneous with the notice required by Section 4.1.4
hereof (subject to the Company’s remediation right in Section 4.1.4). 
 4.3 Effects of Termination.
 
 4.3.1 Termination For Disability, Other Than For Cause or For Good Reason. If the Company
terminates the Employee’s employment during the Term for Disability or for any reason other than for Cause, or if Employee terminates his employment with the Company during the Term, for Good Reason, the Company shall: (i) pay to
Employee any and all Base Salary, accrued vacation and expense reimbursement that had accrued but had not been paid prior to the Date of Termination, which amounts shall be paid promptly after the Date of Termination, (ii) pay to Employee
an amount equal to Employee’s monthly Base Salary multiplied by the remaining number of whole months left in the Term (or such greater amount (if any) as may be otherwise owed to Employee for notice and severance pay (if applicable) under the
Employment Standards Act, 2000 (Ontario)), which amount shall be paid in equal monthly installments consistent with how the Company historically pays Employee’s Base Salary, and (iii) continue Employee’s benefits for at least
the period of notice required by the Employment Standards Act, 2000 (Ontario), and, to the extent permitted by the Company’s benefit provider, for the duration of the Term. Except as set forth in this Section 4.3.1, the Company
shall have no further obligation to make any payments or provide any benefits to Employee hereunder after the Date of Termination. All pay in lieu of notice of termination and severance payments described herein are inclusive of all amounts which
would be owed to Employee for notice and severance pay (if applicable) under the Employment Standards Act, 2000 (Ontario). The compensation and benefits described above are in full and final payment of all the legal and contractual
obligations of the Company towards the Employee with respect to his employment or the termination thereof. Subject to the Company complying with its obligations, as described above in this Section 4.3.1, Employee, on behalf of himself and of
his descendants, dependants, executors, administrators and successors, hereby forever releases and fully discharges the Company, its parent, predecessors, successors, subsidiaries, affiliates, groups or divisions and related entities, as well as
each of their fiduciaries, principals, administrators, officers, partners, directors, insurers, employees, current or former agents, and other representatives from any and all claims, actions, causes of action, charges, complaints, obligations,
rights, demands, debts, damages, costs and legal fees, losses, liabilities or accounting of whatever nature, or any other liability without limitation, known or unknown, for the past, present and future, arising out of, concerning or relating
directly or indirectly to the Employee’s employment relationship with the Company or the termination thereof other than the covenants, rights, entitlements, agreements and obligations arising under the Acquisition Agreement and all exhibits and
schedules thereto including, without limitation, Employee’s right to the Amalgamation Consideration Shares. Without limiting the generality of the foregoing, Employee recognizes that other than the amounts and benefits described above in this
Section 4.3.1, there are no other amounts or benefits of any nature whatsoever that are or will

  

 4 

 
be owed to him, including, without limitation, for damages, salary, wages, commissions, bonus payments, leave, overtime pay, pension plan contributions, insurance, stock options, shares,
allowance, notice, payment in lieu of notice of termination and any vacation pay related thereto or any other amounts, benefits, compensation, payments, equity participation or interests in the Company related to his employment or the termination
thereof to which he may claim to be entitled pursuant to any agreement whatsoever or to the laws of the Province of Ontario and Canada, including without limitation, the Employment Standards Act, 2000 (Ontario), the
Workplace Safety and Insurance Act, 1997, the Human Rights Code and at common law. Notwithstanding the foregoing, nothing in this Section 4.3.1 releases any claims, rights or entitlements Employee had,
has or may in the future have as a shareholder of Private or any of its Affiliates. 
 4.3.2 Termination for
Cause. If Employee’s employment is terminated by the Company for Cause or by the Employee without Good Reason, the Company shall have no further obligation to make any payments or provide any benefits to Employee hereunder after the
Date of Termination except for payments of Base Salary and expense reimbursement that had accrued but had not been paid prior to the Date of Termination, provided that any amounts owed by Employee to the Company shall be offset against any such
expense reimbursement. 
 4.3.3 Termination of Severance Payments. If, following the cessation of
Employee’s employment, the Employee breaches his obligations under either Section 5.1 hereof or Section 9.3 of the Acquisition Agreement (as determined by the Ontario Superior Court of Justice whether in a hearing for injunctive
relief or otherwise), in addition to any other rights and remedies available to the Company, the Company shall have the right to immediately cease paying to Employee all amounts otherwise payable to Employee under Section 4.3.1(ii) above and no
further amounts shall be payable to Employee under such Section, other than amounts which may be owed to Employee for notice and severance pay (if applicable) under the Employment Standards Act, 2000 (Ontario). Employee and Company agree that
any amounts not paid as a result of a determination by the Ontario Superior Court of Justice that Employee has breached his obligations under Sections 5.1 of this Agreement or Section 9.3 of the Acquisition Agreement will be setoff against any
damages owing or otherwise recoverable as a result of said breach. 
 4.4 Procedure upon Termination. On
termination of employment regardless of the reason, Employee (or his heirs, representatives or estate as the case may be) shall promptly return to the Company all documents (including copies) and other property containing or disclosing Confidential
Information, including customer lists, manuals, letters, materials, reports and records in Employee’s possession or control no matter from whom or in what manner acquired. 
 4.5 Effect of Termination on Board Membership and as an Officer. Except as otherwise agreed in writing by the Company
and Employee, upon termination of Employee’s employment with the Company for any reason, Employee will automatically and without further action immediately be deemed to have resigned from the board of directors and as an officer of the Company
and any member of the Private Group, as applicable, effective as of the Date of Termination. Employee shall also take all actions and sign any necessary documents to effect such resignations and remove his name as an authorized signatory on behalf
of the Company and any member of the Private Group. 
  

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 Part 5 Confidential Information. 
 5.1 During the Term of this Agreement and thereafter, Employee will not, directly or indirectly, use, or disclose to any Person, any
Confidential Information (as defined herein) of the Private Group, except (A) in the performance of his duties on behalf of the Private Group, or (B) to the extent necessary to comply with law or the valid order of a court of competent
jurisdiction, in which event Employee shall notify the Company as promptly as practicable (and, if possible, prior to the making of such disclosure). “Confidential Information” means any information, data, trade secrets and
confidential or proprietary information relating to the business, operations, assets and liabilities of the Private Group, including without limitation all customers and/or suppliers’ identities, characteristics and agreements, financial
information and projections, employee files, business and marketing plans, sales activities, pricing methodologies, credit and financial data and financial methods; provided, however, that the foregoing shall not apply to information
which is generally known to the industry or the public other than as a result of Employee’s breach of this covenant. Employee agrees that upon termination of his employment with the Company for any reason, he will return to the Company
immediately all memoranda, books, papers, plans, information, letters and other data, and all copies thereof or therefrom, in any way relating to the business of the Private Group. Employee further agrees that he will not retain or use for his
account at any time any trade names, trademark or other proprietary business designation used or owned in connection with the business of any member of the Private Group. 
 5.2 For the avoidance of doubt, Employee acknowledges that if he engages (directly or indirectly) in any conduct which violates this Part 5, such conduct shall constitute a breach of this Agreement
regardless of whether such conduct constitutes a violation of the Acquisition Agreement. 
 Part 6 Appointment as
Director. 
 6.1 The Company agrees that it is a condition of Employee’s employment that Private will appoint
Employee to Private’s Board of Directors on or before December 31, 2009 and nominate Employee to continue to serve as a director on Private’s Board of Directors at each annual meeting of shareholders of Private in 2010 and 2011, until
not earlier than the end of the Earnout Periods; provided that Employee remains employed with Private or its Affiliates at the time of appointment and each such annual meeting of shareholders. By its signature below Private agrees to appoint
Employee to its Board of Directors on or before December 31, 2009 and to nominate Employee to continue to serve as a director of Private in 2010 and 2011 until not earlier than the end of the Earnout Periods; provided that Employee
remains employed with Private or its Affiliates at the time of appointment and each such annual meeting of shareholders. For the avoidance of doubt, the Company’s or Private’s breach of this Section 6.1 shall constitute a material
breach of this Agreement by the Company for purposes of Section 4.1.4(ii) hereof. 
 Part 7 Miscellaneous. 

 7.1 Notices. All written notices, demands and requests of any kind which either Party may be required or
may desire to serve upon the other Party hereto in connection with this Agreement shall be delivered only by courier or other means of personal service which provides written verification of receipt or by registered or certified mail return receipt
requested, or by facsimile; provided that the facsimile is promptly followed by delivery of a hard copy of such notice which provides written verification or receipt (each, a “Notice”). Any such Notice delivered by registered or
certified mail shall be deposited in the United States or Canada mail

  

 6 

 
with postage thereon fully prepaid, or if by courier then deposited prepaid with the courier. All Notices shall be addressed to the Parties to be served as follows: 
 If to the Company: 
 c/o Private Media Group, Inc. 
 Calle de la Marina 14-16

 Floor 18, Suite D 
 08005 Barcelona, Spain 
 Attention: Chief Financial Officer 
 If to Employee: 
 Eric Johnson 
 c/o Entruphema Inc. 
 229 Yonge Street, Suite 408 
 Toronto Ontario Canada M5B 1N9 
 7.2 Entire Agreement. This Agreement (including the documents referred to herein) and the Acquisition Agreement constitute the entire agreement between the parties and at the
Effective Time will supersede any prior understandings, agreements, or representations by or between the Parties, written or oral, to the extent they related in any way to the subject matter hereof (including, without limitation, any severance,
notice, and/or equity award agreements between Employee and the Company), excluding any acknowledgments or covenants that Employee entered into relating to the assignment of inventions to the Company or the use or disclosure of the Company’s
confidential or trade secret information. 
 7.3 Assignment, Successors. This Agreement is personal in its
nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any rights or obligations hereunder; provided that the Company may assign its rights under this Agreement either to an Affiliate
or in connection with a merger, amalgamation, consolidation, transfer, or sale of all or substantially all of the assets of the Company with or to any other individual or entity, in which event this Agreement shall, subject to the provisions hereof,
be binding upon and inure to the benefit of such successor and such successor shall discharge and perform all the promises, covenants, duties, and obligations of the Company hereunder. 
 7.4 Governing Law and Venue. This Agreement will be governed solely by laws and regulations of the province of Ontario
and the federal laws and regulations of Canada applicable therein. 
 7.5 Waiver; Modification. Failure to
insist upon strict compliance with any of the terms, covenants, or conditions hereof shall not be deemed a waiver of such term, covenant, or condition, nor shall any waiver or relinquishment of, or failure to insist upon strict compliance with, any
right or power hereunder at any one or more times be deemed a waiver or relinquishment of such right or power at any other time or times. This Agreement shall not be modified in any respect except by a writing executed by each party hereto.

 7.6 Headings. Section headings in this Agreement are included herein for convenience of reference only
and shall not constitute a part of this Agreement for any other purpose. 
  

 7 

 7.7 Specific Performance. Employee acknowledges and agrees that the
Company’s remedies at law for a breach or threatened breach of any of the provisions of Part 5 hereof would be inadequate and, in recognition of this fact, Employee agrees that, in the event of such a breach or threatened breach, in addition to
any remedies at law, the Company shall be entitled to obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available without the
need to post any security or bond. 
 7.8 Contingent Offer. Notwithstanding any provision of this Agreement
to the contrary, the terms of this Agreement, including Employee’s acceptance, are contingent upon the occurrence of the Closing and become effective at the Effective Time. In the event that the Acquisition Agreement is terminated or if for any
other reason the Closing does not occur, this Agreement shall be null and void and shall have no further effect and all prior agreements between Employee and the Company relating to Employee’s employment shall remain in full force and effect.

 7.9 Counterparts; Facsimile Signatures. This Agreement may be executed in two or more counterparts, each
of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. A facsimile copy shall have the same legal effect as the original. 
 [Signature Page Follows] 
  

 8 

 IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the date above written.

  

			
	 COMPANY:
  
 ENTRUPHEMA INC.

		
	By:	 	/s/
	Name:	 	
	Title:	 	

  

	
	EMPLOYEE:
	
	/s/ Eric Johnson
	Eric Johnson

  

 9 

 Joinder of Private Media Group, Inc. 
 Private Media Group, Inc., by its signature below, agrees to be bound by the terms and conditions of Part 6 of the within Employment
Agreement dated October 29, 2009, by and between the Company and Eric Johnson. 
  

			
	PRIVATE MEDIA GROUP, INC.
		
	By:	 	/s/ Johan Gillborg
	Name:	 	Johan Gillborg
	Title:	 	Chief Financial Officer

  

 10 

 Exhibit A 
 Form of Assignment of Intellectual Property Agreement 
  

 11

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