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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">FORM 8-K</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">CURRENT
REPORT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported):
May 16, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>KIT DIGITAL, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact Name of Registrant as Specified in
Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%; text-align: justify; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 26%; text-decoration: none; text-align: center; border-bottom: Black 1pt solid">Delaware</TD>
    <TD STYLE="width: 4%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 30%; text-decoration: none; text-align: center; border-bottom: Black 1pt solid">001-34437</TD>
    <TD STYLE="width: 4%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 20%; text-decoration: none; text-align: center; border-bottom: Black 1pt solid">11-3447894</TD>
    <TD STYLE="width: 8%; text-align: justify; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">(State or other jurisdiction</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">(IRS Employer</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">of incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Identification No.)&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
</TABLE>
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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 34%; text-align: center">26 West 17<SUP>th</SUP> Street - 2<SUP>nd</SUP> Floor</TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-decoration: none; text-align: center; width: 22%">10011</TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-decoration: none; text-align: center">New York, New York</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">(Zip Code)</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">(Address of principal executive offices)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Registrant's telephone number, including
area code: <U>+1 (646) 553-4845</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in"><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-size: 10pt">
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in"><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-size: 10pt">
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-size: 10pt">
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-size: 10pt">
Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR &#9;240.13e-4(c))<B><U></U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: center; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0"><B>CURRENT REPORT
ON FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: center; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0"><B>KIT digital,
Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: center; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>May 21, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 1.01</B></TD><TD STYLE="text-align: justify"><B>Entry into a Material Definitive Agreement.</B></TD>
</TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Barak Bar-Cohen Employment Agreement</I></B>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 1, 2012, Mr.
Barak Bar-Cohen, the Company&rsquo;s then Chief Administrative Officer, assumed the role of interim Chief Executive Officer. Mr.
Bar-Cohen&rsquo;s employment agreement, entered into on July 1, 2011 (the &ldquo;<U>Bar-Cohen Employment Agreement</U>&rdquo;),
provided for Mr. Bar-Cohen to serve as the Company&rsquo;s Chief Administrative Officer for an initial term of two years, beginning
on July 1, 2011, automatically renewing for subsequent two year periods unless either party provides written notice at least 120
days prior to the expiration of the two year period or the Bar-Cohen Employment Agreement otherwise terminates in accordance with
its terms. Under the Bar-Cohen Employment Agreement, Mr. Bar-Cohen was eligible to receive an annual base salary of $240,000 and
an annual performance-based cash bonus of 70% of base salary. In addition, he received a grant of 34,000 stock options and 80,000
performance contingent restricted stock units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bar-Cohen Employment
Agreement provides for his participation in the Company&rsquo;s fringe benefit programs, including the Company&rsquo;s health,
dental, vision life, accident, short and long term disability insurance programs. The Bar-Cohen Employment Agreement also called
for the Company to make payments to Mr. Bar-Cohen to facilitate his relocation to the Company&rsquo;s headquarters in Prague, Czech
Republic, by reimbursing moving and travel expenses for Mr. Bar-Cohen and his family and the reimbursement of costs associated
with the renting of his U.S. residence, subject to certain limits set forth in the Bar-Cohen Employment Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If Mr. Bar-Cohen&rsquo;s
employment under the Bar-Cohen Employment Agreement is terminated &ldquo;without cause&rdquo; by the Company or &ldquo;for cause&rdquo;
by Mr. Bar-Cohen, he will be eligible to receive severance equal to six months base salary and any performance-based cash bonus
then outstanding. If his employment terminates as a result of his disability, he will be eligible to receive a continuation of
base salary for the lesser of three months or until the date on which his disability insurance benefits commence, and any performance-based
cash bonus then outstanding. If his employment terminates as a result of his death, he will be eligible to receive a continuation
of his base salary through the third month from which his death occurs, reimbursement of expenses and payment for accrued but unused
vacation time and any performance-based cash bonus then outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A termination &ldquo;for
cause&rdquo; by the Company means the occurrence of any of the following: (a) Mr. Bar-Cohen's material breach of the Bar-Cohen
Employment Agreement, material non-performance of any assigned duties, material breach of the non-competition provisions and Mr.
Bar-Cohen's failure to cure such material breach within 30 days following receipt of notice of the same from the Company; (b) the
appropriation (or attempted appropriation) of a material business opportunity of the Company, including attempting to secure or
securing any profit, for himself or others, in connection with any transaction entered into on behalf of the Company; (c) the misappropriation
(or attempted misappropriation) of any of the Company's funds or property; or (d) the conviction of, the indictment for (or its
procedural equivalent), or the entering of a guilty plea or plea of no contest with respect to, a felony, the equivalent thereof,
or any other crime based upon moral turpitude with respect to which imprisonment is a possible punishment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A termination &ldquo;for
cause&rdquo; by Mr. Bar-Cohen means the occurrence of any of the following: (a) the assignment to Mr. Bar-Cohen of duties materially
inconsistent with Mr. Bar-Cohen's position, or any significant diminution in Mr. Bar-Cohen's duties, responsibilities or compensation,
other than in connection with the termination of the Mr. Bar-Cohen's employment for cause, disability or as a result of Mr. Bar-Cohen's
death or by Mr. Bar-Cohen other than for cause; (b) the change in the location of Mr. Bar-Cohen's office from primarily New York
City and secondarily Prague without Mr. Bar-Cohen's consent; (c) any material breach of the Bar-Cohen Employment Agreement by the
Company which is continuing; (d) a &ldquo;Change in Control&rdquo;, provided that a &ldquo;Change in Control&rdquo; shall only
constitute cause if Mr. Bar-Cohen terminates his employment within six (6) months following the &ldquo;Change in Control&rdquo;;
provided, however, Mr. Bar-Cohen shall not be deemed to have cause pursuant to clauses (a) or (c) above unless Mr. Bar-Cohen gives
the Company written notice of the specified conduct or event which has occurred and the Company fails to cure such conduct or event
within thirty (30) days of receipt of such notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A &quot;Change in Control&quot;
shall be deemed to have occurred when, after July 1, 2011, any new person or entity becomes the beneficial owner, directly or indirectly,
of 50% or more of the voting power of the Company&rsquo;s then outstanding securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Bar-Cohen
Employment Agreement, Mr. Bar-Cohen agreed to be bound by a confidentiality agreement that applies during and after termination
of his employment with the Company, acknowledged that all &ldquo;Employee Inventions&rdquo; belong exclusively to the Company,
and agreed to be bound by a non-competition and non-interference agreement that applies during and one year after termination of
his employment with the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An &quot;Employee Invention&quot;
means any idea, invention, technique, modification, process, or improvement (whether patentable or not), any industrial design
(whether registrable or not), any mask work, however fixed or encoded, that is suitable to be fixed, embedded or programmed in
a product (whether recordable or not), and any work of authorship (whether or not copyright protection may be obtained for it)
created, conceived, or developed by Mr. Bar-Cohen, either solely or in conjunction with others, during his employment period, or
a period that includes a portion of his employment period, that relates in any way to, or is useful in any manner in, the business
then being conducted or proposed publicly to be conducted by the Company, and any such item created by Mr. Bar-Cohen, either solely
or in conjunction with others, following termination of Mr. Bar-Cohen 's employment with the Company, that is based upon or uses
confidential information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Barak Bar-Cohen - Amendment to the
Employment Agreement</I></B><I>:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 15, 2012, the
Company and Mr. Bar-Cohen entered into an amendment (the &ldquo;<U>Bar-Cohen Amendment</U>&rdquo;) to the Bar-Cohen Employment
Agreement reflecting his appointment as interim Chief Executive Officer on April 1, 2012. Thus, the Bar-Cohen Amendment is intended
to apply during the period in which Mr. Bar-Cohen will be acting interim Chief Executive Officer, effective as of April 1, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Bar-Cohen
Amendment, Mr. Bar-Cohen&rsquo;s annual base salary is increased to $500,000 and he is eligible to receive a bonus of $250,000
within three business days after the closing of a financing arrangement in which the Company raises at least $25,000,000 in capital
through the issuance of equity or debt obligations. The Company raised such amount in an offering which closed on May 17, 2012.
In addition, the annual performance-based cash bonus opportunity was increased to 100% of Mr. Bar-Cohen&rsquo;s base salary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bar-Cohen
Amendment provides that Mr. Bar-Cohen is eligible to receive on May 17, 2012, which the second business day following the
filing of the Company&rsquo;s Quarterly Report on Form 10-Q for the period ended March 31, 2012, a grant of (i) non-qualified
stock options to purchase up to 142,586 shares of common stock of the Company, and (ii)  107,142 restricted shares of common
stock of the Company. The equity grants made to Mr. Bar-Cohen under the Bar-Cohen Amendment vest in 12 equal quarterly
installments over three years and shall accelerate if Mr. Bar-Cohen&rsquo;s employment is terminated &ldquo;without
cause&rdquo; by the Company or &ldquo;for cause&rdquo; by Mr. Bar-Cohen, other than on account of a Change in Control. The
applicable withholding and employment taxes imposed on the equity grants made to Mr. Bar-Cohen under the Bar-Cohen Amendment
may, under certain conditions specified in the Bar-Cohen Amendment, be satisfied by the Company&rsquo;s withholding of shares
of common stock of the Company otherwise deliverable to Mr. Bar-Cohen pursuant to the equity grants made to Mr. Bar-Cohen
under the Bar-Cohen Amendment, having a fair market value (based upon the closing price of a share of common stock of the
Company as reported on a consolidated basis for stock listed on Nasdaq or such other principal stock exchange or market on
which those shares are then traded) on the date on which the taxable event resulting in such taxes being required to be
withheld occurs, equal to the minimum statutory amount required to be so withheld.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Bar-Cohen
Amendment, his severance is increased to 12 months base salary and he is eligible to continue participating in the Company&rsquo;s
medical and dental plan for one year following his termination, in the event Mr. Bar-Cohen&rsquo;s employment is terminated &ldquo;without
cause&rdquo; by the Company or &ldquo;for cause&rdquo; by Mr. Bar-Cohen.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Bar-Cohen
Amendment, if Mr. Bar-Cohen&rsquo;s employment under the Bar-Cohen Employment Agreement is terminated &ldquo;without cause&rdquo;
by the Company or &ldquo;for cause&rdquo; by Mr. Bar-Cohen, other than on account of a Change in Control, the unvested portion
of the equity grants made pursuant to the Bar-Cohen Amendment shall vest, and all unvested options, restricted stock and restricted
stock units granted to Mr. Bar-Cohen prior to his entering into the Bar-Cohen Amendment that are purely time-vested, shall vest.
The Company&rsquo;s removal of Mr. Bar-Cohen as Interim CEO, other than &ldquo;for cause&rdquo; by the Company, on account of his
disability, or on account of his appointment as the permanent CEO, shall constitute a termination &ldquo;for cause&rdquo; by Mr.
Bar-Cohen.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bar-Cohen Amendment
also provides for reimbursements for association memberships, legal fees incurred in negotiating the Bar-Cohen Amendment and moving
expenses if Mr. Bar-Cohen relocates back to the United States while CEO of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In consideration for
the undertakings by the Company pursuant to the Bar-Cohen Amendment, Mr. Bar-Cohen agreed to release the Company and its affiliates
for any claims he may have with respect to any failures by the Company prior to May 15, 2011 to comply with any requirement under
the Bar-Cohen Employment Agreement or any equity or other award agreement between the Company and Mr. Bar-Cohen.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Barak Bar-Cohen Indemnification Agreement</I></B>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 4, 2012, Barak
Bar-Cohen, the Company's Chief Executive Officer, was elected to the Company's Board of Directors. On May 17, 2012, Mr. Bar-Cohen
entered into an Indemnification Agreement (the &ldquo;<U>Bar-Cohen Indemnification Agreement</U>&rdquo;) with the Company effective
as of April 1, 2012. Pursuant to the terms of the Bar-Cohen Indemnification Agreement, the Company agreed to indemnify Mr. Bar-Cohen
as provided in the Bar-Cohen Indemnification Agreement and to the fullest extent now or hereafter permitted by applicable law in
the event that Mr. Bar-Cohen was or is made or is threatened to be made a party to or a participant or witness in any proceeding,
by reason of his role as an officer or director of the Company or by reason of anything done or not done by Mr. Bar-Cohen in any
such capacity, against all costs, expenses (including attorneys&rsquo; fees and disbursements), judgments, fines (including excise
taxes and penalties), liabilities, amounts paid in settlement by or on behalf of Mr. Bar-Cohen and expenses actually and reasonably
incurred by or on behalf of Mr. Bar-Cohen in connection with such proceeding or any claim, issue or matter therein, if Mr. Bar-Cohen
acted in good faith and in a manner Mr. Bar-Cohen reasonably believed to be in or not opposed to the best interests of the Company
and, with respect to any criminal proceeding, had no reasonable cause to believe Mr. Bar-Cohen&rsquo;s conduct was unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Gavin Campion
Separation and Severance Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Mr. Gavin Campion,
the Company&rsquo;s President, entered into a Separation and Severance Agreement (the &ldquo;<U>Campion Separation and Severance
Agreement</U>&rdquo;) on May 14, 2012, pursuant to which Mr. Campion resigned as President effective as of April 19, 2012. The
Company will pay Mr. Campion an amount equal to the previous twelve (12) months base salary (a total of US$295,000), to paid in
nine equal monthly installments, from Aug 15, 2012 to April 15, 2013. Such monthly payments shall be fully accelerated in the event
the company completes a financing. The Company completed such financing in an equity offering which closed on May 17, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Christopher Williams
Separation Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Mr. Christopher Williams,
the Company&rsquo;s Chief Technology Officer, entered into a Separation Agreement (the &ldquo;<U>Williams Separation Agreement</U>&rdquo;)
on March 31, 2012, pursuant to which Mr. Williams; employment with the Company will be terminated effective July 15, 2012. Mr.
Williams&rsquo; final day as Chief Technology Officer was March 31, 2012 and he will be paid his salary for 14 weeks in lieu of
notice (through July 15, 2012).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 5.02.</B></TD><TD STYLE="text-align: justify"><B>Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Subsection (b)</U>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Reference is made to the Campion
Separation and Severance Agreement and the Williams Separation Agreement described in Item 1.01.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Effective May 15, 2012,
Robin Smyth resigned as the Chief Financial Officer of the Company. Subject to finalization of a definitive agreement, Mr.
Smyth will assume the position of Senior Vice President of Corporate Development responsible for among other things,
the divestiture of certain Company operations. Mr. Smyth&rsquo;s base compensation will be unchanged, he will receive a
bonus equal to fifty percent of his base compensation and a severance payment equal to six months base salary upon
termination of his employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Subsection (c)</U>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Reference is made to the Bar-Cohen Employment
Agreement and the Bar-Cohen Amendment described in Item 1.01 above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Subsection (d)</U>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Reference is made to
the Bar-Cohen Indemnification Agreement described in Item 1.01 above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Bar-Cohen Employment Agreement,
the Bar-Cohen Amendment, the Bar-Cohen Indemnification Agreement, the Campion Separation and Severance Agreement and the
Williams Separation Agreement are filed as Exhibits 10.1, 10.2, 10.3, 10.4, 10.5 and 10.6, respectively, to this Current
Report on Form 8-K and such documents are incorporated herein by reference. The foregoing is only a brief description of the
material terms of the Bar-Cohen Employment Agreement, the Bar-Cohen Amendment, the Bar-Cohen Indemnification Agreement,
the Campion Separation and Severance Agreement, the Smyth Transition Agreement and the Williams Separation Agreement, does
not purport to be a complete description of the rights and obligations of the parties thereunder and is qualified in its
entirety by reference to such exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left">Item 9.01.</TD><TD STYLE="text-align: left">Financial Statements and Exhibits.</TD>
</TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 69pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD><U>Exhibits</U>. The exhibit listed in the following Exhibit Index is filed as part of this current report.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 18%; border-bottom: Black 1pt solid">Exhibit No.</TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 80%; border-bottom: Black 1pt solid">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Employment Agreement, dated July 1, 2011, between KIT digital, Inc. and Barak Bar-Cohen.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.2</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment to Employment Agreement, dated May 15, 2012, between KIT digital, Inc. and Barak Bar-Cohen.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.3</TD>
    <TD>&nbsp;</TD>
    <TD>Indemnification Agreement, dated May 15, 2012, between KIT digital, Inc. and Barak Bar-Cohen.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>Separation and Severance Agreement, dated May 14, 2012, between KIT digital, Inc. and Gavin Campion.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.5</TD>
    <TD>&nbsp;</TD>
    <TD>Termination Agreement, dated March 31, 2012, between KIT digital, Inc. and Christopher Williams.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: center; text-indent: -0.75in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: center; text-indent: -0.75in"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: center; text-indent: -0.75in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">KIT DIGITAL, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 46%; text-align: justify">Date: May 21, 2012</TD>
    <TD STYLE="width: 4%; text-align: justify">By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 50%">/s/ Barak Bar-Cohen</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Barak Bar-Cohen</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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</HTML>
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{"company-data": {"conformed-name": "KIT digital, Inc.", "cik": "0001076700", "assigned-sic": "8900", "irs-number": "113447894", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-34437", "film-number": "12859756"}, "business-address": {"street1": "26 WEST 17TH STREET", "street2": "2ND FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10011", "phone": "6465534845"}, "mail-address": {"street1": "26 WEST 17TH STREET", "street2": "2ND FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10011"}, "former-company": [{"former-conformed-name": "ROO GROUP INC", "date-changed": "20040312"}, {"former-conformed-name": "VIRILITEC INDUSTRIES INC", "date-changed": "19990326"}]}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 16, 2012
KIT DIGITAL, INC.
(Exact Name of Registrant as Specified in
Charter)
Delaware
001-34437
11-3447894
(State or other jurisdiction
(Commission File Number)
(IRS Employer
of incorporation)
Identification No.)
26 West 17
th
Street - 2
nd
Floor
10011
New York, New York
(Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including
area code:
+1 (646) 553-4845
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 	240.13e-4(c))
CURRENT REPORT
ON FORM 8-K
KIT digital,
Inc.
May 21, 2012
Item 1.01
Entry into a Material Definitive Agreement.
Barak Bar-Cohen Employment Agreement
:
On April 1, 2012, Mr.
Barak Bar-Cohen, the Company's then Chief Administrative Officer, assumed the role of interim Chief Executive Officer. Mr.
Bar-Cohen's employment agreement, entered into on July 1, 2011 (the "
Bar-Cohen Employment Agreement
"),
provided for Mr. Bar-Cohen to serve as the Company's Chief Administrative Officer for an initial term of two years, beginning
on July 1, 2011, automatically renewing for subsequent two year periods unless either party provides written notice at least 120
days prior to the expiration of the two year period or the Bar-Cohen Employment Agreement otherwise terminates in accordance with
its terms. Under the Bar-Cohen Employment Agreement, Mr. Bar-Cohen was eligible to receive an annual base salary of $240,000 and
an annual performance-based cash bonus of 70% of base salary. In addition, he received a grant of 34,000 stock options and 80,000
performance contingent restricted stock units.
The Bar-Cohen Employment
Agreement provides for his participation in the Company's fringe benefit programs, including the Company's health,
dental, vision life, accident, short and long term disability insurance programs. The Bar-Cohen Employment Agreement also called
for the Company to make payments to Mr. Bar-Cohen to facilitate his relocation to the Company's headquarters in Prague, Czech
Republic, by reimbursing moving and travel expenses for Mr. Bar-Cohen and his family and the reimbursement of costs associated
with the renting of his U.S. residence, subject to certain limits set forth in the Bar-Cohen Employment Agreement.
If Mr. Bar-Cohen's
employment under the Bar-Cohen Employment Agreement is terminated "without cause" by the Company or "for cause"
by Mr. Bar-Cohen, he will be eligible to receive severance equal to six months base salary and any performance-based cash bonus
then outstanding. If his employment terminates as a result of his disability, he will be eligible to receive a continuation of
base salary for the lesser of three months or until the date on which his disability insurance benefits commence, and any performance-based
cash bonus then outstanding. If his employment terminates as a result of his death, he will be eligible to receive a continuation
of his base salary through the third month from which his death occurs, reimbursement of expenses and payment for accrued but unused
vacation time and any performance-based cash bonus then outstanding.
A termination "for
cause" by the Company means the occurrence of any of the following: (a) Mr. Bar-Cohen's material breach of the Bar-Cohen
Employment Agreement, material non-performance of any assigned duties, material breach of the non-competition provisions and Mr.
Bar-Cohen's failure to cure such material breach within 30 days following receipt of notice of the same from the Company; (b) the
appropriation (or attempted appropriation) of a material business opportunity of the Company, including attempting to secure or
securing any profit, for himself or others, in connection with any transaction entered into on behalf of the Company; (c) the misappropriation
(or attempted misappropriation) of any of the Company's funds or property; or (d) the conviction of, the indictment for (or its
procedural equivalent), or the entering of a guilty plea or plea of no contest with respect to, a felony, the equivalent thereof,
or any other crime based upon moral turpitude with respect to which imprisonment is a possible punishment.
A termination "for
cause" by Mr. Bar-Cohen means the occurrence of any of the following: (a) the assignment to Mr. Bar-Cohen of duties materially
inconsistent with Mr. Bar-Cohen's position, or any significant diminution in Mr. Bar-Cohen's duties, responsibilities or compensation,
other than in connection with the termination of the Mr. Bar-Cohen's employment for cause, disability or as a result of Mr. Bar-Cohen's
death or by Mr. Bar-Cohen other than for cause; (b) the change in the location of Mr. Bar-Cohen's office from primarily New York
City and secondarily Prague without Mr. Bar-Cohen's consent; (c) any material breach of the Bar-Cohen Employment Agreement by the
Company which is continuing; (d) a "Change in Control", provided that a "Change in Control" shall only
constitute cause if Mr. Bar-Cohen terminates his employment within six (6) months following the "Change in Control";
provided, however, Mr. Bar-Cohen shall not be deemed to have cause pursuant to clauses (a) or (c) above unless Mr. Bar-Cohen gives
the Company written notice of the specified conduct or event which has occurred and the Company fails to cure such conduct or event
within thirty (30) days of receipt of such notice.
A "Change in Control"
shall be deemed to have occurred when, after July 1, 2011, any new person or entity becomes the beneficial owner, directly or indirectly,
of 50% or more of the voting power of the Company's then outstanding securities.
Pursuant to the Bar-Cohen
Employment Agreement, Mr. Bar-Cohen agreed to be bound by a confidentiality agreement that applies during and after termination
of his employment with the Company, acknowledged that all "Employee Inventions" belong exclusively to the Company,
and agreed to be bound by a non-competition and non-interference agreement that applies during and one year after termination of
his employment with the Company.
An "Employee Invention"
means any idea, invention, technique, modification, process, or improvement (whether patentable or not), any industrial design
(whether registrable or not), any mask work, however fixed or encoded, that is suitable to be fixed, embedded or programmed in
a product (whether recordable or not), and any work of authorship (whether or not copyright protection may be obtained for it)
created, conceived, or developed by Mr. Bar-Cohen, either solely or in conjunction with others, during his employment period, or
a period that includes a portion of his employment period, that relates in any way to, or is useful in any manner in, the business
then being conducted or proposed publicly to be conducted by the Company, and any such item created by Mr. Bar-Cohen, either solely
or in conjunction with others, following termination of Mr. Bar-Cohen 's employment with the Company, that is based upon or uses
confidential information.
Barak Bar-Cohen - Amendment to the
Employment Agreement
:
On May 15, 2012, the
Company and Mr. Bar-Cohen entered into an amendment (the "
Bar-Cohen Amendment
") to the Bar-Cohen Employment
Agreement reflecting his appointment as interim Chief Executive Officer on April 1, 2012. Thus, the Bar-Cohen Amendment is intended
to apply during the period in which Mr. Bar-Cohen will be acting interim Chief Executive Officer, effective as of April 1, 2012.
Under the Bar-Cohen
Amendment, Mr. Bar-Cohen's annual base salary is increased to $500,000 and he is eligible to receive a bonus of $250,000
within three business days after the closing of a financing arrangement in which the Company raises at least $25,000,000 in capital
through the issuance of equity or debt obligations. The Company raised such amount in an offering which closed on May 17, 2012.
In addition, the annual performance-based cash bonus opportunity was increased to 100% of Mr. Bar-Cohen's base salary.
The Bar-Cohen
Amendment provides that Mr. Bar-Cohen is eligible to receive on May 17, 2012, which the second business day following the
filing of the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2012, a grant of (i) non-qualified
stock options to purchase up to 142,586 shares of common stock of the Company, and (ii)  107,142 restricted shares of common
stock of the Company. The equity grants made to Mr. Bar-Cohen under the Bar-Cohen Amendment vest in 12 equal quarterly
installments over three years and shall accelerate if Mr. Bar-Cohen's employment is terminated "without
cause" by the Company or "for cause" by Mr. Bar-Cohen, other than on account of a Change in Control. The
applicable withholding and employment taxes imposed on the equity grants made to Mr. Bar-Cohen under the Bar-Cohen Amendment
may, under certain conditions specified in the Bar-Cohen Amendment, be satisfied by the Company's withholding of shares
of common stock of the Company otherwise deliverable to Mr. Bar-Cohen pursuant to the equity grants made to Mr. Bar-Cohen
under the Bar-Cohen Amendment, having a fair market value (based upon the closing price of a share of common stock of the
Company as reported on a consolidated basis for stock listed on Nasdaq or such other principal stock exchange or market on
which those shares are then traded) on the date on which the taxable event resulting in such taxes being required to be
withheld occurs, equal to the minimum statutory amount required to be so withheld.
Under the Bar-Cohen
Amendment, his severance is increased to 12 months base salary and he is eligible to continue participating in the Company's
medical and dental plan for one year following his termination, in the event Mr. Bar-Cohen's employment is terminated "without
cause" by the Company or "for cause" by Mr. Bar-Cohen.
2
Under the Bar-Cohen
Amendment, if Mr. Bar-Cohen's employment under the Bar-Cohen Employment Agreement is terminated "without cause"
by the Company or "for cause" by Mr. Bar-Cohen, other than on account of a Change in Control, the unvested portion
of the equity grants made pursuant to the Bar-Cohen Amendment shall vest, and all unvested options, restricted stock and restricted
stock units granted to Mr. Bar-Cohen prior to his entering into the Bar-Cohen Amendment that are purely time-vested, shall vest.
The Company's removal of Mr. Bar-Cohen as Interim CEO, other than "for cause" by the Company, on account of his
disability, or on account of his appointment as the permanent CEO, shall constitute a termination "for cause" by Mr.
Bar-Cohen.
The Bar-Cohen Amendment
also provides for reimbursements for association memberships, legal fees incurred in negotiating the Bar-Cohen Amendment and moving
expenses if Mr. Bar-Cohen relocates back to the United States while CEO of the Company.
In consideration for
the undertakings by the Company pursuant to the Bar-Cohen Amendment, Mr. Bar-Cohen agreed to release the Company and its affiliates
for any claims he may have with respect to any failures by the Company prior to May 15, 2011 to comply with any requirement under
the Bar-Cohen Employment Agreement or any equity or other award agreement between the Company and Mr. Bar-Cohen.
Barak Bar-Cohen Indemnification Agreement
:
On May 4, 2012, Barak
Bar-Cohen, the Company's Chief Executive Officer, was elected to the Company's Board of Directors. On May 17, 2012, Mr. Bar-Cohen
entered into an Indemnification Agreement (the "
Bar-Cohen Indemnification Agreement
") with the Company effective
as of April 1, 2012. Pursuant to the terms of the Bar-Cohen Indemnification Agreement, the Company agreed to indemnify Mr. Bar-Cohen
as provided in the Bar-Cohen Indemnification Agreement and to the fullest extent now or hereafter permitted by applicable law in
the event that Mr. Bar-Cohen was or is made or is threatened to be made a party to or a participant or witness in any proceeding,
by reason of his role as an officer or director of the Company or by reason of anything done or not done by Mr. Bar-Cohen in any
such capacity, against all costs, expenses (including attorneys' fees and disbursements), judgments, fines (including excise
taxes and penalties), liabilities, amounts paid in settlement by or on behalf of Mr. Bar-Cohen and expenses actually and reasonably
incurred by or on behalf of Mr. Bar-Cohen in connection with such proceeding or any claim, issue or matter therein, if Mr. Bar-Cohen
acted in good faith and in a manner Mr. Bar-Cohen reasonably believed to be in or not opposed to the best interests of the Company
and, with respect to any criminal proceeding, had no reasonable cause to believe Mr. Bar-Cohen's conduct was unlawful.
Gavin Campion
Separation and Severance Agreement
Mr. Gavin Campion,
the Company's President, entered into a Separation and Severance Agreement (the "
Campion Separation and Severance
Agreement
") on May 14, 2012, pursuant to which Mr. Campion resigned as President effective as of April 19, 2012. The
Company will pay Mr. Campion an amount equal to the previous twelve (12) months base salary (a total of US$295,000), to paid in
nine equal monthly installments, from Aug 15, 2012 to April 15, 2013. Such monthly payments shall be fully accelerated in the event
the company completes a financing. The Company completed such financing in an equity offering which closed on May 17, 2012.
Christopher Williams
Separation Agreement
Mr. Christopher Williams,
the Company's Chief Technology Officer, entered into a Separation Agreement (the "
Williams Separation Agreement
")
on March 31, 2012, pursuant to which Mr. Williams; employment with the Company will be terminated effective July 15, 2012. Mr.
Williams' final day as Chief Technology Officer was March 31, 2012 and he will be paid his salary for 14 weeks in lieu of
notice (through July 15, 2012).
3
Item 5.02.
Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Subsection (b)
:
Reference is made to the Campion
Separation and Severance Agreement and the Williams Separation Agreement described in Item 1.01.
Effective May 15, 2012,
Robin Smyth resigned as the Chief Financial Officer of the Company. Subject to finalization of a definitive agreement, Mr.
Smyth will assume the position of Senior Vice President of Corporate Development responsible for among other things,
the divestiture of certain Company operations. Mr. Smyth's base compensation will be unchanged, he will receive a
bonus equal to fifty percent of his base compensation and a severance payment equal to six months base salary upon
termination of his employment.
Subsection (c)
:
Reference is made to the Bar-Cohen Employment
Agreement and the Bar-Cohen Amendment described in Item 1.01 above.
Subsection (d)
:
Reference is made to
the Bar-Cohen Indemnification Agreement described in Item 1.01 above.
The Bar-Cohen Employment Agreement,
the Bar-Cohen Amendment, the Bar-Cohen Indemnification Agreement, the Campion Separation and Severance Agreement and the
Williams Separation Agreement are filed as Exhibits 10.1, 10.2, 10.3, 10.4, 10.5 and 10.6, respectively, to this Current
Report on Form 8-K and such documents are incorporated herein by reference. The foregoing is only a brief description of the
material terms of the Bar-Cohen Employment Agreement, the Bar-Cohen Amendment, the Bar-Cohen Indemnification Agreement,
the Campion Separation and Severance Agreement, the Smyth Transition Agreement and the Williams Separation Agreement, does
not purport to be a complete description of the rights and obligations of the parties thereunder and is qualified in its
entirety by reference to such exhibits.
4
Item 9.01.
Financial Statements and Exhibits.
(d)
Exhibits
. The exhibit listed in the following Exhibit Index is filed as part of this current report.
Exhibit No.
Description
10.1
Employment Agreement, dated July 1, 2011, between KIT digital, Inc. and Barak Bar-Cohen.
10.2
Amendment to Employment Agreement, dated May 15, 2012, between KIT digital, Inc. and Barak Bar-Cohen.
10.3
Indemnification Agreement, dated May 15, 2012, between KIT digital, Inc. and Barak Bar-Cohen.
10.4
Separation and Severance Agreement, dated May 14, 2012, between KIT digital, Inc. and Gavin Campion.
10.5
Termination Agreement, dated March 31, 2012, between KIT digital, Inc. and Christopher Williams.
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
KIT DIGITAL, INC.
Date: May 21, 2012
By:
/s/ Barak Bar-Cohen
Barak Bar-Cohen
Chief Executive Officer