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): December 24, 2008
CENTRAL
EUROPEAN MEDIA ENTERPRISES LTD.
(Exact
name of registrant as specified in its charter)
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BERMUDA
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0-24796
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98-0438382
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(State
or other jurisdiction of incorporation and organisation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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Clarendon
House, Church Street, Hamilton
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HM
11 Bermuda
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant's
telephone number, including area code: (441) 296-1431
Not
applicable
(Former
name or former address, if changed since last report)
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 (see General Instruction A.2. below):
o Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
1.02 – Termination of a Material Definitive Agreement
On
December 24, 2008, television broadcasting company Studio 1+1 LLC (“Studio 1+1”), a Ukrainian
subsidiary of Central European Media Enterprises Ltd. (the “Company”), delivered a
termination notice in respect of its Agreement to Provide Advertising Services
(the “Agreement”) with
Video International Prioritet LLC (“VI”), dated November 30, 2006.
The Agreement was included as exhibit 10.62 to the Company’s Annual Report on
Form 10-K for the year ended December 31, 2006. Under the Agreement, which
expires on December 31, 2011, VI has been the primary provider of advertising
sales services to Studio 1+1. Pursuant to the Agreement, Studio 1+1 is entitled
to terminate the Agreement with ninety days’ prior written notice to VI. The
termination notice delivered by Studio 1+1 provides for termination of the
Agreement on March 24, 2009 (the “Termination Date”). Unless
otherwise agreed, Studio 1+1 will be required to pay a termination penalty
within 45 banking days after the Termination Date in an amount equal to (i) 12%
of the average monthly net advertising revenue and (ii) 6% of the average
monthly net sponsorship revenue, for the six months prior to the Termination
Date multiplied by six. Certain other affiliates of the Company entered into
substantially similar advertising services agreements with affiliates of VI, and
all those agreements are terminating on the Termination Date. In connection with
this termination, Studio 1+1 has invoked its right under the Agreement for the
Studio 1+1 group of companies to directly sell all airtime of Studio 1+1
effective from January 1, 2009.
Signatures
Pursuant
to the requirements of the Securities Exchange Act of 1934, we have duly caused
this report to be signed on our behalf by the undersigned thereunto duly
authorized.
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CENTRAL
EUROPEAN MEDIA ENTERPRISES LTD.
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Date:
December 31, 2008
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/s/
Wallace Macmillan
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Wallace
Macmillan
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Chief
Financial Officer
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