Document:

Employment Agreement between the Registrant and William T. McGann

 Exhibit 10.1 
  
 MASTER EMPLOYMENT AGREEMENT 
 (as amended April 22, 2005) 
  
 This Master Employment Agreement (this “Agreement”) has been made and entered into as of this lst day of August, 2004 by and between Hungarian Telephone and Cable Corp., a corporation organized under the laws of the State
of Delaware, United States of America (the (“Company”) and William. McGann (“Employee”) and amended as of the 22nd day of April 2005, for the purpose carrying out the original intentions of the Company and Employee.

  
 RECITALS: 
  
 A. The Employee and Company are parties to an employment agreement dated as
of August 1, 2002. 
  
 B. The Company desires to retain Employee
as its Finance Director. Employee desires to work for the Company as its Finance Director. 
  
 C. The parties desire to terminate the existing employment agreement and enter a new employment agreement and set forth herein in this new employment agreement the terms and conditions under which Employee shall serve
in the above-stated capacity of Finance Director. 
  
 NOW,
THEREFORE, in consideration of the respective covenants and agreements of the parties set forth herein, it is agreed as follows: 
  
 1. Employment and Duties. The Company agrees to employ Employee and Employee accepts the employment, subject to the terms and conditions herein, to
serve as Finance Director of the Company. Employee’s duties and responsibilities shall include the duties and responsibilities as set forth by the Company, in all cases consistent with Employee’s position. Employee shall perform faithfully
the duties assigned to him to the best of his ability. 
  
 2.
Place of Employment. Employee shall be employed at the Company’s subsidiary offices located in Budapest, Hungary. 
  
 3. Term. The term of employment under this Agreement shall commence on July 1, 2004 and continue for an indefinite term, unless terminated in
accordance with the terms of this Agreement. 
  
 4. Salary.
Employee will receive a total monthly salary based on an annualized rate of Two Hundred and Four Thousand Euro (204,000 Euro) to be allocated as agreed between the Employee and CEO, which will be reviewed on an annual basis, and may be adjusted
based upon the performance of the employee. 

 5. Performance Bonus. Employee shall be eligible to receive a bonus if the Company, in its sole
discretion, decides to reward Employee for his performance. Any such bonus shall be paid at the Company’s discretion in either (i) cash, (ii) the Company’s stock, (iii) options to purchase the Company’s stock, (iv) any combination of
cash, stock or options, or (v) such other form of consideration as the Company shall determine. 
  
 6. Stock Options. Provided Employee has maintained continuous service with the Company through the first business day of each calendar year, the
Company shall annually grant to Employee on the first business day of each calendar year, options from the Company’s 2004 Long-Term Incentive Plan (the Plan) to purchase at least 35,000 shares of the Company’s common stock at an exercise
price equal to the market price of the Company’s common stock on the date of grant as determined by the Plan. Such options shall have a ten-year exercise period. 
  
 7. Housing Allowance. Employee will receive a monthly housing allowance (the “Housing Allowance”) of
Three Thousand Euro (3,000 Euro). 
  
 8. Employee Taxes.
Employee shall be solely responsible for any and all of Employee’s (i) income and (ii) social security, medicare or any other miscellaneous taxes applicable to any salary, bonus, option grant, stock grant, allowance, severance benefit, or any
other type of compensation or benefit received by Employee pursuant to this Agreement which is subject to taxation and payable to any governmental taxing authority including, but not limited to, any governmental taxing authority in the Republic of
Hungary or the United States of America. 
  
 9. Health
Insurance and Access Charges. Upon request from Employee, the Company will provide Employee, his spouse and his minor dependants with medical and dental health insurance coverage provided such persons meet any coverage requirements that the
Company’s insurance carrier may require. The Company undertakes to pay the special 11% Health Care Access charge in Hungary for the Employee on all compensation for which it applies to. 
  
 10. Vacation. Employee will be entitled to twenty-five (25) days paid
vacation per contract year. 
  
 11. Automobile. The Company
will provide Employee with an automobile for employee’s use during the employment period. The Company will ensure that the vehicle is properly maintained and insured at all times. Employee will be responsible for fuel costs for private use.

  
 12. Mobile Telephone. The Company will provide Employee
with a mobile telephone during the employment period. Employee will reimburse the Company for all personal telephone calls. 
  
 13. Work Permits. With the Company’s assistance, Employee shall obtain and keep current any Hungarian work permits, residency permits or other
similar licenses as may be required by Hungarian law as a result of Employee’s employment by the Company. 
  

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 14. Confidential Information. 
  
 (a) Nondisclosure. Employee expressly covenants and agrees that he will not during the term of this Agreement or at
any time after the termination hereof, irrespective of the time, manner, or cause of termination, reveal, divulge, disclose, or communicate to any person, firm, or corporation, other than authorized officers, directors, and employees of the Company,
in any manner whatsoever, any “confidential information” (as hereinafter defined) of the Company that would be inconsistent with the position held by Employee or the duties being performed by Employee at the direction of the Company.

  
 (b) Return of Confidential Information and Other
Property. Upon termination of this Agreement, Employee will surrender to the Company all confidential information including, without limitation, all lists, charts, schedules, reports, financial statements, books and records, and all copies
thereof, of the Company and all other property belonging to the Company whatsoever. As used herein, “confidential information” means information disclosed to or known by Employee as a consequence of or through his employment for the
Company, not generally known in the business in which the Company is or may become engaged, about the Company, its business, products and processes. 
  
 (c) Breach of Confidentiality Provision. Employee agrees that a substantial violation on his part of this confidentiality covenant will cause such
damage to the Company shall be entitled as a matter of right, to an injunction out of any court of competent jurisdiction, restraining any further violation of said covenant by Employee, his employer, employees, partners, or agents. Such right to
injunction shall be cumulative and in addition to whatever other remedies the Company may have, including, specifically, recovery of liquidated and additional damages. Employee expressly acknowledges and agrees that the respective covenants and
agreements shall be construed in such a manner as to be enforceable under applicable laws if a more limited scope of time is determined by a court or competent jurisdiction to be required. 
  
 15. Termination. 
  
 (a) Reasons for Termination. The employment of Employee with the
Company shall terminate automatically upon Employee’s death and may be terminated by written notice. 
  
 (i) by the Company, upon Employee’s disability which renders him unable to perform his usual and customary duties for a period of 180
consecutive days; 
  
 (ii) by the Company without
“cause” upon six (6) months notice (cause is hereinafter defined); 
  
 (iii) by the Company with “cause” without notice; 
  
 (iv) by Employee upon three (3) months notice; 
  

(v) by Employee for “Good Reason” upon one month notice. “Good Reason” means (1) a diminution in Employee’s
responsibilities, duties, titles, 
  

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 reporting lines, etc.; or (2) a reduction in Employee’s salary, bonus opportunity or a material
reduction in Employee’s other benefits; or (3) requiring Employee to be based at a location more than 25 miles from Budapest, Hungary; or (4) the Company’s failure to pay Employee any material amount that is due to Employee under this
Agreement, which failure is not corrected within 20 business after Employee notifies the Company in writing thereof. 
  
 For purposes of this Agreement, “cause” shall mean (i) a failure by Employee to substantially perform Employee’s reasonable and legal duties and as defined
by goals established by the Company and agreed to by Employee, other than a failure resulting from Employee’s complete or partial incapacity due to physical or mental illness or impairment, (ii) a “wilful” act by Employee that
constitutes gross misconduct and that is injurious to the Company, (iii) a “wilful” breach by Employee of a material provision of this Agreement, or (iv) a material and “wilful” violation of a federal or state law or regulation
applicable to the business of the Company. No act or failure to act, by Employee shall be considered “willful” unless committed without good faith and without a reasonable belief that the act or omission was in the Company’s best
interest. 
  
 For purposes of this Agreement, a “change of control”
shall be deemed to have occurred if (1) (A) any “person” (as such term is used in Sections 13(d) and 14(d) of the U.S. Securities and Exchange Act (the “Exchange Act”)) is or becomes the “beneficial owner” (as defined
in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing thirty-five percent (35%) or more of the combined voting power (with respect to the election of directors) of the Company’s then
outstanding securities; or (B) whether or not having previously attained such level of thirty-five percent (35%), any such person is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing fifty percent
(50%) or more of such combined voting power; or (C) whether or not having previously attained such level of fifty percent (50%), any such person is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing
seventy-five percent (75%) or more of such combined voting power; or (2) whether or not any of the thresholds of beneficial ownership identified in the preceding clause (1) have been attained, equity securities of the Company cease to be listed for
trading on any regulated securities exchange in the United States or Europe or quoted on the National Market System of the National Association of Securities Dealers Automated Quotation System; or (3) at any time after the execution of this
Agreement, a majority of the Board shall be replaced, over a two-year period, from the directors who constituted the Board at the beginning of such period, and such replacement shall not have been approved by two-thirds (2/3) of the Board as
constituted at the beginning of such period; or (4) the consummation of a merger or consolidation of the Company with or into any other corporation, other than a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than sixty-five percent (65%) of the combined voting power (with respect to the
election of directors) of the securities of the Company or of such surviving entity outstanding immediately after such merger or consolidation; or (5) the consummation of a plan of complete liquidation of the Company or of an agreement for the sale
or disposition by the Company of all or substantially all of the Company’s business or assets. 
  

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 (b) Termination Benefits. If Employee’s employment is terminated by (1) the Company pursuant
to Section 15(a) for any reason noted above other than by the Company for “cause” or (2) by Employee for “Good Reason”, Employee will be entitled to receive the following benefits as severance (the “Severance
Benefits”): 
  
 (i) Eighteen (18)
months’ salary at Employee’s then current annual salary level, (housing allowance, pension and other agreed contributions will be considered as part of employees’ salary). The Company shall also maintain the health insurance coverage
set forth in Section 9 for eighteen months following the termination of Employee’s employment. 
  
 (ii) Payment of any salary, expenses, allowances and benefits accrued by Employee up to the date of the termination; 
  
 (iii) The immediate vesting and release without restriction
as of the date of termination of any unvested unreleased portion of any equity securities of the Company granted by the Company to Employee. In addition any outstanding options granted by the Company to Employee shall go to their full term.

  
 (iv) If the Company gives Employee notice of
termination other than for “cause,” or if Employee gives the Company notice of termination for “Good Reason,” in either case within one (1) year after a change of control has occurred, the Severance Benefit will be extended by
six (6) months to a total of twenty-four (24) months. 
  
 If Employee’s
employment is terminated by Employee for any reason pursuant to Section 15(a) noted above other than for “Good Reason”, Employee shall be entitled to receive the following benefits as termination benefits after the notice period:

  
 (i) Six (6) months’ salary at
Employee’s then-current annual salary level, (housing allowance, pension, and other agreed contributions will be considered as part of Employees’ salary). The Company shall also maintain the health insurance coverage set forth in Section 9
for six months following the termination of Employee’s employment. 
  
 (ii) Payment of any salary, expenses, allowances and benefits accrued by Employee up to the date of the termination; and 
  
 (iii) The immediate vesting and release without restriction as of the date of termination of any unvested unreleased portion of any equity
securities of the Company granted by the Company to Employee. 
  
 (c) Benefits in the Event of Employee’s Death. Except as set forth below, if Employee’s employment terminates automatically in the event of Employee’s death, Employee’s estate will be entitled to receive the
Severance Benefits. The Company may, at its option, maintain a life insurance policy for Employee in an amount deemed to be appropriate by the Board and designating Employee’s estate as the beneficiary. If the Company elects to maintain such
life insurance and the policy amount equals or exceeds the value of the Severance Benefits 
  

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 (as determined by the Board), Employee’s estate shall only be entitled to receive the proceeds of the insurance
policy. If the policy amount is less than the value of the Severance Benefits, the Company shall pay to Employee’s estate an amount equal to the difference between the value of the Severance Benefits and the amount to which the estate would be
entitled to under the insurance policy. The Company shall determine the value of the Severance Benefits as soon as practicable after Employee’s death but in no event later than thirty (30) days thereafter. 
  
 (d) Date of Termination, Provision of Severance Benefits. The date of
termination of Employee’s employment by the Company under this Paragraph 15 shall be six (6) months after receipt by Employee of written notice of termination, provided, however, that if the termination is for cause the date of termination
shall be the date specified in the notice of termination or if no date is specified then the date on which such notice is received by the Employee. The date of termination by Employee under this Paragraph 15 shall be three (3) or one (1) month, as
applicable, after receipt by the Company of written notice of termination. All benefits to which Employee is entitled under subparagraph (b) hereof shall be provided within thirty (30) days of termination unless mutually agreed otherwise between the
parties. In the case of automatic termination in the event of Employee’s death, the benefits shall be provided no later than thirty (30) days from the date of Employee’s death. 
  
 16. Indemnification. The Company agrees that if Executive is made a party, or is threatened to be made a party, to
any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he is or was a director, officer or employee of the Company, Executive shall be indemnified and
held harmless by the Company to the fullest extent legally permitted or authorized by the Company’s certificate of incorporation or bylaws or resolutions of the Board or, if greater, by the laws of the State of Delaware, against all cost,
expense, liability and loss (including, without limitation, attorney’s fees, judgements, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by Executive in connection therewith.
The Company agrees to continue to maintain a directors’ and officers’ liability insurance policy covering Executive to the extent the Company provides such coverage for any of its other executive officers. 
  
 17. Miscellaneous. 
  
 (a) Entire Agreement. This Agreement constitutes the entire agreement
between the parties with respect to the subject matter of this Agreement and supersedes all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter of this Agreement. 
  
 (b) Notices. Any notice or request to be given hereunder by any party
to the other shall be in writing and shall be deemed to have been duly given on the next business day after the same is sent, if delivered personally or sent by telecopy or overnight delivery, or five calendar days after the same is sent, if sent by
registered or certified mail, return receipt requested, postage prepaid, as set forth below, or to such other persons or addresses as may be designated in writing in accordance with the terms hereof by the party to receive such notice. 

 

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 If to the Company, to: 
  
 Hungarian Telephone and Cable Corp. 
 1201 Third Avenue, Suite 3400 
 Seattle, WA 98101-3034 
 Facsimile No.: 206-583-0359 
 Attention:
General Counsel 
  
 With a copy to: 
  
 Hungarian Telephone and Cable Corp. 
 Terez krt. 46 
 H- 1066 Budapest, Hungary

 Facsimile No.: 011-361-474-0351 
 Attention: Human Resources 
  
 If to Employee, to:

  
 William T. McGann 
 Klapka u. Hrsz. 1795/3. 
 H-2085
Pilisvorosvár, Hungary 
  

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 with a required copy to: 
  
 (to be provided by Employee) 
  
 (c) Governing Law. Forum, Consent to Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware without giving effect to the principles of conflict of laws thereof. Each of the parties to this Agreement hereby irrevocably and unconditionally (i) consents to submit to the exclusive jurisdiction of the courts of the State of
Delaware for any proceeding arising in connection with this Agreement (and each such party agrees not to commence any such proceeding, except in such courts), (ii) to the extent such party is not a resident of the State of Delaware, agrees to
appoint an agent in the State of Delaware as such party’s agent for acceptance of legal process in any such proceeding against such party with the same legal force and validity as if served upon such party personally within the State of
Delaware, and to notify promptly each other party hereto of the name and address of such agent, (iii) waives any objection to the laying of venue of any such proceeding in the courts of the State of Delaware, and (iv) waives, and agrees not to plead
or to make, any claim that any such proceeding brought in any court of the State of Delaware has been brought in an improper or otherwise inconvenient forum. 
  
 (d) Counterparts. This Agreement may be executed in one or more counterparts, and each of such counterparts shall for all purposes be deemed to be
an original, but all such counterparts together shall constitute but one instrument. 
  
 (e) Assignment. Neither this Agreement, nor the rights and obligations hereunder, may be assigned by either party without the prior written consent of the other party. 
  
 (f) Parties in Interest. Nothing in this Agreement, expressed or
implied, is intended to confer on any person other than the parties hereto or their respective successors or assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement. 
  
 (g) Amendment. This Agreement may not be amended except by an
instrument in writing signed on behalf of each of the parties. 
  
 (h) Extension, Waiver. Either party to this Agreement may (a) extend the time for the performance of any of the obligations or other acts of the other party to this Agreement or (b) waive compliance by the other party with any of the
agreements or conditions contained herein or any breach thereof. Any agreement on the part of a party to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party. 
  
 (i) Severability. The provisions of this Agreement are severable and,
if any provision of this Agreement is determined to be invalid or unenforceable by any court of competent jurisdiction, such provision (in any other jurisdiction) and the other provisions hereof (in any jurisdiction) shall not be rendered otherwise
invalid or unenforceable and such provision shall be deemed to be modified to the extent necessary to render it legal, valid and enforceable, and if no such modification shall render it legal, valid and enforceable, then this Agreement shall be
construed as if not containing the provision held to be invalid, and the rights and obligations of the parties shall be construed and enforced accordingly. 
  

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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

  

			
	HUNGARIAN TELEPHONE AND CABLE CORP.
		
	By:	 	 /s/ Ole Bertram

	Name:	 	Ole Bertram
	Title:	 	President and Chief Executive Officer
		
	By:	 	 /s/ William T. McGann

	 	 	William T. McGann

  
 [SIGNATURE PAGE TO APRIL 22,
2005 AMENDED EMPLOYMENT AGREEMENT] 
  

 9Employment Agreement between the Registrant and Peter T. Noone

 Exhibit 10.2 
  
 EMPLOYMENT AGREEMENT 
 (as amended April 22, 2005) 
  
 This Employment Agreement (this “Agreement”) has been made and entered into as of the 2nd day of March 2005, by and between Hungarian Telephone and Cable Corp., a corporation organized under the laws of the State of
Delaware, United States of America (the “Company”) and Peter T. Noone (“Employee”) and amended as of the 22nd day of April 2005, for the purpose carrying out the original intentions of the Company and Employee .

  
 RECITALS: 
  
 A. The Employee and Company are parties to an employment agreement dated as
of January 2, 2003. 
  
 B. The Company desires to retain Employee
as its General Counsel and Secretary. Employee desires to work for the Company as its General Counsel and Secretary. 
  
 C. The parties desire to terminate the existing employment agreement and enter a new employment agreement and set forth herein in this new employment
agreement the terms and conditions under which Employee shall serve in the above-stated capacity of General Counsel and Secretary. 
  
 NOW, THEREFORE, in consideration of the respective covenants and agreements of the parties set forth herein, it is agreed as follows: 
  
 1. Employment and Duties. The Company agrees to employ Employee and
Employee accepts the employment, subject to the terms and conditions herein, to serve as General Counsel and Secretary of the Company. Employee’s duties and responsibilities shall include the duties and responsibilities as set forth by the
Company, in all cases consistent with Employee’s position. Employee shall perform faithfully the duties assigned to him to the best of his ability. 
  
 2. Place of Employment. Employee shall be employed out of the Company’s United States office located in Seattle, Washington. 
  
 3. Term. This agreement shall have an indefinite term and shall
continue indefinitely unless terminated pursuant to Section 12 hereof (the “Employment Period”). 
  
 4. Salary. Employee will receive a monthly salary based on an annualized rate of two hundred and ten thousand dollars ($210,000.00) for 2005. For
subsequent calendar years, provided Employee has performed his duties satisfactorily, Employee shall be entitled to an increase in his base salary that shall not be less than the annual change in the United States Consumer Price Index for the prior
year. 

 5. Allowances. At the Employee’s discretion, the Company shall grant Employee the following
allowances which shall be deducted from the annual salary: (i) an annual allowance of up to $3,940 per year to purchase life insurance for which Employee or a trust set up by Employee shall be the owner and which insurance shall benefit
Employee’s family upon Employee’s death, and (ii) an allowance of up to $3,500 to be used by Employee for Employee or any member of Employee’s family to cover amounts not covered by Employee’s health or dental insurance.

  
 6. Performance Bonus. Employee shall be eligible to
receive a bonus if the Company, in its sole discretion, decides to reward Employee for his performance. Any such bonus shall be paid at the Company’s discretion in either (i) cash, (ii) the Company’s stock, (iii) additional options to
purchase the Company’s stock, (iv) any combination of cash, stock or options, or (v) such other form of consideration as the Company shall determine. 
  
 7. Stock Options Provided Employee has maintained continuous service with the Company through the first business day of each calendar year,
the Company shall annually grant to Employee on the first business day of each calendar year, options from the Company’s 2004 Long-Term Incentive Plan (the “Plan”) to purchase at least 20,000 shares of the Company’s common
stock at an exercise price equal to the market price of the Company’s common stock on the date of grant as determined by the Plan. Such options shall have a ten-year exercise period. 
  
 8. Employee Taxes. Employee shall be solely responsible for any and all of Employee’s portion of any (i) income
and (ii) social security, medicare or any other miscellaneous taxes applicable to any salary, bonus, option grant, stock grant, allowance, severance benefit, or any other type of compensation or benefit received by Employee pursuant to this
Agreement which is subject to taxation and payable to any governmental taxing authority. 
  
 9. Health and Dental Insurance. The Company will provide Employee, his spouse and his minor dependents with health and dental insurance coverage provided such persons meet any coverage requirements that the
Company’s insurance carrier may require. 
  
 10.
Vacation. Employee will be entitled to twenty (25) days annual paid vacation. 
  
 11. Confidential Information. 
  
 (a) Nondisclosure. Employee expressly covenants and agrees that he will not during the term of this Agreement or at any time after the termination hereof, irrespective of the time, manner, or cause of termination, reveal, divulge,
disclose, or communicate to any person, firm, or corporation, other than authorized officers, directors, and employees of the Company, in any manner whatsoever, any “confidential information” (as hereinafter defined) of the Company that
would be inconsistent with the position held by Employee or the duties being performed by Employee at the direction of the Company. 
  
 (b) Return of Confidential Information and Other Property. Upon termination of this Agreement, Employee will surrender to the Company all
confidential information including, without limitation, all lists, charts, schedules, reports, financial statements, books and 
  

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 records, and all copies thereof, of the Company and all other property belonging to the Company whatsoever. As used
herein, “confidential information” means information disclosed to or known by Employee as a consequence of or through his employment for the Company, not generally known in the business in which the Company is or may become engaged, about
the Company, its business, products and processes. 
  
 (c)
Breach of Confidentiality Provision. Employee agrees that a substantial violation on his part of this confidentiality covenant will cause such damage to the Company as will be irreparable and for that reason, Employee further agrees that the
Company shall be entitled as a matter of right, to an injunction out of any court of competent jurisdiction, restraining any further violation of said covenant by Employee, his employer, employees, partners, or agents. Such right to injunction shall
be cumulative and in addition to whatever other remedies the Company may have, including, specifically, recovery of liquidated and additional damages. Employee expressly acknowledges and agrees that the respective covenants and agreements shall be
construed in such a manner as to be enforceable under applicable laws if a more limited scope of time is determined by a court or competent jurisdiction to be required. 
  
 12. Termination. 
  
 (a) Reasons for Termination. The employment of Employee with the Company shall terminate automatically upon Employee’s death and may be
terminated by written notice. 
  
 (i) by the Company, upon
Employee’s disability which renders him unable to perform his usual and customary duties for a period of 180 consecutive days; 
  
 (ii) by the Company without “cause” upon 180 days (6 months) notice “cause” is hereinafter defined); 
  
 (iii) by the Company with “cause” without notice; 
  
 (iv) by Employee upon 90 days (3 months) notice; or 
  
 (v) by Employee for “Good Reason” upon one month notice.
“Good Reason” means (1) a diminution in Employee’s responsibilities, duties, titles, reporting lines, etc.; or (2) a reduction in Employee’s salary, bonus opportunity or a material reduction in Employee’s other benefits; or
(3) requiring Employee to be based at a location more than 25 miles from Seattle, Washington; or (4) the Company’s failure to pay Employee any material amount that is due to Employee under this Agreement, which failure is not corrected within
20 business after Employee notifies the Company in writing thereof. 
  
 For purposes of this Agreement, “cause” shall mean (i) a failure by Employee to substantially perform Employee’s reasonable and legal duties and as defined by goals established by the Company and agreed to by Employee, other
than a failure resulting from Employee’s complete or partial incapacity due to physical or mental illness or impairment, (ii) a willful act 
  

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 by Employee that constitutes gross misconduct and that is injurious to the Company, (iii) a willful breach by Employee of
a material provision of this Agreement, or (iv) a material and willful violation of a federal or state law or regulation applicable to the business of the Company. No act, or failure to act, by Employee shall be considered “willful” unless
committed without good faith and without a reasonable belief that the act or omission was in the Company’s best interest. 
  
 For purposes of this Agreement, a “change of control” shall be deemed to have occurred if (1) (A) any “person” (as such term is used
in Sections 13(d) and 14(d) of the U.S. Securities and Exchange Act (the “Exchange Act”)) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing thirty-five percent (35%) or more of the combined voting power (with respect to the election of directors) of the Company’s then outstanding securities; or (B) whether or not having previously attained such level of
thirty-five percent (35%), any such person is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing fifty percent (50%) or more of such combined voting power; or (C) whether or not having previously
attained such level of fifty percent (50%), any such person is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing seventy-five percent (75%) or more of such combined voting power; or (2) whether or not
any of the thresholds of beneficial ownership identified in the preceding clause (1) have been attained, equity securities of the Company cease to be listed for trading on any regulated securities exchange in the United States or Europe or quoted on
the National Market System of the National Association of Securities Dealers Automated Quotation System; or (3) at any time after the execution of this Agreement, a majority of the Board shall be replaced, over a two-year period, from the directors
who constituted the Board at the beginning of such period, and such replacement shall not have been approved by two-thirds (2/3) of the Board as constituted at the beginning of such period; or (4) the consummation of a merger or consolidation of the
Company with or into any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) more than sixty-five percent (65%) of the combined voting power (with respect to the election of directors) of the securities of the Company or of such surviving entity outstanding
immediately after such merger or consolidation; or (5) the consummation of a plan of complete liquidation of the Company or of an agreement for the sale or disposition by the Company of all or substantially all of the Company’s business or
assets. 
  
 (b) Termination Benefits. If Employee’s
employment is terminated by (1) the Company pursuant to Section 12(a) of this Agreement for any reason noted above other than by the Company for “cause” or (2) by Employee for “Good Reason”, Employee will be entitled to receive
the following benefits as severance (the “Severance Benefits”): 
  
 (i) Twelve (12) months salary at Employee’s then current annual salary level (agreed contributions will be considered as part of Employee’s salary). The Company shall also maintain the medical and dental
insurance coverage mentioned in paragraph nine (9) above for this period; 
  

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 (ii) payment of any salary, expenses, allowances and benefits accrued by Employee up to the date of the
termination; 
  
 (iii) the immediate vesting and release without
restriction as of the date of termination of any equity securities of the Company granted by the Company to Employee. In addition all outstanding options granted by the Company to Employee shall go to their full term; 
  
 (iv) If the Company gives Employee notice of termination other than for
“cause,” or if Employee gives the Company notice of termination for “Good Reason,” in either case within one (1) year after a change of control has occurred, the Severance Benefit will be extended by six (6) months to a total of
eighteen (18) months. 
  
 If Employee’s employment is
terminated by Employee for any reason pursuant to Section 12(a) noted above other than for “Good Reason”, Employee will be entitled to receive the following benefits as termination benefits after the notice period: 
  
 (i) Six (6) months’ salary at Employee’s then current annual
salary level (agreed contributions will be considered as part of Employee’s salary). The Company will also maintain the medical and dental insurance coverage mentioned in paragraph nine (9) above for this period; 
  
 (ii) payment of any salary, expense, allowances and benefits accrued by
Employee up to the date of termination; and 
  
 (iii) the
immediate vesting and release without restriction as of the date of termination of any equity securities of the Company granted by the Company to Employee. 
  
 (c) Benefits in the Event of Employee’s Death. Except as set forth below, if Employee’s employment terminates automatically in the event
of Employee’s death, Employee’s estate will be entitled to receive the Severance Benefits. The Company may, at its option, maintain a life insurance policy for Employee in an amount deemed to be appropriate by the Board and designating
Employee’s estate as the beneficiary. If the Company elects to maintain such life insurance and the policy amount equals or exceeds the value of the Severance Benefits (as determined by the Board), Employee’s estate shall only be entitled
to receive the proceeds of the insurance policy. If the policy amount is less than the value of the Severance Benefits, the Company shall pay to Employee’s estate an amount equal to the difference between the value of the Severance Benefits and
the amount to which the estate would be entitled to under the insurance policy. The Company shall determine the value of the Severance Benefits as soon as practicable after Employee’s death but in no event later than thirty (30) days
thereafter. 
  
 (d) Date of Termination; Provision of Severance
Benefits. The date of termination of Employee’s employment by the Company under this Paragraph 12 shall be six (6) months after receipt by Employee of written notice of termination, provided, however, that if the termination is for cause
the date of termination shall be the date specified in the notice of termination or if no date is specified then the date on which such notice is received by Employee. 
  

 5 

 The date of termination by Employee under this Paragraph 12 shall be three (3) or one (1) month(s) after receipt by the
Company of written notice of termination. All benefits to which Employee is entitled under subparagraph (b) hereof shall be provided within thirty (30) days of termination unless mutually agreed otherwise by the parties. In the case of automatic
termination in the event of Employees death, the benefits shall be provided no later than thirty (30) days from the date of Employees death. 
  
 13. Indemnification. The Company agrees that if Employee is made a party, or is threatened to be made a party, to any action, suit or proceeding,
whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he is or was a director, officer or employee of the Company, Employee shall be indemnified and held harmless by the Company to the
fullest extent legally permitted or authorized by the Company’s certificate of incorporation or bylaws or resolutions of the Board or, if greater, by the laws of the State of Delaware, against all cost, expense, liability and loss (including,
without limitation, attorney’s fees, judgments, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by Employee in connection therewith. The Company agrees to continue and
maintain a directors’ and officers’ liability insurance policy covering Employee to the extent the Company provides such coverage for any of its other Employee officers. 
  
 14. Miscellaneous. 
  
 (a) Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter of this Agreement and
supersedes all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter of this Agreement. 
  
 (b) Notices. Any notice or request to be given hereunder by any party to the other shall be in writing and shall be deemed to have been duly given
on the next business day after the same is sent, if delivered personally or sent by telecopy or overnight delivery, or five calendar days after the same is sent, if sent by registered or certified mail, return receipt requested, postage prepaid, as
set forth below, or to such other persons or addresses as may be designated in writing in accordance with the terms hereof by the party to receive such notice. 
  

If to the Company, to: 
  
 Hungarian Telephone and Cable Corp. 
 Terez
krt. 46 
 Budapest, Hungary 1066 
 Facsimile No.: 011-361-474-0351 
 Attention: President and Chief Employee Officer 
  
 If to Employee, to: 
  
 the address or facsimile number for Employee as set forth in the
Company’s records 
  

 6 

 (c) Governing Law; Forum; Consent to Jurisdiction. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware without giving effect to the principles of conflict of laws thereof. Each of the parties to this Agreement hereby irrevocably and unconditionally (i) consents to submit to the exclusive
jurisdiction of the courts of the State of Delaware for any proceeding arising in connection with this Agreement (and each such party agrees not to commence any such proceeding, except in such courts), (ii) to the extent such party is not a resident
of the State of Delaware, agrees to appoint an agent in the State of Delaware as such party’s agent for acceptance of legal process in any such proceeding against such party with the same legal force and validity as if served upon such party
personally within the State of Delaware, and to notify promptly each other party hereto of the name and address of such agent, (iii) waives any objection to the laying of venue of any such proceeding in the courts of the State of Delaware, and (iv)
waives, and agrees not to plead or to make, any claim that any such proceeding brought in any court of the State of Delaware has been brought in an improper or otherwise inconvenient forum. 
  
 (d) Counterparts. This Agreement may be executed in one or more
counterparts, and each of such counterparts shall for all purposes be deemed to be an original, but all such counterparts together shall constitute but one instrument. 
  
 (e) Assignment. Neither this Agreement, nor the rights and obligations hereunder, may be assigned by either party
without the prior written consent of the other party. 
  
 (f)
Parties in Interest. Nothing in this Agreement, expressed or implied, is intended to confer on any person other than the parties hereto or their respective successors or assigns, any rights, remedies, obligations or liabilities under or by
reason of this Agreement. 
  
 (g) Amendment. This Agreement
may not be amended except by an instrument in writing signed on behalf of each of the parties. 
  
 (h) Extension; Waiver. Either party to this Agreement may (a) extend the time for the performance of any of the obligations or other acts of the other party to this Agreement or (b) waive compliance by the
other party with any of the agreements or conditions contained herein or any breach thereof. Any agreement on the part of a party to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such
party. 
  
 (i) Severability. The provisions of this
Agreement are severable and, if any provision of this Agreement is determined to be invalid or unenforceable by any court of competent jurisdiction, such provision (in any other jurisdiction) and the other provisions hereof (in any jurisdiction)
shall not be rendered otherwise invalid or unenforceable and such provision shall be deemed to be modified to the extent necessary to render it legal, valid and enforceable, and if no such modification shall render it legal, valid and enforceable,
then this Agreement shall be construed as if not containing the provision held to be invalid, and the rights and obligations of the parties shall be construed and enforced accordingly. 
  

 7 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

  

			
	 HUNGARIAN TELEPHONE AND CABLE CORP.

		
	By:	 	 /s/ Ole Bertram

	 	 	Ole Bertram
	 	 	President and Chief Executive Officer
	
	PETER T. NOONE
		
	 	 	 /s/ Peter T. Noone

  
 [SIGNATURE PAGE TO APRIL 22,
2005 AMENDED EMPLOYMENT AGREEMENT] 
  

 8

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