Document:

EX-10.27

 Exhibit 10.27 

John J. Lynch, Jr. 

New Hire Option Award Agreement 

HOUGHTON MIFFLIN HARCOURT COMPANY 

2015 OMNIBUS INCENTIVE PLAN 

STOCK OPTION AWARD NOTICE 
 Houghton
Mifflin Harcourt Company (the “Company”) has previously established the Houghton Mifflin Harcourt Company 2015 Omnibus Incentive Plan (the “Plan”) and, pursuant thereto, the Company desires to grant to the Person
identified on Schedule I hereto (the “Grantee”) an option to acquire ownership of shares of the Company’s common stock, $0.01 par value per share (“Common Stock”), as of May 9, 2017 (the
“Grant Date”), subject to the terms and conditions set forth in this notice (“Award Notice”). 
 1. Award .
Subject to the terms and conditions set forth herein and in the Plan, the Company hereby grants to the Grantee an option to purchase from the Company that number of shares of Common Stock as set forth on Schedule I attached hereto at the
Exercise Price per share of Common Stock as also set forth on Schedule I attached hereto (the “Award”). 
 2. Vesting
and Exercisability; Expiration. 
 (a) Subject to the terms and conditions set forth herein and in the Plan, the Award shall
vest and become exercisable in equal installments on each of the first four (4) anniversaries of the Grant Date; provided, that, the Grantee remains in continuous service with the Company or any of its Subsidiaries on each such
vesting date. Except as otherwise provided in this Section 2, in the event that the Grantee’s continuous service is terminated by the Company or by the Grantee for any reason, the Grantee shall forfeit the unvested portion of the Award as
of the Grantee’s termination date. 
 (b) In the event that the Grantee’s continuous service is terminated by the Company without
Cause (as defined in the Grantee’s offer letter with Houghton Mifflin Harcourt Publishing Company, dated as of February 10, 2017) or due to the Grantee’s Disability or death or the Grantee resigns for Good Reason (as defined in the
HMH Holdings (Delaware), Inc. Change in Control Severance Plan), the unvested portion of the Award shall become immediately fully vested as of the Grantee’s termination date. 

(c) Notwithstanding any provision herein to the contrary, if the Committee has not made a provision for the substitution, assumption, exchange
or other continuation of the Award in connection with a Change in Control, then the unvested portion of the Award shall become fully vested and exercisable immediately prior to the Change in Control. 

(d) Subject to earlier termination as provided in this clause (d), the Award shall expire on the seventh anniversary of the Grant Date (the
“Expiration Date”). The portion of the Award that is vested as of the Grantee’s termination of continuous service with the Company shall remain exercisable following such termination as follows: (i) until the third
anniversary following the Grantee’s termination by the Company without Cause or the Grantee’s resignation for Good Reason but in no event later than the Expiration Date, (ii) until the one year anniversary

 
following the Grantee’s termination by the Company due to Disability or termination due to the Grantee’s death, but in no event later than the Expiration Date, or (iii) until the
30th day following the Grantee’s voluntary termination of continuous service with the Company, but in no event later than the Expiration Date. Thereafter, any unexercised portion of such Award shall be forfeited immediately. In the event that
the Grantee’s continuous service is terminated by the Company for Cause, the Grantee shall forfeit the Award, whether or not vested, as of the Grantee’s termination date. 

3. Method of Exercising Option. 

(a) Payment of Exercise Price. Subject to Section 8 hereof, the Award, to the extent vested, may be exercised by the Grantee, in
whole or in part, by (i) delivery of a written or electronic notice of exercise to the Company specifying the number of whole shares of Common Stock to be purchased; and (ii) satisfying the aggregate Exercise Price (1) in (A) cash,
(B) check, (C) cash equivalent and/or shares of Common Stock having an aggregate Fair Market Value at the time the Award is exercised (including, pursuant to procedures approved by the Committee, by means of attestation of ownership of a
sufficient number of shares of Common Stock in lieu of actual delivery of such shares to the Company) equal to the aggregate Exercise Price; provided, that such shares of Common Stock are not subject to any pledge or other security interest
or (D) any combination of the foregoing (A) - (C); or (2) by such other method as the Committee may permit, in its sole discretion, including without limitation: (A) in other property having a Fair Market Value on the date
of exercise equal to the aggregate Exercise Price; (B) if there is a public market for the shares of Common Stock at such time, by means of a broker-assisted “cashless exercise” pursuant to which the Company is delivered a copy of
irrevocable instructions to a stockbroker to sell the shares of Common Stock otherwise deliverable upon the exercise of the Award and to deliver promptly to the Company an amount equal to the aggregate Exercise Price; or (C) by means of a
“net exercise” procedure effected by withholding the minimum number of shares of Common Stock otherwise deliverable in respect of an Award that are needed to pay for the aggregate Exercise Price. 

(b) Tax Withholding. The Company shall have the right to require, prior to the issuance or delivery of any shares of Common Stock or
the payment of any cash pursuant to an Award made hereunder, payment by the Grantee of any federal, state, local or other taxes that may be required to be withheld or paid in connection with such Award. At the sole discretion of the Committee, the
Grantee may satisfy such withholding obligation (1) by allowing the Company to withhold whole shares of Common Stock that would otherwise be delivered to the Grantee, having an aggregate Fair Market Value, determined as of the date the
obligation to withhold or pay, equal to the minimum withholding taxes required in connection with an Award or by allowing the Company to withhold an amount of cash that would otherwise be payable to the Grantee, in the amount necessary to satisfy
any such obligation; (2) by paying such obligation in cash; (3) in cash from a broker-dealer acceptable to the Company to whom the Grantee has submitted an irrevocable notice of exercise; (4) by delivering shares of Common Stock or
(5) by any combination of the foregoing (1) through (4). 
 4. Issuance of Shares. Except as otherwise provided in the Plan, as
promptly as practical after receipt of written notification of exercise, full payment of the aggregate Exercise Price and any required income tax withholding and the execution of any required documentation, the 

  
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Company shall issue or transfer to the Grantee the number of shares of Common Stock with respect to which the Award or portion thereof has been so exercised, and shall deliver to the Grantee
either a certificate or certificates therefor or written evidence of the book entry notation evidencing the issuance thereof, registered in the Grantee’s name. 

5. Non-Transferability. The Award is subject to the restrictions on transferability set forth in
Section 15(b) of the Plan. 
 6. Rights as Shareholder. The Grantee shall have no rights as shareholder with respect to the shares of
Common Stock subject to the Award until the Grantee shall have become the holder of record of such shares, and except as otherwise provided in the Plan, no adjustment shall be made for dividends or distributions or other rights in respect of such
shares for which the date on which shareholders of record are determined for purposes of paying cash dividends on shares of Common Stock is prior to the date upon which the Grantee shall become the holder of record thereof. 

7. Adjustments. The Award granted hereunder is subject to adjustment pursuant to Sections 12 and 13 of the Plan. 

8. Applicable Securities Laws and Restrictions on Exercise. Shares of Common Stock issued pursuant to the Award granted under this
Award Notice shall not be sold or transferred unless either they first shall have been registered under the Securities Act or upon request by the Company, the Company first shall have been furnished with an opinion of legal counsel, reasonably
satisfactory to the Company, to the effect that such sale or transfer is exempt from the registration requirements of the Securities Act. In no event shall the Grantee be permitted to exercise this Award if such exercise would result in a violation
of applicable securities and other laws, as determined by the Committee in its sole discretion. In the event that the exercise of the Award is restricted pursuant to the foregoing, the Committee shall toll the applicable exercise period until such
restriction no longer exists. 
 9. Notice. Every notice or other communication relating to this Award Notice shall be in writing, and shall
be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided; provided, that, unless and until some other address be
so designated, all notices or communications by the Grantee to the Company shall be mailed or delivered to the Company at its principal executive office, and all notices or communications by the Company to the Grantee may be given to the Grantee
personally or may be mailed to the Grantee’s address as recorded in the records of the Company or any Subsidiary. 
 10. Non-Qualified Stock Options. The Award granted hereunder consists of stock options that are not intended to be incentive stock options within the meaning of Section 422 of the Code. 

11. Governing Law. This Award Notice shall be construed and interpreted in accordance with the laws of the State of Delaware without regard to
its conflict of law principles. 
 12. Plan. The terms and provisions of the Plan are incorporated herein by reference, a copy of which has
been provided or made available to the Grantee. In the event of a conflict or 

  
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inconsistency between the terms and provisions of the Plan and the provisions of this Award Notice, the Plan shall govern and control. All capitalized terms not defined herein shall have the
meaning ascribed to them as set forth in the Plan. 
 13. Interpretation. Any dispute regarding the interpretation of this Award Notice shall
be submitted by the Grantee or the Company to the Committee for review. The resolution of such a dispute by the Committee shall be binding on the Company and the Grantee. 

14. No Right to Continued Service. Nothing in this Award Notice shall be deemed by implication or otherwise to impose any limitation on any
right of the Company or any Subsidiary to terminate the Grantee’s service. 
 15. Severability. Every provision of this Award Notice is
intended to be severable and any illegal or invalid term shall not affect the validity or legality of the remaining terms. 
 16. Headings.
The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation of construction, and shall not constitute a part of this Award Notice. 

17. Clawback. To the extent required by applicable law (including, without limitation, Section 304 of the Sarbanes-Oxley Act and
Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) and/or the rules and regulations of NASDAQ or any other securities exchange or inter-dealer quotation service on which the Shares are listed or quoted, or if so
required pursuant to a written policy adopted by the Company, this Award shall be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements. 

18. Successors. The terms of this Award Notice shall be binding upon and inure to the benefit of the Company, its successors and assigns, and
the Grantee and the beneficiaries, executors, administrators, heirs and successors of the Grantee. 
 19. Entire Agreement. This Award Notice
and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereof 

20. Counterparts. This Award Notice may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument. 
 [signature page follows] 

  
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 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized
representative and the Grantee has executed this Agreement, effective as of the Grant Date. 
  

			
	HOUGHTON MIFFLIN HARCOURT COMPANY
		
	By:	 	 /s/ William F. Bayers

		 	William F. Bayers
		 	Executive Vice President and General Counsel
		
		 	 GRANTEE
  

		 	 /s/ John J. Lynch, Jr.

		 	John J. Lynch, Jr.

 SCHEDULE I 

AWARD 
  

					
	 GRANTEE
	 	NUMBER OF SHARES OF
COMMON STOCK	 	EXERCISE PRICE
($/share)
	John J. Lynch, Jr.	 	604,230	 	$12.95EX-10.28

 Exhibit 10.28 

John J. Lynch, Jr. 

New-Hire Time-Based Vesting Notice 

HOUGHTON MIFFLIN HARCOURT COMPANY 

2015 OMNIBUS INCENTIVE PLAN 

TIME-BASED RESTRICTED STOCK UNIT AWARD NOTICE 

Houghton Mifflin Harcourt Company (the “Company”) has previously established the Houghton Mifflin Harcourt Company 2015 Omnibus Incentive
Plan (the “Plan”) and, pursuant thereto, the Company desires to grant to the Person identified on Schedule I hereto (the “Grantee”) time-based Restricted Stock Units (“RSUs”) with respect to
the Company’s common stock, $0.01 par value per share (“Common Stock”), as of May 9, 2017 (the “Grant Date”), subject to the terms and conditions set forth in this notice (“Award Notice”).

 1. Award. Subject to the terms and conditions set forth herein and in the Plan, the Company hereby grants to the Grantee that number of
RSUs as set forth on Schedule I attached hereto (the “Award”). The Award shall be credited to a separate book-entry account maintained for the Grantee on the books of the Company. The Award shall vest and be settled in
accordance with Section 2 hereof. 
 2. Terms and Conditions. 

(a) The Award shall be one hundred percent (100%) unvested as of the Grant Date. Except as otherwise provided in the Plan and this Award
Notice, the Award shall vest and become non-forfeitable in equal increments on each of the first, second and third anniversaries of the Grant Date (each, a “Vesting Date”), provided that the Grantee remains in continuous service with the
Company or any of its Subsidiaries on the applicable Vesting Date. 
 (b) Except as otherwise provided in this Section 2, in the event
that the Grantee’s continuous service is terminated by the Company or by the Grantee for any reason, the Grantee shall forfeit the unvested Award as of the Grantee’s termination date. 

(c) In the event that the Grantee’s continuous service is terminated by the Company without Cause (as defined in the Grantee’s offer
letter with Houghton Mifflin Harcourt Publishing Company, dated as of February 10, 2017) or due to the Grantee’s Disability or death, or the Grantee resigns for Good Reason (as defined in the HMH Holdings (Delaware), Inc. Change in Control
Severance Plan), the unvested Award shall become immediately fully vested as of the Grantee’s termination date. 
 (d) Notwithstanding
any provision herein to the contrary, if the Committee has not made a provision for the substitution, assumption, exchange or other continuation of the Award in connection with a Change in Control, then the unvested Award shall become fully vested
immediately prior to the Change in Control. 
 (e) Within 30 days following each Vesting Date (or, if applicable, an earlier vesting date
pursuant to Section 2(c) or 2(d) above, which, in such event, shall also be hereinafter referred to as the “Vesting Date”), the Company shall settle the vested portion of the Award and shall therefore, subject to any required tax
withholding and the execution of any required 

 
documentation, (i) issue and deliver to the Grantee one share of Common Stock for each RSU (the “RSU Shares”) (and, upon such settlement, the RSUs shall cease to be credited
to the account) and (ii) enter the Grantee’s name as a shareholder of record with respect to the RSU Shares on the books of the Company. Alternatively, the Committee may, in its sole discretion, elect to pay cash or part cash and part RSU
Shares in lieu of settling the vested RSUs solely in RSU Shares. If a cash payment is made in lieu of delivering RSU Shares, the amount of such payment shall be equal to the Fair Market Value as of the Vesting Date of the RSU Shares less an amount
equal to any federal, state, local and non-U.S. income and employment taxes required to be withheld. 

(f) Simultaneously with the settlement and delivery of RSU Shares as contemplated by Section 2(e), the Grantee shall be entitled to
receive an additional amount (the “Dividend Equivalent Amount”) equal to the product of (i) the cash amount of each per share dividend that was paid by the Company on shares of its Common Stock (“Shares”) on
any date that Grantee’s RSUs remained outstanding hereunder (or, in the case of a dividend payable in Shares or other property, the per Share equivalent cash value of such dividend as determined in good faith by the Committee) and (ii) the
number of RSU Shares so delivered (or, if the RSUs are not settled exclusively in Shares, the number of RSU Shares that would have been delivered had they been settled exclusively in Shares). The Dividend Equivalent Amount shall be payable in cash
or, at the discretion of the Committee, in Shares with an equivalent Fair Market Value on the date of payment. The Company shall establish a bookkeeping methodology to account for the Dividend Equivalent Amount. The Dividend Equivalent
Amount shall not bear interest. 
 (g) The Company shall have the right to require prior to the issuance or delivery of any Shares or the
payment of any cash pursuant to the Award, payment by the Grantee of any federal, state, local or other taxes that may be required to be withheld or paid in connection with the Award. At the sole discretion of the Committee, the Grantee may satisfy
such withholding obligation (1) by allowing the Company to withhold whole Shares that would otherwise be delivered to the Grantee, having an aggregate Fair Market Value, determined as of the date the obligation to withhold or pay, equal to the
minimum withholding taxes required in connection with the Award or by allowing the Company to withhold an amount of cash that would otherwise be payable to the Grantee, in the amount necessary to satisfy any such obligation; (2) by paying such
obligation in cash; (3) by delivering Shares or (4) by any combination of the foregoing (1) through (3). 
 3. Non-Transferability. The Award is subject to the restrictions on transferability set forth in Section 15(b) of the Plan. In addition, with respect to any RSU Shares delivered upon settlement of the
RSUs, the Grantee agrees to comply with any written holding requirement policy adopted by the Company for employees. 
 4. Rights as
Shareholder. The Grantee shall have no rights as shareholder with respect to the Shares subject to the Award unless, until and to the extent that (i) the Company shall have issued and delivered to the Grantee the RSU Shares (via
certificates or book entry notation) and (ii) the Grantee’s name shall have been entered as a shareholder of record with respect to such RSU Shares on the books of the Company. 

  
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 5. Adjustments. The Award is subject to adjustment pursuant to Sections 12 and 13 of the Plan. 

6. Applicable Securities Laws. Shares issued pursuant to the Award shall not be sold or transferred unless either they first shall have been
registered under the Securities Act or, upon request by the Company, the Company first shall have been furnished with an opinion of legal counsel, reasonably satisfactory to the Company, to the effect that such sale or transfer is exempt from the
registration requirements of the Securities Act. 
 7. Notice. Every notice or other communication relating to this Award Notice shall be in
writing, and shall be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided; provided, that,
unless and until some other address be so designated, all notices or communications by the Grantee to the Company shall be mailed or delivered to the Company at its principal executive office, and all notices or communications by the Company to the
Grantee may be given to the Grantee personally or may be mailed to the Grantee’s address as recorded in the records of the Company or any Subsidiary. 

8. Governing Law. This Award Notice shall be construed and interpreted in accordance with the laws of the State of Delaware without regard to
its conflict of law principles. 
 9. Plan. The terms and provisions of the Plan are incorporated herein by reference, a copy of which has
been provided or made available to the Grantee. In the event of a conflict or inconsistency between the terms and provisions of the Plan and the provisions of this Award Notice, the Plan shall govern and control. All capitalized terms not defined
herein shall have the meaning ascribed to them as set forth in the Plan. 
 10. Interpretation. Any dispute regarding the interpretation of
this Award Notice shall be submitted by the Grantee or the Company to the Committee for review. The resolution of such a dispute by the Committee shall be binding on the Company and the Grantee. 

11. No Right to Continued Service. Nothing in this Award Notice shall be deemed by implication or otherwise to impose any limitation on any
right of the Company or any Subsidiary to terminate the Grantee’s service. 
 12. Severability. Every provision of this Award Notice is
intended to be severable and any illegal or invalid term shall not affect the validity or legality of the remaining terms. 
 13. Headings.
The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation of construction, and shall not constitute a part of this Award Notice. 

14. Section 409A. It is intended that the Award be exempt from or comply with Section 409A of the Code and this Award Notice shall be
interpreted consistent therewith. 
 15. Clawback. To the extent required by applicable law (including, without limitation, Section 304
of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) and/or the rules and regulations of NASDAQ or any other 

  
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securities exchange or inter-dealer quotation service on which the Shares are listed or quoted, or if so required pursuant to a written policy adopted by the Company, this Award shall be subject
(including on a retroactive basis) to clawback, forfeiture or similar requirements. 
 16. Successors. The terms of this Award Notice shall be
binding upon and inure to the benefit of the Company, its successors and assigns, and the Grantee and the beneficiaries, executors, administrators, heirs and successors of the Grantee. 

17. Entire Agreement. This Award Notice and the Plan contain the entire agreement and understanding of the parties hereto with respect to the
subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereof. 
 18.
Counterparts. This Award Notice may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 

[signature page follows] 

  
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 IN WITNESS WHEREOF, the Company has caused this Award Notice to be executed by its duly
authorized representative and the Grantee has executed this Award Notice, effective as of the Grant Date. 
  

			
	HOUGHTON MIFFLIN HARCOURT COMPANY
		
	By:	 	 /s/ William F. Bayers

		 	William F. Bayers
		 	Executive Vice President and General Counsel
	
	GRANTEE
	
	 /s/ John J. Lynch, Jr.

John J. Lynch, Jr.

 SCHEDULE I 

AWARD 
  

			
	 GRANTEE
	 	NUMBER OF RSUs
	John J. Lynch, Jr.	 	38,610

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