Document:

EX-10.36

 Exhibit 10.36 

Time-Based Vesting 

HMH HOLDINGS (DELAWARE), INC. 

2012 MANAGEMENT INCENTIVE PLAN 

TIME-BASED RESTRICTED STOCK UNIT AWARD NOTICE 

Houghton Mifflin Harcourt Company (formerly known as HMH Holdings (Delaware), Inc.) (the “Company”) has previously established the HMH
Holdings (Delaware), Inc. 2012 Management 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 [            ], 2015 (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 due to the Grantee’s Disability or due to the Grantee’s death, the unvested Award shall become immediately fully vested as of the Grantee’s termination
date. 
 (d) Notwithstanding any provision herein to the contrary, (i) if the Committee has made a provision for the substitution,
assumption, exchange or other continuation of the Award in connection with a Change in Control, then in the event that the Grantee’s continuous service is terminated by the Company other than for Cause, and other than due to death or Disability
(which shall be governed by Section 2(c) above), within one (1) year following the occurrence of the Change in Control, the unvested Award shall become immediately fully vested; or (ii) 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 9.3 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. 

  
 2 

 5. Adjustments. The Award is subject to adjustment pursuant to Section 3.2 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. 

  
 3 

 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 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] 

  
 4 

 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:		  

	Name:		William F. Bayers
	Title:		Executive Vice President and General Counsel
	
	GRANTEE
		
			  

	Name:		

 SCHEDULE I 

AWARD 
  

			
	 GRANTEE
	  	NUMBER OF RSUsExhibit 10.1 - Amendment to Loan Agreement

Exhibit 10.1

AMENDMENT TO LOAN AGREEMENT

This Amendment to Loan Agreement (this “Amendment”), entered into on February 25, 2015 and effective as of February 28, 2015 (the “Effective Date”), by and between JPP II, LLC and JPP, LLC, each a Delaware limited liability company, as lender (collectively, together with their respective successors and assigns, including any lawful holder of any portion of the Indebtedness, “Lender”), and SEARS, ROEBUCK AND CO., SEARS DEVELOPMENT CO. and KMART CORPORATION, as borrower (individually or collectively, as the context may require, jointly and severally, together with their respective permitted successors and assigns, “Borrower”), amends that certain Loan Agreement, dated as of September 15, 2014 (the “Loan Agreement”; all capitalized terms used but not defined herein shall have the respective meanings ascribed to such terms in the Loan Agreement (as amended hereby)).
WHEREAS, on the Business Day immediately succeeding the Effective Date, Borrower shall repay to Lender $200,000,000 of Principal Indebtedness, together with all interest accrued thereon (the “Repayment”);
WHEREAS, in connection with the Repayment, Lender shall deliver to Borrower releases of the Mortgages encumbering the Released Properties;
WHEREAS, Lender has agreed to extend the Maturity Date and give Borrower the right obtain an additional advance under the Loan Agreement of up to $200,000,000, subject to the conditions set forth herein; and
WHEREAS, Lender and Borrower desire to amend the Loan Agreement as of the Effective Date to effectuate the foregoing and as otherwise set forth herein.
NOW THEREFORE, in consideration of the mutual premises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby represent, warrant, covenant and agree as follows:
Section 1.    Repayment.  Borrower shall repay to Lender $200,000,000 of Principal Indebtedness, together with all interest accrued thereon, on the Business Day immediately succeeding the Effective Date. 
Section 2.    Amendments of Loan Agreement.  Lender and Borrower hereby agree that, as of the Effective Date, the terms of the Loan Agreement shall be amended as hereinafter set forth:
(a)The defined term “Maturity Date” is hereby deleted in its entirety and replaced with the following:

	
			
	 
	1
	 

““Maturity Date” means the earlier of (i) June 1, 2015, (ii) the REIT Completion Date and (iii) such date as may result from acceleration of the Loan in accordance with this Agreement.”
(b)The defined term “Properties” is hereby deleted in its entirety and replaced with the following:
““Properties” means the real property on the list of properties set forth on the Retained Property List (other than any such property that is replaced pursuant to Section 2.1(b)), together with any Substitution Property encumbered by a Mortgage and any Released Properties with respect to which either a new Mortgage has been recorded with respect thereto or the original unrecorded Release Documents have been returned to Lender pursuant to Section 1.1(b), in each case, as described in greater detail under the applicable Mortgage, together with all buildings and other improvements  thereon (other than leasehold improvements that are the property of a Tenant under a Lease at a Property) and all personal property owned by Borrower and encumbered by the Mortgages, together with all rights pertaining to such property; and “Property” means an individual property included in the Properties or all Properties collectively, as the context may require.
(c)The defined term “REIT Completion Date” is hereby added to the Definitions and defined as follows:
““REIT Completion Date” means the date of receipt by the Guarantor or any of its subsidiaries of sale proceeds pursuant to a sale/leaseback or similar transaction involving the sale or other transfer by the Guarantor or any of its subsidiaries of at least 200 properties to a newly formed real estate investment trust capitalized in part through a rights offering to the stockholders of the Guarantor.”
(d)The defined term “Release Documents” is hereby added to the Definitions and defined as follows:
““Release Documents” means, with respect to each Released Property, instruments prepared by Borrower and reasonably satisfactory to Lender, executed and delivered by Lender, releasing and discharging all Liens on such Released Property, including the Lien of the applicable Mortgage and any fixture filings.”
(e)The defined term “Released Properties” is hereby added to the Definitions and defined as follows:
““Released Properties” means those Properties set forth on the Released Properties List.”
(f)The defined term “Released Properties List” is hereby added to the Definitions and defined as follows:

	
			
	 
	2
	 

““Released Properties List” means that certain list of “released properties” certified to Lender in the officer’s certificate of Borrower, dated as of February 25, 2015, and delivered to Lender.”
(g)The defined term “Retained Properties List” is hereby added to the Definitions and defined as follows:
““Retained Properties List” means that certain list of “retained properties” certified to Lender in the officer’s certificate of Borrower, dated as of February 25, 2015, and delivered to Lender.”
(h)The defined term “Mortgage” is hereby amended by deleting the words “as of the Closing Date” and replacing such words with “and delivered to Lender from time to time”.
(i)Section 1.1(b) is hereby deleted in its entirety and replaced with the following:
“At Borrower’s request, on no less than four Business Days’ notice to Lender, Lender shall make a single advance to Borrower (the “Delayed Advance”) in an amount specified by Borrower up to the Delayed Advance Amount on any Business Day prior to the Maturity Date, subject to the following conditions precedent: (i) no Event of Default is continuing as of such date; (ii) (x) with respect to any Released Property for which the applicable Release Documents have not been recorded as of such date in the applicable recording offices, Borrower shall deliver such Release Documents to Lender and an officer’s certificate of Borrower certifying that none of such Release Documents have been recorded (provided, that if the Release Documents in respect of any Released Property identified in such officer’s certificate has not yet been delivered to Borrower pursuant to Section 1.6 hereof, such Release Documents shall be deemed to have been delivered by Lender pursuant to Section 1.6 and returned by Borrower in satisfaction of the requirements of this Section 1.1(b)(ii)(x)) and (y) with respect to any Property for which Borrower has recorded one or more Release Documents, Borrower shall comply with Section 2.1(b)(w) and Section 2.1(b)(x) with respect to the Released Properties for which the Release Documents have been recorded prior to the funding of the Delayed Advance (and, references to “Substitution Property” in such Sections shall be deemed to mean “Released Property” for the purposes of this Section 1.1(b)); provided, that if Borrower has encumbered or otherwise sold, transferred or disposed of any such Released Property, then Borrower shall provide Lender with such additional collateral satisfactory to Lender in its sole discretion (each, an “Additional Property”) and shall comply with Section 2.1(b)(w), Section 2.1(b)(x) and Section 2.2 with respect to such Additional Property (and, reference to “Substitution Property” or “Property” in such Section shall be deemed to mean “Additional Property” for the purposes of this Section 1.1(b)); and (iii) Borrower shall pay (x) a fee in respect of such Delayed Advance in an amount equal to 0.25% of the amount of such Delayed Advance and (y) all reasonable out-of-pocket expenses incurred by Lender in connection with such Delayed Advance and the satisfaction of the conditions in this Section 1.1(b).  Interest on the Delayed Advance shall begin to accrue on the date that the Delayed Advance is made to Borrower.

	
			
	 
	3
	 

The Delayed Advance is not in the nature of a revolving credit facility, and amounts borrowed and repaid hereunder may not be re-borrowed.  Within 30 days following the funding of the Delayed Advance, Borrower shall comply with Section 2.2(a), Section 2.2(b) and Section 2.2(c) with respect to the Released Properties for which the Release Documents have been recorded. To the extent that the Delayed Advance is less than the Delayed Advance Amount, Lender shall agree to either reduce the number of Release Documents required to be delivered to Lender pursuant to this Section 1.1(b)(x) or the number of Released Properties for which Borrower must comply with Section 1.1(b)(y), in each case in Lender’s reasonable discretion.”
(j)Section 1.1(d) is hereby deleted in its entirety.
(k)The following Section 1.6 is hereby added to the Loan Agreement.
“Section 1.6.    Lender’s Obligation to Deliver Release Documents.
Borrower shall prepare and deliver to Lender the Release Documents as promptly as practicable after February 25, 2015, which Release Documents shall be reasonably acceptable to Lender, and Lender shall promptly execute and deliver the same following receipt from Borrower.  Lender shall otherwise reasonably cooperate with Borrower at Borrower’s request in effectuating the releases of the Released Properties contemplated hereby.”
Section 3.         Miscellaneous.  
(a)All of the terms and conditions of the Loan Agreement are incorporated herein by reference with the same force and effect as if fully set forth herein.  Except as expressly amended hereby, the Loan Agreement and each of the other Loan Documents remains in full force and effect in accordance with its terms.  
(b)Borrower hereby represents and warrants that (i) Borrower has the power and authority to enter into this Amendment, and to perform its obligations under the Loan Agreement as amended hereby, (ii) Borrower has by proper action duly authorized the execution and delivery of this Amendment by Borrower and (iii) this Amendment has been duly executed and delivered by Borrower and constitutes Borrower’s legal, valid and binding obligations, enforceable against Borrower in accordance with its terms, subject to bankruptcy, insolvency and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles.  
(c)This Amendment shall be governed by and construed and interpreted in accordance with the laws of the State of New York without regard to principles of conflicts of law.
(d)Borrower hereby (1) ratifies and confirms all of its obligations under the Loan Agreement and each of the other Loan Documents and (2) acknowledges and agrees that such obligations remain in full force and effect, binding on and enforceable against it in accordance with the terms, covenants and conditions of the Loan Agreement as amended hereby and the other Loan Documents, in each case, without impairment.

	
			
	 
	4
	 

(e)This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.  Copies of originals, including copies delivered by facsimile, pdf or other electronic means, shall have the same import and effect as original counterparts and shall be valid, enforceable and binding for the purposes of this Amendment.

[Signatures appear on following page]

	
			
	 
	5
	 

IN WITNESS WHEREOF, for good and valuable consideration, the sufficiency of which is hereby acknowledged and agreed, the parties hereto have executed and delivered this Amendment as of the date first hereinabove set forth.
	
	
	

LENDER:

JPP, LLC, 
a Delaware limited liability company 

   
By: /s/ Edward S. Lampert
       Name:   Edward S. Lampert 
       Title:   Sole Member   

JPP II, LLC, 
a Delaware limited liability company 

   
By: /s/ Edward S. Lampert
       Name:   Edward S. Lampert 
       Title:   Manager   

   

	 

	
			
	Amendment to Loan Agreement
	 
	 

	
	
	BORROWER:
SEARS DEVELOPMENT CO., 
a Delaware corporation 

By: /s/ Robert A. Riecker 
       Name:   Robert A. Riecker 
       Title:   Vice President

SEARS, ROEBUCK & CO., 
a New York corporation 

By: /s/ Robert A. Riecker
       Name:   Robert A. Riecker 
       Title:   Vice President, Controller and
      Chief Accounting Officer

KMART CORPORATION, 
a Michigan corporation 

By: /s/ Robert A. Riecker
       Name:   Robert A. Riecker 
       Title:   Vice President, Controller and
      Chief Accounting Officer

	 

	
			
	Amendment to Loan Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}]]