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EXHIBIT 4.10  

 
 

THIRD SUPPLEMENTAL INDENTURE    
    

        THIRD SUPPLEMENTAL INDENTURE (this "Third Supplemental Indenture") is dated as of February 7, 2003, by and
among Houghton Mifflin Company, a Massachusetts company (the "Company"), and State Street Bank and Trust Company, as successor to The First National
Bank of Boston (the "Trustee"). 

WITNESSETH:  

        WHEREAS, the Company and the Trustee have entered into an Indenture, dated as of March 15, 1994, as supplemented by the First Supplemental Indenture, dated
as of July 27, 1995, and the Second Supplemental Indenture, dated as of December 30, 2002 (the "Indenture"), relating to, among other
things, the issuance of $125,000,000 aggregate principal amount of 7.00% Senior Notes due 2006 (the "2006 Notes"); 

        WHEREAS,
Section 902 of the Indenture provides that provisions in the Indenture relating to the 2006 Notes may be changed, supplemented or amended with the consent of the holders
of not less than a majority in principal amount of the outstanding 2006 Notes (the "Requisite Consents"); 

        WHEREAS,
the Company has offered to purchase for cash all of the outstanding 2006 Notes (the "Tender Offer") upon the terms and subject to
the conditions set forth in the Offer to Purchase and Consent Solicitation Statement, dated January 15, 2003, as amended or supplemented from time to time (the "Offer to
Purchase"), and the Letter of Transmittal and Consent, dated January 15, 2003, as amended or supplemented from time to time, and in connection therewith has solicited
consents from holders of the 2006 Notes to proposed amendments (the "Amendments") to the Indenture as described in the Offer to Purchase; 

        WHEREAS,
the Tender Offer, and the effectiveness of this Third Supplemental Indenture and the Amendments, is conditioned upon, among other things, obtaining of the Requisite Consents to
the Amendments by the Consent Payment Deadline (as defined in the Offer to Purchase) and satisfaction
of the Financing Condition (as described and defined in the Offer to Purchase, unless waived by the Company); 

        WHEREAS,
the Company has received and delivered to the Trustee the Requisite Consents relating to amendments to the Indenture with respect to the 2006 Notes; 

        WHEREAS,
the Company has been authorized by a resolution of its Board of Directors to execute, deliver and perform its obligations under this Third Supplemental Indenture; and 

        NOW,
THEREFORE, in consideration of the premises and covenants and agreements contained herein, and for other good and valuable consideration the receipt of which is hereby acknowledged,
and for the benefit of the holders of the 2006 Notes, and no other series of securities which may be issued under the Indenture, the Company and the Trustee hereby agree as follows: 

 
 

ARTICLE ONE    
    

        Section 1.1    Definitions.    

        Capitalized
terms used in this Third Supplemental Indenture and not otherwise defined herein shall have the respective meanings ascribed to such terms in the Indenture. 

 
 

ARTICLE TWO    
    

        Section 2.1    Amendments.    

        Effective
upon the Settlement Date (as defined below), the following provisions of the Indenture are hereby amended solely with respect to the 2006 Notes: 

        (a)   Section 101
of the Indenture solely as it relates to the 2006 Notes shall be amended by deleting the definition of "Officers' Certificate" in its entirety and
substituting in lieu thereof the following: 

        ""Officers'
Certificate" means a certificate signed by the Chairman of the Board and the President or a Vice President, and by the Treasurer, an Assistant Treasurer, the Secretary and
Clerk or by an Assistant Clerk, of the Company, and delivered to the Trustee." 

        (b)   Section 102
of the Indenture solely as it relates to the 2006 Notes shall be amended by deleting the second paragraph of Section 102 and substituting in
lieu thereof the following: 

        "Every
certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include: 

        (1)   a
statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein relating thereto: 

        (2)   a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are
based; 

        (3)   a
statement that, in the opinion of each such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with; and 

        (4)   a
statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with." 

        (c)   Section 403
of the Indenture solely as it relates to the 2006 Notes shall be amended as follows: 

          (i)  by
deleting Section 403(4) in its entirety and replacing it with the words "INTENTIONALLY OMITTED;" 

         (ii)  by
deleting Section 403(5) in its entirety and replacing it with the words "INTENTIONALLY OMITTED;" 

        (iii)  by
deleting Section 403(6) in its entirety and replacing it with the words "INTENTIONALLY OMITTED;" 

        (iv)  by
deleting Section 403(7) in its entirety and substituting in lieu thereof the following: 

        "(7) the
Company has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to
the satisfaction and discharge of the entire indebtedness on all Outstanding Securities of any such series have been complied with." 

        (d)   Section 501
of the Indenture solely as it relates to the 2006 Notes shall be amended as follows: 

          (i)  by
deleting Section 501(4) in its entirety and replacing it with the words "INTENTIONALLY OMITTED;" 

         (ii)  by
deleting Section 501 (5) in its entirety and replacing it with the words "INTENTIONALLY OMITTED;" 

        (e)   Section 801
of the Indenture solely as it relates to the 2006 Notes shall be eliminated in its entirety and be replaced with the words "INTENTIONALLY OMITTED." 

        (f)    Section 802
of the Indenture solely as it relates to the 2006 Notes shall be eliminated in its entirety and be replaced with the words "INTENTIONALLY OMITTED." 

        (g)   Section 901
of the Indenture solely as it relates to the 2006 Notes shall be amended as follows: 

          (i)  by
deleting Section 901(5) in its entirety and substituting in lieu thereof the following: 

        "(5) to
secure the Securities; or" 

         (ii)  by
deleting Section 901(7) in its entirety and substituting in lieu thereof the following: 

        "(7) to
comply with Section 607; or" 

        (h)   Section 902
of the Indenture solely as it relates to the 2006 Notes shall be amended by deleting the second paragraph of Section 902(1) in its entirety and
substituting in lieu thereof the following: 

        "(1) change
the Stated Maturity of the principal of or any installment of principal of or interest on, any Security, or reduce the principal amount thereof or the rate of
interest thereon or any premium payable upon the redemption thereof, or change any obligation of the Company to pay additional amounts pursuant to Section 1004 (except as permitted by
Section 901(1)), or reduce the amount of the principal of an Original Issue Discount Security that would be due and payable upon a declaration of acceleration of the Maturity thereof pursuant
to Section 502 or change the coin or currency in which any Security or any premium or interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment
on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date), or" 

        (i)    Section 1003
of the Indenture solely as it relates to the 2006 Notes shall be amended by deleting the first, second, third and fourth paragraphs in their
entirety. 

        (j)    Section 1005
of the Indenture solely as it relates to the 2006 Notes shall be eliminated in its entirety and be replaced with the words "INTENTIONALLY OMITTED." 

        (k)   Section 1007
of the Indenture solely as it relates to the 2006 Notes shall be eliminated in its entirety and be replaced with the words "INTENTIONALLY OMITTED." 

        (l)    Section 1008
of the Indenture solely as it relates to the 2006 Notes shall be eliminated in its entirety and be replaced with the words "INTENTIONALLY OMITTED." 

        (m)  Section 1009
of the Indenture solely as it relates to the 2006 Notes shall be eliminated in its entirety and be replaced with the words "INTENTIONALLY OMITTED." 

        (n)   Section 1011
of the Indenture solely as it relates to the 2006 Notes shall be amended as follows: 

          (i)  by
deleting Section 1011(4) in its entirety and replacing it with the words "INTENTIONALLY OMITTED;" 

         (ii)  by
deleting Section 1011(5) in its entirety and replacing it with the words "INTENTIONALLY OMITTED;" 

        (iii)  by
deleting Section 1011(6) in its entirety and replacing it with the words "INTENTIONALLY OMITTED;" 

        (iv)  by
deleting Section 1011(7) in its entirety and substituting in lieu thereof the following: 

        "(7) the
Company has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to
the defeasance contemplated in this Section have been complied with." 

 
 

ARTICLE THREE    
    

        Section 3.1    Effectiveness; Termination.    

        (a)   This
Third Supplemental Indenture is entered into pursuant to and consistent with Section 902 of the Indenture. 

        (b)   This
Third Supplemental Indenture shall become effective and binding on the Company, the Trustee and the holders of the 2006 Notes upon the execution and delivery by the
parties to this Third Supplemental Indenture; provided, however, that the Amendments to the Indenture referred to in Article Two above will remain in
effect in the form they existed prior to the execution of this Third Supplemental Indenture, the deletions and amendments of the Amendments will not become operative, and the terms of the Indenture
will not be amended, modified or deleted, in each case unless and until the date (the "Settlement Date") that the Company has accepted for payment the tender of 2006 Notes and such payment has been
made. On the Settlement Date, the Amendments will automatically be deleted or amended as contemplated by Article Two above. 

        Section 3.2    Miscellaneous.    

        (a)   On
and after the Settlement Date, each reference in the Indenture to "the Indenture," "this Indenture," "hereunder," "hereof" or "herein" shall mean and be a reference
to the Indenture as supplemented by this Third Supplemental Indenture unless the context otherwise requires. 

        (b)   Except
as specifically amended above, the Indenture shall remain in full force and effect and is hereby ratified and confirmed, and no Amendments will affect any series
of notes issued under the Indenture other than the 2006 Notes, including any outstanding 7.20% Senior Notes due 2011 of the Company. 

        (c)   This
Third Supplemental Indenture shall be construed and enforced in accordance with, and interpreted under, the internal laws of the State of New York. 

        (d)   This
Third Supplemental Indenture may be executed in several counterparts, all of which together shall constitute one agreement binding on all parties, notwithstanding
that all parties have not signed the same counterpart. 

        (e)   Section
titles are for descriptive purposes only and shall not control or alter the meaning of this Third Supplemental Indenture as set forth in the text. 

        (f)    Each
of the Company and the Trustee hereby confirms and reaffirms the Indenture in every particular respect except as amended by this Third Supplemental Indenture. 

        (g)   All
agreements of the Issuer in this Third Supplemental Indenture shall bind its successors and assigns whether so expressed or not. All agreements of the Trustee in
this Third Supplemental Indenture shall bind its successors and assigns whether so expressed or not. 

        (h)   In
case any provision in this Third Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby. 

        (i)    Nothing
in this Third Supplemental Indenture, express or implied, shall give to any Person, other than the parties hereto and their successors under the Indenture and
the holders of the 2006 Notes, any benefit or any legal or equitable right, remedy or claim under the Indenture. 

        (j)    This
Third Supplemental Indenture shall be interpreted to comply in every respect with the Trust Indenture Act of 1939, as amended (the "TIA"). If any provision of this
Third Supplemental Indenture limits, qualifies or conflicts with the duties imposed by the TIA, the imposed duties shall control and remain obligatory. 

        IN
WITNESS WHEREOF, the Company and the Trustee have caused this Third Supplemental Indenture to be duly executed by their respective officers thereunto duly authorized as of the day and
year first written above. 

	 	 	HOUGHTON MIFFLIN COMPANY
	    	 	 	 	 	 	 
	

 	
 	

By:	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	    	 	 	 	 	 	 
	    	 	 	 	 	 	 
	 	 	STATE STREET BANK AND TRUST

COMPANY
	    	 	 	 	 	 	 
	

 	
 	

By:	
 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

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THIRD SUPPLEMENTAL INDENTURE

ARTICLE ONE

ARTICLE TWO

ARTICLE THREEExhibit 10.1

 

ASSUMPTION
AGREEMENT

 

This Assumption Agreement, dated as of
December 30, 2002, is entered into by and between Versailles Acquisition
Corporation, a Delaware corporation (“VAC”)
and Houghton Mifflin Company, a Massachusetts corporation (“HM”).

 

WHEREAS, VAC has entered into the Share
Purchase Agreement with Seller and Vivendi Universal, S.A., pursuant to which
VAC has agreed to acquire and Seller has agreed to sell all of the outstanding
capital stock of HM (the “Acquisition”) on the date hereof,

 

WHEREAS, immediately following the
consummation of the Acquisition and the filing of Articles of Consolidation
with the Secretary of the Commonwealth of Massachusetts, VAC will merge with
and into HM (the “Merger”); and

 

WHEREAS, HM will be the surviving entity.

 

NOW, THEREFORE, the parties hereto agree as
follows:

 

Reference is made to that certain Credit and
Guaranty Agreement (the “Credit
Agreement”) dated
as of December 30, 2002 by and among VAC, VERSAILLES U.S. HOLDING INC., a
Delaware corporation, the Lenders party thereto from time to time, CIBC WORLD
MARKETS CORP. and GOLDMAN SACHS CREDIT PARTNERS L.P., as Joint Lead Arrangers
and Joint Bookrunners, GSCP and DEUTSCHE BANK SECURITIES INC., as
Co-Syndication Agents, FLEET SECURITIES, Inc. as Co–Documentation Agent,
and CANADIAN IMPERIAL BANK OF COMMERCE, as Administrative Agent and as
Collateral Trustee (“CIBC”).  Capitalized terms used but not otherwise
defined herein shall have the meanings provided in the Credit Agreement.

 

It is hereby acknowledged and agreed by HM
that as of the date hereof HM has assumed all of the rights, obligations and
liabilities of VAC under the Credit Documents and under the Bridge Facility
Documents.

 

Without limiting any of the foregoing, HM
hereby (i) agrees that HM will comply with all the terms and conditions of
the Pledge and Security and Collateral Trust Agreement dated as of the date
hereof made between VAC and CIBC, as Collateral Trustee, as if it were an
original signatory thereto, (ii) grants to Collateral Trustee for the
benefit of the Secured Parties (as such term is defined in the Pledge and
Security and Collateral Trust Agreement) a security interest in all of HM’s
right, title and interest in and v to all Collateral (as such term is defined
in the Pledge and Security and Collateral Trust Agreement) of HM, in each case
whether now or hereafter existing or in which HM now has or hereafter acquires
an interest and wherever the same may be located and (iii) grants the
Trust Estate (as such term is defined in the Pledge and Security and Collateral
Trust Agreement) to hold in trust for the benefit of the Secured Parties in
accordance with the terms therein.  All
such Collateral and Trust Estate shall be deemed to be part of the Collateral
and Trust Estate, as applicable, hereafter subject to each of the terms and
conditions of the Pledge and Security and Collateral Trust Agreement.

 

The parties hereto understand and agree that
the provisions of this Assumption Agreement are for the benefit of (i) the
Agents and Lenders under the Credit Agreement and this

 

 

Assumption Agreement is
executed by the Administrative Agent in acknowledgment thereof, and (ii) the
Agents and Lenders (as defined therein) under the Bridge Facility Documents and
this Assumption Agreement is also executed by the Administrative Agent (as
defined therein) in acknowledgement thereof.

 

This Assumption Agreement shall be governed
by and construed in accordance with the laws of the State of New York.  This Assumption Agreement may be executed in
any number of counterparts, each of which shall constitute an original and all
of which taken together shall constitute one and the same instrument.

 

[REMAINDER OF THE PAGE INTENTIONALLY LEFT
BLANK]

 

2

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HOUGHTON MIFFLIN COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Paul D. Weaver

  
	
   

  	
   

  	
  Name: Paul
  D. Weaver

  
	
   

  	
   

  	
  Title:
  Senior Vice President, General Counsel and Clerk

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VERSAILLES ACQUISITION CORPORATION,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Jonathan Goodman

  
	
   

  	
   

  	
  Name: Jonathan
  Goodman

  
	
   

  	
   

  	
  Title: Vice
  President, Assistant Secretary and Assistant Treasurer

  

 

3

 

Accepted and agreed:

CIBC WORLD MARKETS CORP., 

as Administrative Agent

 

	
  By:

  	
  /s/ Deborah Strek

  	
   

  
	
   

  	
  Name: Deborah Strek

  
	
   

  	
  Title: Managing Director

  

 

4

 

Accepted and agreed:

GOLDMAN SACHS CREDIT PARTNERS L.P.,
as Administrative Agent under the
Bridge Loan Agreement

 

	
  By:

  	
  /s/

  	
   

  
	
   

  	
  Authorized Signatory

  

 

5

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