Document:

Exhibit 10.6

 

THE SECURITIES OFFERED
HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY SECTION 3(b) OF THE SECURITIES ACT OF 1933, AS AMENDED, AND
THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE "1933 ACT)

 

CAN $12,000.00 

 

LEGENDARY VENTURES, INC.

4% CONVERTIBLE REDEEMABLE NOTE

DUE JUNE 20, 2015

 

FOR VALUE RECEIVED,
Legendary Ventures, Inc. (the “Company”) promises to pay to the order of ZEESHAN SAEED and its authorized successors
and permitted assigns ("Holder"), the aggregate principal face amount of Twelve Thousand Canadian dollars (CAN
$12,000.00) on June 20, 2015 ("Maturity Date") and to pay interest on the principal amount outstanding hereunder
at the rate of 4% per annum commencing on June 20, 2014. The interest will be paid to the Holder in whose name this Note is registered
on the records of the Company regarding registration and transfers of this Note. The Company will pay each interest payment and
the outstanding principal due upon this Note before or on the Maturity Date, less any amounts required by law to be deducted or
withheld, to the Holder of this Note by check or wire transfer addressed to such Holder at the last address appearing on the records
of the Company. The forwarding of such check or wire transfer shall constitute a payment of outstanding principal hereunder and
shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented by such check or wire
transfer. Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein.

 

This Note is subject
to the following additional provisions:

 

1.       This
Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the
Holder surrendering the same. No service charge will be made for such registration or transfer or exchange, except that Holder
shall pay any tax or other governmental charges payable in connection therewith.

 

2.       The
Company shall be entitled to withhold from all payments any amounts required to be withheld under applicable laws.

____

Initials

    	1

    	 

    

 

3.       This
Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended ("Act") and
applicable state securities laws. Any attempted transfer to a non-qualifying party shall be treated by the Company as void. Prior
to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name this
Note is duly registered on the Company's records as the owner hereof for all other purposes, whether or not this Note be overdue,
and neither the Company nor any such agent shall be affected or bound by notice to the contrary. Any Holder of this Note electing
to exercise the right of conversion set forth in Section 4(a) hereof, in addition to the requirements set forth in Section 4(a),
and any prospective transferee of this Note, also is required to give the Company written confirmation that this Note is being
converted ("Notice of Conversion") in the form annexed hereto as Exhibit A. The date of receipt (including
receipt by telecopy) of such Notice of Conversion shall be the Conversion Date.

 

4.       (a)       The
Holder of this Note is entitled, at its option, at any time, and after full cash payment for the shares convertible hereunder,
to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock
(the "Common Stock") without restrictive legend of any nature, at a price ("Conversion Price")
for each share of Common Stock equal to $0.04 USD per share. If the shares have not been delivered within 3 business days, the
Notice of Conversion may be rescinded. Such conversion shall be effectuated by the Company delivering the shares of Common Stock
to the Holder within 3 business days of receipt by the Company of the Notice of Conversion. Once the Holder has received such
shares of Common Stock, the Holder shall surrender this Note to the Company, executed by the Holder evidencing such Holder's intention
to convert this Note or a specified portion hereof, and accompanied by proper assignment hereof in blank. Accrued but unpaid interest
shall be subject to conversion. No fractional shares or scrip representing fractions of shares will be issued on conversion, but
the number of shares issuable shall be rounded tothe nearest whole share.

 

           (b)       Interest
on any unpaid principal balance of this Note shall be paid at the rate of 4% per annum. Interest shall be paid by the Company
in Common Stock ("Interest Shares"). The Holder may, at any time, send in a Notice of Conversion to the Company for
Interest Shares based on the formula provided in Section 4(a) above. The dollar amount converted into Interest Shares shall be
all or a portion of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice.

 

           (c)       In
case of any Sale Event in connection with which this Note is not redeemed or converted, the Company shall cause effective provision
to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert this
Note into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification,
capital reorganization or other change, consolidation or merger by a holder of the number of shares of Common Stock that could
have been purchased upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to
such Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If the consideration received by the
holders of Common Stock is other than cash, the value shall be as determined by the Board of Directors of the Company or successor
person or entity acting in good faith.

 

____

Initials

    	2

    	 

    

 

5.       No
provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal
of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.

 

6.       The
Company hereby expressly waives demand and presentment for payment, notice of non-payment, protest, notice of protest, notice
of dishonor, notice of acceleration or intent to accelerate, and diligence in taking any action to collect amounts called for
hereunder and shall be directly and primarily liable for the payment of all sums owing and to be owing hereto.

 

7.       The
Company agrees to pay all costs and expenses, including reasonable attorneys' fees and expenses, which may be incurred by the
Holder in collecting any amount due under this Note.

 

8.       If
one or more of the following described "Events of Default" shall occur:

 

(a)      The
Company shall default in the payment of principal or interest on this Note or any other note issued to the Holder by the Company;
or

 

(b)      Any
of the representations or warranties made by the Company herein or in any certificate or financial or other written statements
heretofore or hereafter furnished by or on behalf of the Company in connection with the execution and delivery of this Note, or
the Securities Purchase Agreement under which this note was issued shall be false or misleading in any respect; or

 

(c)      The
Company shall fail to perform or observe, in any respect, any covenant, term, provision, condition, agreement or obligation of
the Company under this Note or any other note issued to the Holder; or

 

(d)      The
Company shall (1) become insolvent; (2) admit in writing its inability to pay its debts generally as they mature; (3) make an
assignment for the benefit of creditors or commence proceedings for its dissolution; (4) apply for or consent to the appointment
of a trustee, liquidator or receiver for its or for a substantial part of its property or business; (5) file a petition for bankruptcy
relief, consent to the filing of such petition or have filed against it an involuntary petition for bankruptcy relief, all under
federal or state laws as applicable; or

 

(e)      A
trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without
its consent and shall not be discharged within thirty (30) days after such appointment; or

 

(f)       Any
governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or
control of the whole or any substantial portion of the properties or assets of the Company; or

 

____

Initials

    	3

    	 

    

 

(g)       One
or more money judgments, writs or warrants of attachment, or similar process, in excess of fifty thousand dollars ($50,000) in
the aggregate, shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid,
unvacated, unbonded or unstayed for a period of fifteen (15) days or in any event later than five (5) days prior to the date of
any proposed sale thereunder; or

 

(h)       defaulted
on or breached any term of any other note of similar debt instrument into which the Company has entered and failed to cure such
default within the appropriate grace period; or

 

(i)       The
Company shall have its Common Stock delisted from an exchange (including the OTCBB exchange) or, if the Common Stock trades on
an exchange, then trading in the Common Stock shall be suspended for more than 10 consecutive days;

 

(j)       If
a majority of the members of the Board of Directors of the Company on the date hereof are no longer serving as members of the
Board;

 

(k)       The
Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within 3 business
days of its receipt of a Notice of Conversion; or

 

(l)       The Company shall not replenish the reserve set forth in Section
12, within 3 business days of the request of the Holder.

 

Then, or at any time thereafter, unless
cured, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver
shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion,
the Holder may consider this Note immediately due and payable, without presentment, demand, protest or (further) notice of any
kind (other than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other instruments
contained to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period of grace, enforce
any and all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by law. Upon an Event
of Default, interest shall be accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted
by current law, then at the highest rate of interest permitted by law. In the event of a breach of 8(k) the penalty shall be $250
per day the shares are not issued beginning on the 4th day after the conversion notice was delivered to the Company.
This penalty shall increase to $500 per day beginning on the 10th day.

 

If the Holder shall commence an action
or proceeding to enforce any provisions of this Note, including without limitation engaging an attorney, then the Holder shall
be reimbursed by the Company for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation
and prosecution of such action or proceeding.

 

____

Initials 

    	4

    	 

    

 

9.       In
case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or
unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent
possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired
thereby.

 

10.       Neither
this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the
Company and the Holder.

 

11.      The
Company represents that it is not a “shell” issuer and has never been a “shell” issuer or that if it previously
has been a “shell” issuer that at least 12 months have passed since the Company has reported form 10 type information
indicating it is no longer a “shell issuer. Further. The Company will instruct its counsel to either (i) write a 144- 3(a)(9)
opinion to allow for salability of the conversion shares or (ii) accept such opinion from Holder’s counsel.

 

12.      The
Company shall issue irrevocable transfer agent instructions reserving 54,000,000 shares of its Common Stock for conversions under
this Note (the “Share Reserve”). The reserve shall be replenished as needed to allow for conversions of this Note.
Upon full conversion of this Note, the any shares remaining in the Share Reserve shall be cancelled.

 

13.      The
Company will give the Holder direct notice of any corporate actions including but not limited to name changes, stock splits, recapitalizations
etc. This notice shall be given to the Holder as soon as possible under law.

 

14.      This Note shall be governed by and construed
in accordance with the laws of New York applicable to contracts made and wholly to be performed within the State of New York and
shall be binding upon the successors and assigns of each party hereto. The Holder and the Company hereby mutually waive trial
by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York. This Agreement may be executed
in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be effective as an original.

 

____

Initials

    	5

    	 

    

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed by an officer thereunto duly authorized.

 

	Dated: ___________________	 	 
	 	LEGENDARY VENTURES, INC.
	 	 	 
	 	By:	
	 	 	 
	 	Title:	 
	 	 	 
	Dated:  ___________________	 	 
	 	Zeeshan Saeed
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 

 

____

Initials

    	6

    	 

    

EXHIBIT A 

 

NOTICE OF CONVERSION

 

(To be Executed by
the Registered Holder in order to Convert the Note)

 

The undersigned hereby
irrevocably elects to convert $___________ of the above Note into _________ Shares of Common Stock of Legendary Ventures, Inc (“Shares”)
according to the conditions set forth in such Note, as of the date written below.

 

If Shares are to be
issued in the name of a person other than the undersigned, the undersigned will pay all transfer and other taxes and charges payable
with respect thereto.

 

Date of Conversion: ___________________________________________________________________________

Applicable Conversion Price: ____________________________________________________________________

Signature: ___________________________________________________________________________________

[Print Name of Holder and Title of Signer]

Address: ___________________________________________________________________________________

                ____________________________________________________________________________________

 

SSN or EIN: __________________________________________

Shares are to be registered in the following name: _______________________________________________________

 

Name: _____________________________________________________________________________________

Address: ___________________________________________________________________________________

Tel: ___________________________________________

Fax: ___________________________________________

SSN or EIN: _____________________________________

 

Shares are to be sent or delivered to the following account:

 

Account Name: _____________________________________________________________________________

Address: __________________________________________________________________________________ 

____

Initials

 

7EX-10.1

 Exhibit 10.1 

Policy Category: Benefits 
 Policy Title: Plan
Document and Summary Plan Description for the Houghton Mifflin Harcourt Severance Plan 
 Policy Effective Date: September 5, 2014 

This HOUGHTON MIFFLIN HARCOURT SEVERANCE PLAN (the “Plan”) has been established by HOUGHTON MIFFLIN HARCOURT PUBLISHING COMPANY (the
“Company”) to provide severance benefits for its “Eligible Employees,” as that term is defined below, and for the Eligible Employees of certain of its Affiliates that have adopted the Plan with the consent of the Administrator.
This Plan document also constitutes the summary plan description required by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Plan is amended and restated as of September 5, 2014 and is effective with
respect to terminations occurring on or after that date. The prior version of this Plan, which was originally effective with respect to terminations occurring on or after March 16, 2009, superseded all previously adopted and communicated
severance plans including, without limitation, the Houghton Mifflin Severance Policy and the Harcourt Education Severance Plan, each of which was terminated. 

PLAN ADMINISTRATION 
 The Plan is administered by the
Chief Human Resources Officer (the “Administrator”), who shall act as the “named fiduciary” and “plan administrator” under ERISA. The Administrator has the discretionary and final authority to make factual
determinations, to construe and administer the Plan, to interpret any ambiguities, and to resolve any and all issues including, without limitation, eligibility to participate and the right to any Severance Benefits. 

ELIGIBILITY 
 An Eligible Employee, as defined below, will
be entitled to the Severance Benefits described in this Plan provided he/she (i) executes and returns a valid Severance Agreement, as discussed below, that is not revoked, (ii) returns all Company Property, (iii) reimburses his or her
Employer for any personal charges or cash advances, (iv) pays any and all personal expenses charged to his or her Company-issued credit card and (v) pays any amounts otherwise owed to the Company, including, without limitation, any tuition
assistance and relocation repayments. 
 SEVERANCE BENEFITS 

The following Severance Benefits are available under this Plan. 

(a) Severance Pay. An Eligible Employee will be entitled to Severance Pay equal to his or her Weekly Base Compensation times the greater
of (i) the “Minimum Number of Weeks,” as set forth below, for his or her Talent Management Level at the time of termination or (ii) the number of his or her Years of Service multiplied by two weeks per Year of Service: 

 

			
	 Talent Management Level
	 	 Minimum Number of Weeks

	 SU1 – SU 4
	 	4
	 IC3 - IC7 and FM5 - FM7
	 	8
	 FM8, EL8, EL9
	 	12

  
 - 1 - 

 In no event will the amount of Severance Pay exceed the amount of an Eligible Employee’s Weekly Base
Compensation multiplied by fifty-two. 
 Severance Pay will be paid in installments, less withholdings as required by law, based on the current pay
schedule (or period) of the Eligible Employee at the time of termination, beginning generally within twenty-one days following the latest of (A) the date of termination, (B) the last day of the first pay period immediately following the
pay period in which the Eligible Employee returns a fully and properly executed Severance Agreement or (C) if the Eligible Employee has a right to revoke his or her execution of the Severance Agreement, the latest date as of which he or she may
no longer do so. In no event will Severance Pay be paid later than the last day of the second taxable year following the date the Employee terminates. 

The Employer may deduct (after all applicable withholdings have been deducted) from Severance Pay any indebtedness, obligation or liability owed by an
Eligible Employee to an Employer as of his or her termination date, as permitted under applicable law. 
 The following examples illustrate the Severance
Pay available under the Plan: 
 Example 1: Assume an employee with a Talent Management Level of SU3 has five and one-half
Years of Service. His/her position is eliminated due to a reduction in the workforce. Under the Plan and assuming all other requirements for payment are satisfied, he/she would be eligible for a total of twelve weeks of Severance Pay (five Years of
Service plus an additional (partial) Year of Service for a total of six Years of Service, times two weeks per Year of Service). 

Example 2: Assume an employee with a Talent Management Level of IC7 and eight Years of Service is terminated for Performance
Reasons. This employee would not be entitled to any benefits under the Plan. 
 Example 3: Assume an employee with a Talent
Management Level of FM8 has two Years of Service at the time his/her position is eliminated due to an organizational restructuring. Under the Plan and assuming all other requirements for payment are satisfied, he/she would be eligible for a total of
twelve weeks of Severance Pay, the minimum for that Talent Management Level. 
 Rehire Situations: An individual who is rehired will be eligible for
Severance Benefits under the Plan if he or she meets the definition of Eligible Employee and the other requirements of the Plan at the time of a later termination. If the individual is still receiving Severance Pay under the Plan at the time of
rehire, the individual will have no further right to any unpaid Severance Pay or Outplacement Benefits, which will immediately end upon rehire. As noted below in the definition of Years of Service, service with any Employer or Affiliate prior to
rehire will be taken into account in calculating Severance Pay provided that the individual is rehired within three years of any prior termination. However, if any prior service is taken into account and the individual received any prior Severance
Pay (or any severance benefits under any prior severance plan, policy or arrangement of any Employer or Affiliate), the amount of Severance Pay for which the individual will be eligible at termination will be the greater of (1) the dollar
amount of Severance Pay for which the individual would be eligible based on his/her date of rehire 

  
 - 2 - 

 
(i.e., not counting the prior Years of Service) or (2) the dollar amount of Severance Pay for which the individual would be eligible based on his/her original date of hire (i.e., counting
prior Years of Service), less the dollar amount of Severance Pay the individual had previously received under this Plan or any prior severance plan, policy or arrangement. 

Example 4: Assume an employee with a Talent Management Level of SU3 worked for the Company for three years, left in 2014, and
returned in 2019. Assume further that he/she worked another two years and was then terminated (and at termination was eligible for Severance Benefits). He/she would receive a total of four weeks of Severance Pay (two Years of Service times two weeks
per Year). Because he/she was gone for at least three years, the prior service is not taken into account in calculating Severance Benefits upon subsequent termination. 

Example 5: Assume an employee with a Talent Management Level of FM6 worked for the Company for five years, left and began
receiving Severance Pay on January 4, 2014 and was rehired on March 1, 2014 after receiving eight weeks of severance pay (at the rate of $1,250/week = $10,000) but before receiving the final two of ten weeks of Severance Pay for which
he/she was eligible. Assume further he/she worked another two years and was then terminated when his/her Weekly Base Compensation was $1,400/week (and at termination was eligible for Severance Benefits). He/she would receive eight weeks of Severance
Pay (in the amount of $11,200), calculated based on his/her rehire date, which results in a larger amount of Severance Pay than when calculated based on Years of Service, as set forth below: 

Calculation based on rehire date 

Years of Service since rehire: 2 

Maximum weeks of Severance Pay: greater of 8 or (2 weeks x 2 Years of Service) = 8 

Amount of Severance Pay eligible for payout: 8 x $1,400/week = $11,200 

OR 
 Calculation based on
total Years of Service 
 Total Years of Service: 5 + 2 = 7 

Maximum weeks of Severance Pay: greater of 8 or (2 weeks x 7 Years of Service) = 14 

Amount of Severance Pay previously received: 8 weeks x $1,250/week = $10,000 

Amount of Severance Pay eligible for payout: 

14 weeks x $1,400/week = $19,600 - $10,000 = $9,600 

(b) Outplacement Benefits. An Eligible Employee will be entitled to receive outplacement assistance services from a vendor selected by
the Company. Use of Outplacement Benefits must begin within two months of termination, will be paid directly by the Employer, and will continue in accordance with the following schedule: 

 

			
	 Talent Management Level
	 	 Duration of Outplacement Services

	 SU1 - SU4
	 	1 month
	 IC3 - IC7 and FM5 - FM7
	 	3 months
	 FM8, EL8, EL9
	 	6 months

  
 - 3 - 

 COORDINATION WITH SHORT-TERM DISABILITY OR OTHER APPROVED LEAVES OF ABSENCES 

If an Eligible Employee is on an approved leave of absence at the time of termination, the timing and amount of Severance Pay will depend on whether the
Eligible Employee is receiving other forms of income protection. If the Eligible Employee is receiving short-term disability payments (or “STD”), then Severance Pay will be reduced by the amount of STD paid from the date of termination.
Severance Pay will not be reduced, however, if the employee is on an unpaid leave (such as an FMLA leave) at the time of termination. 
 SEVERANCE
AGREEMENT 
 As a condition of receiving benefits under the Plan, an Eligible Employee will be required to execute a Severance Agreement in a form
acceptable to the Employer. A Severance Agreement will contain a release of claims and certain other provisions as the Company may deem appropriate, including, but not limited to, post-employment obligations or restrictions on the Eligible Employee.
The release will, to the extent permitted by law, waive and release any and all claims and actions an Eligible Employee might otherwise have against his or her Employer and its Affiliates, as well as any other related parties and entities the
Company decides to include in the release. No Severance Benefits will be paid under the Plan if an Eligible Employee fails to timely execute (or revokes) a Severance Agreement. 

DEFINITIONS OF KEY TERMS 
 Under the Plan, certain terms
have special meanings and have already been defined. Other key terms are defined as follows: 
 “Affiliate” means a corporation or other entity
controlled by, or under common control with, the Company, as determined by the Administrator. 
 “Cause” means any of the following, as determined
by the Employer in its sole discretion: (i) engaging in or threatening to engage in conduct detrimental to the best interests of the Company or an Affiliate; (ii) theft, embezzlement, fraud, dishonesty or misappropriation of Company
Property, or misappropriation of a corporate opportunity of the Company or an Affiliate; (iii) use or being under the influence of illegal drugs or alcohol at work, while working or in any manner that interferes with the performance of the
Employee’s job duties; (iv) conviction of, a guilty plea to or nolo contendere or equivalent plea to a felony, or if it results in incarceration, a misdemeanor, and/or an Employee’s conviction of, guilty plea to or nolo
contendere or equivalent plea to violation of any federal or state securities laws; or (v) material breach of the Houghton Mifflin Harcourt Code of Conduct or Employee Guide, as amended and in effect from time to time, or any successor or
similar code(s), standard(s) or policies of ethics or conduct in effect during employment. 
 “Company Property” means all business or financial
information in any form or media, and any copies thereof (including, but not limited to, reports, customer lists, customer contracts, proprietary information, business plans, notes, maps, files, memoranda, manuals or records) and all equipment
(including, but not limited to, automobiles, credit cards, cardkey passes, door and file keys, software, computers, electronic files, printers, tablets, smartphones or other hand-held devices) of, or leased to, the Company or any Affiliate. 

  
 - 4 - 

 “Eligible Employee” means an Employee whose employment is involuntarily terminated by an Employer for
any reason other than for Performance Reasons or for Cause. The term Eligible Employee shall not, however, include: (i) any Employee who is eligible to receive severance or similar type benefits under the provisions of any other severance plan,
program, arrangement, policy or practice of, or any agreement with, an Employer; or (ii) any Employee whose current position is moved to a new work location within fifty miles of his or her current work location. An Employee shall not be
considered to have been “involuntarily terminated” where: (A) employment is terminated at the end of a leave of absence because of a failure to return to work; (B) employment is terminated at the end of a leave of absence because
the Employee’s position was filled during the leave and the Employer does not offer the Employee another position; (C) the individual resigns, including as a result of an election to take early, normal or deferred retirement;
(D) employment is terminated after the individual gives oral or written notice of an intention to resign; or (E) employment is terminated in connection with the sale of equity interests in, or the sale or lease of all or part of the assets
of a business of, the Employer where (I) the Employee is offered employment in a comparable position at a comparable salary with the purchaser or lessee, as the case may be, or (II) the Employee voluntarily elected not to participate in the
selection process for the employment described in (I) above. 
 “Employee” means a common law employee of the Company or any Affiliate;
provided, however, Employee shall not include: (i) a temporary employee, including a project employee, or any other employee who is not a regular employee (as determined by the Employee’s Employer in accordance with employment policies and
practices established by the Employer); (ii) any individual who is not paid through an Employer’s U.S. payroll; (iii) any individual employed by a leasing company or staffing agency or whose work for an Employer is intended to be as
an independent contractor, whether the individual’s relationship to his or her Employer is subsequently determined by an agency, a court or the Employer to have been that of a common law employee; and (iv) any union employee. 

“Employer” means the Company or any Affiliate of the Company that adopts the Plan with the consent of the Company. As of the Effective Date of the
Plan, no Affiliates had adopted the Plan. 
 “Performance Reasons” means any of the following, as determined by the Employer in its sole
discretion: (i) misconduct or negligence in connection with the performance of an Employee’s job duties; (ii) failure to perform job responsibilities at a satisfactory level; (iii) chronic absence or tardiness from work that is
not permitted or excused; or (iv) failure to follow the lawful direction of the person or persons to whom the employee reports. 
 “Weekly Base
Compensation” means an Employee’s gross weekly base wages, before any withholding or deductions, at the time of termination. If the Employee normally works less than his or her Employer’s standard full-time workweek, then Weekly Base
Compensation means the Employee’s gross base wages, before any withholding or deductions, for his or her normally scheduled weekly number of hours, as determined by the Employer. Weekly Base Compensation does not include bonuses, overtime pay,

 incentives, allowances, commissions, equity compensation, and any other extraordinary remuneration. 

  
 - 5 - 

 “Years of Service” means an individual’s whole months of service divided by twelve. An individual
will be credited with each whole month of service (without regard to partial months) he or she has worked for any Employer or Affiliate but disregarding any months of service before any continuous break in service lasting for three years or more. An
Eligible Employee’s period of service consisting of a partial year shall be rounded up or down to the nearest whole year. A transfer of employment between and among the 

Company and any Affiliate is not considered an interruption or termination of continuous service for purposes of determining an Eligible Employee’s Years
of Service. 
 CLAIMS PROCEDURES 
 An Employee (a
“Claimant”) who believes he or she has not received the Severance Benefits due under the Plan may file a claim in writing with the Administrator. If the claim is wholly or partially denied, the Administrator shall notify the claimant of
the denial within ninety days after receipt of the claim by the Administrator (unless additional time is needed). The written or electronic notice will: (i) specify the reason(s) for the denial; (ii) refer to the specific provisions of the
Plan upon which the denial is based; (iii) describe any additional material or information necessary to perfect the claim and an explanation of why the material or information is necessary; and (iv) describe the Plan’s review
procedures, including a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA filling an adverse benefit determination on review. 

A Claimant will be given a full and fair review by the Administrator of the denial of the claim if he or she requests a review in writing within sixty days
after receipt of the notice of denial. As part of the review process, the Claimant, or his or her duly authorized representative, may review pertinent documents, submit issues and comments in writing, and receive upon request and free of charge
reasonable access to, and copies of, all non-privileged documents, records, and other information relevant to the Claimant’s claim for benefits. The Administrator shall make a decision with respect to an appeal within sixty days of its receipt
(unless additional time is needed) and if wholly or partially denied, shall furnish the Claimant with written or electronic notice of the decision. The notice will: (A) specify the reason(s) for the denial; (B) refer to the specific
provisions of the Plan upon which the denial is based; (C) describe any additional material or information necessary to perfect the claim and an explanation of why the material or information is necessary; and (D) describe the Plan’s
review procedures, including a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA filling an adverse benefit determination on review. 

The decision of the Administrator shall be final and binding in all respects. 

ADDITIONAL PLAN DOCUMENT PROVISIONS 
 Effect on other
benefits. Severance Benefits provided under the Plan shall be in addition to any compensation or benefits that may be due an Employee from the Company or an Affiliate. 

No right to employment. The Plan (i) does not establish any right to continued employment of any Employee, nor any right to benefits under the
Plan except according to its terms and (ii) is not to be construed as interfering with either an Employer’s right to terminate the employment of any Employee at any time or the fact that, unless so stated

  
 - 6 - 

 
clearly in a writing signed by a senior executive authorized by the Chief Executive Officer of the Company, each Employee is employed “at-will,” meaning employment is not for a specific
period of time, and both the Employer and the Employee may terminate the employment relationship at any time, with or without notice, for any or no reason. 

Plan amendment or termination. The Plan may be amended or terminated by the Company at any time. 

Tax matters. It is the intention of the parties that no payment or entitlement pursuant to this Plan will give rise to any adverse tax consequences
pursuant to Internal Revenue Code Section 409A. The Administrator shall interpret and apply the Plan to that end, and shall not give effect to any provision in a manner that reasonably could be expected to give rise to adverse tax consequences
under Section 409A. For purposes of this Plan, an Employee shall be considered involuntarily terminated only if the termination constitutes an “involuntary separation from service” as defined in Treas. Reg. § 1.409A-1(n). 
 ADDITIONAL SUMMARY PLAN DESCRIPTION PROVISIONS 

ERISA rights statement. As a participant in the Plan you are guaranteed certain rights and protections under ERISA including the right to: 

(i) Examine, without charge, at the Company’s office this Plan document and copies of all documents (if any) filed by the Plan with the
U.S. Department of Labor (such as detailed annual reports and Plan descriptions). However, you may not inspect materials containing confidential information about other Plan participants; 

(ii) Obtain copies of all non-confidential Plan information upon written request to the Administrator, for which a reasonable charge may be
made; 
 (iii) Receive a summary of the Plan’s annual financial report. The Administrator is required by law to furnish each participant
with a copy of this summary annual report; and 
 (iv) Continue health care coverage for yourself, spouse or dependents if there is a loss of
coverage as a result of a qualifying event. You or your dependents will have to pay for such coverage. 
 In addition to creating rights for Plan
participants, ERISA also imposes obligations upon the persons responsible for the operation of the employee benefit plan. These persons are referred to as “fiduciaries” in the law. Fiduciaries must act solely in the interest of 

Plan participants and they must exercise prudence in the performance of their Plan duties. Fiduciaries who violate ERISA may be removed and required to make
good any losses they have caused the Plan. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit under the Plan or exercising your rights under
ERISA. 
 If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or federal court. If it should
happen that Plan fiduciaries misuse the Plan’s money or you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor or you may file suit in a federal court. The court will decide who should
pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, in certain circumstances the court may order you to pay these costs and fees, for example, if it finds your
claim was frivolous. 

  
 - 7 - 

 If you have any questions about the Plan, you should contact your local Human Resources Representative. If you
have any questions about this statement or about your rights under ERISA, you should contact the nearest area office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of
Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210. 

Plan number. 519 
 Type of plan. The Houghton
Mifflin Harcourt Severance Plan is a welfare benefit plan providing severance benefits. 
 Source of contributions. Benefits are provided by the
Employers. All amounts are paid out of the general assets of the Employers and no special trust or fund has been set up to provide benefits under the Plan. 

Type of plan administration; plan year. The Plan is administered by the Administrator. The Administrator can be contacted by mail c/o Chief Human
Resources Officer, Houghton Mifflin Harcourt Publishing Company, 222 Berkeley Street, Boston, Massachusetts 02116. The Plan operates and keeps its records on a calendar year basis. 

Identification of plan sponsor. The Company is the Plan sponsor. The Company’s Taxpayer Identification Number is 04-1456030. The Company is also
the agent for service of legal process. 
 Policy Owner - Human Resources 

  
 - 8 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}]]