On January 15, 2014, Houghton Mifflin Harcourt Company entered into amendment No. 4 to the superpriority senior secured debtor-in-possession and exit term loan credit agreement, by and among the company, Houghton Mifflin Harcourt Publishers Inc., HMH Publishers LLC, Houghton Mifflin Harcourt Publishing Company (collectively, the borrowers), certain other subsidiaries of the company, as guarantors, the lenders party thereto and Citibank, N.A., as administrative agent and collateral agent. The amendment amends the superpriority senior secured debtor-in-possession and exit term loan credit agreement, dated as of May 22, 2012, by and among the borrowers, the subsidiary guarantors, the lenders party thereto and the term agent, which governs the borrowers' senior secured term loan credit facility.

Among other things, the amendment reduced the interest rates applicable to the loans under the term loan facility. As a result of the amendment, interest rates for loans under the term loan facility will be ABR plus 2.25% per annum, a reduction from ABR plus 3.25% in effect prior to the amendment, and LIBOR plus 3.25% per annum, a reduction from LIBOR plus 4.25% in effect prior to the amendment. In connection with the amendment, the company, the borrowers and the subsidiary guarantors ratified and reaffirmed the guaranties and the grant of the pledge and security interests under the term credit agreement and the security documents entered into in connection with the term credit agreement.