Salary Reduction Agreement between Houghton Mifflin Harcourt Company and John J. Lynch, Jr.
Houghton Mifflin Harcourt Company and John J. Lynch, Jr. have agreed to temporarily reduce Mr. Lynch’s annual salary to $450,000 due to the impact of COVID-19, with approval from the Board of Directors. This change is effective from April 6, 2020, until other executives’ salaries are restored. Mr. Lynch will continue working full-time, and all other terms of his original offer letter remain unchanged. The agreement clarifies that this is not a termination or a trigger for resignation with "Good Reason," and his employment remains at-will.
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| Lawrence K. Fish Chairman of the Board
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April 2, 2020
John J. Lynch, Jr.
Dear Jack:
Thank you for offering to take a reduction in your salary due to the significant impact of the Coronavirus (COVID-19) on our business and customers. I am writing to confirm that you and the Company are mutually agreeing to this change in your pay, with the approval of the Houghton Mifflin Harcourt Company Board of Directors.
For the period from April 6 until the Company restores its other executives to full salary, you will be compensated with a salary at the rate of $450,000 per annum, subject to applicable payroll taxes and withholdings. You agree to continue to work on a full-time basis during this time of crisis.
You acknowledge that this modification does not constitute a termination of your employment or otherwise constitute “Good Reason” pursuant to your offer letter dated February 10, 2017. This reduction in your salary is in connection with across-the-board reductions for other senior executives of the Company.
The terms of your offer letter otherwise remain in effect and unaltered. Your employment remains “At-Will,” which means that you or the Company may terminate the employment for any reason or no reason, at any time, with or without notice. Nothing in this letter creates a guarantee of continuing employment or an employment contract, either express or implied.
Cordially,
/s/ Lawrence K. Fish
Lawrence K. Fish
Chairman of the Board of Directors of
Houghton Mifflin Harcourt Company
Accepted and Agreed on this 2nd day of April 2020.
| /s/ John J. Lynch, Jr. | |
| By: | John J. Lynch, Jr. |
