Exhibit








Exhibit 10.27


NOTE PURCHASE AGREEMENT


This Note Purchase Agreement (this “Agreement”) is made and entered into as of March 21, 2016, by and among American Media, Inc., a Delaware corporation (the “Company”), the guarantors party to the Indenture (as defined below) (the “Guarantors”), Leon Cooperman, David Pecker and certain funds and accounts managed by Chatham Asset Management, LLC (as set  forth  under  the  caption “Chatham Parties” on  Schedule A  hereto, and  collectively, the “Investors”).  The Company, the Guarantors and the Investors are collectively referred to herein as the “Parties” and individually as a “Party,” as the context requires.


WHEREAS, upon the terms and subject to the conditions and limitations set forth in this Agreement, the Company seeks to issue to the Investors $76.2 million in aggregate principal amount of the Company’s 7.000% Second Lien Senior Secured Notes due 2020 (the “Notes”) issued pursuant to that certain indenture dated as of January 20, 2015 (as amended, supplemented or otherwise modified to the date hereof, the “Indenture”), among the Company, the Guarantors and Wilmington Trust, National Association, as trustee and collateral agent (the “Trustee”), as supplemented by that first supplemental indenture, dated as of March 21, 2016 (the “First Supplemental Indenture”), in a distribution to the Investors, as holders of Class A-1 Interests and Class  A-2  Interests  in  the  direct  parent  of  the  Company,  AMI  Parent  Holdings  LLC (“Holdings”), pursuant to Section 6.4(b)(i)(1) of the Second Amended and Restated Limited Liability Company Agreement of Holdings; and


WHEREAS,  the  Company  and  the  Investors  are  entering  into  and  delivering  this Agreement in reliance upon the exemption from securities registration afforded by  Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D  (“Regulation D”) as  promulgated by the U.S. Securities and Exchange Commission (the “SEC”) under the Securities Act.


NOW, THEREFORE, in consideration of the mutual covenants, agreements and understandings herein contained, the Parties hereby agree as follows:


SECTION 1.   Issuance of Notes.


1.1       Issuance of Notes.   Subject to the terms, conditions and limitations set forth herein, on the Closing Date (as defined below), the Company agrees to issue to each Investor such Investor’s pro rata share, as set forth on Schedule B hereto, of $76.2 million in aggregate principal amount of Notes.


1.2       Closing.  The closing of the issuance of the Notes (the “Closing”) shall take place no later than March 21, 2016 at 5:00 p.m. (New York time) (the “Closing Date”). The Company shall issue and deliver the Notes to the Investors on the Closing Date.


SECTION 2.   Conditions  of  the  Obligations  of  the  Company  at  the  Closing.    The obligations of the Company to consummate the transactions contemplated hereby is subject to the satisfaction (or waiver by the Company) as of the Closing of the following conditions:















2.1       Representations and Warranties True.  The representations and warranties contained in Section 5 hereof shall be true and correct in all material respects on the date hereof and as of the Closing as though made as of the Closing Date (or, in the case of representations and warranties that are qualified by materiality or a Material Adverse Effect (as defined below), shall be true and correct on and as of the Closing Date).


2.2       Compliance with Covenants.   The Investors shall have complied in all material respects with all of their respective covenants and agreements contained herein to be performed by it on or prior to the Closing Date.


2.3       No Prohibitions.   No statute, rule, regulation, executive order, decree, temporary restraining order, preliminary or permanent injunction or other order enacted, entered, promulgated, enforced or issued by any Federal, state, local or foreign government or any court of competent jurisdiction, administrative agency or commission or other governmental authority or instrumentality, domestic or foreign, or other legal restraint or prohibition shall be in effect preventing the consummation by the Company or, to the extent applicable, the Investors, of the issuance of the Notes.


SECTION 3.   Representations and Warranties of the Company.  As a material inducement to the Investors to enter into this Agreement, the Company hereby represents and warrants to the Investors as follows:


3.1       Organization; Requisite Authority.  The Company is a corporation, duly organized, validly existing and in good standing under the laws of Delaware, and the Company is duly qualified as a foreign corporation to transact business and is in good standing in each other jurisdiction in which such qualification is required, except where the failure to be so organized or qualified or be in good standing would not reasonable be expected to have a material adverse effect on the financial condition, business or results of operations of the Company and its subsidiaries, taken as a whole (a “Material Adverse Effect”).   The Company possesses all requisite power and authority necessary to consummate the transactions contemplated by this Agreement.


3.2       Authorization.      The   execution,   delivery   and   performance   of   this Agreement have been duly authorized by the Company.  This Agreement, when executed and delivered by the Company in accordance with the terms hereof, shall constitute a valid and binding obligation of the Company, enforceable in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar laws affecting creditors’ rights generally and by general equitable principles.


3.3       Validity of Notes.   When issued and delivered in accordance with this Agreement, the  Notes  to  be  delivered under  this  Agreement shall  be  (i)  duly  and  validly authorized, issued and outstanding, (ii) fully paid and non-assessable, and (iii) free and clear of any  liens  and  encumbrances.    The  Notes  are  being  offered  and  sold  pursuant  to,  and  in compliance with, Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) and Regulation D promulgated thereunder.


3.4       Broker’s Fees.  None of the Company or any of the Company’s officers or directors has retained or authorized any investment banker, broker, finder or other intermediary to act on behalf of the Company or incurred any liability for any banker’s, broker’s or finder’s fees or commissions in connection with the transactions contemplated by this Agreement.













SECTION 4.   Representations and Warranties of the Investors.  As a material inducement to the Company to enter into this Agreement, the Investors hereby represents and warrants to the Company as follows:


4.1       Organization; Requisite Authority.    The Investors are duly organized, validly existing and in good standing under the laws of the jurisdiction of their organization. The Investors possess all requisite power and authority necessary to consummate the transactions contemplated by this Agreement and transfer the Interests to the Company, free and clear of any lien or encumbrance.


4.2       Authorization.      The   execution,   delivery   and   performance   of   this Agreement has been duly authorized by the Investors.   This Agreement, when executed and delivered by the Investors in accordance with the terms hereof, shall constitute a valid and binding obligation of the Investors, enforceable against the Investors in accordance with its terms,  except as  such  enforceability may  be  limited by  applicable bankruptcy, insolvency, moratorium, reorganization or similar laws affecting creditors’ rights generally and by general equitable principles.


4.3       Ownership.  The Investors are the beneficial owner of the Interests as set forth on Schedule A.


4.1       Accredited Investor.  Each Investor is an “accredited investor” (as defined in Rule 501(a) of Regulation D under the Securities Act).  Each Investor understands and acknowledges that the Notes are being offered in transactions not involving any public offering within the meaning of the Securities Act, that the initial offering and issuance of the Notes has not been registered under the Securities Act or any other securities law and that (i) if in the future it  decides to resell, pledge or otherwise transfer any Notes that it purchases hereunder, those Notes, absent an effective registration statement under the Securities Act, may be resold, pledged or transferred only pursuant to an applicable exemption from registration under the Securities Act in accordance with any applicable securities laws of the states and other jurisdictions of the United States, and (ii) it will, and each subsequent holder of any of the Notes that it purchases in this offering is required to, notify any subsequent purchaser of such Additional Notes from it or subsequent holders, as applicable, of the resale restrictions referred to in clause (i) of this sentence. The Notes will contain a restrictive legend as set forth in the Form of Note attached as Exhibit A to the Indenture.


4.2       Information; Consultation with Counsel and Advisors.  The Investors are entering into this Agreement as principal (and not as agent or in any other capacity); none of the Company or any of the Company’s affiliates or agents are acting as a fiduciary for it; they are entering into this Agreement with a full understanding of the terms, conditions and risks thereof and it is capable of and willing to assume those risks.  The Investors (a) have consulted with their own legal, regulatory, tax, business, investment, financial and accounting advisers in connection herewith to the extent the Investors have deemed necessary, (b) have received from the Company all  necessary  information relating  to  the  Company  and  its  business  and  had  a  reasonable opportunity to ask questions of and receive answers from officers and representatives of the Company concerning its financial condition and results of operations and the issuance of the Notes to which this Agreement relates, and any such questions have been answered to their satisfaction, (c) have had the opportunity to review all publicly available records and filings and all other documents concerning the Company that the Investors consider necessary or appropriate in making an investment decision, (d)  have reviewed all information that they believe are necessary or appropriate in connection with the issuance of the Notes, and (e) have conducted their own due diligence on the Company and the issuance and has made their own investment decisions based upon their own judgment, due diligence and advice from such advisers as the Investors have deemed necessary and not upon any view expressed by or on behalf of the Company.













4.3       Broker’s Fees.    The  Investors  have  not  retained  or  authorized  any investment banker, broker, finder or other intermediary to act on behalf of the Investors or incurred any liability for any banker’s, broker’s or finder’s fees or commissions in connection with the transactions contemplated by this Agreement.


SECTION 5.   Termination. The obligation of the Company to issue the Notes at the Closing may be terminated at any time prior to the Closing by the mutual written consent of the Parties.


SECTION 6.   Transfer Restrictions.     Until  the  earlier  of  (i)  termination  of  this Agreement pursuant to Section 6 above or (ii) 12:00 p.m. (New York time) on the date of public announcement of the purchase and sale of the Notes contemplated hereby by the Company on a Current Report on Form 8-K (which public announcement shall be made prior to 9:00 a.m. (New York time) on the first business day following the Closing), the Investors shall not sell, transfer, assign, pledge, encumber, hypothecate or otherwise dispose of (or offer to undertake any of the foregoing),  or   enter   into   any   contract,   option,   commitment  or   other   arrangement  or understanding with respect to the sale, transfer, assignment, pledge, encumbrance, hypothecation or other disposition of any Notes.


SECTION 7.   Miscellaneous.


7.1     Further Assurances.   In case at any time after the Closing any further action is necessary or desirable to carry out the purposes of this Agreement or the transactions contemplated hereby, each of the Parties will take such further action (including the execution and delivery of such further instruments and documents) as any other Party may reasonably request.


7.2      Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision  of  this  Agreement  or  the  application  of  any  such  provision  to  any  Party  or circumstance shall be held to be prohibited by, illegal or unenforceable under applicable law in any respect by a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or illegality or unenforceability, without invalidating the remainder of such provision or the remaining provisions of this Agreement.


7.3  Counterparts.  This Agreement may be executed simultaneously in counterparts (including by means of facsimile transmission or “pdf” file thereof), any one of which need not contain the signatures of more than one Party, but all such counterparts taken together shall constitute one and the same Agreement.


7.4      Descriptive Headings; Interpretation. The headings and captions used in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  Any capitalized terms used in any Schedule attached hereto and not otherwise defined therein shall have the meanings set forth in this Agreement.  The use of the word “including” herein shall mean “including without limitation.” The Parties intend that each representation, warranty and covenant contained herein shall have independent significance. If any Party has breached any representation, warranty or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) the Party has not breached shall not detract from or mitigate the fact that the Party is in breach of the first representation, warranty or covenant.













7.5    Entire Agreement.   This Agreement and the agreements and documents referred to herein contain the entire agreement and understanding between the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings, whether written or oral, relating to such subject matter in any way.


7.6       Amendment.       This   Agreement   may   be   amended,   modified   or supplemented but only in writing (including a writing evidenced by a facsimile transmission or “pdf” file thereof) signed by the Party against which enforcement is sought.


7.7       APPLICABLE LAW; WAIVER OF JURY TRIAL; THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS  OF  THE STATE OF  NEW YORK  APPLICABLE TO  CONTRACTS ENTERED INTO AND TO BE PERFORMED IN SUCH STATE. THE PARTIES HERETO AGREE TO WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY DISPUTE ARISING FROM OR RELATED TO THIS AGREEMENT.


7.8       Submission to Jurisdiction.   Each Party agrees that any suit, action or proceeding bought by it against the other Party arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in any state or federal court in The City of New York, New York, and waives any objection which it may now or hereafter have to the laying  of  venue  of  any  such  proceeding,  and  irrevocably  submits  to  the  non-exclusive jurisdiction of such courts in any suit, action or proceeding.


7.9       Notices.   All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be sent to the Company and the Investors at the addresses set forth below:


The Company:


	
		
	American Media, Inc.

	1000 American Media Way

	Boca Raton, Florida 33464

	Attention:
	Chris Polimeni, Executive Vice President - Chief Financial Officer

	 
	and Treasurer

	Email:
	cpolimeni@amilink.com

	Fax:
	(877) 569-5998






and


	
		
	American Media, Inc.

	4 New York Plaza

	New York, New York 10004

	Attention:
	Eric Klee, Esq., General Counsel

	Email:
	eklee@amilink.com

	Fax:
	(212( 743-6590






With a copy to:













	
		
	Paul, Weiss, Rifkind, Wharton & Garrison LLP

	1285 Avenue of the Americas

	New York, New York 10019

	Attention:
	Andrew N. Rosenberg, Esq. and Trace A. Zaccone, Esq.

	Email:
	arosenberg@paulweiss.com and tzaccone@paulweiss.com

	Fax:
	(212) 757-2553






The Investors:


	
		
	To the Address under the Investors' name on Schedule A attached hereto






7.10     No Construction Against Draftsperson.  The Parties have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.


(Signatures on next page)











IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first written above.


	
		
	AMERICAN MEDIA, INC.

	 
	 

	/s/ Christopher V. Polimeni

	Name:
	Christopher V. Polimeni

	Title:
	Executive Vice President, Chief Financial Officer and Treasurer






	
		
	 
	/s/ David J. Pecker

	 
	David J. Pecker






	
		
	LEON G. COOPERMAN

	 
	 

	/s/ Leon G. Cooperman

	Name:
	Leon G. Cooperman

	Title:
	Investor






	
		
	CHATHAM ASSET HIGH YIELD MASTER FUND, LTD

	 
	 

	By:
	Chatham Asset Management, LLC

	 
	Investment Advisors

	 
	 

	By:
	/s/Anthony Melchiorre

	 
	Name: Anthony Melchiorre

	 
	Title: Managing Member






	
		
	CHATHAM FUND, LP

	 
	 

	By:
	Chatham Asset Management, LLC

	 
	Investment Advisors

	 
	 

	By:
	/s/Anthony Melchiorre

	 
	Name: Anthony Melchiorre

	 
	Title: Managing Member















SCHEDULE A


Amount of Interest Owned by Each Investor:


	
							
	Exact Name of Beneficial Owner
	 
	Number of Class A-1 Interests
	 
	Number of Class A-2 Interests

	Chatham Asset High Yield Master Fund, Ltd.
	 
	1,748.485
	

	 
	 

	 
	 
	 
	 
	 

	Chatham Fund, L.P.
	 
	1,558.14
	

	 
	 

	 
	 
	 
	 
	 

	Leon Cooperman
	1,034.38
	

	 
	 

	 
	 
	 
	 
	 

	David Pecker
	 
	 
	1,120.57
	
















SCHEDULE B


Amount of Notes Issued:


	
			
	Name(s) of Investors to which Notes will be Issued
	 
	Number of Notes to be Issued

	Chatham Asset High Yield Master Fund, Ltd.
	 
	$54,346,513

	Chatham Fund, L.P.
	 
	$7,317,073

	Leon Cooperman
	 
	$7,114,212

	David Pecker
	 
	$7,430,289