Consent Agreement relating to 8-7/8% Senior Subordinated Notes



 Exhibit 10.2 
 CONSENT AGREEMENT 
 Consent Agreement, dated as of May 15, 2007 (this
“Agreement”), by and among American Media Operations, Inc. (the “Company”) and each of the parties listed on the signature page hereto (each a “Bondholder”, and collectively, the
“Bondholders”), relating to certain proposed amendments to the Indenture, dated as of January 23, 2003, as supplemented by the First Supplemental Indenture, dated as of March 17, 2006, the Second Supplemental Indenture,
dated as of June 26, 2006, the Third Supplemental Indenture, dated as of August 18, 2006, the Fourth Supplemental Indenture, dated as of November 2, 2006, and the Fifth Supplemental Indenture, dated as of February 15, 2007 (as
amended and supplemented, the “Indenture”), among the Company, the guarantors named therein (the “Note Guarantors”) and HSBC Bank USA, National Association (as successor in interest to J.P. Morgan Trust Company,
N.A.), a national banking association, as trustee (the “Trustee”). 
 WHEREAS, each Bondholder beneficially owns the aggregate principal amount of the Company’s 8 7/8%
Senior Subordinated Notes due 2011 (the “Notes”) set forth opposite its name on Annex A hereto (such Notes being collectively referred to herein as the “Subject Notes”); 
 WHEREAS, the Company has restated its financial statements (the “Restatement”) and, as a result, is not yet able to timely satisfy its
reporting obligations with respect to its quarterly report on Form 10-Q for the quarter ended September 30, 2006, its quarterly report on Form 10-Q for the quarter ended December 31, 2006, its annual report on Form 10-K for the year ended
March 31, 2007 and its quarterly report on Form 10-Q for the quarter ended June 30, 2007, in each case pursuant to Section 4.02 of the Indenture; 
 WHEREAS, Section 9.02 of the Indenture provides that the Company, the Note Guarantors and the Trustee may amend the Indenture or the Notes outstanding thereunder with the written consent of the Holders of at
least a majority in principal amount of the Notes then outstanding; 
 WHEREAS, the Bondholders and the Company desire to enter into this
Agreement to provide for, among other things, the consent of the Bondholders to the proposed amendments (the “Proposed Amendments”) to the Indenture, as set forth in the Sixth Supplemental Indenture attached hereto as Annex B
(the “Supplemental Indenture”), among the Company, the Note Guarantors and the Trustee; and 
 WHEREAS, as a condition to
the willingness of the Company to enter into the Supplemental Indenture, the Company has required that the Bondholders enter into this Agreement. 
 NOW, THEREFORE, to induce the Company to enter into, and in consideration of the Company’s entering into, the Supplemental Indenture and in consideration of the premises and the representations, warranties and agreements contained
herein, the parties hereto agree as follows: 
 1. Covenants of the Company. The Company agrees as follows: 
 (a) Supplemental Indenture. On the Effectiveness Date (as defined below), the Company shall execute and deliver the Supplemental
Indenture to the Trustee and shall use its reasonable best efforts to cause the Trustee to execute the Supplemental Indenture. 







 (b) Consent Fee. Within five (5) business days of the Effectiveness Date, the
Company shall pay, in cash, to all Holders of the Notes an amount equal to $1.25 per $1,000 principal amount of Notes (the “Fee”) held by such Holder on May 11, 2007 (the “Record Date”). No accrued interest
will be paid on the Fee. 
 (c) Form 8-K. The Company shall execute and file with the Securities and Exchange
Commission (the “SEC”) a Form 8-K describing the transactions contemplated hereby, including as exhibits a copy of this Agreement (excluding all Annexes hereto) and the Supplemental Indenture, within two (2) business days of
the Effectiveness Date. 
 2. Covenants of the Bondholders. Each Bondholder, severally and not jointly, agrees as follows:

 (a) Consent of Subject Notes. Each Bondholder hereby (i) approves, ratifies, confirms and consents to, in all
respects, the Proposed Amendments and (ii) directs the Trustee to execute and deliver the Supplemental Indenture. Such Bondholder shall not withdraw or revoke (or cause to be withdrawn or revoked) such approval, ratification, confirmation or
consent or other approval in connection with the Proposed Amendments unless and until such consent is revoked in accordance with Section 5 hereof. 
 3. Representations and Warranties of the Company. The Company hereby represents and warrants to the Bondholders as of the date hereof as follows: 
 (a) Due Organization. The Company is duly organized, validly existing and in good standing under the laws of the jurisdiction of
its organization. 
 (b) Due Authorization; Binding Agreement. The Company has full right, power and authority to
execute and deliver this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly and validly authorized, executed and delivered by the Company and (assuming due authorization, execution and delivery by the
Bondholders) constitutes the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other
similar laws relating to or affecting creditors’ rights generally, and general equitable principles (whether considered in a proceeding in equity or at law). 
 (c) No Conflicts. None of the execution and delivery of this Agreement by the Company, the consummation of the transactions
contemplated hereby and compliance with the terms hereof by the Company will conflict with, result in any breach or violation of, or default (or an event which, with notice or lapse of time, or both, would constitute a 

  

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default) under the Company’s certificate of incorporation, bylaws or other governing instruments, any material contractual obligation to which the
Company is a party or any provision of any law, order, rule or regulation applicable to the Company, except for any such conflicts, violations, defaults or other occurrences that would not have a material adverse effect on the condition (financial
or otherwise) of the Company or prevent, delay or impede the performance by the Company of its obligations under this Agreement. No filing (other than a Form 8-K) with, and no permit, authorization, consent or approval of, any United States court or
governmental agency or body or any other entity is necessary for the execution of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby, except where the failure to make such filing or to obtain
such permit, authorization, consent or approval would not prevent, delay or impede the performance by the Company of its obligations under this Agreement. 
 (d) Litigation. There is no action, suit, investigation, complaint or other proceeding pending against the Company or, to the knowledge of the Company, threatened against the Company or any other person or
entity that restricts in any material respect or prohibits (or, if successful, would restrict or prohibit) the exercise by any party or beneficiary of its rights under this Agreement or the performance by any party of its obligations under this
Agreement. 
 4. Representations and Warranties of the Bondholders. Each Bondholder hereby, severally and not jointly, represents
and warrants to the Company as of the date hereof as follows: 
 (a) Due Organization. If other than a natural person,
such Bondholder is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has all requisite corporate, partnership or other power and authority to enter into this Agreement and to consummate
the transactions contemplated by, and perform its respective obligations under, this Agreement. 
 (b) Due Authorization;
Binding Agreement. Such Bondholder has full right, power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly and validly authorized, executed and delivered by
such Bondholder and (assuming due authorization, execution and delivery by the Company) constitutes the valid and binding obligation of such Bondholder enforceable against such Bondholder in accordance with its terms, subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, and general equitable principles (whether considered in a proceeding in equity or at law).

 (c) No Conflicts. None of the execution and delivery of this Agreement by such Bondholder, the consummation of the
transactions contemplated hereby and compliance with the terms hereof by such Bondholder will conflict with, result in any breach or violation of, or default (or an event which, with notice or lapse of time, or both, would constitute a default)
under such Bondholder’s certificate of incorporation, bylaws or other governing instruments, any material contractual obligation to which such 

  

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Bondholder is a party or any provision of any law, order, rule or regulation applicable to such Bondholder, except for any such conflicts, violations,
defaults or other occurrences that would not have a material adverse effect on the condition (financial or otherwise) of such Bondholder or prevent, delay or impede the performance by such Bondholder of its obligations under this Agreement. No trust
of which such Bondholder is a trustee requires the consent of any beneficiary to the execution and delivery of this Agreement or to the consummation of the transactions contemplated hereby. No filing with, and no permit, authorization, consent or
approval of, any United States court or governmental agency or body or any other entity is necessary for the execution of this Agreement by such Bondholder and the consummation by such Bondholder of the transactions contemplated hereby, except where
the failure to make such filing or to obtain such permit, authorization, consent or approval would not prevent, delay or impede the performance by such Bondholder of its obligations under this Agreement. 
 (d) Ownership of the Subject Notes. On the Record Date, such Bondholder was and on the date hereof, the Bondholder is, the
beneficial owner of the aggregate principal amount of Notes set forth opposite its name on Annex A hereto (held through the DTC Participant listed on such Annex A). Such Bondholder does not own, beneficially or of record, any Notes of
the Company or securities convertible or exchangeable for Notes of the Company other than as set forth on Annex A hereto. Such Bondholder has the sole right and power to vote and dispose of the Subject Notes, and none of such Subject Notes is
subject to any voting trust or other agreement, arrangement or restriction with respect to the voting or transfer of any of the Subject Notes, except for this Agreement. 
 (e) Litigation. There is no action, suit, investigation, complaint or other proceeding pending against such Bondholder or, to the
knowledge of such Bondholder, threatened against such Bondholder or any other person or entity that restricts in any material respect or prohibits (or, if successful, would restrict or prohibit) the exercise by any party or beneficiary of its rights
under this Agreement or the performance by any party of its obligations under this Agreement. 
 (f) Information. Such
Bondholder (i) has been advised by professional, legal and tax advisors of its choosing and has reviewed, or has had the opportunity to review, with the assistance of such advisors, sufficient information (including all documents filed or
furnished to the Securities and Exchange Commission by the Company) in order to determine whether or not to grant its approval, ratification, confirmation and consent to the Proposed Amendments and (ii) has had sufficient access to the Company
necessary for such Bondholder to make such determination. Such Bondholder acknowledges that the financial statements of the Company are subject to the Restatement, and has granted its approval, ratification, confirmation and consent to the Proposed
Amendments with full knowledge of the pending Restatement. 
 (g) Tax Matters. Such Bondholder acknowledges that the
change in yield on the Notes resulting from the payment of the Fee may result in a deemed exchange for U.S. federal income tax purposes of Notes for new Notes, although the Company does not believe that this will be the case. Although not free from
doubt, if the change in yield 

  

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does result in such a deemed exchange, the Company intends to treat the deemed exchange of the Notes for new Notes as a tax-free recapitalization for U.S.
federal income tax purposes. If the deemed exchange qualifies as a tax-free recapitalization and if the Fee is treated as separate consideration, a Bondholder will generally not recognize any gain or loss on the deemed exchange and a
Bondholder’s tax basis and holding period in the new Notes will equal such Bondholder’s adjusted tax basis and holding period in the Notes immediately prior to the adoption of the Proposed Amendments. Such Bondholder further acknowledges
that regardless of whether any deemed exchange qualifies as a tax-free recapitalization, depending on the issue price assigned to the new Notes, a deemed exchange could result in the creation of original issue discount with respect to the new Notes
that, subject to certain offsets, would be includable in the income of a Bondholder subject to U.S. federal income tax on a net income basis over the remaining term of the new Notes in advance of the receipt of cash attributable to such income.
Bondholders should consult their own tax advisors regarding the foregoing matters in light of their particular circumstances. 
 5. Revocation of Consents. The consent granted pursuant to Section 2 hereof shall become null and void and have no further effect if the Supplemental Indenture is not executed by the Company and delivered to the Trustee on
the Effectiveness Date. Nothing in this Section 5 shall relieve any party of liability for breach of this Agreement. 
 6. General Provisions. 
 (a) Effectiveness of
this Agreement. The obligations of the Company pursuant to Section 1 hereof shall become effective on the date (the “Effectiveness Date”) the Company confirms receipt of (i) the consent to the Proposed Amendments of
the holders of not less than a majority of the aggregate principal amount of outstanding Notes and (ii) the consent of the holders of not less than a majority of the aggregate principal amount of the Company’s outstanding 10 1/4% Series B Senior Subordinated Notes due 2009 (the “2009 Notes”) to amendments to the indenture
pursuant to which the 2009 Notes were issued substantially similar to the Proposed Amendments, and, in each case, on such date the holders of the Notes and the 2009 Notes shall no longer have the right to revoke such consent except in accordance
with Section 5 hereof. 
 (b) Amendments, etc. No amendment, modification, termination, or waiver of any
provision of this Agreement, and no consent to any departure by any of the Bondholders or the Company from any provision of this Agreement, shall be effective unless it shall be in writing and signed and delivered by all the Bondholders party hereto
and the Company, and then it shall be effective only in the specific instance and for the specific purpose for which it is given. 
 (c) Disclosure. Each Bondholder hereby consents to public disclosure, including in a press release and a Form 8-K to be filed with the SEC, of the identity of such Bondholder, the aggregate principal amount of Notes that will be
bound by this Agreement and the nature of its commitments, arrangements and understandings pursuant to this Agreement. Each Bondholder agrees that it shall not make any public announcement or public disclosure regarding this Agreement or the
transactions contemplated herein (except to the extent required by applicable law or legal process) without the prior written consent of the Company. 
  

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 (d) Confidentiality. The Company shall, and shall cause its affiliates to, keep
the principal amount of Notes beneficially owned by each Bondholder party hereto strictly confidential; provided, however, that (i) the aggregate principal amount of Notes beneficially owned by the Bondholders party hereto may be disclosed and
(ii) the principal amount of Notes beneficially owned by any Bondholder may only be disclosed (A) with the written consent of such Bondholder; (B) to affiliates, directors, officers, employees and agents of the Company, including
legal counsel, the Trustee and other persons reasonably required in order to enter into the Supplemental Indenture, (C) to the extent required by law, including securities laws, or by subpoena or similar legal process, provided, if appropriate,
that the non-disclosing parties have been given an opportunity to defend, limit or protect such disclosure, (D) in connection with any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder or (E) to
the extent such terms (x) become publicly available other than as a result of a breach of this Section 6(d) or (y) become available to the disclosing party on a non-confidential basis from a source other than the non-disclosing
parties. 
 (e) Notice. All notices and other communications hereunder shall be in writing and shall be deemed given if
delivered personally, telecopied (with confirmation), mailed by registered or certified mail (return receipt requested) or delivered by an express courier (with confirmation) to the Company at 1000 American Media Way, Boca Raton, Florida 33464,
Attention: Chief Financial Officer, Telephone: (561) 997-7733, Facsimile: (561) 998-7492, with a copy to Ken Wallach at Simpson Thacher & Bartlett LLP, 425 Lexington Avenue, New York, New York 10017, Telephone (212) 455-2000,
Facsimile: (212) 455-2502, and to each Bondholder at the address set forth under such Bondholder’s name in Annex A hereto (or at such other address for a party as shall be specified by like notice). 
 (f) Severability. Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that
jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction. 
 (g) Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York. 
 (h) Entire Agreement. This Agreement embodies the
entire agreement and understanding of the Bondholders and the Company, and supersedes all prior agreements or understandings, with respect to the subject matter of this Agreement. Notwithstanding the foregoing, capitalized terms used but not defined
in this Agreement have the meanings assigned to such terms in the Indenture. 
  

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 (i) Specific Performance; Enforcement. Each of the parties hereto recognizes and
acknowledges that a breach by it of any covenants or agreements contained in this Agreement will cause the other party to sustain damages for which it would not have an adequate remedy at law for money damages, and therefore, each of the parties
hereto agrees that in the event of any such breach the aggrieved party shall be entitled to the remedy of specific performance of such covenants and agreements and injunctive and other equitable relief in addition to any other remedy to which it may
be entitled, at law or in equity. The parties agree that they shall be entitled to enforce specifically the terms and provisions of this Agreement in the courts of the State of New York and any Federal court, sitting in the state of New York, this
being in addition to any other remedy to which they are entitled at law or in equity. In addition, each of the parties hereto (i) consents to submit such party to the personal jurisdiction of any Federal court located in the State of New York
or any New York state court in the event any dispute arises out of this Agreement or any of the transactions contemplated hereby, (ii) agrees that such party will not attempt to deny or defeat such personal jurisdiction by motion or other
request for leave from any such court, (iii) agrees that such party will not bring any action relating to this Agreement or the transactions contemplated hereby in any court other than a Federal court sitting in the state of New York or a New
York state court and (iv) waives any right to trial by jury with respect to any claim or proceeding related to or arising out of this Agreement or any of the transactions contemplated hereby. 
 (j) Counterparts; Facsimile. This Agreement may be executed in counterparts, all of which shall be considered one and the same
agreement, and shall become effective when counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart. This Agreement may be executed by facsimile
signatures of the parties hereto. 
 [Signature page follows] 
  

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 IN WITNESS WHEREOF, the Company and each Bondholder has caused this Agreement to be executed on its
behalf as of the date first written above. 
  

			
	AMERICAN MEDIA OPERATIONS, INC.
		
	By:	 	 /s/ Michael Kahane

	Name:	 	Michael Kahane
	Title:	 	 Executive Vice President, General
 Counsel & Secretary



  
 [8 7/8% Notes Consent Agreement Signature Page] 







 IN WITNESS WHEREOF, the Company and each Bondholder has caused this Agreement to be executed on its
behalf as the date first written above. 

			
	Putnam Investments
		
	by:	 	 /s/ Robert J. Black

	Name:	 	Robert J. Black
	Title:	 	Corporate Actions


 [8 7/8% Notes Consent Agreement Signature Page] 







 IN WITNESS WHEREOF, the Company and each Bondholder has caused this Agreement to be executed on its
behalf as of the date first written above. 
  

			
	GOLDMAN SACHS & CO.
		
	By:	 	 /s/ Alex Muchnik

	Name:	 	Alex Muchnik


 [8 7/8% Notes Consent Agreement Signature Page] 
  







 IN WITNESS WHEREOF, the Company and each Bondholder has caused this Agreement to be executed on its
behalf as of the date first written above. 
  

			
	STONEGATE CAPITAL MANAGEMENT, LLC
		
	By:	 	 /s/ Brian Hessel

	Name:	 	Brian Hessel
	Title:	 	Managing Partner
	
	 For and on behalf of:
 JWS CBO 2000-1,
LTD



 [8 7/8% Notes Consent Agreement Signature Page] 
  







 IN WITNESS WHEREOF, the Company and each Bondholder has caused this Agreement to be executed on its
behalf as the date first written above. 
  

			
	Babson Capital Management LLC
		
	by:	 	 /s/ Sophia E. P. Petrillo

	Name:	 	Sophia E. P. Petrillo
	Title:	 	Analyst
	
	 For and on behalf of:
 Newton CDO

Winterset Fund



 [8 7/8% Notes Consent Agreement Signature Page] 
  







 IN WITNESS WHEREOF, the Company and each Bondholder has caused this Agreement to be executed on its
behalf as of the date first written above. 
  

			
	Credit Suisse 
		
	By:	 	 /s/ Teri La Barbera

	Name:	 	Teri La Barbera
	Title:	 	Vice President


 [8 7/8% Notes Consent Agreement Signature Page] 
  







 IN WITNESS WHEREOF, the Company and each Bondholder has caused this Agreement to be executed on its
behalf as the date first written above. 
  

			
	OPPENHEIMERFUNDS, INC., as Investment Adviser to each of OPPENHEIMER CHAMPION INCOME FUND, OPPENHEIMER STRATEGIC INCOME FUND, OPPENHEIMER STRATEGIC BOND FUND/VA, and OPPENHEIMER HIGH
INCOME FUND/VA
		
	by:	 	 /s/ Thomas Swaney

	Name:	 	Thomas Swaney
	Title:	 	Portfolio Manager


 [8 7/8% Notes Consent Agreement Signature Page] 
  







 IN WITNESS WHEREOF, the Company and each Bondholder has caused this Agreement to be executed on its
behalf as the date first written above. 
  

			
	MUZINICH & COMPANY, INC.
		
	by:	 	 /s/ Mark Clark

	Name:	 	Mark Clark
	Title:	 	CFO, Muzinich & Company Inc. as Collateral Manager
	
	 For and on behalf of:
 Muzinich CBO II
Limited
 Muzinich Cashflow CBO Ltd.



 [8 7/8% Notes Consent Agreement Signature Page] 
  







 IN WITNESS WHEREOF, the Company and each Bondholder has caused this Agreement to be executed on its
behalf as the date first written above. 
  

			
	Capital Research and Management Company, as Investment Advisor for certain Accounts it manages
		
	by:	 	 /s/ Abner D. Goldstine

	Name:	 	Abner D. Goldstine
	Title:	 	Senior Vice President
	
	 For and on behalf of:
 American High-Income
Trust
 The Bond Fund of America, Inc.
 The Income Fund of
America, Inc.
 American Funds Insurance Series- Asset Allocation
 American Funds Insurance Series High-Income Bond Fund
 Capital World Bond Fund, Inc.



 [8 7/8% Notes Consent Agreement Signature Page] 







 IN WITNESS WHEREOF, the Company and each Bondholder has caused this Agreement to be executed on its
behalf as the date first written above. 
  

			
	Capital Guardian Trust Company, as Investment Advisor for certain accounts it manages
		
	by:	 	 /s/ Christopher D. Chen

	Name:	 	Christopher D. Chen
	Title:	 	Vice President
	
	 For and on behalf of:
 Robert
Bosch
 Capital Guardian Global High-Yield Fixed
 Income
Fund
 PFA Pension
 Qualcomm, Inc
 Capital International Fund Global-
 High Yield Fund



 [8 7/8% Notes Consent Agreement Signature Page] 







 Annex A 







 Annex B 
 Form of Supplemental Indenture