Document:

a50920187ex10_1.htm

Exhibit 10.1

 

OPEXA THERAPEUTICS, INC.

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

NOTICE OF STOCK OPTION GRANT

 

You have been granted the following Option to purchase Common Stock of Opexa Therapeutics, Inc. (the “Company”) under the Company’s Amended and Restated 2010 Stock Incentive Plan (the “Plan”):

 

	
Name of Optionee:

	
[[FIRSTNAME]] [[LASTNAME]]

	 	 
	
Total Number of Option Shares Granted:

	
[[SHARESGRANTED]]

	 	 
	
Type of Option:

	
x        Incentive Stock Option

	 	 
	 	 
 ̈        Nonstatutory Stock Option

	 	 
	
Exercise Price Per Share:

	
$[___]

	 	 
	
Grant Date:

	
[_______ __, 201__]

	 	 
	
Vesting Commencement Date:

	
[_______ __, 201__]

	 	 
	
Vesting Schedule:

	
The Shares subject to this Option become exercisable over a four-year period, with 25% vesting on the one-year anniversary of the Vesting Commencement Date and the remaining 75% vesting in equal increments quarterly thereafter (in arrears) over the remaining three years, subject to continuous Service from the Vesting Commencement Date.

	 	 
	
Vesting Acceleration:

	
The Shares will become fully vested if your Service is terminated by the Company without “Cause” following a “Change in Control,” as described in the Stock Option Agreement.

	 	 
	
Expiration Date:

	
[_______ __, 201__].  This Option expires earlier if your Service terminates earlier, as described in the Stock Option Agreement.

 

By your signature and the signature of the Company’s representative below, you and the Company agree that this Option is granted under and governed by the term and conditions of the Plan and the Stock Option Agreement (the “Agreement”), both of which are attached to and made a part of this document.

 

Opexa Therapeutics, Inc.

Notice of Stock Option Grant

 

  

  

  

 

By signing this document you further agree that the Company may deliver by e-mail all documents relating to the Plan or this Award (including without limitation, prospectuses required by the Securities and Exchange Commission) and all other documents that the Company is required to deliver to its security holders (including without limitation, annual reports and proxy statements).  You also agree that the Company may deliver these documents by posting them on a website maintained by the Company or by a third party under contract with the Company.  If the Company posts these documents on a website, it will notify you by e-mail.

 

	
OPTIONEE:

	
OPEXA THERAPEUTICS, INC.

	  	  
	  	  
	  	  	
By:

	  
	
Optionee’s Signature

	  

 

	
[[FIRSTNAME]] [[LASTNAME]]

	  	
Title:

	
President & CEO

	
Optionee’s Printed Name

	  

 

 

Opexa Therapeutics, Inc.

Notice of Stock Option Grant

 

  

  

  

 

OPEXA THERAPEUTICS, INC.

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

STOCK OPTION AGREEMENT

 

	
Tax Treatment

	
This Option is intended to be an incentive stock option under Section 422 of the Internal Revenue Code or a nonstatutory option, as provided in the Notice of Stock Option Grant. Even if this Option is designated as an incentive stock option, it shall be deemed to be a nonstatutory option to the extent required by the $100,000 annual limitation under Section 422(d) of the Internal Revenue Code.

	 	 
	
Vesting

	
This Option becomes exercisable in installments, as shown in the Notice of Stock Option Grant.  The Shares will become fully vested if your Service is terminated by the Company without “Cause” following a Change in Control (as defined in the Plan), so long as you execute and deliver a general release (in a customary form provided by the Company) of all claims against the Company or persons affiliated with the Company within forty-five (45) days following the date of termination, or such shorter period as the Company may require (with any potential revocation periods having expired).  “Cause” means (A) you commit a felony or another crime involving moral turpitude; (B) you fail to maintain an immigration status which allows you to work in the United States; (C) you materially violate any of the Company’s rules and regulations (including, without limitation, the rules of conduct) or any other policies and practices established by the Board of Directors; (D) you materially violate any agreement with the Company (including, without limitation, any Proprietary Information and Inventions Agreement); (E) you fail to exercise reasonable efforts to perform duties consistent with your position with the Company (including, without limitation, as reasonably instructed by the CEO) and such failure has not been cured within ten (10) days of notice to such effect from the Company; or (F) you commit any breach of fiduciary duty or misconduct that is likely to cause a material adverse effect upon the financial condition or business operations of the Company.

This Option will in no event become exercisable for additional Shares after your Service has terminated for any reason.

	 	 
	
Term

	
This Option expires in any event at the close of business at Company headquarters on the 10th anniversary of the Grant Date, as shown on the Notice of Stock Option Grant (fifth anniversary for a more than 10% stockholder as provided under the Plan if this is an incentive stock option). This Option may expire earlier if your Service terminates, as described below.

	 	 
	
Regular

Termination

	
If your Service terminates for any reason except death or “Total and Permanent Disability” (as defined in the Plan), then this Option will expire at the close of business at Company headquarters on the date three (3) months after the date your Service terminates (or, if earlier, the Expiration Date). The Company determines when your Service terminates for this purpose and all purposes under the Plan and its determinations are conclusive and binding on all persons.

 

 

Opexa Therapeutics, Inc.

Notice of Stock Option Grant

 

  

  

  

 

	
Death

	
If your Service terminates because of death, then this Option will expire at the close of business at Company headquarters on the date 12 months after the date your Service terminates (or, if earlier, the Expiration Date). During that period of up to 12 months, your estate or heirs may exercise the Option.

	 	 
	
Disability

	
If your Service terminates because of your Total and Permanent Disability, then this Option will expire at the close of business at Company headquarters on the date 12 months after the date your Service terminates (or, if earlier, the Expiration Date).

	 	 
	
Leaves of Absence

	
For purposes of this Option, your Service does not terminate when you go on a military leave, a sick leave or another bona fide leave of absence, if the leave was approved by the Company in writing and if continued crediting of Service is required by the terms of the leave or by applicable law. But your Service terminates when the approved leave ends, unless you immediately return to active work.

	 	 
	  	
If you go on a leave of absence, then the vesting schedule specified in the Notice of Stock Option Grant may be adjusted in accordance with the Company’s leave of absence policy or the terms of your leave. If you commence working on a part-time basis, then the vesting schedule specified in the Notice of Stock Option Grant may be adjusted in accordance with the Company’s part-time work policy or the terms of an agreement between you and the Company pertaining to your part-time schedule.

	 	 
	
Restrictions on

Exercise

	
The Company will not permit you to exercise this Option if the issuance of Shares at that time would violate any law or regulation. The inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary to the lawful issuance and sale of the Company stock pursuant to this Option shall relieve the Company of any liability with respect to the non-issuance or sale of the Company stock as to which such approval shall not have been obtained.

	 	 
	
Notice of Exercise

	
When you wish to exercise this Option you must provide a notice of exercise form in accordance with such procedures as are established by the Company and communicated to you from time to time. Any notice of exercise must specify how many Shares you wish to purchase and how your Shares should be registered. The notice of exercise will be effective when it is received by the Company. If someone else wants to exercise this Option after your death, that person must prove to the Company’s satisfaction that he or she is entitled to do so.

 

Opexa Therapeutics, Inc.

Notice of Stock Option Grant

 

  

  

  

 

	
Form of Payment

	
When you submit your notice of exercise, you must include payment of the Option exercise price for the Shares you are purchasing. Payment may be made in the following form(s):

	 	 
	  	
•

	
Your personal check, a cashier’s check or a money order.

	 	 	 
	  	
•

	
Certificates for Shares that you own, along with any forms needed to effect a transfer of those Shares to the Company. The value of the Shares, determined as of the effective date of the Option exercise, will be applied to the Option exercise price. Instead of surrendering Shares, you may attest to the ownership of those Shares on a form provided by the Company and have the same number of Shares subtracted from the Shares issued to you upon exercise of the Option. However, you may not surrender or attest to the ownership of Shares in payment of the exercise price if your action would cause the Company to recognize a compensation expense (or additional compensation expense) with respect to this Option for financial reporting purposes.

	 	 	 
	  	
•

	
By delivery on a form approved by the Company of an irrevocable direction to a securities broker approved by the Company to sell all or part of the Shares that are issued to you when you exercise this Option and to deliver to the Company from the sale proceeds an amount sufficient to pay the Option exercise price and any withholding taxes. The balance of the sale proceeds, if any, will be delivered to you. The directions must be given by providing a notice of exercise form approved by the Company.

	 	 	 
	  	
•

	
By delivery on a form approved by the Company of an irrevocable direction to a securities broker or lender approved by the Company to pledge Shares that are issued to you when you exercise this Option as security for a loan and to deliver to the Company from the loan proceeds an amount sufficient to pay the Option exercise price and any withholding taxes. The directions must be given by providing a notice of exercise form approved by the Company.

	 	 	 
	  	
•

	
Any other form permitted by the Committee in its sole discretion.

	 	 	 
	  	
Notwithstanding the foregoing, payment may not be made in any form that is unlawful, as determined by the Committee in its sole discretion.

	 	 
	
Withholding

Taxes and Stock

Withholding

	
You will not be allowed to exercise this Option unless you make arrangements acceptable to the Company to pay any withholding taxes that may be due as a result of this Award or the Option exercise.  These arrangements, at the sole discretion of the Company, may include (a) having the Company withhold taxes from the proceeds of the sale of the Shares, either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf pursuant to this authorization), (b) having the Company withhold Shares that otherwise would be issued to you when you exercise this Option having a Fair Market Value equal to the amount necessary to satisfy the minimum statutory withholding amount, or (c) any other arrangement approved by the Company.  The Fair Market Value of any Shares withheld, determined as of the effective date of the Option exercise, will be applied as a credit against the withholding taxes.  You also authorize the Company, or your actual employer, to satisfy all withholding obligations of the Company or your actual employer with respect to this Award from your wages or other cash compensation payable to you by the Company or your actual employer.

 

Opexa Therapeutics, Inc.

Notice of Stock Option Grant

 

  

  

  

 

	
Restrictions on

Resale

	
You agree not to sell any Shares at a time when applicable laws, Company policies or an agreement between the Company and its underwriters prohibit a sale. This restriction will apply as long as your Service continues and for such period of time after the termination of your Service as the Company may specify.

	 	 
	
Transfer of Option

	
In general, only you can exercise this Option prior to your death. You may not sell, transfer, assign, pledge or otherwise dispose of this Option, other than as designated by you by will or by the laws of descent and distribution, except as provided below. For instance, you may not use this Option as security for a loan. If you attempt to do any of these things, this Option will immediately become invalid. You may in any event dispose of this Option in your will. Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your former spouse, nor is the Company obligated to recognize your former spouse’s interest in your Option in any other way.

	 	 
	  	
However, if this Option is designated as a nonstatutory stock option in the Notice of Stock Option Grant, then the Committee may, in its sole discretion, allow you to transfer this Option as a gift to one or more family members. For purposes of this Agreement, “family member” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law (including adoptive relationships), any individual sharing your household (other than a tenant or employee), a trust in which one or more of these individuals have more than 50% of the beneficial interest, a foundation in which you or one or more of these persons control the management of assets, and any entity in which you or one or more of these persons own more than 50% of the voting interest.

	 	 
	  	
In addition, if this Option is designated as a nonstatutory stock option in the Notice of Stock Option Grant, then the Committee may, in its sole discretion, allow you to transfer this option to your spouse or former spouse pursuant to a domestic relations order in settlement of marital property rights.

	 	 
	  	
The Committee will allow you to transfer this Option only if both you and the transferee(s) execute the forms prescribed by the Committee, which include the consent of the transferee(s) to be bound by this Agreement.

 

Opexa Therapeutics, Inc.

Notice of Stock Option Grant

 

  

  

  

 

	
Retention Rights

	
Neither your Option nor this Agreement gives you the right to be employed or retained by the Company or a subsidiary of the Company in any capacity. The Company and its subsidiaries reserve the right to terminate your Service at any time, with or without cause.

	 	 
	
Stockholder

Rights

	
Your Options carry neither voting rights nor rights to dividends. You, or your estate or heirs, have no rights as a stockholder of the Company unless and until you have exercised this Option by giving the required notice to the Company and paying the exercise price. No adjustments will be made for dividends or other rights if the applicable record date occurs before you exercise this Option, except as described in the Plan.

	 	 
	
Adjustments

	
In the event of a stock split, a stock dividend or a similar change in Company Shares, the number of Shares covered by this Option and the exercise price per Share shall be adjusted pursuant to the Plan.

	 	 
	
Successors and

Assigns

	
Except as otherwise provided in the Plan or this Agreement, every term of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors, transferees and assigns.

	 	 
	
Notice

	
Any notice required or permitted under this Agreement shall be given in writing and shall be deemed effectively given upon the earliest of personal delivery, receipt or the third full day following mailing with postage and fees prepaid, addressed to the other party hereto at the address last known in the Company’s records or at such other address as such party may designate by ten (10) days’ advance written notice to the other party hereto.

	 	 
	
Applicable Law

	
This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard to their choice-of-law provisions).

	 	 
	
The Plan and

Other Agreements

	
The text of the Plan is incorporated in this Agreement by reference. All capitalized terms in the Agreement shall have the meanings assigned to them in the Plan. This Agreement and the Plan constitute the entire understanding between you and the Company regarding this Option. Any prior agreements, commitments or negotiations concerning this Option are superseded. This Agreement may be amended by the Committee without your consent; however, if any such amendment would materially impair your rights or obligations under the Agreement, this Agreement may be amended only by another written agreement, signed by you and the Company.

 

BY SIGNING THE COVER SHEET OF THIS AGREEMENT,

 

YOU AGREE TO ALL OF THE TERMS AND CONDITIONS

 

DESCRIBED ABOVE AND IN THE PLAN.

 

 

Opexa Therapeutics, Inc.

Notice of Stock Option Grant

 

  

  

  

 

OPEXA THERAPEUTICS, INC.

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

NOTICE OF CASH EXERCISE OF STOCK OPTION

 

	
OPTIONEE INFORMATION:

	  
	  	  
	
Name:

	  	  	
Social Security Number:

	  
	  	  	  	  	  
	
Address:

	  	  	
Employee Number:

	  

 

	
OPTION INFORMATION:

	  
	  	  
	Date of Grant:     _______________, 201___	
Type of Stock Option:

	
Exercise Price per Share:  $______________

	
⁭___

	
Nonstatutory (NSO)

	
Total number of Shares of Opexa Therapeutics, Inc.

(the “Company”) covered by option:  __________

	
⁭___

	
Incentive (ISO)

 

Number of Shares of the Company for which option is being exercised now:                   (“Purchased Shares”).

Total exercise price for the Purchased Shares: $                            

Form of payment enclosed:

 

Check for $                  , payable to “Opexa Therapeutics, Inc.”

 

Name(s) in which the Purchased Shares should be registered:

_______________________________________________________

 

	
The certificate for the Purchased Shares should be sent to the following address:

	
____________________________________________

____________________________________________

____________________________________________

____________________________________________

 

 

ACKNOWLEDGMENTS:

 

	
1.

	
I understand that all sales of Purchased Shares are subject to compliance with the Company’s policy on securities trades.

	
2.

	
I hereby acknowledge that I received and read a copy of the prospectus describing the Company’s Amended and Restated 2010 Stock Incentive Plan and the tax consequences of an exercise.

	
3.

	
In the case of a nonstatutory option, I understand that I must recognize ordinary income equal to the spread between the fair market value of the Purchased Shares on the date of exercise and the exercise price. I further understand that I am required to pay withholding taxes at the time of exercising a nonstatutory option.

	
4.

	
In the case of an incentive stock option, I agree to notify the Company if I dispose of the Purchased Shares before I have met both of the tax holding periods applicable to incentive stock options (that is, if I make a disqualifying disposition).

 

	
SIGNATURE AND DATE:

	  
	  	  
	  	  
	  	  	  	
 __, 201__

 

 

Opexa Therapeutics, Inc.

Notice of Stock Option GrantExhibit 10.1

EXECUTION VERSION

 

AMENDMENT NO. 3 TO

REVOLVING CREDIT AGREEMENT

 

AMENDMENT
NO. 3, dated as of August 8, 2014 (this “Amendment”) to the Revolving Credit Agreement dated as of December
22, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among American Media, Inc. (the “Borrower”), JPMorgan Chase Bank, N.A., as administrative agent (in such capacity,
the “Administrative Agent”), and the lenders from time to time party thereto
(the “Lenders”). Capitalized terms used and not otherwise defined herein shall have the meanings assigned
to them in the Credit Agreement.

 

WHEREAS, pursuant to the Credit Agreement,
the Lenders have extended credit to the Borrower on the terms and conditions set forth in the Credit Agreement;

 

WHEREAS, the Borrower has informed the Administrative
Agent and each Lender that the Borrower has failed to furnish to the Administrative Agent (i) the financial statements, reports
and other documents as required under Section 5.01(a) of the Credit Agreement with respect to the fiscal year of the Borrower ended
March 31, 2014 and (ii) the related deliverables required under Sections 5.01(c) and 5.03(b) of the Credit Agreement (collectively,
the “Specified Default”);

 

WHEREAS, the Borrower has informed the Administrative
Agent and each Lender that the Borrower has entered into a non-binding letter of intent (the “Letter of Intent”)
with certain investors of the Borrower (collectively, the “Investors”) with terms as set forth in the Form 8-K
filed with the SEC on July 9, 2014, pursuant to which (i) the Investors will acquire 100% of the issued and outstanding common
stock of the Borrower through a merger (the “Merger”) and (ii) the Loan Parties and the Investors or their affiliates
will enter into other transactions contemplated by the Letter of Intent (together with the Merger, the “Transactions”);

 

WHEREAS, the Borrower has informed the Administrative
Agent and each Lender that certain Loan Parties intend to sell certain assets of such Loan Parties to Gould Paper Corporation for
the aggregate purchase price of approximately $6,500,000 (the “Specified Sale”); and

 

WHEREAS, upon Borrower’s request, the
Required Lenders have, subject to the terms and conditions set forth herein, consented to amend certain provisions of the Credit
Agreement, extend the Waiver Period (as hereinafter defined) relating to the Specified Default and waive any Default or Event of
Default relating to the Specified Sale.

 

NOW, THEREFORE, the parties hereto hereby
agree as follows:

 

    	 

    	 

    

 

Section
1.          Amendments to Credit Agreement.

 

(a)          The
following definitions are hereby added to Section 1.01 of the Credit Agreement in proper alphabetical order:

 

““Amendment No. 3”
means Amendment No. 3 to Revolving Credit Agreement, dated as of August 8, 2014, among the Borrower, the Lenders party thereto
and the Administrative Agent.”

 

““Amendment No. 3 Effective
Date” has the meaning assigned to the term “Amendment Effective Date” under Amendment No. 3.”

 

““Indentures”
means the Senior Secured Notes Indenture, Second Lien Indenture and Second Lien PIK Indenture.”

 

““Letter of Intent”
means that certain non-binding letter of intent, dated July 8, 2014, among the Borrower and certain investors of the Borrower,
with terms as set forth in the Form 8-K filed with the SEC on July 9, 2014.”

 

““Merger”
shall mean the merger of AMI Merger Corporation, a wholly-owned subsidiary of AMI Parent Holdings LLC, into the Borrower, with
the Borrower as the surviving corporation as contemplated by the Letter of Intent.

 

““Merger Transactions”
means all transactions relating to the Merger and the other transactions relating to or contemplated by the Letter of Intent and
any and all definitive documentation relating thereto, including, without limitation, the payment of the merger consideration,
the payment of fees and expenses pursuant to the definitive documentation relating to the Merger, the receipt of all amendments
and consents under the Borrower’s existing debt and equity documents and the issuance of Second Lien PIK Notes.”

 

““Related Person”
with respect to any Permitted Holder means: (1) any controlling stockholder or a majority (or more) owned Subsidiary of such Permitted
Holder or, in the case of an individual, any spouse or immediate family member of such Permitted Holder, any trust created for
the benefit of such individual or such individual’s estate, executor, administrator, committee or beneficiaries; (2) any
fund managed by or under common management with, such Permitted Holder and any management company of such Permitted Holder; or
(3) any trust, corporation, partnership or other entity, the beneficiaries, stockholders, partners, owners or Persons beneficially
holding a majority (or more) controlling interest of which consist of such Permitted Holder and/or such other Persons referred
to in the immediately preceding clauses (1) and (2).”

 

    	-2-

    	 

    

 

““Second Lien PIK Indenture”
means the indenture in respect of the Second Lien PIK Notes dated as October 2, 2013, among the Borrower and the Second Lien PIK
Trustee, as amended or supplemented from time to time.”

 

““Second Lien PIK Notes”
means the 10% Second Lien Senior Secured PIK Notes due 2018 issued under the Second Lien PIK Indenture, as the same may be amended,
amended and restated, modified, supplemented and/or extended from time to time in accordance with the terms hereof and thereof.”

 

““Second Lien PIK Trustee”
means Wilmington Trust, National Association, as trustee for the holders of Second Lien PIK Notes.”

 

(b)          The
definition of “Change in Control” is hereby amended by adding the following text at the end of such definition:

 

“Notwithstanding the foregoing:
(A) any holding company whose only significant asset is Equity Interests of the Borrower or any direct or indirect parent of the
Borrower shall not itself be considered a “person” or “group” for purposes of this definition; (B) the
transfer of assets between or among the Restricted Subsidiaries or Borrower shall not itself constitute a Change in Control; (C)
the term “Change in Control” shall not include a merger or consolidation of the Borrower (or any direct or indirect
parent thereof) with, or the sale, assignment, conveyance, transfer, lease or other disposition of all or substantially all of
the assets of the Borrower (or direct or indirect parent thereof) to, an Affiliate incorporated or organized solely for the purpose
or reincorporating or reorganizing the Borrower in another jurisdiction and/or for the sole purpose of forming or collapsing a
holding company structure; and (D) a “person” or “group” shall not be deemed to have beneficial ownership
of securities subject to a stock purchase agreement, merger agreement or similar agreement (or voting or option agreement related
thereto) until the consummation of the transactions contemplated by such agreement.”

 

(c)          The
definition of “Permitted Holders” is hereby amended by replacing it in its entirety with the following:

 

““Permitted Holders”
means (i) (x) prior to the consummation of the Merger Transactions, (A) Angelo, Gordon & Co., L.P., (B) Avenue Capital Management
II, L.P., (C) Capital Research and Management Company, Capital Guardian Trust Company and Capital International, Inc., (D) Credit
Suisse Securities (USA) LLC and (E) Regiment Capital Management, LLC and (y) upon the consummation of the Merger Transactions,
(A) Chatham Asset Management, LLC, (B) Leon Cooperman and (C) David J. Pecker, (ii) any group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Exchange Act or any successor provision) of which any of the Permitted Holders specified in clause (i) above
are members, and (iii) the respective Affiliates and Related Persons of each of the foregoing; provided that in the case
of any group specified in clause (ii) above, without giving effect to such group, Permitted Holders specified in clause (i) above
and their respective Related Persons must collectively beneficially own at least 50% of the total voting power of the voting stock
of the Borrower.”

 

    	-3-

    	 

    

 

(d)          Section
6.01(vii) of the Credit Agreement is hereby amended by replacing it in its entirety with the following:

 

“(vii)      (w)
the Senior Secured Notes, (x) the Second Lien Notes and (y) the Second Lien PIK Notes in an aggregate principal amount not to exceed
$114.0 million (of which up to $12.5 million issued after the Amendment No. 3 Effective Date shall only be permitted to be incurred
pursuant to this Section 6.01(vii)(y) if incurred in connection with the Merger Transactions) and (z) any Permitted Refinancing
Indebtedness incurred to refinance any Indebtedness permitted under this clause (vii);”

 

(e)          Section
6.02(ix) of the Credit Agreement is hereby amended by replacing it in its entirety with the following:

 

“(ix)        Liens
on Collateral securing (w) the Senior Secured Notes, (x) the Second Lien Notes, (y) the Second Lien PIK Notes permitted under Section
6.01(vii)(y) and the accrual of interest and the payment of interest in the form of additional Second Lien PIK Notes or (z) Permitted
Refinancing Indebtedness in respect thereof incurred pursuant to this Agreement so long as such Liens are subject to the First
Lien Intercreditor Agreement and the Second Lien Intercreditor Agreement, as applicable, or other intercreditor agreements in form
and substance reasonably satisfactory to the Administrative Agent.

 

(f)    
      Section 6.08(a)(vii) of the Credit Agreement is hereby amended by replacing it in its
entirety with the following:

 

“(vii) the Borrower may make
Restricted Payments of fees and expenses required to be paid by the Loan Parties in connection with the Merger Transactions,”

 

(g)          Section
6.08(b) of the Credit Agreement is hereby amended by adding the following text at the end of such Section:

 

    	-4-

    	 

    

 

 

“Notwithstanding anything herein
to the contrary, the Borrower will not, nor will it permit any Restricted Subsidiary to, make or agree to pay or make, directly
or indirectly, any payment or other distribution (whether in cash, securities or other property) of or in respect of the Senior
Secured Notes on or prior to June 15, 2015 or any payment or other distribution (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or
termination of the Senior Secured Notes on or prior to June 15, 2015, except (x) payment of regularly scheduled interest and any
mandatory prepayments and mandatory offers to purchase (including any premiums required under the documents governing such Indebtedness),
in each case as and when due (or thereafter) in respect of the Senior Secured Notes (including, without limitation, any regularly
scheduled interest payments which the Borrower or such Restricted Subsidiary may elect to pay in cash or by the issuance of additional
Indebtedness), (y) refinancings of the Senior Secured Notes to the extent that the Indebtedness incurred to refinance such other
Indebtedness is permitted under Section 6.01 and (z) refinancings of the Senior Secured Notes with the Net Proceeds of any issuance
of Equity Interests by the Borrower to any Person other than the Borrower or any Restricted Subsidiary.”

 

(h)          Section
6.12 of the Credit Agreement is hereby amended by replacing it in its entirety with the following:

 

“SECTION 6.12         First
Lien Leverage Ratio. The Borrower will not permit the First Lien Leverage
Ratio as of the last day of any fiscal quarter ending on any date during any period set forth below to exceed the ratio set forth
below opposite such period:

 

	Period	 	Ratio
	 	 	 
	Effective Date to and including June 30, 2013	 	4.75 to 1.00
	 	 	 
	July 1, 2013 to and including March 31, 2014	 	4.50 to 1.00
	 	 	 
	April 1, 2014 to and including June 30, 2015	 	5.25 to 1.00
	 	 	 
	July 1, 2015 and thereafter	 	4.50 to 1.00

 

Section
2.          Waivers and Consents.

 

(a)          As
of the Waiver Effective Date (as hereinafter defined), the Required Lenders hereby waive the Specified Default until the expiration
of the Waiver Period. As used herein, the term “Waiver Period” shall mean the period commencing on the Waiver
Effective Date and expiring on the earlier of (i) August 15, 2014 and (ii) immediately prior to the consummation of the Merger.

 

(b)          Upon
the expiration of the Waiver Period, the agreement of the Required Lenders hereunder to waive the Specified Default shall immediately
terminate without the requirement of any demand, presentment, protest, or notice of any kind, all of which the Borrower and each
other Loan Party hereby waives.

 

    	-5-

    	 

    

 

 

(c)          Notwithstanding
anything set forth in the Credit Agreement to the contrary, the Required Lenders hereby consent to the Specified Sale and permanently
waive any Default or Event of Default that may arise due to the consummation of the Specified Sale.

 

Section 3.          Conditions.

 

The
waivers contained in Section 2 of this Amendment shall become effective on the date (the “Waiver
Effective Date”) on which this Amendment has been signed by the Borrower and the Required Lenders. The amendments contained
in Section 1 of this Amendment shall become effective on the date (the “Amendment Effective Date”) on which:

 

(a)          This
Amendment has been signed by the Borrower and the Required Lenders.

 

(b)          The
Borrower shall have paid a consent fee for the account of each Lender that has executed a counterpart to this Amendment on or before
5:00 p.m. (New York City time) on August 11, 2014, in an amount equal to 0.50% of the outstanding principal amount of such Lender’s
Revolving Commitments in effect immediately prior to the Amendment Effective Date.

 

(c)          Substantially
concurrently with the Amendment Effective Date, the Administrative Agent shall have received an executed copy of the Note Purchase
Agreement, among the Borrower and certain funds and accounts managed by Chatham Asset Management, LLC and Omega Charitable Partnership,
L.P. providing for the issuance of Second Lien PIK Notes in an aggregate principal amount plus the accrued interest thereon of
no less than $12,500,000.

 

Section
4.          Counterparts.

 

This Amendment may be executed in counterparts
(and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Amendment by
telecopy or electronic transmission (including in .pdf or similar format) shall be effective as delivery of a manually executed
counterpart of this Amendment.

 

Section
5.          Applicable Law.

 

THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF NEW YORK.

 

    	-6-

    	 

    

 

 

Section
6.          Headings.

 

Section headings herein and in the Loan Documents
are included for convenience of reference only and shall not affect the interpretation of this Amendment or any Loan Document.

 

Section
7.          Effect of Amendment.

 

On and after the Amendment Effective Date,
each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words
of like import referring to the Credit Agreement, and each reference in each of the Loan Documents to “the Credit Agreement,”
“thereunder,” “thereof” or words of like import referring to the Credit Agreement, shall mean and be a
reference to the Credit Agreement as amended by this Amendment. The Credit Agreement and each of the other Loan Documents, as supplemented
by this Amendment, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed.
Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of
or otherwise affect the rights and remedies of the Lenders or the Administrative Agent under the Credit Agreement or any other
Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or
agreements contained in the Credit Agreement or any other provision of the Credit Agreement or any other Loan Document, all of
which are ratified and affirmed in all respects and shall continue in full force and effect.

 

    	-7-

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be duly executed as of the date first above written.

 

	 	AMERICAN MEDIA, INC., as Borrower
	 	 	 
	 	By:	/s/ Christopher Polimeni
	 	Name:	Christopher Polimeni
	 	Title:	Executive Vice President, Chief Financial Officer and Treasurer

 

[American Media Credit Agreement Amendment
No. 3]

 

    	 

    	 

    

 

 

	 	SIGNATURE PAGE TO AMENDMENT NO. 3 DATED AS OF August 8, 2014, AMONG AMERICAN MEDIA, INC. AND THE LENDERS PARTY HERETO
	 	 
	 	Lender Name:
	 	 
	 	JPMorgan Chase Bank, N.A.
	 	 	 	 
	 	By:	/s/ Charles Holmes
	 	 	Name:	Charles Holmes
	 	 	Title:	Executive Director

 

[American Media Credit Agreement Amendment
No. 3]

 

    	 

    	 

    

 

 

	 	SIGNATURE PAGE TO AMENDMENT NO. 3 DATED AS OF August 8, 2014, AMONG AMERICAN MEDIA, INC. AND THE LENDERS PARTY HERETO
	 	 	 	 
	 	Lender Name:
	 	 
	 	BDIF LLC
	 	 
	 	By: Guggenheim Partners Investment Management, LLC as Investment Manager
	 	 	 	 
	 	By:	/s/ Kaitlin Trinh
	 	 	Name:	Kaitlin Trinh
	 	 	Title:	Managing Director

 

[American Media Credit Agreement Amendment
No. 3]

 

    	 

    	 

    

 

 

	 	SIGNATURE PAGE TO AMENDMENT NO. 3 DATED AS OF August 8, 2014, AMONG AMERICAN MEDIA, INC. AND THE LENDERS PARTY HERETO
	 	 	 	 
	 	Lender Name:
	 	 
	 	IN-FP1 LLC
	 	 
	 	By: Guggenheim Partners Investment Management, LLC as Investment Manager
	 	 	 	 
	 	By:	/s/ Kaitlin Trinh
	 	 	Name:	Kaitlin Trinh
	 	 	Title:	Managing Director

 

[American Media Credit Agreement Amendment
No. 3]

 

    	 

    	 

    

 

 

	 	SIGNATURE PAGE TO AMENDMENT NO. 3 DATED AS OF August 8, 2014, AMONG AMERICAN MEDIA, INC. AND THE LENDERS PARTY HERETO
	 	 
	 	Lender Name:
	 	 
	 	IN-FP2 LLC
	 	 
	 	By: Guggenheim Partners Investment Management, LLC as Investment Manager
	 	 	 	 
	 	By:	/s/ Kaitlin Trinh
	 	 	Name:	Kaitlin Trinh
	 	 	Title:	Managing Director

 

[American Media Credit Agreement Amendment
No. 3]

 

    	 

    	 

    

 

 

	 	SIGNATURE PAGE TO AMENDMENT NO. 3 DATED AS OF August 8, 2014, AMONG AMERICAN MEDIA, INC. AND THE LENDERS PARTY HERETO
	 	 
	 	Lender Name:
	 	 
	 	IN-FP3 LLC
	 	 
	 	By: Guggenheim Partners Investment Management, LLC as Investment Manager
	 	 	 	 
	 	By:	/s/ Kaitlin Trinh
	 	 	Name:	Kaitlin Trinh
	 	 	Title:	Managing Director

 

[American Media Credit Agreement Amendment
No. 3]

 

    	 

    	 

    

 

 

	 	SIGNATURE PAGE TO AMENDMENT NO. 3 DATED AS OF August 8, 2014, AMONG AMERICAN MEDIA, INC. AND THE LENDERS PARTY HERETO
	 	 
	 	Lender Name:
	 	 
	 	WELLWATER LLC
	 	 
	 	By: Guggenheim Partners Investment Management, LLC as Investment Manager
	 	 	 	 
	 	By:	/s/ Kaitlin Trinh
	 	 	Name:	Kaitlin Trinh
	 	 	Title:	Managing Director

 

[American Media Credit Agreement Amendment
No. 3]

 

    	 

    	 

    

 

 

	 	SIGNATURE PAGE TO AMENDMENT NO. 3 DATED AS OF August 8, 2014, AMONG AMERICAN MEDIA, INC. AND THE LENDERS PARTY HERETO
	 	 
	 	Lender Name:
	 	 
	 	Deutsche Bank Trust Company Americas
	 	 	 	 
	 	By:	/s/ Michael Winters
	 	 	Name:	Michael Winters
	 	 	Title:	Vice President
	 	 	 	 
	 	By:	/s/ Peter Cucchiara
	 	 	Name:	Peter Cucchiara
	 	 	Title:	Vice President

 

[American Media Credit Agreement Amendment
No. 3]

 

    	 

    	 

    

 

 

	 	SIGNATURE PAGE TO AMENDMENT NO. 3 DATED AS OF August 8, 2014, AMONG AMERICAN MEDIA, INC. AND THE LENDERS PARTY HERETO
	 	 
	 	Lender Name:
	 	 
	 	Credit Suisse AG Cayman Islands Branch
	 	 	 	 
	 	By:	/s/ Judith Smith
	 	 	Name:	Judith Smith
	 	 	Title:	Authorized Signatory
	 	 	 	 
	 	By:	/s/ Stanley Tran
	 	 	Name:	Stanley Tran
	 	 	Title:	Authorized Signatory

 

[American Media Credit Agreement Amendment
No. 3]

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