Exhibit 10.3(b)
EXECUTION COPY
CONFIDENTIAL PORTION MARKED [*************] HAS BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION.
FIRST AMENDMENT TO LEASE AGREEMENT
THIS FIRST AMENDMENT ("Amendment") is made by and between XXXXXXXX
COMMUNICATIONS, LLC, a Delaware limited liability company ("Xxxxxxxx
Communications"), METROMEDIA FIBER NATIONAL NETWORK, INC., a Delaware
corporation ("Lessee") and METROMEDIA FIBER NETWORK SERVICES, INC. ("MFNS") a
Delaware corporation.
Background
Lessee and Xxxxxxxx Communications are parties to the Lease Agreement dated
April 26, 2002 (the "Agreement").
On May 20, 2002, Lessee and most of its direct and indirect domestic
subsidiaries, including MFNS, each filed voluntary petitions for reorganization
pursuant to Chapter 11 of title 11 of the United States Code. (the "Bankruptcy
Code") with the United States Bankruptcy Court for the Southern District of New
York (the "Bankruptcy Court") and Lessee is currently operating its business and
managing its property as a debtor-in-possession.
The parties now wish to amend the Agreement in accordance with the terms set
forth in this Amendment.
NOW THEREFORE, for mutual consideration, the value of which the parties
acknowledge, the terms of the Agreement are amended as follows:
1. Capitalized terms not otherwise defined in this Amendment have the meaning
ascribed in the Agreement.
2. On the Effective Date, pursuant to Section 20.1, the Agreement as amended is
wholly assigned from Lessee to MFNS, and thereafter all references to "Lessee"
refer to MFNS and MFNN is discharged from further obligation.
3. The definition of "Term" is deleted and replaced with the following:
"'TERM' begins on the date of full execution of the First Amendment to this
Agreement and includes the initial term and any subsequent renewal terms."
4. Section 3.1 is deleted and replaced with the following:
"During the Term, unless otherwise converted to an IRU pursuant to Section 3.6,
Xxxxxxxx Communications grants to Lessee a Lease in 14,770 fiber miles in the
Xxxxxxxx Communications System (the 'Lessee Fiber').
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5. The following Section 3.6 is added to the Agreement:
"TERM. The initial term of the agreement expires three (3) years after the
Effective Date of the First Amendment to this Agreement, with five (5) 3-year
renewal periods. Unless Lessee provides a minimum of 60 days notice of
termination prior to the expiration of the then-current term, the Agreement
automatically renews under the same terms and conditions."
6. EXHIBITS B AND C are wholly replaced with EXHIBIT B-1 AND C-1, attached to
this Amendment.
7. Section 4.1(a) is modified as follows: "27,000" is replaced with "14,770";
"[********]" is replaced with "[********]".
8. Section 17.7 is added to the Agreement:
"CROSS DEFAULT. Xxxxxxxx Communications and Lessee are parties to a second Lease
Agreement dated April 26, 2002 pursuant to which Xxxxxxxx Communications is the
lessee (the "Metro Agreement"). The parties agree that a default under the Metro
Agreement is deemed a default under this Agreement, giving the non-defaulting
party the right to terminate if the Metro Agreement is likewise terminated. The
right to terminate under this Section 17.7 automatically expires if the
non-defaulting party does not provide notice, within 60 days after termination
of the Metro Agreement, of its intent to exercise its right to terminate this
Agreement. Such termination shall be effective 120 days after such notice, if
given.
9. EFFECTIVE DATE. This Amendment is effective upon the date of the last
signature hereto ("Effective Date"). The parties agree that the new billing rate
as specified in paragraph 7 of this Amendment is effective October 1, 2002. To
be sure, any invoices rendered during September 2002 for October services, will
be adjusted accordingly. Notwithstanding the foregoing, the parties acknowledge
that the Amendment must be approved by the Bankruptcy Court pursuant to an
order, in form and substance acceptable to Xxxxxxxx Communications and Lessee,
which provides for, among other things, the following: (i) assumption of the
Agreement, as amended, pursuant to section 365 of the Bankruptcy Code, and (ii)
a finding that the parties negotiated the Amendment at arm's length and in good
faith. If such approval is not obtained on or before October 17, 2002 or such
later date as the parties may agree to, this Amendment will be null and void and
of no force or effect and Lessee agrees to pay the difference between the
amended amounts invoiced for October and the actual amounts owed under the
Agreement.
10. ASSUMPTION AND WAIVER OF SPECIFIC CLAIMS. Following the assumption of the
Agreement, if the Agreement is terminated due to Lessee's failure to perform or
its rejection thereof, nothing herein constitutes a waiver of Xxxxxxxx
Communications' right to a general unsecured claim for all outstanding
pre-petition amounts owed under the Agreement and an administrative claim for
post-petition damages caused by any breach of the Agreement, or of the right of
MFN or any party in interest to object to any such claim. Any and all
administrative
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expense claims will require Xxxxxxxx Communications to satisfy the requirements
of the Bankruptcy Code to establish the claim and is without prejudice to any
other party's right to contest such claim.
11. As additional consideration, Lessee agrees to provide Xxxxxxxx
Communications with the opportunity to view all future local and long-haul
capacity requirements of Lessee and will have the opportunity to displace any
other capacity provider currently used by Lessee as such service contracts
expire. Notwithstanding anything in this paragraph, Lessee is not obligated to
purchase any services from Xxxxxxxx Communications that do not strictly meet
Lessee's requirements, or to execute orders if the terms of service are not
competitive with other third-party providers of the same or similar service.
12. Except as amended, all of the original terms and conditions of the Agreement
continue in full force and effect, neither party is in currently in default, and
the Agreement, as amended is hereby ratified and confirmed.
13. This Amendment may be executed in counterparts, each of which taken together
constitute one and the same instrument.
The parties have executed this Amendment on the dates set forth below.
METROMEDIA FIBER NATIONAL NETWORK, INC., a Delaware corporation
Signature: /s/ Xxxxxxx X. La Perch
--------------------------------------
(Print) Name: Xxxxxxx X. La Perch
----------------------------------
(Print) Title: Sr. Vice President
----------------------------------
Date: 10/10/02
--------------------------------------------
METROMEDIA FIBER NETWORK SERVICES, INC., a Delaware corporation
Signature: /s/ Xxxxxxx X. La Perch
--------------------------------------
(Print) Name: Xxxxxxx X. La Perch
----------------------------------
(Print) Title: Sr. Vice President
----------------------------------
Date: 10/10/02
--------------------------------------------
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EXECUTION COPY
XXXXXXXX COMMUNICATIONS, LLC, a Delaware limited liability company
Signature: /s/ Xxxxx X. Xxxxxx
--------------------------------------
(Print) Name: Xxxxx X. Xxxxxx
----------------------------------
(Print) Title: Chief Operating Officer
----------------------------------
Date: 10/2/02
--------------------------------------------
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EXECUTION COPY
EXHIBIT B-1
SELECTED SEGMENTS
MFN ACCEPTANCE ROUTE NO. OF FIBERS FIBER ROUTE MILES
ROUTE SEGMENTS DATE MILES PER ROUTE ACCEPTED
-------------------------------------------------------------------------------------------------------
Atlanta to Washington, DC 05/24/00 820 2 1640
Dallas to Kansas City 11/27/00 690 2 1380
Denver to Xxxx Xxxx Xxxx 00/00/00 000 0 000
Xxxxxxx to Dallas(1) 05/26/00 250 2 500
Houston to Atlanta(1) 05/26/00 1000 2 2000
Kansas City to Denver 12/13/99 610 2 1220
Boston to Albany 9/27/00 180 2 360
Los Angeles to San Diego 05/23/01 200 2 400
Minneapolis to Kansas City 12/13/99 500 2 1000
Phoenix to Houston 11/11/00 1200 2 2400
Sacramento to Salt Lake City 12/18/00 630 2 1260
Sacramento To San Francisco 03/23/01 100 2 200
San Diego to Phoenix 02/26/01 350 2 700
Minneapolis to Chicago 455 2 910
-------
TOTALS 14,770
=======
CONFIDENTIAL
FIRST AMENDMENT TO
LEASE AGREEMENT
EXHIBIT B-1
EXECUTION COPY
EXHIBIT C-1
COLLOCATION SITES
SELECTED SEGMENT POP LOCATIONS TRANSMISSION SITE LOCATIONS
---------------- ------------- ---------------------------
ATLN - WASH
Lawrenceville 000 Xxxxx Xx., Xxxxxxxxxxxxx, XX 00000
Athens (a\k\a Hull) 000 Xxxxx Xxxx, Xxxx, XX 00000
Hartwell 0000 Xxxxxxx Xxxx Xx., Xxxxxxxx, XX
00000
Greenville 0000 Xxxxxxx Xx., Xxxxxxxxxx, XX 00000
SPARTANBURG, SC SPARTANBURG POP - BTC BUILDING, 000 X. XXXXXX XX., XXXXX 0,
XXXXXXXXXXX, XX 00000
York 0000 Xxxxxxxxx Xx., Xxxxxx, XX 00000
XXXXXXXXX, XX CHARLOTTE POP - 000 X. XXXXXX XX., XXXXXXXXX, XX 00000
Salisbury (a\k\a Mt. Ulla) 000 Xxxxxxx Xx., Xx. Xxxx, XX 00000
Kernersville Jct. LOT #51M, 0000 Xxx Xxxxx Xxxx,
Xxxxxxxxxxxx, XX 00000
SPUR TO GREENSBORO & RALEIGH, NC
Reidsville 0000 Xxxxxx Xxxx, Xxxxxxxxxx, XX 00000
Chatham 000 Xxxxxxx Xx., Xxxxxxx, XX 00000
Appomattox Xxx. 000 XX, Xxxxxxxxxx, XX 00000
Scottsville Jct. Xxxxxxx 000, Xxxxxxxxxxx, XX 00000
SPUR TO RICHMOND, VA
Unionville 00000 Xxxxxxx Xx., Xxxxxxxxxx, XX
00000
Manassas 10699 Piperlane, Xxxxxxxx, XX 00000
HSTN - DLLS (IXC)
HOUSTON, TX HOUSTON POP - 0000 XXXXX XXXXXX, XXXXXXX, XX 00000
Willis (a\k\a Montgomery Co.) 00000 XX 00 XXXXX, Xxxxxx, XX 00000
Madison Xxxxx 0, Xxx 000, Xxxxxxxxxxxx, XX
00000
Buffalo 00000 XX 00 Xxxxx, Xxxxxxx, XX 00000
Streetman 00000 XX 00 Xxxxx, Xxxxxxxxx, XX 00000
CONFIDENTIAL
FIRST AMENDMENT TO
LEASE AGREEMENT
EXHIBIT C-1
EXECUTION COPY
Ennis 0000 XX 00 Xxxxx, Xxxxx, XX 00000
KSCY - DNVR
KANSAS CITY, MO KANSAS CITY POP - THE XXXXXX BLDG., 0000 XXXXX XXX. #000,
XXXXXX XXXX, XX 00000
Lawrence 00000 000xx Xx., Xxxxxxxx, XX 00000
TOPEKA, KS TOPEKA POP - 000 XX XXXXXX, XXXXXX, XX 00000
Xxxxx (a\k\a Xxxxxx) 0000 Xxxxxx Xx. 000, Xxxxx Xxxx, XX
00000
Elmdale XX 0, Xxxxxxx, Xxxxxxxxxx Xxxxx, XX
00000
Xxxxxx 000 Xxxxxx Xxxx, Xxxxxx, XX 00000
Inman 000 Xxxx Xxx., Xxxxx, XX 00000
Ellinwood 0000 X XXXXXX XX. XXXX, Xxxxxxxxx, XX
00000
Bison Rural Xx. 0, Xxxxx, XX 00000
Ellis Rural Xx. 0, Xxxxx, XX 00000
Grainfield 0000 XXXXXX XXXX 00, Xxxxxxxxxx, XX
00000
Oakley (a\k\a Monument) 0000 Xxxxxxxx Xxxx, Xxxxxxxx, XX 00000
Goodland 0000 Xxxxxx Xxxx #00, Xxxxxxxx, XX
Burlington (a\k\a Xxxxxxx) 00000 Xxxxxx Xx. 00, Xxxxxxxxxx, XX
00000
Flagler 0000 Xxxxxx Xx. XX, Xxxxxxx, XX 00000
Woodrow 0000 XXXXXXX 00, Xxxxxxx, XX 00000
Strasburg 0000 X Xxxxxx Xx., 000, Xxxxxxxxx, XX
00000
PTLD - SCRM
PORTLAND, OR PORTLAND POP - 000 XX XXXXXXXXXX XX., 0XX XX., XXXXX 000,
XXXXXXXX, XX 00000
SCRM - SLKC
SACRAMENTO, CA SACRAMENTO POP II - 000 X. XX., XXXXX 000, XXXXXXXXXX, XX 00000
Auburn Alt. 0000 Xxxxxx Xxxxxx Xxxx, Xxxxxx, XX
00000
Blue Canyon Xxxx Xxxxxx Xxxx xxx X-00, Xxxx
Xxxxxx, XX 00000
Truckee 00000 Xxxxxxxxx Xxxx, Xxxxxxx, XX
00000
RENO, NV RENO POP - 000 XXXXXXX XX., XXXX, XX 00000
Hot Springs Flat (a\k\a Fallon) Exit 65 off X-00, Xxxxxxxxxxx Xx.,
Xxxxxx, XX 00000
Lovelock 00 Xxxxxxx Xxxxxx, Xxxxxxxx, XX 00000
Mill City (a\k\a Imlay) Exit 149 on X-00, Xxx 00, Xxxxx X
Xxxx Xxxx Acres, Imlay, NV 89418
CONFIDENTIAL
FIRST AMENDMENT TO
LEASE AGREEMENT
EXHIBIT C-1
EXECUTION COPY
Golconda Butte (a\k\a Winnemucca) Exit 187 off I-80, North of
interchange, Xxxxxxxxxx, XX 00000
Snow Gulch Exit 222 off I-80, 1.9 miles North of
Access, Snow Gulch, NV 89444
Xxxxxx (a\k\a Eureka) Exit 254 off I-80 North, East 3.5
miles, Xxxxxx, XX 00000
Hunter (a\k\a McGill) Exit 292 off I-80, North of
intersection, then East, XxXxxx, XX
00000
Deeth (a\k\a Elko) Exit 333 off I-80, 5 miles East on Xxxxx
Xxxxxxxx Xx, Xxxx, XX 00000
Oasis Exit 000 xxx X-00, Xxxxx, XX 00000
Wendover 0000 Xxxx Xxxxxxxx Xxxx, Xxxxxxxx, XX
00000
Xxxxxx 9.5 miles Xxxx xx X-00, Xxxxx, XX
00000
Timpie (a\k\a Tooele) 00000 Xxxx Xxxxxx Xxxx, Xxxxxx, XX
00000
SALT LAKE CITY, UT SALT LAKE CITY POP - 0000 XXXXXX XXXXX XXXXX, XXXX XXXX XXXX,
XX 00000
HSTN - ATLN
HOUSTON, TX 0000 XXXXX XXXXXX, XXXXXXX, XX 00000
Kingwood (a\k\a Huffman or Xxxxxx) 00000 Xxxxxxx-Xxxxxxxxx X, Xxxxxxx,
XX 00000
Sour Lake (a\k\a Xxxxxx) 00000 Xxxxxxx 000, Xxxx Xxxx, XX 00000
Buna (a\k\a Jasper) Xxx 00 Xxxxx, Xxxx, XX 00000
Ragley (a\k\a Xxxxxxxxxx) 00000 Xxx 000 Xxxxx, Xxxxxx, XX 00000
Basile (a\k\a Xxxxxxxxxx) 0000 Xxxxxx Xx., Xxxxxx, XX 00000
Port Barre (a\k\a St. Xxxxxx or Washington) 0000 Xxxxxxx 000, Xxxxxxxxxx, XX 00000
Zachary Jct. (a\k\a Xxxxxxxxx or Jackson) 0000 X Xxxxxxx 000, Xxxxxxx, XX 00000
SPUR TO NEW ORLEANS, LA
Greensburg (a\k\a St. Helena) Hwy 43 North, Xxxxxxxxxx, XX 00000
Xxxxxxxxx (x\x\x Xxxxxxxx) 000 Xxx 000, Xxxxxxxxx, XX 00000
Seminary (a\k\a Xxxxxxxxx Co.) 00 Xxxxx Xxxxx Xxxx, Xxxxxxxx, XX
00000
SPUR TO JACKSON, MS
Laurel (a\k\a Jasper or Sandersville) 0000 Xxxxxx Xxxx, Xxxxxxxxxxxx, XX
00000
Quitman (a\k\a Jasper Co.) 000 Xxxx Xxxx, Xxxxxxx, XX 00000
Linden (a\k\a Merengo or Sweetwater) Xxx 00 Xxxxx, Xxxxxxxxxx, XX 00000
Selma (a\k\a Dallas Co. or Browns) 0000 Xxxxxx Xxxx 000, Xxxxxx, XX 00000
CONFIDENTIAL
FIRST AMENDMENT TO
LEASE AGREEMENT
EXHIBIT C-1
EXECUTION COPY
Clanton (a\k\a Xxxxxxx or Billingsley) 0000 Xxxxxxx Xxxx #000, Xxxxxxxxxxx,
XX 00000
SPUR TO BIRMINGHAM, AL
Alexander City (a\k\a Coosa or Kellyton) 000 Xxxxxxx 0, Xxxxxxxx, XX 00000
Xxxxxx (a\k\a Xxxxxxxx Co.) 0000 Xxxxxx Xx 00, Xxxxxx, XX 00000
Newnan (a\k\a Coweta Co.) 00 Xxxx Xxxxx Xxxx, Xxxxxx, XX 00000
MPLS - KSCY
MINNEAPOLIS, MN 000 00XX XXX. XXXXX, XXXXX 000, XXXXXXXXXXX, XX
Northfield 0000 000xx Xxxxxx Xxxx, Xxxxxxxxxx,
XX 00000
Owantonna (a\k\a Hope) 0000 XX 00xx Xxxxxx, Xxxxxxxxx, XX
00000
Xxxxxx Town (a\k\a Xxxxxx) 000 000xx Xxxxxx, Xxxxxx Xxxx, XX
00000
Xxxxxxx 0000 Xxxxx Xxxxxx, xxxxxxx, XX 00000
Xxxxxx 00000 000xx Xxxxxx, Xxxxxx, XX 00000
DES MOINES, IA DES MOINES POP - 0000X XXXXXXXX XXXX, XXX XXXXXX, XX 00000
Osceola 0000-X XX Xxxxxxx 00, Xxxxxxx, XX
00000
Ridgeway 00000 X. 000xx Xxxxx, Xxxxxxxx, XX
00000
Maysville (a\k\a Xxxxxxxxxx) 00 Xxxxxxxxx Xxxxxx Xxxx, Xxxxxxxxxx,
XX 00000
Plattsburgh (a\k\a Lilly) 0000 Xxxxxxxxx Xxxxxx, Xxxxxxxxxx, XX
00000
SCRM - SNFC
SACRAMENTO, CA SACRAMENTO POP II - 0000 'X' XXXXXX, XXXXXXXXXX, XX 00000
Bay Point 000 Xxxxx Xxxx, Xxx Xxxxx, XX 00000
Creed 0000 Xxxxx Xxxx, Xxxxxx Xxxx, 00000
XXX XXXXXXXXX, XX SAN FRANCISCO POP - 000 XXXX XX., 0XX XXXXX, XXX XXXXXXXXX, XX
00000
CONFIDENTIAL
FIRST AMENDMENT TO
LEASE AGREEMENT
EXHIBIT C-1
