Exhibit 10.55(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 (this "Amendment") is made by and between
METROMEDIA FIBER NETWORK SERVICES, INC., a Delaware corporation ("MFN") and
XXXXXXXX COMMUNICATIONS, LLC, a Delaware limited liability company ("Lessee").
Background
Lessee and MFN are parties to the Lease Agreement dated April 26, 2002 (the
"Agreement").
On May 20, 2002, MFN and most of its direct and indirect domestic subsidiaries
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 MFN is currently operating its business and managing its property as
a debtor-in-possession (the "Pending Bankruptcy Case").
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. 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."
3. Section 3.1 is deleted and replaced with the following:
"During the Term, unless otherwise converted to an IRU pursuant to Section 3.6,
MFN grants to Lessee a Lease in 30,740 fiber miles in the MFN System (the
'Lessee Fiber'). The Lessee Fiber is identified by segment in Exhibit B-1.
Lessee agrees to pay the fees set forth in Section 4.1 for the Lessee Fibers.
[************************************************************
*************************************************************************
************************************************************************
****************************************************************************
****************************************************************************
***************************************************************************
*************************************************************************
****************************************************************************
***********************************************************************
****************************************************************************
**********************]
CONFIDENTIAL
PAGE 1 OF 4
EXECUTION COPY
4. 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."
5. EXHIBITS B AND C are wholly replaced with EXHIBIT B-1 AND C-1, attached to
this Amendment.
6. The following Section 17.7 is added to the Agreement:
"CROSS DEFAULT. MFN and Lessee are parties to a second Lease Agreement dated
April 26, 2002 pursuant to which MFN is the lessee (the "Longhaul Agreement").
The parties agree that a default under the Longhaul Agreement is deemed a
default under this Agreement, giving the non-defaulting party the right to
terminate if the Longhaul 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 of termination of the Longhaul
Agreement, of its intent to exercise its right to terminate this Agreement. Such
termination shall be effective 120 days after such notice, if given.
7. Section 20.3(b) is deleted and replaced with the following:
[****************************************************************************
*****************************************************************************
**************************************************************************
**************************************************************************
************************************************************************
*******************************************************************************]
8. ADDITIONAL CONSIDERATION; PRE-PETITION CURE. The parties agree to effect a
pre-petition netting in Bankruptcy Court for all pre-petition amounts owed
between Metromedia Fiber Network Services, Inc., Metromedia Fiber National
Network, Inc.(together "Debtor"), and Xxxxxxxx Communications, LLC. The parties
acknowledge and agree, that after netting, Debtor owes Xxxxxxxx Communications,
LLC [*************] in pre-petition obligations (the "Prepetition Debt"). As
full satisfaction of the Prepetition Debt, Debtor agrees to provide to Xxxxxxxx
a credit against monthly invoices issued under the Agreement over the initial
3-year term as follows:
o months 1-12 [*******] per month
o months 13-24 [*******] per month
o months 24-36 [*******] per month
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 3 of this Amendment is effective October 1, 2002. To
be sure, any invoices rendered during September
CONFIDENTIAL
PAGE 2 OF 4
EXECUTION COPY
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
Lessee and MFN, 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. If following the assumption of the
Agreement:
(a) one or more metro fiber rings currently operated by MFN on which
Lessee has Lessee Fiber, is effectively abandoned because MFN elects no longer
to operate those markets and the markets are sold to a third party, then any
damage claim of Lessee arising from the effective abandonment of any such market
is a general unsecured claim in the Pending Bankruptcy Case; and/or
(b) one or more, but less than all, MFN's metropolitan networks are
sold to a third party who intends to operate such networks, then, subject to
Lessee's rights under section 365 of the Bankruptcy Code as described below,
Lessee and MFN will execute a new agreement in all respects identical to the
existing Agreement but which includes only the Lessee Fiber in markets sold to a
third party. The new agreement may be assigned by MFN to the third party
pursuant to section 365 of the Bankruptcy Code, and the existing Agreement will
be deemed amended to eliminate the assigned Lessee Fiber from its scope. The
occurrence of events contemplated by this subparagraph is not a breach by MFN of
the Agreement and will not give rise to a claim. Lessee may object to any
assignment pursuant to section 365 of the Bankruptcy Code on the grounds that
Lessee is not receiving adequate assurance of future performance or that an
assignment to the third party assignee in question is otherwise not permitted
under the Bankruptcy Code; provided, however, that in the event Lessee's
objection to such assignment is sustained but the relevant network is
nevertheless sold to the third party, the parties agree that damages, if any,
arising from the breach resulting from MFN's inability to provide service to
Lessee under the Agreement with respect to the networks sold to the third party,
will be a general unsecured claim in the Pending Bankruptcy Case; or
(c) the Agreement is terminated due to MFN's failure to perform or its
rejection thereof, nothing herein constitutes a waiver of Lessee's right to a
general unsecured claim for all outstanding Pre-Petition Debt 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 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.
CONFIDENTIAL
PAGE 3 OF 4
EXECUTION COPY
MFN further hereby agrees to waive its right to assert any bankruptcy
preference claim, fraudulent transfer claim or any other potential avoidance
claims available to MFN against Customer arising out of the Agreement.
11. 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.
12. 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 NETWORK SERVICES, INC., a Delaware corporation
Signature: /s/ Xxxxxxx X. La Perch
-------------------------------------
(Print) Name: Xxxxxxx X. La Perch
---------------------------------
(Print) Title: Sr. Vice President
---------------------------------
(Print) Date: 10/10/02
----------------------------------
XXXXXXXX COMMUNICATIONS, LLC, a Delaware limited liability company
Signature: /s/ Xxxxx X. Xxxxxx
-------------------------------------
(Print) Name: Xxxxx X. Xxxxxx
---------------------------------
(Print) Title: Chief Operating Officer
---------------------------------
(Print) Date: 10/2/02
----------------------------------
CONFIDENTIAL
PAGE 4 OF 4
EXECUTION COPY
EXHIBIT B-1
SELECTED SEGMENT (BRANCH A) LENGTH OF NUMBER FIBER
CITY FACILITY ACCEPTANCE DATE RING/SEGMENT OF FIBERS MILES MRC
---- -------- --------------- ------------ --------- ------ ---
Xxxxxxx 00 Xxxxxxxx (Xxxxxxx 0X) 2/12/2001 2.45 4 9.80 [*************]
Atlanta DT Ring 1 7/17/2001 7.70 12 92.40 [*************]
Atlanta 56 Marietta - 874 DeKalb 11/12/2001 2.45 32 78.40 [*************]
Boston DT Ring 1 2/24/2000 7.99 28 223.79 [*************]
Boston DT Ring 2 7/28/2000 8.36 16 133.78 [*************]
Boston DT Ring 3 5/16/2000 5.82 28 162.96 [*************]
Boston Sub-Ring 2
(Boston to Spring Street) 7/11/2001 16.00 4 64.00 [*************]
Boston Sub-Ring 2 1/21/2002 35.25 28 987.00 [*************]
Central
New Jersey Ring 1 7/11/2000 81.00 6 486.00 [*************]
Chicago DT Ring 1 2/8/2000 3.42 16 54.72 [*************]
Chicago DT Ring 2 3/10/2000 1.70 16 27.18 [*************]
Chicago DT Ring 3 3/10/2000 2.36 16 37.80 [*************]
Chicago DT Ring 4 2/8/2000 3.83 24 91.80 [*************]
Chicago DT Ring 5 3/10/2000 3.39 16 54.30 [*************]
Chicago DT Ring 6 2/8/2000 14.78 12 177.30 [*************]
Chicago Ring 5 (Sub-Ring 5) 2/28/2000 14.38 6 86.29 [*************]
Chicago Ring 7 (DT Ring 7) 7/11/2001 5.50 12 66.00 [*************]
Chicago Sub-Ring 2 9/15/2000 86.50 12 1037.99 [*************]
Chicago Sub-Ring 3 4/4/2001 74.00 8 592.00 [*************]
Chicago Sub-Ring 4 7/14/2000 41.88 8 335.02 [*************]
Chicago Sub-Ring 5 (Additional) 12/6/2001 14.38 18 258.84 [*************]
Dallas Ring 1 2/7/2000 30.57 24 733.74 [*************]
Dallas Ring 2 2/14/2000 66.77 24 1602.45 [*************]
Dallas Ring 3 2/28/2000 41.37 12 496.38 [*************]
Dallas Ring 4 5/16/2000 71.90 8 575.19 [*************]
CONFIDENTIAL
EXHIBIT B-1
SELECTED SEGMENT (BRANCH A) LENGTH OF NUMBER FIBER
CITY FACILITY ACCEPTANCE DATE RING/SEGMENT OF FIBERS MILES MRC
---- -------- --------------- ------------ --------- ------ ---
Denver CBD 6/21/2001 6.21 12 74.52 [*************]
Houston Ring 1 (DT 1) 7/14/2000 7.38 24 177.12 [*************]
Houston Ring 2 (DT 2) 7/14/2000 4.01 12 48.06 [*************]
Houston Ring 3 7/14/2000 60.53 16 968.40 [*************]
Houston Ring 4 7/14/2000 55.97 18 1007.46 [*************]
Houston Ring 5 7/14/2000 48.06 8 384.48 [*************]
Houston Ring 5A 8/15/2000 12.50 4 50.01 [*************]
Houston Ring 6 7/14/2000 11.15 12 133.79 [*************]
Houston Ring 7 10/1/2001 63.15 4 252.60 [*************]
Long Island Ring South (Ring 1) 8/17/2000 62.41 12 748.87 [*************]
Los Angeles DT Ring 1 5/14/2001 1.34 20 26.80 [*************]
Los Angeles DT Ring 2 5/17/2001 2.66 20 53.20 [*************]
Los Angeles DT Ring 3 5/24/2001 3.70 20 74.00 [*************]
Los Angeles DT Ring 4 10/17/2001 5.72 20 114.40 [*************]
Los Angeles DT Ring 5 8/7/2001 1.04 48 49.68 [*************]
Los Angeles Sub-Ring 1
(Lemon point-to-point) 1/28/2002 8.51 2 17.02 [*************]
Manhattan Ring 3 2/4/2000 5.86 60 351.81 [*************]
Manhattan Ring 4 3/13/2000 3.99 60 239.67 [*************]
Manhattan Ring 5 1/28/2000 3.39 60 203.31 [*************]
Manhattan Ring 6-1 2/1/2000 12.76 48 612.54 [*************]
Manhattan Ring 6-2 9/16/2000 11.75 12 140.94 [*************]
Manhattan Ring 7 2/4/2000 8.03 6 48.15 [*************]
New Jersey Ring 1 6/13/2000 113.40 12 1360.80 [*************]
New York City Ring 2 (Manhattan 2) consol. 4.79 57 272.86 [*************]
New York City POP 1 to POP 2
Interconnection (1-24) 4/16/2002 3.70 24 444.00 [*************]
New York City POP 1 TO POP 2
Interconnection (25-48) TBD 3.70 24 444.00 [**************]
CONFIDENTIAL
EXHIBIT B-1
SELECTED SEGMENT (BRANCH A) LENGTH OF NUMBER FIBER
CITY FACILITY ACCEPTANCE DATE RING/SEGMENT OF FIBERS MILES MRC
---- -------- --------------- ------------ --------- ------ ---
Newark -
60 Xxxxxx Revised & Consolidated Billing 1/28/2000 42.76 24 1026.24 [*************]
NY - Xxxxxx 00 Xxxxxx Xxxxxx - 230 Congress TBD 203.88 2 407.76 [*************]
NY - Boston 60 Xxxxxx - 230 Congress 2/23/2000 278.88 2 557.76 [*************]
Philadelphia DT Ring 1 2/23/2000 4.13 20 82.50 [*************]
Philadelphia DT Ring 2 3/27/2000 5.44 20 108.75 [*************]
Philadelphia DT Ring 3 3/27/2000 5.75 20 115.05 [*************]
Philadelphia Ring 4 6/11/2001 4.17 8 33.36 [*************]
Philadelphia KP Loop 3/27/2000 9.96 4 39.84 [*************]
Philadelphia Main Ring 3/27/2000 56.47 4 225.86 [*************]
Phoenix CBD 7/17/2001 9.00 12 108.00 [*************]
San Francisco DT Ring 1 6/15/2000 7.20 20 144.00 [*************]
San Francisco DT Ring 2 6/15/2000 5.90 20 118.00 [*************]
San Francisco DT Ring 3 6/13/2000 3.56 20 71.20 [*************]
San Francisco DT Ring 4 6/18/2000 2.80 20 56.00 [*************]
San Francisco Dunbarton (DMB-1 & DMB-2) 5/13/2002 22.63 20 452.60 [*************]
San Francisco Oakland Ring (Ring 4) 2/11/2002 2.38 12 28.58 [*************]
San Francisco 8-fiber point-to-point
for Pine/Folsum 1/30/2001 5.76 8 46.10 [*************]
San Francisco Sub Ring 1 5/9/2002 111.07 24 2665.68 [*************]
San Francisco CA-7 5/9/2002 16.10 12 193.20 [*************]
San Francisco CA-3 & CA-4 5/9/2002 26.90 12 322.80 [*************]
San Francisco 11 Great Oaks CA25 cable 10/1/2002 14.00 4 56.00 [*************]
San Francisco 529 Xxxxx (portions of
CA-3 & CA-4) 8/23/2002 25.00 2 50.00 [*************]
Santa Xxxxx 50 Xxxx Xxxxxxxx 5/11/2001 0.34 4 1.36 [*************]
Seattle DT Ring 1 8/15/2001 4.42 24 105.96 [*************]
Seattle DT Ring 2 9/6/2001 9.25 24 222.00 [*************]
Seattle DT Ring 3 8/15/2001 4.49 24 107.76 [*************]
CONFIDENTIAL
EXHIBIT B-1
SELECTED SEGMENT (BRANCH A) LENGTH OF NUMBER FIBER
CITY FACILITY ACCEPTANCE DATE RING/SEGMENT OF FIBERS MILES MRC
---- -------- --------------- ------------ --------- ------ ---
Seattle DT Ring 3/4 (between
Xxxxxxx & Weston) 8/15/2001 0.55 4 2.22 [*************]
Seattle DT Ring 3/4 (fiber ring
to STTLWA03 & 06) 11/15/2001 7.60 2 15.20 [*************]
Seattle DT Ring 4 (1505 5th - 2001 6th) 3/5/2001 4.26 3 12.78 [*************]
Seattle DT Ring 4 (1505 5th - 2308 6th) 3/29/2002 4.26 2 8.52 [*************]
Seattle Lake Washington Ring
(fibers to Bellevue) 1/4/2002 79.08 2 158.16 [*************]
Seattle Lake Washington Ring
(between Xxxxxxx & Xxxxxx) 3/14/2002 0.54 4 2.16 [*************]
Seattle Lake Washington Ring 3/14/2002 76.55 12 918.60 [*************]
Seattle DT Ring 5 6/20/2001 4.28 24 102.72 [*************]
Washington DT Ring 1 12/6/1999 1.04 36 37.44 [*************]
Washington DT Ring 2 3/27/2000 3.98 36 143.37 [*************]
Washington DT Ring 3 9/24/2001 8.17 36 294.12 [*************]
Washington Ring 2 3/1/2000 42.52 36 1530.54 [*************]
Washington Ring 3 12/6/1999 30.53 36 1098.90 [*************]
Washington Ring 4 12/16/1999 34.53 20 690.50 [*************]
Washington Ring 5 2/14/2000 21.09 20 421.88 [*************]
Xxxxxxxxxx Xxxxx Ring 8/20/2001 4.68 36 168.48 [*************]
White Plains Ring 1 3/1/2000 61.37 12 736.47 [*************]
White Plains Sub Loop (Church - Main) 4/17/2001 1.33 4 5.30 [*************]
White Plains WP-2 4/26/2002 37.50 4 150.00 [*************]
Yonkers Ring 1 11/27/2000 16.56 8 132.48 [*************]
---------
30,739.80 [*************]
CONFIDENTIAL
EXHIBIT B-1
EXECUTION COPY
EXHIBIT C-1
BUILDING ACCESS
ACCEPTANCE DATE OR
ESTIMATED DELIVERY DATE,
CITY LOCATION DEMARCATION POINT AS APPLICABLE.
---- -------- ----------------- ------------------------
Anaheim 000 Xxxxx Xxxxx Xxxxxx 1/28/2002
Atlanta 55 Marietta (2-fiber collapsed
ring) 1/11/2002
Xxxxxx 0 Xxxxxxxx Xxxxxx 3/12/2001
Boston 00 Xxxxxxxxx Xxxxxx 3/13/2001
Boston 00 Xxxx Xxxxxx, Xxxxxxxxx 4/11/2001
Boston 000 Xxxx Xxxxxx, Xxxxxxxxx 4/11/2001
Xxxxxx 0 Xxxxxxx Xxxxxx 4/11/2001
Boston 00 Xxxxxx Xxxxxx (primary) 7/11/2001
Chicago 000 Xxxxx Xxxxxxxxx 2/26/2001
Xxxxxxx 000 Xxxxxx 7/11/2001
Chicago 000 Xxxxx Xxxxxxx (primary) 8/24/2001
Chicago 000 00xx (Xxxxxxx Xxxxx, XX)* 5/1/2001
Dallas 0000 Xxxxx Xxxxxx 3/9/2001
Dallas 0000 Xxxxx Xxxxxx 5/25/2001
Dallas 0000 Xxxx Xxxxxx 5/25/2001
Dallas 308 South Xxxxx 5/25/2001
Dallas 0000 Xxxxx Xxxxxx * 1/25/2002
Houston 0000 Xxxxxxx Xxxxxx 5/4/2001
Houston 0000 Xxxx Xxxxxx 5/4/2001
Xxxxxxx 00000 Interstate 45 North 1/26/2001
Houston 0000 Xxxxx Xxxx Xxx Xxxx 2/26/2002
Los Angeles 0000 Xxxx 0xx Xxxxxx 7/25/2001
Los Angeles 000 Xxxxx Xxxxx 0/00/0000
Xxx Xxxx 000 Xxxx 00xx Xxxxxx 2/28/2001
New York 000 Xxxx 00xx Xxxxxx 2/28/2001
New York 000 Xxxx 00xx Xxxxxx 2/28/2001
New York 000 Xxxx 00xx Xxxxxx 1/16/2001
New York 000 Xxxx 00xx Xxxxxx 1/16/2001
New York 1095 Avenue of the Americas 1/16/2001
New York 000 Xxxxx Xxxxxx 0/00/0000
Xxx Xxxx 000 Xxxx Xxxxxx, Xxxxx Xxxxxx 0/00/0000
Xxx Xxxx 000 Xxxx 00xx Xxxxxx 0/0/0000
Xxx Xxxx 000 Xxxxxx Xxxxxx 0/0/0000
Xxx Xxxx 000 Xxxx Xxxxxx 3/5/2001
CONFIDENTIAL
EXHIBIT C-1
ACCEPTANCE DATE OR
ESTIMATED DELIVERY DATE,
CITY LOCATION DEMARCATION POINT AS APPLICABLE.
---- -------- ----------------- ------------------------
New York 00 Xxxxxxxx 0/00/0000
Xxx Xxxx 000 Xxxx Xxxxxx, Xxxxx Xxxxxx 0/00/0000
Xxx Xxxx 000 Xxxx 00xx Xxxxxx 9/10/2001
New York 000 Xxxx 00xx Xxxxxx 9/10/2001
Philadelphia 0000 Xxxx Xxxxxx 8/22/2001
San Francisco 555 Pine 5/18/2001
San Francisco 611 Folsom 5/18/2001
San Francisco 00 Xxxxx Xxxx Xxxx 00/0/0000
Xxx Xxxxxxxxx 000 Xxxxxx Xxxxxx, Xxxx Xxxx MFN rack in PAIX
(PAIX)(1) 8/28/2002
Santa Xxxxx 50 West San Xxxxxxxx 5/11/2001
Seattle 0000 Xxxxx Xxxxxx 11/15/2001
Seattle 0000 Xxxx Xxxx Xxxxxx 11/15/2001
Seattle 00000 XX 00xx Xxxxxx 1/4/2002
Seattle 0000 Xxxxx Xxxxxx * 9/28/2001
Washington, D.C. 0000 X Xxxxxx XX 0/0/0000
Xxxxxxxxxx, X.X. 0000 X Xxxxxx XX 0/0/0000
Xxxxxxxxxx, X.X. 000 00xx Xxxxxx XX 4/4/2001
Washington, D.C. 7990 Science Applications Boulevard 7/16/2001
Washington, D.C. 00000 Xxxxxxxx Xxxxx, Xxxxxxx, XX 7/25/2001
(primary)
--------
(1) Two-fiber point-to-point to MFN POP at 00 X. Xxxxxx Xxxxxx.
* indicates Street Meet Me
CONFIDENTIAL
EXHIBIT C-1
