EX-10 2 mv11-22ex10_3b.txt 10.3(B) 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 WILLIAMS COMMUNICATIONS, LLC, a Delaware limited liability company ("Williams Communications"), METROMEDIA FIBER NATIONAL NETWORK, INC., a Delaware corporation ("Lessee") and METROMEDIA FIBER NETWORK SERVICES, INC. ("MFNS") a Delaware corporation. Background Lessee and Williams 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, Williams Communications grants to Lessee a Lease in 14,770 fiber miles in the Williams Communications System (the 'Lessee Fiber'). [**************************************************** ******************************************************************************** ******************************************************************************** ******************************************************************************** ******************************************************************************** ******************************************************************************** ******************************************************************************** *****************************************************] CONFIDENTIAL PAGE 1 OF 4 EXECUTION COPY 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. Williams Communications and Lessee are parties to a second Lease Agreement dated April 26, 2002 pursuant to which Williams 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 Williams 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 Williams 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 CONFIDENTIAL PAGE 2 OF 4 EXECUTION COPY expense claims will require Williams 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 Williams 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 Williams 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/ William G. La Perch -------------------------------------- (Print) Name: William G. La Perch ---------------------------------- (Print) Title: Sr. Vice President ---------------------------------- Date: 10/10/02 -------------------------------------------- METROMEDIA FIBER NETWORK SERVICES, INC., a Delaware corporation Signature: /s/ William G. La Perch -------------------------------------- (Print) Name: William G. La Perch ---------------------------------- (Print) Title: Sr. Vice President ---------------------------------- Date: 10/10/02 -------------------------------------------- CONFIDENTIAL PAGE 3 OF 4 EXECUTION COPY WILLIAMS COMMUNICATIONS, LLC, a Delaware limited liability company Signature: /s/ Frank M. Semple -------------------------------------- (Print) Name: Frank M. Semple ---------------------------------- (Print) Title: Chief Operating Officer ---------------------------------- Date: 10/2/02 -------------------------------------------- CONFIDENTIAL PAGE 4 OF 4 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 Salt Lake City 03/28/00 400 2 800 Houston 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 790 Mcart Rd., Lawrenceville, GA 30245 Athens (a\k\a Hull) 920 Smith Road, Hull, GA 30646 Hartwell 4260 Liberty Mill Rd., Hartwell, GA 30643 Greenville 9744 Augusta Rd., Greenville, SC 29669 SPARTANBURG, SC SPARTANBURG POP - BTC BUILDING, 145 N. CHURCH ST., SUITE 3, SPARTANBURG, SC 29306 York 2154 Templeton Rd., Clover, SC 29710 CHARLOTTE, NC CHARLOTTE POP - 112 N. MEYERS ST., CHARLOTTE, NC 28202 Salisbury (a\k\a Mt. Ulla) 295 Upright Rd., Mt. Ulla, NC 28125 Kernersville Jct. LOT #51M, 1334 Old Salem Road, Kernersville, NC 27284 SPUR TO GREENSBORO & RALEIGH, NC Reidsville 1301 Ashley Loop, Reidsville, NC 27320 Chatham 945 Transco Rd., Chatham, VA 24531 Appomattox Hwy. 691 SW, Appomattox, VA 24522 Scottsville Jct. Highway 643, Scottsville, VA 24590 SPUR TO RICHMOND, VA Unionville 74444 Everona Rd., Unionville, VA 22587 Manassas 10699 Piperlane, Manassas, VA 20110 HSTN - DLLS (IXC) HOUSTON, TX HOUSTON POP - 1124 HARDY STREET, HOUSTON, TX 77020 Willis (a\k\a Montgomery Co.) 16533 IH 45 NORTH, Willis, TX 77378 Madison Route 2, Box 213, Madisonville, TX 77864 Buffalo 23433 IH 45 North, Buffalo, TX 75831 Streetman 16108 IH 45 North, Streetman, TX 75859
CONFIDENTIAL FIRST AMENDMENT TO LEASE AGREEMENT EXHIBIT C-1 EXECUTION COPY Ennis 3910 IH 45 North, Ennis, TX 75120 KSCY - DNVR KANSAS CITY, MO KANSAS CITY POP - THE BRYANT BLDG., 1102 GRAND AVE. #300, KANSAS CITY, MO 64106 Lawrence 13804 246th St., Lawrence, KS 66044 TOPEKA, KS TOPEKA POP - 101 SE MONROE, TOPEKA, KS 66603 Allen (a\k\a Miller) 1836 County Rd. 330, Osage City, KS 66868 Elmdale RR 1, Elmdale, Cottonwood Falls, KS 66850 Newton 937 Falcon Road, Newton, KS 67114 Inman 380 Plum Ave., Inman, KS 67546 Ellinwood 1150 E BARTON CO. ROAD, Ellinwood, KS 67526 Bison Rural Rt. 1, Bison, KS 67520 Ellis Rural Rt. 1, Ellis, KS 67637 Grainfield 1102 COUNTY ROAD 50, Grainfield, KS 67737 Oakley (a\k\a Monument) 2317 Daydream Road, Monument, KS 67747 Goodland 5655 County Road #16, Goodland, KS Burlington (a\k\a Bethune) 32353 County Rd. 40, Burlington, CO 80805 Flagler 7250 County Rd. HH, Flagler, CO 80815 Woodrow 1018 HIGHWAY 71, Woodrow, CO 80757 Strasburg 2598 S County Rd., 157, Strasburg, CO 80136 PTLD - SCRM PORTLAND, OR PORTLAND POP - 707 SW WASHINGTON ST., 4TH FL., SUITE 410, PORTLAND, OR 97205 SCRM - SLKC SACRAMENTO, CA SACRAMENTO POP II - 770 L. ST., SUITE 120, SACRAMENTO, CA 95814 Auburn Alt. 1725 Auburn Ravine Road, Auburn, CA 95603 Blue Canyon Blue Canyon Exit off I-80, Blue Canyon, CA 95714 Truckee 10136 Hirshdale Road, Truckee, CA 96161 RENO, NV RENO POP - 220 GARDNER ST., RENO, NV 89503 Hot Springs Flat (a\k\a Fallon) Exit 65 off I-80, Nightingale Rd., Fallon, NV 89406 Lovelock 55 Cornell Avenue, Lovelock, NV 89419 Mill City (a\k\a Imlay) Exit 149 on I-80, Lot 14, Block B Mill City 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, Winnemucca, NV 89445 Snow Gulch Exit 222 off I-80, 1.9 miles North of Access, Snow Gulch, NV 89444 Dunphy (a\k\a Eureka) Exit 254 off I-80 North, East 3.5 miles, Eureka, NV 89821 Hunter (a\k\a McGill) Exit 292 off I-80, North of intersection, then East, McGill, NV 89318 Deeth (a\k\a Elko) Exit 333 off I-80, 5 miles East on North Frontage Rd, Elko, NV 89835 Oasis Exit 380 off I-80, Oasis, NV 89830 Wendover 3131 East Frontage Road, Wendover, UT 84083 Barrow 9.5 miles West of I-80, Barro, UT 84083 Timpie (a\k\a Tooele) 15516 West Rowley Road, Tooele, UT 84022 SALT LAKE CITY, UT SALT LAKE CITY POP - 5035 HAROLD GATTY DRIVE, SALT LAKE CITY, UT 84116 HSTN - ATLN HOUSTON, TX 1124 HARDY STREET, HOUSTON, TX 77020 Kingwood (a\k\a Huffman or Harris) 33902 Huffman-Cleveland R, Huffman, TX 77336 Sour Lake (a\k\a Hardin) 29979 Highway 105, Sour Lake, TX 77659 Buna (a\k\a Jasper) Hwy 62 South, Buna, TX 77612 Ragley (a\k\a Beauregard) 17329 Hwy 171 North, Ragley, LA 70657 Basile (a\k\a Evangeline) 1919 Hunter Rd., Basile, LA 70515 Port Barre (a\k\a St. Landre or Washington) 2343 Highway 359, Washington, LA 70589 Zachary Jct. (a\k\a Feliciana or Jackson) 1479 A Highway 964, Jackson, LA 70748 SPUR TO NEW ORLEANS, LA Greensburg (a\k\a St. Helena) Hwy 43 North, Greensburg, LA 70441 Tylertown (a\k\a Walthall) 967 Hwy 583, Tylertown, MS 39667 Seminary (a\k\a Covington Co.) 11 Kelly Creek Road, Seminary, MS 39479 SPUR TO JACKSON, MS Laurel (a\k\a Jasper or Sandersville) 1666 Bonner Road, Sandersville, MS 39477 Quitman (a\k\a Jasper Co.) 240 Vyvx Lane, Quitman, MS 39955 Linden (a\k\a Merengo or Sweetwater) Hwy 69 South, Sweetwater, AL 36782 Selma (a\k\a Dallas Co. or Browns) 1713 County Road 179, Browns, AL 36724
CONFIDENTIAL FIRST AMENDMENT TO LEASE AGREEMENT EXHIBIT C-1 EXECUTION COPY Clanton (a\k\a Chilton or Billingsley) 4521 Chilton Road #352, Billingsley, AL 36006 SPUR TO BIRMINGHAM, AL Alexander City (a\k\a Coosa or Kellyton) 250 Highway 9, Kellyton, AL 35089 Wadley (a\k\a Randolph Co.) 1140 County Rd 41, Wadley, AL 36276 Newnan (a\k\a Coweta Co.) 65 Mayo Royal Road, Newnan, GA 30263 MPLS - KSCY MINNEAPOLIS, MN 511 11TH AVE. SOUTH, SUITE 201, MINNEAPOLIS, MN Northfield 6730 320th Street West, Northfield, MN 55057 Owantonna (a\k\a Hope) 6391 SW 68th Street, Owantonna, MN 55060 Hanlon Town (a\k\a Tenold) 807 435th Street, Hanlon Town, IA 50444 Latimer 1825 Finch Avenue, latimer, IA 50452 Roland 12951 610th Avenue, Roland, IA 50236 DES MOINES, IA DES MOINES POP - 4500B CARLISLE ROAD, DES MOINES, IA 50317 Osceola 2241-B US Highway 69, Osceola, IA 50213 Ridgeway 20469 W. 230th Place, Ridgeway, MO 64481 Maysville (a\k\a Weathersby) 99 Southeast Dallas Road, Weathersby, MO 64497 Plattsburgh (a\k\a Lilly) 2821 Southwest Street, Plattsburg, MO 64497 SCRM - SNFC SACRAMENTO, CA SACRAMENTO POP II - 1005 'B' STREET, SACRAMENTO, CA 95814 Bay Point 487 Canal Road, Bay Point, CA 94565 Creed 6732 Creed Road, Suisin City, 94585 SAN FRANCISCO, CA SAN FRANCISCO POP - 200 PAUL ST., 4TH FLOOR, SAN FRANCISCO, CA 94124
CONFIDENTIAL FIRST AMENDMENT TO LEASE AGREEMENT EXHIBIT C-1