Document:

Exhibit 10.40

THIRD
AMENDMENT TO LEASE

 

THIS
THIRD AMENDMENT TO LEASE (this
“Third
Amendment”) is
made and entered into as of the 11th day of February, 2005, by and between VISTA
HOLDINGS, LLC, a Nevada limited liability company (“Landlord”), and
MPOWER COMMUNICATIONS CORP., a Nevada corporation (“Tenant”).

WHEREAS,
Landlord, as assignee, and Tenant are parties to that certain Lease and related
Addendum dated as of May 1, 2000, as amended by that First Amendment to Lease
dated August 28, 2000, and that Second Amendment to Lease dated March 22, 2002
(collectively, the “Lease”);
and

WHEREAS,
Landlord and Tenant now desire to amend the Lease as provided
herein.

NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained
herein and for other good and valuable consideration, Landlord and Tenant agree
as follows:

 

	1.  	
      Section
      2.5 of the Lease is hereby amended in full to read as
    follows:

 

“2.5 EXPIRATION
DATE: June 30, 2006, unless otherwise terminated in accordance with the
provisions of this Lease.”

 

	2.  	
      Section
      2.7 of the Lease is hereby amended in full to read as
    follows:

 

“2.7 LANDLORD’S
ADDRESS FOR NOTICE:

 

Vista
Holdings, LLC

c/o
Station Casinos, Inc.

2411 W.
Sahara Avenue

Las
Vegas, Nevada 89102

Attention:
General Counsel

RENT
PAYMENT ADDRESS:

Equus
Management Corporation

3400 W.
Desert Inn Road, Suite 24

Las
Vegas, Nevada 89102

TENANT’S
MAILING ADDRESS:

Mpower
Communications

175
Sully’s Trail

Pittsford,
New York 14534

Attention:
Michael Tschiderer”

	3.  	
      The
      Lease is hereby amended by adding a new Section 6.9 to read as
      follows:

“6.9 Waiver
of Certain Rent Obligations.
Notwithstanding anything to the contrary contained in this Lease, Landlord
hereby waives its right to receive from Tenant all Base Rent and Additional Rent
that becomes due or payable hereunder after January 31, 2005 (collectively, the
“Waived Rent”).”

	4.  	
      The
      first sentence of Section 26 of the Lease is hereby amended to read as
      follows:

 

“Tenant
shall not occupy the Premises after the Expiration Date without the prior
written consent of Landlord, which consent may be withheld in Landlord’s sole
and absolute discretion. Tenant hereby acknowledges and agrees that irreparable
damage would occur in the event that this Section 26 of this Lease is not
performed by Tenant in accordance with its specific terms or is otherwise
breached by Tenant. It is accordingly agreed that Landlord shall be entitled to
an injunction or injunctions to prevent breaches of this Section 26 by Tenant
and to enforce specifically the terms and provisions this Section 26, this being
in addition to any other remedy to which Landlord is entitled at law or in
equity.”

 

	5.  	
      Section
      36.6 of the Lease is hereby amended in full to read as
      follows:

 

“36.6 Choice
of Law; Forum. This
Lease shall be construed and enforced in accordance with the Laws of the State.
Each party hereto consents to, and waives any objection to, Las Vegas, Nevada as
the proper and exclusive venue for any disputes arising out of or relating to
this Lease.”

	6.  	
      The
      Lease is hereby amended by adding a new Section 36.20 to read as
      follows:

 

“36.20 Early
Termination Payment. In
consideration of Tenant’s agreement to change the Expiration Date to June 30,
2006 (as provided in Section 26), Landlord agrees to pay to Tenant the sum of
$7,727,750 (the “Early
Termination Payment”). The
Early Termination Payment, which equals the difference between $8,000,000.00 and
the approximate value of the Waived Rent, shall be due and payable not later
than January 31, 2005. Additionally, in the event it is necessary for Tenant to
supply fiber optic cable to Tenant’s new location, Landlord shall reimburse
Tenant for the actual costs incurred by Tenant in connection therewith (the
“Fiber
Optic Cable Payment”);
provided, however, that the Fiber Optic Cable Payment shall in no event exceed
$500,000.00. To obtain the Fiber Optic Cable Payment, Tenant shall submit
written documentation to Landlord which sets forth in reasonable detail the
total amount of the actual costs incurred by Tenant in connection with supplying
fiber optic cable to Tenant’s new location, together with supporting materials
(i.e., invoices and receipts) with respect to such costs. The Fiber Optic Cable
Payment shall be due and payable within thirty (30) days following Landlord’s
receipt of such written documentation.”

 

	7.  	
      The
      Lease is hereby amended by adding a new Section 36.21 to read as
      follows:

 

“36.21 Guarantee
of Landlord’s Obligations. Station
Casinos, Inc., a Nevada corporation and sole member of Landlord, hereby, to the
fullest extent permitted under applicable law, irrevocably and unconditionally
guarantees to Tenant the prompt performance and payment in full when due of all
obligations of Landlord under this Lease and hereby agrees to take all
reasonably necessary action as the sole member of Landlord to cause Landlord to
perform its obligations under this Lease.”

 

	8.  	
      Capitalized
      terms not otherwise defined in this Third Amendment shall have the
      meanings set forth in the Lease.

 

	9.  	
      Except
      as expressly amended by this Third Amendment, all other terms and
      provisions of the Lease shall remain unaltered, are hereby reaffirmed, and
      shall continue in full force and effect.

 

	10.  	
      This
      Third Amendment may be executed in counterparts, each of which shall be
      deemed an original and all of which shall constitute one and the same
      document, with the same effect as if all parties had signed on the same
      page. Facsimile copies hereof and facsimile signatures thereon shall have
      the same force and effect as originals.

 

 

IN
WITNESS WHEREOF, the parties hereto have executed this Third Amendment as of the
date first written above.

 

 

	 	 	 
	 	VISTA HOLDINGS,
      LLC
	 
 	 
 	 
 
		By:  	/s/ Richard
  Haskins
	 	
      

      Richard Haskins
	 	Manager

 

	 	 	 
	 	MPOWER
      COMMUNICATIONS CORP.
	 
 	 
 	 
 
		By:  	/s/ Russell
    Zuckerman
	 	
      

      Russell Zuckerman
	 	Senior Vice President &
      General Counsel

 

 

FOR
PURPOSES OF SECTION 36.21 OF THE

LEASE
ONLY:

	 	 	 
	 	STATION CASINOS,
      INC.
	 
 	 
 	 
 
		By:  	/s/ Richard
  Haskins
	 	
      

      Richard Haskins
	 	Executive Vice
  PresidentExhibit 10.41

Proposal
for Management Services

Mpower
Communications

Scope
of Work

The
intent of the project is to provide Mpower with recommendations that will
position them to take advantage of their network assets and assist them in
establishing a world class wholesale operating organization. Recognizing that
Mpower is just entering the wholesale arena, CMGI will provide Mpower with a
recommendation of the steps that need to be taken to minimize attrition of the
base and enable growth of the wholesale channel. CMGI will frame these
recommendations in the context of “best practices” for a wholesale channel and
will present these findings to the Mpower Senior Leadership team.

In
addition, CMGI asserts that a key to success for Mpower is to understand the
satisfaction level within the newly acquired base of wholesale customers. To
this end, CMGI will provide Mpower with a customer satisfaction survey and will
recommend a methodology for collecting this input.

In phase
II of this project, CMGI will apply the "best practices" recommendations and
will develop a long run operational plan for the management of the wholesale
accounts. CMGI is uniquely positioned to deliver these recommendations as a
result of being able to staff this project with executives whose backgrounds
include managing the creation of new wholesale channels as well as running
large, industry leading, wholesale organizations.

CMGI
Deliverables

Phase
I

	 	 
	
      	

	
      CMGI
      will provide Mpower with an itemized description of best practices for a
      wholesale organization. The items will be relevant to Mpower’s wholesale
      private line and UNE-P products and will be rational to the size of
      Mpower’s wholesale channel. The items will be prioritized in order of
      customer impact and will include a broad estimate of the level of effort
      required to achieve the best practice. Level of effort will be valued
      using a three-point scale (high, medium, low).

	 	 
	
      	

	
      CMGI
      will create a customer feedback survey template and will recommend a
      methodology for collecting this input. The purpose of the survey will be
      to assess the level of customer satisfaction and to identify gaps between
      customer expectations and company
performance.

Phase
II

	 	 
	
      	

	
      CMGI
      will develop a long run operational plan for the management of the
      wholesale accounts. The plan will include (but not be limited to)
      recommendations on the following: employee skill sets required, dedicated
      vs. common functional organizations, sales and customer tools, operational
      support systems, billing issues, collection and dispute resolution
      procedures, service delivery, maintenance and escalation procedures. The
      plan will assume current volumes and revenues as the baseline and will be
      tested against two additional growth assumptions (to be provided by
      Mpower). *

	 	 
	
      	

	
      CMGI
      will provide Mpower with an objective review of the processes that are
      being (or have been) put into place to support the wholesale accounts
      during the integration period. CMGI personnel can participate as processes
      are developed and/or provide a review of processes that have been
      initiated. The objective of this deliverable is to ensure seamless
      transition of the wholesale accounts to
Mpower.

Requirements

	
      	

	
      Mpower
      will provide CMGI with a review of the financial and volume metrics
      associated with the wholesale channel. This review will ensure that CMGI
      recommendations are sized appropriately. (Phase I)

	
      	

	
      Mpower
      will provide CMGI with an overview of the existing wholesale base,
      including products and monthly revenue by account. (Phase
    I)

	
      	

	
      Mpower
      will provide CMGI with a liaison that will assist CMGI in accessing the
      proper personnel and systems. (Phase I and II)

	
      	

	
      CMGI
      will require on site access to all ICG and Mpower work groups, processes
      and systems involved in currently supporting or future support of the
      wholesale base. (Phase II)

Management
Fee

	
      	

	
      Phase
      I: $20,000

	 	
      Mpower
      shall pay CMGI 50% of the management fee ($10,000) at the time of contract
      execution.  CMGI will invoice Mpower for the remaining 50% ($10,000)
      of the management fee (for phase one of the project) at the completion of
      the project.  Payment for the completed phase will be made by Mpower
      upon review and acceptance of the phase, not to exceed 30
      days.

	 	 
	
      	

	
      Phase
      II: $20,000 *

	 	
      Mpower
      shall pay CMGI 50% of the management fee ($10,000) at the time of contract
      execution of each Phase.  CMGI will invoice Mpower for the remaining
      50% ($10,000) of the management fee (for phase two of the project) at the
      completion of the project.  Payment for the completed phase will be
      made by Mpower upon review and acceptance of the phase, not to exceed 30
      days.

	 	 
	
      	

	
      Reimbursement
      of all travel and travel expense related charges. CMGI will adhere to the
      guidelines set forth in Mpower's Travel and Expense Policies document
      (excluding sections 3.03 and 3.04).

Timeline

Phase
I:

CMGI will
require three weeks to prepare best practices documentation, executive
presentation and survey template.

Phase
II:

CMGI will
require three weeks from the completion of the necessary site visits and
interviews to produce the deliverables contained in Phase II of this proposal.
It is estimated that the prep work and site visits will take place over the
course of two weeks.

* Phase
II analysis does not include UNE-P 

Approvals

Phase
I:

 

	 	 	 
	 	MPOWER COMMUNICATIONS
      CORP.
	 
 	 
 	 
 
	February 18, 2005	By:  	/s/ Russ Shipley
	 	
      

      Russ Shipley
	 	New Technology Officer

	 	 	 
	 	CASSARA MANAGEMENT GROUP,
      INC.
	 
 	 
 	 
 
	February 18, 2005	By:  	/s/ Lori Sofianek
	 	
      

      Lori Sofianek
	 	Sr. Vice President

Phase
II:

		 	 
	 	MPOWER COMMUNICATIONS
      CORP.
	 
 	 
 	 
 
		By:  	
	 	
      

      Russ Shipley
	 	New Technology Officer

		 	 
	 	CASSARA MANAGEMENT GROUP,
      INC.
	 
 	 
 	 
 
		By:  	
	 	
      

      Lori Sofianek
	 	Sr. Vice President

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