SPEEDUS COM INC
8-K, 1999-10-26
CABLE & OTHER PAY TELEVISION SERVICES
Previous: WORLDWIDE ENTERTAINMENT & SPORTS CORP, PRE 14A, 1999-10-26
Next: FIRST SIERRA RECEIVABLES II INC, 305B2, 1999-10-26



<PAGE>


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT


     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



Date of Report (Date of earliest event reported): October 12, 1999




                                SPEEDUS.COM, INC.
               (Exact name of registrant as specified in charter)




          Delaware                  000-27582                13-3853788
          --------                  ---------                ----------
(State or other jurisdiction       (Commission              (IRS Employer
     of incorporation)             File Number)           Identification No.)



140 58th Street, Suite 7E
Brooklyn, New York                                              11220
- ---------------------------------------                       ----------
(Address of principal executive offices)                      (Zip Code)



Registrant's telephone number, including area code: (718) 567-4300



                                 Not Applicable
                                 --------------
          (Former name or former address, if changed from last report)



<PAGE>


Item 2. Acquisition or Disposition of Assets.

     On October 12, 1999, pursuant to the terms of the Amended and Restated
Agreement to Assign LMDS License, dated as of June 13, 1999, among SPEEDUS.COM,
Inc. (the "Company"), SPEEDUSNY, L.P. ("SPEEDUSNY"), a wholly-owned operating
subsidiary of the Company, and NEXTLINK Communications, Inc. ("NEXTLINK"), a
copy of which is attached hereto as Exhibit 10.1 and incorporated by reference
herein, SPEEDUSNY assigned 150 MHz of the spectrum covered by its LMDS license
to NEXTLINK for an assignment price of $20 million (the "Spectrum Assignment").
A copy of the press release announcing the above transaction is attached hereto
as Exhibit 99.1 and is incorporated by reference herein.

Item 7. Financial Statements and Exhibits.

     (a) None.

     (b) Pro forma financial information.

     The following narrative is intended to describe the pro forma effect that
consummation of the Spectrum Assignment would have had on the Company's
financial position as of June 30, 1999, as if such transaction had occurred on
that date, and on the Company's results of operations for the year ended
December 31, 1998 and the six months ended June 30, 1999, as if such transaction
had occurred on January 1, 1998. The Company believes that a narrative
description of these pro forma effects would be more meaningful to stockholders
than the presentation of pro forma financial statements.

     Effects on financial position

     At June 30, 1999, the Company had total current assets of $10.4 million,
including $10.3 million in cash and cash equivalents, and $3 million in total
liabilities. As a result, the Company had the ability to meet its existing
obligations as they became due in the normal course of business. On a pro forma
basis including the $20 million of proceeds from the Spectrum Assignment, there
would be $30.3 million available to the Company for short-term investment until
used to fund operations or future business opportunities.

     At June 30, 1999, the Company had property and equipment with a net
carrying value aggregating $11.8 million, represented by various capital and
other assets used by the Company in the normal course of its business. The
Company's FCC license was awarded to it in recognition of its efforts in
developing and deploying LMDS technology. As a result, the Company's balance
sheet does not reflect any basis for its FCC license. The Spectrum Assignment
does not have an impact on the Company's Internet Broadband Broadcast System or
on the Company's future business plans.

     Effects on results of operations

     For the six months ended June 30, 1999, the Company earned $ 0.2 million in
interest income from the short-term investment of available funds. This amount
would have increased proportionately from investment of the proceeds from the
Spectrum Assignment.

     (c) Exhibits.

10.1   Amended and Restated Agreement to Assign LMDS License, dated as of June
       13, 1999, between SPEEDUS.COM. Inc., SPEEDUSNY, L.P. and NEXTLINK
       Communications, Inc.

99.1   Press Release dated October 13, 1999 of SPEEDUS.COM, Inc.



<PAGE>


                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                        SPEEDUS.COM, INC.

                                        By: /s/ Shant S. Hovnanian
                                            ------------------------------
                                        Name:  Shant S. Hovnanian
                                        Title: Chief Executive Officer

October 25, 1999



<PAGE>


                                  EXHIBIT INDEX

10.1   Amended and Restated Agreement to Assign LMDS License, dated as of June
       13, 1999, between SPEEDUS.COM. Inc., SPEEDUSNY, L.P. and NEXTLINK
       Communications, Inc.

99.1   Press Release dated October 13, 1999 of SPEEDUS.COM, Inc.




<PAGE>


                                                                    Exhibit 10.1
                              AMENDED AND RESTATED
                        AGREEMENT TO ASSIGN LMDS LICENSE

     AMENDED AND RESTATED AGREEMENT TO ASSIGN LMDS LICENSE, effective as of June
13, 1999 (the "Agreement") by and between NEXTLINK Communications, Inc., a
Delaware corporation (the "Assignee"), SPEEDUS.COM, INC., a Delaware corporation
("SPEEDUS"), formerly known as CellularVision USA, Inc., and SPEEDUSNY.COM,
L.P., a Delaware limited partnership ("Assignor"), formerly known as Cellular
Vision of New York, L.P.;

     WHEREAS, Assignor previously held an LMDS 1150 MHz A Block License (the
"License") from the Federal Communications Commission (the "FCC") for the New
York Primary Metropolitan Statistical Area (i.e., the five boroughs comprising
the City of New York, and the contiguous New York State counties of Westchester,
Rockland and Putnam);

     WHEREAS, Assignor disaggregated the License and assigned 850 MHz of the
License to Winstar Communications, Inc. pursuant to the terms of an Agreement to
Assign LMDS License, dated July 10, 1998; and

     WHEREAS, Assignor intends to disaggregate and assign, convey and transfer
to Assignee 150 MHz of the remaining spectrum covered by the License, comprised
of the frequencies between 31.075 and 31.225 GHz and to be conveyed to Assignee
pursuant to a license granted by the FCC thereto (the "150 MHz License") and
Assignee wishes to assign the 150 MHz License, upon the terms and subject to the
conditions set forth herein, free and clear of all Liens (as defined below).

     NOW, THEREFORE, in consideration of the premises, and the mutual conditions
and obligations set forth herein, the parties hereto hereby agree as follows:

     1. Government Approvals; Transition.

(a) As promptly as practicable following the execution and delivery of this
Agreement, Assignor and Assignee will (i) file appropriate applications for the
disaggregation of the License and assignment of the 150 MHz License to Assignee
and a waiver of all FCC rules relating to forfeiture of the 150 MHz License
which may be applicable as a result of Assignor's discontinuance of usage of the
150 MHz License, (ii) make such filings under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 and the related rules and regulations (collectively,
the "HSR Act"), and (iii) make all other regulatory filings and notices that may
be necessary or appropriate to complete the transactions described herein. The
filing fee related to any filing pursuant to the HSR Act will be shared by
Assignee and Assignor on a 50%/50% basis. Following the making of such
applications and filings, both parties will diligently attempt to obtain
successful results with respect thereto in a manner that permits the
consummation of the transactions contemplated herein as soon as practicable.

(b) Prior to the Closing, and in accordance with all applicable legal and
regulatory requirements, Assignor will clear its operations from the spectrum
covered by the 150 MHz License.

     2. Closing.

     The closing of the transactions contemplated herein (the "Closing") shall
occur on the fifth business day (the "Closing Date") following the first date
upon which all of the following conditions are satisfied:

(a) Any applicable waiting period under the HSR Act shall have expired without
action taken to prevent the consummation of the transactions contemplated
herein;

(b) Assignee's due diligence review of the 150 MHz License, which it shall, in
any event, complete not later than June 30, 1999 unless extended by the mutual
agreement of the parties, and Assignee shall have determined (i) that the
transactions contemplated in this Agreement do not violate FCC rules,
regulations and policies and the



<PAGE>


provisions of the Communications Act of 1934, as amended ("FCC Rules") or any
other laws or regulations, or result in any restriction or imposition upon the
150 MHz License, or (ii) that there are no defects, adverse claims, or other
issues materially and adversely affecting the value of the 150 MHz License or
Assignor's or Assignee's potential right, title or interest therein, and no
material adverse change therein shall have occurred thereafter;

(c) Assignee shall have received opinions of Assignor's legal counsel in form
acceptable to Assignee (i) stating that the transactions contemplated in this
Agreement do not violate any FCC Rules; and (ii) in connection with FCC and
corporate matters with respect to the 150 MHz License and the transactions
contemplated hereby. Assignee shall also have received, if Assignee so requires,
a favorable opinion from Assignee's FCC counsel to the effect that there is no
reason to expect (x) that the transactions contemplated hereby will materially
adversely affect the regulatory status of any of the FCC wireless licenses
currently held by Assignee or any of its subsidiaries or (y) that there is any
reason to believe that the disaggregation of spectrum is not permissible under
applicable law;

(d) Final FCC Approval shall have been granted by the FCC;

     "Final FCC Approval" shall occur on the date on which the FCC shall have
granted its consent to (i) the disaggregation and assignment of the 150 MHz
License to Assignee and, (ii) the waiver of all FCC rules relating to forfeiture
of the 150 MHz License which may be applicable as a result of Assignor's
discontinuance of usage of the 150 MHz License (collectively, the "FCC
Approval"), and such consents and waivers shall have become Final Orders.

     "Final Order" shall mean an action by the FCC as to which: (a) no request
by the FCC for stay of the action is pending, no such stay is in effect, and if
any deadline for filing any such request is designated by statute or regulation,
it has passed; (b) no petition for rehearing or reconsideration or application
for review of the action is pending before the FCC and the time for filing any
such petition has passed; (c) the FCC will not have the action under
reconsideration on its own motion and the time for such reconsideration has
passed; and (d) no appeal to a court, or request for stay by a court, of the
FCC's action is pending or in effect, and, if any deadline for filing any such
appeal or request is designated by statute or rule, it has passed.

(e) the conditions set forth in Section 5 shall have been satisfied.

     3. Assignment of 150 MHz License and Payment.

     At the Closing, (a) Assignor shall assign the 150 MHz License to Assignee
(the "Assignment") free and clear of all liens, claims, rights of usage by
anyone other than Assignee and all other encumbrances (collectively, "Liens"),
and (b) Assignee shall pay to Assignor the sum of $20 million ("Assignment
Price") less (i) the aggregate amount of the License Prepayments, defined below,
paid to Assignor hereunder, and (ii) to the extent applicable, the aggregate
amount of that portion of each payment paid to Assignor pursuant to Appendix A
that is equal to the License Prepayment plus any prepayments made pursuant to
Appendix A. Upon the satisfaction of the conditions set forth in Sections 2(a),
(b) and (c) continuing to the earlier of the (x) the Closing Date or (y) the
date Assignee makes its election to terminate the Agreement under Section 6 or
pursuant to exercise the option described in Section 7, Assignee shall pay to
Assignor pre-closing consideration in the amount of ONE HUNDRED SEVENTY-ONE
THOUSAND EIGHT HUNDRED THIRTY DOLLARS AND EIGHTY-EIGHT CENTS ($171,830.88)
("Interim Assignment Payments") each month, of which NINE THOUSAND THREE HUNDRED
THIRTY DOLLARS AND EIGHTY-EIGHT CENTS ($9,330.88) will be "License Prepayment."

     4. Representations and Warranties.

(a) Assignor, SPEEDUS and Assignee (each a "Representer") hereby represents and
warrants that (i) the Representer has all requisite power and authority to
execute and deliver this Agreement and perform its obligations hereunder (ii)
all corporate and partnership action necessary for the authorization, execution
and performance by the Representer of its obligations hereunder and thereunder
have been taken, including all action required of directors, shareholders and
partners, as applicable, and (iii) the execution, delivery and performance of
this Agreement does not and will not require the consent of any other person or
entity, contravene the certificate of



<PAGE>


incorporation or by-laws or certificate of limited partnership or partnership
agreement of the Representer or conflict with or result in a breach or violation
by the Representer of any law, court or administrative order or contract to
which the Representer is a party or by which the Representer is bound.

(b) Assignor and SPEEDUS hereby represent and warrant that Assignor is the sole
legal and beneficial owner and holder of the 150 MHz License, has the right
under applicable law and FCC regulations to effect the disaggregation of
spectrum contemplated hereby and that the 150 MHz License is and will be as of
Closing, held by Assignor free and clear of all Liens. Without limiting the
foregoing, Assignor hereby represents and warrants that no person or entity
other than Assignor has or will have at Closing the right to use all or any
portion of the 150 MHz License. Assignor represents and warrants that it has
full right, power and authority to sell and transfer its rights, title and
interest in and to the 150 MHz License pursuant to this Agreement. Assignor and
SPEEDUS each hereby further represents and warrants that (i) it is in compliance
in all material respects with the Communications Act of 1934, as amended, and
the rules, regulations and policies of the FCC, (ii) Assignor has satisfied all
build-out, renewal, construction and other material regulatory requirements,
(iii) there are no pending complaints, challenges, investigations, petitions,
appeals or other regulatory encumbrances pending or, to the best of the
knowledge of Assignor or SPEEDUS, threatened, against Assignor, SPEEDUS or the
150 MHz License nor is Assignor or SPEEDUS aware of any basis for any such
complaints, challenges, investigations, petitions, appeals or other regulatory
encumbrances, (iv) Assignor has, and effective upon the Assignment, Assignee
will have, the right to make use of the 150 MHz License to provide all services
permitted under the FCC's rules for LMDS service, and (v) the 150 MHz License is
not subject to forfeiture, and no conditions or circumstances exist which could
cause the 150 MHz License to become subject to forfeiture.

(c) Each of Assignor and SPEEDUS will use its best efforts to cause all of its
representations and warranties in this Agreement to remain true and correct at
all times through the Closing Date and to cause all conditions to the Closing
and the Assignment to be satisfied.

     5. Closing Conditions.

(a) Each party's obligation to consummate the Closing shall be subject to the
following conditions: (i) the other party's representations and warranties
hereunder shall be true and correct on and as of the Closing Date, as if made
again on such date, (ii) the other party shall have performed all covenants to
have been performed hereunder and thereunder, and (iii) the other party shall
have delivered a certificate of a senior officer as to the matters in clauses
(i) and (ii) above dated as of the Closing Date.

(b) In addition to the conditions set forth in Section 5(a) above, Assignee's
obligation shall be subject to the conditions that (i) there shall be no
injunction or order of any court or government agency, or any appeal thereof,
restraining or invalidating any of the transactions contemplated hereby and (ii)
Assignee shall have received opinions of (x) Assignor's corporate counsel,
Willkie Farr & Gallagher, dated as of the Closing Date, in form and substance
reasonably satisfactory to Assignee and covering such portion of the matters
covered by Assignor's and SPEEDUS's representations contained herein as are
customarily covered in legal opinions and subject to customary qualifications,
and (y) Assignor's FCC counsel, Michael R. Gardner P.C. relating to FCC matters,
including but not limited to an opinion, in the case of the Assignment, relating
to the disaggregation and assignment of the 150 MHz License.

     6. Termination.

     If the Closing Date shall not have occurred on or before April 30, 2000,
either party that is not then in material breach of its obligations hereunder,
may, after such date, terminate this Agreement without liability; by providing
written notice of termination to the other party, unless Assignee has exercised
its option to lease the 150 MHz License pursuant to Section 7 below.

     7. Option to Lease.



<PAGE>


     If the Closing Date shall not have occurred on or before January 1, 2000,
Assignee may elect, by providing written notice to Assignor, to lease the 150
MHz License from Assignor upon the terms and conditions set forth in the
attached Appendix A.

     8. Transaction Expenses.

     Except as otherwise provided in Section 1(a), each of the parties hereto
will be responsible for its own expenses (including fees and expenses of legal
counsel) incurred in connection with the transactions contemplated hereby. Each
party represents to the other that it has not engaged any broker or finder in
connection with the transaction contemplated hereby, and that it has not
incurred any liability for a broker's or finder's fee or commission in
connection with the transactions contemplated hereby.

     9. Publicity; Disclosure.

     Without the prior approval of the other party, none of the parties hereto
shall disclose to the public or to any third party any information concerning
the transactions contemplated hereby, other than disclosures to their financial,
legal and other advisors and to governmental authorities or the public as may,
in the opinion of counsel, be required by law. Neither party shall refer to the
other in any press release, marketing materials or other materials prepared for
public dissemination without the prior written consent of the other party.
Notwithstanding the foregoing, SPEEDUS and Assignee shall be permitted to
disclose such details of the transaction contemplated hereby as may be required
by law; provided that the other party shall have the right to review and comment
thereon prior to such disclosure being filed, distributed or otherwise
disclosed. The parties will cooperate in the preparation of a joint press
release or coordinated but separate press releases announcing the effectiveness
of this Agreement.

     10. Access.

     Until the Assignment, SPEEDUS and Assignor will give Assignee and its
representatives (i) access during ordinary business hours to the premises and
personnel of Assignor and SPEEDUS and to all accounting, financial and other
records applicable to Assignor as Assignee may reasonably request for the
purpose of confirming compliance with this Agreement and completing Assignee's
due diligence review, and SPEEDUS and Assignor will furnish all information with
respect to the 150 MHz License as Assignee may reasonably request for such
purpose, and (ii) so long as Assignee is then making the Interim Assignment
Payments, upon reasonable notice to Assignor, the right to use the 150 MHz
License (which will remain under Assignor's control) to test Assignee's
communications equipment and facilities, provided that Assignor shall have the
right to observe such testing. SPEEDUS and Assignor will cause their executives,
employees, attorneys and accountants to make themselves available to provide
reasonable cooperation to Assignee in connection therewith.

     11. Exclusivity.

     Neither SPEEDUS nor Assignor shall (nor shall either of them permit their
representatives or stockholders to) discuss a possible sale, lease, use or other
disposition of or by Assignor or SPEEDUS (whether by sale of stock or assets or
otherwise) that is not consistent with the terms of this Agreement or provide
any information in connection therewith to any other party or enter into any
agreements or commitments to do the same.

     12. Assignment.

     This Agreement is intended to be a binding agreement between Assignee,
SPEEDUS and Assignor and shall bind and inure to the benefit of the successors
and assigns of such parties; provided that SPEEDUS and Assignor may not assign
their rights or delegate their obligations hereunder without Assignee's prior
written consent, which will not be unreasonably withheld. Assignee may assign
its rights hereunder to any of its wholly-owned or majority controlled
subsidiaries, provided that no such assignment of its rights shall relieve
Assignee of any of its obligations hereunder.



<PAGE>


     13. Specific Performance; Miscellaneous.

     This Agreement constitutes the entire agreement between the parties
pertaining to the subject matter of this Agreement. There are no promises,
terms, conditions obligations or warranties other than those contained in this
Agreement. This Agreement supersedes all prior communications, representations
or agreements, verbal or written, among the parties relating to the subject
matter of this Agreement, including but not limited to the Agreement to Lease
and Assign LMDS License, dated June 13, 1999 and the Agreement to Assign LMDS
License effective as of June 13, 1999. This Agreement may not be amended except
in writing executed by the parties.

     This Agreement shall be construed and enforced in accordance with the
internal laws of the State of Delaware. This Agreement may be executed in any
number of counterparts, each of which shall be an original, but which together
shall constitute one instrument.

     It is understood and agreed that money damages would not be an adequate
remedy for a breach of the Agreement by Assignor or SPEEDUS and that Assignee
shall be entitled to specific performance and injunctive or other equitable
relief as a remedy for any such breach. Assignor and SPEEDUS agree to waive any
requirement for the securing or posting of any bond in connection with such
remedy. Such remedy shall not be deemed to be the exclusive remedy for any such
breach, but shall be in addition to all other remedies available to Assignee at
law or in equity.



<PAGE>


     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date first above written.

NEXTLINK COMMUNICATIONS, INC.

By: /s/ Scott G. Macleod
    ------------------------------
Title: Chief of Business Development

SPEEDUS.COM, INC.

By: /s/ Shant S. Hovnanian
    ------------------------------
Title: Chief Executive Officer

SPEEDUSNY.COM, L.P.

By: CELLULARVISION CAPITAL CORP.,
its General Partner

By: /s/ Shant S. Hovnanian
    ------------------------------
Title: President



<PAGE>


                                   APPENDIX A

                          TERMS AND CONDITIONS OF LEASE

     Upon exercise of the option to lease described in Section 7 of the
Agreement, Assignor shall lease the 150 MHz License to Assignee in accordance
with the following term and conditions:

Lease Term. Commencing on the date of the notice to lease and terminating on the
earlier of (i) expiration of the current term of the 150 MHz License or (ii) the
Closing Date, ("Lease Term"), Assignor shall lease to Assignee the right to
exclusively utilize, free of any Liens or rights of others, the 150 MHz License
(the "Lease"). In the event the Lease Term expires as a result of the expiration
of the current term of the 150 MHz License, the Lease will be renewed by the
parties if and when the 150 MHz License is renewed by the FCC for a term equal
to the term of the FCC renewal of the 150 MHz License; provided that the
Assignee is not in breach of any material provision of this Agreement at the
time of such renewal. In the event that Assignee elects to commence the Lease
prior to April 30, 2000, each of Assignor and Assignee agree to continue using
commercially reasonable efforts to consummate the Closing subject to Sections 4,
5 and 6 above.

Lease Payment. In consideration of the Lease, during the Lease Term, Assignee
shall pay a monthly lease payment to Assignor equal ONE HUNDRED SEVENTY-ONE
THOUSAND EIGHT HUNDRED THIRTY DOLLARS AND EIGHTY-EIGHT CENTS ($171,830.88)
("Lease Payment"), which represents monthly interest plus amortized principal of
a $20 million loan amortized over 30 years at an interest rate of 9.75% (the
remaining principal amount of such loan being herein referred to as the
"Hypothetical Amortizing Principal"). All License Payments made by Assignee
under Section 3 above shall be applied as prepayments of the Lease and shall
serve to reduce (i) the Hypothetical Amortizing Principal and (ii) the number of
Lease Payments due under the Lease during the term of the Lease. For example, if
Assignee makes ten (10) Interim Assignment Payments under Section 3 of this
Agreement, then upon the commencement of the Lease, Assignee would be deemed to
have made ten Lease Payments and therefore, if Assignee made no prepayments on
the Lease, Assignee would only be required to make three hundred and fifty (350)
Lease Payments to fully pay the Lease. Assignee shall have the right at any
time, at its sole option, to prepay all or any portion of amounts due in
connection with the Lease by paying the net present value of the remaining
Hypothetical Amortizing Principal (or such portion of the Hypothetical
Amortizing Principal that Assignee desires to pay). At such time as the full
Hypothetical Amortizing Principal is paid in full, whether by prepayment or over
the 30 year amortization period, no further amounts shall be due to Assignor
under the Lease. Upon the termination of the Lease for any reason, Assignee
shall have no obligation to make any further Lease Payments.

Expenses. During the Lease Term, all direct expenses incurred by Assignee for
the operation of the LMDS systems and services under the Lease will be paid by
Assignee. Assignee assumes all liabilities incurred by Assignee relating to or
arising from Assignee's operation of such LMDS systems and services and
ownership of the assets used in such operation throughout the Lease Term.
Assignee is entitled to all of the revenues, other than the Lease Payments made
hereunder, from the operation of such LMDS systems and services.

FCC Compliance. The parties will comply with all applicable FCC rules and
regulations governing the 150 MHz License or the LMDS systems and services
operated under the Lease. Without limiting the generality of the foregoing:

1. Assignor, at all times, retains ultimate supervisory control over the use of
the 150 MHz License. Assignor will not take any action or fail to take any
action or allow any condition to exist which would cause the 150 MHz License to
be forfeited or its value diminished.

2. With appropriate notice to, consultation with and participation by Assignee,
Assignor will represent Assignee (i) before all state regulatory agencies with
respect to matters within such agencies' jurisdiction that require the
representation or appearance of the owner of the 150 MHz License and that have
not been or cannot be assumed by Assignee; and (ii) before the FCC with respect
to any matters relating to the 150 MHz License, the operation of the LMDS
systems under the Lease as it relates to any FCC rules, regulations, policies or
provisions of



<PAGE>


the Communications Act of 1934, as amended, and any FCC correspondence and
filings. Assignor will, with the assistance and cooperation of Assignee, take
all actions necessary to keep the Lease and the 150 MHz License in force and
shall timely prepare and submit to the FCC or any other relevant governmental
authority all reports, applications, renewals, filings or other documents
necessary to keep the 150 MHz License and any certificates of public convenience
and necessity or other state regulatory approvals in force and in good standing.
Assignee shall provide Assignor with all information regarding the operations
under the Lease as Assignor shall reasonably request.

3. All LMDS systems and services operated under the Lease will comply with all
applicable governmentally-mandated regulatory programs including, but not
limited to, any priority access requirements. Such compliance may include
collecting applicable fees from subscribers and payment of governmental
assessments for such programs.

4. Nothing in this Appendix A is intended to diminish or restrict Assignor's
obligations as an FCC licensee and both parties desire that this Appendix A be
in compliance with FCC Rules. Any term of this Appendix A that would otherwise
violate FCC Rules shall be deemed amended and modified to the full extent
required to comply with such rules, while preserving to the greatest practicable
extent the benefits intended to be conveyed to the parties hereunder, and the
parties will document such amendments and modifications by written agreement,
unless the same would cause either party substantial and direct economic or
regulatory harm.

5. Assignor shall use its best efforts to cause the FCC to renew the term of the
150 MHz License.


Severability. The provisions of this Appendix A shall be deemed severable and
the invalidity or unenforceability of any provision shall not affect the
validity or enforceability of the other provisions hereof. If any provision of
this Appendix A is invalid or unenforceable, (1) a suitable and equitable
provision shall be substituted therefor in order to carry out, so far as may be
valid and enforceable, the intent and purpose of such invalid or unenforceable
provision and (b) the remainder of this Agreement and Appendix A shall not be
affected by such invalidity or unenforceability.




<PAGE>


                                                                    Exhibit 99.1

                   SPEEDUS.COM Completes NEXTLINK Transactions

October 13, 1999 - New York, New York

SPEEDUS.COM, Inc. (NASDAQ: SPDE) today announced the assignment of 150 MHz of
the Company's LMDS spectrum to NEXTLINK Communications, Inc. (NASDAQ: NXLK) in
exchange for $20 million in cash. Since July 1999, pending FCC approval of the
license assignment, NEXTLINK has been making monthly payments of approximately
$172,000 to the Company. As previously announced, on July 9, 1999 NEXTLINK
purchased 2 million shares of the Company's Common Stock at $10 per share for a
total equity investment of $20 million. SPEEDUS.COM is a facilities-based super
high-speed Internet Service Provider. The Company is limiting the marketing of
its Internet service under the SPEED service mark to its initial subscribers as
part of the SPEED service pilot program. SPEED is delivered via 14 fully
functional Internet Broadcast Stations in operation under SPEEDUS.COM's FCC
license covering Metro New York. SPEED subscribers are able to browse the Web
using the Company's SPEED modem capable of downstream speeds of up to 48 Mbps,
which is 31 times faster than a full T1 line. The SPEED modems are only
available from the Company for $350, which along with the $150 installation cost
can now be financed for up to 3 years.

SPEEDUS.COM operates a Network Operation Center ("NOC") in the Brooklyn Army
Terminal. The NOC contains a data center with a Linux-based Internet gateway
transmitter and a teleport facility with satellite down links and fiber optic
backbone. SPEEDUS.COM's NOC hardware and software, and customer premise
equipment and software, give its Internet network the unique ability to
"multi-cast" and "stream" high-quality full screen full motion video and
CD-quality audio to its subscribers. SPEEDUS.COM also provides standard direct
dial-up and ISDN service with web hosting, e-mail and value-added Internet
services. The Company's signal is currently not available at all locations in
its license area. Increased signal coverage through additional Internet
Broadcast Stations is crucial to widespread availability of the SPEED service.
However, SPEEDUS.COM believes that where its signal penetrates, the Company
offers small businesses and residential customers the lowest-cost, highest
downstream speed Internet access available.

For additional information on the Company and its services, please visit the
Company's website at www.speedus.com or call 718.567.4300.

                                      ####

Statements contained herein that are not historical facts, including but not
limited to statements about the Company's product, corporate identity and focus,
may be forward-looking statements that are subject to a variety of risks and
uncertainties. There are a number of important factors that could cause actual
results to differ materially from those expressed in any forward-looking
statements made by the Company's sales, marketing and support efforts.

All rights reserved. SPEEDUS.COMsm and SPEEDsm are service marks of SPEEDUS.COM,
Inc.





© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission