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Ordinance No. 1065 (3)1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. 1065 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON GRANTING A NON-EXCLUSIVE FRANCHISE TO METRICOM, INC., TO ATTACH, INSTALL, MAINTAIN AND OPERATE EQUIPMENT FOR A WIRELESS DIGITAL COMMUNICATIONS RADIO NETWORK AT VARIOUS LOCATIONS IN THE PUBLIC STREETS, ALLEYS AND RIGHTS -OF -WAY IN THE CITY OF VERNON WHEREAS, Metricom, Inc., a Delaware corporation, is a public utility that provides subscribers to its services with access to the internet by means of a wireless digital communications radio network; and WHEREAS, Metricom wishes to attach, install, operate, and maintain equipment for its wireless digital communications radio network on facilities located in the Public Rights -of -Way for purposes of operating its Ricochet' wireless digital communications radio network (the "Network"); and WHEREAS, under California law the City has the right and power to regulate the time, location, and manner of attachment, installation, operation, and maintenance of wireless digital communications radios in the Public Rights -of -Way within the limits of the City; and WHEREAS, the City Council is authorized by City Charter Section 8.9. to grant a franchise in the City of Vernon to any person, firm, corporation, or other entity and to set terms conditions, restrictions and limitations by ordinance. THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS: SECTION 1: Findings. The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. 1 a 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 2: A franchise (hereinafter "Franchise") shall be, and the same is hereby, granted by the City Council of the City of Vernon to Metricom, Inc., to attach, install, maintain and operate equipment for a wireless digital communications radio network in the Public Rights -of -Way, as hereinafter defined, subject to the terms and conditions set forth in this Ordinance. The City Council of the City of Vernon also grants this Franchise subject to the terms and conditions set forth in the Code of the City of Vernon, California, 1959, Chapter 22, Article VI, to the extent they are not in conflict with any paramount authority of the State or Federal government, and the acceptance hereof shall evidence the Franchisee's agreement to all terms and conditions of said articles and the additional conditions herein contained. SECTION 3: DEFINITIONS. The following definitions shall apply generally to the provisions of this agreement: 3.1 "Agency" means any governmental or quasi - governmental agency other than the City, including the FCC and the PUC (as such terms are defined in §§ 3.3 and 3.8 below). 3.2 "Effective Date" means the effective date of this ordinance as specified in Section 15, which shall also be the effective date of the Franchise. 3.3 "FCC" means the Federal Communications Commission. 3.4 "Fee" means any assessment, license, charge, fee, imposition, tax (but excluding any utility user's tax or encroachment license fees), or levy of general application to Persons doing business in the City lawfully imposed by any governmental body. -2- 1 3.5 "Franchise" means the nonexclusive franchise granted 2 by this Ordinance and may also refer to the associated 3 right to encroach upon the Public Rights -of -Way conferred 4 hereunder. 5 3.6 "Gross Revenues" mean the gross dollar amount 6 accrued on Metricom's books for Services provided to its 7 customers with billing addresses in the City, excluding 8 (i) the franchise fees, if any, payable pursuant to § 6 9 et seq. below; (ii) local, state, or federal taxes 10 collected by Metricom that have been billed to the 11 subscribers and separately stated on subscribers' bills; 12 and (iii) revenue uncollectible from subscribers (i.e., 13 bad debts) with billing addresses in the City that was 14 previously included in Gross Revenues. 15 3.7 "Laws" mean any and all statutes, constitutions, 16 ordinances, resolutions, regulations, judicial decisions, 17 rules, tariffs, administrative orders, certificates, 18 orders, or other requirements of the City or other 19 governmental agency having joint or several jurisdiction 20 over the parties to this Franchise, in effect either at 21 the time of execution of this Franchise or at any time 22 during the presence of Radios in the Public Rights-of- 23 Way. 24 3.8 "PUC" means the California Public Utilities 25 Commission. 26 3.9 "Person" means an individual, a corporation, a 27 limited liability company, a general or limited 28 partnership, a sole proprietorship, a joint venture, a -3- 1 business trust, or any other form of business entity or 2 association. 3 3.10 "Provision" means any agreement, clause, condition, 4 covenant, qualification, restriction, reservation, term, 5 or other stipulation in this Franchise that defines or 6 otherwise controls, establishes, or limits the 7 performance required or permitted by any party to this 8 Franchise. All Provisions, whether covenants or 9 conditions, shall be deemed to be both covenants and 10 conditions. 11 3.11 "Public Rights -of -Way" means in, upon, above, 12 along, across, and over the public streets, roads, lanes, 13 courts, ways, alleys, boulevards, and places, including 14 all public utility easements and public service easements 15 as the same now or may hereafter exist that are under the 16 jurisdiction of the City. This term shall not include 17 any property owned by any Person or Agency other than the 18 City, except as provided by applicable Laws or pursuant 19 to an agreement between the City and any such Person or 20 Agency. 21 3.12 "Radio" means the radio equipment, whether referred 22 to singly or collectively, to be installed and operated 23 by Metricom hereunder and more particularly shown and 24 described in Exhibit A attached hereto and made a part 25 hereof by reference. 26 3.13 "Radio Month" means a calendar month during which a 27 Radio occupies space on a City -owned pole or other City- 28 owned property, even if such occupancy is less than the -4- 11 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 entire month. 3.14 "Ricochet"' or "Ricochet' MCDN" means Ricochet'm MicroCellular Digital Network, a wireless, microcellular digital radio communications network owned and operated by Metricom. 3.15 "Services" means the wireless digital communications services provided through Ricochet"" by Metricom to subscribers with billing addresses within the City. SECTION 4: TERM. The term of this Franchise shall commence on the Effective Date for a period of five (5) years unless it is earlier terminated by either party in accordance with the provisions herein. At the expiration of the said five-year term, the Franchise shall be automatically renewed for an additional term of five (5) years without public hearing, unless the City gives written notice to Metricom not less than sixty (60) days before the expiration of said term that the Franchise shall not be renewed. The maximum cumulative term of this Franchise shall not exceed twenty-five (25) years. SECTION 5: SCOPE OF FRANCHISE. Any and all rights expressly granted to Metricom under this Franchise, which shall be exercised at Metricom's sole cost and expense, shall be subject to the prior and continuing right of the City under applicable Laws to use any and all parts of the Public Rights -of -Way exclusively or concurrently with any other Person or Persons and shall be further subject to all deeds, easements, dedications, conditions, covenants, restrictions, encumbrances, and claims of title which may affect the Public Rights -of -Way. Nothing in this Franchise -5- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 shall be deemed to grant, convey, create, or vest a perpetual real property interest in land in Metricom, including any fee, leasehold interest, or easement. 5.1 Attachment to City -Owned Property. The City hereby authorizes Metricom to attach, install, operate, maintain, remove, reattach, reinstall, relocate, and replace Radios in or on light poles, lighting fixtures, electroliers, or other City -owned property located within the Public Rights -of -Way for the purposes of providing Services to Persons located within or without the limits of the City. 5.2 Attachment to Third -Party Property. Subject to obtaining the permission of the owner(s) of the affected property, the City hereby authorizes Metricom to attach, install, operate, maintain, remove, reattach, reinstall, relocate, and replace such number of Radios in or on poles or other structures owned by public utility companies or other property owners located within the Public Rights -of -Way as may be permitted by the public utility company or property owner, as the case may be. Metricom shall furnish to the City documentation of such permission from the individual utility or property owner responsible. 5.3 No Interference. Except as permitted by applicable Laws or this Franchise, Metricom in the performance and exercise of its rights and obligations under this Franchise shall not interfere in any manner with the existence and operation of any and all public and private 1 2 3 4 5 6 7 8 9' 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 rights -of -way, sanitary sewers, water mains, storm drains, gas mains, poles, and underground electrical and telephone wires, electroliers, cable television, and other telecommunications, utility, or municipal property, without the express written approval of the owner or owners of the affected property or properties. 5.4 Compliance with Laws. Metricom shall comply with all applicable Laws in the exercise and performance of its rights and obligations under this Franchise. 5.4.1 Construction permits. Any and all construction work performed pursuant to the rights granted under this Franchise, including the installation, operation, maintenance, location, and attachment of the Radios in the Public Rights -of - Way, shall be subject to the prior review and approval of the City by means of submission of an encroachment permit application, payment of any applicable permitting fees, and the City's ordinary administrative review. Metricom shall apply for and obtain all appropriate permits required by applicable Laws prior to the commencement of any work of construction in the Public Rights -of -Way. The locations of Metricom's proposed initial installation of Radios are shown in Exhibit B, attached hereto and made a part hereof by reference. After the initial deployment of the Radios, new attachments, removals, and relocations of Radios shall also be subject to the City's encroachment -7- 1 permit process. If the location of any Radio is 2 different from that applied for in the applicable 3 permit, the location of such Radio installed by 4 Metricom or its designee shall be disclosed in 5 writing to the City by Metricom within ten (10) days 6 after its installation, removal, or relocation and 7 shall .be approved by the Director of Community 8 Services. 9 5.4.2 As -Built drawings. Upon the completion of 10 construction work, Metricom promptly shall furnish 11 to the City, in hard copy and in Metricom's 12 electronic format, suitable documentation showing 13 the exact location of the Radios in the Public 14 Rights -of -Way. 15 5.5 Modification of Service Voltage. The City reserves 16 the right to modify the service voltage delivered to or 17 at any street light pole or utility pole on which a Radio 18 may be located. Metricom shall replace or modify any 19 Radio that will be affected by such voltage modifications 20 within thirty (30) days of receiving notice of voltage 21 modifications. In the event that Metricom fails to 22 replace or modify any Radio within the thirty -day notice 23 period before the voltage modification, the City may 24 disconnect any such Radio until Metricom performs and 25 completes the necessary work and advises City 26 accordingly. 27 5.6 Electric Service Connection and Rates. Each Radio 28 shall be interconnected to the electrical power of a -8- 1 light pole or utility pole in accordance with the 2 drawings and specifications attached hereto as Exhibit C 3 and made a part hereof by reference. Modular plug-in 4 connections on light poles may be made by Metricom 5 employees in accordance with said specifications. Any 6 other electrical wiring shall be performed only by City 7 employees or City's contractor, the costs of which shall 8 be paid by Metricom. Metricom shall take electric 9 service at the then applicable electric schedule for 10 small single-phase general service with the following 11 conditions: 12 (a) A single customer charge for the network shall 13 be paid semi-annually at a rate of Seventy-five 14 Dollars ($75) which shall be adjusted at the same 15 rate as other Fees pursuant to Section 6.3 of this 16 Agreement. 17 (b) Energy use shall be deemed to be 3.8 kWh per 18 month per RicochetTm Ethernet Radio - Mod 21040. 19 Energy use shall be adjusted by the Light and Power 20 Department for any other Radio devices installed. 21 (c) Bills for energy use shall be mailed within two 22 (2) weeks of the date of the first Radio 23 installation and shall be paid within twenty (20) 24 days of receipt. Said bills shall be based on the 25 number of Radios Metricom estimates it will install 26 on City -owned poles or other City -owned property 27 during the succeeding six (6) months. 28 (d) Bills for electric service shall be submitted -9- 1 and adjusted semi-annually to account for the 2 installation or removal of Radios during the prior 3 billing period and for the estimated new 4 installation for the subsequent six-month period. 5 (e) All other provisions of said rate schedule 6 shall be applied. 7 5.7 Annual Business License. Metricom shall obtain an 8 annual City business license prior to the Effective Date 9 and maintain the same throughout the term of this 10 Franchise. 11 5.8 Nonexclusive Use. This Franchise does not provide 12 Metricom with exclusive use of any City -owned poles or 13 property and City shall have the right to allow other 14 providers of telecommunications services to install 15 equipment or devices in the Public Rights -of -Way; 16 however, City shall endeavor promptly to notify Metricom 17 of the receipt of a proposal for the installation of 18 communications equipment or devices in the Public Rights- 19 of -Way, regardless of whether a franchise or license is 20 required by the FCC for the operation thereof. 21 SECTION 6: FEES AND TAXES. Metricom shall pay all 22 lawful Fees, utility user's taxes, electrical rates and franchise 23 fees in connection with the exercise of Metricom's rights under 24 this Franchise including those set forth below. 25 6.1 Franchise Fees. Notwithstanding any other provision 26 of this Franchise, Metricom shall pay to City an initial 27 franchise fee in the amount of Two Hundred Fifty Dollars 28 and No Cents ($250.00) and an annual fee thereafter in -10- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 the amount of Thirty-eight Dollars and Thirty-three Cents ($38.33) on each anniversary of the Effective Date. City recognizes Metricom's concern that its competitors be treated similarly with regard to fees for access to similar City facilities. In drafting and adopting any such fee, City will make a reasonable effort to assure that such charges are equivalent for Metricom and its competitors, subject to allowances for the nature of City property utilized, the market demand for such use of such facilities, and City's legal authority to impose such charges. As used in this § 6.1, the term competitor means any entity which supplies wireless data communications services within the City and operates radios or other equipment within the Public Rights -of - Way. 6.2 Annual Radio Fee. Metricom shall pay to the City an annual fee (the "Annual Radio Fee") in the amount of Sixty Dollars ($60.00) for the use of each City -owned pole or other structure or piece of City -owned property upon which a Radio has been installed pursuant to this Franchise. The initial Annual Radio Fees shall be due and payable not later than the date of installation of the first Radio on City -owned poles or other City -owned property under this Franchise (the "Installation Date") and shall be computed based upon the number of Radios Metricom estimates as of the Installation Date that it will install on City -owned poles or other City -owned property during the succeeding twelve (12) months. The -11- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Annual Radio Fees for subsequent years shall be due and payable not later than thirty (30) days following each anniversary of the Installation Date based on the total number of Radios then installed on City -owned poles or other City -owned property pursuant to the License. The total of Annual Radio Fees shall be adjusted by either increasing or decreasing a subsequent year's aggregate Annual Radio Fees to account for the installation or removal of Radios during the prior year. Such adjustment shall equal the difference between (i) the estimate of Radio Months used to calculate the prior year's aggregate Annual Radio Fees and (ii) the actual number of Radio Months which occurred during such year, multiplied by one -twelfth of the Annual Radio Fees. 6.3 CPI Adjustment. At the commencement of each five (5) year renewal term, all Fees set forth herein with respect to such term shall be adjusted effective January 1st of the first year of such renewal term by a percentage amount equal to the percentage change in the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index of all items, Base 1982-1984, which occurred during the previous term or renewal term, as the case may be, for the Los Angeles -Anaheim -Riverside Consolidated Metropolitan Statistical Area. 6.4 Municipality Access Program. As additional consideration for this Franchise, City shall have the right throughout the term of this Agreement to purchase a number of subscriptions based upon the City's population, -12- 1 2 3 4 5 6 7 8 9 10 11 12 13'' 14' 15 16 17 18 19 20 21 22 23 24 25I 26 27 28 up to the maximum number set forth below, to Metricom's lowest base rate RicochetTM subscription service when such service is commercially available in the City at the rate of fifty percent (50%) of the base rate for such service, as modified from time to time. The number of subscriptions which the City may purchase at the Municipality Access Program rate shall be determined in accordance with the City's official population, as shown on the latest available census data, as follows: (a) for cities with a population of less than 100,000, up to a maximum of twenty (20) discount subscriptions; (b) for cities with a population of 100,000 to 249,000, up to a maximum of thirty (30) discount subscriptions; (c) for cities with a population of 250,000 to 500,000, up to a maximum of forty (40) discount subscriptions; and (d) for cities with a population of over 500,000, up to a maximum of fifty (50) discount subscriptions. City understands and agrees that Metricom's modems, subscriptions or service options the City may desire are expressly excluded from this special Municipality Access Program rate and may be obtained from either Metricom or an authorized retailer at market rates current from time to time or under other promotional programs which may be available from time to time in addition to the Municipality Access Program rate. City shall use all subscriptions provided pursuant to this § 6.4 solely for its own use and shall not be entitled to resell, distribute, or otherwise permit the use of the same by -13- 1 any other party. 2 6.5 Reimbursement of City's Expenses. Metricom shall 3 reimburse the City at City's standard rates for all 4 reasonable expenses relating to the preparation, 5 issuance, and implementation of the Franchise, promptly 6 upon receipt of bills, paid invoices, and such other 7 documentation as Metricom shall reasonably require. The 8 reimbursement provided for in this S 6.5 shall not 9 replace or excuse Metricom from the payment of any 10 applicable City permit fee for work undertaken in 11 connection with this Franchise. 12 6.6 Potential Utility User's Tax. Metricom acknowledges 13 and agrees that the City may require users of the 14 Services to pay a utility user's tax to the City pursuant 15 to a duly adopted City ordinance. If the City adopts 16 such an ordinance making the Services subject to a 17 utility user's tax, Metricom agrees to collect the tax 18 from Service users and remit such tax to the City. 19 6.7 Most -Favored Nation Clause. Should Metricom after 20 the Effective Date enter into a similar agreement with 21 another municipality with a population of 55,000 persons 22 or less in the Los Angeles Metropolitan Statistical Area, 23 which agreement contains financial benefits for such 24 municipality which, taken as a whole and balanced with 25 other terms of such agreement, are substantially superior 26 to those in this Franchise, on request of the City, 27 Metricom shall consent to a modification of this 28 Franchise to incorporate the substantially similar -14- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 superior benefits. SECTION 7: REMOVAL AND RELOCATION OF RADIOS. Metricom understands and acknowledges that City may require Metricom to relocate one or more of its Radios, and Metricom shall at City's direction relocate such Radios at Metricom's sole cost and expense, whenever City reasonably determines that the relocation is needed. If Metricom shall fail to relocate any such Radio, City shall be entitled to remove or relocate the Radio at Metricom's sole cost and expense, without further notice to Metricom. 7.1 Metricom Desires Relocation. In the event Metricom desires to relocate any Radio from one City -owned pole or other property to another City -owned pole or other property, Metricom shall so advise City. City will use its best efforts to accommodate Metricom by making another functionally equivalent City -owned pole or other property available for use in accordance with and subject to the terms and conditions of this Franchise. 7.2 Discontinuation of Service. In the event that any Radio subject to this Franchise is abandoned and no longer placed in service for a period of six (6) months or more, Metricom promptly shall notify the City, and the City, at its option, may require Metricom promptly to remove the abandoned Radio(s) at Metricom's sole cost and expense. In the alternative, Metricom, at the City's request, may dedicate the same to the City. The City shall not require removal of Radios unless and until the City first gives fifteen (15) days' prior written notice -15- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23!i 24 25 26 27 28 to Metricom to remove the Radios. If Metricom shall fail to remove the Radios as required by the City, the City shall be entitled to remove the Radios at Metricom's sole cost and expense. At City's request for dedication, Metricom shall execute such documents of title as will convey all right, title, and interest in the abandoned Radios to the City, but in no other Metricom property, intellectual or otherwise. 7.3 Damage to Rights -of -Way. Whenever the removal or relocation of Radios is required under this Franchise, and such removal or relocation shall cause the Public Rights -of -Way to be damaged, Metricom, at its sole cost and expense, shall promptly repair and return the Public Rights -of -Way in which the Radios are located to a safe and satisfactory condition to the satisfaction of the City's Director of Community Services. If Metricom does not so repair the site, then the City shall have the option, upon fifteen (15) days' prior written notice to Metricom, to perform or cause to be performed such reasonable and necessary work on behalf of Metricom and to charge Metricom for the proposed costs to be incurred or the actual costs incurred by the City at City's standard rates. Upon the receipt of a demand for payment by the City, Metricom shall reimburse the City for such costs. 7.4 Advice of Displacement. To the extent the City has actual knowledge thereof, the City will attempt to inform Metricom of the displacement of any pole on which any -16- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Radio is located. SECTION 8: INDEMNIFICATION, WAIVER AND BOND. Metricom shall indemnify, defend (with legal counsel reasonably acceptable to the City), protect, and hold harmless the City, its council members, officers, employees, and agents from and against any and all claims, demands, losses, damages, liabilities, fines, charges, penalties, administrative and judicial proceedings and orders, judgments, remedial actions of any kind, all costs and cleanup actions of any kind, and all costs and expenses incurred in connection therewith, including reasonable attorney's fees and costs of defense (collectively, the "Losses") arising, directly or indirectly, in whole or in part, out of the activities or facilities described in this Franchise, except to the extent arising from or caused by the sole negligence or willful misconduct of the City, its council members, officers, employees, agents, or contractors. 8.1 Waiver of Claims. Metricom waives any and all claims, demands, causes of action, and rights it may assert against the City on account of any loss, damage, or injury to any Radio or any loss or degradation of the Services as a result of a sudden or gradual loss or change of electrical power caused by, among others, an Act of God, an event or occurrence which is beyond the reasonable control of the City, a power outage, a lightning strike, or occasioned by -the installation, maintenance, replacement or relocation of any City -owned facility to which such Radio is attached. -17- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 8.2 Limitation of City's Liability. The City shall be liable only for the cost of repair to damaged Radios arising from the negligence or willful misconduct of City or its employees or agents, and the City shall not be responsible for any damages, losses, or liability of any kind occurring by reason of anything done or omitted to be done by the City or by any third party, including damages, losses, or liability arising from the issuance or approval by the City of a permit to any third party or any interruption of Services. 8.3 Bond or Other Security. Prior to the commencement of any work under this Franchise, Metricom shall furnish or cause to be furnished to City a good and sufficient bond, substantially in the form attached hereto as Exhibit D entitled Surety Bond, in the amount of Ten Thousand Dollars ($10,000), or such other comparable security instrument as may be approved by the City's attorney or risk manager, securing the faithful performance by Metricom of all of the work, construction, installation, and removals required to be performed by Metricom under this Franchise within the time periods set forth hereunder. If the surety cancels or withdraws from said Bond, Metricom shall submit a new bond effective on or before the date of such cancellation or withdrawal, or a letter of credit in a form and manner acceptable to the City Administrator. Metricom's right to exercise the franchise rights granted by this ordinance shall be suspended during any period of time that Metricom shall 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 fail to maintain the bond or other form of security required by this section 8.3. SECTION 9: INSURANCE. Metricom shall obtain and maintain at all times during the term of this Franchise (including the period between the expiration hereof and Metricom's removal of its Radios or other equipment from the Public Rights -of -Way) insurance in the amounts set forth in Exhibit E, Schedule of Insurance, attached hereto and made a part hereof by reference. 9.1 Contractor's and Subcontractors' Insurance. Metricom shall require that all contractors and subcontractors obtain insurance meeting the criteria set forth herein and shall furnish to the City copies of all certificates evidencing such policies of insurance. 9.2 Insurance and Indemnification Obligation. Metricom's compliance with the insurance requirements herein shall not excuse, or otherwise affect Metricom's duty to indemnify and defend the City pursuant to § 8 of this Franchise. SECTION 10: NOTICES. All notices which shall or may be given pursuant to this Franchise shall be in writing and delivered personally or transmitted (a) through the United States mail, by registered or certified mail, postage prepaid; (b) by means of prepaid overnight delivery service; or (c) by facsimile transmission, if a hard copy of the same is promptly sent by such delivery, through the U. S. mail or by overnight delivery service addressed as follows: -19- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 rA41 W4 MR. BRUCE V. MALKENHORST CITY ADMINISTRATOR/CITY CLERK CITY OF VERNON 4305 SANTA FE AVENUE VERNON CA 90058-0805 METRICOM METRICOM, INC. ATTN: PROPERTY MANAGER 980 UNIVERSITY AVENUE LOS GATOS CA 95030 Notices shall be deemed given (i) upon receipt in the case of personal delivery, (ii) three (3) days after deposit in the mail, or (iii) the next day in the case of overnight delivery. Either party may from time to time designate any other address for this purpose by written notice to the other party delivered in the manner set forth above. SECTION 11: TERMINATION. This Agreement may be terminated by either party upon thirty (30) days' prior written notice to the other party upon default of any material covenant or term hereof by the other party, which default is not cured within thirty (30)) days of receipt of written notice of default (or, if such default is no curable with thirty (30) days, if the defaulting party fails to commence such cure within thirty (30) days or fails to thereafter diligently prosecute such cure to completion), provided that the cure period for any monetary default is ten (10) days from receipt of notice. SECTION 12: ASSIGNMENT. This Franchise shall not be assigned by Metricom without the express written consent of the City, which consent shall not be unreasonably withheld, conditioned, or delayed. Any attempted assignment in violation of -20- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 this § 12 shall be void. 12.1 Notwithstanding the foregoing, the transfer of the rights and obligations of Metricom hereunder to a parent, subsidiary, or financially viable affiliate of Metricom or to any successor -in -interest or entity acquiring all or substantially all of Metricom's outstanding voting stock or assets shall not be deemed an assignment or transfer for the purposes of this Franchise, provided that (i) any such transferee will have a financial strength after the proposed transfer at least equal to that of Metricom prior to the transfer, (ii) any such transferee assumes all the obligations of Metricom hereunder, and (iii) Metricom.shall not be released from the obligations of this Franchise by virtue of such transfer. 12.2 If such criteria are satisfied, it shall not be deemed reasonable for the City to withhold its consent to the proposed transfer, unless the proposed transferee has a record of performance under similar agreements which is unacceptable to the City under a reasonable standard of evaluation. Lack of prior specific experience in administering a system providing the Services described in this Franchise shall not, by itself, be deemed a reasonable basis for refusing or conditioning the City's consent. 12.3 Metricom shall give to the City thirty (30) days' prior written notice of any transfer for which notice is required hereunder. In the case of any proposed transfer -21- I for which the City's consent is required hereunder, 2 Metricom agrees to reimburse the City for its reasonable 3 expenses incurred in reviewing such transfer proposal. 4 12.4 Successors and Assigns. This Franchise is binding 5 upon the successors and assigns of the parties hereto. 6 SECTION 13: MISCELLANEOUS PROVISIONS. The provisions 7 which follow shall apply generally to the obligations of the 8 parties under this Franchise. 9 13.1 Severability of Provisions. If any one or more of 10 the Provisions of this Franchise shall be held by court 11 of competent jurisdiction in a final judicial action to 12 be void, voidable, or unenforceable, such Provision(s) 13 shall be deemed severable from the remaining Provisions 14 of this Franchise and shall in no way affect the validity 15 of the remaining portions of this Franchise. 16 13.2 Waiver of Breach. The waiver by a party of any 17 breach or violation of any Provision of this Franchise by 18 the other party shall not be deemed to be a waiver or a 19 continuing waiver by such party of any subsequent breach 20 or violation of the same or any other Provision of this 21 Franchise. 22 13.3 All -Hours Contact. Staff employees of Metricom 23 shall be available twenty-four (24) hours a day, seven 24 (7) days a week to any City department having 25 jurisdiction over Metricom's activities, regarding 26 problems or complaints resulting from the attachment, 27 installation, operation, maintenance, or removal of the 28 Radios. The City may contact by telephone the network -22- 1 control center operator at telephone number (800) 556- 2 6123 regarding such problems or complaints. 3 13.4 Governing Law; Jurisdiction. This Franchise shall 4 be governed and construed by and in accordance with the 5 laws of the State of California. In the event that suit 6 is brought by a party to this Franchise, the parties 7 agree that trial of such action shall be vested 8 exclusively in the state courts of California, County of 9 Los Angeles, or in the United States District Court, 10 Central District of California in the County of Los 11 Angeles. 12 13.5 Attorneys' Fees. Should any dispute arising out of 13 this Franchise lead to litigation, the prevailing party 14 shall be entitled to recover its costs of suit, including 15 reasonable attorneys' fees. 16 13.6 Exhibits. All exhibits. referred to in this 17 Franchise and any addenda, attachments, and schedules 18 which may from time to time be referred to in any duly 19 executed amendment to this Franchise are by such 20 reference incorporated in this Franchise and shall be 21 deemed a part of this Franchise. 22 13.7 Rules, Regulations, and Specifications. Metricom 23 acknowledges that the City may develop rules, 24 regulations, and specifications, including a general 25 ordinance or other regulation governing wireless 26 telecommunications in the City (the "Regulations"), for 27 the attachment, installation, and removal of Radios and 28 any similar purpose devices on the City -owned facilities, -23- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 including poles, and that such Regulations, when finalized, shall govern Metricom's activities hereunder as if they had been in effect at the time this Franchise was executed by the City; provided, however, that in no event shall such Regulations materially interfere with or affect Metricom's right to install Radios or Metricom's ability to transmit or receive radio signals from Radios installed pursuant to and in accordance with this Franchise or materially increase Metricom's obligations hereunder. 13.8 Consent Criteria. In any case where the approval or consent of one party hereto is required, requested or otherwise to be given under this Franchise, such party shall not unreasonably delay, condition, or withhold its approval or consent. 13.9 Amendments. The terms and conditions of this Franchise may be amended only by an ordinance duly approved and adopted by the City Council of the City of Vernon. 13.10 Acceptance of Franchise. Not later than thirty (30) days from the effective date of this ordinance, Metricom shall provide the City with written acceptance of the Franchise in the form and manner specified in Exhibit "F" attached hereto. The written acceptance shall be executed on behalf of Metricom in the manner prescribed in Section 313 of the California Corporations Code. CMIC 1 2 3 4 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 14: PUBLICATION. There being no newspaper printed, published or circulated in the City of Vernon, the City Clerk is hereby directed to certify to the passage of this ordinance and shall post the same, or cause the same to be posted, within fifteen (15) days after its passage in accordance with Section 36933 of the Government Code, in three (3) of the most public places in the City of Vernon, to wit: the northwest corner of 38th Street and Santa Fe Avenue, the northeast corner of Leonis Boulevard and Pacific Boulevard, and on the bulletin board in the lobby of the City Hall of said City, located at 4305 Santa Fe Avenue, all in the City of Vernon, County of Los Angeles, State of California. SECTION 15: EFFECTIVE DATE. This ordinance shall be in full force and effect thirty (30) days from and after its passage by the City Council. APPROVED AND ADOPTED this 29th day of June, 1999. LEONIS C. MA URG, M yor ATTEST• ' 2E- BRUCE V. MALKENHORST, City Clerk Sdifl 1 2 3 4 5 6 7 8' 9 10 11 12 13 141 15 16 17 18 19 20 21 22 011 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Ordinance, being Ordinance No. 1065 was duly and regularly introduced at a regular meeting of the City Council of the City of Vernon, held on Tuesday, June 15, 1999, and thereafter finally adopted at an adjourned regular meeting of said City Council held on Tuesday, June 29, 1999, and thereafter was duly signed by the Mayor of the City of Vernon, by the following vote: AYES: ALL Councilmen: Malburg, Ybarra, Davis Gonzales, McCormick (SEAL) NOES: NONE Councilmen: ABSENT: NONE Councilmen: BRUCE V. MALKENHORST, City Clerk -26- EXHIBIT A EXHIBIT "A"71 DESCRIPTION OF RADIOS General Operating Frequency Range Spreading Technique Hopping Technique Number of Channels Channel Spacing RF Data Rate Transmitter R.F. Output Power Omni Antenna Gain Baseband Modulation Field Strength at 10 Ft Power Density at 50 Ft Environmental Operating temperature Range Storage Temperature range Operating Vibration 5 to 7.5 Hz 7.5 to 500 Hz Operating Shock Humidity Salt Spray Transportation Vibration Rain Tightness Power and Power Line Susceptibility Input Voltage Input Current (Receive 100%, Typ) Input Current (Transmitter On 100%, Typ) Power Consumption (Receive 100%, Typ) Power Consumption (Transmitter On 100%, Typ) Power Consumption (Network Operation 2.5%, Typ) Surge Mechanical Enclosure Weight Size FCC Certification General Certification EXHIBIT "A" Page 1 of 3 902 - 928 MHz Frequency Hopping Pseudo Random, Asynchronous 162 160 kHz 100 kbps +30d6m (1 Watt) Maximum +3 d8i Gaussian two -level FSK 5 V/m .000036 mW / square cm -40 to + 60 C -60 to + 80 C .5 in. Double Amplitude 1.5 g 40 g ,11 ms .Half Sine 90% RH Non Condensing @ 60 C Per ASTM B117-85, for 5 days In Shipping Container per ASTM D999-75 4'Mr rainfall @ 70 MPH Per Mil Std 810E, Method 506.1-1 120 - 230 VAC nominal 55 ma Average 105 ma Average 6.6 VA Average 12.6 VA Average 6.7 VA Average 6kV @ 500A and 6kV @ 1.2J50 us Die Cast Aluminum 5.65 Lb. 11.82"W x 9.30"D x 6.57"H FCC Part 15 EXHIBIT "All DESCRIMON OF D• W 0 EXHIBIT "A" Page 2 of 3 lbictricota I� 930 IIaivasitp. Ave. Los Crites, CA 9M30 Poletop Radio Mounting i T EXHIBIT "A" Page 3 of 3 EXHIBIT B (O T to T co O v, ■ W EXHIBIT C r UQ W U W W J Li o W , fV a, ck-- g Q� U o a m in =f@ z rte O 1 Z W Z CLa U a U N m _ m nnn � I U EXHIBIT "C" Page 1 of 1 .S P []li e- EXHIBIT D EXHIBIT D [FORM OF SURETY BOND] Bond Number: J73 / SURETY BOND KNOW ALL MEN BY THESE PRESENTS. That METMCOM, INC. as Principal, and incorporated under the laws of the State of PC�t vani�t. n o�� execute bonds and undertakings as sole sure and authorize to l`.i'ni cF �ZYnon � ty, are held and firmly bound unto as Obligee, in the sum of 0 1 oCDC). ie�lha�,d 1�i(�,•j ($ IO,o, Q�.OI� 1; for the payment thereof, well truly to be made, said Principal and Surety bind themselves, their administrators, successors and assigns, jointly and severally, firmly by these presents. The condition of the foregoing obligation is such that WHEREAS, the above bounden principal is about to enter into a certain agreement with the Obligee for the following: the award of which said agreement was made to the Principal by the Obligee, on NOW THEREFORE, if the Principal shall well, truly and faithfully perform its duties, all the undertakings, covenants, terms, conditions, and provisions of said agreement during the original term thereof, and any extensions thereof which may be granted by the Obligee, with or without notice to the Surety, and if he shall satisfy all claims and demands incurred under such agreement, and shall fully indenunifyf and save harmless the Obligee from all costs and damages which it may suffer. by reason of failure to do so, and shall reimburse and repay the Obligee all outlay and expenses which the Obligee may incur in making good any default, then this obligation shall be void; otherwise to remain in full force and effect. PROVIDED, FURTHER, that the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligation on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications. EXHIBIT "n" EXHIBIT D Page 1 of 2 EXHIBIT E EXHIBIT E INSURANCE SCHEDULE (FRANCHISEE) The Franchisee shall. provide proof of insurance, including a standard certificate of insurance, in at least the following amounts and coverage (combined single limit permitted): I. 9—overacre and Limits Bodily Iniury Property Damage Iazards Each Person Each Accident Each Accident Automobile Liability Owned Automobiles $ 500,0o0 $1,000-,000 $ 500,000 Hired Automobiles $ 500,000 $1,000,000 $ 500,000 Non -Owned Automobiles $ 500 000 $1 000 000 $ 500 000 Workersm ' Coensation $ Statutory o e s' Liability $1 000 000 per emplover II. General Liability Premises Operations Elevators 1 $1,000,000 $2,000,o00 $1,000,000 (if applicable) Independent $1,000,000 $2,000,000 $1,000,000 Contractors Products - Completed $1,000,000 $2,000,000 $1,000,000 Operations $1,000,000 $2,000,000 Contract Liability $1,000,000 Umbrella Liabilitv 1 000 000 $2,000,000 $1,000,000 1 000,000 44,1. 000 000 1 000 000 a. The general liability policy shall contain the following coverage which shall be noted on or attached to the standard certificate of insurance: 1. An endorsement employees as additional naming the City of Vernon, insureds its officers, and 2. An endorsement notice under the policy. providing the City of Vernon thirty (30) days of cancellation or material reduction of coverage. 3. An endorsement providing covers e f Agreement. g or a 1 operations under this 4. Such other endorsement as may be reasonably required by addendum hereto. b. In addition to the standard certificate of insurance, proof of general and umbrella liability coverage shall be furnished in the form checked below. Certification of the followin roofs b the insurance a ent or broker will not be accepted: X For each policy, a notarized letter from the underwriter or carrier certifying that the coverage and statements in the standard certificate of insurance (attached thereto) are true and correct and that the signature is an officer authorized to so certify. A copy of each policy certified by an officer of the underwriter or carrier and notarized. E - 1 EXHIBIT E EXHIBIT F EXHIBIT F ACCEPTANCE OF FRANCHISE [company letterhead] [date] TO: Honorable Mayor and Council Members of the City of Vernon Re: Acceptance of Franchise Granted by Ordinance No. Dear Sirs: Metricom, Inc., a corporation organized and existing under the laws of the State of Delaware, accepts the grant by the City of Vernon of a franchise entitling Metricom to attach, install, maintain and operate equipment for a wireless digital communications network at various locations in the public streets, alleys and rights -of -way in the City of Vernon, as specified in Ordinance No. Metricom, Inc. agrees to and accepts all the terms and conditions of the franchise, and waives any objections to the reasonableness or legality of any of the franchise provisions or the legal right or authority of the City of Vernon to impose them. ATTEST: By: Title: METRICOM, INC., a Delaware Corporation By: Title: F - 1 EXHIBIT F t ; PROVIDED, HOWEVEI., this bond is issued subject to the following express conditions: 1. This bond shall be deemed continuous in form and shall remain in full force and effect until canceled under Section after which all liability ceases except as to any liability incurred or accrued prior to the date of such cancellation. 2. The aggregate liability of the Surety hereunder on all claims whatsoever shall not exceed the penal sum of this bond in any event. 3. The surety reserves the right to withdraw as surety from this bond, except as to any liability incurred or accrued, and may do so upon giving the Obligee sixty (60) days written notice. SIGNED AND SEALED this day of 19 PRINCIPAL Title: SURETY (Type Company Name) By: Title: Address: Telephone: (Affix Corporate Seals) (Attach Acknowledgments of both Principal and Surety signatures) EXHIBIT "D" Page 2 of 2 SUPPORTING DOCUMENTS OFFICE OF THE CITY ADMINISTRATOR/CITY CLERK INTER -OFFICE MEMORANDUM DATE: December 11, 2000 TO: Kevin Wilson, Director of Community Services & Water Carol Dacey, Customer Services & Information System Manager FROM: Gloria J.P__Vgto, Chief Deputy City Clerk RE: Metricom, Inc. Transmitted,herewith is a copy of the Acceptance of Franchise from Metricom, Inc. which was required by Ordinance No. 1065. Also attached is a copy of their list of poles they have attached equipment to which they have provided to us. The originals are being retained in this office for our files. Thank you. GJO/mt Acceptance of Franchise To: Honorable Mayor and Council Members of the City of Vernon Re: Acceptance of Franchise Granted by Ordinance No. 1065 Dear Sirs: Metricom, Inc., a corporation organized and existing under the laws of the state of Delaware, accepts the grant by the City of Vernon of a franchise entitling Metricom, Inc. to attach, install, maintain and operate equipment for a wireless digital communications network at various locations in the public streets, alleys and rights -of -way in the City of Vernon, as specified in Ordinance 1065. Metricom, Inc. agrees to and accepts all of the terms and conditions of the franchise, and waives any objections to the reasonableness or legality of any of the franchise provisions or the legal right or authority of the City of Vernon to impose them. METRICOM, INC., a Delaware Corporation -1) rZ By: ick Au Vice President, Corporation Operations DEC-11-2000 MON 03:40 PM METRICOM FAX NO. 5629887790 P. 02 N tOW C!1 �71 til WWw tj1 CT� Q1 D1 W to W � W C11 W Lh wNNNNNNJ-+— Cn Cn C?l to tJl t±� Ch Cn •-{ A rn rn rn rn rn rn rn rn rn O ao m ao O ao 0p 2w tO tD O NcoODwwwwOOODCO-4-4 O 00 �I to GTI ? W N �_ O p OOAW 0P, P, N W + CO AO W cD W -4 O O OmO aD aCA) �ay4<�y�,mrn OD m to N < CD Am<Cm W N th wrn<o# o W m 0< W C C m n W W Al W W W W w W W W A i� W? A W co W W W w �.A. W : tO0(DwioO tOO�OtO�DOO�pO OfDOA QOtDOOC7 6io;=6iobiOto;b W cOfDtD O trappopcjrChm C3Ul W tD07ONOODt�00-�,,pp..ONt��ry`NN ONtOONaDA-� T 5, w m w AA,p, tit W Aco N cn_-►(A-4 T oDW AN�I�_d_rna_DOD V ANAti]�1W W CT1CmA_co r J r J 1 �► . � r r► .i J J r J J 1. -a J -.1 J 1 J 1 -IL �1 l i 0 5/ Z NNNmIV NIV NIV K7NNIV IV IVY N0t7 -4 O m O O -► 0aac), W Ci W P W w O W -•CNN W A W V — W -� O -^ W N =" W 0 O 0 w N Ot,tt�� O w C W m W as c0 N?-%Wwmww-& NCl0ChMN-4 -4 D000oN W 2It� COD OD�t7�t1�N t 2 C C«G<C<CC«CCCCC<G co mcD to ro rn ca m ro to cD m m CDm ro ro ro cn to m 0 0 0 0 0 0 o 0 a D 0 0 0 0 0 0 0 0 0 0 ZAy..p...ppApmW n to co �`J OWO W N C• �0�+OOc1NCOO�,�+� WOpo W"m W NNNN.Arn(J�tnNNZ► P A CD "cm(A N A-+..� Ch0�0 NCnW O-4C1 TwWXM-►,(�1 z=mmmmmm0KM>!nmm OzDCn aC)�fnCN W -P, W --Ji> CD fn0AcnCO ZO. m0�I--4 zSZT==--I 0-0• > m !1w m am 2-wiwiw-r--iw-fm y <-CniCn CC C �n mmOc <�mC mO�m�4 w�-�wi opyK�cAnnin-m.m• C Z 0b � =O 0Zz G)OCZZZO[zr-�mco AO�mm iD0nCgg� CmmzmW y O mc'>m•ol �om 0 �Z0 m00mCD«nT � < D D C my m r �z�ln�z mom000 ZZcncn�nzcn� 0000000m [[nnmm[!�(ntn pPOO 0 m 0 T 000000000000000000000 0000000000o0000z0000m G Q t7 CJ t7 G p p 0 0 0 :7 0 C7 t7 � p p 0 0 -ov-a•v-o-�-v'r�ro-v�ov-�mm-�ro�ro� 000000000000000-+0000m r- mmmmmmmmmmmmmmmmmmmm I-•rrrrrrr- rrrrrrm rr- r- rm O r m m z m a A_AA?AAA A A� AAA AAA�.!Z3 AFn pp 1 '1. ti � �. � ` � 1OOp000Co C m z O z CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro-Tem WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator / City Clerk FAX (323) 581-7924 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 June 6, 2000 Ms. Heidi Sargent Metricom, Inc. 1460 E. 33rd Street Signal Hill, CA 90807 Re: Ordinance No. 1065 Dear Ms. Sargent: EDUARDO OLIVO City Attorney FAX: (562) 927-8722 KEVIN WILSON Director of Community Services & Water FAX: (323) 588-2761 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583-1983 DAVE TELFORD Fire Chief FAX: (323) 581-1385 BRUCE W. OLSON Police Chief FAX: (323) 583-5236 This letter is a follow up and a reminder that this office is still waiting to receive the following items: • Surety Bond in the amount of $10,000 as outlined in Section 8.3 of said ordinance • Written acceptance of Franchise as outlined in Section 13.10 of said ordinance (was due no later than 30 days from the effective date, August 29, 1999, of this ordinance as specified in Exhibit "F"). Your prompt assistance to this matter would be greatly appreciated. Very,my yours, Glor' J. Oros Chief Deputy it Clerk GJO:rcm cc: Richard A. Bartoccini Kevin Wilson Joan Francone Legal Dept. 6 40 OV. ricochet' Metricom 980 University Ave. Los Gatos, CA 95030 May 31, 2000 RE: Surety Bond # 2.3?1 3 Dear Sirs, Enclosed please find the fully executed bond for franchise agreement between Metricom and the c, %-" Q � V e-y- nu-0 . Please let me know if I can be of any further assistance. Sincerely, Lisa Richardson Contracts Assistant - Right of Way 408-388-8227 Metricom, Inc., 980 University Avenue, Los Gatos, CA 95032, Phone.408.399.8200, Fax.408.354.1024 [EXHIBIT D] [FORM OF SURETY BOND] Bond Number:237731 SURETY BOND KNOW ALL MEN BY THESE PRESENTS: That METRICOM, INC. as Principal, and The Insurance Company of the State of Pennsylvania, incorporated under the laws of the State of Pennsylvania, and authorized to execute bonds and undertakings as sole surety, are held and firmly bound unto CITY OF VERNON, as Obligee, in the sum of TEN THOUSAND AND NO/100 ($10,000.00) DOLLARS; for the payment thereof, well truly to be made, said Principal and Surety bind themselves, their administrators, successors and assigns, jointly and severally, firmly by these presents. The condition of the foregoing obligation is such that: WHEREAS, the above bounden Principal is about to enter into a certain agreement with the Obligee for the following: To secure the faithful performance by Metricom of all of the work, construction, installation and removals required to be performed by Metricom under Ordinance No. 1065 within the time periods set forth hereunder, the award of which said agreement was made to the Principal by the Obligee, on NOW THEREFORE, if the Principal shall well, truly and faithfully perform its duties, all the undertakings, covenants, terms, conditions, and provisions of said agreement during the original term thereof, and any extensions thereof which may be granted by the Obligee, with or without notice to the Surety, and if he shall satisfy all claims and demands incurred under such agreement, and shall fully indemnify and save harmless the Obligee from all costs and damages which it may suffer by reason of failure to do so, and shall reimburse and repay the Obligee all outlay and expenses which the Obligee may incur in making good any default, then this obligation shall be void; otherwise to remain in full force and effect. PROVIDED, FURTHER, that the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligation on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement to the work or to the specifications. PROVIDED, HOWEVER, this bond is issued subject to the following express conditions: 1. This bond shall be deemed continuous in form and shall remain in full force and effect until canceled under Section 11, after which all liability ceases except as to any liability incurred or accrued prior to the date of such cancellation. 2. The aggregate liability of the Surety hereunder on all claims whatsoever shall not exceed the penal sum of this bond in any event. 3. The Surety reserves the right to withdraw as surety from this bond, except as to any liability incurred or accrued, and may do so upon giving the Obligee THIRTY (30) days written notice. SIGNED AND SEALED this I" day of JUNE, 2000. PRINCIPAL METRICOM, INC. SURETY Address: Two Rincon Center 121 Spear Street San Francisco, CA 94105 (415) 836-2979 (Affix Corporate Seals) (Attach Acknowledgements of both Principal and Surety Signatures) Metricom Bond Form H/surety/metricom/bondform CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California } } County of Santa Clara } On June 4, 2000, before me, Anthony E. Rodriguez, Notary Public, personally appeared Dick Au , personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. �s WITNESS my hand and official seal Place Notary Seal Above / Signature of Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment to another document Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity (ies) Claimed by Signei Signer's Name: ❑ Individual ❑ Corporate Officer ❑ Partner - ❑ Limited ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: ❑ General Number of Pages: California All Purpose Acknowledgment State of California County of San Mateo On June 1, 2000 Date before me, Erin Bautista, Notary Public Name & Title of Officer/Notary personally appeared Jeff Prevost Names(s) of Signers(s) personally known to me, evielet to be the person(s) whose names) is/aye subscribed to the within instrument and acknowledged to me that he/sheAhey executed the same in hisiheFAhei; authorized capacity(ies , and that by hisi"�ir signatures) on the instrument the persons , or the entity upon behalf of which the personal acted, executed the instrument. WITNESS my hand and official seal. Notary Public ERIN BAI STA Commission # 1181074 = ..� Notary Public - Califomia > Z San Mateo CZ2'5,2j002 y My Comm. Expires OPTIONAL (The information below is not required by law) Description of Attached Document Title/type of Document Date of Document Other Signer(s) h:\docs\surety\forms\notary.doc No. of Pages The Insurance Company of the State of Pennsylvania POWER OF ATTORNEY Principal Bond Office: 70 Pine Street, New York, N.Y. 10270 No.05-B-53217 KNOW ALL I\ EN BY THESE PRESENTS: That The Insurance Company of the State of Pennsylvania, a Pennsylvania corporation, does hereby appoint ---Mark Roppo, Katherine G. Zerounian, Erin Bautista,.leff Prevost, James B. Shea, Jason Jenkins: of Belmont, California --- its true and lawful Attorney(s)-in-Fact, with full authority to execute on its behalf bonds, undertakings, recognizanees and other contracts of indemnity and writings obligatory in the nature thereof, issued in the course of its business, and to bind the company thereby. IN WITNESS 'WHEREOF, The Insurance Company of the State of Pennsylvania has executed these presents this 25th day of April, 2000. j �IawreneCarlstrom, Vice President STATE OF NEW YORK I COUNTY OF NENW YORKIss. ],. A On this 25th day of April, 2000 before me came the above I�L�' h named officer of The Insurance Company of the State of Pennsylvania, to me personally known to be the individual and 6MMMIAAr4TA officer described herein, and acknowledged that he executed the Notary PW)k of Plate foregoing instrument and affixed the seal of said corporation No. 02TA60366&3 thereto by authority of his office. Con 4uW fod In Bronx County �+ Expires Feb. 14, 2OC2 CERTIFICATE Excerpts of Resolution adopted by the Board of Directors of The Insurance Company of the State of Pennsylvania, on May IS, 1976: "RESOLVED, that the Chairman of the Board, the President, or any Vice President be, and hereby is, authorized to appoint Attorneys -in -Fact to represent and act for and on behalf of the Company to execute bonds, undertakings, recognizanees and other contracts of indemnity and writings obligatory in the nature thereof, and to attach thereto the corporate seal of the Company, in the transaction of its surety business; "RESOLVED, that the signatures and attestations of such officers and the seal of the Company may be affixed to any such Power of Attorney or to any certificate relating thereto by facsimile, and any such Power of Attorney or certificate bearing such facsimile signatures or facsimile seat shall be valid and binding upon the Company when so affixed with respect to any bond, undertaking, recognizance or other contract of indemnity or writing obligatory in the nature thereof; "RESOLVED, that any such Attorney -in -Fact delivering a secretarial certification that the foregoing resolutions still be in effect may insert in such certification the date thereof, said date to be not later than the date of delivery thereof by such Attorney -in -Fact." I, Elizabeth M. Tuck, Secretary of The Insurance Company of the State of Pennsylvania, do hereby certify that the foregoing excerpts of Resolution adopted by the Board of Directors of this corporation, and the Powcr of Attorney issued pursuant thereto, are true and correct, and that both the Resolution and the Power of Attorney are in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of the corporation this 'St day of June 2000 j Elizabeth M. Tuck, Secretary 2323S (4/99) 7 March 21, 2000 TO: Gloria Orosco, Chief Deputy City Clerk FROM: '6-J Bill Wilson, Community Services SUBJECT: ORDINANCE No. 1065 I have had several phone conversations with Richard Bartoccini of Metricom, in which I have been unsuccessful in getting Metricom to supply the City with a surety bond so that we may release Ordinance 1065. SKW:ps C:\My Documents\MEM0S\BMW2g1oria.doc AFFIDAVIT OF POSTING STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF VERNON ) I, Gloria, J. Orosco, Chief Deputy City Clerk of the City of Vernon, do hereby certify that on the 1st day of July, 1999, I did have posted three (3) copies of: ORDINANCE NO. 1065 - An Ordinance of the City Council of the City of Vernon Granting a Non - Exclusive Franchise to Metricom, Inc., to Attach, Install, Maintain and Operate Equipment for a Wireless Digital Communications Radio Network at Various Locations in the Public Streets, Alleys, and Rights -of -Way in the City of Vernon. One in each of the following places, to wit: at the northwest corner of 381h Street and Santa Fe Avenue; the northeast corner of Leonis Blvd., and Pacific Blvd.; and on the bulletin board in the Lobby of the City Hall of the City of Vernon, located at 4305 Santa Fe Avenue, all in said City, there being no newspaper of general circulation printed and published in the City of Vernon. Subscribed and sworn to before oria J. 0 sco me this of �.��y 1999 Chief Deput City Clerk Date: Notary Public iA and for the County of Los Angeles, State of California SHARON L JOHNSON Commission # 1225459 Notary Public - Califomia Z Los Angeles County ray Comm. BOres Jun 21, 2003 ,M Woodruff -Sawyer & Co. ••• an Assurex Partner May 7, 1999 Ms. Joan Francone City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Re: Lease Agreement with Metricom, Inc. Certified Copy of Workers Compensation Policy St. Paul Fire & Marine Insurance Company #WVA9401217 Dear Ms. Francone: In accordance with Exhibit E of the Lease Agreement with Metricom, Inc., enclosed please find a certified copy of the worker compensation policy as issued to the named insured for the term September 30, 1998 to September 30, 1999. Should you have any questions as respects the enclosed, please do not hesitate to call. Regards, j Sharon Davis encl. cc: N. Luker, Metricom, Inc. Insurance Brokers Risk Management Employee Benefits Consultants 220 Bush St., 7th Floor, San Francisco, CA 94104-3509 License No, 0329598 Telephone 415.391,2141 Fax 415.989.9923 CHUBB GROUP OF INSURANCE COMPANIES UZ May 11, 1999 City Clerk City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Re: InNurarlce for Metricom, Inc. (City of Vernon as Additional Insured) Policy Number(s): 3529-19-48 7316-45-41 7907-23-75 Policy Term: September 30, 1998 - September 30; 1999 Named Insured: Metricom. Inc. City Clerk: 1 hereby certify that the certificate of insurance attached hereto and made a part hereof by reference truly and accurately represents the above cited insurance policies and the insurance coverage of each for the named insured issued by Federal Insurance Compga. The City of Vernon, its officers, and employees are included in said policies as additional insureds as respects Metricom's liability arising out of the work or lease of property owned by the city. The City of Vernon will be provided with thirty (30) days written notice of cancellation or material reduction of coverage. I certify that I am an officer of the insruance carrier named herein and that I am authorized to sign this certificate on behalf of said insurance carrier. Sybil Baffoe ' Assistant Vice President CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of CALIFORNIA County of SAN FRANCISCO On May 11, 1999 before me, LORNA E. DECLINES NOTARY PUBLIC Date Name and Title of Officer (e.g., "Jane Doe, Notary Public") personally appeared Sybil Baffoe Name(s) of Signer(s) Upersonally known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person whose name(s) isA=subscribed to the within instrument and acknowledged to me that hehdtslti=Aexecuted the same in his/booftsa authorized capacity(is* and that by _ his/' : 1u 1 r signature*# on the instrument the person($), LORNA E. DECLINES or the entity upon behalf of which the person(s) acted, o COMM. #1212148 executed the instrument. L ' f>s NOTARY PUBLIC-CALIFORNIA SAN FRANCISCO COUNTY WITNESS my hand and official seal. Alp Comm. Expires Mar. 29. 2003 Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Certificate of Insurance Document Date: May 11, 1999 Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: In Individual Corporate Officer Title(s): Assistant Vice -President ❑ Partner — ❑ Limited ❑ General ❑ Attorney -in -Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Top of thumb here Signer Is Representing: Signer's Name: 70 Number of Pages: 1 Individual Corporate Officer Title(s): Partner — ❑ Limited ❑ General Attorney -in -Fact Trustee Guardian or Conservator Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGN. R .. of here ® 1994 National Notary Association • 8236 Remmet Ave., P.O. Box 7184 • Canoga Park, CA 91309-7184 Prod. No. 5907 Reorder. Call Toll -Free 1-800.876-6827 MEMORANDUM TO: Bill Wilson, Engineering Aide FROM: Joan Francone, Risk Manager Ir DATE: June 1, 1999 SUBJECT: ORDINANCE NO.1065 - METRICOM, INC. This is to advise you that the above referenced contractor has provided acceptable insurance coverage. Please contact me if you have any questions. JF/ca Enclosures ` ACORDCERTIFICATE OF INSURANCE DATE 'LIABILITY OS26/M 99 /26/ 9 PRODUCER WSSF THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Woodruff -Sawyer & Co. HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 220 Bush Street, 7th Floor ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. San Francisco,CA 94104-0000 COMPANIES AFFORDING COVERAGE 415-391-2141 COMPANY A Chubb/Vigilant Insurance Co. INSURED 007815 COMPANY Metricom, Inc. B Chubb/Federal Insurance Co. COMPANY 980 University Avenue Los Gatos , CA 95032-2375 C St. Paul Fire & Marine Insurance Co. COMPANY D REVISED CERTIFICATE OF INSURANCE COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO LT TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MM/DD/YY) POLICY EXPIRATION DATE (MM/DD/YY) LIMITS GENERAL LIABILITY GENERAL AGGREGATE $ 1,000,000 COMMERCIAL GENERAL LIABILITY T PRODUCTS - COMP/OP AGG $ 1,000,000 A CLAIMS MADE F� OCCUR 35291948 09/30/98 09/30/99 PERSONAL & ADV INJURY $ 1,000,000 EACH OCCURRENCE $ 1,000,000 OWNER'S & CONTRACTOR'S PROT 77 FIRE DAMAGE (Any one fire) $ 1,000,000 Ll MED EXP (Any one person) $ 10,000 AUTOMOBILE LIABILITY ANY AUTO COMBINED SINGLE LIMIT $ 1,000,000 ❑ ALL OWNED AUTOS g JLJ SCHEDULED AUTOS 73164541 09/30/98 09/30/99 BODILY INJURY (Per person) $ ❑✓ HIRED AUTOS BODILY INJURY $ ❑✓ NON -OWNED AUTOS (Per accident) PROPERTY DAMAGE $ GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ OTHER THAN AUTO ONLY: ANY AUTO ❑ EACH ACCIDENT $ ❑ AGGREGATE $ EXCESS LIABILITY EACH OCCURRENCE $ 2,000,000 B `�, UMBRELLA FORM 79072375 09/30/98 09/30/99 AGGREGATE $ 2,000,000 $ OTHER THAN UMBRELLA FORM WORKERS COMPENSATION AND ,/ WC STATU- OTH TORY LIMITS ER EMPLOYERS' LIABILITY EL EACH ACCIDENT $ 1,000,000 C THE PROPRIETOR/ INCL W VA9401217 09/30/98 09/30/99 EL DISEASE - POLICY LIMIT $ 11000,000 PARTNERS/EXECUTIVE EL DISEASE - EA EMPLOYEE $ 1,000,000 OFFICERS ARE: EXCL OTHER jt) �+ DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/SPECIAL ITEMS The City of Vernon, its officers, agents & employees are additional insureds as respects the lease agrmt. & Right of Way Agrmt. per Ordinance 41065 and work performed by Metricom, Inc.per Form 40020004 .This ins. is primary & non-contributory. CERTIFICATE HOLDER CANCELLATION 10 Day Notice For Non -Payment of Premium SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE City of Vernon EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL IXXXXXXNMAIL Attn: City Administrator/City Clerk 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, 4305 Santa Fe Avenue XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX) Vernon , CA 90058-0805 XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX3 AUTHORIZEDREPRESENTATIVE ACORD 25-S (1/96) 0 ACORD CORPORATION 1988 ' cm -BB & SON #40-02-0004 Commercial Insurance Coverage Amendment effect+:ve 09/30/98 WHO IS INSURED: THE WHO IS .INSURED PROVISION IS AMENDED TO INCLUDE AS AN ADDITIONAL INSURED THE PERSON OR ORGANIZATION DESIGNATED BELOW, INCLUDING E ECTEn OR APPOINTED MEMBERS, OFFICERS AND EMPLOYEES, BUT ONLY -WITH RESPECT TO THE COMMERCIAL GENERAL LIABILITY PROVIDED BY THIS POLICY AND ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED IN CONNECTION WITH THE ACRE=11ENT FOR WORK PERFORMED BETWEEN THE NAMED INSURED AND THE PERSON OR ORGANIZATION DESIGNATED BELOW. IT IS FURTHER ACRE=D. THIS INSURANCE IS PRIMARY OVER ANY OTHER COLLECTI_L= INSURANCE ONLY AS RESPECTS THE OPERATION OF THE NAMED INSURED. ANY MUNICIPALITY RE:;UIRED TO BE NAMED BY ANY CONTRACT OR AGREEMENT, PROVIDED SUCH CONTRACT OR AGREEMENT I5 EXECUTED PRIOR TO ANY LOSS, AND ONLY AS RESPECTS CPERAT:rNS OF OR ON BEHALF OF THE NAMED INSURED. j tze_ terms and conditions rey.ain u-cha.n.g' Au-"w v' am d F:.su.Ted: METR I COM , INC. j ry Nr rrber: 3!!29 19 4e F-od::cer: WOODRUFF -SAWYER Co. SAN FSRANCIcCO CA — /E=C K] OFFICE OF THE CITY ADMINISTRATOR/ CITY CLERK INTER -OFFICE MEMORANDUM DATE: September 1, 1999 TO: Kevin Wilson, Dire or of Community Services FROM: Gloria J. Orosco, Deputy City Clerk RE: Ordinance No. 1065 - Performance Bond JUST A REMINDER! With reference to Ordinance No. 1065, which was approved by City Council on June 29, 1999, this office is still holding a fully executed duplicate original that was to be sent to Metricom upon receipt of their Surety Bond in the amount of $10,000 as indicated in Section 8.3 of said ordinance which also reads that "Prior to commencement of any work under this Franchise, Metricom shall furnish or cause to be furnished to City..." Would you please follow up with Metricom as to the status of the Surety Bond. Thank you. Gloria OFFICE OF THE CITY ADMINISTRATOR/ CITY CLERK INTER -OFFICE MEMORANDUM DATE: July 12, 1999 TO: Kevin Wilson, Director of Community Services & Water FROM: Gloria J. Oro „ Chief Deputy City Clerk RE: Ordinance No. 1065 - Performance Bond The above referenced Ordinance was read for a second and final reading on June 29, 1999 and is now fully executed. However, as outlined in Section 8.3 of said ordinance, I am still waiting to receive the Surety Bond from Metricom, prior to my sending them their fully executed original of said Ordinance. MEMORANDUM - TO: Kevin Wilson, Director of Community Services & Water FROM: Joan Francone, Risk Manager/Personnel Assistant DATE: June 21, 2000 SUBJECT: METRICOM LICENSE AGREEMENT The Surety Bond provided by Metricom as required in Ordinance No. 1065 is acceptable to the City. JF/ca c: Gloria Orosco (6 , Writer's Local Address: 214 Rennie Avenue Venice, CA 90291 Office: 310-450-8975 Fax: 310-450-8976 Cell: 310-989-5235 E-mail: bart@Metricom.com FT� 1GIGO E,-ist 33r(1 Stroet W j) Metricom Signal Hill, CA 90807 June 17,1999 R, 7__``r'"�✓1Fryb Mr. Kevin Wilson, PE 'JUN 2 1 1999 Director of Community Services City of Vernon GCi71{7iutiirc�;;. Vernon, CA 90058 RE: Finalizing the Approved Agreement and Closing the File Dear Kevin: Thank you for your assistance in having our agreement approved by Council. Once the Ordinance is attested to please send an executed original to: Ms. Heidi Sargent Metricom, Inc. 1460 E. 33rd Street Signal Hill, CA 90807 _ 562-988-0039 Once the City has itemized it's expenses associated with the processing of this application in accordance with Section 6.5 of the Ordinance, please remit the invoice to Heidi Sargent. Finally, there are several items required by Metricom in order for me to close out the file and transfer it to the Property Management/Deployment Team: 1. Maps (paper copies or electronic copies) showing the locations of city owned streetlights. If the City does not have the time or ability to copy paper maps, please call a bonded duplication service to come, pick up, copy and ship to Metricom the required maps. The maps should be sent to me at my local address. The company we use and have an account with is Continental Graphics, 800-826-8630. Our Account Number is: 050281. 2. A blank copy of an encroachment permit and fee schedule and business license application.. Pleaes send directly to me at my local address. 3. A copy of the Agenda and staff report. Kevin, thanks again for your help. With the above information in the file, the installation of the radios should go very smoothly. Sincerely, �2 Richard A. Bartoccini Right -of -Way Representative Visit our websites: www.ricochet.net or www.metricom.com �e�e�hone: F4X: h 01) 3O !)6'')") i i Vr t TheMaul Insurer: ST. PAUL FIRE AND MARINE INS CO 385 WASHINGTON ST ST. PAUL MN 55102 NCCI COMPANY NO. 13706 NJERN INFORMATION PAGE WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY POLICY NUMBER from POLICY PERIOD to .PREV.COVERAGE AGENCY A/C MO f-WVA9401217 09/30/98 09/30/99 WVA9400567 0461042 09/98 NAMED INSURED AND ADDRESS AGENT ITEM 1. METRICOM INC WOODRUFF-SAWYER/WC 980 UNIVERSITY AVENUE 220 BUSH ST RM 750 LOS GATOS CA 95030 SAN FRANCISCO CA 94104 FEIN 770294597 Risk I.D. No. 2590375F INSURED IS CORPORATION OTHER WORKPLACES NOT SHOWN ABOVE: SEE EXTENSION OF INFORMATION PAGE ITEM 2. POLICY PERIOD: FROM 09/30/98 TO 09/30/99 1 2:01 AM STANDARD TIME AT THE INSURED'S MAILING ADDRESS. ITEM 3. A. WORKERS COMPENSATION INSURANCE: PART ONE OF THE POLICY APPLIES TO THE WORKERS COMPENSATION LAW OF THE STATES LISTED HERE: AZ,CA,CO,DC,GA,IL,MA,NY,PA,TX,VA B. EMPLOYERS LIABILITY INSURANCE: PART TWO OF THE POLICY APPLIES TO WORK IN EACH STATE LISTED IN ITEM 3.A. THE LIMITS OF OUR LIABILITY UNDER PART TWO ARE: BODILY INJURY BY ACCIDENT $1 , 000 , 000 EACH ACCIDENT BODILY INJURY BY DISEASE $1 , 000 , 000 POLICY LIMIT BODILY INJURY BY DISEASE $1 , 000, 000 EACH EMPLOYEE C. OTHER STATES INSURANCE: PART THREE OF THE POLICY APPLIES TO THE STATES LISTED HERE: ALL STATES EXCEPT THOSE DESIGNATED IN ITEM 3.A ABOVE, AND NV,ND,OH,WA,WV,WY. D. THIS POLICY INCLUDES THESE ENDORSEMENTS AND SCHEDULES: SEE EXTENSION OF INFORMATION PAGE FORMING PART OF THIS POLICY. ITEM 4. THE PREMIUM FOR THIS POLICY WILL BE DETERMINED BY OUR MANUALS OF RULES, CLASSIFICATIONS, RATES, AND RATING PLANS. ALL INFORMATION REQUIRED BELOW IS SUBJECT TO VERIFICATION AND CHANGE BY AUDIT. CLASSIFICATION OF OPERATIONS PRM-BASIS RATE EST ST LOC CODE TYP TOT -EST PER $100 ANNUAL NO RSK ANN-REMUN REMUN PREMIUM SEE EXTENSION OF INFORMATION PAGE MINIMUM PREMIUM $752 TOTAL ESTIMATED COST DEPOSIT PREMIUM ADJUSTMENTS DUE TO AUDIT WILL BE MADE UPON POLICY EXPIRATION COUNTERSIGNED THIS DAY OF OFFICE: NORTHERN CALIFORNIA #2 EMBARCADERO CENTER SUITE 1300 SAN FRANCISCO CA 94111 415-732-1540 WC 00 00 01 A M AUTHORIZED REPRESENTATIVE This is a true and cer ified copy of the original policy is the term indicated above. Signed By & Date ISSUE DATE 10/06/98 3139 Rev. 1-89 Printed in U.S.A. Copyright 1987 National Council on Compensation Insurance. TheStPhill Insurer: ST. PAUL FIRE AND MARINE INS CO 385 WASHINGTON ST ST. PAUL MN 55102 NCCI COMPANY NO. 13706 NJERN WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY AMENDED EXTENSION OF INFORMATION PAGE EFF. 09/30/98 SUPERSEDES ANY PREV. DECLARATIONS W/ SAME # FOR THIS POL. PERIOD POLICY NUMBER from POLICY PERIOD to PREV.COVERAGE AGENCY A/C MO WVA9401217 09/30/98 09/30/99 WVA9400567 0461042 09/98 NAMED INSURED AND ADDRESS AGENT ITEM 1. METRICOM INC WOODRUFF-SAWYER/WC 980 UNIVERSITY AVENUE 220 BUSH ST RM 750 LOS GATOS CA 95030 SAN FRANCISCO CA 94104 FEIN 770294597 Risk I.D. No. 2590375F **ENDORSEMENT SCHEDULE** SCHEDULE PAGE 1 STATE NUMBER DESCRIPTION EFFECTIVE DATE 40506 Countersignature Endorsement WC990607 Policy Change Endorsement WC990607 Miscellaneous Endorsement 990609 General Change Endorsement WC000106A Longshore And Harbor Workers Compensation Act Coverage WC000311A Voluntary Compensation And Employers Liability Coverage WC000406 Premium Discount Endorsement WC000406A Premium Discount Endorsement WC000414 Notification Of Change In Ownership Endorsement WCO20601 Arizona Cancellation Endorsement WC040101A Longshore And Harbor Workers Compensation Act Coverage WC040301 Policy Amendatory Endorsement - California WC040305 California Voluntary Compensation And Employers Liability WC040310 Duty To Defend - California WC040360 California Employers' Liability Coverage Amendatory Endt WC040601A California Cancelation Endorsement WC050402 Colorado Classification Endorsement WC050403 Colorado Premium Credit For Certified Risk Management WC080601 District Of Columbia Cancelation Endorsement WC100601A Georgia Cancelation, Nonrenewal And Change Endorsement WC120601B Illinois Amendatory Endorsement WC200301 Massachusetts Limits Of Liability Endorsement WC200302 Massachusetts - Assessment Charge * THESE FORMS APPLY TO THE STATE OF CALIFORNIA WC 00 00 01 A ISSUE DATE 10/15/98 3139 Rev 1-89 Printed in U.S.A. Copyright 1987 National Council on Compensation Insurance. 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 09/30/98 ihestphill Named Insured: METRICOM INC Policy Number: WVA9401217 AMENDED EXTENSION OF INFORMATION PAGE **ENDORSEMENT SCHEDULE (Cont.)** SCHEDULE PAGE 2 STATE NUMBER DESCRIPTION EFFECTIVE DATE WC200303A Massachusetts Notice To Policyholder Endorsement 09/30/98 WC200401 Massachusetts Pending Premium Change Endorsement 09/30/98 WC200601 Massachusetts Cancelation Endorsement 09/30/98 WC310308 New York Limit Of Liability Endorsement 09/30/98 WC310319 New York Construction Classification Premium Adjustment 09/30/98 WC370405 Pennsylvania Merit Rating Plan Endorsement 09/30/98 WC370601 Special Pennsylvania Endorsement - Inspection Of Manuals 09/30/98 WC370602 Pennsylvania Notice 09/30/98 WC370603A Pennsylvania Act 86-1986 Endorsement Nonrenewal, Notice 0 09/30/98 WC420301E Texas Amendatory Endorsement 09/30/98 WC420306A Texas Maintenance Tax Surcharge Recoupment Endorsement 09/30/98 WC450602 Virginia Amendatory Endorsement 09/30/98 WC990301 Colorado Operations Endorsement 09/30/98 WC 00 00 01 A ISSUE DATE 10/15/98 3139 Rev 1-89 Printed in U.S.A. Copyright 1987 National Council on Compensation Insurance. 7heStPaUl WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY 99 06 09 GENERAL CHANGE ENDORSEMENT This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The following "attaching clause;' need be completed only when this endorsement is issued subsequent to preparation of the policy.) This endorsement, effective on 09/30/98 at 12:01 A.M. standard time, forms a part of (Date) Policy No. WVA9401217 Endorsement No. of the ST. PAUL FIRE AND MARINE INSURANCE COMPANY NCCI Carrier Code 13706 (Name of Insurance Company) issued to: METRICOM INC Policy Expiration Date: 09/30/99 Premium (if any) $ Authorized Representative This endorsement applies only in Texas. MULTIPLE COMPANY INFORMATION: THE INSURER SHOWN ON THE INFORMATION PAGE IS CHANGED TO ST. PAUL GUARDIAN INS CO 385 WASHINGTON ST ST. PAUL MN 55102 NCCI COMPANY NUMBER 14230, FOR THE STATE(S) OF CA THE INSURER SHOWN ON THE INFORMATION PAGE IS CHANGED TO ST. PAUL FIRE AND CASUALTY INS 20800 SWENSON DR, SUITE 300 WAUKESHA WI 53186 NCCI COMPANY NUMBER 21342, FOR THE STATE(S) OF GA THE INSURER SHOWN ON THE INFORMATION PAGE IS CHANGED TO ST. PAUL INS CO OF ILLINOIS 500 W. MADISON ST., SUITE 2600 CHICAGO IL 606062501 NCCI COMPANY NUMBER 13463, FOR THE STATE(S) OF IL ISSUE DATE 10/06/98 Ed. 11-93 Printed in U.S.A. 7heStPaUl Named Insured: METRICOM INC Effective Date: 09/30/98 Policy Number: WVA9401217 Page 2 WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY 99 06 09 GENERAL CHANGE ENDORSEMENT (Cont.) MULTIPLE COMPANY INFORMATION CONTINUED: THE INSURER SHOWN ON THE INFORMATION PAGE IS CHANGED TO ST. PAUL INDEMNITY INS CO 9001 WESLEYAN ROAD, SUITE 400 INDIANAPOLIS IN 462581176 NCCI COMPANY NUMBER 21350, FOR THE STATE(S) OF PA THE INSURER SHOWN ON THE INFORMATION PAGE IS CHANGED TO ST. PAUL INS CO 2925 BRIARPARK, SUITE #300 HOUSTON TX 772422486 NCCI COMPANY NUMBER 12823, FOR THE STATE(S) OF TX THE ENTIRE NAMED INSURED FROM ITEM 1 OF YOUR WORKERS COMPENSATION POLICY INCLUDES THE FOLLOWING: INSURED NAME DBA METRICOM INC METRICOM INC, METRICOM INVESTMENTS DC INC,METRICOM DC, LLC, & METRICOM NY, LLC Ed. 11-93 Printed in U.S.A. 7wStFhul Insurer:. ST. PAUL FIRE AND MARINE INS CO 385 WASHINGTON ST ST. PAUL MN 55102 NCCI COMPANY NO. 13706 NJERN WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY EXTENSION OF INFORMATION PAGE POLICY NUMBER from POLICY PERIOD to PREV.COVERAGE AGENCY A/C MO WVA9401217 09/30/98 09/30/99 WVA9400567 0461042 09/98 NAMED INSURED AND ADDRESS AGENT ITEM 1. METRICOM INC WOODRUFF-SAWYER/WC 980 UNIVERSITY AVENUE 220 BUSH ST RM 750 LOS GATOS CA 95030 SAN FRANCISCO CA 94104 FEIN 770294597 Risk I.D. No. 2590375F **ADDITIONAL LOCATIONS— SCHEDULE PAGE 1 LOCATION ADDRESS NUMBER 002 845 MCGLINCEY LANE CAMPBELL CA 95008-5320 003 ROUTE 3 BOX 258 " JEFFERSON GA 30549 - 004 5-55 REPUBLIC DRIVE #200 PLANO TX 75074 005 1919 GALLOWS RD VIENNA VA 22180 006 SIXTH AVE ..264 BROOKLYN NY 11215 007 1%r800 GREENSPOINT PARK DRIVE #240 11-'HOUSTON TX 77060 008 1410 SPRING HILL RD MCLEAN VA 22180 009 983 UNIVERSITY AVE ,LOt GATOS CA 95032 WC 00 00 01A ISSUE DATE 10/06/98 3139 Rev 1-89 Printed in U.S.A. Copyright 1987 National Council on Compensation Insurance. 7wStlhul Named Insured: METRICOM INC Policy Number: WVA9401217 EXTENSION OF INFORMATION PAGE —ADDITIONAL LOCATIONS (Cont.)** SCHEDULE PAGE 2 LOCATION ADDRESS NUMBER 010 1919 GALLOWS RD VIENNA OVA 22180 O11 O IRONTON ST, UNIT H �_4 ' DENVER CO 80201 012 9-20 MADISON AVE NORRISTOWN PA 19403 i 013 WA:LNUT BUS PARK 11041 ABLES LANE ;6ALLAS TX 75200 014 THOANDALE BUS PARK 1260 MARK ST .BENSEN IL 60106 015 25�OLYMPIA AVE OBURN MA 01801 016 1.MAIN ST .WASHINGTON DC 20000 017 441 S 48TH ST TEM-PE AZ 85281 WC 00 00 01A ISSUE DATE 10/06/98 3139 Rev 1-89 Printed in U.S.A. Copyright 1987 National Council on Compensation Insurance. TMeStFhul Insurer: ST. PAUL FIRE AND MARINE INS CO 385 WASHINGTON ST ST. PAUL MN 55102 NCCI COMPANY NO. 13706 NJERN WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY EXTENSION OF INFORMATION PAGE POLICY NUMBER from POLICY PERIOD to PREV.COVERAGE AGENCY WVA9401217 09/30/98 09/30/99 WVA9400567 0461042 NAMED INSURED AND ADDRESS AGENT ITEM 1. METRICOM INC WOODRUFF-SAWYER/WC 980 UNIVERSITY AVENUE 220 BUSH ST RM 750 LOS GATOS CA 95030 SAN FRANCISCO CA 94104 FEIN 770294597 Risk I.D. No. 2590375F **SCHEDULE OF OPERATIONS* ITEM 4 ST LOC CODE TYP CLASSIFICATION OF OPERATIONS NO RSK CA 001 3578 RADIO OR TELEVISION BROADCAST RECEIVING EQUIPM MFG CA 001 3578 F RADIO OR TELEVISION BROADCAST RECEIVING EQUIP. MFG CA 001 5128 INSTRUMENT -PROFESSIONAL OR SCIENTIFIC -INSTALLATION, SERVICE OR REPAIR -AWAY FROM SHOP -NOT OFFICE MACHINES CA 001 5128 F INSTRUMENT -PROFESSIONAL OR SCIENTIFIC -INSTALLATION, SERVICE OR REPAIR -AWAY FROM SHOP -NOT OFFICE MACHINES CA 001 8742 SALESPERSONS --OUTSIDE CA 001 8742 F SALESPERSONS --OUTSIDE CA 001 8810 CLERICAL OFFICE EMPLOYEES- N.O.C. CA 001 8810 F CLERICAL OFFICE EMPLOYEES- N.O.C. PRM-BASIS RATE TOT-ESTPER$100 ANN-REMUN REMUN 1,400,663 1.54 IF ANY 2.32 105"000 2.12 IF ANY 3.19 993_,738 .93 IF ANY 1.40 7,38 , 738 .80 WC 00 00 01 A AGENT COPY ISSUE DATE 10/06/98 IF ANY 1.20 3139 Rev 1-89 Printed in U.S.A. Copyright 1987 National Council on Compensation Insurance. A/C MO 09/98 SCHEDULE PAGE 1 EST ANNUAL PREMIUM 21,570 0 2,226 0 9,242 0 59,118 I iheStPaVl Named Insured: METRICOM INC Policy Number: WVA9401217 EXTENSION OF INFORMATION PAGE **SCHEDULE OF OPERATIONS(Cont.)** SCHEDULE PAGE 2 ST LOC CODE TYP CLASSIFICATION OF OPERATIONS PRM-BASIS RATE EST ANNUAL NO RSK TOT -EST PER$100 PREMIUM ANN-REMUN REMUN CA 9812 PREMIUM FOR INCREASED LIMITS PART TWO .000% 0 CA TOTAL PREMIUM SUBJECT TO THE EXP MOD 92,156 CA 9897 PREM MODIFIED 09/30/98 TO REFLECT EXP MOD OF .7400 68,195 OTHER PREMIUM CHARGES: CA 9887 PREMIUM CREDIT - SCHEDULE RATING PLAN .5600 30,006- TOTAL ESTIMATED STANDARD PREMIUM 38,189 CA 0063 PREMIUM DISCOUNT, WHEN APPLICABLE 3,723- CA 0900 EXPENSE CONSTANT, WHEN APPLICABLE 185 TOTAL ESTIMATED PREMIUM 34,651 CA CALIFORNIA WC ADMIN REVOLVING .0000% 0 FUND ASSESSMENT CA USER FUNDING ASSESSMENT .1994% 69 CA FRAUD SURCHARGE .3226% 112 TOTAL ESTIMATED COST 34,832 CALIFORNIA DEPOSIT PREMIUM 34,832 WC 00 00 01A AGENT COPY ISSUE DATE 10/06/98 3139 Rev 1-89 Printed in U.S.A. Copyright 1987 National Council on Compensation Insurance. TMeStFAul IMPORTANT NOTICE TO ALL WORKERS COMPENSATION POLICYHOLDERS DOING BUSINESS IN THE STATE OF CALIFORNIA We are required by law to provide you with loss control consultative services as required by the State of California, Department of Industrial Relations - Division of Occupational Safety and Health, section 339.4(b), at no additional charge. The consultative services that you may request consist of the following items: Industrial Hygiene Sampling OSHA Training Emergency Preparedness Employee Selection Supervisor Training Safety Audit Driver Improvement Program Crisis Management Job Site Inspections Exposure Analysis and Control Fall Management Program Ergonomics Customized Training and Consulting Behavioral Safety Program Workers Compensation policyholders may register comments about St. Paul Companies loss control consultative services by writing to the following: State of California Department of Industrial Relations Division of Occupational Safety and Health P.O. Box 420603 San Francisco, CA 94102 Occupational Safety and Health Act requires all employers to provide safe and healthful working conditions for their employees. We encourage you to utilize our services to assist you in this responsibility. To obtain these services, please write or phone: Loss Control Services Department St. Paul Fire & Marine Insurance Company 385 Washington Street Loss Control Services St. Paul, MN 55102 Phone: 612-310-2729 DSF-WC04007A Ed. 10-97 Printed in U.S.A. 'heMbul WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 04 01 01 A LONGSHORE AND HARBOR WORKERS COMPENSATION ACT COVERAGE ENDORSEMENT — CALIFORNIA This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The following "attaching clause" need be completed only when this endorsement is issued subsequent to preparation of the policy.) This endorsement, effective on 09/30/98 at 1 2:01 A.M. standard time, forms a part of Policy No. WVA9401217 Endorsement Number of the ST. PAUL FIRE AND MARINE INSURANCE COMPANY NCCI Carrier Code 13706 Issued To METRICOM INC Policy expiration date 09/30/99 Premium (if any) Authorized Representative This endorsement applies only to work subject to the Longshore and Harbor Workers Compen- sation Act in California. The policy applies to that work as though California were listed in item 3.A of the Information Page. General Section C. Workers Compensation Law is replaced by the following: C. Workers Compensation Law Workers Compensation Law means the workers or workmens compensation law and occupa- tional disease law of each state or territory named in Item 3.A. of the Information Page and the Longshore and Harbor Workers Compensation Act (33 USC Sections 901-950). It includes any amendments to those laws that are in effect during the policy period. It does not include any other federal workers or workmens compensation law, other federal occupational disease law or the provisions of any law that provide nonoccupational disability benefits. Part Two (Employer's Liability Insurance), C. Exclusions., exclusion 8. does not apply to work subject to the Longshore and Harbor Workers Compensation Act. This endorsement does not apply to work subject to the Defense Base Act, the Outer Continental Shelf Lands Act, or the Nonappropriated Fund Instrumentalities Act. The estimated premium for the Longshoremen's and Harbor Workers' Compensation Act coverage provided by this endorsement is as shown in the Schedule below or item 4 of the Information Page. Schedule Estimated Rate per Annual $100 of Code No. Classification Remuneration Remuneration 3578 RADIO OR TELEVISION BROADCAST IF ANY BASIS 50.4 RECEIVING EQUIPMENT MFG 8742 SALESPERSONS OUTSIDE 8810 CLERICAL OFFICE EMPL 5128 OUTSIDE INSTALLATION DSF-WC040101A Ed. 4-92 Printed in U.S.A. IF ANY BASIS 50.4 IF ANY BASIS 50.4 IF ANY BASIS 50.4 Estimated Annual Premium Total Estimated Annual Premium $0.00 $0.00 $0.00 $0.00 r*Stlhul WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC040301 POLICY AMENDATORY ENDORSEMENT — CALIFORNIA This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The following "attaching clause' need be completed only when this endorsement is issued subsequent to preparation of the policy.) This endorsement, effective on 09/30/98 at 12:01 A.M. standard time, forms a part of (Date) Policy No. WVA9401217 Endorsement No. of the ST. PAUL FIRE AND MARINE INSURANCE COMPANY NCCI Carrier Code 13706 (Name of Insurance Company) issued to: METRICOM INC Policy Expiration Date: 09/30/99 Premium (if any) $ Authorized Representative It is agreed that, anything in the policy to the contrary notwithstanding, such insurance as is afforded by this policy by reason of the designation of California in Item 3 of the information page is subject to the following provisions: 1. Minors Illegally Employed — Not Insured. This policy does not cover liability for additional compensation imposed on you under Section 4557, Division IV, Labor Code of the State of California, by reason of injury to an employee under sixteen years of age and illegally employed at the time of injury. 2. Punitive or Exemplary Damages — Uninsurable. This policy does not cover punitive or exemplary damages where insurance of liability therefor is prohibited by law or contrary to public policy. 3. Increase in Indemnity Payment — Uninsurable. This policy does not cover an increase in indem- nity payment as provided for in subdivision (e) of Section 4650 of the Labor Code, if the late indemnity payment which gives rise to the increase in the amount of payment is due less than seven (7) days after we receive the completed claim form from you. You are responsible for the amount of increase in indemnity payments not covered under this policy and will reimburse us for any increase in indemnity payment not covered under the policy when the aggregate total amount of the reimbursement payments paid in a policy year exceeds one hundred dollars ($100). Ed 1-91 Printed in U.S.A. WC 04 03 05 (Ed. 1-85) VOLUNTARY COMPENSATION AND EMPLOYERS LIABILITY COVERAGE ENDORSEMENT—CALIFORNIA This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The following "attaching clause" need be completed only when this endorsement is issued subsequent to preparation of the policy.) This endorsement, effective on 09/30/98 at 12:01 A.M. standard time, forms a part of (Date) Policy No. WVA9401217 Endorsement No. of the ST. PAUL FIRE AND MARINE INSURANCE COMPANY NCCI Carrier Code 13706 (Name of Insurance Company) issued to: METRICOM INC Policy Expiration Date: 09/30/99 Premium (if any) $ 0.00 Authorized Representative If the employer named in item 1 of the Information Page has in his employment persons not enti- tled to compensation under Division 4 of the Labor Code of the State of California, this policy shall operate as an election on the part of the employer to come under the compensation provisions of Division 4 with respect to those persons described in the Schedule below. This policy applies to those persons described in the Schedule below as employees. Schedule 7heStFalll WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 04 03 10 DUTY TO DEFEND — CALIFORNIA This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The following "attaching clause" need be completed only when this endorsement is issued subsequent to preparation of the policy.) This endorsement, effective on 09/30/98 at 12:01 A.M. standard time, forms a part of Policy No. WVA9401217 Endorsement Number of the ST. PAUL FIRE AND MARINE INSURANCE COMPANY NCCI Carrier Code 13706 Issued To METRICOM INC Policy expiration date 09/30/99 Premium (if any) Authorized Representative The insurance afforded by Part One, Section C, "We Will Defend", is hereby deleted and replaced with the following: WE WILL DEFEND We have the right and duty to defend at our expense any claim or proceeding against you before the California Workers Compensation Appeals Board or its equivalent in any other state (and any appeal of a decision therefrom) for the benefits payable by this workers compensation insurance. We have the right to investigate and settle these claims or proceedings. We have no duty to defend a claim, proceeding, or suit that is not covered by this insurance. Nothing contained in this Section shall amend, modify, restrict or otherwise alter any obligations or conditions under Part Two -Employer's Liability Insurance of the policy. DSF-WC040310 Ed. 1-95 Printed in U.S.A. WC 04 03 60 (Ed. 8-86) EMPLOYER'S LIABILITY COVERAGE AMENDATORY ENDORSEMENT— CALIFORNIA This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The following "attaching clause" need be completed only when this endorsement is issued subsequent to preparation of the policy.) This endorsement, effective on 09/30/98 at 12:01 A.M. standard time, forms a part of (Date) Policy No. WVA9401217 Endorsement No. of the ST. PAUL FIRE AND MARINE INSURANCE COMPANY NCCI Carrier Code 13706 (Name of Insurance Company) issued to: METRICOM INC Policy Expiration Date: 09/30/99 Premium (if any) $ Authorized Representative The insurance afforded by Part Two (Employers' Liability Insurance) by reason of designation of California in item 3 of the information page is subject to the following provisions: A. "How This Insurance Applies", is amended to read as follows: A. How This Insurance Applies This employers' liability insurance applies to bodily injury by accident or bodily injury by disease. Bodily injury means a physical or mental injury, including resulting death. Bodily injury does not include emotional distress, anxiety, discom- fort, inconvenience, depression, dissatisfaction or shock to the nerv- ous system, unless caused by either a manifest physical injury or a disease with a physical dysfunction or condition resulting in treatment by a licensed physician and surgeon. 1. The bodily injury must arise out of and in the course of the injured employee's employment by you. 2. The employment must be neces- sary or incidental to your work in California. 3. Bodily injury by accident must occur during the policy period. 4. Bodily injury by disease must be caused or aggravated by the condi- tions of your employment. The employee's last day of last expo- sure to the conditions causing or aggravating such bodily injury by disease must occur during the policy period. 5. If you are sued, the original suit and any related legal actions for damages for bodily injury by acci- dent or by disease must be brought in the United States of America, its territories or possessions, or Canada. P*StFhul WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC040601A CALIFORNIA CANCELATION ENDORSEMENT This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The following "attaching clause" need be completed only when this endorsement is issued subsequent to preparation of the policy.) This endorsement, effective on 09/30/98 at 12:01 A.M. standard time, forms a part of Policy No. WVA9401217 Endorsement Number of the ST. PAUL FIRE AND MARINE INSURANCE COMPANY NCCI Carrier Code 13706 Issued To METRICOM INC Policy expiration date 09/30/99 Premium (if any) Authorized Representative This endorsement applies only to the insurance provided by the policy because California is shown in Item 3.A. of the Information Page. The cancelation condition in Part Six (Conditions) of the policy is replaced by the these conditions: Cancellation 1. You may cancel this policy. You must mail or deliver advance written notice to us stating when the cancelation is to take effect. 2. We may cancel this policy for one or more of the following reasons: a. Non-payment of premium; b. Failure to report payroll; c. Failure to permit us to audit payroll as required by the terms of this policy or of a previous policy issued by us; d. Failure to pay any additional premium resulting from an audit of payroll required by the terms of this policy or any previous policy issued by us; e. Material misrepresentation made by you or your agent; f. Failure to cooperate with us in the investigation of a claim; g. Failure to comply with Federal or State safety orders; h. Failure to comply with written recommendations of our designated loss control represen- tatives; i. The occurrence of a material change in the ownership of your business; j. The occurrence of any change in your business or operations that materially increases the hazard for frequency or severity of loss; k. The occurrence of any change in your business or operation that requires additional or different classification for premium calculation; I. The occurrence of any change in your business or operation which contemplates an activity excluded by your reinsurance treaties. DSF-WC040601A Ed. 12-93 Printed in U.S.A. We have no duty to de' proceeding or suit that this insurance. D. We Will Also Pay J a claim, If we make an ayments in excess of the is not covered by benefits regularly provided by the workers compensation law on your behalf, you will reimburse us promptly. We will also pay these costs, in addition to other amounts payable under this insurance, as part of any claim, proceed- ing or suit we defend: 1. reasonable expenses incurred at our request, but not loss of earnings; 2. premiums for bonds to release attachments and for appeal bonds in bond amounts up to the amount payable under this insurance; 3. litigation costs taxed against you; 4. interest on a judgment as required by law until we offer the amount due under this insurance; and 5. expenses we incur. E. Other Insurance We will not pay more than our share of benefits and costs covered by this insur- ance and other insurance or self-insu- rance. Subject to any limits of liability that may apply, all shares will be equal until the loss is paid. If any insurance or self-insurance is exhausted, the shares of all remaining insurance will be equal until the loss is paid. F. Payments You Must Make You are responsible for any payments in excess of the benefits regularly provided by the workers compensation law including those required because: 1. of your serious and willful miscon- duct; 2. you knowingly employ an employee in violation of law; 3. you fail to comply with a health or safety law or regulation; or 4. you discharge, coerce or otherwise discriminate against any employee in violation of the workers compensation I aw. 1991 National Council on Compensation Insurance G. Recovery From Others We have your rights, and the rights of persons entitled to the benefits of this insurance, to recover our payments from anyone liable for the injury. You will do everything necessary to protect those rights for us and to help us enforce them. H. Statutory Provisions Page 3 of 8 These statements apply where they are required by law. 1. As between an injured worker and us, we have notice of the injury when you have notice. 2. Your default or the bankruptcy or insol- vency of you or your estate will not relieve us of our duties under this insurance after an injury occurs. 3. We are directly and primarily liable to any person entitled to the benefits payable by this insurance. Those persons may enforce our duties; so may an agency authorized by law. Enforcement may be against us or against you and us. 4. Jurisdiction over you is jurisdiction over us for purposes of the workers compen- sation law. We are bound by decisions against you under that law, subject to the provisions of this policy that are not in conflict with that law. 5. This insurance conforms to the parts of the workers compensation law that apply to: a. benefits payable by this insurance; b. special taxes, payments into security or other special funds, and assessments payable by us under that law. 6. Terms of this insurance that conflict with the workers compensation law are changed by this statement to conform to that law. Nothing in these paragraphs relieves you of your duties under this policy. or work classifications. T ;e classifica- tions were assigned based on an estimate of the exposure you would have during the policy period. If your actual exposures are not properly described by those classifica- tions, we will assign proper classifications, rates and premium basis by endorsement to this policy. C. Remuneration Premium for each work classification is determined by multiplying a rate times a premium basis. Remuneration is the most common premium basis. This premium basis includes payroll and all other remuner- ation paid or payable during the policy period for the services of: 1. all your officers and employees engaged in work covered by this policy; and 2. all other persons engaged in work that could make us liable under Part One (Work- ers Compensation Insurance) of this policy. If you do not have payroll records for these persons, the contract price for their services and materials may be used as the premium basis. This paragraph 2 will not apply if you give us proof that the employers of these persons lawfully secured their workers compensation obligations. D. Premium Payments You will pay all premium when due. You will pay the premium even if part or all of a workers compensation law is not valid. E. Final Premium The premium shown on the Information Page, schedules, and endorsements is an estimate. The final premium will be deter- mined after this policy ends by using the actual, not the estimated, premium basis and the proper classifications and rates that lawfully apply to the business and work 1991 National Council on Compensation Insurance covered by th. olicy. If the final premium is more than the premium you paid to us, you must pay us the balance. If it is less, we will refund the balance to you. The final premium will not be less than the highest minimum premium for the classifications covered by this policy. If this policy is canceled, final premium will be determined in the following way unless our manuals provide otherwise. 1. If we cancel, final premium will be calcu- lated pro rata based on the time this policy was in force. Final premium will not be less than the pro rata share of the minimum premium. 2. If you cancel, final premium will be more than pro rata; it will be based on the time this policy was in force, and increased by our short -rate cancelation table and proce- dure. Final premium will not be less than the minimum premium. F. Records You will keep records of information needed to compute premium. You will provide us with copies of those records when we ask for them. G. Audit Page 7 of 8 You will let us examine and audit all your records that relate to this policy. These records include ledgers, journals, registers, vouchers, contracts, tax reports, payroll and disbursement records, and programs for storing and retrieving data. We may conduct the audits during regular business hours during the policy period and within three years after the policy period ends. Information developed by audit will be used to determine final premium. Insurance rate service organizations have the same rights we have under this provision. Pursuant to Section 11752. of the California Insurance Code, are informing you of the following changes in laws affecting workers compensation insurance rating enacted during the 1993 session of the California Legislature: Changes Effective on or before January 1, 1994 1. You must notify us if you know facts that prove any aspect of an employee's claim is false. You have the right to dispute whether a claim is compensable. If you dispute compensability and you notify us and the Workers Compensation Appeals Board (WCAB) in writing, and if the WCAB determines that claim noncompensable, you may be entitled to reimbursement of premium you paid due to the inclusion of that claim in your experience modification. 2. When a claim is made, we set a "case reserve" which includes our estimates of medical -legal costs, vocational rehabilitation costs, and all other estimated expenses and benefits to be paid on that claim. At your request, we will provide you a written justification for any case reserve that affects your premium. 3. At your request, we will provide you with all parts of a claim file that affect your premium, and we will discuss the file with you. We cannot provide you, however, with documents that are protected by legal privilege (such as attorney -client privilege) or any documents we are prohib- ited by law from disclosing. 4. We cannot surcharge your policy by applying a plan or method that is unfairly discriminatory. Prior to January 1, 1995, we will report annually all surcharge plans or methods we use to the Insurance Commissioner. 5. California Insurance Code Section 676.8, which specifies the reasons for which we may cancel your policy, provides as follows: 676.8 (a) This section applies only to policies of workers compensation insurance. (b) After a policy is in effect, no notice of cancellation shall be effective unless it complies with the notice requirements for this section and is based upon the occur- rence, after the effective date of the policy, of one or more of the following: (1) The policyholder's failure to make any workers compensation insurance premium payment when due. (2) The policyholder's failure to report payroll, to permit the insurer to audit payroll as required by the terms of the policy or of a previous policy issued by the insurer, or to pay any additional premium as a result of a audit of payroll as required by the terms of the policy or of a previous policy. (3) The policyholder's material failure to comply with federal or state safety orders or written recommendations of the insurer's designated loss control representative. (4) A material change in ownership or any change in the policyholder's business or operations that materially increases the hazard for frequency or serverity of loss, requires additional or different classifications for premium calculations, or contemplates an activity excluded by the insurer's reinsurance treaties. (5) Material misrepresentation by the policyholder or its agent. (6) Failure to cooperate with the insurer in the insurer's investigation of a claim. (c) A policy shall not be canceled for the conditions specified in paragraph (1), (2), (5), or (6) of subdivision (b) except upon 10 days' written notice to the policyholder by the insurer. A policy shall not be canceled for the conditions specified in paragraph (3) or (4) of subdivision (b) except upon 30 days' written notice to the policyholder by the insurer, provided that no notice is required if an insured and insurer consent to the cancellation and reissuance of a policy effective upon a material change in ownership DSF—WC04004 Ed. 1-95 Printed in U.S.A.