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R2000-092 08-14-00 RESOLUTION NO. R2000-92 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A SITE LEASE AGREEMENT WITH METRICOM, INC. FOR THE PLACEMENT OF COMMUNICATIONS EQUIPMENT ON CITY PROPERTY. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section l. That certain funding agreement by and between the City of Pearland and Metricom, Inc., a copy of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby authorized and approved. Section 2. That the City Manager or his designee is hereby authorized to execute and the City Secretary to attest the site lease agreement with Metricom, Inc. for the placement of communications equipment on City property. PASSED, APPROVED and ADOPTED this the ~.4 day of August TOM REID MAYOR ATTEST: ~ACpiROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY City of Pearland City Water Tower Site Lease Agreement Metricom Site ID: HOU 0149 RECEIVED /~lJ6 1 § 2000 WHALEN & COMPANY TABLE OF CONTENTS PAGE 1. Leased Premises ........................................................................................... 1 1 2. Rent ............................................................................................................ (a) Amount, Adjustments .......................................................................... 1 (b) Time of Payment, Taxes ..................................................................... 1 3. Governmental Approval Contingency .............................................. : ............. 2 (a) Tenant Application .............................................................................. 2 (b) Interference Study ............................................................................... 2 (c) Non-approval ....................................................................................... 2 4. Term and Renewals ............................................................................ : .......... 2 5. Tenant's Use .................................................................................................. 3 (a) User Priority ........................................................................................ 3 (b) Purposes .............................................. : .............................................. 3 (c) Construction, Deposit .......................................................................... 4 (d) Operation ............................................................................................ 4 (e) Maintenance, Improvement Expenses ................................................ 5 (f) Replacements ..................................................................................... 5 (g) Drawings ............................................................................................. 5 (h) No Interference ................................................................................... 5 (i) Access ............................................. , .................................................. 5 ¢j) Payment of Utilities ............................................................................. 6 6. Additional Maintenance Expenses ................................................................. 6 7. Additional Facilities ........................................................................................ 6 8. Defense and Indemnification ......................................................................... 6 (a) General ................................................. : ............................................. 6 (b) Hazardous Materials ........................................................................... 7 (c) Tenant's Warranty ............................................................................... 7 9. Damage or Destruction .................................................................................. 7 10. Lease Termination ......................................................................................... 8 (a) Events of Termination ......................................................................... 8 (b) Notice of Termination .......................................................................... 8 (c) Tenant's Liability for Early Termination ............................................... 9 (d) Site Restoration ................................................................................... 9 PAGE 11. Insurance ..................................................................................................... 10 12. Limitation of Landlord's Liability ................................................................... 10 13. Temporary Interruptions of Service .............................................................. 10 14. Tenant Interference ..................................................................................... 11 (a) With Structure ................................................................................... 11 (b) With Higher Priority Users ................................................................. 11 (c) Interference Study - New Occupants ................................................ 11 (d) Interference - New Occupants .......................................................... 11 15. Assignment .................................................................................................. 12 16. Disputes ....................................................................................................... 12 17. Enforcement and Attorneys' Fees ................... : ............................................ 12 18. Notices ......................................................................................................... 12 19. Authority ....................................................................................................... 13 20. Binding Effect ............................................................................................... 13 21. Complete Lease; Amendments .................................................................... 13 22. Governing Law ............................................................................................. 13 13 23. Severability .................................................................................................. 24. Representations ........................................................................................... 13 25. Memorandum of Lease ................................................................................ 13 26. Counterparts .............................. i ................................................................. 14 SITE LEASE AGREEMENT THIS SITE LEASE AGREEMENT ("Lease"), made this /~ dayofAugust, 2000, between the City of Pearland, 3519 Liberty Drive, Pearland, Texas 77581 ("Landlord"), and METRtCOM, INC., a Delaware corporation organized and existing under the laws of Delaware ("Tenant"). For good and valuable consideration, the parties agree as follows: 1. Leased Premises. Subject to the terms and conditions of this Lease, Landlord hereby leases to Tenant and Tenant leases from Landlord a portion of Landlord's property, located at 3702 Alice, Pearland, Texas, County of Brazoria, State of Texas (hereinafter "Landlord Property"), subject to any and all existing easements, and a portion of the ~ Water Tower or other structures ("Structure"), on which directional antennas, connecting cables and appurtenances will be attached and located, the exact location of each to be reasonably approved by Landlord's Director of Public Works, together with appurtenant easements and access rights. A legal description of Landlord's Property is set forth on Exhibit A hereto. The ground space on Landlord's Property, which measures approximately In feet by !~)~ feet, together with the space on the Structure, to be leased from Landlord by Tenant hereunder, together with appurtenant utility easements and access easements, are hereinafter collectively referred to as the "Leased Premises" and are more particularly described on Exhibit B hereto. 2. Rent. (a) Amount, Adjustments. As consideration for this Lease, Tenant shall pay Landlord rent in the amount of One Thousand Eight Hundred Thirty Five Dollars ($1,835.00) per month, from commencement of this lease through December 31, 2001. Beginning January 1,2002, and on January 1 of each succeeding year, the rent shall be increased by three and one half percent (3.5%) of the previous year's annualized rental. (b) Time of Payment, Taxes. The rent shall be payable in quarterly installments of Five Thousand Five Hundred Five Dollars ($5,505.00) each (the "Quarterly Payments"). The first Quarterly Payment of Rent (the "initial Payment") shall be payable within thirty (30) days of the Commencement Date, prorated as appropriate. Subsequent Quarterly Payments shall be payable on or before January 1, April 1, July 1, and October 1 of each year. All payments due under this Lease shall be sent to Lessor's address indicated under § 18 below, to the attention of City of Pearland. In addition to the annual rental, Tenant agrees to timely pay any taxes or payment in lieu of taxes required as a result of {his Lease. 3. Governmental Approval Contingency. (a) Tenant Application. Tenant's right to use the Leased Premises is expressly made contingent upon its obtaining all the certificates, permits, zoning and other approvals that may be required by any federal, state, or local authority. This shall include the engineering study specified in Subparagraph 3(b) below on the Structure to be conducted at Tenant's expense. Landlord shall cooperate with Tenant in its efforts to obtain and retain such approvals and shall take no action which would adversely affect the status of the Leased Premises with respect to the Tenant's proposed use thereof. (b) Interference Study. Before obtaining a building permit, Tenant must pay for the reasonable cost of (i) a radio frequency interference study analyzing whether Tenant's intended use will interfere with any existing communications facilities and (ii)an engineering study analyzing whether the Structure is able to support the Antenna Facilities, as defined in Subparagraph 5(b), without prejudice to the City's current use of the Structure. If the study finds that there is a potential for interference that cannot be reasonably remedied, or for prejudice to the Structure which cannot be remedied by reasonable structural modifications or upgrades, Landlord may terminate this Lease immediately and refund the initial rental to Tenant. Any radio frequency interference study conducted pursuant to this section shall be carried out by an independent and qualified prefessional engineer, selected by Tenant, and approved by Landlord, which approval shall not be unreasonably withheld, delayed, or conditioned. (c) Non-approval. In the event that any application necessary under Subparagraph 3(a) above is finally rejected or any certificate, permit, license, or approval issued to Tenant is canceled, expires, lapses, or is otherwise withdrawn or terminated by governmental authority so that Tenant, in its sole discretion, will be unable to use the Leased Premises for its intended purposes, Tenant shall have the right to terminate this Lease. Notice of Tenant's exercise of its right to terminate shall be given to Landlord in writing by certified mail, return receipt requested, and shall be effective upon receipt of such notice by Landlord as evidenced by the return receipt. Except as required under Subparagraph 13(d) below, upon such termination, this Lease shall become null and void and the parties shall have no further obligations to each other. 4. Term and Renewals. The "Initial Term" of this lease shall be ten (10) years commencing on the date of execution of the site lease agreement (the "Commencement Date") and ending on the tenth anniversary of the Commencement Date. Subject to the terms and conditions of this Lease, Tenant shall have the right to extend this Lease for two (2) additional five (5) year renewal periods ("Renewal Term") commencing on January 1 following the expiration date of the Initial Term or of any subsequent Renewal Term. 2 This Lease shall be automatically renewed for each successive Renewal Term unless either Landlord or Tenant sends written notice of non-renewal to the other no later than ninety (90) days prior to the expiration of the Initial Term or any Renewal Term, such notice provided in accordance with Paragraph 21 of this Lease. 5. Tenant's Use. (a) User Priority. Tenant agrees that the following priorities of use, in descending order, shall apply in the event of communication interference or other conflict while this Lease is in effect, and Tenant's use shall be subordinate accordingly: 1. Landlord; 2. Public safety agencies, including law enforcement, fire, and ambulance services, that are not part of the Landlord; 3. Other governmental agencies where use is not related to public safety; and 4. Govern ment-regulated entities whose antennae offer a service to the general public for a fee, in a manner similar to a public utility, such as long distance and cellular telephone, not including radio or television broadcasters. Landlord agrees to use best efforts to accommodate Tenant's use of the Leased Premises in conjunction with any of the higher priority uses specified in this Subparagraph 5(a), by first requiring any later user of Landlord's Property and the Structure to attempt to place its equipment in a manner which .will not interfere with Tenant's Antenna Facilities, and second by allowing Tenant to reasonably relocate its Antenna Facilities on the Structure so that all users are accommodated. (b) Purposes. Tenant shall use the Leased Premises only for the purpose of installing, maintaining, and operating a Landlord-approved wireless communications facility, equipment, and uses incidental thereto for providing radio and wireless data communications services which Tenant is legally authorized to provide to the public. This use shall be non-exclusive, and Landlord specifically reserves theright to allowthe Leased Premises to be used by other parties and to make additions, deletions, or modifications to its own facilities on the Leased Premises, provided that with regard to any such addition, deletion, or modification, to the Leased Premises, Landlord shall provide Tenant at least ninety (90) days advance written notice of such work, and agrees to use best efforts to minimize disruption to Tenant's Antennae Facilities during such work. Tenant's 3 communications antenna facility shall consist of antennas at a Landlord-approved location, along with cables and appurtenances connected to an accessory building or cabinet located on the Leased Premises ("Antenna Facilities"). The Antenna Facilities are depicted on Exhibit B attached hereto, and Landlord, by executing this Lease, hereby approves of the Antenna Facilities and their location on Landlord's Property. Landlord acknowledges that the Antenna Facilities shall include (without limitation) up to three (3) equipment cabinets; up to sixteen (16) radios and antennas; and associated equipment, fixtures, and cabling. Tenant shall comply with all applicable ordinances, statutes and regulations of local, state and federal government agencies. (c) Construction, Deposit. Tenant may erect and operate the Antenna Facilities in accordance with Exhibit B. If Tenant seeks to increase the number of antennas beyond the sixteen (16) antennae provided for in this Lease, it must first pay for an evaluation carried out by a qualified professional, retained by Landlord demonstrating that (i) each additional antenna will not interfere with existing antennas or with proposed antennas with a higher priority and that (ii) any Structure can structurally support the additional antennas. The cost of each evaluation must be paid by the Tenant within thirty (30) days after receiving written notice of the cost. Landlord must consent to installation of additional antennas, such consent will not be unreasonably withheld, delayed, or conditioned, tf Landlord consents, the parties will negotiate the amount of additional rental for the antennas. Upon the commencement of this Lease, Tenant shall deposit with Landlord an amount equal to two (2) months' rent, which shall be fully refunded to Tenant upon the timely removal of the Antennas Facilities, and related equipment, the repair of the site and the restoration of the Structure surface to the commercially reasonable satisfaction of the Landlord. Landlord may use this deposit to complete work not done by Tenant as required by this Lease, after notice of default provided to Tenant under Paragraph' 10(a)(i) below and Tenant's failure to cure such default within the notice period specified therein. If the deposit is not sufficient to cover all costs, Tenant must reimburse the Landlord for any additional costs, within ten (10) days after Landlord's written demand. If Landlord uses any of the deposit, Tenant must provide sufficient funds to replenish the deposit to the full amount, within ten (10) days after receipt of Landlord's written notice. (d) Operation. Tenant shall have the right, at its sole cost and expense, to operate and maintain the Antenna Facilities on the Leased Premises in accordance with good engineering practices, with all applicable FCC rules and regulations. Tenant's installation of all Antenna Facilities shall be done according to plans approved by Landlord, which approval shall not be unreasonably withheld. Any damage done to the Leased Premises or other Landlord property including the Structure during installation or during operations, shall be repaired at Tenant's expense within thirty (30) days after receipt of notification of damage. The Antenna Faoilities shall remain the exclusive property of the Tenant, unless otherwise provided in this Lease. Tenant agrees to cooperate with the Landlord when the Landlord is performing maintenance activities on the Structure, including reducing or interrupting transmissions when work is being conducted directly in front of the antennas. Landlord agrees to coordinate the timing of such maintenance activities with the Tenant and will attempt to minimize adverse impacts on Tenant's operations. (e) Maintenance, Improvement Expenses. All modifications to the Leased Premises and all improvements made for Tenant's benefit shall be at the Tenant's expense and such improvements, including antenna, facilities and equipment, shall be maintained in a good state of repair, at least equal to the standard of maintenance of the Landlord's facilities on or adjacent to the Leased Premises, and secured by Tenant. tf Tenant's Antenna Facilities are mounted on the Structure they shall, at all times, be painted, at Tenant's expense, the same color as the Structure. (f) Replacements. Before the Tenant may update or replace the Antenna Facilities, Tenant must notify and provide a detailed proposal to Landlord. Tenant shall submit to Landlord a detailed proposal for any such replacement facilities and any other information reasonably requested by Landlord of such requested update or replacement, including but not limited to a technical study, carried out at Tenant's expense. Landlord may not unreasonably withhold approval. (g) Drawings. Unless duplicative of previous specifications or drawings submitted to Landlord, Tenant shall provide Landlord with as-built drawings of the equipment and improvements installed on the Leased Premises, which show the actual location of all Antenna Facilities. Said drawings shall be accompanied by a complete and detailed inventory of all equipment, personal property, and Antenna Facilities actually placed on the Leased Premises. (h) No Interference. Tenant shall, at its own expense, maintain any equipment on or attached to the Leased Premises in a safe condition, in good repair and in a manner suitable to Landlord so as not to conflict with the use of the surrounding premises by Landlord. Tenant shall not unreasonably interfere with the operations of any prior tenant using the Structure and shall not interfere with the working use of the water storage facilities thereon or to be placed thereon by Landlord. (i) Access. Tenant, at all times during this Lease, shall have access to the ground portion of the Leased Premises in order to install, operate, and maintain its Antenna Facilities and related equipment via a separate gate to a separately fenced enclosure. Access to the water tower shall be only when accompanied by a City representative, provided however that the City shall make a representative available, if needed, seven (7) days a week, twenty-four (24) hours a day, as required by Tenant. If such access is not during normal working hours, Tenant shall pay the related personnel 5 costs of the City. In the event of emergency, and provided Tenant has made good faith effort to contact City personnel, and further provided that such good faith effort has failed, in that event Tenant shall be entitled to access the water tower without being accompanied by a City representative. ¢j) Payment of Utilities. Tenant shall separately meter charges for the consumption of electricity and other utilities associated with its use of the Leased Premises and shall promptly pay all costs associated therewith. Tenant shall be entitled to install, and shall pay for any utilities and services required for the Antenna Facilities. Landlord shall provide Tenant, at Tenant's cost, with such reasonable assistance as is necessary to enable Tenant to arrange for such utilities and services. 6. Additional Maintenance Expenses. Upon notice from Landlord, Tenant shall promptly pay to Landlord all additional Landlord expenses incurred in maintaining the Leased Premises, including painting or other maintenance of the Structure, that are a direct result of Tenant's occupancy of the Leased Premises. 7. Additional Facilities. Tenant acknowledges that Landlord may permit additional facilities to be constructed on the property described in Exhibit A. At such time as this may occur, Tenant will permit said facilities to be placed immediately adjacent to Tenant's facilities and will allow "attachments" to its building so as to give the appearance that all facilities are connected. Said attachments will be made at no cost to Tenant and will not cempromise the structural integrity, safety, or functionality of Tenant's facilities. Notwithstanding the foregoing, Landlord acknowledges that the ground level Antenna Facilities to be installed by Tenant consist predominately of a raised equipment platform and one or more equipment cabinets. Landlord further acknowledges that each equipment cabinet requires for reasons of safety a minimum distance in separation from other structures, and Landlord agrees that neither Landlord not any other tenant on Landlord's Property shall be entitled to affix any structure or equipment to any part of Tenant's equipment cabinets. 8. Defense and Indemnification. la) General. Tenant agrees to defend, indemnify and hold harmless Landlord and its elected officials, officers, employees, agents, and representatives, from and against any and all claims, costs, losses, expenses, demands, actions, or causes of action against Landlord, including reasonable attorneys' fees and other costs and expenses of litigation, which may be asserted against or incurred by Landlord or for which Landlord may be liable arising out of the installation, operation, use, maintenance, repair, or removal of the Antenna Facilities, except those which arise solely from the negligence, willful misconduct, or other fault of Landlord. Tenant shall defend all claims against Landlord arising out of the installation, operation, use, maintenance, repair, removal, or presence of Tenant's Antenna Facilities, equipment and related facilities on the Leased Premises. 6 (b) Hazardous Materials. Without limiting the scope of Subparagraph 8(a) above, Tenant will be solely responsible for and will defend, indemnify, and hold Landlord, its agents, and employees harmless from and against any and all claims, costs, and liabilities, including attorney's fees and costs, arising out of or in connection with the cleanup or restoration of the Leased Premises as a direct result of Tenant's use of Hazardous Materials in violation of applicable laws, regulations or ordinances governing Hazardous Materials. For purposes of this Lease, "Hazardous Materials" shall be interpreted broadly and specifically includes, without limitation, asbestos, fuel, batteries or any hazardous substance, waste, or materials as defined in any federal, state, or local environmental or safety law or regulations including, but not limited to, CERCLA. Landlord represents, warrants and agrees (1)that neither Landlord nor, to Landlord's knowledge, any third party has used, generated, stored or disposed of, or permitted the use, generation, storage or disposal of, any Hazardous Materials on, under, about or within Landlord's Property or the Structure in violation of any law or regulation, except as disclosed herein, and (2) that Landlord will not, and ~vill not permit any third party to use, generate, store or dispose of any Hazardous Materials on, under, about or within Landlord's Property or the Structure in violation of any law or regulation. (c) Tenant's Warranty. Tenant represents and warrants that its use of the Leased Premises will not generate and Tenant will not store or dispose of on the Leased Premises, nor transport to or over the Leased Premises, any Hazardous Materials, unless Tenant specifically informs Landlord thereof in writing twenty-four hours prior to such storage, disposal or transport, or otherwise as soon as Tenant becomes aware of the existence of Hazardous M~terials on the Leased Premises. The obligations of this Paragraph 8 shall survive the expiration or other termination of this Lease for a period of two (2) years thereafter. Notwithstanding the foregoing, Tenant shall not be required to notify Landlord as to the presence of any Hazardous Materials that may be found in self-contained batteries for emergency power, and in ordinary cleaning solutions, and similar kinds of "Hazardous Materials" as are commonly used in connection with operating and maintaining a wireless data communications facility. Tenant warrants that its storage and use of such materials shall be in accordance with all applicable laws, regulations and ordinances governing the use, storage and disposal thereof. 9. Damage or Destruction. If the Leased Premises is destroyed or damaged, without contributory fault of the Tenant or its agents, so as, in Tenant's judgment, to hinder its effective use of the Antenna Facilities, Tenant may elect to terminate this Lease upon thirty (30) days' written notice to Landlord. In the event Tenant elects to terminate the Lease, Tenant shall be entitled to reimbursement of prepaid rent covering the period subsequent to the date of damage to or destruction of the Leased Premises. 7 10. Lease Termination. (a) Events of Termination. Except as otherwise provided herein, this Lease may be terminated by either party upon sixty (60) days' written notice to the other party as follows: (i) by either party upon a default of any covenant or term hereof by the other party, which default is not cured within sixty (60) days of receipt of written notice of default to the other party (without, however, limiting any other rights of the parties pursuant to any other provisions hereof); provided that if such default is not curable within sixty (60) days, the Lease shall not terminate if the defaulting party commences such cure within sixty (60) days and diligently prosecutes such cure to completion; (ii) by Tenant for cause if it is unable to obtain or maintain any license, permit or other governmental approval necessary for the construction and/or operation of the Antenna Facilities or Tenant's business; (iii) by Tenant for cause if the Leased Premises is or becomes unacceptable for technological reasons under the Tenant's Antenna Facilities design or engineering specifications or the communications systems to which the Antenna Facilities belong; (iv) by Landlord, if its Council decides, for reasons of public necessity, to redevelop the Leased Premises and/or discontinue use of the Structure for all purposes; provided that termination under this section §10(a)(iv) shall require not less than eighteen (18) months prior written notice to Tenant; and further provided that Landlord shall not terminate this Agreement for mere convenience unrelated to a necessary governmental function; neither shall Landlord terminate this Agreement to accommodate any other private-sector wireless communications facility or communications service provider. Examples of public necessity, justifying termination of this Agreement by Landlord, shall include (but not be limited to): the sale of the water tower; replacement of the water tower with a new tower at the same site; demolition of the tower; and any other public necessity which causes the tower to cease to be used for a public purpose. (v) by Landlord if it determines that the Structure is structurally unsound, including, but not limited to, consideration of age of the Structure, or damage or destruction of all or part of the Structure on the Leased Premises from any source, (vi) by Landlord if it determines that a potential user with a higher priority under Subparagraph 4(a) above, despite best efforts, cannot find another adequate 8 location, or the Antenna Facilities unreasonably interfere with another user with a higher priority, regardless of whether or not such an interference was predicted in the initial interference study that was part of the application process; provided that Tenant has been given a good faith opportunity to relocate its Antenna Facilities in a ' manner that will cure any interference; or (vii) by Landlord if it determines that Tenant has failed to comply with applicable ordinances, or state or federal law, or any conditions attached to government approvals granted thereunder, after a public hearing before the Landlord's Council; provided, however, that Tenant has first been given notice of any non-compliance and an opportunity to cure any non-compliance in accordance with §10(a)(i) above. (b) Notice of Termination. The parties shall give notice of termination in writing by certified mail, return receipt requested. Such notice shall be effective upon receipt as evidenced by the return receipt. All rentals paid for the Lease prior to said termination date shall be retained by Landlord. (c) Tenant's Liability forEarly Termination. If Tenant terminates this Lease other than of right as provided in this Lease, Tenant shall pay to Landlord as liquidated damages for early termination, an amount equal to six (6) months' Rent at the then effective rate, unless Tenant terminates during the last year of any Term under Paragraph 4, in which event Tenant shall only be liable for the unpaid balance of the annual rent remaining in the then current Term of the Lease. (d) Site Restoration. In the event that this Lease is terminated or not renewed, Tenant shall have 60 days from the termination or expiration date to remove its Antenna Facilities, and related equipment from the Leased Premises, repair the site and restore the surface of the Structure to the condition existing on the Commencement Date, reasonable wear and tear excepted. In the event that Tenant's Antenna Facilities, and related equipment are not removed within such sixty (60) day period to the reasonable satisfaction of the Landlord, they shall be deemed abandoned and become the property of the Landlord and Tenant shall have no further rights thereto. In addition, Landlord may use the deposit required in paragraph 5(e) to complete the proper removal and restoration. Tenant has notified the Landlord that the following entities have an interest in the Antenna Facilities and related equipment because of financing arrangements: NONE If Landlord removes the Antenna Facilities or related equipment, Landlord must give written notice to the above entities and to Tenant at the addresses provided, informing them that Antenna Facilities or related property have been removed and will be deemed abandoned if not claimed and the storage fees and other reasonable costs paid within 30 days. (e) If Landlord terminates this Agreement for public necessity, Landlord will use reasonable efforts to assist Tenant in the relocation of its facilities to a comparable site. (f) If Landlord abandons the use of the tower for public purposes, but the water tower is not sold or demolished and is at the time of abandonment structurally sound, this Agreement will continue in full force and effect until such time as the tower is sold or demolished or becomes structurally unsound. 11. Insurance. Tenant at its own cost shall obtain and maintain at all times during the term of this Lease Commercial General Liability insurance including contractual liability, protecting Landlord in an amount not less than One Million Dollars ($1,000,000) each occurrence and in an amount not less than One Million Dollars ($1,000,000) annual aggregate. Such insurance policy shall name the Lessor as an additional insured as respects liability arising out of and in connection with the presence of the Antenna Facilities at the Leased Premises. Such coverage shall not be canceled or materially altered to reduce the policy limits until the Lessor has received at least thirty (30) days' advance written notice of such cancellation or change. Tenant shall be responsible for notifying the Landlord of such change or cancellation. Such insurance policy shall contain a severability of interest clause. 12. Limitation of Landlord's Liability. If Landlord terminates this Lease other than as of right as provided in this Lease, or Landlord causes interruption of the business of Tenant or for any other Landlord breach of this Lease, Landlord's liability for damages to Tenant shall be limited to the actual and direct costs of equipment removal and relocation, or repair, as appropriate, and shall specifically exclude any recovery for value of the business of Tenant as a going concern, future expectation of profits, loss of business or profit or related damages to Tenant, except to the extent caused by the gross negligence or willful misconduct of Landlord, its agents, employees, or contractors. 13. Temporary Interruptions of Service. If Landlord determines that continued operation of the Antenna Facilities would cause or contribute to an immediate threat to public health and/or safety (except for any issues associated with human exposure to radio frequency omissions, which is regulated by the federal government), Landlord may order Tenant to discontinue its operation. Tenant shall immediately comply with such an order. Service shall be discontinued only for the period that the immediate threat exists. If Landlord does not give prior notice to Tenant, Landlord shall notify Tenant as soon as possible after its action and give its reason for taking the action. Landlord shall not be liable to Tenant or any other party for any interruption in Tenant's service or interference with Tenant's operation of its Antenna Facilities, except as may be caused by the gross negligence or willful misconduct of the Landlord, its employees or agents. If the discontinuance extends for a period greater than three days, either consecutively or cumulatively, Tenant shall have the right to terminate this Lease within its sole discretion for cause and without payment of the early termination fee. ;tO 14. Tenant Interference (a) With Structure. Tenant shall not interfere with Landlord's use of the Structure and agrees to cease all such actions which unreasonably and materially interfere with Landlord's use thereof no later than five (5) business days after receipt of written notice of the interference from Landlord. In the event that Tenant's cessation of action is material to Tenant's use of the Leased Premises and such cessation frustrates Tenant's use of the Leased Premises, within Tenant's sole discretion, Tenant shall have the immediate right to terminate this Lease for cause and without payment of the early termination fee. (b) With Higher Priority Users. If Tenant's Antenna Facilities cause impermissible interference with higher priority users above or with pre-existing tenants, as set forth in under Subparagraph 5(a), with respect to equipment installed by such tenants prior to the Commencement Date, Tenant shall take all measures necessary to correct and eliminate the interference. If the interference cannot be eliminated within five (5) business days after receiving Landlord's written notice of the interference, Tenant shall immediately thereafter cease operating its Antenna Facilities and shall not reactivate operation, except intermittent operation for the purpose of testing, until the interference has been eliminated. In the event that the Interference cannot be cured within a reasonable period of time, and in the event that Tenant's cessation of operations is material to Tenant's use of the Leased Premises and such cessation frustrates Tenant's use of the Leased Premises, within Tenant's sole discretion, Tenant shall have the immediate right to terminate this Lease for cause and without payment of the early termination fee. (c) Interference Study - New Occupants. Upon written notice by Landlord that it has a bona fide request from any other party to lease an area including or in close proximity to the Leased Premises ("Leased Premises Area"), Tenant agrees to provide Landlord, within sixty (60) days, the radio frequencies currently in operation or to be operated in the future of each transmitter and receiver installed and operational on the Leased Premises at the time of such request. Landlord may then have an independent, registered professional engineer of Landlord's choosing perform the necessary interference studies to determine if the new applicant's frequencies, operations, and power output levels will cause harmful radio interference to Tenant. Landlord shall require the new applicant to pay for such interference studies, unless the Landlord or other higher priority user requests the use. In that event, the Landlord or other higher priority user requesting the use of the premises, and Tenant and all other tenants occupying Landlord's Property, shall share the cost of performing the necessary interference studies, on a pro rata basis. (d) Interference - New Occupants. Landlord agrees that it will not grant a future lease on Landlord's Property to any party who is of equal or lower priority to Tenant, if such party's use is reasonably anticipated to interfere with Tenant's operation of its Antenna Facilities. Landlord agrees further that any future lease of Landlord's Property orthewater tower structure will prohibit a user of equal or lower priority ~from interfering with Tenant's Antenna Facilities. Landlord agrees that it will require any subsequent occupants of Landlord's Property or the structure of equal or lower priority to Tenant to provide Tenant these same assurances against interference. Landlord shall have the obligation to eliminate any interference with the operations of Tenant caused by such subsequent occupants. If such interference is not eliminated, Tenant shall have the right to terminate this Lease for cause and without payment of the early termination fee, or seek injunctive relief against the interfering occupant~ at Tenant's expense. Ail interference claims shall be resolved in accordance with the then prevailing interference rules and regulations of the FCC. 15. Assignment. The transfer of the rights and obligations of Metricom to a parent, subsidiary, or other affiliate of Metricom, or to any successor in interest or entity acquiring fifty-one percent (51%) or more of Metricom's stock or assets, shall not be deemed an assignment. As to other parties, this Lease may not be sold, assigned, or transferred without the written consent of the Landlord, such consent not to be u n reasonably withheld, delayed, or conditioned. Landlord hereby consents to the assignment by Tenant of its rights under this Lease as collateral to any entity which provides financing for the purchase of the equipment to be installed at the Leased Premises. 16. Disputes. Any claim, controversy or dispute arising out of this Lease not resolved within ten (1 0) days following notice of the dispute, shall be submitted first and promptlyto mediation. Each party shall bear its own costs of mediation. If mediation does not result in settlement within forty-five (45) days after the matter was submitted to mediation, either party may file a claim in arbitration in accordance with the applicable rules of the American Arbitration Association. The award rendered by the arbitrator may be entered as a judgment in any court having jurisdiction thereof. The arbitration shall be conducted in the county where the Leased Premises is located. Arbitration shall be the exclusive remedy of the parties. 17. Enforcement and Attorneys' Fees. In the event that either party to this Lease shall bring a claim in arbitration to enforce any rights hereunder, the prevailing party shall be entitled to recover costs and reasonable attorneys' fees incurred as a result of such claim. 18. Notices. All notices hereunder must be in writing and shall be deemed validly given if sent by certified mail, return receipt requested, or reliable overnight courier addressed as follows (or any other address that the party to be notified may have designated to the sender by like notice): 12 If to Landlord, to: City of Pearland 3519 Liberty Drive Pearland, Texas 77581 Attention: City Manager If to the Tenant, to: Metricom, Inc. Attn: Network Real Estate 980 University Avenue Los Gatos, CA 95032 19. Authority. Each ofthe individuals executing this Lease on behalf of the Tenant or the Landlord represents to the other party that such individual is authorized to do so by requisite action of the party to this Lease. 20. Binding Effect. This Lease shall run with Landlord's Property. This Lease shall extend to and bind the heirs, personal representatives, successors and assigns of the parties hereto. 21. Complete Lease; Amendments. This Lease constitutes the entire agreement and understanding of the parties and supersedes all offers, negotiations, and other agreement of any kind. There are no representations or understandings of any kind not set forth herein. Any modification of or amendment to this Lease must be in writing and executed by both parties. 22. Governing Law. This Lease shall be construed in accordance with the laws of the State of Texas. 23. Severability. If any term of this Lease is found to be void or invalid, such invalidity shall not affect the remaining terms of this Lease, which shall continue in full force and effect. 24. Representations. Landlord represents and agrees (a) that Landlord is the owner in fee of Landlord's Property and Leased Premises and (b) that Tenant shall have access to and quiet enjoyment of Landlord's Property and Leased Premises at all times throughout the Initial Term of this Lease and any renewal term, so long as Tenant is not in default beyond the expiration of any applicable cure period. 25. Memorandum of Lease. Upon Tenant's request, Landlord agrees to execute a Memorandum of Lease, in the form attached hereto as Exhibit C and incorporated herein by reference and acknowledges that Tenant may record such Memorandum of Lease in the official records of the county where Landlord's Property is located. If a Memorandum of Lease is in fact recorded, upon termination of this Lease, Tenant agrees to execute and record a quitclaim deed or such other document as may reasonably be required by Landlord or a title company to evidence the termination of Tenant's rights in Landlord's Property and the Leased Premises. 26. Counterparts. This Lease may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. A copy of this Lease bearing the signature of a party which is transmitted by facsimile shall have the same legal effect as the personal delivery of a copy of this Lease bearing an original signature. IN WITNESS WHEREOF, the parties hereto have set their hands and affixed their respective seals the day and year first above written. CITY OF PEARLAND, LANDLORD Glen 'R. Er~vin City Manager METRICOM, INC., a Delaware corporation, ""'-""'"'" ~_ .- . -;'.. Prin'~d - :D~cK L. Au :::"'"'" VICE PRESIDENT CORPO~AT£ Title Approved As To Form ROW Legal Department By: ~/¢~t Date: ~V~ v', CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California } County of Santa Clara } On November 8, 2000, before me, Anthony E. Rodriguez, Notary Public , personally appeared Dick L. 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. ~'"-_j.~ comm~lon # 1195246 [ WITNESS my hand and official seal ~ ~ Notc~ PubliC- Collfomla ~ J ........... -.El. Place Notary Seal Above Signature of Nc~rl~ublic 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: Number of Pages: Signer(s) Other Than Named Above: Capacity (les) Claimed by Signer Signer's Name: Top of Thumb Here [] Individual [] Corporate Officer [] Partner- [] Limited [] General [] Attorney in Fact [] Trustee E]~ Guardian or Conservator Other: i i Signer is Representing: STATE OF T6~A-~ § COUNTY OF ~ ¢.~'~¢¢ ~-~ f~ § BEFORE ME, the undersigned Notaw Public, on this day personally appeared ~ ~. ~r~;~ , known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he/she executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS ~k DAY OF ~a~¢ , A.D., 20 ~O ~OTARY ~U~IC, STAT~ OF  ~rinteO ~ame: ~i~* ~ .~0 My Commission Expires: ~/~ ]03 STATE OF § COUNTY OF § BEFORE ME, the undersigned Notary Public, on this day personally appeared , known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he/she executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS DAY OB:.:.:.:-:.:.:.: A.D. 20__ NOTARY PUBLIC, STATE OF TEXAS-' '-'-'-'-'-'-'-' Printed Name: My Commission Expires: EXHIBIT A This Exhibit is attached to that certain Lease Agreement dated as of ,2000, by and between METRICOM, INC., as Lessee, and the City of Peadand, Texas, as Lessor, and references all of that certain real property situate in the City of Pearland, County of Brazoria, State of Texas, described as follows: SURFACE ESTATE ONLY IN AND TO: A 0.499 acre tract of land out of the 19.9491 acre tract out of Lot Forty-eight (48) of the Zychiinski Subdivision, H.T. & B.R.R. Co. Survey, Section 2, Abstract 542, Brazoria County, Texas, and being more particularly described as follows: BEGINNING at a 1/2 inch iron pipe at the northeast corner of the aforementioned 19.9491 acre tract; Thence South along the east line of said 19.9491 acre tract a distance of 210.00 feet to a 1/2 inch iron rod for corner; Thence N 89° 47' W a distance of 103.41 feet to a 1/2 inch iron rod for corner. Thence North a distance of 210.00 feet to a 1/2 inch iron rod for corner in the north line of said 19.9491 acre tract; Thence S 89° 47' E along the north line of said 19.9491 acre tract a distance of 103.41 feet to the PLACE OF BEGINNING and containing 0.499 acre of land, more or less. SAVE AND EXCEPT this conveyance is made and accepted subject to: a. A Ten foot (10') utility easement along the North side of the above described property, as shown in instruments recorded in Volume 1508, Page 322, and Volume 1508, Page 775, Deed Records of Brazoria County, Texas. b. One-half (1/2) mineral interest, the royalties, bonuses, rentals and all other rights in connection with said interest, as conveyed to or reserved by Willaert vs. Willaert in instrument recorded in Volume 227, Page 586 of the Deed Records of Brazoria County, Texas, reference to which instrument is here made for all purposes. c. One-half (1/2) mineral interest, the royalties, bonuses, rentals, and ail other rights in connection with said interest, as conveyed to or reserved by Oscar J. Willaert in instrument recorded in Volume 786, Page 464 of the Deed Records of Brazoria County, Texas, reference to which instrument is here made for all purposes. d. Oil and Gas Lease as described in instrument to A. C. Felt, as Lessee, recorded in Volume 680, Page 9 of the Deed Records of Brazoria County, Texas. e. This conveyance is further made and accepted subject to any and all conditions, restrictions, reservations, covenants, and easements, if any, relating to the hereinabove described property, to the extent, and only to the extent that the same may still be in force and effect, shown of record in the County Clerk's Office of Brazoria County, Texas. ADDENDUM TO CITY OF PEARLAND SITE LEASE AGREEMENT WITH METRICOM, INC. (Exhibit "A" to Resolution No. R2000-121) This Agreement is entered into this ,//~ day of ,~,.~ .~,5 ~ ,2000, by and between the CITY OF PEARLAND, BRAZORIA COUNTY, TEXAS (hereinafter "City") and METRICOM, INC. (hereinafter "Metricom"). . WHEREAS, a Site Lease Agreement has been executed between City and Metricom for placement of antennae on the City's Alice Road Water Tower; and WHEREAS, Section 10(c) of the Agreement incorrectly states the tenant's liability for early termination; and WHEREAS, Metricom and City both desire to amend the agreement by adding mutually agreeable language with respect to Metricom's liability for eady termination. WITNESSETH: NOW THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt of which is hereby acknowledged, it is hereby agreed as follows: 1. Section 10(c) of the agreement is amended to read as follows: "10(c). Tenant's Liability for Early Termination. If Tenant terminates this Lease other than of right as provided in this Lease, Tenant shall pay to Landlord as liquidated damages for early termination, an amount equal to six (6) months' Rent at the then effective rate, unless Tenant terminates during the last six (6) months of any Term under Paragraph 4, in which event Tenant shall only be liable for the unpaid balance of the annual rent remaining in the then current Term of the Lease." 2. The effect of this Addendum is limited to the terms above and all other terms of the original Agreement endure as previously agreed. This Agreement may only be amended, modified, or supplemented by written agreement and signed by all parties. 3. Resolution No. R2000-121 shall be incorporated herein and made a part of this Agreement for all purposes. In witness whereof, the parties have hereunto set their hands and signatures on the date first above mentioned. M E~IC~C. Approved As To Form Printed Name:J] I I~J( I AU Title: VI CE PRESIBENT ROW Legal Department CORPORATE t Date: ATTEST: CITY OF PEARLAND, TEXAS a Texas municipal corporation 2 STATE OF TEXAS § COUNTY OF "~ra ~o~ ~ § BEFORE ME, the undersigned Notary Public, on this day personally appeared ~ ~'~ 1~. f~&u.~'l.t~' , known to me to be the person whose name is subscribed to the -: foregoing instrument and acknowledged to me that he/~,t~e executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS "~ $*" DAY OF ~)0-,'4r~ ~'¢,~ , A.D., 2000  Notary Public, ~{ate of Texas - Printed Name: My Commission Expires: 9/~-1/~)-~ STATE OF TEXAS § COUNTY OF § BEFORE ME, the undersigned Notary Public, on this day personally appeared , known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he/she executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS DAY OF , A.D., 20__ Notary Public, State of Texas Printed Name: My Commission Expires: 3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California } County of Santa Clara } On November 8, 2000, before me, Anthony E. Rodriguez, Notar7 Public , personally appeared Dick L. 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. WITNESS my h ~ ~r~,'~x Comm~ion ii 119524~ · and and official seal Place Notary Seal Above Sifdaatur lic oP'rlONAI. Though the information be/ow 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 Bate: Number of Pages: Signer(s) Other Than Named Above: Capacity (les) Claimed by Signer Signer's Name: Top of Thumb [] Individual [] Corporate Officer [] Partner - [] Limited [] General [] Attorney in Fact [] Trustee [] Guardian or Conservator [] Other: Signer is Representing: RECEIVED ricoche July 25, 2000 City Secretary 3519 Liberty Drive Pearland, TX 77581 RE: Agreement between Pearland, TX and_Metricom dated 4/19/99. Metricom's address for notice has changed. Metricom has moved its Corporate Offices from Los Gatos, California to San Jose, Califomia. As of July 27, 2000, any notices served upon Metricom shall be delivered to the following address: Metricom, Inc. 333 W. Julian Street San Jose, CA 95110 Attn: Government and Utility Contracts Administration Main Number: 408-282-3000 Please update your records. Thank you, ~Linda Wallace Contracts Manager 408- 282-3257 Metricom, Inc., 980 University Avenue, Los Gatos, CA 95032, Phone.408.399.8200, Fax,408.354.1024 ricochet' December 6, 2000 City of Pearland 3519 Liberty Drive Attn: City Manager Pearland, TX 77581 Re: Wireless Communications Facilities Lease with Metricom, Inc. Dear Madame or Sir: Please take notice that Metricom, Inc. has recently moved its corporate offices to a new location. The new mailing address for Metricom is: Metricom, Inc. 333 West Julian Street San Jose, CA 95111 Attention: Property Management Please send all relevant correspondence to this new address. As always, Metricom is dedicated to providing you with the best service possible. I will be the main contact for the administration of our agreement. Should you have any questions or concerns, please feel free to call me at (408) 282-3383. Tara Evans Property Administrator Me corn, nc, 333 Wes Ju an St eet, San Jose, CA 95110, Phone.408.282.3000, Fax.408.282.3001 Darrin M. Coker Nghiem V, Doan City Attorney Assistant City Attorney Telephone (281) 652-1678 Telephone (281) 652-1665 Telecopier (281) 652-1679 Telecopier (281) 652-1679 Lisa D. Jones Paralegal Telephone (261) 652-1664 Telecopier {281) 652-1679 July 10, 2001 Metricom Varun Pathria MS5295 333 West Julian Street San Jose, California 95110 Re: General Release and Termination Agreement - Communication Facility Lease (HOU0149) by and between City of Pearland and Metricom, Inc., for property located at 3702 Alice Dear Sir/Madam: Please find enclosed one fully executed original of the above-referenced document. Please contact Darrin Coker, City Attorney, at (281) 652-1678 if there are any questions. Sincerely, Lisa D. Jones /ldj Enclosure 3519 LIBERTY DRIVE · PEARLAND, TEXAS 77581 · (281)485-2411 · www.ci.pearland.tx.us GENERAL RELEASE AND TERMINATION AGREEMENT This General Release and Termination Agreement ("Agreement") dated May 24, 2001 by and between the City of Pearland, ("Releasor"), and METRICOM, INC., a Delaware corporation, ("Releasee"). In consideration of the promises made herein, Releasor and Releasee agree as follows: 1. Releasee wishes to terminate the Communication Facility Lease ("Lease") dated August, 2000 and entered into by and between Releasor and Releasee. 2. Releasor, on behalf of itself, its successors and assigns, and in consideration of payment in the amount of five thousand five hundred and five Dollars ($5505.00) hereby RELEASES, ACQUITS, AND FOREVER DISCHARGE Releasee, and its agents, servants, successors, adjustors, attorneys, heirs, executors, administrators and all other persons, firms, corporations, associations, or partnerships of and from any and all CLAIMS, ACTIONS, CAUSES OF ACTION, DEMANDS, RIGHTS, DAMAGES, COSTS, LOSS OF SERVICE, LOSS OF USE, EXPENSES AND COMPENSATION WHATSOEVER, has been sustained, or may be sustained, or in any way relating to the Lease, or any breach or alleged breach of the Lease. 3. Releasor acknowledges and agrees that this Release applies to any and all claims that Releasor may have against Releasee arising out of the Lease for damages, or losses, whether those damages or losses are known or unknown, foreseen or unforeseen, or patent or latent. 4. It is further understood and agreed that Releasor hereby EXPRESSLY RELEASES Releasee from any and all CLAIMS, ACTIONS, CAUSES OF ACTION, DEMANDS, RIGHTS, DAMAGES, COSTS, LOSS OF SERVICE, LOSS OF USE, EXPENSES AND COMPENSATION WHATSOEVER, which Releasor does not know or suspect to exist in his favor at the time of executing this release, which if known by him must have materially affected his settlement with the Releasee. It is further tmderstood and agreed that all rights under any statute which states that any release does not include the claims stated in the section are hereby EXPRESSLY WAIVED. Releasor understands and acknowledges that the significance and consequence of this waiver is that even if Releasor should eventually suffer additional damages arising out of the above described transaction, Releasor will not be permitted to make any claim for those damages. Furthermore, Releasor acknowledges that it intends these consequences even as to el/rims for damages that may exist as of the date of this Release but which Releasor does not know exist, and which, if known, would materially affect Releasor's decision to execute this Release, regardless of whether Releasor's lack of knowledge is the result of ignorance, oversight, error, negligence, or any other cause. 5. Releasor and Releasee agree that the agreement is terminated as of May 30, 2001. Both parties represent and warrant that they have not sold, assigned, or otherwise transferred any of the claims released by the Agreement. 6. Release and its consequences have been completely read and explained to Releasor by an 1 attomey, and that Releasor fully understands the terms of this Release. 7. Releasor acknowledges and represents that it has been apprised of all relevant information and data relevant to its claim and this Release. Releasor further acknowledges and represents that, in executing this Release, it has not relied on any inducements, promises, or representations made by Releasee or any party representing or serving Releasee, and that this Release contains the entire agreement between the parties hereto, and that the terms of this Release are contractual and not mere recital. 8. Releasor acknowledges and warrants that its execution of this Release is free and voluntary. 9. It is understood and agreed that this settlement is a compromise of a disputed claim, and that the payment made is not to be construed as an admission of liability on the part of Releasee, and that said Releasee deny liability therefore and intend merely to avoid litigation and buy their peace. I0. Neither party shall disclose any information set forth in this Agreement nor disseminate or distribute this Agreement or any information concerning the terms, covenants, or conditions hereof to any person, firm, or entity that is a landlord of Metricom, Inc. or who is directly or indirectly associated in any way with a landlord of Metricom other than a prospective transferee of a party's interests hereunder, without first obtaining the express written approval of the other party; provided however that either party may disclose the contents of this Agreement to any (i) of its directors, officers, employees, lawyers, accountants, or other third-party consultants or professionals whose responsibilities require access to such information; (ii) lender, investor, or other person to whom financial statements are provided; or (iii) in response to any legally binding demand for disclosure pursuant to court order or from any other properly constituted legal authority. 11. This Release may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. A copy of this Release bearing the signature of a party which is transmitted by facsimile shall have the same legal effect as the personal delivery of a copy of this Release beating an original signature. 2