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REL: 5/22/96 EXHIBIT 1 PROPOSED FRANCHISE GRANT TO METRICOM, INC. 1. Definitions. 1.1 "Agency" means any governmental agency or quasi- governmental agency other than the city, including the FCC and the PUC. 1.2 "PUC" means the California Public Utilities Commission. 1.3 "City" means the City of Santa Ana. 1.4 "Effective Date" means the date this Franchise is accepted by first stated above. 1.5 "FCC" means the Federal Communications Commission. "Fee" means any assessment, license, charge, fee, imposition, tax (but excluding any utility users' tax), or levy lawfully imposed by any governmental body. 1.7 "Franchise" means the terms under which Metricom is permitted to attach, install, operate, maintain, remove, reattach, reinstall, relocate, and replace the Radios in the Public Right of Way as provided below. · .8 "Gross Revenues" means the gross dollar amount accrued on Metricom's books for Services provided to its customers residing or, in the case of businesses, whose principal executive office is located in, the City, excluding (i) the franchise fee required by Section 4.3 below, (ii) local, state, or federal taxes collected by Metricom that have been billed to the subscriber and separately stated on such bill, and (iii) revenue uncollectible from subscribers (i.e., bad debts) located in the City that were previously included in Gross Revenues. 1.9 "Laws" means any and all judicial decisions, statutes, constitutions, ordinances, resolutions, regulations, rules, tariffs, administrative orders, certificates, orders, or other requirements of the City or other Agency having joint or several jurisdiction over the parties to this Franchise, in effect either at the time of execution of this Franchise or at any time during the presence of Radios in the Public Right-of-Way. ~.[0 "Metricom" means Metricom, Inc., a corporation duly organized and existing under the laws of the State of Delaware, and its lawful successors, assigns, and transferees.