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                                                                 Exhibit 10.1(c)

                              EMPLOYMENT AGREEMENT

This Agreement, entered into and effective as of this 21st day of February,
2001, is by and between Ralph Derrickson ("Derrickson") and Metricom,
Incorporated ("MCOM").

Whereas, MCOM, a Delaware corporation with headquarters at 333 West Julian
Street, San Jose, California, desires to employ Derrickson, a Washington State
resident, as its interim Chief Executive Officer, and Derrickson is willing to
accept employment, on the terms and conditions of this Agreement,

In consideration of the mutual covenants herein, the parties agree:

1.      POSITION AND DUTIES. Derrickson shall be employed by MCOM in the
        position of Interim Chief Executive Officer. Derrickson shall have such
        reasonable duties and responsibilities as may be required from time to
        time by the Board of Directors of MCOM consistent with Derrickson's
        position as Chief Executive Officer. The Board expressly agrees to meet
        with Derrickson no less frequently than once every two weeks during the
        CEO Term.

2.      CEO SEARCH. MCOM agrees to engage a reputable executive search firm to
        engage a nationwide search for a "permanent" Chief Executive Officer
        within thirty (30) days of the date of this Agreement.

3.      TERM. The Initial Term of this Agreement as Interim CEO shall run from
        February 21, 2001 through June 30, 2001 ("Initial Term"). During the
        Initial Term, this Agreement may only be terminated for "Cause."
        Derrickson's employment as Interim CEO may be terminated by written
        notice by either party at the conclusion of the Initial Term. If not
        terminated at or before the conclusion of the Initial Term, Derrickson's
        term of employment with MCOM as Interim CEO shall automatically extend
        for additional, consecutive two month periods, on the same terms and
        conditions as the Initial Term (collectively "CEO Term"). If Derrickson
        is employed by the Company (but not including any time spent as a
        consultant pursuant to Section 4 below) beyond August 31, 2001 then this
        Agreement shall be renegotiated between the parties on terms at least as
        favorable to Derrickson as set forth in this Agreement.

4.      CONSULTANT. Unless this Agreement is terminated for Cause, then at the
        conclusion of Derrickson's employment as Interim CEO, MCOM agrees to
        hire Derrickson as a consultant. This consultant arrangement shall be
        for a minimum term of twelve months commencing immediately upon the
        conclusion of Derrickson's employment as Interim CEO, and may only be
        terminated for "Cause" ("Consultant Term").

5.      LIMITATIONS ON OBLIGATION. In recognition of family obligations,
        Derrickson shall not be required to work or travel for MCOM during the
        weekends. In addition, the parties understand that there are some duties
        that can be performed by Derrickson from


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        Washington State. To the extent that Derrickson can perform his duties
        from Washington State, MCOM expressly consents to his doing so.

6.      COMPENSATION DURING THE CEO TERM.

        (a) Base Salary. MCOM shall initially pay Derrickson a monthly gross
        base salary in the amount of One Hundred Fifty Thousand Dollars and No
        Cents ($150,000.00) ("Base Salary") in accordance with MCOM's standard
        payroll processing schedule. Derrickson's Base Salary shall not be
        decreased absent Derrickson's prior written consent.

        (b) Non-Discretionary Bonus for Additional Funding.

               1) In recognition that Derrickson's services on behalf of MCOM
               may attract additional third party investment in MCOM, MCOM shall
               pay Derrickson an automatic and non-discretionary bonus equal to
               one and one-half percent (1.5%) of the cash value of all new
               investment funds received by MCOM arising from negotiations
               entered into during the CEO Term and for a period of twenty-four
               months thereafter (cumulatively, the "Bonus Period"). For
               purposes of this Section 6, new investment funds received by MCOM
               during the Bonus Period shall include, without limitation, all
               venture capital and other private equity investment plus any
               amounts secured by MCOM through a new line of credit, loan,
               convertible note, or other debt arrangement. For each such line
               of credit or other debt arrangement, the non-discretionary bonus
               payment shall be calculated based on the amount that is actually
               paid to MCOM. Multiple draws on any line of credit or debt
               arrangement shall be taken into account separately in calculating
               the bonus, and no draws on a line of credit or debt arrangement
               that may create a bonus obligation to Derrickson shall be
               undertaken without approval of Metricom's Board of Directors.

               To the extent that new investment funds secured during the Bonus
               Period include one or more investments received from Vulcan
               Ventures (where each separate investment shall be referred to
               singularly as a "Vulcan Investment"), then the non-discretionary
               bonus provided for above, with respect only to any Vulcan
               Investment shall be capped at a maximum of Three Hundred and
               Fifty Thousand Dollars ($350,000).

               The cap described in the immediately preceding paragraph shall be
               applied separately to each distinct Vulcan Investment, on a
               non-aggregated basis. For clarity, and by way of example, if
               Vulcan Ventures participates in multiple investment rounds during
               the Bonus Period committing "x" amount of dollars payable in
               separate rounds with each payment contingent upon MCOM's
               satisfaction of specified conditions at each round, the $350,000
               limitation shall apply separately to the amount received at each
               round. To the extent, if any, that additional investors (i. e.,
               investors other than Vulcan Ventures) participate in such rounds
               the cap shall not apply as to investments from such additional
               investors.


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               During the Bonus Period, the non-discretionary bonus shall be due
               and payable to Derrickson regardless of whether Derrickson is
               employed by or providing services to MCOM at the time any
               additional funding is received.

               (2) Non-Discretionary Bonus for Liquidity Event. In addition to
               any non-discretionary bonus described in (b)(1) above, Derrickson
               shall also receive an automatic and non-discretionary bonus if
               there is a Liquidity Event during the Bonus Period. A "Liquidity
               Event" shall mean: (i) any sale, exchange, or transfer of
               substantially all of the assets of MCOM, (ii) any sale, exchange
               or transfer involving the common stock of MCOM if, immediately
               following the transaction, the persons who held MCOM common stock
               (or securities convertible into MCOM common stock) hold less than
               a majority of the combined equity of MCOM (or any successor
               entity), or (iii) any other sale or similar transaction in which
               MCOM undergoes a change of majority shareholder control in
               exchange for consideration. Upon the occurrence of a Liquidity
               Event, Derrickson shall receive a non-discretionary bonus equal
               one and a half percent (1.5%) of the purchase price paid in the
               Liquidity Event.

               (3) Timing and Nature of Payment. Each non-discretionary bonus
               provided for herein shall be payable on or before the closing of
               the respective transactions. The parties further agree that, in
               each calendar year of the Bonus Period, the first One Million
               Dollars ($1,000,000) of any non discretionary bonus provided for
               herein shall, at Derrickson's election, be payable in cash or in
               shares of MCOM common stock (or in securities convertible to MCOM
               common stock), or in a combination thereof. If the cumulative
               non-discretionary bonus exceeds $1,000,000 in any calendar year
               during the Bonus Period, then the amount in excess of $1,000,000
               shall be paid exclusively in shares of MCOM common stock (or in
               securities convertible to MCOM common stock). In all cases where
               the bonus is paid in the form of stock or other securities, the
               number of shares due and payable to Derrickson shall be
               calculated on the basis of the fair market value of the stock
               prior to the public announcement or closing of the applicable
               transaction. Thus, the total number of shares delivered to
               Derrickson will be calculated based on the value of MCOM prior to
               any investment which triggers the non-discretionary bonus.

7.      COMPENSATION DURING THE CONSULTANT TERM

        During the Consultant Term, Derrickson shall be compensated at the daily
        rate of Five Thousand Dollars ($5000.00) a day. Derrickson shall not be
        expected to work more than ten hours per day. If additional hours are
        required, then they shall be compensated at the hourly rate of $250 per
        hour. MCOM shall pay Derrickson for a minimum of three days of work a
        month -- even if no services are required in a month.

8.      FRINGE BENEFITS. Derrickson shall be entitled to the benefits provided
        to officers of MCOM in accordance with its Personnel Policies (including
        but not limited to health


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        insurance) and consistent with Derrickson's position as Chief Executive
        Officer. At Derrickson's sole election, he may obtain or retain
        individual health, life, disability policies (and chose not to
        participate in MCOM's group insurance policies). In such an event, then
        MCOM agrees to reimburse Derrickson for all premium costs related to
        such individual policies during the CEO and Consultant Terms.

9.      EXPENSES. In addition, during both the CEO and Consultant Terms
        Derrickson shall be entitled to reimbursement of all business expenses
        incurred by Derrickson for business conducted on behalf of MCOM, as
        supported by reasonable documentation evidencing such business expenses.


10.     TRAVEL. MCOM shall pay for Derrickson's travel, and the travel of his
        immediate family, to and from the Puget Sound area (including, but not
        limited to, Seattle and Port Angeles, Washington) and California. The
        Company understands that Derrickson's residence in the Puget Sound area
        shall necessitate frequent trips between California and the Puget Sound
        area. The Company shall also provide Derrickson with transportation
        (including, but not limited to, an automobile at Derrickson's choice) in
        the San Jose area and for travel to and from his residences in the Puget
        Sound area.

11.     HOUSING. The Company will provide Derrickson with temporary housing in
        the San Jose area during the CEO Term. This temporary housing shall be
        of premium quality, tastefully furnished and sufficient to allow
        extended visits by Derrickson's immediate family. The parties understand
        that a house, apartment, condo or hotel suite of rooms could suit this
        requirement.

12.     PAID LEAVE. The parties do not expect Derrickson to take vacation during
        the Initial Term. If the CEO term continues beyond the Initial Term,
        then Derrickson shall accrue a maximum of four (4) weeks paid vacation
        on an annualized basis to be prorated based on five (5) paid vacation
        days for each three month term or fraction thereof employed. During the
        CEO Term, there shall be no limitation on the amount of paid sick days
        available to Derrickson. Derrickson shall additionally be entitled to
        take all paid company holidays off during the CEO Term.

13.     TERMINATION. This Agreement may only be terminated during the CEO or the
        Consultant Term only upon the occurrence of one or more of the following
        events:

        (a)    TERMINATION BY THE COMPANY FOR CAUSE. As used herein, Cause means
               the following:

               (i)    the willful and continued failure by Derrickson to
                      substantially perform his material duties as Chief
                      Executive Officer as set forth under this Agreement;
                      provided, however, that such termination shall not be
                      effective unless and until MCOM delivers to Derrickson a
                      written Notice of Cause specifically identifying the
                      manner in which MCOM believes Derrickson has not
                      substantially performed his duties as Chief Executive
                      Officer and providing Derrickson with a period of ten (10)
                      days from the


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                      date of receipt of the Notice of Cause (the "Cure Period")
                      in which to cure said performance deficiencies as stated
                      in the Notice of Cause and Derrickson fails to cure the
                      performance deficiencies within the Cure Period; or

               (ii)   Derrickson's misappropriation of MCOM's funds or other
                      material dishonesty causing significant negative impact to
                      the Company;

               (iii)  Derrickson's conviction of a felony;

               (iv)   Derrickson's material breach of this Agreement.

        (b)    DERRICKSON'S TERMINATION FOR "GOOD REASON." Derrickson may
               terminate this Agreement at any time for "Good Reason." For
               purposes of this Agreement, "Good Reason" shall mean:

               (i)    a breach by MCOM of the specific terms of this Agreement;

               (ii)   during the CEO Term, the assignment of any duties
                      inconsistent with Derrickson's status as Chief Executive
                      Officer or a substantial adverse alteration in the nature,
                      conditions or responsibilities of Derrickson's position as
                      Chief Executive Officer;

               (iii)  during the CEO Term, a reduction in Derrickson's Base
                      Salary as in effect as of the date hereof or as the same
                      may be increased from time to time;

               (iv)   the failure of MCOM, without Derrickson's written consent,
                      to pay Derrickson any portion of his Base Salary at its
                      then existing current rate; or

               (v)    the failure of MCOM, without Derrickson's written consent,
                      to provide Derrickson with benefits consistent with his
                      position as Chief Executive Officer (as said benefits are
                      further described herein).

               Provided that Derrickson shall have no right to terminate this
               Agreement pursuant to this Paragraph unless Derrickson provides
               MCOM with a written Notice of Good Reason Termination describing
               the act or acts potentially giving rise to Derrickson's
               termination for Good Reason and providing MCOM a period of ten
               (10) days from the date of receipt of said Notice (the "Cure
               Period") in which to cure said act or acts as described in
               Derrickson's Notice of Good Reason Termination and MCOM fails to
               cure said acts or acts within the Cure Period.

               In the event Derrickson terminates his employment for Good
               Reason, MCOM shall pay Derrickson severance pay at the
               Derrickson's then current rate of Base Salary for the duration of
               the applicable stated Term (i.e. CEO Term or Consultant Term as
               applicable). Such severance payment under this Paragraph shall be
               payable in a lump sum payment upon Derrickson's effective date of


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               termination. In addition, upon termination of Derrickson's
               employment under this Paragraph, MCOM shall also continue all of
               Derrickson's benefits at their current existing amounts as of the
               date of termination, at MCOM's sole expense, for the duration of
               the applicable stated Term (i.e. CEO Term or Consultant Term as
               applicable).

14.     NOTICES. All notices hereunder shall be in writing and personally
        delivered or sent by certified or registered mail, postage prepaid,
        return receipt requested, addressed as follows:

                  IF TO MCOM:               Chair, Board of Directors
                                            333 West Julian St.
                                            San Jose, CA. 95110

                  IF TO DERRICKSON:         Ralph C. Derrickson
                                            [address deleted]

        Either party may direct the other, by notice as provided herein, to
        deliver notice in the future to another address.

15.     MEDIATION. In the event any controversy, claim or dispute arising out of
        this Agreement cannot be settled by the parties, the parties agree to
        appoint a mediator to attempt to settle such controversy or claim. The
        parties agree to appoint a mediator by mutual agreement. The parties
        agree to first proceed with mediation with respect to any controversy,
        claim or dispute arising out of this Agreement. The parties agree to
        attend and to participate in good faith for one full day of a mediation
        session; provided, however, that the parties may agree to participate in
        additional mediation sessions by a writing signed by both parties
        specifying the number of additional sessions upon which they agree to
        participate. The parties agree to each be responsible for its or his own
        costs, including reasonable attorneys' fees, associated with the
        mediation, unless otherwise agreed to by the parties.

16.     ENTIRE AGREEMENT. This Agreement contains the entire agreement of the
        parties with respect to the employment of Derrickson. This Agreement
        shall terminate and supersede any prior written or oral agreements or
        understandings between the parties hereto regarding the terms and
        conditions of MCOM's employment of Derrickson.

17.     AMENDMENT; NON-WAIVER. Except as otherwise specifically provided, no
        amendment or modification of this Agreement shall be valid, unless the
        same is in writing and signed by the party against whom it is sought to
        be enforced.

18.     GOVERNING LAW/VENUE. This Agreement and all actions or suits hereunder
        shall be governed by and construed in accordance with the laws of the
        State of California. Both parties agree that any suit or action relating
        to this Agreement shall be instituted and commenced exclusively in King
        County Superior Court or in the United States District Court for the
        Western District of Washington, sitting in Seattle, Washington. Both
        parties waive the right to change such venue (except by mutual consent)
        and hereby consent to the jurisdiction of such courts for such claims.


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19.     BINDING EFFECT. All rights, remedies and liabilities herein given to or
        imposed upon the parties shall extend to, inure to the benefit of and
        bind, as the circumstances may require, the parties and their respective
        heirs, personal representatives, administrators, successors and
        permitted assigns.

20.     ATTORNEYS' FEES. The prevailing party in any suit or action to enforce
        this Agreement, or any term hereof, shall be entitled to recover all of
        his or its costs and expenses incurred in connection with such suit or
        action, including without limitation, reasonable attorneys' fees
        incurred at all levels and proceedings.

21.     SEVERABILITY. If any one or more provisions contained in this Agreement
        shall be held to be invalid, illegal or unenforceable in any respect
        under the law applicable hereto, the validity, legality and
        enforceability of all remaining provisions shall not in any way be
        affected or impaired and all provisions shall be enforceable to the full
        extent permitted under applicable law.

22.     HEADINGS. The paragraph headings in this Agreement are for convenience
        of reference only and shall not be given effect in the construction or
        interpretation hereof.

23.     COUNTERPARTS. This Agreement may be executed in two or more
        counterparts, each of which shall be deemed an original and all of which
        together shall constitute one and the same instrument. A facsimile shall
        be the same as an original for purposes of this Agreement.

24.     CERTAIN PAYMENTS. The parties believe that the payments hereunder do not
        constitute "Excess Parachute Payments" under Section 280G of the
        Internal Revenue Code (the "Code"). Notwithstanding such belief, if any
        payment under this Agreement is determined to be an "Excess Parachute
        Payment," MCOM shall pay to Derrickson an additional amount (the "Tax
        Payment") such that (x) the excess of all Excess Parachute Payments
        (including any Tax Payment under this Section 24) over the sum of the
        excise tax thereon under Section 4999 of the Code and income tax thereon
        under Subtitle A of the Code and state law is equal to (y) the excess of
        all Excess Parachute Payments (excluding any Tax Payment under this
        Section 24) over applicable income tax thereon under Subtitle A of the
        Code and state law.

IN WITNESS WHEREOF the parties have executed this Agreement as of the day first
hereinabove written.

METRICOM

                        By: /s/ WILLIAM D. SAVOY                March 29, 2001
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                        Authorized Member, Board of Directors        Date


RALPH DERRICKSON:
                        /s/ RALPH C. DERRICKSON                 March 30, 2001
                        -------------------------------------   --------------
                                                                     Date


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