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34 • 4 COMPENSATION; UTILITY CHARGES. Metricom shall be solely responsible for the payment of all lawful Fees in connection with Metricom's performance under this Use Agreement, in accordance with the terms set forth below. 4.1 Right-of-Way Management Reimbursement. In order to reimburse City for any right-of-way management costs it may incur during the term of this Use Agreement following the initial deployment of the Radios in connection with Metricom's entry upon and deployment within the Public Right of Way, Metricom shall pay to the Citv, on an annual basis, an amount equal to one percent (1%) of Adjusted Gross Revenues (the "Right- of-Way Management Reimbursement'), which amount may be collected from subscribers of the Services with billing addresses in the City and remitted to City as provided herein. The parties agree that such Right-of-Way Management Reimbursement represents a fair estimate of the costs of continuing management of the Public Right of Way utilized by Metricom and that such Right-of-Way Management Reimbursement is not a franchise fee or payment for use of the Public Right of Way. The Right-of-Way Management Reimbursement shall be payable for the period commencing upon the date that Services are offered to commercially paying subscribers within the City using Radios installed pursuant to this Use Agreement and ending on the date of termination of this Use Agreement, • and shall be due on or before the 4511' day after the end, of each calendar year or fraction thereof. Within forty-five (45) days after the termination of this Use Agreement, compensation shall be paid for the period elapsing since the end of the last calendar year for which compensation has been paid. Metricom shall furnish to the City with each payment of compensation required by this section a statement, executed by an authorized officer of Metricom or his or her designee, showing the amount of Adjusted Gross Revenues for the period covered by the payment. If Metricom discovers any error in the correct amount of compensation due, the City shall be paid within thirty (30) days of discovery of the error or determination of the correct amount. Any overpayment to the City through error or otherwise shall be refunded.or offset against the next payment clue. Acceptance by the City of any payment due under this section shall not be deemed to be a waiver by the City of any breach of this Use Agreement occurring prior thereto, nor shall the acceptance by the City of any such payments preclude the City from later establishing that a larger amount was actually due or from collecting any balance due to the City. City may, at any time, at City's sole option, upon ninety (90) days written notice, require Metricom to discontinue the Right-of-Way Management Reimbursement compensation. Upon receiving such notice Metricom shall, no later than • Right-of-DVS y Permit and Facility Use Agreement City of St.Anthony::Metricom,Inc Page 5 of 15