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e e 3.4 Compliance with Laws. Metricom shall comply with all applicable Laws in the exercise and performance of its rights and obligations under this Use Agreement. 3.5 Obtaining ~equired Permits. If the attachment, installation, operation, maintenance, or location of the Radios in the Municipal Right of Way shall require any permits, Metricom shall, if required under applicable City ordinances, apply for the appropriate permits and pay any standard and customary permit fees. City shall promptly respond to Metricom's requests for permits and shall otherwise cooperate with Metricom in facilitating the deployment of Ricochet@ in the Municipal Right of Way in a reasonable and timely manner. The proposed locations of Metricom's planned initial installation of Radios shall be provided to the City promptly after Metricom's review of available street light maps and prior to deployment of the " Radios. 3.6 Notice of Location of Radios. Upon the completion of installation, Metricom promptly shall furnish to the City suitable documentation showing the exact location of the Radios in the Municipal Right of Way. 4 COMPENSATION; DISCOUNTS; UTILITY CHARGES. Metricom shall be solely responsible for the payment of all lawful Fees in connection with Metricom's performance under this Use Agreement, including those set forth below. 4.1 Right-of-Way Fees. In order to reimburse City for any costs it may incur in connection with Metricom's entry upon and deployment with the Municipal Right of Way, Metricom shall pay to the City, on an annual basis, an amount equal to five percent (5%) of Metricom's Gross Revenues (the "Right-of-Way Fee"), which amount will be collected from subscribers of the Services with billing addresses in the City and remitted to City as provided .herein. The compensation provided under this section shall be payable for the period commencing upon the date that Metricom first provides Services 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 45th 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 Gross Revenues for the period covered by the payment. If Metricom discovers that it has failed to pay the entire or correct amount of compensation due, the City shall be paid by Metricom within thirty (30) days of discovery of the error or detennination of the correct amount. Right-of-Way Use Agreement City a/La Parle:: Metricom, Inc. page 5 0/13 5/21/1999 12:43 PM la porle2.doc [05mas28row98ual]