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City-owned pole or other property pursuant to this Franchise (the "Installation Date"), and shall equal the number of Radios Metricom then estimates it will install on City-owned poles or other property during the succeeding twelve (12) months multiplied by the Annual Fee. The Annual Fee for subsequent years shall be due and payable not later than thirty (30) days following each anniversary of the Installation Date and shall equal the number of Radios then installed pursuant to this Franchise multiplied by the Annual Fee, adjusted for the Prior Year Adjustment, as described immediately below. The Prior Year Adjustment shall either increase or decrease a subsequent year's Annual Fee to account for the installation or removal of Radios during the prior year, and shall equal the difference between (i) the number of Radios used to calculate the prior year's Annual Fee multiplied by twelve (12), and (ii) the actual number of Radio Months which occurred during such year, multiplied by one-twelfth of the Annual Fee. 4.7 The Annual Fee shall be increased effective January of the first year of each renewal term hereof based on the percentage change in the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index of all items, Base 1982-1984, for the Anaheim- Santa Ana Metropolitan Statistical Area which occurred during the previous term or renewal term. 4.8 Notwithstanding Section 4.6, in lieu of the Annual Fee, and solely with respect to the first fifty (50) Radios installed (or Radios installed in substitution for any such Radios) by Metricom on City-owned poles or other city-owned property, City shall be entitled to receive: 4.8.1 up to fifty (50) subscriptions to use Metri- com's Ricochet Services in the City for so long as Metricom maintains such Radios in use on the appropriate number of city-owned poles or other city-owned property pursuant to this Franchise. Such option may be exercised by City in increments of one (1) subscription in lieu of the Annual Fee for one (1) Radio. Metricom shall provide such subscriptions at such time as Metricom is providing commercial service in such area, provided that prior to such service date City shall not be entitled to receive the Annual Fee or other compensation in lieu thereof. In the event the City elects to receive fifty (50) or less subscriptions, Metricom will not be required to pay the Annual Fee for the number of Radios installed on City- owned poles or other City-owned property equal to the number of subscriptions the City elects to receive. The number of Radios installed on city-owned poles or other city-owned property in excess of the number of subscriptions the City elects to receive shall be subject to the Annual Fee set forth above. City's use of the subscriptions shall be subject to Metricom's standard Ricochet Service terms and conditions. city shal~ be required to purchase at its sole cost and expense any equipment and software required to use the 6