§ IV. [Taxes paid to town.]

The company, for and in consideration of the granting of this franchise and as rental for the occupation and use or easement over, upon and beneath the streets, avenues, easements, rights-of-way, alleys, highways, sidewalks, paths, bridges, structures and other public places in the municipality, and, except as set forth herein, in lieu of any and all "other municipal taxes" as hereinafter defined, shall for the term of this franchise, pay to the municipality each year a total aggregate sum of three percent of the company's gross receipts (exclusive of sales or gross receipts taxes) collected during each year from end users and consumers on account of gas sold and consumed within the corporate limits of the municipality under the company's approved residential, commercial and industrial rate schedules as in effect from time to time, excepting there from, the gross receipts for gas sold to industrial consumers under special contract, gas sold for the generation of electricity, the sale of gas by any independent third-party marketer, the payment of sales or gross receipts taxes and franchise fees, and gas sold to the municipality for its own use. The company shall make such payments quarterly on or before the last day of the month following the end of each calendar quarter of each year while this provision shall remain in force and effect.

For the purpose of determining said gross receipts, the books of the company shall at reasonable times be subject to inspection by duly authorized officials of the municipality, upon written request, giving reasonable notice. Notwithstanding anything herein to the contrary, the payments by the company, provided for above, shall continue only so long as the company is not prohibited from making the same by any lawful authority having jurisdiction. As used in this section, the term, "other municipal taxes" means and includes any and all other franchise, license, privilege, instrument, occupation, excise or revenue taxes and any and all other fees, charges or exactions (except excise taxes imposed by the municipality and actually collected by the company from its consumers, municipal occupation taxes lawfully assessed and collected on a nonutility business of the company, general ad valorem taxes and special assessments for local improvements imposed by ordinance of the municipality and uniformly imposed and collected from other persons engaging in the same or similar activities and except for such other compensatory service fees which may be agreed to by the parties, separately, and in writing) upon all or any portion of the business, revenue, property or activities of the company located or conducted within the municipality during the term of this franchise.