§ 3. [Fees.]

In consideration of the foregoing and as full compensation for the operations of Grantee under the franchise herein granted, Grantee shall be obligated to pay to Grantor for each full calendar year during the term of this franchise an amount equal to four (4%) per cent of the gross receipts for such year received by Grantee from the sale of gas within the limits of Grantor for residential and commercial purposes billed on residential and commercial rates. Payment shall be made by the 10th day of each February for the preceding full or fractional calendar year.

On or before the 10th day of each February, Grantee shall give Grantor a statement showing the total amount of the gross receipts, as defined above, for the preceding full or fractional calendar year.

In the event Grantee agrees during the life of this franchise to make larger franchise payments to any municipality with whom it has or secures a franchise than the franchise payment provided for herein, then and in that event, the franchise payment to be made to the City of Sulphur shall be increased accordingly.

The payments made hereunder shall be credited against any excise, privilege or license tax now or hereafter imposed or levied by Grantor against Grantee, except that such payment shall not be credited against any general occupational license tax imposed or levied by Grantor in duplication of that imposed by the State of Louisiana under La. R.S. 47:358, as now written.