§ 8. [Compensation to city.]

As compensation to city for the use and occupancy of its public roads, ways, highways, lanes, alleys, bridges, parks and other public places in the city, and in consideration for the other rights and privileges herein granted, company agrees to pay to the city on the 24th day of September, 1960, the sum of $2,924.00 and, further, to pay to city on September 1, 1961, and on each September 1, thereafter occurring during the continuance of this agreement, a sum of money equal to four percent of its gross receipts from billings for the 12-month period from July 1 to June 30, inclusive, next preceding such September 1—exclusive of receipts from (1) sales to industrial consumers, (2) sales for governmental pumping, and (3) street lighting—received by the company for said 12-month period (ending on the immediately preceding June 30) from its electrical lighting and power sales made direct by company to ultimate consumers for consumption within the corporate limits of the city, less a sum equal to the aggregate amount of any license, charge, fee, street, or alley rental, or any other charge, or levy, or character of tax, for use or occupancy of the public roads, ways, highways, lanes, alleys, bridges, parks or other public places in the city, and any pole tax or inspection fee tax, paid other than under this agreement to the city, or any agency, instrumentality, subdivision or successor of the city, by the company during those 12 months (ending August 31) next preceding said September 1 payment date. No deduction from the payment provided in the previous sentence will be made by company for any ad valorem taxes paid by company upon its property to city. "Sales to industrial consumers" shall include, but not be limited to, sales of electric energy used by a consumer principally for manufacturing, processing, mining, refining, irrigation, shipbuilding, construction, radio communication, operation of railroads, and other common carriers, and public utilities, including, but not limited to, pumping, sewerage, and drainage. "Sales for governmental pumping" are those sales to the city, United States, county, State of Texas, or to any governmental or political subdivision, unit, body, district, agency, instrumentality or wholly-owned corporation, of any of the foregoing, which sales, if any, are made under a pumping service classification, or rate schedule, available only to such governmental authorities.

Each payment hereinabove provided shall compensate the city for the use of its public roads, ways, highways, lanes, alleys, bridges, parks and other public places in the city, by company with its facilities for the 12-month period commencing upon, and extending from July 1 of the year of such particular payment.