AN ORDINANCE GRANTING SOUTHERN PIONEER ELECTRIC COMPANY, A KANSAS CORPORATION AND DIVISION OF MID-KANSAS ELECTRIC COMPANY, ITS SUCCESSORS AND ASSIGNS, AN ELECTRIC FRANCHISE, PRESCRIBING THE TERMS THEREOF AND RELATING THERETO, AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES INCONSISTENT WITH OR IN CONFLICT WITH THE TERMS THEREOF

SECTION 1. That in consideration of the benefits to be derived by the City of Medicine Lodge, Kansas, and its inhabitants, there is hereby granted Southern Pioneer Electric Company, a Kansas Corporation, hereinafter sometimes designated as “Company:, said Company being a corporation operating a system for the transmission of electric current between two or more incorporated cities in the State of Kansas, into and through which it has built transmission lines, the right, privilege, and authority for a period of twenty (20) years from the 2 day of August, 2010, to occupy and use the several streets, avenues, alleys, bridges, parks, and public places of said City, for the placing and maintaining of equipment and property necessary to carry on the business of selling and distributing electricity to the City of Medicine Lodge, Kansas, its inhabitants and additions thereto, and through said City and beyond the limits thereof; to obtain said electricity from any source available; and to do all things necessary or proper to carry on said business in the City of Medicine Lodge, Kansas. The City provides that the term of the franchise is twenty (20) years but that the various provisions may be reviewed by the City and Southern Pioneer every five (5) years during the twenty (20) year period.

SECTION 2. As further consideration for the granting of this franchise, and in lieu of any city occupation, license or revenue taxes, the Company shall pay to the City during the term of this franchise five percent (5%) of its gross revenue from all sales of the electric energy within the corporate limits of said City. Payment to be made monthly, on or about the last day of the month, for the preceding monthly period.

SECTION 3. That the Company, its successors and assigns, in the construction, maintenance, and operation of its electric transmission, distribution and street lighting system, shall use all reasonable and proper precaution to avoid damage or injury to persons or property, and shall hold and save harmless the City of Medicine Lodge, Kansas, from any and all damage, injury and expense caused by the operations of said Company, its successors and assigns, or its or their agents, servants or contractors.

SECTION 4. That within sixty (60) days from and after the passage and approval of this ordinance, said Company shall file with the City Clerk of said City of Medicine Lodge, Kansas, its unconditioned written acceptance of this ordinance.

SECTION 5. That any and all ordinances in conflict with terms hereof are hereby repealed.

SECTION 6. That this ordinance shall become effective and be in force and shall be and become a binding contract between the parties hereto, their successors and assigns from and after its passage, approval, publication as required by law, and acceptance by Company.

SECTION 7. That this ordinance, when accepted as above provided, shall constitute the entire agreement between the City and the Company relating to this franchise and the same shall supersede and cancel any prior understandings, agreements or representations regarding the subject matter hereof, or involved in negotiations pertaining thereto, whether oral or written.

SECTION 8. This franchise is granted pursuant to the provisions of K.S.A. 12-2001.

SECTION 9. Should the State Corporation Commission take any action with respect to this franchise ordinance, which would or may preclude Southern Pioneer Electric Company from recovering from its customers any cost provided for hereunder, the parties hereto shall renegotiate this ordinance in accordance with the Corporation Commission’s ruling.

(8-2-2010)