Section 1. That in consideration of the benefits to be derived by the City of Mt. Hope, Kansas, hereinafter referred to as City, and its inhabitants, there is hereby granted Sedgwick County Electric Cooperative Association, Inc., a Kansas Corporation, hereinafter sometimes designated as Company, the Company being a corporation, operating a system for the transmission of electric current within Sedgwick County, Kansas, through which it has built transmission lines, the right, privilege, and authority for a period of five (5) years from the 1st day of May, 2011, and such additional extensions pursuant to Section 5 hereof, to sell and distribute electricity for all purposes to the City, its inhabitants and additions thereto, within the boundaries of the City as follows:

Tract 1: The Southeast Quarter (SE/4) Section Sixteen (16), Township Twenty-five (25) South, Range Three (3) West of the 6th P.M., Sedgwick County, Kansas; and

Tract 2: That part of the following property lying within the Southeast Quarter of the Northeast Quarter of Section Sixteen (16), Township Twenty-Five (25) South, Range Three (3) West of the Sixth Principal Meridian, Sedgwick County, Kansas:

       A tract of land in the South half of said Northeast Quarter, described as follows: beginning at the Southwest corner of said Quarter Section, thence North along the West line of said Quarter Section 123.3 feet, said West line having a bearing of North 0 degrees 04 minutes East; thence South 88 degrees 42 minutes East 2575.3 feet; thence North 21 degrees 11 minutes East 85.1 feet; then South 88 degrees 42 minutes East to a point on the East line 137.1 feet North of the Southeast corner of said Quarter Section; thence South 0 degrees 14 minutes East, 137.1 feet along said East line to the south line of said Quarter Section; thence South 89 degrees 52 minutes West, along said South line to the place of beginning.

Tract 3: Government Lot Five (5), also known as the West Half of the Northwest Quarter lying South of the Arkansas River in Section Fifteen (15), Township Twenty-Five (25) South, Range Three (3) West, Sedgwick County, except that part deeded to State for Highway.

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 return to the city during the term of this franchise Five Percent (5%) of its gross revenue from all sales of electric energy within the corporate limits of the City, such payment to be made semiannually on April 30 and October 31 for the preceding semi-annually period

Section 3. The Company, its successors and assigns, in the construction, 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 from any and all damage, injury and expense caused by the sole negligence of the Company, its successors and assigns, or its or their agents or servants.

Section 4. The Company may occupy and use the several streets, avenues, alleys, bridges, parks, easements and public places of the city, within the franchise area, for the placing and maintaining of equipment and property necessary to carry on its business. The Company will adhere to and comply with the Federal, State and City laws and regulations governing utilities and such zoning regulations, right of way use and excavation regulations and street and cutting ordinances as are presently enacted or may be promulgated by the City during the franchise term.

Section 5. Within sixty (60) days from and after the passage and approval of this ordinance, the Company shall file with the City Clerk of the City its unconditioned written acceptance of this ordinance.

Section 6. The rights and privileges of this franchise shall remain in effect and shall automatically renew for three (3) additional terms of two (2) years each upon the expiration of such initial five (5) year term or renewal thereof unless City, through its Clerk, shall notify Company in writing at least one hundred twenty (120) days before the expiration of the term or any renewal that City will not renew the franchise.

Section 7. 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 for two (2) consecutive weeks as required by law, and acceptance by the Company.

Section 8. 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 9. This franchise is granted pursuant to the provisions of K.S.A. § 12-2001.