AN ORDINANCE GRANTING RISC COMMUNICATIONS, INC., d/b/a Nex-Tech, A SUBSIDIARY OF RURAL TELEPHONE SERVICE CO., INC., A KANSAS CORPORATION, A FRANCHISE TO USE THE STREETS, AVENUES, BOULEVARDS, ALLEYS AND OTHER PUBLIC PLACES IN THE CITY OF OSBORNE, COUNTY OF OSBORNE, STATE OF KANSAS, TO CONTINUE TO CONDUCT THE BUSINESS OF CONSTRUCTING, INSTALLING, MAINTAINING, MANAGING, AND OPERATING A TELEPHONE SYSTEM WITH ALL NECESSARY POLES, WIRES, CABLES, FIXTURES, CONDUIT AND APPARATUS.

RTSC Communications, Inc., d/b/a Nex-Tech, (“Grantee”), a corporation organized under the laws of the State of Kansas, with a license to do business in the State of Kansas, its successors and its assigns, are hereby granted the right, in operating a telephone system, to construct, install, maintain, and repair all the necessary poles, wires, cables, pole and wire fixtures, telephone plant,. and telephone apparatus of whatsoever nature for the purpose of conducting such business; to erect, maintain, and repair such telephone poles and string the same with wire and cable along, upon, across or below the streets, avenues, boulevards, alleys, and other public places of the City of Osborne, (“Granter”); and to construct, lay, maintain, and repair such cable as Grantee, its successors and assigns, may require, under those streets, avenues, boulevards, alleys, and other public places for the purpose of such business under the following terms and restrictions:

SECTION 1. This grant shall be effective in accordance with Section 13 below and shall continue for a term of ten (10) years from its effective date and for one successive term of like duration unless written notice is given by either the Granter or the Grantee to the other 120 days or more prior to the expiration of the initial term or one successive term of its intention to terminate the same at the expiration of the then current term. Grantee agrees to provide notice to Grantor of the expiration date of the franchise agreement 180 days prior to the expiration of the initial term or one successive term.

SECTION 2. Grantee, its successors and assigns, shall conduct telephone business in such a manner as shall be to the benefit of the City and its inhabitants, and render good telephone service at reasonable rates as authorized by the Kansas Corporation Commission or any other state or local governmental agency charged by law with the power to regulate telephone public utilities.

SECTION 3. All poles and overhead wires or cables erected in accordance with this ordinance shall be placed, whether on streets, avenues, boulevards, alleys, or other public places, so as not to interfere with ordinary travel on such streets, avenues, boulevards, alleys, or other public places. All poles erected under this ordinance shall be located so as not to injure any drains, sewers, catch basins, or other like public improvements. If such are injured, Grantee shall repair any damage caused to the satisfaction of the Mayor of the City, or the City may repair such damage and charge the cost to Grantee.

SECTION 4. The poles of Grantee, its successors and assigns shall be placed and erected in such a manner so as not to interfere unreasonably with the orderly conduct of the business and rights of any other public service corporation having a right or franchise to operate its business in the City.

SECTION 5. Grantee shall remove, raise, or adjust its aerial plant after forty-eight (48) hours notice by a properly authorized city official for the purpose of permitting the moving of houses or other structures along the streets of the City. The person or persons for whose benefit such telephone plant is removed, raised, or adjusted; however, shall first secure proper permission from the City for the movement and agree to pay Grantee for its related costs and damages. If desired, an advance deposit from the mover may be required by Grantee.

SECTION 6. Permission is hereby granted to Grantee to trim trees upon and overhanging streets, alleys, sidewalks, and public places of the City so as to prevent the branches of such trees from coming into contact with Grantee’s wires and cables. All such trimming will be done under the supervision and direction of any City official to whom such duties have been or may be delegated.

SECTION 7. In consideration for rights and privileges herein granted. Grantee shall pay to the City in arrears 2% of the annual gross receipts from billings for local exchange service rendered wholly within the corporate limits of the City. Said gross receipts are for the regular basic local exchange services rates to customers or subscribers for telephone services in the City, but does not include charges for special services, custom calling features, long distance calls, access charges, or any other charges not considered basic local exchange service. Such payment shall be made quarterly in four (4) installments, within 30 days of the end of the quarter during the terms of this ordinance. The City agrees to accept those sums as full and fair compensation, which sums shall be in lieu of any general or special license tax, occupation tax, or any other such tax for the term of this ordinance.

SECTION 8. Nothing herein shall affect any prior or existing rights of Grantee to maintain a telephone company within the City.

SECTION 9. It is expressly understood and agreed by and between the Grantee and the City that the Grantee shall save the City harmless from all loss sustained by the City on account of any suit, judgment, execution, claim, or demand whatsoever, resulting from negligence on the part of the Grantee in the construction, operation or maintenance of its telephone system in the City. The City shall notify the Grantee’s representative in the City within 30 days after the presentation of any claim or demand either by suit or otherwise made against the City on account of any negligence as aforesaid on the part of the Grantee. The Grantee shall carry sufficient insurance against liability to property damage of not less than $500,000 as to any one accident and not less than $1,000,000 as to any one accident as it may relate to damage to property and persons, and such insurance shall insure to the benefit of the City on all claims against the City arising from the negligence of the Grantee.

SECTION 10. The franchise and all rights hereunder may be assigned by the Grantee, as well as all succeeding Grantees, at their option, subject to the approval of the City, which approval shall not be unreasonably withheld. The successors and/or assigns shall succeed to all the rights, duties, and the liabilities of the Grantee hereunder.

SECTION 11. The recovery of the charges from Grantee’s customers is subject to the jurisdiction of the regulatory and state authorities and not the City. The obligation of Grantee to pay compensation under this Ordinance is contractual. The City makes no requirements as to the method Grantee uses to recover the payment.

SECTION 12. All ordinances and agreements or parts of ordinances and agreements in conflict with this ordinance are hereby repealed.

(11-20-2001)