§ 4. COMPENSATION TO THE CITY.

a.

In consideration of and as compensation for the franchise hereby granted to the Company by the City, the Company shall make an accounting on a monthly basis of all Gross Receipts it has earned within City Limits during the preceding month. The Company shall pay the City:

A monthly sum equal to six percent (6%) of the Gross Receipts received for the preceding month; and the above sum shall be adjusted for uncollectible receivables and for receivables which are later collected.

b.

Payment of the compensation above shall be effective on the first day of the first month after final passage and approval by the City and acceptance by the Company. Prior to that date, payments shall continue to be calculated and be paid in the manner previously provided in Ordinance 45-987. Such payments shall be made to the City under procedures, which are mutually agreed to by the Company and the City within thirty (30) days of the last day of the month to which such accounting shall apply.

c.

Notwithstanding anything to the contrary in this Franchise, the fee provided for in this Section 4 shall not become effective within any area annexed by the City until 30 days after the City provides the Company with a certified copy of the annexation ordinance, proof of publication as required by law and a map of the city detailing the annexed area.

d.

Company will use commercially reasonable efforts to ensure the accuracy of its records and of the determination of the amount of Gross Receipts subject to the fee provided for in this Section 4. In the event and to the extent the accounting rendered to the City by the Company is found to be incorrect due to Company's failure to use commercially reasonable efforts as provided herein, then payment shall be made on the corrected amount within 30 days of discovery of the mistake, it being agreed that the City may accept any amount offered by the Company, but the acceptance thereof by the City shall not be deemed a settlement of such item if the amount is in dispute or later found to be incorrect. The Company agrees that all of its books, records, documents, contracts and agreements as may be reasonably necessary for an effective compliance review of this Ordinance shall upon reasonable notice and at all reasonable times be opened to the inspection and examination of the officers of the City and its duly authorized agents, auditor, and employees for the purpose of verifying said accounting. Notwithstanding the obligation herein, the Company shall have the right to require the reasonable protection of proprietary information of the Company.

e.

Both parties have a mutual interest in increasing the quality and quantity of appropriate trees in the City right-of-way, while reducing reoccurring line clearance pruning and educating and improving communications with landowners and Westar customers concerning areas where street ROW and Westar utility easement are in the same location.

The City shall put forth a good faith effort to utilize 1% of the Gross Receipts towards its tree maintenance program through the City of Wichita Parks and Recreation Forestry and Reforestation Department. To accomplish this good faith effort, the City Forestry section will commit to the utilization of the 1% of the Gross Receipts to hiring employees, purchasing, planting, and all maintenance of trees that follow the "Right Tree, Right Place" principals when the tree location is within a utility easement and/or right-or-way. Should funds from the 1% of Gross Receipts exceed the commitment referenced above, trees and other maintenance projects for other ROW or publicly controlled property under the jurisdiction of Park and Recreation will be selected as deemed appropriate by the Forestry section.