ARTICLE I

MEMBERSHIPS

SECTION 1. Requirements for Membership

Any person, entity, firm, association, corporation, or body politic or subdivision thereof will become a member in SAC OSAGE ELECTRIC COOPERATIVE (Hereinafter called the "Cooperative") by:

a. filing a written application for membership therein;

b. actually purchasing from the Cooperative electric energy as hereinafter specified; or, in the case of a small power producer or co-generator being inter-connected with the Cooperative's line system;

c. agreeing to comply with and be bound by the articles of incorporation and bylaws of the Cooperative and any rules and regulations adopted by the board, and

d. paying the membership fee hereinafter specified;

No person, entity, firm, association, corporation or body politic or subdivision thereof may hold more than one membership in the Cooperative, and no membership in the Cooperative shall be transferable, except as provided in the bylaws. No person, entity, firm, association, corporation or body politic or subdivision thereof holding membership in the Cooperative shall have more than one vote on any matter properly coming before the membership at any annual or special meeting thereof, irrespective of the number of services or connections that member may have.

SECTION 2. Joint Membership

 A husband and wife may apply for a joint membership and, subject to their compliance with the requirements set forth in Section 1 of this Article, may be accepted for such membership. The term "member" as used in these bylaws shall be deemed to include a husband and wife holding a joint membership and any provisions relating to the rights and liabilities of membership shall apply equally with respect to the holders of a joint membership.

SECTION 3. Conversion of Membership

(a) A membership may be converted to a joint membership upon the written request of the holder thereof and the agreement by such holder and his or her spouse to comply with the articles of incorporation, bylaws and rules and regulations adopted by the Board of Directors.

(b) Upon the death of either spouse who is a party to the joint membership, such membership shall be held solely by the survivor. However, the estate of the deceased shall not be released from any debts due the Cooperative.

SECTION 4. Membership Fees

The membership fee shall be five dollars, upon the payment of which a member shall be eligible for one service connection.

SECTION 5. Purchase of Electric Energy

Each member except those who are small power producers or co-generators within the meaning of the Public Utility Regulatory Policies Act, shall, as soon as electric energy shall be available, purchase from the cooperative all electric energy used on the premises specified in his application for membership, and shall pay therefore at rates which shall from time to time be fixed by the board. It is expressly understood that amounts paid for electric energy in excess of the cost of service are furnished by members as capital and each member shall be credited with the capital so furnished as provided by the bylaws. Each member shall pay to the Cooperative such minimum amount regardless of the amount of electric energy consumed, as shall be fixed by the board from time to time. Each member shall also pay all amounts owed by him to the Cooperative as and when the same shall become due and payable. The responsibilities of a member who is a small power producer or co-generator with respect to the purchase of energy shall be such as may be established by written agreement between the Cooperative and that member.

(a). Each member shall in his application for membership agree to give to the Cooperative such right-of-way as is necessary for the operation of its line, and if the member is not the owner of the property, the member shall obtain from the owner of the property an agreement to give such right-of-way as is necessary for the operation of the Cooperative lines.

(b). Such right-of-way shall provide that the Cooperative may operate, construct and maintain on the lands of the member or owner, and upon or in all streets, roads or highway abutting such lands, electric transmission or distribution lines or systems, and to cut, spray and trim trees, and shrubbery to the extent necessary to keep them clear of the said electric lines or systems, and to cut down and spray and kill from time to time all dead, weak, leaning or dangerous trees that are tall enough to strike the said electric lines in falling.

SECTION 6. Termination of Membership

(a). Any member may withdraw from membership upon compliance with such uniform terms and conditions as the Board of Directors may prescribe. The Board of Directors of the Cooperative may, by the affirmative vote of not less than two‑thirds of all the directors, expel any member who fails to comply with any of the provisions of the articles of incorporation, bylaws or rules and regulations adopted by the Board of Directors, but only if such member shall have been given written notice by the Secretary of the Cooperative that such failure makes him liable to expulsion and such failure shall have continued for at least ten days after such notice was given. Any expelled member may be reinstated by vote of the Board of Directors or by vote of the members at any annual or special meeting. The membership of a member who for a period of six (6) months after service is available to him, has not purchased electric energy from the Cooperative, or of a member who has ceased to purchase energy from the Cooperative, shall be canceled by resolution of the Board of Directors, except however, this shall not apply to a member who is a small power producer or co-generator within the meaning of the Public Utility Regulatory Policies Act.

(b). Upon the withdrawal, death, cessation of existence or expulsion of a member the membership of such member shall thereupon terminate. Termination of membership in any manner shall not release a member or his estate from any debts due this Cooperative.

(c). In case of withdrawal or termination of membership in any manner, the Cooperative will repay to the member the amount of membership fee paid by him, provided, however, that the Cooperative shall deduct from the amount of the membership fee the amount of any debts or obligations owing from the member of the Cooperative.

SECTION 7. Wiring of premises; Responsibility therefore; Responsibility for meter tampering or bypassing and for damage to cooperative properties; Extent of cooperative responsibility; Indemnification

 It shall be the responsibility of all members to properly and safely wire all dwellings, barns, outbuildings or other improvements located to the member's side of the meter. Each member shall be responsible for and shall indemnify the Cooperative and its employees, agents and independent contractors against death, injury, loss or damage resulting from any defect in or improper use or maintenance of such premises and all wiring and apparatuses connected thereto or used thereon. Each member shall make available to the Cooperative a suitable site, as determined by the Cooperative, whereon to place the Cooperative's physical facilities for the furnishing and metering of electric service and shall permit the Cooperative's authorized employees, agents and independent contractors to have access thereto, safely and without interference from hostile dogs or any other hostile source, for meter reading, bill collecting and for inspection, maintenance, replacement, relocation, repair or disconnection of such facilities at all reasonable times. As part of the consideration for such service, each member shall be the Cooperative's bailee of such facilities and shall accordingly desist from interfering with, impairing the operation of or causing damage to such facilities, and shall use his best efforts to prevent others from so doing. In the event such facilities are interfered with, impaired in their operation or damaged by the member, or by any other person when the member's reasonable care and surveillance should have prevented such, the member shall indemnify the Cooperative and its employees, agents and independent contractors against death, injury, loss or damage resulting there from, including but not limited to the Cooperative's cost of repairing, replacing or relocating any such facilities and its loss, if any, of revenues resulting from the failure or defective functioning of its metering equipment. The Cooperative shall, however, in accordance with its applicable service rules and regulations, indemnify the member of any overcharges for service that may result from a malfunctioning of its metering equipment or any error occurring in the Cooperative's billing procedures. In no event shall the responsibility of the Cooperative for furnishing electric service extend beyond the point of delivery.