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K of part 76 of the FCC rules are hereby incorporated by reference and made a part hereof. In any event, Grantee shall, at a minimum, comply with the technical standards of the Offering. ( D. The System shall be designed for and operated on a 24 hours a day continuous operation basis. E. Grantee shall initially and subsequently test the technical capacity of the System according to the procedures delineated in the Offering. Additionally, Grantee agrees to allow City to select a consultant if City deems it is necessary to review and perform such testing procedure. The results on any tests required by the FCC shall be filed within ten days of the conduct of such tests with the City and the Board. Other representatives of City may be present during testing. Tests may be done annually at such times as is determined by City, with notice to Grantee. The expenses of any tests required by the FCC shall be paid by Grantee. The expenses of tests required by City in addition to FCC required tests shall be paid by City from the Franchise fee. Should the tests show System to be not in compliance with this Franchise, Grantee shall pay upon demand of City all expenses associated with City - required tests. SECTION 3. TWO-WAY CAPACITY Grantee shaH initially activate and thereafter maintain a two-way capable System (audio, video, and data impulse). Grantee shall fully activate eight upstream channels at the time of System activation. This will include fully interactive service capability supported by addressable, state-of-the-art equipment. SECTION 4. F ACIUTIES The Grantee shall construct, maintain, and continue to provide all facilities and equipment set forth in the Offering including, but not limited to, the headend, hubs, distribution system, studios, equipment, and other facilities. Grantee's plan, as set forth in the Offering, for implementing the construction, utilization, System performance, and maintenance of these facilities, including - 12 -