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May 25, 2010 -Execution Copy (a) Conducting the Periodic Review. Throughout the Term of this Agreement, at least once every twelve (12) months on the anniversary date of the Effective Date of this Agreement or other date mutually agreed to by the Parties, City shall review the extent of good-faith compliance by Developer with the terms of this Agreement. This review (the "Periodic Review") shall be conducted by the Community Development Director or his/her designee and shall be limited in scope to compliance with the terms of this Agreement pursuant to California Government Code Section 65865.1 and City Law. (b) Required Information from Developer. Not more than ninety (90) days and not less than forty-five (45) days prior to the Annual Review Date, the Developer shall provide a letter to the Community Development Director containing evidence to show good-faith compliance with this Agreement. The burden of proof, by substantial evidence, of good-faith compliance is upon the Developer. (c) City Report. Within forty (40) days after Developer submits its letter, the Community Development Director shall review the information submitted by Developer and all other available evidence on Developer's good-faith compliance with this Agreement. The Community Development Director shall notify the Developer in writing whether the Developer has complied in good-faith with the terms of this Agreement. If the Community Development Director finds the Developer is in good-faith compliance, the Community Development Director shall provide written notice to the Developer stating that the Periodic Review has been completed and the Developer has been found to be in good-faith compliance with this Agreement. If the Community Development Director finds the Developer is not in good-faith compliance, the Director shall provide written notice stating the grounds for finding the Developer not in good-faith compliance with this Agreement. The City's failure to timely complete the Periodic Review is not deemed to be a waiver of the right to do so at a later date. (d) Non-compliance with Agreement; Hearing. The Developer may appeal any determination under the Periodic Review of non-compliance with this Agreement to the City Council within ten (10) days of notice of the Community Development Director's decision. If no appeal is filed by Developer, the decision of the Community Development Director shall be final. If the Developer files a timely appeal, the City Council shall conduct a hearing within thirty (30) days of the Community Development Director's decision. The Developer shall be given ten (10) days written notice of the hearing and copies of the evidence upon which the Community Development Director made her/his determination. Developer will be given the opportunity to present evidence at the hearing. If the City Council determines that the Developer is not in good-faith compliance with this Agreement under this Section 10.03, it may modify or terminate this Agreement without complying with the notice and opportunity to cure and other provisions of Section 10.01. Page 28 of 36 1424669.1 Kaiser Medical Center and Retail Project Development Agreement