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Section 2.6 Development Timing Subject to Applicable Law, including the GMA, Developer shall have the right to develop the Project on the Project Site in such order and at such rate and at such times, if any, as Developer deems appropriate within the exercise of its subjective business judgment. Section 2.7 Compliance with State and Federal Law This Agreement is subject to Developer's compliance with all applicable federal and State laws and regulations and compliance with applicable provisions of the California Environmental Quality Act, Public Resources Code sections 21000 et seq. ("CEQA"). ARTICLE 3 Developer Obligations Section 3.1 Obligations of Developer Generally The parties acknowledge and agree that City's agreement to perform and abide by the covenants and obligations of City set forth in this Agreement is a material consideration for Developer's agreement to perform and abide by its long term covenants and obligations, as set forth herein. The parties acknowledge that many of Developer's long term obligations set forth in this Agreement are in addition to Developer's agreement to perform all the mitigation measures identified in the MMRP and specifically applicable to the Project Site. Section 3.2 Development Impact Fees Except as otherwise specifically set forth in this Article 3 or otherwise herein, Developer shall pay to City the development impact fees and exactions which are in effect as of the Effective Date. A complete list of these applicable development impact fees and exactions is attached as DA Exhibit C. In the event Developer applies for multiple grading or building permits covering portions or phases of the Project, Developer shall only pay those development impact fees (or prepare such study or studies) applicable to the portion or phase of the Project covered by the issued permit. However, during the Term of this Agreement, except as specifically set forth in this Agreement or the Project Approvals, Developer shall pay those periodic cost of living or similar indexed increases, decreases or adjustments to such fees and exactions as are applicable and in effect at the time such fees or exactions would otherwise be payable to City. Section 3.3 Traffic Mitigation Measures; Traffic Impact Fees Developer shall be obligated to mitigate the traffic related impacts of the Project in conformance with the Housing Element EIR, Mitigation Measure 4.N-7, which shall be deemed full compliance with General Plan policy, by complying with each of the following: (a) Pleasanton Traffic Impact Fee. Developer shall pay to City the Pleasanton Traffic Impact Fee in accordance with the City's Non-NPID fee schedule in effect on the Effective Date of this Agreement, and 067821\4242646v5 5