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partis shall cooperate in defending such action or proceeding. However, Developer agrees to <br />reimburse City for City's reasonable attorneys' fees, expert witness fees, and related costs as <br />City may incur in connection with its retention of outside counsel, and for any award of court <br />costs or fees against City. City has the right to choose and retain such legal counsel as the City <br />deems appropriate. However, Developer shall have no obligation to reimburse City for costs <br />incurred after the date on which Developer gives the City written notice of its decision to settle <br />an action or proceeding, even if the City does not agree to the settlement. <br />The obligations of City and Developer pursuant to this Section 6.3 shall be <br />suspended as provided in Section 1.6 in the event Ordinance adopting the Development <br />Plan is challenged by a referendum petition, or in the event Ordinance adopting this <br />Agreement is challenged by a referendum petition. <br />Section 6.4 Defaults. Any failure by either Party to perform any term or <br />provision of this Agreement, which failure continues uncured for a period of thirty (30) days <br />following written notice of such failure from the other Party (unless such period is extended by <br />mutual written consent), shall constitute a default under this Agreement. Any notice given <br />pursuant to the preceding sentence ("Default Notice") shall specify the nature of the alleged <br />failure and, where appropriate, the manner in which said failure satisfactorily may be cured. If <br />the nature of the alleged failure is such that it cannot reasonably be cured within such 30 -day <br />period, then the commencement of the cure within such time period, and the diligent <br />prosecution to completion of the cure thereafter, shall be deemed to be a cure within such 30 - <br />day period. Upon the occurrence of a default under this Agreement, the non -defaulting Party <br />may institute legal proceedings to enforce the terms of this Agreement or, in the event of a <br />material default, terminate this Agreement. If the default is cured, then no default shall exist and <br />the noticing Party shall take no further action. In the event City or Developer defaults under the <br />terms of this Agreement, City or Developer shall have all rights and remedies provided under <br />law. No default hereunder shall render invalid the lien of any deed of trust, mortgage or security <br />interest in or upon the Project Site or any improvements or fixtures at any time located thereon. <br />Section 6.5 Periodic Review. <br />a. Conducting the Periodic Review. Throughout the Term of this Agreement, <br />at least once every twelve (12) months following the Effective Date, City shall review the extent <br />of good -faith compliance by Developer with the terms of this Agreement. This review (the <br />"Periodic Review") shall be conducted by the Director of Community Development or his/her <br />designee and shall be limited in scope to compliance with the terms of this Agreement pursuant <br />to California Government Code §65865.1. <br />b. Good Faith Compliance. During the Periodic Review, the Director of <br />Community Development shall review Developer's good -faith compliance with the terms of this <br />Agreement. At the conclusion of the Periodic Review, if the Director of Community Development <br />finds that the Developer has not complied in good faith with the terms and conditions of this <br />Agreement, the Director shall notify Developer in writing of the City's findings. Developer shall <br />have ten (10) business days from the date of the City's notice to respond to City's evaluation of <br />Developer's performance. Within ten (10) business days of receipt of the Developer's response, <br />the Director of Community Development shall provide a written determination, based on <br />findings, as to whether Developer has complied in good faith with the terms and conditions of <br />this Agreement. The decision of the Director of Community Development shall be appealable to <br />the City Council by Developer. If the Director of Community Development finds and determines <br />that Developer has not complied with such terms and conditions, the Director of Community <br />