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(b) Amendments in Writing. This Agreement may not be modified or amended other than by a written instrument, executed and acknowledged by the Parties, and duly recorded in the Office of the San Mateo County Recorder and otherwise in accordance with the procedures of State law. (c) Modification Because of Conflict with State or Federal Laws. In the event that state or federal laws or regulations enacted after the Effective Date prevent or preclude compliance with one or more provisions of this Agreement or require changes in plans, maps or permits approved by the City, the parties shall meet and confer in good faith in a reasonable attempt to modify this Agreement to comply with such federal or state law or regulation and to effectuate the purposes and covenants contained herein. Any such amendment or suspension of the Agreement shall be approved by the City Council. (d) Insubstantial Amendments. Notwithstanding the foregoing, any amendment to this Agreement which does not relate to (i) the term of the Agreement; (ii) the permitted uses of the Property; (iii) provisions for significant reservation or dedication ofland; (iv) conditions, terms, restrictions or requirements for subsequent discretionary actions; (v) the density or intensity of use of the Project; (vi) the maximum height or size of proposed buildings; or (vii) monetary contributions or public improvements by Developer, or does not otherwise constitute a significant amendment as determined by the City's Community Development Director in the exercise of his reasonable discretion, shall not, except to the extent otherwise required by law, require notice or public hearing before the Planning Commission or the City Council before the parties may execute an amendment hereto. 6.02 Annual Review. (a) Initiation of Review. Not less often than once every twelve months, or more frequently if required by California Government Code Section 65865.1, the Developer shall initiate an annual review in compliance with Section 65865.1 by giving written notice to the City. Developer shall provide in connection with such notice evidence, as and when reasonably determined necessary by the Community Development Director, to demonstrate Developer's good faith compliance with the provisions of this Agreement and to permit a hearing on such compliance if determined to be necessary by the Community Development Director. If the City finds, on the basis of substantial evidence, that Developer has not complied in good faith with the terms and conditions of this Agreement, City may initiate termination or modification of this Agreement. (b) Staff Reports. To the extent practical, City shall deposit in the mail and fax to Developer a copy of all staff reports, and related exhibits concerning performance under this Agreement at least five (5) days prior to any annual review. (c) Costs. Costs reasonably incurred by City in connection with the annual review shall be paid by Developer in accordance with the City's schedule of fees in effect at the time of reVIew. 1289\02\ 175277 .12 12