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Section 65865.1, as amended, Owner shall have the duty to demonstrate by substantial evidence its good faith compliance with the terms of the Agreement at the Periodic Review. 6.2 Review Letter. If Owner is found to be in compliance with the Agreement after annual review, City shall, upon written request by Owner, issue a Review Letter to Owner (the "Letter") stating that based upon information known or made known to the City Council, the City Planning Commission and/or the City Planning Director, the Agreement remains in effect and Owner is not in default. Owner may record the Letter in the Official Records of the County of Orange. 6.3 Failure of Periodic Review. City's failure to review at least annually Owner's compliance with the terms and conditions of this Agreement shall not constitute or be asserted by any party as a breach of the Agreement by Owner or City. 7. DEFAULT. 7.1 Events of Default by Owner. Owner is in Default under this Agreement upon the happening of one or more of the following events or conditions following notice and a failure to cure as set forth in Section 7.2: (1) If a written warranty, representation, or statement made or furnished by Owner to the City in conjunction with the Project is false or proves to have been false in any material respect when it was made; (2) A finding and determination made by the City following a Periodic Review under the procedure provided for in Government Code Section 65865.1 that upon the basis of substantial evidence the Property Owner has not complied in good faith with one or more of the terms or conditions of this Agreement; (3) Failure to substantially comply with Governmental Requirements; (4) The failure of Owner to comply with the requirements of Section 5.1 hereof. (5) Any other event, condition, act or omISSIOn of Owner which materially interferes with the intent and objectives of this Agreement. 7.1.2 Events of Default by City. City is in Default under this Agreement upon the happening of one or more of the following events or conditions following notice and a failure to cure as set forth in Section 7.2: (1) If a written warranty, representation, or statement made or furnished by City to the Owner in conjunction with the Project is false or proves to have been false in any material respect when it was made; (2) Failure of the City to comply with the provisions of Section 5.2. hereof. (3) Any other event, condition, act or omission of City Agency which materially interferes with the intent and objective of this Agreement, including, without limitation, the construction of the Project. 15 DOCSOC/] ] 10339vl1/24579-0001 11 B-36