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ARTICLE 2. OBLIGATIONS OF DEVELOPER <br />Section 2.01. Execution of the Project. Developer shall execute the Project with all <br />commercially reasonable diligence according to the requirements of this Article. The <br />requirements of this Article are deemed material obligations. The term "Project" as defined and <br />used in this Agreement is inclusive of all of the requirements of this Article. <br />Section 2.02. New Facility Completion Date. The New Facility shall be completed on <br />or before August 15, 2012, subject to force majeure events under Section 6.15. Completion of <br />the New Facility shall be evidenced by the issuance by the City of a Certificate of Occupancy to <br />Developer for all improvements. <br />Section 2.03. Demolition of the Old Facility. When demolishing the Old Facility <br />and any other improvements on the Land, Developer shall remove and properly dispose of all <br />building materials, rubble, trash and debris in accordance with applicable City of San Marcos <br />ordinances and rules and all other applicable environmental laws and regulations. <br />Section 2.04. Site Preparation and Tree Removal. In preparing the Land for <br />construction of the New Facility and all other phases of the Project, Developer agrees that it shall <br />comply with all City of San Marcos ordinances governing the preservation and removal of trees <br />applicable to new development and construction activities. All reasonable measures shall be <br />taken by Developer to recycle all trees as mulch, building material or other such uses that do not <br />require disposal into landfills or burning. Before undertaking any demolition, site clearing or <br />construction activities, Developer shall submit a plan acceptable to the Director of Development <br />Services outlining how it will comply with this paragraph. The plan shall include the name and <br />contact information of the firm or person that it will use to process and recycle trees and a <br />reliable means for the City to verify compliance with this paragraph. <br />Page 3 of 15 <br />F�"/"l <br />