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challenge the law or regulation preventing compliance with <br /> the terms of this Agreement and, in the event such challenge <br /> is successful, the Agreement shall remain unmodified and in <br /> full force and effect. <br /> 3. ADDITIONAL MITIGATIONS. <br /> 3.1 Imposition of Additional Mitigations . City and <br /> Developer agree that City shall have discretion to reason- <br /> ably and in good faith determine that the effects of cumula- <br /> tive development of properties within the North Pleasanton <br /> area ("North Pleasanton Properties) , as more particularly <br /> described in Exhibit 2, require additional mitigation <br /> measures ("Additional Mitigations" ) than those required by <br /> the PUD, and to impose the cost of financing these Addi- <br /> tional Mitigations upon property benefitting therefrom to <br /> the extent reasonable and practical. <br /> 3. 2 Developer' s Right of Protest. Subject to the terms <br /> of this Agreement, Developer agrees to either (i) not pro- <br /> test the establishment of assessment districts or benefit <br /> districts to fund the Additional Mitigations or (ii) to <br /> affirmatively vote for the creation of such districts. <br /> Developer retains the right to pretest and litigate all <br /> matters other than the validity of the formation of the <br /> district, including but not limited to the type of improve- <br /> ments, cost and allocation of the cost of the improvements <br /> among various properties. In the event Developer initiates <br /> 7. <br />