The Town agrees that it will not object should the City at any time annex or attach the entirety of the Armstrong Street right-of-way north of the southern lot line of Parcel 0100509. The City shall defend, indemnify, and hold harmless the Town and its employees, agents, and officials, from and against all claims brought by third-parties related to the City's authority to annex or attach the Armstrong Street right-of-way.

For all other public rights-of-way within Hybrid Areas, no portion of the right-of- way may be annexed or attached by the City until such time that at least 50% of the frontage on the relevant right-of-way has been annexed or attached or is otherwise located within the City's jurisdictional boundaries. The City may adopt an ordinance under Wis. Stat. § 66.0301(6)(c)2 annexing or attaching the entire right-of-way. Not withstanding the above, if at any time a portion of right-of-way in the hybrid area is in the Town but joined on both ends by City right-of-way, the City may annex the portion of right-of-way from the Town to connect the two ends and make one continuous City right-of-way.

1.4

Non-annexed City Service Areas. The areas shown in gray on Exhibit A along Dixie Road and U.S. Highway 41, a total of approximately 132 acres, shall be "Non-annexed City Service Areas." Within the Non-annexed City Service Areas, the City will provide sanitary sewer extensions. Town properties within these areas will be allowed to connect to the City Sanitary sewers provided the Town properties pay their proportionate share of the extension and hook up to the City Sanitary sewers. The Town properties within Non-annexed City Service Areas will not be required to annex to the City in order to receive City Sanitary sewers. The Town agrees to cooperate with the City to assess any special assessments required to extend City sanitary sewers to Town properties in the Non-annexed City Service Area. There shall be only one assessment for each benefiting public improvement component (e.g., road pavement, curb & gutter, public sidewalk, streetlights, sanitary sewers, water, etc.). In the event that any of the properties in the Non-annexed City Service Areas require water service from the City, they shall be required to annex to the City upon receipt of that service. If all or any portion of the non-annexed City Service Areas are annexed, the City will make revenue sharing payments to the Town until April 15 2033 in equal annual payments. The revenue sharing payments will be calculated by using the assessed value of the real estate and personal property on the date of the annexation. In the event that the assessed value changes due to a change in how the State assesses property, the payment will be recalculated to reflect such change. The revenue sharing formula will be based on the Town tax rate in effect on the date of the