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HomeMy WebLinkAboutAGENDA REPORT 2023 0419 CCSA REG ITEM 10FCITY OF MOORPARK, CALIFORNIA City Council Meeting of April 19, 2023 ACTION APPROVED STAFF RECOMMENDATION. BY A. Hurtado. F. Consider Opioid Settlement Funds and Authorize the City Manager to Participate in the New National Opioid Settlements with Teva, Allergan, CVS, Walgreens, and Walmart. Staff Recommendation: Authorize the City Manager to participate in the new National Opioid Settlement with Teva, Allergan, CVS, Walgreens, and Walmart. (Staff: PJ Gagajena, Assistant City Manager) Item: 10.F. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: PJ Gagajena, Assistant City Manager DATE: 04/19/2023 Regular Meeting SUBJECT: Consider Opioid Settlement Funds and Authorize the City Manager to Participate in the New National Opioid Settlements with Teva, Allergan, CVS, Walgreens, and Walmart BACKGROUND The opioid epidemic has cost hundreds of thousands of lives, and ravaged families and communities across the nation. There were approximately 93,000 opioid overdose deaths nationwide in 2020 and 3,244 deaths statewide in 2019 according to the State of California Department of Justice. States and local governments have filed nearly 4,000 lawsuits against pharmaceutical distributors and manufacturers over the years for the detrimental impacts of opioids and on July 21, 2021, a proposed nationwide settlement in the amount of $26 billion was announced. On December 1, 2021, the Moorpark City Council authorized the City Manager to participate in the National Opioid Settlement with the three largest pharmaceutical distributors, McKesson, Cardinal Health and AmerisourceBergen (Distributors), which are required to pay up to $21 billion over 18 years; and manufacturer Janssen Pharmaceuticals, Inc. (Janssen) and its parent company Johnson & Johnson, which are required to pay $5 billion over a nine-year period. Approximately $22.7 billion is earmarked for remediation and abatement activities and more than $2.2 billion is allocated to California which is apportioned across a variety of agencies, cities and towns across the state. The City elected to have the County of Ventura receive its portion of the settlement funds since the City does not have the staff nor the services to meet the required opioid remediation uses, which include opioid and substance use disorder services, early intervention, outpatient services, residential inpatient services, medically managed services, withdrawal management, recovery support services, medication assisted treatment, individual and group counseling, crisis intervention, family therapy, case management, and prevention services. The City’s settlement funds that have been sent to the County include Distributor settlement payments in the amounts of $4,500.96 in Year 1 and $4,730.29 in Year 2, and Janssen settlement payments in the amounts of $1,602.37 in Year 1 and $3,738.36 in Year 2. Item: 10.F. 348 Honorable City Council 04/19/2023 Regular Meeting Page 2 DISCUSSION On February 16, 2023, the City was notified that California Attorney General Rob Bonta announced proposed settlements with opioid manufacturers Teva and Allergen for $6.6 billion and chain pharmacies CVS, Walgreens, and Walmart in the amount of $13.8 billion. Teva is required to pay up to $3.34 billion over 13 years and to provide either $1.2 billion of its generic version of the drug Narcan over 10 years or an agreed upon cash equivalent over 13 years; Allergan is required to pay up to $2.02 billion over seven years; CVS is required to pay up to $4.90 billion over 10 years; Walgreens is required to pay up to $5.52 billion over 15 years; and Walmart is required to pay up to $2.74 billion in 2023, and all payments are to be made within six years. California is expected to receive up to $1.8 billion of those funds for opioid abatement programs and services with 85% of the funds going to cities and counties. As with the prior National Opioid Settlement, the more cities and counties participate, the more settlement funds cities, counties and the state will receive. The City’s weighted allocation percentage for each settlement with Teva, Allergen, CVS, Walgreens, and Walmart is 0.0067337% of 85% of the $1.8 billion estimated settlement funds allocated to California. This equates to the City receiving approximately $103,000 in settlement proceeds depending on the number of participating cities and counties over the course of six to 15 years. As with the prior National Opioid Settlement, the City will elect the County to receive and administer the settlement funds for opioid abatement programs and services. Since the City Council already approved participation with the prior National Opioid Settlement due to the benefits of participating and in order to meet the deadline of April 18, 2023, the City Manager opted in and completed the required participation documents with the Teva, Allergen, CVS, Walgreens, and Walmart settlements on March 2, 2023. Staff is seeking confirmation from the City Council to participate in this new National Opioid Settlement. More information about this new National Opioid Settlement can be found at https://nationalopioidsettlement.com or https://oag.ca.gov/opioids. ENVIRONMENTAL DETERMINATION This action is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project, as defined by Section 15378 of the State CEQA Guidelines. Therefore, no further environmental review is required. FISCAL IMPACT The settlement agreements with Teva, Allergen, CVS, Walgreens, and Walmart indicate the City of Moorpark will be receiving a weighted allocation percentage of 0.0067337% of 85% of the $1.8 billion estimated settlement funds allocated to California, if the City elects to participate. This equates to the City of Moorpark receiving an estimated amount of $103,000 in settlement proceeds, which is subject to change depending on 349 Honorable City Council 04/19/2023 Regular Meeting Page 3 the number of local government entities participating and/or changes to the calculated allocation percentages. The allocated funds will be paid between a period of six to 15 years. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION Authorize the City Manager to participate in the new National Opioid Settlement with Teva, Allergan, CVS, Walgreens, and Walmart. Attachment 1: New National Opioid Settlement Notice Attachment 2: Completed Participation Forms and California Intrastate Allocation Agreements with Teva, Allergan, CVS, Walgreens, and Walmart 350 Wednesday, January 25, 2023 at 11:25:20 Eastern Standard Time Page 1 of 2 Subject:NEW NATIONAL OPIOID SETTLEMENT NOTICE – Teva, Allergan, CVS, Walgreens, and Walmart - RefNum Date:Tuesday, January 24, 2023 at 3:38:18 PM Eastern Standard Time From:NaLonal Opioids SeOlements ImplementaLon Administrator To: CC: ADachments:naLonal_opioid_seOlement_noLce_seOlement_overview.pdf To: Reference Number: NOTICE OF NEW NATIONAL OPIOID SETTLEMENTS AND UPCOMING ACTION NEEDED TO PARTICIPATE New national opioid settlements have been reached with Teva, Allergan, CVS, Walgreens, and Walmart. This is the formal notice required by the settlements and authorized by the parties. Please read this email and the attached document carefully. You are receiving this notice because your state has elected to participate in one or more of the five national opioid settlements with Teva, Allergan, CVS, Walgreens, and Walmart. The list of participating states for each settlement can be found at https://nationalopioidsettlement.com. Your subdivision or special district may participate in each settlement for which your state has elected to participate. Your subdivision or special district might have participated in the national opioid settlements with Johnson & Johnson/Janssen or the three Distributors (Cardinal, AmerisourceBergen, and McKesson). This notice concerns the opportunity to participate in one or more of the new settlements with new Settling Defendants (Teva, Allergan, CVS, Walgreens, and Walmart). Your subdivision or special district may participate in a new settlement even if it did not participate in a prior national settlement. In the next few weeks, you will receive additional information and documentation to sign and return if you wish to join the new settlements. Please review the list of individuals on this email and contact the Implementation Administrator at opioidsparticipation@rubris.com if someone else at your subdivision or special district should receive communications about these settlements. Your subdivision or special district must “opt in” to participate in the new settlements. To do so, you must sign and return the documentation that you will be receiving in the next few weeks. The deadline to return the required documentation is April 18, 2023. Documentation submitted for prior national settlements is not applicable to the new settlements. The attached document provides additional information concerning the new national opioid settlements involving Teva, Allergan, CVS, Walgreens, and Walmart. Questions about this notice or the process for receiving and submitting the required Settlement Participation Forms may be directed to your attorney, the Implementation Administrator at opioidsparticipation@rubris.com, or your Attorney General's Office. ATTACHMENT 1 351 Page 2 of 2 If your subdivision or special district is represented by an attorney with respect to opioid claims and they are not copied on this message, please immediately contact them concerning this notice. Thank you, National Opioid Settlements Implementation Administrator National Teva, Allergan, Walgreens, Walmart, and CVS Settlements The Implementation Administrator is retained to provide the settlement notice required by the respective settlement agreements referenced above and to manage the collection of settlement participation forms for each settlement. 352 National Opioid Settlements: Teva, Allergan, CVS, Walgreens, and Walmart [SUBDIVISION] Reference Number: TO LOCAL POLITICAL SUBDIVISIONS AND SPECIAL DISTRICTS: THIS NOTICE CONTAINS IMPORTANT INFORMATION ABOUT NATIONAL OPIOID SETTLEMENTS. SETTLEMENT OVERVIEW Proposed nationwide settlement agreements (“Settlements”) have been reached that would resolve opioid litigation brought by states, local political subdivisions, and special districts against two pharmaceutical manufacturers, Teva and Allergan (“Manufacturers”), and three pharmacies, CVS, Walgreens, and Walmart (“Pharmacies”). Local political subdivisions and special districts are referred to as “subdivisions.” The Settlements require the settling Manufacturers and Pharmacies to pay billions of dollars to abate the opioid epidemic. The Settlements total over $20 billion. Of this amount, approximately $17 billion will be used by participating states and subdivisions to remediate and abate the impacts of the opioid crisis. Depending on participation by states and subdivisions, the Settlements require: Teva to pay up to $3.34 billion over 13 years and to provide either $1.2 billion of its generic version of the drug Narcan over 10 years or an agreed upon cash equivalent over 13 years; Allergan to pay up to $2.02 billion over 7 years; CVS to pay up to $4.90 billion over 10 years; Walgreens to pay up to $5.52 billion over 15 years; and Walmart to pay up to $2.74 billion in 2023, and all payments to be made within 6 years. As provided under the Agreements, these figures are net of amounts attributable to prior settlements between the Defendants and certain states/subdivisions, and include amounts for attorneys’ fees and costs. The Settlements also contain injunctive relief governing opioid marketing, sale, distribution, and/or dispensing practices. Each of the proposed settlements has two key participation steps. First, each eligible state decides whether to participate in each Settlement. A list of participating states for each settlement can be found at https://nationalopioidsettlement.com . Second, eligible subdivisions within each participating state decide whether to participate in each Settlement. The more subdivisions that participate, the more funds flow to that state and its subdivisions. Any subdivision that does not participate cannot directly share in any of the settlement funds, even if the subdivision’s state is settling and other participating subdivisions are sharing in settlement funds. If the state does not participate in a particular Settlement, the subdivisions in that state are not eligible to participate in that Settlement. ATTACHMENT 2 353 WHO IS RUBRIS INC. AND WHAT IS THE IMPLEMENTATION ADMINISTRATOR? The Settlements provide that an Implementation Administrator will provide notice and manage the collection of participation forms. Rubris Inc. is the Implementation Administrator for these new Settlements and was also retained for the 2021 national opioid settlements. WHY IS YOUR SUBDIVISION RECEIVING THIS NOTICE? Your state has elected to participate in one or more of the Settlements with the Manufacturers and/or the Pharmacies, and your subdivision may participate in those Settlements in which your state has elected to participate. This notice is also sent directly to counsel for such subdivisions if the Implementation Administrator has their information. If you are represented by an attorney with respect to opioid claims, please contact them. Subdivisions can participate in the Settlements whether or not they filed a lawsuit or are represented. WHERE CAN YOU FIND MORE INFORMATION? Detailed information about the Settlements, including each settlement agreement, may be found at: https://nationalopioidsettlement.com . This website also includes information about how the Settlements are being implemented in most states and how funds will be allocated within your state. You are encouraged to review the settlement agreement terms and discuss the terms and benefits with your counsel, your Attorney General’s Office, and other contacts within your state. Information and documents regarding the Settlements and your state allocation can be found on the settlement website at https://nationalopioidsettlement.com . Your subdivision will need to decide whether to participate in the proposed Settlements, and subdivisions are encouraged to work through this process before the April 18, 2023 deadline. HOW DO YOU PARTICIPATE IN THE SETTLEMENTS? The Settlements require that you take affirmative steps to “opt in” to the Settlements. In the next few weeks, you will receive documentation and instructions from the Implementation Administrator or, in some cases, your Attorney General’s Office. In order to participate in a settlement, a subdivision must sign and return the required Participation Form for that settlement. Please add the following email addresses to your “safe” list so emails do not go to spam / junk folders: dse_na3@docusign.net and opioidsparticipation@rubris.com . Please monitor your email for the Participation Forms and instructions. All required documentation must be signed and returned on or before April 18, 2023. 354 New National Opioids Settlements: Teva, Allergan, CVS, Walgreens, and Walmart Opioids Implementation Administrator opioidsparticipation@rubris.com Moorpark city, CA Reference Number: CL-383424 TO LOCAL POLITICAL SUBDIVISIONS AND SPECIAL DISTRICTS: THIS PACKAGE CONTAINS DOCUMENTATION TO PARTICIPATE IN THE NEW NATIONAL OPIOID SETTLEMENTS. YOU MUST TAKE ACTION IN ORDER TO PARTICIPATE. Deadline: April 18, 2023 Five new proposed national opioid settlements (“New National Opioid Settlements ”) have been reached with Teva, Allergan, CVS, Walgreens, and Walmart (“Settling Defendants”). This Participation Package is a follow-up communication to the Notice of National Opioid Settlements recently received electronically by your subdivision or special district (“subdivision”). You are receiving this Participation Package because California is participating in the following settlements: Teva Allergan CVS Walgreens Walmart This electronic envelope includes eleven attachments: Participation Forms for Teva, Allergan, CVS, Walgreens, and Walmart, including a release of any claims. California State-Subdivision Agreements for Teva, Allergan, CVS, Walgreens, and Walmart. Side-letter agreement between California and CVS. The Participation Form and California Intrastate Allocation Agreement for each settlement must be executed, without alteration, and submitted on or before April 18, 2023, in order for your subdivision to be considered for initial participation calculations and payment eligibility. The side-letter agreement between California and CVS modifies the CVS National Settlement’s incentive structure for subdivision participation as it applies to California. Based upon subdivision participation forms received on or before April 18th, the subdivision participation rate will be used to determine whether participation for each deal is sufficient for the settlement to move forward and whether a state earns DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 ATTACHMENT 2 355 its maximum potential payment under the settlement. If the settlement moves forward, your release will become effective. If a settlement does not move forward, that release will not become effective. Any subdivision that does not participate cannot directly share in the settlement funds, even if the subdivision’s state is settling and other participating subdivisions are sharing in settlement funds. Any subdivision that does not participate may also reduce the amount of money for programs to remediate the opioid crisis in its state. Please note, a subdivision will not necessarily directly receive settlement funds by participating; decisions on how settlement funds will be allocated within a state are subject to intrastate agreements or state statutes. You are encouraged to discuss the terms and benefits of the New National Opioid Settlements with your city attorney/county counsel, outside counsel representing your city/county on opioid matters, the Attorney General’s Office, and other contacts within your state. Many states are implementing and allocating funds for these new settlements the same as they did for the prior opioid settlements with McKesson, Cardinal, Amerisource, and J&J/Janssen, but states may choose to treat these settlements differently. Information and documents regarding the New National Opioid Settlements and how they are being implemented in your state and how funds will be allocated within your state allocation can be found on the national settlement website at https://nationalopioidsettlement.com/ and the California Attorney General’s website at https://oag.ca.gov/opioids. These websites will be supplemented as additional documents are created. Please also refer to the Side-Letter Agreement with CVS, which modifies the CVS National Opioid Settlement. How to return signed forms: There are three methods for returning the executed Participation Forms and California-State Subdivision Agreements (“Subdivision Agreements”) to the Implementation Administrator: (1)Electronic Signature via DocuSign : Executing the Participation Forms and the Subdivision Agreements electronically through DocuSign will return the signed forms to the Implementation Administrator and associate your forms with your subdivision’s records. Electronic signature is the most efficient method for returning Participation Forms and Subdivision Agreements, allowing for more timely participation and the potential to meet higher settlement payment thresholds, and is therefore strongly encouraged. (2)Manual Signature returned via DocuSign : DocuSign allows forms to be downloaded, signed manually, then uploaded to DocuSign and returned automatically to the Implementation Administrator. Please be sure to complete all fields and note that execution and return of both the Subdivision Agreement and the Participation Form are required for participation in the corresponding settlement. As with electronic signature, returning manually signed Participation Forms and Subdivision Agreements via DocuSign will associate your signed forms with your subdivision’s records. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 356 (3)Manual Signature returned via electronic mail : If your subdivision is unable to return executed Participation Forms and Subdivision Agreements using DocuSign, signed Participation Forms and Subdivision Agreements may be returned via electronic mail to opioidsparticipation@rubris.com. Please include the name, state, and reference ID of your subdivision in the body of the email and use the subject line Settlement Participation Forms – [Subdivision Name, Subdivision State] – [Reference ID]. N ote that execution and return of both the Subdivision Agreement and the Participation Form are required for participation in the corresponding settlement. Detailed instructions on how to sign and return the Participation Forms and the Subdivision Agreements, including changing the authorized signer, can be found at https://nationalopioidsettlement.com . You may also contact opioidsparticipation@rubris.com . The sign-on period for subdivisions ends on April 18, 2023.  If you have any questions about executing these forms, please contact your city attorney/county counsel, outside counsel representing your city/county on opioids matters, the Implementation Administrator at opioidsparticipation@rubris.com, or the California Attorney General’s Office at opioidsettlement- localgovernment@doj.ca.gov. Thank you,    National Opioids Settlements Implementation Administrator    The Implementation Administrator is  retained to provide the settlement notice required by the respective settlement agreements referenced above and to manage the collection of settlement participation forms for each settlement. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 357 EXHIBIT K Subdivision and Special District Settlement Participation Form Will your subdivision or special district be signing the settlement participation forms for the Allergan and Teva Settlements at this time? [ ] Yes_ta [ ] No_ta Governmental Entity: Moorpark city State: CA Authorized Signatory: /officialname_teva_allergan/ Address 1: /address1_teva_allergan/ Address 2: /address2_teva_allergan/ City, State, Zip: /cit_ta/ /state_ta/ /zi_ta/ Phone: /phone_teva_allergan/ Email: /email_teva_allergan/ The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Agreement dated November 22, 2022 (“Allergan Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Allergan Settlement, release all Released Claims against all Released Entities, and agrees as follows. 1.The Governmental Entity is aware of and has reviewed the Allergan Settlement, understands that all terms in this Election and Release have the meanings defined therein, and agrees that by this Election, the Governmental Entity elects to participate in the Allergan Settlement as provided therein. 2.Following the execution of this Settlement Participation Form, the Governmental Entity shall comply with Section III.B of the Allergan Settlement regarding Cessation of Litigation Activities. 3.The Governmental Entity shall, within fourteen (14) days of the Reference Date and prior to the filing of the Consent Judgment, file a request to dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the MDL Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal With Prejudice substantially in the form found at https://nationalopioidsettlement.com. 4.The Governmental Entity agrees to the terms of the Allergan Settlement pertaining to Subdivisions and Special Districts as defined therein. 5.By agreeing to the terms of the Allergan Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date. 6.The Governmental Entity agrees to use any monies it receives through the Allergan Settlement solely for the purposes provided therein. 1 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 tbrown@moorparkca.gov Troy Brown Moorpark 93021 X California 799 Mooprark Ave 805 517-6212 358 7.The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in, and for resolving disputes to the extent provided in, the Allergan Settlement. 8.The Governmental Entity has the right to enforce the Allergan Settlement as provided therein. 9.The Governmental Entity, as a Participating Subdivision or Participating Special District, hereby becomes a Releasor for all purposes in the Allergan Settlement, including, but not limited to, all provisions of Section V (Release), and along with all departments, agencies, divisions, boards, commissions, Subdivisions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity whether elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist in bringing, or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Allergan Settlement are intended to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Allergan Settlement shall be a complete bar to any Released Claim. 10.The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision or Participating Special District as set forth in the Allergan Settlement. 11.In connection with the releases provided for in the Allergan Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her, would have materially affected his or her settlement with the debtor or released party. A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in the Allergan Settlement. 12.Nothing herein is intended to modify in any way the terms of the Allergan Settlement, to which the Governmental Entity hereby agrees. To the extent this Settlement Participation Form is interpreted differently from the Allergan Settlement in any respect, the Allergan Settlement controls. 2 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 359 I have all necessary power and authorization to execute this Settlement Participation Form on behalf of the Governmental Entity. Signature:/signer_1_teva_allergan/ Name:/name_1_teva_allergan/ Title:/title_1_teva_allergan/ Date:/date_1_teva_allergan/ 3 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 Troy Brown 3/2/2023 City Manager 360 Exhibit K Subdivision and Special District Settlement Participation Form Governmental Entity: Moorpark city State: CA Authorized Signatory: /officialname_teva_allergan/ Address 1: /address1_teva_allergan/ Address 2: /address2_teva_allergan/ City, State, Zip: /cit_ta/ /state_ta/ /zi_ta/ Phone: /phone_teva_allergan/ Email: /email_teva_allergan/ The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Agreement dated November 22, 2022 (“Teva Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Teva Settlement, release all Released Claims against all Released Entities, and agrees as follows. 1.The Governmental Entity is aware of and has reviewed the Teva Settlement, understands that all terms in this Election and Release have the meanings defined therein, and agrees that by this Election, the Governmental Entity elects to participate in the Teva Settlement as provided therein. 2.Following the execution of this Settlement Participation Form, the Governmental Entity shall comply with Section III.B of the Teva Settlement regarding Cessation of Litigation Activities. 3.The Governmental Entity shall, within 14 days of the Reference Date and prior to the filing of the Consent Judgment, file a request to dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal With Prejudice substantially in the form found at https://nationalopioidsettlement.com. 4.The Governmental Entity agrees to the terms of the Teva Settlement pertaining to Subdivisions as defined therein. 5.By agreeing to the terms of the Teva Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date. 6.The Governmental Entity agrees to use any monies it receives through the Teva Settlement solely for the purposes provided therein. 7.The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in, and for resolving disputes to the extent provided in, the Teva Settlement. 1 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 California 93021Moorpark tbrown@moorparkca.gov 805 517-6212 799 Mooprark Ave Troy Brown 361 8.The Governmental Entity has the right to enforce the Teva Settlement as provided therein. 9.The Governmental Entity, as a Participating Subdivision or Participating Special District, hereby becomes a Releasor for all purposes in the Teva Settlement, including but not limited to all provisions of Section V (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Teva Settlement are intended by Released Entitles and the Governmental Entity to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Teva Settlement shall be a complete bar to any Released Claim. 10.The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision or Participating Special District as set forth in the Teva Settlement. 11.In connection with the releases provided for in the Teva Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her, would have materially affected his or her settlement with the debtor or released party. A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in the Teva Settlement. 12.Nothing herein is intended to modify in any way the terms of the Teva Settlement, to which Governmental Entity hereby agrees. To the extent this Election and Release is interpreted differently from the Teva Settlement in any respect, the Teva Settlement controls. 2 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 362 I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity. Signature:/signer_1_teva_allergan/ Name:/name_1_teva_allergan/ Title:/title_1_teva_allergan/ Date:/date_1_teva_allergan/ 3 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 Troy Brown 3/2/2023 City Manager 363 EXHIBIT K Subdivision Participation and Release Form Will your subdivision or special district be signing the settlement participation form for the CVS Settlement at this time? [ ] Yes_cv [ ] No_cv Governmental Entity: Moorpark city State: CA Authorized Signatory: /officialname_cvs/ Address 1: /address1_cvs/ Address 2: /address2_cvs/ City, State, Zip: /cit_cv/ /state_cv/ /zi_cv/ Phone: /phone_cvs/ Email: /email_cvs/ The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement Agreement dated December 9, 2022 (“CVS Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the CVS Settlement, release all Released Claims against all Released Entities, and agrees as follows. 1.The Governmental Entity is aware of and has reviewed the CVS Settlement, understands that all terms in this Participation and Release Form have the meanings defined therein, and agrees that by executing this Participation and Release Form, the Governmental Entity elects to participate in the CVS Settlement and become a Participating Subdivision as provided therein. 2.The Governmental Entity shall promptly, and in any event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice substantially in the form found at https://nationalopioidsettlement.com. 3.The Governmental Entity agrees to the terms of the CVS Settlement pertaining to Participating Subdivisions as defined therein. 4.By agreeing to the terms of the CVS Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date. 5.The Governmental Entity agrees to use any monies it receives through the CVS Settlement solely for the purposes provided therein. 1 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 93021 805 517-6212 tbrown@moorparkca.gov Troy Brown Moorpark California 799 Moorpark Ave X 364 6.The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in, and for resolving disputes to the extent provided in, the CVS Settlement. The Governmental Entity likewise agrees to arbitrate before the National Arbitration Panel as provided in, and for resolving disputes to the extent otherwise provided in, the CVS Settlement. 7.The Governmental Entity has the right to enforce the CVS Settlement as provided therein. 8.The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the CVS Settlement, including without limitation all provisions of Section XI (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the CVS Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The CVS Settlement shall be a complete bar to any Released Claim. 9.The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the CVS Settlement. 10.In connection with the releases provided for in the CVS Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her would have materially affected his or her settlement with the debtor or released party. A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in the CVS Settlement. 2 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 365 11.Nothing herein is intended to modify in any way the terms of the CVS Settlement, to which Governmental Entity hereby agrees. To the extent this Participation and Release Form is interpreted differently from the CVS Settlement in any respect, the CVS Settlement controls. I have all necessary power and authorization to execute this Participation and Release Form on behalf of the Governmental Entity. Signature:/signer_1_cvs/ Name:/name_1_cvs/ Title:/title_1_cvs/ Date:/date_1_cvs/ 3 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 Troy Brown 3/2/2023 City Manager 366 EXHIBIT K Subdivision Participation and Release Form Will your subdivision or special district be signing the settlement participation form for the Walgreens Settlement at this time? [ ] Yes_wg [ ] No_wg Governmental Entity: Moorpark city State: CA Authorized Signatory: /officialname_walgreens/ Address 1: /address1_ walgreens/ Address 2: /address2_ walgreens/ City, State, Zip: /cit_wg/ /state_wg/ /zi_wg/ Phone: /phone_walgreens/ Email: /email_walgreens/ The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement Agreement dated December 9, 2022 (“Walgreens Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Walgreens Settlement, release all Released Claims against all Released Entities, and agrees as follows. 1.The Governmental Entity is aware of and has reviewed the Walgreens Settlement, understands that all terms in this Participation and Release Form have the meanings defined therein, and agrees that by executing this Participation and Release Form, the Governmental Entity elects to participate in the Walgreens Settlement and become a Participating Subdivision as provided therein. 2.The Governmental Entity shall promptly, and in any event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice substantially in the form found at https://nationalopioidsettlement.com. 3.The Governmental Entity agrees to the terms of the Walgreens Settlement pertaining to Participating Subdivisions as defined therein. 4.By agreeing to the terms of the Walgreens Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date. 5.The Governmental Entity agrees to use any monies it receives through the Walgreens Settlement solely for the purposes provided therein. 1 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 Moorpark 805 517-6212 799 Moorpark Ave tbrown@moorparkca.gov 93021 X Troy Brown California 367 6.The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in, and for resolving disputes to the extent provided in, the Walgreens Settlement. The Governmental Entity likewise agrees to arbitrate before the National Arbitration Panel as provided in, and for resolving disputes to the extent otherwise provided in, the Walgreens Settlement. 7.The Governmental Entity has the right to enforce the Walgreens Settlement as provided therein. 8.The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Walgreens Settlement, including without limitation all provisions of Section XI (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Walgreens Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Walgreens Settlement shall be a complete bar to any Released Claim. 9.The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the Walgreens Settlement. 10.In connection with the releases provided for in the Walgreens Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her would have materially affected his or her settlement with the debtor or released party. A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in the Walgreens Settlement. 2 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 368 11.Nothing herein is intended to modify in any way the terms of the Walgreens Settlement, to which Governmental Entity hereby agrees. To the extent this Participation and Release Form is interpreted differently from the Walgreens Settlement in any respect, the Walgreens Settlement controls. I have all necessary power and authorization to execute this Participation and Release Form on behalf of the Governmental Entity. Signature:/signer_1_walgreens/ Name:/name_1_walgreens/ Title:/title_1_walgreens/ Date:/date_1_walgreens/ 3 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 Troyh Brown 3/2/2023 City Manager 369 EXHIBIT K Subdivision Participation Form Will your subdivision or special district be signing the settlement participation form for the Walmart Settlement at this time? [ ] Yes_wm [ ] No_wm Governmental Entity: Moorpark city State: CA Authorized Official: /officialname_walmart/ Address 1: /address1_walmart/ Address 2: /address2_walmart/ City, State, Zip: /cit_wm/ /state_wm/ /zi_wm/ Phone: /phone_walmart/ Email: /email_walmart/ The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement Agreement dated November 14, 2022 (“Walmart Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Walmart Settlement, release all Released Claims against all Released Entities, and agrees as follows. 1. The Governmental Entity is aware of and has reviewed the Walmart Settlement, understands that all terms in this Election and Release have the meanings defined therein, and agrees that by this Election, the Governmental Entity elects to participate in the Walmart Settlement and become a Participating Subdivision as provided therein. 2. The Governmental Entity shall promptly, and in any event within 14 days of the Effective Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal With Prejudice substantially in the form found at https://nationalopioidsettlement.com/. 3. The Governmental Entity agrees to the terms of the Walmart Settlement pertaining to Subdivisions as defined therein. 4. By agreeing to the terms of the Walmart Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date. 5. The Governmental Entity agrees to use any monies it receives through the Walmart Settlement solely for the purposes provided therein. 1 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 93021 805 517-6212 Moorpark X Troy Brown California 799 Moorpark Ave tbrown@moorparkca.gov 370 6.The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in, and for resolving disputes to the extent provided in, the Walmart Settlement. 7.The Governmental Entity has the right to enforce the Walmart Settlement as provided therein. 8.The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Walmart Settlement, including but not limited to all provisions of Section X (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Walmart Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Walmart Settlement shall be a complete bar to any Released Claim. 9.In connection with the releases provided for in the Walmart Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her, would have materially affected his or her settlement with the debtor or released party. A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in the Walmart Settlement. 10.Nothing herein is intended to modify in any way the terms of the Walmart Settlement, to which Governmental Entity hereby agrees. To the extent this Election and Release is interpreted differently from the Walmart Settlement in any respect, the Walmart Settlement controls. 2 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 371 I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity. Signature:/signer_1_walmart/ Name:/name_1_walmart/ Title:/title_1_walmart/ Date:/date_1_walmart/ 3 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 Troy Brown 3/2/2023 City Manager 372 1 Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Allergan Settlement 1.Introduction Pursuant to the Allergan Settlement Agreement, dated as of November 22, 2022, and any revision thereto (the “Allergan Settlement Agreement”), including Section VIII and Exhibit O, the State of California proposes this agreement (the “CA Allergan Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections VI, VII, and VIII of the Allergan Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections XII or XIII of the Allergan Settlement Agreement. Pursuant to Exhibit O, Paragraph 4, of the Allergan Settlement Agreement, acceptance of this CA Allergan Allocation Agreement is a requirement to be an Initial Participating Subdivision.1 Further, pursuant to Sections X.B and X.C of the Teva Settlement Agreement and Sections IX.B and IX.C of the Allergan Settlement Agreement, eligible Subdivisions must participate in both the Teva Settlement Agreement and Allergan Settlement Agreement, or neither.2 2.Definitions a)CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Allergan Settlement Agreement. b)Teva Settlement Agreement means the Teva Settlement Agreement dated November 22, 2022, and any revision thereto. c)CVS Settlement Agreement means the CVS Settlement Agreement dated December 9, 2022, and any revision thereto as well as any modification thereto entered into by the State of California and CVS. d)Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto. e)Janssen Settlement Agreement means the Janssen Settlement Agreement dated July 21, 2021, and any revision thereto. 1 A parallel but separate agreement (the “CA Teva Allocation Agreement”) will govern the allocation, distribution, and use of settlement fund payments under the Teva Settlement Agreement. 2 However, if Teva enters bankruptcy prior to the Effective Date, an eligible Subdivision can choose to only join the Allergan Settlement Agreement. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 373 2 f)Walgreens Settlement Agreement means the Walgreens Settlement Agreement dated December 9, 2022, and any revision thereto. g)Walmart Settlement Agreement means the Walmart Settlement Agreement dated November 14, 2022, and any revision thereto. h)CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, San Leandro Unified School District, Pleasant Valley School District Board, and LA Care Health Plan. i)Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j)Opioid Defendant means any defendant (including but not limited to Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020. 3.General Terms This agreement is subject to the requirements of the Allergan Settlement Agreement, as well as applicable law, and the Allergan Settlement Agreement governs over any inconsistent provision of this CA Allergan Allocation Agreement. Terms used in this CA Allergan Allocation Agreement have the same meaning as in the Allergan Settlement Agreement unless otherwise defined herein. Pursuant to Section VIII(E)(1) of the Allergan Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VIII(C) of the Allergan Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation. 4.State Allocation DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 374 3 The Settlement Fund payments to California,3 pursuant to the Allergan Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Allergan Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”). A.State of California Allocation Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation. B.CA Abatement Accounts Fund i.Allocation of CA Abatement Accounts Funds a)Seventy percent of the total Settlement Fund payments will be allocated to the CA Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision. The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For the avoidance of doubt, CA Litigating Special Districts and California towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of CA Abatement Accounts Funds. b)A CA Participating Subdivision that is a county, or a city and county, will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision, and will receive payments as provided in the Allergan Settlement Agreement. c)A CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, rather than to the city, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of 3 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 375 4 CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d)A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Allergan Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions. e)The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. f)Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Allergan Settlement Agreement and this CA Allergan Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2. ii.Use of CA Abatement Accounts Funds a)The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Allergan Settlement Agreement. b)In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities: (1)the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2)creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3)addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD; (4)diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5)interventions to prevent drug addiction in vulnerable youth. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 376 5 c)The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d)For the avoidance of doubt, and subject to the requirements of the Allergan Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Allergan Settlement Agreement and this CA Allergan Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated. iii.CA Abatement Accounts Fund Oversight a)Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Allergan Settlement Agreement and this CA Allergan Allocation Agreement. b)If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Allergan Settlement Agreement or this CA Allergan Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c)If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame. d)If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 377 6 enforce the requirements of the Allergan Settlement Agreement or this CA Allergan Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement. e)Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions. C.CA Subdivision Fund i.Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Allergan Settlement Agreement and this CA Allergan Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid-related expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2. The CA Subdivision Funds will be allocated as follows: a)First, funds in the CA Subdivision Fund shall be used to pay the Special Master’s reasonable fees and expenses in accordance with the procedures and limitations set forth in Appendix 2 to this document; b)Second, funds will be allocated to Plaintiff Subdivisions that are Initial Participating Subdivisions that have been awarded Costs, as defined by and in accordance with the procedures and limitations set forth in Appendix 2 to this document. c)Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50% of the total CA Subdivision Fund received in any year pursuant to Appendix 2, Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Initial Participating Subdivisions, in relative proportion to the Local Allocation. These funds shall be used to fund future opioid-related projects and to reimburse past opioid-related expenses, which may include fees and expenses related to litigation against any Opioid Defendant. D.Provision for State Back-Stop Agreement On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 378 7 contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Teva Settlement Agreement and Allergan Settlement Agreement, and, if applicable, the CVS Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and Walmart Settlement Agreement. A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(X), of the Allergan Settlement Agreement and the MDL Fees Order, so long as such contingency fees do not exceed a total contingency fee of 15% of the total gross recovery of the Plaintiff Subdivision pursuant to the Allergan Settlement, inclusive of contingency fees from the national Attorney Fee Fund and this State Back-Stop Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Allergan Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments. To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 3 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 3. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms. For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General. 5.State and Subdivision Reporting a)DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site. b)Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Allergan Settlement Agreement and this CA Allergan Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 379 8 c)The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d)Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Allergan Settlement Agreement and this CA Allergan Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VIII(C) of the Allergan Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Allergan. e)In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions. 6.Miscellaneous a)The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Allergan Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa. b)Except as provided in the Allergan Settlement Agreement, this CA Allergan Allocation Agreement is not enforceable by any party other than the State and the CA Participating Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party. c)Except as provided in the CA Allergan Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d)Except as provided in the Allergan Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 380 9 The undersigned, Moorpark city, ACKNOWLEDGES acceptance of this Proposed California State- Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Allergan Settlement is a requirement to be an Initial Participating Subdivision in the Allergan Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Allergan Settlement. EXECUTED on /date_1_teva_allergan/. Signature:/signer_1_teva_allergan/ Name:/name_1_teva_allergan/ Title:/title_1_teva_allergan/ Date:/date_1_teva_allergan/ DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 3/2/2023 City Manager Troy Brown 3/2/2023 381 DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Allergan Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one- hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 382 APPENDIX 1 1 of 15 100.000%100.000%100.000% Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage County Alameda County Alameda 2.332%2.853%2.4237952% City Alameda Alameda 0.069%0.0570162% City Albany Alameda 0.013%0.0107768% City Berkeley Alameda 0.152%0.1249656% City Dublin Alameda 0.033%0.040%0.0338810% City Emeryville Alameda 0.023%0.0185765% City Fremont Alameda 0.108%0.0888576% City Hayward Alameda 0.117%0.0966218% City Livermore Alameda 0.054%0.0446740% City Newark Alameda 0.026%0.0217626% City Oakland Alameda 0.486%0.595%0.5055601% City Piedmont Alameda 0.014%0.0114064% City Pleasanton Alameda 0.067%0.0554547% City San Leandro Alameda 0.039%0.0321267% City Union City Alameda 0.043%0.0352484% County Amador County Amador 0.226%0.277%0.2349885% County Butte County Butte 1.615%1.975%1.6783178% City Chico Butte 0.216%0.264%0.2246499% City Oroville Butte 0.079%0.0646595% County Calaveras County Calaveras 0.226%0.277%0.2351644% County Colusa County Colusa 0.059%0.0489221% County Contra Costa County Contra Costa 2.102%2.571%2.1844585% City Antioch Contra Costa 0.037%0.0301879% City Brentwood Contra Costa 0.026%0.0215339% City Clayton Contra Costa 0.002%0.0018060% City Concord Contra Costa 0.055%0.0456676% City Danville Contra Costa 0.010%0.0082255% City El Cerrito Contra Costa 0.023%0.0189024% City Hercules Contra Costa 0.010%0.0078273% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 383 APPENDIX 1 2 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Lafayette Contra Costa 0.006%0.0046030% City Martinez Contra Costa 0.012%0.0098593% City Moraga Contra Costa 0.004%0.0031007% City Oakley Contra Costa 0.010%0.0079416% City Orinda Contra Costa 0.005%0.0038157% City Pinole Contra Costa 0.013%0.0110909% City Pittsburg Contra Costa 0.053%0.0436369% City Pleasant Hill Contra Costa 0.013%0.0106309% City Richmond Contra Costa 0.146%0.1201444% City San Pablo Contra Costa 0.018%0.0148843% City San Ramon Contra Costa 0.021%0.0176459% City Walnut Creek Contra Costa 0.026%0.0212132% County Del Norte County Del Norte 0.114%0.140%0.1189608% County El Dorado County El Dorado 0.768%0.939%0.7980034% City Placerville El Dorado 0.015%0.0127642% City South Lake Tahoe El Dorado 0.081%0.0665456% County Fresno County Fresno 1.895%2.318%1.9693410% City Clovis Fresno 0.065%0.0536211% City Coalinga Fresno 0.012%0.0098554% City Fresno Fresno 0.397%0.3270605% City Kerman Fresno 0.005%0.0042534% City Kingsburg Fresno 0.008%0.0066167% City Mendota Fresno 0.002%0.0019387% City Orange Cove Fresno 0.004%0.0035607% City Parlier Fresno 0.008%0.0069755% City Reedley Fresno 0.012%0.0098804% City Sanger Fresno 0.018%0.0146135% City Selma Fresno 0.015%0.0127537% County Glenn County Glenn 0.107%0.131%0.1116978% County Humboldt County Humboldt 1.030%1.260%1.0703185% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 384 APPENDIX 1 3 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Arcata Humboldt 0.054%0.0447660% City Eureka Humboldt 0.117%0.143%0.1216284% City Fortuna Humboldt 0.032%0.0266837% County Imperial County Imperial 0.258%0.315%0.2679006% City Brawley Imperial 0.011%0.0087986% City Calexico Imperial 0.019%0.0152799% City El Centro Imperial 0.158%0.1302522% City Imperial Imperial 0.006%0.0048791% County Inyo County Inyo 0.073%0.089%0.0754413% County Kern County Kern 2.517%3.079%2.6159145% City Arvin Kern 0.006%0.0046425% City Bakersfield Kern 0.212%0.1747198% City California City Kern 0.009%0.0070820% City Delano Kern 0.030%0.0249316% City McFarland Kern 0.003%0.0025644% City Ridgecrest Kern 0.015%0.0120938% City Shafter Kern 0.013%0.0103417% City Tehachapi Kern 0.009%0.0073580% City Wasco Kern 0.008%0.0069861% County Kings County Kings 0.293%0.2413469% City Avenal Kings 0.007%0.0056335% City Corcoran Kings 0.013%0.0107032% City Hanford Kings 0.027%0.0226038% City Lemoore Kings 0.016%0.0131900% County Lake County Lake 0.795%0.6545389% City Clearlake Lake 0.041%0.050%0.0426253% City Lakeport Lake 0.021%0.026%0.0222964% County Lassen County Lassen 0.319%0.391%0.3320610% City Susanville Lassen 0.027%0.0219295% County Los Angeles County Los Angeles 13.896%16.999%14.4437559% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 385 APPENDIX 1 4 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Agoura Hills Los Angeles 0.005%0.0040024% City Alhambra Los Angeles 0.042%0.0343309% City Arcadia Los Angeles 0.033%0.0267718% City Artesia Los Angeles 0.001%0.0005100% City Azusa Los Angeles 0.026%0.0210857% City Baldwin Park Los Angeles 0.027%0.0218520% City Bell Los Angeles 0.008%0.0068783% City Bellflower Los Angeles 0.002%0.0014485% City Bell Gardens Los Angeles 0.014%0.0114301% City Beverly Hills Los Angeles 0.065%0.0534897% City Burbank Los Angeles 0.100%0.0823132% City Calabasas Los Angeles 0.006%0.0048948% City Carson Los Angeles 0.019%0.0159805% City Cerritos Los Angeles 0.005%0.0039682% City Claremont Los Angeles 0.010%0.0082584% City Commerce Los Angeles 0.000%0.0002971% City Compton Los Angeles 0.044%0.0361882% City Covina Los Angeles 0.028%0.0229127% City Cudahy Los Angeles 0.001%0.0006020% City Culver City Los Angeles 0.055%0.0449894% City Diamond Bar Los Angeles 0.001%0.0006993% City Downey Los Angeles 0.052%0.0429994% City Duarte Los Angeles 0.003%0.0027261% City El Monte Los Angeles 0.031%0.038%0.0318985% City El Segundo Los Angeles 0.033%0.0268020% City Gardena Los Angeles 0.034%0.0278088% City Glendale Los Angeles 0.166%0.1366586% City Glendora Los Angeles 0.016%0.0134411% City Hawaiian Gardens Los Angeles 0.005%0.0040549% City Hawthorne Los Angeles 0.050%0.0407833% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 386 APPENDIX 1 5 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Hermosa Beach Los Angeles 0.018%0.0145307% City Huntington Park Los Angeles 0.023%0.0190667% City Inglewood Los Angeles 0.059%0.0489195% City La Cañada Flintridge Los Angeles 0.003%0.0025565% City Lakewood Los Angeles 0.005%0.0039971% City La Mirada Los Angeles 0.010%0.0081572% City Lancaster Los Angeles 0.045%0.0369689% City La Puente Los Angeles 0.002%0.0012999% City La Verne Los Angeles 0.024%0.0194190% City Lawndale Los Angeles 0.002%0.0017731% City Lomita Los Angeles 0.004%0.0031940% City Long Beach Los Angeles 0.439%0.3614151% City Los Angeles Los Angeles 2.715%3.321%2.8218811% City Lynwood Los Angeles 0.016%0.0134345% City Malibu Los Angeles 0.002%0.0019269% City Manhattan Beach Los Angeles 0.032%0.0260686% City Maywood Los Angeles 0.004%0.0035528% City Monrovia Los Angeles 0.031%0.0254455% City Montebello Los Angeles 0.030%0.0250670% City Monterey Park Los Angeles 0.031%0.0256677% City Norwalk Los Angeles 0.031%0.0258228% City Palmdale Los Angeles 0.046%0.0375827% City Palos Verdes Estates Los Angeles 0.006%0.0053102% City Paramount Los Angeles 0.011%0.0091483% City Pasadena Los Angeles 0.146%0.1200524% City Pico Rivera Los Angeles 0.022%0.0183333% City Pomona Los Angeles 0.111%0.0911933% City Rancho Palos Verdes Los Angeles 0.002%0.0012645% City Redondo Beach Los Angeles 0.062%0.0506992% City Rosemead Los Angeles 0.003%0.0028260% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 387 APPENDIX 1 6 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City San Dimas Los Angeles 0.003%0.0022016% City San Fernando Los Angeles 0.013%0.0104837% City San Gabriel Los Angeles 0.018%0.0147726% City San Marino Los Angeles 0.009%0.0073791% City Santa Clarita Los Angeles 0.022%0.0178167% City Santa Fe Springs Los Angeles 0.031%0.0257531% City Santa Monica Los Angeles 0.158%0.1298513% City Sierra Madre Los Angeles 0.006%0.0048646% City Signal Hill Los Angeles 0.010%0.0084884% City South El Monte Los Angeles 0.005%0.0039603% City South Gate Los Angeles 0.020%0.0166272% City South Pasadena Los Angeles 0.012%0.0095334% City Temple City Los Angeles 0.005%0.0039498% City Torrance Los Angeles 0.112%0.0919820% City Walnut Los Angeles 0.006%0.0047305% City West Covina Los Angeles 0.049%0.0404521% City West Hollywood Los Angeles 0.013%0.0108517% City Whittier Los Angeles 0.032%0.0260581% County Madera County Madera 0.349%0.427%0.3630669% City Chowchilla Madera 0.012%0.0097332% City Madera Madera 0.039%0.0318441% County Marin County Marin 0.564%0.690%0.5861325% City Larkspur Marin 0.015%0.0124697% City Mill Valley Marin 0.020%0.0168401% City Novato Marin 0.028%0.0229824% City San Anselmo Marin 0.009%0.0078062% City San Rafael Marin 0.089%0.0729823% County Mariposa County Mariposa 0.084%0.103%0.0876131% County Mendocino County Mendocino 0.439%0.536%0.4558394% City Ukiah Mendocino 0.039%0.0317153% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 388 APPENDIX 1 7 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage County Merced County Merced 0.551%0.674%0.5724262% City Atwater Merced 0.024%0.0195846% City Livingston Merced 0.006%0.0045873% City Los Banos Merced 0.020%0.0165142% City Merced Merced 0.061%0.0500762% County Modoc County Modoc 0.065%0.080%0.0678250% County Mono County Mono 0.023%0.029%0.0242606% County Monterey County Monterey 0.908%1.111%0.9437083% City Greenfield Monterey 0.006%0.0050552% City King City Monterey 0.005%0.0037355% City Marina Monterey 0.017%0.0144098% City Monterey Monterey 0.041%0.0336540% City Pacific Grove Monterey 0.009%0.0074842% City Salinas Monterey 0.094%0.0776576% City Seaside Monterey 0.023%0.0191772% City Soledad Monterey 0.007%0.0060870% County Napa County Napa 0.288%0.352%0.2994325% City American Canyon Napa 0.017%0.0136869% City Napa Napa 0.078%0.0642783% County Nevada County Nevada 0.441%0.539%0.4579827% City Grass Valley Nevada 0.024%0.0197805% City Truckee Nevada 0.003%0.0023843% County Orange County Orange 4.364%5.339%4.5363576% City Aliso Viejo Orange 0.014%0.0113841% City Anaheim Orange 0.554%0.678%0.5759282% City Brea Orange 0.086%0.0708897% City Buena Park Orange 0.087%0.0714352% City Costa Mesa Orange 0.124%0.152%0.1288366% City Cypress Orange 0.033%0.0271937% City Dana Point Orange 0.001%0.0005560% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 389 APPENDIX 1 8 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Fountain Valley Orange 0.055%0.0455980% City Fullerton Orange 0.137%0.168%0.1425744% City Garden Grove Orange 0.213%0.1752482% City Huntington Beach Orange 0.247%0.302%0.2568420% City Irvine Orange 0.139%0.170%0.1442350% City Laguna Beach Orange 0.047%0.058%0.0493043% City Laguna Hills Orange 0.014%0.0115457% City Laguna Niguel Orange 0.001%0.0007071% City Laguna Woods Orange 0.001%0.0006546% City La Habra Orange 0.060%0.073%0.0621049% City Lake Forest Orange 0.012%0.0101249% City La Palma Orange 0.012%0.0095439% City Los Alamitos Orange 0.008%0.0069190% City Mission Viejo Orange 0.014%0.0117560% City Newport Beach Orange 0.179%0.1470134% City Orange Orange 0.150%0.1231320% City Placentia Orange 0.029%0.035%0.0298912% City Rancho Santa Margarita Orange 0.001%0.0006296% City San Clemente Orange 0.008%0.010%0.0086083% City San Juan Capistrano Orange 0.008%0.0065510% City Santa Ana Orange 0.502%0.614%0.5213866% City Seal Beach Orange 0.020%0.0165891% City Stanton Orange 0.035%0.0291955% City Tustin Orange 0.073%0.0600341% City Westminster Orange 0.104%0.127%0.1082721% City Yorba Linda Orange 0.044%0.0362223% County Placer County Placer 1.045%1.278%1.0861002% City Auburn Placer 0.017%0.0141114% City Lincoln Placer 0.031%0.0255599% City Rocklin Placer 0.076%0.0625485% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 390 APPENDIX 1 9 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Roseville Placer 0.196%0.1616559% County Plumas County Plumas 0.205%0.251%0.2128729% County Riverside County Riverside 4.534%5.547%4.7128296% City Banning Riverside 0.017%0.0143848% City Beaumont Riverside 0.021%0.0171135% City Blythe Riverside 0.012%0.0096714% City Canyon Lake Riverside 0.000%0.0001761% City Cathedral City Riverside 0.067%0.0553614% City Coachella Riverside 0.021%0.0173054% City Corona Riverside 0.147%0.1207083% City Desert Hot Springs Riverside 0.024%0.0200433% City Eastvale Riverside 0.000%0.0002747% City Hemet Riverside 0.051%0.0421792% City Indio Riverside 0.056%0.0457794% City Jurupa Valley Riverside 0.001%0.0008991% City Lake Elsinore Riverside 0.021%0.0172949% City La Quinta Riverside 0.063%0.0516732% City Menifee Riverside 0.032%0.0260909% City Moreno Valley Riverside 0.137%0.1130348% City Murrieta Riverside 0.048%0.059%0.0497423% City Norco Riverside 0.016%0.0134542% City Palm Desert Riverside 0.083%0.0682465% City Palm Springs Riverside 0.076%0.0629862% City Perris Riverside 0.009%0.0076774% City Rancho Mirage Riverside 0.052%0.0431098% City Riverside Riverside 0.268%0.2206279% City San Jacinto Riverside 0.010%0.0085936% City Temecula Riverside 0.022%0.0180086% City Wildomar Riverside 0.008%0.0062500% County Sacramento County Sacramento 3.797%4.645%3.9465887% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 391 APPENDIX 1 10 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Citrus Heights Sacramento 0.057%0.0465312% City Elk Grove Sacramento 0.130%0.1066994% City Folsom Sacramento 0.108%0.0890850% City Galt Sacramento 0.017%0.0143704% City Rancho Cordova Sacramento 0.008%0.0067679% City Sacramento Sacramento 0.721%0.882%0.7496530% County San Benito County San Benito 0.106%0.130%0.1101417% City Hollister San Benito 0.027%0.0225355% County San Bernardino County San Bernardino 3.259%3.987%3.3878124% City Adelanto San Bernardino 0.008%0.0066640% City Apple Valley San Bernardino 0.025%0.0207360% City Barstow San Bernardino 0.015%0.0122056% City Chino San Bernardino 0.064%0.0525893% City Chino Hills San Bernardino 0.001%0.0006388% City Colton San Bernardino 0.031%0.0253443% City Fontana San Bernardino 0.112%0.0920543% City Grand Terrace San Bernardino 0.006%0.0051051% City Hesperia San Bernardino 0.035%0.0291522% City Highland San Bernardino 0.004%0.0029061% City Loma Linda San Bernardino 0.009%0.0071188% City Montclair San Bernardino 0.039%0.0322108% City Ontario San Bernardino 0.179%0.1472934% City Rancho Cucamonga San Bernardino 0.084%0.0689431% City Redlands San Bernardino 0.057%0.0469150% City Rialto San Bernardino 0.073%0.0603206% City San Bernardino San Bernardino 0.178%0.1461880% City Twentynine Palms San Bernardino 0.002%0.0012605% City Upland San Bernardino 0.052%0.0424460% City Victorville San Bernardino 0.033%0.0269400% City Yucaipa San Bernardino 0.016%0.0128772% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 392 APPENDIX 1 11 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Yucca Valley San Bernardino 0.003%0.0021228% County San Diego County San Diego 5.706%6.980%5.9309748% City Carlsbad San Diego 0.128%0.1050485% City Chula Vista San Diego 0.189%0.231%0.1961456% City Coronado San Diego 0.044%0.0359095% City El Cajon San Diego 0.113%0.0933582% City Encinitas San Diego 0.061%0.074%0.0630289% City Escondido San Diego 0.145%0.1192204% City Imperial Beach San Diego 0.014%0.0118283% City La Mesa San Diego 0.055%0.068%0.0575593% City Lemon Grove San Diego 0.022%0.0183911% City National City San Diego 0.080%0.0656808% City Oceanside San Diego 0.213%0.1753428% City Poway San Diego 0.062%0.0511040% City San Diego San Diego 1.975%2.416%2.0531169% City San Marcos San Diego 0.089%0.0733897% City Santee San Diego 0.033%0.0268401% City Solana Beach San Diego 0.017%0.0138564% City Vista San Diego 0.052%0.0425144% Consolidated San Francisco San Francisco 3.026%3.702%3.1457169% County San Joaquin County San Joaquin 1.680%2.055%1.7460399% City Lathrop San Joaquin 0.009%0.0075394% City Lodi San Joaquin 0.053%0.0439484% City Manteca San Joaquin 0.054%0.0443454% City Ripon San Joaquin 0.013%0.0104219% City Stockton San Joaquin 0.313%0.383%0.3256176% City Tracy San Joaquin 0.084%0.0692047% County San Luis Obispo County San Luis Obispo 0.816%0.999%0.8484126% City Arroyo Grande San Luis Obispo 0.024%0.0199053% City Atascadero San Luis Obispo 0.029%0.0240680% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 393 APPENDIX 1 12 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City El Paso de Robles (Paso Robles)San Luis Obispo 0.043%0.0353456% City Grover Beach San Luis Obispo 0.017%0.0137881% City Morro Bay San Luis Obispo 0.020%0.0160922% City San Luis Obispo San Luis Obispo 0.077%0.0637841% County San Mateo County San Mateo 1.074%1.313%1.1159599% City Belmont San Mateo 0.021%0.0169860% City Burlingame San Mateo 0.019%0.0152537% City Daly City San Mateo 0.044%0.0363880% City East Palo Alto San Mateo 0.013%0.0103982% City Foster City San Mateo 0.020%0.0166101% City Half Moon Bay San Mateo 0.004%0.0031638% City Hillsborough San Mateo 0.013%0.0110029% City Menlo Park San Mateo 0.015%0.0126209% City Millbrae San Mateo 0.013%0.0105836% City Pacifica San Mateo 0.016%0.0130625% City Redwood City San Mateo 0.056%0.0463511% City San Bruno San Mateo 0.021%0.0172161% City San Carlos San Mateo 0.013%0.0108885% City San Mateo San Mateo 0.052%0.0425841% City South San Francisco San Mateo 0.043%0.0353943% County Santa Barbara County Santa Barbara 1.132%1.385%1.1768968% City Carpinteria Santa Barbara 0.001%0.0008938% City Goleta Santa Barbara 0.004%0.0028969% City Lompoc Santa Barbara 0.047%0.0389379% City Santa Barbara Santa Barbara 0.122%0.1004559% City Santa Maria Santa Barbara 0.058%0.0479179% County Santa Clara County Santa Clara 2.404%2.941%2.4987553% City Campbell Santa Clara 0.014%0.0112566% City Cupertino Santa Clara 0.008%0.0066824% City Gilroy Santa Clara 0.025%0.0202891% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 394 APPENDIX 1 13 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Los Altos Santa Clara 0.013%0.0103338% City Los Gatos Santa Clara 0.013%0.0103220% City Milpitas Santa Clara 0.036%0.0298120% City Morgan Hill Santa Clara 0.015%0.0124619% City Mountain View Santa Clara 0.041%0.0334608% City Palo Alto Santa Clara 0.039%0.0323080% City San Jose Santa Clara 0.294%0.360%0.3054960% City Santa Clara Santa Clara 0.067%0.0549723% City Saratoga Santa Clara 0.004%0.0034161% City Sunnyvale Santa Clara 0.053%0.0434069% County Santa Cruz County Santa Cruz 0.783%0.957%0.8135396% City Capitola Santa Cruz 0.020%0.0168191% City Santa Cruz Santa Cruz 0.143%0.1180348% City Scotts Valley Santa Cruz 0.015%0.0126525% City Watsonville Santa Cruz 0.063%0.0520136% County Shasta County Shasta 1.095%1.339%1.1380191% City Anderson Shasta 0.024%0.0198896% City Redding Shasta 0.284%0.2334841% City Shasta Lake Shasta 0.004%0.0031993% County Siskiyou County Siskiyou 0.228%0.279%0.2373393% County Solano County Solano 0.760%0.6260795% City Benicia Solano 0.031%0.0253903% City Dixon Solano 0.016%0.0130849% City Fairfield Solano 0.109%0.0897317% City Suisun City Solano 0.021%0.0176183% City Vacaville Solano 0.119%0.0976497% City Vallejo Solano 0.167%0.1373644% County Sonoma County Sonoma 1.218%1.490%1.2661290% City Healdsburg Sonoma 0.032%0.0266929% City Petaluma Sonoma 0.081%0.0667507% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 395 APPENDIX 1 14 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Rohnert Park Sonoma 0.041%0.0340759% City Santa Rosa Sonoma 0.184%0.1519070% City Sonoma Sonoma 0.022%0.0183438% City Windsor Sonoma 0.016%0.0129298% County Stanislaus County Stanislaus 1.722%1.4182273% City Ceres Stanislaus 0.041%0.0340260% City Modesto Stanislaus 0.217%0.1788759% City Newman Stanislaus 0.006%0.0046964% City Oakdale Stanislaus 0.018%0.0145531% City Patterson Stanislaus 0.015%0.0126590% City Riverbank Stanislaus 0.010%0.0085699% City Turlock Stanislaus 0.065%0.0531966% County Sutter County Sutter 0.306%0.374%0.3179548% City Yuba City Sutter 0.074%0.0606242% County Tehama County Tehama 0.213%0.261%0.2216654% City Red Bluff Tehama 0.014%0.0117771% County Trinity County Trinity 0.082%0.101%0.0855476% County Tulare County Tulare 0.809%0.990%0.8410949% City Dinuba Tulare 0.014%0.0116929% City Exeter Tulare 0.004%0.0032479% City Farmersville Tulare 0.003%0.0027879% City Lindsay Tulare 0.007%0.0057111% City Porterville Tulare 0.021%0.0171845% City Tulare Tulare 0.037%0.0302273% City Visalia Tulare 0.066%0.0545872% County Tuolumne County Tuolumne 0.486%0.594%0.5047621% County Ventura County Ventura 2.192%2.681%2.2781201% City Camarillo Ventura 0.002%0.0012815% City Fillmore Ventura 0.002%0.0020294% City Moorpark Ventura 0.008%0.0067337% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 396 APPENDIX 1 15 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Oxnard Ventura 0.156%0.190%0.1617338% City Port Hueneme Ventura 0.021%0.0174145% City San Buenaventura (Ventura)Ventura 0.085%0.0702181% City Santa Paula Ventura 0.014%0.0119072% City Simi Valley Ventura 0.065%0.0533043% City Thousand Oaks Ventura 0.022%0.0179902% County Yolo County Yolo 0.357%0.437%0.3713319% City Davis Yolo 0.055%0.0451747% City West Sacramento Yolo 0.066%0.0544321% City Woodland Yolo 0.058%0.0477904% County Yuba County Yuba 0.214%0.262%0.2225679% City Marysville Yuba 0.014%0.0112079% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 397 1 APPENDIX 2 Cost Reimbursement Procedure 1.Additional defined terms: a)Costs means the reasonable amounts paid for the attorney and other City Attorney and County Counsel staff time for individuals employed by a Plaintiff Subdivision at the contractual rate, inclusive of benefits and overhead, together with amounts paid for court reporters, experts, copying, electronic research, travel, vendors, and the like, which were not previously reimbursed and which were paid or incurred (i) prior to December 31, 2022 in litigation against any Opioid Defendant and/or (ii) in negotiating and drafting any CA Allocation Agreement(s) concerning a settlement with any Opioid Defendant(s). Costs does not include attorneys’ fees, costs, or expenses incurred by private contingency fee counsel. No part of the CA Abatement Accounts Fund will be used to reimburse Costs. b)First Claims Date means October 1, 2023 or when all applications for reimbursement of Costs, in whole or in part, from funds available under Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the Distributor Settlement Agreement, Section XI and Exhibit R of the Janssen Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, or Section IX and Exhibit R of the Walmart Settlement Agreement, have been finally determined under the provisions of those agreements, whichever comes first. c)Special Master means a retired judicial officer or former public lawyer, not presently employed or retained by a Plaintiff Subdivision, who will aggregate, review, and determine the reasonable Costs to be awarded to each Plaintiff Subdivision that submits a claim for reimbursement of Costs. The Special Master will be selected by a majority vote of the votes cast by Plaintiff Subdivisions, with each such subdivision having one vote. d)Plaintiff Subdivision Committee means the committee of Plaintiff Subdivisions that will review and approve the invoices submitted by the Special Master reflecting his or her reasonable time and expenses. 2.Cost Reimbursement to Plaintiff Subdivision a)Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating National Opioid Settlements with various manufacturers, distributors, and chain pharmacies. b)Claims Procedure. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 398 2 i.If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, Section IX and Exhibit R of the Walmart Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date. ii.A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act. iii.The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs. iv.The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt. v.Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 399 3 vi.The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section VIII.C of the Allergan Settlement Agreement. vii.A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Allergan a report of the fees and expenses incurred by the Special Master pursuant to Section VIII.C of the Allergan Settlement Agreement. c)Claims Priority and Limitation. i.The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section 2.c.v below. ii.Final Awards of Costs that do not exceed seventy-five thousand dollars ($75,000.00) will be paid next in priority after the Special Master’s approved invoices. iii.Final Awards of Costs in excess of seventy-five thousand dollars ($75,000.00) will be paid proportionally from the funds remaining in that year’s Annual Payment. iv.Any claim for Costs that is not paid in full will be allocated against the next year’s distribution from the CA Subdivision Fund, until all approved claims for Costs are paid in full. v.In no event will more than 50% of the total CA Subdivision Fund received in any year be used to pay Costs or the Special Master’s approved invoices. vi.In no event shall more than $28 million of the total CA Subdivision Funds paid pursuant to the Teva Settlement Agreement, Allergan Settlement Agreement, Distributor Settlement Agreement, CVS Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and the Walmart Settlement Agreement be used to pay Costs. d)Collateral Source Payments and Third-Party Settlement. i.In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 400 4 of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. Any Plaintiff Subdivision that has submitted for reimbursement to any national fund and has not received a final determination by the First Claims Date may request that the settlement administrator withhold some or all of its payment from the CA Subdivision Fund in order to avoid repayment. ii.In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 401 1 APPENDIX 3 CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Allergan Settlement and their counsel. In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Allergan Settlement Agreement. Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Allergan Settlement Agreement and CA Allergan Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Allergan Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may receive from the national Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Allergan Settlement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Allergan Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments. The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the Allergan Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party. [DATE][SUBDIVISION SIGNATURE BLOCK] [DATE][COUNSEL SIGNATURE BLOCK] [DATE][ATTORNEY GENERAL SIGNATURE BLOCK] DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 402 1 Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Teva Settlement 1.Introduction Pursuant to the Teva Settlement Agreement, dated as of November 22, 2022, and any revision thereto (the “Teva Settlement Agreement”), including Section VIII and Exhibit O, the State of California proposes this agreement (the “CA Teva Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections VI, VII, and VIII of the Teva Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections IX, XIII, or XIV of the Teva Settlement Agreement. Pursuant to Exhibit O, Paragraph 4, of the Teva Settlement Agreement, acceptance of this CA Teva Allocation Agreement is a requirement to be an Initial Participating Subdivision.1 Further, pursuant to Sections X.B and X.C of the Teva Settlement Agreement and Sections IX.B and IX.C of the Allergan Settlement Agreement, eligible Subdivisions must participate in both the Teva Settlement Agreement and Allergan Settlement Agreement, or neither. 2.Definitions a)CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Teva Settlement Agreement. b)Allergan Settlement Agreement means the Allergan Settlement Agreement dated November 22, 2022, and any revision thereto. c)CVS Settlement Agreement means the CVS Settlement Agreement dated December 9, 2022, and any revision thereto as well as any modification thereto entered into by the State of California and CVS. d)Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto. e)Janssen Settlement Agreement means the Janssen Settlement Agreement dated July 21, 2021, and any revision thereto. f)Walgreens Settlement Agreement means the Walgreens Settlement Agreement dated December 9, 2022, and any revision thereto. 1 A parallel but separate agreement (the “CA Allergan Allocation Agreement”) will govern the allocation, distribution, and use of settlement fund payments under the Allergan Settlement Agreement. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 403 2 g)Walmart Settlement Agreement means the Walmart Settlement Agreement dated November 14, 2022, and any revision thereto. h)CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, San Leandro Unified School District, Pleasant Valley School District Board, and LA Care Health Plan. i)Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j)Opioid Defendant means any defendant (including but not limited to Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020. 3.General Terms This agreement is subject to the requirements of the Teva Settlement Agreement, as well as applicable law, and the Teva Settlement Agreement governs over any inconsistent provision of this CA Teva Allocation Agreement. Terms used in this CA Teva Allocation Agreement have the same meaning as in the Teva Settlement Agreement unless otherwise defined herein. Pursuant to Section VIII(E)(1) of the Teva Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VIII(C) of the Teva Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation. 4.State Allocation The Settlement Fund payments to California,2 pursuant to the Teva Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the 2 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 404 3 Settlement Fund shall be combined pursuant to this CA Teva Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”). A.State of California Allocation Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation. B.CA Abatement Accounts Fund i.Allocation of CA Abatement Accounts Funds a)Seventy percent of the total Settlement Fund payments will be allocated to the CA Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision. The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For the avoidance of doubt, CA Litigating Special Districts and California towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of CA Abatement Accounts Funds. b)A CA Participating Subdivision that is a county, or a city and county, will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision, and will receive payments as provided in the Teva Settlement Agreement. c)A CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, rather than to the city, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d)A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Teva DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 405 4 Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions. e)The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. f)Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Teva Settlement Agreement and this CA Teva Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2. ii.Use of CA Abatement Accounts Funds a)The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Teva Settlement Agreement. b)In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities: (1)the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2)creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3)addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD; (4)diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5)interventions to prevent drug addiction in vulnerable youth. c)The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 406 5 d)For the avoidance of doubt, and subject to the requirements of the Teva Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Teva Settlement Agreement and this CA Teva Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated. iii.CA Abatement Accounts Fund Oversight a)Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Teva Settlement Agreement and this CA Teva Allocation Agreement. b)If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Teva Settlement Agreement or this CA Teva Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c)If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame. d)If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Teva Settlement Agreement or this CA Teva Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement. e)Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, 6 investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 407 6 C.CA Subdivision Fund i.Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Teva Settlement Agreement and this CA Teva Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid- related expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2. The CA Subdivision Funds will be allocated as follows: a)First, funds in the CA Subdivision Fund shall be used to pay the Special Master’s reasonable fees and expenses in accordance with the procedures and limitations set forth in Appendix 2 to this document; b)Second, funds will be allocated to Plaintiff Subdivisions that are Initial Participating Subdivisions that have been awarded Costs, as defined by and in accordance with the procedures and limitations set forth in Appendix 2 to this document. c)Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50% of the total CA Subdivision Fund received in any year pursuant to Appendix 2, Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Initial Participating Subdivisions, in relative proportion to the Local Allocation. These funds shall be used to fund future opioid-related projects and to reimburse past opioid-related expenses, which may include fees and expenses related to litigation against any Opioid Defendant. D.Provision for State Back-Stop Agreement On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Teva Settlement Agreement and Allergan Settlement Agreement, and, if applicable, the CVS Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and Walmart Settlement Agreement. A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(X), of the Teva Settlement Agreement and the MDL Fees Order, DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 408 7 so long as such contingency fees do not exceed a total contingency fee of 15% of the total gross recovery of the Plaintiff Subdivision pursuant to the Teva Settlement, inclusive of contingency fees from the national Attorney Fee Fund and this State Back-Stop Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Teva Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments. To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 3 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 3. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms. For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General. 5.State and Subdivision Reporting a)DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site. b)Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Teva Settlement Agreement and this CA Teva Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions. c)The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 409 8 d)Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Teva Settlement Agreement and this CA Teva Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VIII(C) of the Teva Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Teva. e)In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions. 6.Miscellaneous a)The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Teva Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa. b)Except as provided in the Teva Settlement Agreement, this CA Teva Allocation Agreement is not enforceable by any party other than the State and the CA Participating Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party. c)Except as provided in the CA Teva Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. a)Except as provided in the Teva Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 410 9 The undersigned, Moorpark city, ACKNOWLEDGES acceptance of this Proposed California State- Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Teva Settlement is a requirement to be an Initial Participating Subdivision in the Teva Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Teva Settlement. EXECUTED on /date_1_teva_allergan/. Signature:/signer_1_teva_allergan/ Name:/name_1_teva_allergan/ Title:/title_1_teva_allergan/ Date:/date_1_teva_allergan/ DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 City Manager 3/2/2023 3/2/2023 Troy Brown 411 DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Teva Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 412 APPENDIX 1 1 of 15 100.000%100.000%100.000% Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage County Alameda County Alameda 2.332%2.853%2.4237952% City Alameda Alameda 0.069%0.0570162% City Albany Alameda 0.013%0.0107768% City Berkeley Alameda 0.152%0.1249656% City Dublin Alameda 0.033%0.040%0.0338810% City Emeryville Alameda 0.023%0.0185765% City Fremont Alameda 0.108%0.0888576% City Hayward Alameda 0.117%0.0966218% City Livermore Alameda 0.054%0.0446740% City Newark Alameda 0.026%0.0217626% City Oakland Alameda 0.486%0.595%0.5055601% City Piedmont Alameda 0.014%0.0114064% City Pleasanton Alameda 0.067%0.0554547% City San Leandro Alameda 0.039%0.0321267% City Union City Alameda 0.043%0.0352484% County Amador County Amador 0.226%0.277%0.2349885% County Butte County Butte 1.615%1.975%1.6783178% City Chico Butte 0.216%0.264%0.2246499% City Oroville Butte 0.079%0.0646595% County Calaveras County Calaveras 0.226%0.277%0.2351644% County Colusa County Colusa 0.059%0.0489221% County Contra Costa County Contra Costa 2.102%2.571%2.1844585% City Antioch Contra Costa 0.037%0.0301879% City Brentwood Contra Costa 0.026%0.0215339% City Clayton Contra Costa 0.002%0.0018060% City Concord Contra Costa 0.055%0.0456676% City Danville Contra Costa 0.010%0.0082255% City El Cerrito Contra Costa 0.023%0.0189024% City Hercules Contra Costa 0.010%0.0078273% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 413 APPENDIX 1 2 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Lafayette Contra Costa 0.006%0.0046030% City Martinez Contra Costa 0.012%0.0098593% City Moraga Contra Costa 0.004%0.0031007% City Oakley Contra Costa 0.010%0.0079416% City Orinda Contra Costa 0.005%0.0038157% City Pinole Contra Costa 0.013%0.0110909% City Pittsburg Contra Costa 0.053%0.0436369% City Pleasant Hill Contra Costa 0.013%0.0106309% City Richmond Contra Costa 0.146%0.1201444% City San Pablo Contra Costa 0.018%0.0148843% City San Ramon Contra Costa 0.021%0.0176459% City Walnut Creek Contra Costa 0.026%0.0212132% County Del Norte County Del Norte 0.114%0.140%0.1189608% County El Dorado County El Dorado 0.768%0.939%0.7980034% City Placerville El Dorado 0.015%0.0127642% City South Lake Tahoe El Dorado 0.081%0.0665456% County Fresno County Fresno 1.895%2.318%1.9693410% City Clovis Fresno 0.065%0.0536211% City Coalinga Fresno 0.012%0.0098554% City Fresno Fresno 0.397%0.3270605% City Kerman Fresno 0.005%0.0042534% City Kingsburg Fresno 0.008%0.0066167% City Mendota Fresno 0.002%0.0019387% City Orange Cove Fresno 0.004%0.0035607% City Parlier Fresno 0.008%0.0069755% City Reedley Fresno 0.012%0.0098804% City Sanger Fresno 0.018%0.0146135% City Selma Fresno 0.015%0.0127537% County Glenn County Glenn 0.107%0.131%0.1116978% County Humboldt County Humboldt 1.030%1.260%1.0703185% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 414 APPENDIX 1 3 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Arcata Humboldt 0.054%0.0447660% City Eureka Humboldt 0.117%0.143%0.1216284% City Fortuna Humboldt 0.032%0.0266837% County Imperial County Imperial 0.258%0.315%0.2679006% City Brawley Imperial 0.011%0.0087986% City Calexico Imperial 0.019%0.0152799% City El Centro Imperial 0.158%0.1302522% City Imperial Imperial 0.006%0.0048791% County Inyo County Inyo 0.073%0.089%0.0754413% County Kern County Kern 2.517%3.079%2.6159145% City Arvin Kern 0.006%0.0046425% City Bakersfield Kern 0.212%0.1747198% City California City Kern 0.009%0.0070820% City Delano Kern 0.030%0.0249316% City McFarland Kern 0.003%0.0025644% City Ridgecrest Kern 0.015%0.0120938% City Shafter Kern 0.013%0.0103417% City Tehachapi Kern 0.009%0.0073580% City Wasco Kern 0.008%0.0069861% County Kings County Kings 0.293%0.2413469% City Avenal Kings 0.007%0.0056335% City Corcoran Kings 0.013%0.0107032% City Hanford Kings 0.027%0.0226038% City Lemoore Kings 0.016%0.0131900% County Lake County Lake 0.795%0.6545389% City Clearlake Lake 0.041%0.050%0.0426253% City Lakeport Lake 0.021%0.026%0.0222964% County Lassen County Lassen 0.319%0.391%0.3320610% City Susanville Lassen 0.027%0.0219295% County Los Angeles County Los Angeles 13.896%16.999%14.4437559% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 415 APPENDIX 1 4 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Agoura Hills Los Angeles 0.005%0.0040024% City Alhambra Los Angeles 0.042%0.0343309% City Arcadia Los Angeles 0.033%0.0267718% City Artesia Los Angeles 0.001%0.0005100% City Azusa Los Angeles 0.026%0.0210857% City Baldwin Park Los Angeles 0.027%0.0218520% City Bell Los Angeles 0.008%0.0068783% City Bellflower Los Angeles 0.002%0.0014485% City Bell Gardens Los Angeles 0.014%0.0114301% City Beverly Hills Los Angeles 0.065%0.0534897% City Burbank Los Angeles 0.100%0.0823132% City Calabasas Los Angeles 0.006%0.0048948% City Carson Los Angeles 0.019%0.0159805% City Cerritos Los Angeles 0.005%0.0039682% City Claremont Los Angeles 0.010%0.0082584% City Commerce Los Angeles 0.000%0.0002971% City Compton Los Angeles 0.044%0.0361882% City Covina Los Angeles 0.028%0.0229127% City Cudahy Los Angeles 0.001%0.0006020% City Culver City Los Angeles 0.055%0.0449894% City Diamond Bar Los Angeles 0.001%0.0006993% City Downey Los Angeles 0.052%0.0429994% City Duarte Los Angeles 0.003%0.0027261% City El Monte Los Angeles 0.031%0.038%0.0318985% City El Segundo Los Angeles 0.033%0.0268020% City Gardena Los Angeles 0.034%0.0278088% City Glendale Los Angeles 0.166%0.1366586% City Glendora Los Angeles 0.016%0.0134411% City Hawaiian Gardens Los Angeles 0.005%0.0040549% City Hawthorne Los Angeles 0.050%0.0407833% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 416 APPENDIX 1 5 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Hermosa Beach Los Angeles 0.018%0.0145307% City Huntington Park Los Angeles 0.023%0.0190667% City Inglewood Los Angeles 0.059%0.0489195% City La Cañada Flintridge Los Angeles 0.003%0.0025565% City Lakewood Los Angeles 0.005%0.0039971% City La Mirada Los Angeles 0.010%0.0081572% City Lancaster Los Angeles 0.045%0.0369689% City La Puente Los Angeles 0.002%0.0012999% City La Verne Los Angeles 0.024%0.0194190% City Lawndale Los Angeles 0.002%0.0017731% City Lomita Los Angeles 0.004%0.0031940% City Long Beach Los Angeles 0.439%0.3614151% City Los Angeles Los Angeles 2.715%3.321%2.8218811% City Lynwood Los Angeles 0.016%0.0134345% City Malibu Los Angeles 0.002%0.0019269% City Manhattan Beach Los Angeles 0.032%0.0260686% City Maywood Los Angeles 0.004%0.0035528% City Monrovia Los Angeles 0.031%0.0254455% City Montebello Los Angeles 0.030%0.0250670% City Monterey Park Los Angeles 0.031%0.0256677% City Norwalk Los Angeles 0.031%0.0258228% City Palmdale Los Angeles 0.046%0.0375827% City Palos Verdes Estates Los Angeles 0.006%0.0053102% City Paramount Los Angeles 0.011%0.0091483% City Pasadena Los Angeles 0.146%0.1200524% City Pico Rivera Los Angeles 0.022%0.0183333% City Pomona Los Angeles 0.111%0.0911933% City Rancho Palos Verdes Los Angeles 0.002%0.0012645% City Redondo Beach Los Angeles 0.062%0.0506992% City Rosemead Los Angeles 0.003%0.0028260% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 417 APPENDIX 1 6 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City San Dimas Los Angeles 0.003%0.0022016% City San Fernando Los Angeles 0.013%0.0104837% City San Gabriel Los Angeles 0.018%0.0147726% City San Marino Los Angeles 0.009%0.0073791% City Santa Clarita Los Angeles 0.022%0.0178167% City Santa Fe Springs Los Angeles 0.031%0.0257531% City Santa Monica Los Angeles 0.158%0.1298513% City Sierra Madre Los Angeles 0.006%0.0048646% City Signal Hill Los Angeles 0.010%0.0084884% City South El Monte Los Angeles 0.005%0.0039603% City South Gate Los Angeles 0.020%0.0166272% City South Pasadena Los Angeles 0.012%0.0095334% City Temple City Los Angeles 0.005%0.0039498% City Torrance Los Angeles 0.112%0.0919820% City Walnut Los Angeles 0.006%0.0047305% City West Covina Los Angeles 0.049%0.0404521% City West Hollywood Los Angeles 0.013%0.0108517% City Whittier Los Angeles 0.032%0.0260581% County Madera County Madera 0.349%0.427%0.3630669% City Chowchilla Madera 0.012%0.0097332% City Madera Madera 0.039%0.0318441% County Marin County Marin 0.564%0.690%0.5861325% City Larkspur Marin 0.015%0.0124697% City Mill Valley Marin 0.020%0.0168401% City Novato Marin 0.028%0.0229824% City San Anselmo Marin 0.009%0.0078062% City San Rafael Marin 0.089%0.0729823% County Mariposa County Mariposa 0.084%0.103%0.0876131% County Mendocino County Mendocino 0.439%0.536%0.4558394% City Ukiah Mendocino 0.039%0.0317153% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 418 APPENDIX 1 7 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage County Merced County Merced 0.551%0.674%0.5724262% City Atwater Merced 0.024%0.0195846% City Livingston Merced 0.006%0.0045873% City Los Banos Merced 0.020%0.0165142% City Merced Merced 0.061%0.0500762% County Modoc County Modoc 0.065%0.080%0.0678250% County Mono County Mono 0.023%0.029%0.0242606% County Monterey County Monterey 0.908%1.111%0.9437083% City Greenfield Monterey 0.006%0.0050552% City King City Monterey 0.005%0.0037355% City Marina Monterey 0.017%0.0144098% City Monterey Monterey 0.041%0.0336540% City Pacific Grove Monterey 0.009%0.0074842% City Salinas Monterey 0.094%0.0776576% City Seaside Monterey 0.023%0.0191772% City Soledad Monterey 0.007%0.0060870% County Napa County Napa 0.288%0.352%0.2994325% City American Canyon Napa 0.017%0.0136869% City Napa Napa 0.078%0.0642783% County Nevada County Nevada 0.441%0.539%0.4579827% City Grass Valley Nevada 0.024%0.0197805% City Truckee Nevada 0.003%0.0023843% County Orange County Orange 4.364%5.339%4.5363576% City Aliso Viejo Orange 0.014%0.0113841% City Anaheim Orange 0.554%0.678%0.5759282% City Brea Orange 0.086%0.0708897% City Buena Park Orange 0.087%0.0714352% City Costa Mesa Orange 0.124%0.152%0.1288366% City Cypress Orange 0.033%0.0271937% City Dana Point Orange 0.001%0.0005560% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 419 APPENDIX 1 8 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Fountain Valley Orange 0.055%0.0455980% City Fullerton Orange 0.137%0.168%0.1425744% City Garden Grove Orange 0.213%0.1752482% City Huntington Beach Orange 0.247%0.302%0.2568420% City Irvine Orange 0.139%0.170%0.1442350% City Laguna Beach Orange 0.047%0.058%0.0493043% City Laguna Hills Orange 0.014%0.0115457% City Laguna Niguel Orange 0.001%0.0007071% City Laguna Woods Orange 0.001%0.0006546% City La Habra Orange 0.060%0.073%0.0621049% City Lake Forest Orange 0.012%0.0101249% City La Palma Orange 0.012%0.0095439% City Los Alamitos Orange 0.008%0.0069190% City Mission Viejo Orange 0.014%0.0117560% City Newport Beach Orange 0.179%0.1470134% City Orange Orange 0.150%0.1231320% City Placentia Orange 0.029%0.035%0.0298912% City Rancho Santa Margarita Orange 0.001%0.0006296% City San Clemente Orange 0.008%0.010%0.0086083% City San Juan Capistrano Orange 0.008%0.0065510% City Santa Ana Orange 0.502%0.614%0.5213866% City Seal Beach Orange 0.020%0.0165891% City Stanton Orange 0.035%0.0291955% City Tustin Orange 0.073%0.0600341% City Westminster Orange 0.104%0.127%0.1082721% City Yorba Linda Orange 0.044%0.0362223% County Placer County Placer 1.045%1.278%1.0861002% City Auburn Placer 0.017%0.0141114% City Lincoln Placer 0.031%0.0255599% City Rocklin Placer 0.076%0.0625485% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 420 APPENDIX 1 9 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Roseville Placer 0.196%0.1616559% County Plumas County Plumas 0.205%0.251%0.2128729% County Riverside County Riverside 4.534%5.547%4.7128296% City Banning Riverside 0.017%0.0143848% City Beaumont Riverside 0.021%0.0171135% City Blythe Riverside 0.012%0.0096714% City Canyon Lake Riverside 0.000%0.0001761% City Cathedral City Riverside 0.067%0.0553614% City Coachella Riverside 0.021%0.0173054% City Corona Riverside 0.147%0.1207083% City Desert Hot Springs Riverside 0.024%0.0200433% City Eastvale Riverside 0.000%0.0002747% City Hemet Riverside 0.051%0.0421792% City Indio Riverside 0.056%0.0457794% City Jurupa Valley Riverside 0.001%0.0008991% City Lake Elsinore Riverside 0.021%0.0172949% City La Quinta Riverside 0.063%0.0516732% City Menifee Riverside 0.032%0.0260909% City Moreno Valley Riverside 0.137%0.1130348% City Murrieta Riverside 0.048%0.059%0.0497423% City Norco Riverside 0.016%0.0134542% City Palm Desert Riverside 0.083%0.0682465% City Palm Springs Riverside 0.076%0.0629862% City Perris Riverside 0.009%0.0076774% City Rancho Mirage Riverside 0.052%0.0431098% City Riverside Riverside 0.268%0.2206279% City San Jacinto Riverside 0.010%0.0085936% City Temecula Riverside 0.022%0.0180086% City Wildomar Riverside 0.008%0.0062500% County Sacramento County Sacramento 3.797%4.645%3.9465887% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 421 APPENDIX 1 10 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Citrus Heights Sacramento 0.057%0.0465312% City Elk Grove Sacramento 0.130%0.1066994% City Folsom Sacramento 0.108%0.0890850% City Galt Sacramento 0.017%0.0143704% City Rancho Cordova Sacramento 0.008%0.0067679% City Sacramento Sacramento 0.721%0.882%0.7496530% County San Benito County San Benito 0.106%0.130%0.1101417% City Hollister San Benito 0.027%0.0225355% County San Bernardino County San Bernardino 3.259%3.987%3.3878124% City Adelanto San Bernardino 0.008%0.0066640% City Apple Valley San Bernardino 0.025%0.0207360% City Barstow San Bernardino 0.015%0.0122056% City Chino San Bernardino 0.064%0.0525893% City Chino Hills San Bernardino 0.001%0.0006388% City Colton San Bernardino 0.031%0.0253443% City Fontana San Bernardino 0.112%0.0920543% City Grand Terrace San Bernardino 0.006%0.0051051% City Hesperia San Bernardino 0.035%0.0291522% City Highland San Bernardino 0.004%0.0029061% City Loma Linda San Bernardino 0.009%0.0071188% City Montclair San Bernardino 0.039%0.0322108% City Ontario San Bernardino 0.179%0.1472934% City Rancho Cucamonga San Bernardino 0.084%0.0689431% City Redlands San Bernardino 0.057%0.0469150% City Rialto San Bernardino 0.073%0.0603206% City San Bernardino San Bernardino 0.178%0.1461880% City Twentynine Palms San Bernardino 0.002%0.0012605% City Upland San Bernardino 0.052%0.0424460% City Victorville San Bernardino 0.033%0.0269400% City Yucaipa San Bernardino 0.016%0.0128772% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 422 APPENDIX 1 11 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Yucca Valley San Bernardino 0.003%0.0021228% County San Diego County San Diego 5.706%6.980%5.9309748% City Carlsbad San Diego 0.128%0.1050485% City Chula Vista San Diego 0.189%0.231%0.1961456% City Coronado San Diego 0.044%0.0359095% City El Cajon San Diego 0.113%0.0933582% City Encinitas San Diego 0.061%0.074%0.0630289% City Escondido San Diego 0.145%0.1192204% City Imperial Beach San Diego 0.014%0.0118283% City La Mesa San Diego 0.055%0.068%0.0575593% City Lemon Grove San Diego 0.022%0.0183911% City National City San Diego 0.080%0.0656808% City Oceanside San Diego 0.213%0.1753428% City Poway San Diego 0.062%0.0511040% City San Diego San Diego 1.975%2.416%2.0531169% City San Marcos San Diego 0.089%0.0733897% City Santee San Diego 0.033%0.0268401% City Solana Beach San Diego 0.017%0.0138564% City Vista San Diego 0.052%0.0425144% Consolidated San Francisco San Francisco 3.026%3.702%3.1457169% County San Joaquin County San Joaquin 1.680%2.055%1.7460399% City Lathrop San Joaquin 0.009%0.0075394% City Lodi San Joaquin 0.053%0.0439484% City Manteca San Joaquin 0.054%0.0443454% City Ripon San Joaquin 0.013%0.0104219% City Stockton San Joaquin 0.313%0.383%0.3256176% City Tracy San Joaquin 0.084%0.0692047% County San Luis Obispo County San Luis Obispo 0.816%0.999%0.8484126% City Arroyo Grande San Luis Obispo 0.024%0.0199053% City Atascadero San Luis Obispo 0.029%0.0240680% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 423 APPENDIX 1 12 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City El Paso de Robles (Paso Robles)San Luis Obispo 0.043%0.0353456% City Grover Beach San Luis Obispo 0.017%0.0137881% City Morro Bay San Luis Obispo 0.020%0.0160922% City San Luis Obispo San Luis Obispo 0.077%0.0637841% County San Mateo County San Mateo 1.074%1.313%1.1159599% City Belmont San Mateo 0.021%0.0169860% City Burlingame San Mateo 0.019%0.0152537% City Daly City San Mateo 0.044%0.0363880% City East Palo Alto San Mateo 0.013%0.0103982% City Foster City San Mateo 0.020%0.0166101% City Half Moon Bay San Mateo 0.004%0.0031638% City Hillsborough San Mateo 0.013%0.0110029% City Menlo Park San Mateo 0.015%0.0126209% City Millbrae San Mateo 0.013%0.0105836% City Pacifica San Mateo 0.016%0.0130625% City Redwood City San Mateo 0.056%0.0463511% City San Bruno San Mateo 0.021%0.0172161% City San Carlos San Mateo 0.013%0.0108885% City San Mateo San Mateo 0.052%0.0425841% City South San Francisco San Mateo 0.043%0.0353943% County Santa Barbara County Santa Barbara 1.132%1.385%1.1768968% City Carpinteria Santa Barbara 0.001%0.0008938% City Goleta Santa Barbara 0.004%0.0028969% City Lompoc Santa Barbara 0.047%0.0389379% City Santa Barbara Santa Barbara 0.122%0.1004559% City Santa Maria Santa Barbara 0.058%0.0479179% County Santa Clara County Santa Clara 2.404%2.941%2.4987553% City Campbell Santa Clara 0.014%0.0112566% City Cupertino Santa Clara 0.008%0.0066824% City Gilroy Santa Clara 0.025%0.0202891% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 424 APPENDIX 1 13 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Los Altos Santa Clara 0.013%0.0103338% City Los Gatos Santa Clara 0.013%0.0103220% City Milpitas Santa Clara 0.036%0.0298120% City Morgan Hill Santa Clara 0.015%0.0124619% City Mountain View Santa Clara 0.041%0.0334608% City Palo Alto Santa Clara 0.039%0.0323080% City San Jose Santa Clara 0.294%0.360%0.3054960% City Santa Clara Santa Clara 0.067%0.0549723% City Saratoga Santa Clara 0.004%0.0034161% City Sunnyvale Santa Clara 0.053%0.0434069% County Santa Cruz County Santa Cruz 0.783%0.957%0.8135396% City Capitola Santa Cruz 0.020%0.0168191% City Santa Cruz Santa Cruz 0.143%0.1180348% City Scotts Valley Santa Cruz 0.015%0.0126525% City Watsonville Santa Cruz 0.063%0.0520136% County Shasta County Shasta 1.095%1.339%1.1380191% City Anderson Shasta 0.024%0.0198896% City Redding Shasta 0.284%0.2334841% City Shasta Lake Shasta 0.004%0.0031993% County Siskiyou County Siskiyou 0.228%0.279%0.2373393% County Solano County Solano 0.760%0.6260795% City Benicia Solano 0.031%0.0253903% City Dixon Solano 0.016%0.0130849% City Fairfield Solano 0.109%0.0897317% City Suisun City Solano 0.021%0.0176183% City Vacaville Solano 0.119%0.0976497% City Vallejo Solano 0.167%0.1373644% County Sonoma County Sonoma 1.218%1.490%1.2661290% City Healdsburg Sonoma 0.032%0.0266929% City Petaluma Sonoma 0.081%0.0667507% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 425 APPENDIX 1 14 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Rohnert Park Sonoma 0.041%0.0340759% City Santa Rosa Sonoma 0.184%0.1519070% City Sonoma Sonoma 0.022%0.0183438% City Windsor Sonoma 0.016%0.0129298% County Stanislaus County Stanislaus 1.722%1.4182273% City Ceres Stanislaus 0.041%0.0340260% City Modesto Stanislaus 0.217%0.1788759% City Newman Stanislaus 0.006%0.0046964% City Oakdale Stanislaus 0.018%0.0145531% City Patterson Stanislaus 0.015%0.0126590% City Riverbank Stanislaus 0.010%0.0085699% City Turlock Stanislaus 0.065%0.0531966% County Sutter County Sutter 0.306%0.374%0.3179548% City Yuba City Sutter 0.074%0.0606242% County Tehama County Tehama 0.213%0.261%0.2216654% City Red Bluff Tehama 0.014%0.0117771% County Trinity County Trinity 0.082%0.101%0.0855476% County Tulare County Tulare 0.809%0.990%0.8410949% City Dinuba Tulare 0.014%0.0116929% City Exeter Tulare 0.004%0.0032479% City Farmersville Tulare 0.003%0.0027879% City Lindsay Tulare 0.007%0.0057111% City Porterville Tulare 0.021%0.0171845% City Tulare Tulare 0.037%0.0302273% City Visalia Tulare 0.066%0.0545872% County Tuolumne County Tuolumne 0.486%0.594%0.5047621% County Ventura County Ventura 2.192%2.681%2.2781201% City Camarillo Ventura 0.002%0.0012815% City Fillmore Ventura 0.002%0.0020294% City Moorpark Ventura 0.008%0.0067337% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 426 APPENDIX 1 15 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Oxnard Ventura 0.156%0.190%0.1617338% City Port Hueneme Ventura 0.021%0.0174145% City San Buenaventura (Ventura)Ventura 0.085%0.0702181% City Santa Paula Ventura 0.014%0.0119072% City Simi Valley Ventura 0.065%0.0533043% City Thousand Oaks Ventura 0.022%0.0179902% County Yolo County Yolo 0.357%0.437%0.3713319% City Davis Yolo 0.055%0.0451747% City West Sacramento Yolo 0.066%0.0544321% City Woodland Yolo 0.058%0.0477904% County Yuba County Yuba 0.214%0.262%0.2225679% City Marysville Yuba 0.014%0.0112079% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 427 1 APPENDIX 2 Cost Reimbursement Procedure 1.Additional defined terms: a)Costs means the reasonable amounts paid for the attorney and other City Attorney and County Counsel staff time for individuals employed by a Plaintiff Subdivision at the contractual rate, inclusive of benefits and overhead, together with amounts paid for court reporters, experts, copying, electronic research, travel, vendors, and the like, which were not previously reimbursed and which were paid or incurred (i) prior to December 31, 2022 in litigation against any Opioid Defendant and/or (ii) in negotiating and drafting any CA Allocation Agreement(s) concerning a settlement with any Opioid Defendant(s). Costs does not include attorneys’ fees, costs, or expenses incurred by private contingency fee counsel. No part of the CA Abatement Accounts Fund will be used to reimburse Costs. b)First Claims Date means October 1, 2023 or when all applications for reimbursement of Costs, in whole or in part, from funds available under Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the Distributor Settlement Agreement, Section XI and Exhibit R of the Janssen Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, or Section IX and Exhibit R of the Walmart Settlement Agreement, have been finally determined under the provisions of those agreements, whichever comes first. c)Special Master means a retired judicial officer or former public lawyer, not presently employed or retained by a Plaintiff Subdivision, who will aggregate, review, and determine the reasonable Costs to be awarded to each Plaintiff Subdivision that submits a claim for reimbursement of Costs. The Special Master will be selected by a majority vote of the votes cast by Plaintiff Subdivisions, with each such subdivision having one vote. d)Plaintiff Subdivision Committee means the committee of Plaintiff Subdivisions that will review and approve the invoices submitted by the Special Master reflecting his or her reasonable time and expenses. 2.Cost Reimbursement to Plaintiff Subdivision a)Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating National Opioid Settlements with various manufacturers, distributors, and chain pharmacies. b)Claims Procedure. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 428 2 i.If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, Section IX and Exhibit R of the Walmart Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date. ii.A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act. iii.The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs. iv.The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt. v.Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 429 3 vi.The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section VIII.C of the Teva Settlement Agreement. vii.A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Teva a report of the fees and expenses incurred by the Special Master pursuant to Section VIII.C of the Teva Settlement Agreement. c)Claims Priority and Limitation. i.The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section 2.c.v below. ii.Final Awards of Costs that do not exceed seventy-five thousand dollars ($75,000.00) will be paid next in priority after the Special Master’s approved invoices. iii.Final Awards of Costs in excess of seventy-five thousand dollars ($75,000.00) will be paid proportionally from the funds remaining in that year’s Annual Payment. iv.Any claim for Costs that is not paid in full will be allocated against the next year’s distribution from the CA Subdivision Fund, until all approved claims for Costs are paid in full. v.In no event will more than 50% of the total CA Subdivision Fund received in any year be used to pay Costs or the Special Master’s approved invoices. vi.In no event shall more than $28 million of the total CA Subdivision Funds paid pursuant to the Teva Settlement Agreement, Allergan Settlement Agreement, Distributor Settlement Agreement, CVS Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and the Walmart Settlement Agreement be used to pay Costs. d)Collateral Source Payments and Third-Party Settlement. i.In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for 4 its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 430 4 final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. Any Plaintiff Subdivision that has submitted for reimbursement to any national fund and has not received a final determination by the First Claims Date may request that the settlement administrator withhold some or all of its payment from the CA Subdivision Fund in order to avoid repayment. ii.In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 431 1 APPENDIX 3 CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Teva Settlement and their counsel. In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Teva Settlement Agreement. Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Teva Settlement Agreement and CA Teva Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Teva Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may receive from the national Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Teva Settlement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Teva Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments. The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the Teva Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party. [DATE][SUBDIVISION SIGNATURE BLOCK] [DATE][COUNSEL SIGNATURE BLOCK] [DATE][ATTORNEY GENERAL SIGNATURE BLOCK] DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 432 1 Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Walgreens Settlement 1.Introduction Pursuant to the Walgreens Settlement Agreement, dated as of December 9, 2022, and any revision thereto (the “Walgreens Settlement Agreement”), including Section V and Exhibit O, the State of California proposes this agreement (the “CA Walgreens Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections IV and V of the Walgreens Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Section IX of the Walgreens Settlement Agreement. Pursuant to Exhibit O, Paragraph 4, of the Walgreens Settlement Agreement, acceptance of this CA Walgreens Allocation Agreement is a requirement to be an Initial Participating Subdivision. 2.Definitions a)CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Walgreens Settlement Agreement. b)Allergan Settlement Agreement means the Allergan Settlement Agreement dated November 22, 2022, and any revision thereto. c)CVS Settlement Agreement means the CVS Settlement Agreement dated December 9, 2022, and any revision thereto as well as any modification thereto entered into by the State of California and CVS. d)Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto. e)Janssen Settlement Agreement means the Janssen Settlement Agreement dated July 21, 2021, and any revision thereto. f)Teva Settlement Agreement means the Teva Settlement Agreement dated November 22, 2022, and any revision thereto. g)Walmart Settlement Agreement means the Walmart Settlement Agreement dated November 14, 2022, and any revision thereto. h)CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, San Leandro Unified School District, DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 433 2 Pleasant Valley School District Board, and LA Care Health Plan. i)Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j)Opioid Defendant means any defendant (including but not limited to Walgreen Co., Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020. 3.General Terms This agreement is subject to the requirements of the Walgreens Settlement Agreement, as well as applicable law, and the Walgreens Settlement Agreement governs over any inconsistent provision of this CA Walgreens Allocation Agreement. Terms used in this CA Walgreens Allocation Agreement have the same meaning as in the Walgreens Settlement Agreement unless otherwise defined herein. Pursuant to Section V(D)(1) of the Walgreens Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section V(B)(2) of the Walgreens Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation. 4.State Allocation The Settlement Fund payments to California,1 pursuant to the Walgreens Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Walgreens Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”). 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 434 3 A.State of California Allocation Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation. B.CA Abatement Accounts Fund i.Allocation of CA Abatement Accounts Funds a)Seventy percent of the total Settlement Fund payments will be allocated to the CA Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision. The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For the avoidance of doubt, CA Litigating Special Districts and California towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of CA Abatement Accounts Funds. b)A CA Participating Subdivision that is a county, or a city and county, will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision, and will receive payments as provided in the Walgreens Settlement Agreement. c)A CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, rather than to the city, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d)A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Walgreens Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 435 4 e)The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. f)Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2. ii.Use of CA Abatement Accounts Funds a)The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Walgreens Settlement Agreement. b)In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities: (1)the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2)creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3)addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD; (4)diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5)interventions to prevent drug addiction in vulnerable youth. c)The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d)For the avoidance of doubt, and subject to the requirements of the Walgreens Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 436 5 ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated. iii.CA Abatement Accounts Fund Oversight a)Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement. b)If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Walgreens Settlement Agreement or this CA Walgreens Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c)If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame. d)If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Walgreens Settlement Agreement or this CA Walgreens Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement. e)Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 437 6 C.CA Subdivision Fund i.Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid-related expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2. The CA Subdivision Funds will be allocated as follows: a)First, funds in the CA Subdivision Fund shall be used to pay the Special Master’s reasonable fees and expenses in accordance with the procedures and limitations set forth in Appendix 2 to this document; b)Second, funds will be allocated to Plaintiff Subdivisions that are Initial Participating Subdivisions that have been awarded Costs, as defined by and in accordance with the procedures and limitations set forth in Appendix 2 to this document. c)Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50% of the total CA Subdivision Fund received in any year pursuant to Appendix 2, Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Initial Participating Subdivisions, in relative proportion to the Local Allocation. These funds shall be used to fund future opioid-related projects and to reimburse past opioid-related expenses, which may include fees and expenses related to litigation against any Opioid Defendant. D.Provision for State Back-Stop Agreement On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Walgreens Settlement Agreement, and, if applicable, the Teva Settlement Agreement, Allergan Settlement Agreement, CVS Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, and Walmart Settlement Agreement. A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(Y), of the Walgreens Settlement Agreement and the MDL Fees Order, so long as such contingency fees do not exceed a total contingency fee of 15% of the total gross recovery of the Plaintiff Subdivision pursuant to the Walgreens Settlement, inclusive of contingency fees from the national Attorney Fee Fund and this State Back-Stop Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Walgreens Settlement Agreement. Further, DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 438 7 private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments. To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 3 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 3. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms. For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General. 5.State and Subdivision Reporting a)DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site. b)Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions. c)The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d)Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the Walgreens Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Walgreens. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 439 8 e)In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions. 6.Miscellaneous a)The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Walgreens Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa. b)Except as provided in the Walgreens Settlement Agreement, this CA Walgreens Allocation Agreement is not enforceable by any party other than the State and the CA Participating Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party. c)Except as provided in the CA Walgreens Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d)Except as provided in the Walgreens Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 440 9 The undersigned, Moorpark city, ACKNOWLEDGES acceptance of this Proposed California State- Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Walgreens Settlement is a requirement to be an Initial Participating Subdivision in the Walgreens Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Walgreens Settlement. EXECUTED on /date_1_walgreens/. Signature:/signer_1_teva_allergan/ Name:/name_1_teva_allergan/ Title:/title_1_teva_allergan/ Date:/date_1_walgreens/ DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 3/2/2023 3/2/2023 Troy Brown City Manager 441 APPENDIX 1 DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Walgreens Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one- hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 442 APPENDIX 1 1 of 15 100.000%100.000%100.000% Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage County Alameda County Alameda 2.332%2.853%2.4237952% City Alameda Alameda 0.069%0.0570162% City Albany Alameda 0.013%0.0107768% City Berkeley Alameda 0.152%0.1249656% City Dublin Alameda 0.033%0.040%0.0338810% City Emeryville Alameda 0.023%0.0185765% City Fremont Alameda 0.108%0.0888576% City Hayward Alameda 0.117%0.0966218% City Livermore Alameda 0.054%0.0446740% City Newark Alameda 0.026%0.0217626% City Oakland Alameda 0.486%0.595%0.5055601% City Piedmont Alameda 0.014%0.0114064% City Pleasanton Alameda 0.067%0.0554547% City San Leandro Alameda 0.039%0.0321267% City Union City Alameda 0.043%0.0352484% County Amador County Amador 0.226%0.277%0.2349885% County Butte County Butte 1.615%1.975%1.6783178% City Chico Butte 0.216%0.264%0.2246499% City Oroville Butte 0.079%0.0646595% County Calaveras County Calaveras 0.226%0.277%0.2351644% County Colusa County Colusa 0.059%0.0489221% County Contra Costa County Contra Costa 2.102%2.571%2.1844585% City Antioch Contra Costa 0.037%0.0301879% City Brentwood Contra Costa 0.026%0.0215339% City Clayton Contra Costa 0.002%0.0018060% City Concord Contra Costa 0.055%0.0456676% City Danville Contra Costa 0.010%0.0082255% City El Cerrito Contra Costa 0.023%0.0189024% City Hercules Contra Costa 0.010%0.0078273% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 443 APPENDIX 1 2 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Lafayette Contra Costa 0.006%0.0046030% City Martinez Contra Costa 0.012%0.0098593% City Moraga Contra Costa 0.004%0.0031007% City Oakley Contra Costa 0.010%0.0079416% City Orinda Contra Costa 0.005%0.0038157% City Pinole Contra Costa 0.013%0.0110909% City Pittsburg Contra Costa 0.053%0.0436369% City Pleasant Hill Contra Costa 0.013%0.0106309% City Richmond Contra Costa 0.146%0.1201444% City San Pablo Contra Costa 0.018%0.0148843% City San Ramon Contra Costa 0.021%0.0176459% City Walnut Creek Contra Costa 0.026%0.0212132% County Del Norte County Del Norte 0.114%0.140%0.1189608% County El Dorado County El Dorado 0.768%0.939%0.7980034% City Placerville El Dorado 0.015%0.0127642% City South Lake Tahoe El Dorado 0.081%0.0665456% County Fresno County Fresno 1.895%2.318%1.9693410% City Clovis Fresno 0.065%0.0536211% City Coalinga Fresno 0.012%0.0098554% City Fresno Fresno 0.397%0.3270605% City Kerman Fresno 0.005%0.0042534% City Kingsburg Fresno 0.008%0.0066167% City Mendota Fresno 0.002%0.0019387% City Orange Cove Fresno 0.004%0.0035607% City Parlier Fresno 0.008%0.0069755% City Reedley Fresno 0.012%0.0098804% City Sanger Fresno 0.018%0.0146135% City Selma Fresno 0.015%0.0127537% County Glenn County Glenn 0.107%0.131%0.1116978% County Humboldt County Humboldt 1.030%1.260%1.0703185% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 444 APPENDIX 1 3 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Arcata Humboldt 0.054%0.0447660% City Eureka Humboldt 0.117%0.143%0.1216284% City Fortuna Humboldt 0.032%0.0266837% County Imperial County Imperial 0.258%0.315%0.2679006% City Brawley Imperial 0.011%0.0087986% City Calexico Imperial 0.019%0.0152799% City El Centro Imperial 0.158%0.1302522% City Imperial Imperial 0.006%0.0048791% County Inyo County Inyo 0.073%0.089%0.0754413% County Kern County Kern 2.517%3.079%2.6159145% City Arvin Kern 0.006%0.0046425% City Bakersfield Kern 0.212%0.1747198% City California City Kern 0.009%0.0070820% City Delano Kern 0.030%0.0249316% City McFarland Kern 0.003%0.0025644% City Ridgecrest Kern 0.015%0.0120938% City Shafter Kern 0.013%0.0103417% City Tehachapi Kern 0.009%0.0073580% City Wasco Kern 0.008%0.0069861% County Kings County Kings 0.293%0.2413469% City Avenal Kings 0.007%0.0056335% City Corcoran Kings 0.013%0.0107032% City Hanford Kings 0.027%0.0226038% City Lemoore Kings 0.016%0.0131900% County Lake County Lake 0.795%0.6545389% City Clearlake Lake 0.041%0.050%0.0426253% City Lakeport Lake 0.021%0.026%0.0222964% County Lassen County Lassen 0.319%0.391%0.3320610% City Susanville Lassen 0.027%0.0219295% County Los Angeles County Los Angeles 13.896%16.999%14.4437559% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 445 APPENDIX 1 4 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Agoura Hills Los Angeles 0.005%0.0040024% City Alhambra Los Angeles 0.042%0.0343309% City Arcadia Los Angeles 0.033%0.0267718% City Artesia Los Angeles 0.001%0.0005100% City Azusa Los Angeles 0.026%0.0210857% City Baldwin Park Los Angeles 0.027%0.0218520% City Bell Los Angeles 0.008%0.0068783% City Bellflower Los Angeles 0.002%0.0014485% City Bell Gardens Los Angeles 0.014%0.0114301% City Beverly Hills Los Angeles 0.065%0.0534897% City Burbank Los Angeles 0.100%0.0823132% City Calabasas Los Angeles 0.006%0.0048948% City Carson Los Angeles 0.019%0.0159805% City Cerritos Los Angeles 0.005%0.0039682% City Claremont Los Angeles 0.010%0.0082584% City Commerce Los Angeles 0.000%0.0002971% City Compton Los Angeles 0.044%0.0361882% City Covina Los Angeles 0.028%0.0229127% City Cudahy Los Angeles 0.001%0.0006020% City Culver City Los Angeles 0.055%0.0449894% City Diamond Bar Los Angeles 0.001%0.0006993% City Downey Los Angeles 0.052%0.0429994% City Duarte Los Angeles 0.003%0.0027261% City El Monte Los Angeles 0.031%0.038%0.0318985% City El Segundo Los Angeles 0.033%0.0268020% City Gardena Los Angeles 0.034%0.0278088% City Glendale Los Angeles 0.166%0.1366586% City Glendora Los Angeles 0.016%0.0134411% City Hawaiian Gardens Los Angeles 0.005%0.0040549% City Hawthorne Los Angeles 0.050%0.0407833% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 446 APPENDIX 1 5 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Hermosa Beach Los Angeles 0.018%0.0145307% City Huntington Park Los Angeles 0.023%0.0190667% City Inglewood Los Angeles 0.059%0.0489195% City La Cañada Flintridge Los Angeles 0.003%0.0025565% City Lakewood Los Angeles 0.005%0.0039971% City La Mirada Los Angeles 0.010%0.0081572% City Lancaster Los Angeles 0.045%0.0369689% City La Puente Los Angeles 0.002%0.0012999% City La Verne Los Angeles 0.024%0.0194190% City Lawndale Los Angeles 0.002%0.0017731% City Lomita Los Angeles 0.004%0.0031940% City Long Beach Los Angeles 0.439%0.3614151% City Los Angeles Los Angeles 2.715%3.321%2.8218811% City Lynwood Los Angeles 0.016%0.0134345% City Malibu Los Angeles 0.002%0.0019269% City Manhattan Beach Los Angeles 0.032%0.0260686% City Maywood Los Angeles 0.004%0.0035528% City Monrovia Los Angeles 0.031%0.0254455% City Montebello Los Angeles 0.030%0.0250670% City Monterey Park Los Angeles 0.031%0.0256677% City Norwalk Los Angeles 0.031%0.0258228% City Palmdale Los Angeles 0.046%0.0375827% City Palos Verdes Estates Los Angeles 0.006%0.0053102% City Paramount Los Angeles 0.011%0.0091483% City Pasadena Los Angeles 0.146%0.1200524% City Pico Rivera Los Angeles 0.022%0.0183333% City Pomona Los Angeles 0.111%0.0911933% City Rancho Palos Verdes Los Angeles 0.002%0.0012645% City Redondo Beach Los Angeles 0.062%0.0506992% City Rosemead Los Angeles 0.003%0.0028260% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 447 APPENDIX 1 6 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City San Dimas Los Angeles 0.003%0.0022016% City San Fernando Los Angeles 0.013%0.0104837% City San Gabriel Los Angeles 0.018%0.0147726% City San Marino Los Angeles 0.009%0.0073791% City Santa Clarita Los Angeles 0.022%0.0178167% City Santa Fe Springs Los Angeles 0.031%0.0257531% City Santa Monica Los Angeles 0.158%0.1298513% City Sierra Madre Los Angeles 0.006%0.0048646% City Signal Hill Los Angeles 0.010%0.0084884% City South El Monte Los Angeles 0.005%0.0039603% City South Gate Los Angeles 0.020%0.0166272% City South Pasadena Los Angeles 0.012%0.0095334% City Temple City Los Angeles 0.005%0.0039498% City Torrance Los Angeles 0.112%0.0919820% City Walnut Los Angeles 0.006%0.0047305% City West Covina Los Angeles 0.049%0.0404521% City West Hollywood Los Angeles 0.013%0.0108517% City Whittier Los Angeles 0.032%0.0260581% County Madera County Madera 0.349%0.427%0.3630669% City Chowchilla Madera 0.012%0.0097332% City Madera Madera 0.039%0.0318441% County Marin County Marin 0.564%0.690%0.5861325% City Larkspur Marin 0.015%0.0124697% City Mill Valley Marin 0.020%0.0168401% City Novato Marin 0.028%0.0229824% City San Anselmo Marin 0.009%0.0078062% City San Rafael Marin 0.089%0.0729823% County Mariposa County Mariposa 0.084%0.103%0.0876131% County Mendocino County Mendocino 0.439%0.536%0.4558394% City Ukiah Mendocino 0.039%0.0317153% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 448 APPENDIX 1 7 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage County Merced County Merced 0.551%0.674%0.5724262% City Atwater Merced 0.024%0.0195846% City Livingston Merced 0.006%0.0045873% City Los Banos Merced 0.020%0.0165142% City Merced Merced 0.061%0.0500762% County Modoc County Modoc 0.065%0.080%0.0678250% County Mono County Mono 0.023%0.029%0.0242606% County Monterey County Monterey 0.908%1.111%0.9437083% City Greenfield Monterey 0.006%0.0050552% City King City Monterey 0.005%0.0037355% City Marina Monterey 0.017%0.0144098% City Monterey Monterey 0.041%0.0336540% City Pacific Grove Monterey 0.009%0.0074842% City Salinas Monterey 0.094%0.0776576% City Seaside Monterey 0.023%0.0191772% City Soledad Monterey 0.007%0.0060870% County Napa County Napa 0.288%0.352%0.2994325% City American Canyon Napa 0.017%0.0136869% City Napa Napa 0.078%0.0642783% County Nevada County Nevada 0.441%0.539%0.4579827% City Grass Valley Nevada 0.024%0.0197805% City Truckee Nevada 0.003%0.0023843% County Orange County Orange 4.364%5.339%4.5363576% City Aliso Viejo Orange 0.014%0.0113841% City Anaheim Orange 0.554%0.678%0.5759282% City Brea Orange 0.086%0.0708897% City Buena Park Orange 0.087%0.0714352% City Costa Mesa Orange 0.124%0.152%0.1288366% City Cypress Orange 0.033%0.0271937% City Dana Point Orange 0.001%0.0005560% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 449 APPENDIX 1 8 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Fountain Valley Orange 0.055%0.0455980% City Fullerton Orange 0.137%0.168%0.1425744% City Garden Grove Orange 0.213%0.1752482% City Huntington Beach Orange 0.247%0.302%0.2568420% City Irvine Orange 0.139%0.170%0.1442350% City Laguna Beach Orange 0.047%0.058%0.0493043% City Laguna Hills Orange 0.014%0.0115457% City Laguna Niguel Orange 0.001%0.0007071% City Laguna Woods Orange 0.001%0.0006546% City La Habra Orange 0.060%0.073%0.0621049% City Lake Forest Orange 0.012%0.0101249% City La Palma Orange 0.012%0.0095439% City Los Alamitos Orange 0.008%0.0069190% City Mission Viejo Orange 0.014%0.0117560% City Newport Beach Orange 0.179%0.1470134% City Orange Orange 0.150%0.1231320% City Placentia Orange 0.029%0.035%0.0298912% City Rancho Santa Margarita Orange 0.001%0.0006296% City San Clemente Orange 0.008%0.010%0.0086083% City San Juan Capistrano Orange 0.008%0.0065510% City Santa Ana Orange 0.502%0.614%0.5213866% City Seal Beach Orange 0.020%0.0165891% City Stanton Orange 0.035%0.0291955% City Tustin Orange 0.073%0.0600341% City Westminster Orange 0.104%0.127%0.1082721% City Yorba Linda Orange 0.044%0.0362223% County Placer County Placer 1.045%1.278%1.0861002% City Auburn Placer 0.017%0.0141114% City Lincoln Placer 0.031%0.0255599% City Rocklin Placer 0.076%0.0625485% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 450 APPENDIX 1 9 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Roseville Placer 0.196%0.1616559% County Plumas County Plumas 0.205%0.251%0.2128729% County Riverside County Riverside 4.534%5.547%4.7128296% City Banning Riverside 0.017%0.0143848% City Beaumont Riverside 0.021%0.0171135% City Blythe Riverside 0.012%0.0096714% City Canyon Lake Riverside 0.000%0.0001761% City Cathedral City Riverside 0.067%0.0553614% City Coachella Riverside 0.021%0.0173054% City Corona Riverside 0.147%0.1207083% City Desert Hot Springs Riverside 0.024%0.0200433% City Eastvale Riverside 0.000%0.0002747% City Hemet Riverside 0.051%0.0421792% City Indio Riverside 0.056%0.0457794% City Jurupa Valley Riverside 0.001%0.0008991% City Lake Elsinore Riverside 0.021%0.0172949% City La Quinta Riverside 0.063%0.0516732% City Menifee Riverside 0.032%0.0260909% City Moreno Valley Riverside 0.137%0.1130348% City Murrieta Riverside 0.048%0.059%0.0497423% City Norco Riverside 0.016%0.0134542% City Palm Desert Riverside 0.083%0.0682465% City Palm Springs Riverside 0.076%0.0629862% City Perris Riverside 0.009%0.0076774% City Rancho Mirage Riverside 0.052%0.0431098% City Riverside Riverside 0.268%0.2206279% City San Jacinto Riverside 0.010%0.0085936% City Temecula Riverside 0.022%0.0180086% City Wildomar Riverside 0.008%0.0062500% County Sacramento County Sacramento 3.797%4.645%3.9465887% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 451 APPENDIX 1 10 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Citrus Heights Sacramento 0.057%0.0465312% City Elk Grove Sacramento 0.130%0.1066994% City Folsom Sacramento 0.108%0.0890850% City Galt Sacramento 0.017%0.0143704% City Rancho Cordova Sacramento 0.008%0.0067679% City Sacramento Sacramento 0.721%0.882%0.7496530% County San Benito County San Benito 0.106%0.130%0.1101417% City Hollister San Benito 0.027%0.0225355% County San Bernardino County San Bernardino 3.259%3.987%3.3878124% City Adelanto San Bernardino 0.008%0.0066640% City Apple Valley San Bernardino 0.025%0.0207360% City Barstow San Bernardino 0.015%0.0122056% City Chino San Bernardino 0.064%0.0525893% City Chino Hills San Bernardino 0.001%0.0006388% City Colton San Bernardino 0.031%0.0253443% City Fontana San Bernardino 0.112%0.0920543% City Grand Terrace San Bernardino 0.006%0.0051051% City Hesperia San Bernardino 0.035%0.0291522% City Highland San Bernardino 0.004%0.0029061% City Loma Linda San Bernardino 0.009%0.0071188% City Montclair San Bernardino 0.039%0.0322108% City Ontario San Bernardino 0.179%0.1472934% City Rancho Cucamonga San Bernardino 0.084%0.0689431% City Redlands San Bernardino 0.057%0.0469150% City Rialto San Bernardino 0.073%0.0603206% City San Bernardino San Bernardino 0.178%0.1461880% City Twentynine Palms San Bernardino 0.002%0.0012605% City Upland San Bernardino 0.052%0.0424460% City Victorville San Bernardino 0.033%0.0269400% City Yucaipa San Bernardino 0.016%0.0128772% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 452 APPENDIX 1 11 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Yucca Valley San Bernardino 0.003%0.0021228% County San Diego County San Diego 5.706%6.980%5.9309748% City Carlsbad San Diego 0.128%0.1050485% City Chula Vista San Diego 0.189%0.231%0.1961456% City Coronado San Diego 0.044%0.0359095% City El Cajon San Diego 0.113%0.0933582% City Encinitas San Diego 0.061%0.074%0.0630289% City Escondido San Diego 0.145%0.1192204% City Imperial Beach San Diego 0.014%0.0118283% City La Mesa San Diego 0.055%0.068%0.0575593% City Lemon Grove San Diego 0.022%0.0183911% City National City San Diego 0.080%0.0656808% City Oceanside San Diego 0.213%0.1753428% City Poway San Diego 0.062%0.0511040% City San Diego San Diego 1.975%2.416%2.0531169% City San Marcos San Diego 0.089%0.0733897% City Santee San Diego 0.033%0.0268401% City Solana Beach San Diego 0.017%0.0138564% City Vista San Diego 0.052%0.0425144% Consolidated San Francisco San Francisco 3.026%3.702%3.1457169% County San Joaquin County San Joaquin 1.680%2.055%1.7460399% City Lathrop San Joaquin 0.009%0.0075394% City Lodi San Joaquin 0.053%0.0439484% City Manteca San Joaquin 0.054%0.0443454% City Ripon San Joaquin 0.013%0.0104219% City Stockton San Joaquin 0.313%0.383%0.3256176% City Tracy San Joaquin 0.084%0.0692047% County San Luis Obispo County San Luis Obispo 0.816%0.999%0.8484126% City Arroyo Grande San Luis Obispo 0.024%0.0199053% City Atascadero San Luis Obispo 0.029%0.0240680% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 453 APPENDIX 1 12 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City El Paso de Robles (Paso Robles)San Luis Obispo 0.043%0.0353456% City Grover Beach San Luis Obispo 0.017%0.0137881% City Morro Bay San Luis Obispo 0.020%0.0160922% City San Luis Obispo San Luis Obispo 0.077%0.0637841% County San Mateo County San Mateo 1.074%1.313%1.1159599% City Belmont San Mateo 0.021%0.0169860% City Burlingame San Mateo 0.019%0.0152537% City Daly City San Mateo 0.044%0.0363880% City East Palo Alto San Mateo 0.013%0.0103982% City Foster City San Mateo 0.020%0.0166101% City Half Moon Bay San Mateo 0.004%0.0031638% City Hillsborough San Mateo 0.013%0.0110029% City Menlo Park San Mateo 0.015%0.0126209% City Millbrae San Mateo 0.013%0.0105836% City Pacifica San Mateo 0.016%0.0130625% City Redwood City San Mateo 0.056%0.0463511% City San Bruno San Mateo 0.021%0.0172161% City San Carlos San Mateo 0.013%0.0108885% City San Mateo San Mateo 0.052%0.0425841% City South San Francisco San Mateo 0.043%0.0353943% County Santa Barbara County Santa Barbara 1.132%1.385%1.1768968% City Carpinteria Santa Barbara 0.001%0.0008938% City Goleta Santa Barbara 0.004%0.0028969% City Lompoc Santa Barbara 0.047%0.0389379% City Santa Barbara Santa Barbara 0.122%0.1004559% City Santa Maria Santa Barbara 0.058%0.0479179% County Santa Clara County Santa Clara 2.404%2.941%2.4987553% City Campbell Santa Clara 0.014%0.0112566% City Cupertino Santa Clara 0.008%0.0066824% City Gilroy Santa Clara 0.025%0.0202891% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 454 APPENDIX 1 13 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Los Altos Santa Clara 0.013%0.0103338% City Los Gatos Santa Clara 0.013%0.0103220% City Milpitas Santa Clara 0.036%0.0298120% City Morgan Hill Santa Clara 0.015%0.0124619% City Mountain View Santa Clara 0.041%0.0334608% City Palo Alto Santa Clara 0.039%0.0323080% City San Jose Santa Clara 0.294%0.360%0.3054960% City Santa Clara Santa Clara 0.067%0.0549723% City Saratoga Santa Clara 0.004%0.0034161% City Sunnyvale Santa Clara 0.053%0.0434069% County Santa Cruz County Santa Cruz 0.783%0.957%0.8135396% City Capitola Santa Cruz 0.020%0.0168191% City Santa Cruz Santa Cruz 0.143%0.1180348% City Scotts Valley Santa Cruz 0.015%0.0126525% City Watsonville Santa Cruz 0.063%0.0520136% County Shasta County Shasta 1.095%1.339%1.1380191% City Anderson Shasta 0.024%0.0198896% City Redding Shasta 0.284%0.2334841% City Shasta Lake Shasta 0.004%0.0031993% County Siskiyou County Siskiyou 0.228%0.279%0.2373393% County Solano County Solano 0.760%0.6260795% City Benicia Solano 0.031%0.0253903% City Dixon Solano 0.016%0.0130849% City Fairfield Solano 0.109%0.0897317% City Suisun City Solano 0.021%0.0176183% City Vacaville Solano 0.119%0.0976497% City Vallejo Solano 0.167%0.1373644% County Sonoma County Sonoma 1.218%1.490%1.2661290% City Healdsburg Sonoma 0.032%0.0266929% City Petaluma Sonoma 0.081%0.0667507% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 455 APPENDIX 1 14 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Rohnert Park Sonoma 0.041%0.0340759% City Santa Rosa Sonoma 0.184%0.1519070% City Sonoma Sonoma 0.022%0.0183438% City Windsor Sonoma 0.016%0.0129298% County Stanislaus County Stanislaus 1.722%1.4182273% City Ceres Stanislaus 0.041%0.0340260% City Modesto Stanislaus 0.217%0.1788759% City Newman Stanislaus 0.006%0.0046964% City Oakdale Stanislaus 0.018%0.0145531% City Patterson Stanislaus 0.015%0.0126590% City Riverbank Stanislaus 0.010%0.0085699% City Turlock Stanislaus 0.065%0.0531966% County Sutter County Sutter 0.306%0.374%0.3179548% City Yuba City Sutter 0.074%0.0606242% County Tehama County Tehama 0.213%0.261%0.2216654% City Red Bluff Tehama 0.014%0.0117771% County Trinity County Trinity 0.082%0.101%0.0855476% County Tulare County Tulare 0.809%0.990%0.8410949% City Dinuba Tulare 0.014%0.0116929% City Exeter Tulare 0.004%0.0032479% City Farmersville Tulare 0.003%0.0027879% City Lindsay Tulare 0.007%0.0057111% City Porterville Tulare 0.021%0.0171845% City Tulare Tulare 0.037%0.0302273% City Visalia Tulare 0.066%0.0545872% County Tuolumne County Tuolumne 0.486%0.594%0.5047621% County Ventura County Ventura 2.192%2.681%2.2781201% City Camarillo Ventura 0.002%0.0012815% City Fillmore Ventura 0.002%0.0020294% City Moorpark Ventura 0.008%0.0067337% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 456 APPENDIX 1 15 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Oxnard Ventura 0.156%0.190%0.1617338% City Port Hueneme Ventura 0.021%0.0174145% City San Buenaventura (Ventura)Ventura 0.085%0.0702181% City Santa Paula Ventura 0.014%0.0119072% City Simi Valley Ventura 0.065%0.0533043% City Thousand Oaks Ventura 0.022%0.0179902% County Yolo County Yolo 0.357%0.437%0.3713319% City Davis Yolo 0.055%0.0451747% City West Sacramento Yolo 0.066%0.0544321% City Woodland Yolo 0.058%0.0477904% County Yuba County Yuba 0.214%0.262%0.2225679% City Marysville Yuba 0.014%0.0112079% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 457 1 6 APPENDIX 2 Cost Reimbursement Procedure 1.Additional defined terms: a)Costs means the reasonable amounts paid for the attorney and other City Attorney and County Counsel staff time for individuals employed by a Plaintiff Subdivision at the contractual rate, inclusive of benefits and overhead, together with amounts paid for court reporters, experts, copying, electronic research, travel, vendors, and the like, which were not previously reimbursed and which were paid or incurred (i) prior to December 31, 2022 in litigation against any Opioid Defendant and/or (ii) in negotiating and drafting any CA Allocation Agreement(s) concerning a settlement with any Opioid Defendant(s). Costs does not include attorneys’ fees, costs, or expenses incurred by private contingency fee counsel. No part of the CA Abatement Accounts Fund will be used to reimburse Costs. b)First Claims Date means October 1, 2023 or when all applications for reimbursement of Costs, in whole or in part, from funds available under Section IX and Exhibit R of the Walgreens Settlement Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the Distributor Settlement Agreement, Section XI and Exhibit R of the Janssen Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, or Section IX and Exhibit R of the Walmart Settlement Agreement, have been finally determined under the provisions of those agreements, whichever comes first. c)Special Master means a retired judicial officer or former public lawyer, not presently employed or retained by a Plaintiff Subdivision, who will aggregate, review, and determine the reasonable Costs to be awarded to each Plaintiff Subdivision that submits a claim for reimbursement of Costs. The Special Master will be selected by a majority vote of the votes cast by Plaintiff Subdivisions, with each such subdivision having one vote. d)Plaintiff Subdivision Committee means the committee of Plaintiff Subdivisions that will review and approve the invoices submitted by the Special Master reflecting his or her reasonable time and expenses. 2.Cost Reimbursement to Plaintiff Subdivision a)Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating National Opioid Settlements with various manufacturers, distributors, and chain pharmacies. b)Claims Procedure. i.If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section IX and Exhibit R of the Walgreens DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 458 1 7 Settlement Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walmart Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date. ii.A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act. iii.The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs. iv.The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt. v.Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 459 1 8 reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment. vi.The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section V(B)(2) of the Walgreens Settlement Agreement. vii.A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Walgreens a report of the fees and expenses incurred by the Special Master pursuant to Section V(B)(2) of the Walgreens Settlement Agreement. c)Claims Priority and Limitation. i.The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section 2.c.v below. ii.Final Awards of Costs that do not exceed seventy-five thousand dollars ($75,000.00) will be paid next in priority after the Special Master’s approved invoices. iii.Final Awards of Costs in excess of seventy-five thousand dollars ($75,000.00) will be paid proportionally from the funds remaining in that year’s Annual Payment. iv.Any claim for Costs that is not paid in full will be allocated against the next year’s distribution from the CA Subdivision Fund, until all approved claims for Costs are paid in full. v.In no event will more than 50% of the total CA Subdivision Fund received in any year be used to pay Costs or the Special Master’s approved invoices. vi.In no event shall more than $28 million of the total CA Subdivision Funds paid pursuant to the Walgreens Settlement Agreement, Teva Settlement Agreement, Allergan Settlement Agreement, Distributor Settlement Agreement, CVS Settlement Agreement, Janssen Settlement Agreement, and the Walmart Settlement Agreement be used to pay Costs. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 460 1 9 d)Collateral Source Payments and Third-Party Settlement. i.In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. Any Plaintiff Subdivision that has submitted for reimbursement to any national fund and has not received a final determination by the First Claims Date may request that the settlement administrator withhold some or all of its payment from the CA Subdivision Fund in order to avoid repayment. ii.In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 461 1 APPENDIX 3 CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Walgreens Settlement and their counsel. In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Walgreens Settlement Agreement. Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Walgreens Settlement Agreement and CA Walgreens Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Walgreens Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may receive from the national Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Walgreens Settlement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Walgreens Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments. The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the Walgreens Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party. [DATE][SUBDIVISION SIGNATURE BLOCK] [DATE][COUNSEL SIGNATURE BLOCK] [DATE][ATTORNEY GENERAL SIGNATURE BLOCK] DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 462 1 Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Walmart Settlement 1.Introduction Pursuant to the Walmart Settlement Agreement, dated as of November 14, 2022, and any revision thereto (the “Walmart Settlement Agreement”), including Section V and Exhibit O, the State of California proposes this agreement (the “CA Walmart Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections IV and V of the Walmart Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections VIII or IX of the Walmart Settlement Agreement. Pursuant to Exhibit O, Paragraph 4, of the Walmart Settlement Agreement, acceptance of this CA Walmart Allocation Agreement is a requirement to be a Participating Subdivision. 2.Definitions a)CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Walmart Settlement Agreement. b)Allergan Settlement Agreement means the Allergan Settlement Agreement dated November 22, 2022, and any revision thereto. c)CVS Settlement Agreement means the CVS Settlement Agreement dated December 9, 2022, and any revision thereto as well as any modification thereto entered into by the State of California and CVS. d)Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto. e)Janssen Settlement Agreement means the Janssen Settlement Agreement dated July 21, 2021, and any revision thereto. f)Teva Settlement Agreement means the Teva Settlement Agreement dated November 22, 2022, and any revision thereto. g)Walgreens Settlement Agreement means the Walgreens Settlement Agreement dated December 9, 2022, and any revision thereto. h)CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, San Leandro Unified School District, Pleasant Valley School District Board, and LA Care Health Plan. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 463 2 i)Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j)Opioid Defendant means any defendant (including but not limited to Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020. 3.General Terms This agreement is subject to the requirements of the Walmart Settlement Agreement, as well as applicable law, and the Walmart Settlement Agreement governs over any inconsistent provision of this CA Walmart Allocation Agreement. Terms used in this CA Walmart Allocation Agreement have the same meaning as in the Walmart Settlement Agreement unless otherwise defined herein. Pursuant to Section V(D)(1) of the Walmart Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section V(B)(2) of the Walmart Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation. 4.State Allocation The Settlement Fund payments to California,1 pursuant to the Walmart Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Walmart Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”). 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 464 3 A.State of California Allocation Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation. B.CA Abatement Accounts Fund i.Allocation of CA Abatement Accounts Funds a)Seventy percent of the total Settlement Fund payments will be allocated to the CA Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision. The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For the avoidance of doubt, CA Litigating Special Districts and California towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of CA Abatement Accounts Funds. b)A CA Participating Subdivision that is a county, or a city and county, will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision, and will receive payments as provided in the Walmart Settlement Agreement. c)A CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, rather than to the city, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d)A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Walmart Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 465 4 e)The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. f)Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Walmart Settlement Agreement and this CA Walmart Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2. ii.Use of CA Abatement Accounts Funds a)The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Walmart Settlement Agreement. b)In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities: (1)the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2)creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3)addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD; (4)diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5)interventions to prevent drug addiction in vulnerable youth. c)The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d)For the avoidance of doubt, and subject to the requirements of the Walmart Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 466 5 Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Walmart Settlement Agreement and this CA Walmart Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated. iii.CA Abatement Accounts Fund Oversight a)Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Walmart Settlement Agreement and this CA Walmart Allocation Agreement. b)If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Walmart Settlement Agreement or this CA Walmart Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c)If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame. d)If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Walmart Settlement Agreement or this CA Walmart Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement. e)Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 467 6 C.CA Subdivision Fund i.Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Participating Subdivisions. The funds will be used, subject to any limits imposed by the Walmart Settlement Agreement and this CA Walmart Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid- related expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2. The CA Subdivision Funds will be allocated as follows: a)First, funds in the CA Subdivision Fund shall be used to pay the Special Master’s reasonable fees and expenses in accordance with the procedures and limitations set forth in Appendix 2 to this document; b)Second, funds will be allocated to Plaintiff Subdivisions that are Participating Subdivisions that have been awarded Costs, as defined by and in accordance with the procedures and limitations set forth in Appendix 2 to this document. c)Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50% of the total CA Subdivision Fund received in any year pursuant to Appendix 2, Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Participating Subdivisions, in relative proportion to the Local Allocation. These funds shall be used to fund future opioid-related projects and to reimburse past opioid-related expenses, which may include fees and expenses related to litigation against any Opioid Defendant. D.Provision for State Back-Stop Agreement On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Walmart Settlement Agreement, and, if applicable, the Allergan Settlement Agreement, CVS Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, Teva Settlement Agreement, and Walgreens Settlement Agreement. A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(W), of the Walmart Settlement Agreement and the MDL Fees Order, so long as such contingency fees do not exceed a total contingency fee of 15% of the total gross recovery of the Plaintiff Subdivision pursuant to the Walmart Settlement, inclusive of contingency fees from the national Attorney Fee Fund and this State Back-Stop Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 468 7 counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Walmart Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments. To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 3 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 3. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms. For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General. 5.State and Subdivision Reporting a)DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site. b)Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Walmart Settlement Agreement and this CA Walmart Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions. c)The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d)Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Walmart Settlement Agreement and this CA Walmart Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the Walmart Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Walmart. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 469 8 e)In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions. 6.Miscellaneous a)The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Walmart Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa. b)Except as provided in the Walmart Settlement Agreement, this CA Walmart Allocation Agreement is not enforceable by any party other than the State and the CA Participating Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party. c)Except as provided in the CA Walmart Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d)Except as provided in the Walmart Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 470 9 The undersigned, Moorpark city, ACKNOWLEDGES acceptance of this Proposed California State- Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Walmart Settlement is a requirement to be an Initial Participating Subdivision in the Walmart Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Walmart Settlement. EXECUTED on /date_1_walmart/. Signature:/signer_1_teva_allergan/ Name:/name_1_teva_allergan/ Title:/title_1_teva_allergan/ Date:/date_1_walmart/ DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 3/2/2023 City Manager Troy Brown 3/2/2023 471 APPENDIX 1 DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Walmart Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one- hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 472 APPENDIX 1 1 of 15 100.000%100.000%100.000% Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage County Alameda County Alameda 2.332%2.853%2.4237952% City Alameda Alameda 0.069%0.0570162% City Albany Alameda 0.013%0.0107768% City Berkeley Alameda 0.152%0.1249656% City Dublin Alameda 0.033%0.040%0.0338810% City Emeryville Alameda 0.023%0.0185765% City Fremont Alameda 0.108%0.0888576% City Hayward Alameda 0.117%0.0966218% City Livermore Alameda 0.054%0.0446740% City Newark Alameda 0.026%0.0217626% City Oakland Alameda 0.486%0.595%0.5055601% City Piedmont Alameda 0.014%0.0114064% City Pleasanton Alameda 0.067%0.0554547% City San Leandro Alameda 0.039%0.0321267% City Union City Alameda 0.043%0.0352484% County Amador County Amador 0.226%0.277%0.2349885% County Butte County Butte 1.615%1.975%1.6783178% City Chico Butte 0.216%0.264%0.2246499% City Oroville Butte 0.079%0.0646595% County Calaveras County Calaveras 0.226%0.277%0.2351644% County Colusa County Colusa 0.059%0.0489221% County Contra Costa County Contra Costa 2.102%2.571%2.1844585% City Antioch Contra Costa 0.037%0.0301879% City Brentwood Contra Costa 0.026%0.0215339% City Clayton Contra Costa 0.002%0.0018060% City Concord Contra Costa 0.055%0.0456676% City Danville Contra Costa 0.010%0.0082255% City El Cerrito Contra Costa 0.023%0.0189024% City Hercules Contra Costa 0.010%0.0078273% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 473 APPENDIX 1 2 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Lafayette Contra Costa 0.006%0.0046030% City Martinez Contra Costa 0.012%0.0098593% City Moraga Contra Costa 0.004%0.0031007% City Oakley Contra Costa 0.010%0.0079416% City Orinda Contra Costa 0.005%0.0038157% City Pinole Contra Costa 0.013%0.0110909% City Pittsburg Contra Costa 0.053%0.0436369% City Pleasant Hill Contra Costa 0.013%0.0106309% City Richmond Contra Costa 0.146%0.1201444% City San Pablo Contra Costa 0.018%0.0148843% City San Ramon Contra Costa 0.021%0.0176459% City Walnut Creek Contra Costa 0.026%0.0212132% County Del Norte County Del Norte 0.114%0.140%0.1189608% County El Dorado County El Dorado 0.768%0.939%0.7980034% City Placerville El Dorado 0.015%0.0127642% City South Lake Tahoe El Dorado 0.081%0.0665456% County Fresno County Fresno 1.895%2.318%1.9693410% City Clovis Fresno 0.065%0.0536211% City Coalinga Fresno 0.012%0.0098554% City Fresno Fresno 0.397%0.3270605% City Kerman Fresno 0.005%0.0042534% City Kingsburg Fresno 0.008%0.0066167% City Mendota Fresno 0.002%0.0019387% City Orange Cove Fresno 0.004%0.0035607% City Parlier Fresno 0.008%0.0069755% City Reedley Fresno 0.012%0.0098804% City Sanger Fresno 0.018%0.0146135% City Selma Fresno 0.015%0.0127537% County Glenn County Glenn 0.107%0.131%0.1116978% County Humboldt County Humboldt 1.030%1.260%1.0703185% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 474 APPENDIX 1 3 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Arcata Humboldt 0.054%0.0447660% City Eureka Humboldt 0.117%0.143%0.1216284% City Fortuna Humboldt 0.032%0.0266837% County Imperial County Imperial 0.258%0.315%0.2679006% City Brawley Imperial 0.011%0.0087986% City Calexico Imperial 0.019%0.0152799% City El Centro Imperial 0.158%0.1302522% City Imperial Imperial 0.006%0.0048791% County Inyo County Inyo 0.073%0.089%0.0754413% County Kern County Kern 2.517%3.079%2.6159145% City Arvin Kern 0.006%0.0046425% City Bakersfield Kern 0.212%0.1747198% City California City Kern 0.009%0.0070820% City Delano Kern 0.030%0.0249316% City McFarland Kern 0.003%0.0025644% City Ridgecrest Kern 0.015%0.0120938% City Shafter Kern 0.013%0.0103417% City Tehachapi Kern 0.009%0.0073580% City Wasco Kern 0.008%0.0069861% County Kings County Kings 0.293%0.2413469% City Avenal Kings 0.007%0.0056335% City Corcoran Kings 0.013%0.0107032% City Hanford Kings 0.027%0.0226038% City Lemoore Kings 0.016%0.0131900% County Lake County Lake 0.795%0.6545389% City Clearlake Lake 0.041%0.050%0.0426253% City Lakeport Lake 0.021%0.026%0.0222964% County Lassen County Lassen 0.319%0.391%0.3320610% City Susanville Lassen 0.027%0.0219295% County Los Angeles County Los Angeles 13.896%16.999%14.4437559% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 475 APPENDIX 1 4 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Agoura Hills Los Angeles 0.005%0.0040024% City Alhambra Los Angeles 0.042%0.0343309% City Arcadia Los Angeles 0.033%0.0267718% City Artesia Los Angeles 0.001%0.0005100% City Azusa Los Angeles 0.026%0.0210857% City Baldwin Park Los Angeles 0.027%0.0218520% City Bell Los Angeles 0.008%0.0068783% City Bellflower Los Angeles 0.002%0.0014485% City Bell Gardens Los Angeles 0.014%0.0114301% City Beverly Hills Los Angeles 0.065%0.0534897% City Burbank Los Angeles 0.100%0.0823132% City Calabasas Los Angeles 0.006%0.0048948% City Carson Los Angeles 0.019%0.0159805% City Cerritos Los Angeles 0.005%0.0039682% City Claremont Los Angeles 0.010%0.0082584% City Commerce Los Angeles 0.000%0.0002971% City Compton Los Angeles 0.044%0.0361882% City Covina Los Angeles 0.028%0.0229127% City Cudahy Los Angeles 0.001%0.0006020% City Culver City Los Angeles 0.055%0.0449894% City Diamond Bar Los Angeles 0.001%0.0006993% City Downey Los Angeles 0.052%0.0429994% City Duarte Los Angeles 0.003%0.0027261% City El Monte Los Angeles 0.031%0.038%0.0318985% City El Segundo Los Angeles 0.033%0.0268020% City Gardena Los Angeles 0.034%0.0278088% City Glendale Los Angeles 0.166%0.1366586% City Glendora Los Angeles 0.016%0.0134411% City Hawaiian Gardens Los Angeles 0.005%0.0040549% City Hawthorne Los Angeles 0.050%0.0407833% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 476 APPENDIX 1 5 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Hermosa Beach Los Angeles 0.018%0.0145307% City Huntington Park Los Angeles 0.023%0.0190667% City Inglewood Los Angeles 0.059%0.0489195% City La Cañada Flintridge Los Angeles 0.003%0.0025565% City Lakewood Los Angeles 0.005%0.0039971% City La Mirada Los Angeles 0.010%0.0081572% City Lancaster Los Angeles 0.045%0.0369689% City La Puente Los Angeles 0.002%0.0012999% City La Verne Los Angeles 0.024%0.0194190% City Lawndale Los Angeles 0.002%0.0017731% City Lomita Los Angeles 0.004%0.0031940% City Long Beach Los Angeles 0.439%0.3614151% City Los Angeles Los Angeles 2.715%3.321%2.8218811% City Lynwood Los Angeles 0.016%0.0134345% City Malibu Los Angeles 0.002%0.0019269% City Manhattan Beach Los Angeles 0.032%0.0260686% City Maywood Los Angeles 0.004%0.0035528% City Monrovia Los Angeles 0.031%0.0254455% City Montebello Los Angeles 0.030%0.0250670% City Monterey Park Los Angeles 0.031%0.0256677% City Norwalk Los Angeles 0.031%0.0258228% City Palmdale Los Angeles 0.046%0.0375827% City Palos Verdes Estates Los Angeles 0.006%0.0053102% City Paramount Los Angeles 0.011%0.0091483% City Pasadena Los Angeles 0.146%0.1200524% City Pico Rivera Los Angeles 0.022%0.0183333% City Pomona Los Angeles 0.111%0.0911933% City Rancho Palos Verdes Los Angeles 0.002%0.0012645% City Redondo Beach Los Angeles 0.062%0.0506992% City Rosemead Los Angeles 0.003%0.0028260% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 477 APPENDIX 1 6 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City San Dimas Los Angeles 0.003%0.0022016% City San Fernando Los Angeles 0.013%0.0104837% City San Gabriel Los Angeles 0.018%0.0147726% City San Marino Los Angeles 0.009%0.0073791% City Santa Clarita Los Angeles 0.022%0.0178167% City Santa Fe Springs Los Angeles 0.031%0.0257531% City Santa Monica Los Angeles 0.158%0.1298513% City Sierra Madre Los Angeles 0.006%0.0048646% City Signal Hill Los Angeles 0.010%0.0084884% City South El Monte Los Angeles 0.005%0.0039603% City South Gate Los Angeles 0.020%0.0166272% City South Pasadena Los Angeles 0.012%0.0095334% City Temple City Los Angeles 0.005%0.0039498% City Torrance Los Angeles 0.112%0.0919820% City Walnut Los Angeles 0.006%0.0047305% City West Covina Los Angeles 0.049%0.0404521% City West Hollywood Los Angeles 0.013%0.0108517% City Whittier Los Angeles 0.032%0.0260581% County Madera County Madera 0.349%0.427%0.3630669% City Chowchilla Madera 0.012%0.0097332% City Madera Madera 0.039%0.0318441% County Marin County Marin 0.564%0.690%0.5861325% City Larkspur Marin 0.015%0.0124697% City Mill Valley Marin 0.020%0.0168401% City Novato Marin 0.028%0.0229824% City San Anselmo Marin 0.009%0.0078062% City San Rafael Marin 0.089%0.0729823% County Mariposa County Mariposa 0.084%0.103%0.0876131% County Mendocino County Mendocino 0.439%0.536%0.4558394% City Ukiah Mendocino 0.039%0.0317153% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 478 APPENDIX 1 7 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage County Merced County Merced 0.551%0.674%0.5724262% City Atwater Merced 0.024%0.0195846% City Livingston Merced 0.006%0.0045873% City Los Banos Merced 0.020%0.0165142% City Merced Merced 0.061%0.0500762% County Modoc County Modoc 0.065%0.080%0.0678250% County Mono County Mono 0.023%0.029%0.0242606% County Monterey County Monterey 0.908%1.111%0.9437083% City Greenfield Monterey 0.006%0.0050552% City King City Monterey 0.005%0.0037355% City Marina Monterey 0.017%0.0144098% City Monterey Monterey 0.041%0.0336540% City Pacific Grove Monterey 0.009%0.0074842% City Salinas Monterey 0.094%0.0776576% City Seaside Monterey 0.023%0.0191772% City Soledad Monterey 0.007%0.0060870% County Napa County Napa 0.288%0.352%0.2994325% City American Canyon Napa 0.017%0.0136869% City Napa Napa 0.078%0.0642783% County Nevada County Nevada 0.441%0.539%0.4579827% City Grass Valley Nevada 0.024%0.0197805% City Truckee Nevada 0.003%0.0023843% County Orange County Orange 4.364%5.339%4.5363576% City Aliso Viejo Orange 0.014%0.0113841% City Anaheim Orange 0.554%0.678%0.5759282% City Brea Orange 0.086%0.0708897% City Buena Park Orange 0.087%0.0714352% City Costa Mesa Orange 0.124%0.152%0.1288366% City Cypress Orange 0.033%0.0271937% City Dana Point Orange 0.001%0.0005560% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 479 APPENDIX 1 8 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Fountain Valley Orange 0.055%0.0455980% City Fullerton Orange 0.137%0.168%0.1425744% City Garden Grove Orange 0.213%0.1752482% City Huntington Beach Orange 0.247%0.302%0.2568420% City Irvine Orange 0.139%0.170%0.1442350% City Laguna Beach Orange 0.047%0.058%0.0493043% City Laguna Hills Orange 0.014%0.0115457% City Laguna Niguel Orange 0.001%0.0007071% City Laguna Woods Orange 0.001%0.0006546% City La Habra Orange 0.060%0.073%0.0621049% City Lake Forest Orange 0.012%0.0101249% City La Palma Orange 0.012%0.0095439% City Los Alamitos Orange 0.008%0.0069190% City Mission Viejo Orange 0.014%0.0117560% City Newport Beach Orange 0.179%0.1470134% City Orange Orange 0.150%0.1231320% City Placentia Orange 0.029%0.035%0.0298912% City Rancho Santa Margarita Orange 0.001%0.0006296% City San Clemente Orange 0.008%0.010%0.0086083% City San Juan Capistrano Orange 0.008%0.0065510% City Santa Ana Orange 0.502%0.614%0.5213866% City Seal Beach Orange 0.020%0.0165891% City Stanton Orange 0.035%0.0291955% City Tustin Orange 0.073%0.0600341% City Westminster Orange 0.104%0.127%0.1082721% City Yorba Linda Orange 0.044%0.0362223% County Placer County Placer 1.045%1.278%1.0861002% City Auburn Placer 0.017%0.0141114% City Lincoln Placer 0.031%0.0255599% City Rocklin Placer 0.076%0.0625485% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 480 APPENDIX 1 9 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Roseville Placer 0.196%0.1616559% County Plumas County Plumas 0.205%0.251%0.2128729% County Riverside County Riverside 4.534%5.547%4.7128296% City Banning Riverside 0.017%0.0143848% City Beaumont Riverside 0.021%0.0171135% City Blythe Riverside 0.012%0.0096714% City Canyon Lake Riverside 0.000%0.0001761% City Cathedral City Riverside 0.067%0.0553614% City Coachella Riverside 0.021%0.0173054% City Corona Riverside 0.147%0.1207083% City Desert Hot Springs Riverside 0.024%0.0200433% City Eastvale Riverside 0.000%0.0002747% City Hemet Riverside 0.051%0.0421792% City Indio Riverside 0.056%0.0457794% City Jurupa Valley Riverside 0.001%0.0008991% City Lake Elsinore Riverside 0.021%0.0172949% City La Quinta Riverside 0.063%0.0516732% City Menifee Riverside 0.032%0.0260909% City Moreno Valley Riverside 0.137%0.1130348% City Murrieta Riverside 0.048%0.059%0.0497423% City Norco Riverside 0.016%0.0134542% City Palm Desert Riverside 0.083%0.0682465% City Palm Springs Riverside 0.076%0.0629862% City Perris Riverside 0.009%0.0076774% City Rancho Mirage Riverside 0.052%0.0431098% City Riverside Riverside 0.268%0.2206279% City San Jacinto Riverside 0.010%0.0085936% City Temecula Riverside 0.022%0.0180086% City Wildomar Riverside 0.008%0.0062500% County Sacramento County Sacramento 3.797%4.645%3.9465887% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 481 APPENDIX 1 10 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Citrus Heights Sacramento 0.057%0.0465312% City Elk Grove Sacramento 0.130%0.1066994% City Folsom Sacramento 0.108%0.0890850% City Galt Sacramento 0.017%0.0143704% City Rancho Cordova Sacramento 0.008%0.0067679% City Sacramento Sacramento 0.721%0.882%0.7496530% County San Benito County San Benito 0.106%0.130%0.1101417% City Hollister San Benito 0.027%0.0225355% County San Bernardino County San Bernardino 3.259%3.987%3.3878124% City Adelanto San Bernardino 0.008%0.0066640% City Apple Valley San Bernardino 0.025%0.0207360% City Barstow San Bernardino 0.015%0.0122056% City Chino San Bernardino 0.064%0.0525893% City Chino Hills San Bernardino 0.001%0.0006388% City Colton San Bernardino 0.031%0.0253443% City Fontana San Bernardino 0.112%0.0920543% City Grand Terrace San Bernardino 0.006%0.0051051% City Hesperia San Bernardino 0.035%0.0291522% City Highland San Bernardino 0.004%0.0029061% City Loma Linda San Bernardino 0.009%0.0071188% City Montclair San Bernardino 0.039%0.0322108% City Ontario San Bernardino 0.179%0.1472934% City Rancho Cucamonga San Bernardino 0.084%0.0689431% City Redlands San Bernardino 0.057%0.0469150% City Rialto San Bernardino 0.073%0.0603206% City San Bernardino San Bernardino 0.178%0.1461880% City Twentynine Palms San Bernardino 0.002%0.0012605% City Upland San Bernardino 0.052%0.0424460% City Victorville San Bernardino 0.033%0.0269400% City Yucaipa San Bernardino 0.016%0.0128772% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 482 APPENDIX 1 11 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Yucca Valley San Bernardino 0.003%0.0021228% County San Diego County San Diego 5.706%6.980%5.9309748% City Carlsbad San Diego 0.128%0.1050485% City Chula Vista San Diego 0.189%0.231%0.1961456% City Coronado San Diego 0.044%0.0359095% City El Cajon San Diego 0.113%0.0933582% City Encinitas San Diego 0.061%0.074%0.0630289% City Escondido San Diego 0.145%0.1192204% City Imperial Beach San Diego 0.014%0.0118283% City La Mesa San Diego 0.055%0.068%0.0575593% City Lemon Grove San Diego 0.022%0.0183911% City National City San Diego 0.080%0.0656808% City Oceanside San Diego 0.213%0.1753428% City Poway San Diego 0.062%0.0511040% City San Diego San Diego 1.975%2.416%2.0531169% City San Marcos San Diego 0.089%0.0733897% City Santee San Diego 0.033%0.0268401% City Solana Beach San Diego 0.017%0.0138564% City Vista San Diego 0.052%0.0425144% Consolidated San Francisco San Francisco 3.026%3.702%3.1457169% County San Joaquin County San Joaquin 1.680%2.055%1.7460399% City Lathrop San Joaquin 0.009%0.0075394% City Lodi San Joaquin 0.053%0.0439484% City Manteca San Joaquin 0.054%0.0443454% City Ripon San Joaquin 0.013%0.0104219% City Stockton San Joaquin 0.313%0.383%0.3256176% City Tracy San Joaquin 0.084%0.0692047% County San Luis Obispo County San Luis Obispo 0.816%0.999%0.8484126% City Arroyo Grande San Luis Obispo 0.024%0.0199053% City Atascadero San Luis Obispo 0.029%0.0240680% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 483 APPENDIX 1 12 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City El Paso de Robles (Paso Robles)San Luis Obispo 0.043%0.0353456% City Grover Beach San Luis Obispo 0.017%0.0137881% City Morro Bay San Luis Obispo 0.020%0.0160922% City San Luis Obispo San Luis Obispo 0.077%0.0637841% County San Mateo County San Mateo 1.074%1.313%1.1159599% City Belmont San Mateo 0.021%0.0169860% City Burlingame San Mateo 0.019%0.0152537% City Daly City San Mateo 0.044%0.0363880% City East Palo Alto San Mateo 0.013%0.0103982% City Foster City San Mateo 0.020%0.0166101% City Half Moon Bay San Mateo 0.004%0.0031638% City Hillsborough San Mateo 0.013%0.0110029% City Menlo Park San Mateo 0.015%0.0126209% City Millbrae San Mateo 0.013%0.0105836% City Pacifica San Mateo 0.016%0.0130625% City Redwood City San Mateo 0.056%0.0463511% City San Bruno San Mateo 0.021%0.0172161% City San Carlos San Mateo 0.013%0.0108885% City San Mateo San Mateo 0.052%0.0425841% City South San Francisco San Mateo 0.043%0.0353943% County Santa Barbara County Santa Barbara 1.132%1.385%1.1768968% City Carpinteria Santa Barbara 0.001%0.0008938% City Goleta Santa Barbara 0.004%0.0028969% City Lompoc Santa Barbara 0.047%0.0389379% City Santa Barbara Santa Barbara 0.122%0.1004559% City Santa Maria Santa Barbara 0.058%0.0479179% County Santa Clara County Santa Clara 2.404%2.941%2.4987553% City Campbell Santa Clara 0.014%0.0112566% City Cupertino Santa Clara 0.008%0.0066824% City Gilroy Santa Clara 0.025%0.0202891% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 484 APPENDIX 1 13 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Los Altos Santa Clara 0.013%0.0103338% City Los Gatos Santa Clara 0.013%0.0103220% City Milpitas Santa Clara 0.036%0.0298120% City Morgan Hill Santa Clara 0.015%0.0124619% City Mountain View Santa Clara 0.041%0.0334608% City Palo Alto Santa Clara 0.039%0.0323080% City San Jose Santa Clara 0.294%0.360%0.3054960% City Santa Clara Santa Clara 0.067%0.0549723% City Saratoga Santa Clara 0.004%0.0034161% City Sunnyvale Santa Clara 0.053%0.0434069% County Santa Cruz County Santa Cruz 0.783%0.957%0.8135396% City Capitola Santa Cruz 0.020%0.0168191% City Santa Cruz Santa Cruz 0.143%0.1180348% City Scotts Valley Santa Cruz 0.015%0.0126525% City Watsonville Santa Cruz 0.063%0.0520136% County Shasta County Shasta 1.095%1.339%1.1380191% City Anderson Shasta 0.024%0.0198896% City Redding Shasta 0.284%0.2334841% City Shasta Lake Shasta 0.004%0.0031993% County Siskiyou County Siskiyou 0.228%0.279%0.2373393% County Solano County Solano 0.760%0.6260795% City Benicia Solano 0.031%0.0253903% City Dixon Solano 0.016%0.0130849% City Fairfield Solano 0.109%0.0897317% City Suisun City Solano 0.021%0.0176183% City Vacaville Solano 0.119%0.0976497% City Vallejo Solano 0.167%0.1373644% County Sonoma County Sonoma 1.218%1.490%1.2661290% City Healdsburg Sonoma 0.032%0.0266929% City Petaluma Sonoma 0.081%0.0667507% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 485 APPENDIX 1 14 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Rohnert Park Sonoma 0.041%0.0340759% City Santa Rosa Sonoma 0.184%0.1519070% City Sonoma Sonoma 0.022%0.0183438% City Windsor Sonoma 0.016%0.0129298% County Stanislaus County Stanislaus 1.722%1.4182273% City Ceres Stanislaus 0.041%0.0340260% City Modesto Stanislaus 0.217%0.1788759% City Newman Stanislaus 0.006%0.0046964% City Oakdale Stanislaus 0.018%0.0145531% City Patterson Stanislaus 0.015%0.0126590% City Riverbank Stanislaus 0.010%0.0085699% City Turlock Stanislaus 0.065%0.0531966% County Sutter County Sutter 0.306%0.374%0.3179548% City Yuba City Sutter 0.074%0.0606242% County Tehama County Tehama 0.213%0.261%0.2216654% City Red Bluff Tehama 0.014%0.0117771% County Trinity County Trinity 0.082%0.101%0.0855476% County Tulare County Tulare 0.809%0.990%0.8410949% City Dinuba Tulare 0.014%0.0116929% City Exeter Tulare 0.004%0.0032479% City Farmersville Tulare 0.003%0.0027879% City Lindsay Tulare 0.007%0.0057111% City Porterville Tulare 0.021%0.0171845% City Tulare Tulare 0.037%0.0302273% City Visalia Tulare 0.066%0.0545872% County Tuolumne County Tuolumne 0.486%0.594%0.5047621% County Ventura County Ventura 2.192%2.681%2.2781201% City Camarillo Ventura 0.002%0.0012815% City Fillmore Ventura 0.002%0.0020294% City Moorpark Ventura 0.008%0.0067337% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 486 APPENDIX 1 15 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Oxnard Ventura 0.156%0.190%0.1617338% City Port Hueneme Ventura 0.021%0.0174145% City San Buenaventura (Ventura)Ventura 0.085%0.0702181% City Santa Paula Ventura 0.014%0.0119072% City Simi Valley Ventura 0.065%0.0533043% City Thousand Oaks Ventura 0.022%0.0179902% County Yolo County Yolo 0.357%0.437%0.3713319% City Davis Yolo 0.055%0.0451747% City West Sacramento Yolo 0.066%0.0544321% City Woodland Yolo 0.058%0.0477904% County Yuba County Yuba 0.214%0.262%0.2225679% City Marysville Yuba 0.014%0.0112079% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 487 1 6 APPENDIX 2 Cost Reimbursement Procedure 1.Additional defined terms: a)Costs means the reasonable amounts paid for the attorney and other City Attorney and County Counsel staff time for individuals employed by a Plaintiff Subdivision at the contractual rate, inclusive of benefits and overhead, together with amounts paid for court reporters, experts, copying, electronic research, travel, vendors, and the like, which were not previously reimbursed and which were paid or incurred (i) prior to December 31, 2022 in litigation against any Opioid Defendant and/or (ii) in negotiating and drafting any CA Allocation Agreement(s) concerning a settlement with any Opioid Defendant(s). Costs does not include attorneys’ fees, costs, or expenses incurred by private contingency fee counsel. No part of the CA Abatement Accounts Fund will be used to reimburse Costs. b)First Claims Date means October 1, 2023 or when all applications for reimbursement of Costs, in whole or in part, from funds available under Section IX and Exhibit R of the Walmart Settlement Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the Distributor Settlement Agreement, Section XI and Exhibit R of the Janssen Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, or Section IX and Exhibit R of the Walgreens Settlement Agreement, have been finally determined under the provisions of those agreements, whichever comes first. c)Special Master means a retired judicial officer or former public lawyer, not presently employed or retained by a Plaintiff Subdivision, who will aggregate, review, and determine the reasonable Costs to be awarded to each Plaintiff Subdivision that submits a claim for reimbursement of Costs. The Special Master will be selected by a majority vote of the votes cast by Plaintiff Subdivisions, with each such subdivision having one vote. d)Plaintiff Subdivision Committee means the committee of Plaintiff Subdivisions that will review and approve the invoices submitted by the Special Master reflecting his or her reasonable time and expenses. 2.Cost Reimbursement to Plaintiff Subdivision a)Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating National Opioid Settlements with various manufacturers, distributors, and chain pharmacies. b)Claims Procedure. i.If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 488 1 7 part, from funds available under Section IX and Exhibit R of the Walmart Settlement Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date. ii.A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act. iii.The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs. iv.The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt. v.Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 489 1 8 reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment. vi.The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section V(B)(2) of the Walmart Settlement Agreement. vii.A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Walmart a report of the fees and expenses incurred by the Special Master pursuant to Section V(B)(2) of the Walmart Settlement Agreement. c)Claims Priority and Limitation. i.The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section 2.c.v below. ii.Final Awards of Costs that do not exceed seventy-five thousand dollars ($75,000.00) will be paid next in priority after the Special Master’s approved invoices. iii.Final Awards of Costs in excess of seventy-five thousand dollars ($75,000.00) will be paid proportionally from the funds remaining in that year’s Annual Payment. iv.Any claim for Costs that is not paid in full will be allocated against the next year’s distribution from the CA Subdivision Fund, until all approved claims for Costs are paid in full. v.In no event will more than 50% of the total CA Subdivision Fund received in any year be used to pay Costs or the Special Master’s approved invoices. vi.In no event shall more than $28 million of the total CA Subdivision Funds paid pursuant to the Walmart Settlement Agreement, Teva Settlement Agreement, Allergan Settlement Agreement, Distributor Settlement Agreement, CVS Settlement Agreement, Janssen Settlement Agreement, and the Walgreens Settlement Agreement be used to pay Costs. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 490 1 9 d)Collateral Source Payments and Third-Party Settlement. i.In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. Any Plaintiff Subdivision that has submitted for reimbursement to any national fund and has not received a final determination by the First Claims Date may request that the settlement administrator withhold some or all of its payment from the CA Subdivision Fund in order to avoid repayment. ii.In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 491 1 APPENDIX 3 CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Walmart Settlement and their counsel. In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Walmart Settlement Agreement. Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Walmart Settlement Agreement and CA Walmart Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Walmart Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may receive from the national Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Walmart Settlement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Walmart Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments. The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the Walmart Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party. [DATE][SUBDIVISION SIGNATURE BLOCK] [DATE][COUNSEL SIGNATURE BLOCK] [DATE][ATTORNEY GENERAL SIGNATURE BLOCK] DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 492 1 Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – CVS Settlement 1.Introduction Pursuant to the CVS Settlement Agreement, dated as of December 9, 2022, and any revision thereto as well as any modification thereto entered into by the State of California and CVS (the “CVS Settlement Agreement”), including Section V and Exhibit O, the State of California proposes this agreement (the “CA CVS Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections IV and V of the CVS Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections IX or X of the CVS Settlement Agreement. Pursuant to Exhibit O, Paragraph 4, of the CVS Settlement Agreement, acceptance of this CA CVS Allocation Agreement is a requirement to be an Initial Participating Subdivision. 2.Definitions a)CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the CVS Settlement Agreement. b)Allergan Settlement Agreement means the Allergan Settlement Agreement dated November 22, 2022, and any revision thereto. c)Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto. d)Janssen Settlement Agreement means the Janssen Settlement Agreement dated July 21, 2021, and any revision thereto. e)Teva Settlement Agreement means the Teva Settlement Agreement dated November 22, 2022, and any revision thereto. f)Walgreens Settlement Agreement means the Walgreens Settlement Agreement dated December 9, 2022, and any revision thereto. g)Walmart Settlement Agreement means the Walmart Settlement Agreement dated November 14, 2022, and any revision thereto. h)CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, San Leandro Unified School District, Pleasant Valley School District Board, and LA Care Health Plan. i)Plaintiff Subdivision means a Subdivision located in California, other than a CA DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 493 2 Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j)Opioid Defendant means any defendant (including but not limited to Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020. 3.General Terms This agreement is subject to the requirements of the CVS Settlement Agreement, as well as applicable law, and the CVS Settlement Agreement governs over any inconsistent provision of this CA CVS Allocation Agreement. Terms used in this CA CVS Allocation Agreement have the same meaning as in the CVS Settlement Agreement unless otherwise defined herein. Pursuant to Section V(E)(1) of the CVS Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section V(B)(2) of the CVS Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation. 4.State Allocation The Settlement Fund payments to California,1 pursuant to the CVS Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA CVS Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”). 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 494 3 A.State of California Allocation Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation. B.CA Abatement Accounts Fund i.Allocation of CA Abatement Accounts Funds a)Seventy percent of the total Settlement Fund payments will be allocated to the CA Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision. The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For the avoidance of doubt, CA Litigating Special Districts and California towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of CA Abatement Accounts Funds. b)A CA Participating Subdivision that is a county, or a city and county, will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision, and will receive payments as provided in the CVS Settlement Agreement. c)A CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, rather than to the city, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d)A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA CVS Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 495 4 e)The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. f)Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the CVS Settlement Agreement and this CA CVS Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2. ii.Use of CA Abatement Accounts Funds a)The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the CVS Settlement Agreement. b)In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities: (1)the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2)creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3)addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD; (4)diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5)interventions to prevent drug addiction in vulnerable youth. c)The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d)For the avoidance of doubt, and subject to the requirements of the CVS Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 496 5 ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the CVS Settlement Agreement and this CA CVS Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated. iii.CA Abatement Accounts Fund Oversight a)Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the CVS Settlement Agreement and this CA CVS Allocation Agreement. b)If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the CVS Settlement Agreement or this CA CVS Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c)If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame. d)If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the CVS Settlement Agreement or this CA CVS Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement. e)Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 497 6 C.CA Subdivision Fund i.Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the CVS Settlement Agreement and this CA CVS Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid- related expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2. The CA Subdivision Funds will be allocated as follows: a)First, funds in the CA Subdivision Fund shall be used to pay the Special Master’s reasonable fees and expenses in accordance with the procedures and limitations set forth in Appendix 2 to this document; b)Second, funds will be allocated to Plaintiff Subdivisions that are Initial Participating Subdivisions that have been awarded Costs, as defined by and in accordance with the procedures and limitations set forth in Appendix 2 to this document. c)Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50% of the total CA Subdivision Fund received in any year pursuant to Appendix 2, Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Initial Participating Subdivisions, in relative proportion to the Local Allocation. These funds shall be used to fund future opioid-related projects and to reimburse past opioid-related expenses, which may include fees and expenses related to litigation against any Opioid Defendant. D.Provision for State Back-Stop Agreement On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the CVS Settlement Agreement, and, if applicable, the Teva Settlement Agreement, Allergan Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and Walmart Settlement Agreement. A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(Y), of the CVS Settlement Agreement and the MDL Fees Order, so long as such contingency fees do not exceed a total contingency fee of 15% of the total gross recovery of the Plaintiff Subdivision pursuant to the CVS Settlement, inclusive of contingency fees from the national Attorney Fee Fund and this State Back-Stop Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 498 7 representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the CVS Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments. To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 3 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 3. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms. For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General. 5.State and Subdivision Reporting a)DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site. b)Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the CVS Settlement Agreement and this CA CVS Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions. c)The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d)Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the CVS Settlement Agreement and this CA CVS Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the CVS Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and CVS. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 499 8 e)In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions. 6.Miscellaneous a)The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA CVS Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa. b)Except as provided in the CVS Settlement Agreement, this CA CVS Allocation Agreement is not enforceable by any party other than the State and the CA Participating Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party. c)Except as provided in the CA CVS Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d)Except as provided in the CVS Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 500 9 The undersigned, Moorpark city, ACKNOWLEDGES acceptance of this Proposed California State- Subdivision Agreement Regarding Distribution and Use of Settlement Funds – CVS Settlement is a requirement to be an Initial Participating Subdivision in the CVS Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – CVS Settlement. EXECUTED on /date_1_cvs/. Signature:/signer_1_teva_allergan/ Name:/name_1_teva_allergan/ Title:/title_1_teva_allergan/ Date:/date_1_cvs/ DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 Troy Brown 3/2/2023 City Manager 3/2/2023 501 APPENDIX 1 DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—CVS Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 502 APPENDIX 1 1 of 15 100.000%100.000%100.000% Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage County Alameda County Alameda 2.332%2.853%2.4237952% City Alameda Alameda 0.069%0.0570162% City Albany Alameda 0.013%0.0107768% City Berkeley Alameda 0.152%0.1249656% City Dublin Alameda 0.033%0.040%0.0338810% City Emeryville Alameda 0.023%0.0185765% City Fremont Alameda 0.108%0.0888576% City Hayward Alameda 0.117%0.0966218% City Livermore Alameda 0.054%0.0446740% City Newark Alameda 0.026%0.0217626% City Oakland Alameda 0.486%0.595%0.5055601% City Piedmont Alameda 0.014%0.0114064% City Pleasanton Alameda 0.067%0.0554547% City San Leandro Alameda 0.039%0.0321267% City Union City Alameda 0.043%0.0352484% County Amador County Amador 0.226%0.277%0.2349885% County Butte County Butte 1.615%1.975%1.6783178% City Chico Butte 0.216%0.264%0.2246499% City Oroville Butte 0.079%0.0646595% County Calaveras County Calaveras 0.226%0.277%0.2351644% County Colusa County Colusa 0.059%0.0489221% County Contra Costa County Contra Costa 2.102%2.571%2.1844585% City Antioch Contra Costa 0.037%0.0301879% City Brentwood Contra Costa 0.026%0.0215339% City Clayton Contra Costa 0.002%0.0018060% City Concord Contra Costa 0.055%0.0456676% City Danville Contra Costa 0.010%0.0082255% City El Cerrito Contra Costa 0.023%0.0189024% City Hercules Contra Costa 0.010%0.0078273% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 503 APPENDIX 1 2 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Lafayette Contra Costa 0.006%0.0046030% City Martinez Contra Costa 0.012%0.0098593% City Moraga Contra Costa 0.004%0.0031007% City Oakley Contra Costa 0.010%0.0079416% City Orinda Contra Costa 0.005%0.0038157% City Pinole Contra Costa 0.013%0.0110909% City Pittsburg Contra Costa 0.053%0.0436369% City Pleasant Hill Contra Costa 0.013%0.0106309% City Richmond Contra Costa 0.146%0.1201444% City San Pablo Contra Costa 0.018%0.0148843% City San Ramon Contra Costa 0.021%0.0176459% City Walnut Creek Contra Costa 0.026%0.0212132% County Del Norte County Del Norte 0.114%0.140%0.1189608% County El Dorado County El Dorado 0.768%0.939%0.7980034% City Placerville El Dorado 0.015%0.0127642% City South Lake Tahoe El Dorado 0.081%0.0665456% County Fresno County Fresno 1.895%2.318%1.9693410% City Clovis Fresno 0.065%0.0536211% City Coalinga Fresno 0.012%0.0098554% City Fresno Fresno 0.397%0.3270605% City Kerman Fresno 0.005%0.0042534% City Kingsburg Fresno 0.008%0.0066167% City Mendota Fresno 0.002%0.0019387% City Orange Cove Fresno 0.004%0.0035607% City Parlier Fresno 0.008%0.0069755% City Reedley Fresno 0.012%0.0098804% City Sanger Fresno 0.018%0.0146135% City Selma Fresno 0.015%0.0127537% County Glenn County Glenn 0.107%0.131%0.1116978% County Humboldt County Humboldt 1.030%1.260%1.0703185% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 504 APPENDIX 1 3 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Arcata Humboldt 0.054%0.0447660% City Eureka Humboldt 0.117%0.143%0.1216284% City Fortuna Humboldt 0.032%0.0266837% County Imperial County Imperial 0.258%0.315%0.2679006% City Brawley Imperial 0.011%0.0087986% City Calexico Imperial 0.019%0.0152799% City El Centro Imperial 0.158%0.1302522% City Imperial Imperial 0.006%0.0048791% County Inyo County Inyo 0.073%0.089%0.0754413% County Kern County Kern 2.517%3.079%2.6159145% City Arvin Kern 0.006%0.0046425% City Bakersfield Kern 0.212%0.1747198% City California City Kern 0.009%0.0070820% City Delano Kern 0.030%0.0249316% City McFarland Kern 0.003%0.0025644% City Ridgecrest Kern 0.015%0.0120938% City Shafter Kern 0.013%0.0103417% City Tehachapi Kern 0.009%0.0073580% City Wasco Kern 0.008%0.0069861% County Kings County Kings 0.293%0.2413469% City Avenal Kings 0.007%0.0056335% City Corcoran Kings 0.013%0.0107032% City Hanford Kings 0.027%0.0226038% City Lemoore Kings 0.016%0.0131900% County Lake County Lake 0.795%0.6545389% City Clearlake Lake 0.041%0.050%0.0426253% City Lakeport Lake 0.021%0.026%0.0222964% County Lassen County Lassen 0.319%0.391%0.3320610% City Susanville Lassen 0.027%0.0219295% County Los Angeles County Los Angeles 13.896%16.999%14.4437559% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 505 APPENDIX 1 4 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Agoura Hills Los Angeles 0.005%0.0040024% City Alhambra Los Angeles 0.042%0.0343309% City Arcadia Los Angeles 0.033%0.0267718% City Artesia Los Angeles 0.001%0.0005100% City Azusa Los Angeles 0.026%0.0210857% City Baldwin Park Los Angeles 0.027%0.0218520% City Bell Los Angeles 0.008%0.0068783% City Bellflower Los Angeles 0.002%0.0014485% City Bell Gardens Los Angeles 0.014%0.0114301% City Beverly Hills Los Angeles 0.065%0.0534897% City Burbank Los Angeles 0.100%0.0823132% City Calabasas Los Angeles 0.006%0.0048948% City Carson Los Angeles 0.019%0.0159805% City Cerritos Los Angeles 0.005%0.0039682% City Claremont Los Angeles 0.010%0.0082584% City Commerce Los Angeles 0.000%0.0002971% City Compton Los Angeles 0.044%0.0361882% City Covina Los Angeles 0.028%0.0229127% City Cudahy Los Angeles 0.001%0.0006020% City Culver City Los Angeles 0.055%0.0449894% City Diamond Bar Los Angeles 0.001%0.0006993% City Downey Los Angeles 0.052%0.0429994% City Duarte Los Angeles 0.003%0.0027261% City El Monte Los Angeles 0.031%0.038%0.0318985% City El Segundo Los Angeles 0.033%0.0268020% City Gardena Los Angeles 0.034%0.0278088% City Glendale Los Angeles 0.166%0.1366586% City Glendora Los Angeles 0.016%0.0134411% City Hawaiian Gardens Los Angeles 0.005%0.0040549% City Hawthorne Los Angeles 0.050%0.0407833% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 506 APPENDIX 1 5 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Hermosa Beach Los Angeles 0.018%0.0145307% City Huntington Park Los Angeles 0.023%0.0190667% City Inglewood Los Angeles 0.059%0.0489195% City La Cañada Flintridge Los Angeles 0.003%0.0025565% City Lakewood Los Angeles 0.005%0.0039971% City La Mirada Los Angeles 0.010%0.0081572% City Lancaster Los Angeles 0.045%0.0369689% City La Puente Los Angeles 0.002%0.0012999% City La Verne Los Angeles 0.024%0.0194190% City Lawndale Los Angeles 0.002%0.0017731% City Lomita Los Angeles 0.004%0.0031940% City Long Beach Los Angeles 0.439%0.3614151% City Los Angeles Los Angeles 2.715%3.321%2.8218811% City Lynwood Los Angeles 0.016%0.0134345% City Malibu Los Angeles 0.002%0.0019269% City Manhattan Beach Los Angeles 0.032%0.0260686% City Maywood Los Angeles 0.004%0.0035528% City Monrovia Los Angeles 0.031%0.0254455% City Montebello Los Angeles 0.030%0.0250670% City Monterey Park Los Angeles 0.031%0.0256677% City Norwalk Los Angeles 0.031%0.0258228% City Palmdale Los Angeles 0.046%0.0375827% City Palos Verdes Estates Los Angeles 0.006%0.0053102% City Paramount Los Angeles 0.011%0.0091483% City Pasadena Los Angeles 0.146%0.1200524% City Pico Rivera Los Angeles 0.022%0.0183333% City Pomona Los Angeles 0.111%0.0911933% City Rancho Palos Verdes Los Angeles 0.002%0.0012645% City Redondo Beach Los Angeles 0.062%0.0506992% City Rosemead Los Angeles 0.003%0.0028260% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 507 APPENDIX 1 6 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City San Dimas Los Angeles 0.003%0.0022016% City San Fernando Los Angeles 0.013%0.0104837% City San Gabriel Los Angeles 0.018%0.0147726% City San Marino Los Angeles 0.009%0.0073791% City Santa Clarita Los Angeles 0.022%0.0178167% City Santa Fe Springs Los Angeles 0.031%0.0257531% City Santa Monica Los Angeles 0.158%0.1298513% City Sierra Madre Los Angeles 0.006%0.0048646% City Signal Hill Los Angeles 0.010%0.0084884% City South El Monte Los Angeles 0.005%0.0039603% City South Gate Los Angeles 0.020%0.0166272% City South Pasadena Los Angeles 0.012%0.0095334% City Temple City Los Angeles 0.005%0.0039498% City Torrance Los Angeles 0.112%0.0919820% City Walnut Los Angeles 0.006%0.0047305% City West Covina Los Angeles 0.049%0.0404521% City West Hollywood Los Angeles 0.013%0.0108517% City Whittier Los Angeles 0.032%0.0260581% County Madera County Madera 0.349%0.427%0.3630669% City Chowchilla Madera 0.012%0.0097332% City Madera Madera 0.039%0.0318441% County Marin County Marin 0.564%0.690%0.5861325% City Larkspur Marin 0.015%0.0124697% City Mill Valley Marin 0.020%0.0168401% City Novato Marin 0.028%0.0229824% City San Anselmo Marin 0.009%0.0078062% City San Rafael Marin 0.089%0.0729823% County Mariposa County Mariposa 0.084%0.103%0.0876131% County Mendocino County Mendocino 0.439%0.536%0.4558394% City Ukiah Mendocino 0.039%0.0317153% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 508 APPENDIX 1 7 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage County Merced County Merced 0.551%0.674%0.5724262% City Atwater Merced 0.024%0.0195846% City Livingston Merced 0.006%0.0045873% City Los Banos Merced 0.020%0.0165142% City Merced Merced 0.061%0.0500762% County Modoc County Modoc 0.065%0.080%0.0678250% County Mono County Mono 0.023%0.029%0.0242606% County Monterey County Monterey 0.908%1.111%0.9437083% City Greenfield Monterey 0.006%0.0050552% City King City Monterey 0.005%0.0037355% City Marina Monterey 0.017%0.0144098% City Monterey Monterey 0.041%0.0336540% City Pacific Grove Monterey 0.009%0.0074842% City Salinas Monterey 0.094%0.0776576% City Seaside Monterey 0.023%0.0191772% City Soledad Monterey 0.007%0.0060870% County Napa County Napa 0.288%0.352%0.2994325% City American Canyon Napa 0.017%0.0136869% City Napa Napa 0.078%0.0642783% County Nevada County Nevada 0.441%0.539%0.4579827% City Grass Valley Nevada 0.024%0.0197805% City Truckee Nevada 0.003%0.0023843% County Orange County Orange 4.364%5.339%4.5363576% City Aliso Viejo Orange 0.014%0.0113841% City Anaheim Orange 0.554%0.678%0.5759282% City Brea Orange 0.086%0.0708897% City Buena Park Orange 0.087%0.0714352% City Costa Mesa Orange 0.124%0.152%0.1288366% City Cypress Orange 0.033%0.0271937% City Dana Point Orange 0.001%0.0005560% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 509 APPENDIX 1 8 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Fountain Valley Orange 0.055%0.0455980% City Fullerton Orange 0.137%0.168%0.1425744% City Garden Grove Orange 0.213%0.1752482% City Huntington Beach Orange 0.247%0.302%0.2568420% City Irvine Orange 0.139%0.170%0.1442350% City Laguna Beach Orange 0.047%0.058%0.0493043% City Laguna Hills Orange 0.014%0.0115457% City Laguna Niguel Orange 0.001%0.0007071% City Laguna Woods Orange 0.001%0.0006546% City La Habra Orange 0.060%0.073%0.0621049% City Lake Forest Orange 0.012%0.0101249% City La Palma Orange 0.012%0.0095439% City Los Alamitos Orange 0.008%0.0069190% City Mission Viejo Orange 0.014%0.0117560% City Newport Beach Orange 0.179%0.1470134% City Orange Orange 0.150%0.1231320% City Placentia Orange 0.029%0.035%0.0298912% City Rancho Santa Margarita Orange 0.001%0.0006296% City San Clemente Orange 0.008%0.010%0.0086083% City San Juan Capistrano Orange 0.008%0.0065510% City Santa Ana Orange 0.502%0.614%0.5213866% City Seal Beach Orange 0.020%0.0165891% City Stanton Orange 0.035%0.0291955% City Tustin Orange 0.073%0.0600341% City Westminster Orange 0.104%0.127%0.1082721% City Yorba Linda Orange 0.044%0.0362223% County Placer County Placer 1.045%1.278%1.0861002% City Auburn Placer 0.017%0.0141114% City Lincoln Placer 0.031%0.0255599% City Rocklin Placer 0.076%0.0625485% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 510 APPENDIX 1 9 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Roseville Placer 0.196%0.1616559% County Plumas County Plumas 0.205%0.251%0.2128729% County Riverside County Riverside 4.534%5.547%4.7128296% City Banning Riverside 0.017%0.0143848% City Beaumont Riverside 0.021%0.0171135% City Blythe Riverside 0.012%0.0096714% City Canyon Lake Riverside 0.000%0.0001761% City Cathedral City Riverside 0.067%0.0553614% City Coachella Riverside 0.021%0.0173054% City Corona Riverside 0.147%0.1207083% City Desert Hot Springs Riverside 0.024%0.0200433% City Eastvale Riverside 0.000%0.0002747% City Hemet Riverside 0.051%0.0421792% City Indio Riverside 0.056%0.0457794% City Jurupa Valley Riverside 0.001%0.0008991% City Lake Elsinore Riverside 0.021%0.0172949% City La Quinta Riverside 0.063%0.0516732% City Menifee Riverside 0.032%0.0260909% City Moreno Valley Riverside 0.137%0.1130348% City Murrieta Riverside 0.048%0.059%0.0497423% City Norco Riverside 0.016%0.0134542% City Palm Desert Riverside 0.083%0.0682465% City Palm Springs Riverside 0.076%0.0629862% City Perris Riverside 0.009%0.0076774% City Rancho Mirage Riverside 0.052%0.0431098% City Riverside Riverside 0.268%0.2206279% City San Jacinto Riverside 0.010%0.0085936% City Temecula Riverside 0.022%0.0180086% City Wildomar Riverside 0.008%0.0062500% County Sacramento County Sacramento 3.797%4.645%3.9465887% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 511 APPENDIX 1 10 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Citrus Heights Sacramento 0.057%0.0465312% City Elk Grove Sacramento 0.130%0.1066994% City Folsom Sacramento 0.108%0.0890850% City Galt Sacramento 0.017%0.0143704% City Rancho Cordova Sacramento 0.008%0.0067679% City Sacramento Sacramento 0.721%0.882%0.7496530% County San Benito County San Benito 0.106%0.130%0.1101417% City Hollister San Benito 0.027%0.0225355% County San Bernardino County San Bernardino 3.259%3.987%3.3878124% City Adelanto San Bernardino 0.008%0.0066640% City Apple Valley San Bernardino 0.025%0.0207360% City Barstow San Bernardino 0.015%0.0122056% City Chino San Bernardino 0.064%0.0525893% City Chino Hills San Bernardino 0.001%0.0006388% City Colton San Bernardino 0.031%0.0253443% City Fontana San Bernardino 0.112%0.0920543% City Grand Terrace San Bernardino 0.006%0.0051051% City Hesperia San Bernardino 0.035%0.0291522% City Highland San Bernardino 0.004%0.0029061% City Loma Linda San Bernardino 0.009%0.0071188% City Montclair San Bernardino 0.039%0.0322108% City Ontario San Bernardino 0.179%0.1472934% City Rancho Cucamonga San Bernardino 0.084%0.0689431% City Redlands San Bernardino 0.057%0.0469150% City Rialto San Bernardino 0.073%0.0603206% City San Bernardino San Bernardino 0.178%0.1461880% City Twentynine Palms San Bernardino 0.002%0.0012605% City Upland San Bernardino 0.052%0.0424460% City Victorville San Bernardino 0.033%0.0269400% City Yucaipa San Bernardino 0.016%0.0128772% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 512 APPENDIX 1 11 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Yucca Valley San Bernardino 0.003%0.0021228% County San Diego County San Diego 5.706%6.980%5.9309748% City Carlsbad San Diego 0.128%0.1050485% City Chula Vista San Diego 0.189%0.231%0.1961456% City Coronado San Diego 0.044%0.0359095% City El Cajon San Diego 0.113%0.0933582% City Encinitas San Diego 0.061%0.074%0.0630289% City Escondido San Diego 0.145%0.1192204% City Imperial Beach San Diego 0.014%0.0118283% City La Mesa San Diego 0.055%0.068%0.0575593% City Lemon Grove San Diego 0.022%0.0183911% City National City San Diego 0.080%0.0656808% City Oceanside San Diego 0.213%0.1753428% City Poway San Diego 0.062%0.0511040% City San Diego San Diego 1.975%2.416%2.0531169% City San Marcos San Diego 0.089%0.0733897% City Santee San Diego 0.033%0.0268401% City Solana Beach San Diego 0.017%0.0138564% City Vista San Diego 0.052%0.0425144% Consolidated San Francisco San Francisco 3.026%3.702%3.1457169% County San Joaquin County San Joaquin 1.680%2.055%1.7460399% City Lathrop San Joaquin 0.009%0.0075394% City Lodi San Joaquin 0.053%0.0439484% City Manteca San Joaquin 0.054%0.0443454% City Ripon San Joaquin 0.013%0.0104219% City Stockton San Joaquin 0.313%0.383%0.3256176% City Tracy San Joaquin 0.084%0.0692047% County San Luis Obispo County San Luis Obispo 0.816%0.999%0.8484126% City Arroyo Grande San Luis Obispo 0.024%0.0199053% City Atascadero San Luis Obispo 0.029%0.0240680% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 513 APPENDIX 1 12 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City El Paso de Robles (Paso Robles)San Luis Obispo 0.043%0.0353456% City Grover Beach San Luis Obispo 0.017%0.0137881% City Morro Bay San Luis Obispo 0.020%0.0160922% City San Luis Obispo San Luis Obispo 0.077%0.0637841% County San Mateo County San Mateo 1.074%1.313%1.1159599% City Belmont San Mateo 0.021%0.0169860% City Burlingame San Mateo 0.019%0.0152537% City Daly City San Mateo 0.044%0.0363880% City East Palo Alto San Mateo 0.013%0.0103982% City Foster City San Mateo 0.020%0.0166101% City Half Moon Bay San Mateo 0.004%0.0031638% City Hillsborough San Mateo 0.013%0.0110029% City Menlo Park San Mateo 0.015%0.0126209% City Millbrae San Mateo 0.013%0.0105836% City Pacifica San Mateo 0.016%0.0130625% City Redwood City San Mateo 0.056%0.0463511% City San Bruno San Mateo 0.021%0.0172161% City San Carlos San Mateo 0.013%0.0108885% City San Mateo San Mateo 0.052%0.0425841% City South San Francisco San Mateo 0.043%0.0353943% County Santa Barbara County Santa Barbara 1.132%1.385%1.1768968% City Carpinteria Santa Barbara 0.001%0.0008938% City Goleta Santa Barbara 0.004%0.0028969% City Lompoc Santa Barbara 0.047%0.0389379% City Santa Barbara Santa Barbara 0.122%0.1004559% City Santa Maria Santa Barbara 0.058%0.0479179% County Santa Clara County Santa Clara 2.404%2.941%2.4987553% City Campbell Santa Clara 0.014%0.0112566% City Cupertino Santa Clara 0.008%0.0066824% City Gilroy Santa Clara 0.025%0.0202891% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 514 APPENDIX 1 13 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Los Altos Santa Clara 0.013%0.0103338% City Los Gatos Santa Clara 0.013%0.0103220% City Milpitas Santa Clara 0.036%0.0298120% City Morgan Hill Santa Clara 0.015%0.0124619% City Mountain View Santa Clara 0.041%0.0334608% City Palo Alto Santa Clara 0.039%0.0323080% City San Jose Santa Clara 0.294%0.360%0.3054960% City Santa Clara Santa Clara 0.067%0.0549723% City Saratoga Santa Clara 0.004%0.0034161% City Sunnyvale Santa Clara 0.053%0.0434069% County Santa Cruz County Santa Cruz 0.783%0.957%0.8135396% City Capitola Santa Cruz 0.020%0.0168191% City Santa Cruz Santa Cruz 0.143%0.1180348% City Scotts Valley Santa Cruz 0.015%0.0126525% City Watsonville Santa Cruz 0.063%0.0520136% County Shasta County Shasta 1.095%1.339%1.1380191% City Anderson Shasta 0.024%0.0198896% City Redding Shasta 0.284%0.2334841% City Shasta Lake Shasta 0.004%0.0031993% County Siskiyou County Siskiyou 0.228%0.279%0.2373393% County Solano County Solano 0.760%0.6260795% City Benicia Solano 0.031%0.0253903% City Dixon Solano 0.016%0.0130849% City Fairfield Solano 0.109%0.0897317% City Suisun City Solano 0.021%0.0176183% City Vacaville Solano 0.119%0.0976497% City Vallejo Solano 0.167%0.1373644% County Sonoma County Sonoma 1.218%1.490%1.2661290% City Healdsburg Sonoma 0.032%0.0266929% City Petaluma Sonoma 0.081%0.0667507% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 515 APPENDIX 1 14 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Rohnert Park Sonoma 0.041%0.0340759% City Santa Rosa Sonoma 0.184%0.1519070% City Sonoma Sonoma 0.022%0.0183438% City Windsor Sonoma 0.016%0.0129298% County Stanislaus County Stanislaus 1.722%1.4182273% City Ceres Stanislaus 0.041%0.0340260% City Modesto Stanislaus 0.217%0.1788759% City Newman Stanislaus 0.006%0.0046964% City Oakdale Stanislaus 0.018%0.0145531% City Patterson Stanislaus 0.015%0.0126590% City Riverbank Stanislaus 0.010%0.0085699% City Turlock Stanislaus 0.065%0.0531966% County Sutter County Sutter 0.306%0.374%0.3179548% City Yuba City Sutter 0.074%0.0606242% County Tehama County Tehama 0.213%0.261%0.2216654% City Red Bluff Tehama 0.014%0.0117771% County Trinity County Trinity 0.082%0.101%0.0855476% County Tulare County Tulare 0.809%0.990%0.8410949% City Dinuba Tulare 0.014%0.0116929% City Exeter Tulare 0.004%0.0032479% City Farmersville Tulare 0.003%0.0027879% City Lindsay Tulare 0.007%0.0057111% City Porterville Tulare 0.021%0.0171845% City Tulare Tulare 0.037%0.0302273% City Visalia Tulare 0.066%0.0545872% County Tuolumne County Tuolumne 0.486%0.594%0.5047621% County Ventura County Ventura 2.192%2.681%2.2781201% City Camarillo Ventura 0.002%0.0012815% City Fillmore Ventura 0.002%0.0020294% City Moorpark Ventura 0.008%0.0067337% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 516 APPENDIX 1 15 of 15 Participating Subdivision Classification Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Oxnard Ventura 0.156%0.190%0.1617338% City Port Hueneme Ventura 0.021%0.0174145% City San Buenaventura (Ventura)Ventura 0.085%0.0702181% City Santa Paula Ventura 0.014%0.0119072% City Simi Valley Ventura 0.065%0.0533043% City Thousand Oaks Ventura 0.022%0.0179902% County Yolo County Yolo 0.357%0.437%0.3713319% City Davis Yolo 0.055%0.0451747% City West Sacramento Yolo 0.066%0.0544321% City Woodland Yolo 0.058%0.0477904% County Yuba County Yuba 0.214%0.262%0.2225679% City Marysville Yuba 0.014%0.0112079% DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 517 1 6 APPENDIX 2 Cost Reimbursement Procedure 1.Additional defined terms: a)Costs means the reasonable amounts paid for the attorney and other City Attorney and County Counsel staff time for individuals employed by a Plaintiff Subdivision at the contractual rate, inclusive of benefits and overhead, together with amounts paid for court reporters, experts, copying, electronic research, travel, vendors, and the like, which were not previously reimbursed and which were paid or incurred (i) prior to December 31, 2022 in litigation against any Opioid Defendant and/or (ii) in negotiating and drafting any CA Allocation Agreement(s) concerning a settlement with any Opioid Defendant(s). Costs does not include attorneys’ fees, costs, or expenses incurred by private contingency fee counsel. No part of the CA Abatement Accounts Fund will be used to reimburse Costs. b)First Claims Date means October 1, 2023 or when all applications for reimbursement of Costs, in whole or in part, from funds available under Section X and Exhibit R of the CVS Settlement Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the Distributor Settlement Agreement, Section XI and Exhibit R of the Janssen Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, or Section IX and Exhibit R of the Walmart Settlement Agreement, have been finally determined under the provisions of those agreements, whichever comes first. c)Special Master means a retired judicial officer or former public lawyer, not presently employed or retained by a Plaintiff Subdivision, who will aggregate, review, and determine the reasonable Costs to be awarded to each Plaintiff Subdivision that submits a claim for reimbursement of Costs. The Special Master will be selected by a majority vote of the votes cast by Plaintiff Subdivisions, with each such subdivision having one vote. d)Plaintiff Subdivision Committee means the committee of Plaintiff Subdivisions that will review and approve the invoices submitted by the Special Master reflecting his or her reasonable time and expenses. 2.Cost Reimbursement to Plaintiff Subdivision a)Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating National Opioid Settlements with various manufacturers, distributors, and chain pharmacies. b)Claims Procedure. i.If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section X and Exhibit R of the CVS Settlement DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 518 1 7 Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, Section IX and Exhibit R of the Walmart Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date. ii.A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act. iii.The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs. iv.The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt. v.Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 519 1 8 reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment. vi.The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section V(B)(2) of the CVS Settlement Agreement. vii.A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and CVS a report of the fees and expenses incurred by the Special Master pursuant to Section V(B)(2) of the CVS Settlement Agreement. c)Claims Priority and Limitation. i.The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section 2.c.v below. ii.Final Awards of Costs that do not exceed seventy-five thousand dollars ($75,000.00) will be paid next in priority after the Special Master’s approved invoices. iii.Final Awards of Costs in excess of seventy-five thousand dollars ($75,000.00) will be paid proportionally from the funds remaining in that year’s Annual Payment. iv.Any claim for Costs that is not paid in full will be allocated against the next year’s distribution from the CA Subdivision Fund, until all approved claims for Costs are paid in full. v.In no event will more than 50% of the total CA Subdivision Fund received in any year be used to pay Costs or the Special Master’s approved invoices. vi.In no event shall more than $28 million of the total CA Subdivision Funds paid pursuant to the CVS Settlement Agreement, Teva Settlement Agreement, Allergan Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and the Walmart Settlement Agreement be used to pay Costs. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 520 1 9 d)Collateral Source Payments and Third-Party Settlement. i.In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. Any Plaintiff Subdivision that has submitted for reimbursement to any national fund and has not received a final determination by the First Claims Date may request that the settlement administrator withhold some or all of its payment from the CA Subdivision Fund in order to avoid repayment. ii.In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above. DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 521 1 APPENDIX 3 CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the CVS Settlement and their counsel. In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the CVS Settlement Agreement. Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the CVS Settlement Agreement and CA CVS Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the CVS Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may receive from the national Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the CVS Settlement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the CVS Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments. The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the CVS Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party. [DATE][SUBDIVISION SIGNATURE BLOCK] [DATE][COUNSEL SIGNATURE BLOCK] [DATE][ATTORNEY GENERAL SIGNATURE BLOCK] DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 522 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 523 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 524 OFFICE OF ATTORNEY GENERAL ROB BONTA JANUARY 27, 2023 PAGE 3 SO AGREED BY AND ON BEHALF OF THE STATE OF CALFORNIA: N e Title: t Attorney General Date: 8524664.1 1/30/2023 DocuSign Envelope ID: 81AFEFBA-5874-4D7A-979E-84089650EA91 525