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DocuSign Envelope ID: B15AAEBD-74AB-4EFF-B97F-0776E33BOD86 <br />C. CA Subdivision Fund . <br />Fifteen percent of the total Settlement Fund payments will be allocated to the CA <br />Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the <br />Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, <br />subject to any limits imposed by the Teva Settlement Agreement and this CA Teva <br />Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid- <br />related expenses, which may include fees and expenses related to litigation, and to pay <br />the reasonable fees and expenses of the Special Master as set forth in Appendix 2. <br />The CA Subdivision Funds will be allocated as follows: <br />a) First, funds in the CA Subdivision Fund shall be used to pay the Special Master's <br />reasonable fees and expenses in accordance with the procedures and limitations set <br />forth in Appendix 2 to this document; <br />b) Second, funds will be allocated to Plaintiff Subdivisions that are Initial Participating <br />Subdivisions that have been awarded Costs, as defined by and in accordance with the <br />procedures and limitations set forth in Appendix 2 to this document. <br />c) Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50% <br />of the total CA Subdivision Fund received in any year pursuant to Appendix 2, <br />Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Initial Participating <br />Subdivisions, in relative; proportion to the Local Allocation. These funds shall be used <br />to fund future opioid-related .projects and to reimburse past opioid-related expenses, <br />which may include fees and expenses related to litigation against any Opioid <br />Defendant. <br />D. Provision for State Back -Stop Agreement <br />On August 6, 2021, Judge Dan Polsterof the U.S. District Court, Northern District of Ohio, <br />Eastern Division, issued an order (ECF Docket Number 3814) ("MDL Fees Order") in the <br />National Prescription Opiate Litigation (MDL No. 2804) "cap[ping] all applicable contingent fee <br />agreements at 15%." Private counsel representing Plaintiff Subdivisions should seek its <br />contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Teva Settlement <br />Agreement and Allergan Settlement Agreement, and, if applicable, the CVS Settlement <br />Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, Walgreens <br />Settlement Agreement, and Walmart Settlement Agreement. <br />A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay <br />for fees or costs incurred by its contingency -fee counsel ("State Back -Stop Agreement"), <br />pursuant to Exhibit R, section I(X), of the Teva Settlement Agreement and the MDL Fees Order, <br />