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DocuSign Envelope ID: B1SAAEBD-74AB-4EFF-B97F-0776E33BOD86 <br />A. State of California Allocation <br />Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by <br />the State for future Opioid Remediation. <br />B. CA Abatement Accounts Fund <br />Allocation of CA Abatement Accounts Funds <br />a) Seventy percent of the total Settlement Fund payments will be allocated to the CA <br />Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be <br />allocated based on the allocation model developed in connection with the proposed <br />negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as <br />adjusted to reflect only those cities and counties that are eligible, based on population or <br />litigation status, to become a CA Participating Subdivision. The percentage from the CA <br />Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in <br />Appendix 1 in the column entitled abatement percentage (the "Local Allocation"). For <br />the avoidance of doubt, CA Litigating Special Districts and California towns, cities, and <br />counties with a population less than 10,000 are not eligible to receive an allocation of <br />CA Abatement Accounts Funds. <br />b) A CA Participating Subdivision that is a county, or a city and county, will be allocated its <br />Local Allocation share as of the date on which it becomes a Participating Subdivision, <br />and will receive payments as provided in the Walmart Settlement Agreement. <br />c) A CA Participating Subdivision that is a city will be allocated its Local Allocation share <br />as of the date on which it becomes a Participating Subdivision. The Local Allocation <br />share for a city that is a CA Participating Subdivision will be paid to the county in which <br />the city is located, rather than to the city, so long as: (a) the county is a CA Participating <br />Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it <br />requests direct payment at least 60 days prior to a Payment Date. A Local Allocation <br />share allocated to a city but paid to a county is not required to be spent exclusively for <br />abatement activities in that city, but will become part of the county's share of the CA <br />Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use <br />of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii <br />(CA Abatement Accounts Fund Oversight). <br />d) A city within a county that is a CA Participating Subdivision may opt in or out of direct <br />payment at any time, and it may also elect direct payment of only a portion of its share, <br />with the remainder going to the county, by providing notice to the Settlement Fund <br />Administrator at least 60 days prior to a Payment Date. For purposes of this CA Walmart <br />Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and <br />Eureka will be deemed to have elected direct payment if they become Participating <br />Subdivisions. <br />