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Docusign Envelope ID: 16E112FF-704F-42CB-8ECE-gB04A027CEOD <br />Proposed California State -Subdivision Agreement <br />Regarding Distribution and Use of <br />Settlement Funds — Kroger Settlement <br />1. Introduction <br />Pursuant to the Kroger Settlement Agreement, dated as of March 22, 2024, and any revision <br />thereto as well as any modification thereto entered into by the State of California and Kroger (the <br />"Kroger Settlement Agreement"), including Section V and Exhibit O, the State of California <br />proposes this agreement (the "CA Kroger Allocation Agreement") to govern the allocation, <br />distribution, and use of Settlement Fund payments made to California pursuant to Sections IV <br />and V of the Kroger Settlement Agreement. For the avoidance of doubt, this agreement does not <br />apply to payments made pursuant to Section IX of the Kroger Settlement Agreement. <br />Pursuant to Exhibit O, Paragraph 4, of the Kroger Settlement Agreement, acceptance of this CA <br />Kroger Allocation Agreement is a requirement to be an Initial Participating Subdivision. <br />2. Definitions <br />a) CA Participating Subdivision means a Participating Subdivision that is also (a) a <br />Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or <br />greater than 10,000. For the avoidance of doubt, eligible CA Participating <br />Subdivisions are those California subdivisions listed in Exhibit C (excluding <br />Litigating Special Districts) and/or Exhibit I to the Kroger Settlement Agreement. <br />b) Allergan Settlement Agreement means the Allergan Settlement Agreement dated <br />November 22, 2022, and any revision thereto. <br />c) CVS Settlement Agreement means the CVS Settlement Agreement dated December 9, <br />2022, and any revision thereto as well as any modification thereto entered into by the <br />State of California and CVS. <br />d) Distributor Settlement Agreement means the Distributor Settlement Agreement dated <br />July 21, 2021, and any revision thereto. <br />e) Janssen Settlement Agreement means the Janssen Settlement Agreement dated July <br />21, 2021, and any revision thereto. <br />f) Teva Settlement Agreement means the Teva Settlement Agreement dated November <br />22, 2022, and any revision thereto. <br />g) Walgreens Settlement Agreement means the Walgreens Settlement Agreement dated <br />December 9, 2022, and any revision thereto. <br />h) Walmart Settlement Agreement means the Walmart Settlement Agreement dated <br />November 14, 2022, and any revision thereto. <br />i) CA Litigating Special District means a Litigating Special District located in <br />California. CA Litigating Special Districts include Downey Unified School District, <br />