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Docusign Envelope ID: 16E112FF-704F-42CB-8ECE-9BO4AO27CEOD <br />APPENDIX 3 <br />CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT <br />On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio <br />issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate <br />Litigation, MDL 2804, addressing contingent attorney fee contracts between political <br />subdivisions eligible to participate in the Kroger Settlement and their counsel. <br />In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel <br />[COUNSEL], and the California Attorney General, on behalf of the State of California, are <br />entering into this California -Subdivision Backstop Agreement (Backstop Agreement). <br />[SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back - <br />Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys' <br />Fees, Costs, and Expenses) of the Kroger Settlement Agreement. <br />Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the <br />Kroger Settlement Agreement and CA Kroger Allocation Agreement, as well as any other <br />limitations imposed by law, use funds that it receives from the Kroger Settlement CA <br />Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from <br />[SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may <br />receive from the national Attorney Fee Fund, will not exceed a total contingency fee of <br />[PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from <br />the Kroger Settlement. <br />[COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created <br />under the Kroger Settlement Agreement before seeking or accepting payment under this <br />backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept <br />payment under this backstop agreement of any litigation fees or costs that have been reimbursed <br />through prior settlements or judgments. <br />The Attorney General is executing this agreement solely because the definition of "State Back - <br />Stop Agreement" in Exhibit R of the Kroger Settlement Agreement requires such agreements to <br />be between "a Settling State" and private counsel for a participating subdivision. Neither the <br />California Attorney General nor the State of California have any obligations under this Backstop <br />Agreement, and this Backstop Agreement does not require the payment of any state funds to <br />[SUBDIVISION], [COUNSEL], or any other party. <br />[DATE] [SUBDIVISION SIGNATURE BLOCK] <br />[DATE] [COUNSEL SIGNATURE BLOCK] <br />[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK] <br />o <br />