PURDUE NATIONAL OPIOIDS SETTLEMENT

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Docusign Envelope ID:F617E359-4OD9-46EO-BD71-OF5OB4798B26 B. CA Abatement Accounts Fund i. Allocation of CA Abatement Accounts Funds a) Seventy percent of the payments to California subject to this Agreement 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 (except those that are Plaintiff Subdivisions) 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 Governing Documents and this 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 the county is a CA Participating Subdivision;provided, however,that if a city currently receives direct payment of its share of funds in the National Opioids Settlement with Distributors Cencora,Inc. (f/k/a AmerisourceBergenCorporation), Cardinal Health, Inc., and McKesson Corporation (the "Distributors Settlement"),that city's Local Allocation amount will be paid directly to the city.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). 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 Administrator at least 60 days prior to a Payment Date. e) The State will receive the Local Allocation share of any payment that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but has not, for a particular payment, 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 Governing Documents and this ON 3