PURDUE NATIONAL OPIOIDS SETTLEMENT

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Docusign Envelope ID:F617E359-40D9-46EO-BD71-OF5OB4798B26 Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds Purdue/Sackler Settlement 1. Introduction The State of California' and certain of its cities and counties have reached this proposed agreement(the"California Purdue/Sackler State-Subdivision Agreement" or the "Agreement") to govern the payments made to California in In re: Purdue Pharma L.P., et al, Case No. 19- 23649, pending in the United States Bankruptcy Court, Southern District of New York(the "Purdue Bankruptcy Matter") and pursuant to the related settlement with the Sacklers. This Agreement is proposed to govern the allocation, distribution, and use of payments, including the Statewide Payment Amounts, consisting of Base Payments and Incentive Payments, and Estate Distributions, paid to California pursuant to the Governmental Entity & Shareholder Direct Settlement Agreement("GESA"),the Master Settlement Agreement ("MSA"), the Thirteenth Amended Joint Chapter 11 Plan of Reorganization of Purdue Pharma L.P. and its Affiliated Debtors (the "Plan"), and the Governmental Remediation Trust Agreement ("GRTA"), and any revisions thereto (collectively,the "Governing Documents"), filed in the Purdue Bankruptcy Matter. For the avoidance of doubt, this Agreement does not apply to payments of attorneys' fees and costs made to California, including any payments to California from the Local Government Costs and Expenses Fund and the State Expenses Fund and payments pursuant to Sections 9.01, 9.02, and 9.03 and Exhibit R of the GESA and Sections 5.9(a) and 5.9(b) of the Plan, unless otherwise noted. Pursuant to Exhibit O,paragraph 4, of the GESA, acceptance of this California State-Subdivision Agreement is a requirement to be an Initial Participating Subdivision. 2. Definitions a) CA Participating Subdivision means a General Purpose Government that is a Participating Subdivision and also (a) a Plaintiff Subdivision; (b) a Primary Subdivision; and/or(c) a Non-Litigating Threshold Subdivision. For the avoidance of doubt, eligible CA Participating Subdivisions are those California Subdivisions listed in Exhibits C (excluding Litigating Special Districts), 1, and/or W to the GESA. b) CA Litigating Special District means a Litigating Special District located in California. For the avoidance of doubt, CA Litigating Special District does not include School Districts and certain Health and Hospital Special Districts that fall under a separate creditor group in the Purdue Bankruptcy Plan. 1 For purposes of clarity, use of the term "California" refers to the geographic territory of California and the state and its local governments therein. The term"State" or"State of California"refers to the State of California as a governmental unit. � 0 s