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Docusign Envelope ID: D1EF72EC-17B5-459A-93D1-E82ABEFBOE5C <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 Alvogen 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 the county is a CA Participating <br />Subdivision; provided, however, that if a city currently receives direct payment of its <br />share of funds in the National Opioids Settlement with Distributors Cencora, Inc. (f/k/a <br />AmerisourceBergenCorporation), Cardinal Health, Inc., and McKesson Corporation (the <br />"Distributors Settlement"), that city's Local Allocation amount will be paid directly to <br />the city. If a city later changes or has already changed its distribution election in the <br />Distributors Settlement, that change in election will apply here, provided that the change <br />in election is received by the settlement administrator at least 60 days prior to a Payment <br />Date. A Local Allocation share allocated to a city but paid to a county is not required to <br />be spent exclusively for abatement activities in that city, but will become part of the <br />county's share of the CA Abatement Accounts Funds, which will be used in accordance <br />with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in <br />accordance with Section 4.B.iii (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 Alvogen <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 />e) The State will receive the Local Allocation share of any payment to the Settlement Fund <br />that is attributable to a county or city that is eligible to become a CA Participating <br />Subdivision, but that has not, as of the date of that payment to the Settlement Fund, <br />become a Participating Subdivision. <br />f) Funds received by a CA Participating Subdivision, and not expended or encumbered <br />within five years of receipt and in accordance with the Alvogen Settlement Agreement <br />and this CA Alvogen Allocation Agreement shall be transferred to the State; provided <br />however, that CA Participating Subdivisions have seven years to expend or encumber CA <br />