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Docusign Envelope ID: D1EF72EC-17B5-459A-93D1-E82ABEFBOE5C <br />3. General Terms <br />This agreement is subject to the requirements of the Hikma Settlement Agreement, as well as <br />applicable law, and the Hikma Settlement Agreement governs over any inconsistent provision of <br />this CA Hikma Allocation Agreement. Terms used in this CA Hikma Allocation Agreement have <br />the same meaning as in the Hikma Settlement Agreement unless otherwise defined herein. <br />Pursuant to Section VI(D)(1) of the Hikma Settlement Agreement, (a) all Settlement Fund <br />payments will be used for Opioid Remediation, except as allowed by Section VI(B)(2) of the <br />Hikma Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund <br />payment amounts will be used solely for future Opioid Remediation. <br />This Agreement does not apply to funds received by California' pursuant to Sections X or XV of <br />the Hikma Settlement Agreement, including payments for Private Attorney Fees, the Additional <br />Remediation Amount, and the Settlement Product Cash Conversion Amount.' <br />State Allocation <br />The Settlement Fund payments to California, pursuant to the Hikma Settlement Agreement, shall <br />be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% <br />to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the <br />Settlement Fund shall be combined pursuant to this CA Hilcma Allocation Agreement, and 15% <br />of that total shall be allocated to the State of California (the "State of California Allocation"), <br />70% to the California Abatement Accounts Fund ("CA Abatement Accounts Fund"), and 15% to <br />the California Subdivision Fund ("CA Subdivision Fund"), <br />A. State of California Allocation <br />Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by <br />the State for future Opioid Remediation. <br />B. CA Abatement Accounts Fund <br />i. Allocation of CA Abatement Accounts Funds <br />a) Seventy percent of the total Settlement Fund payments will be allocated to the CA <br />Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be <br />allocated based on the allocation model developed in connection with the proposed <br />' For purposes of clarity, use of the term "California" refers to the geographic territory of <br />California and the state and its local governments therein. The term "State" or "State of <br />California" refers to the State of California as a governmental unit. <br />'All Settlement Product Cash Conversion Amounts paid to California pursuant to Section XV of <br />the Hikma Settlement Agreement shall be allocated to the State and used by the State for future <br />Opioid Remediation. <br />Dr0 <br />2 p <br />