Redlands City Council
October 7, 2025

CITY OF REDLANDS

CITY COUNCIL

A G E N D A
October 7, 2025

MARIO SAUCEDO
Mayor

MARC SHAW
Mayor Pro Tempore

PAUL BARICH
Council Member

EDDIE TEJEDA
Council Member

DENISE DAVIS
Council Member
***

JEANNE DONALDSON
City Clerk

PHILLIP DOOLITTLE
City Treasurer
CHARLES M. DUGGAN JR.

City Manager
YVETTE M. ABICH GARCIA
City Attorney
5:00 p.m. Open Public Meeting, Public Comment (Closed Session) 6:00 p.m. Open Session (Public Meeting)
* * *
City Council Chambers
Civic Center, 35 Cajon Street, Redlands, California
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A G E N D A
The following information comprises the agenda for the regular meeting of the City Council of the City of Redlands at the times noted below in the City Council Chambers, Civic Center, 35 Cajon Street, Redlands, California, on:

TUESDAY, OCTOBER 7, 2025
To join via Zoom on a computer, laptop, or smart device Please visit www.zoom.us
, click on Join a Meeting
Enter the Meeting ID 896 2789 8341, then run the Zoom launcher To join via Zoom with audio only (cell phone or landline):

Dial 1-877-853-5247
Enter the Meeting ID 896 2789 8341
Should the City lose connectivity on Zoom, we will halt the meeting until it can be restored. To check on the status of remote connectivity in the event of an outage, go to the City’s website at www.cityofredlands.org
or to the City’s Facebook page at @CityofRedlands or the Instagram page at @CityofRedlands_CityHall.

In the event the City cannot reestablish Zoom connectivity in a reasonable amount of time, the mayor will adjourn the meeting to a future date.

PLEASE NOTE: Anyone desiring to speak on an agendized item at this meeting may do so during the consideration of that item. Due to time constraints and the number of persons who may wish to give oral testimony, public comments will be limited to three (3) minutes.

To provide comment while participating from Council Chambers:

Although it is not required, speakers are encouraged to submit a "Speaker Sign Up Sheet" before the meeting is convened. Forms are available in the Office of the City Clerk or in Council Chambers.

After the meeting has convened, you may place the speaker form in the basket at the table along the north wall of the Chambers. Please do not disturb the City Clerk while the meeting is in progress.

To provide comment through Zoom (on a computer, laptop, or smart device):

Click the "Raise Hand" button and the moderator will unmute you when it is your turn to speak To provide comment via audio only (cell phone or landline):

Dial *9 to "Raise Hand". The moderator will identify you by your area code and last 3 numbers of your telephone number when it is your turn to speak.

PLEASE SILENCE CELL PHONES, PAGERS AND OTHER ELECTRONIC

COMMUNICATION DEVICES UPON ENTERING THE CHAMBERS
5:00 P.M.

A. Call City Council Meeting to Order.

B. Public Comment
(Any person wishing to provide public comment on a closed session matter may do so at this time.)
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C. Recess City Council Meeting to a Closed Session

1. Conference with legal counsel: Existing Litigation - Government Code §54956.9(d)(1) (City Attorney Garcia)
Three Cases:

Rogers, et al. v. City of Redlands, San Bernardino Superior Court, Case No.

CIVSB2126031
a.

Holzer v. City of Redlands, et al., San Bernardino Superior Court, Case No.

CIVSB2322787
b.

Miller & Associates, Inc. v. City of Redlands, San Bernardino Superior Court, Case No.

CIVSB2203755
c.
6:00
D. Reconvene City Council Meeting
E. Invocation by Mayor Saucedo
Pledge of Allegiance by McKinley Elementary Peer Mediators (In keeping with long-standing traditions of legislative invocations, this City Council meeting may include a brief invocation. Such invocations are not intended to proselytize or advance any one, or to disparage any other, faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation.) F. Closed Session Report
(No reportable action taken in closed session unless otherwise announced by the City Attorney at this time.)
G. Presentations

1. Redlands Pet Adoption (Redlands Animal Services)

2. Presentation of the National Fire Prevention Week Proclamation presented to Fire Chief Sessler and Fire Marshal Vince Anderson (Mayor Saucedo)

3. Presentation of the Hindu Heritage Month Proclamation presented to Roop Goyal, Human Relations Commissioner (Council Member Tejeda)
H. Public Comment - City Council
(At this time, the City Council will provide an opportunity for the public to address them on any subject, within the jurisdiction of the City Council, which is not already scheduled on this agenda. However, any matter that requires action will be referred to staff for a report and possible action at a subsequent meeting. Comments will be limited to three {3} minutes.) I. Consent Calendar
(The following routine items have been recommended for approval and will be acted upon simultaneously unless separate discussion and/or action is requested by a Councilmember or a member of the audience.)

1. Approve minutes of the regular meeting of September 16, 2025 (City Clerk Donaldson)

2. Authorize the issuance of a Proclamation declaring October 19-25, 2025 as Childhood Lead Poisoning Prevention Week (Mayor Saucedo)
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3. Authorize the issuance of a Proclamation in recognition of National Fire Prevention Week (Fire Chief Sessler)

4. Authorize the issuance of a Proclamation declaring the month of October 2025 Hindu Heritage Month in the City of Redlands (Council Member Tejeda and Mayor Saucedo)

5. Adopt Resolution No. 8721 approving the City of Redlands’ participation in the National Opioids Settlement with Purdue Pharma and Additional Settling Defendants (Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus) (Fire Chief Sessler)

6. Adopt Resolution No. 8718 for a new water service connection to the City of Redlands water distribution system at 1320 Malachite Avenue (APN: 0298-145-30-0000) in the unincorporated community of Mentone and adopt Resolution No. 8719 relating to Pre-Annexation Agreement No. 25-
01 (Development Services Director Desatnik)

7. Notice to conduct an annual review of approved Development Agreements in accordance with Chapter 18.220 of the Redlands Municipal Code (Development Services Director Desatnik)

8. Approve a First Amendment to the Agreement with CelPlan Technologies Incorporated for Video Management System Replacement (Management Services/Finance Director Garcia)

9. Authorize the annual maintenance payment to Motorola Solutions, Inc. in the amount of $118,649.92 for the Police Department's Spillman Computer Aided Dispatch/Records Management System (Management Services/Finance Director Garcia)

10. Approve a Professional Services Agreement with Bucknam Infrastructure Group, Inc. for an amount not-to-exceed $95,593 to update the Pavement Condition Evaluation and Pavement Management System, and determination that approval of the agreement is not subject to environmental review under section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act (Municipal Utilities and Engineering Director Harris)

11. Approve the Public Works Construction Contract with Metrocell Construction, Inc. for the Palo Alto Storm Drain Improvement Project for an amount not-to-exceed $83,093.80, approval of a $13,093.80 additional appropriation from the Storm Drain Fund (405) unassigned fund balance, and determine that the project is categorically exempt from environmental review pursuant to Section 15301(c) of the State's guidelines implementing the California Environmental Quality Act (Municipal Utilities and Engineering Director Harris)

12. Approve a Professional Services Agreement with Raftelis Financial Consultants, Inc. (Raftelis) to prepare a Water Utility and Wastewater Utility Rate Study and determine this action is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act (Municipal Utilities and Engineering Director Harris)

13. Approve the annual Purchase Order extension with USALCO for FY 25/26 for an amount not-to-exceed $150,000.00 and determine that approval of the purchase order extension is exempt from the California Environmental Quality Act pursuant to Section 15301 of the CEQA Guidelines (Municipal Utilities and Engineering Director Harris)

14. Adopt Resolution No. 8717 to implement STOP control on the eastbound Florida Street/17th Street intersection and determine that approval of the resolution is exempt from environmental review pursuant to Section 15301(c) of the State's guidelines implementing the California Environmental Quality Act (Municipal Utilities and Engineering Director Harris) Recycled Paper
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15. Approve the use of city resources and the request for in-kind support in the amount of $2,250.00 related to the Citrus Valley Band Tournament hosted by the Citrus Valley Music Boosters on October 11, 2025; approve temporary street closures related to the event; and determine that the event is categorically exempt from environmental review pursuant to Section 15311 (c) of the State's guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Crocker)

16. Approve the request to temporarily close San Bernardino Avenue for the REVEL Big Bear Marathon event hosted by the Brooksee Foundation on November 8, 2025; authorize the request for the sale and consumption of alcoholic beverage; and determine that the approval of the request is exempt from environmental review pursuant to Section 15311 of the state’s guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Crocker)

17. Approve the use of city resources and the request for in-kind support in the amount of $21,301.00 related to the Veterans Day Parade event hosted by the Redlands Hometown Heroes Foundation on November 11, 2025; approve temporary street closures related to the event and the sale and consumption of alcoholic beverages; and determine that the event is categorically exempt from environmental review pursuant to Section 15311 (c) of the State's guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Crocker)

18. Approve the use of city resources and the request for in-kind support of $900.00 related to the Resident Expo hosted by the Redlands Visitor Center on November 8, 2025; approve temporary street closures related to the event; and determine that the event is categorically exempt from environmental review pursuant to Section 15311(c) of the State's guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Crocker) J. Communications

1. Discussion and possible action relating to the cancellation of the January 6, 2026, regular meeting of the City Council (Mayor Saucedo)

2. Discussion and possible action relating to Paramedics Parcel Assessment and Analysis (Management Services/Finance Director Garcia)
K. Public Hearings

1. Public Hearing to consider Resolution Nos. 8722 and 8723, and determine that adoption of Resolution Nos. 8722 and 8723 are not subject to environmental review pursuant to Section 15061 (b)(3) of the California Environmental Quality Act (Mayor to declare the meeting open as a public hearing) Resolution No. 8722 - Calling a special election on the question of levying special taxes within the territory to be annexed to Community Facilities District No. 2004-1; and a.

Resolution No. 8723 - Declaring results of the special election of Annexation No. 28 to Community Facilities District No. 2004-1
b.
(Development Services Department Director Desatnik)

2. Public Hearing to consider Resolution Nos. 8724 and 8725, and determine that adoption of Resolution Nos. 8724 and 8725 are not subject to environmental review pursuant to Section 15061 (b)(3) of the California Environmental Quality Act (Mayor to declare the meeting open as a public hearing) Resolution No. 8724 - Calling a special election on the question of levying special taxes within the territory to be annexed to Community Facilities District No. 2004-1; and a.

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Resolution No. 8725 - Declaring results of the special election of Annexation No. 30 to Community Facilities District No. 2004-1
b.
(Development Services Department Director Desatnik)
L. New Business

1. Consideration of Ordinance No. 2990 authorizing an amendment to the contract between the City Council of the City of Redlands and the Board of Administration of the California Public Employees' Retirement System (Human Resources/Risk Management Director Meteau)

2. Consideration of a Non-Professional Services Agreement with Sentry Equipment for the Wastewater Treatment Plant Secondary Clarifier Rehabilitation Project for an amount not-to-exceed $529,337.60, and determination that the project is categorically exempt from environmental review pursuant to Section 15302(c) of the State's Guidelines for Implementing the California Environmental Quality Act (Municipal Utilities and Engineering Director Harris)

3. Consideration of a First Amendment to the Public Works Construction Contract with MCC Pipeline, Inc. for the 2023 CIP Water Pipeline and Highline Replacement Project to increase the Contract contingency amount by $480,000 and authorize an additional appropriation in the amount of $480,000 from Water Fund (Municipal Utilities and Engineering Director Harris)

4. Consideration of a Non-Professional Services Agreement with BrightView Landscape Services, Inc. for the Museum of Redlands Landscape Maintenance services for a two (2) year initial term and the option to extend the initial term by one (1) additional one-year term, on the same terms and conditions, for an amount not to exceed $125,182 and determine that approval of the agreement is exempt from the California Environmental Quality Act pursuant to Section 15301(h) of the CEQA Guidelines (Facilities and Community Services Director Crocker)

5. Consideration of an agreement with Southern California Lighting Inc., DBA The Christmas Kings for holiday decor and installation services for a one (1) year initial term and the option to extend the initial term by two (2) additional one-year terms for the downtown area in an amount not-to-exceed $440,400 and determine that the approval of the agreement is exempt from environmental review pursuant to Section 15301(c) of the State's guidelines implementing the California Environmental Quality Act (Facilities and Community Services Department Director Crocker)

6. Consideration of an agreement with Larry Jacinto Farming, Inc. for as-needed Citrus Grove Farming Services of City-owned citrus groves for an amount not-to-exceed $2,316,612 for a period of up to three years and determine that approval of the agreement is exempt from the California Environmental Quality Act pursuant to Section 15301(h) of the CEQA Guidelines (Facilities and Community Services Director Tabitha Crocker)

7. Adoption of Resolution No. 8727 confirming solid waste rates and ceasing transfers of solid waste rate revenues to the PARIS program (Assistant City Manager Boatman) M. Individual Council Member Announcements and/or Reports on Activities (No collective discussion or action.)

1. Individual Council Member Report on Activities for September 2025 from Mayor Pro Tem Shaw (City Clerk Donaldson)
N. Adjournment
The next regular meeting of the City Council will be held on October 21, 2025.

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If you challenge any proposed development entitlement listed on this agenda in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to this public hearing.

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact Goutam Dobey, of the Municipal Utilities and Engineering Department at (909) 798-7584 ext 2. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
(28 CFR 35.102-35.104 ADA Title II)
Any writings or documents distributed to a majority of the City Council regarding an open session agenda item less than 72 hours before this meeting are available for public inspection at the City Clerk's Office or at the dais of the City Clerk once the open session begins.

Staff reports or other written documentation relating to items referred to on the agenda are available at the A. K. Smiley Public Library, 125 West Vine Street, Redlands, California, and on the City’s website referenced below.

Regular meetings are televised live on Redlands TV Channel 3 (Spectrum) and Channel 35 (Frontier) and re-broadcast at 7:00 P.M. the following Wednesday, Friday and Sunday; and at 9:00 A.M. Thursday, Saturday and Monday. Meetings are also streamed live and archived for later viewing on demand on the City’s website at www.cityofredlands.org
. Agendas, staff reports and minutes of the City Council of the City of Redlands are available online at: www.cityofredlands.org.

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City Council Meeting I. 1.

DATE: 10/07/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Approve minutes of the regular meeting of September 16, 2025 (City Clerk Donaldson)
MOTION:

I move to approve the regular meeting minutes of September 16, 2025.

Attachments
9/16/25 Minutes
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MINUTES
Regular meetings of the City Council and the Redlands Financing Authority of the City of Redlands held in the Council Chambers, Civic Center, 35 Cajon Street, on September 16, 2025 at 5:00 P.M.

Present:  Mario Saucedo, Mayor
Marc Shaw, Mayor Pro Tempore
Paul Barich, Council Member
Eddie Tejeda, Council Member
Denise Davis, Council Member
Staff: Charles M. Duggan, Jr., City Manager; Yvette M. Abich Garcia, City Attorney; Jeanne Donaldson, City Clerk; Phillip Doolittle, City Treasurer; Janice McConnell, Assistant City Manager; Chris Boatman, Assistant City Manager; Carl Baker, Public Information Officer; Danielle Garcia, Management Services/Finance Director; Brian Desatnik, Development Services Director; John Harris, Municipal Utilities and Engineering Director; Rich Sessler, Fire Chief; Jeremy Floyd, Deputy Police Chief; Tabitha Crocker, Facilities and Community Services Director; Robert Meteau, HR/Risk Management Director
Mayor Saucedo called the meeting to order and explained that comments could be presented in-person, via Zoom, via cell phone or landline. He offered the public an opportunity to provide comment on any item on the agenda for the closed session.

PUBLIC COMMENT
None forthcoming
CLOSED SESSION
Conference with legal counsel: Existing Litigation - Government Code §54956.9(d)(1) (City Attorney Garcia)
One Case.

Holzer v. City of Redlands, et al., San Bernardino Superior Court, Case No.

CIVSB2322787
a.

Conference with real property negotiators - Government Code §54956.8 (Assistant City Manager Boatman)
Property:  APN: 0292-166-08-0000 (Grove School)
Agency
Negotiators:

Charles M. Duggan, City Manager; Christopher Boatman,
Assistant City Manager
Negotiating
Party:

Dr. Michelle Sweezey, Head of School, The Grove School
CC_RFA_September 16, 2025

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Under
Negotiation:

Terms of possible property transfer to The Grove School

Performance Evaluations of Public Employees – Government Code §54957(b)(1) Position: City Manager

RECONVENE CITY COUNCIL MEETING

The meeting reconvened at 6:00 P.M. with an invocation by Mayor Pro Tem Shaw. The Pledge of Allegiance to the American flag was conducted by Cram Elementary School Council.

CLOSED SESSION REPORT

City Attorney Garcia announced the following report related to Closed Session actions:

Item C.1 - No reportable action
Item C.2 - No reportable action, with Council Member Davis recusing herself from voting due to property ownership within 500 feet of the Grove School
Item C.3 - This item was not discussed during Closed Session

PRESENTATIONS

Adult Literacy Proclamation
Mayor Saucedo presented the Adult Literacy Proclamation to Don McCue, Director, A.K.

Smiley Library, Board Chair Bill Hatfield, Diane Shimota, Adult Literacy Coordinator, Katherine Gifford, Adult Tutor, and Katerina Biryukova, Adult Learner, recognizing September 28, 2025 as Adult Literacy Day. Ms. Biryukova recounted her personal experiences as an adult learner, and she shared how her life has been enriched through her participation in the program.

Proclamation Recognizing Eddie Chacon's 100th Birthday
Mayor Saucedo presented a proclamation recognizing Eddie Chacon's 100th Birthday, to his daughter, Karen Chacon. Standing beside Ms. Chacon were several members of Post 650, who enthusiastically supported the celebration, honoring Eddie Chacon's military service and his dedication to his family and the community.

Recognition Military Service Member Banner
Facilities and Community Services Director Crocker and Mayor Saucedo presented a Certificate of Appreciation, recognizing the military service of Army Sergeant First Class Jeffrey D.

Rendler, to his parents, Michele and Dan Rendler. Along with the Certificate, Director Crocker proudly presented the retired banner honoring Sergeant First Class Rendler, which was flown over the streets of Redlands from July 2015 to July 2025.

PUBLIC COMMENT
CC_RFA_September 16, 2025

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Freeway Signage - Udo Rollberg was concerned with signs he saw posted on the freeway overpass near Wabash Avenue, related to the recent killing of Charlie Kirk. He said the words were inflammatory. He condemned all forms of violence and urged everyone to be mindful about choosing rhetoric that could be divisive.

As clarification, City Manager Duggan pointed out the City does not have jurisdiction over freeway overpasses. Instead, freeway overpasses fall under the jurisdiction of Caltrans, and it is the City's practice to inform them immediately of anything posted on their property.

CONSENT CALENDAR

Minutes

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously approved, by roll call vote, the regular meeting of September 2, 2025.

Vote: 5 - 0 Passed

Proclamation September 28, 2025 Adult Literacy Day

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously approved, by roll call vote, the issuance of a proclamation declaring September 28, 2025 as Adult Literacy Day in the City of Redlands.

Vote: 5 - 0 Passed

Proclamation Recognizing Eddie Chacon's 100th Birthday

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously approved, by roll call vote, the issuance of a proclamation recognizing Eddie Chacon's 100th Birthday.

Vote: 5 - 0 Passed

Settlement Agreement Disclosure

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously approved, by roll call vote, the public disclosure of details of an Agreement of Settlement and General Release between the City of Redlands and Flynn Restaurant Group/Apple So Cal LLC (Flynn). Under the terms of the agreement, the City agrees to pay Flynn $55,000 to settle and dispose of disputes and controversies associated with a civil action pending in the San Bernardino Superior Court and entitled Flynn Restaurant Group/Apple So Cal LLC v. City of Redlands; San Bernardino County Superior Court Case No. CIVSB 2412340.

Vote: 5 - 0 Passed

Final Map Approval Tract No. 20528

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Final Map Approval Tract No. 20528

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously approved, by roll call vote, the Final Map for Tract No. 20528 submitted by Meritage Homes. The project site is located at 1160 W. Pioneer Avenue, on the north side of Pioneer Avenue and west side of Citrus Valley High School.

Vote: 5 - 0 Passed

Resolution No. 8714 Summary Street Vacation No. 197

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously adopted, by roll call vote, Resolution No. 8714 for Street Vacation No. 197, a request to vacate a small portion of Ramona Drive, consisting of approximately 77 linear feet (1,200 square-feet) of public right-of-way, located adjacent to the property at 1300 Prospect Drive. The subject portion of right-of-way is located at the southeast corner of 1300 Prospect Drive (APN: 0174-012-07-0000). This proposal qualifies for exemption from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines.

Vote: 5 - 0 Passed

Local Cooperative Fire Protection Agreement

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously approved, by roll call vote, the Local Cooperative Fire Protection Agreement between the City of Redlands and the U.S. Department of Agriculture, Forest Service, San Bernardino National Forest; and authorized the Mayor to execute the agreement on behalf of the City.

Vote: 5 - 0 Passed

Aerial Imagery Services Products Agreement Nearmap US, Inc

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously approved, by roll call vote, the Products Agreement with Nearmap US, Inc. to provide aerial imagery services for an amount not-to-exceed $72,213 for three years.

Vote: 5 - 0 Passed

Cal-ID/Identix Annual Payment

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously authorized, by roll call vote, the annual payment to San Bernardino County Sheriff's Department (Cal-ID/Identix) in the amount of $85,781.28 for Redlands Police Department's Fingerprint Identification Services.

Vote: 5 - 0 Passed

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Amending Liftoff LLC Microsoft Office 365 Software Licensing / Consulting Services

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously approved, by roll call vote, the Second Amendment to the Agreement with Liftoff LLC for Microsoft Office 365 software licensing and consulting services. The amendment would allow the City to reallocate unspent funds from the previous 4 years of the original agreement to Year 5 of the agreement, the final year, to account for the increased cost of software licenses and any additional licensing needs that may arise.

Vote: 5 - 0 Passed

Intergovernmental Agreement Burtronics Business Systems Print Services

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously approved, by roll call vote, the Intergovernmental agreement with Burtronics Business Systems for Managed Print Services for an initial term of three years for $175,000, with an option for a one-year extended term for a total amount not-to-exceed $235,000 for as-needed services.

Vote: 5 - 0 Passed

Annual Report PARIS Program

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously agreed, by roll call vote, to receive and file the Pavement Accelerated Repair Implementation Strategy (PARIS) Program annual report.

Vote: 5 - 0 Passed

PO Joint Utilities Laboratory Consumables and Supplies

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously determined, by roll call vote, that approval of a purchase order with Evantec Corporation is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act; and approved a purchase order with Evantec Corporation for Joint Utilities Laboratory Consumables and Supplies for a total amount not-to-exceed $83,000.

Vote: 5 - 0 Passed

Redlands Police Department Tow Services Agreements

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously approved, by roll call vote, the Redlands Police Department's Tow Services Agreements with Rotational Tow Applicants: Broncs Towing Inc., Pepe’s Towing Service, Wilson’s Towing, and Armada Towing for the Term 2025-2028.

Vote: 5 - 0 Passed

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ABC Grant Agreement

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously approved, by roll call vote, the agreement between the City and the Department of Alcoholic Beverage Control (ABC) for the grant provided by the Alcohol Policing Partnership (APP) program; approved the additional appropriation of $42,648 in grant funds to the Police Department; and authorized the Chief of Police to sign and execute any necessary agreements related to the grant.

Vote: 5 - 0 Passed

Juvenile Justice Crime Prevention Act Program Grant Award

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously accepted, by roll call vote, the grant award from the Juvenile Justice Crime Prevention Act Program; and authorized an additional appropriation of $40,000 to the Police Department.

Vote: 5 - 0 Passed

In-Kind Support Redlands Turkey Trot Event

On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously determined, by roll call vote, that the approval of the event is exempt from environmental review pursuant to Section 15311(c) of the State's guidelines implementing the California Environmental Quality Act; authorized the expenditure of city resources and in-kind support in the amount of $16,397.00 related to the Redlands Turkey Trot event hosted by Phoenix Hope International; and authorized the temporary street closures related to the event, scheduled to be held on November 27, 2025.

Vote: 5 - 0 Passed

COMMUNICATIONS

Ad Hoc Committee Lead Labor Negotiator Report & Recommendation

At the regular meeting of July 15, 2025, the City Council authorized the formation of an Ad Hoc Committee of the City Council and appointed Mayor Pro Tem Shaw and Council Member Davis to the committee. The purpose of the committee was to interview experienced labor negotiators and make a recommendation for a lead labor negotiator to the full Council at a regular meeting in September. Mayor Pro Tem Shaw and Council Member Davis each offered their perspectives regarding the interviews for the selection of a Lead Labor Negotiator, and they recommended John Bakhit of Atkinson, Andelson, Loya, Ruud & Romo to the full Council. Mayor Saucedo and Council Member Tejeda thanked them for their time and thoughtful decisions.

On motion of Council Member Eddie Tejeda, seconded by Council Member Denise Davis, the CC_RFA_September 16, 2025

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On motion of Council Member Eddie Tejeda, seconded by Council Member Denise Davis, the City Council unanimously agreed, by roll call vote, to direct staff to retain John Bakhit of Atkinson, Andelson, Loya, Ruud & Romo to serve as the City's lead labor negotiator for the City's upcoming contract negotiations with its bargaining units.

Vote: 5 - 0 Passed

Revenue Generating Ballot Measures for November 2026 Election

Council Member Tejeda opened the discussion, explaining his interest in pursuing new revenue sources to support City services, and in particular, he summarized three options for taxing distribution centers and warehouses. Two of these options would increase an existing tax, and the third would impose a new tax to support police and fire services. City Manager Duggan noted that staff conducted initial research to provide general information about each option.

Upon direction from the Council regarding which alternative they may wish to pursue, staff would provide a more detailed report at a future meeting.

As public comment, Dennis Bell was adamantly opposed to any increase in taxes and urged the Council to be better stewards of the revenue they currently receive. Bill Blankenship, of NAIOP IE, voiced concerns that increasing taxes on the logistics industry may not be the right approach, particularly since the intended use of the additional revenue was unclear. Instead, he recommended the City explore alternative financing methods, such as bonds.

Council Members discussed at length the merits of the various options, as presented.

Ultimately, they were not convinced that raising taxes was the best path forward at this time.

However, there was full consensus for staff to conduct an internal review of the existing paramedic parcel assessment, option #2, as shown in the staff report. Questions to be addressed and answered included: 1) Amount of revenue currently generated by the paramedic parcel assessment; 2) Current costs of the paramedic program; Is the program underfunded and, if so, by what amount; 3) Recommendations for closing the program's funding gap. It was agreed that staff would present the results at the next City Council meeting, scheduled for October 7, 2025.

NEW BUSINESS

Property Management Services Agreement for Project Home Key

Homeless Solution Manager David Rabindranath provided background on the Homeless Resource Services Agreement with Many Mansions for property management services for the Project Home Key located at 1675 Industrial Ave. Redlands, for an amount not-to-exceed $300,000 for a period of one year with two additional one-year renewal options for a total compensation not-to-exceed $900,000. In 2022, the City converted the former Good Nite Inn into 98 studio apartments to maintain the facility as a permanent supportive housing complex for the formerly unhoused population. In order to ensure the long-term success of the project, the City committed to providing annual financial support for the project for the first 7 years, totaling approximately $3.5 million dollars.

Under the proposed agreement, Many Mansions would be responsible for managing all aspects of the property, including leasing, rent collection, and maintenance, while ensuring compliance with local regulations and federal housing standards. Many Mansions will also administer tenant selection according to Project Homekey guidelines, prioritizing low-income households.

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tenant selection according to Project Homekey guidelines, prioritizing low-income households.

In addition, they would work to maintain positive tenant relations, with an emphasis on counseling and referrals, and would oversee both preventive maintenance and emergency repairs as needed. Assistant City Manager Boatman pointed out that no additional funds were required for this contract.

Representing Many Mansions, President Rick Schroeder and Executive Director Douglas Menges introduced themselves and offered an overview of the company and their mission.

Mayor Pro Tem Shaw asked how often the leadership team would visit the site, and in response, Mr. Schroeder confirmed the company's structure is designed for a direct and involved approach to property management.

On motion of Council Member Paul Barich, seconded by Council Member Denise Davis, the City Council unanimously determined, by roll call vote, that approval of the homeless resource services agreement with Many Mansions for property management services for Project Homekey is exempt from environmental review pursuant to Section 15061(b)(3) of the State’s guidelines implementing the California Environmental Quality Act; and approved the Agreement with Many Mansions for property management services for the Project Home Key located at 1675 Industrial Avenue, Redlands, in an amount not-to-exceed $300,000 for a period of one year with two additional one-year renewal options for a total compensation not-to-exceed $900,000.

Vote: 5 - 0 Passed

Resolution No. 8715 CDBG Funding 2025-2026

Development Services Director Desatnik presented the 2025-2026 Community Development Block Grant (CDBG) in the amount of $326,470 from the County of San Bernardino. On August 6, 2025, the City was notified of the 2025-2026 CDBG final funding award for six total projects that were approved by City Council on December 17, 2024. Five projects are community-based organizations and one is a Capital Improvement Project (CIP). The final award and amounts are as follows:

Redlands Sylvan Park Restroom/ADA Improvements - $279,770 FSA of Redlands - Housing and Food Program - $9,340
Boys and Girls Club - Family Strengthening Program - $9,340 YMCA of the East Valley - Legal Services - $9,340
Girls on the Run - Youth Fitness Program - $9,340
Partners Against Violence - Services for Victims of Violence - $9,340

On motion of Mayor Pro Tempore Marc Shaw, seconded by Council Member Denise Davis, the City Council unanimously accepted, by roll call vote, the 2025-2026 Community Development Block Grant funding award in the amount of $326,470; authorized an additional appropriation of $326,470 for the 2025-2026 CDBG fiscal year; and adopted Resolution No. 8715 authorizing the City Manager, or designee, to execute agreements, amendments and other related documents associated with the 2025-2026 CDBG Program Year.

Vote: 5 - 0 Passed

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Sole Source Procurement & MOU Apple Valley Fire Protection District

Fire Chief Sessler described a Sole Source Procurement and Memorandum of Understanding (MOU) between the City of Redlands and the Apple Valley Fire Protection District for outfitting services of Fire Department light fleet emergency vehicles for a not-to-exceed amount of $500,000 over the initial and extended terms, to expedite the installation of essential emergency equipment, addressing delays experienced with other vendors. By utilizing Apple Valley Fire Protection District's fleet service resources, the City can ensure a quicker, more efficient deployment of fully equipped emergency vehicles, enhancing operational readiness.

On motion of Mayor Pro Tempore Marc Shaw, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, a Sole Source Procurement via Memorandum of Understanding (MOU) between the City of Redlands and the Apple Valley Fire Protection District for Outfitting Services of Fire Department light fleet emergency vehicles for a not-to-exceed amount of $500,000 over the initial and extended terms.

Vote: 5 - 0 Passed

Resolution of Intention CALPERS Amendment

Human Resources/Risk Management Director Meteau reviewed the Resolution of Intention to approve an amendment to the contract between the Board of Administration of the California Public Employees' Retirement System and the City Council of the City of Redlands. The City is required to adopt a Resolution of Intention as the initial step in the formal amendment process. The proposed amendment seeks to remove the current language excluding hourly employees from CalPERS membership, which is currently embedded in the contract between the City and the CalPERS Board of Administration. It is CalPERS' recommendation to remove the exclusion and utilize Government Code section 20305.

Adoption of the Resolution of Intention initiates the amendment process. The next step is for the City to introduce and adopt an Ordinance authorizing the amendment to the contract, which then allows CalPERS to proceed with the preparation of the final amendment documents for consideration at a future City Council meeting.

On motion of Mayor Mario Saucedo, seconded by Council Member Paul Barich, the City Council unanimously adopted, by roll call vote, a Resolution of Intention to approve an amendment to the contract between the Board of Administration of the California Public Employees' Retirement System and the City Council of the City of Redlands to remove the hourly exclusion language from the contract.

Vote: 5 - 0 Passed

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Contract Award 2025 Alley Paving Improvement Project

Municipal Utilities and Engineering Director Harris highlighted a Public Works Contract with All American Building Services for the 2025 Alley Paving Improvement Project for an amount not-to-exceed $465,000.15. The Project will resurface four alleys and also remove and replace driveways and sidewalks where necessary, protect and/or replace existing utilities, trees, power poles, public and private improvements, survey monuments, construct drainage facilities, and restore all areas and improvements to pre-construction conditions.

On motion of Mayor Pro Tempore Marc Shaw, seconded by Council Member Paul Barich, the City Council unanimously determined, by roll call vote, that approval of the contract and construction of the 2025 Alley Paving Improvement Project is categorically exempt from environmental review in accordance with Section 15301(c) of the State's Guidelines implementing the California Environmental Quality Act; approved the 2025 Alley Paving Improvement Project plans and specifications, and awarded a Public Works Contract to All American Building Services for an amount not-to-exceed $465,000.15.

Vote: 5 - 0 Passed

COUNCIL MEMBER ANNOUNCEMENTS AND ACTIVITIES

Mayor Saucedo reported about his travels on the new Zero Emission Multiple Unit (ZEMU) train, which has just arrived and become operational. It is powered by a hybrid hydrogen fuel cell and battery system. He participated in the Mobility 21 2025 Southern California Transportation Summit, bringing together several regional agencies to build and grow partnerships for the future. He enjoyed the Smiley Library Live event highlighting Hispanic Heritage month.

Mayor Pro Tem Shaw and Council Member Barich
attended the Youth Hope Car Show at
Sylvan Park.

Council Member Tejeda
enjoyed the Smiley Library Live event highlighting Hispanic Heritage month.

Council Member Davis traveled on the new Zero Emission Multiple Unit (ZEMU) train, participated in an event with students from UC Riverside School of Public Policy, and she reminded everyone that applications for the upcoming session of the Redlands Youth Council are due by September 19, 2025.

ADJOURNMENT

Council Member Barich requested to close the meeting in honor of Charlie Kirk, who was murdered in a senseless shooting last week. There being no further action required, Mayor Saucedo adjourned meeting at 7:17 P.M. The next regular meeting of the City of Redlands City Council will be held on October 7, 2025.

REDLANDS FINANCING AUTHORITY
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REDLANDS FINANCING AUTHORITY

Chairman Saucedo called the meeting to order and offered anyone present the opportunity to address the Board on any subject, not already on the agenda, within the jurisdiction of the Redlands Financing Authority.

PUBLIC COMMENT
None forthcoming

Minutes

On motion of Board Member Barich, seconded by Board Member Tejeda, the minutes of the regular meeting of May 20, 2025, were unanimously approved, by roll call vote.

Vote:  5 - 0 Passed

ADJOURNMENT
There being no further business, the Redlands Financing Authority adjourned at 7:18 P.M. The next regular meeting of the Agency will be held on January 20, 2026.

CC_RFA_September 16, 2025

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City Council Meeting I. 2.

DATE: 10/07/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Authorize the issuance of a Proclamation declaring October 19-25, 2025 as Childhood Lead Poisoning Prevention Week (Mayor Saucedo)
MOTION:

I move to authorize the issuance of a Proclamation declaring October 19-25, 2025 as Childhood Lead Poisoning Prevention Week.

Attachments
Childhood Lead Poisoning Prevention Week 2025
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City Council Meeting I. 3.

DATE: 10/07/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Authorize the issuance of a Proclamation in recognition of National Fire Prevention Week (Fire Chief Sessler)
MOTION:

I move to authorize the issuance of a proclamation recognizing National Fire Prevention Week from October 5-11, 2025.

RECOMMENDATION:

Staff recommends that the City Council authorize the issuance of a proclamation declaring October 5–11, 2025, as Fire Prevention Week in the City of Redlands.

DISCUSSION:

The City of Redlands is committed to ensuring the safety and security of all residents and visitors. Fire remains a serious public safety concern both locally and nationally, and the growing presence of lithium-ion batteries in everyday household devices introduces unique fire hazards. The 2025 Fire Prevention Week theme, “Charge into Fire Safety", highlights three important calls to action:

Buy only listed electronic products;1.

Charge batteries safely; and2.

Recycle equipment responsibly.3.

Recognizing October 5–11, 2025, as Fire Prevention Week will help raise awareness about these safety practices and support community engagement in fire prevention efforts. As part of the City’s observance, the Redlands Fire Department will host its annual Open House & Public Safety Fair at Fire Station 261 (525 E. Citrus Avenue) on Saturday, October 11, from 10:00 A.M. to 1:00 P.M. This event will showcase public safety resources and promote fire prevention education.

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SUBMITTED BY:

Rich Sessler, Fire Chief

Attachments
Proclamation Fire Prevention Week
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PROCLAMATION
2025 Fire Prevention Week
WHEREAS, the City of Redlands is committed to ensuring the safety and security of all those living in and visiting our community; and
WHEREAS, fire remains a serious public safety concern both locally and nationally, and the presence of lithium-ion batteries in many household devices introduces unique fire risks; and WHEREAS, most of the electronics used in homes daily — including smartphones, tablets, laptops, power tools, e-bikes, e-scooters, and toys — are powered by lithium-ion batteries, which if misused, damaged, or improperly charged, can overheat, start a fire, or explode; and WHEREAS, the 2025 Fire Prevention Week™ theme, “Charge into Fire Safety™,” identifies three key calls to action: Buy only listed electronic products, charge batteries safely, and recycle equipment responsibly.

NOW, THEREFORE, BE IT RESOLVED that the City Council of City of Redlands does hereby recognize October 5–11, 2025, as National Fire Prevention Week in the City of Redlands and encourages all community members to practice fire safety throughout the year. Our community is also encouraged to attend the Redlands Fire Department Open House & Public Safety Fair at Fire Station 261 (525 E. Citrus Avenue) on October 11 from 10:00 A.M. to 1:00 P.M. to support the many public safety activities and efforts of City of Redlands emergency services.

IN WITNESS WHEREOF, we hereunto affix our signatures and the Official Seal of the City of Redlands on this 7rd day of October 2025.
______________________________
Mario Saucedo, Mayor

Attest:
______________________________
Jeanne Donaldson, City Clerk
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City Council Meeting I. 4.

DATE: 10/07/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Authorize the issuance of a Proclamation declaring the month of October 2025 Hindu Heritage Month in the City of Redlands (Council Member Tejeda and Mayor Saucedo)
MOTION:

I move to authorize the issuance of a Proclamation declaring the month of October 2025 Hindu Heritage Month in the City of Redlands.

Attachments
Hindu Heritage Month 2025
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City Council Meeting I. 5.

DATE: 10/07/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Adopt Resolution No. 8721 approving the City of Redlands’ participation in the National Opioids Settlement with Purdue Pharma and Additional Settling Defendants (Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus) (Fire Chief Sessler) MOTION(S):

If the City Council determines that staff’s recommendation is appropriate, the following motions are provided:

I move to adopt Resolution No. 8721 authorizing the City of Redlands’ participation in the National Opioids Settlement with Purdue Pharma and additional settling defendants: Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus; and

1. Authorizing the City Manager, or his designee, to execute any and all required participation documents through the Opioid Settlement Funds Portal, as this is the only method for execution and coordination of wet signatures would be impracticable.

2. RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 8721 approving the City of Redlands’ participation in the National Opioids Settlement with Purdue Pharma and additional settling defendants (Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydu), and authorizing the City Manager, or his designee, to execute all related documents necessary to effectuate participation in the settlement.

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DISCUSSION:

Background: As the City Council may be aware from television and press reports, there has been substantial litigation occurring on both the national level and within the State of California over the opioid epidemic. Nationwide, thousands of lawsuits have been filed by states, counties, cities, and tribes to recover monetary damages caused by the opioid crisis.

Nearly 80 California counties and cities have filed lawsuits, including the County of San Bernardino (“County”), which filed in July of 2018 and is participating in the Multi-District Litigation (“MDL”) out of federal court in Ohio. The cases all arise out of the plaintiffs’ allegations that the defendants, consisting of opioid manufacturers, distributors, and pharmacies, engaged in unlawful conduct causing the national opioid crisis.

In 2021, nationwide settlements were reached with major opioid distributors and manufacturers, including McKesson, Cardinal Health, AmerisourceBergen, Janssen Pharmaceuticals, and Johnson & Johnson. The City Council adopted Resolution No. 8285 in December 2021 to approve the City’s participation in those settlements, and later entered into an agreement with San Bernardino County to reallocate the City’s portion of the settlement proceeds to support countywide opioid remediation programs.

In late 2022, additional settlements were reached with other opioid distributors and pharmacies, including Allergan, CVS, Teva, Walgreens, and Walmart. The City opted in and received its first payment of $192,720.22, which was allocated to fund a Substance Use Navigator (“SUN”) within the Fire Department. This position supports residents by improving access to treatment for opioid use disorder.

Most recently, in March 2024, a settlement was reached with Kroger Co., to which the City opted in to maintain eligibility for its share of proceeds.

Discussion:

In 2019, Purdue Pharma, the manufacturer of OxyContin, filed for bankruptcy in response to thousands of lawsuits alleging the company and its owners, the Sackler family, contributed to the nationwide opioid crisis. The bankruptcy created a national settlement framework designed to fund opioid treatment, prevention, and recovery programs across the United States.

The State of California has negotiated a State-Subdivision Agreement establishing how Purdue Pharma settlement funds will be distributed among the State, counties, and cities. By signing on to this agreement, the City of Redlands becomes a “Participating Subdivision,” ensuring eligibility to directly receive its share of settlement funds. If the City does not participate, its allocation may Redlands Regular Meeting of 10-07-25
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share of settlement funds. If the City does not participate, its allocation may instead be directed to San Bernardino County or reduced overall.

In addition to the Purdue Pharma bankruptcy settlement, new national opioid settlements have recently been reached with eight additional defendants:

Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus. These settlements represent another major step forward in securing resources to address the opioid epidemic. The State of California has elected to participate in these settlements, thereby allowing California subdivisions, including the City of Redlands, to also participate. Importantly, a city or subdivision may participate in these new settlements even if it did not join prior national settlements.

Participation in these new settlements is consistent with the City’s past actions in joining prior settlements with Johnson & Johnson/Janssen, Cardinal Health, AmerisourceBergen, McKesson, Teva, Allergan, CVS, Walgreens, Walmart, and Kroger. By opting in, the City ensures access to its share of available funds, which must be used for approved opioid remediation purposes. Joining the Purdue Pharma and the additional eight settlements aligns with the City’s ongoing efforts to address substance abuse through the Fire Department’s Substance Use Navigator program and related opioid remediation initiatives.

Participation maximizes available funding and demonstrates the City’s continued commitment to combating the opioid epidemic in the Redlands community.

ALTERNATIVES:

The City Council may deny the adoption of Resolution No. 8721.

STRATEGIC PLAN:

Priority B - Public Health & Safety
SUBMITTED BY:

Rich Sessler, Fire Chief
RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
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PREPARED BY:

Bruni Reyes, Management Analyst
Fiscal Impact
Fiscal Year: FY 2025-26
Discussion:

Not applicable.

Attachments
Addiitional Settling Defendants Participation Docs
Resolution - Purdue-etc.

Purdue Pharma Settlement Agreement
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New National Opioids Settlement: Secondary Manufacturers Opioids Implementation Administrator
[email protected]
Redlands city, CA
Reference Number: CL-1763020
TO LOCAL POLITICAL SUBDIVISIONS:

THIS PACKAGE CONTAINS DOCUMENTATION TO PARTICIPATE IN THE NEW NATIONAL OPIOIDS SECONDARY MANUFACTURERS SETTLEMENTS. YOU MUST TAKE ACTION IN ORDER TO PARTICIPATE.

Deadline: October 8, 2025
A new proposed national opioids settlement (“ Secondary Manufacturers Settlements”) has been reached with eight opioids manufacturers: Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus (“Settling Defendants”). This Combined Participation Package is a follow-up communication to the Notice of National Opioids Settlement recently received electronically by your subdivision.

You are receiving this Combined Participation Package because California is participating in the Secondary Manufacturers Settlements.

If a state is not eligible to or does not participate in the settlement with a particular manufacturer, the subdivisions in that state are not eligible to participate in that manufacturer’s settlement.

This electronic envelope contains nine attachments:
 A Combined Participation Form for the Secondary Manufacturers Settlements that your subdivision is eligible to join, including a release of any claims.  California State-Subdivision Agreements for Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus (“California State-Subdivision Agreements”).

The Combined Participation Form and all eight California State-Subdivision Agreements must be executed, without alteration, and submitted on or before October 8, 2025 , in order for your subdivision to be considered for initial participation calculations and payment eligibility under the Secondary Manufacturers Settlement.

Based upon Combined Participation Forms received on or before October 8, 2025, the subdivision participation rate will be used to determine whether participation is sufficient for each settlement to move forward and whether a state earns its maximum potential payment under each settlement. If a settlement moves forward, your release will become effective. If a settlement does not move forward, that release will not become effective.

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Any subdivision that does not participate cannot directly share in the settlement funds, even if the subdivision’s state is settling and other participating subdivisions are sharing in settlement funds. Any subdivision that does not participate may also reduce the amount of money for programs to remediate the opioid crisis in its state.

Please note, a subdivision will not necessarily directly receive settlement funds by participating; decisions on how settlement funds will be allocated within a state are subject to intrastate agreements or state statutes.

You are encouraged to discuss the terms and benefits of the Secondary Manufacturers Settlements with your counsel, your Attorney General’s Office, and other contacts within your state. Many states are implementing and allocating funds for this new settlement the same as they did for the prior opioids settlements but states may choose to treat this settlement differently.

Information and documents regarding the Secondary Manufacturers Settlements , implementation in your state, and how funds will be allocated within your state can be found on the national settlement website at
https://nationalopioidsettlement.com/
and the California Attorney General’s website at https://oag.ca.gov/opioids. These websites will be supplemented as additional documents are created.

This Participation Packet is different than the participation packet you recently received from Rubris concerning a settlement with Purdue Pharma, L.P, and the Sackler Family. The Secondary Manufacturers Settlements discussed in this Participation Packet are different than the settlement with Purdue and the Sacklers, and you may participate in the Secondary Manufacturers Settlements regardless of whether you join the Purdue and Sackler settlement.

How to return signed forms:

There are three methods for returning the executed Combined Participation Form, the eight California State-Subdivision Agreements, and any supporting documentation to the Implementation Administrator:
(1)Electronic Signature via DocuSign: Executing the Combined Participation Form electronically through DocuSign will return the signed form to the Implementation Administrator and associate your form with your subdivision’s records. Electronic signature is the most efficient method for returning the Combined Participation Form, allowing for more timely participation and the potential to meet higher settlement payment thresholds, and is therefore strongly encouraged.
(2)Manual Signature returned via DocuSign: DocuSign allows forms to be downloaded, signed manually, then uploaded to DocuSign and returned automatically to the Implementation Administrator. Please be sure to complete all fields. As with electronic signature, returning a manually signed Combined Participation Form via DocuSign will associate your signed forms with your subdivision’s records.

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(3)Manual Signature returned via electronic mail: If your subdivision is unable to return an executed Combined Participation Form using DocuSign, the signed Combined Participation Form may be returned via electronic mail to [email protected]. Please include the name, state, and reference ID of your subdivision in the body of the email and use the subject line Combined Settlement Participation Form – [Subdivision Name, Subdivision State] – [Reference ID].

Detailed instructions on how to sign and return the Combined Participation Form and eight California State-Subdivision Agreements , including changing the authorized signer, can be found at https://nationalopioidsettlement.com/additional- settlements/. You may also contact [email protected].

The sign-on period for subdivisions ends on October 8, 2025.

If you have any questions about executing the Combined Participation Form, please contact your counsel, the Implementation Administrator at [email protected], or the California Attorney General’s Office at [email protected].

Thank you,

Secondary Manufacturers Settlements Implementation Administrator The Implementation Administrator is retained to provide the settlement notice required by the Secondary Manufacturers Settlements and to manage the collection of the Combined Participation Form.

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EXHIBIT K
Secondary Manufacturers’ Combined Subdivision Participation and Release Form (“Combined Participation Form”)
Governmental Entity: Redlands city State: CA
Authorized Official: /officialname_som/
Address 1: /address1_som/
Address 2: /address2_som/
City, State, Zip: /cit_sm/ /state_sm/ /zi_sm/ Phone: /phone_som/
Email: /email_som/
The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to each of the settlements which are listed in paragraph 1 below (each a “Secondary Manufacturer’s Settlement” and collectively, “the Secondary Manufacturers’ Settlements”), and acting through the undersigned authorized official, hereby elects to participate in each of the Secondary Manufacturers’ Settlements, release all Released Claims against all Released Entities in each of the Secondary Manufacturers’ Settlements, and agrees as follows.

1. The Participating Entity hereby elects to participate in each of the following Secondary Manufacturers’ Settlements as a Participating Entity:
a. Settlement Agreement for Alvogen, Inc. dated April 4, 2025. b. Settlement Agreement for Apotex Corp. dated April 4, 2025. c. Settlement Agreement for Amneal Pharmaceuticals LLC dated April 4, 2025. d. Settlement Agreement for Hikma Pharmaceuticals USA Inc. dated April 4, 2025. e. Settlement Agreement for Indivior Inc. dated April 4, 2025. f. Settlement Agreement for Viatris Inc. (“Mylan”) dated April 4, 2025. g. Settlement Agreement for Sun Pharmaceutical Industries, Inc. dated April 4, 2025. h. Settlement Agreement for Zydus Pharmaceuticals (USA) Inc. dated April 4, 2025.

2. The Governmental Entity is aware of and has reviewed each of the Secondary Manufacturers’ Settlements, understands that all capitalized terms not defined in this Combined Participation Form have the meanings defined in each of the Secondary Manufacturers’ Settlements, and agrees that by executing this Combined Participation Form, the Governmental Entity elects to participate in each of the Secondary Manufacturers’ Settlements and become a Participating Subdivision as provided in each of the Secondary Manufacturers’ Settlements.

3. The Governmental Entity shall promptly, and in any event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed against any Released Entity in each of the Secondary Manufacturers’ Settlements. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity K-1
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authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice for each of the manufacturers listed in paragraph 1 above substantially in the form found at https://nationalopioidsettlement.com/additional-settlements/.

4. The Governmental Entity agrees to the terms of each of the Secondary Manufacturers’ Settlements pertaining to Participating Subdivisions as defined therein.

5. By agreeing to the terms of each of the Secondary Manufacturers’ Settlements and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date.

6. The Governmental Entity agrees to use any monies it receives through each of the Secondary Manufacturers’ Settlements solely for the purposes provided therein.

7. The Governmental Entity submits to the jurisdiction of the court and agrees to follow the process for resolving any disputes related to each Secondary Manufacturer’s Settlement as described in each of the Secondary Manufacturers’ Settlements.1

8. The Governmental Entity has the right to enforce each of the Secondary Manufacturers’ Settlements as provided therein.

9. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in each of the Secondary Manufacturers’ Settlements, including without limitation all provisions related to release of any claims, 2 and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in his or her official capacity whether elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in each of the Secondary Manufacturers’ Settlements in any forum whatsoever. The releases provided for in each of the Secondary Manufacturers’ Settlements are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities in each of the Secondary Manufacturers’ Settlements the broadest possible bar against any liability relating in any way to Released 1 See Settlement Agreement for Alvogen, Inc. Section VII.F.2; Settlement Agreement for Apotex Corp. Section VII.F.2; Settlement Agreement for Amneal Pharmaceuticals LLC Section VII.F.2; Settlement Agreement for Hikma Pharmaceuticals USA Inc. Section VII.F.2; Settlement Agreement for Indivior Section VI.F.2; Settlement Agreement for Mylan Section VI.F.2; Settlement Agreement for Sun Pharmaceutical Industries, Inc. Section VII.F.2; Settlement Agreement for Zydus Pharmaceuticals (USA) Inc. Section VII.F.2. 2 See Settlement Agreement for Alvogen, Inc. Section XI; Settlement Agreement for Amneal Pharmaceuticals LLC Section X; Settlement Agreement for Apotex Corp. Section XI; Settlement Agreement for Hikma Pharmaceuticals USA Inc. Section XI; Settlement Agreement for Indivior Section X; Settlement Agreement for Mylan Section X; Settlement Agreement for Sun Pharmaceutical Industries, Inc. Section XI; Settlement Agreement for Zydus Pharmaceuticals (USA) Inc. Section XI.

K-2
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Claims and extend to the full extent of the power of the Governmental Entity to release claims. Each of the Secondary Manufacturers’ Settlements shall be a complete bar to any Released Claim against that manufacturer’s Released Entities.

10. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in each of the Secondary Manufacturers’ Settlements.

11. In connection with the releases provided for in each of the Secondary Manufacturers’ Settlements, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads:

General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her would have materially affected his or her settlement with the debtor or released party.

A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims in each of the Secondary Manufacturers’ Settlements, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in each of the Secondary Manufacturers’ Settlements.

12. The Governmental Entity understands and acknowledges that each of the Secondary Manufacturers’ Settlements is an independent agreement with its own terms and conditions. Nothing herein is intended to modify in any way the terms of any of the Secondary Manufacturers’ Settlements, to which Governmental Entity hereby agrees, aside from the exceptions in paragraph 13 below. To the extent this Combined Participation Form is interpreted differently from any of the Secondary Manufacturers’ Settlements in any respect, the individual Secondary Manufacturer’s Settlement controls.

13. For the avoidance of doubt, in the event that some but not all of the Secondary Manufacturers’ Settlements proceed past their respective Reference Dates, all releases and other commitments or obligations shall become void only as to those Secondary Manufacturers’ Settlements that fail to proceed past their Reference Dates. All releases and other commitments or obligations (including those contained in this Combined Participation Form) shall remain in full effect as to each Secondary Manufacturer’s Settlement that proceeds past its Reference Date, and this Combined Participation Form need not be modified, returned, or destroyed as long as any Secondary Manufacturer’s Settlement proceeds past its Reference Date.

K-3
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I have all necessary power and authorization to execute this Combined Participation Form on behalf of the Governmental Entity.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
K-4
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1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Alvogen Settlement

1. Introduction
Pursuant to the Alvogen Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Alvogen Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Alvogen Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Alvogen Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Section X of the Alvogen Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the Alvogen Settlement Agreement, acceptance of this CA Alvogen Allocation Agreement is a requirement to be an Initial Participating Subdivision.

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Alvogen Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California.
c) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on
behalf of the Subdivision and/or
through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Amneal Pharmaceuticals LLC; Apotex Corp., Hikma Pharmaceuticals USA Inc. f/k/a West-Ward Pharmaceuticals Corp.; Indivior Inc.; Viatris Inc. (“Mylan”); Sun Pharmaceutical Industries, Inc.; Zydus Pharmaceuticals (USA) Inc.; Kroger Co., Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., Cencora, Inc. f/k/a AmerisourceBergen Corporation, McKesson Corporation, Dr.

Richard S. Sackler, Beverly Sackler, Jonathan Sackler, David Sackler, Marianna Sackler, Theresa Sackler, Ilene Sackler Lefcourt, Dr. Kathe Sackler, and Mortimer D.A. Sackler) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

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2 3. General Terms
This agreement is subject to the requirements of the Alvogen Settlement Agreement, as well as applicable law, and the Alvogen Settlement Agreement governs over any inconsistent provision of this CA Alvogen Allocation Agreement. Terms used in this CA Alvogen Allocation Agreement have the same meaning as in the Alvogen Settlement Agreement unless otherwise defined herein.

Pursuant to Section VI(D)(1) of the Alvogen Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VI(B)(2) of the Alvogen Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

This Agreement does not apply to funds received by California1 pursuant to Section X of the Alvogen Settlement Agreement, including payments for Private Attorney Fees and the Additional Remediation Amount.

4. State Allocation
The Settlement Fund payments to California, pursuant to the Alvogen Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For
the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Alvogen Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).

A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the total Settlement Fund payments 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 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.

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3 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 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 Alvogen Settlement 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. If a city later changes or has already changed its distribution election in the Distributors
Settlement, that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. 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) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). 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 Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Alvogen Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, 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 Alvogen Settlement Agreement and this CA Alvogen Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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4 Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State.
ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Alvogen Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable
efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Alvogen Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Alvogen Settlement Agreement and this CA Alvogen Allocation Agreement, a county and any cities or towns within the county may Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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5 agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Alvogen Settlement Agreement and this CA Alvogen Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Alvogen Settlement Agreement or this CA Alvogen Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern.
c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved,
the State may bring a motion or action in the court
where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Alvogen Settlement Agreement or this CA Alvogen Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Alvogen Settlement Agreement and this CA Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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6 Alvogen Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid-related expenses, which may include fees and expenses related to litigation.

However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the settlement agreements with other Opioid Defendants.

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(X), of the Alvogen Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Alvogen Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use
requirements under Section VI.B.1 of the Alvogen Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Alvogen Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 2 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 2. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
///
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7 5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Alvogen Settlement Agreement and this CA Alvogen Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Alvogen Settlement Agreement and this CA Alvogen Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if
used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VI(B)(2) of the Alvogen Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Alvogen. e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Alvogen Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Alvogen Settlement Agreement, this CA Alvogen Allocation Agreement is not enforceable by any party other than the State and the CA Participating
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8 Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Alvogen Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Alvogen Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

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9 The undersigned, Redlands city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Alvogen Settlement is a requirement to be an Initial Participating Subdivision in the Alvogen Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Alvogen Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
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APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Alvogen Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change.

Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.

Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions.

Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one- hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.

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APPENDIX 1
1of15
100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2
.4237952%
City Alameda Alameda 0.069% 0
.0570162%
City Albany Alameda 0.013% 0
.0107768%
City Berkeley Alameda 0.152% 0
.1249656%
City Dublin Alameda 0.033% 0.040% 0
.0338810%
City Emeryville Alameda 0.023% 0
.0185765%
City Fremont Alameda 0.108% 0
.0888576%
City Hayward Alameda 0.117% 0
.0966218%
City Livermore Alameda 0.054% 0
.0446740%
City Newark Alameda 0.026% 0
.0217626%
City Oakland Alameda 0.486% 0.595% 0
.5055601%
City Piedmont Alameda 0.014% 0
.0114064%
City Pleasanton Alameda 0.067% 0
.0554547%
City San Leandro Alameda 0.039% 0
.0321267%
City Union City Alameda 0.043% 0
.0352484%
County Amador County Amador 0.226% 0.277% 0
.2349885%
County Butte County Butte 1.615% 1.975% 1
.6783178%
City Chico Butte 0.216% 0.264% 0
.2246499%
City Oroville Butte 0.079% 0
.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0
.2351644%
County Colusa County Colusa 0.059% 0
.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2 .1844585%
City Antioch Contra Costa 0.037% 0
.0301879%
City Brentwood Contra Costa 0.026% 0
.0215339%
City Clayton Contra Costa 0.002% 0
.0018060%
City Concord Contra Costa 0.055% 0
.0456676%
City Danville Contra Costa 0.010% 0
.0082255%
City El Cerrito Contra Costa 0.023% 0
.0189024%
City Hercules Contra Costa 0.010% 0
.0078273%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0
.0046030%
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APPENDIX 1
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City Martinez Contra Costa 0.012% 0
.0098593%
City Moraga Contra Costa 0.004% 0
.0031007%
City Oakley Contra Costa 0.010% 0
.0079416%
City Orinda Contra Costa 0.005% 0
.0038157%
City Pinole Contra Costa 0.013% 0
.0110909%
City Pittsburg Contra Costa 0.053% 0
.0436369%
City Pleasant Hill Contra Costa 0.013% 0
.0106309%
City Richmond Contra Costa 0.146% 0
.1201444%
City San Pablo Contra Costa 0.018% 0
.0148843%
City San Ramon Contra Costa 0.021% 0
.0176459%
City Walnut Creek Contra Costa 0.026% 0
.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0
.1189608%
County El Dorado County El Dorado 0.768% 0.939% 0
.7980034%
City Placerville El Dorado 0.015% 0
.0127642%
City South Lake Tahoe El Dorado 0.081% 0
.0665456%
County Fresno County Fresno 1.895% 2.318% 1
.9693410%
City Clovis Fresno 0.065% 0
.0536211%
City Coalinga Fresno 0.012% 0
.0098554%
City Fresno Fresno 0.397% 0
.3270605%
City Kerman Fresno 0.005% 0
.0042534%
City Kingsburg Fresno 0.008% 0
.0066167%
City Mendota Fresno 0.002% 0
.0019387%
City Orange Cove Fresno 0.004% 0
.0035607%
City Parlier Fresno 0.008% 0
.0069755%
City Reedley Fresno 0.012% 0
.0098804%
City Sanger Fresno 0.018% 0
.0146135%
City Selma Fresno 0.015% 0
.0127537%
County Glenn County Glenn 0.107% 0.131% 0
.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1
.0703185%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0
.0447660%
City Eureka Humboldt 0.117% 0.143% 0
.1216284%
City Fortuna Humboldt 0.032% 0
.0266837%
County Imperial County Imperial 0.258% 0.315% 0
.2679006%
City Brawley Imperial 0.011% 0
.0087986%
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APPENDIX 1
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City Calexico Imperial 0.019% 0
.0152799%
City El Centro Imperial 0.158% 0
.1302522%
City Imperial Imperial 0.006% 0
.0048791%
County Inyo County Inyo 0.073% 0.089% 0
.0754413%
County Kern County K
ern 2.517% 3.079% 2
.6159145%
City Arvin Kern 0.006% 0
.0046425%
City Bakersfield Kern 0.212% 0
.1747198%
City California City Kern 0.009% 0
.0070820%
City Delano K
ern 0.030% 0
.0249316%
City McFarland Kern 0.003% 0
.0025644%
City Ridgecrest Kern 0.015% 0
.0120938%
City Shafter Kern 0.013% 0
.0103417%
City Tehachapi Kern 0.009% 0
.0073580%
City Wasco Kern 0.008% 0
.0069861%
County Kings County Kings 0.293% 0
.2413469%
City Avenal Kings 0.007% 0
.0056335%
City Corcoran Kings 0.013% 0
.0107032%
City Hanford Kings 0.027% 0
.0226038%
City Lemoore Kings 0.016% 0
.0131900%
County Lake County Lake 0.795% 0
.6545389%
City Clearlake Lake 0.041% 0.050% 0
.0426253%
City Lakeport Lake 0.021% 0.026% 0
.0222964%
County Lassen County Lassen 0.319% 0.391% 0
.3320610%
City Susanville Lassen 0.027% 0
.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 1

4.4437559%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
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APPENDIX 1
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City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0
.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Canada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811 %
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APPENDIX 1
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City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0
.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
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City Whittier Los Angeles 0.032% 0.0260581%
County Madera County M
adera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County M
arin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County M
ariposa 0.084% 0.103% 0.0876131%
County Mendocino County M
endocino 0.439% 0.536% 0.4558394%
City Ukiah Mendocino 0.039% 0.0317153%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0
.5724262%
City Atwater Merced 0.024% 0
.0195846%
City Livingston Merced 0.006% 0
.0045873%
City Los Banos Merced 0.020% 0
.0165142%
City Merced Merced 0.061% 0
.0500762%
County Modoc County Modoc 0.065% 0.080% 0
.0678250%
County Mono County Mono 0.023% 0.029% 0
.0242606%
County Monterey County Monterey 0.908% 1.111% 0
.9437083%
City Greenfield Monterey 0.006% 0
.0050552%
City King City Monterey 0.005% 0
.0037355%
City Marina Monterey 0.017% 0
.0144098%
City Monterey Monterey 0.041% 0
.0336540%
City Pacific Grove Monterey 0.009% 0
.0074842%
City Salinas Monterey 0.094% 0
.0776576%
City Seaside Monterey 0.023% 0
.0191772%
City Soledad Monterey 0.007% 0
.0060870%
County Napa County Napa 0.288% 0.352% 0
.2994325%
City American Canyon Napa 0.017% 0
.0136869%
City Napa Napa 0.078% 0
.0642783%
County Nevada County Nevada 0.441% 0.539% 0
.4579827%
City Grass Valley Nevada 0.024% 0
.0197805%
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City Truckee Nevada 0.003% 0
.0023843%
County Orange County Orange 4.364% 5.339% 4
.5363576%
City Aliso Viejo Orange 0.014% 0
.0113841%
City Anaheim Orange 0.554% 0.678% 0
.5759282%
City Brea Orange 0.086% 0
.0708897%
City Buena Park Orange 0.087% 0
.0714352%
City Costa Mesa Orange 0.124% 0.152% 0
.1288366%
City Cypress Orange 0.033% 0
.0271937%
City Dana Point Orange 0.001% 0
.0005560%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0
.0455980%
City Fullerton Orange 0.137% 0.168% 0
.1425744%
City Garden Grove Orange 0.213% 0
.1752482%
City Huntington Beach Orange 0.247% 0.302% 0
.2568420%
City Irvine Orange 0.139% 0.170% 0
.1442350%
City Laguna Beach Orange 0.047% 0.058% 0
.0493043%
City Laguna Hills Orange 0.014% 0
.0115457%
City Laguna Niguel Orange 0.001% 0
.0007071%
City Laguna Woods Orange 0.001% 0
.0006546%
City La Habra Orange 0.060% 0.073% 0
.0621049%
City Lake Forest Orange 0.012% 0
.0101249%
City La Palma Orange 0.012% 0
.0095439%
City Los Alamitos Orange 0.008% 0
.0069190%
City Mission Viejo Orange 0.014% 0
.0117560%
City Newport Beach Orange 0.179% 0
.1470134%
City Orange Orange 0.150% 0
.1231320%
City Placentia Orange 0.029% 0.035% 0
.0298912%
City Rancho Santa Margarita Orange 0.001% 0
.0006296%
City San Clemente Orange 0.008% 0.010% 0
.0086083%
City San Juan Capistrano Orange 0.008% 0
.0065510%
City Santa Ana Orange 0.502% 0.614% 0
.5213866%
City Seal Beach Orange 0.020% 0
.0165891%
City Stanton Orange 0.035% 0
.0291955%
City Tustin Orange 0.073% 0
.0600341%
City Westminster Orange 0.104% 0.127% 0
.1082721%
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City Yorba Linda Orange 0.044% 0
.0362223%
County Placer County Placer 1.045% 1.278% 1
.0861002%
City Auburn Placer 0.017% 0
.0141114%
City Lincoln Placer 0.031% 0
.0255599%
City Rocklin Placer 0.076% 0
.0625485%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County P
lumas 0.205% 0.251% 0.2128729%
County Riverside County R
iverside 4.534% 5.547% 4.7128296%
City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
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County Sacramento County S
acramento 3.797% 4.645% 3.9465887%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
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City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San D
iego 5.706% 6.980% 5.9309748%
City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San F
rancisco 3.026% 3.702% 3.1457169%
County San Joaquin County San J
oaquin 1.680% 2.055% 1.7460399%
City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis O
bispo 0.816% 0.999% 0.8484126%
City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
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County San Mateo County San M
ateo 1.074% 1.313% 1.1159599%
City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa B
arbara 1.132% 1.385% 1.1768968%
City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa C
lara 2.404% 2.941% 2.4987553%
City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0
.0103338%
City Los Gatos Santa Clara 0.013% 0
.0103220%
City Milpitas Santa Clara 0.036% 0
.0298120%
City Morgan Hill Santa Clara 0.015% 0
.0124619%
City Mountain View Santa Clara 0.041% 0
.0334608%
City Palo Alto Santa Clara 0.039% 0
.0323080%
City San Jose Santa Clara 0.294% 0.360% 0
.3054960%
City Santa Clara Santa Clara 0.067% 0
.0549723%
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City Saratoga Santa Clara 0.004% 0
.0034161%
City Sunnyvale Santa Clara 0.053% 0
.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0
.8135396%
City Capitola Santa Cruz 0.020% 0
.0168191%
City Santa Cruz Santa Cruz 0.143% 0
.1180348%
City Scotts Valley Santa Cruz 0.015% 0
.0126525%
City Watsonville Santa Cruz 0.063% 0
.0520136%
County Shasta County Shasta 1.095% 1.339% 1
.1380191%
City Anderson Shasta 0.024% 0
.0198896%
City Redding Shasta 0.284% 0
.2334841%
City Shasta Lake Shasta 0.004% 0
.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0
.2373393%
County Solano County Solano 0.760% 0
.6260795%
City Benicia Solano 0.031% 0
.0253903%
City Dixon Solano 0.016% 0
.0130849%
City Fairfield Solano 0.109% 0
.0897317%
City Suisun City Solano 0.021% 0
.0176183%
City Vacaville Solano 0.119% 0
.0976497%
City Vallejo Solano 0.167% 0
.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1
.2661290%
City Healdsburg Sonoma 0.032% 0
.0266929%
City Petaluma Sonoma 0.081% 0
.0667507%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County S
tanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
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County Sutter County S
utter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County T
ehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County T
rinity 0.082% 0.101% 0.0855476%
County Tulare County T
ulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County T
uolumne 0.486% 0.594% 0.5047621%
County Ventura County V
entura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City O
xnard Ventura 0.156% 0.190% 0
.1617338%
City Port Hueneme Ventura 0.021% 0
.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0
.0702181%
City Santa Paula Ventura 0.014% 0
.0119072%
City Simi Valley Ventura 0.065% 0
.0533043%
City Thousand Oaks Ventura 0.022% 0
.0179902%
County Yolo County Yolo 0.357% 0.437% 0
.3713319%
City Davis Yolo 0.055% 0
.0451747%
City West Sacramento Yolo 0.066% 0
.0544321%
City Woodland Yolo 0.058% 0
.0477904%
County Yuba County Yuba 0.214% 0.262% 0
.2225679%
City Marysville Y
uba 0.014% 0
.0112079%
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APPENDIX 2

CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Alvogen Settlement and their counsel.

In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Alvogen Settlement Agreement.

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Alvogen Settlement Agreement and CA Alvogen Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Alvogen Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney
Fee Fund will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Alvogen Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Alvogen Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the Alvogen Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
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1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Amneal Settlement

1. Introduction
Pursuant to the Amneal Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Amneal Settlement Agreement”), including Section V and Exhibit O, the State of California proposes this agreement (the “CA Amneal Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections IV and V of the Amneal Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections IX or XIV of the Amneal Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the Amneal Settlement Agreement, acceptance of this CA Amneal Allocation Agreement is a requirement to be an Initial Participating Subdivision.

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Amneal Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Central California Alliance for Health, Health Plan of San Joaquin, Santa Barbara San Luis Obispo Regional Health Authority d/b/a Cencal Health, and Ventura County Medi-Cal Managed Care Commission d/b/a Gold Coast Health Plan.
c)
Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Amneal Pharmaceuticals LLC; Apotex Corp., Hikma Pharmaceuticals USA Inc. f/k/a West-Ward Pharmaceuticals Corp.; Indivior Inc.; Viatris Inc. (“Mylan”); Sun Pharmaceutical Industries, Inc.; Zydus Pharmaceuticals (USA) Inc.; Kroger Co., Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., Cencora, Inc. f/k/a AmerisourceBergen Corporation, McKesson Corporation, Dr.

Richard S. Sackler, Beverly Sackler, Jonathan Sackler, David Sackler, Marianna Sackler, Theresa Sackler, Ilene Sackler Lefcourt, Dr. Kathe Sackler, and Mortimer Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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2 D.A. Sackler) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

3. General Terms
This agreement is subject to the requirements of the Amneal Settlement Agreement, as well as applicable law, and the Amneal Settlement Agreement governs over any inconsistent provision of this CA Amneal Allocation Agreement. Terms used in this CA Amneal Allocation Agreement have the same meaning as in the Amneal Settlement Agreement unless otherwise defined herein.

Pursuant to Section V(D)(1) of the Amneal Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section V(B)(2) of the Amneal Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

This Agreement does not apply to funds received by California1 pursuant to Sections IX or XIV of the Amneal Settlement Agreement, including payments for Private Attorney Fees, the Additional Remediation Amount, and the Settlement Product Cash Conversion Amount.2

4. State
Allocation
The Settlement Fund payments to California, pursuant to the Amneal Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Amneal Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).

A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.
///
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. 2All Settlement Product Cash Conversion Amounts paid
to California pursuant to Section XIV of
the Amneal Settlement Agreement shall be allocated to the State and used by the State for future Opioid Remediation.

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3 B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the total Settlement Fund payments 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 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 Amneal Settlement 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. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. 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) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). 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 Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Amneal Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.

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4 e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, 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 Amneal Settlement Agreement and this CA Amneal Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State..
ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described
in the List of Opioid Remediation Uses, which is Exhibit E to the Amneal Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction;
(5) interventions
to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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5 will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Amneal Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Amneal Settlement Agreement and this CA Amneal Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Amneal Settlement Agreement and this CA Amneal Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Amneal Settlement Agreement or this CA Amneal Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern.
c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Amneal Settlement Agreement or this CA Amneal Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.

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6 e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Amneal Settlement Agreement and this CA Amneal Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid- related expenses, which may include fees and expenses related to litigation However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the settlement agreements with other Opioid Defendants.

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(X), of the Amneal Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Amneal Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section VI.B.1 of the Amneal Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Amneal Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 2 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 2. The California Office of the Attorney Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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7 General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.

5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the
Amneal Settlement Agreement and this
CA Amneal Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Amneal Settlement Agreement and this CA Amneal Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the Amneal Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Amneal. e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.
///
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8 6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Amneal Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Amneal Settlement Agreement, this CA Amneal Allocation Agreement is not enforceable by any party other than the State and the CA Participating Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Amneal Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Amneal Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

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The undersigned, Redlands city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Amneal Settlement is a requirement to be an Initial Participating Subdivision in the Amneal Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Amneal Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
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APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Amneal Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change.

Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.

Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions.

Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one- hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.

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APPENDIX 1
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100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2
.4237952%
City Alameda Alameda 0.069% 0
.0570162%
City Albany Alameda 0.013% 0
.0107768%
City Berkeley Alameda 0.152% 0
.1249656%
City Dublin Alameda 0.033% 0.040% 0
.0338810%
City Emeryville Alameda 0.023% 0
.0185765%
City Fremont Alameda 0.108% 0
.0888576%
City Hayward Alameda 0.117% 0
.0966218%
City Livermore Alameda 0.054% 0
.0446740%
City Newark Alameda 0.026% 0
.0217626%
City Oakland Alameda 0.486% 0.595% 0
.5055601%
City Piedmont Alameda 0.014% 0
.0114064%
City Pleasanton Alameda 0.067% 0
.0554547%
City San Leandro Alameda 0.039% 0
.0321267%
City Union City Alameda 0.043% 0
.0352484%
County Amador County Amador 0.226% 0.277% 0
.2349885%
County Butte County Butte 1.615% 1.975% 1
.6783178%
City Chico Butte 0.216% 0.264% 0
.2246499%
City Oroville Butte 0.079% 0
.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0
.2351644%
County Colusa County Colusa 0.059% 0
.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2 .1844585%
City Antioch Contra Costa 0.037% 0
.0301879%
City Brentwood Contra Costa 0.026% 0
.0215339%
City Clayton Contra Costa 0.002% 0
.0018060%
City Concord Contra Costa 0.055% 0
.0456676%
City Danville Contra Costa 0.010% 0
.0082255%
City El Cerrito Contra Costa 0.023% 0
.0189024%
City Hercules Contra Costa 0.010% 0
.0078273%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0
.0046030%
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City Martinez Contra Costa 0.012% 0
.0098593%
City Moraga Contra Costa 0.004% 0
.0031007%
City Oakley Contra Costa 0.010% 0
.0079416%
City Orinda Contra Costa 0.005% 0
.0038157%
City Pinole Contra Costa 0.013% 0
.0110909%
City Pittsburg Contra Costa 0.053% 0
.0436369%
City Pleasant Hill Contra Costa 0.013% 0
.0106309%
City Richmond Contra Costa 0.146% 0
.1201444%
City San Pablo Contra Costa 0.018% 0
.0148843%
City San Ramon Contra Costa 0.021% 0
.0176459%
City Walnut Creek Contra Costa 0.026% 0
.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0
.1189608%
County El Dorado County El Dorado 0.768% 0.939% 0
.7980034%
City Placerville El Dorado 0.015% 0
.0127642%
City South Lake Tahoe El Dorado 0.081% 0
.0665456%
County Fresno County Fresno 1.895% 2.318% 1
.9693410%
City Clovis Fresno 0.065% 0
.0536211%
City Coalinga Fresno 0.012% 0
.0098554%
City Fresno Fresno 0.397% 0
.3270605%
City Kerman Fresno 0.005% 0
.0042534%
City Kingsburg Fresno 0.008% 0
.0066167%
City Mendota Fresno 0.002% 0
.0019387%
City Orange Cove Fresno 0.004% 0
.0035607%
City Parlier Fresno 0.008% 0
.0069755%
City Reedley Fresno 0.012% 0
.0098804%
City Sanger Fresno 0.018% 0
.0146135%
City Selma Fresno 0.015% 0
.0127537%
County Glenn County Glenn 0.107% 0.131% 0
.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1
.0703185%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0
.0447660%
City Eureka Humboldt 0.117% 0.143% 0
.1216284%
City Fortuna Humboldt 0.032% 0
.0266837%
County Imperial County Imperial 0.258% 0.315% 0
.2679006%
City Brawley Imperial 0.011% 0
.0087986%
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APPENDIX 1
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City Calexico Imperial 0.019% 0
.0152799%
City El Centro Imperial 0.158% 0
.1302522%
City Imperial Imperial 0.006% 0
.0048791%
County Inyo County Inyo 0.073% 0.089% 0
.0754413%
County Kern County K
ern 2.517% 3.079% 2
.6159145%
City Arvin Kern 0.006% 0
.0046425%
City Bakersfield Kern 0.212% 0
.1747198%
City California City Kern 0.009% 0
.0070820%
City Delano K
ern 0.030% 0
.0249316%
City McFarland Kern 0.003% 0
.0025644%
City Ridgecrest Kern 0.015% 0
.0120938%
City Shafter Kern 0.013% 0
.0103417%
City Tehachapi Kern 0.009% 0
.0073580%
City Wasco Kern 0.008% 0
.0069861%
County Kings County Kings 0.293% 0
.2413469%
City Avenal Kings 0.007% 0
.0056335%
City Corcoran Kings 0.013% 0
.0107032%
City Hanford Kings 0.027% 0
.0226038%
City Lemoore Kings 0.016% 0
.0131900%
County Lake County Lake 0.795% 0
.6545389%
City Clearlake Lake 0.041% 0.050% 0
.0426253%
City Lakeport Lake 0.021% 0.026% 0
.0222964%
County Lassen County Lassen 0.319% 0.391% 0
.3320610%
City Susanville Lassen 0.027% 0
.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 1

4.4437559%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
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APPENDIX 1
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City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0
.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Canada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811 %
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APPENDIX 1
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City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0
.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
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City Whittier Los Angeles 0.032% 0.0260581%
County Madera County M
adera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County M
arin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County M
ariposa 0.084% 0.103% 0.0876131%
County Mendocino County M
endocino 0.439% 0.536% 0.4558394%
City Ukiah Mendocino 0.039% 0.0317153%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0
.5724262%
City Atwater Merced 0.024% 0
.0195846%
City Livingston Merced 0.006% 0
.0045873%
City Los Banos Merced 0.020% 0
.0165142%
City Merced Merced 0.061% 0
.0500762%
County Modoc County Modoc 0.065% 0.080% 0
.0678250%
County Mono County Mono 0.023% 0.029% 0
.0242606%
County Monterey County Monterey 0.908% 1.111% 0
.9437083%
City Greenfield Monterey 0.006% 0
.0050552%
City King City Monterey 0.005% 0
.0037355%
City Marina Monterey 0.017% 0
.0144098%
City Monterey Monterey 0.041% 0
.0336540%
City Pacific Grove Monterey 0.009% 0
.0074842%
City Salinas Monterey 0.094% 0
.0776576%
City Seaside Monterey 0.023% 0
.0191772%
City Soledad Monterey 0.007% 0
.0060870%
County Napa County Napa 0.288% 0.352% 0
.2994325%
City American Canyon Napa 0.017% 0
.0136869%
City Napa Napa 0.078% 0
.0642783%
County Nevada County Nevada 0.441% 0.539% 0
.4579827%
City Grass Valley Nevada 0.024% 0
.0197805%
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City Truckee Nevada 0.003% 0
.0023843%
County Orange County Orange 4.364% 5.339% 4
.5363576%
City Aliso Viejo Orange 0.014% 0
.0113841%
City Anaheim Orange 0.554% 0.678% 0
.5759282%
City Brea Orange 0.086% 0
.0708897%
City Buena Park Orange 0.087% 0
.0714352%
City Costa Mesa Orange 0.124% 0.152% 0
.1288366%
City Cypress Orange 0.033% 0
.0271937%
City Dana Point Orange 0.001% 0
.0005560%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0
.0455980%
City Fullerton Orange 0.137% 0.168% 0
.1425744%
City Garden Grove Orange 0.213% 0
.1752482%
City Huntington Beach Orange 0.247% 0.302% 0
.2568420%
City Irvine Orange 0.139% 0.170% 0
.1442350%
City Laguna Beach Orange 0.047% 0.058% 0
.0493043%
City Laguna Hills Orange 0.014% 0
.0115457%
City Laguna Niguel Orange 0.001% 0
.0007071%
City Laguna Woods Orange 0.001% 0
.0006546%
City La Habra Orange 0.060% 0.073% 0
.0621049%
City Lake Forest Orange 0.012% 0
.0101249%
City La Palma Orange 0.012% 0
.0095439%
City Los Alamitos Orange 0.008% 0
.0069190%
City Mission Viejo Orange 0.014% 0
.0117560%
City Newport Beach Orange 0.179% 0
.1470134%
City Orange Orange 0.150% 0
.1231320%
City Placentia Orange 0.029% 0.035% 0
.0298912%
City Rancho Santa Margarita Orange 0.001% 0
.0006296%
City San Clemente Orange 0.008% 0.010% 0
.0086083%
City San Juan Capistrano Orange 0.008% 0
.0065510%
City Santa Ana Orange 0.502% 0.614% 0
.5213866%
City Seal Beach Orange 0.020% 0
.0165891%
City Stanton Orange 0.035% 0
.0291955%
City Tustin Orange 0.073% 0
.0600341%
City Westminster Orange 0.104% 0.127% 0
.1082721%
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City Yorba Linda Orange 0.044% 0
.0362223%
County Placer County Placer 1.045% 1.278% 1
.0861002%
City Auburn Placer 0.017% 0
.0141114%
City Lincoln Placer 0.031% 0
.0255599%
City Rocklin Placer 0.076% 0
.0625485%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County P
lumas 0.205% 0.251% 0.2128729%
County Riverside County R
iverside 4.534% 5.547% 4.7128296%
City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
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County Sacramento County S
acramento 3.797% 4.645% 3.9465887%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
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City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San D
iego 5.706% 6.980% 5.9309748%
City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San F
rancisco 3.026% 3.702% 3.1457169%
County San Joaquin County San J
oaquin 1.680% 2.055% 1.7460399%
City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis O
bispo 0.816% 0.999% 0.8484126%
City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
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County San Mateo County San M
ateo 1.074% 1.313% 1.1159599%
City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa B
arbara 1.132% 1.385% 1.1768968%
City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa C
lara 2.404% 2.941% 2.4987553%
City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0
.0103338%
City Los Gatos Santa Clara 0.013% 0
.0103220%
City Milpitas Santa Clara 0.036% 0
.0298120%
City Morgan Hill Santa Clara 0.015% 0
.0124619%
City Mountain View Santa Clara 0.041% 0
.0334608%
City Palo Alto Santa Clara 0.039% 0
.0323080%
City San Jose Santa Clara 0.294% 0.360% 0
.3054960%
City Santa Clara Santa Clara 0.067% 0
.0549723%
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City Saratoga Santa Clara 0.004% 0
.0034161%
City Sunnyvale Santa Clara 0.053% 0
.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0
.8135396%
City Capitola Santa Cruz 0.020% 0
.0168191%
City Santa Cruz Santa Cruz 0.143% 0
.1180348%
City Scotts Valley Santa Cruz 0.015% 0
.0126525%
City Watsonville Santa Cruz 0.063% 0
.0520136%
County Shasta County Shasta 1.095% 1.339% 1
.1380191%
City Anderson Shasta 0.024% 0
.0198896%
City Redding Shasta 0.284% 0
.2334841%
City Shasta Lake Shasta 0.004% 0
.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0
.2373393%
County Solano County Solano 0.760% 0
.6260795%
City Benicia Solano 0.031% 0
.0253903%
City Dixon Solano 0.016% 0
.0130849%
City Fairfield Solano 0.109% 0
.0897317%
City Suisun City Solano 0.021% 0
.0176183%
City Vacaville Solano 0.119% 0
.0976497%
City Vallejo Solano 0.167% 0
.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1
.2661290%
City Healdsburg Sonoma 0.032% 0
.0266929%
City Petaluma Sonoma 0.081% 0
.0667507%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County S
tanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
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County Sutter County S
utter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County T
ehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County T
rinity 0.082% 0.101% 0.0855476%
County Tulare County T
ulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County T
uolumne 0.486% 0.594% 0.5047621%
County Ventura County V
entura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City O
xnard Ventura 0.156% 0.190% 0
.1617338%
City Port Hueneme Ventura 0.021% 0
.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0
.0702181%
City Santa Paula Ventura 0.014% 0
.0119072%
City Simi Valley Ventura 0.065% 0
.0533043%
City Thousand Oaks Ventura 0.022% 0
.0179902%
County Yolo County Yolo 0.357% 0.437% 0
.3713319%
City Davis Yolo 0.055% 0
.0451747%
City West Sacramento Yolo 0.066% 0
.0544321%
City Woodland Yolo 0.058% 0
.0477904%
County Yuba County Yuba 0.214% 0.262% 0
.2225679%
City Marysville Y
uba 0.014% 0
.0112079%
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APPENDIX 2

CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Amneal Settlement and their counsel.

In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Amneal Settlement Agreement.

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Amneal Settlement Agreement and CA Amneal Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Amneal Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund, will not
exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Amneal Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Amneal Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the Amneal Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
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1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Apotex Settlement

1. Introduction
Pursuant to the Apotex Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Apotex Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Apotex Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Apotex Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Section X of the Apotex Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the Apotex Settlement Agreement, acceptance of this CA Apotex Allocation Agreement is a requirement to be an Initial Participating Subdivision.

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Apotex Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California.
c) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Amneal Pharmaceuticals
LLC; Apotex Corp., Hikma Pharmaceuticals USA Inc. f/k/a West-Ward Pharmaceuticals Corp.; Indivior Inc.; Viatris Inc. (“Mylan”); Sun Pharmaceutical Industries, Inc.; Zydus Pharmaceuticals (USA) Inc.; Kroger Co., Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., Cencora, Inc. f/k/a AmerisourceBergen Corporation, McKesson Corporation, Dr.

Richard S. Sackler, Beverly Sackler, Jonathan Sackler, David Sackler, Marianna Sackler, Theresa Sackler, Ilene Sackler Lefcourt, Dr. Kathe Sackler, and Mortimer D.A. Sackler) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

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2 3. General Terms
This agreement is subject to the requirements of the Apotex Settlement Agreement, as well as applicable law, and the Apotex Settlement Agreement governs over any inconsistent provision of this CA Apotex Allocation Agreement. Terms used in this CA Apotex Allocation Agreement have the same meaning as in the Apotex Settlement Agreement unless otherwise defined herein.

Pursuant to Section VI(D)(1) of the Apotex Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VI(B)(2) of the Apotex Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

This Agreement does not apply to funds received by California1 pursuant to Section X of the Apotex Settlement Agreement, including payments for Private Attorney Fees and the Additional Remediation Amount.

4. State Allocation
The Settlement Fund payments to California, pursuant to the Apotex Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of
doubt, all funds allocated to California from
the Settlement Fund shall be combined pursuant to this CA Apotex Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).

A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the total Settlement Fund payments 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 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.

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3 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 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 Apotex Settlement 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. If a city later changes or has already changed its distribution election in the Distributors Settlement,
that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. 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) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). 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 Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Apotex Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, 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 Apotex Settlement Agreement and this CA Apotex Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State.

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4 ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Apotex Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Apotex Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector
entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Apotex Settlement Agreement and this CA Apotex Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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5 Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Apotex Settlement Agreement and this CA Apotex Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Apotex Settlement Agreement or this CA Apotex Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern
still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Apotex Settlement Agreement or this CA Apotex Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Apotex Settlement Agreement and this CA Apotex Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid- related expenses, which may include fees and expenses related to litigation.

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6 However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the settlement agreements with other Opioid Defendants.

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(X), of the Apotex Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Apotex Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section VI.B.1 of the Apotex Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Apotex Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 2 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and
its private counsel if it is in the form of Appendix 2. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
///
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7 5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Apotex Settlement Agreement and this CA Apotex Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Apotex Settlement Agreement and this CA Apotex Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including
if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VI(B)(2) of the Apotex Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Apotex. e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Apotex Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Apotex Settlement Agreement, this CA Apotex Allocation Agreement is not enforceable by any party other than the State and the CA Participating
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8 Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Apotex Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Apotex Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

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9 The undersigned, Redlands city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Apotex Settlement is a requirement to be an Initial Participating Subdivision in the Apotex Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Apotex Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
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APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Apotex Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change.

Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.

Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions.

Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one- hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.

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APPENDIX 1
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100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2
.4237952%
City Alameda Alameda 0.069% 0
.0570162%
City Albany Alameda 0.013% 0
.0107768%
City Berkeley Alameda 0.152% 0
.1249656%
City Dublin Alameda 0.033% 0.040% 0
.0338810%
City Emeryville Alameda 0.023% 0
.0185765%
City Fremont Alameda 0.108% 0
.0888576%
City Hayward Alameda 0.117% 0
.0966218%
City Livermore Alameda 0.054% 0
.0446740%
City Newark Alameda 0.026% 0
.0217626%
City Oakland Alameda 0.486% 0.595% 0
.5055601%
City Piedmont Alameda 0.014% 0
.0114064%
City Pleasanton Alameda 0.067% 0
.0554547%
City San Leandro Alameda 0.039% 0
.0321267%
City Union City Alameda 0.043% 0
.0352484%
County Amador County Amador 0.226% 0.277% 0
.2349885%
County Butte County Butte 1.615% 1.975% 1
.6783178%
City Chico Butte 0.216% 0.264% 0
.2246499%
City Oroville Butte 0.079% 0
.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0
.2351644%
County Colusa County Colusa 0.059% 0
.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2 .1844585%
City Antioch Contra Costa 0.037% 0
.0301879%
City Brentwood Contra Costa 0.026% 0
.0215339%
City Clayton Contra Costa 0.002% 0
.0018060%
City Concord Contra Costa 0.055% 0
.0456676%
City Danville Contra Costa 0.010% 0
.0082255%
City El Cerrito Contra Costa 0.023% 0
.0189024%
City Hercules Contra Costa 0.010% 0
.0078273%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0
.0046030%
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APPENDIX 1
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City Martinez Contra Costa 0.012% 0
.0098593%
City Moraga Contra Costa 0.004% 0
.0031007%
City Oakley Contra Costa 0.010% 0
.0079416%
City Orinda Contra Costa 0.005% 0
.0038157%
City Pinole Contra Costa 0.013% 0
.0110909%
City Pittsburg Contra Costa 0.053% 0
.0436369%
City Pleasant Hill Contra Costa 0.013% 0
.0106309%
City Richmond Contra Costa 0.146% 0
.1201444%
City San Pablo Contra Costa 0.018% 0
.0148843%
City San Ramon Contra Costa 0.021% 0
.0176459%
City Walnut Creek Contra Costa 0.026% 0
.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0
.1189608%
County El Dorado County El Dorado 0.768% 0.939% 0
.7980034%
City Placerville El Dorado 0.015% 0
.0127642%
City South Lake Tahoe El Dorado 0.081% 0
.0665456%
County Fresno County Fresno 1.895% 2.318% 1
.9693410%
City Clovis Fresno 0.065% 0
.0536211%
City Coalinga Fresno 0.012% 0
.0098554%
City Fresno Fresno 0.397% 0
.3270605%
City Kerman Fresno 0.005% 0
.0042534%
City Kingsburg Fresno 0.008% 0
.0066167%
City Mendota Fresno 0.002% 0
.0019387%
City Orange Cove Fresno 0.004% 0
.0035607%
City Parlier Fresno 0.008% 0
.0069755%
City Reedley Fresno 0.012% 0
.0098804%
City Sanger Fresno 0.018% 0
.0146135%
City Selma Fresno 0.015% 0
.0127537%
County Glenn County Glenn 0.107% 0.131% 0
.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1
.0703185%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0
.0447660%
City Eureka Humboldt 0.117% 0.143% 0
.1216284%
City Fortuna Humboldt 0.032% 0
.0266837%
County Imperial County Imperial 0.258% 0.315% 0
.2679006%
City Brawley Imperial 0.011% 0
.0087986%
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APPENDIX 1
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City Calexico Imperial 0.019% 0
.0152799%
City El Centro Imperial 0.158% 0
.1302522%
City Imperial Imperial 0.006% 0
.0048791%
County Inyo County Inyo 0.073% 0.089% 0
.0754413%
County Kern County K
ern 2.517% 3.079% 2
.6159145%
City Arvin Kern 0.006% 0
.0046425%
City Bakersfield Kern 0.212% 0
.1747198%
City California City Kern 0.009% 0
.0070820%
City Delano K
ern 0.030% 0
.0249316%
City McFarland Kern 0.003% 0
.0025644%
City Ridgecrest Kern 0.015% 0
.0120938%
City Shafter Kern 0.013% 0
.0103417%
City Tehachapi Kern 0.009% 0
.0073580%
City Wasco Kern 0.008% 0
.0069861%
County Kings County Kings 0.293% 0
.2413469%
City Avenal Kings 0.007% 0
.0056335%
City Corcoran Kings 0.013% 0
.0107032%
City Hanford Kings 0.027% 0
.0226038%
City Lemoore Kings 0.016% 0
.0131900%
County Lake County Lake 0.795% 0
.6545389%
City Clearlake Lake 0.041% 0.050% 0
.0426253%
City Lakeport Lake 0.021% 0.026% 0
.0222964%
County Lassen County Lassen 0.319% 0.391% 0
.3320610%
City Susanville Lassen 0.027% 0
.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 1

4.4437559%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
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APPENDIX 1
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City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0
.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Canada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811 %
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APPENDIX 1
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City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0
.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
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City Whittier Los Angeles 0.032% 0.0260581%
County Madera County M
adera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County M
arin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County M
ariposa 0.084% 0.103% 0.0876131%
County Mendocino County M
endocino 0.439% 0.536% 0.4558394%
City Ukiah Mendocino 0.039% 0.0317153%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0
.5724262%
City Atwater Merced 0.024% 0
.0195846%
City Livingston Merced 0.006% 0
.0045873%
City Los Banos Merced 0.020% 0
.0165142%
City Merced Merced 0.061% 0
.0500762%
County Modoc County Modoc 0.065% 0.080% 0
.0678250%
County Mono County Mono 0.023% 0.029% 0
.0242606%
County Monterey County Monterey 0.908% 1.111% 0
.9437083%
City Greenfield Monterey 0.006% 0
.0050552%
City King City Monterey 0.005% 0
.0037355%
City Marina Monterey 0.017% 0
.0144098%
City Monterey Monterey 0.041% 0
.0336540%
City Pacific Grove Monterey 0.009% 0
.0074842%
City Salinas Monterey 0.094% 0
.0776576%
City Seaside Monterey 0.023% 0
.0191772%
City Soledad Monterey 0.007% 0
.0060870%
County Napa County Napa 0.288% 0.352% 0
.2994325%
City American Canyon Napa 0.017% 0
.0136869%
City Napa Napa 0.078% 0
.0642783%
County Nevada County Nevada 0.441% 0.539% 0
.4579827%
City Grass Valley Nevada 0.024% 0
.0197805%
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City Truckee Nevada 0.003% 0
.0023843%
County Orange County Orange 4.364% 5.339% 4
.5363576%
City Aliso Viejo Orange 0.014% 0
.0113841%
City Anaheim Orange 0.554% 0.678% 0
.5759282%
City Brea Orange 0.086% 0
.0708897%
City Buena Park Orange 0.087% 0
.0714352%
City Costa Mesa Orange 0.124% 0.152% 0
.1288366%
City Cypress Orange 0.033% 0
.0271937%
City Dana Point Orange 0.001% 0
.0005560%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0
.0455980%
City Fullerton Orange 0.137% 0.168% 0
.1425744%
City Garden Grove Orange 0.213% 0
.1752482%
City Huntington Beach Orange 0.247% 0.302% 0
.2568420%
City Irvine Orange 0.139% 0.170% 0
.1442350%
City Laguna Beach Orange 0.047% 0.058% 0
.0493043%
City Laguna Hills Orange 0.014% 0
.0115457%
City Laguna Niguel Orange 0.001% 0
.0007071%
City Laguna Woods Orange 0.001% 0
.0006546%
City La Habra Orange 0.060% 0.073% 0
.0621049%
City Lake Forest Orange 0.012% 0
.0101249%
City La Palma Orange 0.012% 0
.0095439%
City Los Alamitos Orange 0.008% 0
.0069190%
City Mission Viejo Orange 0.014% 0
.0117560%
City Newport Beach Orange 0.179% 0
.1470134%
City Orange Orange 0.150% 0
.1231320%
City Placentia Orange 0.029% 0.035% 0
.0298912%
City Rancho Santa Margarita Orange 0.001% 0
.0006296%
City San Clemente Orange 0.008% 0.010% 0
.0086083%
City San Juan Capistrano Orange 0.008% 0
.0065510%
City Santa Ana Orange 0.502% 0.614% 0
.5213866%
City Seal Beach Orange 0.020% 0
.0165891%
City Stanton Orange 0.035% 0
.0291955%
City Tustin Orange 0.073% 0
.0600341%
City Westminster Orange 0.104% 0.127% 0
.1082721%
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City Yorba Linda Orange 0.044% 0
.0362223%
County Placer County Placer 1.045% 1.278% 1
.0861002%
City Auburn Placer 0.017% 0
.0141114%
City Lincoln Placer 0.031% 0
.0255599%
City Rocklin Placer 0.076% 0
.0625485%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County P
lumas 0.205% 0.251% 0.2128729%
County Riverside County R
iverside 4.534% 5.547% 4.7128296%
City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
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County Sacramento County S
acramento 3.797% 4.645% 3.9465887%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
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City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San D
iego 5.706% 6.980% 5.9309748%
City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San F
rancisco 3.026% 3.702% 3.1457169%
County San Joaquin County San J
oaquin 1.680% 2.055% 1.7460399%
City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis O
bispo 0.816% 0.999% 0.8484126%
City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
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County San Mateo County San M
ateo 1.074% 1.313% 1.1159599%
City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa B
arbara 1.132% 1.385% 1.1768968%
City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa C
lara 2.404% 2.941% 2.4987553%
City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0
.0103338%
City Los Gatos Santa Clara 0.013% 0
.0103220%
City Milpitas Santa Clara 0.036% 0
.0298120%
City Morgan Hill Santa Clara 0.015% 0
.0124619%
City Mountain View Santa Clara 0.041% 0
.0334608%
City Palo Alto Santa Clara 0.039% 0
.0323080%
City San Jose Santa Clara 0.294% 0.360% 0
.3054960%
City Santa Clara Santa Clara 0.067% 0
.0549723%
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City Saratoga Santa Clara 0.004% 0
.0034161%
City Sunnyvale Santa Clara 0.053% 0
.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0
.8135396%
City Capitola Santa Cruz 0.020% 0
.0168191%
City Santa Cruz Santa Cruz 0.143% 0
.1180348%
City Scotts Valley Santa Cruz 0.015% 0
.0126525%
City Watsonville Santa Cruz 0.063% 0
.0520136%
County Shasta County Shasta 1.095% 1.339% 1
.1380191%
City Anderson Shasta 0.024% 0
.0198896%
City Redding Shasta 0.284% 0
.2334841%
City Shasta Lake Shasta 0.004% 0
.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0
.2373393%
County Solano County Solano 0.760% 0
.6260795%
City Benicia Solano 0.031% 0
.0253903%
City Dixon Solano 0.016% 0
.0130849%
City Fairfield Solano 0.109% 0
.0897317%
City Suisun City Solano 0.021% 0
.0176183%
City Vacaville Solano 0.119% 0
.0976497%
City Vallejo Solano 0.167% 0
.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1
.2661290%
City Healdsburg Sonoma 0.032% 0
.0266929%
City Petaluma Sonoma 0.081% 0
.0667507%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County S
tanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
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County Sutter County S
utter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County T
ehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County T
rinity 0.082% 0.101% 0.0855476%
County Tulare County T
ulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County T
uolumne 0.486% 0.594% 0.5047621%
County Ventura County V
entura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City O
xnard Ventura 0.156% 0.190% 0
.1617338%
City Port Hueneme Ventura 0.021% 0
.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0
.0702181%
City Santa Paula Ventura 0.014% 0
.0119072%
City Simi Valley Ventura 0.065% 0
.0533043%
City Thousand Oaks Ventura 0.022% 0
.0179902%
County Yolo County Yolo 0.357% 0.437% 0
.3713319%
City Davis Yolo 0.055% 0
.0451747%
City West Sacramento Yolo 0.066% 0
.0544321%
City Woodland Yolo 0.058% 0
.0477904%
County Yuba County Yuba 0.214% 0.262% 0
.2225679%
City Marysville Y
uba 0.014% 0
.0112079%
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APPENDIX 2

CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Apotex Settlement and their counsel.

In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Apotex Settlement Agreement.

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Apotex Settlement Agreement and CA Apotex Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Apotex Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney
Fee Fund will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Apotex Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Apotex Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the Apotex Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
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1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Hikma Settlement

1. Introduction
Pursuant to the Hikma Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Hikma Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Hikma Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Hikma Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections X or XV of the Hikma Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the Hikma Settlement Agreement, acceptance of this CA Hikma Allocation Agreement is a requirement to be an Initial Participating Subdivision.

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Hikma Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California.
c) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Amneal Pharmaceuticals LLC; Apotex Corp., Hikma Pharmaceuticals USA Inc. f/k/a West-Ward Pharmaceuticals Corp.; Indivior Inc.; Viatris Inc. (“Mylan”); Sun Pharmaceutical Industries, Inc.; Zydus Pharmaceuticals (USA) Inc.; Kroger Co., Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., Cencora, Inc. f/k/a AmerisourceBergen Corporation, McKesson Corporation, Dr.

Richard S. Sackler, Beverly Sackler, Jonathan Sackler, David Sackler, Marianna Sackler, Theresa Sackler, Ilene Sackler Lefcourt, Dr. Kathe Sackler, and Mortimer D.A. Sackler) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

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2 3. General Terms
This agreement is subject to the requirements of the Hikma Settlement Agreement, as well as applicable law, and the Hikma Settlement Agreement governs over any inconsistent provision of this CA Hikma Allocation Agreement. Terms used in this CA Hikma Allocation Agreement have the same meaning as in the Hikma Settlement Agreement unless otherwise defined herein.

Pursuant to Section VI(D)(1) of the Hikma Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VI(B)(2) of the Hikma Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

This Agreement does not apply to funds received by California1 pursuant to Sections X or XV of the Hikma Settlement Agreement, including payments for Private Attorney Fees, the Additional Remediation Amount, and the Settlement Product Cash Conversion Amount.2

4. State Allocation
The Settlement Fund payments to California, pursuant to the Hikma Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Hikma Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California
Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).

A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the total Settlement Fund payments 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 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. 2All Settlement Product Cash Conversion Amounts paid to California pursuant to Section XV of the Hikma Settlement Agreement shall be allocated to the State and used by the State for future Opioid Remediation.

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3 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 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 Hikma Settlement 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. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. 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) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). 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 Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Hikma Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, 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 Hikma Settlement Agreement and this CA Hikma Allocation Agreement shall be transferred to the State; provided however, Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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4 that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State..
ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Hikma Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make
reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Hikma Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Hikma Settlement Agreement and this CA Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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5 Hikma Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Hikma Settlement Agreement and this CA Hikma Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Hikma Settlement Agreement or this CA Hikma Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Hikma Settlement Agreement or this CA Hikma Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Hikma Settlement Agreement and this CA Hikma Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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6 Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid- related expenses, which may include fees and expenses related to litigation However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the settlement agreements with other Opioid Defendants.

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(X), of the Hikma Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Hikma Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section VI.B.1 of the Hikma Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost
Funds created under the Hikma Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 2 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 2. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
///
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7 5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Hikma Settlement Agreement and this CA Hikma Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Hikma Settlement Agreement and this CA Hikma Allocation Agreement. Among other things, Plaintiff
Subdivisions using monies from the
CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the Hikma Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Hikma. e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Hikma Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Hikma Settlement Agreement, this CA Hikma Allocation Agreement is not enforceable by any party other than the State and the CA Participating
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8 Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Hikma Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Hikma Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

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9 The undersigned, Redlands city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Hikma Settlement is a requirement to be an Initial Participating Subdivision in the Hikma Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Hikma Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
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APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Hikma Settlement, whereas the percentages shown in the Abatement Percentage column should not change.

Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C.

Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.

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APPENDIX 1
1of15
100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2
.4237952%
City Alameda Alameda 0.069% 0
.0570162%
City Albany Alameda 0.013% 0
.0107768%
City Berkeley Alameda 0.152% 0
.1249656%
City Dublin Alameda 0.033% 0.040% 0
.0338810%
City Emeryville Alameda 0.023% 0
.0185765%
City Fremont Alameda 0.108% 0
.0888576%
City Hayward Alameda 0.117% 0
.0966218%
City Livermore Alameda 0.054% 0
.0446740%
City Newark Alameda 0.026% 0
.0217626%
City Oakland Alameda 0.486% 0.595% 0
.5055601%
City Piedmont Alameda 0.014% 0
.0114064%
City Pleasanton Alameda 0.067% 0
.0554547%
City San Leandro Alameda 0.039% 0
.0321267%
City Union City Alameda 0.043% 0
.0352484%
County Amador County Amador 0.226% 0.277% 0
.2349885%
County Butte County Butte 1.615% 1.975% 1
.6783178%
City Chico Butte 0.216% 0.264% 0
.2246499%
City Oroville Butte 0.079% 0
.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0
.2351644%
County Colusa County Colusa 0.059% 0
.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2 .1844585%
City Antioch Contra Costa 0.037% 0
.0301879%
City Brentwood Contra Costa 0.026% 0
.0215339%
City Clayton Contra Costa 0.002% 0
.0018060%
City Concord Contra Costa 0.055% 0
.0456676%
City Danville Contra Costa 0.010% 0
.0082255%
City El Cerrito Contra Costa 0.023% 0
.0189024%
City Hercules Contra Costa 0.010% 0
.0078273%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0
.0046030%
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APPENDIX 1
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City Martinez Contra Costa 0.012% 0
.0098593%
City Moraga Contra Costa 0.004% 0
.0031007%
City Oakley Contra Costa 0.010% 0
.0079416%
City Orinda Contra Costa 0.005% 0
.0038157%
City Pinole Contra Costa 0.013% 0
.0110909%
City Pittsburg Contra Costa 0.053% 0
.0436369%
City Pleasant Hill Contra Costa 0.013% 0
.0106309%
City Richmond Contra Costa 0.146% 0
.1201444%
City San Pablo Contra Costa 0.018% 0
.0148843%
City San Ramon Contra Costa 0.021% 0
.0176459%
City Walnut Creek Contra Costa 0.026% 0
.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0
.1189608%
County El Dorado County El Dorado 0.768% 0.939% 0
.7980034%
City Placerville El Dorado 0.015% 0
.0127642%
City South Lake Tahoe El Dorado 0.081% 0
.0665456%
County Fresno County Fresno 1.895% 2.318% 1
.9693410%
City Clovis Fresno 0.065% 0
.0536211%
City Coalinga Fresno 0.012% 0
.0098554%
City Fresno Fresno 0.397% 0
.3270605%
City Kerman Fresno 0.005% 0
.0042534%
City Kingsburg Fresno 0.008% 0
.0066167%
City Mendota Fresno 0.002% 0
.0019387%
City Orange Cove Fresno 0.004% 0
.0035607%
City Parlier Fresno 0.008% 0
.0069755%
City Reedley Fresno 0.012% 0
.0098804%
City Sanger Fresno 0.018% 0
.0146135%
City Selma Fresno 0.015% 0
.0127537%
County Glenn County Glenn 0.107% 0.131% 0
.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1
.0703185%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0
.0447660%
City Eureka Humboldt 0.117% 0.143% 0
.1216284%
City Fortuna Humboldt 0.032% 0
.0266837%
County Imperial County Imperial 0.258% 0.315% 0
.2679006%
City Brawley Imperial 0.011% 0
.0087986%
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APPENDIX 1
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City Calexico Imperial 0.019% 0
.0152799%
City El Centro Imperial 0.158% 0
.1302522%
City Imperial Imperial 0.006% 0
.0048791%
County Inyo County Inyo 0.073% 0.089% 0
.0754413%
County Kern County K
ern 2.517% 3.079% 2
.6159145%
City Arvin Kern 0.006% 0
.0046425%
City Bakersfield Kern 0.212% 0
.1747198%
City California City Kern 0.009% 0
.0070820%
City Delano K
ern 0.030% 0
.0249316%
City McFarland Kern 0.003% 0
.0025644%
City Ridgecrest Kern 0.015% 0
.0120938%
City Shafter Kern 0.013% 0
.0103417%
City Tehachapi Kern 0.009% 0
.0073580%
City Wasco Kern 0.008% 0
.0069861%
County Kings County Kings 0.293% 0
.2413469%
City Avenal Kings 0.007% 0
.0056335%
City Corcoran Kings 0.013% 0
.0107032%
City Hanford Kings 0.027% 0
.0226038%
City Lemoore Kings 0.016% 0
.0131900%
County Lake County Lake 0.795% 0
.6545389%
City Clearlake Lake 0.041% 0.050% 0
.0426253%
City Lakeport Lake 0.021% 0.026% 0
.0222964%
County Lassen County Lassen 0.319% 0.391% 0
.3320610%
City Susanville Lassen 0.027% 0
.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 1

4.4437559%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
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APPENDIX 1
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City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0
.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Canada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811 %
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APPENDIX 1
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City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0
.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
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City Whittier Los Angeles 0.032% 0.0260581%
County Madera County M
adera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County M
arin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County M
ariposa 0.084% 0.103% 0.0876131%
County Mendocino County M
endocino 0.439% 0.536% 0.4558394%
City Ukiah Mendocino 0.039% 0.0317153%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0
.5724262%
City Atwater Merced 0.024% 0
.0195846%
City Livingston Merced 0.006% 0
.0045873%
City Los Banos Merced 0.020% 0
.0165142%
City Merced Merced 0.061% 0
.0500762%
County Modoc County Modoc 0.065% 0.080% 0
.0678250%
County Mono County Mono 0.023% 0.029% 0
.0242606%
County Monterey County Monterey 0.908% 1.111% 0
.9437083%
City Greenfield Monterey 0.006% 0
.0050552%
City King City Monterey 0.005% 0
.0037355%
City Marina Monterey 0.017% 0
.0144098%
City Monterey Monterey 0.041% 0
.0336540%
City Pacific Grove Monterey 0.009% 0
.0074842%
City Salinas Monterey 0.094% 0
.0776576%
City Seaside Monterey 0.023% 0
.0191772%
City Soledad Monterey 0.007% 0
.0060870%
County Napa County Napa 0.288% 0.352% 0
.2994325%
City American Canyon Napa 0.017% 0
.0136869%
City Napa Napa 0.078% 0
.0642783%
County Nevada County Nevada 0.441% 0.539% 0
.4579827%
City Grass Valley Nevada 0.024% 0
.0197805%
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City Truckee Nevada 0.003% 0
.0023843%
County Orange County Orange 4.364% 5.339% 4
.5363576%
City Aliso Viejo Orange 0.014% 0
.0113841%
City Anaheim Orange 0.554% 0.678% 0
.5759282%
City Brea Orange 0.086% 0
.0708897%
City Buena Park Orange 0.087% 0
.0714352%
City Costa Mesa Orange 0.124% 0.152% 0
.1288366%
City Cypress Orange 0.033% 0
.0271937%
City Dana Point Orange 0.001% 0
.0005560%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0
.0455980%
City Fullerton Orange 0.137% 0.168% 0
.1425744%
City Garden Grove Orange 0.213% 0
.1752482%
City Huntington Beach Orange 0.247% 0.302% 0
.2568420%
City Irvine Orange 0.139% 0.170% 0
.1442350%
City Laguna Beach Orange 0.047% 0.058% 0
.0493043%
City Laguna Hills Orange 0.014% 0
.0115457%
City Laguna Niguel Orange 0.001% 0
.0007071%
City Laguna Woods Orange 0.001% 0
.0006546%
City La Habra Orange 0.060% 0.073% 0
.0621049%
City Lake Forest Orange 0.012% 0
.0101249%
City La Palma Orange 0.012% 0
.0095439%
City Los Alamitos Orange 0.008% 0
.0069190%
City Mission Viejo Orange 0.014% 0
.0117560%
City Newport Beach Orange 0.179% 0
.1470134%
City Orange Orange 0.150% 0
.1231320%
City Placentia Orange 0.029% 0.035% 0
.0298912%
City Rancho Santa Margarita Orange 0.001% 0
.0006296%
City San Clemente Orange 0.008% 0.010% 0
.0086083%
City San Juan Capistrano Orange 0.008% 0
.0065510%
City Santa Ana Orange 0.502% 0.614% 0
.5213866%
City Seal Beach Orange 0.020% 0
.0165891%
City Stanton Orange 0.035% 0
.0291955%
City Tustin Orange 0.073% 0
.0600341%
City Westminster Orange 0.104% 0.127% 0
.1082721%
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City Yorba Linda Orange 0.044% 0
.0362223%
County Placer County Placer 1.045% 1.278% 1
.0861002%
City Auburn Placer 0.017% 0
.0141114%
City Lincoln Placer 0.031% 0
.0255599%
City Rocklin Placer 0.076% 0
.0625485%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County P
lumas 0.205% 0.251% 0.2128729%
County Riverside County R
iverside 4.534% 5.547% 4.7128296%
City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
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County Sacramento County S
acramento 3.797% 4.645% 3.9465887%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
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City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San D
iego 5.706% 6.980% 5.9309748%
City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San F
rancisco 3.026% 3.702% 3.1457169%
County San Joaquin County San J
oaquin 1.680% 2.055% 1.7460399%
City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis O
bispo 0.816% 0.999% 0.8484126%
City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
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County San Mateo County San M
ateo 1.074% 1.313% 1.1159599%
City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa B
arbara 1.132% 1.385% 1.1768968%
City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa C
lara 2.404% 2.941% 2.4987553%
City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0
.0103338%
City Los Gatos Santa Clara 0.013% 0
.0103220%
City Milpitas Santa Clara 0.036% 0
.0298120%
City Morgan Hill Santa Clara 0.015% 0
.0124619%
City Mountain View Santa Clara 0.041% 0
.0334608%
City Palo Alto Santa Clara 0.039% 0
.0323080%
City San Jose Santa Clara 0.294% 0.360% 0
.3054960%
City Santa Clara Santa Clara 0.067% 0
.0549723%
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City Saratoga Santa Clara 0.004% 0
.0034161%
City Sunnyvale Santa Clara 0.053% 0
.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0
.8135396%
City Capitola Santa Cruz 0.020% 0
.0168191%
City Santa Cruz Santa Cruz 0.143% 0
.1180348%
City Scotts Valley Santa Cruz 0.015% 0
.0126525%
City Watsonville Santa Cruz 0.063% 0
.0520136%
County Shasta County Shasta 1.095% 1.339% 1
.1380191%
City Anderson Shasta 0.024% 0
.0198896%
City Redding Shasta 0.284% 0
.2334841%
City Shasta Lake Shasta 0.004% 0
.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0
.2373393%
County Solano County Solano 0.760% 0
.6260795%
City Benicia Solano 0.031% 0
.0253903%
City Dixon Solano 0.016% 0
.0130849%
City Fairfield Solano 0.109% 0
.0897317%
City Suisun City Solano 0.021% 0
.0176183%
City Vacaville Solano 0.119% 0
.0976497%
City Vallejo Solano 0.167% 0
.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1
.2661290%
City Healdsburg Sonoma 0.032% 0
.0266929%
City Petaluma Sonoma 0.081% 0
.0667507%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County S
tanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
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County Sutter County S
utter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County T
ehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County T
rinity 0.082% 0.101% 0.0855476%
County Tulare County T
ulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County T
uolumne 0.486% 0.594% 0.5047621%
County Ventura County V
entura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City O
xnard Ventura 0.156% 0.190% 0
.1617338%
City Port Hueneme Ventura 0.021% 0
.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0
.0702181%
City Santa Paula Ventura 0.014% 0
.0119072%
City Simi Valley Ventura 0.065% 0
.0533043%
City Thousand Oaks Ventura 0.022% 0
.0179902%
County Yolo County Yolo 0.357% 0.437% 0
.3713319%
City Davis Yolo 0.055% 0
.0451747%
City West Sacramento Yolo 0.066% 0
.0544321%
City Woodland Yolo 0.058% 0
.0477904%
County Yuba County Yuba 0.214% 0.262% 0
.2225679%
City Marysville Y
uba 0.014% 0
.0112079%
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APPENDIX 2

CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Hikma Settlement and their counsel.

In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Hikma Settlement Agreement.

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Hikma Settlement Agreement and CA Hikma Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Hikma Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out
of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund, will not
exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Hikma Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Hikma Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the Hikma Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
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1 Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Indivior Settlement

1. Introduction
Pursuant to the Indivior Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Indivior Settlement Agreement”), including Section V and Exhibit O, the State of California proposes this agreement (the “CA Indivior Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections IV and V of the Indivior Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections IX or XIV of the Indivior Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the Indivior Settlement Agreement, acceptance of this CA Indivior Allocation Agreement is a requirement to be an Initial Participating Subdivision.

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Indivior Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California.
c) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Amneal
Pharmaceuticals LLC; Apotex Corp., Hikma Pharmaceuticals USA Inc. f/k/a West-Ward Pharmaceuticals Corp.; Indivior Inc.; Viatris Inc. (“Mylan”); Sun Pharmaceutical Industries, Inc.; Zydus Pharmaceuticals (USA) Inc.; Kroger Co., Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., Cencora, Inc. f/k/a AmerisourceBergen Corporation, McKesson Corporation, Dr.

Richard S. Sackler, Beverly Sackler, Jonathan Sackler, David Sackler, Marianna Sackler, Theresa Sackler, Ilene Sackler Lefcourt, Dr. Kathe Sackler, and Mortimer D.A. Sackler) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

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2 3. General Terms
This agreement is subject to the requirements of the Indivior Settlement Agreement, as well as applicable law, and the Indivior Settlement Agreement governs over any inconsistent provision of this CA Indivior Allocation Agreement. Terms used in this CA Indivior Allocation Agreement have the same meaning as in the Indivior Settlement Agreement unless otherwise defined herein.

Pursuant to Section V(D)(1) of the Indivior Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section V(B)(2) of the Indivior Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

This Agreement does not apply to funds received by California1 pursuant to Sections IX or XIV of the Indivior Settlement Agreement, including payments for Private Attorney Fees, the Additional Remediation Amount, and the Settlement Product Cash Conversion Amount. 2

4. State Allocation
The Settlement Fund payments to California, pursuant to the Indivior Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of
doubt, all funds allocated to California from
the Settlement Fund shall be combined pursuant to this CA Indivior Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).

A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the total Settlement Fund payments 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 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. 2All Settlement Product Cash Conversion Amounts paid to California pursuant to Section XIV of the Indivior Settlement Agreement shall be allocated to the State and used by the State for future Opioid Remediation.

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3 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 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 Indivior Settlement 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. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. 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) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). 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 Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Indivior Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, 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 Indivior Settlement Agreement
and this CA Indivior Allocation Agreement shall be transferred to the State; provided Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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4 however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State..
ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Indivior Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and
efforts to expand access to naloxone for
opioid overdose reversals.
c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Indivior Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Indivior Settlement Agreement and this CA Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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5 Indivior Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Indivior Settlement Agreement and this CA Indivior Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Indivior Settlement Agreement or this CA Indivior Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern.
c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds
within one year of the request to
meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Indivior Settlement Agreement or this CA Indivior Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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6 subject to any limits imposed by the Indivior Settlement Agreement and this CA Indivior Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid- related expenses, which may include fees and expenses related to litigation However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the settlement agreements with other Opioid Defendants.

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(X), of the Indivior Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Indivior Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section V.B.1 of the Indivior Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Indivior Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 2 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 2. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
///
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7 5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Indivior Settlement Agreement and this CA Indivior Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Indivior Settlement Agreement and this CA Indivior Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’
fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the Indivior Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Indivior. e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Indivior Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Indivior Settlement Agreement, this CA Indivior Allocation Agreement is not enforceable by any party other than the State and the CA Participating Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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8 Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Indivior Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Indivior Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

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9 The undersigned, Redlands city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Indivior Settlement is a requirement to be an Initial Participating Subdivision in the Indivior Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds –Indivior Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
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APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Indivior Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change.

Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.

Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions.

Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one- hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.

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APPENDIX 1
1of15
100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2
.4237952%
City Alameda Alameda 0.069% 0
.0570162%
City Albany Alameda 0.013% 0
.0107768%
City Berkeley Alameda 0.152% 0
.1249656%
City Dublin Alameda 0.033% 0.040% 0
.0338810%
City Emeryville Alameda 0.023% 0
.0185765%
City Fremont Alameda 0.108% 0
.0888576%
City Hayward Alameda 0.117% 0
.0966218%
City Livermore Alameda 0.054% 0
.0446740%
City Newark Alameda 0.026% 0
.0217626%
City Oakland Alameda 0.486% 0.595% 0
.5055601%
City Piedmont Alameda 0.014% 0
.0114064%
City Pleasanton Alameda 0.067% 0
.0554547%
City San Leandro Alameda 0.039% 0
.0321267%
City Union City Alameda 0.043% 0
.0352484%
County Amador County Amador 0.226% 0.277% 0
.2349885%
County Butte County Butte 1.615% 1.975% 1
.6783178%
City Chico Butte 0.216% 0.264% 0
.2246499%
City Oroville Butte 0.079% 0
.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0
.2351644%
County Colusa County Colusa 0.059% 0
.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2 .1844585%
City Antioch Contra Costa 0.037% 0
.0301879%
City Brentwood Contra Costa 0.026% 0
.0215339%
City Clayton Contra Costa 0.002% 0
.0018060%
City Concord Contra Costa 0.055% 0
.0456676%
City Danville Contra Costa 0.010% 0
.0082255%
City El Cerrito Contra Costa 0.023% 0
.0189024%
City Hercules Contra Costa 0.010% 0
.0078273%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0
.0046030%
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City Martinez Contra Costa 0.012% 0
.0098593%
City Moraga Contra Costa 0.004% 0
.0031007%
City Oakley Contra Costa 0.010% 0
.0079416%
City Orinda Contra Costa 0.005% 0
.0038157%
City Pinole Contra Costa 0.013% 0
.0110909%
City Pittsburg Contra Costa 0.053% 0
.0436369%
City Pleasant Hill Contra Costa 0.013% 0
.0106309%
City Richmond Contra Costa 0.146% 0
.1201444%
City San Pablo Contra Costa 0.018% 0
.0148843%
City San Ramon Contra Costa 0.021% 0
.0176459%
City Walnut Creek Contra Costa 0.026% 0
.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0
.1189608%
County El Dorado County El Dorado 0.768% 0.939% 0
.7980034%
City Placerville El Dorado 0.015% 0
.0127642%
City South Lake Tahoe El Dorado 0.081% 0
.0665456%
County Fresno County Fresno 1.895% 2.318% 1
.9693410%
City Clovis Fresno 0.065% 0
.0536211%
City Coalinga Fresno 0.012% 0
.0098554%
City Fresno Fresno 0.397% 0
.3270605%
City Kerman Fresno 0.005% 0
.0042534%
City Kingsburg Fresno 0.008% 0
.0066167%
City Mendota Fresno 0.002% 0
.0019387%
City Orange Cove Fresno 0.004% 0
.0035607%
City Parlier Fresno 0.008% 0
.0069755%
City Reedley Fresno 0.012% 0
.0098804%
City Sanger Fresno 0.018% 0
.0146135%
City Selma Fresno 0.015% 0
.0127537%
County Glenn County Glenn 0.107% 0.131% 0
.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1
.0703185%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0
.0447660%
City Eureka Humboldt 0.117% 0.143% 0
.1216284%
City Fortuna Humboldt 0.032% 0
.0266837%
County Imperial County Imperial 0.258% 0.315% 0
.2679006%
City Brawley Imperial 0.011% 0
.0087986%
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APPENDIX 1
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City Calexico Imperial 0.019% 0
.0152799%
City El Centro Imperial 0.158% 0
.1302522%
City Imperial Imperial 0.006% 0
.0048791%
County Inyo County Inyo 0.073% 0.089% 0
.0754413%
County Kern County K
ern 2.517% 3.079% 2
.6159145%
City Arvin Kern 0.006% 0
.0046425%
City Bakersfield Kern 0.212% 0
.1747198%
City California City Kern 0.009% 0
.0070820%
City Delano K
ern 0.030% 0
.0249316%
City McFarland Kern 0.003% 0
.0025644%
City Ridgecrest Kern 0.015% 0
.0120938%
City Shafter Kern 0.013% 0
.0103417%
City Tehachapi Kern 0.009% 0
.0073580%
City Wasco Kern 0.008% 0
.0069861%
County Kings County Kings 0.293% 0
.2413469%
City Avenal Kings 0.007% 0
.0056335%
City Corcoran Kings 0.013% 0
.0107032%
City Hanford Kings 0.027% 0
.0226038%
City Lemoore Kings 0.016% 0
.0131900%
County Lake County Lake 0.795% 0
.6545389%
City Clearlake Lake 0.041% 0.050% 0
.0426253%
City Lakeport Lake 0.021% 0.026% 0
.0222964%
County Lassen County Lassen 0.319% 0.391% 0
.3320610%
City Susanville Lassen 0.027% 0
.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 1

4.4437559%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
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City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0
.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Canada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811 %
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City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0
.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
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City Whittier Los Angeles 0.032% 0.0260581%
County Madera County M
adera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County M
arin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County M
ariposa 0.084% 0.103% 0.0876131%
County Mendocino County M
endocino 0.439% 0.536% 0.4558394%
City Ukiah Mendocino 0.039% 0.0317153%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0
.5724262%
City Atwater Merced 0.024% 0
.0195846%
City Livingston Merced 0.006% 0
.0045873%
City Los Banos Merced 0.020% 0
.0165142%
City Merced Merced 0.061% 0
.0500762%
County Modoc County Modoc 0.065% 0.080% 0
.0678250%
County Mono County Mono 0.023% 0.029% 0
.0242606%
County Monterey County Monterey 0.908% 1.111% 0
.9437083%
City Greenfield Monterey 0.006% 0
.0050552%
City King City Monterey 0.005% 0
.0037355%
City Marina Monterey 0.017% 0
.0144098%
City Monterey Monterey 0.041% 0
.0336540%
City Pacific Grove Monterey 0.009% 0
.0074842%
City Salinas Monterey 0.094% 0
.0776576%
City Seaside Monterey 0.023% 0
.0191772%
City Soledad Monterey 0.007% 0
.0060870%
County Napa County Napa 0.288% 0.352% 0
.2994325%
City American Canyon Napa 0.017% 0
.0136869%
City Napa Napa 0.078% 0
.0642783%
County Nevada County Nevada 0.441% 0.539% 0
.4579827%
City Grass Valley Nevada 0.024% 0
.0197805%
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City Truckee Nevada 0.003% 0
.0023843%
County Orange County Orange 4.364% 5.339% 4
.5363576%
City Aliso Viejo Orange 0.014% 0
.0113841%
City Anaheim Orange 0.554% 0.678% 0
.5759282%
City Brea Orange 0.086% 0
.0708897%
City Buena Park Orange 0.087% 0
.0714352%
City Costa Mesa Orange 0.124% 0.152% 0
.1288366%
City Cypress Orange 0.033% 0
.0271937%
City Dana Point Orange 0.001% 0
.0005560%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0
.0455980%
City Fullerton Orange 0.137% 0.168% 0
.1425744%
City Garden Grove Orange 0.213% 0
.1752482%
City Huntington Beach Orange 0.247% 0.302% 0
.2568420%
City Irvine Orange 0.139% 0.170% 0
.1442350%
City Laguna Beach Orange 0.047% 0.058% 0
.0493043%
City Laguna Hills Orange 0.014% 0
.0115457%
City Laguna Niguel Orange 0.001% 0
.0007071%
City Laguna Woods Orange 0.001% 0
.0006546%
City La Habra Orange 0.060% 0.073% 0
.0621049%
City Lake Forest Orange 0.012% 0
.0101249%
City La Palma Orange 0.012% 0
.0095439%
City Los Alamitos Orange 0.008% 0
.0069190%
City Mission Viejo Orange 0.014% 0
.0117560%
City Newport Beach Orange 0.179% 0
.1470134%
City Orange Orange 0.150% 0
.1231320%
City Placentia Orange 0.029% 0.035% 0
.0298912%
City Rancho Santa Margarita Orange 0.001% 0
.0006296%
City San Clemente Orange 0.008% 0.010% 0
.0086083%
City San Juan Capistrano Orange 0.008% 0
.0065510%
City Santa Ana Orange 0.502% 0.614% 0
.5213866%
City Seal Beach Orange 0.020% 0
.0165891%
City Stanton Orange 0.035% 0
.0291955%
City Tustin Orange 0.073% 0
.0600341%
City Westminster Orange 0.104% 0.127% 0
.1082721%
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City Yorba Linda Orange 0.044% 0
.0362223%
County Placer County Placer 1.045% 1.278% 1
.0861002%
City Auburn Placer 0.017% 0
.0141114%
City Lincoln Placer 0.031% 0
.0255599%
City Rocklin Placer 0.076% 0
.0625485%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County P
lumas 0.205% 0.251% 0.2128729%
County Riverside County R
iverside 4.534% 5.547% 4.7128296%
City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
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County Sacramento County S
acramento 3.797% 4.645% 3.9465887%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
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City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San D
iego 5.706% 6.980% 5.9309748%
City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San F
rancisco 3.026% 3.702% 3.1457169%
County San Joaquin County San J
oaquin 1.680% 2.055% 1.7460399%
City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis O
bispo 0.816% 0.999% 0.8484126%
City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
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County San Mateo County San M
ateo 1.074% 1.313% 1.1159599%
City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa B
arbara 1.132% 1.385% 1.1768968%
City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa C
lara 2.404% 2.941% 2.4987553%
City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0
.0103338%
City Los Gatos Santa Clara 0.013% 0
.0103220%
City Milpitas Santa Clara 0.036% 0
.0298120%
City Morgan Hill Santa Clara 0.015% 0
.0124619%
City Mountain View Santa Clara 0.041% 0
.0334608%
City Palo Alto Santa Clara 0.039% 0
.0323080%
City San Jose Santa Clara 0.294% 0.360% 0
.3054960%
City Santa Clara Santa Clara 0.067% 0
.0549723%
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City Saratoga Santa Clara 0.004% 0
.0034161%
City Sunnyvale Santa Clara 0.053% 0
.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0
.8135396%
City Capitola Santa Cruz 0.020% 0
.0168191%
City Santa Cruz Santa Cruz 0.143% 0
.1180348%
City Scotts Valley Santa Cruz 0.015% 0
.0126525%
City Watsonville Santa Cruz 0.063% 0
.0520136%
County Shasta County Shasta 1.095% 1.339% 1
.1380191%
City Anderson Shasta 0.024% 0
.0198896%
City Redding Shasta 0.284% 0
.2334841%
City Shasta Lake Shasta 0.004% 0
.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0
.2373393%
County Solano County Solano 0.760% 0
.6260795%
City Benicia Solano 0.031% 0
.0253903%
City Dixon Solano 0.016% 0
.0130849%
City Fairfield Solano 0.109% 0
.0897317%
City Suisun City Solano 0.021% 0
.0176183%
City Vacaville Solano 0.119% 0
.0976497%
City Vallejo Solano 0.167% 0
.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1
.2661290%
City Healdsburg Sonoma 0.032% 0
.0266929%
City Petaluma Sonoma 0.081% 0
.0667507%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County S
tanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
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County Sutter County S
utter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County T
ehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County T
rinity 0.082% 0.101% 0.0855476%
County Tulare County T
ulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County T
uolumne 0.486% 0.594% 0.5047621%
County Ventura County V
entura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City O
xnard Ventura 0.156% 0.190% 0
.1617338%
City Port Hueneme Ventura 0.021% 0
.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0
.0702181%
City Santa Paula Ventura 0.014% 0
.0119072%
City Simi Valley Ventura 0.065% 0
.0533043%
City Thousand Oaks Ventura 0.022% 0
.0179902%
County Yolo County Yolo 0.357% 0.437% 0
.3713319%
City Davis Yolo 0.055% 0
.0451747%
City West Sacramento Yolo 0.066% 0
.0544321%
City Woodland Yolo 0.058% 0
.0477904%
County Yuba County Yuba 0.214% 0.262% 0
.2225679%
City Marysville Y
uba 0.014% 0
.0112079%
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APPENDIX 2

CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Indivior Settlement and their counsel.

In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Indivior Settlement Agreement.

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Indivior Settlement Agreement and CA Indivior Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Indivior Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund, will not
exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Indivior Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Indivior Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the Indivior Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
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1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Mylan Settlement

1. Introduction
Pursuant to the Mylan Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Mylan Settlement Agreement”), including Section V and Exhibit O, the State of California proposes this agreement (the “CA Mylan Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections IV and V of the Mylan Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Section IX of the Mylan Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the Mylan Settlement Agreement, acceptance of this CA Mylan Allocation Agreement is a requirement to be an Initial Participating Subdivision.

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Mylan Settlement Agreement. b) CA Litigating Special District
means a Litigating Special District located in
California. CA Litigating Special Districts include Susanville Elementary School District and Lassen County Office of Education.
c) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Amneal Pharmaceuticals LLC; Apotex Corp., Hikma Pharmaceuticals USA Inc. f/k/a West-Ward Pharmaceuticals Corp.; Indivior Inc.; Viatris Inc. (“Mylan”); Sun Pharmaceutical Industries, Inc.; Zydus Pharmaceuticals (USA) Inc.; Kroger Co., Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., Cencora, Inc. f/k/a AmerisourceBergen Corporation, McKesson Corporation, Dr.

Richard S. Sackler, Beverly Sackler, Jonathan Sackler, David Sackler, Marianna Sackler, Theresa Sackler, Ilene Sackler Lefcourt, Dr. Kathe Sackler, and Mortimer D.A. Sackler) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

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2 3. General Terms
This agreement is subject to the requirements of the Mylan Settlement Agreement, as well as applicable law, and the Mylan Settlement Agreement governs over any inconsistent provision of this CA Mylan Allocation Agreement. Terms used in this CA Mylan Allocation Agreement have the same meaning as in the Mylan Settlement Agreement unless otherwise defined herein.

Pursuant to Section V(D)(1) of the Mylan Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section V(B)(2) of the Mylan Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

This Agreement does not apply to funds received by California1 pursuant to Section IX of the Mylan Settlement Agreement, including payments for Private Attorney Fees and the Additional Remediation Amount.

4. State Allocation
The Settlement Fund payments to California, pursuant to the Mylan Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Mylan Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to
the California Subdivision Fund (“CA Subdivision Fund”).

A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the total Settlement Fund payments 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 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.

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3 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 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 Mylan Settlement 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. If a city later changes or has already changed its distribution election in the Distributors Settlement,
that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. 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) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). 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 Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Mylan Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, 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 Mylan Settlement Agreement and this CA Mylan Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement
Accounts Funds designated to support capital outlay projects before they must be transferred to the State.

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4 ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Mylan Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Mylan Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement
Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Mylan Settlement Agreement and this CA Mylan Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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5 Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Mylan Settlement Agreement and this CA Mylan Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Mylan Settlement Agreement or this CA Mylan Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to
meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Mylan Settlement Agreement or this CA Mylan Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Mylan Settlement Agreement and this CA Mylan Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid- related expenses, which may include fees and expenses related to litigation.

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6 However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the settlement agreements with other Opioid Defendants.

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(X), of the Mylan Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Mylan Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section V(B)(1) of the Mylan Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Mylan Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 2 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of
a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 2. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
///
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7 5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Mylan Settlement Agreement and this CA Mylan Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts
Funds and other Settlement Funds will
be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Mylan Settlement Agreement and this CA Mylan Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the Mylan Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Mylan. e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Mylan Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Mylan Settlement Agreement, this CA Mylan Allocation Agreement
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8 Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Mylan Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Mylan Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

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9 The undersigned, Redlands city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds –Mylan Settlement is a requirement to be an Initial Participating Subdivision in the Mylan Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Mylan Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
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APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Mylan Settlement, whereas the percentages shown in the Abatement Percentage column should not change.

Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C.

Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.

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APPENDIX 1
1of15
100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2
.4237952%
City Alameda Alameda 0.069% 0
.0570162%
City Albany Alameda 0.013% 0
.0107768%
City Berkeley Alameda 0.152% 0
.1249656%
City Dublin Alameda 0.033% 0.040% 0
.0338810%
City Emeryville Alameda 0.023% 0
.0185765%
City Fremont Alameda 0.108% 0
.0888576%
City Hayward Alameda 0.117% 0
.0966218%
City Livermore Alameda 0.054% 0
.0446740%
City Newark Alameda 0.026% 0
.0217626%
City Oakland Alameda 0.486% 0.595% 0
.5055601%
City Piedmont Alameda 0.014% 0
.0114064%
City Pleasanton Alameda 0.067% 0
.0554547%
City San Leandro Alameda 0.039% 0
.0321267%
City Union City Alameda 0.043% 0
.0352484%
County Amador County Amador 0.226% 0.277% 0
.2349885%
County Butte County Butte 1.615% 1.975% 1
.6783178%
City Chico Butte 0.216% 0.264% 0
.2246499%
City Oroville Butte 0.079% 0
.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0
.2351644%
County Colusa County Colusa 0.059% 0
.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2 .1844585%
City Antioch Contra Costa 0.037% 0
.0301879%
City Brentwood Contra Costa 0.026% 0
.0215339%
City Clayton Contra Costa 0.002% 0
.0018060%
City Concord Contra Costa 0.055% 0
.0456676%
City Danville Contra Costa 0.010% 0
.0082255%
City El Cerrito Contra Costa 0.023% 0
.0189024%
City Hercules Contra Costa 0.010% 0
.0078273%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0
.0046030%
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City Martinez Contra Costa 0.012% 0
.0098593%
City Moraga Contra Costa 0.004% 0
.0031007%
City Oakley Contra Costa 0.010% 0
.0079416%
City Orinda Contra Costa 0.005% 0
.0038157%
City Pinole Contra Costa 0.013% 0
.0110909%
City Pittsburg Contra Costa 0.053% 0
.0436369%
City Pleasant Hill Contra Costa 0.013% 0
.0106309%
City Richmond Contra Costa 0.146% 0
.1201444%
City San Pablo Contra Costa 0.018% 0
.0148843%
City San Ramon Contra Costa 0.021% 0
.0176459%
City Walnut Creek Contra Costa 0.026% 0
.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0
.1189608%
County El Dorado County El Dorado 0.768% 0.939% 0
.7980034%
City Placerville El Dorado 0.015% 0
.0127642%
City South Lake Tahoe El Dorado 0.081% 0
.0665456%
County Fresno County Fresno 1.895% 2.318% 1
.9693410%
City Clovis Fresno 0.065% 0
.0536211%
City Coalinga Fresno 0.012% 0
.0098554%
City Fresno Fresno 0.397% 0
.3270605%
City Kerman Fresno 0.005% 0
.0042534%
City Kingsburg Fresno 0.008% 0
.0066167%
City Mendota Fresno 0.002% 0
.0019387%
City Orange Cove Fresno 0.004% 0
.0035607%
City Parlier Fresno 0.008% 0
.0069755%
City Reedley Fresno 0.012% 0
.0098804%
City Sanger Fresno 0.018% 0
.0146135%
City Selma Fresno 0.015% 0
.0127537%
County Glenn County Glenn 0.107% 0.131% 0
.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1
.0703185%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0
.0447660%
City Eureka Humboldt 0.117% 0.143% 0
.1216284%
City Fortuna Humboldt 0.032% 0
.0266837%
County Imperial County Imperial 0.258% 0.315% 0
.2679006%
City Brawley Imperial 0.011% 0
.0087986%
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City Calexico Imperial 0.019% 0
.0152799%
City El Centro Imperial 0.158% 0
.1302522%
City Imperial Imperial 0.006% 0
.0048791%
County Inyo County Inyo 0.073% 0.089% 0
.0754413%
County Kern County K
ern 2.517% 3.079% 2
.6159145%
City Arvin Kern 0.006% 0
.0046425%
City Bakersfield Kern 0.212% 0
.1747198%
City California City Kern 0.009% 0
.0070820%
City Delano K
ern 0.030% 0
.0249316%
City McFarland Kern 0.003% 0
.0025644%
City Ridgecrest Kern 0.015% 0
.0120938%
City Shafter Kern 0.013% 0
.0103417%
City Tehachapi Kern 0.009% 0
.0073580%
City Wasco Kern 0.008% 0
.0069861%
County Kings County Kings 0.293% 0
.2413469%
City Avenal Kings 0.007% 0
.0056335%
City Corcoran Kings 0.013% 0
.0107032%
City Hanford Kings 0.027% 0
.0226038%
City Lemoore Kings 0.016% 0
.0131900%
County Lake County Lake 0.795% 0
.6545389%
City Clearlake Lake 0.041% 0.050% 0
.0426253%
City Lakeport Lake 0.021% 0.026% 0
.0222964%
County Lassen County Lassen 0.319% 0.391% 0
.3320610%
City Susanville Lassen 0.027% 0
.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 1

4.4437559%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
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City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0
.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Canada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811 %
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City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0
.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
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City Whittier Los Angeles 0.032% 0.0260581%
County Madera County M
adera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County M
arin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County M
ariposa 0.084% 0.103% 0.0876131%
County Mendocino County M
endocino 0.439% 0.536% 0.4558394%
City Ukiah Mendocino 0.039% 0.0317153%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0
.5724262%
City Atwater Merced 0.024% 0
.0195846%
City Livingston Merced 0.006% 0
.0045873%
City Los Banos Merced 0.020% 0
.0165142%
City Merced Merced 0.061% 0
.0500762%
County Modoc County Modoc 0.065% 0.080% 0
.0678250%
County Mono County Mono 0.023% 0.029% 0
.0242606%
County Monterey County Monterey 0.908% 1.111% 0
.9437083%
City Greenfield Monterey 0.006% 0
.0050552%
City King City Monterey 0.005% 0
.0037355%
City Marina Monterey 0.017% 0
.0144098%
City Monterey Monterey 0.041% 0
.0336540%
City Pacific Grove Monterey 0.009% 0
.0074842%
City Salinas Monterey 0.094% 0
.0776576%
City Seaside Monterey 0.023% 0
.0191772%
City Soledad Monterey 0.007% 0
.0060870%
County Napa County Napa 0.288% 0.352% 0
.2994325%
City American Canyon Napa 0.017% 0
.0136869%
City Napa Napa 0.078% 0
.0642783%
County Nevada County Nevada 0.441% 0.539% 0
.4579827%
City Grass Valley Nevada 0.024% 0
.0197805%
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City Truckee Nevada 0.003% 0
.0023843%
County Orange County Orange 4.364% 5.339% 4
.5363576%
City Aliso Viejo Orange 0.014% 0
.0113841%
City Anaheim Orange 0.554% 0.678% 0
.5759282%
City Brea Orange 0.086% 0
.0708897%
City Buena Park Orange 0.087% 0
.0714352%
City Costa Mesa Orange 0.124% 0.152% 0
.1288366%
City Cypress Orange 0.033% 0
.0271937%
City Dana Point Orange 0.001% 0
.0005560%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0
.0455980%
City Fullerton Orange 0.137% 0.168% 0
.1425744%
City Garden Grove Orange 0.213% 0
.1752482%
City Huntington Beach Orange 0.247% 0.302% 0
.2568420%
City Irvine Orange 0.139% 0.170% 0
.1442350%
City Laguna Beach Orange 0.047% 0.058% 0
.0493043%
City Laguna Hills Orange 0.014% 0
.0115457%
City Laguna Niguel Orange 0.001% 0
.0007071%
City Laguna Woods Orange 0.001% 0
.0006546%
City La Habra Orange 0.060% 0.073% 0
.0621049%
City Lake Forest Orange 0.012% 0
.0101249%
City La Palma Orange 0.012% 0
.0095439%
City Los Alamitos Orange 0.008% 0
.0069190%
City Mission Viejo Orange 0.014% 0
.0117560%
City Newport Beach Orange 0.179% 0
.1470134%
City Orange Orange 0.150% 0
.1231320%
City Placentia Orange 0.029% 0.035% 0
.0298912%
City Rancho Santa Margarita Orange 0.001% 0
.0006296%
City San Clemente Orange 0.008% 0.010% 0
.0086083%
City San Juan Capistrano Orange 0.008% 0
.0065510%
City Santa Ana Orange 0.502% 0.614% 0
.5213866%
City Seal Beach Orange 0.020% 0
.0165891%
City Stanton Orange 0.035% 0
.0291955%
City Tustin Orange 0.073% 0
.0600341%
City Westminster Orange 0.104% 0.127% 0
.1082721%
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City Yorba Linda Orange 0.044% 0
.0362223%
County Placer County Placer 1.045% 1.278% 1
.0861002%
City Auburn Placer 0.017% 0
.0141114%
City Lincoln Placer 0.031% 0
.0255599%
City Rocklin Placer 0.076% 0
.0625485%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County P
lumas 0.205% 0.251% 0.2128729%
County Riverside County R
iverside 4.534% 5.547% 4.7128296%
City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
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County Sacramento County S
acramento 3.797% 4.645% 3.9465887%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
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City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San D
iego 5.706% 6.980% 5.9309748%
City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San F
rancisco 3.026% 3.702% 3.1457169%
County San Joaquin County San J
oaquin 1.680% 2.055% 1.7460399%
City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis O
bispo 0.816% 0.999% 0.8484126%
City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
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County San Mateo County San M
ateo 1.074% 1.313% 1.1159599%
City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa B
arbara 1.132% 1.385% 1.1768968%
City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa C
lara 2.404% 2.941% 2.4987553%
City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0
.0103338%
City Los Gatos Santa Clara 0.013% 0
.0103220%
City Milpitas Santa Clara 0.036% 0
.0298120%
City Morgan Hill Santa Clara 0.015% 0
.0124619%
City Mountain View Santa Clara 0.041% 0
.0334608%
City Palo Alto Santa Clara 0.039% 0
.0323080%
City San Jose Santa Clara 0.294% 0.360% 0
.3054960%
City Santa Clara Santa Clara 0.067% 0
.0549723%
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City Saratoga Santa Clara 0.004% 0
.0034161%
City Sunnyvale Santa Clara 0.053% 0
.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0
.8135396%
City Capitola Santa Cruz 0.020% 0
.0168191%
City Santa Cruz Santa Cruz 0.143% 0
.1180348%
City Scotts Valley Santa Cruz 0.015% 0
.0126525%
City Watsonville Santa Cruz 0.063% 0
.0520136%
County Shasta County Shasta 1.095% 1.339% 1
.1380191%
City Anderson Shasta 0.024% 0
.0198896%
City Redding Shasta 0.284% 0
.2334841%
City Shasta Lake Shasta 0.004% 0
.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0
.2373393%
County Solano County Solano 0.760% 0
.6260795%
City Benicia Solano 0.031% 0
.0253903%
City Dixon Solano 0.016% 0
.0130849%
City Fairfield Solano 0.109% 0
.0897317%
City Suisun City Solano 0.021% 0
.0176183%
City Vacaville Solano 0.119% 0
.0976497%
City Vallejo Solano 0.167% 0
.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1
.2661290%
City Healdsburg Sonoma 0.032% 0
.0266929%
City Petaluma Sonoma 0.081% 0
.0667507%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County S
tanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
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County Sutter County S
utter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County T
ehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County T
rinity 0.082% 0.101% 0.0855476%
County Tulare County T
ulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County T
uolumne 0.486% 0.594% 0.5047621%
County Ventura County V
entura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City O
xnard Ventura 0.156% 0.190% 0
.1617338%
City Port Hueneme Ventura 0.021% 0
.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0
.0702181%
City Santa Paula Ventura 0.014% 0
.0119072%
City Simi Valley Ventura 0.065% 0
.0533043%
City Thousand Oaks Ventura 0.022% 0
.0179902%
County Yolo County Yolo 0.357% 0.437% 0
.3713319%
City Davis Yolo 0.055% 0
.0451747%
City West Sacramento Yolo 0.066% 0
.0544321%
City Woodland Yolo 0.058% 0
.0477904%
County Yuba County Yuba 0.214% 0.262% 0
.2225679%
City Marysville Y
uba 0.014% 0
.0112079%
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APPENDIX 2

CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Mylan Settlement and their counsel.

In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Mylan Settlement Agreement.

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Mylan Settlement Agreement and CA Mylan Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Mylan Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund will not exceed a
total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Mylan Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Mylan Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the Mylan Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
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1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Sun Settlement

1. Introduction
Pursuant to the Sun Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Sun Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Sun Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Sun Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Section X of the Sun Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the Sun Settlement Agreement, acceptance of this CA Sun Allocation Agreement is a requirement to be an Initial Participating Subdivision.

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Sun Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California.
c) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Amneal Pharmaceuticals
LLC; Apotex Corp., Hikma Pharmaceuticals USA Inc. f/k/a West-Ward Pharmaceuticals Corp.; Indivior Inc.; Viatris Inc. (“Mylan”); Sun Pharmaceutical Industries, Inc.; Zydus Pharmaceuticals (USA) Inc.; Kroger Co., Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., Cencora, Inc. f/k/a AmerisourceBergen Corporation, McKesson Corporation, Dr.

Richard S. Sackler, Beverly Sackler, Jonathan Sackler, David Sackler, Marianna Sackler, Theresa Sackler, Ilene Sackler Lefcourt, Dr. Kathe Sackler, and Mortimer D.A. Sackler) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

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2 3. General Terms
This agreement is subject to the requirements of the Sun Settlement Agreement, as well as applicable law, and the Sun Settlement Agreement governs over any inconsistent provision of this CA Sun Allocation Agreement. Terms used in this CA Sun Allocation Agreement have the same meaning as in the Sun Settlement Agreement unless otherwise defined herein.

Pursuant to Section VI(D)(1) of the Sun Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VI(B)(2) of the Sun Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

This Agreement does not apply to funds received by California1 pursuant to Section X of the Sun Settlement Agreement, including payments for Private Attorney Fees and the Additional Remediation Amount.

4. State Allocation
The Settlement Fund payments to California, pursuant to the Sun Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Sun Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).

A. State of California Allocation
Fifteen percent
of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the total Settlement Fund payments 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 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.

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3 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 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 Sun Settlement 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. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change
in election will apply here, provided that the change
in election is received by the settlement administrator at least 60 days prior to a Payment Date. 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) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). 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 Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Sun Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, 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 Sun Settlement Agreement and this CA Sun Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital
outlay projects before they must
be transferred to the State.

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4 ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Sun Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Sun Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector
entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Sun Settlement Agreement and this CA Sun Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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5 Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Sun Settlement Agreement and this CA Sun Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Sun Settlement Agreement or this CA Sun Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be
resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Sun Settlement Agreement or this CA Sun Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement. e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Sun Settlement Agreement and this CA Sun Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid- related expenses, which may include fees and expenses related to litigation.

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6 However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the settlement agreements with other Opioid Defendants.

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(Y), of the Sun Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Sun Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section VI(B)(1) of the Sun Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Sun Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 2 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and
its private counsel if it is in the form of Appendix 2. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
///
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7 5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Sun Settlement Agreement and this CA Sun Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Sun Settlement Agreement and this CA Sun Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if
used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VI(B)(2) of the Sun Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Sun.
e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Sun Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Sun Settlement Agreement, this CA Sun Allocation Agreement is not enforceable by any party other than the State and the CA Participating Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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8 Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Sun Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Sun Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

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9 The undersigned, Redlands city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds –Sun Settlement is a requirement to be an Initial Participating Subdivision in the Sun Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds –Sun Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
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APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Sun Settlement, whereas the percentages shown in the Abatement Percentage column should not change.

Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C.

Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.

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APPENDIX 1
1of15
100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2
.4237952%
City Alameda Alameda 0.069% 0
.0570162%
City Albany Alameda 0.013% 0
.0107768%
City Berkeley Alameda 0.152% 0
.1249656%
City Dublin Alameda 0.033% 0.040% 0
.0338810%
City Emeryville Alameda 0.023% 0
.0185765%
City Fremont Alameda 0.108% 0
.0888576%
City Hayward Alameda 0.117% 0
.0966218%
City Livermore Alameda 0.054% 0
.0446740%
City Newark Alameda 0.026% 0
.0217626%
City Oakland Alameda 0.486% 0.595% 0
.5055601%
City Piedmont Alameda 0.014% 0
.0114064%
City Pleasanton Alameda 0.067% 0
.0554547%
City San Leandro Alameda 0.039% 0
.0321267%
City Union City Alameda 0.043% 0
.0352484%
County Amador County Amador 0.226% 0.277% 0
.2349885%
County Butte County Butte 1.615% 1.975% 1
.6783178%
City Chico Butte 0.216% 0.264% 0
.2246499%
City Oroville Butte 0.079% 0
.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0
.2351644%
County Colusa County Colusa 0.059% 0
.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2 .1844585%
City Antioch Contra Costa 0.037% 0
.0301879%
City Brentwood Contra Costa 0.026% 0
.0215339%
City Clayton Contra Costa 0.002% 0
.0018060%
City Concord Contra Costa 0.055% 0
.0456676%
City Danville Contra Costa 0.010% 0
.0082255%
City El Cerrito Contra Costa 0.023% 0
.0189024%
City Hercules Contra Costa 0.010% 0
.0078273%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0
.0046030%
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City Martinez Contra Costa 0.012% 0
.0098593%
City Moraga Contra Costa 0.004% 0
.0031007%
City Oakley Contra Costa 0.010% 0
.0079416%
City Orinda Contra Costa 0.005% 0
.0038157%
City Pinole Contra Costa 0.013% 0
.0110909%
City Pittsburg Contra Costa 0.053% 0
.0436369%
City Pleasant Hill Contra Costa 0.013% 0
.0106309%
City Richmond Contra Costa 0.146% 0
.1201444%
City San Pablo Contra Costa 0.018% 0
.0148843%
City San Ramon Contra Costa 0.021% 0
.0176459%
City Walnut Creek Contra Costa 0.026% 0
.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0
.1189608%
County El Dorado County El Dorado 0.768% 0.939% 0
.7980034%
City Placerville El Dorado 0.015% 0
.0127642%
City South Lake Tahoe El Dorado 0.081% 0
.0665456%
County Fresno County Fresno 1.895% 2.318% 1
.9693410%
City Clovis Fresno 0.065% 0
.0536211%
City Coalinga Fresno 0.012% 0
.0098554%
City Fresno Fresno 0.397% 0
.3270605%
City Kerman Fresno 0.005% 0
.0042534%
City Kingsburg Fresno 0.008% 0
.0066167%
City Mendota Fresno 0.002% 0
.0019387%
City Orange Cove Fresno 0.004% 0
.0035607%
City Parlier Fresno 0.008% 0
.0069755%
City Reedley Fresno 0.012% 0
.0098804%
City Sanger Fresno 0.018% 0
.0146135%
City Selma Fresno 0.015% 0
.0127537%
County Glenn County Glenn 0.107% 0.131% 0
.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1
.0703185%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0
.0447660%
City Eureka Humboldt 0.117% 0.143% 0
.1216284%
City Fortuna Humboldt 0.032% 0
.0266837%
County Imperial County Imperial 0.258% 0.315% 0
.2679006%
City Brawley Imperial 0.011% 0
.0087986%
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APPENDIX 1
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City Calexico Imperial 0.019% 0
.0152799%
City El Centro Imperial 0.158% 0
.1302522%
City Imperial Imperial 0.006% 0
.0048791%
County Inyo County Inyo 0.073% 0.089% 0
.0754413%
County Kern County K
ern 2.517% 3.079% 2
.6159145%
City Arvin Kern 0.006% 0
.0046425%
City Bakersfield Kern 0.212% 0
.1747198%
City California City Kern 0.009% 0
.0070820%
City Delano K
ern 0.030% 0
.0249316%
City McFarland Kern 0.003% 0
.0025644%
City Ridgecrest Kern 0.015% 0
.0120938%
City Shafter Kern 0.013% 0
.0103417%
City Tehachapi Kern 0.009% 0
.0073580%
City Wasco Kern 0.008% 0
.0069861%
County Kings County Kings 0.293% 0
.2413469%
City Avenal Kings 0.007% 0
.0056335%
City Corcoran Kings 0.013% 0
.0107032%
City Hanford Kings 0.027% 0
.0226038%
City Lemoore Kings 0.016% 0
.0131900%
County Lake County Lake 0.795% 0
.6545389%
City Clearlake Lake 0.041% 0.050% 0
.0426253%
City Lakeport Lake 0.021% 0.026% 0
.0222964%
County Lassen County Lassen 0.319% 0.391% 0
.3320610%
City Susanville Lassen 0.027% 0
.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 1

4.4437559%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
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City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0
.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Canada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811 %
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APPENDIX 1
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City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0
.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
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City Whittier Los Angeles 0.032% 0.0260581%
County Madera County M
adera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County M
arin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County M
ariposa 0.084% 0.103% 0.0876131%
County Mendocino County M
endocino 0.439% 0.536% 0.4558394%
City Ukiah Mendocino 0.039% 0.0317153%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0
.5724262%
City Atwater Merced 0.024% 0
.0195846%
City Livingston Merced 0.006% 0
.0045873%
City Los Banos Merced 0.020% 0
.0165142%
City Merced Merced 0.061% 0
.0500762%
County Modoc County Modoc 0.065% 0.080% 0
.0678250%
County Mono County Mono 0.023% 0.029% 0
.0242606%
County Monterey County Monterey 0.908% 1.111% 0
.9437083%
City Greenfield Monterey 0.006% 0
.0050552%
City King City Monterey 0.005% 0
.0037355%
City Marina Monterey 0.017% 0
.0144098%
City Monterey Monterey 0.041% 0
.0336540%
City Pacific Grove Monterey 0.009% 0
.0074842%
City Salinas Monterey 0.094% 0
.0776576%
City Seaside Monterey 0.023% 0
.0191772%
City Soledad Monterey 0.007% 0
.0060870%
County Napa County Napa 0.288% 0.352% 0
.2994325%
City American Canyon Napa 0.017% 0
.0136869%
City Napa Napa 0.078% 0
.0642783%
County Nevada County Nevada 0.441% 0.539% 0
.4579827%
City Grass Valley Nevada 0.024% 0
.0197805%
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City Truckee Nevada 0.003% 0
.0023843%
County Orange County Orange 4.364% 5.339% 4
.5363576%
City Aliso Viejo Orange 0.014% 0
.0113841%
City Anaheim Orange 0.554% 0.678% 0
.5759282%
City Brea Orange 0.086% 0
.0708897%
City Buena Park Orange 0.087% 0
.0714352%
City Costa Mesa Orange 0.124% 0.152% 0
.1288366%
City Cypress Orange 0.033% 0
.0271937%
City Dana Point Orange 0.001% 0
.0005560%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0
.0455980%
City Fullerton Orange 0.137% 0.168% 0
.1425744%
City Garden Grove Orange 0.213% 0
.1752482%
City Huntington Beach Orange 0.247% 0.302% 0
.2568420%
City Irvine Orange 0.139% 0.170% 0
.1442350%
City Laguna Beach Orange 0.047% 0.058% 0
.0493043%
City Laguna Hills Orange 0.014% 0
.0115457%
City Laguna Niguel Orange 0.001% 0
.0007071%
City Laguna Woods Orange 0.001% 0
.0006546%
City La Habra Orange 0.060% 0.073% 0
.0621049%
City Lake Forest Orange 0.012% 0
.0101249%
City La Palma Orange 0.012% 0
.0095439%
City Los Alamitos Orange 0.008% 0
.0069190%
City Mission Viejo Orange 0.014% 0
.0117560%
City Newport Beach Orange 0.179% 0
.1470134%
City Orange Orange 0.150% 0
.1231320%
City Placentia Orange 0.029% 0.035% 0
.0298912%
City Rancho Santa Margarita Orange 0.001% 0
.0006296%
City San Clemente Orange 0.008% 0.010% 0
.0086083%
City San Juan Capistrano Orange 0.008% 0
.0065510%
City Santa Ana Orange 0.502% 0.614% 0
.5213866%
City Seal Beach Orange 0.020% 0
.0165891%
City Stanton Orange 0.035% 0
.0291955%
City Tustin Orange 0.073% 0
.0600341%
City Westminster Orange 0.104% 0.127% 0
.1082721%
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City Yorba Linda Orange 0.044% 0
.0362223%
County Placer County Placer 1.045% 1.278% 1
.0861002%
City Auburn Placer 0.017% 0
.0141114%
City Lincoln Placer 0.031% 0
.0255599%
City Rocklin Placer 0.076% 0
.0625485%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County P
lumas 0.205% 0.251% 0.2128729%
County Riverside County R
iverside 4.534% 5.547% 4.7128296%
City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
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County Sacramento County S
acramento 3.797% 4.645% 3.9465887%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
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City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San D
iego 5.706% 6.980% 5.9309748%
City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San F
rancisco 3.026% 3.702% 3.1457169%
County San Joaquin County San J
oaquin 1.680% 2.055% 1.7460399%
City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis O
bispo 0.816% 0.999% 0.8484126%
City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
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County San Mateo County San M
ateo 1.074% 1.313% 1.1159599%
City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa B
arbara 1.132% 1.385% 1.1768968%
City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa C
lara 2.404% 2.941% 2.4987553%
City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0
.0103338%
City Los Gatos Santa Clara 0.013% 0
.0103220%
City Milpitas Santa Clara 0.036% 0
.0298120%
City Morgan Hill Santa Clara 0.015% 0
.0124619%
City Mountain View Santa Clara 0.041% 0
.0334608%
City Palo Alto Santa Clara 0.039% 0
.0323080%
City San Jose Santa Clara 0.294% 0.360% 0
.3054960%
City Santa Clara Santa Clara 0.067% 0
.0549723%
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City Saratoga Santa Clara 0.004% 0
.0034161%
City Sunnyvale Santa Clara 0.053% 0
.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0
.8135396%
City Capitola Santa Cruz 0.020% 0
.0168191%
City Santa Cruz Santa Cruz 0.143% 0
.1180348%
City Scotts Valley Santa Cruz 0.015% 0
.0126525%
City Watsonville Santa Cruz 0.063% 0
.0520136%
County Shasta County Shasta 1.095% 1.339% 1
.1380191%
City Anderson Shasta 0.024% 0
.0198896%
City Redding Shasta 0.284% 0
.2334841%
City Shasta Lake Shasta 0.004% 0
.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0
.2373393%
County Solano County Solano 0.760% 0
.6260795%
City Benicia Solano 0.031% 0
.0253903%
City Dixon Solano 0.016% 0
.0130849%
City Fairfield Solano 0.109% 0
.0897317%
City Suisun City Solano 0.021% 0
.0176183%
City Vacaville Solano 0.119% 0
.0976497%
City Vallejo Solano 0.167% 0
.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1
.2661290%
City Healdsburg Sonoma 0.032% 0
.0266929%
City Petaluma Sonoma 0.081% 0
.0667507%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County S
tanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
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County Sutter County S
utter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County T
ehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County T
rinity 0.082% 0.101% 0.0855476%
County Tulare County T
ulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County T
uolumne 0.486% 0.594% 0.5047621%
County Ventura County V
entura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City O
xnard Ventura 0.156% 0.190% 0
.1617338%
City Port Hueneme Ventura 0.021% 0
.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0
.0702181%
City Santa Paula Ventura 0.014% 0
.0119072%
City Simi Valley Ventura 0.065% 0
.0533043%
City Thousand Oaks Ventura 0.022% 0
.0179902%
County Yolo County Yolo 0.357% 0.437% 0
.3713319%
City Davis Yolo 0.055% 0
.0451747%
City West Sacramento Yolo 0.066% 0
.0544321%
City Woodland Yolo 0.058% 0
.0477904%
County Yuba County Yuba 0.214% 0.262% 0
.2225679%
City Marysville Y
uba 0.014% 0
.0112079%
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APPENDIX 2

CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Sun Settlement and their counsel.

In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Sun Settlement Agreement.

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Sun Settlement Agreement and CA Sun Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Sun Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund will not exceed a total contingency fee of
[PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Sun Settlement Agreement.
[COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Sun Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the Sun Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
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1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Zydus Settlement

1. Introduction
Pursuant to the Zydus Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Zydus Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Zydus Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Zydus Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Section X of the Zydus Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the Zydus Settlement Agreement, acceptance of this CA Zydus Allocation Agreement is a requirement to be an Initial Participating Subdivision.

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Zydus Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California.
c) Plaintiff Subdivision
means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Amneal Pharmaceuticals LLC; Apotex Corp., Hikma Pharmaceuticals USA Inc. f/k/a West-Ward Pharmaceuticals Corp.; Indivior Inc.; Viatris Inc. (“Mylan”); Sun Pharmaceutical Industries, Inc.; Zydus Pharmaceuticals (USA) Inc.; Kroger Co., Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., Cencora, Inc. f/k/a AmerisourceBergen Corporation, McKesson Corporation, Dr.

Richard S. Sackler, Beverly Sackler, Jonathan Sackler, David Sackler, Marianna Sackler, Theresa Sackler, Ilene Sackler Lefcourt, Dr. Kathe Sackler, and Mortimer D.A. Sackler) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

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2 3. General Terms
This agreement is subject to the requirements of the Zydus Settlement Agreement, as well as applicable law, and the Zydus Settlement Agreement governs over any inconsistent provision of this CA Zydus Allocation Agreement. Terms used in this CA Zydus Allocation Agreement have the same meaning as in the Zydus Settlement Agreement unless otherwise defined herein.

Pursuant to Section VI(D)(1) of the Zydus Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VI(B)(2) of the Zydus Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

This Agreement does not apply to funds received by California1 pursuant to Section X of the Zydus Settlement Agreement, including payments for Private Attorney Fees and the Additional Remediation Amount.

4. State Allocation
The Settlement Fund payments to California, pursuant to the Zydus Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Zydus Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the
California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).

A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the total Settlement Fund payments 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 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.

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3 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 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 Zydus Settlement 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. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change
in election will apply here, provided that the change
in election is received by the settlement administrator at least 60 days prior to a Payment Date. 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) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). 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 Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Zydus Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, 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 Zydus Settlement Agreement and this CA Zydus Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to
support capital outlay projects before they must
be transferred to the State.

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4 ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Zydus Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Zydus Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities
in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Zydus Settlement Agreement and this CA Zydus Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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5 Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Zydus Settlement Agreement and this CA Zydus Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Zydus Settlement Agreement or this CA Zydus Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved,
the State may bring a motion or action in the court
where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Zydus Settlement Agreement or this CA Zydus Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Zydus Settlement Agreement and this CA Zydus Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid- related expenses, which may include fees and expenses related to litigation.

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6 However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the settlement agreements with other Opioid Defendants.

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(X), of the Zydus Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Zydus Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section VI(B)(1) of the Zydus Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Zydus Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 2 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a
Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 2. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
///
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7 5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Zydus Settlement Agreement and this CA Zydus Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Zydus Settlement Agreement and this CA Zydus Allocation Agreement. Among other things, Plaintiff
Subdivisions using monies from the
CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VI(B)(2) of the Zydus Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Zydus. e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Zydus Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Zydus Settlement Agreement, this CA Zydus Allocation Agreement is not enforceable by any party other than the State and the CA Participating
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8 Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Zydus Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Zydus Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

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9 The undersigned, Redlands city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds –Zydus Settlement is a requirement to be an Initial Participating Subdivision in the Zydus Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Zydus Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
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APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Zydus Settlement, whereas the percentages shown in the Abatement Percentage column should not change.

Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C.

Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.

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APPENDIX 1
1of15
100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2
.4237952%
City Alameda Alameda 0.069% 0
.0570162%
City Albany Alameda 0.013% 0
.0107768%
City Berkeley Alameda 0.152% 0
.1249656%
City Dublin Alameda 0.033% 0.040% 0
.0338810%
City Emeryville Alameda 0.023% 0
.0185765%
City Fremont Alameda 0.108% 0
.0888576%
City Hayward Alameda 0.117% 0
.0966218%
City Livermore Alameda 0.054% 0
.0446740%
City Newark Alameda 0.026% 0
.0217626%
City Oakland Alameda 0.486% 0.595% 0
.5055601%
City Piedmont Alameda 0.014% 0
.0114064%
City Pleasanton Alameda 0.067% 0
.0554547%
City San Leandro Alameda 0.039% 0
.0321267%
City Union City Alameda 0.043% 0
.0352484%
County Amador County Amador 0.226% 0.277% 0
.2349885%
County Butte County Butte 1.615% 1.975% 1
.6783178%
City Chico Butte 0.216% 0.264% 0
.2246499%
City Oroville Butte 0.079% 0
.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0
.2351644%
County Colusa County Colusa 0.059% 0
.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2 .1844585%
City Antioch Contra Costa 0.037% 0
.0301879%
City Brentwood Contra Costa 0.026% 0
.0215339%
City Clayton Contra Costa 0.002% 0
.0018060%
City Concord Contra Costa 0.055% 0
.0456676%
City Danville Contra Costa 0.010% 0
.0082255%
City El Cerrito Contra Costa 0.023% 0
.0189024%
City Hercules Contra Costa 0.010% 0
.0078273%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0
.0046030%
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City Martinez Contra Costa 0.012% 0
.0098593%
City Moraga Contra Costa 0.004% 0
.0031007%
City Oakley Contra Costa 0.010% 0
.0079416%
City Orinda Contra Costa 0.005% 0
.0038157%
City Pinole Contra Costa 0.013% 0
.0110909%
City Pittsburg Contra Costa 0.053% 0
.0436369%
City Pleasant Hill Contra Costa 0.013% 0
.0106309%
City Richmond Contra Costa 0.146% 0
.1201444%
City San Pablo Contra Costa 0.018% 0
.0148843%
City San Ramon Contra Costa 0.021% 0
.0176459%
City Walnut Creek Contra Costa 0.026% 0
.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0
.1189608%
County El Dorado County El Dorado 0.768% 0.939% 0
.7980034%
City Placerville El Dorado 0.015% 0
.0127642%
City South Lake Tahoe El Dorado 0.081% 0
.0665456%
County Fresno County Fresno 1.895% 2.318% 1
.9693410%
City Clovis Fresno 0.065% 0
.0536211%
City Coalinga Fresno 0.012% 0
.0098554%
City Fresno Fresno 0.397% 0
.3270605%
City Kerman Fresno 0.005% 0
.0042534%
City Kingsburg Fresno 0.008% 0
.0066167%
City Mendota Fresno 0.002% 0
.0019387%
City Orange Cove Fresno 0.004% 0
.0035607%
City Parlier Fresno 0.008% 0
.0069755%
City Reedley Fresno 0.012% 0
.0098804%
City Sanger Fresno 0.018% 0
.0146135%
City Selma Fresno 0.015% 0
.0127537%
County Glenn County Glenn 0.107% 0.131% 0
.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1
.0703185%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0
.0447660%
City Eureka Humboldt 0.117% 0.143% 0
.1216284%
City Fortuna Humboldt 0.032% 0
.0266837%
County Imperial County Imperial 0.258% 0.315% 0
.2679006%
City Brawley Imperial 0.011% 0
.0087986%
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APPENDIX 1
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City Calexico Imperial 0.019% 0
.0152799%
City El Centro Imperial 0.158% 0
.1302522%
City Imperial Imperial 0.006% 0
.0048791%
County Inyo County Inyo 0.073% 0.089% 0
.0754413%
County Kern County K
ern 2.517% 3.079% 2
.6159145%
City Arvin Kern 0.006% 0
.0046425%
City Bakersfield Kern 0.212% 0
.1747198%
City California City Kern 0.009% 0
.0070820%
City Delano K
ern 0.030% 0
.0249316%
City McFarland Kern 0.003% 0
.0025644%
City Ridgecrest Kern 0.015% 0
.0120938%
City Shafter Kern 0.013% 0
.0103417%
City Tehachapi Kern 0.009% 0
.0073580%
City Wasco Kern 0.008% 0
.0069861%
County Kings County Kings 0.293% 0
.2413469%
City Avenal Kings 0.007% 0
.0056335%
City Corcoran Kings 0.013% 0
.0107032%
City Hanford Kings 0.027% 0
.0226038%
City Lemoore Kings 0.016% 0
.0131900%
County Lake County Lake 0.795% 0
.6545389%
City Clearlake Lake 0.041% 0.050% 0
.0426253%
City Lakeport Lake 0.021% 0.026% 0
.0222964%
County Lassen County Lassen 0.319% 0.391% 0
.3320610%
City Susanville Lassen 0.027% 0
.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 1

4.4437559%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
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APPENDIX 1
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City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0
.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Canada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811 %
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APPENDIX 1
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City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0
.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
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City Whittier Los Angeles 0.032% 0.0260581%
County Madera County M
adera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County M
arin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County M
ariposa 0.084% 0.103% 0.0876131%
County Mendocino County M
endocino 0.439% 0.536% 0.4558394%
City Ukiah Mendocino 0.039% 0.0317153%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0
.5724262%
City Atwater Merced 0.024% 0
.0195846%
City Livingston Merced 0.006% 0
.0045873%
City Los Banos Merced 0.020% 0
.0165142%
City Merced Merced 0.061% 0
.0500762%
County Modoc County Modoc 0.065% 0.080% 0
.0678250%
County Mono County Mono 0.023% 0.029% 0
.0242606%
County Monterey County Monterey 0.908% 1.111% 0
.9437083%
City Greenfield Monterey 0.006% 0
.0050552%
City King City Monterey 0.005% 0
.0037355%
City Marina Monterey 0.017% 0
.0144098%
City Monterey Monterey 0.041% 0
.0336540%
City Pacific Grove Monterey 0.009% 0
.0074842%
City Salinas Monterey 0.094% 0
.0776576%
City Seaside Monterey 0.023% 0
.0191772%
City Soledad Monterey 0.007% 0
.0060870%
County Napa County Napa 0.288% 0.352% 0
.2994325%
City American Canyon Napa 0.017% 0
.0136869%
City Napa Napa 0.078% 0
.0642783%
County Nevada County Nevada 0.441% 0.539% 0
.4579827%
City Grass Valley Nevada 0.024% 0
.0197805%
Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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City Truckee Nevada 0.003% 0
.0023843%
County Orange County Orange 4.364% 5.339% 4
.5363576%
City Aliso Viejo Orange 0.014% 0
.0113841%
City Anaheim Orange 0.554% 0.678% 0
.5759282%
City Brea Orange 0.086% 0
.0708897%
City Buena Park Orange 0.087% 0
.0714352%
City Costa Mesa Orange 0.124% 0.152% 0
.1288366%
City Cypress Orange 0.033% 0
.0271937%
City Dana Point Orange 0.001% 0
.0005560%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0
.0455980%
City Fullerton Orange 0.137% 0.168% 0
.1425744%
City Garden Grove Orange 0.213% 0
.1752482%
City Huntington Beach Orange 0.247% 0.302% 0
.2568420%
City Irvine Orange 0.139% 0.170% 0
.1442350%
City Laguna Beach Orange 0.047% 0.058% 0
.0493043%
City Laguna Hills Orange 0.014% 0
.0115457%
City Laguna Niguel Orange 0.001% 0
.0007071%
City Laguna Woods Orange 0.001% 0
.0006546%
City La Habra Orange 0.060% 0.073% 0
.0621049%
City Lake Forest Orange 0.012% 0
.0101249%
City La Palma Orange 0.012% 0
.0095439%
City Los Alamitos Orange 0.008% 0
.0069190%
City Mission Viejo Orange 0.014% 0
.0117560%
City Newport Beach Orange 0.179% 0
.1470134%
City Orange Orange 0.150% 0
.1231320%
City Placentia Orange 0.029% 0.035% 0
.0298912%
City Rancho Santa Margarita Orange 0.001% 0
.0006296%
City San Clemente Orange 0.008% 0.010% 0
.0086083%
City San Juan Capistrano Orange 0.008% 0
.0065510%
City Santa Ana Orange 0.502% 0.614% 0
.5213866%
City Seal Beach Orange 0.020% 0
.0165891%
City Stanton Orange 0.035% 0
.0291955%
City Tustin Orange 0.073% 0
.0600341%
City Westminster Orange 0.104% 0.127% 0
.1082721%
Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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City Yorba Linda Orange 0.044% 0
.0362223%
County Placer County Placer 1.045% 1.278% 1
.0861002%
City Auburn Placer 0.017% 0
.0141114%
City Lincoln Placer 0.031% 0
.0255599%
City Rocklin Placer 0.076% 0
.0625485%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County P
lumas 0.205% 0.251% 0.2128729%
County Riverside County R
iverside 4.534% 5.547% 4.7128296%
City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
Docusign Envelope ID: D00F4030-84D2-4662-B048-A0C713412285 Redlands Regular Meeting of 10-07-25
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County Sacramento County S
acramento 3.797% 4.645% 3.9465887%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
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City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San D
iego 5.706% 6.980% 5.9309748%
City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San F
rancisco 3.026% 3.702% 3.1457169%
County San Joaquin County San J
oaquin 1.680% 2.055% 1.7460399%
City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis O
bispo 0.816% 0.999% 0.8484126%
City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
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County San Mateo County San M
ateo 1.074% 1.313% 1.1159599%
City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa B
arbara 1.132% 1.385% 1.1768968%
City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa C
lara 2.404% 2.941% 2.4987553%
City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0
.0103338%
City Los Gatos Santa Clara 0.013% 0
.0103220%
City Milpitas Santa Clara 0.036% 0
.0298120%
City Morgan Hill Santa Clara 0.015% 0
.0124619%
City Mountain View Santa Clara 0.041% 0
.0334608%
City Palo Alto Santa Clara 0.039% 0
.0323080%
City San Jose Santa Clara 0.294% 0.360% 0
.3054960%
City Santa Clara Santa Clara 0.067% 0
.0549723%
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City Saratoga Santa Clara 0.004% 0
.0034161%
City Sunnyvale Santa Clara 0.053% 0
.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0
.8135396%
City Capitola Santa Cruz 0.020% 0
.0168191%
City Santa Cruz Santa Cruz 0.143% 0
.1180348%
City Scotts Valley Santa Cruz 0.015% 0
.0126525%
City Watsonville Santa Cruz 0.063% 0
.0520136%
County Shasta County Shasta 1.095% 1.339% 1
.1380191%
City Anderson Shasta 0.024% 0
.0198896%
City Redding Shasta 0.284% 0
.2334841%
City Shasta Lake Shasta 0.004% 0
.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0
.2373393%
County Solano County Solano 0.760% 0
.6260795%
City Benicia Solano 0.031% 0
.0253903%
City Dixon Solano 0.016% 0
.0130849%
City Fairfield Solano 0.109% 0
.0897317%
City Suisun City Solano 0.021% 0
.0176183%
City Vacaville Solano 0.119% 0
.0976497%
City Vallejo Solano 0.167% 0
.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1
.2661290%
City Healdsburg Sonoma 0.032% 0
.0266929%
City Petaluma Sonoma 0.081% 0
.0667507%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County S
tanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
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County Sutter County S
utter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County T
ehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County T
rinity 0.082% 0.101% 0.0855476%
County Tulare County T
ulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County T
uolumne 0.486% 0.594% 0.5047621%
County Ventura County V
entura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City O
xnard Ventura 0.156% 0.190% 0
.1617338%
City Port Hueneme Ventura 0.021% 0
.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0
.0702181%
City Santa Paula Ventura 0.014% 0
.0119072%
City Simi Valley Ventura 0.065% 0
.0533043%
City Thousand Oaks Ventura 0.022% 0
.0179902%
County Yolo County Yolo 0.357% 0.437% 0
.3713319%
City Davis Yolo 0.055% 0
.0451747%
City West Sacramento Yolo 0.066% 0
.0544321%
City Woodland Yolo 0.058% 0
.0477904%
County Yuba County Yuba 0.214% 0.262% 0
.2225679%
City Marysville Y
uba 0.014% 0
.0112079%
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