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WHEREAS, the County's lawsuit was transferred to the United States District Court for the Northern <br />District of Ohio to become part of the multidistrict litigation ("MDL"), consisting of thousands of lawsuits brought <br />by various states and local subdivisions, including counties, cities, and special districts, against a number of <br />opioid distributors and manufacturers; and <br />WHEREAS, on or about, July 21, 2021, distributors McKesson Corporation, Cardinal Health, Inc , and <br />AmerisourceBergen Corporation (collectively, "Distributors"), and manufacturers Johnson & Johnson, Janssen <br />Pharmaceuticals, Inc , Ortho-McNeil-Janssen Pharmaceuticals, Inc , and Janssen Pharmaceutica, Inc. <br />(collectively, "Janssen") tentatively reached two separate settlements (hereinafter referred to as the "Distributor <br />Settlement Agreement" and "Janssen Settlement Agreement," respectively) in the MDL, which allow for <br />participation by eligible non -litigating Local Subdivisions, and <br />WHEREAS, City is an eligible non -litigating Local Subdivision and has submitted the requisite <br />documentation necessary to participate in the Distributor and Janssen settlements, <br />WHEREAS, under the Distributor and Janssen Settlement Agreements, the states and their Local <br />Subdivisions may enter into allocation agreements to govern how the settlements funds from the two settlements <br />coming to a state will be allocated to the state and its Local Subdivisions, and <br />WHEREAS, the State of California ("State") and its Local Subdivisions have entered into Allocation <br />Agreements for both the Distributor and Janssen settlements, which provide that each eligible Local Subdivision <br />that participates in the settlements will have its Local Allocation go to the county where the subdivision is located, <br />unless the Local Subdivision notifies the Settlement Fund Administrator, at least 60 days before each payment <br />date, that it elects to take a direct distribution of its Local Allocation, and <br />WHEREAS, the City has decided it wilt not take a direct distribution of its Local Allocation, and will instead <br />have its Local Allocation distributed to the County, and <br />WHEREAS, the parties wish to set forth the terms as to the County's use of the City's Local Allocation; <br />and <br />NOW, THEREFORE, in consideration of the preceding recitals, together with the mutual covenants <br />hereinafter contained, the parties hereto mutually agree that the above recitals are true and correct and <br />incorporated into the terms of this Agreement and as follows. <br />A. DEFINITIONS <br />a CA Abatement Accounts Fund shall mean "CA Abatement Accounts Fund" as defined in the <br />Allocation Agreements. <br />b. Allocation Agreement(s) means the allocation agreements entered into by and between the State <br />and its Local Subdivisions specifying how the settlement funds from the Distributor and Janssen <br />settlements will be distributed to the State and its Local Subdivisions These agreements are <br />entitled, "Proposed California State -Subdivision Agreement Regarding Distribution and Use of <br />Settlement Funds — Distributor Settlement" and "Proposed California State -Subdivision Agreement <br />Regarding Distribution and Use of Settlement Funds — Janssen Settlement." <br />c DHCS is the California Department of Health Care Services <br />d Local Allocation means a Local Subdivision's share of the settlement funds from the Distributor <br />and Janssen settlements, as set forth in Appendix 1 to the Allocation Agreements <br />e Local Subdivision(s) means cities and counties <br />f Master Agreements shall refer to the Distributor Settlement Agreement and the Janssen <br />Settlement Agreement <br />Page 2 of 22 <br />