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6 <br />The CA Subdivision Funds will be allocated as follows: <br />a)First, funds in the CA Subdivision Fund shall be used to pay the Special Master’s <br />reasonable fees and expenses in accordance with the procedures and limitations set <br />forth in Appendix 2 to this document; <br />b)Second, funds will be allocated to Plaintiff Subdivisions that are Initial Participating <br />Subdivisions that have been awarded Costs, as defined by and in accordance with the <br />procedures and limitations set forth in Appendix 2 to this document. <br />c)Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50% <br />of the total CA Subdivision Fund received in any year pursuant to Appendix 2, <br />Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Initial Participating <br />Subdivisions, in relative proportion to the Local Allocation. These funds shall be used <br />to fund future opioid-related projects and to reimburse past opioid-related expenses, <br />which may include fees and expenses related to litigation against any Opioid <br />Defendant. <br />D.Provision for State Back-Stop Agreement <br />On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, <br />Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the <br />National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee <br />agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its <br />contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Janssen <br />Settlement Agreement and, if applicable, the Distributor Settlement Agreement. <br />A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay <br />for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), <br />pursuant to Exhibit R, section I(R), of the Janssen Settlement Agreement and the MDL Fees <br />Order, so long as such contingency fees do not exceed a total contingency fee of 15% of the total <br />gross recovery of the Plaintiff Subdivision pursuant to the Janssen Settlement, and if applicable, <br />the Distributor Settlement, inclusive of contingency fees from the national Attorney Fee Fund <br />and this State Back-Stop Agreement. Before seeking fees or litigation costs and expenses from a <br />State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek <br />contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Janssen <br />Settlement Agreement and, if applicable, the Distributor Settlement Agreement. Further, private <br />counsel may only seek reimbursement for litigation fees and costs that have not previously been <br />reimbursed through prior settlements or judgments. <br />To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of <br />Appendix 3 may be entered into by a Plaintiff Subdivision, private counsel, and the California <br />Office of the Attorney General. The California Office of the Attorney General shall, upon the <br />request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and <br />its private counsel if it is in the form of Appendix 3. The California Office of the Attorney <br />320