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<br />2 <br />D. Each of the Local Governments that is eligible to participate in this <br />Allocation Agreement III has previously executed and signed the One <br />Washington Memorandum of Understanding Between Washington <br />Municipalities (“MOU”) agreed to by the Participating Local <br />Governments in Washington State, which is attached hereto as Exhibit 1. <br />By executing this Allocation Agreement III, the local government agrees <br />and affirms that the MOU applies to and shall govern the Local <br />Government Share as modified by this Allocation Agreement III for the <br />Settlement. <br />A Local Government that meets all of the conditions in this paragraph shall be <br />deemed a “Participating Local Government.” <br />4. This Allocation Agreement III applies to the State of Washington’s allocation of <br />the (1) Adjusted State Remediation Payment and (2) Additional Remediation <br />Amount, which collectively shall be referred to as the “Washington Abatement <br />Amount.” As specified in the Settlement, the Washington Abatement Amount will <br />vary dependent on the percentage of Participating Local Governments and <br />whether there are any Later Litigating Subdivisions. <br />5. This Allocation Agreement III does not apply to the State Cost Fund, State AG <br />Fees and Costs, or any attorneys’ fees, fees, costs, or expenses referred to in the <br />Settlement or that are paid directly or indirectly via the Settlement to the State of <br />Washington (“State’s Fees and Costs”). <br />6. This Allocation Agreement III and the MOU are a State Back-Stop Agreement. <br />Kroger is paying a portion of the Local Governments’ attorneys’ fees and costs as <br />provided for in the Settlement. The total contingent fees an attorney receives from <br />the Contingency Fee Fund in the Settlement, the MOU, and this Allocation <br />Agreement III combined cannot exceed 15% of the portion of the LG Share paid <br />to the Litigating Local Government that retained that firm to litigate against the <br />Settling Entities (i.e., if City X filed suit with outside counsel on a contingency <br />fee contract and City X receives $1,000,000 from the Settlement, then the <br />maximum that the firm can receive is $150,000 for fees as to the Kroger <br />Settlement.) <br />7. No portion of the State’s Fees and Costs and/or the State Share as defined in <br />Paragraphs 5 and 9 of this Allocation Agreement III shall be used to fund the <br />Government Fee Fund (“GFF”) referred to in Paragraph 11 of this Allocation <br />Agreement III and Section D of the MOU, or in any other way to fund any <br />Participating Local Government’s attorneys’ fees, costs, or common benefit tax. <br />8. The Washington Abatement Amount shall and must be used by the State and <br />Participating Local Governments for future Opioid Remediation as defined in the <br />Settlement, except as allowed by the Settlement.