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6. "Opioid Funds" shall mean monetary amounts obtained through a Settlement as <br />defined in this Memorandum of Understanding. <br />7. "Approved Purpose(s)" shall mean evidence -based forward -looking strategies, <br />programming and services used to (i) expand the availability of treatment for <br />individuals affected by substance use disorders, (ii) develop, promote and provide <br />evidence -based substance use prevention strategies, (iii) provide substance use <br />avoidance and awareness education, (iv) decrease the oversupply of licit and illicit <br />opioids, and (v) support recovery from addiction services performed by qualified <br />and appropriately licensed providers, as is further set forth in the agreed Opioid <br />Abatement Strategies attached as Exhibit A.For purposes of the Local Government <br />Share, "Approved Purpose(s)" will also include past expenditures. <br />8. "Pharmaceutical Supply Chain" shall mean the process and channels through which <br />Controlled Substances are manufactured, marketed, promoted, distributed or <br />dispensed. <br />9. "Pharmaceutical Supply Chain Participant" shall mean any entity that engages in <br />or has engaged in the manufacture, marketing, promotion, distribution or <br />dispensing of an opioid analgesic. <br />B. Allocation of Settlement Proceeds <br />1. All Opioid Funds shall be divided with 3 0% going to Local Governments ("LG <br />Share"), 55% to the Foundation (structure described below) ("Foundation Share"), <br />and 15% to the Office of the Ohio Attorney General as Counsel for the State of <br />Ohio ("State Share"). <br />2. All Opioid Funds, regardless of allocation, shall be utilized in a manner consistent <br />with the Approved Purposes definition. The LG Share may also be used for past <br />expenditures so long as the expenditures were made for purposes consistent with <br />the remaining provisions of the Approved Purposes definition. Prior to using any <br />portion of the LG Share as restitution for past expenditures, a Local Government <br />shall pass a resolution or take equivalent governmental action that explains its <br />determination that its prior expenditures for Approved Purposes are greater than or <br />equal to the amount of the LG Share that the Local Government seeks to use for <br />restitution. <br />3. The division of Opioid Funds paid to Local Governments participating in an <br />individual settlement shall be based on the allocation created and agreed to by the <br />Local Governments which assigns each Local Government a percentage share of <br />Opioid Funds. The allocations are set forth in Exhibit B. With respect to Opioid <br />Funds, the allocation shall be static. <br />4. In the event a Local Government merges, dissolves, or ceases to exist, the allocation <br />percentage for that Local Government shall be redistributed equitably based on the <br />Page 12 <br />