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3 <br /> dated August 6, 2021, Judge Polster capped all applicable contingent fee agreements <br />order <br />at 15%. Judge Polster’s 15% cap does not limit fees from the National Attorney Fee Fund <br />or from any state backstop fund for attorney fees, but private attorneys for local <br />governments must waive their contingent fee agreements to receive payment from the <br />NationalAttorney Fee Fund. Judge Polster recognized that a state backstop fund can be <br />designed to incentivize private attorneys to waive their right to enforce contingent fee <br />agreements and instead apply to the National Attorney Fee Fund, with the goals of <br />achieving greater subdivision participation and higher ultimate payouts to both states and <br />local governments.Accordingly, in order to seek payment from the Backstop Fund, <br />Counsel must agree to waive their contingency fee agreements relating to these National <br />Settlement Agreements and first apply to the National Attorney Fee Fund. <br />C.Backstop Fund Source. The Backstop Fund will be funded by seven percent (7%) of the <br />share of each payment made to the Local Abatement Funds from the National Settlement <br />Agreements (annual or otherwise), based upon the initial allocation of 25% directly to the <br />State Abatement Fund and 75% directly to Local Abatement Funds, and will not include <br />payments resulting from the Purdue or Mallinckrodt Bankruptcies. In the event that the <br />initial allocation is modified pursuant to Section II.F. above, then the Backstop Fund will <br />be funded by 8.75% of the share of each payment made to the Local Abatement Funds <br />from the National Settlement Agreements (annual or otherwise), based upon the modified <br />allocation of 40% directly to the State Abatement Fund and 60% directly to the Local <br />Abatement Funds, and will not include payments resulting from the Purdue or Mallinckrodt <br />Bankruptcies. In the event that the allocation is modified pursuant to Section II.G. or <br />Section II.H. above, back to an allocation of 25% directly to the State Abatement Fund and <br />75% directly to Local Abatement Funds, then the Backstop Fund will be funded by 7% of <br />the share of each payment made to the Local Abatement Funds from the National <br />Settlement Agreements (annual or otherwise), and will not include payments resulting from <br />the Purdue or Mallinckrodt Bankruptcies. <br />D. Backstop Fund Payment Cap. Any attorney fees paid from the Backstop Fund, together <br />with any compensation received from the National Settlement Agreements’ Contingency <br />Fee Fund, shall not exceed 15% of the total gross recovery of the Litigating Local <br />Governments’ share of funds from the National Settlement Agreements. To avoid doubt, <br />in no instance will Counsel receive more than 15% of the amount paid to their respective <br />Litigating Local Government client(s) when taking into account what private attorneys <br />receive from both the Backstop Fund and any fees received from the National Settlement <br />Agreements’ Contingency Fee Fund. <br />E. Requirements to Seek Payment from Backstop Fund. A private attorney may seek payment <br />from the Backstop Fund in the event that funds received by Counsel from the National <br />Settlement Agreements’ Contingency Fee Fund are insufficient to cover the amount that <br />would be due to Counsel under any contingency fee agreement with a Litigating Local <br />Government based on any recovery Litigating Local Governments receive from the <br />National Settlement Agreements. Before seeking any payment from the Backstop Fund, <br /> <br />3 <br />Order, In re: Nat’l Prescription Opiate Litig., Case No. 17-MD-02804, Doc. No. 3814 (N.D. Ohio <br />August 6, 2021). <br />9 <br /> <br />