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if you're talking about a little packet that came with the OEM rear pads, I put that between the pad backing and the shim. Then I got some caliper grease from my local auto parts store & lubed the pin the caliper rotates up on - and lubricated the sliding sleeve that the mounting bolt goes through - IMHO this is necessary since the brake design assumes a floating caliper/fixed rotor, of course YMMV.
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