## III. FINANCIAL 

## A.ATP Tour Tournaments 

Prize money and fee payments by all ATP Tour level tournaments shall be deter - mined as follows: 

1) U.S. Tournaments : All prize money, fees etc. must be paid in USD. 

2) European Region Tournaments : All prize money, fees etc. must be paid in EUR. 

3) All Other Tournaments : All prize money, fees etc. must be paid in USD. Any change from USD payment must be approved by the ATP Board. 

## B.ATP Challenger Tour Tournaments 

Prize money and fee payments by all ATP Challenger Tour tournaments shall be determined as follows: 

1) U.S. Challengers:  All prize money and fees must be paid in USD. 

2) European Region Challengers:  All prize money and fees must be paid in EUR. 

3) All Other ATP Challenger Tour Events:  Prize money and fees must be paid in USD. 

## 3.11 On-Site Prize Money Adjustment 

## A. Exchange Rate Adjustment Rule 

There will be no prize money adjustment for tournaments in the U.S. and tourna - ments in ATP’s European Group, except for those in non-euro based countries. For all other tournaments, the on-site prize money will be increased or decreased from approved prize money levels when there are significant exchange rate changes be - tween USD or EUR / local currency. The amount of the prize money adjustment shall be determined as follows: 

1) As of March 31, June 30, September 30 and December 31 of each year, ATP will compare the current market exchange (ratio of local currency to USD or EUR) with the 5-year average of the same currency exchange rate for each non-U.S./ non-European group and calculate the change between the current rate and av - erage rate as a percentage of the average rate. Prize money amounts for tour naments in countries where more than a 10% change occurs will be adjusted by one-half of the percentage change subject to a maximum adjustment of 15%. 

The calculations will apply to tournaments in the following year on the dates as follows: 

a) March 31 calculation-tournaments that begin from January 1 through March 31 

b) June 30 calculation-tournaments that begin from April 1 through June 30 

c) September 30 calculation-tournaments that begin from July 1 through Sep - tember 30 

d) December 31 calculation-tournaments that begin from October 1 through De - cember 31 

2) FedEx ATP Rankings points will be based on approved prize money levels prior to any adjustment pursuant to this section. This section will not apply to tournaments in countries where currencies are not actively traded. 

## III. FINANCIAL 

3) The Exchange Rate Adjustment rule will not apply to: new ATP Tour tournaments who have run their event for less than 5 years, existing tournaments that relocate to a country with different currency for the first 5 years in the new location, exist - ing tournaments who previously elected to opt out of this rule and ATP Challenger Tour events. New ATP tournaments may not opt out of this rule. 

## 3.12 Late Payment 

Prize money payments not received by the due dates specified herein are subject to an initial 2% late fee, followed by a subsequent 2% late fee every 30 days. 

## 3.13 Taxes-Notice of Withholdings 

Each ATP Tour and ATP Challenger Tour tournament is required to give at least ninety (90) days notice to ATP of the percentage of the applicable player income tax deduc - tion. No other tax deduction(s) will be permitted from the on-site prize money paid to a player. Tournaments are responsible for any additional taxes imposed. Each tournament is responsible for withholding required income taxes from each player’s prize money payment and remitting such amounts to the applicable taxing authorities on a timely basis. 

## 3.14 Withholding From Prize Money 

A .Each ATP Tour and ATP Challenger Tour tournament shall withhold from prize money only a player’s applicable income tax deduction, non-member service fee, fines, ad - vances and other ATP designated expenses. 

B.  Each ATP Tour and ATP Challenger Tour tournament shall document the player in - come tax deduction, if any, and provide players on-site with a withholding income tax receipt. 

C.  When a fine is deducted from a player’s prize money paid in a currency other than the assessed currency, the exchange rate used (on the day the fine is deducted) by ATP Tour and ATP Challenger Tour tournament for the payment of prize money shall be applicable to the payment of the fine. 

## 3.15 Prizes and Non-Cash Awards 

A .In addition to on-site prize money, each ATP Tour tournament may give to each sin - gles and doubles winner during the on-site awards presentation one (1) non-cash award or prize plus a trophy. Non-cash awards or prizes valued over $5,000 must be approved by the ATP CEO no later than forty-two (42) days prior to the tournament and can be offered for results in that tournament only. 

B.  All non-cash awards or prizes must be the product of, or service provided by, a prin - cipal tournament sponsor. 

C.  Pre-existing tournament sponsorship agreements made before 1993 for non-cash awards or prizes are exempt until the expiration of such agreements. The tournament must notify the appropriate ATP Regional Office of such non-cash awards or prizes forty-two (42) days prior to the tournament. 

