content_image/864990.jpg content_image/864991.jpg
## III. FINANCIAL 

be required to execute and deliver to the Committee a statement of confidentiality and non-disclosure preventing either the Committee Auditor or Player Auditor from making any such disclosure. 

E.  Each year, the Committee Auditor will perform an agreed upon desk-based proce - dures audit (as directed by the Committee) of each tournament member Submis sion and report to the Committee any issues that it may identify as a result of these procedures for which the Committee Auditor is unable to resolve with the respective tournament. Once this process is complete, the Committee Auditor will provide the results of its procedures and the supporting audit work papers to the Player Auditor. The Player Auditor will undertake a review of the provided information and results. After completing this review, if the Player Auditor has any outstanding issues or ques - tions, the Player Auditor will work with the Committee Auditor to resolve such issues and questions. In the event that the Committee Auditor and the Player Auditor are unable to resolve any such issues or questions, the Committee Auditor and the Play - er Auditor will inform the Committee and may jointly conduct an on-site audit at the offices of the relevant tournament or Related Party to review and evaluate the books and records of such tournament or Related Party that are reasonably necessary to resolve such issue or question; provided, that any such joint on-site audit must be conducted during regular business hours and no more than three (3) joint on-site audits may be conducted during any consecutive twelve (12) month period. If after any joint on-site audit, the Committee Auditor and the Player Auditor are still unable to resolve any such issues or questions (or in the event the Committee Auditor and the Player Auditor elect not to conduct an on-site audit and such issues or questions remain), the Committee Auditor and the Player Auditor will inform the Committee and the Committee will evaluate the information presented and then issue a determina - tion as to whether the unresolved issue(s) or question(s) is due to an act or omission of a tournament member. In the event that the Voting Members are unable to unani - mously agree on such determination, then the Independent Member will make such determination in his or her sole discretion. If it is determined that the unresolved issue(s) or questions(s) are due to an act or omission of a tournament member, then the revenues for that tournament could be excluded from the prize money formula calculation and/or that tournament may be subject to a fine pursuant to Section F below. 

F.  Any tournament member that (i) fails to provide a Submission to the Committee Au - ditor as required under this rule (including with respect to the timing, accuracy and/ or completeness thereof), (ii) submits a report or document that contains a material misstatement or omits material information, (iii) does not fully cooperate with the Committee Auditor and Player Auditor as required hereunder, or (iv) otherwise fails to comply with this rule, may request from the Committee a 10 day extension in order to comply with its submission failure. Following any such extension the tournament in each case, may be subject to a fine in a maximum amount of $250,000. This maximum fine amount will increase by 100% for consecutive year submission failure by a tournament. The Committee shall evaluate the circumstances that led to the failure of such tournament member to comply with the terms of this rule and assess an appropriate fine taking into consideration the guidelines set forth in Section G below or as otherwise provided by the ATP Board of Directors from time to time. For clarity, any such guidelines will be for guidance purposes only and the Committee will have the right to determine an appropriate fine in its sole discretion. In the event that the Voting Members are unable to unanimously agree on a fine, the Independent Member will make such determination in his or her sole discretion taking into account 

## III. FINANCIAL 

the circumstances that led to the failure of the tournament member to comply with the terms of this rule. All fines assessed under this rule will be contributed to the player pension program. 

G. The following guidelines set forth fines that may be imposed for violations of this rule (subject to the discretion of Committee as set forth in this rule): 

<img src='content_image/864990.jpg'>

* Specific amounts should depend on the severity of the violation and issue(s) presented. 

Notwithstanding anything to the contrary herein, each ATP Tour tournament member shall have until January 15th, 2020 to provide the Committee Auditor with a complete and accurate Submission related to tournament events concluded in 2018. Any Sub - mission related to a tournament event that concluded in 2019 prior to the Effective Date shall be required to be provided to the Committee Auditor no later than 120 days following the conclusion of such event or if, after giving effect to this rule, such 120 day period has passed, 60 days following the Effective Date. 

## 3.19 500 Prize Money Formula Rule 

The formula within this rule will be used to determine increases in on-site prize money for the ATP Tour 500 category of tournaments (as this category is currently composed) for the years 2020 through 2024. In the event this category is materially changed during this period, the Committee will determine what effect such material changes have on applying this rule for the remainder of the term. The formula will be based on a 2-year average growth percentage (AGP) in defined revenues (DR) for all events in the category. The Committee Auditor will calculate AGP and submit such calculations to the Committee for review and approval. Such AGP will be applied to current year category total on-site prize money as follows: 

<img src='content_image/864991.jpg'>

