III. FINANCIAL III. FINANCIAL A.ATP Tour Tournaments 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  3.13 Taxes-Notice of Withholdings  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. 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. 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. B.ATP Challenger Tour Tournaments 3.14 Withholding From Prize Money 3.11 On-Site Prize Money Adjustment A. Exchange Rate Adjustment Rule  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. 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. 40 41 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. B.  All non-cash awards or prizes must be the product of, or service provided by, a prin - cipal tournament sponsor. 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. 3.15 Prizes and Non-Cash Awards 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. 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. 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.