III. FINANCIAL III. FINANCIAL 3.19 500 Prize Money Formula Rule 46 47 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. 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: 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):  * Specific amounts should depend on the severity of the violation and issue(s)  presented. 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  Violation Fine* 250/500/1000 Failure to meet 120-day deadline to  provide a Submission in accordance  with this rule $5,000/$10,000/$20,000 Prolonged failure to meet 120-day  deadline to provide a Submission  in accordance with this rule (over a  month late) $15,000/$30,000/$60,000 Submission contains a material  misstatement or material omission of  information $15,000/$30,000/$60,000 (up to a  maximum of $250,000) Willful non-compliance with this rule  (e.g., failure to provide a Submission) Up to a maximum of $250,000 AGP up to 2.5% On-site prize money increases by 2.5%  AGP over 2.5% to 6% On-site prize money increases by AGP AGP over 6% On-site prize money increases by AGP times 1.167