III. FINANCIAL 3.07 Letter of Credit - New/Conditional Tournaments 4) Late Payments . Fee payments not received by due dates are subject to an initial  2% late fee, followed by a subsequent 2% late fee every 30 days. III. FINANCIAL 3.05 Fees/Other Payments 3.06 Insurance A.  All fees and monies due to ATP are to be sent by wire or check in USD or EUR. B.  Any amounts (e.g. player fines, non-member service fees, air-tickets) collected or  owed by the tournament to ATP must be remitted to ATP. A.  Each ATP Tour and ATP Challenger Tour tournament shall obtain and maintain gen - eral liability insurance or the equivalent thereof, with an insurance carrier maintaining  a financial rating of “A” by AM Best and acceptable to ATP.  1) Masters 1000 events shall maintain a minimum limit of $10,000,000 USD.  2) ATP Tour 500 and ATP Tour 250 events shall maintain limits of not less than  $5,000,000 USD. 3) ATP Challenger Tour events offering prize money of $100,000 and above shall  maintain limits of not less than $€1,000,000 in coverage. 4) ATP Challenger Tour events offering prize money less than $100,000 shall main - tain limits of not less than $€500,000 in coverage. 5) The liability insurance shall include bodily injury and property damage liability,  personal injury, participant legal liability, hired and non-owned auto and contrac - tual liability coverage. 6)  The tournament liability insurance shall name ATP Tour, Inc. (a United States  Corporation), its director and officers, employees, agents as additional named in - sureds with respect to any claim or suits brought against ATP, its officials, employ ees, agents, regardless of the court of jurisdiction, arising out of the negligence of  the tennis tournament, its directors or representatives. 7) Coverage will include volunteers, on-court officials and ball persons as “named  insureds” under the policy. B.  Each ATP Tour and ATP Challenger Tour tournament is responsible for determining  whether applicable worker’s compensation statutes apply to injuries sustained by  volunteers, sub-contractors, on-court officials or ball persons. In the absence of a  worker’s compensation coverage requirement, it is recommended that the tourna - ment purchase excess medical insurance for the event to provide medical payments  coverage to injured volunteers, on-court officials or ball persons involved in the event.  C .All such insurance shall provide, not less than thirty (30) days, prior written notice to  ATP of cancellation. D.  Each ATP Tour and ATP Challenger Tour tournament shall furnish to ATP no later  than sixty (60) days prior to such tournament a certificate of insurance from such  insurance carrier certifying compliance with the above requirements. 34 Unless otherwise determined by ATP, each ATP Tour tournament with conditional  membership status must submit to ATP within the time period required, an approved  irrevocable Letter of Credit, in form and substance, satisfactory to ATP, from an ATP  approved bank in the amount of the on-site prize money. Such Letter of Credit must  have an expiration date no earlier than one (1) month after the last scheduled day of  ATP event. 3.08 Prize Money A. General a) A player who withdraws from the main draw singles competition at an ATP  Tour or ATP Challenger Tour event after the start of the qualifying and prior to his  first match shall receive first round prize money (second round in the case of a  Bye) if the following conditions are met: 35 Singles: 3)  Prize money shall be paid only for matches played. If a final cannot be played,  then each finalist shall be paid runner-up prize money. For purposes of this sec - tion, a match is played when it is won as a result of a retirement, default, walkover  or no show. (See “Exhibit K - Glossary” ) d) ATP reserves the right to seek assurances of a tournament’s financial viability  in the form of a letter of credit, advance payment of prize money or any other  means ATP deems necessary. c)  ATP must receive the electronically completed ATP prize money excel spread - sheet no later than the end of the business day on the Monday following the  conclusion of the tournament. Spreadsheet must be emailed to accounting@ atptour.com. • Existing Events – prize money must be deposited in ATP account four (4)  weeks prior to the first day of the tournament. • New applicants – prize money must be deposited in ATP account six (6)  weeks prior to the first day of the tournament. b)  ATP must receive 100% of the prize money as follows: a)  Prize money at all ATP Challenger Tour events shall be paid through ATP or  its designated agent at the conclusion of the tournament, unless otherwise  approved by ATP.  2) ATP Challenger Tour c) Tournaments are required to wire net prize money to the designated bank  trust account to ensure receipt by the Wednesday following the conclusion of  their respective events. b) ATP must receive the electronically completed ATP prize money excel  spreadsheet no later than the end of the business day on the Monday follow - ing the conclusion of the tournament. The spreadsheet must be emailed to  accounting@atptour.com. a) Prize money at all ATP Tour events shall be paid through ATP or its designat - ed agent at the conclusion of the tournament, unless otherwise approved by  ATP. Prize money shall be distributed based on breakdowns established by  ATP. ATP must approve any changes in prize money, including from year to  year. 1) ATP Tour