III. FINANCIAL III. FINANCIAL The resulting overall on-site prize money increase will be allocated equally to each of  the 13 500 events, regardless of their current on-site prize money level. quired to be included. Barter for this purpose is non cash transactions (for example  advertising) where value is exchanged (for example, when cars are provided as part  of a car sponsor deal the value of the cars provided must be included in sponsor  revenues. Barter valuations should be in accordance with GAAP or IFRS applicable  to each tournament. ATP payments to tournaments for rebates and prize money subsidy are not included  in DR or OR. Data distribution revenues shall be included within the other tournament  revenues category (OR) and subject to reclassification within DR as provided above. For purposes of DR, the following will also apply:  Supplemental Tournament Financial Information Rule-Prize Money and Audit  (Audit Rule)  - ATP rule which among other provisions defines the required annual re - porting by each ATP tournament of its gross tournament revenue and other financial  information and defines the audit procedures to be applied to submitted information.  Definitions within that rule are incorporated herein by reference. Implementation of  this 500’s formula rule will be the responsibility of the Committee as defined in the  Audit Rule. Average Growth Percentage (AGP)  - AGP is the 2-year average growth in the most  recent actual years DR as reported to and calculated by the Committee Auditor. The  annual period for purposes of AGP will be the 12-month periods ending in April each  year immediately following the Barcelona tournament. Defined Revenues (DR)  - Defined revenues are the basis for the AGP calculations  and include the following four broad revenue categories as long as the 2-year aver - age of these revenues exceed 92% of average gross revenues as reported to the Committee Auditor:  Definitions Sponsorships Ticketing and on-site hospitality Media and television revenues Government funding and/or government subsidies Revenues within each of these categories must include all amounts earned in con - nection with each category. For example, if a sponsor agreement in addition to spon sor signage and benefits, provides for on-site parking or event merchandise, total  sponsor payments must be included within this category and not allocated to another  revenue category. Similarly, if food and beverage and/or parking are included in a  ticketing/hospitality package, the total package proceeds will be included in the tick - eting/hospitality category as DR and not allocated to another revenue category. Consistent with the Audit Rule, where applicable, gross revenues and DR includes  tournament revenues received by related parties. A person/company is considered to  be a Related Party to the tournament if that person/company has control, joint control  or significant influence over the tournament or a tournament entity, either via own - ership, via agreement, or via power to manage/govern/influence the tournament’s  finances and/or operations. Also, a person/company is considered to be a Related  Party to the tournament if the tournament has control, joint control or significant influ - ence over the person/company, either via ownership, via agreement, or via power to  manage/govern/influence the person/company’s finances and/or operations. If two-year average DR are less than 92% of average gross revenues, the next larg - est revenue category as determined by the Committee Auditor and approved by the  Committee will be added to DR so that the 92% minimum is achieved. For purposes of DR, barter transactions as defined below for each category are re - 48 49 Agreed upon procedures as defined in the Audit Rule will only be applied to DR of  the 500’s events. Remaining OR as reported under the Audit Rule will be subject only  to overall fluctuation reviews and resulting inquiries by the Committee and Player  Auditors necessary to understand significant changes.  Other Revenues (OR)  - OR includes all tournament revenues not otherwise included  in DR. • Insurance proceeds which replace lost revenues will be included as revenues in the  category for which the proceeds relate • Taxes and fees required to be paid on tickets sales will be excluded from revenues.  For this purpose, taxes and fees only include such amounts that are in effect during  the year 2020. Application of this exclusion based on 2020 determination must be  consistently applied during the term. • Complimentary tickets where no value is received will not be included in revenues.  Complimentary tickets provided to Related Parties will be valued and included in DR. • Exchange rates to USD for formula calculation purposes and for equal prize money  allocation among tournaments will be based on a 2-year average exchange rate. • A 70% factor will be applied to combined events revenues which are not directly men  or women event revenues. • For combined events, direct men only revenues will be included in DR at 100%. Direct  women only revenues will be excluded.