Rookie Salary.

“Rookie Salary” for a Drafted Rookie means the highest amount of earnable compensation for which such player and Club have contracted in each year of his Rookie Contract regardless of whether any or all amounts are earned or considered “likely to be earned” as set forth in Article 13, excluding only (A) the Fifth-Year Option Paragraph 5 Salary described in Section 7 below, (B) the amount by which the player’s Paragraph 5 Salary may increase pursuant to the Proven Performance Escalator as described in Section 4 below, (C) minimum offseason workout per diem as set forth in Article 21, and (D) compensation for community relations/sponsor appearances (subject to the maximum amounts permitted in Section 3(b)(iv) below).

“Rookie Salary” for an Undrafted Rookie means the highest amount of earnable compensation for which such player and Club have contracted in each year of his Rookie Contract that exceeds the then-applicable Minimum Active/Inactive Salary for each League Year of the contract regardless of whether any or all amounts are earned or considered “likely to be earned” as set forth in Article 13, excluding only (A) minimum offseason workout per diem, and (B) compensation for community relations/sponsor appearances (subject to the maximum amounts permitted in Section 3(b)(iv) below).

For the purposes of calculating Rookie Salary in each year of a player’s Rookie Contract, signing bonus and amounts treated as signing bonus will be prorated on a straight-line basis pursuant to Section 3(g) below. By way of example, a Drafted Rookie who has a $1,000,000 Paragraph 5 Salary, $250,000 in signing bonus proration and a $250,000 incentive for 95% offensive playtime in each of the first four years of his contract would have a Rookie Salary in each League Year equal to $1,500,000, and Rookie Salary over the contract’s entire term of $6,000,000, regardless of whether he earns any or all of the above amounts or whether any or all of the above amounts are considered “likely to be earned.”

Year-One Rookie Salary.

“Year-One Rookie Salary” for a Drafted Rookie means the highest amount of earnable compensation for which such player and Club have contracted in the first year of his Rookie Contract regardless of whether any or all amounts are earned or considered “likely to be earned” as set forth in Article 13, excluding only (A) minimum offseason workout per diem, and (B) compensation for community relations/sponsor appearances (subject to the maximum amounts permitted in Section 3(b)(iv) below).

“Year-One Rookie Salary” for an Undrafted Rookie means the highest amount of earnable compensation for which such player and Club have contracted in the first year of his Rookie Contract that exceeds the then-applicable Minimum Active/Inactive Salary for players with zero credited seasons regardless of whether any or all amounts are earned or considered “likely to be earned” as set forth in Article 13, excluding only (A) minimum offseason workout per diem, and (B) compensation for community relations/sponsor appearances (subject to the maximum amounts permitted in Section 3(b)(iv) below).

For the purpose of calculating Year-One Rookie Salary, signing bonus and amounts treated as signing bonus will be prorated on a straight-line basis pursuant to Section 3(g) below. By way of example, a Drafted Rookie who has a $1,000,000 Paragraph 5 Salary, $250,000 in signing bonus proration and a $250,000 incentive for 95% offensive playtime in his first season would have Year-One Rookie Salary in that League Year of $1,500,000 regardless of whether he earns any or all of the above amounts in his first season or whether any or all of the above amounts are considered “likely to be earned.”

Total Rookie Compensation Pool. “Total Rookie Compensation Pool” means the League-wide limit on the total amount of Rookie Salary for which all Clubs may contract with Drafted and Undrafted Rookies over the entire term of such Rookie Contracts. By way of example, a Drafted Rookie selected in the second round who signs a four-year contract with Rookie Salary of $1,000,000 in year one, $1,100,000 in year two, $1,200,000 in year three, and $1,300,000 in year four would have $4,600,000 count against the Total Rookie Compensation Pool.

Year-One Rookie Compensation Pool. “Year-One Rookie Compensation Pool” means the League-wide limit on the total amount of Year-One Rookie Salary for which all Clubs may contract with Drafted Rookies and Undrafted Rookies in the first year of such Rookie Contracts. By way of example, a Drafted Rookie selected in the second round who signs a four-year contract with Rookie Salary of $1,000,000 in year one, $1,100,000 in year two, $1,200,000 in year three, and $1,300,000 in year four would have $1,000,000 count against the Year-One Rookie Compensation Pool.

Total Rookie Allocation. “Total Rookie Allocation” means, for each Club, its proportional share of the Total Rookie Compensation Pool, calculated based upon the number, round and position of the Club’s selection choices in the Draft, plus the Undrafted Rookie Reservation (as defined in Subsection (i) below). The sum of the Total Rookie Allocations for all Clubs shall equal the Total Rookie Compensation Pool.

Year-One Rookie Allocation. “Year-One Rookie Allocation” means, for each Club, its proportional share of the Year-One Rookie Compensation Pool, calculated based upon the number, round and position of the Club’s selection choices in the Draft plus one-third of the Undrafted Rookie Reservation (as defined in Subsection (i) below). The sum of the Year-One Rookie Allocations for all Clubs shall equal the Year-One Rookie Compensation Pool.

Year-One Formula Allotment.

“Year-One Formula Allotment” means, for each Drafted Rookie, a fraction calculated based upon the player’s round and position in the Draft and expressed as a percentage of the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation).

The (A) sum of the Year-One Formula Allotments for all of a Club’s Drafted Rookies, multiplied by the Year-One Rookie Compensation Pool (excluding compensatory selections), plus (B) one-third of the Undrafted Rookie Reservation shall equal the Club’s Year-One Rookie Allocation.

The Year-One Formula Allotment attributed to each draft selection shall be agreed to by the NFL and the NFLPA, and shall be provided to all Clubs, Rookies, and agents of Rookies.

The Year-One Formula Allotments for each non-compensatory Draft selection shall be calculated using the following steps/methodology:

• First: Determine the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) for the prior League Year and deduct from that amount the cumulative minimum salaries for players with zero Credited Seasons on a Club’s Active/Inactive List (“Minimum Salaries”) for all 224 noncompensatory draft picks (the “Year-One Pool In Excess of Minimum Salaries”) (“YOPIEMS”)) (e.g., in 2018, the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation), was $220,390,000; deduct Minimum Salaries of $107,520,000 (224 non-compensatory draft picks × $480,000) to obtain the 2018 YOPIEMS of $112,870,000 ($220,390,000 - $107,520,000).
• Second: Calculate the YOPIEMS for the current League Year (e.g., in 2019, the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) was $232,741,000; deduct Minimum Salaries of $110,880,000 (224 non-compensatory draft picks × $495,000) to obtain the 2019 YOPIEMS of $121,861,000 ($232,741,000 - $110,880,000).
• Third: Compare the current year YOPIEMS to the YOPIEMS for the prior League Year to obtain the “Growth Percentage”) e.g., in 2019, ($121,861,000 ÷ $112,870,000) = 107.9658%).
• Fourth: For each non-compensatory Draft selection from the prior League Year, identify the amount of the Year-One Rookie Allocation in Excess of Minimum Salary (“YORAIEMS”) by subtracting the minimum salary for a player with zero Credited Seasons on a Club’s Active/Inactive List (“Minimum Salary”) from the Year-One Rookie Allocation for that selection;
• Fifth: Multiply the YORAIEMS for each non-compensatory Draft Selection in the prior League Year by the Growth Percentage (as defined above) to determine the current year YORAIEMS;
• Sixth: Add the current year Minimum Salary (e.g., $495,000 in 2019) to the current year YORAIEMS to obtain the current Year-One Rookie Allocation (“YORA”) for each Draft Selection;
• Seventh: Divide each Draft selection’s YORA by the current year Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) to obtain the current year Year-One Formula Allotment.

The Year-One Formula Allotment for any compensatory selection for the 2020–2030 League Year shall be the mid-point, rounded to the nearest dollar, of the immediately preceding and the immediately following non-compensatory selections (as calculated pursuant to Subsection (A) above), except that the Year-One Formula Allotment for any compensatory selection at the end of the seventh round shall be the same as the Year-One Formula Allotment for the last selection in the seventh round.

Year-One Minimum Allotment. “Year-One Minimum Allotment” means, for each Drafted Rookie, a fraction (or such other amount to which the parties may agree) that shall equal the selection’s absolute minimum share of the Year-One Rookie Compensation Pool, calculated based upon the player’s round and position in the Draft and expressed as a percentage of the Year-One Rookie Compensation Pool. The YearOne Minimum Allotment for (i) every selection in the first and second round of the Draft, and (ii) the first twenty-six selections in the third through seventh rounds of the Draft shall equal the Year-One Formula Allotment for the final non-compensatory selection in that round. The Year-One Minimum Allotment for the twenty-seventh through the final selection in the third through seventh rounds of the Draft (excluding any compensatory selections) shall equal (A) the Year-One Formula Allotment for the final non-compensatory selection in that round minus (B) $4,000 divided by the Year-One Rookie Compensation Pool. The Year-One Minimum Allotment for any compensatory selection in each round shall equal the average of (A) the Year-One Formula Allotment for the final non-compensatory selection in that round and (B) the Year-One Formula Allotment for first selection in the succeeding round, minus (C) $4,000 divided by the Year-One Rookie Compensation Pool. The Year-One Minimum Allotment for Compensatory Draft Selections shall be altered in a manner to be agreed upon by the parties if the position of compensatory selections within each round is changed.

Undrafted Rookie Reservation. For the 2020 League Year, the maximum amount per Club that may be paid to Undrafted Rookies as signing bonus or amounts treated as signing bonus (the “Undrafted Rookie Reservation”) shall increase over the maximum amount permitted for the 2019 League Year (i.e., $109,115) by the percentage increase of the Total Rookie Compensation Pool. For the 2021 League Year, a maximum of $160,000 per Club may be paid to Undrafted Rookies as signing bonus or amounts treated as signing bonus. For the 2022 League Year and each subsequent League Year, this amount shall increase by the percentage increase of the Total Rookie Compensation Pool. For purposes of this Subsection, Total Rookie Compensation Pool shall exclude any signing bonus (including any amounts treated as signing bonus) for an Undrafted Rookie (i.e., the Pool shall exclude any amounts included in the Undrafted Rookie Reservation) and shall be adjusted to account for any forfeited Draft selections or supplemental Draft selections pursuant to Subsections 5(b)(i)-(ii) and 2(a)(vi) of this Article.

For the 2020 League Year, the Total Rookie Compensation Pool (excluding compensatory selections and the Undrafted Rookie Reservation) may not exceed $1,430,000,000. For the 2020 League Year, the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) shall equal $260,000,000.

In each of the 2021–2030 League Years, a “Baseline Year-One Pool” shall be calculated. The Baseline Year-One Pool shall be defined as the sum of: (a) the YearOne Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) for the prior League Year; and (b) the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) for the prior League Year multiplied by the percentage increase in the Salary Cap (comparing the Salary Cap in the current League Year to the Salary Cap in the prior League Year). By way of example only, if the Baseline Year-One Pool in the immediately prior League Year equals $200,000,000, and the percentage increase in the Salary Cap is 5%, then the Baseline Rookie Pool in the current League Year will equal $210,000,000 (i.e., $200,000,000 plus $10,000,000 ($200,000,000 multiplied by 0.05)).

In each of the 2021-2030 League Years, a “Minimum Year-One Pool Increase” shall be calculated. The Minimum Year-One Pool Increase shall be defined as the sum of: (a) the 224 non-compensatory draft picks multiplied by the annual increase in the Minimum Salary of a player on a Club's Active/Inactive List with zero Credited Seasons; and (b) one percent of the YOPIEMS for the prior League Year, as defined in Section 1(g)(iii)(A) above. By way of example, if the YOPIEMS for the prior League Year equal $150 million, one percent of the YOPIEMS for the prior League Year equals $1.5 million, and will be included in (but not added to) the current year’s Minimum Year-One Pool Increase. By way of further example: if one percent of the YOPIEMS for a prior League Year equals $1.5 million, then for years in which the Minimum Salary of a player on a Club’s Active/Inactive List with zero Credited Seasons grows by $45,000, the Minimum Year-One Pool Increase is $11.58 million (i.e., $45,000 multiplied by 224 equals $10.08 million, plus $1.5 million); for years in which the aforementioned Minimum Salary growth is $50,000, the Minimum Year One Pool Increase is $12.7 million (i.e., $50,000 multiplied by 224 equals $11.2 million, plus $1.5 million).

In each of the 2021–2030 League Years, the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) shall increase each League Year to the greater of (i) the Baseline Year-One Pool or (ii) the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) in the prior League Year plus the Minimum Year-One Pool Increase.

In each League Year in which the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) increases by the Minimum Year-One Pool Increase, an amount equal to: (a) the prior League Year’s Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) plus the Minimum Year-One Pool Increase (as calculated in the examples in Subsection 2(a)(iii) above); (b) minus the Baseline Year-One Pool, shall be included in the “Rookie Pool Bank” and carried forward, with Interest, and shall be applied to reduce the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) in any future League Year(s), provided that: (1) the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) may never increase by less than the Minimum Year-One Pool Increase; (2) the Year-One Rookie Compensation Pool In Excess of Minimum Salaries (also referred to as “YOPIEMS”) shall not be less than one hundred and one percent (101%) of the YOPIEMS in the prior League Year; and (3) the parties may agree to defer application of some or all of the Rookie Pool Bank in a League Year in which it otherwise could apply.

In the event of a forfeited selection in a Draft, the bank calculated pursuant to this Section shall be reduced by an amount equal to: (A) the Year-One Formula Allotment for that forfeited selection; multiplied by (B) the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation). The Formula Allotments for these forfeited selections shall not be included in the respective Club’s Year-One Rookie Allocation or Total Rookie Allocation for the applicable League Year. For the avoidance of doubt, because of the forfeited selection, for the applicable League Year, the sum of the Year-One Rookie Allocations for all Clubs shall be less than the Year-One Rookie Compensation Pool, and the sum of the Total Rookie Allocations for all Clubs shall be less than the Total Rookie Compensation Pool.

In each of the 2021–2030 League Years, excluding compensatory selections and the Undrafted Rookie Reservation, the Total Rookie Compensation Pool in each League Year shall be the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) multiplied by 5.5 (e.g., the ratio between the 2020 Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) of $260,000,000 and the 2020 Total Rookie Compensation Pool (excluding compensatory selections and the Undrafted Rookie Reservation) of $1,430,000,000).

All amounts of Rookie Salary contracted for in each and every year of a Club’s Rookie Contracts shall count against the Total Rookie Compensation Pool and the Club’s Total Rookie Allocation whether or not such amounts are earned by the player or considered “likely to be earned” as set forth in Article 13.

All amounts of Year-One Rookie Salary shall count against the Year-One Rookie Compensation Pool, the Club’s Year-One Rookie Allocation and the Total Rookie Compensation Pool, whether or not such amounts are earned by the players or considered “likely to be earned” as set forth in Article 13.

No Club may enter into Rookie Contracts that, standing alone or in the aggregate, provide for Year-One Rookie Salary that would exceed the Club’s Year-One Rookie Allocation for that League Year. No Club may enter into Rookie Contracts with Drafted Rookies that, standing alone or in the aggregate, provide for Year-One Rookie Salary that would exceed the (i) Club’s Year-One Rookie Allocation for that League Year, minus (ii) one-third of the Undrafted Rookie Reservation (i.e., one-third of the amount calculated pursuant to Subsection 1(i) above).

No Club may enter into Rookie Contracts that, standing alone or in the aggregate, provide for aggregate Rookie Salary over all years of such Contracts that would exceed the Club’s Total Rookie Allocation. No Club may enter into Rookie Contracts with Drafted Rookies that, standing alone or in the aggregate, provide for Rookie Salary that would exceed (i) the Club’s Total Rookie Allocation for that League Year, minus (ii) the Undrafted Rookie Reservation.

A Club may not sign a Drafted Rookie for Year-One Rookie Salary that is less than the player’s Year-One Minimum Allotment multiplied by the Year-One Rookie Compensation Pool.

Notwithstanding the above, nothing shall prevent a Club from signing a player for an amount in excess of his Year-One Formula Allotment multiplied by the League-wide Year-One Rookie Compensation Pool, or his Year-One Minimum Allotment multiplied by the Year-One Rookie Compensation Pool, provided that the Club has Room available under its Year-One Rookie Allocation.

In the event that a Rookie signs his Rookie Contract after the commencement of the regular season, the Club must maintain Room under its Year-One Rookie Allocation of at least the Rookie’s Year-One Minimum Allotment multiplied by the YearOne Rookie Compensation Pool.

All Rookie Contracts entered into by a Club and a Drafted or Undrafted Rookie shall be subject to the provisions of Article 14 of this Agreement.

Any contract that violates the intent of any provision of this Article shall be disapproved. It is the intent of the parties to set an absolute maximum limit on the total amount of compensation contracted for by Drafted and Undrafted Rookies in each Draft class over the entire term of the players’ Rookie Contracts. If a contract signed by a Drafted or Undrafted Rookie is disapproved by the Commissioner as being inconsistent with the provisions of this Article in respect of (i) the mandatory term (length) of the contract; (ii) permissible compensation pursuant to (1) the Year-One Rookie Compensation Pool, (2) the Total Rookie Compensation Pool, (3) the Club’s Year-One Rookie Allocation, (4) the Club’s Total Rookie Allocation, (5) the 25% Increase Rule, (6) the player’s Year-One Minimum Allotment, (7) the Fifth Year Option, (8) the Proven Performance Escalator, or (9) the limit on the player’s permissible nonfootball compensation; or (iii) guarantees; the disapproval shall be upheld by the System Arbitrator and the Appeals Panel unless clear and convincing evidence demonstrates that the decision to disapprove the contract was incorrect.

None of the provisions of this Article shall affect a Club’s need for Room under the Salary Cap to sign a Rookie Contract or the accounting rules governing the Salary Cap set forth in Article 13.

Contract Length. Every Rookie Contract shall have a fixed and unalterable contract length: (i) four years for Rookies selected in the first round of the Draft, with a Club option for a fifth year as described in Section 7 below; (ii) four years for Rookies selected in rounds two through seven of the Draft (including any compensatory draft selections); and (iii) three years for Undrafted Rookies.

Compensation Terms.

Subject to Subsection (iv) below, Rookies drafted in the first round may contract for only the following types of compensation: (1) Rookie Salary, (2) minimum offseason workout per diem commencing in the contract’s second season; and (3) the Fifth-Year Option as described in Section 7 below. Rookies drafted in the second through seventh rounds may contract for only the following types of compensation: (1) Rookie Salary, (2) minimum offseason workout per diem commencing in the contract’s second season; and (3) the Proven Performance Escalator as described in Section 4 below. (ii) Subject to Subsection (iv) below, Undrafted Rookies may contract for only the following types of compensation: (1) Rookie Salary, (2) minimum offseason workout per diem commencing in the contract’s second season, and (3) the applicable Minimum Salary for players on the Club’s Active/Inactive List Salary and/or the applicable Minimum Salary for players not on the Club’s Active/Inactive List.

Rookie Salary shall include only: (1) traditional signing bonus, defined as signing bonus committed to the player by the Club upon execution of the contract (subject to the player reporting to the Club and passing the physical examination), subject to any forfeiture provisions to which the player and Club may agree to the extent permitted in Article 4; (2) offseason workout bonus; (3) Paragraph 5 Salary (including any agreed-upon provisions adjusting the player’s Paragraph 5 Salary based upon his roster status and/or his number of Credited Seasons (“split contract provisions”) or deferring payment of his earned Paragraph 5 Salary or advancing payment of non-guaranteed year-one Paragraph 5 Salary); (4) Paragraph 5 Salary guarantees (subject to the rules set forth in Subsection (h) below); (5) the permitted performance incentives set forth in Section 6 below; (6) roster bonus; and (7) reporting bonus.

Other Permissible Terms.

All Rookie Contracts shall use the standard-form Player Contract described in Article 4 and set forth in Appendix A of this Agreement and may contain minimum offseason workout per diem commencing in the contract’s second season. Rookie Contracts for players drafted in round one shall contain the Fifth-Year Option described in Section 7 below. Rookie Contracts for players drafted in rounds two through seven shall contain the Proven Performance Escalator described in Section 4 below. A Rookie Contract may also contain non-compensation terms relating to: (1) player appearances/promotions; (2) workers’ compensation issues; (3) waivers of Club liability for preexisting injuries/physical conditions; (4) forfeiture of compensation and/or of guarantees to the extent permitted in Article 4; (5) deduction or repayment of advanced nonguaranteed year-one Paragraph 5 Salary; (6) insurance policies; (7) tax implications; (8) confidentiality (subject to Article 26); (9) the severability of unenforceable contract terms; (10) legal/contractual interpretation issues; (11) representations and warranties that at the time the contract is executed, no circumstances exist that would prevent the player’s continuing availability to the Club for the duration of the contract; (12) waiver of a Club’s right to enforce any of the terms of Paragraph 3 of the NFL Player Contract; and (13) waiver of a Club’s rights regarding the designations of, or the Required Tender amounts for, Franchise or Transition Players. With the sole exception of the compensation terms that appear in Subsection (b) above, the other permissible terms that appear in this Subsection, and, if applicable, the Proven Performance Escalator in Section 4 and the FifthYear Option in Section 7 of this Article, any other contract terms will be deemed null and void ab initio unless the parties to this Agreement agree otherwise.

Without limitation on any other operation or interpretation of Section 3(c) of this Article (Other Permissible Terms), any Rookie Contracts executed on or after April 24, 2018 may not contain any individually negotiated provision that:

grants a Club the unilateral right to convert any form of Salary to signing bonus (i.e., “automatic conversion” provisions are prohibited);

conditions a player’s entitlement to earn any performance incentive described in Section 6 of this Article (Performance Incentives) upon (i) being in a particular roster category (e.g., Active/Inactive, Reserve/Injured, etc.) on any particular date; or (ii) the applicability or priority of statistical sources listed or enumerated in the contract provision;

prohibits a player from performing services for any other team or in any other sport (i.e., “exclusive services” provisions are prohibited);

prohibits a player from engaging in conduct that would constitute a violation of the NFL Anti-Tampering Policy by any NFL Club; or

conditions the formation and binding effect of a player’s Rookie Contract upon his ability to pass a physical examination administered by the Club Physician; provided, however, that nothing shall prohibit a Club and a player from agreeing that the player’s entitlement to receive a signing bonus is subject to the player reporting to the Club and passing a physical examination.

The NFLMC will provide Clubs with the sample language set forth below, which Clubs may individually negotiate with players for inclusion in Rookie Contracts, and which the NFLPA agrees that it would not challenge if such language is included without modification or addition in a Rookie Contract; and Clubs and players remain free to negotiate other CBA-compliant language, but the NFLPA reserves its position that no other language would comply with this Agreement, and the NFLMC and the NFLPA reserve their respective rights concerning the enforceability of any other non-compensation terms in such contracts:

Deduction and Setoff: In addition to any other deductions permitted by the NFL Collective Bargaining Agreement and this Contract, Player hereby expressly authorizes and directs Club to deduct from any payment coming due to Player under this Contract all or any part of: (i) any advance of non-guaranteed year-one Paragraph 5 Salary made to Player; and (ii) any charges incurred by Player for goods and services provided by Club, e.g., without limitation game tickets, mail services, and any similar items. Player shall provide Club with written notice (email to the Club’s payroll department shall suffice) of any dispute regarding such charges, which shall be resolved within three business days. The assignment and/or termination of Player’s Contract shall not result in waiver of Club’s right to seek to recover the full amount of any such advanced salary or reimbursement for such goods or services;

Marketing and Endorsements: Player acknowledges that Club has significant relationships with sponsors and media partners. Player shall work and cooperate with Club to support and enhance those relationships as provided herein, and shall participate in media and sponsorship activities as follows:

Player and Club agree to work with one another in good faith, as reasonably requested by Club, with respect to Club media and marketing activities and, where Player reasonably determines it is appropriate and possible to do so, Player agrees to use all reasonable efforts to pursue media and marketing relationships with Club’s sponsors and media partners;

Player shall also, in cooperation with Club, use all reasonable efforts to pursue media and marketing agreements with Club sponsors and media partners, before commencing negotiations with any competitor of any Club sponsor or media partner. If Player does not reach a mutually acceptable commercial agreement with a Club sponsor or media partner after engaging in good faith negotiations to reach such an agreement, or such negotiations are determined in good faith to be futile, Player shall notify the Club, and shall thereafter be free to commence negotiations and reach agreements with competitors of the applicable Club sponsors or media partners;

Player agrees not to engage in any sponsorship or endorsement activity, other than through Club, that would reasonably imply Club’s sponsorship, approval or involvement, including by way of example, any use of any of Club’s names, marks, logos, uniform designs or symbols;

Player agrees to provide Club with the name and contact information of his Primary Marketing Representative and to keep the Club up to date with respect to any changes to his marketing representation;

This paragraph (B) shall have no application to any current sponsorship, promotion, media or endorsement agreement of Player already in effect as of the date of this Contract, or as of the date of any assignment of this Player Contract by trade or waiver to another Club;

In no event shall Player be obligated pursuant to this paragraph to engage in any marketing or media activity that Player reasonably determines is not in his best interests; provided, however, that player shall participate in all other marketing or media activities, as provided herein, as reasonably requested by Club;

Player’s obligations hereunder shall be subject to the provisions of the NFLPA Group Licensing Program; and

The rights granted to Club under this paragraph are incremental to and shall not be construed to limit any other rights granted to Club under this Contract.

Physical Examinations: Player agrees to undergo any physical examination requested in good faith by the Club Physician in connection with: (i) the treatment or rehabilitation of any football-related injury or any non-football-related injury or illness; or (ii) the purchase of any policy of insurance by club, the NFL, or Player to cover Player’s inability to perform services required by his Player Contract, or any claim filed with the carrier under such policy;

Medical Information and Treatment: Player represents to Club that he is and will maintain himself in excellent physical condition. Player will undergo a complete physical examination by the Club Physician upon Club request, during which physical examination Player agrees to make full and complete disclosure of any physical or mental condition known to him which might impair his performance under this Contract and to respond fully and in good faith when questioned by the Club Physician about such condition; and

Representations and Warranties: By executing this Contract, Player hereby represents and warrants that, as of the date hereof, no circumstances exist that would prevent Player’s continuing availability to the Club for the duration of this Contract, except as otherwise disclosed to Club in writing.

Nothing in Subsections 3(c)(ii) or (iii) of this Article will add to, subtract from, or alter in any way the terms of the standard NFL Player Contract.

Reasonably prior to the initiation of a grievance or proceeding alleging a violation of Subsection 3(c) of this Article, the NFLMC and the NFLPA shall confer in person or by telephone to attempt to negotiate a resolution of the dispute.

With respect to Rookie Contracts executed prior to April 24, 2018, (i) any non-compensation term that is prohibited by Section 3(c)(ii) of this Article shall be deemed null and void ab initio; and (ii) the NFLMC and the NFLPA reserve their respective rights concerning the enforceability of any other non-compensation term in such contracts.

In any proceeding regarding the enforceability of any non-compensation term other than the terms that are alleged to be prohibited by Subsection 3(c)(ii), or authorized by Subsection 3(c)(iii), such provisions (i.e., Subsections 3(c)(ii) and (iii)) may not be referenced in any way in support of or in opposition to any argument that a non-compensation term is prohibited or authorized by Article 7, Section 3(c).

Prohibited Terms. The following contract provisions are prohibited in a Rookie Contract: option bonuses, option exercise fees, option nonexercise fees, Salary advances (other than advances of non-guaranteed year-one Paragraph 5 Salary as described in Subsection (b)(iii)(3) above), voidable year(s) provisions, buybacks of voidable year(s) provisions, and any “contract within the contract” (i.e., terms and conditions of a contemplated superseding contract within the Rookie Contract).

25% Increase Rule. No Rookie Contract may provide for an annual increase of more than 25% of the player’s Year-One Rookie Salary unless such contract provides only for Paragraph 5 Salary equal to the then-applicable Minimum Active/Inactive Salary for each League Year of the Contract. By way of example, if a player drafted in the second round signs a four-year contract with a $400,000 signing bonus, a $500,000 Paragraph 5 Salary, and no performance incentives in his first season, the player’s YearOne Rookie Salary will equal $600,000, i.e., the prorated portion of his signing bonus ($100,000) plus his Paragraph 5 Salary ($500,000). Accordingly, the player’s maximum annual increase in Rookie Salary may not exceed $150,000 ($600,000 × 25%).

All Salary Included in Calculations. All Rookie Salary shall count toward the Total Rookie Compensation Pool, the Year-One Rookie Compensation Pool, the Club’s Year-One Rookie Allocation, the Club’s Total Rookie Allocation, and the 25% Increase Rule.

Signing Bonus Proration. The total amount of any signing bonus, or amount treated as signing bonus, shall be prorated over the term of the Rookie Contract, with a maximum proration of four years, on a straight-line basis beginning in the first year of the player’s contract, such that each contract year (excluding year five for players selected in round one of the draft) shall have an equal prorated amount, and such equal prorated amount shall count in the calculation of Rookie Salary and against the Total Rookie Compensation Pool for that Draft class and the Club’s Total Rookie Allocation in each League Year of the contract. The amount prorated in the player’s first contract year shall count in the calculation of Year-One Rookie Salary and against the Year-One Rookie Compensation Pool for that Draft class and the Club’s Year-One Rookie Allocation.

Guaranteed Rookie Salary. Rookie Salary (excluding the performance incentives described in Section 6 below) may be guaranteed for skill, football-related injury and/or Salary Cap-related contract terminations, provided, however, that no player’s Rookie Salary (excluding performance incentives) in his third League Year or fourth League Year (for Drafted Rookies) may be guaranteed for skill, football-related injury or Salary Cap-related contract termination unless the player’s entire Rookie Salary (excluding performance incentives) has been similarly guaranteed (i.e., for the same type(s) of contract termination) in the immediately preceding year of the contract. By way of example, if a Drafted Rookie signs a four-year contract with Rookie Salary (excluding performance incentives) of $1,000,000 in year one, $1,250,000 in year two, $1,500,000 in year three, and $1,750,000 in year four, no portion of his year-four Rookie Salary may be guaranteed for skill and injury unless the player’s full Rookie Salary (excluding performance incentives) for year two ($1,250,000) and year three ($1,500,000) is also guaranteed for skill and injury. For the avoidance of doubt, and by way of further example, a Club may guarantee yearfour Rookie Salary for injury only when the Club also guarantees years two and three either just for injury, or for injury, skill, and Salary Cap-related termination.

No Contingencies.

A player’s Rookie Salary, as well as all other mandatory or permissible contract terms (including, but not limited to, length of the contract and Salary guarantees), may not change based upon any contingency (e.g., without limitation, roster condition, offseason workout participation, playtime, honors, team or individual performance, the player’s earning or not earning specific compensation, or the Club’s decision to forgo the exercise of any contract rights). By way of example, if the player fails to earn a $100,000 incentive applicable to the second year of his contract, the unearned amount cannot be added to a $100,000 incentive applicable to the third year of his contract, thereby resulting in a $200,000 incentive.

Without limitation on any other operation or interpretation of this Subsection 3(i), no Rookie Contract may contain any provision that: (1) any workout bonus is contingent upon the player participating in any minicamps and/or mandatory minicamps, timely reporting to training camp, and/or being on the roster at the start and/or end of the offseason workout program or on any particular date(s); (2) any roster bonus is contingent upon the player participating in any minicamps and/or mandatory minicamps, timely reporting to training camp, and/or completion of or any participation in the club’s offseason workout program; and/or (3) any reporting bonus is contingent upon the player participating in any minicamps and/or mandatory minicamp, completion of or any participation in the club’s offseason workout program, and/or being on the Club’s roster at the start and/or end of the offseason workout program or on any particular date(s). The preceding prohibition applies regardless of the League Year in which the bonus and/or any contingency applies, and whether the bonus and any contingency are in the same League Year or different League Years. The Commissioner shall disapprove pursuant to Subsection 2(j) above and Article 4, Section 6 of this Agreement, any Rookie Contract including any such provision.

Nothing in this Article is intended to limit the right of a Club and player to agree to circumstances in which roster, or reporting bonuses may be forfeitable in accordance with Article 4, Section 9, nor is anything in this Article is intended to limit provisions for Player Contracts other than Rookie Contracts. For the avoidance of doubt, nothing in this Article is intended to prohibit Clubs and players from agreeing to (1) the workout conditions that must be satisfied for a player to earn a workout bonus (e.g., percentage of workouts, etc.), (2) the roster condition and date that must be satisfied for a player to earn a roster bonus (e.g., Active/Inactive roster on the first day of the regular season), or (3) the date and time by which the player must report to the Club to earn a reporting bonus (e.g., timely reports to the first day of preseason training camp).

Aside from the terms outlined in Subsections (i) through (iii), above, no cash or non-cash financial or economic consideration of any kind (e.g., suites, automobiles, loans, etc.) may be paid or promised to the player for any reason whatsoever including, but not limited to, the player’s performance of nonfootball-related services with the exception of an agreement that the player will make up to, but no more than, five community relations/sponsor appearances or promotional activities per year on the Club’s behalf in exchange for cash compensation at prevailing commercial rates not to exceed $6,500 per appearance for the 2020-25 League Years, and not to exceed $9,000 per appearance for the 2026-30 League Years. In addition, whether or not the Club elects to provide the player with cash compensation for any individual appearance, to the extent the player incurs out-of-pocket expenses (e.g., parking fees, etc.) in connection with such appearance, the Club may provide the player with cash reimbursement for such reasonable out-of-pocket expenses upon the player’s submission of a written expense report satisfactory to Club and applicable receipts. The Club may also provide the player with cash reimbursement for actual mileage incurred, as approved by the Club, at the standard mileage rate in effect for the applicable period as published by the Internal Revenue Service. Clubs may not contract for, or require the player to make more than five community relations/sponsor appearances or promotional activities per year.

For any Rookie Contract executed during the term of this Agreement, the player and the Club may agree to include a provision governing player appearances in the Rookie Contract at the time of its execution by the parties; or if the player and the Club do not elect to include a provision governing player appearances at the time of the contract’s execution, any player appearances made by the player under his Rookie Contract shall be deemed to have been made under Appendix R to this Agreement.

Release or Trade of Drafted Rookies. (i) If a Drafted Rookie is released prior to signing a Player Contract (i.e., the Club withdraws its Tender), the Club’s YearOne Rookie Allocation will be reduced by the released player’s Year-One Minimum Allotment multiplied by the Year-One Rookie Compensation Pool. In the event that a Draft selection (i.e., a draft slot) is assigned to another Club prior to completion of the Draft, the amount of the Year-One Formula Allotment for such selection shall be assigned to the Club receiving the selection. A Club may not assign the exclusive negotiating rights to a Drafted Rookie to another Club if such new Club does not have Room under its YearOne Rookie Allocation equal to at least the original Year-One Minimum Allotment for the player multiplied by the Year-One Rookie Compensation Pool. The New Club will not receive any additional Room in its Year-One Rookie Allocation or Total Rookie Allocation.

If a Drafted Rookie is released by the drafting Club after signing his initial contract and such player re-signs with the same Club at any point during the League Year in which he was drafted, the signing Club may not enter into a contract with the player for more than the Year-One Rookie Salary set forth in the first year of the player’s initial contract with the Club, less any amounts the player earned under his initial contract before his release, and the player’s Contract cannot provide for an annual increase in Salary (as defined in Article 13) of more than 25% of the Year-One Rookie Salary in his initial Rookie Contract.

Renegotiations.

A Rookie Contract for a Drafted Rookie may not be renegotiated, amended or altered in any way until after the final regular season game of the player’s third contract year.

A Rookie Contract for an Undrafted Rookie may not be renegotiated, amended or altered in any way until after the final regular season game of the player’s second contract year.

For the avoidance of doubt, any permissible renegotiated or extended Player Contract shall not be considered a Rookie Contract, and shall not be subject to the rules that limit Rookie Contracts.

Subject to the phase-in rules and restrictions set forth in Subsection 4(c) below, the Proven Performance Escalator is mandatory for Rookies drafted in the second through seventh rounds. Rookies drafted in the first round and Undrafted Rookies are not eligible to earn the Proven Performance Escalator.

The Proven Performance Escalator is a three-level (“Level One”, “Level Two”, and “Level Three”) non-negotiable amount by which an eligible player’s year-four Paragraph 5 Salary may escalate provided the player achieves the applicable qualifier set forth in Subsection (d) below. An eligible player who would otherwise qualify for more than one of the Level One, Level Two, and Level Three escalators shall receive only the highest such escalator. No player may receive more than one escalator. The Proven Performance Escalator shall be deemed a part of every Rookie Contract of a player selected in the second through seventh rounds by virtue of this Agreement and may not be separately attached to such Rookie Contract.

Notwithstanding anything to the contrary in this Article and for the avoidance of doubt, the Proven Performance Escalator, as defined in Subsection 4(b) above, shall be subject to the following phase-in rules and restrictions:

The Level One, Level Two and Level Three Proven Performance Escalators for Rookies drafted in the second round shall begin to apply to players who were selected in the 2018 Draft, such that any escalation of the player’s Paragraph 5 Salary shall occur in the 2021 League Year. Players who were selected in the second round of any Draft prior to the 2018 Draft are not eligible to earn the Level One, Level Two or Level Three Escalators.

The Level One Proven Performance Escalator for Rookies drafted in the third through seventh rounds shall begin to apply to players who were selected in the 2017 Draft, such that any escalation of the player’s Paragraph 5 Salary shall occur in the 2020 League Year.

The Level Two and Level Three Proven Performance Escalators for players selected in the third through seventh rounds shall begin to apply to players who were selected in the 2018 Draft, such that any escalation of the player’s Paragraph 5 Salary shall occur in the 2021 League Year. Players who were selected in the third through seventh rounds of any Draft prior to the 2018 Draft are not eligible to earn the Level Two or Level Three Escalators.

Qualifiers.

An eligible player selected in the second round will qualify for the Level One Proven Performance Escalator in his fourth League Year if: (1) he participated in a minimum of 60% of his Club’s offensive or defensive plays in any two of his first three regular seasons; or (2) he participated in a “cumulative average” of at least 60% of his Club’s offensive or defensive plays over his first three regular seasons (“Cumulative average” means the sum of the total number of offensive or defensive plays in which the player participated over the applicable seasons, divided by the sum of the Club’s offensive or defensive plays during the same seasons. By way of example, if a player participates in 450 of the Club’s 1,000 offensive plays in his first season, 650 of the Club’s 1,000 plays in his second season, and 700 of the Club’s 1,000 plays in his third season for a total of 1,800 plays out of a possible 3,000, the cumulative average would equal 60%).

An eligible player selected in the third through seventh rounds will qualify for the Level One Proven Performance Escalator in his fourth League Year if: (1) he participated in a minimum of 35% of his Club’s offensive or defensive plays in any two of his first three regular seasons; or (2) he participated in a “cumulative average” of at least 35% of his Club’s offensive or defensive plays over his first three regular seasons. “Cumulative average” means the sum of the total number of offensive or defensive plays in which the player participated over the applicable seasons, divided by the sum of the Club’s offensive or defensive plays during the same seasons. By way of example, if a player participates in 250 of the Club’s 1,000 offensive plays in his first season, 350 of the Club’s 1,000 plays in his second season, and 450 of the Club’s 1,000 plays in his third season for a total of 1,050 plays out of a possible 3,000, the cumulative average would equal 35%.

An eligible player selected in the second through seventh rounds will qualify for the Level Two Proven Performance Escalator in his fourth League Year if he participated in a minimum of 55% of his Club’s offensive or defensive players in each of his first three regular seasons.

An eligible player selected in the second through seventh rounds will qualify for the Level Three Proven Performance Escalator in his fourth League Year if he was selected to one or more Pro Bowls on the original ballot in any of his first three seasons.

Amount.

For players selected in the 2017 Draft, the Level One Proven Performance Escalator under Subsection (d)(ii) above shall equal the difference between (i) the amount of the Restricted Free Agent Qualifying Offer for a Right of First Refusal Only as set forth in, or as calculated in accordance with, Article 9 for the League Year in such player’s fourth season and (ii) the player’s year-four Rookie Salary (excluding signing bonus and amounts treated as signing bonus). The resulting amount shall be added to the stated amount of the player’s year-four Paragraph 5 Salary. By way of example, if a rookie drafted in round three of the 2017 Draft has a year-four Rookie Salary of $2,150,000 (consisting of $1,400,000 in Paragraph 5 Salary, $600,000 in signing bonus proration, $100,000 in an incentive, and a $50,000 roster bonus), and the 2020 Restricted Free Agent Qualifying Offer for a Right of First Refusal Only equals $2,125,000, then, upon achieving the qualifier, the player’s stated Paragraph 5 Salary ($1,500,000) shall increase by $575,000 (i.e., $2,125,000 minus (1) the $1,400,000 Paragraph 5 Salary, (2) the $100,000 incentive, and (3) the $50,000 roster bonus). As a result, the player’s total earnable Salary in the 2020 League Year (minus his signing bonus proration) shall be $2,125,000, consisting of the player’s $1,975,000 Paragraph 5 Salary (as escalated), his $100,000 incentive, and his $50,000 roster bonus.

For players selected in the 2018 or any subsequent Draft, the Level One Proven Performance Escalator under Subsections (d)(i) and (ii) above shall equal the difference between (i) the dollar amount of the Restricted Free Agent Qualifying Offer for a Right of First Refusal and Draft Selection at Player’s Original Draft Round as set forth in, or as calculated in accordance with, Article 9 for the League Year in such player’s fourth season and (ii) the player’s year-four Rookie Salary (excluding signing bonus and amounts treated as signing bonus). The resulting amount shall be added to the stated amount of the player’s year-four Paragraph 5 Salary. By way of example, if a rookie drafted in round two of the 2018 Draft has a year-four Rookie Salary of $2,550,000 (consisting of $1,500,000 in Paragraph 5 Salary, $900,000 in signing bonus proration, $100,000 in an incentive, and a $50,000 roster bonus), and the 2021 Restricted Free Agent Qualifying Offer for a Right of First Refusal and Draft Selection at Player’s Original Draft Round equals $2,400,000, then, upon achieving the qualifier, the player’s stated Paragraph 5 Salary ($1,500,000) shall increase by $750,000 (i.e., $2,400,000 minus (1) the $1,500,000 Paragraph 5 Salary, (2) the $100,000 incentive, and (3) the $50,000 roster bonus). As a result, the player’s total earnable Salary in the 2021 League Year (minus his signing bonus proration) shall be $2,400,000, consisting of the player’s $2,250,000 Paragraph 5 Salary (as escalated), his $100,000 incentive, and his $50,000 roster bonus.

The Level Two Proven Performance Escalator under Subsection (d)(iii) above shall equal the difference between (i) the dollar amount of the Restricted Free Agent Qualifying Offer for a Right of First Refusal and Draft Selection at Player’s Original Draft Round as set forth in, or as calculated in accordance with, Article 9 for the League Year in such player’s fourth season, plus $250,000 and (ii) the player’s year-four Rookie Salary (excluding signing bonus and amounts treated as signing bonus). The resulting amount shall be added to the stated amount of the player’s year-four Paragraph 5 Salary. By way of example, if a rookie drafted in round two of the 2018 Draft has a year-four Rookie Salary of $2,550,000 (consisting of $1,500,000 in Paragraph 5 Salary, $900,000 in signing bonus proration, $100,000 in an incentive, and a $50,000 roster bonus), and the 2021 Restricted Free Agent Qualifying Offer for a Right of First Refusal and Draft Selection at Player’s Original Draft Round, plus $250,000, equals $2,650,000, then, upon achieving the qualifier, the player’s stated Paragraph 5 Salary ($1,500,000) shall increase by $1,000,000 (i.e., $2,650,000 minus (1) the $1,500,000 Paragraph 5 Salary, (2) the $100,000 incentive, and (3) the $50,000 roster bonus). As a result, the player’s total earnable Salary in the 2021 League Year (minus his signing bonus proration) shall be $2,650,000, consisting of the player’s $2,500,000 Paragraph 5 Salary (as escalated), his $100,000 incentive, and his $50,000 roster bonus.

The Level Three Proven Performance Escalator under Subsection (d)(iv) above shall equal the difference between (i) the dollar amount of the Restricted Free Agent Qualifying Offer for a Right of First Refusal and One Second Round Draft Selection set forth in, or as calculated in accordance with, Article 9 for the League Year in such player’s fourth season and (ii) the player’s year-four Rookie Salary (excluding signing bonus and amounts treated as signing bonus). The resulting amount shall be added to the stated amount of the player’s year-four Paragraph 5 Salary. By way of example, if a rookie drafted in round two of the 2018 Draft has a year-four Rookie Salary of $2,550,000 (consisting of $1,500,000 in Paragraph 5 Salary, $900,000 in signing bonus proration, $100,000 in an incentive, and a $50,000 roster bonus), and the 2021 Restricted Free Agent Qualifying Offer for a Right of First Refusal and One Second Round Draft Selection equals $3,900,000, then, upon achieving the qualifier, the player’s stated Paragraph 5 Salary ($1,500,000) shall increase by $2,250,000 (i.e., $3,900,000 minus (1) the $1,500,000 Paragraph 5 Salary, (2) the $100,000 incentive, and (3) the $50,000 roster bonus). As a result, the player’s total earnable Salary in the 2021 League Year (minus his signing bonus proration) shall be $3,900,000, consisting of the player’s $3,750,000 Paragraph 5 Salary (as escalated), his $100,000 incentive, and his $50,000 roster bonus.

The amount by which a player’s Paragraph 5 Salary may increase pursuant to this section shall not be considered Rookie Salary and shall not count toward the Total Rookie Compensation Pool, the Club’s Total Rookie Allocation, or the 25% Increase Rule. (g) No portion of the Proven Performance Escalator may be guaranteed for skill, football-related injury or Salary Cap-related contract termination either before or after the player has achieved the qualifiers for the Escalator.

If, pursuant to Article 6, Section 2 and/or Article 10, Section 12, a Club has one or more Compensatory Draft Selections, an amount shall be added to the Club’s Year-One Rookie Allocation, the Club’s Total Rookie Allocation, the Total Rookie Compensation Pool, and the Year-One Rookie Compensation Pool, based upon a Year-One Formula Allotment to be agreed upon by the NFL and the NFLPA. In the event that a Club signs a Player Contract with a Drafted Rookie who was drafted in a prior League Year, an additional amount shall be added to that Club’s Year-One Rookie Allocation, and to the Year-One Rookie Compensation Pool, equal to the lower of (i) the Player’s YearOne Formula Allotment multiplied by the Year-One Rookie Compensation Pool in the League Year in which the player was drafted or (ii) the amount of unused Room under the Club’s Year-One Rookie Allocation for the League Year in which the player was drafted. A corresponding amount shall also be added to that Club’s Total Rookie Allocation and to the Total Rookie Compensation Pool, based upon the amount described above. Notwithstanding the above, the Drafted Rookie’s Year-One Minimum Allotment multiplied by the Year-One Rookie Compensation Pool will continue to count against the Club’s Year-One Rookie Allocation in the year the player was drafted.

In the event that the NFL holds a Supplemental Draft in addition to its annual Draft, adjustments shall be made to the Total Rookie Compensation Pool, YearOne Rookie Compensation Pool, the Club’s Total Rookie Allocation and the Club’s YearOne Rookie Allocation as follows:

The Rookie Allotment for a Supplemental Draft Selection shall be the same amount as the Rookie Allotment for that round and selection in that League Year’s regular Draft. If any Club makes a selection in the Supplemental Draft, then that Club’s Year-One Rookie Allocation shall be deemed increased by an amount equal to the Rookie Allotment for such selection, and the Year-One Rookie Compensation Pool and Total Rookie Compensation Pool for that League Year shall be deemed to have a corresponding increase.

For any such Supplemental Draft selection: (A) if the Rookie Allotment corresponding to where the Club would have been selecting in that round in the next League Year’s Draft is less than the Rookie Allotment afforded the Club for that Supplemental Draft selection, then the difference shall be added to the Rookie Pool Bank calculated pursuant to Subsection 2(a)(iv) of this Article (so that, in a future League Year, the Year-One Rookie Compensation Pool can be decreased by that difference (thereby also reducing the Total Rookie Compensation Pool)); or (B) if the Rookie Allotment corresponding to where the Club would have been selecting in that round in the next League Year’s Draft is greater than the Rookie Allotment afforded the Club for the Supplemental Draft selection, then the difference shall be subtracted from the Rookie Pool Bank calculated pursuant to Subsection 2(a)(iv) of this Article (so that, in a future League Year, the Year-One Rookie Compensation Pool can be increased by that difference (thereby also increasing the Total Rookie Compensation Pool)); further provided that if there is otherwise no Rookie Pool Bank pursuant to Subsection 2(a)(iv) of this Article, then: (C) in any League Year prior to the Final League Year, the amount of the difference shall be placed in a “Supplemental Draft bank” as either a positive amount (in the case of a difference under (A) above) or a negative amount (in the case of a difference under (B) above) to be carried forward, with Interest, and applied to the Year-One Rookie Compensation Pool in the Final League Year unless the Parties agree otherwise; (D) in the Final League Year, the amount of any such difference shall be applied immediately to the Year-One Rookie Compensation Pool unless the Parties agree otherwise; and (E) provided further that the Year-One Rookie Compensation Pool in any League Year may not fall below the Minimum Year-One Pool Increase.

By way of hypothetical examples, if Club A selected a player in the Supplemental Draft in the 2019 League Year using the second selection in the second round, which had a Rookie Allotment of $1,450,000, but the Club’s actual position in the 2020 Draft would have been the seventh selection in that round, which would have had a Rookie Allotment of $1,400,000, then the Rookie Pool Bank would be increased by $50,000. If Club B selected a player in the Supplemental Draft in the 2019 League Year using the twentieth selection in the third round, which had a Rookie Allotment of $750,000, but the Club’s actual position in the 2020 Draft would have been the first selection in the third round, which would have had a Rookie Allotment of $700,000, then the Rookie Pool Bank would be decreased by $50,000. If either scenario occurred in the Final League Year, or in a year in which there was no Rookie Pool Bank, then the adjustment would instead be made as provided in Subsection (ii) above. For purposes of Subsections (i)-(iii) above, “Rookie Allotment” means the Year-One Formula Allotment for that selection multiplied by the Year-One Rookie Compensation Pool (excluding Compensatory Selections and one-third of the Undrafted Rookie Reservation).

In the event that a player who was eligible for the NFL Draft in a prior League Year but who has never signed a Player Contract with a Club in a prior League Year (e.g., a player who signed a contract with another professional league before signing a Player Contract with a Club) receives offseason workout compensation pursuant to Article 21, Section 3 prior to the commencement of a Club’s Rookie Football Development Program, the cumulative amount of such daily compensation shall not count against the Club’s Year-One Rookie Compensation Pool or the Club’s Total Rookie Compensation Pool.

In any League Year in which one or more expansion Teams enter the League, the amount of the Total Rookie Compensation Pool and the Year-One Rookie Compensation Pool shall be increased proportionally (e.g., by 1/32 for every Expansion Team added to a 32 Team League) to account for the additional Draft selections of any such expansion Teams.

If a Club has a Rookie Football Development Program apart from its al-lowable minicamp(s) prior to its training camp, the following categories of per player reimbursements or payments will not be counted against the Year-One Rookie Compensation Pool or the Total Rookie Compensation Pool: (1) one round trip airline ticket or its cash equivalent from the player’s place of residence to the Club city and back, not to exceed $2,500; (2) room and board or its equivalent of up to $250 per day for the 2020-2025 League Years, and $300 per day for the 2026-2030 League Years, up to a maximum of sixty days; (3) ground transportation to and from the player’s place of residence in the Club’s city to the Club’s facility; and (4) daily amounts the player receives for any workouts or classroom instruction in which the player participates pursuant to the Club’s Rookie Football Development Program or any voluntary or mandatory veteran minicamp, as provided in Article 22, Section 8(b) and Section 4 (c), respectively.

Until a Drafted Rookie signs a Rookie Contract, the Year-One Minimum Allotment for that player multiplied by the Year-One Rookie Compensation Pool shall count against the Club’s Year-One Rookie Allocation. If a Drafted Rookie accepts the Required Tender described in Article 6, Section 3, then the player must be paid in his first season at the rate of the Minimum Allotment multiplied by the Year-One Rookie Compensation Pool.

Rookie Contracts for players selected in rounds one and two may contain performance incentives based upon achievement of an agreed-upon offensive or defensive regular season playtime percentage (calculated by dividing the player’s total regular season plays (offensive or defensive) by the Club’s total regular season plays) of at least (i) 35% in the first year of his initial contract or (ii) 45% in any subsequent year of such a contract. Rookie Contracts for players selected in rounds three through seven and Undrafted Rookies may contain performance incentives based upon achievement of an agreed-upon offensive or defensive regular season playtime percentage (calculated by dividing the player’s total regular season plays (offensive or defensive) by the Club’s total regular season plays) of at least (i) 15% in the first year of his initial contract or (ii) 30% in any subsequent year of such a contract. Any performance incentive for less than the offensive or defensive playtime percentages described above or based upon the achievement of any other statistic or honor is prohibited.

All performance incentives shall be considered Rookie Salary, shall count at the highest possible earnable amount for each League Year the incentive is applicable, and will be included in the 25% Increase Rule, Year-One Rookie Salary (if applicable), the Total Rookie Compensation Pool, the Year-One Rookie Compensation Pool (if applicable), the Club’s Total Rookie Allocation, and the Club’s Year-One Rookie Allocation (if applicable).

Performance incentives may be earned only based upon playtime in the current League Year and may not be guaranteed for skill, injury or Salary Cap-related contract terminations.

Performance incentives may not be modified, nullified, or created by achievement of or failure to achieve other incentives.

Unearned performance incentives in a current year may not be carried forward into future years. Earned performance incentives may not negate future year performance incentives or create additional incentives.

A player’s achievement of an incentive may not determine or affect whether he will or may achieve any performance incentive in a subsequent season.

Performance incentives based upon individual performance for ranking on the Club or in the League, Division or Conference (e.g., leading the Club in offensive playtime) are prohibited.

A performance incentive must be based only upon a specific numerical playtime amount. For example, an incentive may provide for a player to receive a bonus if he participates in 40% of his Club’s offensive plays, but it may not provide for the player to receive the performance incentive if he improves in playtime over a prior season.

For any Rookie Contract that is executed during the term of this Agreement, players and Clubs may agree to include the Performance Incentive described in this Section.

Exercise Period. A Club has the unilateral right to extend from four years to five years the term of any Rookie Contract of a player selected in the first round of the Draft (the “Fifth-Year Option”). To do so, the Club must give written notice to the player after the final regular season game of the player’s third season but prior to May 3 of the following League Year (i.e., year four of the contract). Any notice required or permitted to be given by a Club to a player under this Section shall be sent either by personal delivery, or by overnight mail, or be electronic mail in .pdf form, in each case a confirmation copy shall also be sent by first class mail, addressed as follows:

To the player (for overnight and first class mail): to his address on file with the Club, or if no such address is on file with the Club, to any address where the Club reasonably expects the player to be located.

To the NFLPA:

To the NFL:

Any written notice required or permitted to be given by a Club to a player under this Subsection shall be deemed given when sent by the Club.

Compensation Terms. The Fifth-Year Option is a non-negotiable, standard fixed Paragraph 5 Salary calculated pursuant to Subsections (e), (f), and (g) below. Any compensation terms other than the player’s Paragraph 5 Salary described in Subsections (e), (f), and (g) below are prohibited.

Automatic Inclusion. The terms and conditions of the Fifth-Year Option shall, if exercised, be as set forth below. The Fifth-Year Option shall also contain all permissible non-compensation terms from the player’s year-four contract carried forward unchanged. The Fifth-Year Option shall be deemed a part of every Rookie Contract of a player selected in the first round by virtue of this Agreement and may not be separately attached to such Rookie Contract.

Prohibited Terms Related to the Option. In a Rookie Contract, there may be no option bonuses, option exercise fees, nonexercise fees, option buyout amounts or any other form of payment that vests as a result of the Club either (i) exercising the Fifth-Year Option, or (ii) declining to exercise the Fifth Year Option. For example, no amount contracted for or paid to the player for years one through four of his Rookie Contract may be contingent upon the exercise or nonexercise of the Fifth-Year Option. The Club may not waive its unilateral right to exercise or not to exercise the Fifth Year Option.

Fifth-Year Option for First Ten Selections in Round One of the 2016 and 2017 Drafts.

For a Drafted Rookie selected with one of the first ten overall picks in the 2016 or 2017 Drafts, the Paragraph 5 Salary for the player’s Fifth-Year Option shall equal the Transition Tender that applies in the League Year that is the fourth year of the Rookie’s Contract (as calculated pursuant to Article 10, Section 4) for players at the same position (using the categories in Article 10, Section 7(a)) at which the Rookie participated in the most plays during his third League Year. No other Salary (other than the minimum offseason workout per diem and compensation for community relations/sponsor appearances or promotional activities (subject to the maximum amounts permitted in Section 3(b)(iv) above)) is permitted for the Fifth-Year Option.

For any player drafted with any selection (1-32) in the first round of the 2016 or 2017 Drafts, the entire Paragraph 5 Salary for the Fifth-Year Option shall be guaranteed for injury-related termination only, effective upon the Club’s exercise of the Option. The entire Paragraph 5 Salary for the Fifth-Year Option shall be guaranteed for skill, injury, and Salary Cap-related termination if the player is on his Club’s active roster (Active List) at the start of the player’s fifth League Year (i.e., the option year).

The Fifth-Year Option Paragraph 5 Salary for any player drafted with any selection (1-32) in the first round of the 2016 or 2017 Drafts shall not be considered Rookie Salary and will not count against the Total Rookie Compensation Pool, or against the Club’s Total Rookie Allocation, or for purposes of the 25% Increase Rule.

Fifth-Year Option for All Other Selections in Round One of the 2016 and 2017 Drafts.

For a Drafted Rookie selected in the first round of the 2018 or any subsequent Draft, who is not selected to a Pro Bowl on the original ballot during any of his first three seasons and who did not (1) participate in a minimum of 75% of his Club’s offensive or defensive plays in any two of his first three regular seasons; or (2) participate in a “cumulative average” of at least 75% of his Club’s offensive or defensive plays over his first three regular seasons; or (3) participate in a minimum of 50% of his Club’s offensive or defensive plays in each of his first three regular seasons, the Paragraph 5 Salary for the player’s Fifth-Year Option shall equal an amount that would apply in the fourth League Year of the Rookie Contract if one calculated the Transition Tender for that League Year by using the same methodology as set forth in Article 10, Section 4, but using the applicable third through twenty-fifth highest Salaries (as “Salary” is defined in Article 10) (as opposed to the ten highest Salaries) for players at the same position (using the categories in Article 10, Section 7(a)) at which the Rookie participated in the most plays during his third League Year. No other Salary (other than the minimum offseason workout per diem and compensation for community relations/sponsor appearances or promotional activities (subject to the maximum amounts permitted in Section 3(b)(iv) above)) is permitted for the Fifth-Year Option. “Cumulative average” means the sum of the total number of offensive or defensive plays in which the player participated over the applicable seasons, divided by the sum of the Club’s offensive or defensive plays during the same seasons.

For any player drafted with any selection (1-32) in the first round of the 2016 or 2017 Drafts, the entire Paragraph 5 Salary for the Fifth-Year Option shall be guaranteed for injury-related termination only, effective upon the Club’s exercise of the Option. The entire Paragraph 5 Salary for the Fifth-Year Option shall be guaranteed for skill, injury, and Salary Cap-related termination if the player is on his Club’s roster at the start of the player’s fifth League Year (i.e., the option year).

The Fifth-Year Option Paragraph 5 Salary for any player drafted with any selection (1-32) in the first round of the 2016 or 2017 Drafts shall not be considered Rookie Salary and will not count against the Total Rookie Compensation Pool, or against the Club’s Total Rookie Allocation, or for purposes of the 25% Increase Rule.

Fifth-Year Option for All Selections in Round One of the 2018 and Subsequent Drafts.

For a Drafted Rookie selected in the first round of the 2018 or any subsequent Draft, who is not selected to a Pro Bowl on the original ballot during any of his first three seasons and who did not (1) participate in a minimum of 75% of his Club’s offensive or defensive plays in any two of his first three regular seasons; or (2) participate in a “cumulative average” of at least 75% of his Club’s offensive or defensive plays over his first three regular seasons; or (3) participate in a minimum of 50% of his Club’s offensive or defensive plays in each of his first three regular seasons, the Paragraph 5 Salary for the player’s Fifth-Year Option shall equal an amount that would apply in the fourth League Year of the Rookie Contract if one calculated the Transition Tender for that League Year by using the same methodology as set forth in Article 10, Section 4, but using the applicable third through twenty-fifth highest Salaries (as “Salary” is defined in Article 10) (as opposed to the ten highest Salaries) for players at the same position (using the categories in Article 10, Section 7(a)) at which the Rookie participated in the most plays during his third League Year. No other Salary (other than the minimum offseason workout per diem and compensation for community relations/sponsor appearances or promotional activities (subject to the maximum amounts permitted in Section 3(b)(iv) above)) is permitted for the Fifth-Year Option. “Cumulative average” means the sum of the total number of offensive or defensive plays in which the player participated over the applicable seasons, divided by the sum of the Club’s offensive or defensive plays during the same seasons.

For a Drafted Rookie selected in the first round of the 2018 or any subsequent Draft who is not selected to a Pro Bowl on the original ballot during any of his first three seasons but who (1) participated in a minimum of 75% of his Club’s offensive or defensive plays in any two of his first three regular seasons; or (2) participated in a “cumulative average” of at least 75% of his Club’s offensive or defensive plays over his first three 43 regular seasons; or (3) participated in a minimum of 50% of his Club’s offensive or defensive plays in each of his first three regular seasons, the Paragraph 5 Salary for the player’s Fifth-Year Option shall equal an amount that would apply in the fourth League Year of the Rookie Contract if one calculated the Transition Tender for that League Year by using the same methodology as set forth in Article 10, Section 4, but using the applicable third through twentieth highest Salaries (as “Salary” is defined in Article 10) (as opposed to the ten highest Salaries) for players at the same position (using the categories in Article 10, Section 7(a)) at which the Rookie participated in the most plays during his third League Year. No other Salary (other than the minimum offseason workout per diem and compensation for community relations/sponsor appearances or promotional activities (subject to the maximum amounts permitted in Section 3(b)(iv) above)) is permitted for the Fifth- Year Option. “Cumulative average” means the sum of the total number of offensive or defensive plays in which the player participated over the applicable seasons, divided by the sum of the Club’s offensive or defensive plays during the same seasons.

For a Drafted Rookie selected in the first round of the 2018 or any subsequent Draft who is selected to one, but not more than one, Pro Bowl on the original ballot during any of his first three seasons, the Paragraph 5 Salary for the player’s Fifth-Year Option shall equal the Transition Tender that applies in the League Year that is the fourth year of the Rookie’s Contract (as calculated pursuant to Article 10, Section 4) for players at the same position (using the categories in Article 10, Section 7(a)) at which the Rookie participated in the most plays during his third League Year. No other Salary (other than the minimum offseason workout per diem and compensation for community relations/sponsor appearances or promotional activities (subject to the maximum amounts permitted in Section 3(b)(iv) above)) is permitted for the Fifth-Year Option.

For a Drafted Rookie selected in the first round of the 2018 or any subsequent Draft who is selected to two or more Pro Bowls on the original ballot during any of his first three seasons, the Paragraph 5 Salary for the player’s Fifth-Year Option shall equal the Franchise Tender that applies in the League Year that is the fourth year of the Rookie’s Contract (as calculated pursuant to Article 10, Section 2) for players at the same position (using the categories in Article 10, Section 7(a)) at which the Rookie participated in the most plays during his third League Year. No other Salary (other than the minimum offseason workout per diem and compensation for community relations/sponsor appearances or promotional activities (subject to the maximum amounts permitted in Section 3(b)(iv) above)) is permitted for the Fifth-Year Option.

For any Drafted Rookie selected in the first round of the 2018 or any subsequent Draft, the entire Paragraph 5 Salary for the Fifth-Year Option shall become guaranteed for skill, injury, and Salary Cap-related termination, effective upon the Club’s exercise of the Option. In the event that the entire Paragraph 5 Salary for the fourth year of the player’s Rookie Contract is not guaranteed for skill, injury, and Salary Cap-related termination, the non-guaranteed amount shall become guaranteed for skill, injury, and Salary-Cap related termination effective upon the Club’s exercise of the Option. Upon exercise of the Option, the above-described guarantees shall be subject to the terms and conditions of any pre-existing individually negotiated non-compensation term in year four of the player’s contract relating to the forfeiture of guarantees (also referred to as “void provisions” in this Subsection for the sake of convenience), to the extent permitted in Article 4, Section 9(g) (“Voiding of Guarantees”). In addition to applying to the previously non-guaranteed amount in the fourth League Year of the player’s contract, the year-four guarantee void provision shall be carried forward to, and shall be applicable to, the player’s Paragraph 5 Salary in the fifth League Year of his contract (the “option year”) unchanged except to the extent necessary to effect the enforceability of such provisions (e.g., without limitation, changes regarding the applicable contract year of such provisions and the amount of the year-five guarantee). Any such changes shall be deemed to have been automatically made effective upon the Club’s exercise of the Option. The year-four guarantee, which is applicable to both: (i) the previously non-guaranteed amount of a player’s yearfour Paragraph 5 Salary; and (ii) the player’s Paragraph 5 Salary in the option year, shall be void if the player breaches the terms and conditions of that guarantee: (i) at any time in the fourth League Year of the player’s contract after the Option has been exercised; or (ii) at any time in the fifth League Year of the player’s contract after the Option has been exercised. By way of example, without limitation to other examples, if a player’s year-four Paragraph 5 Salary is $4 million, of which $3 million is guaranteed upon contract execution for Skill, Injury, and Salary Cap-related termination subject to an individually negotiated void provision, and the player’s Paragraph 5 Salary for his Fifth-Year Option is $9 million, and the Club elects to exercise that Option on May 2 of the contract’s fourth League Year, then the previously non-guaranteed $1 million of the player’s year-four Paragraph 5 Salary and the full $9 million of the player’s Paragraph 5 Salary in the fifth League Year would become guaranteed for Skill, Injury, and Salary Cap-related termination upon exercise of the Club’s Option, subject to the individually negotiated void provision applicable to the $3 million Paragraph 5 Salary guarantee, which void provision would become applicable to the previously non-guaranteed amount of the player’s year-four Paragraph 5 Salary, and would carry forward, and become applicable to, the $9 million Paragraph 5 Salary guarantee in the option year. If at any time after the Fifth-Year Option is exercised on May 2 of the fourth year of the contract, including at any time during the fifth League Year, the player breaches the terms and conditions of the guarantee, then the guarantee applicable to the previously non-guaranteed amount of the player’s year-four Paragraph 5 Salary of $1 million and the $9 million Paragraph 5 Salary in the option year shall automatically be null and void. For the avoidance of doubt, in this example the $3 million that was guaranteed upon contract execution for skill, injury and Salary Cap-related termination (i.e., not as the result of the Club’s exercise of the Option as described above) shall at all times remain subject to the terms of the provision in the player’s Rookie Contract relating to the voiding of that year-four guarantee. For the avoidance of doubt, in the event that guarantee has voided as the result of a prior breach of its terms and conditions, the entire amount of the player’s Paragraph 5 Salary in year four shall become guaranteed for skill, injury, and Salary Cap-related termination upon exercise of the Option, subject to the further terms and conditions of this Subsection.

The Fifth-Year Option Paragraph 5 Salary for any player drafted with any selection (1-32) of the first round of the 2018 or any subsequent Draft shall not be considered Rookie Salary and will not count against the Total Rookie Compensation Pool, or against the Club’s Total Rookie Allocation, or for purposes of the 25% Increase Rule.

Breach.

Notwithstanding anything to the contrary in Article 42 or Article 4, after the Club has exercised its Fifth-Year Option for any player selected in the first round of the 2016 or any subsequent Draft, any unexcused late reporting to or absence from preseason training camp by a player in the fifth League Year of his contract (the option year) shall subject the player to a fine of $40,000 per day for the 2020-2025 League Years and $45,000 per day for the 2026-2030 League Years, plus one week’s regular season salary for each preseason game missed. For purposes of this Subsection, Preseason Training Camp shall be defined as the period beginning with the mandatory reporting date for that player through the Sunday immediately preceding the first game of the NFL regular season. For the sake of clarity and the avoidance of doubt, the Progressive Discipline requirement set forth in Article 42, Section 1(a) shall not apply to any fine under this Subsection.

Nothing in this Section (h) shall preclude a player selected in the first round of the 2016 or any subsequent Draft and a Club from agreeing to contract provisions relating to the forfeiture of Salary earnable in any League Year prior to the player’s option year, subject to the restrictions set forth in Article 4, Section 9.

In each League Year of this Agreement other than the 2020 League Year, the NFL and the NFLPA shall create a fund known as the Rookie Redistribution Fund (the “Fund”) that will be treated in the same manner as any other Player Benefit Cost, provided that the NFLPA provides the NFL with notice prior to the issuance of the Initial Special Purpose Letter that the NFLPA desires to have the Fund and indicates the amount of the Fund. The maximum amount of this Fund shall be $64 million for the 2021 League Year. The maximum amount of the Fund shall increase in each subsequent League Year by the annual rate of growth of the Year-One Rookie Compensation Pool, except that for the 2026 League Year, the maximum amount of the Fund shall increase by the annual rate of growth of the Year-One Rookie Compensation Pool, plus $32 million. In any League Year in which there is a Fund and there are seventeen regular season games, the Fund shall be used to fund the Additional Game Check, as defined under Article 26, Section 1(c). In each League Year in which there is a Fund, the remaining amount of the Fund (less any amount used to fund the Additional Game Check in accordance with the immediately preceding sentence, if applicable) shall be distributed in a proportion to be determined by the NFLPA: (i) to fund a performance-based compensation pool as agreed upon by the parties; (ii) for the 2026 League Year or any subsequent League Year, to fund a benefit for players whose stated Paragraph 5 Salaries in the such League Year are Minimum Salaries, as defined under Article 26, Section 1(a) and (b) of this Agreement; provided, however, that the NFL and the NFLPA must first agree upon the distribution formula; or (iii) for any other new Benefit for current or retired players as agreed upon by the parties. Set forth in the table below are examples, without limitation to any other examples, of the effect that various distributions would have upon the calculation of the Salary Cap under a hypothetical Player Cost Amount of $230 million assuming: (i) the maximum Fund amount equals $64 million; and (ii) that projected Player Benefit Costs other than the Fund equal $30 million per Club: