.Saleem Swingman, hereafter referred to as the "Player," is offered a four-year contract with an annual salary of $474,000 per year, to be paid at the end of each month in the contract term under the league's collective bargaining agreem ent, the Player will receive a 4% cost-of-living adjustment (COLA) to his annual salary at the beginning of every other year. This means that the Player's annual salary will increase at the beginning of year 2 and year 4, as applicable. * .In addition, the Player will receive a one-time $15,000 time-in-league bonus after six months of participation with an MLB team. This bonus will be paid immediately on completion of the six-month period. The Player is offered a performance-based bonus, as well as a milestone bonus. Both are intended to encourage outstanding performance. * The Player is offered the following award-based performance incentive: a 15% bonus if he is designated as the Most Valuable Player (MVP) in the league. The Player is also offered the following milestone bonus: a $125,000 bonus if he ties Nolan Ryan's 1973 single-season strikeout record (383 strikeouts) . The Player is eligible for each potential bonus each year that the contract is in effect and, if expressed as a percentage, will be based on the value of the Player's base annual salary for the corresponding year. If earned, the performance and milestone bonuses will be distributed in a single payment at the beginning of the next contract year. Although this proposal describes only one milestone, the actual contract contains several progressive milestones. Exceeding one milestone creates the opportunity to exceed another In addition to the proposal offered by the Wizards, I've also been able to secure the following endorsement opportunity: A local car dealer has offered you a contract that will pay $2,750 per month for two years. This contract is contingent on your accepting the contract with the Wizards and will take effect immediately upon signing your MLB contract. In return for these payments, you will participate in the dealer's promotional events, such as signing autographs and allowing photographs as requested. 1 Assumptions and Calulated Values 2 Bank Rate Information: 3 Saleem's Bank Account Rate (compounded monthly) 4 Monthly Bank Rate 5 Effective Interest Rate 9.0000% 0.7500% 8 250096 7 Salary and Bonus Information: 8 | Annual salary (4% COLA adjustment) 9 Monthly Salary 10 Discount factor (based on Cell 84 above) 11 Discounted Monthly Salary 12 13 Time-in-League Bonus 14 Discount factor (based on Cell B4 above) Year 1 Year 2 Year 3 Year 4 Total value $474,000 $492,960 41,080 10.4542 11.4345 9.5577 8.7380 392,630 $1,647,082 $15,000 0.9562 16 17 Milestone Bonus 18 Discount factor (based on Cell 85 above) 19 Discounted Milestone Bonus $125,000 0.7642 $500,000 0.9142 0.8358 0.6986 104,475 21 Performance Bonus 22 Discount factor (based on cell B5 above) 23 Discounted Performance Bonus $76,902 $295,890 0.9142 0.8358 0.7642 0.6986 $61,802 25 Monthly Endorsement Contract Payment 26 Discount factor (based on Cell 84 above) 27 Discounted Monthly Endorsement Payment $2,750 10.4542 $28,749 1.4349 29 Contract's Total Nominal value 30 Contract's Total Discounted Value $2,300,059
