With GRIDIRON AMERICA, Capital Area Team Sports, Inc. ("CATS") intends to innovate both on and off the field, and one means of doing so is the creation of its Merit Payments Fun - a means of financially rewarding clubs for their on-field performance.

The concept is simple enough:  7% of the first $500 collected from each team (via player participation or team entry fees) is held in escrow by CATS as a Merit Payments Fund for that league.  At the conclusion of each regular season, the total amount set aside in the Merit Payments Fund is divided into 100 shares, with each team earning a number of shares based on their final standing in the regular season.

For example, if in a league of 8 teams we collect a total of $ 4,792 in entry/participation fees, $ 3,500 would be assessed at 7%, creating a Merit Payments Fund of $ 245.  Each of the 100 shares would then be worth $ 2.45.

The President's Cup champion (best team in regular season play) would receive 24 shares (worth $ 58.80), the second place team overall would receive 21 shares ($ 51.45), and so forth down to the last place team, which would earn one share worth $ 2.45.  Distributions from a league's Merit Payments Fund are made in the form of CATS Credit Certificates, applicable to future GRIDIRON AMERICA participation, or participation in other CATS programs.

There are two caveats to the Merit Payments Fund - (1)  Any team which forfeits any of its games during a GRIDIRON AMERICA season automatically forfeits any Merit Payments Fund allocation which it would earn, and (2)  Any team which fails to provide officiating service assistance when called upon to do so automatically forfeits its Merit Payments Fund allocation for the season.

The Merit Payments Fund is designed to give every GRIDIRON AMERICA game - including what would normally be a meaningless late regular season game between two teams with just a few wins between them - added value.