Any Talent who is arrested, convicted or who admits to a violation of law relating to use, possession, purchase, sale or distribution of prohibited drugs will be in material breach of contract and subject to immediate dismissal.

14. PENALTIES FOR POSITIVE DRUG TESTS

First Offense. In the event of an initial positive result for drugs prohibited by this Policy, as amended from time to time, the Talent shall be suspended without pay for 30 days.

Second Offense. In the event of a second positive result for drugs prohibited by this Policy, as amended from time to time, the Talent shall be suspended without pay for 60 days or, in cases where the Talent appears to be in need of a drug rehabilitation program, an indefinite suspension without pay until the individual has successfully completed the drug rehabilitation program.

Third Offense. In the event of a third positive result for drugs prohibited by this Policy, as amended from time to time, the Talents contract with WWE will be terminated.

15. APPLICABILITY OF THIS POLICY

This Policy, as it may be amended from time to time, is applicable to and binding upon all WWE Talent under contract to WWE who regularly perform in-ring services as a professional sports entertainer.