The agreement asks students to ultimately accept liability of potentially contracting the coronavirus on campus.
Penn State students can take an online course at participating Big Ten universities at no additional cost this summer.
Demands included redshirts for players who miss games or test positive and objective criteria for suspending the season.
Student-athletes competing in "high-contact" sports will undergo coronavirus testing at least twice a week.
Anyone found in violation of the ordinance can be issued a civil infraction and fined $300.
Penn State's season will begin against Northwestern on September 5.