(1)

(i) With respect to Contracts entered into prior to the date of this Agreement, subject to the rules set forth in Section 7(a)(2) below, a Player Contract covering a term of six (6) or seven (7) Seasons may be extended no sooner than the fourth anniversary of the signing of the Contract, and a Player Contract with a term of four (4) or five (5) Seasons may be extended no sooner than the third anniversary of the signing of the Contract.

(ii) With respect to Contracts entered into after the date of this Agreement, subject to the rules set forth in Section 7(a)(2) below, a Player Contract covering a term of four (4), five (5) or six (6) Seasons may be extended no sooner than the third anniversary of the signing of the Contract.

(2)

(i) A Player Contract that has been extended, or that has been renegotiated to provide for an increase in Salary in any Salary Cap Year covered by the Contract of more than 10%, may not subsequently be extended until the third anniversary of such Extension or Renegotiation.

(ii) A Team and a player shall not be permitted to extend any Player Contract whose term has been shortened as a result of the player’s exercise of an Early Termination Option.

(iii) Subject to the rules set forth in this Section 7(a), a Contract may be extended following the non-exercise of an Option by a player or Team only if:

(A) The extended term covers a minimum of two (2) Seasons (excluding any new Option Year); and

(B) The player’s Regular Salary, Likely Bonuses and Unlikely Bonuses in the first Salary Cap Year covered by the extended term are no less than the Regular Salary, Likely Bonuses and Unlikely Bonuses, respectively, that the player would have received for such Salary Cap Year had the Option been exercised.
In order to effectuate an Extension of the type described in this Section 7(a)(2)(iii), a Team and player may amend a Contract to provide simultaneously for the non-exercise of the Option and the Extension.

(3) Subject to Article II, Section 7, a Player Contract extended in accordance with this Section 7(a) may, in the first Salary Cap Year covered by the extended term, provide for a Salary, excluding Incentive Compensation, of up to 110.5% of the Regular Salary in the last Salary Cap Year covered by the original term of the Contract. In the event that the last Salary Cap Year covered by the original term of the Contract provides for Incentive Compensation, the first Salary Cap Year covered by the extended term may provide for Likely Bonuses and Unlikely Bonuses of up to 110.5% of the Likely Bonuses and Unlikely Bonuses, respectively, in the last Salary Cap Year covered by the original term. Annual increases and decreases in Salary and Unlikely Bonuses shall be governed by Section 5(c)(3) above.

(4) Notwithstanding Section 7(a)(3) above and subject to Article II, Section 7, any Player Contract of a player who has played for his current Team for at least ten (10) Seasons and whose Salary in the last Salary Cap Year covered by the original term of the Contract is less than the Salary in the second-to-last Salary Cap Year covered by such Contract may, in the first Salary Cap Year covered by an extended term, provide for a Salary equal to 110.5% of the greater of (1i the average of the Regular Salaries for each Salary Cap Year covered by the original Contract beginning with the Salary Cap Year in which such Contract was entered into, or previously extended, as the case may be, or (ii) the Regular Salary in the last Salary Cap Year covered by his original Contract. In the event that the last Salary Cap Year covered by the original term of the Contract provides for Incentive Compensation, the first Salary Cap Year covered by the extended term may provide for Likely Bonuses and Unlikely Bonuses of up to 110.5% of the Likely Bonuses and Unlikely Bonuses, respectively, in the last Salary Cap Year covered by the original term. Annual increases and decreases in Salary and Unlikely Bonuses shall be governed by Section 5(c)(3) above, except that, for purposes of Section 7(a)(4)(ii) only, the phrase “Regular Salary” in Section 5(c)(3) above shall be deemed to mean the greater of (A) the average of the Regular Salaries for each Salary Cap Year covered by the original Contract beginning with the Salary Cap Year in which such Contract was entered into, or previously extended, as the case may be, or (B) the Regular Salary in the last Salary Cap Year covered by the original Contract.

(1) A First Round Pick who entered into a Rookie Scale Contract that commenced with a Season prior to the 2005-06 Season may enter into an Extension of such Rookie Scale Contract during the period from the day following the last day of the Moratorium Period through October 31 of the Option Year provided for in such Contract (assuming the Team exercises such Option).

(2) A First Round Pick who enters into a Rookie Scale Contract that commences with the 2005-06 Season or a subsequent Season may enter into an Extension of such Rookie Scale Contract during the period from the day following the last day of the Moratorium Period through October 31 of the second Option Year provided for in such Contract (assuming the Team exercises such Option).

(3) An Extension of a Rookie Scale Contract may provide for Salary and Unlikely Bonuses in the first Salary Cap Year covered by the extended term totaling no more than the maximum amount provided for in Article II, Section 7. Annual increases and decreases in Salary and Unlikely Bonuses shall be governed by Section 5(c)(4) above.

(1) Subject to Section 7(c)(2) and (3) below, a Player Contract covering a term of four (4) or more Seasons may be renegotiated no sooner than the third anniversary of the signing of the Contract.

(2) Subject to Section 7(c)(3) below, any Player Contract that has been renegotiated in accordance with Section 7(c)(1) above to provide for an increase in Salary or Incentive Compensation in any Salary Cap Year covered by the Contract of more than 8%, or extended in accordance with Section 7(a) or (b) above, may not subsequently be renegotiated until the third anniversary of such Extension or Renegotiation.

(3) Assuming Section 7(c) (1) or (2) above are satisfied, a Team with a Team Salary below the Salary Cap may renegotiate a Player Contract in accordance with the following rules:

(i) Subject to Article II, Section 7, the Renegotiation may provide for additional Regular Salary, Likely Bonuses and/or Unlikely Bonuses for the then-current Salary Cap Year covered by the Contract (the “Renegotiation Season”) that, in the aggregate, would not exceed the Team’s Room at the time of the Renegotiation.

(ii) Every category (Regular Salary, Likely Bonuses and Unlikely Bonuses, respectively) that is increased for the Renegotiation Season must also be increased for each of the remaining Seasons of the Contract. For each Season of the Contract after the Renegotiation Season, the player’s additional Regular Salary may increase or decrease over the previous Season’s additional Regular Salary by no more than 10.5% of the additional Regular Salary provided for in the Renegotiation Season. In the event that the Renegotiation Season provides for additional Incentive Compensation, the amount of additional Likely Bonuses and Unlikely Bonuses provided for in each Season after the Renegotiation Season may increase or decrease by up to 10.5% of the amount of additional Likely Bonuses and Unlikely Bonuses, respectively, provided for in the Renegotiation Season.

(iii) No Renegotiation may contain a signing bonus, unless the Renegotiation is accompanied by an Extension and the signing bonus would otherwise be permitted under the rules governing the inclusion of signing bonuses in Extensions.

(4) In no event may a Team with a Team Salary at or above the Salary Cap renegotiate a Player Contract.

(5) In no event may a Team and a player renegotiate a Player Contract from March 1 through June 30 of any Salary Cap Year.

(1) In no event shall a Team and player negotiate a decrease in Salary or in any Incentive Compensation for any Salary Cap Year covered by a Player Contract.

(2) A Player Contract that is extended pursuant to Section 7(a) above may be renegotiated simultaneously, but only if and to the extent permitted by the rules set forth in Section 7(c) above.

(3) For the sole purpose of enabling an assignee Team to acquire a Player Contract by trade, the player and the assignor Team may agree to waive all or any portion of a trade bonus, but only to the extent necessary to make the trade permissible in accordance with the rules set forth in Section 6(h) above. In the event that, in connection with a trade, a player’s Contract is amended in accordance with this Section 7(d)(3), such Contract may not be subsequently extended or renegotiated until the later of (i) six (6) months from the date of the trade, or (ii) the first date on which the Contract could otherwise be extended or renegotiated pursuant to this Section 7.

(4) In the event that a Team and a player agree to amend a Player Contract in accordance with Article II, Section 3(l), then for purposes of calculating the player’s Salary for the then-current and any remaining Salary Cap Year covered by the Contract, notwithstanding any stretch or acceleration of the player’s protected Compensation payment schedule, the aggregate reduction in the player’s protected Compensation shall be allocated pro rata over the then-current and each remaining Salary Cap Year on the basis of the remaining unearned protected Base Compensation in each such Salary Cap Year.

(5) In no event shall a Team and player amend a Contract for the purpose of terminating or shortening the term of the Contract, except in accordance with the NBA waiver procedure or Article XII, Section 2.