Collective Bargaining Agreement

Table of Contents i COLLECTIVE BARGAINING AGREEMENT JANUARY 19, 2017 TABLE OF CONTENTS ARTICLE I DEFINITIONS .............................................................................1 Section 1. Definitions. ...................................................................1 ARTICLE II UNIFORM PLAYER CONTRACT ..................................... 15 Section 1. Required Form. ......................................................... 15 Section 2. Limitation on Amendments. ................................... 15 Section 3. Allowable Amendments........................................... 15 Section 4. Compensation Protection........................................ 22 Section 5. Conformity................................................................. 32 Section 6. Minimum Player Salary. ........................................... 32 Section 7. Maximum Annual Salary.......................................... 35 Section 8. Promotional Activities.............................................. 43 Section 9. 10-Day Contracts...................................................... 47 Section 10. Rest-of-Season Contracts. ....................................... 48 Section 11. Two-Way Contracts.................................................. 49 Section 12. Bonuses. ..................................................................... 56 Section 13. General. ...................................................................... 58 Section 14. Void Contracts. ......................................................... 62 Section 15. Moratorium Period. .................................................. 62 ii Table of Contents ARTICLE III PLAYER EXPENSES............................................................ 64 Section 1. Moving Expenses...................................................... 64 Section 2. Meal Expense Allowance......................................... 65 ARTICLE IV BENEFITS ............................................................................... 67 Section 1. Player Pension Benefits............................................ 67 Section 2. Player 401(k) Benefits............................................... 77 Section 3. Player Health and Welfare Benefits........................ 82 Section 4. The Post-Career Income Plan................................. 92 Section 5. Labor-Management Cooperation and Education Trust. ....................................................... 99 Section 6. Additional Player Benefits ..................................... 102 Section 7. Canadian Residents................................................. 105 Section 8. New Benefits Funding. .......................................... 107 Section 9. Projected Benefits................................................... 110 Section 10. Benefit Exclusion Amount.................................... 111 ARTICLE V COMPENSATION AND EXPENSES IN CONNECTION WITH MILITARY DUTY.... 115 Section 1. Salary......................................................................... 115 Section 2. Travel Expenses...................................................... 115 ARTICLE VI PLAYER CONDUCT.......................................................... 116 Section 1. General. .................................................................... 116 Section 2. Practices.................................................................... 116 Table of Contents iii Section 3. Promotional Appearances. .................................... 117 Section 4. Mandatory Programs.............................................. 117 Section 5. Media Training, Business of Basketball and Anti-Gambling Training. ....................................... 117 Section 6. Charitable Contributions. ...................................... 118 Section 7. Unlawful Violence. ................................................. 119 Section 8. Counseling for Violent Misconduct..................... 119 Section 9. Firearms and Other Weapons............................... 120 Section 10. One Penalty. ............................................................ 120 Section 11. League Investigations............................................. 121 Section 12. On-Court Conduct. ................................................ 122 Section 13. Motor Vehicles........................................................ 123 Section 14. Player Convictions Involving Alcohol or Controlled Substances............................................ 124 Section 15. Player Arrests........................................................... 124 Section 16. Joint NBA/NBPA Policy on Domestic Violence, Sexual Assault, and Child Abuse......... 124 ARTICLE VII BASKETBALL RELATED INCOME, SALARY CAP, MINIMUM TEAM SALARY, AND ESCROW ARRANGEMENT............................. 125 Section 1. Definitions. .............................................................. 125 (a) Basketball Related Income..................................... 125 (b) Accounting Methods/Lump Sum Payments ...... 155 (c) Projected BRI .......................................................... 157 iv Table of Contents (d) Local Expansion Team BRI .................................. 158 (e) Projected Local Expansion Team BRI ................ 158 (f) Interim Projected BRI............................................ 158 (g) Barter......................................................................... 158 (h) Estimated Total Benefits........................................ 158 (i) Estimated Total Salaries......................................... 159 (j) Estimated Total Salaries and Benefits.................. 159 (k) Estimated BRI ......................................................... 159 Section 2. Calculation of Salary Cap and Minimum Team Salary.............................................................. 159 (a) Salary Cap................................................................. 159 (b) Minimum Team Salary ........................................... 160 (c) Expansion Team Salary Caps and Minimum Team Salaries ........................................................... 163 (d) Adjustments to Salary Cap and Minimum Team Salary.............................................................. 164 (e) Guarantee ................................................................. 166 Section 3. Determination of Salary......................................... 167 (a) Deferred Compensation......................................... 167 (b) Signing Bonuses....................................................... 169 (c) Loans to Players ...................................................... 172 (d) Incentive Compensation ........................................ 173 (e) International Player Payments............................... 175 Table of Contents v (f) One-Year Minimum Contracts ............................. 177 (g) Insurance Premium Reimbursement.................... 177 (h) Averaging.................................................................. 177 (i) Existing Contracts................................................... 177 (j) Existing Rookie Scale Contract Increases ........... 177 Section 4. Determination of Team Salary.............................. 178 (a) Computation............................................................ 178 (b) Expansion................................................................. 183 (c) Assigned Contracts ................................................. 184 (d) Free Agents .............................................................. 184 (e) First Round Picks.................................................... 186 (f) Incomplete Rosters................................................. 187 (g) Renouncing .............................................................. 188 (h) Long-Term Injuries................................................. 189 (i) Summer Contracts .................................................. 192 (j) Two-Way Contracts................................................ 192 (k) Exhibit 10 Bonus..................................................... 193 (l) Team Salary Summaries.......................................... 193 Section 5. Operation of Salary Cap......................................... 193 (a) Basic Rule ................................................................. 193 (b) Room......................................................................... 193 vi Table of Contents (c) Annual Salary Increases and Decreases ............... 193 (d) Performance Bonuses............................................. 196 (e) No Futures Contracts............................................. 197 Section 6. Exceptions to the Salary Cap. ............................... 198 (a) Existing Contracts................................................... 198 (b) Veteran Free Agent Exception.............................. 198 (c) Disabled Player Exception..................................... 200 (d) Bi-annual Exception ............................................... 202 (e) Non-Taxpayer Mid-Level Salary Exception........ 203 (f) Taxpayer Mid-Level Salary Exception ................. 204 (g) Mid-Level Salary Exception for Room Teams........................................................................ 206 (h) Rookie Exception.................................................... 207 (i) Minimum Player Salary Exception ....................... 207 (j) Traded Player Exception........................................ 208 (k) Reinstatement .......................................................... 213 (l) Non-Aggregation..................................................... 213 (m) Other Rules.............................................................

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