NBPA Collective Bargaining Agreement ARTICLE I DEFINITIONS...................................... 1 Section 1. ........................................................ 1 (a)-(h) “Agreement” through “Cash Compensation”...................................... 1 (i)-(q) “Commissioner” through “Early Qualifying Veteran Free Agent”.................. 2-3 (r)-(aa) “Early Termination Option” through “Likely Bonus”...................................... 3 (bb)-(ii) “Member” through “Non-Qualifying Veteran Free Agent”................................ 4 (jj)-(qq) “Option” through “Qualifying Veteran Free Agent”.......................................... 5-6 (rr)-(vv) “Regular Salary” through “Required Tender”............................................... 6-7 (ww)-(ccc) “Rookie” through “Salary” ........................ 7-8 (ddd)-(iii) “Salary Cap” through “Team Affiliate”.......... 8-9 (jjj)-(nnn) “Team Salary” through “Unlikely Bonus”....... 9 (ooo)-(rrr) “Unrestricted Free Agent” through “Years of Service”.................................. 10 ARTICLE II UNIFORM PLAYER CONTRACT.............. 11 Section 1. Required Form...................................... 11 Section 2. Limitation on Amendments........................ 11 Section 3. Allowable Amendments ........................... 11 Section 4. Cash Compensation Protection or Insurance............................................. 15 (a) Lack of Skill .................................. 15 (b) Non-Insured Death........................... 16 (c) Insured Death................................. 16 (d) Non-Insured Basketball-Related Injury........................................... 17 (e) Non-Insured Injury or Illness ............... 18 (f) Insured Injury or Illness ..................... 18 (g) Non-Insured Mental Disability ............. 19 (h) Insured Mental Disability ................... 20 Section 5. Conformity .......................................... 21 Section 6. Minimum Player Salary............................ 21 Section 7. Maximum Annual Salary .......................... 22 Section 8. Promotional Activities ............................. 26 Section 9. 10-Day Contracts ................................... 27 Section 10. Rest-of-Season Contracts .......................... 28 Section 11. General............................................... 28 Section 12. July Moratorium .................................... 30 ARTICLE III PLAYER EXPENSES ............................. 31 Section 1. Moving Expenses................................... 31 Section 2. Meal Expense Allowance.......................... 32 ARTICLE IV BENEFITS........................................... 34 Section 1. Player Benefits...................................... 34 Section 2. Insurance Carriers .................................. 40 Section 3. 401(k) Plan .......................................... 40 Section 4. Post-Career Benefit Plan and Post-Career Medical Plan ........................................ 41 Section 5. New Benefits Funding ............................. 43 Section 6. Projected Benefits .................................. 44 ARTICLE V COMPENSATION AND EXPENSES IN CONNECTION WITH MILITARY DUTY................................................ 46 Section 1. Salary................................................. 46 Section 2. Travel Expenses..................................... 46 ARTICLE VI PLAYER CONDUCT.............................. 47 Section 1. General............................................... 47 Section 2. Mandatory Programs............................... 47 Section 3. Charitable Contributions........................... 48 Section 4. Unlawful Violence.................................. 49 Section 5. Counseling for Violent Misconduct .............. 49 Section 6. One Penalty.......................................... 49 Section 7. League Investigations .............................. 50 Section 8. On-Court Conduct .................................. 51 ARTICLE VII BASKETBALL RELATED INCOME, SALARY CAP, MINIMUM TEAM SALARY, AND ESCROW ARRANGE- MENT................................................ 52 Section 1. Definitions........................................... 52 (a) Basketball Related Income ........................ 52 (b) Core Basketball Revenues................... 67 (c) Projected BRI................................. 68 (d) Local Expansion Team BRI................. 70 (e) Projected Local Expansion Team BRI............................................. 70 (f) Interim Projected BRI........................ 70 (g) Barter .......................................... 70 (h) Estimated Total Salaries and Benefits........................................ 70 (i) Estimated BRI ................................ 70 Section 2. Calculation of Salary Cap and Minimum Team Salary......................................... 71 (a) Salary Cap..................................... 71 (b) Minimum Team Salary...................... 72 (c) Expansion Team Salary Caps and Minimum Team Salaries .................... 73 (d) Adjustments to Salary Cap and Minimum Team Salary...................... 73 Section 3. Determination of Salary............................ 75 (a) Deferred Compensation ..................... 75 (1) General Rules .......................... 75 (2) Over 36 Rule ........................... 76 (b) Signing Bonuses.............................. 79 (1) Amounts Treated as Signing Bonuses ................................ 79 (2) Proration ................................ 79 (3) Signing Bonus Credits................. 79 (4) Extensions .............................. 81 (c) Loans to Players.............................. 82 (d) Incentive Compensation..................... 83 (e) Foreign Player Payments.................... 85 (f) One-Year Minimum Contracts ............. 86 (g) Existing Contracts............................ 86 Section 4. Determination of Team Salary.................... 86 (a) Computation .................................. 86 (b) Expansion ..................................... 88 (c) Assigned Contracts........................... 88 (d) Free Agents ................................... 89 (e) First Round Picks............................. 90 (f) Incomplete Rosters........................... 92 (g) Renouncing.................................... 92 (h) Long-Term Injuries .......................... 93 (i) Summer Contracts............................ 94 (j) Team Salary Summaries..................... 95 Section 5. Operation of Salary Cap ........................... 95 (a) Basic Rule..................................... 95 (b) Room........................................... 96 (c) Annual Salary Increases and Decreases...................................... 96 (d) Performance Bonuses........................ 98 (e) No Futures Contracts ........................ 99 Section 6. Exceptions to the Salary Cap...................... 100 (a) Existing Contracts............................ 100 (b) Veteran Free Agent Exception.............. 100 (c) Disabled Player Exception.................. 101 (d) $1 Million Exception ........................ 104 (e) Mid-Level Salary Exception................ 105 (f) Rookie Exception ............................ 106 (g) Minimum Player Salary Exception......... 106 (h) Assigned Player Exception.................. 106 (i) Reinstatement................................. 110 (j) Non-Aggregation............................. 111 (k) Other Rules.................................... 111 Section 7. Extensions, Renegotiations and Other Amendments......................................... 112 (a) Veteran Extensions........................... 112 (b) Rookie Scale Extensions .................... 114 (c) Renegotiations................................ 114 (d) Other........................................... 116 Section 8. ...................................................Trade Rules 117 Section 9. Miscellaneous....................................... 118 Section 10. Accounting Procedures ............................ 119 Section 11. Players Association Audit Rights................. 122 (a) Team Audits .................................. 122 (b) Expense Audit ................................ 123 Section 12. Escrow Arrangement ............................... 124 (a) Commencement............................... 124 (b) Definitions .................................... 124 (1)-(3) “Adjustment Player” through “Aggregate Compen- sation Adjustment Amount Shortfall”................................ 124 (4)-(9) “Audit Report Challenge Period” through “Escrow Schedules”............................ 125-126 (10)-(12) “Individual Compensa- tion Adjustment Amount” through “Overage”..................... 126 (13)-(17) “Projected Aggregate Compensation Adjustment Amount” through “Team Escrow Limit”........................ 127-128 (c) Compensation Adjustment Rules........... 128 (d) Escrow Procedure............................ 128 (e) Reconciliation Procedures .................. 130 (f) Aggregate Compensation Adjustment Amount Shortfalls ............. 134 (g) Team Payments............................... 135 (h) Miscellaneous................................. 135 ARTICLE VIII ROOKIE SCALE ................................... 137 Section 1. Rookie Scale Contracts for First Round Picks.................................................. 137 Section 2. Rookie Contracts for Later-Signed First Round Picks ......................................... 138 Section 3. Loss of Draft Rights................................ 138 ARTICLE IX LENGTH OF PLAYER CONTRACTS ......... 140 Section 1. Maximum Term..................................... 140 Section 2. Computation of Time..............................