Article 12 OPTION CLAUSES
12.1 Team Options.
Except as provided by Article VIII, Section 1, a Player Contract shall not contain any option in favor of the Team, except an Option (as defined in Article I, Section 1(jj)) that: (i) is specifically negotiated between a Veteran or a Rookie (other than a First Round Pick) and a Team; (ii) authorizes the extension of such Contract for no more than one (1) year beyond the stated term; (iii) is exercisable only once; and (iv) provides that the Salary payable with respect to the option year is no less than 100% of the Salary payable with respect to the last year of the stated term of such Contract and that all other non-monetary terms applicable in the last year of the stated term of such Contract shall be applicable in the option year.
12.2 Player Options.
A Player Contract shall not contain any option in favor of the player, except:
- an Option that: (i) is specifically negotiated between a Veteran or a Rookie (other than a First Round Pick) and a Team; (ii) authorizes the extension of such Contract for no more than one (1) year beyond the stated term; (iii) is exercisable only once; and (iv) provides that the Salary payable with respect to the option year is no less than 100% of the Salary payable with respect to the last year of the stated term of such Contract and that all other non-monetary terms applicable in the last year of the stated term of such Contract shall be applicable in the option year; and/or
- an Early Termination Option (or “ETO”) (as defined in Article I, Section 1(r)), provided that such ETO is exercisable only once and takes effect no earlier than the end of the fifth Season of the Contract. A Contract that does not provide for an ETO when signed may not be amended to provide for an ETO during the original term of the Contract. A Team and a player may enter into an Extension that contains an ETO, provided that such ETO takes effect no earlier than the fifth Season following (i) the Season during which the Extension is signed, or (ii) if the Extension is signed between Seasons, the date on which the Extension is signed. Notwithstanding the foregoing, an ETO contained in an Extension of a Rookie Scale Contract may take effect no earlier than the end of the fifth season of the extended term of the Contract. A Contract (including an Extension) that contains an ETO must specify either the Effective Season of the ETO or that the Effective Season is contingent; provided, however, that the only allowable contingency shall be whether the player or Team meets performance benchmarks designated at the time the Contract is signed.
12.3 Exercise Period.
Any Option or ETO must be exercised prior to the July 1 immediately prior to the Effective Season covered by such Option.
12.4 Option Buy-Outs.
Subject to the rules set forth in Article VII, a Player Contract that contains an Option or an ETO may provide for an Option Buy-Out Amount; provided, however, that in no event may an Option Buy-Out Amount exceed, in the case of an Option, 50% of the Salary called for in the option year or, in the case of an ETO, 50% of the Salary in the first Effective Season of the ETO.