Article 24 PROHIBITION OF NO-TRADE CONTRACTS

24.1 General Limitation.

No Player Contract may contain any prohibition or limitation of an NBA Team’s right to assign such Contract to another NBA Team.

24.2 Exceptions to General Limitation.

Notwithstanding the provisions of Section 1 of this Article XXIV:

1. A Player Contract may contain (in Exhibit 4 to such Player Contract) a provision entitling a Player to earn Compensation if the player’s Uniform Player Contract is traded (“trade bonus”) subject to the following:
   1. A trade bonus shall be payable only the first time that the Contract is traded; provided, however, that if a Contract is signed in connection with an agreement to trade the Contract in accordance with Article VII, Section 8(e) and the Contract contains a trade bonus, the bonus shall not apply to such initial trade but shall instead be payable only the second time the Contract is traded.
   2. A trade bonus shall not exceed fifteen percent (15%) of the Base Compensation remaining to be earned by the player pursuant to the Contract at the time of the trade (excluding an Option Year if not yet exercised).
   3. The only allowable amendments to Exhibit 4 to a Uniform Player Contract shall be as follows:
      1. The specification of the amount of the trade bonus to be paid to the player, expressed as either (1) a specified percentage of the Base Compensation remaining to be earned under the Contract at the time of the trade (excluding an Option Year if not yet exercised), or (2) a specified dollar amount not to exceed a specified percentage of Base Compensation remaining to be earned under the Contract at the time of the trade (excluding an Option Year if not yet exercised).
      2. If a Player Contract contains a trade bonus that has not previously been earned:
         1. In connection with an Extension (other than pursuant to an agreement to trade the extended Contract in accordance with Article VII, Section 8(e)), to: (a) modify the amount of the trade bonus to be paid to the player (subject to Sections 2(a)(ii) and 2(a)(iii)(A) above), or (b) provide that the trade bonus provision will not be applicable to the extended term of the Contract;
         2. In connection with an Extension pursuant to an agreement to trade the extended Contract in accordance with Article VII, Section 8(e), to: (a) reduce the amount of the trade bonus to be paid to the player (subject to Sections 2(a)(ii) and 2(a)(iii)(A) above); or (b) provide that the trade bonus provision will not be applicable to the extended term of the Contract; or
         3. In connection with the trade of a Player Contract (other than pursuant to an agreement to trade an extended Contract in accordance with Article VII, Section 8(e)), to reduce the amount of the trade bonus to be paid to the player (subject to Sections 2(a)(ii) and 2(a)(iii)(A) above).
   4. A Contract that does not contain a trade bonus when signed cannot be amended to add one except that: (A) if the Contract is extended (other than pursuant to an agreement to trade the extended Contract in accordance with Article VII, Section 8(e)), the Contract may be amended simultaneously to provide for a trade bonus that will be payable only the first time that the Contract is traded following the signing of the Extension (and not as a result of any subsequent trade), and (B) if the Contract is extended pursuant to an agreement to trade the extended Contract in accordance with Article VII, Section 8(e), the Contract may be amended simultaneously to provide for a trade bonus that shall not apply to such initial trade but shall instead be payable only if the extended Contract is traded a second time (and not as a result of any subsequent trade).
   5. If, in connection with an Extension, a Contract is amended to provide that a trade bonus that has not been previously earned will not be applicable to the extended term (pursuant to Section 2(a)(iii)(B)(1)(b) or 2(a)(iii)(B)(2)(b) above), the extension must include a replacement Exhibit 4 to the Contract with the same terms as the original Exhibit 4, but also providing that “The foregoing trade bonus shall not be applicable with respect to the extended term of this Contract.” To illustrate the foregoing, assume that a player and Team agree at the time of signing of an Extension that the trade bonus contained in the original Contract shall not be applicable to the extended term. In such case: (A) if the player is first traded under the Contract during the remainder of the original term of the Contract (i.e., prior to the first year of the extended term), then the player’s trade bonus shall be calculated based solely on the Base Compensation remaining to be earned by the player pursuant to the original term of the Contract (and not on any Base Compensation payable to the Player in respect of the extended term); and (B) if the player is first traded under the Contract at any time during the extended term, then the trade bonus would not apply to such initial trade or any subsequent trade of the Contract during the extended term.
   6. In no event shall a trade bonus in a Contract be payable more than once.
2. A Player Contract entered into by a player who has eight (8) or more Years of Service in the NBA and who has rendered four (4) or more Years of Service for the Team entering into such Contract may contain a prohibition or limitation of such Team’s right to trade such Contract to another NBA Team.