[Nlkko]

No hard salary cap. Thank you.

Here's the settlement:

1. BRI Split - Players receive a 49-51 band of BRI, with the expectation that players will receive 51% of BRI by year 6. The split is set on a base case of 50%, with the players receiving 60.5% of every incremental dollar beyond the targeted amount, which is based on the mid-point of the agreed upon projections, or a symmetrical reduction in our share if revenues fall short of the targeted amount. The players' share this first season (2011-12) will be 51.2% of BRI.

2. System

a. Mid-Level Exception for Non-Taxpayers: The Mid-Level Exception's contract length is 4 years, every year.

b. Player Options: Player options are allowed for all players, as per the prior CBA. Owners dropped their demand to eliminate player options for high-paid players.

c. Escrow: 10% max withholding, 1% New Benefits Pool, system adjustments as necessary to avoid forecasted overage. Owners dropped their demand for unlimited escrow, carry over, true up, or banking.

d. Qualifying Offers: Beginning in 2012-13, players defined as "starters" - 41 games started or 2000 minutes, average over prior 2 seasons - will receive substantially higher qualifying offers. A first-round pick will receive the greater of his existing qualifying offer or the qualifying offer amount made to the 9th pick of the draft ($4.67 million for the 2010-11 draft class). A second-round pick or undrafted player will receive the qualifying offer amount made to the 21st pick. A first-round pick drafted 1-14 who is not a "starter" receives the amount offered to the 15th pick.

e. Max Salary: A player finishing his rookie scale contract will be eligible to receive a maximum salary equal to 30% of the Cap (up from 25%) if he signs with his prior team and is either: 1st, 2nd or 3rd team All-NBA 2 times; an All-Star starter 2 times; or 1-time MVP.

f. Minimum Salary: The owners dropped their demand to reduce the minimum salary scale by 12%. The current amounts will not be reduced.

g. Rookie Scale: The owners dropped their demand to cut the rookie wage scale. The current amounts will not be reduced.

h. Extend-and-Trade: The owners dropped their demand to eliminate extend-and-trades. As with sign-and-trades, players moving pursuant to an extend-and-trade may not receive Bird annual increases or one year longer maximum contract length.

i. Annual Increases: Annual increases will be set at 7.5% for Bird players and 4.5% for non-Bird players.

j. Taxpayers' Use of Mid-Level Exception & Sign-and-Trade: The owners agreed to a $4 million "apron" above the tax threshold. Teams may go above the tax threshold by $4 million to use the entire $5 million mid-level exception, or acquire a player via sign-and-trade. Teams above the $4 million apron may use a $3 million/3-year mid-level exception every year.

k. Cliff: No change to prior proposal to reduce the cliff by 50%.