12.6. Walk-Away Rights.
(a) If a Club has elected to arbitrate a one year contract,
and the award issued is for $550,000 or more per annum, then the
Club may, within 72 hours after the award of the Arbitrator is
issued (or if a Club has any other player still eligible for
salary arbitration at that time and for whom a decision has not
been rendered by an Arbitrator at that time, and the Club still
has a walk-away right available to it in such League Year
pursuant to paragraph (d) below, 72 hours after the award of the
Arbitrator for such other player is issued), notify the player,
the NHLPA and the NHL in writing that it does not intend to
tender to the player a Player Contract based on the award as
determined by the Arbitrator. Upon receipt of that notice, the
player shall automatically be deemed to be an Unrestricted Free
Agent, subject to the provisions of paragraphs (c) and (d) below.
(b) If a Club has elected to arbitrate a two year contract
and the award issued is for $550,000 or more per annum, then the
Club may, within 72 hours after the award of the Arbitrator is
issued (or, if a Club has any other player still eligible for
salary arbitration at that time and for whom a decision has not
been rendered by an Arbitrator at that time, and the Club still
has a walk-away right available to it in such League Year
pursuant to paragraph (d) below, 72 hours after the award of the
Arbitrator for such other player is issued), notify the player,
the NHLPA and the NHL in writing that it does not intend to
tender to the player a two year Player Contract based on the
award as determined by the Arbitrator. Upon receipt of that
notice by either the player or the NHL, the player and the Club
shall enter into a one year Player Contract providing for the
Compensation set forth in the award and the player will
automatically be deemed to be an Unrestricted Free Agent at the
conclusion of that one year Player Contract subject to the
provisions of paragraphs (c) and (d) below.
(c) If a Club exercises its walk-away right, the following
applies:
(i) If the player accepts an offer from a
New Club in respect of that year of the contract which the Prior
Club has walked-away from that is less than 80% of the award for
such year, the Prior Club may, within seven (7) days after the
date it receives the applicable Offer Sheet, elect to match the
offer of the New Club and the Player and the Prior Club shall
enter into a Player Contract on those terms and conditions; or
(ii) The player may (A) within seven (7)
days after receipt of notice from the player's Prior Club that
the Prior Club elects to walk-away from the arbitration award, in
respect of the Prior Club's request for a one year contract, or
(B) by July 15 of the League Year following
the expiry of the first year of the award issued by the
Arbitrator where the Club had requested a two-year contract, in
either case by written notice to the Club, elect to enter into a
Player Contract with the Club on the terms and conditions set
forth in the Prior Club's Qualifying Offer. If such election is
timely exercised, the Club must enter into such contract and, at
the end of the term thereof, the Player shall be a free agent
subject to the provisions of Article 10.
(d) Notwithstanding the provisions of paragraphs (a) and (b)
above, a Club may exercise the walk-away rights referred to
therein not more than 3 times in any contiguous two League Years
and in any event not more than twice in any League Year. If a
Club exercises its walk-away right with respect to a two year
award, the walk-away right shall be deemed to be exercised in the
first year of the two year contract.
(e) The dollar amount of $550,000 set forth in each of
paragraphs (a) and (b) above, shall be increased on an annual
basis at the same percentage rate of increase as the Average
League Salary, with the commencement of the 1996/97 League Year
being the first year such increase shall take effect. By way of
example, if the Average League Salary on June 30, 1996 has
increased by 10% from the Average League Salary on June 30, 1995,
then the figure of $550,000 stated in paragraphs (a) and (b)
above, shall be increased by 10% on June 30, 1996, and the
ability of a Club to walk-away from an arbitration award rendered
after June 30, 1996, shall be adjusted accordingly. For each
League Year thereafter, a similar comparison and adjustment shall
be made.