12.10 Walk-Away Rights for Player-Elected Salary Arbitration.
(a) If a Club has elected to arbitrate a one-year SPC, and the award issued is for $1,042,173 or more per annum, then the Club may, within forty-eight (48) hours after the award of the Salary 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 a Salary Arbitrator at that time, and the Club still has a walk-away right available to it in such League Year pursuant to paragraph (c) below, forty-eight (48) hours after the award of the Salary Arbitrator for such other Player is issued or that Player's arbitration case is settled), notify the Player or his Certified Agent, if any, the NHLPA and the NHL in writing, in accordance with Exhibit 3 hereof, that it does not intend to tender to the Player an SPC based on the award as determined by the Salary Arbitrator. Upon receipt of that notice, the Player shall automatically be deemed to be an Unrestricted Free Agent.
(b) If a Club has elected to arbitrate a two-year SPC and the award issued is for $1,042,173 or more per annum, then the Club may, within forty-eight (48) hours after the award of the Salary 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 a Salary Arbitrator at that time, and the Club still has a walk-away right available to it in such League Year pursuant to paragraph (c) below, forty-eight (48) hours after the award of the Salary Arbitrator for such other Player is issued or that arbitration case is settled), notify the Player or his Certified Agent, if any, the NHLPA and the NHL in writing, in accordance with Exhibit 3 hereof, that it does not intend to tender to the Player a two-year SPC based on the award as determined by the Salary Arbitrator. Upon receipt of that notice, the Player and the Club shall enter into a one-year SPC 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 SPC, subject to the provisions of paragraph (c) below.
(c) Notwithstanding the provisions of paragraphs (a) and (b) above, a Club may exercise the walk-away rights referred to therein not more than one (1) time in a League Year in which the Club has only one (1) salary arbitration award, one (1) time in a League Year in which the Club has two (2) salary arbitration awards, two (2) times in any League Year in which the Club has three (3) salary arbitration awards, two (2) times in any League Year in which the Club has four (4) salary arbitration awards, three (3) times in any League Year in which the Club has five (5) salary arbitration awards and so on. 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 SPC.
(d) The dollar amount of $1,042,173 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 2007/08 League Year being the first year such increase shall take effect. By way of example, if the Average League Salary on June 30, 2007 has increased by ten (10) percent from the Average League Salary on June 30, 2006, then the figure of $1,042,173 stated in paragraphs (a) and (b) above, shall be increased by ten (10) percent on June 30, 2007, and the ability of a Club to walk-away from an arbitration award rendered after June 30, 2007, shall be adjusted accordingly. For each League Year thereafter, a similar adjustment shall be made.
(e) No Club shall be entitled to walk away from any award in a Club-elected salary arbitration.
