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I am not sure an extension is allowed like this, I am going to have someone else review.
Since contracts now start the following season...4 mil would put it at a 3 year max deal...2013 would be at 3 mil. Jeff could in fact sign him to a contract extension of 4 mil for 2 additional years after 2013. More or less what it breaks down to is...3 mil in 2013 (current contract)4 mil in 2014 (extension)4 mil in 2015 (extension)