This exception allows a team to replace a player who has been injured and will be out the rest of the season or for the entire next season (if the injury occurs during the off-season). This exception may also be used in the tragic case of a player's death.
The team's selected replacement player may be signed for a maximum salary of either 50% of the injured player's salary, or the mid-level exception for a non-luxury tax paying team, whichever is less. Since this exception is dependent on a player being seriously injured, it requires an NBA-assigned physician to verify the extent of the injury. An example of this exception in action is when the Portland Trailblazers used it to sign replacement players when number one draft pick Greg Oden went down with multiple knee injuries. The new Collective Bargaining Agreement allows a team to sign a replacement player for only one year, down from five years under the previous CBA.