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I'll explain using an example:
Team A has a trade exception for $5 million. It expires on August 25th, 2004.
On July 20th, 2004, Team B trades a $5 million player to Team A and receives no salary back. Perfectly legal trade.
Team B now has a trade exception for $5.1 million that expires on July 20th, 2005.
It's not so much that one team transfers a trade exception from one team to another. Instead, one team uses their trade exception at the same time that another team gains a trade exception.
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