Here's what I wrote in an earlier thread regarding this topic:

"Anyhow, it’ll be interesting to see what kind of contract Pendergraph receives from the Trail Blazers. As it is, anything beyond a two-year, minimum-level contract — which’d be worth a total of $1,219,783 (2009-2010: $457,588 & 2010-2011: $762,195) — would dip into either cap space or the mid-level exception.

After viewing contracts of a few high-end second-round draft picks signed the past couple of years, it seems fair to dip into either cap space or the mid-level exception to give Pendergraph an appropriate contract. As a result, a three-year, $2,470,500 contract (2009-2010: $762,500; 2010-2011: $823,500; 2011-2012: $884,500) — which includes maximum annual raises of 8% and the third season non-guaranteed if he’s waived before 7/1/2011 — is what I’d offer him."

http://www.blazersedge.com/2009/6/26/925910/my-favorite-pick-in-todays-draft#17451024

Depending on what the Portland Trail Blazers front office decides to do within the upcoming week and the week thereafter during the July moratorium, the organization will either have a modicum of cap space or a slew of exceptions -- which include the mid-level, the bi-annual, a couple of trade exceptions, and perhaps the Bird rights of Raef LaFrentz that'd bring with it a whopping $19,083,750 cap hold (i.e., 150% of his salary this past season) -- and, in all likelihood, Jeff Pendergraph's contract will dip into those funds.

As is common practice in the NBA today, most high-end second-round picks demand more than the maximum that's allowed without reaching into excess funds -- which, for this upcoming fiscal year, would be two-year, minimum-level contract worth a total of $1,219,783 (2009-2010: $457,588 & 2010-2011: $762,195) -- thus, it'll be interesting to see what kind of deal is agreed to between the franchise and Pendergraph.

As far as I'm concerned, Pendergraph deserves a deal approximate to two guaranteed seasons and team options for the final two seasons -- which is what first-round picks are granted -- at a cost that's worth slightly less than the rookie scale amount for the 30th pick this season (i.e., $824,200); ergo, that's how I came up with my above proposal.

Yet, rather than two separate team options for the third and fourth seasons on the contract similar to first-round picks, I trimmed it down to a three-year contract -- which makes sense since second-round picks are restricted free-agents after the third completed season, but unrestricted free-agents after the fourth competed season -- as well as made the final year of the contract a non-guaranteed salary if waived prior to a certain date (i.e., 7/1/2011) instead of a team option for flexibility purposes.

All things considered, a three-year, $2,470,500 contract (2009-2010: $762,500; 2010-2011: $823,500; 2011-2012: $884,500) -- which includes maximum annual raises of 8% and the third season non-guaranteed if he’s waived before 7/1/2011 -- for Pendergraph seems like a fair-market value deal to me.