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Breakdown of J.J. Hardy's contract extension with Orioles

Orioles shortstop J.J. Hardy was joined by executive vice president of baseball operations Dan Duquette and manager Buck Showalter as they talked about the importance of Hardy remaining with the team. (Kevin Richardson)

The big news coming from Thursday's ALCS workout day was the three-year, $40 million extension signed by the Orioles' 32-year-old shortstop J.J. Hardy.

Hardy is locked up through 2017 with a club option for 2018 that can vest.

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Here is the official breakdown of the money:

Hardy's salary will be $11.5 million in 2015, $12.5 million in 2016 and $14 million in 2017, according to an industry source. The contract includes a $14 million club option for 2018 with a $2 million buyout.

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Hardy's 2018 option vests based on reaching set number of plate appearances or if he is traded during the contracted years. He also can receive up to $700,000 in performance bonuses each season. Some of the money will be deferred beyond the new contract's duration.

This is the second contract extension Hardy has signed with the Orioles. He agreed to a three-year, $22.5 million extension in July 2011.

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