"Second baseman Aaron Hill inked a $12-million, four-year contract that starts this season and contains options for 2012, 2013 and 2014. The options are not year-to-year — the Blue Jays must extend him for either one season at $8 million, two at $16 million, or three at $24 million"
So basically the Jays decide at the end of year 4 what to do with Hill.
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