What's a 35-plus contract
Players who sign multi-year contracts when they are age 35 or older (calculated on June 30 of the season the contract begins) count toward the cap under all circumstances, regardless of where (or if) the player is playing. The only cap relief is $100,000 from the player's cap hit if he is assigned to the minors after the first year of the contract. A buyout — either ordinary-course or compliance — can also reduce the cap hit. (See also: How do buyouts work?)
CBA reference: Section 50.5 (d-i-B-5) (P. 203)