I believe it falls under the bolded section
http://www.cbafaq.com/salarycap.htm#Q25
The Exceptions table from Q#25 linked above is a little more clearer
NON-BIRD EXCEPTION -- This is also a component of the Veteran Free Agent exception. Its name is somewhat of a misnomer, since Non-Bird really is a form of Bird rights. Players who qualify for this exception are called "Non-Qualifying Veteran Free Agents" in the CBA. They are veteran free agents who are neither Qualifying Veteran Free Agents nor Early Qualifying Veteran Free Agents, and include the following:
Players who finished the season with a given team, who have played no more than one season without being waived or changing teams as a free agent.
Players who were Early Bird free agents, but whose team renounced its right to use the Early Bird exception to re-sign the player.
Players who were to be Larry Bird or Early Bird free agents, were playing on one-year contracts, and were traded mid-season.
Players who finished the season with a given team, who have played no more than one season without being waived or changing teams as a free agent.
Players who were Early Bird free agents, but whose team renounced its right to use the Early Bird exception to re-sign the player.
Players who were to be Larry Bird or Early Bird free agents, were playing on one-year contracts, and were traded mid-season.
The Exceptions table from Q#25 linked above is a little more clearer
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