Sorry, I had it backwards. Cavs are the one who needs to use a trade exception to take on Kersey. I don't need to use a trade exception, since I have cap room.
Sign a min FA guy for the Cavs (one of the ones I already signed in the cuts/signings section, maybe), use the TE to bump up his salary, then trade him for Kersey, then Bradley, Marion, Demler and a first for Robinson. I have the cap room to absorb it.
But, as NetsGM said, this original trade actually does work under the rules. So none of this is necessary.
As they say at ING, Derek, "save your money".
Pacers, I'm not entirely sure - standard FBB as far as I know. I think of it as one of the incentives/perks of being under the cap. You know, a benefit in the event that you get hosed during free agency....lets you make more moves.