The deal included a roster bonus of $3.4 million.
Hilliard is under contract, and he recently received a roster bonus of almost $700,000.
He was expected to make $2.75 million that season, including a $750,000 roster bonus.
Each of the 18 players who make the Olympic team will receive an additional $10,000 roster bonus.
The transaction avoided a $2 million roster bonus for June.
He is due a $500,000 roster bonus in the 2008 offseason.
He was due to receive $2.5 million and a $500,000 roster bonus this season.
A roster bonus is a feature that may be included in a professional sports player contract.
He also had to forfeit his $3 million roster bonus that was due at the start of free agency.
He had been due a $2.5 million roster bonus later in February prior to the restructuring.