Chris Bosh has agreed in principal with the Miami Heat to a five-year contract that would pay him $11 million in the first season, while Dwyane Wade has agreed to a deal that will pay $12 million initially and last four seasons.

LeBron James is seeking a one or two-year contract at a maximum amount.

James would like to maintain flexibility for future seasons.

Bosh and Wade were each scheduled to earn approximately $40 million over the next two seasons, but opted out of their contracts to apparently accommodate a raise for James while leaving cap room for another signing.

Brian Windhorst of ESPN is reporting that the Heat have told prospective free agents that they anticipate as much as $12 million in cap space.

Update: Henry Thomas, agent for both Bosh and Wade, has denied that his clients have agreed to those figures in comments to David Aldridge of NBA.com.