From Jimmy Smith at the Times-Picayune:
"The New Orleans Hornets have picked up the option of starting shooting guard Marco Belinelli, but have decided not to tender an offer to forward Jason Smith, making him an unrestricted free agent, league sources said Thursday afternoon."
Apparently Dell Demps agrees with the assessment Rohan made today about Marco. He effectively becomes a restricted free agent, with the Hornets having the opportunity to match any free agent offer that he may receive. If not, he'll earn 3.377 million next year with New Orleans.