The Denver Nuggets chose not to pick up the third year option on Julius Hodge, whose NBA career has been anything but standard after being shot during his rookie season.

Hodge will now be a restricted free agent after the upcoming season.

"I just look at it definitely as some weight off my shoulders," Hodge said. "Now I can basically focus primarily on the season and getting better each and every day. As long as I'm the first guy in the gym every day and the last to leave and I know I'm the hardest worker on the team, I know I'm going to get better. When I get my opportunity, I'm going to make the best of it."

On Sunday, Denver exercised their options on guard J.R. Smith and forward Linas Kleiza.

In eight preseason games, Smith was second on the team with a 14.4-point average and shot 39.2 percent from 3-point range. Denver acquired Smith from Chicago in exchange for guard Howard Eisley and two second-round draft picks on July 20.

Anthony Carter and Antoine Hood were waived on Wednesday by the Denver Nuggets.

Carter averaged 4.0 points and 1.8 assists in four preseason games.

Hood averaged 2.7 points in three preseason games.

The moves left the Nuggets' roster with 15 players.

If J.R. Smith is going to win the Nuggets' starting shooting guard job, he better wake up. Literally.

Smith said Nuggets coach George Karl wants him to "be serious" about practice by showing up early. It doesn't always work.

"I'm not really a morning person," Smith said. "But I've just got to get into it. I've been trying. I've been making an effort."

At least Smith woke up in time to have a good outing Sunday. He scored 15 points, shooting 3-of-7 from three-point range, to help the Nuggets to a 124-105 preseason pounding of Detroit.

Karl has expressed frustration with Smith's defense. But Karl thought Smith had a solid all-around game. "It seems like he's in a better rhythm when he's with the starters," Karl said.

Kenyon Martin had 20 points and eight rebounds before limping off the court in the third quarter and the Denver Nuggets beat the Indiana Pacers 114-102 on Wednesday night at U.S. Bank Arena.

Martin was kneed in the quadriceps and limped off the court with 3:32 left in the third quarter. The power forward, who was slowed by a variety of leg injuries last season, did not return.

Martin plans to play in the Nuggets' next exhibition game Saturday in Milwaukee.

"I'll be all right. I can't afford to miss any time," Martin said. "We'll see tomorrow. It usually feels worse the next day."

The Denver Nuggets officially waived guard Courtney Alexander, just eight days after the team signed him, the team announced Monday.

Alexander, who signed Oct. 8, didn?t play in either of the Nuggets? two preseason games.

DerMarr Johnson finally signed a one-year deal for $932,015, the league's minimum.

"I like playing basketball more than money," Johnson said of finally signing. "I know they're putting in a new Phoenix Suns-like offense, but we were working on that during the summer. I don't know all the plays, but it's not going to take too long."

The Denver Nuggets have signed G DerMarr Johnson to a contract, team Vice President of Basketball Operations Mark Warkentien announced today.  Per team policy, terms of the deal were not released.

Johnson, 6-9, 210, appeared in 58 games for the Nuggets last season, averaging 6.1 ppg and 1.7 rpg, while starting 21 times.  He shot .350 (56-160) from three-point range and has made 252 treys during his career.  

Johnson has spent the last two seasons with the Nuggets, averaging 6.6 ppg and 1.9 rpg in 129 games. For his career he has averaged 6.6 ppg and 2.4 rpg in 300 games with the Hawks, Knicks and Nuggets.

According to an NBA source, free-agent DerMarr Johnson is expected to sign with the Nuggets next week.

Mark Warkentien would not comment on Johnson because he is a free agent and Johnson's agent, Dan Fegan, did not return a phone message.

DerMarr Johnson remains a free agent with the season less than a few weeks away.

"I haven't heard a positive update on that for a while," head coach George Karl said.

Both sides appear eager to make a deal, but are at a stalemate.