He may not sign, but I could see a lot of teams requesting it. Lots of players have some sort of insurance clause in their contract. Hamilton has relapsed twice, so it's certainly not unfair for a team investing that much money to want the clause included. I don't see anyone offering him 7 years though, no matter what clauses are in the contract. He's showing signs of starting to break down already.
Question is, if he can get you to a WS in the next 2-3 seasons, is that worth the wasted years on the back end of the contract.