To summarize, a restricted free agent essentially has five options:
He can accept his prior team's qualifying offer, play for one season, and become a free agent again the following summer.
He can accept his prior team's maximum qualifying offer (if applicable, and if one has been submitted) and play under a long-term contract at the maximum salary.
He can negotiate a new contract with his prior team that is independent of the qualifying offer or maximum qualifying offer.
He can sign an offer sheet with another team through March 1, which his prior team is given the opportunity to match.
If he doesn't sign a qualifying offer, a contract, or an offer sheet for one year, his prior team can submit a new qualifying offer (or maximum qualifying offer), and the player becomes a restricted free agent again the following offseason.