Yeah I'm pretty sure the Rams know he's not ever going to be an elite receiving TE. But I have to think there's some expectation from them that he will be a more reliable option in his third year in this offense, where maybe they can trust him more.
IMO in a related discussion I think they want to go with more 12 sets but to do that Everett has to be ready to produce. So that might have something to do with this, where we'll see more snaps with potential to throw to them which would cause the Rams to expect an increase in production.
Either way, IF the Rams only wanted a blocking TE they could do that a whole lot cheaper. So there has to be some expectation of increased utilization and trust in this offense for them to pay him. Not an expectation of elite production of course, but more than 300 yards and "hey let's throw it to Higs they'll never expect it" once in a blue moon. So I suspect from what I've heard from scrimmages and camp in addition to this contract that there is some expectation of improvement.
