Stephenson, 27, is a versatile playmaker who averaged 9.2 points, 5.2 rebounds and 2.9 assists for the Indiana Pacers last season.
Stephenson has played eight seasons with Indiana, Charlotte, the Los Angeles Clippers, Memphis, New Orleans and Minnesota. He has career averages of 8.8 points, 4.3 rebounds and three assists.
Stephenson was drafted 40th overall by the Pacers in 2010.
Stephenson and James have had some interesting moments and exchanges on the court, but are now set to work together to return the Lakers to glory.
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