...Exhibit 10 (is) a new type of deal....
A player who is signed to a contract with an Exhibit 10 will receive a bonus up to $50,000 if he signs a contract with the team's G League affiliate upon being waived from the parent club.
However, there is a catch. A player waived by Oct. 17 must report to his G League affiliate by Oct. 20 and remain there for at least 60 days to receive the bonus (in addition to the G League salary). Unlike last season, when a team would incur a salary-cap hit for players with partially guaranteed money who were eventually waived at the end of training camp, an NBA team will not have a cap charge for the bonus money awarded.
A player signed with an Exhibit 10 can also be converted to a two-way contract by the first day of the regular season. The bonus would then be rescinded and the two-way contract would apply.
(Obviously, those October dates have changed for now)
In short, an Exhibit 10 contract is a Training Camp deal that allows the team to convert it to a 2-way deal if they like. Or, if they don't care to do that, the contract enables them to move the signee to their G League team for the cost of a $50K bonus (i.e. the player doesn't hit free agency first).
We gave one of these to Phil Booth last July & to Jalen Jones last October.