This is how this contract works courtesy of Slamonline.com
An Exhibit 10 contract is a one-year, minimum salary NBA contract with a specific Exhibit 10 attachment built into it and no other bonuses. These attachments are not present in every NBA contract, only deals in which both parties have agreed to include it.
Exhibit 10 attachments allow the NBA team to convert a player’s one-year, minimum contract into a two-way contract but this has to occur prior to the start of the regular season.
These one-year deals are often non-guaranteed, which lets NBA teams waive the player and remove their cap hit from the team payroll.
Exhibit 10 attachments allow players to earn a bonus of $5,000 to $50,000 in the event that they are waived by the NBA team, then sign a deal with that franchise’s G League affiliate* and remain with that affiliate team for 60 days.
