Here’s what an Exhibit 10 deal is, according to Sporting News:
An Exhibit 10 contract is a one-year, minimum salary contract with no other bonuses. The Exhibit 10 attachment gives NBA teams the ability to convert the contract into a Two-Way deal, but only if they do it before the start of the regular season.
They are usually non-guaranteed, allowing teams to waive the player without taking a cap hit. In that situation, the player would earn a bonus of between $5,000 to $50,000 if they remain with the team's G League affiliate for 60 days.
Exhibit 10s are handy to teams for a couple of reasons. For one, they allow the flexibility to either retain the player on a minimum deal or convert the contract to a Two-Way depending on their performance. They also allow for the player to be waived at no cap penalty if the team isn't sold on their potential.
