An Exhibit 10 contract is a one-year, minimum salary NBA contract with a specific addendum. This addendum allows the team to convert the contract into a two-way contract before the start of the regular season. If the player is waived by the NBA team, and then joins its G League affiliate, they are eligible to receive a bonus of up to $75,000. This bonus is contingent upon the player remaining with the G League affiliate for at least 60 days.
These agreements provide teams with increased flexibility in managing their rosters. They serve as a low-risk mechanism to evaluate talent during training camp and the preseason. For players, these agreements offer a pathway to potentially secure a spot on an NBA roster via a two-way contract, or guaranteed compensation for playing in the G League. Historically, these contracts were introduced to incentivize players to develop within a team’s system and strengthen the connection between NBA teams and their G League affiliates.