In the avalanche of undrafted free agents agreeing to contracts with NBA teams, you might see the term "Exhibit 10 Contract" crop up a few times. The latest example of this unique deal being given out was Tacko Fall, the 7-6 UCF center who agreed to a deal with the Boston Celtics.
An Exhibit 10 contract is a one-year deal worth the minimum salary that guarantees the player will receive a camp invite. Fall, for instance, can either have his Exhibit 10 converted into a two-way contract, or will be waived.
If he is waived, the player will be offered $50,000 to sign with the G League affiliate of whomever waved them. Provided he stays on the roster for 60 days, he will earn that $50,000 bonus. The Exhibit 10 contract was created to incentivize players to stay in the G League as opposed to going abroad.
A team can’t carry more than six Exhibit 10 contracts at a time, and an Exhibit 10 contract can only be converted to a two-way deal before the regular season begins.
Even though an Exhibit 10 contract that gets converted to a two-way deal can later also turn into a standard NBA contract, it won't count against an NBA team's salary cap.
With these contracts, the G League pool continues to get stronger with each passing year.