The CBA Glossary

What an Exhibit 10 contract is

The term "Exhibit 10" refers to Exhibit 10 of the Uniform Player Contract (i.e. the tenth additional item affixed to the end).

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Every Contract with an Exhibit 10 shall provide the Team
with an option (to be set forth in Exhibit 10) to convert the
Contract to a Two-Way Contract that provides for the
Two-Way Player Salary (“Two-Way Player Conversion
Option”); provided, however, that the Two-Way Player
Conversion Option (a) must be exercised prior to the first
day of the NBA Regular Season, and (b) may not be
exercised if it would result in a violation of Article X, Section
4(d). If a Team exercises the Two-Way Player Conversion
Option, (w) the Contract’s Exhibit 1A will immediately
become null and void and of no further force or effect and
the Player’s Compensation shall be equal to the Two-Way
Player Salary applicable for such Season, (x) the Player’s
right to an Exhibit 10 Bonus (if applicable) will be rescinded,
(y) the Player’s Contract, notwithstanding the absence of an
Exhibit 2, shall have Base Compensation protection for lack
of skill and injury or illness at an amount equal to the
Conversion Protection Amount, and (z) all other terms and
conditions of the Contract shall remain applicable.
(ii) If a Team exercises a Two-Way Player Conversion Option
pursuant to a Contract with an Exhibit 10, such Contract
shall be considered a Two-Way Contract for the purposes of
this Agreement and subject to all applicable Two-Way
Contract rules herein (including, but not limited to, the
Article II 57
Standard NBA Contract Conversion Option) except that
such Contract need not contain an Exhibit 1B.
(iii) To effectuate the requirements set forth above, every
Contract with an Exhibit 10 must contain the following
language (and only such language) under the “Two-Way
Player Conversion Option” and “Standard NBA Contract
Conversion Option” headings, respectively:
Two-Way Player Conversion Option: Team shall have
the option to convert this Contract to a Two-Way Contract
(“Two-Way Player Conversion Option”); provided,
however, that (a) such option must be exercised prior to the
first day of the NBA Regular Season, and (b) may not be
exercised if it would result in a violation of Article X,
Section 4(d) of the CBA. Team’s Two-Way Player
Conversion Option may be exercised by providing written
notice to Player that is either personally delivered to Player
or his representative or sent by email or pre-paid certified,
registered, or overnight mail to the last known address of
Player or his representative with a copy to the Players
Association and the NBA. If Team exercises the Two-Way
Player Conversion Option, this Contract’s Exhibit 1A will
immediately become null and void and of no further force
or effect and the Player’s Compensation shall be equal to the
Two-Way Player Salary applicable for such Season. Further,
upon conversion, the Player’s right to the Bonus Amount (if
applicable) set forth above pursuant to this Exhibit 10 will
be rescinded and the Player’s Contract, notwithstanding the
absence of an Exhibit 2, shall be protected for lack of skill
and injury or illness at an amount equal to the Conversion
Protection Amount in this Exhibit 10. All other terms and
conditions of this Contract shall remain applicable.
Standard NBA Contract Conversion Option: In the
event the Two-Way Player Conversion Option is exercised
by the Team, Team shall thereafter have the option to
convert the Contract to a Standard NBA Contract
(“Standard NBA Contract Conversion Option”). Team’s
Standard NBA Contract Conversion Option may be
58 Article II
exercised by providing written notice to Player that is either
personally delivered to Player or his representative or sent
by email or pre-paid certified, registered, or overnight mail
to the last known address of Player or his representative with
a copy to the Players Association and the NBA. If Team
exercises the Standard NBA Contract Conversion Option,
the Base Compensation amount applicable to the Two-Way
Contract as set forth in this Exhibit 10 will immediately
become null and void and of no further force or effect,
Player’s Compensation shall be equal to the Player’s
applicable Minimum Player Salary for such Season beginning
on the date such option is exercised, and all other terms and
conditions of this Contract, including the Base
Compensation protection set forth in this Exhibit 10, shall
remain applicable.

The "repeater" tax

(s) By agreeing upon provisions (to be set forth in Exhibit 10 to a
Uniform Player Contract), subject to Section 11(h) below:
(i) entitling a player to receive a bonus (the “Exhibit 10 Bonus”)
in an amount between $5,000 and the “Maximum Exhibit 10
Bonus Amount” (defined below) for the Salary Cap Year in
which the Contract is signed if (1) the Contract is terminated
by the Team in accordance with the NBA waiver procedure
prior to the first day of the Regular Season, and (2) the player
(a) signs with the NBAGL prior to the deadline set by the
NBAGL for NBAGL teams to designate affiliate players,
(b) is initially assigned by the NBAGL to such Team’s
NBAGL affiliate as listed in Exhibit 10 and timely reports to
such affiliate, and (c) does not leave the NBAGL (e.g., by
buying out his contract with the NBAGL and signing a
contract with an international team) prior to providing
sixty (60) consecutive days of service during the NBAGL
Season (the “60-Day Service Period”), provided that, in the
event the player is signed to one or more Contract(s) by the
Team prior to completing the 60-Day Service Period, the
player shall still satisfy this clause (c) if he timely returns to
such Team’s NBAGL affiliate upon the completion or
termination of such Contract(s) and completes the
outstanding portion of the 60-Day Service Period. For
clarity, a player will not satisfy this clause (c) if at any time
prior to completing the 60-Day Service Period he signs a
contract with a professional basketball team other than the
Team. In the event a player fails to satisfy clause (c) above
as a result of an injury resulting directly from his playing for
the Team’s NBAGL affiliate, such player shall nonetheless
be entitled to receive the Exhibit 10 Bonus set forth in his
Contract. Notwithstanding anything to the contrary in the
foregoing, an Exhibit 10 may only contain an Exhibit 10
Bonus if the Team has an NBAGL affiliate at the time of the
execution of the Contract; provided, however, that if a Team
with an NBAGL affiliate acquires by assignment a Contract
22 Article II
with a Conversion Protection Amount but without an
Exhibit 10 Bonus (the “Acquired Exhibit 10”), the Acquired
Exhibit 10 shall be deemed to include an Exhibit 10 Bonus
equal to the Conversion Protection Amount; and
(ii) stating that, if prior to the first day of the Regular Season
(A) the Team exercises the Two-Way Player Conversion
Option in accordance with Section 11(h) below, and/or
(B) the Contract is not terminated by the Team, the
Compensation provided for by the Contract will be
protected for lack of skill and injury or illness in an amount
(the “Conversion Protection Amount”) between $5,000 and
the Maximum Exhibit 10 Bonus Amount; provided,
however, that if the Exhibit 10 contains an Exhibit 10
Bonus, the Exhibit 10 must also contain a Conversion
Protection Amount and the Conversion Protection Amount
must be equal to the Exhibit 10 Bonus.
The “Maximum Exhibit 10 Bonus Amount” shall be: (1) $75,000 for the
2023-24 Salary Cap Year, and (2) for each subsequent Salary Cap Year,
$75,000 multiplied by a fraction, the numerator of which is the Salary Cap
for the applicable Salary Cap Year and the denominator of which is the
Salary Cap for the 2023-24 Salary Cap Year.
In the event that NBAGL rules permit a Team, other than the Team that
last requested waivers on the player, to designate the player as an affiliate
player (the “Designating Team”), the Designating Team shall be responsible
for paying the Exhibit 10 Bonus to the player provided that (a) the
Designating Team designates the player as an affiliate player, (b) prior to the
waiver, the Designating Team was a party to the Contract containing the
Exhibit 10 Bonus, and (c) the player satisfies the conditions set forth in
Section 3(s)(i) above with respect to the Designating Team’s NBAGL
affiliate.
With respect to a player, if the NBAGL affiliate of an NBA Team is
permitted, pursuant to NBAGL rules, to designate the player as a returning
player (such NBA Team, the “Returning Rights Team”), then any Team
other than the Returning Rights Team shall, prior to entering into a Contract
containing an Exhibit 10 with the player, be required to provide written
notice to the player (with a copy to the Players Association) that, pursuant
Article II 23
to NBAGL rules, the NBAGL affiliate of the Returning Rights Team holds
the right to so designate the player. The NBA shall impose a fine of no less
than $25,000 on any Team that fails to provide the notice required by this
paragraph.
No Team may (a) be a party at any one time to more than six (6) Contracts
containing an Exhibit 10, or (b) enter into a Player Contract with an
Exhibit 10 unless such Contract is for one (1) Season in length, provides for
the Minimum Player Salary (with no bonuses of any kind other than the
Exhibit 10 Bonus), and does not provide for Compensation protection of
any kind pursuant to Section 3(i) above (other than in connection with
Section 3(s)(ii) above).
A Team may enter into a Contract with both an Exhibit 9 and an Exhibit 10
in accordance with the preceding terms; provided, however, that if a Team
exercises its Two-Way Player Conversion Option, the Contract’s Exhibit 9
shall be rendered null and void and of no further force or effect upon the
exercise of such Two-Way Player Conversion Option.

Summer contracts

(r) By agreeing upon provisions (to be set forth in Exhibit 9 to a
Uniform Player Contract) eliminating the player’s right to receive his Base
Compensation (in accordance with Paragraphs 7(c), 16(a)(iii), and 16(b) of
the Uniform Player Contract) in the event the Contract is terminated prior
to the first day of the Regular Season covered by such Contract; provided,
however, that such amendment shall be permitted only if: (i) the Contract
is for one (1) Season in length, provides for the Minimum Player Salary (with
no bonuses of any kind) or Two-Way Salary and does not provide for
Compensation protection of any kind pursuant to Section 3(i) above (a
“Non-Guaranteed, Training Camp Contract”); (ii) at the time of signing the
Non-Guaranteed, Training Camp Contract, the Team has no fewer than
fourteen (14) players signed to Player Contracts (not including any player
signed to a Two-Way Contract or a Non-Guaranteed, Training Camp
Contract) on the Team’s roster in respect of the upcoming (or, after the first
Article II 21
day of training camp, the then-current) Season; and (iii) no Team may be a
party at any one time to more than six (6) Non-Guaranteed, Training Camp
Contracts.

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WHAT THE CBA ACTUALLY SAYS

1. What the salary cap is “Standard NBA Contract Conversion Option” means an
   option in a Two-Way Contract in favor of a Team to convert the Contract
   to a Standard NBA Contract that provides for a Salary for each Salary Cap
   Year equal to the player’s applicable Minimum Player Salary and a term equal
   to the remainder of the original term of the Two-Way Contract, in
   accordance with Article II, Section 11(f).
2. Fundamental salary basics Guarantees, proration, maximum raises/decreases, 10-day contracts, roster sizes, etc

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