It's probably more like "here's $400k for year 1. If we decide we want to keep you, then you can have another $400k but if we don't need you and you cant find anywhere else to go, we will give you $300k and keep you for the second year, your choice then whether to stay for less or not."
If true (not the numbers but the scenario), I would say well done MO'N. It means we reduce our risk if he gets injured again by not having to spend as much to keep him around, and I reckon it also means we have someone internal or external we are targetting for 2024 and we really hope only to use Josh for 2023.