Tobin, that seems alittle "low" for air dried lumber? That being said, air dried lumber is usually higher 14-25% depending on climate.-This type of material needs to be further dried. Ideally you would want your material to be in the 6-8% moisture range (kiln dried). If it truly is 10% you could probably get away with working it. Worst case scenario, it will warp or crack on you if it's too wet. It's better to be more on the dry side, then on the wetter side when dealing with lumber. If you purchase any of this material, let it acclimate in your shop for a week. Leave the end coating on the ends, but remove any surface coatings and stack it on some stickers to allow some air to flow through the material. If the material is completely "waxed" over, that is not a good sign. And it's probably wetter than what they are claiming. Try asking the supplier for a "small" test piece first if at all possible? That will give you an idea of what you are in store for. If you have any more questions just holler.
Dave