Off to Houston they go!

Just understood why the conditional 3rd round pick was in for. My best guess is that if Ladd retires July 2nd 2022 he's getting his $3mil singing bonus and he's leaving only $1mil on the table and Arizona is off the hook for the last year cap wise

2023 3rd round pick (NYI) [Conditional]***
***Conditions: The pick is not transferred to Arizona if Ladd:
1. Plays in any professional games in 2022-23 while under his current contract, or
2. Retires prior to the conclusion of the 2022-23 regular season

I'm still not clear on this... help me out, is this what needs to happen for the pick to transfer?
1) Arizona needs to buyout the current contract
2) Ladd has to play til the end of the 22-23 season with another NHL or AHL team (or not

I guess I read the terms wrong