Conductor Ampacity

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Correct, if your #10s have 90° insulation (THHN, THWN-2, etc)
 
That math checks. 40A(assuming your insulation is rated for 90degC) * 50% (adjustment factor) = 20A.
 
I believe you also need to be a little more careful about the wire types if you are running in a wet location (like outdoor or underground conduit).

Some insulation types are rated for 90 deg C in a dry location, but only 75 deg C in a wet location.
 
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