I think a Fallkniven WM1 would be a great choice for him - 3" blade / 7" OAL... Great size for a 10 y/o and a 10 y/o's hands... and when he gets bigger, he can use it as a backup or neck knife...
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i'll point out i have a 3G one of those in my back pocket right now. +1 on it being a perfect fit for a 10yo.
it's a top blade and i'm hoping i'll leave mine to a descendant (fyi: kid count = zero @ 36). short of it being stolen, it'll last a lifetime.
if the fancy takes you: get a lam vg-10 blank and do a nice handle/sheath for it with him as a surprise birthday project if you really wanted to make it special.
make sure to add a lanyard.