10.4c does not apply here.
10.4 An offside player may be penalised, if that player :
c. Was in front of a team-mate who kicked the ball and fails to retire immediately
behind an onside team-mate or an imaginary line across the field 10 metres on
that player’s side from where the ball is caught or lands, even if it hits a goal post
or crossbar first. If this involves more than one player, then the player closest to
where the ball lands or is caught is the one penalised. This is known as the 10-
metre law and still applies if the ball touches or is played by an opponent but not
when the kick is charged down.
The emboldened part is the key bit here. Law 10.4c is designed so that an opponent catching the ball isn't confronted with opponents the moment he field or catches the ball. It gives him 10m of territory (used to be a 10m circle) to work with.
When the ball is touched in flight, 10.4c is off the table, and the rest of Law 10 applies, particularly 10.7b iv
10.7 Other than under Law 10.4c, an offside player can be put onside when
b. An opponent of that player :
iv. Intentionally touches the ball without gaining possession of it.
Touched in flight by the opponents has been called as "Play on" for as far back as I can remember.