This player is a Type B free agent. This will result in the player's former franchise receiving a supplemental round draft pick in this year's amateur draft.....

this is the message that comes with it? Does this mean I give up one of my upcoming amature draft picks to the former team? And if that's correct, is which pick is it? I currently have top 5 pick and not sure if I should make that move if that's how it is...

You don't give up a pick for Type B.

What Mike said. It's an extra pick for the team that lost him, not one of yours that you're giving them.

Everyone signs type B's because if you don't, someone else will and the team will get the pick anyways.