You are only allowed to sign a player to two ten day contracts, after the second you must sign them for the rest of the season. They probably just need depth and don’t want to spend money, so this guy will probably be gone after 20 days as well. I believe Nichols will eventually make a roster spot somewhere, he lights up the d-league and is very consistent. If he rounds off his game he will have some sort of future be it here or overseas. Its good to see him make some money though as he probably pulled down close to 100 thousand with those contracts.

Here is where I got my info from:
http://members.cox.net/lmcoon/salarycap.htm

What is a 10-day contract?

A 10-day contract is just that, a player contract which lasts ten days (or three games, whichever comes later). A team may sign a player to two 10-day contracts in one season (they may or may not be consecutive). After the second 10-day contract, the team can only retain the player by signing him for the remainder of the season. A team can’t have more 10-day contracts than they have players on their Inactive List. Ten-day contracts are available to be used starting January 5 (or the first business day thereafter) each season.