Second round picks...must be signed using cap room or an available exception (see question number
25), such as the Minimum Player Salary exception or the Mid-Level exception. It is most common for a second round pick to receive the minimum salary and be signed using the Minimum Player Salary exception. However, since the Minimum Player Salary exception limits contracts to two seasons, it is not uncommon for teams to use a portion of their Mid-Level exception in order to sign the player for three seasons.
This gives the team full Bird rights at the end of the contract, and avoids the Gilbert Arenas provision