That is correct, 10 users license means that only 10 active users can contribute to content or login. You can, however, have more than 10 accounts on the system, as long as those accounts are not in any of the groups that have can use permissions. You can check and change which groups have can use permission from General Configuration > Global Permissions > Licensed Users.
If at any point, you are not sure how many users you have licensed or how many remain, you can check General Configuration > License Details and look at Licensed users field.
Hope I have answered your question, if not, let us know.
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