CLEVELAND -- Outfielder Jason Michaels and the Indians reached a preliminary agreement Monday on a $4.25 million, two-year contract and reliever Matt Miller and Cleveland agreed to a $560,000, one-year deal.
Michaels, who hit .267 with nine homers and 55 RBI last year, gets a $100,000 signing bonus and salaries of $2 million this season and $2.15 million in 2007. Cleveland has a $2.6 million option for 2009.
In addition to his salary, he could earn $600,000 annually in performance bonuses: $50,000 each for 350 and 400 plate appearances, $100,000 each for 450 and 500 plate appearances and $150,000 each for 550 and 600 plate appearances.
Michaels must pass a physical for the deal to be finalized. Because of that, he and the Indians will swap proposed arbitration salaries on Tuesday.
Right-handers Jason Davis and Rafael Betancourt also filed for arbitration Friday and are set to exchange proposed arbitration figures.
Miller had elbow problems last year and went 1-0 with 3.45 ERA in 14 games. The right-hander had surgery on his pitching elbow in April and didn't pitch again in the majors until Sept. 5. He had a 1.17 ERA in eight appearances in September.
Cleveland also sent right-hander Brian Sikorski outright to Triple-A Buffalo. Sikorski, who will be invited to spring training, had been designated for assignment Jan. 4 when the Indians agreed to a deal with closer Keith Foulke.




