The Cincinnati Reds signed Ramon Hernandez to a new contract after declining his option. He’ll make $3 million this season, in addition to a $1 million buyout of his option.

The deal includes a $3.25 million option for 2011 that would become guaranteed if Hernandez plays in 120 games next season. If he plays in fewer, the Reds do not have the ability to exercise the option.

So Hernandez is likely looking at this as a rehabilitation season. He still gets on base at a decent rate for a catcher. If he stays healthy and posts decent offense, he can get a better job in 2011, or even become trade bait in 2010.