The Chargers confirmed an agreement, pending Freeney, 33, formally signing the contract.
The pact is similar to the two-year, $8.5 million free agent deal defensive end Osi Umenyiora signed recently with the Atlanta Falcons that includes weekly roster bonuses. Freeney's deal, with a $3.25 million signing bonus, includes $500,000 in roster bonuses. The salaries, roster and signing bonuses total $8.75 million.
Other incentives are tied to sacks -- Freeney's specialty.
Freeney, who earned $14 million in 2012, was a cornerstone for the Indianapolis Colts defense for 11 seasons. With the Chargers, he reunites with general manager Tom Telesco, who was Indianapolis' vice president of football operations until replacing A.J. Smith in San Diego this year.
San Diego runs a 3-4 defense coordinated by John Pagano -- whose brother, Chuck, is the Colts' head coach -- but apparently plans to adjust some schemes that would put Freeney in his more natural position as a down lineman.
Freeney, one of the NFL's premier pass-rushers for more than a decade, last season played a stand-up outside linebacker role and produced just five sacks -- second-fewest in his career.
Freeney, with 107 1/2 career sacks, also drew interest on the free agent market from the New England Patriots and Denver Broncos -- on whom he could have been reunited with former Colts quarterback Peyton Manning -- but the competition for his services did not include contract offers that compared to his deal with the Chargers.
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