The Padres have reached to contract agreements with C John Baker and P Joe Thatcher. Thatcher is signed for a $700k contract and Baker to a $750k contract (per Bill Center of the SDUT).

We still have to wait for contract agreements/amounts with nine other Padres players that are arbitration eligible. Here is the lsit of players that we still are waiting on:

• Edinson Volquez*
• Tim Stauffer*
• Dustin Moseley
• Clayton Richard
• Luke Gregerson*
• Nick Hundley*
• Chase Headley*
• Carlos Quentin*
• Will Venable*

Here is a quick summary of salary arbitration through wiki.answers that explains it pretty well:

A player or a club is allowed to submit a dispute over a player's salary to binding arbitration after a certain number of years in service have been accumulated by the player (usually between three and six years). The player's statistics are used as the key arbitration tool. Statistics covering productivity, longevity, potential and comparable worth as compared to like-situated players are used. The arbitrator must use these statistics to decide.

The arbitrator has the authority to choose between two amounts: one submitted by the team, the other by the player. There is no room for compromise. Some have criticized this system as bias towards the player, but in recent years, the teams have been quite successful

The salaries of these players will determine the flexibility we have on the 2012 payroll. Stay tuned on the Friarhood as more players sign their contracts.

Players with an * have agreed to terms, but the amount has not been disclosed as of this time.