4:48pm: ESPN's Buster Olney tweets that Penny's deal contains a $4.5MM mutual option that becomes a player option if he pitches 150 innings or wins 12 games.
1:32pm: Penny's contract is worth $4MM plus $3.5MM in performance bonuses, according to Ken Rosenthal of FOX Sports (via Twitter). A source tells Rosenthal (via Twitter) that Penny's deal is the largest ever given to an American pitcher in his first year with a Japanese team.
10:34am: Brad Penny has signed with the Fukuoka SoftBank Hawks of Nippon Professional Baseball, according to the team's website (Japanese link). Penny's deal is for one year and $3MM, plus performance bonuses, according to a report from the Yomiuri Shimbun passed along by Patrick Newman of NPB Tracker.
ESPN.com's Jerry Crasnick recently reported that Penny was weighing an opportunity with the Hawks. The 33-year-old posted a 5.30 ERA with 3.7 K/9 and 3.1 BB/9 in 31 starts for the Tigers last season.
The Chunichi Dragons have also picked up a former Major Leaguer in reliever Jorge Sosa, according to Sanspo (Japanese link). Newman writes that Sosa received a $100K signing bonus in addition to his $300K salary.