The 30-year-old gets salaries of $11.25 million this year, $12.25 million in 2015, $13 million in 2016 and $13.5 million in 2017 under Wednesday's agreement. Each season's salary includes $2.25 million deferred without interest, payable in four equal installments on each July 1 starting in 2018.
He can earn a pair of $400,000 performance bonuses each year, for 32 starts and 200 innings. If he wins a Cy Young Award or is MVP, his salary in each remaining year of the contract would escalate by $500,000. The salaries would go up by $250,000 if he finishes second in either vote and by $150,000 if he is third.
Jimenez, who is to be introduced at a Thursday news conference, is 82-75 with a 3.92 ERA in eight seasons with Colorado and Cleveland, including 13-9 with a 3.30 ERA for the Indians. He was the NL All-Star game starter in 2010, when he was 19-8 with a 2.88 ERA for Colorado.
Baltimore forfeits its first-round selection in June's amateur draft, the 17th pick overall.
Jimenez joins a rotation expected to include Chris Tillman, Wei-Yin Chen, Miguel Gonzalez and Bud Norris. To clear a roster spot, Baltimore designated right-hander Liam Hendriks for assignment.