The Giants have reportedly offered the two-time Cy Young winner a three year, $37 million contract. Lincecum's agent has countered at more than $40 million.
The Giants offer is respectable, but if Lincecum wins the arbitration, he will make $13 million for this season and the dollars are only going to go higher if he keeps pitching well.
Keep in mind--no matter what happens, the Giants own Lincecum's rights for the next four seasons.