Originally reported as a two-year deal with a maximum value of $13 million (which is still true), Florio cites a league source in reporting the following: the two-year deal has a base value of $6.1 million, and guarantees Kolb a payment of $1 million.
Ryan Fitzpatrick, for the record, signed a two-year, $6.5 million contract with the Tennessee Titans - so Kolb is essentially paid like a top-end backup. If he meets all of his escalators, he'll be paid like a low-end starter. (The Bills reportedly offered Fitzpatrick a deal before he was cut that could have netted him $7 million annually; Kolb obviously maxes out at $6.5 million per year). If he gets cut before the 2013 season, the Bills are only out $1 million, which is the guaranteed figure.
This is essentially what we expected: a deal in the vicinity of Fitzpatrick's with the max values built in if Kolb wins the starting job and finally realizes his NFL potential. It's also a very easy deal for the Bills to get out of if things don't work out. That's a win-win deal as the team looks for a long-term answer at the position heading into the 2013 NFL Draft.