SCOTTSDALE, Ariz. (AP) -American League Cy Young winner Cliff Lee again struggled for the Cleveland Indians, giving up 12 hits and seven runs in five innings of a 10-3 loss to the San Francisco Giants on Friday.

``I definitely have to make an adjustment somewhere,' said Lee, who has given up 17 earned runs in his last 12 2-3 innings. ``It wasn't the result I was looking for. It's definitely harder to get up for a game in spring training than in the regular season. There is a little different mentality. You still have to work on locating pitches and getting better at something each time you go out.'

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Lee also talked about his contract, which is up after this season - Cleveland holds an option. He said the Indians approached him in the offseason but there haven't been any talks this spring, and he won't discuss a new deal in the offseason.

Lee is in the final year of a three-year, $15 million contract that will pay him $5.75 million this year. Cleveland holds a $9 million option for the 2010 season, up from $8 million after Lee won the Cy Young.

``They said they can't do it due to the economy,' Lee said. ``I respect that. I can't force anything.

``Once the season starts, I'm not going to consider anything like that. The offseason and spring training is when you talk about those things,' Lee said. ``During the season, I want to focus on getting guys out and giving the team a chance to win.'

Lee was 22-3 with a 2.54 ERA last season, leading the AL in both categories while tying for the major league lead in victories.

The Giants scored three runs in the first inning off Lee and four in the second, when Rich Aurilia hit his second home run of the spring.

Lee, Cleveland's opening day starter April 6, struck out six and did not walk a batter.

Giants infielder/outfielder Eugenio Velez had three hits, including a double and a triple, and drove in two runs. He is hitting .339.

Outfielder Andres Torres, in competition with Velez and several others for what appears to be one roster spot among position players, had two hits, including a double. He is hitting .426.

``Velez has played well. Torres has had a terrific spring. It's not going to be an easy decision if it comes down to one of them,' Giants manager Bruce Bochy said.

Cleveland shortstop Jhonny Peralta had two hits, including his third homer, and is hitting .435.

San Francisco's Jonathan Sanchez, in his second start since returning from the World Baseball Classic, gave up two runs and seven hits in seven innings. Sanchez had six strikeouts and did not walk a batter, getting to a three-ball count only once.

``I felt pretty good, said Sanchez, the No. 5 starter in the Giants rotation. We don't see him as a number five starter, but that's where we have to put him,' Bochy said. ``He was really consistent with his delivery. He put the ball where he wanted. It looks like hes on track.