Southpaw previously signed 1-year deal
Rusch was 6-2 with a 3.47 ERA in 16 starts for Chicago last season. He signed a one-year contract with the team for 2004 after the Brewers declined their option on him.
Grace moved into the broadcasting booth last season after ending his 16-year playing career, the final three with the Diamondbacks after 13 seasons with the Cubs.
He interviewed for the Arizona manager's job that eventually went to Bob Melvin on Nov. 5.
Anaheim Angels: The Angels added five players to their 40-man roster Thursday, including right-handed pitchers Ervin Santana and Steven Shell and left-hander Joe Saunders.
They also added catcher Jeff Mathis and infielder Alberto Callaspo, leaving them with 38 players on the roster.
The Angels purchased the contracts of Santana, Saunders, Mathis and Callaspo from Double-A Arkansas and the contract of Shell from Single-A Rancho Cucamonga.
San Diego Padres: The Padres added seven players to their 40-man roster on Thursday and signed right-handed pitcher Angel Tovar to a minor-league contract, with an invitation to spring training.
The Padres purchased the contracts of right-hander Brad Baker; left-hander Sean Thompson; infielders Josh Barfield, Tagg Bozied, J.J. Furmaniak and Paul McAnulty; and outfielder Ben Johnson.
Baker was named the Padres' 2004 co-minor league pitcher of the year after leading the Southern League with 30 saves while with Mobile. McAnulty was named the Padres' 2004 minor league player of the year after batting .297 with 23 home runs and 87 RBI at Single-A Lake Elsinore.
Hill, 23, made his major-league debut last season, going 1-2 with a 16.00 ERA in three starts. Labandeira, 25, appeared in seven games for the Expos after being recalled on Sept. 17. He batted .270 with 22 doubles, nine homers and 33 RBI for Double-A Harrisburg.
Information from The Associated Press was used in this report.