According to the New York Post (via MLBTR).  The deal is worth 3.5 mil for this year with an option for next worth 3.7 mil, or a 400K buyout.  I'd rather they not give him an option, but if the buyout is only 400K it's not a huge deal.  He's overpaid either way, the way the reliever market has shaped up this winter, added to his declining skills.  I think if they had gone to arbitration they would have won, but this way they are only paying 900K more and it saves Stormy the heartache.  

In hindsight, it probably would have been better not to have offered him arbitration, but whatevs.  This probably closes out the Hot Stove season for the Reds.