Damaso agreed to a 3-year, $12 million deal (with a club option for a fourth year at $4 million).
I'm a bit disappointed by this, for Marte is a Type-A free agent, and would have netted the Yankees first and sandwich round draft picks (of course, there's the possibility he would have accepted arbitration).
He's not as bad as his Yankee ERA would suggest (5.40), so we should expect a regression to his mean next year (3.29 ERA).