Emery was owed $6.75 million over the next two seasons.
Senators general manager Bryan Murray put Emery on waivers after he couldn't find a market for the mercurial goalie.
The 25-year-old Emery went 12-13-4 last season with a 3.13 goals-against average and an .890 save percentage.
Those numbers represented a steep decline from 2006-07, when Emery was a big part of Ottawa's run to the Stanley Cup final. That season, he was 33-16-6 with a 2.47 GAA and a .918 save percentage.