$16M guaranteed for 2015, with a vesting option for 2016 based on plate appearances in 2015 as follows (taken from WEEI):
425 plate appearances – $11 million
475 plate appearances – $12 million
525 plate appearances – $13 million
550 plate appearances – $14 million
575 plate appearances – $15 million
600 plate appearances – $16 million
If Ortiz does not reach even the 425 PA threshold, there is a team option for 2016 at $10 million.
There is a team option for 2017. It’s scaled the same way the vesting option is for 2016, but the team has final say on whether they take on his contract in 2017 or not. That is to say: Ortiz will be paid by the Red Sox in 2016 no matter what as long as he reaches 425 plate appearances in 2015, but might not be in 2017 even if he reaches 425 plate appearances in 2016 since it’s a team option rather than a vesting option.
In any case, Ortiz is essentially guaranteed to end his career in a Red Sox uniform (he will turn 42 after the 2017 season ends). Consider this fan happy that the deal is done, is non-exorbitant, and we won’t have to hear much about this issue for another year and change.