3M 2015 Annual Report Download - page 129

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OptionorStockAppreciationRight,(ii)theFairMarketValueofoneshareofCommonStockexceedstheapplicableexerciseprice
pershare,and(iii)either(A)suchOptionorStockAppreciationRightremainsoutstandingonthelastdayofitsfulltermor(B)the
Participant’sOptionorStockAppreciationRightotherwisewouldterminatepriortothelastdayofitsfulltermasaresultofthe
Participant’sdeath.Fortheavoidanceofdoubt,anOptionorStockAppreciationRightthatterminatesupontheexpirationofits
limitedpost-terminationexercisewindowshallnotbedeemedtohaveremainedoutstandingonthelastdayofitsfulltermfor
purposesofclause(iii)intheprecedingsentence.IntheeventanOptionorStockAppreciationRightisexercisedpursuanttothis
Section,theCompanyshalldelivertotheParticipantthenumberofsharesofCommonStockforwhichtheOptionorStock
AppreciationRightwasdeemedexercised,lessthenumberofsharesofCommonStockwithheldforthepaymentofthetotal
purchasepriceandwithholdingtaxes.
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(c)ProgressiveStockOptions-WheneveraParticipantexercisesanonqualifiedstockoptiongrantedunderthe1997or
2002ManagementStockOwnershipProgramandmakespaymentofallorpartofthepurchasepriceandwithholdingtaxes,ifany,
inCommonStock,theCommitteemayinitsdiscretiongrantsuchParticipantaProgressiveStockOption.Thenumberofshares
subjecttosuchProgressiveStockOptionshallbeequaltothenumberofsharesofCommonStockutilizedbytheParticipantto
effectpaymentoftheexercisepriceandwithholdingtaxes,ifany,forsuchnonqualifiedstockoption.EachProgressiveStock
Optiongrantedhereundershallhaveanexercisepriceequaltoonehundredpercent(100%)oftheFairMarketValueofashareof
CommonStockonthedateofexerciseofthenonqualifiedstockoption,whichshallbetheGrantDateofsuchProgressiveStock
Option.EachProgressiveStockOptiongrantedhereundershallbeexercisablesixmonthsaftertheGrantDate,andshallexpireat
thesametimethenonqualifiedstockoptionexercisedbytheParticipantwouldhaveexpired.
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(d)StockAppreciationRights-ThetermofaStockAppreciationRightshallbefixedbytheCommitteeandsetforthinthe
documentsevidencingsuchright,butnoStockAppreciationRightshallbeexercisablemorethantenyearsaftertheGrant
Date.EachStockAppreciationRightshallbecomeexercisableatthetimeortimesdeterminedbytheCommitteeandsetforthinthe
documentsevidencingsuchright.EachStockAppreciationRightgrantedhereundershallhaveagrantpriceequaltoonehundred
percent(100%)oftheFairMarketValueofashareofCommonStockontheGrantDate.
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(e)RestrictedStock-AtthetimeagrantofRestrictedStockismade,theCommittee,initssolediscretion,shallestablisha
RestrictedPeriodandsuchadditionaltermsandconditionsasmaybedeemedappropriatefortheincrementallapseorcompletelapse
ofrestrictionswithrespecttoalloranyportionofthesharesofCommonStockrepresentedbytheRestrictedStock.TheCommittee
mayalso,initssolediscretion,shortenorterminatetheRestrictedPeriodorwaiveanytermsorconditionsforthelapseof
restrictionswithrespecttoalloranyportionofthesharesofCommonStockrepresentedbytheRestrictedStock.Duringthe
RestrictedPeriodtheParticipantshallgenerallyhavetherightsandprivilegesofastockholderastosuchRestrictedStock,including
therighttovotesuchRestrictedStockandreceivedividendpayments,exceptthatthefollowingrestrictionsshallapply:(i)noneof
theRestrictedStockmaybesold,transferred,assigned,pledged,orotherwiseencumberedordisposedofduringtheRestricted
PeriodanduntilthesatisfactionofanyothertermsandconditionsprescribedbytheCommittee,ifany;and(ii)alloftheRestricted
StockshallbeforfeitedandallrightsoftheParticipantshallterminatewithoutfurtherobligationonthepartoftheCompanyunless
theParticipantshallhaveremainedaregularfull-timeemployeeoftheCompanyoranAffiliateuntiltheexpirationorterminationof
theRestrictedPeriodandthesatisfactionoftheothertermsandconditionsprescribedbytheCommittee,ifany.AnyRestricted
StockgrantedunderthePlanmaybeevidencedinsuchmannerastheCommitteemaydetermine,initsdiscretion,including,without
limitation,book-entryregistrationorissuanceofoneormorestockcertificatesbearinganappropriatelegendrecognizingtheterms,
conditionsandrestrictionsapplicabletosuchRestrictedStock.UpontheforfeitureofanyRestrictedStock,suchsharesofCommon
StockrepresentedbytheRestrictedStockshallbetransferredtotheCompanywithoutfurtheractionbytheParticipant.
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(f)RestrictedStockUnits-AtthetimeagrantofRestrictedStockUnitsismade,theCommittee,initssolediscretion,shall
establishaRestrictedPeriodandsuchadditionaltermsandconditionsasmaybedeemedappropriatefortheincrementallapseor
completelapseofrestrictionswithrespecttoalloranyportionofsuchRestrictedStockUnits.TheCommitteemayalso,initssole
discretion,shortenorterminatetheRestrictedPeriodorwaiveanytermsorconditionsforthelapseofrestrictionswithrespecttoall
oranyportionoftheRestrictedStockUnits.DuringtheRestrictedPeriodtheParticipantwillnothavetherightsandprivilegesofa
stockholderastosuchRestrictedStockUnits,includingtherighttovoteandreceivedividendpaymentswithrespecttothesharesof
CommonStockcorrespondingtosuchRestrictedStockUnits;provided,however,thatatthesolediscretionoftheCommittee,
DividendEquivalentsmaybeeithercurrentlypaidincashorsharesorwithheldbytheCompanyfortheParticipant’saccountand
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