3M 2015 Annual Report Download - page 142

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 2002
Programoritspredecessors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 purchase price and withholding taxes, if any, for such Nonqualified Stock Option.  Each Progressive Stock Option granted
hereundershallhaveapurchase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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 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Conditionswithrespecttoalloranyportion
ofthesharesofCommonStockrepresentedbytheRestrictedStock.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,exceptthatthe followingrestrictions
shall apply: (i) the Participant shall not be entitled to delivery of the shares of such Restricted Stock until the expiration or
terminationoftheRestrictedPeriodandthesatisfactionofanyotherConditionsprescribedbytheCommittee,ifany;(ii)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 other Conditions prescribed by the Committee, if any; and (iii) 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 any of its subsidiaries or affiliates until the expiration or
terminationoftheRestrictedPeriodandthesatisfactionoftheotherConditionsprescribedbytheCommittee,ifany.Duringthe
RestrictedPeriod,atthesolediscretion of theCommittee,DividendEquivalentsmay be either currentlypaidorwithheldbythe
CompanyfortheParticipant'saccount,andinterestmaybepaidontheamountofcashdividendswithheldatarateandundersuch
terms as determined by the Committee.  Cash or stock dividends so withheld by the Committee shall not be subject to
forfeiture.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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 Conditions 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;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
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