3M 2015 Annual Report Download - page 126
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(m)“NonqualifiedStockOption”meansanOptiongrantedunderthisPlanwhichisnotanIncentiveStockOption.
(n)“Option”meansaParticipant’srighttopurchaseaspecifiednumberofsharesofCommonStockataspecifiedpricefora
specifiedperiodoftime.
(o)“Participant”meansanemployeeoftheCompanyoranAffiliatewhoseparticipationinthePlanhasbeenapprovedbythe
Committee,oranonemployeememberof3M’sBoardofDirectors.
(p)“PerformanceCriteria”meanssuchinternalperformancecriteriafortheCompanyoranybusinesssegmentthereofas
determinedbytheCommitteewithrespecttoeachPerformanceUnitorPerformanceShareandmayincludeanyoneor
moreofseveralcriteria,suchas,butnotlimitedto,returnoncapitalemployed,returnonassetsornetassets,netsales,sales
growth,salesorsalesgrowthfromnewproducts,marketshare,cashfloworcashflowconversion,earningspershare,
returnonequity,stockprice,grossmarginorincome,operatingmarginorincome,totalshareholderreturn,stockholders’
equity,retainedearnings,economicvalueadded,economicprofit(after-taxoperatingincome,excludingnon-recurring
items,lessthecostofcapital),earningsbeforeinterestandtaxes,EBITDA,operatingincome,improvementsincertainasset
orfinancialmeasures(includingworkingcapital,theratioofsalestonetworkingcapitalandtheratioofdebttoequityorto
EBITDA),reductionsincertainassetorcostareas(includingreductionsininventoriesoraccountsreceivableorreductions
inlaboratory,engineering,salesoradministrativecosts)orindebt,netincomeorvariationsofincomecriteriainvarying
timeperiods,adjustednetincome,employeediversity,employeeengagementorsatisfaction,customersatisfaction,or
generalcomparisonswithotherpeercompaniesorindustrygroupsorclassificationswithregardtooneormoreofthese
criteria.Thecriteriamaymeasureperformanceonthebasisofeithertheamountofaparticularitemduringthe
PerformancePeriodoronincreasesordecreasesintheamountofsuchitemduringthePerformancePeriod.Suchcriteria
shallincludeatargetforpaymentofthePerformanceUnitorPerformanceShareatfullfacevalueandupperandlower
limitsforthemeasurementofpaymenttoParticipants.
(q)“PerformancePeriod”meansaperiodofthreeyears,unlessdeterminedotherwisebytheCommitteeinitsdiscretion,
duringwhichperiodoranyportionthereofthePerformanceCriteriashallbemeasuredforpurposesofcalculatingthe
paymentwithrespecttoeachPerformanceUnitorPerformanceShare.
(r)“PerformanceShare”meanstherightofaParticipanttoreceiveapaymentintheformofsharesofCommonStockbased
upontheperformanceoftheCompanyduringaPerformancePeriodasmeasuredbythePerformanceCriteriaapprovedby
theCommittee.
(s)“PerformanceUnit”meanstherightofaParticipanttoreceiveapaymentincashorsharesofCommonStockbasedupon
theperformanceoftheCompanyduringaPerformancePeriodasmeasuredbythePerformanceCriteriaapprovedbythe
Committee.
(t)“Plan”meansthis3M2008Long-TermIncentivePlan.
(u)“PredecessorPlan”meansthe1997ManagementStockOwnershipProgram,the2002ManagementStockOwnership
Program,andthe2005ManagementStockOwnershipProgram.
(v)“ProgressiveStockOption”meansaNonqualifiedStockOptiongrantedtoaParticipantunderthisPlanupontheexercise
ofanonqualifiedstockoptiongrantedunderthe1997orthe2002ManagementStockOwnershipProgramswheresuch
ParticipantmakespaymentforallorpartofthepurchasepriceandwithholdingtaxesinsharesofCommonStock.
(w)"RestrictedPeriod"meansthatperiodoftimedeterminedbytheCommitteeduringwhichaParticipantshallnotbe
permittedtosellortransfersharesofRestrictedStockgrantedunderthisPlan,andduringwhichaParticipant’sinterestin
RestrictedStockUnitsorRestrictedStockgrantedunderthisPlanremainssubjecttoforfeiture.Unlessotherwise
determinedbytheCommittee,anytime-basedRestrictedPeriodshallbeatleastthreeyears.
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