3M 2015 Annual Report Download - page 143

Participant’saccountandreinvestedinadditionalRestrictedStockUnits.EachgrantofRestrictedStockUnitsshallbesubjecttothe
following restrictions: (i) the Participant shall not be entitled to delivery of the shares of Common Stock corresponding to such
Restricted Stock Units 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Units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 Units 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.

(g) Other Stock Awards - The Committee may, in its sole discretion, grant Stock Awards other than Restricted Stock grants
orRestrictedStockUnits,andsuchStockAwardsmaybegrantedsingly,incombinationorintandemwith,inreplacementof,oras
alternativestograntsorrightsunderthisProgramoranyotheremployeebenefitorcompensationplanoftheCompany,includingthe
planofanyacquiredentity.IftheCommitteeshallstipulateConditionswithrespecttosuchStockAwards,theConditionswillbe
setforthindocumentsevidencingthegrant.IfConditionswithrespecttosuchStockAwardsshallrequirethesurrenderorforfeiture
ofothergrantsorrightsunderthisProgramoranyotheremployeebenefitorcompensationplanoftheCompany,thentheParticipant
shallnothaveanyrightsundersuchStockAwardsuntilthegrantsorrightsexchangedhavebeenfullyandeffectivelysurrenderedor
forfeited.

SECTION7SETTLEMENTOFAWARDS
(a) Payment of Awards may be in the form of cash, Common Stock or combinations thereof as the Committee shall
determine,andwithsuchotherrestrictionsasitmayimpose.TheCommitteemayalsorequireorpermitParticipantstoelecttodefer
the issuance of shares or the settlement of Awards in cash under such rules and procedures as it may establish under the 2005
Program.  It may also provide that deferred settlements include the payment or crediting of interest on the deferral amounts
denominatedincashorthepaymentorcreditingofDividendEquivalentsondeferredsettlementsdenominatedinshares.

(b)No shares of Common Stock shall be issued to any Participant uponthe exercise of an Option until full payment
ofthepurchasepricehasbeenmadetotheCompanyandtheParticipanthasremittedtotheCompanytherequiredfederalandstate
withholding taxes, if any. A Participant shall obtainno rights as a stockholderuntil certificates for such stock areissued to the
ParticipantordeliveredtotheMSOPAdministratorforcredittotheaccountoftheParticipant.Paymentofthepurchasepriceor
applicablewithholdingtaxes,if any, maybemadeinwhole, or in part,insharesofCommon Stock, pursuant tosuchtermsand
conditionsasmaybeestablishedfromtimetotimebytheCommittee.IfpaymentismadeinsharesofCommonStock,suchstock
shallbevaluedatonehundredpercent(100%)oftheirFairMarketValueonthedaytheParticipantexercisedhisorherOptionor,as
regardsawithholdingtax,suchotherdatewhenthetaxwithholdingobligationbecomesdue.AParticipantneednotsurrendershares
ofCommonStockaspayment;andtheCompanymay,uponthegivingofsatisfactoryevidenceofownershipofsaidCommonStock
byParticipant,delivertheappropriatenumberofadditionalsharesofCommonStockreducedbythenumberofsharesrequiredto
paythepurchasepriceandanyapplicablewithholdingtaxes.SuchformofevidenceshallbedeterminedbytheCommittee.

SECTION8DELIVERYOFSTOCKCERTIFICATES

(a) Within sixty (60) days after completion of the exercise of an Option or Stock Appreciation Right, or the complete
satisfaction of Conditions applicable to a Stock Award, the Company will have delivered to the Participant or to the MSOP
AdministratorforcredittotheaccountoftheParticipantcertificatesrepresentingallsharesofCommonStockpurchasedorreceived
thereunder.The Company shall not,however,be required toissueor deliver anycertificates for itsCommonStockprior tothe
admissionofsuchstocktolistingonanystockexchangeonwhichstockmayatthattimebelistedorrequiredtobelisted,orpriorto
registrationundertheSecuritiesActof1933.TheParticipant shall have no interest inCommonStockuntilcertificatesforsuch
stockareissuedortransferredtotheParticipantortotheMSOPAdministratorforcredittotheaccountoftheParticipantandthe
Participantbecomestheholderofrecord.

(b) Upon the expiration or termination of the Restricted Period and the satisfaction of other Conditions prescribed by the
Committee,ifany,therestrictionsapplicabletoagrantofRestrictedStockorRestrictedStockUnits
5

