3M 2015 Annual Report Download - page 144

shalllapseandastockcertificateforthenumberofsharesofCommonStockrepresentedbytheRestrictedStockorRestrictedStock
Unitsshallbedelivered totheParticipant ortheParticipant'sbeneficiary,representative,orestate,asthecasemaybe,freeofall
restrictions, except any that may be imposed by law.  Unless otherwise instructed by a Participant by an irrevocable, written
instruction received by the Company at least six months prior to the date that applicable restrictions lapse, the Company shall
automaticallywithholdaspaymentthenumberofsharesofCommonStock,determinedbytheFairMarketValueatthedateofthe
lapse,requiredtopaywithholdingtaxes,ifany.
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(c) In no event will the Company be required to deliver any fractional share of Common Stock in connection with
anyAward.IntheeventthataParticipantshallbeentitledtoreceiveafractionofashareofCommonStockinconnectionwithan
Awardgrantedunderthis2005Program,theCompanyshallpayincash,inlieuthereof,theFairMarketValueofsuchfractional
share.
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SECTION9TAXWITHHOLDING
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PriortothepaymentorsettlementofanyAward,theParticipantmustpay,ormakearrangementssatisfactorytotheCompanyforthe
paymentof,anyandalltaxwithholdingthatintheopinionoftheCompanyisrequiredbylaw.TheCompanyshallhavetherightto
deductapplicabletaxesfromanyAwardpayment,towithholdfromthesharesofCommonStockbeingissuedordeliveredin
connectionwithanAwardanappropriatenumberofsharesforthepaymentoftaxesrequiredbylaw,ortotakesuchotheractionas
maybenecessaryintheopinionoftheCompanytosatisfyallobligationsforthewithholdingofsuchtaxes.
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SECTION10TRANSFERABILITY
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ExceptaspermittedinthisSection10,noAwardgrantedunderthis2005Programmaybeassigned,transferred(otherthanatransfer
bywillorthelawsofdescentanddistributionasprovidedinSection11),pledged,orhypothecated(whetherbyoperationoflawor
otherwise).  Awards granted under this 2005 Program shall not be subject to execution, attachment, or similar process.  The
Committeemay,initssolediscretion,permitindividualParticipantstotransfertheownershipof alloranyoftheirNonqualified
Optionsgrantedunderthis2005Programto(i)thespouse,formerspouse,childrenorgrandchildrenofsuchParticipant(“Immediate
FamilyMembers”),(ii)atrustortrustsfortheexclusivebenefitofsuchImmediateFamilyMembers,or(iii)apartnershipinwhich
suchImmediateFamilyMembersaretheonlypartners,providedthat(x)theremaybenoconsiderationforanysuchtransfer,and(y)
subsequenttransfersoftransferredNonqualifiedOptionsshallbeprohibitedexceptthoseinaccordancewithSection11(bywillor
thelawsofdescentanddistribution).TheCommitteemay,initssolediscretion,createfurtherconditionsandrequirementsforthe
transferofNonqualifiedOptions.Followingtransfer,anysuchNonqualifiedOptionsshallcontinuetobesubjecttothesameterms
andconditionsaswereapplicableimmediatelypriortotransfer,providedthatforpurposesofSections7,8and14hereoftheterm
“Participant”shallbedeemedtorefertothetransferee.TheeventscausingterminationofAwardsinaccordancewithSection11
hereof shall continue to be applied with respect to the original Participant, following which the Nonqualified Options shall be
exercisablebythetransfereeonlytotheextent,andfortheperiodsspecifiedinSection11.
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SECTION11TERMINATIONOFAWARDS
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(a) If a Participant’s employment with the Company is terminated for any reason other than (i) a Disqualifying Termination,
(ii)Retirement,(iii)aterminationinconnectionwithwhichtheParticipantexecutesawrittenreleaseofemployment-relatedclaims
infavoroftheCompanythatprovides(withtheapprovaloftheCompany)forthenonforfeitureofOptionsandStockAppreciation
Rights,(iv)aphysicalormentaldisabilityasrecognizedunderabenefitplanmaintainedbytheCompany,or(v)death,andpriorto
the date of termination the Participant has not fully exercised an Option or Stock Appreciation Right granted under this 2005
Program, such Participant may exercise the Option or Stock Appreciation Right within ninety (90) days following the date of
termination(butnotbeyondtheexpirationdateofsuchOptionorRight)forthenumberofshareswhichtheParticipantcouldhave
purchased or received a payment on the date of termination.  At the conclusion of such ninety-day period (with respect to the
Participant’sOptionsandStockAppreciationRights,andatthetimeofterminationwithrespecttoanyotherAwards),participation
hereundershallceaseandalloftheParticipant’sAwardsgrantedunderthis2005Programshallbeautomaticallyforfeitedunlessthe
documentsevidencingsuchOptionsorStockAppreciationRightsprovideotherwise.
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