3M 2015 Annual Report Download - page 130

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eithermaintainedincashtobepaidupontheexpirationoftheRestrictedPeriodor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the
paymentofcashorthe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termsand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atanytime;
and(iii)exceptasotherwiseprovidedinSection7,alloftheRestrictedStockUnitsandanydeferredDividendEquivalentsshallbe
forfeitedandallrightsoftheParticipantshallterminatewithoutfurtherobligationonthepartoftheCompanyuponthetermination
oftheParticipant’semploymentwiththeCompanyoranAffiliatepriortotheendoftheRestrictedPeriod;provided,however,thatif
theCommitteesodecidesandthedocumentsevidencinganAwardofRestrictedStockUnitssoprovide,theprecedingexception
allowingsuchRestrictedStockUnitstovestfollowingtheParticipant’sRetirementshallnotapplysothatsuchRestrictedStock
UnitsandanydeferredDividendEquivalentswillbeforfeitedandallrightsoftheParticipantshallterminatewithoutfurther
obligationonthepartoftheCompanyupontheRetirementofsuchParticipantpriortotheendoftheRestrictedPeriod.
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(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PlanoranyotheremployeebenefitorcompensationplanoftheCompany,includingthe
planofanyacquiredentity.IftheCommitteeshallstipulatetermsandconditionswithrespecttosuchStockAwards,thetermsand
conditionswillbesetforthinthedocumentsevidencingtheAward.IfthetermsandconditionswithrespecttoanyStockAward
shallrequirethesurrenderorforfeitureofothergrantsorrightsunderthisPlanoranyotheremployeebenefitorcompensationplan
oftheCompany,thentheParticipantshallnothaveanyrightsundersuchStockAwarduntilthegrantsorrightsexchangedhave
beenfullyandeffectivelysurrenderedorforfeited.
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(h)PerformanceUnitsandPerformanceShares–AtthetimeitapproveseachgrantofPerformanceUnitsorPerformance
Shares,theCommitteeshalldeterminethenumberofPerformanceUnitsorPerformanceSharesgrantedtoeachParticipant,the
proration,ifany,ofsuchPerformanceUnitsorPerformanceSharesiftheParticipantretirespriortothecompletionoftherelevant
PerformancePeriod,thecommencementandexpirationoftherelevantPerformancePeriod,andthePerformanceCriteriabywhich
thepaymentvalueofthePerformanceUnitsorPerformanceShareswillbedetermined.IftheCommitteeprovides,agrantof
PerformanceUnitsorPerformanceSharesmayprovideaParticipantwiththerighttoreceiveDividendEquivalents,subjecttothe
samerestrictionsontransferabilityandforfeitabilityandpayableatthesametimeasthePerformanceUnitsorPerformanceShares
withrespecttowhichtheDividendEquivalentsaregranted.AnysuchDividendEquivalentsshallbeconvertedtocashoradditional
sharesofCommonStock,oracombinationofcashandsharesofCommonStock,bysuchformulaandatsuchtimeandsubjectto
suchlimitationsasmaybesetforthinthewrittenagreementevidencingtheaward.PaymentofeachPerformanceUnitand
PerformanceShareshalloccurnolaterthantheMarch15oftheyearimmediatelyfollowingthecompletionoftherespective
PerformancePeriod,unlessaParticipantshallhavemadeaneffectiveelectiontodeferthereceiptofsuchpaymentpursuanttothe
termsofanapplicabledeferredcompensationplanandallapplicablelaws.TheamountpayablewithrespecttoeachPerformance
UnitandPerformanceShareshallbecontingentupontheattainmentofthePerformanceCriteriaselectedbytheCommitteeduring
therespectivePerformancePeriod,anduponthecontinuedemploymentoftheParticipantthroughoutsuchPerformancePeriod(or
upontheParticipant’sRetirementpriortotheendofsuchPerformancePeriod).
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6.PaymentofAwards.
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PaymentofAwardsmaybeintheformofcash,sharesofCommonStockorcombinationsthereofastheCommitteeshalldetermine,
andwithsuchotherrestrictionsasitmayimpose.TheCommitteemaypermitorrequirethedeferralofanyAwardpayment,subject
tosuchterms,rulesandconditionsastheCommitteemayestablish,whichmayincludeprovisionsforthepaymentorcreditingof
interestorDividendEquivalents;provided,however,thattheCommitteeshallnothaveanyauthoritytopermitorrequirethedeferral
ofanyAwardpaymenttotheextentthattheexerciseofsuchauthoritywouldcauseanyexcisetaxtobecomedueundersection409A
oftheCode.
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NosharesofCommonStockshallbeissuedtoanyParticipantupontheexerciseofanOptiongrantedunderthisPlanuntilfull
paymentoftheexercisepricehasbeenmadetotheCompanyandtheParticipanthasremittedtotheCompanytherequired
withholdingtaxes,ifany.Paymentoftheexercisepriceandwithholdingtaxes,ifany,maybemadein
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