3M 2015 Annual Report Download - page 145

(b) If a Participant Retires, terminates employment with the Company and in connection with such termination 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,orchangesemploymentstatusasaresultofaphysicalor
mentaldisabilityasrecognizedunderabenefitplanmaintainedbytheCompany,withouthavingfullyexercisedanOptionorStock
AppreciationRight,theParticipantshallbeentitled,withintheremainingtermoftheOptionorStockAppreciationRight(butnot
beyondtheexpirationdateofsuchOptionorRight),toexercisesuchOptionorStockAppreciationRight(provided,however,thatin
theeventof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,
theadditional timeto exerciseOptions andStock Appreciation Rights shall apply only to those Optionsand StockAppreciation
Rightswhichhavevestedpriortothedateofterminationofemployment).IfaParticipantwhohasthusRetireddies,withouthaving
fullyexercisedanOptionorStockAppreciationRight,theOptionorStockAppreciationRight(includinganyportionthereofnot
alreadyexercisableatthetimeoftheParticipant’sdeath)maybeexercisedwithintwoyearsafterthedateofhisorherdeath(butnot
beyondtheexpirationdateofsuchOptionorRight)bytheParticipant'sestateorbyapersonwhoacquiredtherighttoexercisesuch
OptionorStockAppreciationRightbybequestorinheritanceorbyreasonofthedeathoftheParticipant.
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(c) If a Participant, prior to Retirement, dies without having fully exercised an Option or Stock Appreciation Right, the
OptionorStockAppreciationRight(includinganyportionthereofnotalreadyexercisableatthetimeoftheParticipant’sdeath)may
be exercised within two years following his or her death (but not beyond the expiration date of such Option or Right) by the
Participant's estate or by a person who acquired the right to exercise such Option or Stock Appreciation Right by bequest or
inheritanceorbyreasonofthedeathoftheParticipant.
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(d) Notwithstanding paragraph (a) of this section, if a Participant’s employment with the Company is terminated before he
or she has fully exercised an Option or Stock Appreciation Rightunder circumstances which the Committee believes to warrant
special consideration and the Committee has determined that the Participant's rights should not be forfeited at the time or times
specifiedinparagraph(a),theOptionorStockAppreciationRight(includinganyportionthereofnotalreadyexercisableatthetime
oftermination)maybeexercisedwithintwoyearsfollowinghisorherterminationofemployment(butnotbeyondtheexpiration
dateofsuchOptionorRight).
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(e) If a Participant dies, either prior to or following Retirement, or becomes “disabled” within the meaning of section
409A(a)(2)(C)oftheCode,andhasnotyetreceivedthestockcertificateforthesharesofCommonStockrepresentedbyagrantof
RestrictedStock,RestrictedStockUnitsorotherStockAward,thenallrestrictionsimposedduringtheRestrictedPeriodandany
other Conditions prescribed by the Committee, if any, shall automatically lapse and a stock certificate shall be delivered to the
ParticipantortheParticipant'sbeneficiary,representative,orestate,asthecasemaybeupontheParticipant’sdemonstrationtothe
satisfactionoftheCommitteethatsuchParticipantisconsidered“disabled”forpurposesofsection409A(a)(2)(C)oftheCode.
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(f) If a Participant’s employment with the Company is terminated due to a Disqualifying Termination, participation
hereundershallceaseandalloftheParticipant’sAwardsgrantedunderthis2005Programshallbeautomaticallyforfeited.
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(g) If the Committee or the officers to whom it delegates the necessary authority receive or have reason to believe that the
Company has received credible evidence that a Participant may have engaged in activity described in the term “Disqualifying
Termination”inSection2(h)ofthis2005Program,theCommitteeorsuchofficersmaysuspendtheexercise,deliveryorsettlement
of all or any portion of such Participant’s outstanding Awards granted under this 2005 Program pending an investigation of the
matter.
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SECTION12ADJUSTMENTS
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IntheeventofanychangeintheoutstandingCommonStockoftheCompanybyreasonofastocksplit,stockdividend,combination
orreclassificationofshares,recapitalization,mergerorsimilarevent,theCommitteeshalladjustproportionately:(a)thenumberof
sharesofCommonStock(i)availableforissuanceordeliveryunderthe2005PrograminaccordancewithSection3,(ii)forwhich
AwardsmaybegrantedtoasingleParticipantinaccordancewithSection6,and(iii)subjecttooutstandingAwardsgrantedunder
the2005Program;(b)thepurchasepricesofoutstandingAwards;
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