3M 2015 Annual Report Download - page 141

the term of this 2005 Program other than Options or Stock Appreciation Rights settled exclusively in Common Stock shall be
countedagainstthe36,750,000sharelimitdescribedaboveas2.45sharesforeveryoneshareissuedinconnectionwithsuchAward
orbywhichtheAwardisvaluedbyreference.AnysharesofCommonStockmadesubjecttoStockAppreciationRightsgranted
duringthetermofthis2005ProgramandsettledexclusivelyinCommonStockshallbecountedinfullagainstthe36,750,000share
limitregardlessofthenumberofsharesofCommonStockactuallyissuedupontheexerciseofsuchStockAppreciationRights.The
necessarysharesshallbemadeavailableatthediscretionoftheBoardofDirectorsfromauthorizedbutunissuedshares,treasury
shares,orsharesreacquiredbytheCompanyundercorporaterepurchaseprograms.Thepaymentofstockdividendsanddividend
equivalentssettledinCommonStockinconjunctionwithoutstandingAwardsshallnotbecountedagainstthesharesavailablefor
issuance.

SECTION4ADMINISTRATION

The2005Program shallbe administered bythe Committee,which shallhave fullpower and authorityto selectthe Participants,
interprettheProgram,continue,accelerateorsuspendtheexercisabilityorvestingofanAward,andadoptsuchrulesandprocedures
foroperatingtheProgramasitmaydeemnecessary or appropriate.  Its powerandauthorityshallinclude,butnotbelimitedto,
makinganyamendmentstoormodificationsofthe2005ProgramwhichmayberequiredornecessarytomakesuchProgramcomply
with the provisions of any laws or regulations of any country or unit thereof in which the Company operates.  To do so, the
CommitteemayestablishdifferenttermsandconditionsforAwardsmadetoParticipantswholiveinoraresubjecttotaxationinone
or more countries other than the United States in order to accommodate the tax or other relevant laws of such countries.  The
Committeemayadoptoneormoresupplementsorsub-plansundertheProgramtoimplementthesedifferenttermsandconditions.

SECTION5DELEGATIONOFAUTHORITY

TotheextentpermittedbyDelawarelaw,theCommitteemaydelegatetoofficersoftheCompanyanyorallofitsduties,powerand
authorityunderthe2005ProgramsubjecttosuchconditionsorlimitationsastheCommitteemayestablish;provided,however,that
noofficershallhaveorobtaintheauthoritytograntAwardsto(i)himselforherself,or(ii)anypersonsubjecttosection16ofthe
SecuritiesExchangeActof1934.

SECTION6TERMSOFAWARDS

TheCommitteeshalldeterminethetypeortypesofAwardstobegrantedtoeachParticipant,whichshallbeevidencedbysuch
writtenorelectronicdocumentsastheCommitteeshallauthorize.NoParticipantshallbegrantedAwardsunderthe2005Program
withrespecttomorethan3,000,000sharesofCommonStock.ThefollowingtypesofAwardsmaybegrantedunderthis2005
Program:

(a) Incentive Stock Options – Incentive Stock Options granted hereunder shall have a purchase price equal to one hundred
percent(100%)oftheFairMarketValueofashareofCommonStockontheGrantDate.IncentiveStockOptionsgrantedhereunder
shall become exercisable at such time as shall be established by theCommittee and reflected in the documents evidencing such
Options,andunlesssoonerterminatedshallexpireonthetenthanniversaryoftheGrantDate.

(b) Nonqualified Stock Options – Nonqualified Stock Options granted hereunder shall have a purchase price equal to
nolessthanonehundredpercent(100%)oftheFairMarketValueofashareofCommonStockontheGrantDate.Nonqualified
Stock Options granted hereunder shall become exercisable and shall expire at such time or times as shall be established by the
Committeeandreflectedinthedocumentsevidencing such Options; provided, however, thatnoNonqualifiedStockOptionshall
expirelaterthantenyearsaftertheGrantDate(exceptthattheCommitteemayextendtheexerciseperiodforNonqualifiedStock
OptionsgrantedtoParticipantsinanycountryorcountriesforanadditionalperiodofuptooneyearifandtotheextentnecessaryto
preventadversetaxconsequencestosuchParticipantsunderthelawsofsuchcountry).

Notwithstanding anything to the contrary in this Section, the vested and exercisable portion of an Option or Stock
Appreciation Right that remains outstanding immediately prior to the expiration of its full term on or after April 1, 2016 (or, if
applicable,theexpirationofthelimitedpost-terminationexercisewindowoccurringonorafterApril1,2016)shallbedeemedto
havebeenexercisedbytheParticipantatsuchtimeif(i)theParticipanthasacceptedtheOptionorStock
3

