Document:

Exhibit 10.6

 

AMENDMENT OF THE

3M
PERFORMANCE UNIT PLAN —

409A
Compliance

 

WHEREAS,
3M has adopted and maintains the 3M Performance Unit Plan (hereinafter referred
to as the “Plan”), which Plan is intended to provide long-term incentive
compensation to key management employees of the Company based upon the Company’s
attainment of long-term performance and growth criteria; and

 

WHEREAS,
the Company wishes to amend the Plan to ensure that the Plan document complies
with the requirements of Section 409A of the Internal Revenue Code of
1986, as amended, and the regulations issued thereunder;

 

RESOLVED,
pursuant to the authority contained in Section 12 of the Plan, such Plan
shall be and it hereby is amended as follows, effective January 1, 2009:

 

1)                                      Section 13(a) is amended to
read as follows:

 

(a) 
For purposes of this Section 13, the following words and phrases shall
have the meanings indicated below, unless the context clearly indicates
otherwise:

 

(i) “Code”
means the Internal Revenue Code of 1986, as amended.

 

2)             Section 13(c) is amended
to read as follows:

 

(b)  For purposes of this Section 13, a
Change in Control of the Company shall be deemed to have occurred only if there
is a “change in the ownership of 3M,” “change in effective control of 3M,”
and/or a “change in the ownership of a substantial portion of 3M’s assets” as
defined under Treas. Reg. Section 1.409A-3(i)(5) or such other
regulation or guidance issued under section 409A of the Code.

 

 

3)             Section 13(f) is
amended to read as follows:

 

(f)  In the event that the payments made pursuant
to this Section 13 are finally determined to be subject to the excise tax
imposed by Section 4999 of the Code, the Company shall pay to each
Participant an additional amount such that the net amount retained by such
Participant, after allowing for the amount of such excise tax and any
additional federal, state and local income taxes paid on the additional amount,
shall be equal to the value of the Performance Units distributed to such
Participant pursuant to this Section 13. 
Payment of this additional amount shall be made as soon as
administratively feasible, but no later than two and one-half months following
the end of the Participant’s taxable year in which the Participant remits the
related taxes.

 

4)             Section 13(g) is
amended to read as follows:

 

(g)  The Company shall pay to each Participant
the amount of all reasonable legal and accounting fees and expenses incurred by
such Participant in seeking to obtain or enforce his rights under this Section 13
or in connection with any income tax audit or proceeding to the extent
attributable to the application of Section 4999 of the Code to the
payments made pursuant to this Section 13, unless a lawsuit commenced by
the Participant for such purposes is dismissed by the court as being spurious
or frivolous.  The Company shall also pay
to each Participant the amount of all reasonable tax and financial planning
fees and expenses incurred by such Participant in connection with such Participant’s
receipt of payments pursuant to this Section 13.  Payment of these legal and accounting fees,
as well as these tax and financial planning fees and expenses, shall be made as
soon as administratively feasible, but no later than two and one-half months
following the end of the Participant’s taxable year in which the Participant
incurs these fees and expenses.Exhibit 10.7

 

AMENDMENT OF THE 3M 1992

DIRECTORS STOCK OWNERSHIP PROGRAM —

409A Compliance

 

WHEREAS,
3M has adopted and maintains the 3M 1992 Directors Stock Ownership Program (the
“Plan”), which Plan is intended to attract and retain well-qualified individuals
to serve on its Board of Directors and to promote an identity of interest
between these directors and the stockholders of the Company; and

 

WHEREAS,
the Company wishes to amend the Plan to ensure that the Plan document complies
with the requirements of Section 409A of the Internal Revenue Code of
1986, as amended, and the regulations issued thereunder;

 

                RESOLVED, pursuant to the authority contained in Section 13
of the Plan, such Plan shall be and it hereby is amended as follows, effective January 1,
2009:

 

1)            Section 14(a) is amended
to read as follows:

 

                (a)                 For
purposes of this Section 14, the following words and phrases shall have
the meanings indicated below, unless the context clearly indicates otherwise:

 

                (i)                  “Code”
means the Internal Revenue Code of 1986, as amended.

 

2)            Section 14(c) is amended
to read as follows:

 

                (c)                 For
purposes of this Section 14, a Change in Control of the Company shall be
deemed to have occurred only if there is a “change in the ownership” of the
Company, “change in effective control” of the Company”, and/or a “change in the
ownership of a substantial portion of the assets” of the Company as those terms
are defined under Treasury Regulations §1.409A-3(i)(5) or such other
regulation or guidance issued under section 409A of the Code.

 

3)            Section 14(d) is amended
to read as follows:

 

                (d)                 In
the event that the provisions of this Section 14 result in “payments” that
are finally determined to be subject to the excise tax imposed by Section 4999
of the Code, the Company shall pay to each Participant an additional amount
such that the net 

 

 

amount retained by such
Participant following the lapse of restrictions, if any, and delivery of Common
Stock under this Section that resulted in such “payments,” after allowing
for the amount of such excise tax and any additional federal, state, and local
income taxes paid on the additional amount, shall be equal to the net amount
that would otherwise have been retained by the Participant following the lapse
of restrictions, if any, and delivery of Common Stock under this Section if
there were no excise tax imposed by Section 4999 of the Code.  Payment of this additional amount shall be
made as soon as administratively feasible, but no later than two and one-half
months following the end of the Participant’s taxable year in which the
Participant remits the related taxes.

 

4)            Section 14(e) is amended
to read as follows:

 

(e)           The Company shall
pay to each Participant the amount of all reasonable legal and accounting fees
and expenses incurred by such Participant in seeking to obtain or enforce his
rights under this Section 14, or in connection with any income tax audit
or proceeding to the extent attributable to the application of Section 4999
of the Code to the payments made pursuant to this Section 14, unless a
lawsuit commenced by the Participant for such purposes is dismissed by the
court as being spurious or frivolous. 
The Company shall also pay to each Participant the amount of all
reasonable tax and financial planning fees and expenses incurred by such
Participant in connection with such Participant’s receipt of payments pursuant
to this Section 14.  Payment of
these legal and accounting fees, as well as these tax and financial planning
fees and expenses, shall be made as soon as administratively feasible, but no
later than two and one-half months following the end of the Participant’s
taxable year in which the Participant incurs these fees and expenses.Exhibit 10.8

 

AMENDMENT OF THE

COMPENSATION PLAN FOR NONEMPLOYEE DIRECTORS —

409A Compliance and One-time Re-deferral
Opportunity

 

WHEREAS,
3M has adopted and maintains the 3M Compensation Plan for Nonemployee Directors
(the “Plan”), which Plan is intended to provide a compensation program for its
nonemployee directors that will attract and retain highly qualified individuals
to serve on its Board of Directors;

 

WHEREAS,
the Company wishes to amend the Plan to ensure that the Plan document complies
with the requirements of Section 409A of the Internal Revenue Code of
1986, as amended, and the regulations issued thereunder;

 

WHEREAS,
since 2005 the Plan has required nonemployee directors to elect both the time
and method of paying amounts deferred under the Plan as part of their annual
deferral election; and

 

WHEREAS,
due to recent changes in state tax laws that may be applicable to the
nonemployee directors, the Committee wishes to amend the Plan to permit those
current and former nonemployee directors who have not commenced receiving
payment of their amounts deferred under the plan to change their previous
payment elections during a limited time period made possible by the final
regulations interpreting section 409A of the Internal Revenue Code;

 

                RESOLVED, pursuant to the authority contained in Part I.C
of the Plan, such Plan shall be and it hereby is amended as follows, effective
immediately:

 

1)            Paragraph 4 of Part I.D of the
Plan is amended to read as follows:

 

4.                                      A
director elected to the Board after the beginning of a Plan Year may elect, by
written notice to 3M within 30 days after such director’s term begins, to
participate on a prospective basis only in the Compensation alternatives for
the remainder of that Plan Year commencing no earlier than the date such
director delivers such written notice to 3M. 
Such director’s ability to participate in this Plan for succeeding years
shall be on the same basis as for other directors.

 

2)            Paragraph 2 of Part IV.D of the
Plan is amended to read as follows:

 

 

2.                                      Amounts deferred after 2004.  Unless
the participant has elected a different time and form of payment for the
Compensation deferred for one or more Plan Years, distribution of the
participant’s memorandum account(s) attributable to Compensation earned
and deferred in Plan Years beginning after December 31, 2004 shall be made
in ten annual installments on the first business day of January in each of
the first ten years following the year in which the participant incurs a
Separation from Service with 3M.  The
amount of each installment payment shall be determined by dividing the amount
of such memorandum account(s) as of the immediately preceding December 31
by the number of installment payments remaining to be paid.

 

Effective for Plan Years
commencing on or after January 1, 2005, each participant may elect to
receive the Compensation deferred for a Plan Year (and any earnings thereon) in
either a lump sum payment on the first business day of any of the first through
tenth years following the year in which the participant incurs a Separation
from Service with 3M or in some other number of annual installments (not to
exceed ten) on the first business day of January in each of the same
number of years following the year in which such participant incurs a Separation
from Service with 3M.

 

Any election made by a participant pursuant to
this paragraph D shall be made by written notice to 3M prior to the beginning
of the Plan Year during which the Compensation being deferred is earned, and
shall be irrevocable except to the extent provided in the following paragraph.

 

Prior to the end of
2008, participants who have elected to defer Compensation for one or more Plan
Years since 2004 and who have not commenced receiving payment of such deferred
Compensation may by written notice to 3M revise their elections concerning the
time of payment and method of paying their Compensation deferred for any one or
more of such Plan Years (and any earnings thereon) subject to the following
conditions:

 

a.                                      each
revised election must be consistent with the other requirements of this
paragraph 2, in terms of both the method of payment and the time for payments
to commence;

 

b.                                      no
revised election may result in the deferral of payments that would otherwise
have commenced in 2008; and

 

c.                                       no
revised election may result in the commencement of payments during 2008 that
would not otherwise have commenced during such year.

 

For
purposes of this Plan, “Separation from Service” means a complete severance of
a director’s relationship as a director of 3M and all affiliates, if any, and
as an independent contractor to 3M and all affiliates, if any, for any
reason.  A director may have a Separation
from Service upon his or her resignation as a director even if the director
then becomes an officer or other employee of 3M or an affiliate.  Separation from Service shall in all other
respects be construed to have a meaning consistent with the term “separation
from service” as used and defined in section 409A of the Code.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}]]