Document:

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Exhibit 10.M

JOHNSON CONTROLS, INC.

DIRECTOR SHARE UNIT PLAN

ARTICLE 1.

PURPOSE AND DURATION

          Section 1.1.  Purpose. The purpose of the Johnson Controls, Inc. Director Share
Unit Plan is to advance the Company’s growth and success, and to advance the interests of its
shareholders, by attracting and retaining well-qualified Outside Directors upon whose judgment the
Company is largely dependent for the successful conduct of its operations and by providing such
individuals with incentives to put forth maximum effort for the long-term success of the Company’s
business, thereby aligning their interests more closely with the interests of shareholders.

          Section 1.2.  Duration. The Plan was originally effective on November 18, 1998.
The Plan is amended and restated effective January 1, 2008. The provisions of the Plan as amended
and restated apply to each individual with an interest hereunder on or after January 1, 2008.

ARTICLE 2.

DEFINITIONS AND CONSTRUCTION

          Section 2.1.  Definitions. Wherever used in the Plan, the following terms shall
have the meanings set forth below and, when the meaning is intended, the initial letter of the word
is capitalized:

          (a) “Administrator” means the Employee Benefits Policy Committee of the Company.

          (b) “Affiliate” means each entity that is required to be included in the Company’s controlled
group of corporations within the meaning of Code Section 414(b), or that is under common control
with the Company within the meaning of Code Section 414(c); provided that for purposes of
determining when a Participant has incurred a Separation from Service, the phrase “at least 50
percent” shall be used in place of the phrase “at least 80 percent” in each place that phrase
appears in the regulations issued thereunder.

          (c) “Beneficiary” means the person or persons entitled to receive the interest of a
Participant in the event of the Participant’s death as provided in Section 3.7.

          (d) “Board” means the Board of Directors of the Company.

          (e) “Change of Control” has the meaning ascribed to such term in Section 10.2.

          (f) “Committee” means the Corporate Governance Committee of the Board; provided, however, that
if the Corporate Governance Committee does not include two or more “non-employee directors” within
the meaning of Rule 16b-3 of the Exchange Act, then the term

 

 

“Committee” means such other committee appointed by the Board consisting of two or more
“non-employee directors.”

          (g) “Company” means Johnson Controls, Inc., a Wisconsin corporation, and any successor thereto
as provided in Article 11.

          (h) “Exchange Act” means the Securities Exchange Act of 1934, as interpreted by regulations
and rules issued pursuant thereto, all as amended and in effect from time to time. Any reference
to a specific provision of the Exchange Act shall be deemed to include reference to any successor
provision thereto.

          (i) “Fair Market Value” means with respect to a Share, except as otherwise provided herein,
the closing sales price of a Share on the New York Stock Exchange as of 4:00 p.m. EST on the date
in question (or the immediately preceding trading day, if the date in question is not a trading
day), and with respect to any other property, such value as is determined by the Administrator.

          (j) “Investment Options” means the investment options offered under the Johnson Controls
Savings and Investment (401k) Plan (excluding the Company stock fund) or any successor plan
thereto, the Share Units, and any other alternatives made available by the Administrator, which
shall be used for the purpose of measuring hypothetical investment experience attributable to a
Participant’s Retirement Account.

          (k) “Outside Director” means a member of the Board who is not an officer or employee of the
Company or an Affiliate.

          (l) “Participant” means each Outside Director who has a Retirement Account under the Plan.
Where the context so requires, a Participant also means a former director who is entitled to a
benefit under the Plan.

          (m) “Plan” means the arrangement described herein, as from time to time amended and in effect.

          (n) “Retirement Account” means the record keeping account maintained to record the interest of
each Participant under the Plan. A Retirement Account is established for record keeping purposes
only and not to reflect the physical segregation of assets on the Participant’s behalf, and may
consist of such subaccounts or balances as the Administrator may determine to be necessary or
appropriate.

          (o) “Separation from Service” means a Participant’s cessation of service as a Board member,
for any reason, provided the cessation of service is a good-faith and complete termination of the
Participant’s relationship with the Company and its Affiliates, within the meaning of Code Section
409A. If, at the time the Participant’s service as a Board member ends, the Participant begins
providing services to the Company or an Affiliate as an employee, the Participant shall not incur a
Separation from Service under the terms of the Plan until the Participant has a separation from
service from the Company or an Affiliate as an employee within the meaning of Code Section 409A.

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          (p) “Share” means a share of the Company’s common stock, $0.16 par value.

          (q) “Share Units” means the hypothetical Shares that are credited to the Participant’s
Retirement Account in accordance with Article 5.

          (r) “Total and Permanent Disability” means the Participant’s inability to engage in any
substantial gainful activity as a result of a medically-determinable physical or mental impairment
which can be expected to result in death or which can be expected to last for a continuous period
of at least twelve (12) months, as determined by the Administrator. The Administrator may require
the Participant to submit such medical evidence or to undergo a medical examination by a doctor
selected by the Administrator as the Administrator determines is necessary in order to make a
determination hereunder.

          (s) “Valuation Date” means each day when the United States financial markets are open for
business, as of which the Administrator will determine the value of each Retirement Account.

          Section 2.2.  Construction. Wherever any words are used in the masculine, they
shall be construed as though they were used in the feminine in all cases where they would so apply;
and wherever any words are use in the singular or the plural, they shall be construed as though
they were used in the plural or the singular, as the case may be, in all cases where they would so
apply. Titles of articles and sections are for general information only, and the Plan is not to be
construed by reference to such items.

          Section 2.3.  Severability. In the event any provision of the Plan is held
illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining
parts of the Plan, and the Plan shall be construed and enforced as if the said illegal or invalid
provision had not been included.

ARTICLE 3.

ADMINISTRATION

          Section 3.1.  General. The Committee shall have overall authority with respect to
administration of the Plan; provided that the Administrator shall have responsibility for the
general operation and daily administration of the Plan as specified herein. If at any time the
Committee shall not be in existence or not be composed of members of the Board who qualify as
“non-employee directors”, then the Board shall administer the Plan (with the assistance of the
Administrator) and all references herein to the Committee shall be deemed to include the Board.

          Section 3.2.  Authority. In addition to the authority specifically provided
herein, the Committee and the Administrator shall have full power and discretionary authority to
take any action or make any determination deemed necessary for the proper administration of the
Plan with respect to the respective duties of each under the Plan, including but not limited to the
power and authority to: (a) interpret the Plan; (b) correct errors, supply omissions or reconcile
inconsistencies in the Plan’s terms; (c) establish, amend or waive rules and regulations, and
appoint such agents, as it deems appropriate for the Plan’s administration; and (d) make any other
determinations, including factual determinations, and take any other action as it determines is
necessary or desirable for the Plan’s administration. Any action taken by the Committee shall

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be controlling over any contrary action of the Administrator. The Committee and the Administrator
may delegate their ministerial duties to third parties and to the extent of such delegation,
references to the Committee or Administrator herein shall mean such delegates, if any.

          Section 3.3.  Decision Binding. The Committee’s and the Administrator’s
determinations and decisions made pursuant to the provisions of the Plan and all related orders or
resolutions of the Board shall be final, conclusive and binding on all persons who have an interest
in the Plan, and such determinations and decisions shall not be reviewable.

          Section 3.4.  Procedures for Administration. The Committee’s determinations must
be made by not less than a majority of its members present at the meeting (in person or otherwise)
at which a quorum is present, or by written majority consent, which sets forth the action, is
signed by the members of the Committee and filed with the minutes for proceedings of the Committee.
A majority of the entire Committee shall constitute a quorum for the transaction of business. The
Administrator’s determinations shall be made in accordance with such procedures it establishes.

          Section 3.5.  Indemnification. Neither the Committee, nor the Administrator, nor
any member thereof shall be liable for any act, omission, interpretation, construction or
determination made in connection with the Plan in good faith and the members of the Committee and
the Administrator shall be entitled to indemnification and reimbursement by the Company in respect
of any claim, loss, damage or expense (including attorneys’ fees) arising therefrom to the full
extent permitted by law and under any directors’ and officers’ liability insurance that may be in
effect from time to time.

          Section 3.6.  Restrictions to Comply with Applicable Law. Transactions under the
Plan are intended to comply with all applicable conditions of Rule 16b-3 under the Exchange Act.
The Committee and the Administrator shall administer the Plan so that transactions under the Plan
will be exempt from or comply with Section 16 of the Exchange Act, and shall have the right to
restrict or rescind any transaction, or impose other rules and requirements, to the extent it deems
necessary or desirable for such exemption or compliance to be met.

          Section 3.7.  Designation of Beneficiary. Each Participant may designate a
Beneficiary in such form and manner and within such time periods as the Administrator may
prescribe. A Participant can change his beneficiary designation at any time, provided that each
beneficiary designation shall revoke the most recent designation, and the last designation received
by the Administrator while the Participant is alive shall be given effect. If a Participant
designates a Beneficiary without providing in the designation that the Beneficiary must be living
at the time of distribution, the designation shall vest in the Beneficiary all of the distribution
payable after the Participant’s death, and any distributions remaining upon the Beneficiary’s death
shall be made to the Beneficiary’s estate. If there is no valid beneficiary designation in effect
at the time of the Participant’s death, if the Beneficiary does not survive the Participant, or if
the beneficiary designation provides that the Beneficiary must be living at the time of each
distribution and such designated Beneficiary does not survive to a distribution date, the
Participant’s estate will be deemed the Beneficiary and will be entitled to receive payment. If a
Participant designates his spouse as a Beneficiary, such beneficiary designation automatically

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shall become null and void on the date the Administrator receives notice of the Participant’s
divorce or legal separation.

ARTICLE 4.

PARTICIPATION

          Each Outside Director shall automatically become a Participant on the date the individual is
first elected to become an Outside Director. No new Participants shall be added to the Plan after
October 1, 2006.

ARTICLE 5.

RETIREMENT ACCOUNTS

          Section 5.1.  Establishment of Retirement Account. Each Participant shall have a
Retirement Account established under this Plan on his behalf. A Participant’s Retirement Account
shall be credited with “Share Units” and otherwise subject to adjustment as follows:

          (a) Conversion of Accrued Benefits. For each Participant who was an Outside Director
of the Company as of December 1, 1998, the Administrator shall calculate the value of such Outside
Director’s accrued benefits under the Company’s Director Retirement Plan as of September 30, 1998.
Each such Outside Director’s Retirement Account shall be credited with a number of Share Units
equal to the result obtained by (i) dividing (A) the value of such Outside Director’s accrued
benefits under the Company’s Director Retirement Plan as of September 30, 1998 by (B) the Fair
Market Value of a Share as of the first trading day in December 1998.

          (b) Annual Credit of Share Units. On the date of each regular meeting of the Board
held in November, the Retirement Account of each Participant who is then an Outside Director shall
be credited with a number of additional Share Units equal to the result obtained by (i) dividing
(A) the amount determined for such year by the Committee by (B) the Fair Market Value of a Share on
such date. Effective October 1, 2006, no additional Share Units shall be credited to a
Participant’s Retirement Account under this subsection (b).

          Section 5.2.  Interim Election. Any Outside Director whose election to the Board
is first effective at any time other than the regular meeting of the Board held in November shall
have credited to his or her Retirement Account a proportionate share of the Annual Credit at the
time of effectiveness of his election. Such credit shall be based on the Fair Market Value of a
Share on the date on which his election is effective. Effective October 1, 2006, no Share Units
shall be credited to a Participant’s Retirement Account under this Section 5.2.

          Section 5.3.  Investment Election. Effective November 15, 2006, amounts credited
to a Participant’s Retirement Account shall reflect the investment experience of the Investment
Options selected by the Participant. A Participant may elect to reallocate his or her Retirement
Account among the various Investment Options in whole increments of one percent (1%) from time to
time as prescribed by the Administrator, subject to any restrictions on re-allocation with respect
to Share Units as may be imposed by the Company. Such investment elections shall remain in effect
until changed by the Participant. All investment elections shall become effective as soon as
practicable after receipt of such election by the Administrator or its

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designee, and must be made in the form and manner and within such time periods as the Administrator
prescribes in order to be effective. In the absence of an effective election, the Participant’s
Account shall be deemed invested in the Share Unit Account.

          On each Valuation Date, the Administrator or its designee shall credit the deemed investment
experience with respect to the selected Investment Options to each Participant’s Account.

          Notwithstanding anything herein to the contrary, the Company retains the right to allocate
actual amounts hereunder without regard to a Participant’s request.

          Section 5.4.  Securities Law Restrictions. Notwithstanding anything to the
contrary herein, all elections under Section 5.3 by a Participant who is subject to Section 16 of
the Exchange Act are subject to review by the Administrator prior to implementation. In
accordance with Section 3.6, the Administrator may restrict additional transactions, rescind
transactions, or impose other rules and procedures, to the extent deemed desirable by the
Administrator in order to comply with the Exchange Act, including, without limitation, application
of the review and approval provisions of this Section 5.4 to Participants who are not subject to
Section 16 of the Exchange Act.

          Section 5.5.  Accounts are For Record Keeping Purposes Only. Retirement Accounts
and the record keeping procedures described herein serve solely as a device for determining the
amount of benefits accumulated by a Participant under the Plan, and shall not constitute or imply
an obligation on the part of the Company to fund such benefits.

ARTICLE 6.

RULES WITH RESPECT TO SHARE UNITS

          Section 6.1.  Transactions Affecting Common Stock. In the event of any merger,
share exchange, reorganization, consolidation, recapitalization, stock dividend, stock split or
other change in corporate structure of the Company affecting Shares, the Administrator may make
appropriate equitable adjustments with respect to the Share Units credited to the Retirement
Account of each Participant, including without limitation, adjusting the date as of which such
units are valued and/or distributed, as the Administrator determines is necessary or desirable to
prevent the dilution or enlargement of the benefits intended to be provided under the Plan.

          Section 6.2.  No Shareholder Rights With Respect to Share Units. Participants
shall have no rights as a stockholder pertaining to Share Units credited to their Retirement
Accounts. No Participant or Beneficiary shall have any right to receive a distribution of Shares
under this Plan. All distributions under the Plan are made in cash.

          Section 6.3.  Dividends. Whenever the Company declares a dividend on its Shares,
in cash or in property, at a time when Participants have Share Units credited to their Retirement
Accounts, a dividend award shall be made to all such Participants as of the date of payment of the
dividend. The dividend award for a Participant shall be determined by multiplying the Share Units
credited to the Participant’s Account as of the date the dividend is declared by the amount or Fair
Market Value of the dividend paid or distributed on one Share.

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The dividend award shall be credited to the Participant’s Retirement Account by converting such
award into Share Units by dividing the amount of the dividend award by the Fair Market Value of a
Share on the date the dividend is paid. Any other provision of this Plan to the contrary
notwithstanding, if a dividend is declared on Shares in the form of a right or rights to purchase
shares of capital stock of the Company or of any entity acquiring the Company, such dividend award
shall not be credited to the Participant’s Retirement Account, but each Share Unit credited to a
Participant’s Retirement Account at the time such dividend is paid, and each Share Unit thereafter
credited to the Participant’s Retirement Account at a time when such rights are attached to Shares,
shall thereafter be valued as of any point in time on the basis of the aggregate of the then Fair
Market Value of one Share plus the then Fair Market Value of such right or rights then or
previously attached to one Share.

ARTICLE 7.

PAYMENT

          Section 7.1.  Distributions.

          (a) Participant’s Separation from Service. Upon a Participant’s Separation from
Service for any reason, the Participant, or his Beneficiary, in the event of his death, shall be
entitled to payment of the amount accumulated in such Participant’s Retirement Account.

          Section 7.2.  Election of Form of Distribution. A Participant, within the first
thirty (30) days following the date he commences participation in the Plan, shall make a
distribution election with respect to his Retirement Account. Such election shall be made in such
form and manner and within such time periods as the Administrator may prescribe, and shall be
irrevocable. The election shall specify whether distributions shall be made in a single lump sum
or annual installments of from two (2) to ten (10) years. If no valid election is in effect,
distribution shall be made in ten (10) annual installments.

          Section 7.3.  Manner of Distribution. A Participant’s Retirement Account shall be
paid or begin to be paid in cash as follows:

          (a) If payment is to be made in a lump sum, payment shall be made in the first calendar
quarter of the year following the year in which the Participant’s Separation from Service occurs,
and shall be in an amount equal to the balance of the Participant’s Retirement Account as of the
Valuation Date immediately preceding the distribution date.

          (b) If payment is to be made in annual installments, the first annual payment shall be made in
the first calendar quarter of the year following the year in which the Participant’s Separation
from Service occurs, and shall equal the value of 1/10th (or 1/9th,
1/8th, 1/7th, etc. depending on the number of installments elected) of the
balance of the Participant’s Retirement Account as of the Valuation Date immediately preceding the
distribution date. A second annual payment shall be made in the first calendar quarter of the
second year after the year in which the Participant’s Separation from Service occurs, and shall
equal the value of
1/9th (or 1/8th, 1/7th, 1/6th, etc.
depending on the number of installments elected) of the balance of the Participant’s Retirement
Account as of the Valuation Date immediately preceding the distribution date. Each succeeding
installment payment (if any) shall be determined in a similar

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manner, until the final installment which shall equal the then remaining balance of such
account as of the Valuation Date immediately preceding the final distribution date.

          Notwithstanding the foregoing provisions, if the balance of a Participant’s Retirement Account
as of the Valuation Date immediately preceding a distribution date is $50,000 or less, then the
entire remaining balance of the Participant’s Retirement Account shall be paid in the form of a
lump sum on such distribution date.

          Section 7.4.  Distribution of Remaining Account Following Participant’s Death. In
the event of the Participant’s death prior to receiving all payments due under this Article 7, the
balance of the Participant’s Retirement Account shall be paid to the Participant’s Beneficiary in a
lump sum in the first calendar quarter of the year following the year of the Participant’s death.

          Section 7.5.  Tax Withholding. The Company shall have the right to deduct from
any deferral or payment made hereunder, or from any other amount due a Participant, the amount of
cash sufficient to satisfy the Company’s or Affiliate’s foreign, federal, state or local income tax
withholding obligations with respect to such deferral or payment. In addition, if prior to the
date of distribution of any amount hereunder, the Federal Insurance Contributions Act (FICA) tax
imposed under Code Sections 3101, 3121(a) and 3121(v)(2), where applicable, becomes due, the
Participant’s Retirement Account balance shall be reduced by the amount needed to pay the
Participant’s portion of such tax, plus an amount equal to the withholding taxes due under federal,
state or local law resulting from the payment of such FICA tax, and an additional amount to pay the
additional income tax at source on wages attributable to the pyramiding of the Code Section 3401
wages and taxes, but no greater than the aggregate of the FICA tax amount and the income tax
withholding related to such FICA tax amount.

          Section 7.6.  Offset. The Company shall have the right to offset from any amount
payable hereunder any amount that the Participant owes to the Company or to any Affiliate without
the consent of the Participant (or his Beneficiary, in the event of the Participant’s death).

          Section 7.7.  Additional Payment Provisions.

          (a) Acceleration of Payment. Notwithstanding the foregoing:

	 	(1)	 	If an amount deferred under this Plan is required to be
included in income under Code Section 409A prior to the date such amount is
actually distributed, a Participant shall receive a distribution, in a lump sum
within ninety (90) days after the date the Plan fails to meet the requirements
of Code Section 409A, of the amount required to be included in the
Participant’s income as a result of such failure.
	 
	 	(2)	 	If an amount under the Plan is required to be immediately
distributed in a lump sum under a domestic relations order within the meaning
of Code Section 414(p)(1)(B), it may be distributed according to the terms of
such order, provided the Participant holds the Administrator harmless with
respect to such distribution. The Plan shall not distribute amounts required
to be distributed under a domestic relations order other than in the limited
circumstance specifically stated herein.

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          (b) Delay in Payment. Notwithstanding the foregoing:

	 	(1)	 	If a distribution required under the terms of this Plan would
jeopardize the ability of the Company to continue as a going concern, the
Company shall not be required to make such distribution. Rather, the
distribution shall be delayed until the first date that making the distribution
does not jeopardize the ability of the Company to continue as a going concern.
Any distribution delayed under this provision shall be treated as made on the
date specified under the terms of this Plan.
	 
	 	(2)	 	If the distribution will violate the terms of Section 16(b) of
the Exchange Act or other Federal securities laws, or any other applicable law,
then the distribution shall be delayed until the earliest date on which making
the distribution will not violate such law.

ARTICLE 8.

TERMS AND CONDITIONS

          Section 8.1.  No Funding. No stock, cash or other property will be deliverable to
a Participant or his or her Beneficiary in respect of the Participant’s Retirement Account until
the date or dates identified pursuant to Article 7, and all Retirement Accounts shall be reflected
in one or more unfunded accounts established for the Participant by the Company. Payment of the
Company’s obligation will be from general funds, and no special assets (stock, cash or otherwise)
have been or will be set aside as security for this obligation, unless otherwise provided by the
Administrator.

          Section 8.2.  No Transfers. Except as permitted by Section 7.5, a Participant’s
rights to payments under this Plan are not subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance by a Participant or his Beneficiary, or garnishment by a
Participant’s creditors or the creditors of his or her beneficiaries, whether by operation of law
or otherwise, and any attempted sale, transfer, assignment, pledge, or encumbrance with respect to
such payment shall be null and void, and shall be without legal effect and shall not be recognized
by the Company.

          Section 8.3.  Unsecured Creditor. The right of a Participant or Beneficiary to
receive payments under this Plan is that of a general, unsecured creditor of the Company, and the
obligation of the Company to make payments constitutes a mere promise by the Company to pay such
benefits in the future. Further, the arrangements contemplated by this Plan are intended to be
unfunded for tax purposes and for purposes of Title I of ERISA.

          Section 8.4.  Retention as Director. Nothing contained in the Plan shall
interfere with or limit in any way the right of the shareholders of the Company to remove any
Director from the Board, nor confer upon any Director any right to continue in the service of
Company as a Director.

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ARTICLE 9.

TERMINATION AND AMENDMENT OF PLAN

          Section 9.1.  Amendment. To the extent permitted by Code Section 409A, the
Committee may at any time amend the Plan; provided, however, that (a) the Committee may not amend
the Plan more than once every six months, other than amendments the Committee deems necessary or
advisable to assure the conformity of the Plan with any requirements of state and federal law or
regulations now or hereafter in effect, and (b) subject to the provisions of Section 9.2, no
amendment shall affect adversely any of the rights of any Outside Director (except as such Outside
Director’s Retirement Account balance may be reduced as a result of investment losses allocable to
such account), without such Outside Director’s consent, under any election theretofore in effect
under the Plan; provided further that the Board must approve any amendment that expands the class
of individuals eligible for participation under the Plan, that materially increases the benefits
provided hereunder, or that is required to be approved by the Board by any applicable law or the
listing requirements of the national securities exchange upon which the Company’s common stock is
then traded. In addition, the Administrator may at any time amend the Plan to make administrative
changes and changes necessary to comply with applicable law.

          Section 9.2.  Termination. The Committee may terminate the Plan in accordance
with the following provisions. Upon termination of the Plan, the Committee may authorize the
payment of all amounts accrued under the Plan in a single sum payment without regard to any
distribution election then in effect, only in the following circumstances:

	 	(1)	 	The Plan is terminated within twelve (12) months of a corporate
dissolution taxed under Code Section 331, or with the approval of a bankruptcy
court pursuant to 11 U.S.C. §503(b)(1)(A). In such event, the single sum
payment must be distributed by the latest of: (A) the last day of the calendar
year in which the Plan termination occurs, (B) the first calendar year in which
the amount is no longer subject to a substantial risk of forfeiture, or (C) the
first calendar year in which payment is administratively practicable.
	 
	 	(2)	 	The Plan is terminated at any other time, provided that such
termination does not occur proximate to a downturn in the financial health of
the Company or an Affiliate, and all other plans required to be aggregate with
this Plan under Code Section 409A are also terminated and liquidated. In such
event, the single sum payment shall be paid no earlier than twelve (12) months
(and no later than twenty-four (24) months) after the date of the Plan’s
termination. Notwithstanding the foregoing, any payment that would otherwise
be paid during the twelve (12)-month period beginning on the Plan termination
date pursuant to the terms of the Plan shall be paid in accordance with such
terms. In addition, the Company or any Affiliate shall be prohibited from
adopting a similar arrangement within three (3) years following the date of the
Plan’s termination.

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ARTICLE 10.

CHANGE OF CONTROL

          Section 10.1.  Acceleration of Payment. Anything in this Plan to the contrary
notwithstanding, each Participant’s Retirement Account shall be paid in cash in a lump sum within
thirty (30) days following the occurrence of a Change of Control. The amount of the cash payment
shall be determined by multiplying the number of Share Units in the Retirement Account by the Fair
Market Value of a Share as of the most recent Valuation Date preceding the occurrence of the Change
of Control.

          In determining the amount accumulated in a Participant’s Retirement Account, each Share Unit
shall have a value equal to the higher of (a) the highest reported sales price, regular way, of a
share of the Company’s common stock on the Composite Tape for New York Stock Exchange Listed Stocks
(the “Composite Tape”) during the sixty (60)-day period prior to the date of the Change of Control
of the Company and (b) if the Change of Control of the Company is the result of a transaction or
series of transactions described in Section 10.2(a), the highest price per Share of the Company
paid in such transaction or series of transactions.

          Section 10.2.  Definition of a Change of Control. A Change of Control means any
of the following events, provided that each such event would constitute a change of control within
the meaning of Code Section 409A:

          (a) The acquisition, other than from the Company, by any individual, entity or group of
beneficial ownership (within the meaning of Rule l3d-3 promulgated under the Exchange Act),
including in connection with a merger, consolidation or reorganization, of more than either:

	 	(1)	 	Fifty percent (50%) of the then outstanding shares of common
stock of the Company (the “Outstanding Company Common Stock”) or
	 
	 	(2)	 	Thirty-five percent (35%) of the combined voting power of the
then outstanding voting securities of the Company entitled to vote generally in
the election of directors (the “Company Voting Securities”),

provided, however, that any acquisition by (x) the Company or any of its subsidiaries, or any
employee benefit plan (or related trust) sponsored or maintained by the Company or any of its
subsidiaries or (y) any corporation with respect to which, following such acquisition, more than
sixty percent (60%) of, respectively, the then outstanding shares of common stock of such
corporation and the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors is then beneficially owned,
directly or indirectly, by all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Company Common Stock and Company Voting
Securities immediately prior to such acquisition in substantially the same proportion as their
ownership, immediately prior to such acquisition, of the Outstanding Company Common Stock and
Company Voting Securities, as the case may be, shall not constitute a Change in Control of the
Company; or

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          (b) Individuals who, as of January 1, 2005, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board during any twelve (12)-month period,
provided that any individual becoming a director subsequent to January 1, 2005, whose election or
nomination for election by the Company’s shareholders was approved by a vote of at least a majority
of the directors then comprising the Incumbent Board, shall be considered as though such individual
were a member of the Incumbent Board; or

          (c) A complete liquidation or dissolution of the Company or sale or other disposition of all
or substantially all of the assets of the Company other than to a corporation with respect to
which, following such sale or disposition, more than sixty percent (60%) of, respectively, the then
outstanding shares of common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors is then owned beneficially,
directly or indirectly, by all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Company Common Stock and Company Voting
Securities immediately prior to such sale or disposition in substantially the same proportion as
their ownership of the Outstanding Company Common Stock and Company Voting Securities, as the case
may be, immediately prior to such sale or disposition. For purposes hereof, “a sale or other
disposition of all or substantially all of the assets of the Company” will not be deemed to have
occurred if the sale involves assets having a total gross fair market value of less than forty
percent (40%) of the total gross fair market value of all assets of the Company immediately prior
to the acquisition. For this purpose, “gross fair market value” means the value of the assets
without regard to any liabilities associated with such assets.

          (d) For purposes of this Section 10.2, persons will not be considered to be acting as a
“group” solely because they purchase or own stock of the Company at the same time, or as a result
of the same public offering. However, persons will be considered to be acting as a “group” if they
are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of
stock, or similar business transaction with the Company. If a person, including an entity, owns
stock in the Company and any other corporation that enters into a merger, consolidation, purchase
or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a
group with other shareholders in such corporation only with respect to the ownership in that
corporation prior to the transaction giving rise to the change and not with respect to the
ownership interest in the Company.

ARTICLE 11.

SUCCESSORS

          All obligations of the Company under the Plan shall be binding on any successor to the
Company, whether the existence of such successor is the result of a direct or indirect purchase,
merger, consolidation or otherwise, of all or substantially all of the business and/or assets of
the Company. This Plan shall be binding upon and inure to the benefit of the Participants,
Beneficiaries, and their heirs, executors, administrators and legal representatives.

12

 

ARTICLE 12.

DISPUTE RESOLUTION

          Section 12.1.  Governing Law. This Plan and the rights and obligations hereunder
shall be governed by and construed in accordance with the internal laws of the State of Wisconsin
(excluding any choice of law rules that may direct the application of the laws of another
jurisdiction).

          Section 12.2.  Arbitration.

          (a) Application. Notwithstanding anything to the contrary herein, if a Participant or
Beneficiary brings a claim that relates to benefits under this Plan, regardless of the basis of
the claim, such claim shall be settled by final binding arbitration in accordance with the rules of
the American Arbitration Association (“AAA”) and judgment upon the award rendered by the arbitrator
may be entered in any court having jurisdiction thereof.

          (b) Initiation of Action. Arbitration must be initiated by serving or mailing a
written notice of the complaint to the other party. Normally, such written notice should be
provided to the other party within one year (365 days) after the day the complaining party first
knew or should have known of the events giving rise to the complaint. However, this time frame may
be extended if the applicable statute of limitation provides for a longer period of time. If the
complaint is not properly submitted within the appropriate time frame, all rights and claims that
the complaining party has or may have against the other party shall be waived and void. Any notice
sent to the Company shall be delivered to:

Office of General Counsel

Johnson Controls, Inc.

5757 North Green Bay Avenue

P.O. Box 591

Milwaukee, WI 53201-0591

          The notice must identify and describe the nature of all complaints asserted and the facts upon
which such complaints are based. Notice will be deemed given according to the date of any postmark
or the date of time of any personal delivery.

          (c) Compliance with Personnel Policies. Before proceeding to arbitration on a
complaint, the Participant or Beneficiary must initiate and participate in any complaint resolution
procedure identified in the Company’s personnel policies. If the claimant has not initiated the
complaint resolution procedure before initiating arbitration on a complaint, the initiation of the
arbitration shall be deemed to begin the complaint resolution procedure. No arbitration hearing
shall be held on a complaint until any applicable Company complaint resolution procedure has been
completed.

          (d) Rules of Arbitration. All arbitration will be conducted by a single arbitrator
according to the Employment Dispute Arbitration Rules of the AAA. The arbitrator will have
authority to award any remedy or relief that a court of competent jurisdiction could order or grant
including, without limitation, specific performance of any obligation created under

13

 

policy, the awarding of punitive damages, the issuance of any injunction, costs and attorney’s
fees to the extent permitted by law, or the imposition of sanctions for abuse of the arbitration
process. The arbitrator’s award must be rendered in a writing that sets forth the essential
findings and conclusions on which the arbitrator’s award is based.

          (e) Representation and Costs. Each party may be represented in the arbitration by an
attorney or other representative selected by the party. The Company shall be responsible for its
own costs, the AAA filing fee and all other fees, costs and expenses of the arbitrator and AAA for
administering the arbitration. The claimant shall be responsible for his attorney’s or
representative’s fees, if any. However, if any party prevails on a statutory claim which allows
the prevailing party costs and/or attorneys’ fees, the arbitrator may award costs and reasonable
attorneys’ fees as provided by such statute.

          (f) Discovery; Location; Rules of Evidence. Discovery will be allowed to the same
extent afforded under the Federal Rules of Civil Procedure. Arbitration will be held at a location
selected by the Company. AAA rules notwithstanding, the admissibility of evidence offered at the
arbitration shall be determined by the arbitrator who shall be the judge of its materiality and
relevance. Legal rules of evidence will not be controlling, and the standard for admissibility of
evidence will generally be whether it is the type of information that responsible people rely upon
in making important decisions.

          (g) Confidentiality. The existence, content or results of any arbitration may not be
disclosed by a party or arbitrator without the prior written consent of both parties. Witnesses
who are not a party to the arbitration shall be excluded from the hearing except to testify.

14exv10wn

 

Exhibit 10.N

JOHNSON CONTROLS, INC.

38,447,427 Shares

Common Stock

JOHNSON CONTROLS, INC. 2000 STOCK OPTION PLAN

January 1, 2000

(Adjusted to reflect 3-for-1 stock split effective September 14, 2007)

     This document sets forth information relating to participation in the Johnson Controls, Inc.
2000 Stock Option Plan (the “Plan”) and to shares of our common stock that we are offering under
the Plan. Each share of our common stock issued under the Plans will include one right to purchase
our common stock. In this document, unless the context otherwise requires, all references to our
common stock includes the accompanying rights. We are offering participation in the Plan to our
officers and other key employees and those of our subsidiaries.

     This document will be accompanied or preceded by our latest Annual Report to Shareholders. If
you have previously received a copy of our Annual Report to Shareholders but wish to have another
copy, then we will furnish an additional copy without charge upon written or oral request to us.

     Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of the securities offered pursuant to the Plan or determined if this
prospectus is truthful and complete. Any representation to the contrary is a criminal offense.

     You should rely only on the information contained in this document or to which we have
referred you. We have not authorized anyone to provide you with information that is different.
The information in this document may only be accurate on the date of the document. This document
may only be used where it is legal to sell these securities.

     This document may not be used for resales of shares acquired under the Plan.

 

 

THE COMPANY

     We are a global market leader in automotive systems and facility management and control. In
the automotive market, we are a major supplier of seating and interior systems, and batteries. For
nonresidential facilities, we provide building control systems and services, energy management and
integrated facility management. Our principal executive offices are located at 5757 North Green
Bay Avenue, P.O. Box 591, Milwaukee, Wisconsin 53201. Our telephone number is (414) 524-1200.

     1. Establishment. JOHNSON CONTROLS, INC. (the “Company”) hereby establishes a stock option plan
for certain officers and other key employees, as described herein, which shall be known as the
JOHNSON CONTROLS, INC. 2000 STOCK OPTION PLAN (the “Plan”). It is intended that certain of the
stock options issued pursuant to the Plan may constitute incentive stock options within the meaning
of Section 422 of the Internal Revenue Code (“Incentive Stock Options”) and the remainder of the
options issued pursuant to the Plan shall constitute nonqualified options. Incentive Stock Options
and nonqualified stock options are hereinafter jointly referred to as “Options.” The Committee may
also award stock appreciation rights apart from Options issued pursuant to the Plan.

     2. Purpose. The purpose of the Plan is to induce certain officers and other key employees to
remain in the employ of the Company or its subsidiaries and to encourage such employees to secure
or increase on reasonable terms their stock ownership in the Company. The Board of Directors of
the Company (the “Board of Directors”) believes that the Plan will promote continuity of management
and increased incentive and personal interest in the welfare of the Company by those who are
responsible for shaping and carrying out the long-range plans of the Company and securing its
continued growth and financial success.

     3. Effective Date of the Plan. The Plan was adopted by the Board of Directors on November 17,
1999, and, subject to the approval of the Plan by the shareholders of the Company within twelve
months of this date, the effective date of the Plan will be January 1, 2000. Any and all Options
granted prior to shareholder approval shall be subject to such approval.

     4. Stock Subject to the Plan. Subject to adjustment in accordance with the provisions of this
paragraph and paragraph 17, the total number of shares of the common stock of the Company (“Common
Stock”) available for awards during the term of the Plan shall be an amount calculated as follows:
(a) fifteen percent (15%) of the number of shares of Common Stock outstanding upon the effective
date of the Plan minus (b) the number of shares of Common Stock subject to awards made under any
prior stock option plan of the Company (a “Prior Plan”) and outstanding upon the effective date of
the Plan (“Prior Plan Awards”). Shares of Common Stock to be delivered upon exercise of Options or
settlement of stock appreciation rights under the Plan shall be made available from
presently authorized but unissued Common Stock or authorized and issued shares of Common Stock
reacquired and held as treasury shares, or a combination thereof. If any Option or stock
appreciation right shall be canceled, expire or terminate without having been exercised in full, or
to the extent a stock appreciation right is settled in cash, the shares of Common Stock allocable
to the unexercised, canceled, forfeited portion of such Option or stock appreciation right, or
portion of such stock appreciation right which is settled in cash, shall again be available for the
purpose of the Plan. The surrender of

 

 

any Options (and the surrender of any related stock
appreciation rights granted under paragraph 16) in connection with the receipt of stock
appreciation rights as provided in paragraph 16 shall, as to such Options, have the same effect
under this paragraph 4 as the cancellation or termination of such Options without having been
exercised. If any stock appreciation rights are granted under the Plan (including any grant in
connection with the surrender of outstanding Options), as provided in paragraph 16, and shares of
Common Stock may be issuable in connection with such stock appreciation rights, then the grant of
such stock appreciation rights shall be deemed to have the same effect under this paragraph 4 as
the grant of Options; provided, however, if any such stock appreciation rights shall be canceled,
expire or terminate without having been exercised in full, or to the extent a stock appreciation
right is settled in cash, the shares of Common Stock allocable to the unexercised, canceled,
forfeited portion of such stock appreciation right, or portion of such stock appreciation right
which is settled in cash, shall again be available for the purpose of the Plan. If the exercise
price of any Option granted under the Plan is satisfied by tendering shares of Common Stock to the
Company (by either actual delivery or by attestation), only the number of shares of Common Stock
issued net of the shares of Common Stock tendered shall be deemed delivered for purposes of
determining the maximum number of shares of Common Stock available for delivery under the Plan. If
any Participant satisfies the Company’s withholding tax requirements upon the exercise of an Option
by properly electing to have the Company withhold shares of Common Stock, then the shares of Common
Stock so withheld shall again be available for the purpose of the Plan, except that such shares
shall not be available for the granting of Incentive Stock Options. After the effective date of
the Plan, if any event occurs as a result of which shares of Common Stock subject to Prior Plan
Awards would again become available for the purpose of the relevant Prior Plan if the Prior Plan
were still in effect and the Company could grant awards under the Prior Plan, then such shares
shall be available for the purpose of the Plan rather than such Prior Plan (subject to any
applicable limitation on the use of such shares for the granting of Incentive Stock Options) and
thereby increase the shares available under the Plan as determined under the first sentence of this
paragraph.

     5. Administration.

	 	(a)	 	The Plan shall be administered by the Compensation Committee (the “Committee”)
consisting of not less than three members of the Board of Directors appointed from time
to time by the Board of Directors. No member of the Committee shall be, nor at any
time during the preceding one-year period have been, eligible to receive stock, stock
options or stock appreciation rights of the Company or of its subsidiaries pursuant to
the Plan or any other plan of the Company or its subsidiaries, other than a plan for
directors of the Company who are not officers or employees of the Company which
provides for automatic grants without exercise of discretion by any member of the Board of Directors, or by
any officer or employee of the Company.
	 
	 	(b)	 	Subject to the express provisions of the Plan, the Committee shall have
authority to establish such rules and regulations as it deems necessary or advisable
for the proper administration of the Plan, and in its discretion, to determine the
individuals (the “Participants”) to whom, and the time or times at which, Options and
stock appreciation rights shall be granted, the type of Options, the periods of

2

 

	 	 	 	Options or stock appreciation rights, limitations on exercise of Options or stock appreciation
rights, and the number of shares to be subject to each Option or award of stock
appreciation rights. In making such determinations, the Committee may take into
account the nature of the services rendered by the respective employees, their present
and potential contributions to the success of the Company or its subsidiaries, and such
other factors as the Committee, in its discretion, shall deem relevant.
	 
	 	(c)	 	Subject to the express provisions of the Plan, the Committee shall also have
complete authority to interpret the Plan, to prescribe, amend, and rescind rules and
regulations relating to it, to determine the terms and provisions of the respective
Option Agreements (which need not be identical) and to make all other determinations
necessary or advisable for the administration of the Plan. The Committee’s
determinations on the matters referred to in this paragraph 5 shall be conclusive and
binding upon all parties.
	 
	 	(d)	 	Neither the Committee nor any member thereof shall be liable for any act,
omission, interpretation, construction or determination made in connection with the
Plan in good faith, and the members of the Committee shall be entitled to
indemnification and reimbursement by the Company in respect of any claim, loss, damage
or expense (including attorneys fees) arising therefrom to the full extent permitted by
law and under any directors and officers liability insurance that may be in effect from
time to time.
	 
	 	(e)	 	A majority of the Committee shall constitute a quorum, and the acts of a
majority of the members present at any meeting at which a quorum is present, or acts
approved in writing by a majority of the Committee without a meeting, shall be the acts
of the Committee.
	 
	 	(f)	 	The Chief Executive Officer of the Company shall have the same authority as the
Committee with respect to the grant and administration of awards of options and stock
appreciation rights made to (or to be made to) individuals eligible for the Plan,
excluding officers and employees who are subject to the provisions of Section 16 of the
Exchange Act or who are covered by Section 162(m) of the Code at the time in question.

     6. Eligibility. Options and stock appreciation rights may be granted to officers and other key employees of the
Company and of any of its present and future subsidiaries. The maximum number of shares of Common
Stock covered by Options which may be granted to any Participant within any two consecutive
calendar year periods shall not exceed 1.5 million shares in the aggregate. No Option or stock
appreciation right shall be granted to any person who owns, directly or indirectly, shares of stock
possessing more than 10% of the total combined voting power of all classes of stock of the Company.
A director of the Company or of a subsidiary who is not also an employee of the Company or of a
subsidiary will not be eligible to receive any Option or stock appreciation right hereunder.

3

 

     7. Rights of Employees. Nothing in this Plan or in any Option or stock appreciation right shall
interfere with or limit in any way the right of the Company and any of its subsidiaries to
terminate any Participant’s or employee’s employment at any time, nor confer upon any Participant
or employee any right to continue in the employ of the Company and its subsidiaries. No employee
shall have any right to be granted an award under this Plan, even if an award was granted to such
employee at any prior time, or if a similarly-situated employee is or was granted an award under
similar circumstances.

     8. Option Agreements. All Options and stock appreciation rights granted under the Plan shall be
evidenced by written agreements (an “Option Agreement”) in such form or forms as the Committee
shall determine.

     9. Option Price. The per share Option price for Options and the per share grant price for stock
appreciation rights granted under paragraph 16, as determined by the Committee, shall be an amount
not less than 100% of the fair market value of the stock on the date such Options or stock
appreciation rights are granted (or, if the Committee so determines, in the case of any stock
appreciation right granted under paragraph 16 upon the surrender of any outstanding Option, on the
date of grant of such Option). The fair market value of a share of stock on any date shall be the
average of the highest and lowest market prices of sales of the Common Stock on that date, or on
the next preceding trading day if such date was not a trading day as reported on the New York Stock
Exchange or as otherwise determined by the Committee. However, effective January 1, 2007, in
connection with an exercise of options, to the extent the Participant sells any Shares acquired
upon such exercise in a market transaction on the date of exercise, the sale price(s) for any such
Shares shall be the fair market value.

     10. Option Period. The term of each Option and stock appreciation right shall be as determined by
the Committee but in no event shall the term of an Option or stock appreciation right exceed a
period of ten (10) years from the date of its grant. Each Option and stock appreciation right
granted hereunder may granted at any time on or after the effective date of the Plan, and prior to
its termination, provided that no Option or stock appreciation right may be granted later than ten
years after the date this Plan is adopted. The Committee shall determine whether any Option or
stock appreciation right shall become exercisable in cumulative or non-cumulative installments or
in full at any time. An exercisable Stock Option or stock appreciation right, or portion thereof, may
be exercised in whole or in part only with respect to whole shares of Common Stock.

     11. Maximum Value of Incentive Stock Options. The aggregate fair market value (as defined in
paragraph 9) of the Common Stock for which any Incentive Stock Options are exercisable for the
first time by a Participant during any calendar year under the Plan or any other plan of the
Company or any subsidiary shall not exceed $100,000. To the extent the fair market value of the
shares of Common Stock attributable to Incentive Stock Options first exercisable in any calendar
year exceeds $100,000, the excess portion of the Incentive Stock Options shall be treated as
nonqualified options.

     12. Transferability of Option or Stock Appreciation Right. No Option or stock appreciation right
granted hereunder shall be transferable other than options specifically

4

 

designated by the Compensation Committee as such and meeting the following requirements of transfer:

	 	(a)	 	by will or by the laws of descent and distribution; or
	 
	 	(b)	 	in the case of a nonqualified option:

     (i) pursuant to a “Qualified Domestic Relations Order” as defined in Section 414(p)
of the Internal Revenue Code; or

     (ii) to (A) his or her spouse, children or grandchildren (“Immediate Family
Members”), (B) a partnership in which the only partners are the Participant’s
Immediate Family Members, or (C) a trust or trusts established solely for the
benefit of one or more of the Participant’s Immediate Family Members (collectively,
the Permitted Transferees), provided that there may be no consideration for any such
transfer by a Participant.

     Following transfer (if applicable), such Options and stock appreciation rights shall continue
to be subject to the same terms and conditions as were applicable immediately prior to transfer,
provided that such Options and stock appreciation rights may be exercised during the life of the
Participant only by the Participant or, if applicable, by the alternate payee designated under a
Qualified Domestic Relations Order or the Participant’s Permitted Transferees.

     13. Exercise of Option. The Committee shall prescribe the manner in which a Participant may
exercise an Option which is not inconsistent with the provisions of this Plan. However, no Option
shall be exercisable, in whole or in part, for a period of at least six months commencing on the
date of grant, except as provided in paragraph 20 in the event of a Change in Control. An Option
may be exercised, subject to limitations on its exercise contained in the Option Agreement and in
this Plan, in full, at any time, or in part, from time to time, only by (A) written notice of
intent to exercise the Option with respect to a specified number of shares, and (B) by payment in
full to the Company at the time of exercise of the Option, of the option price of the shares being
purchased. Payment of the Option price may be made (i) in cash, (ii) if permitted by the
applicable Option Agreement, by tendering of shares of Common Stock equivalent in fair market value
(as defined in paragraph 9), or (iii) if permitted by the applicable Option Agreement, partly in
cash and partly in shares of Common Stock. Common Stock may be tendered either by actual delivery
of shares of Common Stock or by attestation.

     14. Withholding. If permitted by the applicable Option Agreement, a Participant may be permitted
to satisfy the Company’s withholding tax requirements by electing (i) to have the Company withhold
shares of Common Stock of the Company, or (ii) to deliver to the Company shares of Common Stock of
the Company having a fair market value on the date income is recognized on the exercise of a
nonqualified option equal to the minimum amount required to be withheld. The election shall be
made in writing and according to such rules and in such form as the Committee shall determine.

     Notwithstanding the foregoing, the election and satisfaction of any withholding requirement
through the withholding of Common Stock or the tender of shares of Company Stock may be made only
at such times as are permitted, without incurring liabilities, by

5

 

Rule 16b-3 of the Securities Exchange Act of 1934, as amended, or such other securities laws, rules or regulations as may be
applicable.

     15. Termination of Employment.

	 	(a)	 	In the event a Participant’s employment with the Company or any of its
subsidiaries shall be terminated for any reason, except early or normal retirement,
death or total and permanent disability, a Participant may exercise his or her Options
and stock appreciation rights (to the extent vested and exercisable as of the date of
the Participant’s termination of employment) for a period of thirty (30) days after the
date of the Participant’s termination of employment, unless such Option or stock
appreciation right expires earlier under the terms of the award agreement. Thereafter,
all rights to exercise an Option or stock appreciation right shall terminate.
	 
	 	(b)	 	If the Participant should die while employed by the Company or any subsidiary
prior to the expiration of the term of the Option or stock appreciation right, the
Option or stock appreciation right shall be exercisable immediately to the extent it
would have been exercisable had the Participant remained employed for twelve months
after the date of death and may be exercised by the person to whom it is transferred by
will or by the applicable laws of descent and distribution by giving notice as provided
in paragraph 13, at any time within twelve months after the date of death unless such
Option or stock appreciation right expires earlier under the terms of the Option
Agreement. For purposes of this paragraph, the six-month limitation imposed pursuant
to paragraph 13 shall not be applicable.
	 
	 	(c)	 	In the event of a Participant’s termination of employment with the Company due
to early or normal retirement, or due to total and permanent disability, prior to the
expiration of the term of an Option or stock appreciation right, the Option or stock
appreciation right: (i) shall be exercisable in full without regard to any vesting
requirements; provided that an Option or stock appreciation right of a Participant
who retires shall be exercisable in full only if the Participant retires on or after
the last day of the calendar year following the calendar year in which such Option
or stock appreciation right was granted, unless the Committee determines otherwise,
and (ii) may be exercised by the Participant at any time within thirty-six months
after the date of such early or normal retirement or termination due to total and
permanent disability, as the case may be, unless such Option or stock appreciation
right expires earlier under the terms of the award agreement. Provided, however,
that for certain participants who are officers of the Company or who are selected by
the Compensation Committee of the Board, nonqualified stock options may be exercised
by the Participant for up to ten (10) years after the date of such early or normal
retirement, or for five (5) years after the date of such total and permanent
disability, as the case may be, in the event of termination of employment with the
Company due to early or normal retirement, or due to total and permanent disability,
prior to the expiration of the term of the Option or stock appreciation right,
unless such Option or stock appreciation right expires earlier under the terms of
the Option Agreement. For purposes hereof, a Participant’s employment

6

 

	 	 	 	shall be deemed to have terminated due to (a) early or normal retirement if such Participant
is then eligible to receive immediate early or normal retirement benefits under the
provisions of any of the Company’s or its subsidiaries defined benefit pension
plans; or, in the absence of a defined benefit plan, provided such Participant
retires with ten years of service and is at least 55 years old or retires with five
years of service and is at least 65 years old and (b) total and permanent disability
if he is permanently disabled within the meaning of Section 22(e)(3) of the Internal
Revenue Code, as in effect from time to time.
	 
	 	 	 	For purposes of this Plan: (a) a transfer of an employee from the Company to a 50%
or more owned subsidiary, partnership, joint venture or other affiliate (whether or
not incorporated) or vice versa, or from one subsidiary, partnership, joint venture
or other affiliate to another or (b) a leave of absence duly authorized in writing
by the Company, provided the employee’s right to re-employment is guaranteed either
by statute or by contract, shall not be deemed a termination of employment under the
Plan, notwithstanding the foregoing, from and after a Change of Control, as defined
in paragraph 20, Options and stock appreciation rights shall continue to be
exercisable for three months after a Participant’s termination of employment.

     16. Stock Appreciation Rights. Stock appreciation rights may be granted separate from any Option
granted under the Plan to any Participant. Such stock appreciation rights may be exercised by a
Participant by written notice of intent to exercise the stock appreciation rights delivered to the
Committee, which notice shall state the number of shares of stock in respect of which the stock
appreciation rights are being exercised. Upon such exercise, the Participant shall be entitled to
receive the economic value of such stock appreciation rights determined in the manner described in subparagraph (b) of
this paragraph 16 and in the form prescribed in subparagraph (c) of this paragraph 16.

     Stock appreciation rights shall be subject to terms and conditions not inconsistent with other
provisions of the Plan as shall be determined by the Committee, which shall include the following:

	 	(a)	 	Stock appreciation rights granted in connection with the surrender of an Option
shall be exercisable or transferable at such time or times and only to the extent that
the Option to which they related was exercisable or transferable. The Committee shall
have complete authority to determine the terms and conditions applicable to other stock
appreciation rights, including the periods applicable to such rights, limitations on
exercise and the number of shares of stock in respect to which such stock appreciation
rights are exercisable.
	 
	 	(b)	 	Upon the exercise of stock appreciation rights, a Participant shall be entitled
to receive the economic value thereof, which value shall be equal to the excess of the
fair market value of one share of Common Stock on the date of exercise over the grant
price per share, multiplied by the number of shares in respect of which the stock
appreciation rights shall have been exercised. Stock appreciation rights

7

 

	 	 	 	which have been so exercised shall no longer be exercisable in respect of such number of shares.
	 
	 	(c)	 	The Committee shall have the sole discretion either (i) to determine the form
in which payment of such economic value will be made (i.e., cash, stock, or any
combination thereof) or (ii) to consent to or disapprove the election of the
Participant to receive cash in full or partial payment of such economic value.
	 
	 	(d)	 	The exercise of stock appreciation rights by a Participant pursuant to the Plan
may be made only at such times as are permitted by Rule 16b-3 of the Securities
Exchange Act of 1934, without liabilities, or such other securities laws or rules as
may be applicable.
	 
	 	(e)	 	Stock appreciation rights shall be exercisable only when the fair market value
of the Common Stock to which the stock appreciation rights relate exceeds the grant
price of such stock appreciation rights.

     17. Adjustment Provisions. In the event of any change in the shares of the Common Stock of the
Company by reason of a declaration of a stock dividend (other than a stock dividend declared in
lieu of an ordinary cash dividend), spin-off, merger, consolidation recapitalization, or split-up,
combination or exchange of shares, or otherwise, the aggregate number and class of shares available
under this Plan (including the per Participant limit on awards in Section 6), the number and class
of shares subject to each outstanding Option and stock appreciation right, the option price for
shares subject to each outstanding Option, and the option price or grant price and economic value
of any stock appreciation rights shall be appropriately adjusted by the Committee, whose
determination shall be conclusive. Unless the Committee determines otherwise, any such
adjustment to an award that is exempt from Code Section 409A shall be made in manner that permits
the award to continue to be so exempt, and any adjustment to an award that is subject to Code
Section 409A shall be made in a manner that complies with the provisions thereof. Notwithstanding
the foregoing, in the case of a stock dividend (other than a stock dividend declared in lieu of an
ordinary cash dividend) or split-up (including a reverse stock split), if no action is taken by the
Committee, adjustments contemplated by this subsection that are proportionate shall nevertheless
automatically be made as of the date of such stock dividend or split-up.

     18. Termination and Amendment of Plan. The Plan shall terminate on December 31, 2009, unless
sooner terminated as hereinafter provided. The Board of Directors may at any time terminate the
Plan, or amend the Plan as it shall deem advisable including (without limiting the generality of
the foregoing) any amendments deemed by the Board of Directors to be necessary or advisable to
assure conformity of the Plan and any Incentive Stock Options granted thereunder to the
requirements of Section 422 of the Internal Revenue Code as now or hereafter in effect and to
assure conformity with any requirements of other state and federal laws or regulations now or
hereafter in effect; provided, however, that the Board of Directors may not, without further
approval by the shareholders of the Company, amend paragraph 24 or make any modifications to the
Plan which, by applicable law, require such approval. No termination or amendment of the Plan may,
without the consent of the Participant to whom any Option or stock appreciation rights shall have
been granted, adversely affect the

8

 

rights of such Participant under such Option or stock
appreciation rights. The Board of Directors may also, in its discretion, permit any Option or
stock appreciation right to be exercised prior to the earliest date fixed for exercise thereof
under the Option Agreement. Notwithstanding the foregoing, the Board specifically reserves the
right to amend the provisions of Sections 20 and 21 prior to the effective date of a Change of
Control without the need to obtain the consent of the Participants or any other individual with a
right to an award granted hereunder. Notwithstanding the foregoing, unless determined otherwise by
the Board or Committee, any such amendment shall be made in a manner that will enable an award
intended to be exempt from Code Section 409A to continue to be so exempt, or to enable an award
intended to comply with Code Section 409A to continue to so comply.

     19. Rights of a Shareholder. A Participant shall have no rights as a shareholder with respect to
shares covered by his or her Option until the date of issuance of the stock to the participant and
only after such shares are fully paid or with respect to stock appreciation rights. No adjustment
will be made for dividends or other rights for which the record date is prior to the date such
stock is issued.

     20. Change of Control. Notwithstanding the foregoing, upon Change of Control, all previously
granted Options and stock appreciation rights shall immediately become exercisable to the full
extent of the original grant. For purposes of this Plan, a “Change of Control” means any of the
following events: (i) the acquisition, other than from the Company, by any individual, entity or
group (within the meaning of Section 13(d) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended from time to time) (the “Exchange Act”) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either (A) the then outstanding shares of
common stock of the Company (the “Outstanding Company Common Stock”) or (B) the combined voting
power of the then outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Company Voting Securities”), provided, however, that any acquisition by
(x) the Company of any of its subsidiaries, or any employee benefit plan (or related trust)
sponsored or maintained by the Company or any of its subsidiaries or (y) any corporation with
respect to which, following such acquisition, more than 60% of respectively, the then outstanding
shares of common stock of such corporation and the combined voting power of the then outstanding
voting securities of such corporation entitled to vote generally in the election of directors is
then beneficially owned, directly or indirectly, by all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and
Company Voting Securities immediately prior to such acquisition in substantially the same
proportion as their ownership, immediately prior to such acquisition of the Outstanding Company
Common Stock and Company Voting Securities, as the case may be, shall not constitute a change in
control of the Company; or (ii) individuals who, as of September 28, 1994, constitute the Board of
Directors of the Company (the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board, provided that any individual becoming a director subsequent to September 28,
1994, whose election or nomination for election by the Company’s shareholders was approved by a
vote of at least a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of the Directors of the Company (as such terms
are used in Rule 14a-11 of Regulation 14A promulgated under

9

 

the Exchange Act); or (iii) approval by
the shareholders of the Company of consummation of a reorganization, merger or consolidation (a
“Business Combination”), in each case, with respect to which all or substantially all of the of the
individuals and entities who were the respective beneficial owners of the Outstanding Company
Common Stock and Company Voting Securities immediately prior to such Business Combination do not,
following such Business Combination, beneficially own, directly or indirectly, more than 60% of,
respectively, the then outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of directors, as the case
may be, of the corporations resulting from such Business Combination in substantially the same
proportion as their ownership immediately prior to such Business Combination or the Outstanding
Company Common Stock and Company Voting Securities, as the case may be; or (iv) (A) a complete
liquidation or dissolution of the company or a (B) sale or other disposition of all or
substantially all of the assets of the Company other than to a corporation with respect to which,
following such sale or disposition, more than 60% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors is then owned beneficially, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Company Common Stock and Company Voting Securities immediately
prior to such sale or disposition in substantially the same proportion as their ownership of the
Outstanding Company Common Stock and Company Voting Securities, as the case may be, immediately
prior to such sale or disposition.

     21. Termination of Awards. Notwithstanding the foregoing, upon a Change in Control, the Committee may in its discretion,
commencing at the time of a Change in Control and continuing for a period of sixty days thereafter,
cancel each outstanding Option or stock appreciation right in exchange for a cash payment to the
holder thereof in an amount equal to the number of Options or stock appreciation rights that have
not been exercised multiplied by the excess of the fair market value per Share on the date of the
Change in Control (or, if the Change in Control is the result of a transaction or a series of
transactions described in paragraphs (i) or (ii) of the definition of Change in Control and the
Option or stock appreciation right is cancelled on the date of the Change in Control, the highest
price per Share paid in such transaction or series of transactions on the date of the Change in
Control) over the exercise price of the Option or the grant price of the stock appreciation right,
as the case may be.

     22. Governing Law and Arbitration. The Plan, and all awards hereunder, and all determinations made
and actions taken pursuant to the Plan, shall be governed by the internal laws of the State of
Wisconsin (without reference to conflict of law principles thereof) and construed in accordance
therewith, to the extent not otherwise governed by the laws of the United States or as otherwise
provided hereinafter. Notwithstanding anything to the contrary herein, if any individual brings a
claim that relates to benefits under this Plan, regardless of the basis of the claim (including but
not limited to wrongful discharge or Title VII discrimination), such claim shall be settled by
final binding arbitration in accordance with the rules of the American Arbitration Association
(“AAA”) and the following provisions, and judgment upon the award rendered by the arbitrator may be
entered in any court having jurisdiction thereof.

	 	(a)	 	Initiation of Action. Arbitration must be initiated by serving or
mailing a written notice of the complaint to the other party. Normally, such written
notice should

10

 

	 	 	 	be provided to the other party within one year (365 days) after the day
the complaining party first knew or should have known of the events giving rise to the
complaint. However, this time frame may be extended if the applicable statute of
limitation provides for a longer period of time. If the complaint is not properly
submitted within the appropriate time frame, all rights and claims that the complaining
party has or may have against the other party shall be waived and void. Any notice
sent to the Company shall be delivered to:

Office of General Counsel

Johnson Controls, Inc.

5757 North Green Bay Avenue

P.O. Box 591

Milwaukee, WI 53201-0591

	 	 	 	The notice must identify and describe the nature of all complaints asserted and the
facts upon which such complaints are based. Notice will be deemed given according
to the date of any postmark or the date of time of any personal delivery.
	 
	 	(b)	 	Compliance with Personnel Policies. Before proceeding to arbitration
on a complaint, the claimant must initiate and participate in any complaint resolution
procedure identified in the Company’s or subsidiary’s personnel policies. If the
claimant has not initiated the complaint resolution procedure before initiating
arbitration on a complaint, the initiation of the arbitration shall be deemed to
begin the complaint resolution procedure. No arbitration hearing shall be held on a
complaint until any applicable Company or subsidiary complaint resolution procedure
has been completed.
	 
	 	(c)	 	Rules of Arbitration. All arbitration will be conducted by a single
arbitrator according to the Employment Dispute Arbitration Rules of the AAA. The
arbitrator will have authority to award any remedy or relief that a court of competent
jurisdiction could order or grant including, without limitation, specific performance
of any obligation created under the award or policy, the awarding of punitive damages,
the issuance of any injunction, costs and attorney’s fees to the extent permitted by
law, or the imposition of sanctions for abuse of the arbitration process. The
arbitrator’s award must be rendered in a writing that sets forth the essential findings
and conclusions on which the arbitrator’s award is based.
	 
	 	(d)	 	Representation and Costs. Each party may be represented in the
arbitration by an attorney or other representative selected by the party. The Company
or subsidiary shall be responsible for its own costs, the AAA filing fee and all other
fees, costs and expenses of the arbitrator and AAA for administering the arbitration.
The claimant shall be responsible for his attorney’s or representative’s fees, if any.
However, if any party prevails on a statutory claim which allows the prevailing party
costs and/or attorneys’ fees, the arbitrator may award costs and reasonable attorneys’
fees as provided by such statute.

11

 

	 	(e)	 	Discovery; Location; Rules of Evidence. Discovery will be allowed to
the same extent afforded under the Federal Rules of Civil Procedure. Arbitration will
be held at a location selected by the Company. AAA rules notwithstanding, the
admissibility of evidence offered at the arbitration shall be determined by the
arbitrator who shall be the judge of its materiality and relevance. Legal rules of
evidence will not be controlling, and the standard for admissibility of evidence will
generally be whether it is the type of information that responsible people rely upon in
making important decisions.
	 
	 	(f)	 	Confidentiality. The existence, content or results of any arbitration
may not be disclosed by a party or arbitrator without the prior written consent of both
parties. Witnesses who are not a party to the arbitration shall be excluded from the
hearing except to testify.

     23. Unfunded Plan. This Plan shall be unfunded. No person shall have any rights greater than
those of a general creditor of the Company.

     24. Repricing. Except for adjustments pursuant to paragraph 17, neither the per share Option price for any
outstanding Option granted under the Plan nor the per share grant price for stock appreciation
rights granted under the Plan may be decreased after the date of grant nor may an outstanding
Option or stock appreciation right granted under the Plan or a Prior Plan be surrendered to the
Company as consideration for the grant of a new Option or stock appreciation right with a lower
exercise or grant price.

     25. Termination for Cause or Inimical Conduct. Notwithstanding any provisions of the Plan or an
award agreement to the contrary, a Participant’s Option or stock appreciation right shall be
immediately cancelled and forfeited, regardless of vesting, and any pending exercises shall be
cancelled, on the date that: (a) the Company or subsidiary terminates the Participant’s employment
for Cause, (b) the date that the Committee determines that the Participant’s employment could have
been terminated for Cause if the Company or subsidiary had all relevant facts in its possession as
of the date of the Participant’s termination, or (c) the Committee determines the Participant has
engaged in Inimical Conduct. The Committee may suspend all exercises or delivery of cash or
shares (without liability for interest thereon) pending its determination of whether the
Participant has been or should have been terminated for Cause or has engaged in Inimical Conduct.
For purposes hereof:

	 	(a)	 	“Cause” means: (1) if the Participant is subject to an employment agreement
that contains a definition of “cause,” such definition, or (2) otherwise, any of the
following as determined by the Committee: (a) violation of the provisions of any
employment agreement, non-competition agreement, confidentiality agreement, or similar
agreement with the Company or subsidiary, or the Company’s or subsidiary’s code of
ethics, as then in effect, (b) conduct rising to the level of gross negligence or
willful misconduct in the course of employment with the Company or subsidiary, (c)
commission of an act of dishonesty or disloyalty involving the Company or subsidiary,
(d) violation of any federal, state or local law in connection with the Participant’s
employment, or (e) breach of any fiduciary duty to the Company or a subsidiary.

12

 

	 	(b)	 	“Inimical Conduct” means any act or omission that is inimical to the best of
interests of the Company or any subsidiary, as determined by the Committee in its sole
discretion, including but not limited to: (1) violation of any employment, noncompete,
confidentiality or other agreement in effect with the Company or any subsidiary, (2)
taking any steps or doing anything which would damage or negatively reflect on the
reputation of the Company or a subsidiary, or (3) failure to comply with applicable
laws relating to trade secrets, confidential information or unfair competition.

     26. Offset. The Company shall have the right to offset, from any amount payable or stock
deliverable hereunder, any amount that the Participant owes to the Company or any subsidiary
without the consent of the Participant or any individual with a right to the Participant’s award.

     27. Severability. In the event any provision of the Plan or any award agreement is held illegal or
invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the
Plan or such award agreement, and the Plan or award agreement shall be construed and enforced as if
the said illegal or invalid provision had not been included.

     28. Code Section 409A. The provisions of Code Section 409A are incorporated herein by reference to
the extent necessary for any award that is subject to Code Section 409A to comply therewith.
Notwithstanding any provisions of the Plan, the Company does not guarantee to any Participant or
any other person with an interest in an award that any award intended to be exempt from Code
Section 409A shall be so exempt, nor that any award intended to comply with Code Section 409A shall
so comply, nor will the Company or any affiliate indemnify, defend or hold harmless any individual
with respect to the tax consequences of any such failure.

13

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