Document:

exv10w3

 

Exhibit 10.3

JOHNSON CONTROLS, INC.

2000 STOCK OPTION PLAN

(As Amended through December 31, 2005)

     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 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.

     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 500,000 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.

     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

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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.

     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 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.

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	 	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 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 fiscal 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

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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 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 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.

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     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, 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.

     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 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.

     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 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

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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 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

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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.
	 
	 	(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

Page 8

 

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.

	 	(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.

Page 9<PAGE>
                                                                     EXHIBIT 4.1

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED
IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF SUCH DEPOSITARY OR BY A
NOMINEE OF SUCH DEPOSITARY TO SUCH DEPOSITARY OR ANOTHER NOMINEE OF SUCH
DEPOSITARY OR BY SUCH DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR OF SUCH
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR.

Unless this certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange or payment, and any certificate
issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

                                                                Principal Amount
R25
                                     HCA INC.                       $500,000,000

                              6.500% NOTE DUE 2016

                                   GLOBAL NOTE

                                                               CUSIP 404119 AR 0

         HCA Inc. (f/k/a HCA -- The Healthcare Company), a corporation duly
organized and existing under the laws of the State of Delaware (herein called
the "Company," which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to Cede &
Co., as the nominee of DTC, or registered assigns, the principal amount of Five
Hundred Million and No/100s Dollars ($500,000,000), on February 15, 2016 (the
"Maturity Date") and to pay interest (computed on the basis of a 360-day year of
twelve 30-day months) on February 15 and August 15 in each year (each, an
"Interest Payment Date"), beginning on August 15, 2006, and at the Maturity Date
specified above on said principal amount, at the rate of 6.500% per annum, from
February 8, 2006 until payment of said principal amount has been made or duly
provided for. The interest so payable on any Interest Payment Date (other than
at maturity) will be paid to the Person in whose name this Global Note is
registered at the close of business on the first day of the month in which such
interest payment is due (a "Regular Record Date"), unless the Company shall
default in the payment of interest due on any such Interest Payment Date, in
which case such defaulted interest shall be paid to the

                                       1
<PAGE>

Person in whose name this Global Note is registered at the close of business on
a Special Record Date for the payment of such defaulted interest established by
notice to the registered holders of the Notes (as hereinafter defined) not less
than ten days preceding such Special Record Date. In any case where the date for
any payment on the Notes is not a Business Day, such payment shall be made on
the next succeeding Business Day. A Business Day is any day that is not a
Saturday or Sunday and that, in The City of New York, New York, is not a day on
which banking institutions are generally authorized or required by law or
executive order to close.

         Both principal of and interest on this Global Note are payable in
immediately available funds in any coin or currency of the United States of
America, which at the time of payment is legal tender for the payment of public
and private debts. Payments of principal and interest will be made in The City
of New York, New York, at the Corporate Trust Office of The Bank of New York, or
at such other office or agency of the Company as the Company shall designate
pursuant to the Indenture referred to elsewhere herein.

         This Global Note is a duly authorized issue of debentures, notes, bonds
or other evidences of indebtedness of the Company (the "Securities"), of the
series hereinafter specified, issued or to be issued under an Indenture dated as
of December 16, 1993, as supplemented, as may be amended by indentures
supplemental thereto (the "Indenture"), duly executed and delivered by the
Company to The Bank of New York, the successor to Bank One Trust Company, N.A.,
who was in turn the successor to The First National Bank of Chicago, as trustee
(the "Trustee"), to which Indenture reference is hereby made for a description
of the respective rights and duties thereunder of the Trustee, the Company and
the Holders of the Securities. The Securities may be issued in one or more
series, which different series may be issued in various aggregate principal
amounts, may mature at different times, may bear interest at different rates,
may have different conversion prices (if any), may be subject to different
redemption provisions, may be subject to different sinking, purchase or
analogous funds, may be subject to different covenants and Events of Default and
may otherwise vary as in the Indenture provided. This Global Note, Certificate
R25, along with Global Note, Certificate R26, together, represent a Global
Security representing the entire principal amount of a series of Securities
designated "6.500% Notes due 2016" (the "Notes") issued under the Indenture.
Unless otherwise provided herein, all terms used in this Global Note, which are
defined in the Indenture, shall have the meanings assigned to them in the
Indenture.

         The Notes do not have a sinking fund.

         The Notes may be redeemed in whole or in part, at the option of the
Company, at any time and from time to time prior to maturity. The redemption
price shall equal the greater of (i) 100% of the principal amount of the Notes
or (ii) the sum of the present values of the remaining scheduled payments of
principal and interest on the Notes to be redeemed (exclusive of interest
accrued to the date of redemption) discounted to the date of redemption on a
semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at
the then current Treasury Rate (as defined below), plus 30 basis points. In such
case, the Company will pay accrued and unpaid interest on the principal amount
being redeemed to the date of redemption.

         "Treasury Rate" means, with respect to any redemption date, the rate
per year equal to: (1) the yield, under the heading which represents the average
for the immediately preceding

                                       2

<PAGE>

week, appearing in the most recently published statistical release designated
"H.15(519)" or any successor publication which is published weekly by the Board
of Governors of the Federal Reserve System and which establishes yields on
actively traded United States Treasury securities adjusted to constant maturity
under the caption "Treasury Constant Maturities," for the maturity corresponding
to the Comparable Treasury Issue; provided that, if no maturity is within three
months before or after the Remaining Life of the Notes to be redeemed, yields
for the two published maturities most closely corresponding to the Comparable
Treasury Issue shall be determined and the Treasury Rate shall be interpolated
or extrapolated from those yields on a straight line basis, rounding to the
nearest month; or (2) if such release (or any successor release) is not
published during the week preceding the calculation date or does not contain
such yields, the rate per year equal to the semiannual equivalent yield to
maturity of the Comparable Treasury Issue, calculated using a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such redemption date. The Treasury
Rate shall be calculated on the third business day preceding the redemption
date.

         "Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker and having a maturity comparable to
the remaining term of the Notes to be redeemed that would be utilized, at the
time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of the Notes.

         "Comparable Treasury Price" means, with respect to any redemption
date, (a) the average of the Reference Treasury Dealer Quotations for the
redemption date, after excluding the highest and lowest Reference Treasury
Dealer Quotations, or (b) if the Trustee obtains fewer than four Reference
Treasury Dealer Quotations, the average of all the quotations.

         "Independent Investment Banker" means one of the Reference Treasury
Dealers appointed by the Trustee after consultation with the Company.

         "Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by the Reference Treasury Dealer at 5:00 p.m. on the
third business day preceding the redemption date.

         "Reference Treasury Dealer" means each of Citigroup Capital Markets
Inc. and Banc of America Securities LLC and their respective successors;
provided however, that if any of the foregoing shall cease to be a primary U.S.
Government securities dealer in New York City (a "Primary Treasury Dealer"), the
Company shall substitute another Primary Treasury Dealer.

         "Remaining Life" means the maturity of a United States Treasury
security selected by an Independent Investment Banker that is comparable to the
remaining term of the Notes.

         The Company will mail notice of any redemption between 30 and 60 days
preceding the redemption date to each Holder of the Notes to be redeemed.

                                       3
<PAGE>

         Unless the Company defaults in payment of the redemption price, on and
after the redemption date, interest will cease to accrue on the Notes or
portions called for redemption.

         In case an Event of Default with respect to the Notes shall have
occurred and be continuing, the principal hereof may be declared, and upon such
declaration shall become, immediately due and payable, in the manner, with the
effect and subject to the conditions provided in the Indenture. The Indenture
provides that such declaration may in certain events be waived by the Holders of
a majority in principal amount of the Notes then Outstanding.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
effected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series to be affected. It is also provided in the
Indenture that, prior to any declaration accelerating the maturity of the Notes
as a series, the Holders of a majority in aggregate principal amount of the
Securities of such series at the time Outstanding may on behalf of the Holders
of all of the Securities of such series waive any past default with respect to
the Securities of such series under the Indenture and its consequences, except a
default in the payment of the principal of, or interest on, any of the
Securities of such series.

         No reference herein to the Indenture and no provision of this Global
Note or of the Indenture (including the Company's right to defease and discharge
the Notes pursuant to Article Four and Article Fourteen of the Indenture) shall
alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of, and interest on, this Global Note at the
place, at the respective times, at the rate and in the coin or currency herein
prescribed.

         This Global Note shall be exchangeable for Securities registered in the
names of Persons other than the Depositary or its nominee only if (i) the
Depositary notifies the Company that it is unwilling or unable to continue as
the Depositary or if at any time the Depositary ceases to be registered or in
good standing under the United States Securities Exchange Act of 1934, as
amended, and the Company fails to appoint a successor Depositary within 90 days
after the Company receives such notice or becomes aware of such event or (ii)
the Company executes and delivers to the Trustee a Company Order that this
Global Note shall be so exchangeable. To the extent that this Global Note is
exchangeable pursuant to the preceding sentence, it shall be exchangeable for
Notes registered in such names as the Depositary shall direct.

         Except as provided in the immediately preceding paragraph, this Global
Note may not be transferred except as a whole by the Depositary to a nominee of
such Depositary or by a nominee of such Depositary to such Depositary or another
nominee of such Depositary or by such Depositary or any such nominee to a
successor of such Depositary or a nominee of such successor.

         Prior to due presentment for registration of transfer of this Global
Note, the Company, the Trustee and any agent of the Company or the Trustee may
deem and treat the Holder hereof as the absolute owner of this Global Note
(whether or not this Global Note shall be overdue and notwithstanding any
notation of ownership or other writing hereon), for the purpose of receiving

                                       4
<PAGE>

payment hereof or on account hereof (except as otherwise provided in the
Indenture), as herein provided, and for all other purposes, and neither the
Company nor the Trustee nor any Paying Agent nor any Security Registrar shall be
affected by any notice to the contrary. All payments made to or upon the order
of such Holder shall, to the extent of the sum or sums paid, effectually satisfy
and discharge liability for moneys payable on this Global Note.

         None of the Company, the Trustee, any Paying Agent or the Security
Registrar will have any responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial ownership
interests of this Global Note or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

         No recourse for the payment of the principal of, or interest on, this
Global Note, or for any claims based hereon or otherwise in respect hereof, and
no recourse under or upon any obligation, covenant or agreement of the Company
in the Indenture or any indenture supplemental thereto or in any Note or because
of the creation of any indebtedness represented thereby, shall be had against
any incorporator, stockholder, officer or director, as such, past, present or
future, of the Company, whether by virtue of any assessment or penalty or
otherwise, all such liability being, by the acceptance hereof and as part of the
consideration for the issue hereof, expressly waived and released.

         Except as otherwise expressly provided in this Global Note, this Global
Note shall in all respects be entitled to all benefits, and subject to the same
terms and conditions, as definitive registered securities authenticated and
delivered under the Indenture.

         The Indenture and this Global Note shall be governed by and construed
in accordance with the laws of the State of New York.

         This Global Note shall not be valid or become obligatory for any
purpose until the certificate of authentication hereon shall have been signed by
the Trustee under the Indenture referred to on the reverse hereof.

                                       5

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated as of February 8, 2006           HCA INC.

                                       By:  /s/ David G. Anderson
                                          --------------------------------------
                                       Name:  David G. Anderson
                                       Title: Senior Vice President--Finance and
                                              Treasurer

                                       Attest:  /s/ John M. Franck II
                                              ----------------------------------
                                       Name:  John M. Franck II
                                       Title: Vice President-Legal and Corporate
                                              Secretary

TRUSTEE'S CERTIFICATE
OF AUTHENTICATION

This is one of the series
of Securities issued under
the within-mentioned Indenture.

THE BANK OF NEW YORK
as Trustee

By:  /s/ Robert A. Massimillo
   -----------------------------------

Title:  Vice President
      --------------------------------

                                       6

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