Document:

exv10waa

 

EX-10.AA

JOHNSON CONTROLS, INC.

COMPENSATION SUMMARY FOR NON-EMPLOYEE DIRECTORS

          Compensation for non-employee members of the Board of Directors (the “Board”) of Johnson
Controls, Inc. (the “Company”), effective October 1, 2006, consists of the payment for the
Company’s fiscal year of:

          (i) a retainer at the annual rate of $200,000 to each non-employee director in the form of
$100,000 in cash and $100,000 in common stock of the Company (the “Retainer”) and

          (ii) a Committee chair fee at the annual rate of $25,000 in cash to each non-employee chair
and successor chair for the Audit, Corporate Governance, Nominating and Compensation Committees of
the Board (the “Committee Chair Fee”).

          Payment of Common Stock Portion of the Retainer. The Company will pay the common
stock portion of the Retainer on the date of the annual shareholders meeting to each director then
in office, subject to the following:

	•	 	If a director is retiring from the Board as of the date of such annual shareholders meeting,
then
the director will be entitled to receive common stock with an aggregate value equal to (x)
the
number of days that have elapsed from October 1 of the fiscal year in question to the date
of the
annual shareholders meeting divided by (y) 365, multiplied by $100,000;
	 
	•	 	If a director is newly elected at the annual shareholders meeting, or was appointed as a
director on
or after the October 1 of the fiscal year in question, then the director will be entitled to
receive
common stock with an aggregate value equal to (x) the number of days in the period from the
effective date of the director’s appointment or election to the Board through September 30
of the
fiscal year in question divided by (y) 365, multiplied by $100,000.

          If a director is newly appointed or elected to the Board after the annual shareholders meeting
in the fiscal year in question, then the director will be entitled to receive upon the effective
date of his or her appointment or election common stock with an aggregate value equal to (x) the
number of days in the period from the effective date of the director’s appointment or election
through September 30 of the fiscal year in question divided by (y) 365, multiplied by $100,000.

          If a director retires from the Board either on October 1 or after October 1 of the fiscal
year in question but prior to the annual shareholders meeting in such fiscal year, then the
director will be entitled to receive upon the effective date of his or her date of retirement
common stock with an aggregate value of (x) the number of days
that have elapsed from October 1 of
the fiscal year in question to the date of the director’s retirement divided by (y) 365,
multiplied by $100,000.

          Payment of the Cash Portion of the Retainer and Committee Chair Fee. The Company will
pay the cash portion of the Retainer and the Committee Chair Fee in the form of a quarterly
payment ($25,000 per quarter for the cash portion of the Retainer and $6,250 per quarter for the
Committee Chair Fee) in advance on the first business day of each quarter to each director then in
office, except that the Company will make the first payment on November 15, 2006. If a director is
either elected or appointed to the Board or is appointed as a Committee Chair (or successor to a
Committee Chair) at any time during the fiscal year after the first business day of a quarter,
then such director will receive upon the effective date of such election or appointment, for the
quarter in which such election or appointment is effective, a

 

 

prorated amount of the cash portion of the Retainer and/or any Committee Chair Fee with
such amount to be determined in the manner set forth below:

	•	 	Cash portion of Retainer: The director shall receive a cash amount equal to (x) the
number of
days from the effective date of the appointment or election to the first day of the next
quarter
divided by (y) 90, multiplied by $25,000; and
	 
	•	 	Committee Chair Fee: The director shall receive a cash amount equal to (x) the number
of days
from the effective date of the appointment or election to the first day of the next quarter
divided
by (y) 90, multiplied by $6,250.

          The Company will not pay any fees for attendance at meetings of the Board or any committee.

          Additionally, the Company will grant to all new non-employee members of the Board 800 shares
of common stock of the Company upon election or appointment to the Board.

          All shares of stock to be issued to directors as contemplated above will be issued pursuant
to the 2003 Director Stock Plan.

          Non-employee directors are permitted to defer all or any part of their Retainer and Committee
Chair Fees under the Johnson Controls, Inc. Deferred Compensation Plan for Certain Directors.

          The Company will also reimburse non-employee directors for any expenses related to their
service on the Board.

2exv10wbb

 

Exhibit 10.BB

RESTRICTED STOCK AGREEMENT

	 	 	 	 	 
	GRANTED TO	 	NUMBER OF SHARES
	 	 	 	 	 
	Employee Name	 	###
	 	 	 	 	 
	GRANT DATE
	 	STOCK PRICE
	 	RESTRICTION PERIOD ENDS ON:
	 	 	 	 	 
	dd/mm/yyyy
	 	Closing Price on Grant Date
	 	### Shares – dd/mm/yyyy
	 
	 	 	 	### Shares – dd/mm/yyyy

JOHNSON CONTROLS, INC.

RESTRICTED STOCK PLAN

This certifies that on January 3, 2006, Johnson Controls, Inc., shall grant a Restricted
Stock Award as indicated above, upon the terms and conditions in this Agreement and the terms of
the Restricted Stock Plan dated October 1, 2001, and amended January 28, 2004, which terms the
Participant accepts.

Johnson Controls, Inc., a Wisconsin corporation, has its principal office in Milwaukee, Wisconsin,
(the “Company”). The Restricted Stock Plan (the “Plan”) was adopted October 1, 2001, to allow
Restricted Shares or Restricted Share Units of the Company’s common stock (“Shares”) to be granted
to certain key employees of the Company or any Subsidiary, as defined in Section 425(f) of the
Internal Revenue Code of 1986, as amended (“Subsidiary”).

The individual named in this agreement (the “Participant”) is a key employee of the Company or a
Subsidiary, and the Company desires the Participant to remain in such employ by providing the
Participant with a means to increase his/her proprietary interest in the Company’s success. The
Plan and this Agreement shall be administered by the Compensation Committee of the Board of
Directors (the “Committee”). If at any time the Committee shall not be in existence, the Board
shall administer the Plan and this Agreement and each reference to the Committee herein shall be
deemed to include the Board.

 

 

The parties mutually agree as follows:

	1.	 	Grant of Award. Subject to the terms and conditions of the Plan, a copy of which
has been delivered to the Participant and made a part hereof, and this Agreement, the
Company grants to the Participant an award of Restricted Shares on the date and with
respect to the number of Shares specified above. The Participant may elect, prior to or
within thirty (30) days after the grant date, to convert the Award, in whole or in part,
to Restricted Share Units. If the Participant fails to make an election, the Award shall
remain in the form of Restricted Shares. Any capitalized terms not defined in this
Agreement will have the meanings provided in the Plan.
	 
	2.	 	Restricted Shares. If the Award is in the form of Restricted Shares, the
Restricted shares are subject to the following provisions:
	 
	 	 	Restriction Period. The Company will hold the Restricted Shares in escrow for the
Restriction Period. During this period, the Participant may not sell, transfer, pledge,
assign or otherwise use these Restricted Shares, and the Restricted Shares shall be subject
to forfeiture as provided in Section 4.
	 
	 	 	Restricted Shares will be held in a book entry share position while in escrow, subject to
the transfer restrictions and risk of forfeiture.

	 	a)	 	Removal of Restrictions. Restricted Shares that have not been forfeited
shall become available to the Participant after the last day of the Restriction Period.
Once the Shares are released, the restrictions shall be removed from the Participant’s
book entry share position.
	 
	 	b)	 	Voting Rights. During the Restriction Period, the Participant may exercise
full voting rights with respect to the Restricted Shares.
	 
	 	c)	 	Dividends and Other Distributions. Any dividends or other distributions
paid or delivered with respect to Restricted Shares will be subject to the same terms
and conditions (including risk of forfeiture) as the Restricted Shares to which they
relate. All dividends or other distributions paid or delivered with respect to
Restricted Shares during the Restriction Period (other than dividends or other
distributions payable in Shares) shall be allocated to a Share Unit account under the
Deferred Compensation Plan. Dividends or distributions payable in shares will be held
in a book entry share position as Restricted Shares.
	 
	 	d)	 	Payment of Dividends. The value of the Participant’s Share Unit account as
to which the Restriction Period has lapsed shall be paid to the Participant (or his
beneficiary).

	3.	 	Restricted Share Units. If the Participant elects to convert all or part of this
Award to Restricted Share Units, the Restricted Share Units are subject to the following
terms:

	 	a)	 	Establishment of Account. The Company shall establish a bookkeeping
account under the Deferred Compensation Plan to which shall be credited the number of
Restricted Share Units elected. During the Restriction Period, the Restricted Share
Unit account will be subject to a risk of forfeiture as provided in Section 4.
	 
	 	b)	 	Alienation of Account. The Participant (or beneficiary) shall not have any
right to assign, transfer, pledge, encumber or otherwise use the Restricted Share Unit
account (including after the Restriction Period has lapsed).

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	 	c)	 	Dividends and Other Distributions. The Participant’s Restricted Share Unit
account shall be credited for any dividends or other distributions delivered on Shares
equivalent to the number of Restricted Share Units credited to such account, whether in
the form of cash or in property, in accordance with the terms of the Deferred
Compensation Plan. Such credit shall be subject to the same terms and conditions
(including risk of forfeiture) as the Restricted Share Units to which they relate.
	 
	 	d)	 	Payment of Account. The value of the Participant’s Share Unit account as
to which the Restriction Period has lapsed shall be paid to the Participant (or his
beneficiary) in accordance with the terms of the Deferred Compensation Plan.

	4.	 	Termination of Employment – Risk of Forfeiture.

	 	a)	 	Retirement. If the Participant terminates employment from the Company and
its Subsidiaries due to Retirement, any remaining Restriction Period shall continue as
if the Participant continued in active employment. If the Participant engages in
Inimical Conduct after his Retirement, as determined by the Committee, any Restricted
Shares and/or Restricted Share Units still subject to a Restriction Period shall
automatically be forfeited as of the date of the Committee’s determination.
	 
	 	b)	 	Death or Disability. If the Participant’s employment from the Company and
its Subsidiaries terminates because of death or Total and Permanent Disability at a
time when the Participant could not have been terminated for Cause, or if the
Participant dies after Retirement while this Award is still subject to the Restriction
Period, any remaining Restriction Period shall automatically lapse as of the date of
such termination of employment or death, as applicable.
	 
	 	c)	 	Other Termination. If the Participant’s employment terminates for any
reason not described above, then any Restricted Shares and/or Restricted Share Units
(and all deferred dividends paid or credited thereon) still subject to the Restriction
Period as of the date of such termination shall automatically be forfeited and returned
to the Company. In the event of the Participant’s involuntary termination of
employment by the Company or a Subsidiary for other than Cause, the Committee may waive
the automatic forfeiture of any or all such Shares or Share Units (and all deferred
dividends paid or credited thereon) and may add such new restrictions to such
Restricted Shares or Restricted Share Units as it deems appropriate. The Company may
suspend payment or delivery of Shares (without liability for interest thereon) pending
the Committee’s determination of whether the Participant was or should have been
terminated for Cause or whether the Participant has engaged in Inimical Conduct.

	5.	 	Amendment of Agreement. The Committee, subject to the provisions of the Restricted
Stock Plan, may amend this award agreement.
	 
	6.	 	Withholding. The Participant agrees to remit to the Company any foreign, Federal,
state and/or local taxes (including the Participant’s FICA obligation) required by law to be
withheld with respect to the issuance of Shares or the vesting and/or distribution of the
Participant’s Share Unit account. The
Company can withhold Shares no longer restricted, or can withhold from other cash or property
payable to the Participant, in the amount needed to satisfy any withholding obligations.
	 
	 	 	The Participant may elect to tender to the Company previously acquired Shares to satisfy the
minimum tax withholding obligations. The value of the Shares to be tendered is to be based on
the Fair Market Value of the Shares on the date that the amount of tax to be withheld is
determined.

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	7.	 	Securities Compliance. The Company may place a legend or legends upon the certificates
for Shares issued under the Plan and may issue “stop transfer” instructions to its transfer
agent in respect of such Shares as it determines to be necessary or appropriate to (a) prevent
a violation of, or to obtain an exemption from, the registration requirements of the
Securities Act, applicable state securities laws or other legal requirements, or (b) implement
the provisions of the Plan or any agreement between the Company and the Participant with
respect to such Shares.
	 
	8.	 	Successors. All obligations of the Company under this Agreement shall be binding on
any successor to the Company. The terms of this Agreement and the Plan shall be binding upon
and inure to the benefit of the Participants, heirs, executors, administrators or legal
representatives.
	 
	9.	 	Legal Compliance. The granting of this Award and the issuance of Shares under this
Agreement shall be subject to all applicable laws, rules, and regulations and to such
approvals by any governmental agencies or national securities exchanges as may be required.
	 
	10.	 	Governing Law; Arbitration. This Agreement and the rights and obligations hereunder
shall be governed by and construed in accordance with the internal laws of the State of
Wisconsin.

Arbitration will be conducted per the provisions in the Restricted Stock Plan.

This Agreement, and any documents expressly incorporated herein, contains all of the
provisions applicable to the Restricted Stock Award. No other statements, documents or
practices may modify, waive or alter such provisions unless expressly set forth in writing,
signed by an authorized officer of the Company and delivered to the Participant.

IN WITNESS WHEREOF, the Company has caused this Restricted Stock Agreement to be executed by
one of its duly authorized officers, and the Participant has consented to the terms of this
Agreement, as of the date of Grant specified on the front of this certificate.

JOHNSON CONTROLS, INC.

Jerome D. Okarma

Vice President, Secretary and General Counsel

	 	 	 	 	 	 	 	 	 
	 
	 	 

Participant
	 	 
	 	 

Date
	 	 

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EMPLOYEE NAME

AMENDMENT TO RESTRICTED STOCK AGREEMENTS

     On January 3, 2006, you received an award of Restricted Stock under the Johnson Controls, Inc.
Restricted Stock Plan. The Compensation Committee amended the plan to change the vesting rules for
retirement. Because of this change to the plan, Section 4.a) of your Restricted Stock Agreement is
amended to read as follows:

a) Retirement. If the Participant terminates employment from the Company and
its Subsidiaries due to Retirement on or after the last day of the calendar year
following the calendar year in which the Award of Restricted Shares or Restricted
Share Units is made, any remaining Restriction Period shall continue as if the
Participant continued in active employment; provided, however, that for awards granted
on January 3, 2006, if the Participant terminates employment due to Retirement on or
after December 31, 2006, any remaining Period of Restriction shall continue as if the
Participant continued in active employment. If the Participant engages in Inimical
Conduct after his Retirement, as determined by the Committee, any Restricted Shares
and/or Restricted Share Units still subject to a Restriction Period shall
automatically be forfeited as of the date of the Committee’s determination.

     Please sign below to acknowledge your receipt of, and agreement to, this Amendment to your
Restricted Stock Agreement. Please keep the duplicate copy of this Amendment (which is attached)
with your Restricted Stock Agreements in your personal records. A copy of the amended plan is
enclosed.

JOHNSON CONTROLS, INC.

Its: Vice President, Secretary and

       General Counsel

	 	 	 	 	 
	PARTICIPANT:	 	 
	 
	 	 	 	 
	 	 	 
	Employee Name	 	 
	 
	 	 	 	 
	Dated:

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