Document:

Exh 10.1d - Performance Share Unit Award

Exhibit 10.1(d)
Performance Share Unit Award (Announced Retirement)

	
	
	

JOHNSON CONTROLS, INC.
PERFORMANCE SHARE UNIT AWARD

Grant - Terms for Performance Share Units

Johnson Controls, Inc. has adopted the 2012 Omnibus Incentive Plan to permit awards of performance share units to be made to certain key employees of the Company or any Affiliate.  The Company desires to provide incentives and potential rewards for future performance by the employee by providing the Participant with a means to acquire or to increase his/her proprietary interest in the Company's success.  Due to the Participant’s announced intention to retire prior to the end of the performance period under this Award, the number of Performance Units subject to the Award has been reduced to reflect the Participant’s intended retirement date.

Definitions.  Capitalized terms used in this Award have the following meanings:

		
	(a)
	“Award” means this grant of Performance Units.

		
	(b)
	“Award Notice” means the Award notification delivered to the Participant.

		
	(c)
	“Company” means Johnson Controls, Inc., a Wisconsin corporation, or any successor thereto.

		
	(d)
	“Fair Market Value” means, per Share on a particular date, the closing sales price on such date on the New York Stock Exchange, or if no sales of Stock occur on the date in question, on the last preceding date on which there was a sale on such market.

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

		
	(f)
	“Participant” means an individual selected to receive this Award.

		
	(g)
	“Performance Unit” or “Unit” means the right to receive one Share, to the extent the Performance Goals specified in the Summary of Terms and Conditions delivered to the Participant are achieved.

		
	(h)
	“Plan” means the Johnson Controls, Inc. 2012 Omnibus Incentive Plan, as may be amended from time to time.

		
	(i)
	“Retirement” means                                 .

		
	(j)
	“Share” means a share of Stock.

		
	(k)
	“Stock” means the Common Stock of the Company.

Other capitalized terms used in this Award have the meanings given in the Plan.

The parties 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 of this Award, and to the terms and conditions of this Award, the Company grants to the Participant an award of Performance Units on the date and with respect to the number of Units specified in the Award Notice.  

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2.Units Earned.  At the end of the performance period indicated in the Award Notice, the number of Units earned by the Participant shall be determined as set forth in the Summary of Terms and Conditions delivered to the Participant.

3.Dividend Equivalent Units.  Any cash dividends or other distributions paid or delivered with respect to the Stock for which the record date occurs on or before the settlement of the Performance Units under Section 4 below will result in a credit to a bookkeeping account for the benefit of the Participant.  The credit will be equal to the dividends or other distributions that would have been paid with respect to the Shares subject to the Performance Units had such Shares been outstanding.  For U.S. domestic Participants, the account will be converted into and settled in additional Shares issued under the Plan at the same time as the Performance Units are settled under Section 4 below; for any other Participants, the account will be paid to the Participant in cash at such time.  Such account will be subject to the same terms and conditions (including Performance Goals and risk of forfeiture) as the Performance Units to which the dividends or other distributions relate.  

4.Settlement of Units.  Subject to any applicable deferral election under Johnson Controls, Inc. Executive Deferred Compensation Plan (or any successor plan) and to the provisions of Section 7 below, the Company will issue a number of Shares to the Participant equal to the number of whole Units that have been earned within 90 days following the end of the performance period.

5.Alienation of Award.  The Participant (or beneficiary) shall not have any right to assign, transfer, sell, pledge or otherwise encumber this Award.

6.No Voting Rights.  The Participant shall not have any voting rights with respect to the number of Shares underlying the Units until such Shares have been earned and issued.

7.Termination of Employment - Risk of Forfeiture.

		
	a.
	Retirement, Death or Disability.  If, prior to the settlement of the Units, the Participant terminates employment from the Company and its Affiliates due to Retirement, death or Disability, in each case at a time when the Participant’s employment could not have been terminated for Cause, then the Participant shall be eligible to earn a number of Units at the end of the performance period based on actual performance.  Because the total number of Units subject to this Award reflects a reduction due to the Participant’s anticipated Retirement prior to the end of the performance period, the number of Units earned based on actual performance shall not be further prorated due to the Participant’s Retirement, death or Disability prior to the end of the performance period. 

Notwithstanding the foregoing, if the Participant engages in Inimical Conduct, as determined by the Administrator, the Participant’s right to receive any Units shall automatically be forfeited as of the date of the Administrator’s determination. 
		
	b.
	Other Termination.  If the Participant’s employment terminates for any reason not described above prior to the settlement of the Units, then this Award shall automatically be forfeited in its entirety immediately upon such termination.  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.

8.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 Units or the issuance of Shares under this Award.  The Company can delay the issuance of Shares or can withhold from cash or property, including cash or Shares under this Award, payable or issuable to the Participant, in the amount needed to satisfy any withholding obligations; provided that, in the case of Shares, the amount withheld may not exceed the Participant’s minimum withholding obligations.

Notwithstanding anything to the contrary in this Award, if the Company or any Affiliate of the Company is required to withhold any Federal, state or local taxes or other amounts in connection with the Award, then the Company may require the Participant to pay to the Company, in cash, promptly on demand, amounts sufficient to satisfy 

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such tax obligations or make other arrangements satisfactory to the Company regarding the payment to the Company of the aggregate amount of any such taxes and other amounts.  

9.No Claim for Forfeiture.  Neither the Award nor any benefit accruing to the Participant from the Award will be considered to be part of the Participant’s normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments.  Notwithstanding anything to the contrary in this Award, in no event may the Award or any benefit accruing to the Participant from the Award be considered as compensation for, or relating in any way to, past services for the Company or any Affiliate, nor shall the Participant have at any time a legally binding right to compensation under this Award unless and until the Committee approves, in its discretion, the number of Units earned at the completion of the performance period.  In consideration of the Award, no claim or entitlement to compensation or damages shall arise from forfeiture of the Award resulting from termination of the Participant’s employment by the Company or any Affiliate (for any reason whatsoever and whether or not in breach of local labor laws) and the Participant irrevocably releases the Company and its Affiliates from any such claim that may arise.  If, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by accepting the grant, the Participant shall have been deemed irrevocably to have waived any entitlement to pursue such claim.  

10.Electronic Delivery. The Company or its Affiliates may, in its or their sole discretion, decide to deliver any documents related to current or future participation in the Plan or related to this Award by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company. The Participant hereby agrees that all on-line acknowledgements shall have the same force and effect as a written signature.

11.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 of 1933, as amended, applicable state securities laws or other legal requirements, or (b) implement the provisions of the Plan, this Award or any other agreement between the Company and the Participant with respect to such Shares.

12.Successors.  All obligations of the Company under this Award shall be binding on any successor to the Company.  The terms of this Award and the Plan shall be binding upon and inure to the benefit of the Participants and his or her heirs, executors, administrators or legal representatives.

13.Legal Compliance.  The granting of this Award and the issuance of Shares under this Award 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.

14.Governing Law; Arbitration.  This Award 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 Plan.

15.Data Privacy and Sharing.  As a condition of the granting of the Award, the Participant acknowledges and agrees that it is necessary for some of the Participant’s personal identifiable information to be provided to certain employees of the Company, the third party data processor that administers the Plan and the Company’s designated third party broker in the United States.  These transfers will be made pursuant to a contract that requires the processor to provide adequate levels of protection for data privacy and security interests in accordance with the EU Data Privacy Directive 95/46 EC and the implementing legislation of the Participant’s home country.  By accepting the Award, the Participant acknowledges having been informed of the processing of the Participant’s personal identifiable information described in the preceding paragraph and consents to the Company collecting and transferring to the Company's Shareholder Services Department, and its independent benefit plan administrator and third party broker, the Participant’s personal data that are necessary to administer the Award and the Plan.  The Participant understands that his or her personal information may be transferred, processed and stored outside of the Participant’s home country in a country that may not have the same data protection laws as his or her home country, for the purposes mentioned in this Award.  

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This Award, the Award Notice, the Summary of Terms and Conditions delivered to the Participant and any other documents expressly referenced in this Award contain all of the provisions applicable to the Award and 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.

The Company has caused this Award to be executed by one of its authorized officers as of the date of grant.

    

JOHNSON CONTROLS, INC.

Jerome D. Okarma
Vice President, Secretary and General Counsel

4Exhibit 10.1

EXHIBIT 10.1

COMPLETE AND PERMANENT RELEASE AND RESIGNATION AGREEMENT

Allan J. Klotsche (“Mr. Klotsche”) and Brady Corporation (“the Company”) hereby enter into this Complete and Permanent Release and Resignation Agreement to resolve all matters relating to Mr. Klotsche’s employment with and resignation from the Company.  Mr. Klotsche and the Company hereby agree as follows:

1.    Resignation.
    
Effective November 20, 2013, pursuant to the action of the Board of Directors of the Company, Mr. Klotsche's term as Senior Vice President--Human Resources of the Company expired and Mr. Klotsche resigned from any and all officer and director positions which he held with subsidiaries or affiliates of the Company (the “Effective Date”).  Effective 12:01 a.m. on January 7, 2014 (CDT) (the “Separation Date”), Mr. Klotsche hereby agrees to resign from employment with the Company.  From the Effective Date to the Separation Date, Mr. Klotsche will remain employed by the Company and receive his current salary and fringe benefits.  During that time, Mr. Klotsche will be available to consult with respect to human resource and other issues as requested by the Company.  The Separation Date shall be deemed to be the “Qualifying Event” for insurance continuation and benefit plan purposes under state and federal law.  As of the Effective Date, Mr. Klotsche shall no longer be entitled to participate in any and all Equity Agreements with Brady Corporation, except as described in this Agreement.   

2.    Retirement Plan; Equity Agreements.

All of Mr. Klotsche’s balances, including Company stock, within any Company retirement plan will be paid out in accordance with the provisions of each plan and Mr. Klotsche’s instructions under such plans.  In addition, Mr. Klotsche shall have all of his preexisting rights with respect to stock options and restricted stock in accordance with the equity plans and granting agreements governing such equity.  Following the Effective Date, Mr. Klotsche will be provided with a summary of outstanding grants and post-termination exercise periods under those equity agreements.  

3.    Severance Pay.

In addition to the foregoing, and assuming Mr. Klotsche accepts and does not revoke this Agreement, Mr. Klotsche will be provided severance payments in the gross amount of $321,500, less required withholding, payable over the one year period following the Separation Date in accordance with the Company’s normal payroll practices, with the first such payment to be made on the first pay date occurring after the Separation Date or, only to the extent required by Section 409A, on the six-month anniversary of the Separation Date.  Each severance installment payable under this Section 3 shall constitute a separate "payment" within the meaning of Treasury Regulation Section 1.409A-2(b)(2).  

Mr. Klotsche will also be provided health insurance benefits from the Effective Date to the Separation Date.  Mr. Klotsche’s resignation is a qualifying event under the provisions of the Consolidated Reconciliation Act of 1985 (COBRA), and Mr. Klotsche will have the right to continue his group medical, dental or vision coverage for up to 18 months.  The Company will continue to pay the Company portion of Mr. Klotsche’s premium for 6 months following the Separation Date, provided that Mr. Klotsche continues his medical coverage by paying the employee portion of the medical premium  Mr. Klotsche will also be provided prorated Company retirement plan contributions from the Effective Date to the Separation Date, the option to purchase his Company vehicle for 80% of its assessed value as of the Separation Date, and the right to retain his Company computer/cell phone/iPad fully wiped of all Company-related data and information. 

4.    Adequate Consideration.

Mr. Klotsche acknowledges that the Company is under no pre-existing obligation to pay him any of the severance payments or benefits described in paragraph 3 above, that no amounts are due and owing Mr. Klotsche other than vested benefits to which he is otherwise entitled (“vested benefits”), and that the foregoing benefits are adequate consideration for Mr. Klotsche’s commitments in this Agreement.  The parties agree that the foregoing constitute all of the payments and benefits to be provided to Mr. Klotsche under this Agreement, and that they are in full settlement of all payments and benefits, including but not limited to, claims for wages, vacation pay, sick pay, bonuses, commissions, relocation costs, severance payments, stock options, or any other compensation.  

    

5.    Release Of All Claims.

In consideration of the payments and benefits described above, and to the fullest extent allowed by law, Mr. Klotsche, for himself, his spouse, heirs, successors and assigns, hereby releases and forever discharges the Company, its owners, parents, successors, affiliates, directors, officers, employees and all other representatives, from any and all charges, claims, suits and expenses (including attorneys’ fees and costs), whether known or unknown, including, but not limited to, claims of age or other discrimination, breach of contract, wrongful discharge, constructive discharge, claims under the Wisconsin Fair Employment Act, § 111.31, et seq. Wis. Stats.; Title VII of The Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e, et seq.; the Age Discrimination in Employment Act, 29 U.S.C. § 621 et. seq.; the common law of Wisconsin, or any other federal, state or local law relating to employment.  This release includes any and all matters in connection with or relating in any way to Mr. Klotsche’s employment with the Company and his resignation from the Company, provided, however, that nothing herein shall release, diminish, or otherwise affect Mr. Klotsche’s vested benefits.  Notwithstanding the foregoing, this release excludes any claims: (a) to enforce the terms of this Agreement;  (b) arising from facts, circumstances or events occurring after the Separation Date; or (c) for rights to indemnification Mr. Klotsche may have pursuant to the Company's Bylaws, Articles of Incorporation or applicable laws.

6.    Non-Admission.

Mr. Klotsche and the Company agree that this Complete and Permanent Release and Resignation Agreement shall not constitute an admission by the Company that it has acted wrongfully with respect to Mr. Klotsche or that it has discriminated against him or against any other individual.

7.    Confidential Agreement.

Except as permitted below, Mr. Klotsche hereby agrees to keep the terms of this Complete and Permanent Release and Resignation Agreement confidential, and he agrees that he shall neither directly nor indirectly disclose the terms of this Agreement to any other person or entity except to his attorneys, tax preparers or financial advisors, and immediate family members, but only on the condition that they agree to abide by the terms of this confidentiality clause, unless compelled by law or until such time as it has been publicly disclosed by the Company.

8.    Mutual Non-Disparagement.

Mr. Klotsche agrees that at no time will he make disparaging remarks about the Company, its officers, directors, or employees, its products or practices including, but not limited to, its personnel practices.  For its part, the Company agrees that its Officers and Directors shall not make disparaging remarks about Mr. Klotsche.  

9.    Confidentiality, Non-Solicitation and Non-Compete.
Mr. Klotsche and the Company specifically agree that the payments under paragraph 3 above shall be deemed to fully satisfy any obligation the Company may have to provide salary payments to Mr. Klotsche under any Confidential Information or Non-Compete Agreement he may have signed.  All Confidentiality, Non-Solicitation and Non-Compete restrictions and responsibilities to which Mr. Klotsche will be subject after execution of this Agreement are set forth in this Paragraph 9.  In addition, and as further consideration for this Agreement, Mr. Klotsche agrees to, understands and acknowledges the following:

(a)    During Mr. Klotsche’s employment with the Company, he was provided with Confidential Information relating to the Company, its business and clients, the disclosure or misuse of which would cause severe and irreparable harm to the Company.  Mr. Klotsche agrees that all Confidential Information is and shall remain the sole and absolute     property of the  Company.  Upon the Separation Date, Mr. Klotsche shall immediately return to the Company all documents and materials that contain or constitute Confidential Information, in any form whatsoever, including but not limited to, all copies, abstracts, electronic versions, and summaries thereof.  Mr. Klotsche further agrees that, without the written approval of the Board of Directors of the Company, he will not disclose, use, copy or duplicate, or otherwise permit the use, disclosure, copying or duplication of any Confidential Information of the Company.  Mr.     Klotsche agrees to take all reasonable steps and precautions to prevent any unauthorized disclosure, use, copying or duplication of Confidential Information.  For purposes of this Agreement, Confidential Information means any and all financial, technical, commercial or other information concerning the business and affairs of the Company that is confidential and proprietary to the Company, including without limitation,

(i)    information relating to the Company’s past and existing customers and vendors and development of prospective customers and vendors, including specific customer product requirements, pricing arrangements, payments terms, customer lists and other similar information;
(ii)    inventions, designs, methods, discoveries, works of authorship,             creations, improvements or ideas developed or otherwise produced, acquired or used by the Company;
(iii)    the Company’s proprietary programs, processes or software, consisting of but not limited to, computer programs in source or object code and all related documentation and training materials,             including all upgrades, updates, improvements, derivatives and modifications thereof and including programs and documentation in incomplete stages of design or research and development;
(iv)    the subject matter of the Company’s patents, design patents, copyrights, trade secrets, trademarks, service marks, trade names, trade dress, manuals, operating instructions, training materials, and     other industrial property, including such information in incomplete stages of design or research and development; and
		
	(v)
	other confidential and proprietary information or documents relating to the Company’s products, business and marketing plans and techniques, sales and distribution networks and any other information or documents which the Company protects  as being confidential.

(b)    Mr. Klotsche further agrees that, without the written approval of the Board of  Directors of the Company, he shall not engage in any of the conduct described in subsection (i) below, either directly or indirectly, or         as an employee, contractor, consultant, partner, officer, director or stockholder, other than a stockholder of less than 5% of the equities of a publicly traded corporation, or in any other capacity for any person, firm,         partnership or corporation:
(i)    For a period of 12 months following the Separation Date, Mr. Klotsche will not:  
(A)   perform duties as or for a Competitor that are the same as or similar to the duties performed by him for the Company at any time during his employment with Company; or             
(B)  participate in the inducement of or otherwise encourage Company employees, clients, or vendors to currently and/or prospectively breach, modify, or terminate any agreement or     relationship they have or had with Company during any part of the 24 month period preceding the Separation Date.
For purposes of this Agreement, a Competitor shall mean any corporation, person, firm or organization (or division or part thereof) engaged in or about to become engaged in research and development work on, or the production and/or sale of, any product or service anywhere in the world which is directly competitive with a product or service of the Company.

		
	(c)
	Mr. Klotsche acknowledges and agrees that compliance with this paragraph 9 is necessary to protect the Company, and that a breach of any portion of this paragraph 9 will result in irreparable and continuing damage to the Company for which there will be no adequate remedy at law.  In the event of a breach of this paragraph 9, or any part thereof, the Company, and its successors and assigns, shall be entitled to injunctive  relief and to such other and further relief as is proper under the circumstances.  The Company shall institute and prosecute proceedings in any Court of competent jurisdiction either in law or in equity to obtain damages for any such breach of this paragraph 9, or to enjoin Mr. Klotsche from performing services in breach of paragraph 9(b) during the term of employment and for a period of 12 months following the Separation Date.  Mr. Klotsche hereby agrees to submit to the jurisdiction of any Court of competent jurisdiction in any disputes that arise under this Agreement.

		
	(d)
	Mr. Klotsche further agrees that, in the event of a breach of this paragraph 9, the Company shall also be entitled to recover the value of any amounts previously paid or payable under this Agreement.

		
	(e)
	MR. KLOTSCHE HAS READ THIS PARAGRAPH 9 AND AGREES     THAT THE CONSIDERATION PROVIDED BY THE COMPANY IS FAIR AND REASONABLE AND FURTHER AGREES THAT GIVEN THE IMPORTANCE TO THE COMPANY OF ITS 

CONFIDENTIAL AND PROPRIETARY INFORMATION, THE FOREGOING RESTRICTIONS ON HIS ACTIVITIES ARE LIKEWISE FAIR AND REASONABLE. 
10.    Assignment

If Mr. Klotsche should die while any amounts are still payable to him pursuant to this Agreement, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to Mr. Klotsche's devisee, legatee, or other designee, or if there be no such designee, to his estate.

11.    Section 409A

The intent of the parties is that the payments and benefits under this Agreement comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder (collectively, “Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  If Mr. Klotsche or the Company believes, at any time, that any payment pursuant to this Agreement is subject to taxation under Section 409A of the Code, then (i) it shall advise the other and (ii) to the extent such correction is possible to avoid taxation under Section 409A without any material diminution in the value of the payments or benefits to Mr. Klotsche, the Company and Mr. Klotsche shall reasonably cooperate in good faith to take such steps as necessary, including amending (and, as required, consenting to the amendment of) the terms of any plan or program under which such payments are to be made, in the least restrictive manner necessary in order to comply with the provisions of Section 409A and the Section 409A Regulations in order to avoid taxation under Section 409A.    

Notwithstanding anything contained herein to the contrary, if at Mr. Klotsche’s separation from service, (a) he is a specified employee as defined in Section 409A and (b) any of the payments or benefits provided hereunder constitute deferred compensation under Section 409A, then, and only to the extent required by such provisions, the date of payment of such payments or benefits otherwise provided shall be delayed for a period of six months following the separation from service.

12.    Entire Agreement.

This Complete and Permanent Release and Resignation Agreement sets forth the entire agreement between the parties and fully supersedes any and all prior agreements or understandings between Mr. Klotsche and the Company.  Mr. Klotsche acknowledges that he is hereby advised to seek legal counsel before signing this Agreement, that he has twenty-one (21) days to consider this Agreement, that upon his acceptance he has seven (7) days to revoke his acceptance, and that this Agreement will not become effective until that seven (7) day period has expired.  Mr. Klotsche agrees that he has read, understands and voluntarily accepts its terms.

November 20, 2013                        /s/ Allan J. Klotsche             
Date                                Allan J. Klotsche

                    
                
BRADY CORPORATION

November 20, 2013                                          By: /s/ Thomas J. Felmer                                                       
Date                                Its Authorized Representative

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