Document:

exv10wa

 

Exhibit 10.A

JOHNSON CONTROLS, INC.

1992 Stock Option Plan

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

	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. 1992 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
along with Options issued pursuant to the Plan and, subject to certain limitations, 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 effective date of the Plan is the date of its adoption by
the Board of Directors, September 23, 1992, subject to the approval of the Plan by the
shareholders of the Company within twelve months of the effective date. Any and all Options
granted prior to such approval shall be subject to such approval.

	4.	 	Stock Subject to the Plan. Subject to adjustment in accordance with the provisions of
paragraph 19, the total number of shares of the common stock of the Company (“Common Stock”),
available for awards during the term of this Plan shall not exceed 22,775,274 shares. 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 of the Company 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 18) in connection with the receipt of stock
appreciation rights as

 

 

provided in paragraph 18A 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 separate and apart
from Options (including any grant in connection with the surrender of outstanding Options),
as provided in paragraph 18A, 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.

	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 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 Option periods, limitations on Option
exercise, and the number of shares to be subject to each Option. 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.

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(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 1.5 million shares in the
aggregate. No Option or stock appreciation right shall be granted to any person who owns,
directly or indirectly, shares of stock possessing more than 10% of the total combined voting
power of all classes of stock of the Company. A director of the Company or of a subsidiary
who is not also an employee of the Company or of a subsidiary will not be eligible to receive
any Option or stock appreciation right hereunder.

	7.	 	Rights of Employees. Nothing in this Plan or in any Option or stock appreciation right
shall interfere with or limit in any way the right of the Company and any of its subsidiaries
to terminate any Participant’s or employee’s employment at any time, nor confer upon any
Participant or employee any right to continue in the employ of the Company and its
subsidiaries.

	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 for stock appreciation rights
granted under paragraph 18, and the per share grant price for stock appreciation rights
granted under paragraph 18A, 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

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stock appreciation right granted under paragraph 18A upon the surrender of any outstanding
Option, on the date of grant of such Option). The fair market value of a share of stock on
any date shall be the average of the highest and lowest market prices of sales of the Common
Stock on that date, or on the next preceding trading day if such date was not a trading day
as reported on the New York Stock Exchange or as otherwise determined by the Committee.
However, effective January 1, 2007, in connection with an exercise of options, to the extent
the Participant sells any Shares acquired upon such exercise in a market transaction on the
date of exercise, the sale price(s) for any such Shares shall be the fair market value.

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

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

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

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Members (collectively, the Permitted Transferees), provided that there may be
no consideration for any such transfer by a Participant

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

	13.	 	Exercise of Option; Deferral of Shares.

(a) The Committee shall prescribe the manner in which a Participant may exercise an Option
which is not inconsistent with the provisions of this Plan. 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.

(b) The Committee may provide one or more means to enable Participants and the Company to
defer delivery of shares of Common Stock deliverable upon exercise of an Option, on such
terms and conditions as the Committee may determine, including by way of example the manner
and timing of making a deferral election, the treatment of dividends paid on shares of
Common Stock during the deferral period and the permitted distribution dates or events. No
such deferral means may result in any increase in the number of shares of Common Stock
issuable hereunder other than as contemplated by paragraph 4 or paragraph 19 hereof.

	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, or such greater amount as may be requested by the Participant. 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

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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.	 	[intentionally omitted]
	 
	16.	 	[intentionally omitted]

	17.	 	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 retirement or total
and permanent disability, all rights to exercise an Option or stock appreciation right shall
terminate immediately.

(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 may be exercised by the person to whom it is transferred by will or by
the applicable laws of descent and distribution to the extent it could have been exercised
by the Participant had he lived, 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.

(c) 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
an Option or stock appreciation right, the Option or stock appreciation right may be
exercised by the Participant, to the extent it could have been exercised had the Participant
remained actively employed, at any time within thirty-six months (except Incentive Stock
Options which may be exercised within three months) after the date of such early or normal
retirement or total permanent disability, as the case may be, unless such Option or stock
appreciation right expires earlier under the terms of the Option Agreement. Provided,
however, that for certain participants who are officers of the corporation or who are
selected by the Compensation Committee of the Board, nonqualified options granted after July
27, 1999, may be exercised by the Participant for five years of the Option or stock
appreciation right 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. 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 early or normal retirement benefits under the
provisions of any of the Company’s or its subsidiaries pension plans; or, in the absence of
a pension 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

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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 22, Options
(other than Incentive Stock Options granted prior to May 24, 1989) and stock appreciation
rights shall continue to be exercisable for three months after a Participant’s termination
of employment.

	18.	 	Stock Appreciation Rights. Stock appreciation rights may be granted in conjunction with
all or part of any Option granted under the Plan. Stock appreciation rights may be exercised
by a Participant by surrendering the related Option or applicable portion thereof. Upon such
exercise and surrender, the Participant shall be entitled to receive the economic value of
such stock appreciation rights determined in the manner prescribed in subparagraph (b) of the
Paragraph 18 and in the form prescribed in subparagraph (c) of this Paragraph 18. Options
which have been so surrendered, in whole or in part, shall no longer be exercisable. Stock
appreciation rights shall be subject to such 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 shall be exercisable or transferable at such time or times and
only to the extent that the Option to which they relate is exercisable or transferable.

(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 of the Company on the date of exercise over the
Option price per share, multiplied by the number of shares in respect of which the stock
appreciation rights shall have been exercised.

(c) The Committee shall have 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) Common Stock subject to the Option to which the stock appreciation rights relate exceeds
the exercise price of such Option.

	18A.	 	Other Stock Appreciation Rights. Stock appreciation rights may also be granted separate
from any Option granted under the Plan to any Participant who at the time of grant is not
then an officer of the Company for purposes of Section 16 of the Securities Exchange Act of
1934, as amended (a “Section 16 Officer”). The Committee may also

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grant stock appreciation rights under this paragraph 18A to any person who is not then a
Section 16 Officer in connection with the surrender of any outstanding Option granted under
the Plan prior to September 22, 1993 (and the surrender of any related stock appreciation
rights granted under paragraph 18). 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 18A and in the form prescribed
in subparagraph (c) of this paragraph 18A.

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 of the Company 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.

	19.	 	Adjustment Provisions. In the event of any change in the shares of the Common Stock of the
Company by reason of a declaration of a stock dividend (other than a stock dividend declared
in lieu of an ordinary cash dividend), spin-off, merger, consolidation, recapitalization, or
split-up, combination or exchange of shares, or otherwise, the aggregate number and class of shares available under this Plan (including the per

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Participant limit on awards in Section 6), the number and class of shares subject to each
outstanding Option and stock appreciation right, 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 final and conclusive. Unless the Committee
determines otherwise, any such adjustment to an award that is exempt from Code Section 409A
shall be made in manner that permits the award to continue to be so exempt, and any
adjustment to an award that is subject to Code Section 409A shall be made in a manner that
complies with the provisions thereof. Notwithstanding the foregoing, in the case of a stock
dividend (other than a stock dividend declared in lieu of an ordinary cash dividend) or
split-up (including a reverse stock split), if no action is taken by the Committee,
adjustments contemplated by this subsection that are proportionate shall nevertheless
automatically be made as of the date of such stock dividend or split-up.

	20.	 	Termination and Amendment of Plan. The Plan shall terminate on September 22, 2002, 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, make any
modifications 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, unless determined otherwise by the Board or Committee, any such amendment shall be
made in a manner that will enable an award intended to be exempt from Code Section 490A to
continue to be so exempt, or to enable an award intended to comply with Code Section 409A to
continue to so comply.

	21.	 	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 certificate 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.

	22.	 	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

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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 May 24, 1989, 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 May
24, 1989, 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
a reorganization, merger or consolidation (a “Business Combination”), in each case, with
respect to which all or substantially all of the of the individuals and entities who were
the respective beneficial owners of the Outstanding Company Common Stock and Company Voting
Securities immediately prior to such Business Combination do not, following such Business
Combination, beneficially own, directly or indirectly, more than 60% of, respectively, the
then outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of directors, as
the case may be, of the corporations resulting from such Business Combination in
substantially the same proportion as their ownership immediately prior to such Business
Combination or the Outstanding Company Common Stock and Company Voting Securities, as the
case may be; or (iv) (A) a complete liquidation or dissolution of the company or a (B) sale
or other disposition of all or substantially all of the assets of the Company other than to
a corporation with respect to which, following such sale or disposition, more than 60% of,
respectively, the then outstanding shares of common stock and the combined voting power of
the then outstanding voting securities entitled to vote generally in the election of
directors is then owned beneficially, directly or indirectly, by all or substantially all of

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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.

	23.	 	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.

	24.	 	Governing Law. The Plan, all awards hereunder, and all determinations made and actions
taken pursuant to the Plan shall be governed by the laws of the State of Wisconsin and
construed in accordance therewith, to the extent not otherwise governed by the laws of the
United States.

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

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

11exv10wd

 

Exhibit 10.D

JOHNSON CONTROLS, INC.

DEFERRED COMPENSATION PLAN FOR CERTAIN DIRECTORS

ARTICLE 1.

PURPOSE AND DURATION

          Section 1.1.  Purpose. The purpose of the Johnson Controls, Inc. Deferred
Compensation Plan for Certain Directors (the “Plan”) is to advance the Company’s growth and
success, and to advance the interests of its shareholders, by attracting and retaining
well-qualified directors upon whose judgment the Company is largely dependent for the successful
conduct of its operations.

          Section 1.2.  Duration. The Plan was originally effective on September 25, 1991.
The Plan was most recently amended and restated effective January 1, 2008. The Plan shall remain
in effect until terminated pursuant to the provisions of Article 9.

ARTICLE 2.

DEFINITIONS AND CONSTRUCTION

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

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

          (b) “Act” means the Securities Act of 1933, as interpreted by regulations and rules issued
pursuant thereto, all as amended and in effect from time to time. Any reference to a specific
provision of the Act shall be deemed to include reference to any successor provision thereto.

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

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

          (e) “Beneficiary” means the person(s) or entity(ies) designated by a Participant to be his
beneficiary for purposes of this Plan as provided in Section 9.2.

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

 

 

          (g) “Change of Control” has the meaning ascribed to such term in Section 8.2.

          (h) “Code” means the Internal Revenue Code of 1986, as interpreted by regulations and rulings
issued pursuant thereto, all as amended and in effect from time to time. Any reference to a
specific provision of the Code shall be deemed to include reference to any successor provision
thereto.

          (i) “Committee” means the Corporate Governance Committee of the Board, which shall consist of
not less than two members of the Board, each of whom shall be a non-employee director within the
meaning of Rule 16b-3 of the Exchange Act.

          (j) “Company” means Johnson Controls, Inc. and its successors as provided in Section 9.7.

          (k) “Deferral” means the amount credited, in accordance with a Participant’s election, to the
Participant’s Account in lieu of the payment in cash or Shares.

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

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

          (n) “Inimical Conduct” means any act or omission that is inimical to the best interests of the
Company or any Affiliate or other subsidiary of the Company, as determined by the Committee in its
sole discretion, including but not limited to: (1) divulging at any time any confidential
information, technical or otherwise, obtained by a Participant in his capacity as a director, (2)
taking any steps or doing anything which would damage or negatively reflect on the reputation of
the Company, an Affiliate or any subsidiary, or (3) refusing to furnish such advisory or consulting
services as the Company may reasonably request and as the Participant’s health may permit, provided
that such services shall be rendered as an independent contractor and not as an employee and that
the Company shall pay reasonable compensation for such services, as well as reimbursement for
expenses incurred in connection therewith.

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

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

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          (q) “Participant” means an Outside Director who has elected to make Deferrals pursuant to
Article 4 of the Plan. Where the context so requires, a Participant also means a former director
entitled to a benefit hereunder.

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

          (s) “Share” means a share of common stock of the Company.

          (t) “Share Unit Account” means the account described in Article 7, which is deemed invested in
Shares.

          (u) “Share Units” means the hypothetical Shares that are credited to the Share Unit Accounts
in accordance with Article 7.

          (v) “Valuation Date” means each day when the United States financial markets are open for
business, as of which the Administrator will determine the value of each Account and will make
allocations to Accounts.

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

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

ARTICLE 3.

PARTICIPATION

          Section 3.1.  Eligibility. Each Outside Director shall be eligible to become a Participant on the date the
individual is
first elected to become an Outside Director.

          Section 3.2.  Effective Date. Each Outside Director for whom an Account is
maintained under the Plan as of December 31, 2007, shall continue in participation hereunder on
January 1, 2008.

3

 

ARTICLE 4.

DEFERRED COMPENSATION

          Section 4.1.  Deferral Election. An Outside Director may elect, prior to the
beginning of each calendar year, to defer all or any part of his compensation as a director which
is paid by the Company (in cash or Shares) in the following year. As of the first day of the
calendar year for which the election is made, the Participant’s deferral election shall be
irrevocable except as provided in Section 4.2. A Participant who fails to complete a new election
for any calendar year shall be deemed to have elected to continue his most recent election in
effect without change.

          In the first year an Outside Director is elected to the Board, such individual may elect,
within the first thirty (30) days after being elected to the Board, to defer all or any portion of
his compensation as a director. Such election shall be effective with respect to compensation
payable to the Outside Director by the Company for services provided by the Outside Director after
the first day of the calendar quarter that follows the date of the Outside Director’s deferral
election. The election in effect as of the last day of the thirty (30) day election period shall
be irrevocable for the remainder of the calendar year to which it applies, except as provided in
Section 4.2.

          The Company shall credit any compensation deferred pursuant to a valid election to the
Participant’s Account at the time such compensation would have otherwise been paid to the
Participant (whether in cash or Shares).

          Section 4.2.  Administration of Deferral Elections. All deferral elections must
be made in the form and manner and within such time periods as the Administrator prescribes in
order to be effective.

ARTICLE 5.  HYPOTHETICAL INVESTMENT OPTIONS

          Section 5.1.  Investment Election. Amounts credited to a Participant’s Account
shall reflect the investment experience of the Investment Options selected by the Participant;
provided that any deferral of Shares shall automatically be deemed invested in the Share Unit
Account. The Participant may make an initial investment election in whole increments of one percent
(1%) at the time the Participant elects to participate in the Plan. A Participant may also elect
to reallocate his or her Account, and may elect to allocate any future Deferrals, among the various
Investment Options in whole increments of one percent (1%) from time to time as prescribed by the Administrator; provided that,
prior to November 15, 2006, any deferral of Shares shall not be eligible for re-allocation out of
the Share Unit Account. Effective November 15, 2006, Share deferrals may be re-allocated out of
the Share Unit Account, subject to any restrictions on re-allocation as may be imposed by the
Company. Such investment elections shall remain in effect until changed by the Participant. All
investment elections shall become effective as soon as practicable after receipt of such election
by the Administrator or its designee, and must be made in the form and manner and within such time
periods as the Administrator prescribes in order to be effective. In the absence of an effective
election, with respect to Participants who make an initial deferral election on or after October 1,
2006, the Participant’s Account shall be deemed invested in the default fund specified for the
Johnson Controls Inc.

4

 

Savings and Investment (401k) Plan (or any successor plan thereto). For
Participants whose initial deferral election was made prior to October 1, 2006, the default fund is
the Share Unit Account.

          Deferrals will be deemed invested in an Investment Option as of the date on which the
Deferrals would have otherwise been paid to the Participant.

          On each Valuation Date, the Administrator (or its delegate) shall credit the deemed investment
experience with respect to the selected Investment Options to each Participant’s Account.
Notwithstanding anything herein to the contrary, the Company retains the right to allocate actual
amounts hereunder without regard to a Participant’s request.

          Section 5.2.  Securities Law Restrictions. Notwithstanding anything to the
contrary herein, all elections under Article 5 or 6 by a Participant who is subject to Section 16
of the Exchange Act are subject to review by the Administrator prior to implementation. In
accordance with Section 9.5, the Administrator may restrict additional transactions, rescind
transactions, or impose other rules and procedures, to the extent deemed desirable by the
Administrator in order to comply with the Exchange Act, including, without limitation, application
of the review and approval provisions of this Section 5.2 to Participants who are not subject to
Section 16 of the Exchange Act.

          Section 5.3.  Accounts are For Record Keeping Purposes Only. Plan Accounts and
the record keeping procedures described herein serve solely as a device for determining the amount
of benefits accumulated by a Participant under the Plan, and shall not constitute or imply an
obligation on the part of the Company to fund such benefits.

ARTICLE 6.

DISTRIBUTION

          Section 6.1.  General. A Participant, at the time he makes an initial Deferral
election under Article 4 of the Plan, shall elect the form of distribution with respect to his
Account. Such election shall be made in such form and manner as the Administrator may prescribe,
and shall be irrevocable. The election shall specify whether distributions shall be made in a
single lump sum or from two (2) to ten (10) annual installments. In the absence of a distribution election, payment shall be made in ten (10)
annual installments.

          Section 6.2.  Time of Distribution. Upon a Participant’s Separation from Service
for any reason, the Participant, or his Beneficiary in the event of his death, shall be entitled to
payment of the amount accumulated in such Participant’s Account.

          Section 6.3.  Manner of Distribution. The Participant’s Account shall be paid in
cash in the following manner:

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

5

 

          (b) Installments. If payment is to be made in annual installments, the first annual
payment shall be made in the first calendar quarter following the calendar quarter in which the
Participant’s Separation from Service occurs. The amount of the first annual payment shall equal
the value of 1/10th
 (or 1/9th,
 1/8th,
1/7th, etc.
depending on the number of installments elected) of the balance of the Participant’s Account as of
the Valuation Date immediately preceding the distribution date.

          All subsequent annual payments shall be made in the first calendar quarter of each subsequent
calendar year, and shall be in an amount equal to the value of 1/9th (or
1/8th, 1/7th, 1/6th, etc. depending on the number of installments
elected) of the balance of the Participant’s Account as of the Valuation Date immediately preceding
the distribution date. The final annual installment payment shall equal the then remaining
balance of such Account as of the Valuation Date preceding such final payment date.

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

          Section 6.4.  Forfeiture of Distributions. If a Participant engages in Inimical
Conduct prior to the distribution of the balance of his Account, the remaining balance of the
Participant’s Account shall be forfeited as of the date the Committee determines the Participant
has engaged in Inimical Conduct. If the Participant has begun receiving payments of his Account,
the Committee may suspend those payments (without liability for interest thereon) pending its
determination of whether the Participant has engaged in Inimical Conduct.

          Section 6.5.  Distribution of Remaining Account Following Participant’s Death. In the event of the
Participant’s death prior to receiving all payments due under this Article
6, the balance of the Participant’s Account shall be paid to the Participant’s Beneficiary in a
lump sum in the first calendar quarter of the year following the year of the Participant’s death.

          Section 6.6.  Tax Withholding. The Company shall have the right to deduct from
any deferral or payment made hereunder, or from any other amount due a Participant, the amount of
cash and/or Fair Market Value of Shares sufficient to satisfy the Company’s or Affiliate’s foreign,
federal, state or local income tax withholding obligations with respect to such deferral (or
vesting thereof) or payment. In addition, if prior to the date of distribution of any amount
hereunder, the Federal Insurance Contributions Act (FICA) tax imposed under Code Sections 3101,
3121(a) and 3121(v)(2), where applicable, becomes due, the Participant’s Account balance shall be
reduced by the amount needed to pay the Participant’s portion of such tax, plus an amount equal to
the withholding taxes due under federal, state or local law resulting from the payment of such FICA
tax, and an additional amount to pay the additional income tax at source on wages attributable to
the pyramiding of the Code Section 3401 wages and taxes, but no greater than the aggregate of the
FICA tax amount and the income tax withholding related to such FICA tax amount.

6

 

          Section 6.7.  Offset. The Company shall have the right to offset from any amount
payable hereunder any amount that the Participant owes to the Company or to any Affiliate without
the consent of the Participant (or his Beneficiary, in the event of the Participant’s death).

          Section 6.8.  Additional Payment Provisions.

	 	(a)	 	Acceleration of Payment. Notwithstanding the foregoing:
	 
	 	(1)	 	If an amount deferred under this Plan is required to be
included in income under Code Section 409A prior to the date such amount is
actually distributed, a Participant shall receive a distribution, in a lump sum
within 90 days after the Plan fails to meet the requirements of Code Section
409A, of the amount required to be included in the Participant’s income as a
result of such failure.
	 
	 	(2)	 	If an amount under the Plan is required to be immediately
distributed in a lump sum under a domestic relations order within the meaning
of Code Section 414(p)(1)(B), it may be distributed according to the terms of
such order, provided the Participant holds the Administrator harmless with
respect to such distribution. The Plan shall not distribute amounts required
to be distributed under a domestic relations order other than in the limited
circumstance specifically stated herein.
	 
	 	(b)	 	Delay in Payment. Notwithstanding the foregoing:
	 
	 	(1)	 	If a distribution required under the terms of this Plan would
jeopardize the ability of the Company to continue as a going concern, the
Company shall not be required to make such distribution. Rather, the
distribution shall be delayed until the first date that making the distribution
does not jeopardize the ability of the Company as a going concern. Any
distribution delayed under this provision shall be treated as made on the date
specified under the terms of this Plan.
	 
	 	(2)	 	If the distribution will violate the terms of Section 16(b) of
the Exchange Act or other Federal securities laws, or any other applicable law,
then the distribution shall be delayed until the earliest date on which making
the distribution will not violate such law.

ARTICLE 7.

RULES WITH RESPECT TO SHARE UNITS

          Section 7.1.  Valuation of Share Unit Account. When any amounts are to be
allocated to a Share Unit Account (whether in the form of Deferrals or amounts that are deemed
re-allocated from another Investment Option), such amount shall be converted to whole and
fractional Share Units, with fractional units calculated to three decimal places, by dividing the
amount to be allocated by the Fair Market Value of a Share on the effective date of such
allocation. If any dividends or other distributions are paid on Shares while a Participant has
Share Units credited to his Account, such Participant shall be credited with a dividend award

7

 

equal to the amount of the cash dividend paid or Fair Market Value of other property distributed on one
Share, multiplied by the number of Share Units credited to his Share Unit Account on the date the
dividend is declared. The dividend award shall be converted into additional Share Units as
provided above using the Fair Market Value of a Share on the date the dividend is paid or
distributed. Any other provision of this Plan to the contrary notwithstanding, if a dividend is
paid on Shares in the form of a right or rights to purchase shares of capital stock of the Company
or any entity acquiring the Company, no additional Share Units shall be credited to the
Participant’s Share Unit Account with respect to such dividend, but each Share Unit credited to a
Participant’s Share Unit Account at the time such dividend is paid, and each Share Unit thereafter
credited to the Participant’s Share Unit Account at a time when such rights are attached to Shares,
shall thereafter be valued as of any point in time on the basis of the aggregate of the then Fair
Market Value of one Share plus the then Fair Market Value of such right or rights then attached to
one Share.

          Section 7.2.  Transactions Affecting Common Stock. In the event of any merger,
share exchange, reorganization, consolidation, recapitalization, stock dividend, stock split or
other change in corporate structure of the Company affecting Shares, the Committee may make
appropriate equitable adjustments with respect to the Share Units credited to the Share Unit
Accounts of each Participant, including without limitation, adjusting the date as of which such
units are valued and/or distributed, as the Committee
determines is necessary or desirable to prevent the dilution or enlargement of the benefits
intended to be provided under the Plan.

          Section 7.3.  No Shareholder Rights With Respect to Share Units. Participants
shall have no rights as a stockholder pertaining to Share Units credited to their Accounts. No
Participant or Beneficiary shall have any right to receive a distribution of Company stock under
this Plan. All distributions from the Participant’s Share Unit Account are made in cash.

ARTICLE 8.

SPECIAL RULES APPLICABLE IN THE EVENT OF A

CHANGE OF CONTROL OF THE COMPANY

          Section 8.1.  Acceleration of Payment of Accounts. Notwithstanding any other
provision of this Plan, within 30 days after a Change of Control, each Participant (or any
Beneficiary thereof entitled to receive payment hereunder), including Participants receiving
installment payments under the Plan, shall be entitled to receive a lump sum payment in cash of all
amounts accumulated in such Participant’s Account. Such payment shall be made as soon as
practicable (but not more than ninety (90) days) following the Change of Control.

          In determining the amount accumulated in a Participant’s Share Unit Account, each Share Unit
shall have a value equal to the higher of (a) the highest reported sales price, regular way, of a
share of the Company’s common stock on the Composite Tape for New York Stock Exchange Listed Stocks
(the “Composite Tape”) during the sixty (60)-day period prior to the date of the Change of Control
of the Company and (b) if the Change of Control of the Company is the result of a transaction or
series of transactions described in Section 8.2(a), the highest price per Share of the Company paid
in such transaction or series of transactions.

8

 

          Section 8.2.  Definition of a Change of Control. A Change of Control means any of
the following events, provided that each such event would constitute a change of control within the
meaning of Code Section 409A:

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

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

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

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

          (c) A complete liquidation or dissolution of the Company or sale or other disposition of all
or substantially all of the assets of the Company other than to a corporation with respect to
which, following such sale or disposition, more than sixty percent (60%) of, respectively, the
then outstanding shares of common stock and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors is then owned
beneficially, directly or indirectly, by all or substantially all of the individuals and entities
who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Company
Voting Securities immediately prior to such sale or disposition in substantially the same
proportion as their ownership of the Outstanding Company Common Stock and Company Voting
Securities, as the case may be, immediately prior to such sale or disposition. For purposes
hereof, “a sale or other disposition of all or substantially all of the assets of the

9

 

Company” will not be deemed to have occurred if the sale involves assets having a total gross fair market value
of less than forty percent (40%) of the total gross fair market value of all assets of the Company
immediately prior to the acquisition. For this purpose, “gross fair market value” means the value
of the assets without regard to any liabilities associated with such assets.

          For purposes of this Section 8.2, persons will not be considered to be acting as a “group”
solely because they purchase or own stock of the Company at the same time, or as a result of the
same public offering. However, persons will be considered to be acting as a “group” if they are
owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock,
or similar business transaction with the Company. If a person, including an entity, owns stock in
the Company and any other corporation that enters into a merger, consolidation, purchase or
acquisition of stock, or similar transaction, such shareholder is considered to be acting as a
group with other shareholders in such corporation only with respect to the ownership in that
corporation prior to the transaction giving rise to the change and not with respect to the
ownership interest in the Company.

ARTICLE 9.

GENERAL PROVISIONS

          Section 9.1.  Administration.

          (a) General. The Committee shall have overall discretionary authority with respect to
administration of the Plan; provided that the Administrator shall have responsibility for the
general operation and daily administration of the Plan as specified herein. If at any time the
Committee shall not be in existence or not be composed of members of the Board who qualify as
“non-employee directors”, then the Board shall administer the Plan (with the assistance of the
Administrator) and all references herein to the Committee shall be deemed to include the Board.
The Committee or Administrator may, in their discretion, delegate any or all of their respective
authority and responsibility; provided that the Committee shall not delegate authority and
responsibility with respect to non-ministerial functions that relate to the participation by
Participants who are subject to Section 16 of the Exchange Act at the time any such delegated
authority or responsibility is exercised. To the extent of any such delegation, any references
herein to the Committee or Administrator, as applicable, shall be deemed references to such
delegate. Interpretation of the Plan shall be within the sole discretion of the Committee or the
Administrator with respect to their respective duties hereunder. If any delegate of the Committee
or the Administrator shall also be a Participant or Beneficiary, any determinations affecting the
delegate’s participation in the Plan shall be made by the Committee or Administrator, as
applicable.

          (b) Authority and Responsibility. In addition to the authority specifically provided
herein, the Committee and the Administrator shall have the discretionary authority to take any
action or make any determination deemed necessary for the proper administration of the Plan with
respect to the respective duties of each under the Plan, including but not limited to: (1)
prescribe rules and regulations for the administration of the Plan; (2) prescribe forms for use
with respect to the Plan; (3) interpret and apply all of the Plan’s provisions, reconcile
inconsistencies or supply omissions in the Plan’s terms; and (4) make appropriate determinations,
including factual determinations, and calculations. Any action taken by the Committee shall be
controlling

10

 

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

          (c) Decisions Binding. The Committee’s and the Administrator’s determinations shall
be final and binding on all parties with an interest hereunder.

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

          (e) Indemnification. Service on the Committee or with the Administrator shall
constitute service as a director or officer of the Company so that the Committee and Administrator
members shall be entitled to indemnification, limitation of liability and reimbursement of expenses
with respect to their Committee or Administrator services to the same extent that they are entitled
under the Company’s By-laws and Wisconsin law for their services as directors or officers of the
Company.

          Section 9.2.  Designation of Beneficiary. Each Participant may designate a
Beneficiary in such form and manner and within such time periods as the Administrator may
prescribe. A Participant can change his beneficiary designation at any time, provided that each
beneficiary designation shall revoke the most recent designation, and the last designation received
by the Administrator while the Participant is alive shall be given effect. If a Participant
designates a Beneficiary without providing in the designation that the Beneficiary must be living
at the time of distribution, the designation shall vest in the Beneficiary all of the distribution
payable after the Participant’s death, and any distributions remaining upon the Beneficiary’s death
shall be made to the Beneficiary’s estate. If there is no valid beneficiary designation in effect
at the time of the Participant’s death, in the event the Beneficiary does not survive the
Participant, or in the event that the beneficiary designation provides that the Beneficiary must be
living at the time of each distribution and such designated Beneficiary does not survive to a
distribution date, the Participant’s estate will be deemed the Beneficiary and will be entitled to
receive payment. If a Participant designates his spouse as a Beneficiary, such beneficiary
designation automatically shall become null and void on the date the Administrator receives notice
of the Participant’s divorce or legal separation.

          Section 9.3.  Participant Rights Unsecured.

          (a) Unsecured Claim. The right of a Participant or his Beneficiary to receive a
distribution hereunder shall be an unsecured claim, and neither the Participant nor any Beneficiary
shall have any rights in or against any amount credited to his Account or any other specific assets
of the Company or a subsidiary. The right of a Participant or Beneficiary to the payment of
benefits under this Plan shall not be assigned, encumbered or transferred, except as

11

 

permitted under Section 6.5. The rights of a Participant hereunder are exercisable during the Participant’s
lifetime only by him or his guardian or legal representative.

          (b) Contractual Obligation. The Company may authorize the creation of a trust or
other arrangements to assist it in meeting the obligations created under the Plan, subject to the
restrictions on funding such trust or arrangement imposed by Code Sections 409A(b)(2) or (3).
However, any liability to any person with respect to the Plan shall be based solely upon any
contractual obligations that may be created pursuant to the Plan. No obligation of the Company
shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the
Company or any subsidiary. Nothing contained in this Plan and no action taken pursuant to its
terms shall create or be construed to create a trust of any kind, or a fiduciary relationship
between the Company and any Participant or Beneficiary, or any other person.

          Section 9.4.  Amendment or Termination of the Plan.

          (a)         Amendment. The Committee may at any time amend the Plan, including
but not
limited to modifying the terms and conditions applicable to (or otherwise eliminating) Deferrals to
be made on or after the amendment date to the extent permitted by Code Section 409A; provided,
however, that no amendment may reduce or eliminate any Account balance accrued to the date of such
amendment (except as such Account balance may be reduced as a result of investment losses allocable
to such Account) without a Participant’s consent except as otherwise specifically provided herein;
and provided further that the Board must approve any amendment that expands the class of
individuals eligible for participation under the Plan, that materially increases the benefits
provided hereunder, or that is required to be approved by the Board by any applicable law or the
listing requirements of the national securities exchange upon which the Company’s common stock is
then traded. In addition, the Administrator may at any time amend the Plan to make administrative
changes and changes necessary to comply with applicable law.

          (b)         Termination. The Committee may terminate the Plan in accordance
with the
following provisions. Upon termination of the Plan, any deferral elections then in effect shall be
cancelled to the extent permitted by Code Section 409A. Upon termination of the Plan, the
Committee may authorize the payment of all amounts accrued under the Plan in an single sum payment
without regard to any distribution election then in effect, only in the following circumstances:

	 	(1)	 	The Plan is terminated within twelve (12) months of a corporate
dissolution taxed under Code Section 331, or with the approval of a bankruptcy
court pursuant to 11 U.S.C. §503(b)(1)(A). In such event, the single sum
payment must be distributed by the latest of: (A) the last day of the calendar
year in which the Plan termination occurs, (B) the first calendar year in which
the amount is no longer subject to a substantial risk of forfeiture, or (C) the
first calendar year in which payment is administratively practicable.

12

 

	 	(2)	 	The Plan is terminated at any other time, provided that such
termination does not occur proximate to a downturn in the financial health of
the Company or an Affiliate, and all other plans required to be aggregated with
this Plan under Code Section 409A are also terminated and liquidated. In such
event, the single sum payment shall be paid no earlier than twelve (12) months
(and no later than twenty-four (24) months) after the date of the Plan’s
termination. Notwithstanding the foregoing, any payment that would otherwise
be paid during the twelve (12)-month period beginning on the Plan termination
date pursuant to the terms of the Plan shall be paid in accordance with such
terms. In addition, the Company or any Affiliate shall be prohibited from
adopting a similar arrangement within three (3) years following the date of the
Plan’s termination.

          Section 9.5.  Restrictions to Comply with Applicable Law. All transactions under
the Plan are intended to comply with all applicable conditions of Rule 16b-3 under the Exchange
Act. The Committee and the Administrator shall administer the Plan so that transactions under the
Plan will be exempt from or comply with Section 16 of the Exchange Act, and shall have the right to
restrict or rescind any transaction, or impose other rules and requirements, to the extent it deems
necessary or desirable for such exemption or compliance to be met.

          Section 9.6.  Administrative Expenses. Costs of establishing and administering
the Plan will be paid by the Company.

          Section 9.7.  Successors and Assigns. This Plan shall be binding upon and inure
to the benefit of the Company, its successors and assigns and the Participants and their heirs,
executors, administrators and legal representatives.

          Section 9.8.  Governing Law; Limitation on Actions; Dispute Resolution.

	 	(a)	 	Governing Law. This Plan and the rights and obligations hereunder shall be
governed by and construed in accordance with the internal laws of the State of Wisconsin
(excluding any choice of law rules that may direct the application of the laws of another
jurisdiction).
	 
	 	(b)	 	Arbitration.
	 
	 	(1)	 	Application. If a Participant or Beneficiary brings a
claim that relates to benefits under this Plan, regardless of the basis of the
claim, such claim shall be settled by final binding arbitration in accordance
with the rules of the American Arbitration Association (“AAA”) and judgment
upon the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof.
	 
	 	(2)	 	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

13

 

	 	 	 	events giving rise to the complaint. However, this time frame may
be extended if the applicable statute of limitations 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.
	 
	 	(3)	 	Compliance with Personnel Policies. Before proceeding
to arbitration on a complaint, the Participant or Beneficiary must initiate and
participate in any complaint resolution procedure identified in the Company’s
personnel policies. If the claimant has not initiated the complaint resolution
procedure before initiating arbitration on a complaint, the initiation of the
arbitration shall be deemed to begin the complaint resolution procedure. No
arbitration hearing shall be held on a complaint until any applicable Company
complaint resolution procedure has been completed.
	 
	 	(4)	 	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 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.
	 
	 	(5)	 	Representation and Costs. Each party may be
represented in the arbitration by an attorney or other representative selected
by the party. The Company shall be responsible for its own costs, the AAA
filing fee and all other fees, costs and expenses of the arbitrator and AAA for
administering the arbitration. The claimant shall be responsible for his
attorney’s or representative’s fees, if any. However, if any party prevails on
a statutory claim which allows the prevailing party costs and/or attorneys’
fees, the arbitrator may award costs and reasonable attorneys’ fees as provided
by such statute.

14

 

	 	(6)	 	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.
	 
	 	(7)	 	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.

15

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