Document:

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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, 2005. 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).

     (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 6.5.

     (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 9.9.

     (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, 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 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.

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

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     (r) “Separation from Service” means the cessation of service as a Board member, for any
reason, provided the cessation of service is a good-faith and complete termination of the
relationship with the Company. If, at the time of the cessation of service, the Participant
anticipates a significant contractual relationship with the Company as a consultant or becoming an
employee, then such cessation of service as a Board member does not constitute a good-faith and
complete termination of the relationship with the Company.

     (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) “Unforeseeable Emergency” means a severe financial hardship of the Participant, resulting
from any of the following:

(1) an illness or accident of the Participant, his or her spouse or
dependent (as defined in Code Section 152(a));

(2) a loss of the Participant’s property due to casualty (including
the need to rebuild a home following damage to a home not otherwise
covered by insurance, for example, as a result of a natural
disaster); or

(3) other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant,
as determined by the Administrator.

     (w) “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.

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ARTICLE 3.

PARTICIPATION

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

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 defer all or any portion of his compensation as
a director which is otherwise payable by the Company for services provided after the first day of
the calendar quarter that follows the date of the 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 Plan Year,
except as provided in Section 4.2.

Any such compensation deferred pursuant to a valid election shall be credited by the Company to the
Participant’s Account at the time it would have otherwise been paid to the Participant (whether in
cash or Shares).

     Section 4.2. Cancellation of Deferral Elections. If a Participant receives a
distribution due to an Unforeseeable Emergency and requests cancellation of his or her deferral
election under Section 4.1, or if the Administrator determines that such deferral election must be
cancelled in order for the Participant to receive a distribution due to an Unforeseeable Emergency,
then the Participant’s deferral election(s) shall be cancelled. A Participant whose deferral
election is cancelled pursuant to this Section 4.2 may make a new deferral election under Sections
4.1 with respect to future fees, unless otherwise prohibited by the Administrator. 

     Section 4.3. 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 at the time of enrollment in the
Plan in whole increments of one percent (1%). A Participant may also elect to reallocate his or
her Account, and may elect to allocate any future Deferrals, among the various Investment Options

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in whole increments of one percent (1%) from time to time as prescribed by the Administrator;
provided that any deferral of Shares shall not be eligible for re-allocation out of the Share Unit
Account. 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. 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 designee shall credit the deemed investment
experience with respect to the selected Investment Options to each Participant’s Account.

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

     Section 5.2. 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 9.3, 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. In any event, the Company may, in its
discretion, set aside assets equal to part or all of such Account balances and invest such assets
in Company stock, life insurance or any other investment deemed appropriate. Any such assets,
including Company stock, shall be and remain the sole property of the employer that set aside such
assets, and a Participant shall have no proprietary rights of any nature whatsoever with respect to
such assets.

ARTICLE 6.

DISTRIBUTION

     Section 6.1. General. A Participant, at the time he makes an initial Deferral
election under the Plan, may elect the form of distribution with respect to his Account. Such
election

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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.

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

     (b) Earlier Distribution. Notwithstanding the foregoing, a distribution may be made
prior to the date specified in subsection (a) as follows:

(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 as soon as practicable after the date the Plan fails to
meet the requirements of Code Section 409A, of the amount required
to be included in the Participant’s income as a result of such
failure.

(2) If an amount under the Plan is required to be immediately
distributed in a lump sum under a domestic relations order within
the meaning of Code Section 414(p)(1)(B), it may be distributed
according to the terms of such order, provided the Participant holds
the Administrator harmless with respect to such distribution. The
Plan shall not distribute amounts required to be distributed under a
domestic relations order other than in the limited circumstance
specifically stated herein.

     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.

     (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.

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          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 at any
distribution date is less than fifty thousand dollars ($50,000) during the payout period, the
remaining balance shall be paid in the form of a lump sum on (or as soon as practicable following)
such distribution date.

(c) Delay in Payment. Notwithstanding the foregoing, a distribution may be delayed
beyond the date it would have otherwise been paid under subsection (a) or (b) in the
following circumstances:

(1) If the distribution will violate the terms of a loan agreement
or other similar contract to which the Company or an Affiliate, as
applicable, is a party, and if any such violation will cause
material harm to the Company or Affiliate, the distribution shall be
delayed until the first date that a violation will not occur or the
violation will not cause material harm to the Company or an
Affiliate.

(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.

     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 such
Account shall be forfeited as of the date the Committee determines the Participant has engaged in
Inimical Conduct. The Committee may suspend 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.

     (a) Distribution. In the event of the Participant’s death prior to receiving all
payments due hereunder, the balance of the Participant’s Account shall be paid to the Participant’s
Beneficiary in a lump sum as soon as practicable after the Participant’s death.

     (b) 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

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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 6.6. Distribution in Event of Unforeseeable Emergency. If requested by a
Participant while an Outside Director and if the Administrator determines that an Unforeseeable
Emergency has occurred, all or part of the Participant’s vested Account may be paid out to the
Participant in a cash lump sum. The amount to be distributed to the Participant shall only be such
amount as is needed to alleviate the Participant’s Unforeseeable Emergency, including any Federal,
state or local income taxes or penalties reasonably anticipated to result from the distribution,
after taking into account the extent to which the emergency is or may be relieved through
reimbursement or compensation from insurance or otherwise, by liquidation of the Participant’s
assets (to the extent such liquidation would not itself cause a severe financial hardship), or by
cessation of deferrals under the Plan.

     Section 6.7. 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.

     Section 6.8. Offset. The Company shall have the right to offset from any amount
payable hereunder any amount that the Participant owes to the Company or any Affiliate without the
consent of the Participant (or his Beneficiary, in the event of the Participant’s death).

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 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

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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
individual shall have any right to receive a distribution of Company stock under this Plan. All
distributions from the 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, 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 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-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.

     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:

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

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     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 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 its discretion, delegate any or all of its 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 delegatee. 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
delegatee of the Committee or the Administrator shall also be a Participant or Beneficiary, any
determinations affecting the delegatee’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 it deems necessary for the proper administration of its respective
duties 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 over any contrary action of the
Administrator. The Committee or Administrator may delegate its ministerial duties to a third party
and to the extent of such delegation, references to the Committee or Administrator hereunder shall
mean such delegatee.

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

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     (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. Participants 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 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. 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 9.3. 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; 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 employees 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.

12

 

     (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.

(1) The Committee may terminate the Plan 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),
provided that the amounts accrued under the Plan are distributed to
the Participants or Beneficiaries, as applicable, in a single sum
payment, regardless of any distribution election then in effect, in
the later of: (A) the calendar year in which the Plan termination
occurs or (B) the first calendar year in which payment is
administratively practicable.

(2) The Committee may terminate the Plan at any time during the
period that begins thirty (30) days prior and ends twelve (12)
months following a Change of Control, provided that all
substantially similar arrangements (within the meaning of Code
Section 409A) sponsored by the Company are terminated, so that all
participants under similar arrangements are required to receive all
amounts of compensation deferred under the terminated arrangements
within twelve (12) months of the date of termination of the
arrangements.

(3) The Committee may terminate the Plan at any other time. In such
event, the balance of all Accounts will be distributed to all
Participants or Beneficiaries, as applicable, in a single sum
payment mo earlier than twelve (12) months (and no later than
twenty-four (24) months) after the date of termination, regardless
of any distribution election then in effect. This provision shall
not be effective unless all other plans required to be aggregated
with this Plan under Code Section 409A are also terminated.
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 five (5) years following the date of the Plan’s termination,
unless any individual who was a Participant under this Plan is
excluded from participating thereunder for such five (5) year
period.

     Section 9.4. 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

13

 

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

     Section 9.6. 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 9.7. 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 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

14

 

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.

(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

 

ADDENDUM

SPECIAL TRANSITION RULES

Pursuant to the provisions of Notice 2005-1:

	1.	 	The Company provided each Participant with an opportunity to file a new deferral election by
March 15, 2005, with respect to any director fees that had not yet been paid as of the date
the election was filed.

	2.	 	The Company provided each Participant with an opportunity to file a new distribution election
during calendar year 2005, with respect to his Account. The new distribution election allowed
the Participant to select a lump sum or up to ten (10) annual installments for his Account.
The distribution election received by the Administrator as of December 31, 2005 is
irrevocable.

16exv10wm

 

Exhibit 10.M

JOHNSON CONTROLS, INC.

DIRECTOR SHARE UNIT PLAN

ARTICLE 1.

PURPOSE AND DURATION

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

Section 1.2. Duration. The Plan was originally effective on November 18, 1998. The Plan was most
recently amended and restated effective January 1, 2005. The provisions of the Plan as amended and
restated apply to each individual with an interest hereunder on or after January 1, 2005.

ARTICLE 2.

DEFINITIONS AND CONSTRUCTION

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

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

     (b) “Affiliate” means each entity that is required to be included in the Company’s controlled
group of corporations within the meaning of Code Section 414(b), or that is under common control
with the Company within the meaning of Code Section 414(c).

     (c) “Beneficiary” means the person or persons entitled to receive the interest of a
Participant in the event of the Participant’s death as provided in Article 7.

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

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

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

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

 

 

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

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

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

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

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

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

     (n) “Separation from Service” means the cessation of service as a Board member, for any
reason, provided the cessation of service is a good-faith and complete termination of the
relationship with the Company. If, at the time of the cessation of service, the Participant
anticipates a significant contractual relationship with the Company as a consultant or becoming an
employee, then such cessation of service as a Board member does not constitute a good-faith and
complete termination of the relationship with the Company.

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

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

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

2

 

     (r) “Unforeseeable Emergency” means a severe financial hardship of the Participant, resulting
from any of the following:

(1) an illness or accident of the Participant, his or her spouse or
dependent (as defined in Code Section 152(a));

(2) a loss of the Participant’s property due to casualty (including
the need to rebuild a home following damage to a home not otherwise
covered by insurance, for example, as a result of a natural
disaster); or

(3) other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant,
as determined by the Administrator.

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

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

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

ARTICLE 3.

ADMINISTRATION

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

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

3

 

factual determinations, and take
any other action as it determines is necessary or desirable for the Plan’s administration. Any
action taken by the Committee shall be controlling over any contrary action of the Administrator.
The Committee or Administrator may delegate its ministerial duties to a third party and to the
extent of such delegation, references to the Committee or Administrator herein shall mean such
delegatee.

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

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

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

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

ARTICLE 4.

PARTICIPATION

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

ARTICLE 5.

RETIREMENT ACCOUNTS

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

4

 

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

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

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

Section 5.3. Dividends. Whenever the Company declares a dividend on its Shares, in
cash or in property, at a time when Participants have Share Units credited to their Retirement
Accounts, a dividend award shall be made to all such Participants as of the date of payment of the
dividend.
The dividend award for a Participant shall be determined by multiplying the Share Units credited to
the Participant’s Account as of the date the dividend is declared by the amount or Fair Market
Value of the dividend paid or distributed on one Share. The dividend award shall be credited to
the Participant’s Retirement Account by converting such award into Share Units by dividing the
amount of the dividend award by the Fair Market Value of a Share on the date the dividend is paid.
Any other provision of this Plan to the contrary notwithstanding, if a dividend is declared on
Shares in the form of a right or rights to purchase shares of capital stock of the Company or of
any entity acquiring the Company, such dividend award shall not be credited to the Participant’s
Retirement Account, but each Share Unit credited to a Participant’s Retirement Account at the time
such dividend is paid, and each Share Unit thereafter credited to the Participant’s Retirement
Account at a time when such rights are attached to Shares, shall thereafter be valued as of any
point in time on the basis of the aggregate of the then Fair Market Value of one Share plus the
then Fair Market Value of such right or rights then or previously attached to one Share.

ARTICLE 6.

RULES WITH RESPECT TO SHARE UNITS

Section 6.1. Transactions Affecting Common Stock. In the event of any merger, share exchange,
reorganization, consolidation, recapitalization, stock dividend, stock split or other change in
corporate structure of the Company affecting Shares, the Administrator may make appropriate
equitable adjustments with respect to the Share Units credited to the Retirement Account of each
Participant, including without limitation, adjusting the date as of which such

5

 

units are valued
and/or distributed, as the Administrator determines is necessary or desirable to prevent the
dilution or enlargement of the benefits intended to be provided under the Plan.

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

ARTICLE 7.

PAYMENT

Section 7.1. Distributions.

     (a) Participant’s Separation from Service. A Participant’s Retirement Account shall
become payable upon the Participant’s Separation from Service, whether by death, disability,
retirement or for any other reason.

     (b) Earlier Distribution. Notwithstanding the foregoing, a distribution may be made
prior to the date specified in subsection (a) as follows:

(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 as soon as practicable after the date the Plan fails to
meet the requirements of Code Section 409A, of the amount required
to be included in the Participant’s income as a result of such
failure.

(2) If an amount under the Plan is required to be distributed 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.

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

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

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

6

 

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

          Notwithstanding the foregoing provisions, if the balance of a Participant’s Retirement Account
at any distribution date is less than $50,000 during the payout period, the
remaining balance shall be paid in the form of a lump sum on (or as soon as practicable
following) such distribution date.

     (c) Delay in Payment. Notwithstanding the foregoing, a distribution may be delayed
beyond the date it would have otherwise been paid under subsection (a) or (b) in the following
circumstances:

(1) If the distribution will violate the terms of a loan agreement
or other similar contract to which the Company or an Affiliate, as
applicable, is a party, and if any such violation will cause
material harm to the Company or Affiliate, the distribution shall be
delayed until the first date that a violation will not occur or the
violation will not cause material harm to the Company or an
Affiliate.

(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.

Section 7.4. Distribution in Event of Unforeseeable Emergency. If requested by a Participant while an
Outside Director and if the Administrator determines that an Unforeseeable Emergency has occurred,
all or part of the Participant’s Retirement Account may be paid out to the Participant in a cash
lump sum. The amount to be distributed to the Participant shall only be such amount as is needed
to alleviate the Participant’s Unforeseeable Emergency, including any Federal, state or local
income taxes or penalties reasonably anticipated to result from the distribution, after taking into
account the extent to which the emergency is or may be relieved through reimbursement or
compensation from insurance or otherwise, or by liquidation of the Participant’s assets (to the
extent such liquidation would not itself cause a severe financial hardship).

7

 

Section 7.5. Distribution of Remaining Account Following Participant’s Death.

     (a) Distribution. In the event of the Participant’s death prior to receiving all
payments due hereunder, the balance of the Participant’s Retirement Account shall be paid to the
Participant’s Beneficiary in a lump sum as soon as practicable after the Participant’s death.

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

Section 7.6. 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 sufficient to
satisfy the Company’s or Affiliate’s foreign, federal, state or local income tax withholding
obligations with respect to such deferral or payment. In addition, if prior to the date of
distribution of any amount hereunder, the Federal Insurance Contributions Act (FICA) tax imposed
under Code Sections 3101, 3121(a) and 3121(v)(2), where applicable, becomes due, the Participant’s
Retirement Account balance shall be reduced by the amount needed to pay the Participant’s portion
of such tax.

Section 7.7. Offset. The Company shall have the right to offset from any amount payable hereunder any
amount that the Participant owes to the Company or any Affiliate without the consent of the
Participant (or his Beneficiary, in the event of the Participant’s death).

ARTICLE 8.

TERMS AND CONDITIONS

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

8

 

Section 8.2. No Transfers. Except as permitted by Section 7.11, a Participant’s rights to payments
under this Plan are not subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance by a Participant or his Beneficiary, or garnishment by a
Participant’s creditors or the creditors of his or her beneficiaries, whether by operation of law
or otherwise, and any attempted sale, transfer, assignment, pledge, or encumbrance with respect to
such payment shall be null and void, and shall be without legal effect and shall not be recognized
by the Company.

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

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

ARTICLE 9.

TERMINATION AND AMENDMENT OF PLAN

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

Section 9.2. Termination. The Committee may terminate the Plan in accordance with
the following provisions.

(1) The Committee may terminate the Plan 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),
provided that the amounts accrued under the Plan are distributed to
the Participants or Beneficiaries, as applicable, in a single sum
payment, regardless of any distribution election then in effect, in
the later of: (A) the calendar year in which the Plan termination
occurs or (B) the first calendar year in which payment is
administratively practicable.

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(2) The Committee may terminate the Plan at any time during the
period that begins thirty (30) days prior and ends twelve (12)
months following a Change of Control, provided that all
substantially similar arrangements (within the meaning of Code
Section 409A) sponsored by the Company are terminated, so that all
participants under similar arrangements are required to receive all
amounts of compensation deferred under the terminated arrangements
within twelve (12) months of the date of termination of the
arrangements.

(3) The Committee may terminate the Plan at any other time. In such
event, the balance of all Accounts will be distributed to all
Participants or Beneficiaries, as applicable, in a single sum
payment mo earlier than twelve (12) months (and no later than
twenty-four (24) months) after the date of termination, regardless
of any distribution election then in effect. This provision shall
not be effective unless all other plans required to be aggregated
with this Plan under Code Section 409A are also terminated.
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 five (5) years following the date of the Plan’s termination,
unless any individual who was a Participant under this Plan is
excluded from participating thereunder for such five (5) year
period.

ARTICLE 10.

CHANGE OF CONTROL

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

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

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

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

(1) Fifty percent (50%) of the then outstanding shares of common
stock of the Company (the “Outstanding Company Common Stock”) or

(2) Thirty-five (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
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 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 60% of, respectively, the then outstanding
shares of common stock and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors is then owned beneficially, directly or
indirectly, by all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Company Voting Securities
immediately prior to such sale or disposition in substantially the same proportion as their
ownership of the Outstanding Company Common Stock and Company Voting Securities, as the case may
be, immediately prior to such sale or disposition. For purposes hereof, “a sale or other
disposition of all or substantially all of the assets of the Company” will not be deemed to

11

 

have
occurred if the sale involves assets having a total gross fair market value of less than forty
percent (40%) of the total gross fair market value of all assets of the Company immediately prior
to the acquisition. For this purpose, “gross fair market value” means the value of the assets
without regard to any liabilities associated with such assets.

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

ARTICLE 11.

SUCCESSORS

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

ARTICLE 12.

DISPUTE RESOLUTION

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

Section 12.2. Arbitration.

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

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

12

 

the complaining party has or may have against the other party shall be waived and void. Any notice
sent to the Company shall be delivered to:

Office of General Counsel

Johnson Controls, Inc.

5757 North Green Bay Avenue

P.O. Box 591

Milwaukee, WI 53201-0591

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

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

     (d) Rules of Arbitration. All arbitration will be conducted by a single arbitrator
according to the Employment Dispute Arbitration Rules of the AAA. The arbitrator will have
authority to award any remedy or relief that a court of competent jurisdiction could order or grant
including, without limitation, specific performance of any obligation created under policy, the
awarding of punitive damages, the issuance of any injunction, costs and attorney’s fees to the
extent permitted by law, or the imposition of sanctions for abuse of the arbitration process. The
arbitrator’s award must be rendered in a writing that sets forth the essential findings and
conclusions on which the arbitrator’s award is based.

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

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

13

 

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

14

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