Document:

exv10ws

 

Exhibit 10.S

JOHNSON CONTROLS, INC.

EXECUTIVE DEFERRED COMPENSATION PLAN

ARTICLE 1.

PURPOSE AND DURATION

     Section 1.1. Purpose. The Johnson Controls, Inc. Executive Deferred Compensation Plan (the “Plan”) permits certain
employees of the Company and its Affiliates to defer amounts otherwise payable or shares
deliverable under separate bonus or equity plans or programs maintained by the Company or an
Affiliate.

     Section 1.2. Duration. The Plan was originally effective on October 1, 2001, as a consolidation of the deferral
features of various separate plans. The Plan was most recently amended and restated effective as
of January 1, 2005. The Plan shall remain in effect until terminated by the Board pursuant to
Section 9.5.

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 6.4.

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

     (g) “Change of Control” has the meaning ascribed in Section 8.3.

 

 

     (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 Compensation Committee of the Board, which shall consist of not less
than two members of the Board, each of whom is also a director of the Company and qualifies as a
“non-employee director” for purposes 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 or as
required by the Plan, to the Participant’s Account in lieu of the payment in cash thereof, or the
issuance of Shares with respect thereto. Deferrals include the following:

(1) Annual Incentive Deferrals: A deferral of all or a portion of a
Participant’s performance cash award under the annual incentive
portion of the Johnson Controls, Inc. Annual and Long-Term Incentive
Performance Plan (or any successor plan thereto) and, with the
consent of the Administrator, any other annual bonus plan maintained
by the Company or an Affiliate.

(2) Long-Term Incentive Deferrals: A deferral of all or a portion
of a Participant’s performance cash award under the long-term
incentive portion of the Johnson Controls, Inc. Annual and Long-Term
Incentive Performance Plan (or any successor plan thereto) and, with
the consent of the Administrator, any other multi-year bonus plan
maintained by the Company or an Affiliate.

(3) Share Deferrals: A deferral of the Shares that would otherwise
be issuable to a Participant in the form of restricted stock under
any plan of the Company providing for the grant of restricted stock.

(4) Deferred Restricted Stock Dividends: A deferral of the dividends
paid on restricted shares granted under any plan of the Company
while such shares are subject to a period of restriction.

     (l) “ERISA” means the Employee Retirement Income Security Act of 1974, 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 ERISA shall be deemed to include reference to any
successor provision thereto.

     (m) “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.

     (n) “Fair Market Value” means with respect to a Share, except as otherwise provided herein,
the closing sales price on the New York Stock Exchange as of 4:00 p.m. EST on the date

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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.

     (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) “Participant” means an employee of the Company or any Affiliate who is employed in the
United States and is participating in the Company’s Stock Ownership Program, and any other employee
of the Company or any Affiliate who is selected for participation under a Company or Affiliate plan
described in paragraph (k) and who is offered the ability (or is required) to make Deferrals
hereunder. Notwithstanding the foregoing, the Committee shall limit the foregoing group of
eligible employees to a select group of management and highly compensated employees, as determined
by the Committee in accordance with ERISA. Where the context so requires, a Participant also means
a former employee entitled to receive a benefit hereunder.

     (q) “Plan Year” means the fiscal year of the Company.

     (r) “Separation from Service” means a Participant’s termination of employment from the Company
and all Affiliates, subject to the following:

(1) If a Participant takes a leave of absence from the Company or an
Affiliate for purposes of military leave, sick leave or other bona
fide leave of absence, the Participant’s employment will be deemed
to continue for the first six (6) months of the leave of absence, or
if longer, for so long as the Participant’s right to reemployment is
provided by either by statute or by contract. If the period of the
leave exceeds six (6) months and the Participant’s right to
reemployment is not provided by either statute or contract, the
Participant will be considered to have incurred a Separation from
Service on the first day of the seventh (7th) month of
the leave of absence.

(2) If a Participant provides insignificant services to the Company
or an Affiliate, the Participant will be deemed to have incurred a
Separation from Service. For this purpose, a Participant is not
considered to be providing insignificant services if he or she
provides services at an annual rate that is at least equal to twenty
percent (20%) of the services rendered by such individual, on
average, during the immediately preceding three (3) calendar years
of employment (or his or her actual period of employment if less)
and the annual remuneration for such services is at least equal to
twenty percent (20%) of the average annual remuneration earned
during the final three (3) full calendar years of employment (or his
or her actual period of employment, if less).

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(3) If a Participant continues to provide services to the Company or
an Affiliate in a capacity other than as an employee, the
Participant will not be deemed to have Separated from Service if the
Participant is providing services at an annual rate that is at least
fifty percent (50%) of the services rendered by such individual, on
average, during the immediately preceding three (3) calendar years
of employment (or his or her actual period of employment if less)
and the annual remuneration for such services is at least fifty
percent (50%) of the average annual remuneration earned during the
final three (3) full calendar years of employment (or his or her
actual period of employment if less).

     (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

     Section 3.1. Effective Date. Each individual for whom an Account is maintained under the Plan as of December 31, 2004, shall
continue in participation hereunder on January 1, 2005.

     Section 3.2. New Participants. Each employee of the Company or an Affiliate shall automatically become a Participant on the
date he makes (or is deemed to make) a deferral election under Article IV.

ARTICLE 4.

DEFERRALS OF COMPENSATION

     Section 4.1. Annual Incentive Deferrals. A Participant may elect prior to the
first day of the fiscal year of the Company or an Affiliate for which an annual incentive award is
made, to have all or a part of the amount payable under his annual incentive award (but not less
than $1,000) deferred under this Plan. A Participant’s election to defer an annual incentive award
payment shall be effective only for the award to which the election relates, and shall not carry
over from award to award. As of the first day of the fiscal year for which the award is made, the
Participant’s deferral election shall be irrevocable except as provided in Section 4.5.

     Section 4.2. Long-Term Incentive Deferrals. A Participant who has been awarded a long-term incentive award may elect, prior to the first day
of the final year of the performance period for such award (whether a calendar year or the fiscal
year of the Company or an Affiliate, as applicable), to have all or a part of the amount payable
under his long-term incentive award (but not less than $1,000) deferred under this Plan. A
Participant’s election to defer a long-term incentive payment shall be effective only for the award
to which the election relates, and shall not carry over from award to award. As of the first day
of the final fiscal year of the performance period for such award, the Participant’s deferral
election shall be irrevocable except as provided in Section 4.5.

     Section 4.3. Deferral of Restricted Stock. A Participant may elect prior to or within the first thirty (30) days following the date the
Company grants share of restricted stock to defer all or any portion of the restricted stock
awarded to such Participant; provided the first vesting date for such restricted stock award is
thirteen (13) months from the grant date. A Participant’s election to defer restricted stock shall
be effective only for the Shares to which the election relates, and shall not carry over from award
to award. Share Deferrals shall be subject to the same risk of forfeiture as the restricted shares
to which such Deferrals relate. As of the date on which the shares of restricted stock would have
been granted, the Participant’s deferral election shall be irrevocable except as provided in
Section 4.5; provided that, if the Share Deferrals vest within thirteen (13) months following the
date of grant of the restricted stock, then if and to the extent required by Code Section 409A,
such deferral election shall be cancelled and the restricted stock shall be delivered to the
Participant on such vesting date.

     Section 4.4. Deferral of Dividends on Restricted Stock. All cash dividends paid with respect to restricted stock granted by the Company to a Participant
while such stock is subject to

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a period of restriction shall be automatically deferred as Deferred
Restricted Stock Dividends. Deferred Restricted Stock Dividends shall be subject to the same risk
of forfeiture as the restricted shares to which such Deferrals relate.

     Section 4.5. Cancellation of Deferral Elections. If a Participant receives a
distribution due to an Unforeseeable Emergency and requests cancellation of his or her deferral
elections under Section 4.1, 4.2 or 4.3, or if the Administrator determines that such deferral
elections 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.
Likewise, if required for the Participant to receive a hardship distribution under the Johnson
Controls Savings and Investment (401k) Plan (or any successor plan thereto), or any other 401(k)
plan maintained by the Company or an Affiliate, the Participant’s deferral election(s) shall be
cancelled. A Participant whose deferral election(s) are cancelled pursuant to this Section 4.5 may
make a new deferral election under Sections 4.1, 4.2 or 4.3 with respect to future incentive awards
or restricted stock awards, as applicable, unless otherwise prohibited by the Administrator.

     Section 4.6. 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 Share Deferrals and Deferred
Restricted Stock Dividends shall be automatically 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 in
whole increments of one percent (1%) from time to time as prescribed by the Administrator; provided
that prior to November 15, 2006, Share Deferrals and Deferred Restricted Stock Dividends shall not
be eligible for re-allocation out of the Share Unit Account. On and after November 15, 2006,
Shares Deferrals and Deferred Restricted Stock Dividends that are vested may be re-allocated our 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, 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, the
Participant’s Account (to the extent the Plan does not require Deferrals to be allocated to the
Share Unit 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).

     On each Valuation Date, the Administrator (or its designee) shall credit the deemed investment
experience with respect to the selected (or required) Investment Options to each

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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. Allocations to Investment Options.

     (a) Incentive Deferrals. Annual and Long-Term Incentive 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.

     (b) Share Deferrals. Share Deferrals will be credited to a Participant’s Share Unit
Account as of the date the Participant would have otherwise been issued shares of restricted stock.

     (c) Deferred Restricted Stock Dividends. Whenever the Company declares a cash
dividend on its Shares at a time when a Participant is deemed to have Deferred Restricted Stock
Dividends, a dividend award shall be made to such Participant as of the date the dividend is paid
to the Company’s shareholder. The dividend award for a Participant shall be determined by
multiplying the number of restricted shares held by such Participant on the date the dividend is
declared by the amount or Fair Market Value of the dividend paid on one Share. All such dividend
awards shall be credited to a Participant’s Share Unit Account as of the date of the dividend
payment.

     Section 5.3. 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 9.2, 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 5.3 to
Participants who are not subject to Section 16 of the Exchange Act.

     Section 5.4. 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 or any Affiliate to fund such
benefits. In any event, the Company or an Affiliate 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.

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ARTICLE 6.

DISTRIBUTION OF ACCOUNTS

     Section 6.1. Form of Distribution . A Participant, at the time he makes an initial deferral election under the Plan pursuant to any
provision of Article 4, may elect the form of distribution with respect to each of the following
sub-accounts:

     (a) Annual Incentive Deferrals, including interest, earnings or losses thereon.

     (b) Long-Term Incentive Deferrals, including interest, earnings or losses thereon.

     (c) Share Deferrals, as adjusted for gains or losses thereon.

     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 with respect to a particular subaccount, payment shall be made in ten (10) annual
installments.

     No election shall be made with respect to Deferred Restricted Stock Dividends, which are
automatically paid in a lump sum when the related restricted shares vest.

     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) Payment of Deferred Restricted Stock Dividends. Notwithstanding anything herein
to the contrary, the portion of the Participant’s Share Unit Account that is related to Deferred
Restricted Stock Dividends shall be paid to the Participant at the time the shares of restricted
stock to which such deferrals relate are no longer subject to a period of restriction.

     (c) Earlier Distribution. Notwithstanding the foregoing, a distribution may be made
prior to the date specified in subsection (a) or (b) above 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

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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,

(1) for those Participants whose Separation from Service occurs from
January 1 through June 30 of a year, payment shall be made in the
first calendar quarter of the following year, and

(2) for those Participants whose Separation from Service occurs from
July 1 through December 31 of a year, payment shall be made in the
third calendar quarter of the following year.

     The lump sum payment shall equal the balance of the Participant’s Account as of the Valuation
Date immediately preceding the distribution date. Notwithstanding the foregoing, the portion of
the Participant’s Share Unit Account related to Deferred Restricted Stock Dividends shall be paid
as provided in Section 6.2(b).

     (b) Installments. If payment is to be made in annual installments, the first annual
payment shall be made:

(1) for those Participants whose Separation from Service occurs from
January 1 through June 30 of a year, in the first calendar quarter
of the following year, and

(2) for those Participants whose Separation from Service occurs
during the period from July 1 through December 31 of a year, in the
third calendar quarter of the following year.

     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 at
distribution date is less than fifty thousand dollars ($50,000) during the payout period, the

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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. 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 was 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 the distribution payable after the Participant’s death,
and such distribution if not paid by the Beneficiary’s death shall be made to the Beneficiary’s
estate. In the event there is no valid beneficiary designation in effect at the time of the
Participant’s death, in the event the Participant’s designated 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 distribution and such designated Beneficiary does not survive to the
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 6.5. Distribution in Event of Unforeseeable Emergency. If requested by a Participant while in the employ of the Company or an Affiliate 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

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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 6.6. 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.

     Section 6.7. Offset. The Company or Affiliate 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 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

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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 Account 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 8.3(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:

     (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”),

12

 

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.

     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.

13

 

     Section 8.3. Maximum Payment Limitation.

     (a) Limit on Payments. Except as provided in subsection (b) below, if any portion of
the payments or benefits described in this Plan or under any other agreement with or plan of the
Company or an Affiliate (in the aggregate, “Total Payments”), would constitute an “excess parachute
payment”, then the Total Payments to be made to the Participant shall be reduced such that the
value of the aggregate Total Payments that the Participant is entitled to receive shall be one
dollar ($1) less than the maximum amount which the Participant may receive without becoming subject
to the tax imposed by Section 4999 of the Code or which the Company may pay without loss of
deduction under Section 280G(a) of the Code; provided that this Section shall not apply in the case
of a Participant who has in effect a valid employment contract providing that the Total Payments to
the Participant shall be determined without regard to the maximum amount allowable under Section
280G of the Code. The terms “excess parachute payment” and “parachute payment” shall have the
meanings assigned to them in Section 280G of the Code, and such “parachute payments” shall be
valued as provided therein. Present value shall be calculated in accordance with Section 280G(d)(4) of the Code. Within forty (40) days
following delivery of notice by the Company to the Participant of its belief that there is a
payment or benefit due the Participant which will result in an excess parachute payment, the
Participant and the Company, at the Company’s expense, shall obtain the opinion (which need not be
unqualified) of nationally recognized tax counsel selected by the Company’s independent auditors
and acceptable to the Participant in his sole discretion (which may be regular outside counsel to
the Company), which opinion sets forth (1) the amount of the Base Period Income, (2) the amount and
present value of Total Payments and (3) the amount and present value of any excess parachute
payments determined without regard to the limitations of this Section. As used in this Section,
the term “Base Period Income” means an amount equal to the Participant’s “annualized includible
compensation for the base period” as defined in Section 280G(d)(1) of the Code. For purposes of
such opinion, the value of any noncash benefits or any deferred payment or benefit shall be
determined by the Company’s independent auditors in accordance with the principles of Sections
280G(d)(3) and (4) of the Code, which determination shall be evidenced in a certificate of such
auditors addressed to the Company and the Participant. Such opinion shall be addressed to the
Company and the Participant and shall be binding upon the Company and the Participant. If such
opinion determines that there would be an excess parachute payment, the payments hereunder that are
includible in Total Payments or any other payment or benefit determined by such counsel to be
includible in Total Payments shall be reduced or eliminated as specified by the Participant in
writing delivered to the Company within thirty days of his receipt of such opinion or, if the
Participant fails to so notify the Company, then as the Company shall reasonably determine, so that
under the bases of calculations set forth in such opinion there will be no excess parachute
payment. If such legal counsel so requests in connection with the opinion required by this
Section, the Participant and the Company shall obtain, at the Company’s expense, and the legal
counsel may rely on in providing the opinion, the advice of a firm of recognized executive
compensation consultants as to the reasonableness of any item of compensation to be received by the
Participant. If the provisions of Sections 280G and 4999 of the Code are repealed without
succession, then this Section shall be of no further force or effect.

     (b) Employment Contract Governs. The provisions of subsection (a) above shall not
apply to a Participant whose employment is governed by an employment contract that provides for
Total Payments in excess of the limitation described in subsection (a) above.

14

 

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 all determinations affecting Participants who are subject to Section
16 of the Exchange Act shall be made by the full Board, and all determinations affecting
other Participants shall be made by the Board or an officer of the Company or other committee
appointed by the Board (with the assistance of the Administrator). 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 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; (4) make appropriate determinations, including factual determinations, and calculations; and
(5) prepare all reports required by law. 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 such delegation, references to the Committee
or Administrator herein shall mean such delegatee.

     (c) Decisions Binding. The Committee’s and Administrator’s determinations shall be
final and binding on all parties with an interest hereunder, unless determined to be arbitrary and
capricious.

     (d) Procedures of the Committee. 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 consent, which sets forth the action, is signed by each member 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.

15

 

     (e) Indemnification. Service on the Committee or as an 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. 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 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 9.3. Claims Procedures.

     (a) Initial Claim. If a Participant or Beneficiary (the “claimant”) believes that he
is entitled to a benefit under the Plan that is not provided, the claimant or his legal
representative shall file a written claim for such benefit with the Committee within one hundred
and eighty (180) days from the date the claimant receives the distribution giving rise to the claim
or knows of the facts giving rise to the claim. The Committee shall review the claim within ninety
(90) days following the date of receipt of the claim; provided that the Committee may determine
that an additional ninety (90)-day extension is necessary due to circumstances beyond the
Committee’s control, in which event the Committee shall notify the claimant prior to the end of the
initial period that an extension is needed, the reason therefor and the date by which the Committee
expects to render a decision. If the claimant’s claim is denied in whole or part, the Committee
shall provide written notice to the claimant of such denial. The written notice shall include:
the specific reason(s) for the denial; reference to specific Plan provisions upon which the denial
is based; a description of any additional material or information necessary for the claimant to
perfect the claim and an explanation of which such material or information is necessary; and a
description of the Plan’s review procedures (as set forth in subsection (b)) and the time limits
applicable to such procedures, including a statement of the claimant’s right to bring a civil
action under section 502(a) of ERISA following an adverse determination upon review.

     (b) Request for Appeal. The claimant has the right to appeal the Committee’s decision
by filing a written appeal to the Committee within sixty (60) days after claimant’s receipt of the
decision or deemed denial. The claimant will have the opportunity, upon request and free of
charge, to have reasonable access to and copies of all documents, records and other information
relevant to the claimant’s appeal. The claimant may submit written comments, documents, records
and other information relating to his claim with the appeal. The Committee will review all
comments, documents, records and other information submitted by the claimant relating to the claim,
regardless of whether such information was submitted or considered in the initial claim
determination. The Committee shall make a determination on the appeal within sixty (60) days after
receiving the claimant’s written appeal; provided that the Committee may determine that an
additional sixty (60)-day extension is necessary due to circumstances beyond the Committee’s
control, in which event the Committee shall notify the claimant prior to the end

16

 

of the initial
period that an extension is needed, the reason therefor and the date by which the Committee expects
to render a decision. If the claimant’s appeal is denied in whole or part, the Committee shall
provide written notice to the claimant of such denial. The written notice shall include: the
specific reason(s) for the denial; reference to specific Plan provisions upon which the denial is
based; a statement that the claimant is entitled to receive, upon request and free of charge,
reasonable access to and copies of all documents, records, and other information relevant to the
claimant’s claim; and a statement of the claimant’s right to bring a civil action under
section 502(a) of ERISA. If the claimant does not receive a written decision within the time
period(s) described above, the appeal shall be deemed denied on the last day of such period(s).

     (c) ERISA Fiduciary. For purposes of ERISA, the Committee shall be considered the
named fiduciary under the Plan and the plan administrator.

     Section 9.4. 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 an Affiliate. 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 6.4. 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 or an Affiliate 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 or
an Affiliate shall be deemed to be secured by any pledge of, or other encumbrance on, any property
of the Company or any Affiliate. 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 or an Affiliate and any Participant or Beneficiary, or any other person.

     Section 9.5. Amendment or Termination of 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 under the Plan 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.

17

 

     (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 9.6. Administrative Expenses. Costs of establishing and administering the Plan will be paid by the Company and its
participating Affiliates.

18

 

     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 is intended to be a plan of deferred compensation
maintained for a select group of management or highly compensated employees as that term is used in
ERISA, and shall be interpreted so as to comply with the applicable requirements thereof. In all
other respects, the Plan is to be construed and its validity determined according to the laws of
the State of Wisconsin (without reference to conflict of law principles thereof) to the extent such
laws are not preempted by federal law.

     (b) Limitation on Actions. Any action or other legal proceeding with respect to the
Plan may be brought only after the claims and appeals procedures of Section 9.3 are exhausted and
only within period ending on the earlier of (1) one year after the date claimant receives notice or
deemed notice of a denial upon appeal under Section 9.3(b), or (2) the expiration of the applicable
statute of limitations period under applicable federal law. Any action or other legal proceeding
not adjudicated under ERISA must be arbitrated in accordance with the provisions of subsection (c).

     (c) Arbitration.

(1) Application. Notwithstanding any employee agreement in
effect between a Participant and the Company or any Affiliate
employer, if a Participant or Beneficiary brings a claim that
relates to benefits under this Plan that is not covered under ERISA,
and regardless of the basis of the claim (including but not limited
to, actions under Title VII, wrongful discharge, breach of
employment agreement, etc.), 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 limitation provides for a longer period of
time. If the complaint is not properly submitted within the
appropriate time frame, all rights and claims that the
complaining party has or may have against the other party shall be
waived and void. Any notice sent to the Company shall be delivered
to:

19

 

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 or Affiliate’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 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 or Affiliate 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

20

 

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.

21

 

ADDENDUM

SPECIAL TRANSITION RULES

	 	 	Pursuant to the provisions of Notice 2005-1:
	 
	1.	 	In reliance on the 6-month advance deferral election for performance-based compensation, the
Company provided each Participant with an opportunity to file a new deferral election by March
31, 2005, with respect to each of such Participant’s Annual and Long-Term Incentive Awards
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 each of his Annual Incentive Deferrals sub-account,
Long-Term Incentive Deferrals sub-account and Share Deferrals sub-account. The new
distribution election allowed the Participant to select a lump sum or up to ten (10) annual
installments for each of his sub-accounts. The distribution election received by the
Administrator as of December 31, 2005 is irrevocable.
	 
	3.	 	The Company permitted the following individuals to cancel participation in the Plan and
receive a lump sum payout in 2005 of his Account Balance: John Fiori

22exv10wt

 

Exhibit 10.T

JOHNSON CONTROLS, INC.

2003 STOCK PLAN

FOR OUTSIDE DIRECTORS

	1.	 	Establishment. JOHNSON CONTROLS, INC. (the “Company”) hereby establishes a plan for
the members of its Board of Directors who are not officers or employees of the Company or any
of its subsidiaries (“Outside Directors”), as described herein, which shall be known as the
JOHNSON CONTROLS, INC. 2003 STOCK PLAN FOR OUTSIDE DIRECTORS (the “Plan”). This Plan is
amended and restated as of October 1, 2006.
	 
	2.	 	Purpose. The purpose of the Plan is to advance the Company’s growth and success and
to advance its interests 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 efforts for the
long-term success of the Company’s business.
	 
	3.	 	Effective Date of the Plan. The effective date of the Plan is October 1, 2003,
subject to its approval by the shareholders of the Company at the annual meeting to be held on
January 28, 2004.
	 
	4.	 	Stock Subject to the Plan. Subject to adjustment in accordance with the provisions
of Section 8, the total number of shares of common stock of the Company (“Common Stock”),
available for awards under this Plan shall not exceed 80,000 shares. Shares of Common Stock
to be delivered under the Plan shall be made available from presently authorized but unissued
Common Stock or authorized and issued shares of Common Stock
reacquired and held as treasury shares, or a combination thereof.
	 
	5.	 	Administration.

	 	(a)	 	The Plan shall be administered by the Corporate Governance Committee (the
“Committee”) of the Board of Directors.
	 
	 	(b)	 	Subject to the express provisions of the Plan, the Committee shall have
authority to interpret the Plan, to the extent provided by law.
	 
	 	(c)	 	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 attorney’s fees) arising from any act, omission, interpretation,
construction or determination made in connection with the Plan to the full extent
permitted by law and under any directors and officers liability insurance that may be
in effect from time to time.
	 
	 	(d)	 	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.	 	Grants of Common Stock. Each Outside Director shall be granted Common Stock as
follows:

	 	(a)	 	Initial Grants [prior to October 1, 2006]. On and after January 28,
2004 [and prior to October 1, 2006], any individual, other than an individual who was
serving on the Board of Directors prior to that date, who is elected or appointed to
the Board of Directors as an Outside Director shall be granted 800 shares of Common
Stock upon such Director’s election or appointment.
	 
	 	(b)	 	Subsequent Grants prior to October 1, 2006. On January 28, 2004 and on
the date of each subsequent annual meeting of shareholders of the Company (“Grant
Date”) that occurs prior to October 1, 2006, an Outside Director, if elected,
re-elected or retained as an Outside Director at such meeting, shall be granted such
number of shares of Common Stock, rounded down to the nearest whole share, whose value
on the Grant Date shall equal fifty (50) percent of the annual retainer fee voted by
the Board of Directors, exclusive of any meeting or committee fees. The value of a
share of Common Stock on the Grant Date means the closing sales price 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. The remaining
percent of the annual retainer fee, both for Outside Directors serving on January 28,
2004 and Outside Directors who may begin serving on the Board of Directors thereafter,
shall be paid in cash at that time less any required withholdings for taxes and related
charges. Prior to October 1, 2006, Directors elected during the year shall be granted
a proportionate share of the annual retainer fee at the time of their election, with
fifty (50) percent each in Common Stock and cash as set forth above. The Committee
shall have the right to reduce the percentage of the retainer fee to be paid in Common
Stock in any calendar year, provided that such reductions may be made only one time in
each calendar year.
	 
	 	(c)	 	Grants on and after October 1, 2006. Effective October 1, 2006, an
Outside Director in office on November 15, 2006, and thereafter, an Outside Director in
office on the first business day coincident with or following the first day of each
calendar quarter (each, a “Grant Date”), shall be granted such number of shares of
Common Stock, rounded down to the nearest whole share, whose value on the Grant Date
shall equal fifty percent (50%) of the aggregate fees voted by the Board of Directors
to be paid to such director on such date. The value of a share of Common Stock on the
Grant Date means the closing sales price 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.
The remaining fifty percent (50%) of the aggregate fees to be paid to such director
shall be paid in cash on the Grant Date. The Committee shall have the right to reduce
the percentage of the fees to be paid in Common Stock in any fiscal year.
	 
	 	(d)	 	Deferral of Grants. An Outside Director may defer receipt of all or
any portion of the Common Stock and/or cash received pursuant to Section 6(b) or (c) in
accordance with the terms and conditions of the Johnson Controls, Inc. Deferred

2

 

	 	 	 	Compensation Plan for Certain Directors (the “Deferred Compensation Plan”). An
Outside Director may not defer receipt of any portion of the Common Stock received
pursuant to Section 6(a).

	7.	 	Termination of Service as Outside Director. If an Outside Director ceases to serve
on the Board of Directors, then all rights to receive Common Stock hereunder shall terminate
immediately.
	 
	8.	 	Adjustment Provisions. In the event of any change in the shares of the Common Stock
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 of shares available under
this Plan shall be appropriately adjusted by the Committee, using the same standards and/or
formulas as it uses in making adjustments under the Johnson Controls, Inc. 2000 Stock Option
Plan and, upon its approval by the Company’s shareholders, the Johnson Controls, Inc. 2007
Stock Option Plan.
	 
	9.	 	Termination and Amendment of Plan. The Board of Directors (acting through the
Committee to the extent permitted by law) may at any time terminate the Plan and may amend the
Plan, not more often than once in any six month period, 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 with any requirements
of 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, under Rule 16b-3 or the rules of the New York Stock Exchange,
require such approval.
	 
	10.	 	Rights as a Shareholder. An Outside Director shall have no rights as a shareholder
with respect to Common Stock granted under this Plan until the date of issuance of the stock
certificate to him or her. No adjustment will be made for dividends or other rights for which
the record date is prior to the date such Common Stock is issued. All dividends and voting
rights accrue as of the Grant Date to the Outside Director.
	 
	11.	 	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 Internal
Revenue Code or the laws of the United States.
	 
	12.	 	Unfunded Plan. This Plan shall be unfunded. No person shall have any rights greater
than those of a general creditor of the Company.

3

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