Document:

Exhibit 10-1

Exhibit 10.1

	
				
	Notice of Grant of Stock Options
	 
	Emerson Electric Co.

	 
	8000 W Florissant Avenue / P.O. Box 4100

	and Option Agreement
	 
	St. Louis, MO 63136‐8506

	 
	314 553‐2325

	 
	 
	 
	 

	
				
	First M. Last
	 
	 
	    ID: xxx-xx-xxxx

	Address
	 
	 
	 

	City State Zip
	 
	 
	 

	Country
	 
	 
	 

	 
	 
	 
	 

Effective ______________, 20__, you have been granted an Incentive Stock Option to buy _______ shares of Emerson Electric Co. (the Company) stock at $_________ per share.

    
	
					
	Option Number:
	 
	0000000000xxx
	 
	 

	Plan:
	 
	2011
	 
	 

	 
	 
	 
	 
	 

	Grant Date:
	 
	______________
	 
	 

	Granted:
	 
	______________
	 
	 

	Grant Price:
	 
	$_____________
	 
	 

	Total Option Price of the Shares Granted:
	 
	$_____________
	 
	 

	Expiration Date:
	 
	______________
	 
	 

	Vesting Schedule:
	 
	_______ on _______________
	 
	 

	 
	 
	_______ on _______________
	 
	 

	 
	 
	_______ on _______________
	 
	 

        

        

	
					
	 	By your signature and the Company's signature below, you and the Company agree that these options are granted under and governed by the terms and conditions of the Company's Stock Option Plan as amended and the Option Agreement, all of which are attached and made a part of this document.

	 
	 	 
	 
	 
	 

Signature:  ______________________________________         Date:  ________________
Emerson Electric Co.

Signature:  ______________________________________         Date:  ________________
First M. Last

INCENTIVE STOCK OPTION AGREEMENT
UNDER
EMERSON ELECTRIC CO.
2011 STOCK OPTION PLAN

WITNESSETH THAT:

WHEREAS, the Board of Directors of Emerson Electric Co. (“Board of Directors”) has adopted the Emerson Electric Co. 2011 Stock Option Plan (the “Plan”) pursuant to which options covering an aggregate of twenty million (20,000,000) shares of the Common Stock of Emerson Electric Co. (the “Company”) may be granted to key employees of the Company and its subsidiaries; and

WHEREAS, the person to whom this option is granted (“Optionee”) is a key employee of the Company or one or more of its divisions, subsidiaries or affiliates (collectively, “Emerson”); and

WHEREAS, the Company desires to grant to Optionee the option to purchase certain shares of its Common Stock under the terms of the Plan, which option is intended to qualify as an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (hereinafter referred to as an "Incentive Stock Option"); and

WHEREAS, Optionee agrees and acknowledges that the grant of said option is valuable consideration; and

WHEREAS, Optionee's execution of the attached Notice of Grant of Stock Options and Option Agreement (the “Notice Agreement”) shall constitute Optionee's agreement to and acceptance of all of the terms and conditions set forth in this Incentive Stock Option Agreement (the “Agreement”);

NOW, THEREFORE, in consideration of the premises, and of the mutual agreements hereinafter set forth, it is covenanted and agreed as follows:

1.    Grant Subject to Plan.  This option is granted under and is expressly subject to, all the terms and provisions of the Plan, which terms and provisions are incorporated herein by reference.  The Compensation Committee (“Committee”) of the Board of Directors has been appointed by the Board of Directors, and designated by it, as the Committee to make grants of options.  

2.    Grant and Terms of Option.  Pursuant to action of the Committee, the Company hereby grants to Optionee the option to purchase all or any part of the number of shares of the Common Stock of the Company, par value of $.50 per share (“Common Stock”), set forth in the Notice Agreement for the period and at the purchase price designated in the Notice Agreement; provided, however, that the right to exercise such option shall be, and is 

hereby, restricted so that the shares to which this option relates may not be purchased prior to the Vesting Date assigned to each of the shares as set forth in the Notice Agreement.  The foregoing right to exercise is subject to the provisions of Section 6 hereof.  Notwithstanding the foregoing, in the event of a Change of Control (as defined in the Plan) Optionee may purchase 100% of the total number of shares to which this option relates if the conditions set forth in Section 9(b) of the Plan are met in conjunction with such Change of Control. In no event may this option or any part thereof be exercised after the expiration of ten (10) years from the date hereof.  The purchase price of the shares subject to this option may be paid for (a) in cash, (b) by tender, either actually or by attestation, to the Company of shares of Common Stock already owned by Optionee and registered in his or her name or held for his or her benefit by a registered holder, having a fair market value equal to the cash exercise price of the option being exercised, or (c) by a combination of methods of payment specified in clauses (a) and (b), all in accordance with Section 7 of the Plan. No shares of Common Stock may be tendered in exercise of this option if such shares were acquired by Optionee through the exercise of an Incentive Stock Option or an employee stock purchase plan described in Section 423 of the Internal Revenue Code of 1986, as amended, unless (a) such shares have been held by Optionee for at least one (1) year, and (b) at least two (2) years have elapsed since such Incentive Stock Option was granted. 
                                    
3.    Anti‐Dilution Provisions.  In the event that, during the term of this Agreement, there is any change in the number of shares of outstanding Common Stock by reason of recapitalizations, mergers, consolidations, split‐offs, split‐ups, combinations or exchanges of shares and the like, the number of shares covered by this Agreement and the price thereof shall be adjusted as the Committee shall determine to be appropriate pursuant to Section 16 of the Plan; provided, however, that in the case of any change in the number of shares of outstanding Common Stock by reason of stock dividends which effect stock splits or recapitalizations which effect stock splits, the number of shares covered by this Agreement and the price thereof shall be adjusted proportionately to reflect such change.

4.    Investment Purpose. If the shares subject to the Plan are not registered under the Securities Act of 1933, Optionee acknowledges that a restrictive legend, in substantially the following form, will be printed on the certificates representing the shares acquired by Optionee on exercise of all or any part of this option:

“The shares represented by this certificate have not been registered under the Securities Act of 1933, but have been issued or transferred to the registered owner pursuant to the exemption afforded by Section 4(2) of said Act.  No transfer or assignment of these shares by the registered owner shall be valid or effective, and the issuer of these shares shall not be required to give any effect to any transfer or attempted transfer of these shares, including without limitation, a transfer by operation of law, unless (a) the issuer shall have received an opinion of its counsel that the shares may be transferred without requirement of registration under said Act, or (b) there shall have been delivered to the issuer a 'no‐action' letter from the staff of the Securities and Exchange Commission, or (c) the shares are registered under said Act.”

5.    Non‐Transferability.  Neither this option nor any rights thereunder or under this Agreement may be assigned, transferred or in any manner encumbered except by will or the laws of descent and distribution, and any attempted assignment, transfer, mortgage, pledge or encumbrance except as herein authorized, shall be void and of no effect.  This option may be exercised during Optionee's lifetime only by Optionee. 

6.    Termination of Employment.  In the event that notice of employment termination is provided by Optionee, which notice shall be deemed for purposes of the Plan as termination of employment of Optionee, or in the event of the termination of employment of Optionee for any reason other than by death or disability, each of which is subject to Section 7 herein, the Plan shall govern whether and the extent to which this option may be exercised; provided, that if Optionee exercises this option (a) while employed by either a non-corporate or less than 50%-owned  affiliate of either the Company or a subsidiary and (b) following a period of  three (3) months after transfer of employment from the Company or a subsidiary to such affiliate, this option shall not be an Incentive Stock Option under Section 422 of the Internal Revenue Code of 1986, as amended.  For purposes of this Section, a divestiture by the Company of 100% of its interest in Optionee's employer shall constitute a termination of employment of Optionee.  

7.    Death or Disability of Optionee.  

(a)    In the event of the death of Optionee while Optionee is employed by Emerson this option shall become fully vested and may be exercised, and in the event of death of Optionee after termination of employment, to the extent this option is still exercisable under Sections 6 or 7(b) of this Agreement at the date of death, this option may be exercised, by a legatee or legatees under the option holder's last will, or by personal representatives or distributees, at any time within a period of one (1) year after death, but not after expiration of the term of this option.    

(b)    If Optionee terminates employment on account of disability (as defined in the Plan), this option shall become fully vested and may be exercised by Optionee (or a representative) within a period of one (1) year after the determination of disability, but not after expiration of the term of this option.   

8.    Shares Issued on Exercise of Option.  It is the intention of the Company that on any exercise of this option it will transfer to Optionee shares of its authorized but unissued Common Stock or transfer Treasury shares, or utilize any combination of Treasury shares and authorized but unissued shares, to satisfy its obligations to deliver shares on any exercise hereof. 

9.    Committee Administration.  This option has been granted pursuant to a determination made by the Committee, and such Committee or any successor or substitute committee authorized by the Board of Directors or the Board of Directors itself, has plenary authority to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to it, and, subject to the express terms of this option, shall have plenary authority to interpret any provision of this option and to make any determinations necessary or advisable for the 

administration of this option and the exercise of the rights herein granted, and may waive or amend any provisions hereof in any manner not adversely affecting the rights granted to Optionee by the express terms hereof.

10.    Option  An Incentive Stock Option.  The option granted hereunder is intended to be, and will be treated as, an Incentive Stock Option. 

11.    No Contract of Employment.  Nothing contained in this Agreement shall be considered or construed as creating a contract of employment for any specified period of time.  The employment relationship shall continue to be at the will of both parties, either of which may terminate the employment relationship at any time for any reason. 
12.    Confidential Information and Inventions.
(a)     During Optionee's employment with Emerson and thereafter, Optionee shall keep confidential, and not use or disclose to any third parties, except as required for Optionee to perform Optionee's employment responsibilities for Emerson, any confidential, proprietary and/or trade secret information of or relating to Emerson (“Confidential Information”).  All Emerson records, documents and information obtained by or provided to Optionee, or to which Optionee has or had access, or otherwise made, produced or compiled by Optionee during Optionee's employment with Emerson, which contain any Confidential Information, regardless of the medium in which it is preserved, are the sole and exclusive property of Emerson and shall be given to Emerson at Emerson's request or upon Optionee's departure from Emerson.
(b)    All ideas, inventions, discoveries, patents and patent applications (together with all reissuances, continuations, continuations-in-part, revisions, extensions, and re‐examinations thereof, and any and all disclosures relating thereto), technology, copyrights, derivative works, trademarks, service marks, improvements, developments, trade secrets, other intellectual property and the like, which are developed, conceived, created, discovered, learned, produced and/or otherwise generated by Optionee, whether individually or otherwise, during Optionee's employment with Emerson, whether or not during working hours, that relate to (i) the business and/or activities of Emerson or which may be of interest to Emerson in its business, (ii) Emerson's anticipated research or development, or (iii) any work performed by Optionee for Emerson, shall be the sole and exclusive property of Emerson, and Emerson shall own any and all right, title and interest to such.  Optionee assigns and agrees to assign any and all of the foregoing to Emerson, whenever requested to do so by Emerson, at Emerson's expense, and Optionee agrees to execute any and all applications, assignments or other instruments which Emerson deems desirable or necessary to protect such interests.  Optionee shall prepare, keep and maintain detailed and current dated and witnessed records of all of Optionee's inventions, and shall disclose the details of such inventions to Emerson.
13.    Restrictions.  During Optionee's employment with Emerson and for twelve (12) months after the later of Optionee's last day of employment with Emerson or any exercise of this option, Optionee will not, directly or indirectly, on Optionee's own behalf or on behalf of anyone else, (a) compete, or assist in any activity which competes, with the business of Emerson in which Optionee was employed or involved, or regarding which Optionee had any 

Confidential Information, at any time during Optionee's final two (2) years of employment, (b) solicit, encourage to leave employment, hire, or assist anyone else to solicit, encourage to leave employment or hire, any Emerson employee, or (c) induce or attempt to induce, or assist anyone else to induce or attempt to induce, in competition against Emerson, any customer of Emerson regarding which Optionee had any Confidential Information at any time during Optionee's final two (2) years of employment, to divert its business from, or reduce or discontinue its business with, Emerson.  Nothing in this Section 13, however, shall prevent Optionee from (x) owning 2% or less of the outstanding equity securities of a publicly traded entity, or (y) performing his or her employment duties and responsibilities for and on behalf of Emerson.
14.    Severability.  Any word, phrase, clause, sentence or other provision hereof which violates or is prohibited by any applicable law, court decree or public policy shall be modified as necessary to avoid the violation or prohibition and so as to make this Agreement enforceable as fully as possible under applicable law, and if such cannot be so modified the same shall be ineffective to the extent of such violation or prohibition without invalidating or affecting the remaining provisions hereof.

15.    Governing Law. This Agreement is made in and shall be construed and administered in accordance with the laws of the State of Missouri, without regard to conflicts of law principles which might otherwise be applied.  Any litigation arising out of, in connection with or concerning any aspect of this Agreement shall be conducted exclusively in the State or Federal Courts in the State of Missouri, and Optionee hereby consents to the exclusive jurisdiction of said courts.

16    Remedies.
(a)    If Optionee breaches or threatens to breach Section 12, 13 and/or 15  of this Agreement, the Company shall be entitled to injunctive relief enforcing this Agreement in addition to any other legal or equitable rights and remedies it may have.  The Company in its sole discretion shall also be entitled to recover from Optionee, in lieu of enforcing Section 13(a) through injunctive relief, the excess of the fair market value of shares subject to any options which have been exercised in the preceding twelve (12) months (or any parts thereof which have been exercised) as of the date of such exercise, over the option price.  Optionee shall pay such amount to the Company not later than ten (10) days after the Company has provided Optionee with notice thereof.
(b)    The Company's subsidiaries and affiliates are express third party beneficiaries of Sections 12 through 16 of this Agreement.
17.    Existing Agreements.  Optionee's obligations under Sections 12 through 16 of this Agreement are in addition to, and do not supersede, Optionee's obligations under any other agreements that Optionee may have.Exhibit 10-2

Exhibit 10.2

	
				
	Notice of Grant of Stock Options
	 
	Emerson Electric Co.

	 
	8000 W Florissant Avenue / P.O. Box 4100

	and Option Agreement
	 
	St. Louis, MO 63136‐8506

	 
	314 553‐2325

	 
	 
	 
	 

	
				
	First M. Last
	 
	 
	  ID: xxx-xx-xxxx

	Address
	 
	 
	 

	City State Zip
	 
	 
	 

	Country
	 
	 
	 

	 
	 
	 
	 

Effective ______________, 20__, you have been granted a Non-Qualified Stock Option to buy _______ shares of Emerson Electric Co. (the Company) stock at $_________ per share.
    

	
					
	Option Number:
	 
	0000000000xxx
	 
	 

	Plan:
	 
	2011
	 
	 

	 
	 
	 
	 
	 

	Grant Date:
	 
	______________
	 
	 

	Granted:
	 
	______________
	 
	 

	Grant Price:
	 
	$_____________
	 
	 

	Total Option Price of the Shares Granted:
	 
	$_____________
	 
	 

	Expiration Date:
	 
	______________
	 
	 

	Vesting Schedule:
	 
	_______ on _______________
	 
	 

	 
	 
	_______ on _______________
	 
	 

	 
	 
	_______ on _______________
	 
	 

                
            

    
	
					
	 	By your signature and the Company's signature below, you and the Company agree that these options are granted under and governed by the terms and conditions of the Company's Stock Option Plan as amended and the Option Agreement, all of which are attached and made a part of this document.

	 
	 
	 	 
	 
	 
	 

Signature:  ______________________________________         Date:  ________________
Emerson Electric Co.

Signature:  ______________________________________         Date:  ________________
First M. Last                

NONQUALIFIED STOCK OPTION AGREEMENT
UNDER 
EMERSON ELECTRIC CO. 
2011 STOCK OPTION PLAN

WITNESSETH THAT:

WHEREAS, the Board of Directors of Emerson Electric Co. (“Board of Directors”) has adopted the Emerson Electric Co. 2011 Stock Option Plan (the “Plan”) pursuant to which options covering an aggregate of twenty million (20,000,000) shares of the Common Stock of Emerson Electric Co. (the “Company”) may be granted to key employees of the Company and its subsidiaries; and

WHEREAS, the person to whom this option is granted (“Optionee”) is a key employee of the Company or one or more of its divisions, subsidiaries or affiliates (collectively, “Emerson”); and

WHEREAS, the Company desires to grant to Optionee the option to purchase certain shares of its Common Stock under the terms of the Plan, which option is not intended to qualify as an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (hereinafter referred to as an "Incentive Stock Option"); and

WHEREAS, Optionee agrees and acknowledges that the grant of said option is valuable consideration; and

WHEREAS, Optionee's execution of the attached Notice of Grant of Stock Options and Option Agreement (the “Notice Agreement”) shall constitute Optionee's agreement to and acceptance of all of the terms and conditions set forth in this Nonqualified Stock Option Agreement (the “Agreement”);

NOW, THEREFORE, in consideration of the premises, and of the mutual agreements hereinafter set forth, it is covenanted and agreed as follows:

1.    Grant Subject to Plan.  This option is granted under and is expressly subject to, all the terms and provisions of the Plan, which terms and provisions are incorporated herein by reference.  The Compensation Committee (“Committee”) of the Board of Directors has been appointed by the Board of Directors, and designated by it, as the Committee to make grants of options.  

2.    Grant and Terms of Option.  Pursuant to action of the Committee, the Company hereby grants to Optionee the option to purchase all or any part of the number of shares of the Common Stock of the Company, par value of $.50 per share (“Common Stock”), set forth in the Notice Agreement for the period and at the purchase price designated in the Notice Agreement; provided, however, that the right to exercise such option shall be, and is hereby, restricted so that the shares to which this option relates may not be purchased prior to the 

Vesting Date assigned to each of the shares as set forth in the Notice Agreement.  The foregoing right to exercise is subject to the provisions of Section 6 hereof.  Notwithstanding the foregoing, in the event of a Change of Control (as defined in the Plan) Optionee may purchase 100% of the total number of shares to which this option relates if the conditions set forth in Section 9(b) of the Plan are met in conjunction with such Change of Control. In no event may this option or any part thereof be exercised after the expiration of ten (10) years from the date hereof.  The purchase price of the shares subject to this option may be paid for (a) in cash, (b) by tender, either actually or by attestation, to the Company of shares of Common Stock already owned by Optionee and registered in his or her name or held for his or her benefit by a registered holder, having a fair market value equal to the cash exercise price of the option being exercised, or (c) by a combination of methods of payment specified in clauses (a) and (b), all in accordance with Section 7 of the Plan. No shares of Common Stock may be tendered in exercise of this option if such shares were acquired by Optionee through the exercise of an Incentive Stock Option or an employee stock purchase plan described in Section 423 of the Internal Revenue Code of 1986, as amended, unless (a) such shares have been held by Optionee for at least one (1) year, and (b) at least two (2) years have elapsed since such Incentive Stock Option was granted. 
                                    
3.    Anti‐Dilution Provisions.  In the event that, during the term of this Agreement, there is any change in the number of shares of outstanding Common Stock by reason of recapitalizations, mergers, consolidations, split‐offs, split‐ups, combinations or exchanges of shares and the like, the number of shares covered by this Agreement and the price thereof shall be adjusted as the Committee shall determine to be appropriate pursuant to Section 16 of the Plan; provided, however, that in the case of any change in the number of shares of outstanding Common Stock by reason of stock dividends which effect stock splits or recapitalizations which effect stock splits, the number of shares covered by this Agreement and the price thereof shall be adjusted proportionately to reflect such change.

4.    Investment Purpose. If the shares subject to the Plan are not registered under the Securities Act of 1933, Optionee acknowledges that a restrictive legend, in substantially the following form, will be printed on the certificates representing the shares acquired by Optionee on exercise of all or any part of this option:

“The shares represented by this certificate have not been registered under the Securities Act of 1933, but have been issued or transferred to the registered owner pursuant to the exemption afforded by Section 4(2) of said Act.  No transfer or assignment of these shares by the registered owner shall be valid or effective, and the issuer of these shares shall not be required to give any effect to any transfer or attempted transfer of these shares, including without limitation, a transfer by operation of law, unless (a) the issuer shall have received an opinion of its counsel that the shares may be transferred without requirement of registration under said Act, or (b) there shall have been delivered to the issuer a 'no‐action' letter from the staff of the Securities and Exchange Commission, or (c) the shares are registered under said Act.”

5.    Non‐Transferability.  Neither this option nor any rights thereunder or under this Agreement may be assigned, transferred or in any manner encumbered except by will 

or the laws of descent and distribution, and any attempted assignment, transfer, mortgage, pledge or encumbrance except as herein authorized, shall be void and of no effect.  This option may be exercised during Optionee's lifetime only by Optionee. 

6.    Termination of Employment.  In the event that notice of employment termination is provided by Optionee, which notice shall be deemed for purposes of the Plan as termination of employment of Optionee, or in the event of the termination of employment of Optionee for any reason other than by death or disability, each of which is subject to Section 7 herein, the Plan shall govern whether and the extent to which this option may be exercised.  For purposes of this Section, a divestiture by the Company of 100% of its interest in Optionee's employer shall constitute a termination of employment of Optionee.  

7.    Death or Disability of Optionee.  

(a)    In the event of the death of Optionee while Optionee is employed by Emerson this option shall become fully vested and may be exercised, and in the event of death of Optionee after termination of employment, to the extent this option is still exercisable under Sections 6 or 7(b) of this Agreement at the date of death, this option may be exercised, by a legatee or legatees under the option holder's last will, or by personal representatives or distributees, at any time within a period of one (1) year after death, but not after expiration of the term of this option.        

(b)    If Optionee terminates employment on account of disability (as defined in the Plan), this option shall become fully vested and may be exercised by Optionee (or a representative) within a period of one (1) year after the determination of disability, but not after expiration of the term of this option.   

8.    Shares Issued on Exercise of Option.  It is the intention of the Company that on any exercise of this option it will transfer to Optionee shares of its authorized but unissued Common Stock or transfer Treasury shares, or utilize any combination of Treasury shares and authorized but unissued shares, to satisfy its obligations to deliver shares on any exercise hereof. 

9.    Committee Administration.  This option has been granted pursuant to a determination made by the Committee, and such Committee or any successor or substitute committee authorized by the Board of Directors or the Board of Directors itself, has plenary authority to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to it, and, subject to the express terms of this option, shall have plenary authority to interpret any provision of this option and to make any determinations necessary or advisable for the administration of this option and the exercise of the rights herein granted, and may waive or amend any provisions hereof in any manner not adversely affecting the rights granted to Optionee by the express terms hereof.

10.    Option Not An Incentive Stock Option.  The option granted hereunder is not intended to be,  and will not be treated as, an Incentive Stock Option. 

11.    No Contract of Employment.  Nothing contained in this Agreement shall be considered or construed as creating a contract of employment for any specified period of time.  The employment relationship shall continue to be at the will of both parties, either of which may terminate the employment relationship at any time for any reason. 
12.    Confidential Information and Inventions.
(a)     During Optionee's employment with Emerson and thereafter, Optionee shall keep confidential, and not use or disclose to any third parties, except as required for Optionee to perform Optionee's employment responsibilities for Emerson, any confidential, proprietary and/or trade secret information of or relating to Emerson (“Confidential Information”).  All Emerson records, documents and information obtained by or provided to Optionee, or to which Optionee has or had access, or otherwise made, produced or compiled by Optionee during Optionee's employment with Emerson, which contain any Confidential Information, regardless of the medium in which it is preserved, are the sole and exclusive property of Emerson and shall be given to Emerson at Emerson's request or upon Optionee's departure from Emerson.
(b)    All ideas, inventions, discoveries, patents and patent applications (together with all reissuances, continuations, continuations-in-part, revisions, extensions, and re‐examinations thereof, and any and all disclosures relating thereto), technology, copyrights, derivative works, trademarks, service marks, improvements, developments, trade secrets, other intellectual property and the like, which are developed, conceived, created, discovered, learned, produced and/or otherwise generated by Optionee, whether individually or otherwise, during Optionee's employment with Emerson, whether or not during working hours, that relate to (i) the business and/or activities of Emerson or which may be of interest to Emerson in its business, (ii) Emerson's anticipated research or development, or (iii) any work performed by Optionee for Emerson, shall be the sole and exclusive property of Emerson, and Emerson shall own any and all right, title and interest to such.  Optionee assigns and agrees to assign any and all of the foregoing to Emerson, whenever requested to do so by Emerson, at Emerson's expense, and Optionee agrees to execute any and all applications, assignments or other instruments which Emerson deems desirable or necessary to protect such interests.  Optionee shall prepare, keep and maintain detailed and current dated and witnessed records of all of Optionee's inventions, and shall disclose the details of such inventions to Emerson.
13.    Restrictions.  During Optionee's employment with Emerson and for twelve (12) months after the later of Optionee's last day of employment with Emerson or any exercise of this option, Optionee will not, directly or indirectly, on Optionee's own behalf or on behalf of anyone else, (a) compete, or assist in any activity which competes, with the business of Emerson in which Optionee was employed or involved, or regarding which Optionee had any Confidential Information, at any time during Optionee's final two (2) years of employment, (b) solicit, encourage to leave employment, hire, or assist anyone else to solicit, encourage to leave employment or hire, any Emerson employee, or (c) induce or attempt to induce, or assist anyone else to induce or attempt to induce, in competition against Emerson, any customer of Emerson regarding which Optionee had any Confidential Information at any time during Optionee's final two (2) years of employment, to divert its business from, or reduce or discontinue its business with, Emerson.  Nothing in this Section 13, however, shall prevent Optionee from (x) owning 

2% or less of the outstanding equity securities of a publicly traded entity, or (y) performing his or her employment duties and responsibilities for and on behalf of Emerson.
14.    Severability.  Any word, phrase, clause, sentence or other provision hereof which violates or is prohibited by any applicable law, court decree or public policy shall be modified as necessary to avoid the violation or prohibition and so as to make this Agreement enforceable as fully as possible under applicable law, and if such cannot be so modified the same shall be ineffective to the extent of such violation or prohibition without invalidating or affecting the remaining provisions hereof.

15.    Governing Law. This Agreement is made in and shall be construed and administered in accordance with the laws of the State of Missouri, without regard to conflicts of law principles which might otherwise be applied.  Any litigation arising out of, in connection with or concerning any aspect of this Agreement shall be conducted exclusively in the State or Federal Courts in the State of Missouri, and Optionee hereby consents to the exclusive jurisdiction of said courts.

16    Remedies.
(a)    If Optionee breaches or threatens to breach Section 12, 13 and/or 15  of this Agreement, the Company shall be entitled to injunctive relief enforcing this Agreement in addition to any other legal or equitable rights and remedies it may have.  The Company in its sole discretion shall also be entitled to recover from Optionee, in lieu of enforcing Section 13(a) through injunctive relief, the excess of the fair market value of shares subject to any options which have been exercised in the preceding twelve (12) months (or any parts thereof which have been exercised) as of the date of such exercise, over the option price.  Optionee shall pay such amount to the Company not later than ten (10) days after the Company has provided Optionee with notice thereof.
(b)    The Company's subsidiaries and affiliates are express third party beneficiaries of Sections 12 through 16 of this Agreement.
17.    Existing Agreements.  Optionee's obligations under Sections 12 through 16 of this Agreement are in addition to, and do not supersede, Optionee's obligations under any other agreements that Optionee may have.

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