Meeting Minutes August 24, 2004

1. Meeting Minutes August 24, 2004 • Net Materials • FY05 Net Materials currently at +5.2%, +$5.5M impact • FY05 reverse auction plan - Suzanne Belinky to sending to Emerson • Consolidate Finish Goods Planning into Rosemont • Establish transition date for balance of finished goods – Mark D’Amico, July 30 • Establish FY05 inventory plan for finished goods– Mark D’Amico - complete, Suzanne Belinky to review • Map out new sop process & review consignment program w/ Finance – Mark D’Amico, August 10 • Integrate supplier performance into BPIC'S – Cyndi Knackstedt, meet as a group mid September to review • Contact Management - Review open item list WEEKLY • Recommended contract actions for suppliers over $100K purchases – Suzanne Belinky review • Send terms & conditions to all suppliers – confusion over payment terms, Traci Grever to review • Change what prints on Po's, August 15 • MIN update • MIN feeds reconfigured, sent to Emerson • Correcting duplicate supplier codes & missing commodity codes • October 5-6, Grana Procurement meeting, commodity managers plan to attend • Board meeting September 28: • Traci Grever to present compliance • Mark D’Amico to present process improvements • Suzanne Belinky procurement summary • Review proposal for a person to be the lead contact for each plant – would like your input on the list (next page) • Plan meeting to review responsibilities – meeting notes published, need to schedule next review

2. Plant Lead Contacts – Draft • Below are the minutes from the August 10 meeting: • Institute monthly meetings with the plants covering: • Status on Reverse Auctions • Future Projects • Price adjustments • Supplier Performance - Delivery Issues • PPV Issues • Items that plants want to discuss • Development of tools and strategies to help plants help themselves • Procurement issues not addressed by EMR or EGS • Role of Buyer/Planner at plants • Escalation Process • Development of procurement conference • Role and Responsibilities of Commodity Managers and Buyer/Planners • Synchronization of Goals and Objectives (Plant Level and EGS Procurement) • Plant Contact: Supplier/Commodity • Plant Visit Schedule • Development of training and process tools • Team agreed to model this process with Atizapan and Columbus with Commodity Management responsibility listed below: • Atizapan: Mike Skrypek, Steve Kim, Victor Lopez • Columbus: Susan Channell, Tom Yates

3. Meeting Minutes August 24, 2004 • Susan Channell • Lock nut auction September 14 • Enclosure project – visited Mode, MPC to be scheduled • Ferrule problem resurfaced resolving this & gland ring shortages • Working on spinning auction – target early October • Mark D’Amico - absent • Ballast traditional RFQ soon, initiate ballast project team • Fortron power supply auction end of September $2.2M– info sent to suppliers • Chinfa to get specs for Traco replacement units • Dennis Demott • Tool mgt program – Brian Hitz putting info in Upfront, 2300 tools identified to date • Started visiting local die cast suppliers for evaluation, 4 audits completed to date • Traci Grever • Jinan supply chain improvement – FOB pricing rec’d, next work with MCC, present cost & service improvement, $35K savings • Steven Kim – absent • Bulk lead wire auction implementation progressing; will visit Noma Cable Tech • Working on wire harness auction – date?? (August) • Nomex light – status?? (Engineering Re-design) – cost analysis in process • Corrugated consolidation – status? • Cyndi Knackstedt • Waiting confirmation of receipt 2nd Fastenal container

4. Meeting Minutes August 24, 2004 • Victor Lopez • Plating auction July 1 - $20K savings, implementation started, to be completed by October 31 • Will renegotiate Remak contract for 1 year – due September 15 • Getting quotes on Alloy parts from México suppliers – due August 27 • Putting together visit schedule for México sand cast suppliers in Monterrey area • Eileen McSharry - absent • Cost savings moving Control Concepts cases to Beaver – how much is it ? July 13 • Magnetec field returns in process, problems with reworked units • Michael Skrypek • Rubber auction $1.0M – scheduled for September • Fasteners • Fastener consolidation project –GMDC resource working on analysis • Fastenal México – meeting August 25 to resolve open issues • Move Birch Hill fasteners to Fastenal 7% savings, follow up from PPV meeting, answer August 27 • Tube quotes – 1 quote out of 9 requests, includes $100K tooling, will approach Lock Joint again, meeting September 10 • Floyd Yang – absent • Working on Disa tools – 13 tool A/R’s approved & ordered • Inspecting EMT fittings again due to new personnel at SSI & Shantou, starting inspections at Grandlite • Quoted 3 die cast tools for Victor Lopez – status? • Tom Yates - absent • Working MMR issues –what is status of payments & tooling? • Working on Edgewater price increase • Is there an opportunity for Floyd Yang to help ATX France with quality issues – follow up with Patrick Devaux

5. April 20, 2004 Commodity ReviewFollow up items • Purchases in Mexico need to be in Pesos • Victor Lopez / Sergio Platon - Victor send updated list – June 1 (List sent 6/18) • Need clarification on USA based suppliers with México operations • Identify solutions to currency risk as a general topic • Mark D’Amico / Tom Yates – purchase in USD & establish a currency band; Suzanne Belinky to review proposal • Can Stephenville make AMC50 stampings? • Push circuit breaker project out 6 months – August 2004 • Steven Kim – Eaton price increase rejected, Steven Kim/Suzanne Belinky schedule visit to Houston • Electrical distribution auction - work with Marketing to award to a customer • Steven Kim –working w/Tom Muller – 3 quotes received • Communicate price increases quickly to Marketing • All - ongoing • Get involved in capital and MRO purchases • Suzanne Belinky – ongoing • Have ownership for all commodities including Emerson leveraged • Suzanne Belinky - ongoing • Provide details of ATX ballast project to Mike Bryant - Mark D’Amico (Complete) • Hold quarterly hedging meetings - Michael Skrypek, monthly schedule established, expand to include steel (Complete)