Formal Quote

A quotation is normally the first step in the export transaction. It is a response to an inquiry received from a potential buyer (or a U.S. representative of the foreign entity) or a proactive marketing step of a U.S. based company. If a quotation is sent to a foreign company that is not familiar with the company or products, the description should be very specific and detailed, more so than if the buyer were domestic. Along with the description, there are other items that should be included, such as: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Sellers name and address Potential buyers name and address Buyers reference inquiry number if noted Prices of items: per unit and extended Weights and dimensions of quoted products Discounts, if applicable Terms of sale or Incoterms used (include geographical delivery point) Terms of payment Validity of quotation Estimated shipping date Estimated date of arrival

When quoting a price, it is beneficial to give a potential buyer some options of trade terms selection. Incoterms are very effective when presenting pricing options to the potential buyer. For some very large foreign companies, it is more convenient and cost-effective to negotiate their own freight rates and organize their own shipments, so they may prefer EXW or F-terms. On the other hand, there may be other buyers that would prefer the seller to organize the movement, thereby preferring the C-terms or even the D-terms.

EXAMPLE: Formal Quote

MEDICAL IMAGING MINNESOTA, INC

Medical Imaging Minnesota, Inc. 100 North Sixth Street Minneapolis, MN 55403 USA

Quotation number: BT10102 Dated: December 21, 2007 Page 1 of 6

FORMAL QUOTATION
Mendez Equipo Mdico S.A. Col. Roma Mexico D.F., C.P. 06760 Attn: Carlos Mendez Subject: Model No. BT002043 Your request for quote for medically used Ultrasound Imaging Machines. Our Reference No.: BT10102 Description Quantity Unit Price Ultrasound Imaging Machine 4 units 80,000.00 Tariff Classification 9018.12 Export Packing/Crating Inland Freight: Minneapolis to Houston Total FCA Yellow Freight: Houston, Texas Ocean Freight charges & other fees to Veracruz, Mexico Total CPT Veracruz, Mexico Insurance to Veracruz, Mexico Total CIP Veracruz, Mexico Extended Price USD 320,000.00 800.00 300.00 USD 321,100.00 6,300.00 USD 327,400.00 3,420.42 USD 330,820.42

Terms and Conditions of Sale: Payment Terms: Terms of Sale: Payable in U.S. Dollars by wire transfer of funds prior to shipment of order or by an acceptable letter of credit. Instructions are attached for opening a letter of credit. Buyers may choose any of the above sales terms (incoterms) that are in bold print and submit purchase order with your selection. When submitting a purchase order, please state the appropriate incoterm indicating the named place and followed by the words: ... per Incoterms 2000. Occurs at Medical Imaging Minnesota, Inc. Minneapolis, Minnesota 55403 USA. 60 calendar days from date of quote. 3-4 weeks after receipt of order.

Transfer of Title: Validity of offer: Shipment Date:

Medical Imaging Minnesota, Inc.

Quotation number: BT10102 Dated: December 21, 2007 Page 2 of 6

Shipping Information: (Estimate only; may vary at time of shipment) ITEM PART NUMBER BT002043 QUANTITY (PIECES) 4 INVENTORY GROSS AVAILABILITY WEIGHT (LBS) EACH YES 500 TOTAL GROSS WEIGHT (LBS) 2000 CUBIC FEET (PER PIECE) 45 TOTAL CUBIC FEET 180

TOTALS

500

2000

45

180

Total chargeable weight for ocean shipping 5 cubic meters x $120 W/M = $600

Recommended mode of shipment: For this quote, Yellow Freight rates were used for Door to Port ocean transportation. The ocean transit time is 3 days plus 2 days for on-carriage to Mexico City, D.F. Vessels are scheduled on a weekly basis. Any other freight forwarder may be selected among Medical Imaging Minnesota, Inc. preferred list for Incoterms CPT and CIP. For FCA terms, any forwarder of your preference may be selected. Export Information: Origin of Goods: USA Schedule B No.: 9018.12

Medical Imaging Minnesota, Inc.

Quotation number: BT10102 Dated: December 21, 2007 Page 3 of 6

The receipt of your purchase order will signify acceptance with the terms and conditions of this quotation. Please use Medical Imaging Minnesota, Inc. quotation number when placing your order. If changes to this offer are needed, please request a revised quote.

For Medical Imaging Minnesota, Inc.:

Amelia Goeppinger, Export Manager

Destination Control Statement: These commodities, technology or software were exported from the United States in accordance with the Export Administration Regulations. Diversion contrary to U.S. law prohibited. IMPORTANT!
In compliance with United States federal law, the Destination Control Statement must be entered on the invoice, the bill of lading, air waybill, or other export control document that accompanies the shipment from its point of origin in the United States to the ultimate consignee or end-user abroad. The person responsible for preparation of those documents is responsible for entry of the DCS.

Medical Imaging Minnesota, Inc.

Quotation number: BT10102 Date: December 21, 2007 Page 4 of 6

LETTER OF CREDIT REQUIREMENTS

Mendez Equipo Mdico S.A. Col. Roma Mexico D.F., C.P. 06760 Attn: Carlos Mendez Subject: Your request for quote ultrasound machine Our Reference number: BT10102

If a letter of credit is issued, below are the terms and conditions acceptable to Medical Imaging Minnesota, Inc. If any of these requirements are unacceptable, please contact Ms. Goeppinger with alterations so an agreement can be reached. This will eliminate unnecessary costs and delays later due to amendments on the letter of credit. 1. Please open the letter of credit by SWIFT; opening letters of credit by mail may delay the order process by 2-4 weeks. The credit shall be drawn in irrevocable form and subject to Uniform Customs and Practice for Documentary Credits International Chamber of Commerce Publication Number 500. The letter of credit is to be advised and confirmed by any U.S. owned bank, preferably in Minneapolis, Minnesota. Medical Imaging Minnesota, Inc.'s bank may be the advising/confirming if the customer does not already have a bank for this purpose. Banking information for letters of credit are as follows: Minnesota Generic Bank, Inc. 123 Generic Bank Plaza Minneapolis, MN 55480 USA Acct. # 875-02345-638 USBA # 749376 Attn: International Department

2.

3.

Medical Imaging Minnesota, Inc.

Quotation number: BT10102 Date: December 21, 2007 Page 5 of 6

4. 5.

The credit shall be payable at the counters of any U.S. Bank. The letter of credit shall show as The Beneficiary: Medical Imaging Minnesota, Inc. 100 North Sixth Street Minneapolis, MN 55403 USA

6.

The letter of credit shall be payable in U.S. Dollars at sight of draft and documents and in the amount specified in the order. The following documents will be provided for this transaction. Please avoid the requirement for any other documents without prior agreement by us. a) b) c) Commercial Invoice totaled to FCA, CPT, or CIP designated location as per the agreed order (per Incoterms 2000): 4 originals. Packing List in quadruplicate. The transport document as follows: For Air Freight: Clean Air Waybill consigned to the issuing bank designating "notify applicant". - Air consolidators air waybills shall be allowed. - Marked freight collect or prepaid, as agreed in the order. For Ocean Freight: Clean on Board Ocean Bill of Lading consigned to order of shipper. - NVOCC bills of lading shall be allowed. - Marked freight collect or prepaid, as agreed in the order.

7.

8.

The port of export (for air or for ocean) shall be specified as any USA port/airport and designate the arrival port at destination. Transshipment shall not be allowed. Partial shipments shall be allowed, if agreed upon in the order.

9. 10.

Medical Imaging Minnesota, Inc.

Quotation number: BT10102 Dated: December 21, 2007 Page 6 of 6

11.

The expiration date on the letter of credit shall not be less than 30 days after the issuance of the transport document (air or ocean bill of lading). The letter of credit shall not be transferable. All banking charges incurred inside and outside the beneficiarys country are for the account of the applicant (customer). Note: this includes all charges related to amending the letter of credit as well as confirmation fees (must be specified in writing within the credit). Description of the goods on the letter of credit shall be as simple as possible. Please identify product as follows: Ultrasound Imaging Machine. Letter of credit must be in English. No boycott, restrictive trade practices, or discriminatory provisions will be allowed in the letter of credit.

12. 13.

14.

15. 16.

TIPS: If possible, always use multi-modal Incoterms (FCA, CPT, CIP) in case the method of transportation changes. Specify transport document rather than ocean bill of lading or air waybill, in case the method of transportation changes.