LBT Project Office/ USA

The University of Arizona

Steward Observatory

Tucson, AZ. 85721-0065 USA

Attn: Mr. John Hill

e-mail:

Dear Mr. Hill

Danzas AEI Projects is pleased to provide you with our proposed rate indication for the packing and transportation of the Large Binocular Telescope Project as stated in the RFP dated Jan.22nd, 2001. Danzas AEI has elected to take no exceptions to the scope of work or terms and conditions as outlined in the RFP. The following summary of services and related commercial cost breakdowns are for your review and consideration:

1.0 – FOB pricing from supplier door to collection point Milan, Italy.

a.) – Routing: Loading in Viale Sarca, Milan, transit through outer parameters of Milan to road no.415 to Crema. From Crema Port (approx.120km), cargo will be loaded to specialize shallow draft river barge for Marghera (via river Po) were the cell will be loaded directly from barge to ship. River Po does have seasonal logistics issues/concerns and as such, river must be suitable for safe transit.

Sub total of FOB (incls.all permits/escorts/securing/fuel etc.)……$266,310.00 usd

**Note: FOB charges do not include local /governmental fees associated with lines or obstacles relocation / removal / replacement. Danzas proposes cost + 5% with supported back up for these costs.

2.0 – Export Packing/ consolidation/ handling fees (meets all packing standards as outlined in the RFP)………………………………………………$243,600.00 usd.

3.0 - Port Terminal Surcharges (to include heavy lifts)………………$67,110.00 usd.

4.0 - Ocean Freight to Houston,TX. (hook-hook)……………………$474,200.00 usd **Note: Ocean Freight is subject to minimum inducement tonnage of 1,000 r/t per shipment.

5.0 – Port of Houston terminal surcharges to incl.TRC / Wharfage……$31,245.00 usd.

6.0 - Clearance fees / customs formalities / project management fees.…$26,650.00 usd

7.0 - Ground Transportation to designated lay down or site as outlined in the RFP to include all permits / escorts / insurance (less cells to Ohio)………$623,110.00 usd.

8.0 - Transportation / logistics for movement of I.D.#8 M-1 cell and I.D.#15 – Aluminizing bell jar (and ancillary) to Ohio ……………..………$172,400.00 usd **Note: - Includes all costs associated with the load / secure / of river deck barge to safe berth , on-carriage to city limits Columbus. Subject to final delivery survey. All costs associated with obstacle / line removal will be passed thru with supporting back up at an additional fee of 5%.

9.0 - Cargo Insurance from door to door (all –risk)…………………..$26,780.00 Estimated Total for 1.0 – 9.0 above: $1,931,405.00 usd.

4607 WORLD HOUSTON PKWY, SUITE 100, HOUSTON, TEXAS 77032 * TEL: (281) 449-2400 * FAX: (281) 449-4690