International Credit Executives Group Advanced Letter of Credit Workshop Nancy Ebben, Oshkosh Corporation May 17, 2018

Your Pro Forma Invoice and Setting up Your Letter of Credit Oshkosh Corporation Business Segments: Access Equipment JLG, Jerr-dan Defense Oshkosh Defense, LLC Commercial McNeilus, Iowa Mold Tooling, Con-e- Co, London Machinery Fire and Emergency Pierce, Airport, Frontline LETTER OF CREDIT WORKSHOP 11/14/2018

Your Pro Forma Invoice and Setting up Your Letter of Credit Type of Opportunities: Public Tender Conditions of opportunity clearly defined. Sole Source Work with the Buyer to negotiate terms and conditions LETTER OF CREDIT WORKSHOP 11/14/2018

Your Pro Forma Invoice and Setting up Your Letter of Credit What constitutes an Order : Distributor Agreement in place, if required Signed Quote Purchase Order/Purchase Agreement Contract Defines the Buyer and Seller, Currency and Amount, Product and Quantity, Payment Terms, Incoterms, and Delivery requirements. Dated and signed by both parties LETTER OF CREDIT WORKSHOP 11/14/2018

Your Pro Forma Invoice and Setting up Your Letter of Credit Booking an Order : “Got An Order” Meeting Details reviewed by International Shared Services, Business Unit, Legal, Environmental, Risk, Safety and Compliance, Tax (DDP) and Export Compliance, etc. Financing in Place Advance Payment Guarantee and/or Performance Guarantees issued, Required Payment Received, if required Commercial Letter of Credit Received, if and when required Credit Approved, prior to shipment or open account LETTER OF CREDIT WORKSHOP 11/14/2018

Your Pro Forma Invoice and Setting up Your Letter of Credit Payment Terms: Cash in Advance Irrevocable Letter of Credit Advised and/or Confirmed Payable at sight or acceptance Documentary Collection Acceptance with “Aval” Open Account Supported with Credit Insurance or Standby LC Combination of the Above LETTER OF CREDIT WORKSHOP 11/14/2018

Your Pro Forma Invoice and Setting up Your Letter of Credit Cash In Advance: Proforma Invoice to be consistent with Quote or PO/Contract and include: Buyer and Seller Name and Address Contract or P.O. Reference No. Product Description and Quantity Currency and Amount Incoterm Amount Due Payment Instructions Signature (identified) LETTER OF CREDIT WORKSHOP 11/14/2018

Your Pro Forma Invoice and Setting up Your Letter of Credit Letter of Credit Concerns: 43P: Partial Shipments: Allowed Vehicles ship on Ro Ro vessel and vessel does not always take containers. We may have hazardous materials and captain must accept and some equipment may require an export license. We take parts off the vehicles to minimize damage and theft. If not allowed, Quantity will not match on Invoice and Bill of Lading Statement: Parts taken off truck for shipping purposes only 43T: Transshipment: Allowed 44E: Port of Discharge: Tianjin, China Transship port (Yokohama) shows in Port of Discharge with Tianjin as Place of Delivery. Statement: *Port of Transshipment **Port of final discharge LETTER OF CREDIT WORKSHOP 11/14/2018

Your Pro Forma Invoice and Setting up Your Letter of Credit Letter of Credit Concerns: 45A: Description of Goods and/or Services: Commodity: Contender Pumper Quantity: 39 units Price Term CFR Tianjin, China 46A: Documents Required: Commercial Invoice to show 100% of CFR value less 15% down payment received outside letter of credit. Certificate of Origin certified by Chamber of Commerce versus issued by Chamber of Commerce Be aware of the requirement for consularization LETTER OF CREDIT WORKSHOP 11/14/2018

Your Pro Forma Invoice and Setting up Your Letter of Credit Letter of Credit Concerns: 46A: Documents Required: Final Acceptance Certificate issued and/or signed by Buyer in country. 48: Period for Presentation Documents to be presented within 180 days after shipment date but within the validity of the credit OR within the validity of the credit versus the standard 21 days to allow for delivery and acceptance. 31D: Expiry Date Expiry date needs to be 180 days after 44C: Latest Ship Date: LETTER OF CREDIT WORKSHOP 11/14/2018

Your Pro Forma Invoice and Setting up Your Letter of Credit Incoterms and Revenue Recognition: F terms Risk and Costs transfer at US point or port Responsibility to file AES or get copy from the Buyer or Buyer’s forwarder Revenue recognition at US point or port C Terms Risk transfers at US point or port, Costs transfer at destination Revenue recognition at US port or arrival at foreign destination D terms Goods are unloaded and placed at the disposal of the Buyer at an agreed upon place of destination LETTER OF CREDIT WORKSHOP 11/14/2018

Questions or Comments? LETTER OF CREDIT WORKSHOP 11/14/2018

Thank You! Xie xie LETTER OF CREDIT WORKSHOP 11/14/2018