CGThermal Ceramic. Graphite. Heat Exchangers.

Process Equipment

Indoxide Quote No: 17Q-4989

Surabaya, Indonesia
Date: February 14, 2017

RE : Sulfuric Acid Concentration

Dwg.#: D22042
Attn: Mr. George Tendean

Dear Mr. Tendean,

Thank you for your interest in CG Thermal and allowing us to provide our proposal for our Impervite® Shell
and Tube impervious graphite heat exchanger to replace your existing Polytube- 64 heat exchanger.

The quality of the drawings was poor, so it will be necessary to confirm details such a nozzle sizes, and
design pressure prior to purchase. We have assumed that you will reuse your existing heads and therefore
they are not included in our quotation.

Introducing CG Thermal, we are a full service, fully integrated graphite heat exchanger manufacturer. We
have in excess of 30,000 ft2 of manufacturing space, including state-of-the art high pressure / high
temperature graphite impregnation system, and custom designed graphite assembly and testing equipment.
All of the critical processes, from mechanical and thermal design to material impregnation are done in-house
using well established, proven and stringent material and design standards.

CG Thermal, LLC.
8950 Dutton Dr. Twinsburg, Ohio, USA 44087
Phone: 330-405-0844 – Fax: 330-487-0304
www.cgthermal.com
CGThermal Ceramic. Graphite. Heat Exchangers. Process Equipment

CG Thermal fully understands the specialized needs of markets and of the customers we serve, many of
whom demand custom-designed heat exchangers to meet very specific process and/or plant conditions.

We have available within CG Thermal extensive thermal and mechanical design resources which we apply to
your needs. Our design team, with an aggregated experience of over 125 years, includes mechanical and
chemical engineers with much expertise in specialized heat transfer systems and design.

We sincerely appreciate your time and effort in evaluating our proposal. We would welcome the opportunity
to be of service to Indoxide, and to demonstrate to you the level of service and quality we can provide. If
you have any questions or comments after reviewing our proposal feel free to contact us.

With Best Regards,

Joan A. Bova
Sales Support Engineer
440-463-6804

CG Thermal, LLC.
8950 Dutton Dr. Twinsburg, Ohio, USA 44087
Phone: 330-405-0844 – Fax: 330-487-0304
www.cgthermal.com
CGThermal Ceramic. Graphite. Heat Exchangers. Process Equipment

Indoxide Quote No: 17Q-4989

Surabaya, Indonesia
Date: February 14, 2017

RE : Sulfuric Acid Concentration

Dwg.#: D22042
Attn: Mr. George Tendean

Dear Mr. Tendean,

We are pleased to submit the following quotation for your consideration:

QUANTITY PRICE (each) $US

1 DESCRIPTION: Model L64-240, Type -BEP-, Series L $509,480.00
Impervite® shell and tube exchanger with 535.7 Sq. Meter
of effective heat transfer area.

TUBESIDE:
DESIGN: 7 barg at 171Deg F.
TUBES: Impervite®, fully graphitized. Qty. = (562)
(51mm) outside diameter by 6100m long.
TUBESHEETS: Fixed, Impervite, with carbon steel cover.
Floating, Impervite, with carbon steel skirt.
HEADS: not included

SHELLSIDE
DESIGN: 7 barg at 171 Deg C.
MATERIAL: Carbon Steel
DIAMETER: 64” OD
BAFFLES: SST
NOZZLES: per dwg. D22042 (To be confirmed)
GASKETS: TEFLON: Gasket-grade, without fillers.
CODE: ASME SEC VIII Div 1 U stamp

Delivery: 20-22 weeks, after receipt of approval drawings

Please allow up to 2 weeks for approval drawings.

_________________________
Joan A. Bova
Sales Support Engineer
440-463-6804
CG Thermal, LLC.
8950 Dutton Dr. Twinsburg, Ohio, USA 44087
Phone: 330-405-0844 – Fax: 330-487-0304
www.cgthermal.com
CGThermal Ceramic. Graphite. Heat Exchangers. Process Equipment

Terms and Conditions

For ASME Code Stamped units, the material thicknesses will be the minimum required by the
code. Otherwise good engineering design practices will be used to determine material thicknesses.

FREIGHT: EXWORKS; Twinsburg, OH. Freight, packaging and handling charges not included.
Please estimate $4,500.00 for export packaging.

QUOTE VALIDITY: 30 DAYS

PROGRESS PAYMENT LEVELS:

25% with order, due upon receipt.
25% with approval drawings
25% with receipt of major graphite components
25% with shipment, due 30 days

Note: interest will be charged at following rate for all overdue invoices: 1.5% / +10 days
2.5% /+30 days

WARRANTIES/GUARANTEES:
• Material and workmanship warrantee for 12 months after installation or 18 months after order.
• Warranty per TEMA specifications paragraph G5.
• 100% thermal performance guarantee based on applicable TEMA specification sheets.
• The heat exchanger’s newly manufactured condition could sometimes be altered during transit.
Therefore, warranty provisions require that a shell side hydrostatic test shall be completed
immediately upon receipt before removing the equipment from the carrier vehicle.

Adders: A change order will be required if the customer makes revisions that require additional engineering,
material and / or labor.

Unless agreed to in writing by an officer representing CG Thermal LLC, CG Thermal STANDARD TERMS
AND CONDITIONS of sale applies to the acceptance of any purchase order. Detailed review by CG
Thermal legal counsel of the customers purchase order terms and conditions can be initiated and negotiated
upon request. All negotiations should begin prior to order placement in order not to delay the engineering
and production of the order.

CG Thermal, LLC.
8950 Dutton Dr. Twinsburg, Ohio, USA 44087
Phone: 330-405-0844 – Fax: 330-487-0304
www.cgthermal.com
CGThermal Ceramic. Graphite. Heat Exchangers. Process Equipment

IMPERVITE® SHELL AND TUBE EXCHANGERS

LONGER OPERATIONAL LIFE

CG Thermal Impervite® LT impervious graphite tube is manufactured by subjecting a fully graphitized
porous graphite tube to our state-of-the-art proprietary vacuum/temperature/pressure impregnation of
modified phenolic resin.

By carefully measuring the resin properties and matching the characteristics of the graphite, we can
guarantee a final product that consistently meets our mechanical, thermal and corrosion resistant standards.
All phases of the impregnation process are computer controlled, recorded and archived verifying the
manufacturing process is exactly per our specification.

The result is an industry leading Impervite® LT graphite exchanger that meets or exceeds all other phenolic
impregnated graphite units in the very important exchanger properties of thermal conductivity, thermal
shock resistance and thermal stability. The absence of carbon in our fully graphitized tube minimizes the
brittleness while maximizing the toughness and fatigue resistance.

IMPERVITE® LT. IDEALLY SUITED FOR HEAT EXCHANGER SERVICE.

 Highest thermal conductivity.
 Exceptional thermal shock resistance.
 High toughness, lower brittleness.
 Low thermal expansion rate.
 Exceptional Thermal Stability.
 Fully Graphitized
 Excellent resistance to fatigue stress resulting in longer operational life

CG Thermal, LLC.
8950 Dutton Dr. Twinsburg, Ohio, USA 44087
Phone: 330-405-0844 – Fax: 330-487-0304
www.cgthermal.com
CGThermal Ceramic. Graphite. Heat Exchangers. Process Equipment

Some manufactures have made the decision to use a "graphite" tube that is not fully graphitized to lower
costs. Minimizing graphitization and using a “carbon/graphite” tube does lower the production cost but also
lowers the thermal conductivity, increases the thermal expansion rate, lowers the thermal shock
resistance, and lowers the ability of the tube to absorb impact energy. Calculated figures based on
published properties describe this in more detail. (see attachment 1)

Advanced Design, Manufacturing

Recognizing that CG Thermal heat exchangers must perform during critical
processes, they are designed, manufactured and tested to meet especially high
internal standards as well as ASME SEC VIII Div 1 requirements.

- 100% of Impervite® tubing is subjected to both an air-under-water

and higher pressure hydrotest after impregnation and prior to
being assembled in an exchanger.

- Impervite® tubes are available up to a monolithic length

12’ long. Should the optimum tube length exceed 12’
the tubes are joined using our ASME certified, computer
controlled and monitored cementing process. The assembled
tubes are hydrotested after joining.

Impervite® Monolithic, Single Piece Tubesheet

CG Thermal only supplies monolithic, single piece tubesheets
Other manufactures have elected to use segmented tubesheets. In this design
smaller sections are machined and cemented together to form larger
diameter pieces. This design introduces many additional cement joints at the
tubesheets.

CG Thermal, LLC.
8950 Dutton Dr. Twinsburg, Ohio, USA 44087
Phone: 330-405-0844 – Fax: 330-487-0304
www.cgthermal.com
CGThermal Ceramic. Graphite. Heat Exchangers. Process Equipment

Fully Metal Encased Tube Side Construction

As standard practice CG Thermal fully encases all exposed
graphite components in ASME SEC VIII code stamped
metal covers and skirts, protecting the graphite from external
damage and eliminating dangerous tensile loads on the
floating tube sheet. The design includes a high precision
machined floating tube sheet “skirt” which transfers the
floating head mechanical and hydraulic forces on to the back
side of the floating tube sheet, putting this graphite component
in compression, which is the “best practice” for graphite design.

It is worthwhile noting that virtually all graphite exchangers carry

tube side process fluids which create class 1, div I or II hazardous
area conditions in the workplace. Increased emphasis should
therefore be placed on tube side integrity.

ASME Code Markings*

There are two options available for applying the ASME Certification Marks

ASME Sec. VIII Div. 1 Certification Mark with the U designator

Applied to a graphite heat exchanger without the need to apply the G mark designator when the
following conditions have been met:
• All of the metal pressure retaining components of the completed unit have been designed and
fabricated per the requirements of ASME Sec. VIII Div. 1.
• The assembled unit is tested per Code requirements.
• There are no external graphite pressure retaining components.

ASME Sec. VIII Div. 1 Certification Mark with the U and G mark designators
Applied when meeting the requirements of ASME Sec. VIII Div. 1 and applying the rules of Part UIG.
• The G mark is required when there are graphite components (tube sheets and process domes) not
encased in metal, used as external pressure-retaining components (the pressure boundary)
• The Gmark is a design option openly acceptable to the industry and has the advantage of
potentially reducing manufacturing costs due to the elimination of the metal pressure-retaining
components on the graphite tube sheet and domes.
• An end user can elect to use this option with the metal encased design described above, for added
protection against catastrophic failure.

*See attachment 2 for detailed explanation

CG Thermal, LLC.
8950 Dutton Dr. Twinsburg, Ohio, USA 44087
Phone: 330-405-0844 – Fax: 330-487-0304
www.cgthermal.com
CGThermal Ceramic. Graphite. Heat Exchangers. Process Equipment

CUSTOMER FOCUS, SERVICE DRIVEN

“Wish all vendors were as responsible and responsive
when errors are found. Incredibly refreshing!!!”
- Project Manager

CG Thermal understands the need and value to your

operations of having in place exceptional customer
technical support and service during all phases of the order
process. We utilize only the most qualified field sales
representatives coupling their services with our focused
in-house engineering, technical sales, and compliance
department resources. Should any unforeseen issues or
mistakes arise we work closely with you to resolve them
quickly to meet your project schedule and to your
complete satisfaction.

As proof of this performance, CG Thermal delivers its

heat exchangers with both thermal and mechanical
guarantees. In addition, CG Thermal customers can
rely upon support from a full engineering staff and
field service personnel.

CG Thermal, LLC.
8950 Dutton Dr. Twinsburg, Ohio, USA 44087
Phone: 330-405-0844 – Fax: 330-487-0304
www.cgthermal.com
 Attachment 1

CGThermal Ceramic. Graphite. Heat Exchangers. Process Equipment

Comparison of Published Properties

IMPERVITE® Brand M
CONDUCTIVITY (W/Mk) 100 64
TENSILE STRENGTH (Mpa) 28 29
CTE (x 10-6/C) 2.90 3.1
YOUNG'S MODULUS (Gpa) (-10) 158 150
THERMAL SHOCK RESISTANCE 6 4

1. Thermal Shock resistance = Conductivity * Tensile Strength

CTE * Young's modulus

2. "Brand M" properties are from published values.

CG Thermal, LLC.
8950 Dutton Dr. Twinsburg, Ohio, USA 44087
Phone: 330-405-0844 – Fax: 330-487-0304
www.cgthermal.com
 Attachment 2

CGThermal Ceramic. Graphite. Heat Exchangers. Process Equipment

ASME Code Section VIII Div 1 U and G Markings and Design Options for Graphite
Heat Exchangers.

Since the implementation of part UIG to the ASME Section VIII Division 1 Rules for Construction of
Pressure Vessels there has been some confusion in the industry regarding what options are currently
available to end users if it is determined that, because of either Company policy or jurisdictional
requirements, a graphite heat exchanger requires the ASME Certification Mark with the U designator to be
applied to the assembled unit. Currently, there are three options available for applying the Certification

Mark with the U designator, both with or without the G mark designator. The G mark designator is applied
when the rules of part UIG are followed.

In the first option the ASME Sec. VIII Div. 1 Certification Mark with the U designator can be applied to a
graphite heat exchanger without the need to apply the G mark designator when the following conditions have
been met:
• All of the metal pressure retaining components of the completed unit have been designed and
fabricated per the requirements of ASME Sec. VIII Div. 1.
• The assembled unit is tested per Code requirements.
• There are no external graphite pressure retaining components.

The Certification Mark with the U designator applies to the completed unit, covering both the service and
process sides of the heat exchanger as a single chamber pressure vessel. This is a safe and reliable option
because it requires that all graphite components are fully encased within metal components, as explained
above, which act as the pressure boundary. This design does not allow the use of external graphite pressure-
retaining components.

It is important to note that CG Thermal uses a minimum design safety factor of 5 on these graphite
components in addition to encasing them in a metal shroud and/or skirt. This approach not only protects
the graphite from potential external damage, but it has the added advantage of greatly reducing operating
stresses on the floating tube sheet. In that graphite is not a ductile material, and its yield strength is the
same as its ultimate strength, a failure in a pressure-retaining graphite component can be very difficult to
predict

The second option is to design the unit using graphite components such as tube sheets and process domes
as external pressure-retaining components (the pressure boundary) and not encasing them in metal. In
this case, a Certification Mark with the U designator can be applied along with a G mark designator by
meeting the requirements of ASME Sec. VIII Div. 1 and applying the rules of Part UIG. This design option
is openly acceptable to the industry and has the advantage of potentially reducing manufacturing costs due to
the elimination of the metal pressure-retaining components on the graphite tube sheet and domes. An end
user can elect to use this option with the metal encased design described above, for added protection against
catastrophic failure.
CG Thermal, LLC.
8950 Dutton Dr. Twinsburg, Ohio, USA 44087
Phone: 330-405-0844 – Fax: 330-487-0304
www.cgthermal.com
CGThermal Ceramic. Graphite. Heat Exchangers. Process Equipment

TERMS AND CONDITIONS OF SALE (PAGE 1 OF 2)

1. Acceptance: All customer orders relating to goods sold by CG Thermal LLC (“Seller”) are expressly conditioned upon Seller’s written confirmation of
acceptance of such order and the application of these Standard Terms and Conditions of Sale. Any terms of purchase and sale set forth in any customer order
which conflict or are inconsistent with, or are additional to, these Standard Terms and Conditions of Sale, including any such terms which purport to limit Seller’s
acceptance of such customer order to the terms of purchase and sale set forth in such customer order, shall be deemed rejected and of no legal effect, unless the
customer (“Buyer”) provides Seller, in a separate writing signed and dated by Buyer, with its specific objections to these Standard Terms and Conditions of Sale
within 5 days following Buyer’s receipt of Seller’s written confirmation of acceptance of such order. Buyer’s acceptance of delivery of any or all goods supplied
by Seller shall constitute assent by the Buyer to these Standard Terms and Conditions of Sale.
2. Prices: The purchase price of the goods shall be as reflected in and agreed to by the parties in the Buyer’s Purchase Order and Seller’s Sales Order
Acknowledgement. The purchase price of the goods shall be subject to adjustment for any documented surcharges imposed by Seller’s suppliers including but not
limited to raw materials, scrap, fuel, and natural gas.
3. Taxes: Unless specifically noted as included therein, the purchase price of the goods does not include any taxes which may be imposed in respect of the sale of
the goods to Buyer. Any such taxes that Seller may be required to pay or collect shall be added to and paid by Buyer as part of the purchase price.
4. Payment: Buyer shall pay the net invoice amount in full within 30 days from the date of invoice. Seller reserves the right to charge interest at the rate of 1½% per
month (18% annual rate) or, if less, the maximum rate allowed by law on all amounts not paid within 45 days of the invoice date. In the event Buyer fails to make
payment of the purchase price or any portion thereof when due, Seller may, at its option, and without waiving any other rights it may have, suspend performance
with respect to any pending order or shipment of goods or terminate Buyer’s purchase order. Buyer agrees to pay all collection costs and expenses incurred by Seller
in collecting any amounts past due, including Seller’s reasonable attorneys’ fees.
5. Shipment: Shipment terms are F.O.B. Seller’s place of business at 8950 Dutton Drive, Twinsburg, OH 44087, and Buyer shall pay all shipping costs. In any
instance where applicable, delivered prices or prices involving competitive transportation adjustments shall be subject to appropriate adjustment to reflect changes in
transportation charges, including fuel surcharges.
6. Title and Risk of Loss: Title and risk of loss shall pass to Buyer after Seller delivers the goods to the carrier at the point of shipment. Buyer shall be responsible
for the procurement of all freight insurance and payment of related costs.
7. Inspection: Buyer shall promptly inspect the goods upon delivery. If, upon receipt by Buyer, goods shall appear not to conform to the contract, Buyer shall
immediately notify Seller of such condition and afford Seller a reasonable opportunity to inspect the goods prior to making any disposition of the goods. No goods
shall be returned to Seller without Seller’s prior consent.
8. Seller’s Warranties: In the absence of any other commitment, Seller warrants that goods will conform to applicable specifications and be free from material
defects in quality and workmanship for a period of one year following delivery, subject to commercial and industry standards regarding variations in dimension,
weight, tolerances and mechanical properties. Seller’s warranties do not apply to damage resulting from accident, casualty, alteration, improper storage or misuse.
Seller is not responsible for any charges relating to warranty work that have not been authorized by Seller in writing. THERE ARE NO UNDERSTANDINGS,
TERMS, CONDITIONS OR WARRANTIES OTHER THAN AS EXPRESSLY SET FORTH HEREIN. SELLER MAKES NO OTHER WARRANTY, EXPRESS
OR IMPLIED, AND EXPRESSLY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, AND ALL
OTHER WARRANTIES ARE HEREBY EXPRESSLY EXCLUDED.
9. Limitation of Liability: Buyer’s sole and exclusive remedy for breach of the foregoing warranty shall be limited to the replacement of defective goods (with the
exception of items normally considered to be expendable) or, at Seller's option, refund of the purchase price; provided in no event shall Seller’s liability exceed the
purchase price paid by Buyer for the goods. Defective goods replaced by Seller shall become the property of Seller. IN NO EVENT SHALL SELLER HAVE NO
ANY LIABILITY, DIRECT OR INDIRECT, FOR COMMERCIAL LOSS, CLAIMS FOR LABOR, OR CONSEQUENTIAL OR INCIDENTAL DAMAGES OF
ANY NATURE OR TYPE, WHETHER BUYER’S CLAIM BE BASED IN CONTRACT, TORT, WARRANTY, STRICT LIABILITY OR OTHERWISE. IT IS
EXPRESSLY AGREED THAT BUYER’S REMEDIES EXPRESSED IN THIS PARAGRAPH ARE BUYER’S EXCLUSIVE REMEDIES.
10. Claims: Claims for shortages and damaged goods must be made within three (3) days of receipt. Claims that the goods do not conform in any material respect to
applicable Seller warranties must be made promptly following discovery and in any event within the applicable warranty period. Seller will not consider claims for
any reason after expiration of the warranty period. In the event of an accepted claim, Seller will pay for material cost only, not costs related to downtime, damaged
equipment, or lost opportunity. Goods subject to a claim shall not be sold, scrapped, or returned without Seller’s authorization. Any action for a breach of contract
arising out of Seller's acceptance of an order or arising out of Buyer’s acceptance of goods supplied must be commenced within one year after the cause of action has
accrued.
13. Delays: SELLER SHALL NOT BE LIABLE TO THE BUYER FOR ANY CLAIMS FOR LABOR OR FOR ANY SPECIAL, INCIDENTAL,
CONSEQUENTIAL OR OTHER DAMAGES, INCLUDING, WITHOUT LIMITATION, ANY CLAIMS FOR DOWNTIME, LOST OPPORTUNITY, LOST
PROFITS OR INDEMNIFICATION, RESULTING FROM DELAY IN DELIVERY. Buyer’s sole right in the event of any delay in delivery which is material in
duration, and not otherwise excused, shall be to cancel its order.
14. Indemnification: Buyer agrees to indemnify and hold Seller harmless from and against any and all claims, demands, causes of action, and damages, including
attorney’s fees and costs, arising out of or in any way related to Buyer’s breach of its obligations hereunder or the handling, design, use, installation or application of
the goods sold by Seller to Buyer, including, without limitation, any claim of infringement of any patent or other propriety right in connection with the production of
any such goods furnished to Buyer’s specifications or design requirements.

CG Thermal, LLC.
8950 Dutton Dr. Twinsburg, Ohio, USA 44087
Phone: 330-405-0844 – Fax: 330-487-0304
www.cgthermal.com
CGThermal Ceramic. Graphite. Heat Exchangers. Process Equipment

TERMS AND CONDITIONS OF SALE (CON’T)

15. Seller Assistance: If Seller, without separate compensation therefore, furnishes the Buyer with advice or other assistance concerning any goods supplied
hereunder or any system or equipment in which any such goods may be installed which is not required hereunder, the furnishing of such advice or assistance will not
subject Seller to any liability whether in contract, tort (including negligence and strict liability) or otherwise.
16. Storage: Except where and only to the extent that Seller has agreed in writing to store or hold goods for Buyer’s account for later shipment, and without otherwise
limiting Seller’s remedies available under the law, if Buyer requests a delay of a shipment of goods otherwise ready for shipment, or Buyer fails to release goods for
shipment, Seller shall have the right to immediately invoice Buyer for the goods and charge Buyer reasonable storage fees commencing 3 days after Seller’s notice
to Buyer that the goods are available for shipment. Seller reserves the right to receive payment of all invoices and storage fees in full prior to final shipment of
material.
17. Cancellation: An order or contract may be cancelled or modified only by written agreement between Seller and Buyer. Buyer’s unauthorized cancelation or
suspension of an order may be treated by Seller as a breach of contract by Buyer, and Seller may cancel any unshipped balance without prejudice to any other remedies
Seller may have.
18. Governing Law: These Terms and Conditions of Sale shall be governed by the laws of Ohio. Buyer, acting for itself and its successors and assigns, hereby
expressly and irrevocably consents to the jurisdiction of the state and federal courts of Ohio located in Summit County, Ohio for any litigation which may arise out
of or be related to these Terms and Conditions of Sale.
19. Notice: Any notice required or contemplated hereunder shall be in writing and shall be delivered personally or sent by fax, email or by prepaid registered mail.
Notice by email or fax shall be deemed to have been received when transmitted and any notice sent by registered mail shall be deemed to have been received on the
second day following the date mailed.

20. Force Majeure: In any event and in addition to all other limitations stated herein, Seller shall not be liable for loss, costs or damages arising out of or resulting
from any act, omission, result or consequence, including any delay in delivery or performance, resulting from force majeure, including but not limited to strikes, labor
disturbances, material shortages, non-manufacturing conditions, delays or failures of carriers or communication, epidemics, fire, flood, acts of terror, storms, accident,
riot, war and invasion, governmental requisition or priorities, acts of God, or other causes beyond Seller's reasonable control.
21. Electronic Signatures: The parties agree that signatures given by electronic means and over each party’s internet websites shall constitute legally binding
signatures of such parties, and no party shall object on the basis that such signatures were given by electronic means.
22. Entire Agreement: Except as otherwise agreed in writing signed by Buyer and Seller, the applicable Seller Sales Order Acknowledgement, together with these
terms and conditions of sale constitute the entire agreement between Seller and Buyer relating to the sale of such goods by Seller.
Standard Warranty Period is 12/18 months after completion/shipment.

CG Thermal, LLC.
8950 Dutton Dr. Twinsburg, Ohio, USA 44087
Phone: 330-405-0844 – Fax: 330-487-0304
www.cgthermal.com