[sheet: Cover]

[sheet: Cover]
Field | Value
Document Title | Funds Flow Memorandum — Closing
Transaction | Formation of Solstice Plateau Energy Holdings LLC — 50/50 Joint Venture between Calloway-Briggs Renewables Inc. and Lumen Ridge Infrastructure Partners LLC
Closing Date | February 20, 2024
Prepared By | Megan Chu, Lead Associate, Calderwood & Harkness LLP
Reviewed By | James Prentice, Responsible Partner, Calderwood & Harkness LLP
Matter Number | 48172.001
Date of Memorandum | February 19, 2024 (updated February 20, 2024)
Distribution | Rebecca Whitfield (CBR General Counsel); Priya Narayanan (CBR CFO); Daniel Estrada (CBR SVP — Corporate Development); Amanda Prescott (Lumen Ridge General Counsel & CCO); Victor Osei (Lumen Ridge CFO / Initial JV CFO); Gregory Haverford III (Haverford, Quinn & Steele LLP); Joanna Kline (Haverford, Quinn & Steele LLP); Patricia Henning (Trident National Bank, N.A.); Continental Fiduciary Trust Company
Escrow Account Reference | CFT-2024-00847
Escrow Agent | Continental Fiduciary Trust Company, 1105 North Market Street, Suite 1200, Wilmington, DE 19801
Confidentiality Notice | PRIVILEGED AND CONFIDENTIAL — Attorney Work Product. This memorandum is prepared by Calderwood & Harkness LLP in connection with the closing of the above-referenced transaction and is intended solely for the use of the addressees.
[sheet: Summary of Funds]
Line Item | Source Entity | Destination Entity | Amount | Type | Notes
A. CBR Cash Equity Contribution | Calloway-Briggs Renewables Inc. | Solstice Plateau Energy Holdings LLC (via escrow release) | $60,000,000.00 | Equity Contribution | Cash portion of CBR's initial capital contribution; in-kind contribution of Project Portfolio ($90,000,000 agreed valuation) made separately via Contribution Agreement
B. Lumen Ridge Cash Equity Contribution | Lumen Ridge Infrastructure Partners LLC | Solstice Plateau Energy Holdings LLC (via escrow release) | $150,000,000.00 | Equity Contribution | Full initial capital contribution from Lumen Ridge; all cash
Total Cash Released from Escrow | Solstice Plateau Energy Holdings LLC | $210,000,000.00 | Aggregate | Sum of Lines A + B
C. Calderwood & Harkness LLP Legal Fees (CBR) | Solstice Plateau Energy Holdings LLC | Calderwood & Harkness LLP | $1,025,000.00 | Legal Fee — Holdback Release | Release of 50% holdback on C&H engagement fee ($2,050,000 total actual billed; 50% = $1,025,000 released upon successful closing per engagement letter)
D. Ridgeline Barrow & Co. Success Fee (CBR) | Calloway-Briggs Renewables Inc. | Ridgeline Barrow & Co. | $500,000.00 | Advisory Fee — Success Fee | Success fee payable upon closing per engagement letter dated September 20, 2023; $1,250,000 flat fee previously paid; $500,000 success fee due at closing; total advisory fee: $1,750,000
E. Haverford, Quinn & Steele LLP Legal Fees (Lumen Ridge) | Lumen Ridge Infrastructure Partners LLC | Haverford, Quinn & Steele LLP | $875,000.00 | Legal Fee | Lumen Ridge counsel legal fees; paid directly by Lumen Ridge outside of JV account per engagement letter
F. Continental Fiduciary Trust Company Escrow Agent Fee | Solstice Plateau Energy Holdings LLC | Continental Fiduciary Trust Company | $15,000.00 | Escrow Agent Fee | One-time escrow administration fee per Escrow Agreement §6; deducted from JV operating account post-release
Net Cash to JV Operating Account | Solstice Plateau Energy Holdings LLC | $208,960,000.00 | Net Proceeds | Total escrow release ($210,000,000) less C&H holdback release ($1,025,000) and escrow agent fee ($15,000); Ridgeline Barrow and HQS fees paid directly by respective members
[sheet: Escrow Funding Detail]
Item No. | Depositor | Depositor Address | Depositor EIN | Escrow Agent | Escrow Account Reference | Amount Deposited | Date Deposited | Confirmation Received | Wire Reference No. | Notes
1 | Calloway-Briggs Renewables Inc. | 2300 Travis Street, Suite 4200, Houston, TX 77006 | 46-2837451 | Continental Fiduciary Trust Company | CFT-2024-00847 | $60,000,000.00 | 2024-02-05 | Confirmed — February 5, 2024 | CFT-WR-2024-01287 | Cash equity contribution deposited per Section 3.2 of Escrow Agreement dated December 4, 2023
2 | Lumen Ridge Infrastructure Partners LLC | 301 Tresser Boulevard, Suite 1400, Stamford, CT 06901 | 83-1924076 | Continental Fiduciary Trust Company | CFT-2024-00847 | $150,000,000.00 | 2024-02-05 | Confirmed — February 5, 2024 | CFT-WR-2024-01288 | Full cash equity contribution deposited per Section 3.2 of Escrow Agreement dated December 4, 2023
3 | Interest Accrued on Escrow Deposits | N/A | N/A | Continental Fiduciary Trust Company | CFT-2024-00847 | $0.00 | N/A | N/A | N/A | Per Escrow Agreement §5, interest accrued on escrowed funds is allocated pro rata to each depositor and netted upon release; de minimis interest to be credited to JV operating account
Total in Escrow | $210,000,000.00
[sheet: Wire Instructions]
Wire ID | Payee / Beneficiary | Payee Address | Bank Name | Bank Address | ABA / Routing Number | Account Number | Account Name | Reference / Memo | SWIFT Code
W-1 | Continental Fiduciary Trust Company (Escrow Agent — Inbound) | 1105 North Market Street, Suite 1200, Wilmington, DE 19801 | Continental Fiduciary Trust Company | 1105 North Market Street, Suite 1200, Wilmington, DE 19801 | 031-100-XXX | XXXX-XXXX-0847 | Solstice Plateau Energy Holdings LLC Escrow Account — CFT-2024-00847 | CBR/Lumen Ridge JV Closing Escrow | CFTDUS33
W-2 | Solstice Plateau Energy Holdings LLC (Operating Account — Primary Recipient) | 2300 Travis Street, Suite 4210, Houston, TX 77006 | Trident National Bank, N.A. | 383 Madison Avenue, 12th Floor, New York, NY 10179 | 021-000-XXX | XXXX-XXXX-4210 | Solstice Plateau Energy Holdings LLC — Operating Account | Closing Equity Contributions / Ref: TNB-EIF-2024-0193 | TRNBUS33
W-3 | Calderwood & Harkness LLP (Holdback Release) | 1000 Louisiana Street, Suite 5500, Houston, TX 77002 | First Alliance Trust Bank, N.A. | One Wall Street, New York, NY 10005 | 021-000-XXX | XXXX-XXXX-5500 | Calderwood & Harkness LLP — Client Trust Account | Matter No. 48172.001 — Holdback Release | FATBUS33
W-4 | Ridgeline Barrow & Co. (Success Fee) | 811 Main Street, Suite 3100, Houston, TX 77002 | Lone Star Commerce Bank | 717 Texas Avenue, Houston, TX 77002 | 111-000-XXX | XXXX-XXXX-3100 | Ridgeline Barrow & Co. — Operating Account | CBR Advisory — Success Fee / Closing | LSCBUS44
[sheet: Funds Flow Sequence]
Step No. | Timing / Sequence | Action | Payor / Source | Payee / Destination | Amount | Wire ID Ref | Condition Precedent | Responsible Party | Confirmation Method | Status
1 | 9:00 AM ET | Confirmation that all closing conditions have been satisfied or waived (including receipt of all executed documents, officer's certificates, secretary's certificates, legal opinions, good standing certificates, Cascadia Fund III consent, Brazos Point permit confirmation, and Certificate of Formation filing with DE SOS (File No. 7849312, filed Feb 19, 2024)) | N/A | N/A | N/A | N/A | Execution and delivery of all closing deliverables per Closing Checklist | Megan Chu (Calderwood & Harkness LLP) / Joanna Kline (Haverford, Quinn & Steele LLP) | Email confirmation to all parties | Completed
2 | 9:30 AM ET | Joint written instruction delivered by CBR and Lumen Ridge to Continental Fiduciary Trust Company to release all escrowed funds | Calloway-Briggs Renewables Inc. / Lumen Ridge Infrastructure Partners LLC | Continental Fiduciary Trust Company | N/A | N/A | Completion of Step 1; joint instruction signed by Rebecca Whitfield (CBR) and Amanda Prescott (Lumen Ridge) | Rebecca Whitfield / Amanda Prescott | Executed release instruction via email and original by overnight delivery | Completed
3 | 10:00 AM ET | Release of CBR cash equity contribution from escrow to Solstice Plateau Energy Holdings LLC operating account at Trident National Bank, N.A. | Continental Fiduciary Trust Company (Escrow Account CFT-2024-00847) | Solstice Plateau Energy Holdings LLC — Operating Account at Trident National Bank, N.A. | $60,000,000.00 | W-1 → W-2 | Receipt of joint release instruction (Step 2) | Continental Fiduciary Trust Company | Wire confirmation from Trident National Bank, N.A. | Completed
4 | 10:00 AM ET | Release of Lumen Ridge cash equity contribution from escrow to Solstice Plateau Energy Holdings LLC operating account at Trident National Bank, N.A. | Continental Fiduciary Trust Company (Escrow Account CFT-2024-00847) | Solstice Plateau Energy Holdings LLC — Operating Account at Trident National Bank, N.A. | $150,000,000.00 | W-1 → W-2 | Receipt of joint release instruction (Step 2) | Continental Fiduciary Trust Company | Wire confirmation from Trident National Bank, N.A. | Completed
5 | 11:00 AM ET | Confirmation of receipt of $210,000,000 aggregate in JV operating account | N/A | N/A | $210,000,000.00 | W-2 | Wire confirmations for Steps 3 and 4 | Patricia Henning (Trident National Bank, N.A.) / Victor Osei (JV CFO) | Bank statement / confirmation email | Completed
6 | 11:30 AM ET | Disbursement of Calderwood & Harkness LLP holdback release from JV operating account (per engagement letter; 50% of $2,050,000 actual billed) | Solstice Plateau Energy Holdings LLC — Operating Account | Calderwood & Harkness LLP — Client Trust Account | $1,025,000.00 | W-2 → W-3 | Confirmation of closing completion (Step 5); direction from CBR | Priya Narayanan (CBR CFO) / Victor Osei (JV CFO) | Wire confirmation from Calderwood & Harkness LLP | Completed
7 | 11:30 AM ET | Disbursement of Ridgeline Barrow & Co. success fee from CBR (payable by CBR, not from JV account) | Calloway-Briggs Renewables Inc. | Ridgeline Barrow & Co. | $500,000.00 | W-4 | Closing completed; per engagement letter dated September 20, 2023 | Priya Narayanan (CBR CFO) | Wire confirmation from Ridgeline Barrow & Co. | Completed
8 | 12:00 PM ET | Closing declared effective; Megan Chu circulates closing confirmation email to all parties | N/A | N/A | N/A | N/A | All wires confirmed received | Megan Chu (Calderwood & Harkness LLP) | Email to full distribution list | Completed
[sheet: Contribution Reconciliation]
Member | Cash Contribution | In-Kind Contribution — Description | In-Kind Contribution — Agreed Value | In-Kind Contribution — Tax Basis | Built-In Gain | Total Initial Capital Contribution | Ownership Percentage | Source Document
Calloway-Briggs Renewables Inc. (EIN: 46-2837451) | $60,000,000.00 | Portfolio of 8 utility-scale solar development projects (aggregate 1,200 MW DC; 14,340 acres across TX, NM, AZ) | $90,000,000.00 | $34,200,000.00 | $55,800,000.00 | $150,000,000.00 | 50% | LLC Agreement §3.1; Contribution Agreement dated 12/4/2023; Ridgeline Barrow fairness analysis dated 11/15/2023 (range: $87M–$96M; agreed midpoint: $90M)
Lumen Ridge Infrastructure Partners LLC (EIN: 83-1924076) | $150,000,000.00 | N/A — all cash | $0.00 | N/A | N/A | $150,000,000.00 | 50% | LLC Agreement §3.1
Total | $210,000,000.00 | $90,000,000.00 | $34,200,000.00 | $55,800,000.00 | $300,000,000.00 | 100%