Calumet Montana Refining entered into a new agreement with Stonebriar in which CMR sold certain of its assets to Stonebriar for $150 million and leased back the same assets. The company's unrestricted subsidiary, Montana Renewables ("MRL"), modified its existing agreements with Stonebriar to allow for their early termination ("MRL Amended Agreements").

CMR Funding Agreement: The CMR Funding Agreement has closed and CMR received initial proceeds of $110 million, with the remaining $40 million due upon a future Eligible Capital Event (discussed below).  Calumet intends to use the proceeds to reduce outstanding borrowings under its revolving credit facility. This transaction carries an approximate 10.75% cost of capital once fully drawn and offers certain strategic early termination options.

MRL Amended Agreements: The existing sale and leaseback agreements between MRL and Stonebriar encompass MRL's Renewable Diesel Unit, Renewable Hydrogen Plant, and Pretreatment Unit.  These agreements generated $400 million of funding to MRL during 2021 and 2022.  The agreements have now been amended to allow for their early termination upon the receipt of proceeds from an Eligible Capital Event including a loan guarantee from the U.S. Department of Energy ("DOE"). There can be no assurance that the Company will be awarded a conditional commitment for a loan guarantee from the DOE or that any DOE-guaranteed loan will be funded. Upon termination, MRL can repurchase all of its assets from Stonebriar for an amount declining with time.  If the repurchase occurs on November 1 of this year, it would cost approximately $403 million.