Company: GULTU
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001201
Chunk: 30

Company: Gulf Coast Ultra Deep Royalty Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 30
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orum is present, or (v) the exercise by HOGA of the right
to call all of the Royalty Trust units as described in the next paragraph. The overriding royalty interests terminate upon the termination
of the Royalty Trust, other than in certain limited circumstances where the Royalty Trust has been permitted to transfer the overriding
royalty interests to a third party pursuant to the terms of the Royalty Trust Agreement (in which case the overriding royalty interests
may extend through June 3, 2033).

HOGA
has a call right with respect to the outstanding Royalty Trust units at $10 per Royalty Trust unit. In addition, if the Royalty Trust
units are then listed for trading or admitted for quotation on a national securities exchange or any quotation system and the volume-weighted
average price per Royalty Trust unit is equal to $0.25 or less for the immediately preceding consecutive nine-month period, HOGA may
purchase all, but not less than all, of the outstanding Royalty Trust units at a price of $0.25 per Royalty Trust unit so long as HOGA
tenders payment within 30 days following the end of such nine-month period.

4.
INCOME TAXES

Tax
counsel to the special committee of the board of directors of MMR advised the Royalty Trust at the time of formation that, for U. S. federal
income tax purposes, in its opinion, the Royalty Trust will be treated as a grantor trust and not as an unincorporated business entity.
No ruling has been or will be requested from the Internal Revenue Service (IRS) or another taxing authority. As a grantor trust, the
Royalty Trust will not be subject to tax at the Royalty Trust level. Rather, the Royalty Trust unitholders will be considered to own
and receive the Royalty Trust’s assets and income and will be directly taxable thereon as though no trust were in existence. Under
Treasury Regulations, the Royalty Trust is classified as a widely held fixed investment trust. Those Treasury Regulations require the
sharing of tax information among trustees and intermediaries that hold a trust interest on behalf of or for the account of a beneficial
owner or any representative or agent of a trust interest holder of fixed investment trusts that are classified as widely held fixed investment
trusts. These reporting requirements provide for the dissemination of trust tax information by the trustee to intermediaries who are
ultimately responsible for reporting the investor-specific information