Company: GULTU
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001201
Chunk: 13

Company: Gulf Coast Ultra Deep Royalty Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 13
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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.

The
Royalty Trust is passive in nature and neither the Royalty Trust nor the Royalty Trust unitholders have any ability to influence HOGA
or to control the development or operation of the onshore Highlander subject interest.

The
Royalty Trust units are a passive investment that entitle the Royalty Trust unitholders only to receive cash distributions, if any, from
the overriding royalty interests. Royalty Trust unitholders have no voting rights with respect to HOGA and, therefore, have no managerial,
contractual or other ability to influence HOGA’s activities or the development or operations of the onshore Highlander subject
interest. Additionally, HOGA is not under any obligation to fund or to commit any resources to the exploration or development of the
onshore Highlander subject interest.

HOGA
or FCX may sell Royalty Trust units in the public or private markets, and any such sales may have a material adverse effect on the trading
price of the Royalty Trust units.

At
December 31, 2024, the Royalty Trust had 230,172,696 Royalty Trust units outstanding. In connection with the Highlander Sale on February
5, 2019, McMoRan assigned 31,143,150 Royalty Trust units to HOGA and retained 31