Company: GULTU
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001201
Chunk: 12

Company: Gulf Coast Ultra Deep Royalty Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 12
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 of all of its rights, title and interest in and to the onshore Highlander subject interest
pursuant to a purchase and sale agreement with HOGA. The onshore Highlander subject interest was sold subject to the overriding royalty
interest in future production held by the Royalty Trust. As a result of the Highlander Sale, HOGA has a 72 percent working interest and
an approximate 48 percent net revenue interest in the onshore Highlander subject interest. The Royalty Trust continues to hold a 3.6
percent overriding royalty interest in the onshore Highlander subject interest. HOGA is the operator of the Highlander subject interest.
The onshore Highlander subject interest is the only subject interest in which HOGA has an interest, as McMoRan previously had relinquished,
allowed to expire or sold all of the other subject interests.

HOGA
may at any time transfer all or part of the onshore Highlander subject interest. The Royalty Trust unitholders are not entitled to vote
on any transfer, and the Royalty Trust will not receive any proceeds from the transfer of the subject interest. Following any such transfer,
the onshore Highlander subject interest would continue to be subject to the overriding royalty interests, but the net proceeds from the
transferred subject interests would be calculated separately and paid by the transferee. Unless HOGA and the transferee agree otherwise,
the transferee would be responsible for all of HOGA’s obligations relating to the overriding royalty interests on the subject interest
transferred, and HOGA would have no continuing obligation to the Royalty Trust for the subject interest. Any purchaser could have a weaker
financial position and/or be less experienced in natural gas development and production than HOGA.

The
Royalty Trust is limited in duration, may be dissolved upon certain events and the Royalty Trust units are subject to call features.

The
Royalty Trust will dissolve on the earliest to occur of (i) June 3, 2033, (ii) the sale of all of the overriding royalty interests, (iii)
the election of the Trustee following its resignation for cause (as more fully described in the Royalty Trust Agreement), (iv) a vote
of the holders of 66⅔% or more of the outstanding Royalty Trust units held by persons other than FCX, any of its affiliates, or
HOGA, at a duly called meeting of the Royalty Trust unitholders at which a quorum is present, or (