Document:

EX-10.4

 EXHIBIT 10.4 
 MASTER CONVEYANCE OF OVERRIDING ROYALTY INTEREST 

BY AND BETWEEN 

MCMORAN OIL & GAS LLC, AS
GRANTOR 
 AND 
 GULF COAST ULTRA DEEP ROYALTY TRUST, AS GRANTEE 

DATED 
                     , 2013 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	PAGE	 
	 ARTICLE I
	  			
	 CERTAIN DEFINITIONS AND REFERENCES
	  			
	 1.1
	 	Certain Defined Terms	  	 	1	  
	 1.2
	 	References and Titles	  	 	9	  
		
	 ARTICLE II
	  			
	 LIMITED TERM OVERRIDING ROYALTY CONVEYANCE
	  			
	 2.1
	 	Grant of Overriding Royalty Interest; Termination	  	 	10	  
	 2.2
	 	Overriding Royalty Percentage	  	 	13	  
	 2.3
	 	Filing Fees	  	 	14	  
	 2.4
	 	Measurement	  	 	14	  
	 2.5
	 	Counterparts and Recording	  	 	14	  
	 2.6
	 	Compliance Reports	  	 	15	  
		
	 ARTICLE III
	  			
	 CERTAIN MATTERS RELATED TO THE SUBJECT INTERESTS
	  			
	 3.1
	 	Abandonments	  	 	15	  
	 3.2
	 	Contracts with Affiliates	  	 	16	  
	 3.3
	 	Right to Use Wellbores	  	 	16	  
	 3.4
	 	Amendment of Drilling or Spacing Units/Unitization	  	 	16	  
	 3.5
	 	Operations	  	 	16	  
	 3.6
	 	Leases	  	 	17	  
	 3.7
	 	Mortgages and Security Interests	  	 	17	  
		
	 ARTICLE IV
	  			
	 PAYMENTS
	  			
	 4.1
	 	Payments	  	 	18	  
	 4.2
	 	Burden-Free Royalty	  	 	18	  
	 4.3
	 	Tax Withholding	  	 	19	  
		
	 ARTICLE V
	  			
	 ASSIGNMENT
	  			
	 5.1
	 	Assignment by Grantee	  	 	19	  
	 5.2
	 	Assignment by Grantor	  	 	20	  
	 5.3
	 	Covenant Running with the Land	  	 	20	  
	 5.4
	 	Special Trust Assignment	  	 	20	  
	 5.5
	 	Preferential Right to Purchase in Favor of Grantor	  	 	20	  

  
 i 

 TABLE OF CONTENTS 

(CONT.) 
  

							
	 	 	 	  	PAGE	 
	 ARTICLE VI
	  			
	 ACCESS TO BOOKS AND RECORDS; CONFIDENTIALITY
	  			
	 6.1
	 	Books and Records	  	 	22	  
	 6.2
	 	Confidentiality	  	 	22	  
		
	 ARTICLE VII
	  			
	 DISCLAIMERS
	  			
	 7.1
	 	DISCLAIMERS	  	 	23	  
		
	 ARTICLE VIII
	  			
	 TERMINATION
	  			
	 8.1
	 	Termination of Overriding Royalty Interest	  	 	24	  
	 8.2
	 	Termination of Leases	  	 	24	  
		
	 ARTICLE IX
	  			
	 REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION, REMEDIES
	  			
	 9.1
	 	Representations, Warranties and Covenants of Grantor	  	 	24	  
	 9.2
	 	Indemnity	  	 	25	  
		
	 ARTICLE X
	  			
	 MISCELLANEOUS
	  			
	 10.1
	 	Governing Law	  	 	27	  
	 10.2
	 	No Personal Liability by Grantee	  	 	27	  
	 10.3
	 	Nature of Overriding Royalty Interest; Intentions of the Parties	  	 	28	  
	 10.4
	 	Notices	  	 	28	  
	 10.5
	 	Amendments	  	 	29	  
	 10.6
	 	Counterparts	  	 	29	  
	 10.7
	 	Binding Effect	  	 	29	  
	 10.8
	 	Partition	  	 	29	  
	 10.9
	 	Partial Invalidity	  	 	29	  
	 10.10
	 	Effective Date	  	 	30	  
	 10.11
	 	Recording	  	 	30	  
	 10.12
	 	No Third Party Beneficiaries	  	 	30	  
	 10.13
	 	Limitation of Liability	  	 	31	  

 Exhibit A – Prospect Areas/Scheduled Working Interest 
 Exhibit B – First RC Leases 
  Exhibit C – Recordable Memorandum 

  
 ii 

 MASTER CONVEYANCE OF OVERRIDING ROYALTY INTEREST 

THIS MASTER CONVEYANCE OF OVERRIDING ROYALTY INTEREST (this “Master Conveyance” or this
“Agreement”) dated as of [            ], 2013 is made by and between McMoRan Oil & Gas LLC, a limited liability company organized under the laws of
the state of Delaware and a wholly owned subsidiary of McMoRan Exploration Co., as Grantor, and Gulf Coast Ultra Deep Royalty Trust, a statutory trust formed under the laws of the state of Delaware, as Grantee. 

WHEREAS, capitalized terms used herein and not otherwise defined shall have the meanings given such terms in Article I below;
and 
 WHEREAS, Grantor is the owner of certain oil, gas and/or mineral properties; and 

WHEREAS, Grantor desires to convey to Grantee the Overriding Royalty Interest; 

NOW, THEREFORE, for and in consideration of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Grantor and Grantee agree as follows: 
 ARTICLE I 

CERTAIN DEFINITIONS AND REFERENCES 
 1.1 Certain Defined Terms. When used in this Master Conveyance, the following terms shall have the respective meanings assigned to them in this Section 1.1: 

“Add-On Leases” shall mean (a) each Lease (or interest in a Lease) that (i) is not an Existing Subject
Interest and (ii) in which an interest (or additional interest) is acquired by Grantor or any of its Affiliates during the Grant Period and (b) following the Grant Period, any Lease taken upon or in anticipation of expiration or
termination of any Lease (if executed and delivered during the term of or within one year after expiration of the predecessor Lease), insofar only as any such replacement lease covers the Subject Formations under the same lands described in the
original Lease. 
 “Affiliate” shall mean, with respect to any Person, (a) any other Person
directly or indirectly owning, controlling or holding with power to vote more than 50% of the outstanding voting securities of such Person, (b) any other Person more than 50% of whose outstanding voting securities are directly or indirectly
owned, controlled or held with power to vote by such Person, and (c) any other Person directly or indirectly controlling, controlled by or under common control with such Person; provided that in no case shall any Unitholder (as defined in the
Trust Agreement) be deemed an Affiliate of the Trust. 
 “Agreed Rate” shall mean, for and during each
calendar month, the prime rate published under “Money Rates” in the Wall Street Journal on the first day of such calendar month for which such a prime rate is so published, or if the Wall Street Journal shall cease publication or cease
publishing the “prime rate” on a regular basis, such other regularly published average prime rate applicable to commercial banks as is acceptable to the Trustee in its reasonable discretion. 

 “BOEM” shall mean the United States Bureau of Ocean Energy
Management. 
 “Claims” shall have the meaning given such term in Section 9.2(b).

 “Depositor” shall mean Freeport-McMoRan Copper & Gold Inc. 

“ED Unrecorded Leases” shall mean all Leases in which Grantor or any Affiliate of Grantor holds any interest
(directly or through any agent or nominee) as of the Effective Date, other than the First RC Leases. 
 “Effective
Date” shall have the meaning given such term in Section 10.10. 
 “Effective
Time” shall have the meaning given such term in Section 2.1(f). 
 “End Date”
shall mean [            ], 2033. 
 “Excepted Permitted
Lien” shall mean (i) any Permitted Lien created or caused by Grantee or (ii) other than any Permitted Lien created by, through or under Grantor or its Affiliates, any Permitted Lien which creates a defect in the title of
Grantor or any of its Affiliates in, to or under any Subject Interest that reduces the Working Interests of Grantor or its Affiliates with respect to any Subject Interests, other than any such defect or reduction in Working Interest occurring after
the Effective Date arising as a result of any non-payment by Grantor or its Affiliates of any financial obligation which Grantor or its Affiliates has assumed or otherwise is obligated to pay (whether under an operating agreement existing at the
time Grantor or its Affiliate acquired an interest in the Subject Interest, by contract or otherwise). 
 “Existing
Subject Interests” shall mean all right, title and interest of Grantor and its Affiliates in, to or under any Lease as of the Effective Date (whether held directly or through an agent or nominee), including all First RC Leases and ED
Unrecorded Leases, insofar, and only insofar as such right, title or interest covers Hydrocarbons produced or that may be produced from the Subject Formation(s) from and after the Effective Date; provided, however, that such interest
shall not include any right, title or interest of Grantor or its Affiliates in and to any personal property, fixtures, structures or equipment. 
 “First RC Leases” shall mean the Leases set forth on Exhibit B. 
 “Gas” shall mean natural gas, coalbed methane and other gaseous hydrocarbons. 
 “Governmental Authority” shall mean the country, the state, county, city and political subdivisions in which any Person or such Person’s property is located or which exercises
valid jurisdiction over any such Person or such Person’s property, and any court, agency, department, commission, board, bureau or instrumentality of any of them which exercises valid jurisdiction over any such Person or such Person’s
property. 

  
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 “Grant Period” shall mean a period of time from
the Effective Date through the earlier of (i) December 5, 2017, or (ii) the Termination Date.  

“Grantee” shall mean the Trust, as the Person named in the preamble to this Master Conveyance as grantee, and its
successors and assigns and any wholly-owned subsidiary of the Grantee designated as a Grantee in writing to Grantor by the Grantee for purposes of this Master Conveyance. 
 “Grantor” shall mean the Person named in the preamble of this Master Conveyance as grantor, and its successors and assigns. 

“Gross Proceeds” means an amount equal to the Market Value of all sales of Production plus proceeds received on
account of any Production lost, (a) after deduction or withholding of Specified Taxes allocable to such Production or such sale thereof, and (b) minus any Specified Post-Production Costs allocable to such Production. 

“Hydrocarbons” shall mean Oil and Gas. 
 “Laws” shall mean all local, state, federal, foreign and international laws, rules, regulations, treaties, guidelines, permits, orders, judicial and administrative decisions and
other legally enforceable requirements. 
 “Lease” shall mean any Oil, Gas and/or
other mineral lease covering or otherwise related to all or any portion of (a) a Prospect Area, (b) any area with which all or any portion of a Prospect Area is aggregated by unitization, pooling or similar aggregation principles,
(c) all other rights in, to or under any other instrument or fee tract related to, and all other rights to drill for, develop and produce Hydrocarbons from, a Prospect Area and any area with which all or any portion of a Prospect Area is
aggregated by unitization, pooling or similar aggregation principles and (d) following the Grant Period, any replacement lease taken upon or in anticipation of expiration or termination of any such Lease (if executed and delivered during the
term of or within one year after expiration of the predecessor Lease), insofar only as any such replacement lease covers the Subject Formations under the same lands described in the original Lease. 

“Lease Burdens” shall mean royalties, overriding royalties (other than the Overriding Royalty Interests), net
profits interests, production payments and other burdens on production. 
 “Lien” shall mean, with
respect to any property or assets, any right or interest therein of a party to secure liabilities owed to it or any other arrangement with such party that provides for the payment of such liabilities out of such property or assets or that allows
such party to have such liabilities satisfied out of such property or assets prior to the general creditors of any owner thereof, including any lien, mortgage, security interest, pledge, deposit, rights of a vendor under any title retention or
conditional sale agreement or lease substantially equivalent thereto, tax lien, mechanic’s or materialman’s lien, or any other charge or encumbrance for security purposes, whether arising by Law or agreement or otherwise.
“Lien” also means (a) any production payment or other similar burden on the Hydrocarbons attributable to the Subject Interests, and (b) any filed financing statement or other filing, notice, arrangement or action
that would serve to perfect a Lien described in the preceding sentence, regardless of whether such financing statement or other filing is filed, such notice is given, or such arrangement or action is undertaken before or after such Lien exists.

  
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 “Market Value” shall mean, with respect to any Production and
without duplication, the sum of (a) the proceeds received by Grantor (or any Affiliate or agent of Grantor that markets the Production on behalf of Grantor or its Affiliates, Grantee or any owner of a Lease Burden) from the first sale of such
Production to a Non-Affiliate, regardless of the location of such sale (whether on the applicable land subject to the Leases or at any point downstream) and (b) all proceeds from the sale of Hydrocarbons attributable to Lease Burdens (to the
extent a Lease Burden burdens the Subject Interests), if not marketed by Grantor or any Affiliate or agent of Grantor and whether received by Grantor, its Affiliates, or not, based on pricing received by Grantor. 

“Memorandum” shall have the meaning given such term in Section 10.11(b). 

“NC-Acquired WI” shall have the meaning given such term in Section 3.5(b). 

“Non-Affiliate” shall mean with respect to Grantor, any Person who is not an Affiliate of Grantor. 

“Non-Consent Hydrocarbons” means those Hydrocarbons produced from a Subject Interest during the applicable period
of recoupment or reimbursement pursuant to a Non-Consent Provision covering that Subject Interest, which Hydrocarbons have been relinquished to the consenting party or participating party, other than Grantor or its Affiliates, under the terms of
such Non-Consent Provision as the result of an election by Grantor or its Affiliates not to participate in the particular operation, and at such time as Grantor’s or its Affiliates’ back-in interest is applicable (such that Grantor’s
or its Affiliates’ interest is entitled to a share of such Hydrocarbons) such Hydrocarbons no longer shall constitute Non-Consent Hydrocarbons. 
 “Non-Consent Provision” means a contractual provision contained in an applicable operating agreement, unit operating agreement, contract for development, or other similar
instrument that is a Permitted Lien under clause (e) of the definition of Permitted Lien, which provision covers non-consent operations and provides for relinquishment of Hydrocarbon production by non-consenting or non-participating parties
during a period of recoupment or reimbursement of costs and expenses of the consenting or participating parties. 

“Oil” shall mean crude oil, condensate and other liquid or liquefiable hydrocarbons. 

“ORRI Purchase Notice” shall have the meaning give such term in Section 5.5(g). 

“ORRI Purchase Option” shall have the meaning given such term in Section 5.5(g). 

“ORRI Purchase Option Closing” shall have the meaning given such term in Section 5.5(g). 

“ORRI Purchase Price” shall be an amount in cash equal to (i) $10.00 (appropriately adjusted for
subdivisions, splits or combinations as provided in the Trust Agreement) multiplied by (ii) the aggregate number of outstanding Units (as such term is defined in the Trust 

  
 4 

 
Agreement), other than (A) the Units held of record by Depositor or any Subsidiary of Depositor and (B) Company Convertible Units (as such term is defined in the Trust Agreement), as of
the date of the closing of the ORRI Transfer by the Trust. 
 “ORRI Transfer” shall mean any transfer of
the Overriding Royalty Interests by the Trust other than a transfer pursuant to Section 5.4. 
 “Outer
Continental Shelf Lands Act” shall mean the Outer Continental Shelf Lands Act of 1953, 43 U.S.C. §§ 1331-1356, as amended. 
 “Overriding Royalty Interest” shall mean an overriding royalty interest as created by each of the Recordable Conveyances delivered to Grantee pursuant to this Master Conveyance.

 “Overriding Royalty Payment Percentage” shall have the meaning given such term in
Section 2.2(b). 
 “Overriding Royalty Percentage” shall have the meaning given such term in
Section 2.2(a). 
 “Permitted Liens” shall mean, with respect to the Overriding Royalty
Interest and the grant of the Overriding Royalty Interest hereunder (in the case of (a), (d), (e)(1), (f), (g), (h), (i), (j) and (k) and (l)) and, with respect to the real property interest on which the Overriding Royalty Interest is
granted only and not with respect to the Overriding Royalty Interest (in the case of (b), (c) and (e)(2)): 

(a) statutory Liens for taxes, assessments or other governmental charges or levies that are not yet delinquent or that are
being contested in good faith by appropriate action; 
 (b) statutory Liens for operators’, carriers’,
warehousemen’s, repairmen’s, mechanics’, materialmen’s, or other like Liens, in each case only to the extent arising by operation of law in the ordinary course of business, that do not secure obligations that are delinquent and
that do not in any case secure indebtedness for borrowed money or similar obligations; 
 (c) Liens and other
encumbrances existing of the later of (i) the Effective Date and (ii) the date Grantor acquires its interest in the applicable Subject Interest so long as such Liens and other encumbrances neither (x) secure indebtedness for borrowed
money or similar obligations or any obligations of any kind, in each case, of Grantor or its Affiliates that are delinquent, nor (y) prevent Grantee from receiving the Overriding Royalty Interests in accordance with this Agreement and the
applicable Recordable Conveyance, or the proceeds thereof; 
 (d) royalties, overriding royalties and other
similar burdens or encumbrances to the extent they exist as to any Subject Interest as of the date of the Recordable Conveyance of such Subject Interest to the extent such do not prevent Grantee from receiving the Overriding Royalty Interest in
accordance with the applicable Recordable Conveyance, or the proceeds thereof; 

  
 5 

 (e) Liens under operating agreements, unit agreements, unitization and
pooling designations and declarations, farmout and farmin agreements, exploration agreements, area of mutual interest agreements, gathering and transportation agreements, processing agreements, and Hydrocarbon purchase contracts, and other contracts
(excluding contracts for borrowed money, hedging contracts and other contracts with financial institutions) that (1) have been entered into in the ordinary course of the oil and gas business prior to the time the applicable Recordable
Conveyance is first filed of record in the appropriate records of the BOEM or the applicable parish, provided that (i) any such Liens in favor of Grantor or any Affiliate of Grantor are Permitted Liens only to the extent that the Overriding
Royalty Interest is expressly excluded therefrom and not subject thereto and (ii) any such Liens that secure obligations that are delinquent as of the date of the Recordable Conveyance conveying the applicable Overriding Royalty Interest are
not Permitted Liens or (2) are entered into in the ordinary course of the oil and gas business after the time the applicable Recordable Conveyance is first filed of record in the appropriate records of the BOEM or the applicable parish,
provided that (i) any such Liens are Permitted Liens only to the extent that the Overriding Royalty Interest is excluded therefrom and not subject thereto and (ii) any such Liens that secure obligations that are delinquent at the time of
the grant of the Overriding Royalty Interest are not Permitted Liens or; 
 (f) easements, surface leases and
surface rights, plat restrictions, zoning Laws, restrictive covenants and conditions, and building and other land use Laws and similar encumbrances, none of which materially interferes with the development and operation of the property subject
thereto for the production of Hydrocarbons or for the use for which the same are held; 
 (g) rights vested in or
reserved to any Governmental Authority to regulate the Subject Interests, to terminate any right, power, franchise, license or permit afforded by such Governmental Authority, or to purchase, condemn, expropriate or designate a buyer of any of the
Subject Interests; 
 (h) all rights to consent by, required notices to, filings with or other actions by
Governmental Authorities in connection with the sale, disposition, transfer or conveyance of federal, state, or other governmental oil and gas leases or interests therein or related thereto, which cannot be unreasonably withheld or where the same
are customarily obtained subsequent to the assignment, disposition or transfer of such oil and gas leases or interests therein, or such operations; 
 (i) required non-governmental third party consents to assignments which have been obtained or waived by the appropriate parties or which need not be obtained prior to an assignment or with respect to
which consent cannot be unreasonably withheld and preferential rights to purchase which have been waived by the appropriate parties or for which the time period for asserting such rights has expired without the exercise of such rights; 

(j) this Agreement; 

  
 6 

 (k) any Recordable Conveyance; and 

(l) Liens created or caused by Grantee. 
 The references in this definition to Liens and other encumbrances apply only to the extent the same are valid and subsisting, and affect the Subject Interests, and shall not be deemed to recognize or
create any rights in third parties. 
 “Person” shall mean an individual, partnership (whether general
or limited), corporation (including a business trust), limited liability company, joint stock company, trust, unincorporated association, bank, joint venture, firm or other entity. 

“Production” shall mean all Hydrocarbons produced (or allocated or attributed to), saved and
sold from the Subject Interests (on a take basis) (for the avoidance of doubt, including, without duplication, Hydrocarbons attributed to the Overriding Royalty Interest or any Lease Burden (to the extent a Lease Burden burdens the Subject
Interests)) from and after the Effective Time, but excluding any (i) Hydrocarbons lost, flared or used for operating, development or production purposes in the ordinary course of business within the area covered by such Subject Interests or
(ii) Non-Consent Hydrocarbons.  
 “Production Costs” shall have the meaning given such term
in Section 4.2. 
 “Production Statement” shall have the meaning given such term in
Section 4.1(a). 
 “Prospect Area” shall mean each area under the heading “Prospect
Area” on Exhibit A. 
 “Prospect Area ORRI Average” means, as to each Prospect Area,
Overriding Royalty Interests covering the number of net acres equal to (i) the total number of gross acres covered by the Leases within a Prospect Area under which the Subject Interests exist, to the extent covering the Subject Formations,
multiplied by (ii) the Scheduled Working Interest with respect to such Prospect Area. 
 “Prospect Area ORRI
Deficiency” shall be deemed to exist with respect to a Prospect Area when the Overriding Royalty Interests granted with respect to Subject Interests within such Prospect Area cover a number of net acres less than the Prospect Area ORRI
Average for such Prospect Area. For example, if the Scheduled Working Interest for a Prospect Area is 70% and the gross acres covered by the Leases within a Prospect Area under which the Subject Interests exists, to the extent covering the Subject
Formations, are 20,000, the Prospect Area ORRI Average at that time is 14,000. If the Overriding Royalty Interest has been granted under one Subject Interest under a Lease of 10,000 acres in which Grantor’s and its Affiliates’ Working
Interest is 50% and another Subject Interest under a Lease of 10,000 acres in which Grantor’s and its Affiliates’ Working Interest is 60%, then the Overriding Royalty Interest will be granted with respect to 11,000 net acres ((50% x
10,000) + (60% x 10,000)), which is below the Prospect Area ORRI Average and therefore a Prospect Area ORRI Deficiency of 3,000 acres will be deemed to exist. 
 “Quarterly Date” shall mean each January 1, April 1, July 1 and October 1 of each calendar year. 

  
 7 

  “Recordable Conveyance” shall mean a Conveyance of the
Overriding Royalty Interest, in the form agreed by the Parties, between Grantor and Grantee, which assignment is delivered by Grantor to Grantee pursuant to Section 2.1 for filing in the files of the BOEM and/or in those parishes
adjacent to or where the Subject Interests are located. 
  “Required Consent” shall have the
meaning given such term in Section 9.1(d). 
 “Royalty” shall have the meaning given such
term in Section 2.1(e). 
 “Royalty Company Indemnitees” shall have the meaning given such
term in Section 9.2(a). 
 “SEC” shall mean the United States Securities and Exchange
Commission. 
 “Scheduled Working Interest” shall mean, with respect to any Subject Interest within any
Prospect Area listed on Exhibit A, the Working Interest set forth on Exhibit A under the heading “Scheduled Working Interest” that corresponds with such Prospect Area. 

“SI Costs” shall have the meaning given such term in Section 4.2. 

“Specified Post-Production Costs” shall mean any costs incurred for activities downstream of the wellhead for
gathering, transporting, compressing, treating, handling, separating, dehydrating or processing the Production prior to sale, provided that (a) such costs are allocated on the same basis as and proportionately with Grantor’s and
Grantee’s interests in the Production and the proceeds thereof, and (b) either (i) such costs are charged to Grantor by Non-Affiliates of Grantor or (ii) such costs are charged by Grantor or its Affiliates at current market rates
as then available from Non-Affiliates on the same basis as provided in Section 3.2 herein. 
 “Specified
Taxes” shall mean (a) production, severance, sales, excise and other similar taxes assessed upon, otherwise owing with respect to or measured by the amount or value of Hydrocarbons produced or the proceeds from the sale thereof
excluding income taxes, and (b) property or ad valorem taxes to the extent assessed on the interests subject to the Overriding Royalty Interest (whether assessed separately or as part of the value of such interests). 

“Subject Formation” shall mean the geologic formation (or formations) covered by or subject to any Lease the base
of which is below 18,000 feet true vertical depth subsea (measured from sea level, whether onshore or offshore), but shall not include (i) perforated intervals shallower than 18,000 feet true vertical depth subsea (measured from sea level,
whether onshore or offshore), or (ii) as respects OCS 0310, depths shallower than the salt or salt weld as seen in the South Marsh Island Block 217 No. 234 Well (which are deeper than 18,000 feet true vertical depth subsea measured
from sea level). 
 “Subject Interests” shall mean the Existing Subject Interests and all right, title
and interest of Grantor and its Affiliates (whether held directly or through an agent or nominee) in, to and under all Add-On Leases insofar, and only insofar, as such right, title and interest of Grantor and its Affiliates in, to and under the
Add-On Leases cover Hydrocarbons produced or that may be produced from the Subject Formation(s) from and after the Effective Date and prior to the Termination Date. 

  
 8 

  “Termination Date” shall mean the earlier of (i) the End
Date or (ii) such earlier date on which the Trust is dissolved pursuant to the terms of the Trust Agreement; provided the Termination Date for any Overriding Royalty Interest transferred pursuant to Section 5.1 shall be the earlier
of (A) the End Date and (B) the ORRI Purchase Option Closing; and provided further that the Termination Date for any Overriding Royalty Interest transferred pursuant to Section 5.4 shall be the End Date. 

“Termination Time” shall mean 7:00 a.m. Central Time on the Termination Date. 

“Trust” shall mean the Gulf Coast Ultra Deep Royalty Trust, a Delaware statutory trust. 

“Trust Agreement” shall mean that certain Amended and Restated Trust Agreement of the Trust dated as of
            , 2013, by and among Freeport-McMoRan Copper & Gold Inc., as depositor, Grantor, as grantor, and Trustee, as trustee, as it may be amended from time to time.

 “Trustee” shall mean The Bank of New York Mellon Trust Company, N.A., a national banking association,
in its capacity as trustee of the Trust, and any successor trustee of the Trust under the Trust Agreement. 

“Variable Interest” shall have the meaning given such term in Section 2.2(a). 

“Well” shall mean any well completed in any Subject Formation. A Well shall not be considered a Well with respect
to any completion not in a Subject Formation. 
 “Working Interest” shall mean the interest owned in Oil
wells, Gas wells, leaseholds or mineral rights (mineral estates) that determines the percentage share of costs borne by the owner of such interest, including working interests, operating rights interests or other cost-bearing interests, and mineral
fee or ownership interests. 
 1.2 References and Titles. All references in this Master Conveyance to articles, sections,
subsections and other subdivisions refer to corresponding articles, sections, subsections and other subdivisions of this Master Conveyance unless expressly provided otherwise. Titles appearing at the beginning of any of such subdivisions are for
convenience only and shall not constitute part of such subdivisions and shall be disregarded in construing the language contained in such subdivisions. All references in this Master Conveyance to schedules or exhibits refer to schedules or exhibits
to this Master Conveyance unless expressly provided otherwise, and all such schedules and or exhibits are hereby incorporated herein by reference and made a part hereof for all purposes. The words “this Agreement”, “this Master
Conveyance”, “this instrument”, “herein”, “hereof”, “hereby”, “hereunder” and words of similar import refer to this Master Conveyance as a whole and not to any particular subdivision unless
expressly so limited. The words “include” and “including” shall mean “including without limitation”. 

  
 9 

 ARTICLE II 
 LIMITED TERM OVERRIDING ROYALTY CONVEYANCE 
 2.1 Grant of Overriding
Royalty Interest; Termination. 
 (a) Promptly after the Effective Date, Grantor will cause a Recordable Conveyance to be
executed by Grantor or its Affiliate, as applicable, delivered to Grantee and filed of record in the appropriate records of the BOEM and in the parishes adjacent to or where the properties subject to each First RC Lease are located, conveying to
Grantee an Overriding Royalty Interest in each First RC Lease equal to the Overriding Royalty Percentage. 
 (b) On or before
the first Quarterly Date occurring after the first recording (with the BOEM or the applicable parish) in the name of Grantor or any Affiliate of Grantor of an interest in any ED Unrecorded Lease, but in any event prior to first production of
Hydrocarbons from a Well covered by any such Lease if production occurs prior to such Quarterly Date, Grantor will cause a Recordable Conveyance to be executed by Grantor or its Affiliate, as applicable, delivered to Grantee and filed of record in
all appropriate records of the BOEM and in the parishes adjacent to or where the properties subject to such ED Unrecorded Lease or Leases are located conveying to Grantee an Overriding Royalty Interest in the applicable ED Unrecorded Leases equal to
the Overriding Royalty Percentage. 
 (c) If Grantor or its Affiliates (directly or through any agent or nominee) enter into or
otherwise acquire an interest in any Add-On Lease, on or before the first Quarterly Date occurring after the first recording (with the BOEM or the applicable parish) in the name of Grantor or any Affiliate of Grantor of an interest in such Add-On
Lease, and in any event prior to first production of Hydrocarbons from a Well on lands covered by such Add-On Lease if production occurs prior to such Quarterly Date, Grantor will cause a Recordable Conveyance to be executed by Grantor or its
Affiliate, as applicable, delivered to Grantee and filed of record in all appropriate records of the BOEM and in the parishes adjacent to or where the properties subject to such Add-On Lease or Leases are located conveying to Grantee an Overriding
Royalty Interest in the applicable Add-On Leases equal to the Overriding Royalty Percentage. 
 (d) From and after the first
production of Hydrocarbons from any Well, or upon any conveyance by Grantor or its Affiliates of any Working Interest in any Subject Interest (as permitted by Section 2.1(h)) or upon the application of the last sentence or clause
(ii) of the first sentence of Section 2.2(d) or the application of the second sentence of Section 3.5(b) to any NC-Acquired WI, Grantor will from time to time, at the request of Grantee, cause a Recordable Conveyance to
be executed by Grantor or its Affiliate, as applicable, delivered to Grantee and filed of record in the appropriate records of the BOEM and the applicable parishes clarifying the Overriding Royalty Percentage or Overriding Royalty Payment Percentage
with respect to each Subject Interest to which first production is attributable or which is affected by such conveyance or the application of the second sentence of Section 3.5(b) to any NC-Acquired WI. Grantee shall have the right to
request such additional Recordable Conveyances if Grantee deems it reasonably necessary to clarify Grantee’s Overriding Royalty Percentage or Overriding Royalty Payment Percentage in any Well or Subject Interest, whether any change thereto
shall have occurred as a result of any conveyance of any Working Interest of Grantor or any Affiliate of Grantor in any Subject Interest or Well (as permitted by Section 2.1(h)) or otherwise or the application of the second sentence of
Section 3.5(b) to any NC-Acquired WI. 

  
 10 

  (e) Subject to Grantee’s right to take its share of Production in-kind pursuant to
Section 2.02 of each Recordable Conveyance, each Overriding Royalty Interest shall entitle Grantee to an amount equal to the applicable Overriding Royalty Payment Percentage of the Gross Proceeds attributable to such Subject Interests
for periods from and after the Effective Time applicable to such Subject Interests and through and including the Termination Time (the “Royalty”). Grantor shall be responsible for remitting to the appropriate Person all
Specified Post-Production Costs and Specified Taxes attributable to Production (excluding Specified Post-Production Costs and Specified Taxes attributable to Production Grantee elects to take in-kind pursuant to Section 2.02 of the
Recordable Conveyance). If the Overriding Royalty Interest is applicable with respect to less than all of Grantor’s and its Affiliates’ Working Interest with respect any Subject Interests as a result of the application of
Section 2.2(d), then an appropriate adjustment to the Royalty shall be made such that the Royalty is calculated with respect to that portion of Grantor’s and its Affiliates’ Working Interest to which the Overriding Royalty
Interest applies (giving effect to Section 2.2(d)). 
  (f) Each Overriding Royalty Interest will be carved out
of the Working Interest of Grantor and its Affiliates at the time the Overriding Royalty Interest is granted and will be free and clear of any burdens or Liens other than Permitted Liens. The Effective Time as defined in each Recordable Conveyance
with respect to each Subject Interest (the “Effective Time”) will be the date of such Recordable Conveyance, provided if Production with respect to such Subject Interests shall have first occurred prior to the date of such
Recordable Conveyance the Effective Time shall be the first day on which Production was first obtained from any such Subject Interest. All Recordable Conveyances of Overriding Royalty Interest with respect to the First RC Leases will be delivered by
Grantor concurrently herewith, and each additional Recordable Conveyance of Overriding Royalty Interest required hereunder will be delivered as provided herein and (except as provided in Section 2.1(d)) in any event on or prior to the
date on which production of Hydrocarbons was first obtained from such Subject Interest (or any Well attributable thereto), or if neither Grantor nor any Affiliate of Grantor has record title to (or any Required Consent applicable to) any Lease that
will be subject to such Recordable Conveyance as of the first day on which production of Hydrocarbons was first obtained, then such Recordable Conveyance will be delivered as soon as reasonably practicable after Grantor or any Affiliate of Grantor
obtains such record title (or Required Consent) and any delay in delivery will not postpone payments otherwise due hereunder and under such Recordable Conveyance and Grantor will make all such payments as if such Recordable Conveyance had been
delivered prior to the first day on which production of Hydrocarbons was first obtained. 
 (g) The Overriding Royalty Interests
shall terminate at the Termination Time, without the requirement of payment by Grantor or any other Person. Upon any termination of the Overriding Royalty Interests, upon the request of Grantor, Grantee shall execute and deliver to Grantor an
instrument in form and substance reasonably acceptable to Grantor and Grantee and in recordable form in all applicable jurisdictions in which a Recordable Conveyance shall have been filed of record evidencing the termination of the Overriding
Royalty Interests. 

  
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 (h) Notwithstanding the foregoing and Section 5.2, from time to time Grantor and
its Affiliates may assign a portion of their Working Interest in a Lease to third parties free and clear of the Overriding Royalty Interest to the extent necessary to satisfy the obligations of Grantor and its Affiliates existing as of the date of
this Master Conveyance or which may hereafter arise in connection with the good faith efforts of Grantor and its Affiliates to acquire Leases and/or enter into development and participation agreements with respect to the development of the Subject
Formations; provided that, no such assignment shall be permitted, and shall be void ab initio, unless: 

(i) the prior written consent of Grantee to such assignment shall have been obtained, which consent may be denied in
Grantee’s sole discretion; or 
 (ii) such assignment does not reduce, or have the effect of reducing,
Grantor’s or its Affiliates’ Working Interest in a Prospect Area based upon the average of Grantor’s or its Affiliates’ Working Interest in the Leases with respect to a Prospect Area (calculated on a net acre basis, as
applicable) to the extent covering Subject Formations, to an amount less than the Scheduled Working Interest applicable to such Prospect Area; or 
 (iii) the Working Interest of Grantor and its Affiliates in a Prospect Area based upon the average of Grantor’s or its Affiliates’ Working Interest in the Leases with respect to a Prospect Area
(calculated on a net acre basis, as applicable), to the extent covering the Subject Formations, after such assignment (or giving effect to such assignment) is less than 100%, but not less than 75%, of the Scheduled Working Interest applicable to
such Prospect Area provided, in such event, 
 (x) the Overriding Royalty Percentage with respect to all Leases
within the Prospect Area in which the assigned Lease is located shall be calculated based on the Scheduled Working Interest applicable to such Prospect Area, 
 (y) the amount of the Overriding Royalty Payment Percentage with respect to all Leases within the Prospect Area in which the assigned Lease is located shall be increased so that the amount of the Royalty
paid with respect to such Leases is the same as it would have been had the average Working Interest of Grantor and its Affiliates following the assignment been equal to the applicable Scheduled Working Interest (for example, if the Scheduled Working
Interest is 72% and the resulting average Working Interests following the assignment is 54%, then the Overriding Royalty Payment Percentage shall be calculated as 5% x (72/54) = 6.6667%) and 

(z) if a Recordable Conveyance with respect to any such Lease previously shall have been filed, then simultaneously with
such assignment Grantor shall cause a Recordable Conveyance to be executed by Grantor or its Affiliate, as applicable, delivered to Grantee and filed of 

  
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record in the appropriate records of the BOEM and the applicable parishes modifying the Overriding Royalty Percentage in accordance with clause (x) above, if necessary, and increasing
the Overriding Royalty Payment Percentage in accordance with clause (y) above with respect to each Lease affected by such conveyance; 
 provided if any assignment effected in violation of this Section 2.1(h) is held not to be void ab initio as provided above, then the Subject Interest conveyed in violation of this
Section 2.1(h) shall be burdened by its proportionate share of the Overriding Royalty Interest as calculated without regard to any such assignment and subject to the terms of this Agreement. This Section 2.1(h) shall not
apply to or otherwise restrict any assignment of any Working Interest in any Lease by Grantor to any Affiliate of Grantor, or by any Affiliate of Grantor to Grantor or any other Affiliate of Grantor, that otherwise complies with
Section 5.2. 
 2.2 Overriding Royalty Percentage. 

(a) The “Overriding Royalty Percentage” with respect to each Subject Interest shall equal five percent (5%),
proportionately reduced to the extent the Subject Interest is less than one hundred percent (100%) of the Working Interest applicable to the Subject Formation under a Lease to which such Subject Interest relates to equal the product of five
percent (5%) multiplied by a fraction, the numerator of which is such Working Interest held by Grantor and its Affiliates pursuant to such Subject Interest and the denominator of which is one hundred percent (100%), subject to adjustment as
provided in Section 2.1(h)(iii). In the event that Grantor owns varying Working Interests with respect to any Subject Interest, the Overriding Royalty Percentage for such Subject Interest shall be determined in accordance with the
preceding sentence for each portion of such Subject Interest in which Grantor and its Affiliates own a different Working Interest (each, a “Variable Interest”) and for each such Variable Interest shall equal the product of
five percent (5%) multiplied by a fraction, the numerator of which is the Working Interest held by Grantor and its Affiliates in such Variable Interest and the denominator of which is one hundred percent (100%), subject to adjustment as
provided in Section 2.1(h)(iii). 
 (b) The “Overriding Royalty Payment Percentage” shall be
five percent (5%), subject to adjustment as provided in Section 2.1(h)(iii). As an example, if Grantor owns a 50% Working Interest in a Subject Interest, and total volumes produced from such Subject Interests for the applicable period
are equal to 100 barrels, and if the Gross Proceeds with respect to the 50 barrels attributable to Grantor’s Working Interest equal $100, then the Royalty payment would be equal to $5.00 (calculated as 5% (Overriding Royalty Payment Percentage)
multiplied by $100). 
 (c) The Parties acknowledge that Grantor’s Working Interest in each of the Subject Interests is or
may be less than one hundred percent (100)% and the Scheduled Working Interest as to each Prospect Area is estimated to be Grantor’s and its Affiliates’ aggregate Working Interest as to such Prospect Area and all Subject Interests within
such Prospect Area after giving effect to any assignment contemplated by Section 2.1(h), excluding Section 2.1(h)(iii). The final Working Interests owned by Grantor and its Affiliates in the

  
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Subject Interests that the Overriding Royalty Interest will burden may vary, based on arrangements made with Grantor’s and its Affiliates’ ultra-deep program participants or
replacements and other Working Interest owners in each Prospect Area, as provided in and subject to Section 2.1(h). 

(d) Notwithstanding the foregoing provisions of this Section 2.2, if the Working Interest of Grantor and its Affiliates in a
Subject Interest in which an Overriding Royalty Interest is to be granted to Grantee pursuant to Section 2.1 is greater than the Scheduled Working Interest applicable to the Prospect Area in which such Subject Interest is located, then
(i) the Overriding Royalty Percentage with respect to such Subject Interest shall be calculated based on the Scheduled Working Interest or (ii) if at such time a Prospect Area ORRI Deficiency shall exist, the Overriding Royalty Percentage
with respect to such Subject Interest shall be calculated based on the Scheduled Working Interest plus that portion of Grantor’s and its Affiliates’ Working Interest in such Subject Interest in excess of the Scheduled Working Interest as
necessary to cause such Prospect Area ORRI Deficiency to no longer exist (or if such excess Working Interest is not sufficient to cause the Prospect Area ORRI Deficiency to no longer exist, all of Grantor’s and its Affiliates’ Working
Interest in such Subject Interest). In the event the Overriding Royalty Interest is granted based on the Scheduled Working Interest pursuant to clause (i) above and thereafter a Prospect Area ORRI Deficiency exists with respect to the Prospect
Area to which such Subject Interest relates, an Overriding Royalty Interest shall be granted by Grantor or its Affiliates, as applicable, with respect to such Working Interests of Grantor and its Affiliates in such a Subject Interest with respect to
which the Overriding Royalty Interest was not granted in reliance on clause (i) above as necessary to cause such Prospect Area ORRI Deficiency to no longer exist (or if such excess Working Interest is not sufficient to cause the Prospect Area
ORRI Deficiency to no longer exist, all of such excess Working Interest). 
 2.3 Filing Fees. All documentary, filing and
recording fees required to be paid in connection with the filing and recording of the Recordable Conveyance and any related documents shall be paid by Grantor. 
 2.4 Measurement. Grantor shall install and maintain, or cause to be installed and maintained, at Grantor’s cost, metering facilities at the wellhead or first measuring point past the wellhead
for the measurement of all Production. Such measurement facilities shall be equipped with meters of electronic flow measurement devices and samplers as required by applicable Law and as, commonly accepted by the industry and sufficient to accomplish
the accurate measurement of Oil and Gas for purposes of calculating the Royalty in accordance with this Master Conveyance, the Recordable Conveyances and applicable Laws. All measurements for purposes of calculating, and calculations of, the Royalty
shall be consistent with the methodologies utilized for purposes of calculating the royalties payable to the lessors under the Leases. 
 2.5 Counterparts and Recording. 
 (a) Grantor will execute a sufficient
number of original counterparts of each Recordable Conveyance required to be delivered pursuant hereto to allow Grantor to record the required number of counterparts with the BOEM and in each parish in which a Recordable Conveyance is required to be
filed. If any counterpart is lost in the process of recording, or 

  
 14 

 
insufficient counterparts are executed, Grantor will provide and record a duplicate original counterpart. Following the recording of each Recordable Conveyance with the BOEM and each
applicable parish, Grantor shall deliver to Grantee the original recorded Recordable Conveyance or, if originals are not available, a certified copy of each recorded Recordable Conveyance. Following delivery of each Recordable Conveyance, Grantor
will consult with Grantee to resolve any questions of Grantee about the information in Exhibit A to such Recordable Conveyance and the calculation of the Overriding Royalty Percentage and the Overriding Royalty Payment Percentage set
forth therein. 
 (b) In the event the BOEM or any parish in which a Recordable Conveyance is required to be filed in accordance
with this Agreement requires any additional documentation to effect the grant and conveyance of the Overriding Royalty Interest to be conveyed thereby (including any specified form(s) to obtain the BOEM’s consent to or otherwise effect such
grant and conveyance), Grantor shall execute and deliver to Grantee, the BOEM and each applicable parish such additional documentation; provided, as between Grantor and Grantee, such additional documentation shall not convey to Grantee any
rights in addition to those rights to which Grantee is entitled pursuant to this Agreement and the Recordable Conveyance. 
 2.6
Compliance Reports. On or before each Quarterly Date, commencing on the first Quarterly Date occurring after the Effective Date, until the Termination Date, Grantor shall deliver to Grantee a report executed by an officer of Grantor
(i) identifying all new wells drilled or participated in by Grantor within a Prospect Area since the prior report, and stating whether upon completion and the commencement of production, such wells will produce Hydrocarbons subject to the
Overriding Royalty Interest, and whether such wells are producing and if so the date of first production, (ii) certifying that Grantor has, as of the date of such report, complied with and performed all of Grantor’s obligations pursuant to
Section 2.1 of this Agreement, (iii) certifying that Grantor has provided Grantee with copies of all assignments executed by Grantor as permitted by Section 2.1(h) and (iv) identifying all interests that have not
yet been conveyed to the Trust via Recordable Conveyance, as provided in Section 9.1(f). 
 ARTICLE III

 CERTAIN MATTERS RELATED TO THE SUBJECT INTERESTS 

3.1 Abandonments. Grantor shall have the right, without the joinder of Grantee, to release, surrender and/or abandon the Subject
Interests or any well located therein, or any part thereof or interest therein, in the ordinary course of business, even though the effect of such release, surrender or abandonment will be to release, surrender or abandon that portion of the
Overriding Royalty Interest affected thereby to the same extent as though Grantee had joined with Grantor therein, (provided for clarity, this Section 3.1 shall not permit (i) any assignment of Grantor’s or its Affiliates’
Working Interests in any Subject Interests (which shall be permitted only as provided in Section 2.1(h)), or (ii) any release, surrender or abandonment for the primary purpose of causing or effecting a termination of any Overriding
Royalty Interest). Grantee shall execute such documentation as is reasonably necessary to evidence the corresponding release, surrender or abandonment of that portion of the Overriding Royalty Interest affected thereby upon receipt of a written
request and certification of an officer of Grantor that the release, surrender and/or abandonment is in the ordinary course of business and such documentation is necessary to evidence the corresponding release, surrender or abandonment from Grantor.

  
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 3.2 Contracts with Affiliates. Grantor and/or any of its Affiliates may perform
services and furnish supplies and equipment that include Specified Post-Production Costs with respect to the Subject Interests; provided that the terms of the provision of such services or furnishing of supplies or equipment shall be substantially
similar to those terms available from Non-Affiliates in the same area as the Subject Interests that are engaged in the business of rendering comparable services or furnishing comparable equipment and supplies, taking into consideration all such
terms, including the price, point of sale or service, condition of supplies or equipment, and availability of supplies and equipment and such term as Grantor determines in good faith would be utilized by a reasonably prudent operator in obtaining
such equipment or services from a Non-Affiliate. 
 3.3 Right to Use Wellbores. Without joinder or consent of Grantee or
notice thereto, Grantor shall have the right to use the wellbore of any well located on the Subject Interest in connection with any reworking, recompletion or side tracking operation conducted with respect to such well, provided if any production of
Hydrocarbons from the Subject Formations results from such reworking, recompletion or side tracking operation then the Overriding Royalty Interest shall apply to all Hydrocarbons produced from the Subject Formations through such wellbore.

 3.4 Amendment of Drilling or Spacing Units/Unitization. Without joinder or consent of Grantee or notice thereto,
Grantor shall have the right and power to unitize or pool all or any portion of the Subject Interests with other areas and to amend or terminate any unitization and/or pooling agreements. If and whenever, through the exercise of this power or
pursuant to any law or regulation, or any order of any Governmental Authority, any portion of the Subject Interests is unitized or pooled, the Overriding Royalty Interest, insofar as it relates to such unitized or pooled area, shall be calculated
with respect to the Hydrocarbons in proportion to which the affected Subject Interests share in the Hydrocarbons produced from such unitized or pooled area. 
 3.5 Operations. 
 (a) It is the express intent of Grantor and Grantee that
the Overriding Royalty Interest shall constitute (and this Master Conveyance shall conclusively be construed for all purposes as creating) a single, separate non-operating right with respect to the Subject Interests for all purposes. Without
limitation of the generality of the immediately preceding sentence, Grantor and Grantee acknowledge that Grantee has no right or power to participate in the selection of a prospect, drilling location, or drilling contractor, to propose the drilling
of a well, to determine the timing or sequence of drilling operations, to commence or shut down production, to take over operations, or to share in any operating decision whatsoever. Grantor and Grantee hereby expressly negate any intent to create
(and this Master Conveyance shall never be construed as creating) a mining or other partnership or joint venture or other relationship subjecting Grantor and Grantee to joint liability. Nothing contained in this Master Conveyance shall be deemed to
prevent or restrict Grantor or its Affiliates from electing not to participate in any operations that are to be conducted under the terms of any operating 

  
 16 

 
agreement, unit operating agreement, contract for development, or similar instrument affecting or pertaining to the Subject Interests (or any portions thereof) and permitting consenting parties
to conduct non-consent operations; and the Overriding Royalty Interest shall not apply to any Non-Consent Hydrocarbons, and Grantor shall not have any obligations under Section 4.1(a) with respect to any such Non-Consent Hydrocarbons.

 (b) Except as provided in the following sentence, if Grantor elects to acquire additional Working Interest based on one or
more non-consent elections by any third Person (other than an Affiliate of Grantor), the additional Working Interest so acquired (“NC-Acquired WI”) will not be burdened by the Overriding Royalty Interest. Notwithstanding the
foregoing, if the Working Interest of Grantor and its Affiliates (to which the Overriding Royalty Interest applies) in any such non-consent operation in which Grantor or its Affiliates elects to participate (the “Actual WI”)
is less than the Scheduled Working Interest for the Prospect Area in which such operation is being conducted (and an adjustment has not been made under Section 2.1(h)(iii) to adjust the Overriding Royalty Percentage and Overriding
Royalty Payment Percentage to equate to the application of the Overriding Royalty Interest to a Working Interest equal to such Scheduled Working Interest or pursuant to the last sentence of Section 2.2(d)) , then (a) the Overriding
Royalty Interest shall, mutatis mutandis, apply to and burden that portion of the NC-Acquired WI equal to the difference between the Actual WI and the Scheduled Working Interest for the Prospect Area in which such operation is being conducted
for so long as Grantor and its Affiliates are entitled to the production from and/or proceeds of the NC-Acquired WI with respect to such operation, (b) Grantor and its Affiliates shall comply with Section 2.1(d) with respect to such
NC-Acquired WI to which the Overriding Royalty Interest applies and (c) Grantor and its Affiliates shall not be deemed to have made any representation or warranty under Section 9.1 with respect to any NC-Acquired WI and shall not
have any obligation under this Master Conveyance with respect to any Lien on or burdening any NC-Acquired WI other than any such Liens created by, thru or under Grantor or its Affiliates. 

(c) Subject to Section 5.3, as to any third Person, the acts of Grantor shall be binding on Grantee, and it shall not be
necessary for Grantee to join with Grantor in the execution or ratification of any operating agreement, unit operating agreement, contract for development, or similar instrument affecting or pertaining to any of the Subject Interests. 

3.6 Leases. Grantor shall have (without the further joinder, consent of or notice to Grantee) the right to renew, extend, modify,
amend or supplement the Leases in the ordinary course of business with respect to any of the lands or depths covered thereby without the consent of Grantee. 
 3.7 Mortgages and Security Interests. 
 (a) Subject to
Section 2.1(h) and Section 3.7(b), and the requirement in Section 2.1(f) that all Overriding Royalty Interests be conveyed free and clear of all burdens and Liens other than Permitted Liens, nothing herein shall
prevent Grantor or its Affiliates from granting a Lien in any interest of Grantor or any of its Affiliates in any property, including the Subject Interests or any Hydrocarbons. Grantor shall have no right to encumber any Overriding Royalty Interest
with any Lien. 

  
 17 

 (b) If Grantor or any of its Affiliates is ever liable for any indebtedness or hedging
obligation, Grantor will ensure that (i) with respect to any Lease that is burdened by any Lien or security interest securing such indebtedness or hedging obligation, at least five percent (5%) (proportionately reduced) of Grantor’s
rights and interests in such Lease attributable to the Subject Interests is excluded from such lien and security interest and (ii) the terms and conditions of such indebtedness or hedging obligation will not prevent or otherwise restrict
Grantor from satisfying its obligations under this Agreement or any Recordable Conveyance and will require any party secured under such arrangement to agree to release its lien or security interest, if any, to the extent required to permit the grant
of Overriding Royalty Interest in accordance with the terms hereof. 
 ARTICLE IV 

PAYMENTS 

4.1 Payments. 
 (a) The Royalty shall be payable on the last day of each month in respect of the proceeds of Production received by or on behalf of Grantor or its Affiliates in the immediately preceding month. Such
Royalty payment to Grantee shall be accompanied by a certification setting forth the quantity and kind of Production for such previous month (including Production attributable to the Overriding Royalty Interest and any Lease Burdens), the gross sale
price thereof, the calculation of the Gross Proceeds received therefrom identifying all Specified Taxes deducted or withheld and all Specified Post-Production Costs debited from the gross sale proceeds, together with a calculation of the Royalty for
such previous month (the “Production Statement”). All payments of the Royalty shall be made to Grantee by electronic transfer to Grantee’s account, details of which account shall be notified to Grantor by Grantee in
writing from time to time. Grantor’s obligations under this Section 4.1(a) shall not apply with respect to Non-Consent Hydrocarbons as provided in Section 3.5(a). 

(b) If at any time Grantor pays Grantee more than the amount then due with respect to the Royalty, Grantee will not be obligated to
return any such overpayment, but the amount or amounts otherwise payable for any subsequent period or periods will be reduced by such overpayment. 
 (c) Any amount owed by Grantor with respect to the Royalty hereunder and not paid by Grantor to Grantee within ten (10) days of its due date shall bear interest at a rate per annum equal to the
lesser of (i) the highest, non-usurious rate of interest permitted to be charged under applicable law, and (ii) two percent (2%) per annum plus the Agreed Rate at the time payment was due, and such interest shall accrue on such unpaid
amount commencing on the date on which such unpaid amount was due until such unpaid amount has been paid in full. Grantor agrees to pay Grantee such interest if applicable pursuant to this Section 4.1(c). 

4.2 Burden-Free Royalty. In no event will Grantee ever be personally liable or obligated to pay, either directly or indirectly,
any obligations arising from or related to the development of any of the Subject Interests, including (a) Lease Burdens, (b) taxes, (c) costs, expenses or liabilities for building, constructing, acquiring, exploring, drilling,
completing, 

  
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perforating, equipping, developing, producing, operating, maintaining, reworking, redrilling, recompleting, plugging, abandoning, gathering, transporting, compressing, treating, handling,
separating, dehydrating or processing, or any other expenses related or pertaining to operations with respect to the Subject Interests or the handling of Production (“Production Costs”) or (d) any costs or expenses of
acquiring or disposing of any Subject Interests (“SI Costs”), provided that nothing herein shall limit Grantor’s ability to deduct Specified Post-Production Costs and Specified Taxes from Gross Proceeds in calculating
Royalty payments. 
 4.3 Tax Withholding. Grantor shall have the right to make any deduction or withholding on account of
taxes from all payments of the Royalty due under this Agreement that may be required under the provisions of any applicable Laws in effect as of the time of payment. If Grantee is exempt from deduction or withholding on account of any taxes with
respect to the payments of the Royalty, Grantee shall (i) notify Grantor that such exemption is held and of any change to or cancellation of such exemption; and (ii) furnish Grantor with proper documentation evidencing such exemption or
any other information that may be required to obtain such exemption. Where applicable, Grantor and Grantee shall cooperate in completing any procedural formalities necessary for Grantor to obtain authorization to make a payment of Royalty without a
deduction or withholding on account of any taxes. Where applicable, Grantor shall provide Grantee with all receipts in respect of any amount deducted or withheld on account of any taxes. 

ARTICLE V 

ASSIGNMENT 
 5.1 Assignment by Grantee. 
 (a) Except as provided in
Section 5.4, prior to the fifth anniversary of the Effective Date, Grantee shall not assign any Overriding Royalty Interests. From and after the fifth anniversary of the Effective Date, subject to Section 5.5, without the
prior written consent of Grantor, Grantee may assign or transfer all, but not less than all, of the Overriding Royalty Interests and may assign or transfer its rights and interest in and under this Agreement with respect to the Overriding Royalty
Interests to any assignee of the Overriding Royalty Interests; provided that Grantee shall only be entitled to assign the Overriding Royalty Interests and the rights under this Agreement and the Recordable Conveyances to one assignee of Grantee who
acquires all of Grantee’s interest in all Overriding Royalty Interests. 
 (b) No change of ownership or right to receive
the Overriding Royalty Interest, however accomplished, shall be binding upon Grantor until notice thereof shall have been furnished by the Person claiming the benefit thereof, and then only with respect to payments thereafter made. Notice of sale or
assignment of the Overriding Royalty Interest shall consist of a copy of the recorded instrument accomplishing the same; notice of change of ownership or right to receive payment accomplished in any other manner (for example by reason of incapacity,
death or dissolution) shall consist of copies of recorded documents and complete proceedings legally binding and conclusive of the rights of all parties. Until such notice shall have been furnished to Grantor as provided above, the payment or tender
of all sums payable on the Overriding Royalty Interest may be made in the manner provided in the Recordable Conveyance as if no such change in interest or ownership or right to receive payment had occurred. 

  
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 5.2 Assignment by Grantor. 

(a) Except as permitted by Section 2.1(h), any assignment by Grantor or its Affiliates of any Subject Interests shall be in
accordance with Section 4.01 of the Recordable Conveyance. 
 (b) Grantor may not convey or assign any of its rights or
obligations under this Agreement or any part thereof except in connection with and as part of a transfer of the interest by Grantor or its Affiliates in any Subject Interest. No transfer or assignment of its rights under this Agreement will release
or relieve Grantor from its obligations hereunder. 
 (c) Grantor shall not, and shall not permit any Affiliate of Grantor, to
indirectly (by merger, consolidation, disposition of equity or otherwise) effect any conveyance of any interest in any Subject Interest in contravention of this Master Conveyance or any Recordable Conveyance. 

5.3 Covenant Running with the Land. Subject to Section 2.1(h), this Agreement, each Recordable Conveyance and the
obligations of Grantor under this Agreement and each Recordable Conveyance shall be covenants running with the Leases and the lands covered thereby or subject thereto, and in the event of any transfer of any of Grantor’s interests derived from
any Lease (including any judicial or non-judicial foreclosure sale by a receiver or trustee in bankruptcy and the granting of any lien by any court), such transfer will be subject to all obligations of Grantor with respect to this Agreement
burdening such Grantor’s interests. 
 5.4 Special Trust Assignment. Notwithstanding Section 5.5, if at
any time after the Effective Date, Grantor or Depositor shall have been requested to provide financing to the Trust pursuant to Section 7.5 of the Trust Agreement and shall have failed or refused to do so or if the Trustee is permitted
pursuant to Section 6.6(b) or Section 12.1 of the Trust Agreement to draw upon the stand-by reserve account or letter of credit provided by Depositor, then, upon thirty (30) days’ written notice to Grantor and an
opportunity to cure, Grantee shall, if uncured, be permitted to, without regard to or compliance with Section 5.5, (a) assign or transfer all, but not less than all, of the Overriding Royalty Interests and assign or transfer its
rights and interest in and under this Agreement with respect to the Overriding Royalty Interests to any assignee of the Overriding Royalty Interests and (b) pledge or grant a security interest in or on the Overriding Royalty Interests to any
lender providing financing to the Trust pursuant to Section 3.9(b) of the Trust Agreement. Any assignee or lender who acquires any interest in the Overriding Royalty Interests pursuant to the exercise of any such rights set forth in
clause (a) or (b) shall hold the Overriding Royalty Interests free and clear of the provisions of Section 5.5 and the Termination Date with respect to such Overriding Royalty Interests shall be deemed to be the End Date.

 5.5 Preferential Right to Purchase in Favor of Grantor. 

(a) Should Grantee receive a bona fide written offer for the acquisition of all of the Overriding Royalty Interests from a third-party
not affiliated with Grantor (the “Third 

  
 20 

 
Party Offer”), which Grantee desires to accept, Grantor shall have a preferential right to purchase the Overriding Royalty Interests on the same terms as those proposed in the
Third Party Offer. In such case, Grantee shall give Grantor written notice of the Third Party Offer (the “Pref Right Notice”), which notice shall include (i) the purchase price (ii) the effective date of the
acquisition, (iii) a description of all other material terms of the Third Party Offer, and (iv) a copy of the Third Party Offer. 
 (b) For a period of thirty (30) days from receipt of the Pref Right Notice, Grantor shall have the option to elect to acquire the Overriding Royalty Interests on the same terms as those proposed in
the Third Party Offer. Grantor shall advise Grantee of its election to exercise this preferential right to purchase by giving Grantee written notice of such election no later than thirty (30) days following receipt of the Pref Right Notice (the
“Election Notice”). 
 (c) If Grantor timely delivers the Election Notice, then Grantor
shall be obligated to purchase and Grantee shall be required to convey to Grantor the Overriding Royalty Interests on the price and terms specified in the Third Party Offer. The closing of the acquisition of the Overriding Royalty Interests shall be
concluded within a reasonable time, but in no event later than sixty (60) days following Grantee’s receipt of the Election Notice. 
 (d) Notwithstanding anything in Section 5.1 or Section 5.5 to the contrary, Grantee shall not have the right to accept a Third Party Offer if Grantor has properly elected to
exercise a High-Value Call Option or a Low-Value Call Option, as defined and provided for in Section 3.20 of the Trust Agreement, within thirty (30) days from receipt of the Pref Rights Notice. 

(e) If a Third Party Offer includes consideration other than cash, such non-cash consideration shall be valued at an
equivalent cash amount by Grantee in good faith such that the Third Party Offer shall be deemed to be all cash. 

(f) If Grantor fails to timely deliver the Election Notice, or Grantor delivers an Election Notice but the closing of the
sale of the Overriding Royalty interest to Grantor fails to close within sixty (60) days following Grantee’s receipt of the Election Notice (or such longer period necessitated by the actions of the Grantee or others (excepting Grantor and
its Affiliates), including any delay in obtaining any necessary consents or approvals from any third party (other than Grantor or its Affiliates, which consents shall be deemed granted)), then Grantee may transfer the Overriding Royalty Interests
pursuant to such Third Party Offer. If the closing of the sale of the Overriding Royalty Interests pursuant to the Third Party Offer does not occur within ninety (90) days after the date Grantee delivers the Pref Rights Notice (or such longer
period necessitated by any delay in obtaining any necessary consents or approvals from any third party (other than Grantor or its Affiliates, which consents shall be deemed granted)), or if the terms of the Third Party Offer are materially altered,
then the proposed acquisition of the Overriding Royalty Interests shall be deemed withdrawn and the conveyance of such Overriding Royalty Interests shall again be governed by this Section 5.5. 

(g) If the closing of an ORRI Transfer occurs, then (i) upon the closing of the ORRI Transfer this Agreement shall be
amended to state the final ORRI Purchase Price as determined in accordance with this Agreement, and the Memorandum shall be amended to 

  
 21 

 
identify such ORRI Purchase Price and (ii) at any time after such closing until the End Date, Grantor shall have the right and option (the “ORRI Purchase Option”) to
purchase all, but not less than all, of such Overriding Royalty Interests at a price equal to the ORRI Purchase Price. Grantor may exercise the ORRI Purchase Option by providing written notice (the “ORRI Purchase Notice”) to
Grantee and tendering to Grantee the full ORRI Purchase Price (the time of such tender, the “ORRI Purchase Option Closing”) by wire transfer of immediately available funds to the account designated in writing by such Person
after receipt of the ORRI Purchase Notice. No ORRI Transfer shall be valid unless it is made pursuant to an agreement binding on the transferee pursuant to which the transferee acknowledges Grantor’s right to purchase all of the Overriding
Royalty Interests from such transferee pursuant to the exercise of the ORRI Purchase Option and payment of the ORRI Purchase Price in accordance with the terms of this Section 5.5(g) and agrees to convey the Overriding Royalty Interest
to Grantor upon Grantor’s exercise of the ORRI Purchase Option. 
 ARTICLE VI 

ACCESS TO BOOKS AND RECORDS; CONFIDENTIALITY 
 6.1 Books and Records. Grantor shall keep full, true, and correct records of (i) all transactions required or permitted by this Agreement and (ii) the production and financial information
necessary to reflect such transactions, including the production and financial information needed to calculate the Production, including the sales thereof, and Gross Proceeds for each calendar month. At any time prior to the third anniversary of the
Termination Date, upon at least five (5) business days’ prior written notice, Grantee may inspect such records and, subject to the provisions of Section 6.2, take copies at its own cost; provided that no more than one
(1) such inspection may be undertaken in any calendar year. Grantor shall maintain all such books and records for a minimum of five (5) years following the Termination Date. At Grantee’s request, subject to the provisions of
Section 6.2, Grantor shall give Grantee and its designated representatives (on behalf of the Trust) reasonable access in Grantor’s office during normal business hours to (A) all geological, Well and production data in
Grantor’s possession or Grantor’s Affiliates’ possession, relating to operations on the Subject Interests and (B) all reserve reports and reserve studies in the possession of Grantor or of Grantor’s Affiliates, relating to
the Subject Interests, whether prepared by Grantor, by Grantor’s Affiliates, or by consulting engineers. 
 6.2
Confidentiality. 
 (a) Any confidential information provided by Grantor to Grantee pursuant to this Master Conveyance
shall not be disclosed by Grantee to any third party, except with Grantor’s prior written consent. Notwithstanding the foregoing, Grantee may disclose such information to its representatives or the Trustee’s officers, directors, legal
counsel, accountants and advisors (collectively, “Representatives”) who, in each case, in Grantee’s reasonable judgment, need to know such information for the purpose of (i) confirming compliance with the terms of this
Master Conveyance or (ii) advising the Trustee with respect to any action required by or requested of the Trustee pursuant to this Agreement, any Recordable Conveyance or the Trust Agreement provided that Grantee shall (a) inform each
person to whom such information is provided of the confidential nature of such information, (b) take reasonable precautions 

  
 22 

 
necessary to prevent the disclosure of such information by such persons to any third party, and (c) be responsible for any breach of this Section 6.2 by any representatives;
provided, however, except as set forth in a Recordable Conveyance, Grantee shall not disclose any information regarding the geographic areas and boundaries covered, and blocks in which each Prospect Area is located to any third party without the
prior written consent of Grantor other than to the Trustee’s Representatives as provided above or as required by law, judicial or governmental order, regulatory process, any self-regulatory organization, interrogatory, request for information
or documents, subpoena, civil investigative demand or similar process. 
 (b) If Grantee is requested or required (by law,
judicial or governmental order or regulatory process or by any self-regulatory organization, interrogatory, request for information or documents, subpoena, civil investigative demand or similar process) to disclose any confidential information
provided by Grantor to Grantee, it is agreed that Grantee will, to the extent legally permitted, provide Grantor with prompt notice of such request or requirement prior to making such disclosure so that Grantor may seek an appropriate protective
order and/or waive Grantee’s compliance with this Section 6.2. Grantee may disclose only that portion of the confidential information that Grantee is advised by its counsel is legally required to be disclosed; provided, that, to the
extent legally permitted, Grantee provides Grantor prior written notice of the information to be disclosed as far in advance of its disclosure as is practicable and, upon Grantor’s request, uses reasonable efforts to obtain assurances that
confidential treatment will be afforded to such information. 
 (c) Notwithstanding the foregoing provisions of this
Section 6.2 or any other provision hereof, nothing herein shall prevent or restrict Grantee from making any public disclosure of any information Grantee deems to be required or advisable in order to ensure compliance by the Trust with
applicable securities laws, or other legal or regulatory requirements or securities exchange listing or quotation system or similar requirements; provided, however, that this sentence shall apply and remain in effect only until the conclusion of the
winding up and termination of the Trust (which may be after the Termination Date). 
 ARTICLE VII 

DISCLAIMERS 
 7.1 DISCLAIMERS. GRANTOR MAKES NO WARRANTY OR REPRESENTATION, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, RELATIVE TO ANY AND ALL FUTURE PRICING ASSUMPTIONS, OR QUALITY OR QUANTITY OF HYDROCARBON
RESERVES (IF ANY) ATTRIBUTABLE TO THE SUBJECT INTERESTS OR THE ABILITY OR POTENTIAL OF THE SUBJECT INTERESTS TO PRODUCE HYDROCARBONS. GRANTOR HEREBY EXPRESSLY DISCLAIMS ANY AND ALL REPRESENTATIONS AND WARRANTIES EXPRESS, IMPLIED, STATUTORY OR
OTHERWISE WITH RESPECT TO THE PRODUCTION WHICH HAS BEEN OR MAY BE PRODUCED FROM THE LEASES, SUBJECT INTERESTS, HYDROCARBONS AND THE OVERRIDING ROYALTY INTEREST. 

  
 23 

 ARTICLE VIII 
 TERMINATION 
 8.1 Termination of Overriding Royalty Interest. On the
Termination Date, unless terminated earlier pursuant to the terms and conditions of the Trust Agreement, the Overriding Royalty Interest shall terminate, as provided in Section 2.1(g). 

8.2 Termination of Leases. In the event any individual Lease or Subject Interest (or portion thereof, as applicable) should be
released, surrendered or abandoned by Grantor pursuant to Section 3.1 the Overriding Royalty Interest no longer shall apply to that particular Lease or Subject Interest (or such portion thereof, as applicable). Upon termination of the
Overriding Royalty Interest, as above provided, upon request by Grantor, Grantee shall, at Grantor’s expense, execute and deliver such instrument or instruments as may be necessary to evidence the termination of the Overriding Royalty Interest
in accordance with Section 3.1. 
 ARTICLE IX 

REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION, REMEDIES 
 9.1 Representations, Warranties and Covenants of Grantor. Grantor hereby represents, warrants and covenants to Grantee as follows: 

(a) Organization, Good Standing, Etc. Grantor is a limited liability company duly formed, validly existing and in good standing
under the Laws of the State of Delaware. 
 (b) Authority. Grantor has taken all necessary action to authorize its
execution, delivery and performance of this Agreement and the Recordable Conveyances and has adequate power, authority and legal right to enter into, execute, deliver and perform this Agreement and the Recordable Conveyances. 

(c) Legal Requirements. Grantor has all requisite power, approvals, authorizations, consents, licenses, orders, franchises,
rights, registrations and permits of all Governmental Authorities required in order for Grantor to carry out its duties under the Leases, this Agreement and each Recordable Conveyance; each of the foregoing (if any) is in full force and effect and
has been duly and validly issued, and Grantor is in compliance with all terms and conditions of each of the foregoing. 
 (d)
No Consent. No permit, consent, approval, authorization or order of, and no notice to or filing with, any Governmental Authority or third party is required in connection with the execution, delivery or performance by Grantor of this Agreement
or any Recordable Conveyance or to consummate any transactions contemplated hereby and thereby, other than as may be necessary to effect any Recordable Conveyance as to any Lease or Subject interests, (i) consents customarily obtained after
assignment, (ii) consents that cannot be unreasonably withheld, insofar in each case as commercially reasonable efforts to obtain such consents are in fact made, and (iii) consents required to effect the conveyance of the Overriding
Royalty Interests to be conveyed pursuant to such Recordable Conveyance (such consents as described in this clause (iii), the “Required Consents”). 

  
 24 

 (e) First RC Leases. To Grantor’s knowledge, the First RC Leases constitute all
of the Leases held by Grantor and its Affiliates that have been recorded with the BOEM or the applicable parish as of the Effective Date in the name of Grantee or its Affiliates. 

(f) Required Consents. Grantor shall use its best efforts to obtain all Required Consents as to each Lease and Subject Interest
with respect to which an Overriding Royalty Interest is to be conveyed by a Recordable Conveyance prior to the date such Recordable Conveyance is required to be filed in accordance with Section 2.1(a), (b) or
(c) of this Agreement (and shall continue such efforts thereafter if such consent shall not have been obtained until such consent shall have been obtained). To the extent any Required Consent shall not have been obtained with respect to
any Lease or Subject Interests as of the time the Recordable Conveyance for such Lease or Subject Interests is required to be filed in accordance with Section 2.1(a), (b) or (c) of this Agreement, then the
Overriding Royalty Interests with respect to such Lease or Subject Interests shall not be conveyed until such time as such Required Consent shall have been obtained and, until such time as such Required Consent shall have been obtained and the
Recordable Conveyance with respect to such Lease or Subject Interests has been filed in accordance herewith, such Overriding Royalty Interests with respect to such Lease or Subject Interests shall be held by Grantor in trust for the benefit of
Grantee under this Agreement and shall be subject to Section 9.2(b)(ii); provided that, as to any amounts so held in trust by Grantor, Grantor shall pay all such amounts held by Grantor to Grantee upon demand of Grantee and any such
payment shall be deemed satisfaction of Grantor’s indemnity obligations to Grantee for amounts so held in trust, up to the amounts paid. 
 (g) Indirect Ownership. Grantor is not a partner, member, shareholder or other equity owner of any Person that owns an interest in any Lease other than an Affiliate of Grantor. Grantor shall not,
after the date hereof, acquire an equity interest in any partnership, limited liability company, corporation or other Person, other than an Affiliate of Grantor, for the purpose of acquiring an indirect interest in any Lease. Any interest in Leases
shall be acquired by Grantor directly or through an Affiliate of Grantor. 
 9.2 Indemnity. 

(a) As used herein, “Royalty Company Indemnitees” shall mean Grantee, the Trustee, their successors and assigns,
their respective Affiliates, and all of their respective partners, members, shareholders, officers, directors, agents, representatives, beneficiaries, trustees, and employees and their respective successors, assigns and Affiliates. 

(b) Grantor, with respect to any Subject Interests or Well in which Grantor has granted an Overriding Royalty Interest, will defend,
indemnify and hold each Royalty Company Indemnitee harmless from and against all claims, demands, damages, liabilities, liens, fines, penalties, charges, administrative and judicial proceedings, orders, judgments, remedial action requirements,
investigations, and enforcement actions of any kind, together with all interest thereon and all costs and expenses related thereto (including fees and disbursements of counsel and other advisors) and all other obligations whatsoever (collectively,
“Claims”) arising, in whole or in part, directly or indirectly, from or in connection with any claim or demand asserted by any Person (other than by any Royalty Company Indemnitee against any Royalty Company Indemnitee),
including any claim or demand related to any of the following: 

  
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 (i) Lease Burdens, Specified Taxes not remitted by Grantor to the
appropriate Person, Production Costs and SI Costs, provided that nothing herein shall limit Grantor’s ability to deduct Specified Post-Production Costs and Specified Taxes from Gross Proceeds in calculating Royalty payments, and 

(ii) all amounts by which the payments payable to Grantee with respect to any Overriding Royalty Interest pursuant to the
terms of this Master Conveyance or any Recordable Conveyance are (i) reduced or otherwise used to satisfy any Lien (including any Permitted Lien other than an Excepted Permitted Lien) or encumbrance on the Working Interest of Grantor or any of
its Affiliates in any Lease other than an Excepted Permitted Lien, including amounts used to satisfy any obligations or liabilities described in Section 3.7, (ii) reduced or adversely affected by the reduction in any Grantor’s
or its Affiliates’ Working Interest to an amount less than the Scheduled Working Interest as a result of any violation of this Agreement by Grantor, including the proviso in Section 2.1(h), or (iii) reduced or adversely
affected by any failure of Grantor to have obtained any Required Consent with respect to any Lease or Subject Interests. 
 (c)
THE FOREGOING INDEMNITY WILL APPLY WHETHER OR NOT ARISING OUT OF THE SOLE, JOINT OR CONCURRENT NEGLIGENCE, FAULT OR STRICT LIABILITY OF ANY ROYALTY COMPANY INDEMNITEE, GRANTOR, OR ANY OTHER PERSON, AND WILL APPLY, WITHOUT LIMITATION, TO ANY CLAIM
AGAINST OR LIABILITY IMPOSED UPON ANY ROYALTY COMPANY INDEMNITEE, GRANTOR, OR ANY OTHER PERSON AS A RESULT OF ANY THEORY OF STRICT LIABILITY OR ANY OTHER DOCTRINE OF LAW, provided that the foregoing indemnity will not apply to any Claims
incurred by any Royalty Company Indemnitee to the extent proximately caused by the gross negligence or willful misconduct of such Royalty Company Indemnitee. The rights of the Royalty Company Indemnitees under this Section 9.2 will
survive any termination of this Agreement and will be in addition to, and not in replacement or limitation of, all other indemnities, reimbursement rights, and other similar rights and assurances at any time made by Grantor for the benefit of any
Royalty Company Indemnitee. 
 (d) If any action or proceeding shall be brought or asserted against any Royalty Company
Indemnitee in respect of which indemnity may be sought from Grantor pursuant to this Section 9.2, of which such Royalty Company Indemnitee shall have received notice, the Royalty Company Indemnitee shall promptly notify Grantor in
writing, and Grantor shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the Royalty Company Indemnitee and the payment of all costs and expenses; provided, however, that the failure so to notify Grantor
of the commencement of any such action or proceeding shall not relieve Grantor from any liability that it may have to any Royalty Company Indemnitee except to the extent that Grantor is prejudiced or damaged by the failure to receive prompt notice.
The Royalty Company Indemnitee shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the Royalty Company Indemnitee unless
(a) Grantor has agreed to pay such fees and expenses, (b) Grantor shall have failed to assume the defense of such action or proceeding and employ counsel reasonably satisfactory (including the qualifications of such

  
 26 

 
counsel) to the Royalty Company Indemnitee on any such action or proceeding or (c) the named parties to any such action or proceeding include both the Royalty Company Indemnitee and Grantor
and the Royalty Company Indemnitee shall have been advised by counsel that there may be one or more legal defenses available to such Royalty Company Indemnitee that are different from or in addition to those available to Grantor or any other Royalty
Company Indemnitee (in which case, if the Royalty Company Indemnitee notifies Grantor in writing that it elects to employ separate counsel at the expense of Grantor, Grantor shall not have the right to assume the defense of such action or proceeding
on behalf of the Royalty Company Indemnitee and the Royalty Company Indemnitee may employ such counsel for the defense of such action or proceeding as is reasonably satisfactory to Grantor; it being understood, however, that except in the case of
the addition of counsel caused by the existence or development of a conflict rendering unified representation impermissible or unadvisable, Grantor shall not, in connection with any one such action or proceeding or separate but substantially similar
or related actions or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys for the Royalty Company Indemnitees at any
time). Grantor shall not be liable for any settlement of any such action or proceeding effected without the written consent (which consent shall not be unreasonably withheld, conditioned or delayed) of Grantor, but, if settled with such written
consent, or if there be a final judgment for the plaintiff in any such action or proceeding, Grantor agrees (to the extent stated above) to indemnify and hold harmless each Royalty Company Indemnitee from and against any expenses by reason of such
settlement or judgment. 
 ARTICLE X 
 MISCELLANEOUS 
 10.1 Governing Law. This Master Conveyance shall be
construed and enforced in accordance with and governed by the laws of the State of Louisiana and the laws of the United States of America, except that, to the extent that the law under the Outer Continental Shelf Lands Act requires that the law of a
state adjacent to which the Subject Interests are located (or which is otherwise applicable to a portion of the Subject Interests) necessarily governs with respect to procedural and substantive matters relating to the Overriding Royalty Interest,
the law of such state shall apply as to that portion of the Subject Interests located adjacent to or in (or otherwise subject to the laws of) such state. 
 10.2 No Personal Liability by Grantee. The parties acknowledge that the Overriding Royalty Interest is a non-operating interest and that Grantee owns such interest, free from the payment by Grantee
of the costs, risk and expense of production (provided the Royalty shall be subject to Specified Post-Production Costs and Specified Taxes as provided in Section 2.1(e)). Notwithstanding anything to the contrary contained in this Master
Conveyance, Grantee shall never personally be responsible for paying any part of the costs, expenses or liabilities incurred in connection with the operating, owning and/or maintaining of the Subject Interests, including any Specified Taxes or
Specified Post-Production Costs (which shall be deducted from Gross Proceeds and paid by Grantor as provided in Section 2.1(e)). 

  
 27 

 10.3 Nature of Overriding Royalty Interest; Intentions of the Parties. Each
Overriding Royalty Interest shall constitute, and each Recordable Conveyance shall be an absolute conveyance of, a real property interests and right. Nothing herein contained shall be construed to constitute either party hereto (under state law, for
tax purposes or otherwise) the agent of, or in partnership with, the other party. If, however, the parties hereto are deemed to have entered into a relationship that constitutes a partnership for federal income tax purposes, the parties hereby elect
to be excluded from the application of Subchapter K, Chapter 1, Subtitle A of the Internal Revenue Code of 1986, as amended (the “Code”), and agree not to take any position inconsistent with such election. IN ADDITION, THE
PARTIES HERETO INTEND THAT THE OVERRIDING ROYALTY INTEREST SHALL AT ALL TIMES BE TREATED (a) FOR FEDERAL INCOME TAX PURPOSES AS AN OVERRIDING ROYALTY INTEREST OR, IF REQUIRED BY APPLICABLE LAW, AS A “PRODUCTION PAYMENT” UNDER
SECTION 636(a) OF THE CODE AND (b) AS AN INTEREST IN REAL PROPERTY AND REAL RIGHT, AND, IN ACCORDANCE THEREWITH AND THE TERMS OF THIS MASTER CONVEYANCE, GRANTEE SHALL LOOK EXCLUSIVELY TO THE HYDROCARBONS PRODUCED FROM THE SUBJECT INTERESTS
FOR THE SATISFACTION AND REALIZATION OF THE OVERRIDING ROYALTY INTEREST. THE PARTIES HERETO AGREE TO FILE ALL APPLICABLE TAX RETURNS IN ACCORDANCE WITH THE INTENDED TAX TREATMENT STATED ABOVE. ALL PROVISIONS OF THIS MASTER CONVEYANCE AND THE
RECORDABLE CONVEYANCE SHALL BE CONSTRUED AND TREATED ACCORDINGLY. 
 10.4 Notices. All notices, consents and other
communications under this Master Conveyance shall be in writing and shall be deemed to have been duly given (a) when delivered by hand, (b) when sent by telecopier (with receipt confirmed), (c) when received by the addressee, if sent
by a nationally recognized express delivery service or (d) upon receipt after being mailed by certified or registered mail; in each case to the appropriate addresses and telefax numbers set forth below (or to such other addresses and telefax
numbers as a party may designate as to itself by notice to other party): 
 if to Grantor: 

McMoRan Oil & Gas LLC 
 1615 Poydras Street 
 New Orleans, LA 70112 

Attention: General Counsel 
 Facsimile: (504) 582-4155 
 with a copy to: 

Jones Walker LLP 

201 St. Charles Avenue 
 New Orleans, LA 70170 
 Attention: David M. Hunter 

Facsimile: (504) 582-8583 
 if to Grantee: 
 Gulf Coast Ultra Deep Royalty Trust 

c/o The Bank of New York Mellon Trust Company, N.A. 

  
 28 

 
Institutional Trust Services 
 919 Congress Avenue, Suite 500 

Austin, Texas 78701 
 Attention: Mike J. Ulrich 
 Facsimile: (512) 479-2253 

with a copy to: 

Bracewell & Giuliani 
 111 Congress Avenue, Suite 2300 
 Austin, Texas 78701 

Attention: Thomas W. Adkins 
 Facsimile: (512) 479-3940 
 A copy of this Master Conveyance has been retained by Grantor and
Grantee, and upon the receipt of a request from any party for a copy of this Master Conveyance, Grantor and Grantee are each hereby authorized to deliver a copy of this Master Conveyance directly to such requesting party; provided,
however, that Grantee shall provide a copy of any such request, together with a copy of the letter transmitting this Master Conveyance to any such requesting party, to Grantor within five (5) business days after sending such copy to the
requesting party and Grantor agrees to provide a copy of such request, together with a copy of the letter transmitting this Master Conveyance to any such requesting party, to Grantee within five (5) business days after sending such copy to the
requesting party. 
 10.5 Amendments. Except as expressly set forth in this Master Conveyance, this Master Conveyance and
the Recordable Conveyance may be amended, modified or waived only by the written agreement executed by each of Grantor and Grantee. No waiver of any of the provisions of this Master Conveyance shall be deemed or shall constitute a waiver of any
other provision hereof (regardless of whether similar), nor shall any such waiver constitute a continuing waiver unless otherwise expressly provided. 
 10.6 Counterparts. This Master Conveyance may be executed by Grantor and Grantee in any number of counterparts, each of which shall be deemed to be an original instrument, but all of which together
shall constitute one and the same instrument. 
 10.7 Binding Effect. All the covenants and agreements of Grantor herein
contained shall be deemed to be covenants running with Grantor’s interest in the Subject Interests and the lands affected thereby. All of the provisions hereof shall inure to the benefit of Grantee and its successors and assigns and shall be
binding upon Grantor and its successors and assigns. 
 10.8 Partition. Grantor and Grantee acknowledge that Grantee has
no right or interest that would permit it to partition any portion of the Subject Interests, and Grantee waives any such right. 

10.9 Partial Invalidity. In the event any provision contained in this Master Conveyance shall for any reason be held to be
invalid, illegal or unenforceable by a Governmental Authority, then (to the extent permitted under applicable law) such invalidity, illegality or unenforceability shall not affect any of the remaining provisions of this Master Conveyance which shall
remain in full force and effect. 

  
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 10.10 Effective Date. This Master Conveyance is effective for all purposes (the
“Effective Date”) as of [EFFECTIVE DATE OF THE MERGER], 2013. 
 10.11 Recording.

 (a) It is not the intent of Grantor and Grantee to file this Master Conveyance in the records of the BOEM or in the parishes
adjacent to or where the Subject Interests are located but to record the Recordable Conveyances for filing in such records. In addition to such Recordable Conveyances (without creating any additional covenants, warranties or representations of or by
Grantor), Grantor covenants and agrees to execute and deliver to Grantee all such other and additional assignments, instruments and other documents and to do all such other acts and things as may be necessary more fully to vest in Grantee record
title to the Overriding Royalty Interest. Such separate or additional assignments and the Recordable Conveyances: (a) shall evidence the assignment of the Overriding Royalty Interest herein made or intended to be made; (b) shall not modify
any of the terms and covenants herein set forth and shall not create any additional representations or covenants of or by Grantor to Grantee; (c) shall be deemed to contain all of the terms and provisions hereof, as fully and to all intents and
purposes as though the same were set forth at length in the separate assignments; and (d) to the extent required by Law, shall be on forms prescribed, or may otherwise be on forms suggested, by the appropriate Governmental Authorities. In the
event any term or provision of any separate or additional assignment or the Recordable Conveyances should be inconsistent with or conflict with the terms or provisions of this Master Conveyance, the terms and provisions of this Master Conveyance
shall control and shall govern the rights, obligations and interests of the parties hereto, their successors and assigns. 
 (b)
Upon execution of this Master Conveyance, Grantor and Grantee shall execute a memorandum in the form of Exhibit D attached hereto (the “Memorandum”) and file such memorandum in the real property records of the parishes
adjacent to or where the Existing Subject Interests are located, and upon the acquisition of any Add-On Lease after the Effective Date Grantor shall provide written notice to Grantee of such acquisition and the parish adjacent to or where the Add-On
Lease is located and Grantor and Grantee shall cause a Memorandum to be filed in the real property records of such parish if the Memorandum is not then filed in such real property records of such parish or an amendment to the Memorandum to be filed
in the real property records of such parish if the Memorandum has previously been filed in such real property records of such parish. 
 10.12 No Third Party Beneficiaries. Nothing in this Master Conveyance shall entitle any Person other than Grantor, Grantee and, solely with respect to Section 9.2, any Royalty Company
Indemnitee to any claims, cause of action, remedy or right of any kind. Any action that Grantee is authorized to undertake pursuant to this Master Conveyance or any Recordable Conveyance may be undertaken by the Trustee on Grantee’s behalf or
by any other agent or representative of Grantee or Trustee. 

  
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 10.13 Limitation of Liability. It is expressly understood and agreed by the parties
hereto that (a) this Agreement is executed and delivered by the Trustee on behalf of Grantee and not individually or personally, but solely as Trustee of the Trust and (b) under no circumstances shall the Trustee be liable for the breach
or failure of any obligations, representation, warranty or covenant made or undertaken by Grantee under this Agreement. 

  
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 IN WITNESS WHEREOF, Grantor and Grantee have executed this Master Conveyance on this
[            ] day of [            ], 2013. 

 

			
	GRANTOR:
	
	MCMORAN OIL & GAS LLC
		
	By:	 	 
	
	GRANTEE:
	
	GULF COAST ULTRA DEEP ROYALTY TRUST
	
	By: The Bank of New York Mellon Trust Company, N.A., as Trustee
		
	By:	 	 

 SIGNATURE PAGE TO 

MASTER CONVEYANCE OF OVERRIDING ROYALTY INTEREST

 EXHIBIT A 

Prospect Areas/Scheduled Working Interest 
  

					
	 Prospect Area
	  	Scheduled Working Interest	 
	 Offshore:
	  			
	 Davy Jones
	  	 	63.4	% 
	 Blackbeard East
	  	 	72.0	% 
	 Lafitte
	  	 	72.0	% 
	 Blackbeard West
	  	 	69.4	% 
	 England
	  	 	36.0	% 
	 Barbosa
	  	 	72.0	% 
	 Morgan
	  	 	72.0	% 
	 Barataria
	  	 	72.0	% 
	 Blackbeard West #3
	  	 	69.4	% 
	 Drake
	  	 	72.0	% 
	 Davy Jones West
	  	 	36.0	% 
	 Hurricane
	  	 	72.0	% 
	 Hook
	  	 	72.0	% 
	 Captain Blood
	  	 	72.0	% 
	 Bonnet
	  	 	72.0	% 
	 Queen Anne’s Revenge
	  	 	72.0	% 
	 Calico Jack
	  	 	36.0	% 
	 Onshore:
	  			
	 Highlander
	  	 	72.0	% 
	 Lineham Creek
	  	 	36.0	% 
	 Tortuga
	  	 	72.0	% 

  
 A-1

 EXHIBIT B 

First RC Leases 
  

					
	Area/Block/Lease	  	Original Lessee	  	Date of Lease
	 EI 0222 OCS-G 22672
	  	EEX CORPORATION	  	05/01/2001
	 EI 0223 OCS-G 21640
	  	EEX CORPORATION	  	05/01/2000
	 EI 0244 OCS-G 33630
	  	MCMORAN OIL & GAS LLC	  	06/01/2010
	 EI 0268, OCS-G 34306
	  	MCMORAN OIL & GAS LLC	  	10/01/2012
	 EI 0288, OCS-G 34307
	  	MCMORAN OIL & GAS LLC	  	10/01/2012
	 EI 0289 OCS-G 33634
	  	MCMORAN OIL & GAS LLC	  	06/01/2010
	 SM 0025 OCS-G 33611
	  	MCMORAN OIL & GAS LLC	  	07/01/2010
	 SM 0026 OCS-G 33612
	  	MCMORAN OIL & GAS LLC	  	07/01/2010
	 SM 0030 OCS-G 33613
	  	MCMORAN OIL & GAS LLC	  	07/01/2010
	 SM 0080, OCS-G 34267
	  	MCMORAN OIL & GAS LLC	  	10/01/2012
	 SM 0081 OCS-G 33614
	  	MCMORAN OIL & GAS LLC	  	07/01/2010
	 SM 0082 OCS-G 33615
	  	MCMORAN OIL & GAS LLC	  	07/01/2010
	 SM 0091, OCS-G 34268
	  	MCMORAN OIL & GAS LLC	  	10/01/2012
	 SM 0092, OCS-G 34269
	  	MCMORAN OIL & GAS LLC	  	10/01/2012
	 SM 0112, OCS-G 34271
	  	MCMORAN OIL & GAS LLC	  	10/01/2012
	 SM 0125 OCS-G 32161
	  	MCMORAN OIL & GAS LLC	  	07/01/2008
	 SM 0212, 0217, ETC. OCS 0310
	  	THE TEXAS COMPANY, ET AL	  	02/07/1936
	 SM 0230 OCS-G 26013
	  	STONE ENERGY CORPORATION	  	07/01/2004
	 SM 0231 OCS-G 26014
	  	STONE ENERGY CORPORATION	  	07/01/2004
	 SM 0233 OCS-G 34280
	  	CHEVRON U.S.A. INC.	  	11/01/2012
	 SM 0234 OCS-G 27896
	  	EXXONMOBIL CORPORATION	  	06/01/2006
	 SM 0234/0235 OCS-G 02300
	  	SONAT EXPLORATION CO.	  	02/01/1973
	 SM 0235 OCS-G 27897
	  	EXXONMOBIL CORPORATION	  	06/01/2006
	 SS 0136 OCS-G 33642
	  	MCMORAN OIL & GAS LLC	  	06/01/2010
	 SS 0137 OCS-G 33643
	  	MCMORAN OIL & GAS LLC	  	06/01/2010
	 SS 0184 OCS-G 32195
	  	MCMORAN OIL & GAS LLC	  	07/01/2008
	 SS 0185 OCS-G 33096
	  	MCMORAN OIL & GAS LLC	  	07/01/2009
	 SS 0186 OCS-G 32197
	  	NEWFIELD EXPLORATION COMPANY	  	08/01/2008
	 SS 0188 OCS-G 22712
	  	AVIARA ENERGY CORPORATION	  	05/01/2001
	 SS 0192 OCS-G 32198
	  	MCMORAN OIL & GAS LLC	  	07/01/2008
	 SS 0212 OCS-G 32200
	  	MCMORAN OIL & GAS LLC	  	06/01/2008
	 ST 0078 OCS-G 33653
	  	MCMORAN OIL & GAS LLC	  	06/01/2010
	 ST 0079 OCS-G 33654
	  	MCMORAN OIL & GAS LLC	  	06/01/2010
	 ST 0141 OCS-G 21665
	  	EEX CORPORATION	  	05/01/2000
	 ST 0142 OCS-G 21666
	  	EEX CORPORATION	  	05/01/2000

  
 B-1

							
	 ST 0144 OCS-G 21667
	  	EEX CORPORATION	  	 	07/01/2000	  
	 ST 0145 OCS-G 26098
	  	STONE ENERGY CORPORATION	  	 	07/01/2004	  
	 ST 0164 OCS-G 01250
	  	STONE ENERGY OFFSHORE, L.L.C.	  	 	06/01/1962	  
	 ST 0165 OCS-G 01251
	  	STONE ENERGY OFFSHORE, L.L.C.	  	 	06/01/1962	  
	 ST 0167 OCS-G 21668
	  	EEX CORPORATION	  	 	05/01/2000	  
	 ST 0168 OCS-G 21669
	  	EEX CORPORATION	  	 	05/01/2000	  
	 ST 0173 OCS-G 4001
	  	EXXON MOBIL CORPORATION	  	 	03/01/1979	  
	 ST 0178 OCS-G 34336
	  	CHEVRON U.S.A. INC.	  	 	10/01/2012	  
	 ST 0188 OCS-G 33662
	  	MCMORAN OIL & GAS LLC	  	 	07/01/2010	  
	 VR 0021 OCS-G 34244
	  	CHEVRON U.S.A. INC.	  	 	11/01/2012	  
	 VR 0023 OCS-G 34245
	  	VR 0023 OCS-G 34245	  	 	11/01/2012	  
	 VR 0025 OCS-G 34246
	  	CHEVRON U.S.A. INC.	  	 	11/01/2012	  
	 VR 0037 OCS-G 33586
	  	MCMORAN OIL & GAS LLC	  	 	05/01/2010	  
	 VR 0040 OCS-G 34247
	  	CHEVRON U.S.A. INC.	  	 	11/01/2012	  
	 VR 0052 OCS-G 34248
	  	CHEVRON U.S.A. INC.	  	 	12/01/2012	  
	 VR 0070 OCS-G 34250
	  	CHEVRON U.S.A. INC.	  	 	12/01/2012	  

  
 B-2

  EXHIBIT C 

Recordable Memorandum 

  
  C-1

 MEMORANDUM OF CONVEYANCE 

This Memorandum of Conveyance (the “Memorandum”), is executed to be effective concurrently with that Master Conveyance
of Overriding Royalty Interest, dated as of [            ], 2013 (the “Master Conveyance”), by and between McMoRan Oil & Gas LLC, as grantor
(“Grantor”), and Gulf Coast Ultra Deep Royalty Trust, as grantee (“Grantee”), covering among other things the conveyance of an overriding royalty interest in certain oil, gas and/or mineral properties in the areas
described in Exhibit “A” (such areas, the “Prospect Areas”). 
 The purpose of this Memorandum
is to place third parties on notice of the Master Conveyance. This Memorandum incorporates by reference all of the terms and conditions of the Master Conveyance, and all capitalized terms used but not defined herein shall have the meaning ascribed
to them in the Master Conveyance. 
 The Master Conveyance provides, among other things, that: 

 

	 	1.	The interests of Grantor and its Affiliates under Leases acquired on or prior to December 5, 2017, related to the Prospect Areas are subject to and burdened with
the terms and provisions of the Master Conveyance to the extent such interests cover hydrocarbons produced from the Subject Formations (the “Subject Interests”). 

 

	 	2.	Grantee is entitled to an Overriding Royalty Interest with respect to each Subject Interest of 5%, proportionately reduced to the extent the Subject Interest is less
than 100% of the Working Interest applicable to the Subject Formations under a Lease to which such Subject Interest relates. 

  

	 	3.	The Subject Interests which are subject hereto may not be assigned or transferred by Grantor or its Affiliates except in accordance with those terms, provisions and
restrictions in the Master Conveyance regulating such transfers. 

  

	 	4.	Each Overriding Royalty Interest will be carved out of the Working Interest of Grantor and its Affiliates represented by the Subject Interests at the time the
Overriding Royalty Interest is granted. The Effective Time of each Overriding Royalty Interest assigned will be the date of the Recordable Conveyance assigning such Overriding Royalty Interest to Grantee, provided if Production with respect to such
Subject Interests shall have first occurred prior to the date of such Recordable Conveyance the Effective Time shall be the first day on which Production was first obtained from any Subject Interest to which such Recordable Conveyance relates.

  

	 	5.	 Notwithstanding the foregoing and Section 5.2 of the Master Conveyance, from time to time Grantor and its Affiliates may assign a portion
of their Working Interest in a Lease (or any Well attributable thereto) to third parties free and clear of the Overriding Royalty Interest to the extent necessary to satisfy the obligations of Grantor and its Affiliates existing as of
            , 2013 [NTD: insert the date of the Master Conveyance] or which may arise after             , 2013, in
connection with the good faith efforts of Grantor and its Affiliates to acquire 

  
 2 

	 	
Leases and/or enter into development and participation agreements with respect to the development of the Subject Formations; provided that no such assignment shall be permitted, and shall be void
ab initio, unless certain conditions specified in Section 2.1(h) of the Master Conveyance are satisfied. 

  

	 	6.	If Grantor or any of its Affiliates is ever liable for any indebtedness or hedging obligation, Grantor will ensure that (i) with respect to any Lease that is
burdened by any Lien or security interest securing such indebtedness or hedging obligation, at least five percent (5%) (proportionately reduced) of Grantor’s rights and interests in such Lease attributable to the Subject Interests is
excluded from such lien and security interest and (ii) the terms and conditions of such indebtedness or hedging obligation will not prevent or otherwise restrict Grantor from satisfying its obligations under the Master Conveyance or any
Recordable Conveyance and will require any party secured under such arrangement to agree to release its lien or security interest, if any, to the extent required to permit the grant of Overriding Royalty Interest in accordance with the terms hereof.

  

	 	7.	If the closing of an ORRI Transfer occurs, then (i) upon the closing of the ORRI Transfer this Memorandum shall be amended to identify the ORRI Purchase Price as
determined in accordance with the Master Conveyance and (ii) at any time after the closing of an ORRI Transfer until the [ ][NTD: INSERT ACTUAL END DATE AS SPECIFIED IN THE MASTER CONVEYANCE], Grantor shall have the right and option (the
“ORRI Purchase Option”) to purchase all, but not less than all, of such Overriding Royalty Interests at a price equal to the ORRI Purchase Price. Grantor may exercise the ORRI Purchase Option by providing written notice (the
“ORRI Purchase Notice”) to Grantee and tendering to Grantee the full ORRI Purchase Price (the time of such tender, the “ORRI Purchase Option Closing”) by wire transfer of immediately available funds to
the account designated in writing by such Person after receipt of the ORRI Purchase Notice. 

 The following terms
shall have the definitions given to them below: 
 “Leases” shall mean any Oil, Gas and/or other mineral lease
covering or otherwise related to all or any portion of (a) a Prospect Area, (b) any area with which all or any portion of a Prospect Area is aggregated by unitization, pooling or similar aggregation principles, (c) all other rights
in, to or under any other instrument or fee tract related to, and all other rights to drill for, develop and produce Hydrocarbons from, a Prospect Area and any area with which all or any portion of a Prospect Area is aggregated by unitization,
pooling or similar aggregation principles and (d) following December 5, 2017, any replacement lease taken upon or in anticipation of expiration or termination of any such Lease (if executed and delivered during the term of or within one
year after expiration of the predecessor Lease), insofar only as any such replacement lease covers the Subject Formations under the same lands described in the original Lease. 

  
 3 

 “Subject Formations” shall mean the geologic formation (or formations) covered by
or subject to any Lease the base of which is below 18,000 feet true vertical depth subsea (measured from sea level, whether onshore or offshore), but shall not include (i) perforated intervals shallower than 18,000 feet true vertical depth
subsea (measured from sea level, whether onshore or offshore), or (ii) as respects OCS 0310, depths shallower than the salt or salt weld as seen in the South Marsh Island Block 217 No. 234 Well (which are deeper than 18,000 feet true
vertical depth subsea measured from sea level). 
 The Master Conveyance includes other provisions which do not conflict but
supplement the above described provisions. Should any person or firm desire additional information regarding the Master Conveyance or wish to inspect a copy of the Master Conveyance, said person or firm should contact the Grantor. 

This Memorandum is intended to be a description of certain terms of the Master Conveyance for the purpose of placing notice of such
provisions of public record, and is not intended to modify or alter the terms of the Master Conveyance To the extent any provision of this Memorandum conflicts with any provision of the Master Conveyance, the terms of the Master Conveyance shall
control. 
 This Memorandum may be executed by Grantor and Grantee in any number of counterparts, each of which shall be deemed
to be an original instrument, but all of which together shall constitute one and the same instrument. For purposes of recording, only one copy of this Memorandum with individual signature pages attached to it needs to be filed of record. 

  
 4 

 IN WITNESS WHEREOF, Grantor and Grantee have executed this Memorandum on this
[            ] day of [            ], 2013. 

 

			
	GRANTOR:
	
	[MCMORAN OIL & GAS LLC]
		
	By:	 	 
	
	GRANTEE:
	
	[GULF COAST ULTRA DEEP ROYALTY TRUST]
		
	By:	 	 

  
 5EX-4.18

 Exhibit 4.18 
 NON-COMPETITION AGREEMENT 
 THIS NON-COMPETITION AGREEMENT is entered into
on, and effective as of, June 15, 2012, between Teekay Corporation, a Marshall Islands corporation (“Teekay”) and Teekay Tankers Ltd., a Marshall Islands corporation (“TNK”). 

R E C I T A L S 
 1. Teekay and TNK are parties to the Purchase Agreement dated as of June 15, 2012 (the “Purchase Agreement”) entered into in connection with the sale of thirteen oil tankers and
product tankers from TK to TNK and pursuant to which such parties evidenced their understandings with respect to various matters set forth therein. 
 2. The Parties desire to enter into this Agreement to evidence their understanding with respect to the various matters set forth herein and as a condition to the closing of the transactions contemplated
by the Purchase Agreement. 
 3. The Parties desire by their execution of this Agreement to evidence their understanding, as
more fully set forth in Articles II and III, with respect to (a) those business opportunities that the Teekay Entities (as defined herein) will not pursue during the applicable period set forth in this Agreement and (b) the procedures
whereby such business opportunities are to be offered to the TNK Group (as defined herein) and accepted or declined. 
 In
consideration of the premises and the covenants, conditions, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 ARTICLE I 
 DEFINITIONS 
 1.1 Definitions. 

As used in this Agreement, the following terms shall have the respective meanings set forth below: 

“Accepted Assets” has the meaning given such term in Section 3.1(d). 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more
intermediaries controls, is controlled by or is under common control with, the Person in question. 

“Agreement” means this Non-competition Agreement, as it may be amended, modified, or supplemented from time to time in
accordance with Section 4.5 hereof. 
 “Break-up Costs” means the aggregate amount of any and all costs to
the Teekay Entities that would be required to transfer Conventional Tanker Assets acquired by the Teekay Entities as part of a larger transaction to a TNK Entity pursuant to Article III. 

  

NON-COMPETITION AGREEMENT 

  

 “Business Day” means a day (other than a Saturday or Sunday) on which banks
in New York are open for the transaction of normal banking business (other than solely for trading and settlement in Dollars). 

“control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of a Person, whether through ownership of voting securities, by contract or otherwise. 
 “Conventional Tanker
Assets” means crude oil tankers and product tankers and related charters, including Newbuild Conventional Tanker Assets but excluding any Offshore Assets. 
 “Conventional Tanker Restricted Business” has the meaning given such term in Section 2.1. 
 “Exempt Assets” means the vessels listed in Appendix A of this Agreement. 
 “Fully-Built-Up Cost” means, with respect to a Conventional Tanker Asset to be acquired or leased (pursuant to a capitalized lease obligation) by a TNK Group Member, the aggregate amount
of all expenditures incurred, at cost, up to the date of sale to TNK. For greater certainty, if the Accepted Asset is a Green Tanker, it is understood that Fully-Built-Up Cost shall include a reasonable allocation of all of the costs incurred by
Teekay in designing and developing the Green Tanker, including business development costs associated with marketing the One Spirit tanker design to customers to gain their acceptance of such design. 

“Green Tanker” means the “One Spirit” energy efficient ship design developed by Teekay. 

“Negotiation Period” has the meaning given such term in Section 3.1(e). 

“Newbuild Conventional Tanker Assets” means any Conventional Tanker newbuilding project that a Teekay Entity undertakes.

 “Offer” has the meaning given such term in Section 3.1(b). 

“Offshore Assets” means (a) dynamically-positioned shuttle tankers (including dynamically-positioned shuttle
tankers that operate in conventional crude oil tanker trades), (b) floating storage and offtake units, (c) floating production, storage and offloading units and (d) related charters or contracts of affreightment. 

“Parties” means the parties to this Agreement and their successors and permitted assigns. 

“Person” means an individual, corporation, partnership, joint venture, trust, limited liability company, unincorporated
organization or any other entity. 
 “Purchase Agreement” has the meaning given to such term in Recital 1.

  

NON-COMPETITION AGREEMENT 

  
 -2-

 “Teekay” is defined in the introduction to this Agreement. 

“Teekay Entities” means Teekay and any Person managed or controlled, directly or indirectly, by Teekay other than the
TNK Entities. 
 “TNK” is defined in the introduction to this Agreement. 

“TNK Conflicts Committee” means the Conflicts Committee of the board of directors of TNK. 

“TNK Entities” means TNK and any Person controlled, directly or indirectly, thereby. 

“TNK Notice” has the meaning given such term in Section 3.1(d). 

ARTICLE II 

CONVENTIONAL TANKER RESTRICTED BUSINESS OPPORTUNITIES 
 2.1 Conventional Tanker Restricted Businesses. Except as permitted by Section 2.2, each of the Teekay Entities shall be prohibited from engaging in or acquiring
(including through in-chartering) or investing in any business that owns, operates or charters Conventional Tanker Assets (each a “Conventional Tanker Restricted Business”) for a period of three years from the date of this
Agreement. 
 2.2 Permitted Exceptions. Notwithstanding any provision of Section 2.1 to the
contrary, the Teekay Entities may engage in the following activities under any of the following circumstances: 
 (a) the
ownership, operation and/or chartering of any of the Exempt Assets; 
 (b) the ownership, operation and/or chartering of any
Conventional Tanker Assets that any Teekay Entity acquires after the date of this Agreement if the Teekay Entity has offered TNK the opportunity for TNK to purchase such Conventional Tanker Assets in accordance with the procedures set forth in
Section 3.1 and TNK, with the approval of TNK’s Conflicts Committee, has elected not to cause any TNK Entity to purchase such Conventional Tanker Assets; 
 (c) the ownership, operation and/or chartering of Conventional Tanker Assets that are subject to an Offer as described in Section 3.1 pending TNK’s determination pursuant to Section 3.1
whether to purchase the Conventional Tanker Assets and, if TNK’s Conflicts Committee determines to cause a TNK Group Member to purchase such Conventional Tanker Assets, pending the closing of such purchase; 

(d) the provision by Teekay Entities of ship management services relating to a Conventional Tanker Restricted Business; or 

  

NON-COMPETITION AGREEMENT 

  
 -3-

 (e) (i) the acquisition of up to a 9.9% equity ownership, voting or profit
participation interest in any publicly traded Person (other than TNK) that engages in a Conventional Tanker Restricted Business and is not controlled, managed or operated by Teekay, (ii) the acquisition of up to 50% equity ownership, voting or
profit participation interest in any Person (other than TNK) that engages no more than the lesser of 20% of its assets or $100 million in a Conventional Tanker Restricted Business or (iii) any investment by any Teekay Entity in Teekay GP
L.L.C., Teekay LNG Partners L.P., Teekay Offshore GP L.L.C. or Teekay Offshore Partners L.P. 
 ARTICLE III 

BUSINESS OPPORTUNITIES PROCEDURES 
 3.1 Procedures. (a) In the event that, prior to the third anniversary of this Agreement, a Teekay Entity proposes to enter into a contract (i) to acquire any
then existing Conventional Tanker Asset either directly or through the acquisition of a Person that owns the existing Conventional Tanker Asset or (ii) for the construction of any Newbuild Conventional Tanker Asset; then, not later than the
date that Teekay intends to enter into a contract described in 3.1(a)(i) or 3.1(a)(ii) above (in any case, not later than Teekay management seeks approval from its Board of Directors for same), Teekay shall notify TNK in writing (the
“Offer”) of such acquisition (or proposed acquisition) and offer TNK the opportunity to purchase such Conventional Tanker Assets (the “Offered Assets”), which shall include a pro-rata allocation of any Newbuild
Conventional Tanker Asset purchase options offered by a shipyard in connection with the contract described in 3.1(a)(ii), which option allocation shall be at no additional cost to TNK other than, upon exercise of such an option on a Green Tanker, a
reasonable allocation of all of the costs incurred by Teekay in designing and developing the Green Tanker, including business development costs associated with marketing the One Spirit tanker design to customers to gain their acceptance of such
design. 
 (b) The purchase price for any Offered Assets pursuant to Section 3.1(a) above shall be (i) the Offered
Assets’ fair market value (plus any Break-up Costs), in the case of Section 3.1(a)(i), or (ii) the Offered Assets’ Fully-Built-Up Cost, in the case of Section 3.1(a)(ii). 

(c) The Offer shall set forth the purchase price for the Offered Assets and other commercially reasonable proposed terms relating to the
purchase of the Offered Assets by TNK, including any liabilities to be assumed by TNK as part of the Offer. 
 (d) Concurrently
with or as soon as practicable after the Offer is made, Teekay will deliver to TNK all information prepared by or on behalf of or in the possession of Teekay relating to the Offered Assets and reasonably requested by TNK. As soon as practicably
required by the nature of the specific transaction (which shall be reasonably identified by Teekay in the Offer), but in any event, no less than 10 Business Days after receipt of such notification, TNK shall notify Teekay in writing (the
“TNK Notice”) that either: 

                (i) TNK (with the
concurrence of the TNK Conflicts Committee) has elected not to purchase (or not to cause any TNK Entity to purchase) such Offered Assets (or any portion of such Offered Assets), in which event the Teekay Entities shall, subject to the other terms of
this Agreement, be forever free to continue to own, operate and charter such Offered Assets TNK has elected not to purchase (or not to cause any TNK Entity to purchase), or to sell, in whole or in part, such Offered Assets to any third party on such
terms and conditions as Teekay, in its sole discretion, determines; or 

  

NON-COMPETITION AGREEMENT 

  
 -4-

                (ii) TNK (with the
concurrence of the TNK Conflicts Committee) has elected to purchase (or to cause any TNK Entity to purchase) such Offered Assets (or any portion of such Offered Assets) (such Offered Assets TNK elects to purchase or to cause any other TNK Entity to
purchase being the “Accepted Assets”), whereupon, TNK will have the obligation to purchase the Accepted Assets for the fair market value (plus any Break-up Costs) or Fully-Built-Up Cost, as applicable, as soon as commercially
practicable, provided, however, that any outstanding disagreement between TNK and Teekay on the terms of the proposed purchase, including the determination of fair market value (plus any Break-up Costs) or Fully-Built-Up Cost, shall be settled
following the procedures set forth in Section 3.1(e) below and which may, if required for commercial expediency, be settled between Teekay and TNK after TNK enters into a purchase agreement or newbuilding contract with a third party vendor or
shipyard. 
 (e) If Teekay and TNK are unable to agree on the fair market value (plus any Break-up Costs) or the Fully-Built-Up
Cost, as applicable, of the Accepted Assets or on any other terms of the Offer during the 15 day period after receipt by Teekay of the TNK Notice (the “Negotiation Period”), Teekay and TNK will engage an independent ship broker
and/or an independent investment banking firm prior to the end of the Negotiation Period to determine the fair market value (plus any Break-up Costs) or the Fully-Built-Up Cost, as applicable, of the Accepted Assets and/or the other terms on which
Teekay and TNK are unable to agree. In determining the fair market value (plus any Break-up Costs) or the Fully-Built-Up Cost of the Accepted Assets and other terms on which the Accepted Assets are to be sold, the ship broker or investment banking
firm, as applicable, will have access to the proposed sale and purchase values and terms for the Offer submitted by Teekay and TNK, respectively, and to all information prepared by or on behalf of Teekay relating to the Accepted Assets and
reasonably requested by such ship broker or investment banking firm. Such ship broker or investment banking firm will determine the fair market value (plus any Break-up Costs) or Fully-Built-Up Cost of the Accepted Assets and/or the other terms on
which Teekay and TNK are unable to agree within 30 days of its engagement and furnish Teekay and TNK its determination. The fees and expenses of the ship broker or investment banking firm, as applicable, will be divided equally between Teekay and
TNK. 
 3.2 Scope of Prohibition. If any Teekay Entity engages in a Conventional Tanker Restricted
Business pursuant to any of the exceptions described in Section 2.2, such Teekay Entity may not subsequently expand that portion of its business other than pursuant to the exceptions contained in such Sections 2.2. Except as otherwise provided
in this Agreement, each Party and its Affiliates shall be free to engage in any business activity whatsoever, including those that may be in direct competition with the other Party and its Affiliates. 

3.3 Enforcement. Each Party agrees and acknowledges that the other Parties do not have an adequate remedy at
law for the breach by any such Party of its covenants and agreements set forth in Article II or this Article III, and that any breach by any such Party of its covenants and agreements set forth in Article II or this Article III would result in
irreparable injury to such 

  

NON-COMPETITION AGREEMENT 

  
 -5-

 
other Parties. Each Party further agrees and acknowledges that any other Party may, in addition to the other remedies which may be available to such other Party, file a suit in equity to enjoin
such Party from such breach, and consent to the issuance of injunctive relief to enforce the provisions of Article II and this Article III. 
 3.4 Notifications. Teekay agrees to provide TNK reasonable notice of any transactions it is actively contemplating or pursuing that involve Conventional Tanker Assets that
would be subject to TNK’s rights under Article II or Article III. 
 3.5 New Venture
Investments. In the event that, prior to the third anniversary of this Agreement, a Teekay Entity proposes to establish or acquire any equity ownership, voting or profit participation interest in any Person (other than TNK) that will
invest in Green Tankers, then, not later than the earlier of the date that is 30 days before the date that Teekay is scheduled to make such investment and the date that Teekay management seeks approval from its Board of Directors for such
investment, Teekay shall notify TNK in writing of such proposed investment and offer TNK the opportunity to invest in the new venture up to a level sufficient to control the venture, at a purchase price equal to fair market value, and such
notification shall to be treated as an “Offer” and such offered interest shall be treated as “Offered Assets” for the purposes of the procedures set forth in sections 3.1(c), (d) and (e) above, which shall
apply to the Parties. After a Teekay Entity has made a controlling investment in a Person described in this Section 3.5, such Person shall become a “Teekay Entity” for the purposes of this Agreement, and shall be required, inter alia,
to follow the business opportunities procedures set forth in Article III of this Agreement. 
 ARTICLE IV 

MISCELLANEOUS 
 4.1 Choice of Law; Submission to Jurisdiction. This Agreement shall be subject to and governed by the laws of the State of New York, excluding any conflicts-of-law rule or
principle that might refer the construction or interpretation of this Agreement to the laws of another jurisdiction. Each party hereby submits to the jurisdiction of the state and federal courts located in the State of New York and to venue in New
York, New York. 
 4.2 Notice. All notices or requests or consents provided for or permitted to be
given pursuant to this Agreement must be in writing and must be given by depositing same in the mail, addressed to the Person to be notified, postpaid, and registered or certified with return receipt requested or by delivering such notice in person
or by private-courier, prepaid, or by telecopier to such party. Notice given by personal delivery or mail shall be effective upon actual receipt. Couriered notices shall be deemed delivered on the date the courier represents that delivery will
occur. Notice given by telecopier shall be effective upon actual receipt if received during the recipient’s normal business hours, or at the beginning of the recipient’s next business day after receipt if not received during the
recipient’s normal business hours. All notices to be sent to a party pursuant to this Agreement shall be sent to or made at the address set forth below such party’s signature to this Agreement, or at such other address as such party may
stipulate to the other parties in the manner provided in this Section. 

  

NON-COMPETITION AGREEMENT 

  
 -6-

 4.3 Entire Agreement. This Agreement constitutes the entire
agreement of the parties relating to the matters contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein. 

4.4 Waiver; Effect of Waiver or Consent. Any party hereto may (a) extend the time for the performance of
any obligation or other act of any other party hereto or (b) waive compliance with any agreement or condition contained herein. Except as otherwise specifically provided herein, any such extension or waiver shall be valid only if set forth in a
written instrument duly executed by the party or parties to be bound thereby; provided, however, that TNK may not, without the prior approval of TNK’s Conflicts Committee, agree to any extension or waiver of this Agreement that, in the
reasonable discretion of TNK, will adversely affect the holders of Class A common shares of TNK. No waiver or consent, express or implied, by any party of or to any breach or default by any Person in the performance by such Person of its
obligations hereunder shall be deemed or construed to be a waiver or consent of or to any other breach or default in the performance by such Person of the same or any other obligations of such Person hereunder. Failure on the part of a party to
complain of any act of any Person or to declare any Person in default, irrespective of how long such failure continues, shall not constitute a waiver by such party of its rights hereunder until the applicable statute of limitations period has run.

 4.5 Amendment or Modification. This Agreement may be amended or modified from time to time only
by the written agreement of all the parties hereto; provided, however, that (a) TNK may not, without the prior approval of TNK’s Conflicts Committee, agree to any amendment or modification of this Agreement that, in the reasonable
discretion of TNK, will adversely affect the holders of Class A common shares of TNK. 
 4.6
Assignment. No party shall have the right to assign its rights or obligations under this Agreement without the consent of the other parties hereto. 
 4.7 Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signatory parties had signed the same document. All counterparts
shall be construed together and shall constitute one and the same instrument. 
 4.8 Severability.
If any provision of this Agreement or the application thereof to any Person or circumstance shall be held invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provision to other Persons or circumstances
shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 
 4.9 Gender, Parts,
Articles and Sections. Whenever the context requires, the gender of all words used in this Agreement shall include the masculine, feminine and neuter, and the number of all words shall include the singular and plural. All references
to Article numbers and Section numbers refer to Articles and Sections of this Agreement. 
 4.10 Further
Assurances. In connection with this Agreement and all transactions contemplated by this Agreement, each signatory party hereto agrees to execute and deliver such additional documents and instruments and to perform such additional acts
as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such transactions. 

  

NON-COMPETITION AGREEMENT 

  
 -7-

 4.11 Withholding or Granting of Consent. Each party may,
with respect to any consent or approval that it is entitled to grant pursuant to this Agreement, grant or withhold such consent or approval in its sole and uncontrolled discretion, with or without cause, and subject to such conditions as it shall
deem appropriate. 
 4.12 Laws and Regulations. Notwithstanding any provision of this
Agreement to the contrary, no party to this Agreement shall be required to take any act, or fail to take any act, under this Agreement if the effect thereof would be to cause such party to be in violation of any applicable law, statute, rule or
regulation. 
 4.13 Negotiation of Rights of Teekay, Assignees, and Third Parties. The
provisions of this Agreement are enforceable solely by the parties to this Agreement, and no shareholder of Teekay and no shareholder of TNK shall have the right, separate and apart from Teekay or TNK, to enforce any provision of this Agreement or
to compel any party to this Agreement to comply with the terms of this Agreement. 
 [SIGNATURE PAGE FOLLOWS] 

  

NON-COMPETITION AGREEMENT 

  
 -8-

 IN WITNESS WHEREOF, the Parties have executed this Non-competition Agreement on, and
effective as of, the date first set forth above. 
  

			
	TEEKAY CORPORATION 
		
	By:	 	 /s/ Peter Evensen

		 	Name: Peter Evensen
		 	Title: President and Chief Executive Officer

  

			
	Address for Notice:
	
	 Suite No. 1778

	 48 Par-la-Ville Road

	 Hamilton, HM 11 Bermuda

	 Telecopier: 441 292 3931

  

			
	TEEKAY TANKERS LTD.
		
	By:	 	 /s/ Bruce Chan

		 	Name: Bruce Chan
		 	Title: Chief Executive Officer

  

			
	 Address for Notice:

	
	 Suite No. 1778

	 48 Par-la-Ville Road

	 Hamilton, HM 11 Bermuda

	 Telecopier: 441 292 3931

 NON-COMPETITION AGREEMENT 

SIGNATURE PAGE 

 APPENDIX A 
 EXEMPT ASSETS 
  

					
	 VESSEL NAME
	  	 VESSEL TYPE
	  	 TEEKAY ENTITIES’ INTEREST

	Shenlong Spirit	  	Suezmax	  	100% owned by Teekay
	Tainlong Spirit	  	Suezmax	  	100% owned by Teekay
	Jiaolong Spirit	  	Suezmax	  	100% owned by Teekay
	Dilong Spirit	  	Suexmax	  	100% owned by Teekay
	Cape Bastia	  	Suezmax	  	In-chartered by Teekay until 25-Jun-12 (plus 3 one-year extension options)
	TH Symphony	  	Aframax	  	In-chartered by Teekay until 02-Jun-12
	Stavanger Prince	  	LR2	  	In-chartered by Teekay until 28-Jun-12
	Star Lady	  	Aframax	  	In-chartered by Teekay until 23-Jun-12
	Cape Bonny	  	Suezmax	  	In-chartered by Teekay until 17-Sep-12 (plus three one-year extension options)
	Orkney Spirit	  	Aframax	  	In-chartered by Teekay until 17-Feb-13
	Tandara Spirit	  	MR	  	In-chartered by Teekay until 28-Apr-13 (plus 2 one-year extension options)
	Bahamas Spirit	  	Aframax	  	In-chartered by Teekay until 31-Dec-13 (plus 1 three-year extension option)
	Kiowa Spirit	  	Aframax	  	In-chartered by Teekay until 31-Dec-13 (plus 1 three-year extension option)
	Koa Spirit	  	Aframax	  	In-chartered by Teekay until 31-Dec-13 (plus 1 three-year extension option)
	Sentinel Spirit	  	Aframax	  	In-chartered by Teekay until 14-Jan-18
	Constitution Spirit	  	Aframax	  	In-chartered by Teekay until 15-Jan-18
	Torben Spirit	  	Aframax	  	100% owned by Teekay Offshore Partners L.P.
	Gotland Spirit	  	Aframax	  	100% owned by Teekay Offshore Partners L.P.
	Poul Spirit	  	Aframax	  	100% owned by Teekay Offshore Partners L.P.
	Hamane Spirit	  	Aframax	  	100% owned by Teekay Offshore Partners L.P.
	Fuji Spirit	  	Aframax	  	100% owned by Teekay Offshore Partners L.P.
	SPT Explorer	  	Aframax	  	100% owned by Teekay Offshore Partners L.P.
	SPT Navigator	  	Aframax	  	100% owned by Teekay Offshore Partners L.P.
	Kilimanjaro Spirit	  	Aframax	  	100% owned by Teekay Offshore Partners L.P.
	Leyte Spirit	  	Aframax	  	100% owned by Teekay Offshore Partners L.P.
	Luzon Spirit	  	Aframax	  	100% owned by Teekay Offshore Partners L.P.
	Tenerife Spirit	  	Suezmax	  	Leased by Teekay LNG Partners L.P. with a purchase obligation
	Algeciras Spirit	  	Suezmax	  	Leased by Teekay LNG Partners L.P. with a purchase obligation
	Huelva Spirit	  	Suezmax	  	Leased by Teekay LNG Partners L.P. with a purchase obligation
	Teide Spirit	  	Suezmax	  	Leased by Teekay LNG Partners L.P. with a purchase obligation

  

NON-COMPETITION AGREEMENT 

APPENDIX A 

					
	Toledo Spirit	  	Suezmax	  	Leased by Teekay LNG Partners L.P. with a purchase obligation
	African Spirit	  	Suezmax	  	100% owned by Teekay LNG Partners L.P.
	European Spirit	  	Suezmax	  	100% owned by Teekay LNG Partners L.P.
	Asian Spirit	  	Suezmax	  	100% owned by Teekay LNG Partners L.P.
	Bermuda Spirit	  	Suezmax	  	100% owned by Teekay LNG Partners L.P.
	Hamilton Spirit	  	Suezmax	  	100% owned by Teekay LNG Partners L.P.
	Alexander Spirit	  	Product Tanker	  	100% owned by Teekay LNG Partners L.P.

 Chartered-in Conventional Tanker Assets set forth on this Appendix A shall be deemed Exempt Assets for the duration of
their existing time-charter-in contracts, including any extension options existing as of the date of the Non-competition Agreement. 
 For
Conventional Tanker Assets owned by Teekay LNG Partners L.P. or Teekay Offshore Partners L.P. and set forth on this Appendix A, any Replacement Assets for such vessels also shall be deemed Exempt Assets. “Replacement Assets” means any
Aframax or Suezmax oil tankers or Handymax product tanker, as applicable, that replaces any such comparable Conventional Tanker Asset set forth on this Appendix A upon (a) the actual or constructive total loss (or the agreed or compromised
total loss) of such Exempt Asset; (b) the destruction of such Exempt Asset; (c) the damage to such Exempt Asset to an extent as shall make repair thereof uneconomical or shall render such Exempt Asset permanently unfit for normal use
(other than obsolescence); or (d) the condemnation, confiscation, requisition, seizure, forfeiture or other taking of title to or use of such Exempt Asset that shall not be revoked within six months. 

Any Conventional Tanker Assets not owned by a Teekay Entity but managed by a Teekay Entity in any of the Gemini Suezmax Tanker Pool, the Teekay Aframax
Pool or the Taurus Product Tanker Pool, shall be deemed Exempt Assets. 

  

NON-COMPETITION AGREEMENT 

APPENDIX A

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