PermRock Royalty Trust (the "Trust") is a Delaware statutory trust formed on November 22, 2017 under the Delaware Statutory Trust Act pursuant to a trust agreement dated November 22, 2017, as amended and restated on May 4, 2018, by and among Boaz Energy II, LLC ("Boaz Energy"), as trustor, Simmons Bank, as Trustee (the "Trustee"), and Wilmington Trust, National Association, as Delaware Trustee (the "Delaware Trustee") (such amended and restated trust agreement, as amended to date, the "Trust Agreement"). The Trust's affairs are administered by the Trustee, which maintains its offices at 2200 West 7th Street, Suite 210, P.O. Box 470727 Fort Worth, Texas 76147.
The Trust was created to acquire and hold the Net Profits Interest for the benefit of the Trust unitholders pursuant to an agreement between Boaz Energy, the Trustee and the Delaware Trustee. The affairs of the Trust are managed by Simmons Bank, as Trustee. Boaz Energy has no ability to manage the operations of the Trust, and, to the fullest extent permitted by law, does not owe any fiduciary duties or liabilities to the Trust or the unitholders. In addition, Wilmington Trust, National Association is the Delaware Trustee of the Trust. The Delaware Trustee has only minimal rights and duties as are necessary to satisfy the requirements of the Delaware Statutory Trust Act.
In connection with the closing of the initial public offering of Trust units and pursuant to the Conveyance of Net Profits Interest (the "Conveyance") effective May 4, 2018, Boaz Energy conveyed the Net Profits Interest to the Trust in exchange for Trust units. The Net Profits Interest entitles the Trust to receive 80% of the net profits from the sale of oil and natural gas production from the Underlying Properties. A description of the Underlying Properties is included under Item 2. Properties. The Net Profits Interest is passive in nature and neither the Trust nor the Trustee has any control over, or responsibility for, costs relating to the operation of the Underlying Properties.