# EDGAR Filing Document

**Accession Number:** 0001936756
**File Stem:** 0001199835-25-000291
**Filing Date:** 2025-8
**Character Count:** 148243
**Document Hash:** fe8af3d693ecf9c485d43e05fd22d521
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001199835-25-000291.hdr.sgml**: 20250826

**ACCESSION NUMBER**: 0001199835-25-000291

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20250820

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Completion of Acquisition or Disposition of Assets

**ITEM INFORMATION**: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

**ITEM INFORMATION**: Unregistered Sales of Equity Securities

**ITEM INFORMATION**: Material Modifications to Rights of Security Holders

**ITEM INFORMATION**: Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250826

**DATE AS OF CHANGE**: 20250825

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Next Bridge Hydrocarbons, Inc.
- **CENTRAL INDEX KEY:** 0001936756
- **STANDARD INDUSTRIAL CLASSIFICATION:** CRUDE PETROLEUM & NATURAL GAS [1311]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 872538731
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56648
- **FILM NUMBER:** 251252520

**BUSINESS ADDRESS:**
- **STREET 1:** 500 W. TEXAS AVE.
- **STREET 2:** SUITE 890
- **CITY:** MIDLAND
- **STATE:** TX
- **ZIP:** 79701
- **BUSINESS PHONE:** 817-438-1937

**MAIL ADDRESS:**
- **STREET 1:** 500 W. TEXAS AVE.
- **STREET 2:** SUITE 890
- **CITY:** MIDLAND
- **STATE:** TX
- **ZIP:** 79701

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** OilCo Holdings, Inc.
- **DATE OF NAME CHANGE:** 20220706

?xml version='1.0' encoding='ASCII'?

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION** **Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **August 20, 2025**

**Next Bridge Hydrocarbons, Inc.** (Exact name of registrant as specified in its charter)

**Nevada** (State or other jurisdiction

of incorporation)

---

| | |
|:---|:---|
| **333-266143** | **87-2538731** |
| (Commission<br> File Number) | (IRS Employer<br> Identification No.) |
| **500 W. Texas Ave., Suite 890**<br> **Midland, TX**  | **79701** |
| (Address of principal executive offices) | (Zip Code) |

---

**(432) 684-0018** Registrant's telephone number, including area code

**Not applicable** (Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act: **None**

Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

□ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ⌧

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

**Item 1.01 Entry into a Material Definitive Agreement.**

On August 20, 2025, Next Bridge Hydrocarbons, Inc. (the "Company") entered into and closed a transaction with Panther Bridge, LLC, a Texas limited liability company ("Panther Bridge"), under which Panther Bridge loaned $6,000,000 to the Company. The transaction was effected through a Subscription Agreement that was entered into between the two parties, under which the Company sold to Panther Bridge an 18% Unsecured Promissory Note in the original principal amount of $6,000,000.00 (the "Promissory Note"), along with 3,000,000 shares of Series A Redeemable Preferred Stock, par value of $0.0001 per share (the "Preferred Stock"), and an Assignment of Net Profits Interest and Irrevocable Option to Convert to Working Interest from the ownership in the Panther Prospect of the Company (the "Assignment"). Panther Bridge is managed by Gregory McCabe, Jr., the son of the Company's Chairman and Chief Executive Officer, Gregory McCabe ("McCabe Sr."). Neither of the McCabes have any economic interest in Panther Bridge. Panther Bridge has multiple outside investors, none of which are considered related persons to the Company.

The Promissory Note bears interest at the rate of 18% per annum with one balloon payment of principal and interest being due and payable on the maturity date of August 20, 2026. The proceeds of the $6,000,000 loan are to be used to pay off the 12% Secured Promissory Note held by CAPCO Holding, Inc. in the principal amount of $2,000,000, to pay any obligations of the Company for the Panther Prospect, and for general corporate purposes. None of proceeds will be used for repayment of any debts owed to McCabe Sr. The Panther Prospect includes approximately 618 gross acres and 618 net acres of land situated in Acadia Parish, Louisiana. The Company has elected to participate as a non-operating working interest owner in the next well drilled on the Panther Prospect. As part of the loan transaction, the Company, Panther Bridge, and McCabe Sr. entered into a Subordination Agreement (the "Subordination Agreement") under which McCabe Sr. agreed to subordinate all of the Company's indebtedness and obligations owed to him to the indebtedness under the Promissory Note, under the terms and conditions of the Subordination Agreement.

The description of the Promissory Note and Subordination Agreement set forth herein does not purport to be complete and is qualified in its entirety by reference to the full text of such documents which are attached to this Current Report on Form 8-K as Exhibit 10.1 and Exhibit 10.2, respectively, and incorporated by reference herein.

Also as part of the loan transaction, the Company issued to Panther Bridge 3,000,000 shares of newly designated Series A Redeemable Preferred Stock. The designation, voting and other powers, preferences and relative, participating, optional or other rights of the shares of such series and the qualifications, limitations and restrictions of the Preferred Stock are set forth in a Certificate of Designations filed with the Secretary of State of Nevada. The holders of the Preferred Stock have no voting rights. At the Company's option, it may redeem the Preferred Stock, in whole or from time to time in part, on any business day after the date of issuance, at a per share redemption price equal to $1.00 plus all accrued and unpaid dividends on such share, if any. The Preferred Stock begins accruing dividends on the first anniversary of the issuance date, August 20, 2026, at the rate of 18% per annum of the per share redemption/liquidation price ($1.00 plus all unpaid dividends on such share). Additionally, there are restrictions on the Company declaring or making any distribution on common stock while there are any accrued and unpaid dividends owed to holders of Preferred Stock. Holders of the Preferred Stock also have certain rights upon liquidation, dissolution or winding up of the Company or upon a change or control of the Company. Specifically, in the event of any liquidation, dissolution or winding up, holders of the Preferred stock will have liquidation preference over holders of common stock.

The description of the Certificate of Designations of the Preferred Stock set forth herein does not purport to be complete and is qualified in its entirety by reference to the full text of the Certificate of Designations which is attached to this Current Report on Form 8-K as Exhibit 4.1 and incorporated by reference herein.

Also as part of the loan transaction, the Company granted to Panther Bridge an Assignment of Net Profits Interest and Irrevocable Option to Convert to Working Interest from the ownership in the Panther Prospect of the Company. Under the Assignment, the Company conveyed to Panther Bridge a 1/8th (12.50%) of 8/8ths Net Profits Interest (as defined below) in and to all the Company's interests in the oil, gas and mineral leases and any future wells drilled thereon as described in "Annex A" to the Assignment (which the Company refers to as the Panther Prospect). The Assignment defines "Net Profits Interest" as the gross proceeds actually received by the Company from the sale of oil, gas, and other hydrocarbons produced and saved from the subject leases, less certain allowable costs, including actual and reasonable costs, expenses, and charges attributable to the subject leases that fall into certain categories (as further set forth in the Assignment). Panther Bridge also has the irrevocable one-time option, at any time, to convert any portion of the Net Profits Interest conveyed under the Assignment from a net profits interest to an undivided working interest of equal percentage to the amount of the Net Profits Interest converted, in the properties described in the Assignment.

The description of the Assignment of Net Profits Interest and Irrevocable Option to Convert to Working Interest set forth herein does not purport to be complete and is qualified in its entirety by reference to the full text of the Assignment which is attached to this Current Report on Form 8-K as Exhibit 10.3 and incorporated by reference herein.

**Item 2.01 Completion of Acquisition or Disposition of Assets.**

To the extent required by Item 2.01 of Form 8-K, the information contained in Item 1.01 relating to the assignment of net profit interest in the Panther Prospect of this Current Report on Form 8-K is incorporated by reference herein.

**Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.**

To the extent required by Item 2.03 of Form 8-K, the information relating to the $6,000,000 loan from Panther Bridge to the Company contained in Item 1.01 of this Current Report on Form 8-K is incorporated by reference herein.

**Item 3.02 Unregistered Sales of Equity Securities.**

To the extent required by Item 3.02 of Form 8-K, the information relating to the offer and sale of the Preferred Stock contained in Item 1.01 of this Current Report on Form 8-K is incorporated by reference herein.

The offer and sale of the shares of Preferred Stock to Panther Bridge pursuant to the Subscription Agreement was not registered under the Securities Act of 1933, as amended (the "Securities Act"). The Preferred Stock was issued in reliance on the exemptions from the registration requirements of the Securities Act contained in Section 4(a)(2) of the Securities Act and the rules and regulations promulgated thereunder. The subject issuance of securities does not involve a "public offering" based upon the following factors: (i) the issuance of the securities is an isolated private transaction; (ii) a limited number of securities were issued to a single purchaser; (iii) there were no public solicitations; (iv) the purchaser has represented that it is an accredited investor (as the term is defined in Rule 501(a) of Regulation D under the Securities Act); (v) the investment intent of the purchaser; and (vi) the restriction on transferability of the securities to be issued.

**Item 3.03 Material Modification to Rights of Security Holders.**

To the extent required by Item 3.03 of Form 8-K, the information relating to the designation and issuance of the Preferred Stock in Item 1.01 of this Current Report on Form 8-K is incorporated by reference herein.

**Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.**

To the extent required by Item 5.03 of Form 8-K, the information relating to the designation and issuance of the Preferred Stock in Item 1.01 of this Current Report on Form 8-K is incorporated by reference herein.

***Cautionary Note Regarding Forward-Looking Statements***

This Current Report on Form 8-K contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company advises caution in reliance on forward-looking statements. Forward-looking statements include, without limitation, the Company's plans and estimates related to the Restatements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by forward-looking statements, including the outcome of the transactions described above with Panther Bridge. See the risk factors set forth in the Company's periodic filings with the SEC, including, but not limited to, those risks and uncertainties listed in the section entitled "Risk Factors," in the Company's 2023 Annual Report on Form 10-K filed with the SEC. All forward-looking statements in this Current Report on Form 8-K are based on information available to the Company as of the date of this filing. The Company expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

**Item 9.01. Financial Statements and Exhibits.**

*(d) Exhibits.*

---

| | |
|:---|:---|
| Exhibit | Description |
| [Exhibit 4.1](nbh-ex4_1.htm) | [Certificate of Designations of Series A Redeemable Preferred Stock](nbh-ex4_1.htm) |
| [Exhibit 10.1](nbh-ex10_1.htm) | [18% Unsecured Promissory Note for $6,000,000](nbh-ex10_1.htm) |
| [Exhibit 10.2](nbh-ex10_2.htm) | [Subordination Agreement](nbh-ex10_2.htm) |
| [Exhibit 10.3](nbh-ex10_3.htm) | [Assignment of Net Profits Interest and Irrevocable Option to Convert to Working Interest](nbh-ex10_3.htm) |
| Exhibit 104 | Cover Page Interactive Data File (embedded within Inline XBRL document). |

---

**<u>SIGNATURES</u>**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  | NEXT BRIDGE HYDROCARBONS, INC. | NEXT BRIDGE HYDROCARBONS, INC. | NEXT BRIDGE HYDROCARBONS, INC. |
| Date: August 25, 2025 | By: | /s/ Gregory McCabe | /s/ Gregory McCabe |
|  |  | Name: | Gregory McCabe |
|  |  | Title: | Chairman and Chief Executive Officer |

---

## Exhibit 4.1

**Exhibit 4.1**

**CERTIFICATE OF DESIGNATIONS**

**OF**

**SERIES A REDEEMABLE PREFERRED STOCK**

**OF**

**Next Bridge Hydrocarbons, Inc.**

Next Bridge Hydrocarbons, Inc., a corporation organized and existing under the laws of the State of Nevada (the "<u>Corporation</u>"), does hereby certify that, pursuant to the authority contained in the Corporation's Articles of Incorporation (as amended from time to time to time, the "<u>Articles of Incorporation</u>") and pursuant to Section 78.1955 of the Nevada Revised Statutes (the "<u>NRS</u>"), and in accordance with the provisions of the resolution creating a series of the class of the Corporation's authorized Preferred Stock designated as Series A Redeemable Preferred Stock as follows:

FIRST: The Articles of Incorporation authorize the issuance by the Corporation of 50,000,000 shares of preferred stock, par value $0.0001 per share (the "<u>Preferred Stock</u>"), and, further, authorize the Board of Directors of the Corporation, by resolution or resolutions, at any time and from time to time, to divide and establish any or all of the unissued shares of Preferred Stock not then allocated to any series into one or more series and, without limiting the generality of the foregoing, to fix and determine the designation of each such share, the number of shares which constitute such series and certain preferences, limitations and relative rights of the shares of each series so established.

SECOND: By Unanimous Written Consent of the Board of Directors on August 20, 2025, the Board of Directors designated 3,000,000 shares of Preferred Stock as Series A Redeemable Preferred Stock, par value $0.0001 per share, pursuant to a resolution providing that a series of Preferred Stock of the Corporation be and hereby is created, and that the designation and number of shares thereof and the voting and other powers, preferences and relative, participating, optional or other rights of the shares of such series and the qualifications, limitations and restrictions thereof are as follows:

SERIES A REDEEMABLE PREFERRED STOCK

1. <u>Designation and Amount</u>. The designation of the series of Preferred Stock authorized hereby is Series A Redeemable Preferred Stock (the "<u>Series A Preferred Stock</u>"). The total number of the authorized and unissued shares of the Preferred Stock designated as the Series A Preferred Stock initially shall be 3,000,000.

2. <u>Certain Definitions</u>. For purposes of this Certificate of Designations, the following terms shall have the meanings ascribed below:

"<u>Affiliated Persons</u>" shall mean, with respect to any specified Person, (a) such specified Person's parents, spouse, siblings, descendants (including adoptees), stepchildren, step-grandchildren, nieces and nephews and their respective spouses, (b) the estate, legatees and devisees of such specified Person and each of the Persons referred to in clause (a) of this definition, and in the event of the incompetence or death of any of such specified Person or the persons described in clause (a), such person's executor, administrator, committee or other personal representative or similar fiduciary, (c) any trusts or private foundations created primarily for the benefit of, or controlled at the time of creation by, any of the persons described in the above clause (a) or (b) of this definition, or any trusts or private foundations created primarily for the benefit of any such trust or private foundation or for charitable purposes, and (d) any company, partnership, or other entity or investment vehicle Controlled by any of the Persons referred to in clause (a), (b) or (c) of this definition or the holdings of which are for the primary benefit of any of such Persons.

"<u>Articles of Incorporation</u>" shall have the meaning set forth in the Preamble of this Certificate of Designations.

"<u>Beneficial Ownership</u>" or "<u>Beneficially Owned</u>" shall mean, with respect to any securities, beneficial ownership of such securities as determined pursuant to Rule 13d-3 under the Exchange Act.

"<u>Board of Directors</u>" or "<u>Board</u>" shall mean the Board of Directors of the Corporation and, unless the context indicates otherwise, also shall mean, to the extent permitted by law, any committee thereof authorized to exercise the power of the Board of Directors of the Corporation with respect to a particular matter.

"<u>Business Day</u>" shall mean any weekday that is not a day on which banking institutions in the State of Texas are authorized or required by law, regulation or executive order to be closed.

"<u>Capital Stock</u>" shall mean any and all shares of capital stock of the Corporation.

"<u>Certificate of Designations</u>" shall mean this Certificate of Designations of Series A Redeemable Preferred Stock of the Corporation, as it may be amended from time to time.

"<u>Change in Control Transaction</u>" shall mean the acquisition of Beneficial Ownership by any Person or group (excluding any Permitted Holder or any group Controlled by any Permitted Holder) of more than 50% of the aggregate Voting Power of all outstanding classes or series of Capital Stock. For purposes of the definition of "Change in Control Transaction", "Person" and "group" have the meanings given to them for purposes of Section 13(d) and 14(d) of the Exchange Act or any successor provisions, and the term "group" includes any group acting for the purpose of acquiring, holding or disposing of securities within the meaning of Rule 13d-5(b)(1) under the Exchange Act, or any successor provision.

"<u>Change in Control Transaction Redemption</u>" shall have the meaning set forth in <u>Section 7(a)</u> of this Certificate of Designations.

"<u>Change in Control Transaction Redemption Date</u>" shall mean the date determined by the Board of Directors, which shall be a Business Day and shall be no less than ten (10) calendar days after the date on which the Corporation provides an Offer of Redemption; provided, that, if the Offer of Redemption is provided prior to the consummation of such Change in Control Transaction, such date shall be no sooner than the date of consummation of such Change in Control Transaction.

"<u>Close of Business</u>" shall mean 5:00 p.m., Midland, Texas time.

"<u>Common Stock</u>" shall mean any class or series of common stock of the Corporation, now existing or hereafter authorized and issued.

"<u>Control</u>" shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise Voting Power, by contract or otherwise. The terms "<u>Controlling</u>" and "<u>Controlled</u>" have meanings correlative thereto.

"<u>Corporation</u>" shall have the meaning set forth in the Preamble of this Certificate of Designations.

"<u>Debt Instrument</u>" shall mean any note, bond, debenture, indenture, guarantee or other instrument or agreement evidencing any Indebtedness, whether existing at the effective time of this Certificate of Designations or thereafter created, incurred, assumed or guaranteed.

"<u>Dissenters' Rights Statute</u>" shall have the meaning set forth in <u>Section 7(c)</u> of this Certificate of Designations.

"<u>Dividend Amount</u>" shall mean, for any Dividend Payment Date, the amount accrued and payable by the Corporation as a dividend per share of Series A Preferred Stock, as determined pursuant to <u>Section 3(a)</u> of this Certificate of Designations.

"<u>Dividend Payment Date</u>" shall mean February 20, May 20, August 20 and November 20 of each year, commencing with November 20, 2026.

"<u>Dividend Period</u>" shall mean the period from and including the first anniversary of the Original Issuance Date to (but not including) the first Dividend Payment Date and thereafter each three (3) month period from and including the Dividend Payment Date for the preceding Dividend Period to (but not including) the Dividend Payment Date for such Dividend Period.

"<u>Dividend Rate</u>" shall mean the dividend rate accruing on the Series A Preferred Stock, as applicable from time to time pursuant to this Certificate of Designations.

"<u>Equity Interest</u>" shall mean (a) a share of corporate stock, a partnership interest, a membership interest in a limited liability company, and other equivalents of or interests in (however designated, other than debt) equity or ownership and (b) all warrants, options or other rights to acquire any Equity Interest set forth in clause (a) of this defined term (but excluding any debt security that is convertible into, or exchangeable for, any such Equity Interest).

"<u>Exchange Act</u>" shall mean the Securities Exchange Act of 1934, as amended.

"<u>Holder</u>" shall mean each Person in whose name shares of Series A Preferred Stock are registered on the stock register of the Corporation, who shall be treated by the Corporation, or if the Corporation is not the Transfer Agent, the Transfer Agent, as the record owner of those shares of Series A Preferred Stock for the purpose of making payment and for all other purposes.

"<u>Indebtedness</u>" shall mean (i) any liability, contingent or otherwise, of the Corporation or any Subsidiary (x) for borrowed money (whether or not the recourse of the lender is to the whole of the assets of the Corporation or any Subsidiary or only to a portion thereof), (y) evidenced by a note, debenture or similar instrument (including a purchase money obligation) given other than in connection with the acquisition of inventory or similar property in the ordinary course of business, or (z) for the payment of money relating to indebtedness represented by obligations under a lease that is required to be capitalized for financial accounting purposes in accordance with generally accepted accounting principles; (ii) any liability of others described in the preceding clause (i) which the Corporation or any Subsidiary has guaranteed or which is otherwise its legal liability; (iii) any obligations secured by any mortgage, pledge, lien, encumbrance, charge or adverse claim affecting title or resulting in an encumbrance against any real or personal property, or a security interest of any kind (including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction) to which the property or assets of the Corporation or any Subsidiary are subject whether or not the obligations secured thereby shall have been assumed by or shall otherwise be the Corporation's or any Subsidiary's legal liability; and (iv) any amendment, renewal, extension or refunding of any liability of the types referred to in clause (i), (ii) or (iii) above.

"<u>Junior Stock</u>" shall mean the Common Stock and any other class or series of Capital Stock authorized and issued after the Original Issuance Date, in accordance with the Articles of Incorporation, other than the Series A Preferred Stock, any class or series of Parity Stock and any class or series of Senior Stock.

"<u>Liquidation Dividend Amount</u>" shall have the meaning set forth in <u>Section 4</u> of this Certificate of Designations.

"<u>Liquidation Event</u>" shall have the meaning set forth in <u>Section 4</u> of this Certificate of Designations.

"<u>Liquidation Price</u>" measured per share of the Series A Preferred Stock as of any date of determination shall mean the sum of (i) $1.00 *plus* (ii) an amount equal to all unpaid dividends (whether or not declared) accrued from (and including) the immediately preceding Dividend Payment Date with respect to such share that have been added to and then remain part of the Liquidation Price as of such date.

"<u>Mirror Preferred Stock</u>" shall have the meaning set forth in <u>Section 6(a)</u> of this Certificate of Designations.

"<u>Notice of Redemption</u>" shall have the meaning set forth in <u>Section 5(d)</u> of this Certificate of Designations.

"<u>NRS</u>" shall have the meaning set forth in the Preamble of this Certificate of Designations.

"<u>Offer of Redemption</u>" shall have the meaning set forth in <u>Section 7(a)</u> of this Certificate of Designations.

"<u>Optional Redemption</u>" shall have the meaning set forth in <u>Section 5(a)</u> of this Certificate of Designations.

"<u>Optional Redemption Date</u>" shall mean (i) the date as determined by the Board of Directors, which shall be a Business Day and shall be no less than ten (10) calendar days after the date on which the Corporation provides a Notice of Redemption and (ii) if any shares of Series A Preferred Stock selected for redemption remain outstanding following such date, any date thereafter on which shares of Series A Preferred Stock are redeemed pursuant to <u>Section 5</u> of this Certificate of Designations.

"<u>Optional Redemption Price</u>" shall mean, with respect to each share of Series A Preferred Stock to be redeemed, the sum of (i) $1.00 *plus* (ii) all unpaid dividends (whether or not declared) on such share accrued from (and including) the immediately preceding Dividend Payment Date to (but not including) the Optional Redemption Date.

"<u>Original Issuance Date</u>" shall mean, with respect to the shares of Series A Preferred Stock, the date on which shares of Series A Preferred Stock are first issued.

"<u>Parity Stock</u>" shall mean any class or series of Capital Stock authorized and issued after the Original Issuance Date in accordance with the Articles of Incorporation that expressly ranks on a parity basis with the Series A Preferred Stock as to the dividend rights, rights of redemption or rights on the distribution of assets on any Liquidation Event.

"<u>Permitted Actions</u>" shall mean (i) purchases, redemptions or other acquisitions of shares of Junior Stock, in the ordinary course in connection with any employment contract, compensation plan, benefit plan or other similar arrangement with or for the benefit of any current or former employees, officers, directors or consultants (including the forfeiture of unvested shares of restricted Junior Stock or share withholding or other acquisitions or surrender of shares of Junior Stock to which the holder may otherwise be entitled upon exercise, delivery or vesting of equity awards (whether in payment of applicable taxes, the exercise price or otherwise)); (ii) purchases of shares of Junior Stock pursuant to a contractually binding requirement to buy stock, or under a stock repurchase plan, <u>provided</u> that such contract or plan was entered into prior to the first Dividend Payment Date upon which the Corporation has failed to pay all dividends then payable on the Series A Preferred Stock in cash (it being understood that once the Corporation regains compliance with its cash dividend obligations on the Series A Preferred Stock by paying in cash all Dividend Amounts that have previously been added to the Liquidation Price, this proviso shall cease to apply until such time as the Corporation subsequently fails to pay all Dividend Amounts due in cash); (iii) exchanges or conversions of shares of any class or series of Junior Stock for any other class or series of Junior Stock; (iv) the purchase or deemed acquisition of fractional interests in shares of Junior Stock or Parity Stock pursuant to the conversion or exchange provisions of such Junior Stock, Parity Stock or the security being converted or exchanged, as applicable; (v) dividends or distributions of Junior Stock or rights to purchase Junior Stock (including in connection with a stockholders' rights plan); (vi) any redemption, repurchase, or exchange of rights pursuant to any stockholders' rights plan; (vii) the acquisition by the Corporation or any of its Subsidiaries of record ownership in Junior Stock or Parity Stock for the Beneficial Ownership of any other persons (other than the Corporation or any of its Subsidiaries), including as trustees or custodians; (viii) direct or indirect distributions of Equity Interests or assets of a Subsidiary or other Person (whether by redemption, dividend, share distribution, merger or otherwise) to all or substantially all of the holders of one or more classes or series of issued and outstanding Common Stock, on a pro rata basis with respect to each such class or series (other than with respect to the payment of cash in lieu of fractional shares), or such Equity Interests of such Subsidiary or other Person are available to be acquired by such holders of one more classes or series of Common Stock (including through any rights offering, exchange offer, conversion, exercise of subscription rights or other offer made available to such holders), on a pro rata basis with respect to each such class or series (other than with respect to the payment of cash in lieu of fractional shares), whether voluntary or involuntary (<u>provided</u>, that the assets or properties directly or indirectly being so distributed do not constitute all or substantially all of the assets of the Corporation as of the record date applicable to such distribution); (ix) stock splits, stock dividends or other distributions, reclassifications, recapitalizations; and (x) the payment of cash in lieu of fractional shares with respect to any of the foregoing.

"<u>Permitted Holders</u>" means any one or more of (a) Panther Bridge LLC, (b) each of the Affiliated Persons of the Person referred to in clause (a), (c) any group consisting solely of persons described in clauses (a) and (b). For purposes of the definition of "Permitted Holders", "Person" and "group" have the meanings given to them for purposes of Section 13(d) and 14(d) of the Exchange Act or any successor provisions, and the term "group" includes any group acting for the purpose of acquiring, holding or disposing of securities within the meaning of Rule 13d-5(b)(1) under the Exchange Act, or any successor provision.

"<u>Person</u>" shall mean any natural person, corporation, company, limited liability company, general or limited partnership, trust, estate, proprietorship, joint venture, association, organization or other entity.

"<u>Preferred Stock</u>" shall have the meaning set forth in the Recitals of this Certificate of Designations.

"<u>Record Date</u>" for the dividends payable on any Dividend Payment Date shall mean the date fifteen (15) calendar days immediately preceding such Dividend Payment Date; <u>provided</u>, that if such date is not a Business Day, the Record Date shall be the next succeeding Business Day after such date.

"<u>Record Holder</u>" means a Holder of record of the Series A Preferred Stock as such Holder appears on the stock register of the Corporation at the Close of Business on the Record Date with respect to a Dividend Payment Date or on the Special Record Date, as applicable.

"<u>Redemption Acceptance Deadline</u>" shall have the meaning set forth in <u>Section 7(a)</u> of this Certificate of Designations.

"<u>Redemption Date</u>" shall mean the Scheduled Redemption Date or the Optional Redemption Date, as applicable.

"<u>Redemption Election Notice</u>" shall have the meaning set forth in <u>Section 7(a)</u> of this Certificate of Designations.

"<u>Redemption Price</u>" shall mean the Optional Redemption Price, as applicable.

"<u>Senior Stock</u>" shall mean any class or series of Capital Stock that ranks senior to the Series A Preferred Stock or has preference or priority over the Series A Preferred Stock as to dividend rights, rights of redemption or rights on the distribution of assets on any Liquidation Event.

"<u>Series A Preferred Stock</u>" shall have the meaning set forth in <u>Section 1</u> of this Certificate of Designations.

"<u>Subscription Agreement</u>" shall mean that certain Subscription Agreement, dated August 20, 2025, by and among Panther Bridge LLC, a Texas limited liability company, and the Corporation.

"<u>Special Record Date</u>" shall have the meaning set forth in <u>Section 3(c)</u> of this Certificate of Designations.

"<u>Stated Rate</u>" shall mean 18% per annum of the Liquidation Price of each share of Series A Preferred Stock.

"<u>Subsidiary</u>" shall mean any corporate or other entity for which a Person owns, directly or indirectly, an amount of the voting securities, other voting rights or voting partnership interests of which is sufficient to elect at least a majority of its board of directors or other governing body (or, if there are no such voting interests, more than 50% of the Equity Interests of such corporate or other entity).

"<u>Transfer</u>" shall mean, directly or indirectly, the sale, transfer, assignment, pledge, encumbrance, hypothecation or other disposition of or transfer (by operation of law or otherwise), either voluntarily or involuntarily, or entry into any contract, option or other arrangement, agreement or understanding with respect to the sale, transfer, assignment, pledge, encumbrance, hypothecation or other disposition or transfer (by operation of law or otherwise), of any shares of Series A Preferred Stock.

"<u>Transfer Agent</u>" shall mean the Corporation or such other Person as the Corporation may appoint, acting as Transfer Agent, registrar and paying agent for the Series A Preferred Stock.

"<u>Voting Power</u>" shall mean the total number of votes of the outstanding Voting Stock of any Person.

"<u>Voting Stock</u>" shall mean with respect to any Person other than the Corporation, any shares of capital stock or interests of such Person having the right to vote generally in any election of directors of the board of directors of such Person or other similar governing body.

3. <u>Dividends</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the prior preferences and other rights of any Senior Stock, the Holders of outstanding shares of Series A Preferred Stock shall be entitled to receive preferential dividends that shall accrue and cumulate as provided herein. Dividends on each outstanding share of Series A Preferred Stock shall accrue on a daily basis at the Dividend Rate equal to the Stated Rate from (and including) the first anniversary of the Original Issuance Date to (but not including) the date on which the Liquidation Price or Redemption Price of such share is paid pursuant to <u>Section 4</u> or <u>Section 5</u> of this Certificate of Designations, as applicable, whether or not such dividends have been declared and whether or not there are any funds of the Corporation legally available for the payment of dividends, and such dividends shall be cumulative. If declared, accrued dividends on the Series A Preferred Stock shall be payable, in accordance with the terms and conditions set forth in this Certificate of Designations, quarterly on each Dividend Payment Date, to the Record Holders of shares of Series A Preferred Stock as of the Close of Business on the applicable Record Date; <u>provided</u>, <u>however</u>, if any such Dividend Payment Date is not a Business Day, then payment of any dividend otherwise payable on that date will be made on the next succeeding day that is a Business Day, without any interest or other payment in respect of such delay. For purposes of determining the amount of dividends "accrued" (i) as of any date that is not a Dividend Payment Date, such amount shall be calculated on the basis of the applicable rate per annum for actual days elapsed from (and including) the last preceding Dividend Payment Date (or in the event the first Dividend Payment Date has not yet occurred, the first anniversary of the Original Issuance Date) to (but not including) the date as of which such determination is to be made, based on a 365-day year, (ii) as of any Dividend Payment Date (other than the first Dividend Payment Date), such amount shall be calculated on the basis of the applicable rate per annum for actual days elapsed from (and including) the last preceding Dividend Payment Date to (but not including) such Dividend Payment Date, based on a 360-day year of twelve 30-day months, and (iii) as of the first Dividend Payment Date, such amount shall be calculated on the basis of the applicable rate per annum for actual days elapsed from (and including) the first anniversary of the Original Issuance Date to (but not including) such Dividend Payment Date, based on a 365-day year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [Omitted].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent the Dividend Amount is not paid in cash in full on a Dividend Payment Date for any reason and such dividend nonpayment is not cured within thirty (30) calendar days of such Dividend Payment Date, all dividends (whether or not declared) that have accrued on a share of Series A Preferred Stock during the Dividend Period ending on the day immediately preceding such Dividend Payment Date and which are unpaid will be added to the Liquidation Price of such share as of such Dividend Payment Date and will remain a part thereof until such dividends are paid, together with all dividends that have accrued to (but not including) the date of such payment with respect to that portion of the Liquidation Price which consists of accrued and unpaid dividends, which shall be deemed to satisfy the Corporation's obligation to pay the Dividend Amount under <u>Section 3(a)</u> of this Certificate of Designations. Such accrued and unpaid dividends, together with all unpaid dividends accrued thereon, may be declared and paid at any time (subject to the concurrent satisfaction of any dividend arrearages then existing with respect to any Parity Stock), without reference to any regular Dividend Payment Date, to Record Holders as of the Close of Business on such date, not more than sixty (60) calendar days preceding the payment date thereof, as may be fixed by the Board of Directors (the "<u>Special Record Date</u>"). Notice of each Special Record Date shall be mailed, first class, postage prepaid, to the Holders at their respective addresses as the same appear on the books of the Corporation (which may include the records of the Transfer Agent) or are supplied by them in writing to the Corporation for the purpose of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [Omitted].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) So long as any shares of Series A Preferred Stock shall be outstanding, the Corporation shall not declare or pay any dividend whatsoever with respect to any Junior Stock or any Parity Stock, whether in cash, property or otherwise, nor shall the Corporation declare or make any distribution on any Junior Stock or any Parity Stock, or set aside any cash or property for any such purposes, nor shall any Junior Stock or Parity Stock be purchased, redeemed or otherwise acquired by the Corporation or any of its Subsidiaries, nor shall any monies be paid, set aside for payment or made available for a sinking fund for the purchase or redemption of any Junior Stock or Parity Stock, unless and until (i) all accrued and unpaid dividends (whether or not declared) that pursuant to <u>Section 3(c)</u> of this Certificate of Designations have been added to and then remain part of the Liquidation Price as of the date of such payment, together with all dividends that have accrued to (but not including) the date of such payment with respect to that portion of the Liquidation Price which consists of accrued and unpaid dividends, shall have been paid or declared and the consideration sufficient for the payment thereof set aside so as to be available for the payment thereof and (ii) the Corporation shall have paid, in full, or set aside the consideration sufficient for the payment thereof, all redemption payments with respect to the Series A Preferred Stock that it is then obligated to pay as of such time; <u>provided</u>, <u>however</u>, that nothing contained in this <u>Section 3(e)</u> of this Certificate of Designations shall prevent the Corporation from taking any Permitted Actions. Subject to and except as would be prohibited by this <u>Section 3(e)</u> of the Certificate of Designations and not otherwise, such dividends as may be determined by the Board of Directors, or an authorized committee thereof, may be declared and paid (payable in cash, securities or other property) on any securities, including Junior Stock, from time to time out of any funds legally available for such payment, and Holders of Series A Preferred Stock shall not be entitled to participate in any such dividends.

4. <u>Distributions Upon Liquidation, Dissolution or Winding Up</u>. Subject to the prior payment in full of any Debt Instrument and other liabilities owed to the Corporation's creditors and the preferential amounts to which any Senior Stock is entitled, in the event of any liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary (a "<u>Liquidation Event</u>"), the Holders of shares of the Series A Preferred Stock shall be entitled to receive from the assets of the Corporation available for distribution to the stockholders, before any payment or distribution shall be made to the holders of any Junior Stock, an amount in property or cash or a combination thereof, as determined by the Board of Directors in good faith, per share, equal to the Liquidation Price *plus* all unpaid dividends (whether or not declared) accrued to, but excluding, the date of distribution of amounts payable to Holders of Series A Preferred Stock in connection with such Liquidation Event since (and including) the immediately preceding Dividend Payment Date (or, if such date of distribution occurs prior to the first Dividend Payment Date, since (and including) the first anniversary of the Original Issuance Date) (the "<u>Liquidation Dividend Amount</u>"), which payment shall be made *pari passu* with any such payment made to the holders of any Parity Stock. The Holders of shares of Series A Preferred Stock shall be entitled to no other or further distribution of or participation in any remaining assets of the Corporation after receiving in full the amount set forth in the immediately preceding sentence. Notwithstanding anything herein to the contrary, if, upon distribution of the Corporation's assets in a Liquidation Event, the assets of the Corporation to be distributed among the Holders of shares of Series A Preferred Stock and to all holders of any Parity Stock shall be insufficient to permit payment in full (a) to Holders of shares of Series A Preferred Stock, the Liquidation Price and the Liquidation Dividend Amount and (b) to holders of any Parity Stock, any preferential amounts to which they are entitled, then the entire assets of the Corporation to be distributed to Holders of shares of Series A Preferred Stock and holders of such Parity Stock shall be distributed *pro rata* to such holders based upon the aggregate of the full preferential amounts to which the shares of Series A Preferred Stock and such Parity Stock would otherwise respectively be entitled. Neither the consolidation or merger of the Corporation with or into any other Person nor the sale, transfer or lease of all or substantially all the assets of the Corporation shall itself be deemed to be a Liquidation Event within the meaning of this <u>Section 4</u> of this Certificate of Designations.

5. <u>Redemption</u>. The Corporation shall not redeem any shares of Series A Preferred Stock except as expressly authorized in this Certificate of Designations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Optional Redemption</u>. Notwithstanding anything in this Certificate of Designations to the contrary, shares of Series A Preferred Stock may be redeemed out of funds legally available therefor, at the option of the Corporation by action of the Board of Directors, in whole or from time to time in part, on any Business Day occurring on or after the Original Issuance Date, at the applicable Optional Redemption Price per share in cash on the Optional Redemption Date (the "<u>Optional Redemption</u>"). In the event less than all the outstanding shares of Series A Preferred Stock are to be redeemed in such Optional Redemption, then the shares of Series A Preferred Stock to be redeemed in accordance with this <u>Section 5(a)</u> shall be redeemed *pro rata* (as nearly as practical without creating fractional shares) or by any other equitable method the Board of Directors in its discretion shall choose from among the Holders of the outstanding shares of Series A Preferred Stock. For the avoidance of doubt, any shares of Series A Preferred Stock that remain outstanding after the Optional Redemption Date shall continue to accrue dividends in accordance with the provisions in <u>Section 3</u> of this Certificate of Designations for so long as such shares remain outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [Omitted].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [Omitted].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notice of Redemption</u>. The Corporation shall mail notice of any redemption in accordance with this Certificate of Designations to each Holder (such notice, a "<u>Notice of Redemption</u>") in accordance with <u>Section 15</u> of this Certificate of Designations, not later than ten (10) calendar days prior to the Redemption Date. Such Notice of Redemption shall contain: (A) the number of shares of Series A Preferred Stock that the Corporation shall redeem on the Redemption Date specified in the Notice of Redemption, (B) the Redemption Price, (C) the Redemption Date, (D) the instructions a Holder must follow with respect to the redemption and (E) any other matters required by law. Solely with respect to an Optional Redemption, a Notice of Redemption may, at the Corporation's discretion, be subject to one or more conditions precedent. If such Optional Redemption is subject to satisfaction of one or more conditions precedent, such Notice of Redemption shall describe each such condition and, if applicable, shall state that, in the Corporation's discretion, the Optional Redemption Date may be delayed until such time as any or all of such conditions shall be satisfied (or waived by the Corporation in its sole discretion), or such Optional Redemption may not occur and such Notice of Redemption may be rescinded in the event that any or all such conditions shall not have been satisfied (or waived by the Corporation in its sole discretion) by the Optional Redemption Date as stated in such Notice of Redemption, or by the Optional Redemption Date as so delayed. Neither the failure to mail any notice required by this paragraph, nor any defect in such notice or in the mailing thereof to any particular Holder or Holders, shall affect the sufficiency of the notice or the validity of the proceedings for the redemption of any shares of the Series A Preferred Stock pursuant to this Certificate of Designations with respect to such Holder or any other Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Deposit of Redemption Price</u>. If the Notice of Redemption shall have been given as provided in <u>Section 5(d)</u> of this Certificate of Designations, and if on or before the Redemption Date specified in such Notice of Redemption, the consideration necessary for such redemption shall have been set aside so as to be available therefor and only therefor, then on and after the Close of Business on the Redemption Date, the shares of Series A Preferred Stock called for redemption shall automatically be redeemed and no longer be deemed outstanding, and all rights with respect to such shares shall forthwith cease and terminate, except the right of the Holders thereof to receive, subject to the procedures contained in the Notice of Redemption, the consideration payable upon redemption thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Status of Redeemed Shares</u>. Any shares of Series A Preferred Stock that are redeemed, purchased or otherwise acquired by the Corporation shall be retired and shall be restored to the status of authorized and unissued shares of Preferred Stock and may be reissued as part of another series of the Preferred Stock, but such shares shall not be reissued as Series A Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Certain Restrictions</u>. If and so long as the Corporation shall fail to redeem on the Redemption Date all shares of Series A Preferred Stock required to be redeemed on such date, the Corporation shall not redeem, or discharge any sinking fund obligation with respect to, any Parity Stock or Junior Stock, and shall not purchase or otherwise acquire any additional shares of Series A Preferred Stock, Parity Stock or Junior Stock, unless and until all then outstanding shares of Series A Preferred Stock that were not previously redeemed as required are redeemed pursuant to the terms hereof. Nothing contained in this <u>Section 5(g)</u> of this Certificate of Designations shall prevent (i) the purchase or acquisition by the Corporation of shares of Series A Preferred Stock and Parity Stock pursuant to a purchase or exchange offer or offers made to Holders of all outstanding shares of Series A Preferred Stock and Parity Stock, <u>provided</u> that (A) as to Holders of all outstanding shares of Series A Preferred Stock, the terms of the purchase or exchange offer for all such shares are identical, (B) as to holders of all outstanding shares of a particular series or class of Parity Stock, the terms of the purchase or exchange offer for all such shares are identical, and (C) as among Holders of all outstanding shares of Series A Preferred Stock and holders of all outstanding shares of any and all Parity Stock, the terms of each purchase or exchange offer or offers are substantially identical relative to the liquidation price of the shares of Series A Preferred Stock and each series or class of Parity Stock, (ii) the purchase or acquisition by the Corporation of shares of Series A Preferred Stock, Parity Stock or Junior Stock in exchange for (together with a cash adjustment for fractional shares, if any), or through the application of the proceeds of the sale of, shares of Junior Stock, or (iii) the redemption, purchase or other acquisition of Junior Stock solely in exchange for shares of Junior Stock.

6. <u>Protective Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For so long as any shares of Series A Preferred Stock shall remain outstanding, the Corporation shall not, without the written consent or affirmative vote of the Holders of at least a majority of the then outstanding shares of Series A Preferred Stock, given in writing or by vote at a meeting, consenting or voting (as the case may be) separately as a series, (i) amend, alter or repeal any provision of this Certificate of Designations, whether by merger, share exchange, consolidation or otherwise (except for any transaction contemplated by <u>Section 7</u> of this Certificate of Designations, in which case no vote of the Holders of shares of Series A Preferred Stock shall be required under this <u>Section 6</u> of this Certificate of Designations), in a manner that adversely affects the powers, preferences or rights of the Series A Preferred Stock set forth in this Certificate of Designations, unless in each such case each share of Series A Preferred Stock (x) shall remain outstanding without a material and adverse change to the powers, preferences or rights of the Series A Preferred Stock or (y) shall be converted into or exchanged for preferred stock of the surviving or resulting entity or a direct or indirect parent entity of such surviving or resulting entity having powers, preferences and rights substantially identical to that of a share of Series A Preferred Stock (except for any changes to such powers, preferences or rights that do not materially and adversely affect the Series A Preferred Stock (which may include the grant of additional powers, preferences or rights at the sole discretion of and as determined by the Board) and, if permitted by law, the payment of cash in lieu of fractional shares) (the "<u>Mirror Preferred Stock</u>"); or (ii) increase or decrease the authorized number of shares of the Series A Preferred Stock; <u>provided</u>, <u>however</u>, that, with respect to the foregoing clause (ii), if some, but not all, of the shares of Series A Preferred Stock are redeemed, the total number of authorized number of shares of the Series A Preferred Stock shall decrease by the number of shares so redeemed and such redeemed shares of Series A Preferred Stock shall constitute authorized but unissued shares of Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Corporation shall propose to take action specified in <u>Section 6(a)(i)</u> of this Certificate of Designations to amend, alter or repeal any provision of this Certificate of Designations, then the Corporation shall give notice of such proposed amendment, alteration or repeal to each Holder of Series A Preferred Stock as of the date of such notice at the address of said Holder shown on the stock books of the Corporation and shall cause to be filed with the Transfer Agent a copy of such notice. Such notice shall specify the other material terms of such amendment, alteration or repeal. Such notice shall be given at least ten (10) calendar days prior to the effective date of such amendment, alteration or repeal thereof. If at any time the Corporation shall abandon or cancel the proposed action for which notice has been given under this <u>Section 6(b)</u> of this Certificate of Designations prior to the effective date of such proposed action, the Corporation shall give prompt notice of such abandonment or cancellation to each Holder of Series A Preferred Stock as of the date of such notice at the address of said Holder shown on the stock books of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Until the date that is two (2) years from the Original Issuance Date, shares of Series A Preferred Stock shall not be Transferred to any Person without the prior written consent of the Corporation; <u>provided</u>, <u>however</u>, that the foregoing restriction shall not apply in connection with any Transfer of the Series A Preferred Stock pursuant to the Subscription Agreement.

7. <u>Change in Control Transaction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of any Change in Control Transaction occurring after the Original Issuance Date, each Holder of shares of Series A Preferred Stock outstanding immediately prior to the consummation of such Change in Control Transaction shall be entitled to have all, but not less than all, of the shares of Series A Preferred Stock then held by such Holder be redeemed at the Redemption Price upon the consummation of such Change in Control Transaction or, if the Offer of Redemption (as defined below) is delivered to the Holder after the consummation of such Change in Control Transaction, no later than twenty (20) Business Days following the Redemption Acceptance Deadline (as defined below) (the "<u>Change in Control Transaction Redemption</u>"). To the extent reasonably practicable, at least twenty (20) calendar days prior to the consummation of such Change in Control Transaction, the Corporation shall mail an offer of redemption to each Holder (such offer, an "<u>Offer of Redemption</u>") in accordance with <u>Section 15</u> of this Certificate of Designations (it being understood that the failure to provide the Offer of Redemption at least such twenty (20) calendar days prior to the consummation of such Change in Control Transaction shall not be deemed a breach by the Corporation of, or a default under, this Certificate of Designations); <u>provided</u>, that if such Offer of Redemption is not provided by the Corporation prior to the consummation of such Change in Control Transaction, the Corporation (or its successor) shall provide an Offer of Redemption to each Holder within ten (10) calendar days following the consummation of such Change in Control Transaction. Such Offer of Redemption shall state (A) that each Holder shall have the right to cause the Corporation (or its successor) to redeem all, but not less than all, of the shares of Series A Preferred Stock held by each such Holder, (B) the Redemption Price based on the date that such Change in Control Transaction is then expected to be consummated or the date that such Change in Control Transaction was actually consummated, as applicable, (C) the date that such Change in Control Transaction is then expected to be consummated or the date that such Change in Control Transaction was actually consummated, as applicable, (D) the instructions a Holder must follow with respect to such Change in Control Transaction Redemption and (E) any other matters required by law. If a Holder desires to accept the Offer of Redemption to cause the Corporation (or its successor) to redeem all, but not less than all, of the shares of Series A Preferred Stock held by such Holder for the Redemption Price, then, within ten (10) calendar days of the delivery of the Offer of Redemption (such tenth calendar day, the "<u>Redemption Acceptance Deadline</u>"), such Holder shall deliver to the Corporation (or its successor) in accordance with <u>Section 15</u> of this Certificate of Designations a written notice irrevocably electing, subject only to the consummation of such Change in Control Transaction, if applicable, to have all, but not less than all, of such Holder's shares of Series A Preferred Stock be redeemed by the Corporation (or its successor) for the Redemption Price upon the consummation of such Change in Control Transaction, or, if the Offer of Redemption is delivered to the Holder after the consummation of such Change in Control Transaction, no later than twenty (20) Business Days following the Redemption Acceptance Deadline (the "<u>Redemption Election Notice</u>"). Such Redemption Election Notice shall state (x) that such Holder irrevocably elects, subject only to the consummation of such Change in Control Transaction, if applicable, to accept the Offer of Redemption with respect to all, but not less than all, of the shares of Series A Preferred Stock held by such Holder and (y) such Holder's wire instructions. If the Offer of Redemption is delivered by the Corporation to the Holder prior to the consummation of the Change in Control Transaction and a Redemption Election Notice has not been timely delivered by a Holder in accordance with this <u>Section 7(a)</u> of this Certificate of Designations prior to the consummation of such Change in Control Transaction, and (1) if the shares of Series A Preferred Stock outstanding immediately prior to the consummation of such Change in Control Transaction shall not remain outstanding immediately following the consummation of such Change in Control Transaction, then the shares of Series A Preferred Stock held by such Holder immediately prior to the consummation of the Change in Control Transaction shall be converted into and exchanged for shares of Mirror Preferred Stock upon the consummation of such Change in Control Transaction, or (2) if there is a Change in Control Transaction other than as described in <u>Section 7(a)(1)</u> of this Certificate of Designations, then the shares of Series A Preferred Stock held by such Holder shall remain outstanding from and following the consummation of such Change in Control Transaction until otherwise redeemed in accordance with this Certificate of Designations. If such Change in Control Transaction is terminated prior to its consummation or is otherwise not consummated, each of the Offer of Redemption and any Redemption Election Notices shall automatically be deemed void and of no force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, on the date that such Change in Control Transaction is consummated, the Corporation, pursuant to applicable law or the terms of any Debt Instrument or Senior Stock, shall not have funds legally available to redeem or is otherwise prohibited or restricted from redeeming all shares of Series A Preferred Stock included in Redemption Election Notices to be so redeemed, those funds that are legally available and not so restricted or prohibited will be used to redeem the maximum possible number of such shares of Series A Preferred Stock so elected to be redeemed pursuant to valid and timely Redemption Election Notices and any Parity Stock then also entitled to be redeemed. Any shares of Series A Preferred Stock not redeemed as a result of the immediately preceding sentence, shall (A) in a Change in Control Transaction in which the shares of Series A Preferred Stock outstanding immediately prior to the consummation of such Change in Control Transaction shall not remain outstanding immediately following the consummation of such Change in Control Transaction, be converted into and exchanged for shares of Mirror Preferred Stock upon the consummation of such Change in Control Transaction, or (B) in a Change in Control Transaction other than as described in <u>Section 7(b)(A)</u> of this Certificate of Designations, remain outstanding from and following the consummation of such Change in Control Transaction. The shares of Series A Preferred Stock (and, if applicable, Parity Stock) to be redeemed in accordance with this <u>Section 7(b)</u> shall be redeemed *pro rata* (as nearly as practical without creating fractional shares) or by any other equitable method the Board of Directors in its discretion shall choose from among the Holders of the outstanding shares of Series A Preferred Stock that timely delivered Redemption Election Notices (and, if applicable, Parity Stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that, pursuant to any Change in Control Transaction, any Holder of shares of Series A Preferred Stock shall be entitled to rights as a dissenting holder under NRS 92A.300 to 92A.500, as amended from time to time, or any successor statute (the "<u>Dissenters' Rights Statute</u>"), and such Holder complies with all notice, demand and other requirements to be entitled to payment for such shares under the Dissenters' Rights Statute, such Holder agrees with the Corporation that the "Fair Value" of such shares for the purpose of the Dissenters' Rights Statute shall equal the Optional Redemption Price determined as of the time immediately before the effectuation of such transaction.

8. <u>Voting</u>. The holders of shares of Series A Preferred Stock shall have no voting rights whatsoever and shall not be considered Voting Securities, except as expressly specified in this Certificate of Designations. Notwithstanding anything to the contrary herein, and without limiting the generality of the foregoing, no vote or consent of holders of shares of Series A Preferred Stock will be required for (a) the creation or designation of any class or series of Capital Stock, (b) any amendment, alteration or repeal of a provision of the Articles of Incorporation or this Certificate of Designations (i) that would increase or decrease the number of authorized shares of Preferred Stock of the Corporation (but not below the number of shares of Preferred Stock of the Corporation then outstanding), other than the Series A Preferred Stock as contemplated by <u>Section 6(a)(ii)</u> of this Certificate of Designations, (ii) any amendment, modification, or restatement of the Articles of Incorporation as provided in the last sentence in Section 78.390(2) of the NRS, (iii) to cure any ambiguity, omission, inconsistency or mistake in this Certificate of Designations or the Articles of Incorporation that does not adversely affect the powers, preferences or rights of the Series A Preferred Stock set forth in this Certificate of Designations, or (iv) to make any provision with respect to matters or questions relating to the Series A Preferred Stock that is not inconsistent with the provisions of this Certificate of Designations and that does not adversely affect the powers, preferences or rights of the Series A Preferred Stock set forth in this Certificate of Designations, or (c) any election of any director for the Board of Directors.

9. <u>Preemptive Rights</u>. The Holders of shares of Series A Preferred Stock will not have any preemptive right to subscribe for or purchase any Capital Stock or other securities which may be issued by the Corporation.

10. <u>Creation of Capital Stock</u>. Notwithstanding anything set forth in the Articles of Incorporation or this Certificate of Designations, but subject to <u>Section 6(a)(ii)</u> of this Certificate of Designations, the Board of Directors, or any duly authorized committee thereof, without the vote of the Holders of shares of Series A Preferred Stock, may authorize and issue additional shares of any class or series of Capital Stock, including the Series A Preferred Stock or any Senior Stock, Parity Stock or Junior Stock.

11. <u>No Sinking Fund</u>. Shares of Series A Preferred Stock shall not be subject to or entitled to the operation of a retirement or sinking fund.

12. <u>Exclusion of Other Rights</u>. Except as may otherwise be required by law and except for the equitable rights and remedies that may otherwise be available to Holders of Series A Preferred Stock, the shares of Series A Preferred Stock shall not have any powers, designations, preferences, or relative, participating, optional or other rights, other than those specifically set forth in this Certificate of Designations.

13. <u>Book-Entry</u>. All shares of Series A Preferred Stock shall be issued in book-entry form and no physical certificates representing shares of Series A Preferred Stock shall be issued. The Corporation or, if the Corporation is not the Transfer Agent, the Transfer Agent shall keep and maintain a record in the Corporation's book-entry system to evidence any actions taken with respect to such uncertificated shares of Series A Preferred Stock.

14. <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transfer Taxes</u>. The Corporation shall pay any and all stock transfer, documentary, stamp and similar taxes that may be payable in respect of any issuance or delivery of shares of Series A Preferred Stock or other securities issued on account of Series A Preferred Stock pursuant hereto. The Corporation shall not, however, be required to pay any such tax that may be payable in respect of any transfer involved in the issuance or delivery of shares of Series A Preferred Stock or other securities in a name other than that in which the shares of Series A Preferred Stock with respect to which such shares or other securities are issued or delivered were registered, or in respect of any payment to any Person other than a payment to the Holder thereof, and shall not be required to make any such issuance, delivery or payment unless and until the Person otherwise entitled to such issuance, delivery or payment has paid to the Corporation the amount of any such tax or has established, to the satisfaction of the Corporation, that such tax has been paid or is not payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Withholding</u>. All payments and distributions (or deemed distributions) on the shares of Series A Preferred Stock shall be subject to withholding and backup withholding of tax to the extent required by applicable law, and amounts withheld, if any, shall be treated as received by Holders. The Corporation shall have the right to take measures necessary to obtain cash to satisfy the Corporation's withholding requirements with respect to any non-cash, deemed or constructive payment, dividend or distribution to any Holder of Series A Preferred Stock, including by retaining, selling or liquidating property of any such Holder which is held by the Corporation in its custody or over which it has control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Tax Treatment</u>. For U.S. federal income tax purposes, the Series A Preferred Stock shall be treated as non-voting equity of the Corporation.

15. <u>Notices</u>. All notices or communications referred to in this Certificate of Designations or otherwise in respect of the Series A Preferred Stock shall be sufficiently given if given in writing and delivered by first class mail, postage prepaid, e-mail, or if given in such other manner as may be permitted in this Certificate of Designations, in the Articles of Incorporation or the Bylaws of the Corporation and by applicable law. All notices hereunder shall be deemed to have been given upon the earlier of (i) receipt thereof, (ii) on the date of delivery if delivered personally or sent via e-mail (<u>provided</u>, that no transmission error is received), or (iii) one (1) Business Day after the mailing thereof if sent by registered, certified mail, first class mail with postage prepaid or by overnight courier, addressed: (x) if to the Corporation (or its successor), to its principal place of business (Attention: Chief Legal Officer), (y) if to any Holder of Series A Preferred Stock, to such Holder at the address of such Holder as listed in the stock record books of the Corporation (which, if the Corporation is not the Transfer Agent, may include the records of the Transfer Agent) or (z) to such other address as the Corporation or any such Holder, as the case may be, shall have designated by notice similarly given.

16. <u>Waiver</u>. Notwithstanding any provision in this Certificate of Designations to the contrary, any provision contained in this Certificate of Designations and any right of the Holders of Series A Preferred Stock granted hereunder may be waived as to all shares of Series A Preferred Stock (and the Holders thereof) upon the written consent of the Board of Directors (or an authorized committee thereof) and the Holders of a majority of the shares of Series A Preferred Stock then outstanding; <u>provided</u>, that upon the granting of any waiver pursuant to this <u>Section 16</u> by Holders holding less than all of the then outstanding shares of Series A Preferred Stock, the Corporation shall be required to file, with no additional consent or approval by the Holders, an amendment to this Certificate of Designations with the Secretary of State of the State of Nevada reflecting the substance of such waiver, and such waiver provided pursuant to this <u>Section 16</u> shall be deemed sufficient to satisfy any approval or consent rights required by applicable law or under <u>Section 6</u> of this Certificate of Designations for the Corporation to make such filing. Except as provided in this <u>Section 16</u> of this Certificate of Designations, the Holders of shares of Series A Preferred Stock shall not be entitled to act by written consent.

17. <u>Certain Interpretations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) When a reference is made in this Certificate of Designations to a Section, such reference is to a Section of this Certificate of Designations unless otherwise indicated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) When used herein, (i) the words "hereof", "herein" and "hereunder" and words of similar import will, unless otherwise stated, be construed to refer to this Certificate of Designations as a whole and not to any particular provision of this Certificate of Designations; and (ii) the words "include," "includes" and "including" will be deemed in each case to be followed by the words "without limitation."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any action or notice is to be taken or given on or by a particular day, and such day is not a Business Day, then such action or notice will be deferred until, or may be taken or given on, the immediately next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) When calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Certificate of Designations, the date that is the reference date in calculating such period will be excluded and if the last day of such period is not a Business Day, the period shall end at 5:00 p.m. Midland, Texas time on the next succeeding Business Day.

[*Signature page follows*.]

IN WITNESS WHEREOF, the Corporation has caused this Certificate of Designations to be executed by its duly authorized officer on this 20<sup>th</sup> day of August, 2025.

---

| | |
|:---|:---|
| NEXT BRIDGE HYDROCARBONS, INC. | NEXT BRIDGE HYDROCARBONS, INC. |
| By: | /s/ Gregory McCabe |
|  | Name: Gregory McCabe |
|  | Title: Chief Executive Officer |

---

## Exhibit 10.1

**Exhibit 10.1**

**THIS 18% Unsecured Promissory Note (THE "<u>NOTE</u>") HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("<u>ACT</u>"), OR THE SECURITIES LAWS OF ANY STATE. THIS NOTE MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT REGISTRATION UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR DELIVERY TO NEXT BRIDGE HYDROCARBONS, INC. OF AN OPINION OF LEGAL COUNSEL SATISFACTORY TO NEXT BRIDGE HYDROCARBONS, INC. THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR ANY APPLICABLE STATE SECURITIES LAWS.**

18% Unsecured Promissory Note<br> OF<br> NEXT BRIDGE HYDROCARBONS, INC.

---

| | |
|:---|:---|
| US$6,000,000.00 | August 20, 2025 |

---

FOR VALUE RECEIVED, **NEXT BRIDGE HYDROCARBONS, INC.**, a Nevada corporation with its principal office located at 500 W. Texas Ave., Suite 890, Midland, Texas 79701 (the "***Company***"), unconditionally promises to pay to **PANTHER BRIDGE LLC**, a Texas limited liability company with an address at 500 W. Texas Ave., Suite 890, Midland, Texas 79701, or its registered assignee, upon presentation of this 18% Unsecured Promissory Note (the "***Note***") by the registered holder hereof (the "***Holder***") at the office of the Company, the principal sum of Six Million and Zero One-Hundredth Dollars ($6,000,000.00), together with the accrued and unpaid interest thereon and other sums as hereinafter provided, subject to the terms and conditions as set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Capitalized terms used herein have the meanings set forth in this <u>Section 1</u>.

"***Applicable Rate***" means the rate equal to eighteen percent (18.00%) per annum.

"***Business Day***" means a day other than a Saturday, Sunday, or other day on which commercial banks in Midland, Texas are authorized or required by law to close.

"***Company***" has the meaning set forth in the introductory paragraph of this Note.

"***Closing Date***" means August 20, 2025.

"***Default***" means any of the events specified in <u>Section 6</u> which constitute an Event of Default or which, upon the giving of notice, the lapse of time, or both, pursuant to <u>Section 6</u>, would, unless cured or waived, become an Event of Default.

"***Default Rate***" means the lesser of (i) the Applicable Rate *plus* two percent (2.00%) per annum and (ii) the highest rate of interest permitted by the laws of the State of Texas.

"***Event of Default***" has the meaning set forth in <u>Section 6</u>.

18% Unsecured Promissory Note<br> Page 1

"***Governmental Authority***" means the government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government.

"***Holder***" has the meaning set forth in the introductory paragraph of this Note.

"***Initial Term***" means the time period between the Closing Date and the Maturity Date.

"***Initial Term Interest Payment***" has the meaning as set forth in **<u>Section 2</u>**.

"***Loan***" means the aggregate funds advanced to the Company under the terms of this Note in an aggregate principal amount of Six Million and Zero One-Hundredths Dollars ($6,000,000.00).

"***Material Indebtedness***" means any debt or indebtedness of the Company (other than the Loan) in an aggregate principal amount exceeding One Million Dollars ($1,000,000).

"***Maturity Date***" means August 20, 2026.

"***Note***" has the meaning set forth in the introductory paragraph of this Note.

"***Note Register***" has the meaning set forth in **<u>Section 3(a)</u>**.

"***Panther Wells***" means the wells that the Company is obligated to drill to maintain its leases representing approximately 618 gross acres and 618 net acres of land situated in Acadia Parish, Louisiana;

"***Person***" means any individual, corporation, limited liability company, trust, joint venture, association, company, limited or general partnership, unincorporated organization, Governmental Authority, or other entity.

"***Subordination Agreement***" means the Subordination Agreement executed contemporaneously herewith by and between Gregory McCabe and Panther Bridge LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Interest; Schedule for Payment of Principal and Interest</u>**. During the Initial Term, this Note will bear simple interest at the Applicable Rate, in arrears, with one balloon payment of principal and interest being due and payable on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Note Register; Prepayments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Note Register</u>. Principal of, and interest on, this Note so payable will be paid to the Person whose name is registered on the records of the Company regarding registration and transfers of this Note (the "***Note Register***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Optional Prepayments</u>. The Company may prepay the Loan in whole or in part at any time or from time to time.

18% Unsecured Promissory Note<br> Page 2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment Mechanics</u>. Payment of any sums due to the Holder under the terms of this Note shall be made in United States Dollars by check or wire transfer, at the option of the Holder, no later than 3:00 p.m. prevailing central time on the date on which such payment is due or such payment is made. Payment shall be made at the address last appearing on the Note Register as designated in writing by the Holder hereof from time to time. If any payment hereunder would otherwise become due and payable on a day that is not a Business Day, such payment shall be due and payable on the next Business Day thereafter. The forwarding of such funds shall constitute a payment of outstanding principal and interest hereunder and shall satisfy and discharge the liability for principal and interest on this Note to the extent of the sum represented by such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Application of Proceeds</u>. All payments made under this Note shall be applied *first* to the payment of any fees or charges outstanding hereunder; *second* to accrued interest; and *third* to the payment of the principal amount outstanding under the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Computation of Interest; Late Charge</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All computations of interest shall be made on the basis of 365 or 366 days, as the case may be, and the actual number of days elapsed. Interest shall accrue on the principal amount on the day on which such funds are advanced, and shall not accrue on such amount for the day on which it is paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to statutory and contractual provisions limiting the rate and amount of interest Holder may charge, collect or receive, in the event any payments shall become overdue for a period in excess of ten (10) days, a one-time late charge of five percent (5%) of the payment due may be charged by the Holder hereof for the purpose of defraying the expense incident to the handling of such delinquent payments. Any late acceptance or waiver of payment of any installment or waiver by Holder of default in any obligation or covenant of Company herein shall not operate as a waiver of any other or subsequent installments or other covenants or obligations. THIS LATE CHARGE DOES NOT APPLY TO THE FINAL SCHEDULED PAYMENT UNDER THIS NOTE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Representations and Warranties of the Company</u>**. The Company represents and warrants to the Holder that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization</u>. The Company is validly existing and in good standing under the laws of the state of Nevada and has the requisite power to own, lease and operate its properties and to carry on its business as now being conducted. The Company is duly qualified to do business and is in good standing in each jurisdiction in which the character or location of the properties owned or leased by the Company or the nature of the business conducted by the Company makes such qualification necessary or advisable, except where the failure to do so would not have a material adverse effect on the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Power and Authority</u>. The Company has the requisite power to execute, deliver and perform this Note, and to consummate the transactions contemplated hereby. The execution and delivery of this Note by the Company and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Company. This Note has been duly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company and is enforceable against the Company in accordance with its terms except (i) that such enforcement may be subject to bankruptcy, insolvency, moratorium or similar laws affecting creditors' rights and (ii) that the remedy of specific performance and injunctive and other forms of equitable relief are subject to certain equitable defenses and to the discretion of the court before which any proceedings therefor may be brought.

18% Unsecured Promissory Note<br> Page 3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Approvals</u>. No authorization, approval or consent of any Governmental Authority is required to be obtained by the Company for the issuance and sale of the Note, except such authorizations, approvals and consents that have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Events of Defaults</u>**. The following are deemed to be an event of default ("***Event of Default***") hereunder: (a) the failure by the Company to pay any installment of interest on this Note as and when due and payable and the continuance of any such failure for ten (10) days; (b) the failure by the Company to pay all or any part of the principal on this Note when and as the same become due and payable as set forth above, at maturity, by acceleration or otherwise; (c) any representation or warranty made or deemed made by or on behalf of the Company in this Note or any amendment or modification hereof or thereof or waiver hereunder or thereunder, or in any report or notice furnished pursuant to or in connection with this Note or any amendment or modification hereof or thereof or waiver hereunder or thereunder, shall prove to have been incorrect in any material respect (or, in the case of any such representation or warranty under this Note already qualified by materiality, such representation or warranty shall prove to have been incorrect) when made or deemed made; (d) other than as set forth in **<u>Sections 6(a), (b) and (c)</u>** above or **<u>Sections 6(h) or (i)</u>** below, the failure by the Company to observe or perform any covenant or agreement contained in this Note and the continuance of such failure for a period of thirty (30) days after the written notice is given to the Company; (e) the assignment by the Company for the benefit of creditors, or an application by the Company to any tribunal for the appointment of a trustee or receiver of a substantial part of the assets of the Company, or the commencement of any proceedings relating to the Company under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debts, dissolution or other liquidation law of any jurisdiction; or the filing of such application, or the commencement of any such proceedings against the Company and an indication of consent by the Company to such proceedings, or the appointment of such trustee or receiver, or an adjudication of the Company bankrupt or insolvent, or approval of the petition in any such proceedings, and such order remains in effect for sixty (60) days; (f) the declaration of an event of default or default occurring on or after the Closing Date, under any Material Indebtedness, the effect of which is to cause, or to permit the lender or creditor (or a trustee or agent on behalf of such holder or beneficiary) to cause, with the giving of notice, if required, such Material Indebtedness to become due prior to its stated maturity; (g) the entry of one or more judgments in excess of $500,000 (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage and is not subject to any insolvency proceeding and, for the avoidance of doubt, net of any such coverage) against the Company, which remains undischarged, unsatisfied, unvacated or unbonded for a period of sixty (60) consecutive days during which execution shall not be effectively stayed (pursuant to applicable law, rules, court orders, settlement agreements or agreements with the judgment creditor); (h) the occurrence of any event or condition, that with the giving of notice or passage of time, or both, could result in a material default by Company under any other contract, loan, obligation or agreement of any kind to which the Company is a party that results in a material adverse effect against Company; (i) the occurrence of any event or condition, that with the giving of notice or passage of time, or both, could result in a default by Company under the Subordination Agreement executed contemporaneously herewith by and between Gregory McCabe and Panther Bridge LLC ("***Subordination Agreement***"); and (j) the issuance of any order or decree enjoining or prohibiting the Company from performing under this Note, and/or the Subordination Agreement, which order or decree is not vacated within fifteen (15) days after the granting thereof.

18% Unsecured Promissory Note<br> Page 4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>The Holder's Rights and Remedies upon the Occurrence of an Event of Default</u>**. Upon the occurrence of any Event of Default and at any time thereafter during the continuance of such Event of Default, the Holder may, at its option, by written notice to the Company (a) declare the entire principal amount of the Loan, together with all accrued interest thereon and all other amounts payable under this Note, immediately due and payable and/or (b) require any outstanding principal to bear interest from the date of the Event of Default at the Default Rate (subject to **<u>Section 14</u>**). Failure to exercise this option shall not constitute a waiver of the right to exercise the same in the event of a subsequent Event of Default. If the Note for which the then outstanding principal amount, together with interest owing in respect thereof, shall have been paid in accordance herewith, the Note shall promptly be surrendered to or as directed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Limitation on Merger, Sale or Consolidation</u>**. The Company may not, directly or indirectly, consolidate with or merge into another person or sell, lease, convey or transfer all or substantially all of its assets (computed on a consolidated basis), whether in a single transaction or a series of related transactions, to another person or group of affiliated persons, without contemporaneously paying Holder the entire outstanding principal amount of the Loan, together with all accrued interest thereon and all other amounts payable under this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Listing of Holder of Note</u>**. This Note will be registered in the Holder's name on the books of the Company at its principal office in Midland, Texas, after which no transfer hereof shall be valid unless made on the Company's books at the office of the Company, by the Holder hereof, in person, or by attorney duly authorized in writing, and similarly noted hereon and which transfer, if so requested, shall not be withheld, conditioned, delayed or denied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Holder Not Deemed a Stockholder</u>**. No Holder, as such, of this Note, unless otherwise a stockholder of the Company, shall be entitled to vote or receive dividends or be deemed the holder of shares of the Company for any purpose, nor shall anything contained in this Note be construed to confer upon the Holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Waiver of Demand, Presentment, Etc</u>**. The Company hereby expressly waives demand and presentment for payment, notice of nonpayment, protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, bringing of suit and diligence in taking any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing and to be owing hereunder, regardless of and without any notice, diligence, act or omission as or with respect to the collection of any amount called for hereunder.

18% Unsecured Promissory Note<br> Page 5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Attorney's Fees</u>**. The Company agrees to pay all reasonable and documented out-of-pocket costs and expenses, including, without limitation, reasonable attorney's fees, which may be incurred by the Holder in collecting any amount due under this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Enforceability</u>**. In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Intent to Comply with Usury Laws</u>**. In no event will the interest to be paid on this Note exceed the maximum rate provided by law. It is the intent of the parties to comply fully with the usury laws of the State of Texas; accordingly, it is agreed that notwithstanding any provisions to the contrary in this Note, in no event shall such Note require the payment or permit the collection of interest (which term, for purposes hereof, shall include any amount which, under Texas law, is deemed to be interest, whether or not such amount is characterized by the parties as interest) in excess of the maximum amount permitted by the laws of the State of Texas. If any excess of interest is unintentionally contracted for, charged or received under this Note, or in the event the maturity of the indebtedness evidenced by the Note is accelerated in whole or in part, or in the event that all of part of the Loan or interest of this Note shall be prepaid, so that the amount of interest contracted for, charged or received under this Note, on the amount of the Loan actually outstanding from time to time under this Note shall exceed the maximum amount of interest permitted by the applicable usury laws, then in any such event (a) the provisions of this paragraph shall govern and control, (b) neither the Company nor any other person or entity now or hereafter liable for the payment thereof, shall be obligated to pay the amount of such interest to the extent that it is in excess of the maximum amount of interest permitted by such applicable usury laws, (c) any such excess which may have been collected shall be either applied as a credit against the then unpaid principal amount thereof or refunded to the Company at the Holder's option, and (d) the effective rate of interest shall be automatically reduced to the maximum lawful rate of interest allowed under the applicable usury laws as now or hereafter construed by the courts having jurisdiction thereof. All calculations of the rate of interest contracted for, charged, or received under this Note which are made for purposes of determining whether such rate exceeds the maximum lawful rate of interest shall be made by amortizing or spreading any interest contracted for, charged, or received under this Note in accordance with the actuarial method required by Section 306.004(a) of the Texas Finance Code, as amended from time to time, with each payment under this Note deemed to be applied first to accrued interest and then to principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Governing Law; Consent to Jurisdiction</u>**. This Note shall be governed by and construed in accordance with the laws of the State of Texas without regard to the conflict-of-law provisions thereof. In any action between or among any of the parties, whether rising out of this Note or otherwise, each of the parties irrevocably consents to the exclusive jurisdiction and venue of the federal and/or state courts located in Midland County, Texas.

18% Unsecured Promissory Note<br> Page 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>Amendment and Waiver</u>**. Any waiver or amendment hereto shall be in writing signed by the parties hereto. No failure on the part of the Holder to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by the Holder of any right hereunder preclude any other or further exercise thereof or the exercise of any other rights. The remedies herein provided are cumulative and not exclusive of any other remedies provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **<u>Entire Agreement; Headings</u>**. This Note constitutes the entire agreement between the Holder and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations and understandings, written or oral, of such parties. The headings are for reference purposes only and shall not be used in construing or interpreting this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **<u>Notices</u>**. Any notices or other communications required or permitted hereunder shall be sufficiently given if in writing and delivered in person, or sent by registered or certified mail (return receipt requested) or recognized overnight delivery service, postage pre-paid, or sent by email addressed as follows, or to such other address as such party may notify to the other parties in writing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to the Company, to it at the following address:

Next Bridge Hydrocarbons, Inc.<br> 500 W. Texas Ave., Suite 890<br> Midland, Texas 79701<br> Attn: Chief Executive Officer<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to Holder, to it at the following address:

Panther Bridge LLC<br> 500 W. Texas Ave., Suite 890<br> Midland, Texas 79701<br> Attn: Greg McCabe, Jr.

A notice or communication will be effective (i) if delivered in person or by overnight courier, on the Business Day it is delivered, (ii) if sent by registered or certified mail, the earlier of the date of actual receipt by the party to whom such notice is required to be given or three (3) days after deposit in the United States mail and (iii) if sent by email, on the date sent. If any notice or other communication is sent by email, the party providing such notice shall, no later than the next business day after such emailed notice is sent, send a written notice by registered or certified mail (return receipt requested) or recognized overnight delivery service, postage prepaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **<u>Use of Proceeds</u>**. The proceeds of the Loan hereunder shall be used (a) to pay any expenditures incurred by the Company, (b) to pay off the 12% Secured Promissory Note held by CAPCO Holding, Inc. in the principal amount of $2,000,000, (c) to pay any obligations of the Company for the Panther Wells and (c) for general corporate purposes, *it being understood and agreed that* the proceeds of the Loan shall not be used to pay dividends or distributions to stockholders.

18% Unsecured Promissory Note<br> Page 7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **<u>Survival</u>**. The representations, warranties, obligations and covenants of the Company shall survive execution of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **<u>Lost or Mutilated Note</u>.** If this Note shall be mutilated, lost, stolen, or destroyed, Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen, or destroyed Note, a new Note for the principal amount of this Note so mutilated, lost, stolen, or destroyed but only upon receipt of evidence of such loss, theft, or destruction of such Note, and of the ownership hereof, and indemnity, if requested, all reasonably satisfactory to Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. **<u>OFAC.</u>** Company represents that neither Company, nor any of its affiliates, or any of their respective directors, officers, managers, partners, or any other authorized representatives (a) is now and at any time during the term of this Note shall be named as a "Specially Designated National and Blocked Person" on the list published by the U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) at its official website and (b) is now and at any time during the term of this Note shall be directly or indirectly owned or controlled by any person who is located, organized, or a resident in a country or territory that is, or whose government is the target of country wide sanctions imposed by any U.S. government sanctions authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. **<u>Not Revolving</u>.** This Note does not represent a revolving credit; principal amounts repaid may not be re-borrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. **<u>Notations on Payments</u>**. Company agrees not to send Holder payments marked "paid in full," "without recourse," "under protest," or similar language. If Company sends such a payment, Holder may accept it without losing any of Holder's rights under this Note, and Company will remain obligated to pay any further amount owed to Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. **WAIVER OF JURY TRIAL.** COMPANY HEREBY WAIVES THE RIGHT TO TRIAL BY JURY OF ANY MATTERS OR CLAIMS ARISING OUT OF THIS NOTE, ANY AGREEMENT OR ANY DOCUMENT EXECUTED IN CONNECTION HEREWITH OR OUT OF THE CONDUCT OF THE RELATIONSHIP BETWEEN COMPANY AND HOLDER, IN EACH CASE WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE. COMPANY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT HOLDER MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF COMPANY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR HOLDER TO MAKE THE LOAN AND ENTER INTO THIS AGREEMENT. FURTHER, COMPANY HEREBY CERTIFIES THAT NO REPRESENTATIVE OR AGENT OF HOLDER, NOR HOLDER'S COUNSEL, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT HOLDER WOULD NOT SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION. NO REPRESENTATIVE OR AGENT OF HOLDER, NOR HOLDER'S COUNSEL, HAS THE AUTHORITY TO WAIVE, CONDITION OR MODIFY THIS PROVISION. COMPANY ACKNOWLEDGES THAT IT HAS HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL REGARDING THIS PARAGRAPH, THAT IT FULLY UNDERSTANDS THE TERMS, CONTENT AND EFFECT, AND THAT IT VOLUNTARILY AND KNOWINGLY AGREES TO THE TERMS OF THIS PARAGRAPH.

18% Unsecured Promissory Note<br> Page 8

THIS WRITTEN PROMISSORY NOTE REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

[Signature Page Follows.]

18% Unsecured Promissory Note<br> Page 9

**IN WITNESS WHEREOF,** the Company has executed this 18% Unsecured Promissory Note as of the Closing Date.

---

| | |
|:---|:---|
| **NEXT BRIDGE HYDROCARBONS, INC.** | **NEXT BRIDGE HYDROCARBONS, INC.** |
| By: | /s/ Gregory McCabe |
| Name: Gregory McCabe | Name: Gregory McCabe |
| Title: Chief Executive Officer | Title: Chief Executive Officer |

---

[Signature Page to Borrowing Notice]

## Exhibit 10.2

**Exhibit 10.2**

SUBORDINATION AGREEMENT

This Subordination Agreement (this "***Agreement***") is made as of August 20, 2025 by and between **GREGORY MCCABE** ("***Subordinated Creditor***"), **PANTHER BRIDGE LLC**, a Texas limited liability company ("***Senior Creditor***") and **NEXT BRIDGE HYDROCARBONS, INC.**, a Nevada corporation ("***Borrower***").

<u>Recitals</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Borrower has requested and/or obtained certain loans or other credit accommodations from Senior Creditor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Subordinated Creditor has extended loans or other credit accommodations to Borrower, and/or may extend loans or other credit accommodations to Borrower from time to time (the document for which are referred to herein as the "***Loan Documents***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. In order to induce Senior Creditor to extend credit to Borrower and, at any time or from time to time, at Senior Creditor's option, to make such further loans, extensions of credit, or other accommodations to or for the account of Borrower, or to purchase or extend credit upon any instrument or writing in respect of which Borrower may be liable in any capacity, or to grant such renewals or extension of any such loan, extension of credit, purchase, or other accommodation as Senior Creditor may deem advisable, Subordinated Creditor is willing to subordinate (on the terms set forth in this Agreement): (i) all of Borrower's indebtedness and obligations to Subordinated Creditor, including pursuant to the 8% Secured Promissory Note, dated October 1, 2021, as such note has been amended, and the 5% Unsecured Promissory Note, dated December 21, 2022, as such note has been amended, (collectively, the "***Subordinated Notes***"), whether presently existing or arising in the future (the "***Subordinated Debt***") to the Senior Debt (as defined below); and (ii) all of Subordinated Creditor's security interests, if any, in the Borrower's property, to all of Senior Creditor's security interests, if any, in the Borrower's property.

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Subordinated Creditor subordinates to Senior Creditor, on the terms set forth in this Agreement, any security interest or lien that Subordinated Creditor may have in any property of Borrower. Notwithstanding the respective dates of attachment or perfection of the security interest, if any, of Subordinated Creditor and the security interest, if any, of Senior Creditor, the security interest, if any, of Senior Creditor in any collateral, shall at all times, while any Senior Debt or commitment by Senior Creditor to lend is outstanding, be prior to the security interest, if any, of Subordinated Creditor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. All Subordinated Debt is subordinated, on the terms set forth in this Agreement, in right of payment to all obligations of Borrower to Senior Creditor now existing or hereafter arising, together with all costs of collecting such obligations (including attorneys' fees), including, without limitation, all interest accruing after the commencement by or against Borrower of any bankruptcy, reorganization or similar proceeding, and all of Borrower's indebtedness and obligations to Senior Creditor under the 18% Unsecured Promissory Note, dated August 20, 2025 (the "***Senior Debt***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as otherwise set forth in this Agreement, Subordinated Creditor will not demand or receive from Borrower (and Borrower will not pay to Subordinated Creditor) all or any part of the Subordinated Debt, by way of payment, prepayment, setoff, lawsuit or otherwise (other than payments of Excluded Items (as defined below)), nor will Subordinated Creditor exercise any remedy with respect to any collateral, nor will Subordinated Creditor commence, or cause to commence, prosecute or participate in any administrative, legal or equitable action against Borrower, for so long as any portion of the Senior Debt remains outstanding. Further, Subordinated Creditor shall not be entitled to receive from Borrower (and Borrower shall not be entitled to pay to Subordinated Creditor) any regularly scheduled payment of interest and principal, and/or any other amounts due in accordance with the terms of the Subordinated Debt, for so long as any portion of the Senior Debt remains outstanding. Notwithstanding the foregoing or any breach or default by the Borrower under the Loan Documents, the Subordinated Creditor shall not at any time or in any manner: (a) foreclose upon, take possession of, or attempt to realize on any collateral, or proceed in any way to enforce any claims it has or may have against the Borrower under the Subordinated Debt or otherwise, or (b) contest, protest or object to any action taken by Senior Creditor, unless and until the Senior Debt has been fully and indefeasibly paid and satisfied in full.

Subordination Agreement

Page 1 of 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Notwithstanding anything to the contrary herein, upon (i) the occurrence and during the continuance of an Event of Default under the Senior Debt and (ii) written notice of such Event of Default to Subordinated Creditor from Senior Creditor (a "***Payment Blockage Notice***"), Subordinated Creditor may not exercise any remedy with respect to Borrower nor receive any payment (other than in respect of Excluded Items (as such term is defined in Section 6 below) or any payment of paid-in-kind interest with respect to the Subordinated Debt and the accrual or capitalization of interest, fees or other amounts, whether pursuant to the terms of the Subordinated Notes or in lieu of cash payments that otherwise were prohibited under the terms of this Agreement) from Borrower for each period (each a "***Payment Blockage Period***") commencing on the date of the Payment Blockage Notice and ending on the earliest to occur of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such Event of Default has been cured or has been waived by Senior Creditor in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 120 days have passed from the date of such Payment Blockage Notice, unless Senior Creditor has commenced a judicial proceeding or non-judicial actions to collect or enforce the Senior Debt or foreclose on any collateral, or a case or proceeding by or against Borrower is commenced under any bankruptcy or insolvency law or laws relating to the relief of debtors, in which case Subordinated Creditor may exercise any remedy with respect to Borrower but Subordinated Creditor may not receive any payments from Borrower during the continuance of such actions or proceedings; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Senior Debt has been discharged or paid in full and Senior Creditor's commitment, if any, to make credit extensions under the Senior Debt has been terminated;

immediately after which Subordinated Creditor may exercise such remedies and Borrower may make all payments due and owing to Subordinated Creditor (including, without limitation, any amounts in arrears by reason of such Payment Blockage Period), subject at all times to the requirement that any amounts received by Subordinated Creditor be turned over to Senior Creditor so long as any Senior Debt remains outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Subordinated Creditor shall promptly deliver to Senior Creditor in the form received (except for endorsement or assignment by Subordinated Creditor where required by Senior Creditor, and any Excluded Items) for application to the Senior Debt any payment, distribution, security or proceeds received by Subordinated Creditor with respect to the Subordinated Debt other than in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Notwithstanding the foregoing or anything to the contrary contained in this Agreement, Subordinated Debt shall not include any obligations of Borrower arising under or in connection with any of the Excluded Items, as defined hereafter "**Excluded Items**" means: (a) options or warrants issued by Borrower to Subordinated Creditor pursuant to which Subordinated Creditor may purchase equity securities of Borrower or agreements exclusively governing the rights of the holders of equity securities of Borrower; and (b) any equity securities of Borrower held by or paid or otherwise delivered to Subordinated Creditor including those issued or issuable upon exercise of or in connection with any options or warrants and including, without limitation, those issued or issuable by Borrower to Subordinated Creditor in connection with or as a result of the conversion or as payment in respect of any Subordinated Debt.

Subordination Agreement

Page 2 of 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. In the event of Borrower's insolvency, reorganization or any case or proceeding under any bankruptcy or insolvency law or laws relating to the relief of debtors (each, a "**Proceeding**"), these provisions shall remain in full force and effect, and Senior Creditor's claims against Borrower and the estate of Borrower shall be paid in full before any payment is made to Subordinated Creditor. This Agreement shall be applicable both before and after the commencement of any Proceeding and all converted or succeeding cases or proceedings in respect thereof (notwithstanding Section 1129(b)(1) of the Bankruptcy Code or any comparable provision of other applicable bankruptcy or insolvency law or laws). Notwithstanding Section 1129(b)(1) of the Bankruptcy Code or any comparable provision of other applicable bankruptcy or insolvency law or laws, the relative rights of the Senior Creditor and the Subordinated Creditor in or to any distributions with respect to the Senior Debt or Subordinated Debt shall continue after the commencement of any Proceeding. Accordingly, the provisions of this Agreement are intended to be and shall be enforceable as a subordination agreement within the meaning of Section 510 of the Bankruptcy Code or any comparable provision of other applicable bankruptcy or insolvency law or laws. For purposes of this Agreement. "**Bankruptcy Code**" shall mean the Federal Bankruptcy Reform Act of 1978, as heretofore and hereafter amended, and codified as 11 U.S.C. §§ 101 et seq. and the regulations issued thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. For so long as any of the Senior Debt remains unpaid, Subordinated Creditor irrevocably appoints Senior Creditor as Subordinated Creditor's attorney in fact, and grants to Senior Creditor a power of attorney with full power of substitution, in the name of Subordinated Creditor or in the name of Senior Creditor, for the use and benefit of Senior Creditor, without notice to Subordinated Creditor, to perform at Senior Creditor's option the following acts in any bankruptcy, insolvency or similar proceeding involving Borrower, to file the appropriate claim or claims in respect of the Subordinated Debt on behalf of Subordinated Creditor if Subordinated Creditor does not do so prior to 20 days before the expiration of the time to file claims in such proceeding and if Senior Creditor elects, in its sole discretion, to file such claim or claims. Subordinated Creditor shall retain all rights to vote and otherwise act in any bankruptcy, insolvency or similar proceeding (including, without limitation, the right to vote to accept or reject any plan of reorganization, composition, arrangement or liquidation) to the extent provided by applicable law, provided that Subordinated Creditor shall not initiate, prosecute or join in any claim or action in any such proceeding challenging (x) the validity or enforceability of the Senior Debt, this Agreement or any liens or security interests, if any, securing the Senior Debt, or (y) the intent or effect of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Subordinated Creditor and Borrower shall promptly affix the legend below to the Subordinated Notes stating that the instruments are subject to the terms of this Agreement. No amendment of the documents evidencing or relating to the Subordinated Debt ("***Amendments***") shall modify the provisions of this Agreement in any manner which might terminate or impair the subordination of the Subordinated Debt that Subordinated Creditor may have in any property of Borrower, as provided in this Agreement. Without limiting the foregoing, such instruments shall not be amended to (i) increase the rate of interest with respect to the Subordinated Debt, or (ii) accelerate the payment of the principal or interest or any other portion of the Subordinated Debt. Promptly upon execution of the Amendments, Borrower shall, at no cost to Senior Debtor, provide a true, correct and complete copy of the Amendments to Senior Creditor.

---

| | |
|:---|:---|
| LEGEND: | **This Note is subject to the terms of a Subordination Agreement dated August 20, 2025 in favor of Panther Bridge LLC, a Texas limited liability company. Notwithstanding any contrary statement contained in the within instrument, no payment on account of any obligation arising from or in connection with the within instrument or any related agreement (whether of principal, interest or otherwise) shall be made, paid, received or accepted except in accordance with the terms of said Subordination Agreement.** |

---

Subordination Agreement

Page 3 of 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. This Agreement shall remain effective for so long as the Senior Creditor has any obligation to make credit extensions to Borrower or Borrower owes any amounts to Senior Creditor under the Senior Debt or otherwise. If, at any time after payment in full of the Senior Debt any payments of the Senior Debt must be disgorged by Senior Creditor for any reason (including, without limitation, the bankruptcy of Borrower), this Agreement and the relative rights and priorities set forth herein shall be reinstated as to all such disgorged payments as though such payments had not been made and Subordinated Creditor shall immediately pay over to Senior Creditor all payments received with respect to the Subordinated Debt to the extent that such payments would have been prohibited hereunder. At any time and from time to time, without notice to Subordinated Creditor, Senior Creditor may take such actions with respect to the Senior Debt as Senior Creditor, in its sole discretion, may deem appropriate, including, without limitation, terminating advances to Borrower, increasing the principal amount, extending the time of payment, increasing applicable interest rates, renewing, compromising or otherwise amending the terms of any documents affecting the Senior Debt, and enforcing or failing to enforce any rights against Borrower or any other person; provided that such action will not terminate or impair Subordinated Creditor's rights as provided herein. No such action or inaction shall impair or otherwise affect Senior Creditor's rights hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. This Agreement shall bind and benefit any successors or assignees of Subordinated Creditor and Senior Creditor. This Agreement is solely for the benefit of Subordinated Creditor and Senior Creditor and not for the benefit of Borrower or any other party. Subordinated Creditor further agrees that if Borrower is in the process of refinancing a portion of the Senior Debt with a new lender, Subordinated Creditor shall enter into a new subordination agreement with the new lender on substantially identical terms and conditions as this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Subordinated Creditor represents and warrants to Senior Creditor that the terms and conditions of this Agreement have been authorized by all necessary action on the part of the Subordinated Creditor and Borrower, and that the individuals signing on behalf of Subordinated Creditor and Borrower have all necessary approval and authority to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of Texas, without regard to principles of conflicts of law. THE PARTIES HERETO HERBY WAIVE ANY RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN, INCLUDING CLAIMS BASED ON CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER COMMON LAW OR STATUTORY BASES. Subordinated Creditor submits to the exclusive jurisdiction of the state and federal courts located in Midland County, Texas, for any claim or cause of action based upon or arising out of this Agreement or any transaction contemplated herein, including claims based on contract, tort, breach of duty and all other common law or statutory bases. If the jury waiver set forth in this Section is not enforceable, then any dispute, controversy or claim arising out of or relating to this Agreement or any of the transactions contemplated herein will be finally settled by binding arbitration in Midland, Texas in accordance with the then-current Commercial Arbitration Rules of the American Arbitration Association by one arbitrator appointed in accordance with said rules. The arbitrator shall apply Texas law to the resolution of any dispute, without reference to rules of conflicts of law or rules of statutory arbitration. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Notwithstanding the foregoing, the parties may apply to any court of competent jurisdiction for preliminary or interim equitable relief, or to compel arbitration in accordance with this paragraph. The expenses of the arbitration, including the arbitrator's fees and expert witness fees, incurred by the parties to the arbitration, may be awarded to the prevailing party, in the discretion of the arbitrator, or may be apportioned between the parties in any manner deemed appropriate by the arbitrator. Unless and until the arbitrator decides that one party is to pay for all (or a share) of such expenses, both parties shall share equally in the payment of the arbitrator's fees as and when billed by the arbitrator. The foregoing notwithstanding, if the Subordinated Creditor, the Borrower or both, contrary to this Agreement, make, attempt to or threaten to allow the Subordinated Creditor to exercise its remedies against the Borrower under the Loan Documents, or make any payment or take any action contrary to this Agreement, Senior Creditor may restrain or enjoin the Subordinated Creditor and the Borrower from so doing, it being expressly understood and agreed by the Subordinated Creditor and the Borrower that: (i) the Senior Debtor's damages from their actions may at that time be difficult to ascertain and may be irreparable, and (ii) the Subordinated Creditor and the Borrower waive any defense or claim that the Senior Creditor cannot demonstrate damages or can be made whole by the awarding of damages.

Subordination Agreement

Page 4 of 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. This Agreement represents the entire agreement with respect to the subject matter hereof, and supersedes all prior negotiations, agreements and commitments. Subordinated Creditor is not relying on any representations by Senior Creditor or Borrower in entering into this Agreement, and Subordinated Creditor has kept and will continue to keep itself and Senior Creditor fully apprised of the financial and other condition of Borrower. This Agreement may be amended only by written instrument signed by Subordinated Creditor, Senior Creditor, and Borrower. In case any one or more of the provisions contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. In the event of any legal action to enforce the rights of a party under this Agreement, the party prevailing in such action shall be entitled, in addition to such other relief as may be granted, all reasonable costs and expenses, including reasonable attorneys' fees, incurred in such action.

***[Balance of Page Intentionally Left Blank]***

Subordination Agreement

Page 5 of 6

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

---

| | | | |
|:---|:---|:---|:---|
| **SUBORDINATED CREDITOR:** | **SUBORDINATED CREDITOR:** | **SENIOR CREDITOR:** | **SENIOR CREDITOR:** |
| | | **Panther Bridge LLC** | **Panther Bridge LLC** |
| By: | /s/ Gregory McCabe | By: | /s/ Greg McCabe, Jr. |
|  | **GREGORY MCCABE** |  | Name: /s/ Greg McCabe, Jr. |
|  | Individually |  | Title: Managing Member |
| Address for Notice: | Address for Notice: | Address for Notice: | Address for Notice: |
| 500 W. Texas Ave., Suite 890 | 500 W. Texas Ave., Suite 890 | 500 W. Texas Ave., Suite 890 | 500 W. Texas Ave., Suite 890 |
| Midland, Texas 79701 | Midland, Texas 79701 | Midland, Texas 79701 | Midland, Texas 79701 |
|  |  | Attn.: Greg McCabe, Jr. | Attn.: Greg McCabe, Jr. |

---

---

| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| **NEXT BRIDGE HYDROCARBONS, INC** | **NEXT BRIDGE HYDROCARBONS, INC** |
| **By:** | **/s/ Gregory McCabe** |
| **Name: Gregory McCabe** | **Name: Gregory McCabe** |
| **Title: CEO** | **Title: CEO** |
| Address for notices purposes: | Address for notices purposes: |
| 500 W. Texas Ave., Suite 890 | 500 W. Texas Ave., Suite 890 |
| Midland, Texas 79701 | Midland, Texas 79701 |

---

Subordination Agreement

Page 6 of 6

## Exhibit 10.3

**Exhibit 10.3**

---

| |
|:---|
| **ASSIGNMENT OF NET PROFITS INTEREST AND IRREVOCABLE OPTION TO** |
| **CONVERT TO WORKING INTEREST** |

---

---

| | | |
|:---|:---|:---|
| STATE OF LOUISIANA | § |  |
|  | § | KNOW ALL MEN BY THESE PRESENTS: |
| PARISH OF ACADIA | § |  |

---

THAT, NEXT BRIDGE HYDROCARBONS, INC., a Nevada corporation, whose address is 500 W. Texas Avenue, Midland, Texas ("<u>Assignor</u>"), for One Hundred Dollars ($100.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, subject to the exception and reservations set forth herein, has BARGAINED, GRANTED, SOLD, TRANSFERRED, ASSIGNED and CONVEYED, and does by these presents BARGAIN, GRANT, SELL, TRANSFER, ASSIGN and CONVEY to PANTHER BRIDGE, LLC, whose address is 500 W. Texas Avenue, Midland, Texas, hereinafter referred to as "<u>Assignee</u>", a 1/8th (12.50%) of 8/8ths Net Profits Interest (as defined below) in and to all the interests that Assignor has acquired, or may in the future acquire, in the oil, gas and mineral leases and any future wells drilled thereon as described in the attached **Annex A**, such leases being in hereinafter collectively called the "<u>Leases</u>".

"Net Profits Interest" means the gross proceeds actually received by Assignor from the sale of oil, gas, and other hydrocarbons produced and saved from the Leases, less the Allowable Costs, as defined below.

"Allowable Costs" means the actual and reasonable costs, expenses, and charges attributable to the Leases that fall into the following categories: all direct costs of operating and maintaining wells, facilities, and equipment; workover costs ; severance, ad valorem, and production taxes imposed by governmental authorities; gathering, treating, processing, and transportation costs from the wellhead to the point of sale, to the extent borne by the Assignor; insurance premiums applicable to operations; plugging and abandonment costs and related site restoration expenses; and third-party service costs necessary to conduct operations. No other costs—including drilling delay payments on the Leases, drilling, completion, and plugging and abandonment, general overhead costs, charges, or deductions—shall be included unless agreed to in writing by both parties.

Payments, if any, shall be made to Assignee within 30 days after the end of each calendar quarter and shall be accompanied by a statement showing the gross proceeds received, the itemized allowable costs, and the calculation of net profits. The Assignee shall have the right, at its sole cost, to audit the Assignor's books and records relating to the interest not more than once annually, upon thirty (30) days' prior written notice. Assignee has the option, but not the obligation, to make payments more frequently than provided by this paragraph.

To the extent allowed by law, Assignor hereby assigns and conveys to Assignee, to the fullest extent permitted by law, all rights to any and all federal, state, and local tax benefits, deductions, credits, and other allowances attributable to such drilling and completion costs, including, without limitation, all tangible drilling costs and intangible drilling costs, as those terms are defined tangible drilling costs and intangible drilling costs, as those terms are used for federal income tax purposes under the Internal Revenue Code and applicable Treasury Regulations. The parties acknowledge and agree that, to the extent allowed by law, Assignee shall be entitled to claim and utilize such tax benefits as if Assignee had directly incurred and paid such costs, and Assignor shall cooperate in executing and delivering any documents reasonably necessary to evidence or perfect Assignee's entitlement thereto.

**Assignee shall have the irrevocable one-time option, at any time while Assignor itself (but not any successors) own a working interest in the Leases, to convert any portion of the Net Profits Interest conveyed herein from a net profits interest to an undivided working interest of equal percentage to the amount of the Net Profits Interest converted, in the properties described herein (the "Conversion Option"). The Conversion Option shall be exercised by delivering written notice to Assignor specifying the effective date of conversion, which shall be no earlier than thirty (30) days after receipt of such notice by Assignor. Concurrently with delivery of such notice, Assignee shall execute, acknowledge, and file for record in the conveyance records of each parish in which the properties are located a Notice of Conversion substantially in the form attached hereto as Annex B. Upon the effective date of conversion, the Interest shall thereupon be deemed an undivided working interest in and to the properties, with Assignee succeeding to all rights and obligations of a working interest owner, including the obligation to pay its proportionate share of all costs and expenses of development, operation, and maintenance accruing from and after the effective date of conversion. The parties agree that the Conversion Option is a covenant running with the land and is binding upon and inures to the benefit of the parties hereto and their respective successors and assigns.**

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TO HAVE AND TO HOLD said interests unto Assignee, its successors and assigns, forever, subject to (i) those matters that are subject to Assignor's warranty of title below, (ii) all valid and existing matters of public record affecting Assignor's interest in the Leases and filed of record, (iii) that certain Participation Agreement dated March 27, 2024, between Next Bridge Hydrocarbons, Inc., and Magnetar Exploration, L.P. covering the Leases (the "Participation Agreement"), and (iv) that certain Operating Agreement attached to and made a part of the Participation Agreement, to which reference is here made for all purposes.

Except as provided in the Participation Agreement, prior to exercise of the Conversion Option, Assignee, its successors and assigns, shall never be under any obligation to Assignor to maintain the Leases in force and effect by the payment of rentals, the drilling of wells, the production of minerals or otherwise; it being understood that the Leases may be released in whole or in part without consent, approval, or joinder of Assignor, and that Net Profits Interest therein shall be paid and delivered to Assignee only if, as, and when oil or gas or other minerals are produced on the lands under the terms of the Leases.

Assignor warrants title to the Leases as to all acts and claims made by, through and under Assignor, but not otherwise, subject to the hereinabove set forth instruments and agreements, and Assignor hereby grants and transfers to Assignee, its successors and assigns, to the extent so transferable, the benefit of and the rights to enforce the covenants and warranties, if any, which Assignor may be entitled to enforce against Assignor's predecessors in title, with full rights of substitution and subrogation thereto.

Assignor covenants and agrees that, if required, Assignor will obtain consents to the assignment implemented by this instrument from all lessors under the Subject Leases whose leases include a requirement of their consent to any assignment of their lease, and Assignor will provide to Assignee all such executed consents.

The parties hereto will execute and deliver all such other and additional instruments, notices, releases and other documents and will do and perform all such other acts as may be necessary or advisable to assure to such parties, and their successors and assigns, all of the rights and interests herein provided.

INTENTIONALLY BLANK—SIGNATURES FOLLOW

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IN WITNESS WHEREOF, this instrument is executed in the presence of the undersigned competent witnesses as of this 20<sup>th</sup> day of August, 2025.

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| | | |
|:---|:---|:---|
| **WITNESSES:** | **ASSIGNOR:** | **ASSIGNOR:** |
|  | **NEXT BRIDGE HYDROCARBONS, INC.** | **NEXT BRIDGE HYDROCARBONS, INC.** |
| Print name: |  |  |
|  | By: | /s/ Gregory McCabe |
|  | Gregory McCabe | Gregory McCabe |
| Print name: | Manager | Manager |
| **WITNESSES:** | **ASSIGNEE:** | **ASSIGNEE:** |
|  | **PANTHER BRIDGE LLC** | **PANTHER BRIDGE LLC** |
| Print name: |  |  |
|  | By: | /s/ Gregory McCabe, Jr. |
|  | Gregory McCabe, Jr. | Gregory McCabe, Jr. |
| Print name: | Manager | Manager |

---

---

| | |
|:---|:---|
| STATE OF TEXAS | § |
|  | § |
| COUNTY OF MIDLAND | § |

---

BEFORE ME, the undersigned Notary Public, on this day personally appeared Greg McCabe, known to me to be the person whose name is subscribed to the foregoing instrument, who, being by me duly sworn, did say that he is the Chairman and CEO of NEXT BRIDGE HYDROCARBONS INC., a Nevada corporation, and that the instrument was signed and sealed in behalf of the corporation by authority of its Board of Directors and that Greg McCabe acknowledged the instrument to be the free act and deed of the corporation and that the corporation has no corporate seal.

Dated: _____________________, 2025.

  <br> [stamp] Notary Public, State of Texas <br>

---

| | |
|:---|:---|
| STATE OF TEXAS | § |
|  | § |
| COUNTY OF HARRIS | § |

---

BEFORE ME, the undersigned Notary Public, on this day personally appeared Gregory McCabe, Jr., known to me to be the person whose name is subscribed to the foregoing instrument, who, being by me duly sworn, did say that he is the Manager of PANTHER BRIDGE, LLC, and that the instrument was signed and sealed in behalf of the limited liability company by authority of its Members and that Gregory McCabe, Jr. acknowledged the instrument to be the free act and deed of the limited liability company as general partner of the limited partnership and that the limited partnership has no corporate seal.

Dated: _____________________, 2025.

  <br> [stamp] Notary Public, State of Texas

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**ANNEX A**

<u>The Leases</u>

All in Acadia Parish

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**PANTHER LEASE SCHEDULE** | &nbsp;&nbsp;**PANTHER LEASE SCHEDULE** | &nbsp;&nbsp;**PANTHER LEASE SCHEDULE** | &nbsp;&nbsp;**PANTHER LEASE SCHEDULE** | &nbsp;&nbsp;**PANTHER LEASE SCHEDULE** | &nbsp;&nbsp;**PANTHER LEASE SCHEDULE** | &nbsp;&nbsp;**PANTHER LEASE SCHEDULE** | &nbsp;&nbsp;**PANTHER LEASE SCHEDULE** |
| &nbsp;&nbsp;**Contact Name** | &nbsp;&nbsp;**Date of<br> Lease** | &nbsp;&nbsp;**Recording <br> Date** | &nbsp;&nbsp;**Gross <br> Ac** | &nbsp;&nbsp;**Net <br> Ac** | &nbsp;&nbsp;**Instrument <br> number** | &nbsp;&nbsp;**Book** | &nbsp;&nbsp;**Page** |
| &nbsp;&nbsp;Adam Estate Properties, LLC | &nbsp;&nbsp;03/10/22 | &nbsp;&nbsp;6/29/22 | &nbsp;&nbsp;416.17 | &nbsp;&nbsp;416.17 | &nbsp;&nbsp;936293 | &nbsp;&nbsp;E73 | &nbsp;&nbsp;837 |
| &nbsp;&nbsp;David Chad & Marialine Trahan Murrell | &nbsp;&nbsp;09/07/22 | &nbsp;&nbsp;9/19/22 | &nbsp;&nbsp;12.2 | &nbsp;&nbsp;12.2 | &nbsp;&nbsp;938497 | &nbsp;&nbsp;J73 | &nbsp;&nbsp;68 |
| &nbsp;&nbsp;Jerome Bradley Comier & Barbara Broussard Cormier | &nbsp;&nbsp;02/25/22 | &nbsp;&nbsp;6/29/22 | &nbsp;&nbsp;14.3 | &nbsp;&nbsp;14.3 | &nbsp;&nbsp;936295 | &nbsp;&nbsp;E73 | &nbsp;&nbsp;847 |
| &nbsp;&nbsp;Susan Ann Breaux | &nbsp;&nbsp;02/17/22 | &nbsp;&nbsp;6/29/22 | &nbsp;&nbsp;35.37 | &nbsp;&nbsp;35.37 | &nbsp;&nbsp;936296 | &nbsp;&nbsp;E73 | &nbsp;&nbsp;852 |
| &nbsp;&nbsp;Jared W. Medus, etux | &nbsp;&nbsp;03/31/22 | &nbsp;&nbsp;6/29/22 | &nbsp;&nbsp;1.123 | &nbsp;&nbsp;1.123 | &nbsp;&nbsp;936298 | &nbsp;&nbsp;E73 | &nbsp;&nbsp;862 |
| &nbsp;&nbsp;Deanna Richard Spell | &nbsp;&nbsp;04/08/22 | &nbsp;&nbsp;6/29/22 | &nbsp;&nbsp;10 | &nbsp;&nbsp;10 | &nbsp;&nbsp;936299 | &nbsp;&nbsp;E73 | &nbsp;&nbsp;867 |
| &nbsp;&nbsp;Dexter Paul Guidry | &nbsp;&nbsp;04/08/22 | &nbsp;&nbsp;6/29/22 | &nbsp;&nbsp;1.358 | &nbsp;&nbsp;1.358 | &nbsp;&nbsp;936300 | &nbsp;&nbsp;E73 | &nbsp;&nbsp;872 |
| &nbsp;&nbsp;Eric Lawrence Menard, et ux | &nbsp;&nbsp;04/20/22 | &nbsp;&nbsp;6/29/22 | &nbsp;&nbsp;8.53 | &nbsp;&nbsp;8.53 | &nbsp;&nbsp;936301 | &nbsp;&nbsp;E73 | &nbsp;&nbsp;877 |
| &nbsp;&nbsp;Chester John Simon, Jr. etux | &nbsp;&nbsp;04/20/22 | &nbsp;&nbsp;6/29/22 | &nbsp;&nbsp;25 | &nbsp;&nbsp;25 | &nbsp;&nbsp;936302 | &nbsp;&nbsp;E73 | &nbsp;&nbsp;882 |
| &nbsp;&nbsp;Patrick Dale Leleux, Sr. et al | &nbsp;&nbsp;05/09/22 | &nbsp;&nbsp;6/29/22 | &nbsp;&nbsp;89.488 | &nbsp;&nbsp;89.488 | &nbsp;&nbsp;936303 | &nbsp;&nbsp;E73 | &nbsp;&nbsp;887 |
| &nbsp;&nbsp;Marcus Keith Leleux, etux | &nbsp;&nbsp;05/09/22 | &nbsp;&nbsp;6/29/22 | &nbsp;&nbsp;2.28 | &nbsp;&nbsp;2.28 | &nbsp;&nbsp;936304 | &nbsp;&nbsp;E73 | &nbsp;&nbsp;892 |
| &nbsp;&nbsp;Patrick Dale Leleux, Sr. et al | &nbsp;&nbsp;05/09/22 | &nbsp;&nbsp;6/29/22 | &nbsp;&nbsp;1.06 | &nbsp;&nbsp;1.06 | &nbsp;&nbsp;936305 | &nbsp;&nbsp;E73 | &nbsp;&nbsp;897 |
| &nbsp;&nbsp;Paul Wayne Dailey | &nbsp;&nbsp;06/23/22 | &nbsp;&nbsp;6/29/22 | &nbsp;&nbsp;1.21 | &nbsp;&nbsp;1.21 | &nbsp;&nbsp;938494 | &nbsp;&nbsp;E73 | &nbsp;&nbsp;53 |
| &nbsp;&nbsp;Cody Winston & Michelle L. Guillory | &nbsp;&nbsp;07/15/22 | &nbsp;&nbsp;9/19/22 | &nbsp;&nbsp;3 | &nbsp;&nbsp;3 | &nbsp;&nbsp;938496 | &nbsp;&nbsp;E73 | &nbsp;&nbsp;63 |
| &nbsp;&nbsp;Cody Winston & Michelle L. Guillory | &nbsp;&nbsp;07/15/22 | &nbsp;&nbsp;9/19/22 | &nbsp;&nbsp;3 | &nbsp;&nbsp;3 | &nbsp;&nbsp;938495 | &nbsp;&nbsp;E73 | &nbsp;&nbsp;58 |
| &nbsp;&nbsp;Adam Estate Properties, LLC, et al | &nbsp;&nbsp;09/22/22 | &nbsp;&nbsp;9/19/22 | &nbsp;&nbsp;4.74 | &nbsp;&nbsp;4.74 |  |  |  |

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**ANNEX B**

<u>Form of Notice of Conversion</u>

**NOTICE OF CONVERSION**

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| | | |
|:---|:---|:---|
| STATE OF LOUISIANA | § |  |
|  | § | KNOW ALL MEN BY THESE PRESENTS: |
| PARISH OF ACADIA | § |  |

---

THAT, PANTHER BRIDGE, LLC, whose address is 500 W. Texas Avenue, Midland, Texas ("<u>Assignee</u>"), is the present owner of that certain net profits interest (the "<u>Interest</u>") created under that certain Assignment of Net Profits Interest dated August ___, 2025, from NEXT BRIDGE HYDROCARBONS, INC., a Nevada corporation, whose address is 500 W. Texas Avenue, Midland, Texas ("<u>Assignor</u>"), recorded under Instrument No. __________ in the Conveyance Records of Acadia Parish, Louisiana, and affecting the oil, gas, and mineral leases and lands described therein (the "Properties").

Pursuant to the irrevocable option contained in said Assignment, Assignee hereby elects to convert the Interest to a 1/6th (16.66%) of 8/8ths working interest in and to the Leases that are listed on **Annex A** [append Leases in Annex A], effective as of ____________, 20__. From and after the effective date, Assignee shall own an undivided working interest in the Properties with all rights and obligations appurtenant thereto, including the obligation to pay its proportionate share of all costs and expenses of development, operation, and maintenance.

Assignee's working interest is subject to (i) those matters that are subject to Assignor's warranty of title below, (ii) all valid and existing matters of public record affecting Assignor's interest in the Leases and filed of record, (iii) that certain Participation Agreement dated March 27, 2024, between Next Bridge Hydrocarbons, Inc., and Magnetar Exploration, L.P. covering the Leases (the "Participation Agreement"), and (iv) that certain Operating Agreement attached to and made a part of the Participation Agreement, to which reference is here made for all purposes.

This Notice is executed and filed of record to give public notice of such conversion.

THUS DONE AND SIGNED on this ___ day of ____________, 20__, in the presence of the undersigned competent witnesses and me, Notary Public, after due reading of the whole.

---

| | |
|:---|:---|
| **WITNESSES:** | **ASSIGNEE:** |
|  | **PANTHER BRIDGE LLC** |
| Print name: |  |

---

By:

  Gregory McCabe, Jr. <br> Print name: Manager <br>

---

| | |
|:---|:---|
| STATE OF TEXAS | § |
|  | § |
| COUNTY OF HARRIS | § |

---

BEFORE ME, the undersigned Notary Public, on this day personally appeared Gregory McCabe, Jr., known to me to be the person whose name is subscribed to the foregoing instrument, who, being by me duly sworn, did say that he is the Manager of PANTHER BRIDGE, LLC, and that the instrument was signed and sealed in behalf of the limited liability company by authority of its Members and that Gregory McCabe, Jr. acknowledged the instrument to be the free act and deed of the limited liability company as general partner of the limited partnership and that the limited partnership has no corporate seal.

Dated: _____________________, 2025.

  <br> [stamp] Notary Public, State of Texas

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