Amendment to Merger Agreement and Promissory Note

Air Industries Group (AIR) entered into an amendment to its Merger Agreement with Tenax Aerospace Acquisition, LLC. This amendment modifies the definition of AIR Net Indebtedness to mitigate the impact of an advance and a promissory note on the number of AIR shares to be issued. The advance of $1,971,070 was received by AIR's subsidiary, Air Industries Machining Corp. (AIM), from a customer. AIM will use this advance for supplies and manufacturing, with repayment due by November 30, 2026. The customer has the right to offset amounts due against future product deliveries. A related promissory note outlines the terms of this advance, including potential interest accrual upon an event of default and repayment or set-off provisions.