On June 21, 2024 (the Amendment Closing Date"), Beyond Air, Inc. (the Company") and its wholly owned subsidiary, Beyond Air Ltd. (the Guarantor"), entered into that certain First Amendment to Loan Documents (the First Amendment"), with Avenue Capital Management II, L.P., as administrative agent and collateral agent (the Agent"), Avenue Venture Opportunities Fund, L.P., a Delaware limited partnership (Avenue"), and Avenue Venture Opportunities Fund II, L.P, a Delaware limited partnership (Avenue 2" and, together with Avenue, the Lenders"), which amends (i) that certain Loan and Security Agreement (the Agreement"), dated as of June 15, 2023 (the Initial Closing Date"), among the Company, as borrower, the Guarantor, the Agent and the Lenders and (ii) that certain Supplement to the Agreement (collectively with the Agreement, the Loan Agreement"), dated as of the Initial Closing Date, among the Company, the Guarantor, the Agent and the Lenders. As previously disclosed, the Loan Agreement provides for senior secured term loans (the Loans") in an aggregate principal amount up to $40.0 million, with (i) $17.5 million advanced on the Initial Closing Date (Tranche 1"), (ii) up to $10.0 million which may be advanced upon the request of the Company between April 1, 2024 and September 30, 2024, subject to the Company having achieved total revenue derived from the sale of LungFit PH (other than licensing revenue) (Product Revenue") for the three-month period prior to funding of not less than 85% of projected Product Revenue for such period (Tranche 2"), and (iii) up to $12.5 million which may be advanced after April 1, 2024 (the Discretionary Tranche"), subject to (a) the Agent and Lenders having received investment committee approval and (b) the Company and Lenders having mutually agreed to draw and fund, respectively, such amount. The Loans are due and payable on June 1, 2027 (the Maturity Date").

The Loans bear interest at a rate per annum (subject to increase during an event of default) equal to the greater of (i) the prime rate, as published by the Wall Street Journal from time to time, plus 3.75% and (ii) 12.00%. Following the expiration of an initial interest-only period, the Loan principal is repayable in equal monthly installments. Pursuant to the First Amendment, the expiration date of the interest-only period was extended from December 15, 2024 (with amortization payments commencing on January 1, 2025) to June 30, 2025 (with amortization payment commencing on July 1, 2025), with the possibility of further deferring principal payments an additional 12 months contingent upon the Company's achievement of at least $40.0 million of product revenue in the fiscal year ending March 31, 2025 and whether the Company has fully drawn Tranche 2. In connection with the First Amendment, the Company paid an amendment fee of $87,500, with an additional $87,500 final payment fee to be due upon the Maturity Date or any earlier date of prepayment in full of the Loans.