On March 1, 2024, Enphys Acquisition Corp. and Enphys Acquisition Sponsor LLC, entered into a First Amendment to Promissory Note (the ?Amendment?) to amend the promissory note issued by the Company to Payee on October 30, 2023 as described in the Current Report on Form 8-K filed by the Company with the U.S. Securities and Exchange Commission on October 30, 2023. The Amendment extends the date on which the 2023 Promissory Note will terminate and all related indebtedness under the 2023 Promissory Note will be deemed canceled if an initial business combination has not occurred from July 1, 2024 to December 31, 2024.

On March 31, 2024, the Company issued a promissory note to the Payee, pursuant to which the Company may borrow an aggregate of $100,000 from the Payee in order to fund costs and expenses related to the Company?s daily operations and due diligence in connection with a potential business combination and which the Company shall repay on the date on which the Company consummates an initial business combination. If the Company has not consummated an initial business combination on or prior to December 31, 2024, then Payee shall have no recourse against the Company and all outstanding amounts of principal and accrued and unpaid interest payable under the Variable Rate Promissory Note shall immediately terminate and all related indebtedness shall be deemed cancelled. Under the terms of the Variable Rate Promissory Note, the Company may request from time to time prior to the maturity date, up to $100,000 in drawdowns on the principal (each, a ?Drawdown Request?).

Each Drawdown Request must state the amount to be drawn down, and must not be an amount less than $10,000 unless agreed upon by the Company and the Payee. Payee shall fund each Drawdown Request no later than (3) business days after receipt of a Drawdown Request; provided, however, that the maximum amount of drawdowns outstanding under the Variable Rate Promissory Note at any time may not exceed $100,000. No fees, payments or other amounts shall be due to the Payee in connection with, or as a result of, any Drawdown Request by the Company.

The interest rate applicable to drawdowns pursuant to the Variable Rate Promissory Note is equal to Term SOFR (as defined in the Variable Rate Promissory Note) for the Interest Period (as defined in the Variable Rate Promissory Note) plus 300 basis points (3%) per annum. The Variable Rate Promissory Note may be accelerated upon the occurrence of an Event of Default (as defined in the Variable Rate Promissory Note to include the failure to make required payments, voluntary bankruptcy and involuntary bankruptcy).