Document:

EX-10.18

 Exhibit 10.18 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF
PUBLICLY DISCLOSED. THE OMISSIONS HAVE BEEN INDICATED BY “[***].” 
 FOR EXECUTION 

SETTLEMENT AGREEMENT, RELEASE 

AND AMENDMENT TO LDA 

This Settlement Agreement, Release and Amendment to LDA (this “Agreement”) is entered into as of June 28, 2021 (the
“Amendment Effective Date”) by and between Teva Pharmaceuticals International GmbH, a company organized under the laws of Switzerland, having its principal place of business at Schluselstrasse 12, Rapperswil–Jona 8645, Switzerland
(“Teva”), and Alvotech Hf., a corporation organized under the laws of Iceland, having its principal place of business at Saemundargotu 15-19, 101, Reykjavik, Iceland (“Alvotech”). Teva and
Alvotech shall be referred to collectively as the “Parties” and individually as a “Party.” 

RECITALS 

WHEREAS, on August 5, 2020, the Parties entered into several agreements, including, among others, a License & Development
Agreement (“LDA”) and a Product Supply Agreement (“PSA”), pertaining to the development and commercialization of biosimilar products; 

WHEREAS, on March 19, 2021, AbbVie Inc. and AbbVie Biotechnology Ltd. (collectively, “AbbVie”), filed a complaint
(“19 March Complaint”) in the U.S. District Court for the Eastern Division of the Northern District of Illinois asserting trade secret misappropriation claims against Alvotech (the “Misappropriation Claims”); 

WHEREAS, Alvotech has represented to Teva that the Representations, Warranties and Covenants contained in Section 10.1 of the LDA
remain accurate; 
 WHEREAS, Alvotech has disclosed to Teva the following complaints: (i) the 19 March Complaint,
(ii) the complaint filed by AbbVie in the U.S. District Court for the Eastern Division of the Northern District of Illinois on 27 April 2021, (iii) the complaint filed by Alvotech and Alvotech USA Inc. in the U.S. District Court for the
Eastern District of Virginia on May 11, 2021, and (iv) the complaint filed by AbbVie in the U.S. District Court for the Eastern Division of the Northern District of Illinois on 28 May 2021. 

WHEREAS, Alvotech has represented and hereby continues to represent to Teva, pursuant to Section 9.1 of the LDA, that, to the best
of Alvotech’s knowledge, and in all material respects, each and every one of the allegations pertaining to the Misappropriation Claims is false; 

WHEREAS, Teva has relied, and continues to reasonably rely on the foregoing representations, including but not limited to, for the
purpose of entering into this Agreement; 
 WHEREAS, on April 28, 2021, Alvotech submitted an invoice to Teva in connection with
contractual amounts set forth in Section 6.1.1 of the LDA, the invoice being (i) $[***] for the [***] as described in Section 6.1.1(b) and paragraph (1) of Section 6.2 of the LDA (the “[***] Milestone”) and (ii)
$25 million for the remaining portion of the License Fee (the “Remainder Upfront Fee”), for an aggregate amount of $[***]; 

  
 1 

 WHEREAS, Teva contested the payment of the [***] Milestone in its entirety and the
Remainder Upfront Fee, in part to the extent pertaining to [***], for the reasons stated in writing to and discussed with representatives of Alvotech; 

WHEREAS, Teva paid Alvotech $20 million on May 7, 2021 with respect to the Remainder Upfront Fee; 

WHEREAS, following further written agreement between the Parties on June 3, 2021 (the “June 3 Letter Agreement”), the
terms of which remain in effect and are not superseded by this Agreement, Teva paid Alvotech on June 3, 2021 the remaining $5 million of the Remainder Upfront Fee; 

WHEREAS, by this Agreement, the Parties desire to resolve any and all disputes arising out of, relating to, or in any way connected to
the payment of the [***] Milestone under the terms and conditions of the LDA, including the timeliness and amounts of such payments (the “Matters in Dispute”); 

WHEREAS, this Agreement is entered into for purposes of compromise and settlement of the Matters in Dispute only; 

NOW, THEREFORE, in consideration of the foregoing, and the mutual promises and representations contained in this Agreement, and in
exchange for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows: 

AGREEMENT AND MUTUAL RELEASES 

 

	1.	 Definitions. Capitalized terms used and not otherwise defined or amended herein shall have the
meanings attributed to them in the LDA. 

  

	2.	 No Admissions. This Agreement is being entered into solely to avoid lengthy, costly and
time-consuming disputes. By entering into this Agreement, no Party is admitting any liability or wrongdoing whatsoever, and each Party continues to deny any and all liability and wrongdoing. This Agreement shall not be construed as an admission by
either Party as to the merits of any position adopted by the other Party or any other entity. 

  

	3.	 Payment. In connection with this Agreement, Teva shall have the obligation to pay Alvotech as
follows: 

  

	(a)	 Within [***] days following the Amendment Effective Date, Teva shall pay Alvotech $10 million, which shall
be deemed to satisfy the obligation of Teva to pay the [***] Milestone; and 

  

	(b)	 With respect to the [***], Teva shall pay Alvotech an additional $[***], resulting in the payment of a total of
$[***], inclusive of the $[***] for the Milestone Event described in paragraph (2) of Section 6.2 of the LDA within [***] calendar days of such [***]; provided, however, that such [***] shall be deemed to have occurred, and the applicable
Milestone Payment will be deemed to be payable in the case of the $[***] described in paragraph (2) of Section 6.2 of the LDA and the additional $[***], only in the event that [***]. 

 The foregoing payments will be made in United States dollars by wire transfer to an account
designated in writing by Alvotech. Any fees or payments due and payable to a Party under this Agreement that are not paid by the relevant Party within [***] days of when due shall bear interest at the annualized rate of the then prime rate (as
reported in the Wall Street Journal) plus [***] percent ([***]%). 
  

	4.	 Release.  

 

	(a)	 Subject to Teva complying with the terms of this Agreement, Alvotech, for itself and its Affiliates (having the
same definition in the Agreement as in the LDA), and their directors, managers, officers, employees, attorneys, agents, representatives, predecessors, successors and assigns, hereby fully and forever releases and discharges Teva and its Affiliates,
and their directors, managers, officers, employees, attorneys, agents, representatives, predecessors, successors and assigns, from any and all actions, suits, liabilities, debts, dues, sums of money, interest, accounts, reckonings, bonds, bills,
specialties, covenants, contracts, controversies, agreements, promises, torts, variances, trespasses, damages, judgments, extents, executions, claims, and demands whatsoever (collectively, “Claims”) arising from or in any way relating to
the Matters in Dispute as well with respect to any amounts as set forth in Section 6.1.1 of the LDA and already paid by Teva (collectively, the “Alvotech Released Claims”). 

 

	(b)	 Alvotech acknowledges that the release in this Agreement may include a release of claims, counterclaims,
demands, damages, debts, liabilities, attorneys’ fees, actions, causes of action, obligations and demands whatsoever, whether fixed or contingent, at law or in equity that are unknown or unsuspected with respect to the Matters in Dispute.
Alvotech hereby waives any common law or statutory doctrine or provision that limits the effect of a release of unknown or unsuspected claims, counterclaims, demands, damages, debts, liabilities, attorneys’ fees, actions, causes of action,
obligations and demands whatsoever, whether fixed or contingent, at law or in equity with respect to the Matters in Dispute. The release in this Agreement is to be interpreted as broadly as the law allows. 

 

	5.	 Covenant Not to Sue and Agreement to Indemnify. Alvotech agrees, on behalf of itself and its
Affiliates, and their directors, managers, officers, employees, attorneys, agents, representatives, predecessors, successors and assigns (i) that it will neither initiate nor continue any Claims that seek any relief based upon the Alvotech
Released Claims, provided that this shall not in any way affect the rights of Alvotech under, or to take any action in relation to the terms of, this Agreement, .and (ii) that it will not assign or otherwise transfer the Alvotech Released
Claims to any party Alvotech further agrees that it will indemnify Teva for any and all costs, charges or expenses, including but not limited to reasonable attorneys’ fees, incurred in connection with any breach of this Section 5.

	6.	 Further Amendment to the LDA and PSA. In addition to the modification of the Milestone Event and
Milestone Payment set forth in Section 2 above, each of the Parties hereby agrees that any reference to any of AVT02, AVT04, AVT05, AVT06, AVT16, or to the term Product, in relation to the terms: 

 

	 	(a)	 [***], and 

  

	 	(b)	 [***], 

shall mean and be deemed to require [***] for each of AVT02, AVT04, AVT05, AVT06, AVT16 or the term Product, as applicable, as specifically set
forth in Schedule 5 attached hereto, as the same may be amended by the Parties in writing from time to time (each such presentation being called a “Presentation” and collectively, “Presentations”, and all Presentations for
any particular Product being called “All Product Presentations”). 
 The Parties further agree that, if the reason a Milestone
Payment is not payable for a particular Product in respect of any Milestone Event described in paragraphs (1) to (6) of Section 6.2 of the LDA is because [***], then a percentage of the relevant Milestone Payment shall, nonetheless, be
paid, and the remaining percentage to be paid, in accordance with the following provisions: 
  

	 	(i)	 [***]; 

  

	 	(ii)	 [***]; 

  

	 	(iii)	 [***]; 

  

	 	(iv)	 [***]; 

  

	 	(v)	 [***]; 

  

	 	(vi)	 [***]; 

  

	 	(vii)	 [***]; 

  

	 	(viii)	 [***]; and 

  

	 	(ix)	 [***]. 

The Parties further agree in respect of the Milestone Event described in paragraph (7) of Section 6.2 of the LDA that no Milestone
Payment shall become due and payable unless and until, [***]. 
 The Parties further agree that the definition of the term
“Product” in the PSA is hereby amended, on a Product-by-Product basis, to incorporate [***]. 

 

	7.	 Representations, Warranties and Covenants of the Parties. The Parties represent and
warrant to one another that: 

  

	(a)	 Such Party has the legal right, capacity and authority to enter into this Agreement; 

	(b)	 Such Party has taken all necessary corporate and legal actions, as applicable, to duly approve the making and
performance of this Agreement; 

  

	(c)	 This Agreement has been validly executed and delivered by such Party and constitutes its valid and binding
obligation, enforceable against the Party in accordance with the terms hereof; 

  

	(d)	 Neither the execution nor performance of this Agreement by such Party constitutes or will constitute a
violation or breach of such Party’s charter or bylaws (or comparable documents, as applicable); 

  

	(e)	 Neither the execution nor the performance of this Agreement will constitute a violation or breach of any law,
order, injunction, judgment, statute or regulation applicable to such Party or constitutes or will constitute a material default (or would, with the passage of time or the giving of notice, or both, constitute such a default) under any material
contract, agreement or other instrument to which such Party is a party or by which it is bound; 

  

	(f)	 Such Party has not relied upon any document, statement, representation, promise, inducement, understanding or
information made or provided by any other Party or its representatives except as expressly set forth in this Agreement, and such Party has relied solely upon its own due diligence and independent judgment concerning this Agreement and the
Party’s decision to enter into this Agreement, except as set forth in this Agreement; 

  

	(g)	 Such Party has read this Agreement and fully understands all of its terms, covenants, conditions, provisions
and obligations and such Party believes that this Agreement is a fair, just and reasonable resolution of the Matters in Dispute; 

  

	(h)	 Such Party specifically acknowledges that this Agreement shall not be subject to any claim of impossibility or
mistake of fact, that it expresses a full and complete settlement between the Parties, and that regardless of the adequacy or inadequacy of the consideration described herein, this Agreement is intended to be a final and complete settlement of the
Matters in Dispute; 

  

	(i)	 Such Party has not assigned or transferred any Claim or interest in any claim that is the subject of the
releases in this Agreement; 

  

	(j)	 Alvotech hereby represents and warrants as of the date hereof that, to the best of its knowledge, the use,
making, manufacture, sale, vialing, batch release analytics, labeling and/or export of the Products do not and will not misappropriate any trade secrets, confidential information or other proprietary information of [***]; and 

 

	(k)	 As Teva may request once in any period of [***] months or as a condition precedent to any future agreements,
subject to any disclosures made in relation to events which, to the knowledge of Alvotech or its Affiliates, occur after the date of this Agreement, Alvotech will be required to again renew its representation to Teva during the pendency of the
Misappropriation Claims that the Representations and Warranties contained in Section 10.1 of the LDA with respect to the Misappropriation Claims, remain accurate and that, to the best of Alvotech’s knowledge, and in all material respects,
pursuant to Section 9.1 of the LDA, each and every one of the allegations pertaining to the Misappropriation Claims is false. 

	8.	 Multiple Counterparts. This Agreement: (i) may be executed in one or more counterparts, each
of which shall be deemed an original but all of which together will constitute one and the same instrument and shall be binding upon the person or entity executing the same; and (ii) may be executed by a signature page delivered by facsimile or
email, in which case the person or entity so executing this Agreement shall promptly thereafter deliver its originally executed signature page (but the failure to deliver an original shall not affect the binding nature of such person’s or
entity’s signature). 

  

	9.	 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of
the State of New York without regard to its conflict of laws provisions, including all matters of construction, validity, performance and enforcement. 

  

	10.	 Dispute Resolution. Any dispute, controversy or claim relating to the validity, enforcement or
interpretation of this Agreement shall be resolved in accordance with Section 13.6.1(b) of the LDA, it being agreed by both Parties that any dispute, controversy or claim relating to the validity, enforcement and interpretation of this
Agreement shall not be subject to Section 13.6.1(a) of the LDA. 

  

	11.	 No Modification. This Agreement may only be modified or amended by a writing dated after the date
hereof and signed by each of the Parties. 

  

	12.	 Construction.  

 

	(a)	 This Agreement shall be construed so that the word “including” means “including without
limitation;” and the singular shall include the plural and vice versa. 

  

	(b)	 Titles or headings contained in this Agreement are included only for ease of reference and will have no
substantive effect. 

  

	(c)	 None of the Parties will be entitled to have any language contained in this Agreement construed against another
because of the identity of the drafter. 

  

	13.	 Confidentiality. Neither of the Parties hereto shall issue, make or cause to be made any
disclosures regarding the terms of this Agreement without the written consent of the other Party, except that the Parties (i) may disclose the terms of this Agreement to attorneys, accountants and other advisors retained by the Party; and
(ii) may make such disclosures as may be required by applicable laws or regulations, provided that the disclosing Party notifies the other Party in writing of any such requirement and the intended disclosure at least [***] business days in
advance of any such disclosure. Either of the Parties may disclose the terms and conditions of this Agreement if such Party receives a subpoena or other process or order to produce this Agreement, provided that such Party shall, prior to any
disclosure to any third party, promptly notify the other Parties to this Agreement so that each Party has a reasonable opportunity to respond to such subpoena, process or order. The Party receiving a subpoena, process or order shall (in the first
instance) take no action contrary to the confidentiality provisions set forth above, and shall make reasonable efforts to respond only subject to the 

	 	
confidentiality designation available under a protective order in litigation. The Party objecting shall have the burden of defending against such subpoena, process or order. The Party receiving
the subpoena, process or order shall be entitled to comply with it, except to the extent that any other Party is successful in obtaining an order modifying or quashing it. 

 

	14.	 Severability. If any term or provision of this Agreement is held to be invalid, illegal or
contrary to public policy, such term or provision shall be modified to the extent necessary to be valid and enforceable and shall be enforced as modified; provided, however, that if no modification is possible such provision shall be deemed
stricken from this Agreement. In any case, the remaining provisions of this Agreement shall not be affected thereby. 

  

	15.	 No Waiver. Any waiver of any Party’s rights under this Agreement is only effective if in
writing signed by the Party to be charged or its duly authorized representative, and any such waiver shall only be effective for the specific matter waived and shall not be deemed to apply to any other conduct, provision or other matter.

  

	16.	 No Assignment. The Parties agree that they have not, and will not, sell, transfer or assign, or
purport to sell, transfer or assign, any Claim or interest in any claim that is the subject of the releases in this Agreement. 

  

	17.	 Entire Agreement. This Agreement, together with Schedule 5 hereto, and the LDA and the
PSA, each to the extent as amended hereby, as well as the June 3 Letter Agreement, contain the entire understanding of the Parties with respect to the subject matter hereof. 

 

	18.	 Notices. All notices and other communications hereunder shall be in writing, shall be sent by
Federal Express or other expedited courier service, and shall be deemed effective and duly given upon delivery to the other Party at the following addresses or to such other addresses as the Parties may notify one another of in accordance with the
provision of this Section: 

  

							
	            	 	If to Teva:	  	Teva Pharmaceuticals International GmbH	  	
		 		  	Schlüsselstrasse 12	  	
		 		  	Rapperswil–Jona 8645, Switzerland	  	
		 		  	Attn: General Manager	  	
			
		 	With a copy to each of:	  	
				
		 		  	Teva Pharmaceuticals	  	Teva Pharmaceuticals
		 		  	400 Interpace Parkway, #3	  	145 Brandywine Pkwy, West
		 		  	Parsippany, NJ 07054	  	Chester, PA 19380
		 		  	Attn: Doug Williams	  	Attn: Legal
			
		 	If to Alvotech: Alvotech Hf.	  	
				
		 		  	Saemundargotu 15-19, 101, Reykjavik, Iceland	  	
		 		  	Attn: CEO	  	
			
		 	With a copy to:	  	
				
		 		  	Alvotech Holdings SA	  	
		 		  	5 rue Heienhaff, L-1736 Senningerberg, Grand Duchy of Luxembourg
		 		  	Attn: General Counsel	  	

	19.	 Independent Legal Advice. This Agreement was negotiated between the Parties at arm’s length.
Teva and Alvotech acknowledge that they have each been advised by their own independently selected counsel and other advisors in connection with this Agreement. Teva and Alvotech further acknowledge that they enter into this Agreement solely on the
basis of advice from independently selected counsel and on the basis of their own independent investigation of all of the facts, laws and circumstances material to this Agreement or any provision hereof, and not in any manner or to any degree based
upon any statement or omission by any other party hereto or its counsel. 

 [SIGNATURE
PAGES FOLLOW] 

 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed in
their respective names by their duly authorized representatives as of the date and year written below. 
  

			
	ALVOTECH HF.
		
	By:	 	 /s/ Robert Wessman

		 	Name: Robert Wessman
		 	Title: Authorized Signatory

  

									
	TEVA PHARMACEUTICALS INTERNATIONAL GMBH
					
	By:	 	 /s/ Naama Bar Am
	 	                                      
      	 	By:	 	 /s/ Olaf Ulrich

		 	Name: Naama Bar Am	 		 		 	Name: Olaf Ulrich
		 	Title: President of the Managing Officers	 		 		 	Title: Member of the Management

 Schedule 5 

[***]EX-10.20

 Exhibit 10.20 

 
  

LEASE AGREEMENT 
  

 
 in respect of
part of Sæmundargata 15 - 19 
 BETWEEN 

FASTEIGNAFÉLAGIÐ SÆMUNDUR HF. 

(as Lessor) 
 AND 

ALVOTECH HF. 
 (as Lessee) 

 

 TABLE OF CONTENTS 

 
  
  

							
	 1.
	 	Leased Premises	  	 	3	 
	 2.
	 	Term	  	 	4	 
	 3.
	 	Lease – Amount and payment	  	 	4	 
	 4.
	 	Operational costs	  	 	5	 
	 5.
	 	Condition of the Leased Premises	  	 	5	 
	 6.
	 	Uses of the Leased Premises	  	 	6	 
	 7.
	 	The Lessor’s access to the Leased Premises	  	 	6	 
	 8.
	 	Improvements or changes of the Leased Premises	  	 	7	 
	 9.
	 	Damage to the Leased Premises	  	 	7	 
	 10.
	 	Property management service	  	 	7	 
	 11.
	 	Priority rights and extension	  	 	8	 
	 12.
	 	Sublease and assignment right	  	 	8	 
	 13.
	 	Signage	  	 	9	 
	 14.
	 	Binding and Entire Agreement	  	 	9	 
	 15.
	 	Other provisions	  	 	9	 
	 16.
	 	Notices	  	 	10	 

  
 2 

 LEASE AGREEMENT 

 
  

THIS LEASE AGREEMENT (the “Lease Agreement”) is made on November 15 2016. 

BETWEEN: 
  

	1.	 Fasteignafélagið Sæmundur hf., an Icelandic public limited company with reg. no.
591213-1130, having its offices at Sæmundargata 15-19, 101 Reykjavík, Iceland (referred to as the “Lessor”); and 

 

	2.	 Alvotech hf., an Icelandic public limited company with reg. no. 710113-0410, having its offices at
Sæmundargata 15-19, 101 Reykjavík, Iceland (hereinafter referred to as the “Lessee”); and 

the Lessor and the Lessee may hereinafter be referred to individually as “Party” and collectively as “Parties”. 

 

	1.	 Leased Premises 

 

	1.1.	 The Lessor agrees to lease to the Lessee and the Lessee agrees to lease from the Lessor a 12.962,4 m2 building for manufacturing, research, offices parking lots and underground parking garage located at Sæmundargata 15-19, Reykjavík, with the
property registration number 232-7931 (the “Leased Premises”) in accordance with the terms and conditions set out in this Lease Agreement. 

 

	1.2.	 The Leased Premises were originally allocated from the City of Reykjavík to the University of Iceland on
17 September 2013. Subsequently the University of Iceland entered into an agreement with Vísindagarðar Háskóla Íslands ehf., an Icelandic private limited company with reg. no. 420104-2350, having its offices at
Dunhagi 5, Reykjavík, (“VHÍ”), on 20 September 2013, in which the plot, where the Leased Premises are located, was leased to VHÍ. VHÍ subsequently entered into an agreement with the Lessee on
5 November 2013 in which the right to the plot and construction of real estate were transferred to the Lessee (that agreement along with its schedules and appendixes referred to as the “VHÍ Agreement”). The Lessee
subsequently assigned all its rights pursuant to the VHÍ Agreement to the Lessor on 11 February 2014. 

  
 3 

	2.	 Term 

  

	2.1.	 The term of this Lease Agreement commences on the date of the Lease Agreement (hereinafter referred to as the
“Commencement Date”) and terminates on 30 September 2038, unless it is extended in accordance with the terms of this Lease Agreement in which case it shall terminate at the end of the extension period (hereinafter referred to
as the “Termination Date”). 

  

	2.2.	 During the term from the Commencement Date until the Termination Date (the “Term”), this Lease
Agreement cannot be terminated. 

  

	2.3.	 Notwithstanding the provision of clause 2.2, the Parties shall each have the right to terminate this Lease
Agreement in case of a material default on behalf of the other Party in accordance with Chapter XII of the Rent Act No. 36/1994 (hereinafter referred to as the “Rent Act”). 

 

	3.	 Lease – Amount and payment 

 

	3.1.	 During the Term, the Lessee shall pay a monthly lease payment (the “Lease
Amount”) to the Lessor, in the amount of ISK 65,600,000. 

  

	3.2.	 The Lease Amount is price indexed with the Consumer Price Index (Ísl.: vísitala
neysluverðs), which is as at the date of this Lease Agreement is 438.5 points. The Lease Amount shall only adjust upwards in accordance with the monthly changes of the Consumer Price Index. 

 

	3.3.	 Furthermore, the Lease Amount shall be adjusted in line with the following formula.: 

Adjustment (increase) of Lease amount = Actual construction cost – 7,528 million 

130 
  

	3.4.	 All Lease Amount, as adjusted, shall be paid in monthly instalments in advance on the first day of each and
every calendar month of the Term. The Lessee shall deposit the Lease Amount on a monthly basis, into the following bank account: ###-##-####, and acknowledges that any
other form of payment than by cash into this bank account is inadequate. The Lease Amount cannot be paid by any form of set-off. 

 

	3.5.	 The Lessee agrees that the Leased Premises are subject to an optional registration (Ísl.:
frjáls skráning) with the Director of Internal Revenue in accordance with Regulation no. 577/1989, cf. the Value Added Tax Act no. 50/1988 and therefore agrees to pay value added tax (VAT) in addition to the Lease Amount as
stipulated in clause 3.1. 

  
 4 

	3.6.	 If any payments under this Lease Agreement, i.e. the Lease Amount or operation costs pursuant to clause 4, are
not paid within 15 days from due date pursuant to clauses 3 or 4, the Lessor may charge default interest in accordance with Act no. 38/2001 on Interest and Price Indexation, from the due date to the date of actual payment. 

 

	4.	 Operational costs 

 

	4.1.	 The Lessee shall pay any and all operational and related costs in relation to the Leased Premises, including,
but not limited to, the cost of electricity, heat and insurance (including, but not limited to, mandatory insurance for the Leased Premises), property tax and municipal charges for the Leased Premises, including, but not limited to, water supply and
sewerage charges, and all costs incurred by the Lessor regarding the property management service that will be set up and the Lessor will be a member of, as stipulated in clause 10. 

 

	4.2.	 The Lessee shall pay any and all maintenance cost related to the Leased Premises irrelevant of any provisions
of the Rent Act. 

  

	4.3.	 The Lessee shall furthermore pay, or indemnify the Lessor within 15 days from payment of any cost in respect
of, all cost with respect to the Leased Premises related to the VHÍ Agreement, including any rent payable to VHÍ for the plot (Ísl.: byggingarréttargjald) on which the Leased Premises are located.

  

	4.4.	 Should any cost relating to the operation, maintenance, ownership or general connection of the Lessor to the
Leased Premises nevertheless be levied toward the Lessor, despite what is stipulated in provisions 4.1. through 4.3., the Lessee shall indemnify the Lessor within 15 days from payment of any such cost. 

 

	5.	 Condition of the Leased Premises 

 

	5.1.	 At the Commencement Date and thereafter, the Leased Premises shall in all material respects be in accordance
with local planning and its design comply with all legal requirements, including fire safety, and generally be in good condition and capable of being used in accordance with its purpose. 

 

	5.2.	 The Lessee shall at the end of the Term return the Leased Premises to the Lessor clean and otherwise in good
condition, excluding normal wear and tear and in accordance with the agreed use of the Leased Premises. 

  
 5 

	6.	 Uses of the Leased Premises 

 

	6.1.	 The Lessee shall be permitted to use and occupy the Leased Premises for general office and administrative
purposes, biotechnological industry, storage purposes and other normal purposes and must ensure that its use of the Leased Premises does not contravene local planning, registered encumbrances (Ísl.: þinglýstar
kvaðir) or other restrictions applicable to the Leased Premises or the plot, including restrictions imposed by the City of Reykjavik or the University of Iceland. 

 

	6.2.	 The Lessee is free to install in the Leased Premises all equipment and machinery necessary for its operation.
At the end of the Term, the Lessee shall repair any damage caused by such installations. 

  

	6.3.	 All material changes to the Leased Premises are prohibited without the prior approval of the Lessor, which
approval shall not be unreasonably withheld, and must not contravene local planning, registered encumbrances (Ísl.: þinglýstar kvaðir) or other restrictions applicable to the Leased Premises or the plot,
including restrictions imposed by the City of Reykjavik or the University of Iceland. 

  

	6.4.	 All installed furnishings, furnishing units and other similar fixtures, plumbing, lights and all alterations or
leasehold improvements, which the Lessee has or may install and/or make during the Term shall become the Lessor’s property without any payment at the end of the Term, no matter whether the Term ends as agreed to in this Lease Agreement or
because of either party’s default or in any other way. 

  

	6.5.	 The Lessee shall be obliged to treat the Leased Premises well and keep them tidy and observe the rules set and
good practice regarding hygiene and health. 

  

	6.6.	 The Lessee shall be obliged to keep the Leased Premises properly insured at all times. 

 

	7.	 The Lessor’s access to the Leased Premises 

The Lessor may enter and inspect the Leased Premises at all reasonable times, subject to giving reasonable notice, accompanied by a
representative of the Lessee, to examine the condition of the Leased Premises. Such right shall be exercised in such reasonable manner as will not interfere with the conduct of the Lessee’s business. Should such an inspection reveal that the
Leased Premises are in need of maintenance, the Lessee shall procure that such maintenance is performed at the Lessee’s expense, c.f. clause 4.2. 

  
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	8.	 Improvements or changes of the Leased Premises 

 

	8.1.	 Improvements of the Leased Premises are conditioned upon agreement between the Lessor and the Lessee. Such
agreement shall at in any event include the division of the cost of such improvements between the Parties and the ownership of these improvements or changes at the end of the Term. 

 

	8.2.	 If no agreement exists, the improvements or changes shall become the Lessor’s property without any
repayment at the end of the Term. 

  

	9.	 Damage to the Leased Premises 

The Lessee is liable for all deterioration in the condition of the Leased Premises or damage to them to the extent that such deterioration
cannot be considered the natural consequence of a normal or agreed utilization of the Leased Premises, or to the extent that it results from circumstances or events in which the Lessee was demonstrably not involved. 

 

	10.	 Property management service 

 

	10.1.	 All owners of buildings, plots or leasing rights at Vísindagarðar, where the Leased Premises are
located, are obligated to be members of a property management company that will be established and shall service all common areas on site. Common areas are all areas which are not defined as private property, i.e. pedestrian streets, parking lots,
squares, buildings for employees of the property management service, contractors and other common activities. 

  

	10.2.	 All members shall pay their share of operational costs of the common areas, including operational cost of
common properties, cost of heating, lighting, air conditioning, elevators, escalators, cleaning, security, gardening, liability insurance and other insurances, snow-cleaning services, snow-melting, renewal of equipment, staff expenditure,
maintenance and all other operational costs. 

  

	10.3.	 The Lessee, acting on behalf of the Lessor, will comply with all requirements, rules and protocols set forth by
the property management company at any given time and cover any cost of the same. 

  

	10.4.	 The Lessee shall at all times comply with the communication rules set by the property management company
(Ísl.: “Samskiptareglur Rekstrarfélagsins Vísindagarðar Háskóla Íslands og leigutaka”) that are set by the property management company with regards to operations, maintenance,
alterations or general conduct in the area of Vísindagarðar. 

  

  
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	11.	 Priority rights and extension 

 

	11.1.	 At the end of the Term the Lessee shall have a right of extension which may extend the Term for five years at a
time, by giving the Lessor at least six months’ notice. Such extension is subject to the Lessor having been able to utilise its rights of extension under the VHÍ Agreement. 

 

	11.2.	 VHÍ has a first right to refusal in case of a sale of the Leased Premises pursuant to the VHÍ
Agreement and Háskóli Íslands furthermore has a first right of refusal to all buildings built on the plot according to its agreement with VHÍ. If neither VHÍ nor Háskóli Íslands decide to
exercise its right of first refusal the Lessee shall be granted a right of first refusal in case of a sale of the Leased Premises. Such right of first refusal shall be executed within 14 business days from the Lessor having notified the Lessee of a
bona fide offer to acquire the Leased Premises. The Lessee shall in no event have a right of first refusal concerning only a part of the Leased Premises. Such right shall be limited to the Lessee accepting each and all terms and conditions of such
bona fide offer and to include such terms and conditions in a purchase agreement pursuant thereto. 

  

	11.3.	 In case of change of the ownership of the Leased Premises, the Lessor will do everything within its powers to
ensure that the interests of the Lessee concerning the Leased Premises shall be maintained and secured. 

  

	12.	 Sublease and assignment right 

 

	12.1.	 The Lessee has no right to sublease the Leased Premises or any part thereof without the prior approval by the
Lessor. 

  

	12.2.	 Despite the foregoing the Lessee shall have the right to sublease the Leased Premises without the prior
approval of the Lessor for the operations of Alvogen Lux Holdings Sàrl, registered under the RCS Luxembourg number B149045, with registered office at 5, rue Heienhaff, L-1736, Senningerberg, Luxembourg
(“Alvogen Lux Holdings”), or its subsidiaries; and/or Alvogen Aztiq AB, registered in Sweden under the registration number 440914-8100, Sturevägen 37, 182 74 Stocksund, Sweden, or its subsidiaries 

  
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	12.3.	 Furthermore, should the Lease Agreement be terminated by the Lessor, Alvogen Lux Holdings, as guarantor of the
Lease Amount payments up to an amount of ISK 1,250,000,000 (the “Guaranteed Amount”), pursuant to a guarantee dated 15 December 2015, issued in favour of the Lessor and Arion Bank hf. (the “Guarantee”), shall
have an option to take over and assume all rights and obligations as lessee pursuant to the Lease Agreement, with a right to sublease the Leased Premises without the consent of the Lessor. Should Alvogen Lux Holdings not exercise its assignment
rights pursuant to this clause 12.3., within 15 business days from the Lease Agreement being terminated, the Lessor undertakes to use all reasonable endeavours to protect the interest of Alvogen Lux Holdings and limit Alvogen Lux Holding’s
liability, to the extent practicable, with respect to the Guaranteed Amount required to be deposited into a bank account in the name of the Lessor and pledged in favour of Arion Bank hf., as detailed in the Guarantee, to guarantee the Lease Amount
payments pursuant to the Lease Agreement. 

  

	13.	 Signage 

The Lessor shall permit the Lessee to have signs referring to its business located in and on the Leased Premises, the size of which,
composition and content shall be subject to the Lessor’s prior approval and to the extent applicable the approval of the property management company referred to in clause 10. The Lessee shall by the end of the Term remove any such signs and
traces they might leave. 
  

	14.	 Binding and Entire Agreement 

 

	14.1.	 This Lease Agreement replaces and supersedes the lease agreement, entered into between the Parties on
10 July 2015, as amended with an amendment agreement, dated 1 November 2015 and a second amendment agreement, dated 15 December 2015. 

  

	14.2.	 This Lease Agreement shall be binding on the Lessor and the Lessee and on their respective legal
representatives, successors and permitted assign. 

  

	14.3.	 This Lease Agreement may not be modified except by instrument in writing signed by both Parties.

  

	15.	 Other provisions 

 

	15.1.	 The laws of the Republic of Iceland govern this Lease Agreement with special reference to the Rent Act. The
Rent Act shall govern the contractual relationship between the Lessor and the Lessee whenever the terms of this Lease Agreement do not stipulate otherwise. 

  

  
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	15.2.	 The Lessee shall bear all cost relating to official registration of this Lease Agreement at the District
Commissioner. 

  

	15.3.	 If a dispute between the Lessor and the Lessee arises in connection with this Lease Agreement, it shall be
referred to the District Court of Reykjavík. 

  

	15.4.	 This Lease Agreement is executed in two identical copies, one for the Lessor and one for the Lessee.

  

	16.	 Notices 

All notices or other communications hereunder to a Party shall be in writing, or by e-mail, and shall
be deemed to be duly given or made when delivered (in the case of personal delivery or letter) and when dispatched to such party addressed as follows: 

If to the Lessor, to: 

Jóhann G. Jóhannsson, Sæmundargata 15-19, 101 Reykjavík 

e-mail: johann.johannsson@alvogen.com 

If to the Lessee, to: 

Róbert Wessman, Sæmundargata 15-19, 101 Reykjavík 

e-mail: robert.wessman@alvogen.com 

or at such other address and/or e-mail address as such party may hereafter specify for such purpose to
the other party. 
 IN WITNESS WHEREOF, the Parties have executed this Lease Agreement as of the date written above. 

signatures on the following page 

  
 10 

					
	On behalf of Lessor	 		  	On behalf of Lessee
		 		  	
	     /s/ Róbert Wessman
	 		  	 /s/ Árni Harðarson

	Róbert Wessman	 		  	Árni Harðarson
		 		  	
	     /s/ Fjalar Kristjánsson
	 		  	 /s/ Jóhann Jóhannsson

	Fjalar Kristjánsson	 		  	Jóhann Jóhannsson
		 		  	
	     /s/ Björn Zoëga
	 		  	
	Björn Zoëga	 		  	
		 		  	
	In witness of the date and correct signatures:	 		  	
		 		  	
	 /s/ David Olafsson 131181-2999
	 		  	
	Name and Id. No.	 		  	
		 		  	
	 /s/ Sigurjon Th. Sigurjonsson 270156-2239
	 		  	
	Name and Id. No.	 		  	

  
 11

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