On June 6, 2024, Alvotech entered into a secured term loan credit agreement (the ?Agreement?), by and among Alvotech, as borrower, GLAS USA LLC, as administrative agent, GLAS Americas LLC, as collateral agent, and the lenders party thereto, which provides for term loan commitments in an aggregate principal amount of $965.0 million (the ?Term Facility?), of which $900.0 million will be drawable as ?first out? term loans (the ?First Out Term Loans?) and $65.0 million will be drawable as ?second out? term loans (the ?Second Out Term Loans?

and, together with the First Out Term Loans, the ?Term Loans?). The Term Loans are scheduled to mature on the fifth anniversary of the closing date, which is expected to occur in July 2024. The outstanding principal amount under the Term Loans will, at the option of Alvotech, either bear interest at a secured overnight financing rate (?SOFR?) based rate (with such customary provisions under the Term Loans providing for the replacement of SOFR with any successor rate) or an alternate base rate, in each case plus an applicable margin.

The applicable margin for alternate base rate loans is 5.50% per annum for the First Out Term Loans and 9.50% per annum for the Second Out Term Loans and the applicable margin for SOFR-based loans is 6.50% per annum for the First Out Term Loans and 10.50% per annum for the Second Out Term Loans. With respect to the First Out Term Loans, Alvotech has the ability to opt to have interest paid-in-kind in lieu of cash interest for any interest period (?PIK Interest Election?), which would increase the interest rate for such First Out Term Loans by 0.75% per annum for the applicable interest period. Alvotech can make such PIK Interest Election for interest accruing on or before June 30, 2025, if the First Out Term Loans are funded in July 2024.

With respect to the Second Out Term Loans, all interest may only be paid in kind. Alvotech will use the proceeds of the First Out Term Loans (i) for the refinancing of various outstanding debt obligations including the tranche A and tranche B senior bonds due 2025, originally dated December 14, 2018 (as amended and restated) and various other outstanding debt obligations, including those maturing in 2025; (ii) to pay the transaction expenses related to the Agreement; and (iii) to the extent any such proceeds remain after the foregoing uses, for general corporate purposes. The Second Out Term Loans are drawable at Alvotech?s discretion, subject to certain conditions, and Alvotech may also use the proceeds of the Second Out Term Loans, to repay certain of such indebtedness.