Document:

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                                                                   EXHIBIT 10.20

          CONFIDENTIAL MATERIALS OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

                         CO-EXCLUSIVE LICENSE AGREEMENT

between

Garching Innovation GmbH,
Hofgartenstrasse 8, 80539 Munchen, Germany,
represented by the Geschaftsfuhrer, Dr. Bernhard Hertel,
- as licensor, hereinafter called "GI"-

and

Ribopharma AG,
Fritz-Hornschuch-Str. 9, 95326 Kulmbach, Germany,
represented by the Vorstande, Dr. Roland Kreutzer and Dr. Stefan Limmer,
- as licensee, hereinafter called "COMPANY" -

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PREAMBLE

WHEREAS, Massachusetts Institute of Technology ("M.I.T."), Whitehead Institute
for Biomedical Research ("WHITEHEAD"), Max-Planck-Gesellschaft zur Foerderung
der Wissenschaften e.V. ("MAX-PLANCK") and University of Massachusetts
("UMASS"), are joint owners of certain JOINT PATENT RIGHTS (as later defined
herein) relating to "RNA Sequence-Specific Mediators of RNA Interference", by
David P. Bartel, Phillip A. Sharp, Thomas Tuschl, and Phillip D. Zamore
(MAX-PLANCK Case No. GI 2716 KTM).

WHEREAS, MAX-PLANCK is the owner of certain MAX PLANCK PATENT RIGHTS (as later
defined herein) relating to "RNA Interference Mediating Small RNA Molecules," by
Thomas Tuschl, Sayda Elbashir and Winfried Lendeckel (MAX-PLANCK Case No. GI
2782 KTM).

WHEREAS, M.I.T., WHITEHEAD, MAX-PLANCK and UMASS have the right to grant
licenses under the JOINT PATENT RIGHTS and the MAX PLANCK PATENT RIGHTS, subject
to a royalty-free, nonexclusive license granted to the United States and the
German Governments to practice the JOINT PATENT RIGHTS and the MAX PLANCK PATENT
RIGHTS for government purposes.

WHEREAS, MAX-PLANCK has authorized GARCHING INNOVATION GMBH ("GI") to act as its
agent for the purposes of licensing its ownership position of JOINT PATENT
RIGHTS and the MAX PLANCK PATENT RIGHTS.

WHEREAS, MAX-PLANCK, WHITEHEAD and M.I.T. have authorized GI to act as their
agent for the purposes of licensing the JOINT PATENT RIGHTS and the MAX PLANCK
PATENT RIGHTS for therapeutic purposes, and therefore, this Agreement is only
binding on each of WHITEHEAD, M.I.T. and MAX-PLANCK.

WHEREAS, UMASS has not authorized GI to act as its agent for the purposes of
licensing the JOINT PATENT RIGHTS and the MAX-PLANCK PATENT RIGHTS for
therapeutic purposes, and therefore its ownership position in the JOINT PATENT
RIGHTS will be excluded from the license grant hereunder, and this Agreement is
not binding on UMASS, unless and until otherwise agreed upon between MAX-PLANCK,
WHITEHEAD, M.I.T., UMASS and COMPANY.

WHEREAS, Alnylam Pharmaceuticals Inc., Cambridge, MA, USA ("ALNYLAM"), an
early-stage therapeutics company which was founded in June 2002 by an
international group of scientists that helped discover the novel biological
phenomenon of RNA interference, and GI have signed the ALNYLAM LICENSE, which
includes certain REQUIREMENTS (as defined in the ALNYLAM LICENSE) for ALNYLAM to
found and establish a European-based therapeutics company, and, upon fulfillment
of the REQUIREMENTS (as defined in the ALNYLAM LICENSE), GI shall grant a second
co-exclusive license, comparable in scope and terms to the ALNYLAM LICENSE, to
such company.

WHEREAS, COMPANY is an early-stage therapeutics company which was founded in
June 2000 by scientists who had the idea that a modified form of the RNA
interference principle might be suitable as a basis for new therapeutic agents
for the treatment of diseases

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accompanying an altered genetic expression.

WHEREAS, COMPANY and ALNYLAM have entered into an agreement to complete the
MERGER (as later defined herein) on July 3, 2003, by which a U.S. parent holding
company ("HOLD CO.") will own and control directly or indirectly COMPANY and
ALNYLAM.

WHEREAS, the structure of the MERGER does not fulfil certain of the REQUIREMENTS
(as defined in the ALNYLAM LICENSE) necessary for the COMPANY to be granted the
second co-exclusive license. HOLD CO. and ALNYLAM have expressed their strong
commitment that COMPANY shall be comparable to ALNYLAM, in particular in terms
of growth, operational forces and business capabilities, for the next five
years, and, therefore, GI was willing to support the MERGER, and to sign the
AMENDMENT (as later defined herein).

WHEREAS, COMPANY desires to obtain the second co-exclusive license, with the
right to grant sublicenses, under the JOINT PATENT RIGHTS and the MAX PLANCK
PATENT RIGHTS for the purpose of developing and commercializing therapeutic
products, and GI desires to grant such license on the terms and conditions
hereinafter set forth.

NOW, THEREFORE, GI and COMPANY hereby agree as follows:

ARTICLE 1 - DEFINITIONS

1.1      "ALNYLAM LICENSE"

shall mean the co-exclusive license to the JOINT PATENT RIGHTS and the MAX
PLANCK PATENT RIGHTS for therapeutic purposes signed by ALNYLAM and GI on
December 20, 2002, and approved by MAX-PLANCK, WHITEHEAD and M.I.T.. The ALNYLAM
LICENSE is attached to this Agreement as Appendix C.

1.2      "MERGER"

shall mean the combination of the businesses of COMPANY and ALNYLAM in July 2003
by way of a merger, acquisition, cross investment or any other way of
transaction.

1.3      "AMENDMENT"

shall mean the amendment of the ALNYLAM LICENSE to amend and restate certain of
the REQUIREMENTS (as defined in the ALNYLAM LICENSE) and other terms due to the
MERGER, signed by GI, COMPANY, ALNYLAM and HOLD CO. on July 2, 2003, and
approved by MAX-PLANCK, WHITEHEAD and M.I.T. The AMENDMENT is attached to this
Agreement as Appendix D.

1.4      "JOINT PATENT RIGHTS"

shall mean:

(a)      the United States and international patent and provisional applications
         listed on Appendix A and the resulting patents,

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(b)      any patent applications resulting from the provisional applications
         listed on Appendix A, and any divisionals, continuations,
         continuation-in-part applications, and continued prosecution
         applications (and their relevant international equivalents) of the
         patent applications listed on Appendix A and of such patent
         applications that result from the provisional applications listed on
         Appendix A, to the extent the claims are directed to subject matter
         specifically described in the patent applications listed on Appendix A,
         and the resulting patents,

(c)      any patents resulting from reissues, reexaminations, or extensions (and
         their relevant international equivalents) of the patents described in
         (a) and (b) above, and

(d)      international (non-United States) patent applications and provisional
         applications filed after the EFFECTIVE DATE and the relevant
         international equivalents to divisionals, continuations,
         continuations-in-part applications and continued prosecution
         applications of the patent applications to the extent the claims are
         directed to subject matter specifically described in the patents or
         patent applications referred to in (a), (b), and (c) above, and the
         resulting patents.

         For the purpose of this Agreement, the ownership position of UMASS in
         the JOINT PATENT RIGHTS shall be explicitly excluded from the JOINT
         PATENT RIGHTS unless and until otherwise agreed upon between
         MAX-PLANCK, WHITEHEAD, M.I.T. and UMASS and COMPANY.

1.5      "MAX PLANCK PATENT RIGHTS"

shall mean:

(a)      the United States and international patent and provisional applications
         listed on Appendix B and the resulting patents,

(b)      any patent applications resulting from the provisional applications
         listed on Appendix B, and any divisionals, continuations,
         continuation-in-part applications, and continued prosecution
         applications (and their relevant international equivalents) of the
         patent applications listed on Appendix B and of such patent
         applications that result from the provisional applications listed on
         Appendix B, to the extent the claims are directed to subject matter
         specifically described in the patent applications listed on Appendix B,
         and the resulting patents,

(c)      any patents resulting from reissues, reexaminations, or extensions (and
         their relevant international equivalents) of the patents described in
         (a) and (b) above, and

(d)      international (non-United States) patent applications and provisional
         applications filed after the EFFECTIVE DATE and the relevant
         international equivalents to divisionals, continuations,
         continuations-in-part applications and continued prosecution
         applications of the patent applications to the extent the claims are
         directed to subject matter specifically described in the patents or
         patent applications referred to in (a), (b), and (c) above, and the
         resulting patents.

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1.6      "PATENT RIGHTS"

shall mean the JOINT PATENT RIGHTS and MAX PLANCK PATENT RIGHTS together.

1.7      "OWNERS"

shall mean M.I.T., WHITEHEAD, UMASS and MAX-PLANCK collectively.

1.8      "APPROVING OWNERS"

shall mean M.I.T., WHITEHEAD and MAX-PLANCK collectively, each of which had
approved the ALNYLAM LICENSE, the AMENDMENT and this Agreement. APPROVING OWNERS
shall also mean UMASS in the event that M.I.T., WHITEHEAD, MAX-PLANCK, UMASS,
and COMPANY agree that UMASS shall join as a party to this Agreement.

1.9      "LICENSED PRODUCTS"

shall mean any product or part thereof the manufacture, use or sale of which
would, absent the license granted hereunder, infringe one or more issued claims
of the PATENT RIGHTS or one or more pending claims of the PATENT RIGHTS that
have not been pending for more than 5 (five) years after filing national patent
applications in the country in question.

1.10     "FIELD"

shall mean all uses other than the commercial sale or use of the LICENSED
PRODUCTS as a research reagent, including in a kit format, for research or
educational purposes, including without limitation,

(i) COMPANY'S internal and collaborative research use, and

(ii) all therapeutic and prophylactic uses, and

(iii) diagnostic uses for purposes of therapeutic monitoring, but excluding all
other diagnostic uses,

specifically including human and veterinary diseases, initially for all
indications, but with a later split of indications according to Section 2.3.

1.11     "AFFILIATE"

shall mean any legal entity (such as a corporation, partnership, or limited
liability company) that is controlled by COMPANY. For the purposes of this
definition, the term "control" means (i) ownership of at least fifty percent
(50%) of the voting securities of a legal entity with voting securities or (ii)
a fifty percent (50%) or greater interest in the net assets or profits of a
legal entity without voting securities.

1.12     "SUBLICENSEE"

shall mean any legal entity (such as a corporation, partnership, or limited
liability company)

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other than AFFILIATE, ALNYLAM, HOLD CO. (including any affiliate of ALNYLAM and
HOLD CO.) and any other individual or legal entity associated with the MERGER,
that sells or intends to commercialize LICENSED PRODUCTS under a sublicense from
COMPANY to develop, make, use and sell LICENSED PRODUCTS. SUBLICENSEE shall not
include a distributor which purchases LICENSED PRODUCTS (whether in packaged
form or bulk form) from COMPANY and resells such LICENSED PRODUCTS to THIRD
PARTIES in a manner consistent with normal trade practices in the pharmaceutical
industry.

For the purpose of this Agreement, SUBLICENSEE shall also include the assignees
of COMPANY to which COMPANY has sub-assigned its ownership position in the JOINT
PATENT RIGHTS in certain countries in accordance with the last paragraph of
Section 2.1.

1.13     "THIRD PARTY"

shall mean any individual or legal entity (such as a corporation, partnership,
or limited liability company) other than (i) COMPANY, AFFILIATE, SUBLICENSEE,
(ii) ALNYLAM, HOLD CO. (including any affiliate and sublicensee of ALNYLAM and
HOLD CO.), and (iii) any other individual or legal entity associated with the
MERGER.

1.14     "NET SALES"

shall mean the gross amount invoiced by COMPANY, its AFFILIATES and SUBLICENSEES
to THIRD PARTIES for LICENSED PRODUCTS, less the following: (i) to the extent
separately stated on the document of sale, any taxes or duties imposed on the
manufacture, use, sale or import of LICENSED PRODUCTS which are paid by COMPANY,
(ii) outbound transportation costs and costs of insurance in transit, (iii)
customary trade, cash or quantity discounts or rebates, to the extent actually
allowed and taken, and (iv) amounts repaid or credited by reason of rejection
or return.

No deductions shall be made for commissions paid to individuals or entities, or
for cost of collections. NET SALES shall occur on the date of the invoice for a
LICENSED PRODUCT.

Non-cash consideration shall not be accepted by COMPANY, its AFFILIATES or any
SUBLICENSEE for LICENSED PRODUCTS without the prior written consent of GI.

In the event that a LICENSED PRODUCT is sold in combination with one or more
active ingredients (excluding, without limitation, any formulation,
stabilisation and delivery technology) which are not LICENSED PRODUCTS, which
active ingredients are also independently marketed during the royalty period in
question in the FIELD (or the non-exclusive field licensed in the second
paragraph of Section 2.1, as the case may be) in the country in question, then
NET SALES, for purposes of determining royalty payments on the combination
product, shall be calculated by multiplying the NET SALES of the combination
product by the fraction A/A+B, where A is the average gross selling price of the
LICENSED PRODUCT sold separately in similar quantities in the country in
question during the royalty period in question, and B is the average gross
selling price of the other active ingredient(s) sold separately in similar
quantities in the country in question during the royalty period in question. In
the event that a LICENSED PRODUCT is sold in combination with other active
ingredient(s), and the LICENSED PRODUCT or one or more other active ingredients
are not sold separately, GI and COMPANY shall negotiate in good faith other
means of calculating NET SALES with respect to such combination product, in
order to fairly reflect the value of the LICENSED PRODUCT relative to the other
active ingredient(s) in such combination product.

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1.15     "EFFECTIVE DATE"

shall mean the date of signature to this Agreement by the party last to sign.

1.16     "TERM"

shall mean the term of this Agreement, which shall commence on the EFFECTIVE
DATE and shall remain in effect until the expiration or abandonment of all
issued patents and filed patent applications within the PATENT RIGHTS, unless
earlier terminated in accordance with the provisions of this Agreement.

ARTICLE 2 - GRANT OF RIGHTS

2.1      License Grant

GI grants to COMPANY for the TERM a worldwide royalty-bearing co-exclusive
license, with the right to grant sublicenses, under the PATENT RIGHTS to
develop, make, have made, use, sell and import LICENSED PRODUCTS in the FIELD.

GI grants to COMPANY for the TERM a worldwide royalty-bearing non-exclusive
license, without the right to grant sublicenses, under the PATENT RIGHTS to
develop, make, have made, use, sell and import LICENSED PRODUCTS for all
diagnostic uses other than for purposes of therapeutic monitoring.

In countries where it is legally impossible to grant licenses to jointly owned
patent rights without the approval of all joint owners, MAX-PLANCK will
partially assign its ownership position in the JOINT PATENT RIGHTS in such
countries to COMPANY, restricted to develop, make, have made, use, sell and
import LICENSED PRODUCTS (i) in the FIELD, whereby COMPANY is allowed to further
assign such ownership position, restricted to develop, make, have made, use,
sell and import LICENSED PRODUCTS in the FIELD, in such countries to THIRD
PARTIES and SUBLICENSEES only with the prior written approval of GI, which shall
not unreasonable be withheld, and (ii) for all diagnostic uses other than for
purposes of therapeutic monitoring, whereby COMPANY is not allowed to further
assign such ownership position in such countries to THIRD PARTIES and
SUBLICENSEES. In any event, the ownership position assigned to COMPANY and, as
the case may be, sub-assigned by COMPANY to its assignees, shall entitle neither
COMPANY nor its assignees to any actions, claims or anything other which exceed
the rights granted to them under the PATENT RIGHTS by this Agreement.

2.2      Co-Exclusivity

GI and the APPROVING OWNERS shall not grant more than a total of [**] (including
the license granted hereby) worldwide royalty-bearing co-exclusive licenses,
with the right to grant sublicenses, under the PATENT RIGHTS to develop, make,
have made, use, sell and import LICENSED PRODUCTS in the FIELD, and shall not
grant any licenses under the PATENT RIGHTS in the FIELD other than such [**]
licenses.

This Section 2.2 shall not apply to the non-exclusive license stated in the
second paragraph of Section 2.1.

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2.3      Split of Indications within the FIELD

[**] years after December 20, 2002, COMPANY shall provide GI with information in
sufficient detail for each relevant indication and sub-indication within the
FIELD with respect to the estimated market size and accessibility by RNAi. If GI
decides, for good reason, that the received information is not complete and/or
not accurate and/or not sufficient, GI shall give COMPANY written notice thereof
within [**] after receiving the information. COMPANY shall provide GI within
[**] after receiving GI's written notice with the necessary information. GI will
oblige ALNYLAM accordingly.

Within [**] days after GI's receipt of the necessary information from COMPANY
and ALNYLAM, GI and COMPANY shall mutually agree, jointly with ALNYLAM, [**]
according to the estimated market size and accessibility by RNAi within the
FIELD between COMPANY and ALNYLAM. After such split, the indications and
sub-indications awarded to COMPANY shall be regarded as exclusively licensed to
COMPANY.

If the parties do not agree within the timeframe, each party has the right to
initiate arbitration procedure according to Section 12.3.

In the event that, within [**] years after December 20, 2002, (i) COMPANY or
ALNYLAM merges with a THIRD PARTY or SUBLICENSEE in a transaction in which the
shareholders of COMPANY or ALNYLAM (who hold shares in COMPANY or ALNYLAM
immediately before such merger) own less than [**]% ([**] percent) of the shares
of the resulting entity after such merger, or (ii) a THIRD PARTY or SUBLICENSEE
acquires all or substantially all of the assets or shares of COMPANY or ALNYLAM
, this Section 2.3 shall not apply.

2.4      Sublicenses

Within [**] years after December 20, 2002, COMPANY is not allowed to grant
sublicenses to THIRD PARTIES or SUBLICENSEES without the prior approval of GI,
which shall not unreasonably be withheld. COMPANY shall inform GI in writing in
due time prior to the intended signature, of any sublicense agreement in
sufficient detail to permit GI to decide whether or not to approve. GI shall
inform COMPANY in writing within 30 (thirty) days after receiving the
information whether or not GI approves; in particular, GI may withhold its
approval if GI deems the received information not sufficient. Notwithstanding
the foregoing, COMPANY may grant, within [**] years after December 20, 2002,
[**] for a specific indication to a THIRD PARTY or a SUBLICENSEE without the
prior approval of GI, in which event COMPANY is obliged to reserve an indication
of comparable market size and RNAi accessibility to the indication covered by
the sublicense for ALNYLAM.

After [**] years after December 20, 2002, COMPANY is allowed to grant
sublicenses to THIRD PARTIES or SUBLICENSEES (and grant additional sublicenses
to SUBLICENSEES) without the prior approval of GI.

Immediately after the signature of each sublicense granted under this Agreement,
COMPANY shall provide GI with a copy of the signed sublicense agreement, and
COMPANY shall confirm in writing to GI that COMPANY shall be liable for payment
of royalties on NET SALES of the SUBLICENSEE in accordance with Sections 5.2 and
5.3.

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2.5      Retained Rights

The APPROVING OWNERS retain the right to practice under the PATENT RIGHTS for
research, teaching, education, non-commercial collaboration and publication
purposes. COMPANY acknowledges that the German and the U.S. federal government
retain a royalty-free, non-exclusive, non-transferable license to practice any
government-funded invention claimed in any PATENT RIGHTS for government
purposes.

2.6      No Additional Rights

Nothing in this Agreement shall be construed to confer any rights upon COMPANY
by implication, estoppel, or otherwise as to any intellectual property rights,
including without limitation patents and patent applications, trademarks,
copyrights and know-how, of the APPROVING OWNERS other than the PATENT RIGHTS,
regardless of whether such intellectual property rights shall be dominant or
subordinate to any PATENT RIGHTS.

ARTICLE 3 - NO REPRESENTATIONS OR WARRANTIES

COMPANY is informed of the PATENT RIGHTS and the difficult patent situation in
the field of RNAi, and that it might need additional licenses from THIRD PARTIES
to have freedom to operate. GI and THE APPROVING OWNERS MAKE NO REPRESENTATIONS
OR WARRANTIES OF ANY KIND CONCERNING THE PATENT RIGHTS, EXPRESS OR IMPLIED, AND
THE ABSENCE OF ANY LEGAL OR ACTUAL DEFECTS, WHETHER OR NOT DISCOVERABLE.
Specifically, and not to limit the foregoing, GI and the APPROVING OWNERS make
no warranty or representation (i) regarding the merchantability or fitness for a
particular purpose of the PATENT RIGHTS, (ii) regarding the patentability,
validity or scope of the PATENT RIGHTS, (iii) that the exploitation of the
PATENT RIGHTS or any LICENSED PRODUCT will not infringe any patents or other
intellectual property rights of the APPROVING OWNERS or of a THIRD PARTY, and
(iv) that the exploitation of the PATENT RIGHTS or any LICENSED PRODUCT will not
cause any damages of any kind to COMPANY or a THIRD PARTY.

IN NO EVENT SHALL GI, THE APPROVING OWNERS, THEIR TRUSTEES, DIRECTORS, OFFICERS,
EMPLOYEES AND AFFILIATES BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF
ANY KIND, INCLUDING ECONOMIC DAMAGES OR INJURY TO PROPERTY AND LOST PROFITS,
REGARDLESS OF WHETHER GI OR ANY OF THE APPROVING OWNERS SHALL BE ADVISED, SHALL
HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW OF THE POSSIBILITY OF THE
FOREGOING.

ARTICLE 4 - COMPANY DILIGENCE OBLIGATIONS AND REPORTS

4.1      Activity Requirements

COMPANY shall use commercially reasonable efforts, and shall oblige its
AFFILIATES and SUBLICENSEES to use commercially reasonable efforts, to develop
and to introduce into the commercial market LICENSED PRODUCTS at the earliest
practical date.

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4.2      Development Reports

Commencing with the third calendar quarter of 2003, COMPANY shall furnish, and
shall oblige its AFFILIATES and SUBLICENSEES to furnish to COMPANY for inclusion
in its reports to GI, to GI in writing, within 30 (thirty) days after the end of
each calendar quarter with COMPANY's standard Research and Development report,
as shall be provided to the investors pursuant to the Investor Rights Agreement
between HOLD CO. and the investors named therein to be entered into as of the
closing of the MERGER, on the progress of its efforts during the immediately
preceding calendar quarter to develop and commercialize LICENSED PRODUCTS for
each indication and sub-indication within the FIELD. The report shall also
contain a discussion of intended Research and Development efforts for the
calendar quarter in which the report is submitted.

4.3      Target Specific Sublicenses

[**] years after December 20, 2002, COMPANY shall be obliged to enter into good
faith negotiations on reasonable terms and conditions with a THIRD PARTY
requesting a sublicense under the PATENT RIGHTS for the development, use and
sale of products against a target gene in a specific indication or
sub-indication which is covered by pending or issued patent rights of such THIRD
PARTY, provided, however, that

(a)      COMPANY has not entered into a sublicense or is in serious negotiations
         for a sublicense for the use of [**] in such indication, or

(b)      COMPANY can not demonstrate, through its standard research planning
         documents, significant current work which has commenced or is scheduled
         to commence within [**], to develop, within reasonable time, a product
         utilizing [**] in such indication.

COMPANY shall inform GI on a quarterly basis of all such THIRD PARTY sublicense
requests, and whether or not COMPANY has granted such sublicense. In the event
of non-grant, COMPANY shall, upon GI's request, provide GI, within [**] days
after receiving GI's request, with information in sufficient detail showing
COMPANY's reason for the non-grant.

If GI decides that COMPANY did not fulfill the requirements of (a) or (b),
and/or that COMPANY's terms and conditions for the requested sublicense have
been unreasonable, GI may initiate the arbitration procedure according to
Section 12.3. If the award of the arbitration tribunal states a non-fulfillment
of the requirements of (a) or (b), COMPANY shall immediately start negotiations
with the THIRD PARTY; if the award of the arbitration tribunal states
unreasonable terms and conditions, COMPANY shall immediately re-negotiate
reasonable terms and conditions with the THIRD PARTY. In any such awards of the
arbitration tribunal, the costs for the arbitration procedure shall be borne
solely by COMPANY.

4.4      Liability for AFFILIATES and SUBLICENSEES

If SUBLICENSEES or AFFILIATES of COMPANY develop, manufacture, use and/or sell
LICENSED PRODUCTS under the PATENT RIGHTS, COMPANY warrants and is liable
towards GI that the SUBLICENSEES and AFFILIATES perform their sublicense
agreement in accordance with this Agreement, and COMPANY shall be responsible
and liable for royalty

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payments and reports of the SUBLICENSEES and AFFILIATES.

4.5      Effect of Failure

In the event that GI determines that COMPANY or any of its AFFILIATES and
SUBLICENSEES has failed to fulfill any of its obligations under this Section 4,
then GI may treat such failure as a material breach in accordance with Section
11.7.

ARTICLE 5 - SHARES, ROYALTIES AND PAYMENT TERMS

5.1      Shares

As a consequence of the MERGER, the APPROVING OWNERS do not receive shares in
both ALNYLAM and COMPANY, but they shall receive shares in HOLD CO. as stated in
Section B) of the AMENDMENT.

As partial consideration for the licenses granted to ALNYLAM and COMPANY, HOLD
CO. shall transfer, by September 1st, 2003, 865,516 Shares (as defined in the
AMENDMENT) and 16,328 Additional Shares (as defined in the AMENDMENT) to the
APPROVING OWNERS according to Section B) of the AMENDMENT.

In addition, HOLD CO. shall transfer 16,328 Additional Shares (as defined in the
AMENDMENT) to the APPROVING OWNERS according to Section B) b) of the AMENDMENT.
Furthermore, the total amount of Shares (as defined in the AMENDMENT) to be
received by the APPROVING OWNERS shall be increased in an amount to be defined
in good faith by the parties if one or more of the events described in Section
B) of the AMENDMENT occur.

In addition and notwithstanding the foregoing, M.I.T., WHITEHEAD, MAX-PLANCK,
and COMPANY acknowledge that it may be necessary for COMPANY to pay additional
consideration to UMASS (in the form of cash, stock, or otherwise) in order for
COMPANY to obtain a license to UMASS' ownership interest in the JOINT PATENT
RIGHTS. Therefore, in the case of such an event, M.I.T., WHITEHEAD, MAX-PLANCK,
and COMPANY agree on a cost sharing of such costs between them substantially
identical to the cost-sharing mechanism set forth in the Letter Agreement
between ALNYLAM, GI, M.I.T., and WHITEHEAD dated December 19, 2002 with respect
to the ALNYLAM LICENSE, M.I.T., WHITEHEAD, MAX-PLANCK and COMPANY, ALNYLAM and
HOLD CO. agree that the cost sharing mechanism set forth both in the Letter
Agreement between ALNYLAM, GI, M.I.T., and WHITEHEAD dated December 19, 2002 and
in this Section 5.1 shall only apply with respect to the JOINT PATENT RIGHTS,
which means that the 50%-cost-sharing for M.I.T., WHITEHEAD and MAX-PLANCK shall
be limited to 50% of the value of shares (to be calculated at HOLD CO.'s last
round of financing, if the shares are privately held, or at the average closing
price of ten trading days preceding the closing date of ALNYLAM and COMPANY with
UMASS, if the shares are listed on a stock exchange) transferred to M.I.T.,
WHITEHEAD and MAX-PLANCK by HOLD CO. in return for the JOINT PATENT RIGHTS. The
value of shares shall be calculated on the basis of 396,763 Shares and 7,485
Additional Shares and further 7,485 Additional Shares (according to Section B)b)
of the AMENDMENT) attributed to the JOINT PATENT RIGHTS.

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5.2      Running Royalties

COMPANY shall pay to GI the following running royalties on NET SALES of
therapeutic and prophylactic LICENSED PRODUCTS by COMPANY, its AFFILIATES and
SUBLICENSEES:

(a)      [**]% ([**] percent) of the first US$[**] ([**] US Dollars) of annual
         accumulated NET SALES of all LICENSED PRODUCTS;

(b)      [**]% ([**] percent) of annual accumulated NET SALES of all LICENSED
         PRODUCTS between US$[**] ([**] US Dollars) and US$[**] ([**] US
         Dollars);

(c)      [**]% ([**] percent) of annual accumulated NET SALES of all LICENSED
         PRODUCTS between US$[**] ([**] US Dollars) and US$[**] ([**] US
         Dollars);

(d)      [**]% ([**] percent) of annual accumulated NET SALES of all LICENSED
         PRODUCTS between US$[**] ([**] US Dollars) and US$[**]n ([**] US
         Dollars);

(e)      [**]% ([**] percent) of annual accumulated NET SALES of all LICENSED
         PRODUCTS between US$[**] ([**] US Dollars) and US$[**] ([**] US
         Dollars); and

(f)      [**]% ([**] percent) of annual accumulated NET SALES of all LICENSED
         PRODUCTS above US$[**] ([**] US Dollars).

In the event that COMPANY, an AFFILIATE or a SUBLICENSEE develops diagnostic
LICENSED PRODUCTS, COMPANY shall initiate negotiations with GI at least [**]
prior to the intended first commercial sale of each diagnostic LICENSED PRODUCT.
COMPANY and GI shall negotiate in good faith [**] terms for such diagnostic
LICENSED PRODUCT.

If the sale of any LICENSED PRODUCT is covered by more than one of the PATENT
RIGHTS, multiple royalties shall not be due.

Non-cash consideration shall not be accepted by COMPANY or an AFFILIATE or any
SUBLICENSEE for LICENSED PRODUCTS without the prior written consent of GI.

For the avoidance of doubt, in no event shall COMPANY and ALNYLAM be responsible
for paying royalties under this Agreement and the ALNYLAM LICENSE on
inter-company sales of LICENSED PRODUCTS between ALNYLAM and COMPANY. ALNYLAM or
COMPANY shall only pay royalties on sales of such LICENSED PRODUCTS to a THIRD
PARTY. Further for the avoidance of doubt, in no event shall royalties be due
under both the ALNYLAM LICENSE and this Agreement on the same NET SALE of a
particular LICENSED PRODUCT.

5.3      Royalty Stacking

(a)      THIRD PARTY Licenses

In the event COMPANY, an AFFILIATE or a SUBLICENSEE takes, for objective
commercial and/or legal reasons, a license from any THIRD PARTY or other
SUBLICENSEE under any patent applications or patents that dominate the PATENT
RIGHTS or is dominated by the PATENT RIGHTS in order to develop, make, use, sell
or import any LICENSED PRODUCT

                                                                              11
<PAGE>

(explicitly excluding, without limitation, any THIRD PARTY's, or other
SUBLICENSEE's, patents and patent applications for formulation, stabilization
and delivery), then COMPANY is allowed to deduct [**]% ([**] percent) of any
additional running royalties to be paid to such THIRD PARTY or other SUBLICENSEE
up to [**]% ([**] percent) of the running royalties stated in Section 5.2, from
the date COMPANY has to pay running royalties to such THIRD PARTY or other
SUBLICENSEE. However, the running royalties stated in Section 5.2 shall not be
reduced to less than a minimum of [**]% ([**] percent) of NET SALES in any case.

For avoidance of doubt, if COMPANY, an AFFILIATE or a SUBLICENSEE takes a
license to a THIRD PARTY's, or other SUBLICENSEE's, target, COMPANY is in no
event allowed to deduct any license fees for such target from running royalties
due to GI under this Agreement.

(b)      PATENT RIGHTS Coverage

In the event that (i) COMPANY, its AFFILIATES or SUBLICENSEES sell a LICENSED
PRODUCT in a country where no PATENT RIGHTS are issued and no patent
applications that are part of the PATENT RIGHTS are pending that have not been
pending for less than [**] years after filing national patent applications in
the country in question, and (ii) such LICENSED PRODUCT is manufactured in a
country where PATENT RIGHTS are issued or patent applications that are part of
the PATENT RIGHTS are pending that have not been pending for more than [**]
years after filing national patent applications in the country in question, the
royalties stated in Section 5.2 will be reduced by [**]% ([**] percent) for such
LICENSED PRODUCT, until the expiration or abandonment of all issued patents and
filed patent applications within the PATENT RIGHTS in the country in which the
LICENSED PRODUCT is manufactured.

5.4      Reports

Within 30 (thirty) days of the end of each calendar half year, COMPANY shall
deliver a detailed report to GI for the immediately preceding calendar half year
showing at least (i) the number of LICENSED PRODUCTS sold by COMPANY, its
AFFILIATES and SUBLICENSEES in each country, (ii) the gross price charged by
COMPANY, its AFFILIATES and SUBLICENSEES for each LICENSED PRODUCTS in each
country, (iii) the calculation of NET SALES, and (iv) the resulting running
royalties due to GI according to those figures. If no running royalties are due
to GI, the report shall so state.

5.5      Payments

(a)      Accounting and Payments

Running royalties shall be payable for each calendar half year, and shall be due
to GI within 60 (sixty) days of the end of each calendar half year.

(b)      Method of Payment

All payments under this Agreement shall be made payable to "Garching Innovation
GmbH" to the following account: Bayerische Hypo- und Vereinsbank AG; account
number [**]; bank code 700 202 70; SWIFT address: HYVEDEMMXXX. Each payment
shall reference this

                                                                              12
<PAGE>

Agreement and the obligation under this Agreement that the payment satisfies.

(c)      Payments in Euros

All payments due under this Agreement shall be payable in Euros and, if legally
required, shall be paid with the additional value added tax. Conversion of
foreign currency to Euros shall be made at the conversion rate reported in the
Wall Street Journal (United States Edition) on the last working day of the
relevant calendar half year. Such payments shall be without deduction of
exchange, collection, or other charges, except for deduction of withholding or
similar taxes.

(d)      Late Payments

Any payments by COMPANY that are not paid on or before the date such payments
are due under this Agreement shall bear interest on arrears at 2 % (two
percentage points) above the Prime Rate of interest as reported in the Wall
Street Journal on the date the payment is due.

5.6      Bookkeeping and Auditing

COMPANY is obliged to keep, and shall oblige its AFFILIATES and SUBLICENSEES to
keep, complete and accurate books on any reports and payments due to GI under
this Agreement, which books shall contain sufficient information to permit GI to
confirm the accuracy of any reports and payments made to GI. GI, or GI's
appointed agents, is authorized to check the books of COMPANY, and, upon GI's
request, COMPANY, or agents appointed by GI for COMPANY, shall check the books
of its AFFILIATES and SUBLICENSEES for GI, once a year. The charges for such a
check shall be borne by GI. In the event that such check reveals an underpayment
in excess of 5% (five percent), COMPANY shall bear the full cost of such check
and shall remit any amounts due to GI within thirty days of receiving notice
thereof from GI.

The right of auditing by GI under this Section shall expire five years after
each report or payment has been made. Sublicenses granted by COMPANY shall
provide that COMPANY shall have the right to check the books of its AFFILIATES
and SUBLICENSEES according to this Section 5.6.

5.7      No Refund

All payments made by COMPANY or its AFFILIATES and SUBLICENSEES under this
Agreement are nonrefundable and noncreditable against each other.

ARTICLE 6 - PATENT PROSECUTION AND INFRINGEMENT

6.1      Responsibility for PATENT RIGHTS

The APPROVING OWNERS shall, in their sole discretion, apply for, seek issuance
of, maintain, or abandon the PATENT RIGHTS during the TERM of this Agreement. GI
shall (i) keep COMPANY reasonably informed as to the filing, prosecution,
maintenance and abandonment of the PATENT RIGHTS, (ii) furnish COMPANY copies of
documents relevant to any such filing, prosecution maintenance and abandonment,
and (iii) allow COMPANY reasonable opportunity to comment and advise on patent
attorneys to be used and on documents to be filed with any patent office which
would affect the PATENT RIGHTS in the FIELD, and (iv) give good faith

                                                                              13
<PAGE>

consideration to the comments and advice of COMPANY.

In the event that all OWNERS wish to cease prosecution or abandon any of the
PATENT RIGHTS, GI shall notify COMPANY thereof in writing in due time, and shall
offer COMPANY the right to continue prosecution or maintenance of such PATENT
RIGHTS in its discretion, in its name and at its expense. GI will inform and
offer ALNYLAM respectively. If COMPANY does not accept GI's offer within 30
(thirty) days after receiving it, the OWNERS shall be free to cease prosecution
or abandon such PATENT RIGHTS. In any event, if the manufacture and sale of a
LICENSED PRODUCT is solely covered by such PATENT RIGHTS, the respective NET
SALES are not royalty-bearing.

6.2      Patent Costs

COMPANY shall pay to GI [**]% ([**] percent) of all fees and costs, including
attorneys fees, relating to the filing, prosecution and maintenance of the
PATENT RIGHTS, which incur during the TERM. [In addition, COMPANY shall
reimburse GI [**]% ([**] percent) of all fees and costs, including attorneys
fees, relating to the filing, prosecution and maintenance of the PATENT RIGHTS,
which have already incurred as of December 20, 2002 until the EFFECTIVE DATE. GI
shall decide, in its sole discretion, if such costs shall be paid directly by
COMPANY to the creditor, or if COMPANY shall reimburse GI for all amounts due
pursuant to this Section within 30 (thirty) days of invoicing.

In addition, if any or all of the current and future licensees which bear patent
costs cease to pay, for whatever reason, their respective patent cost share,
then COMPANY shall assume [**]% ([**] percent) of such share. GI will oblige
ALNYLAM respectively.

Furthermore, if COMPANY wishes to prosecute or maintain any of the PATENT RIGHTS
in countries where none of the current and future licensees, including ALNYLAM,
want to prosecute or maintain, COMPANY shall bear [**]% ([**] percent) of all
fees and costs relating to such PATENT RIGHTS.

In the event that COMPANY wishes to cease payment for any of the PATENT RIGHTS,
COMPANY shall notify GI thereof in writing in due time, at least 3 months prior
to any deadline. The APPROVING OWNERS shall have the right to continue payment
for such PATENT RIGHTS in their discretion and at their expense. In any event,
such PATENT RIGHTS shall no longer be covered by this Agreement from the date
COMPANY informs GI of its cessation of payments.

6.3      Infringement

COMPANY shall inform GI promptly in writing of any alleged infringement of the
PATENT RIGHTS by a THIRD PARTY and of any available evidence thereof.

Subject to COMPANY's right to join in the prosecution of infringements set forth
below, the OWNERS shall have the right, but not the obligation, to prosecute in
their own discretion and at their own expense, all infringements of the PATENT
RIGHTS. The total cost of any such sole infringement action shall be borne by
the OWNERS, and the OWNERS shall keep any recovery or damages derived therefrom.
In any such infringement suits, COMPANY shall, at the

                                                                              14
<PAGE>

OWNERS' expense, cooperate in all respects.

COMPANY shall have the right to join the OWNERS' prosecution of any
infringements of the PATENT RIGHTS. In any such joint infringement suits, the
OWNERS and COMPANY will cooperate in all respects. The OWNERS and COMPANY will
agree in good faith on the sharing of the total cost of any such joint
infringement action and the sharing of any recovery or damages derived
therefrom.

In the event that the OWNERS decide not to prosecute infringements of the PATENT
RIGHTS, neither solely nor jointly with COMPANY, GI shall offer to COMPANY to
prosecute any such infringement in its own discretion and at its own expense. GI
will offer ALNYLAM respectively. The OWNERS shall, at COMPANY'S expense,
cooperate. The total cost of any such sole infringement action shall be borne by
COMPANY, and COMPANY shall keep any recovery or damages derived therefrom.

In the event that COMPANY intends to make any arrangements with the infringer to
settle the infringement (such as sublicenses), and solely the OWNERS or the
OWNERS jointly with COMPANY have prosecuted the infringement, any such
settlement needs the prior written approval of GI, which shall not unreasonably
be withheld; reasons to withheld include, without limitation, that the
settlement is financially disadvantageous for the OWNERS or GI. Any infringer to
which COMPANY grants such sublicenses shall be a SUBLICENSEE under this
Agreement.

ARTICLE 7 - INDEMNIFICATION AND INSURANCE

7.1      Indemnification

COMPANY shall indemnify, defend, and hold harmless the APPROVING OWNERS and
their trustees, officers, faculty, students, employees, and agents and their
respective successors, heirs and assigns (the "Indemnitees"), against any
liability, damage, loss, or expense (including reasonable attorneys fees and
expenses) incurred by or imposed upon any of the Indemnitees in connection with
any claims, suits, actions, demands or judgments arising out of any theory of
liability (including without limitation actions in the form of tort, warranty,
or strict liability and regardless of whether such action has any factual basis)
concerning (i) any use of the PATENT RIGHTS by COMPANY or its AFFILIATES and
SUBLICENSEES, or (ii) any product, process, or service that is developed, made,
used, sold, or performed pursuant to any right or license granted under this
Agreement.

7.2      Insurance

COMPANY shall obtain and carry in full force and effect commercial general
liability insurance, including product liability and errors and omissions
insurance, which shall protect COMPANY and the Indemnitees with respect to
events covered by Section 7.1 above. Such insurance shall list GI and the
APPROVING OWNERS as additional insured, and the limit of insurance shall not be
less than 1,000,000 $ (one million US Dollars) per incident. Upon request,
COMPANY shall provide GI with certificates of insurance evidencing compliance
with this section.

ARTICLE 8 - CONFIDENTIALITY

                                                                              15
<PAGE>

8.1      Obligation for Company

The content of this Agreement and any information marked confidential which is
disclosed to COMPANY under this Agreement by GI or the APPROVING OWNERS shall be
treated confidential by COMPANY during the TERM and for 5 (five) years
thereafter. COMPANY shall not use such information for any purposes other than
those necessary to directly further the purpose of this Agreement. COMPANY may
disclose such information to ALNYLAM, HOLD Co., and its actual and prospective
AFFILIATES, SUBLICENSEES, investors, lenders, other financing sources, acquirors
and THIRD PARTIES being acquired by COMPANY, provided however, that COMPANY has
entered into serious discussions with such entities, and such entities have
requested such information, and such entities are obliged to confidentiality to
the same extent as COMPANY.

The confidentiality obligation shall not apply to information which is (i)
publicly available or becomes publicly available through no fault of COMPANY, or
(ii) obtained by COMPANY from another source without a duty of confidentiality,
or (iii) demonstrably independently developed or possessed by COMPANY, or (iv)
is required by law, regulation, accounting principles or an order of a court or
government agency to be disclosed.

8.2      Obligation for GI

The content of this Agreement and any information marked confidential which is
disclosed to GI under this Agreement by COMPANY, its AFFILIATES or SUBLICENSEES
shall be treated confidential by GI during the TERM and for 5 (five) years
thereafter. GI shall not use such information for any purposes other than those
necessary to directly further the purpose of this Agreement. GI may disclose
such information to the APPROVING OWNERS, provided however, that the APPROVING
OWNERS are obliged to confidentiality to the same extent as GI.

The confidentiality obligation shall not apply to information which is (i)
publicly available or becomes publicly available through no fault of GI, or (ii)
obtained by GI from another source without a duty of confidentiality, or (iii)
demonstrably independently developed or possessed by GI, or (iv) is required by
law, regulation, accounting principles or an order of a court or government
agency to be disclosed.

ARTICLE 9 - NO ASSIGNMENT OR TRANSFER

9.1      Assignment

This Agreement is personal to COMPANY and no rights or obligations may be
assigned by COMPANY to an AFFILIATE or a SUBLICENSEE or ALNYLAM or HOLD CO.
(including any affiliate and sublicensee of ALNYLAM and HOLD CO.) or any other
legal entity associated with the MERGER without the prior written consent of GI.
COMPANY may grant sublicenses in accordance with Section 2.4 to THIRD PARTIES or
SUBLICENSEES. COMPANY may assign its rights and obligations under this Agreement
to a THIRD PARTY successor or SUBLICENSEE successor in connection with the
merger, consolidation, or sale of all or substantially all of its assets or that
portion of its business to which this Agreement relates; provided, however, that
this Agreement shall immediately terminate if the proposed THIRD

                                                                              16
<PAGE>

PARTY assignee or SUBLICENSEE assignee fails to agree in writing to be bound by
the terms and conditions of this Agreement on or before the effective date of
the assignment. After the effective date of the assignment, the THIRD PARTY
assignee or SUBLICENSEE assignee shall provide GI, upon GI's request, with
written reports in reasonable detail on the actual and intended future
activities of the THIRD PARTY assignee or SUBLICENSEE assignee to develop and
commercialize LICENSED PRODUCTS. If the reports are not provided to GI in due
time and/or in sufficient detail, such failure will be a material breach under
Section 11.7, and GI shall have the right to terminate this Agreement in
accordance with the procedures set forth in Section 11.7.

9.2      Transfer to ALNYLAM

Notwithstanding Section 9.1, the assignment or transfer of this Agreement in
whole from COMPANY to ALNYLAM or HOLD CO. (including any affiliate of ALNYLAM
and HOLD CO.) as new licensee, for example in connection with a sale or transfer
of at least 50% of COMPANY's assets or that portion of its business to which
this Agreement relates, needs the prior written consent of GI, if such sale or
transfer is implemented within 5 (five) years after the EFFECTIVE DATE, unless
such sale or transfer is in connection with an Initial Public Offering or a
trade sale whereby a THIRD PARTY or SUBLICENSEE acquires both COMPANY and
ALNYLAM.

COMPANY shall inform GI immediately of any intended such sale or transfer.

ARTICLE 10 - GENERAL COMPLIANCE WITH LAWS

10.1     Compliance with Laws

COMPANY shall use commercially reasonable efforts to comply with all local,
state, federal, and international laws and regulations relating to the
development, manufacture, use and sale of LICENSED PRODUCTS.

10.2     Non-Use of APPROVING OWNERS Names

Neither COMPANY nor its AFFILIATES and SUBLICENSEES shall use the name of
"Massachusetts Institute of Technology," "Whitehead Institute", "Max Planck
Institute", "Max Planck Society", "Garching Innovation" or any variation,
adaptation, or abbreviation thereof, or of any of its trustees, officers,
faculty, students, employees, or agents, or any trademark owned by any of the
APPROVING OWNERS, in any promotional material or other public announcement or
disclosure without the prior written consent of the APPROVING OWNERS or in the
case of an individual, the consent of that individual. The foregoing
notwithstanding, without the consent of the APPROVING OWNERS, COMPANY may state
generally that it is co-exclusively licensed by the APPROVING OWNERS under the
PATENT RIGHTS.

ARTICLE 11 - TERM AND TERMINATION

11.1     Term

This Agreement shall come into effect on the EFFECTIVE DATE and shall remain in
effect until the expiration or abandonment of all issued patents and filed
patent applications within the

                                                                              17
<PAGE>

PATENT RIGHTS, unless earlier terminated in accordance with the provisions of
this Agreement.

11.2     Voluntary Termination by COMPANY

COMPANY shall have the right to terminate this Agreement, for any reason, (i)
upon at least 6 (six) months prior written notice to GI, such notice to state
the date at least 6 (six) months in the future upon which termination is to be
effective, and (ii) upon payment of all amounts due to GI through such
termination effective date.

11.3     Cessation of Business

If COMPANY ceases to carry on its business related to this Agreement, COMPANY
has to inform GI thereof immediately. COMPANY and GI shall have the right to
terminate this Agreement immediately upon written notice to the other.

11.4     Change of Ownership

In the event that at least 50% (fifty percent) of COMPANY'S stock capital is
assigned or transferred to a THIRD PARTY or an AFFILIATE or a SUBLICENSEE,
COMPANY shall provide GI, upon GI's request, with written reports in reasonable
detail on the actual and intended future activities of COMPANY to develop and
commercialize LICENSED PRODUCTS. If the reports are not provided to GI in due
time and/or in sufficient detail, such failure will be a material breach under
Section 11.7, and GI shall have the right to terminate this Agreement in
accordance with the procedures set forth in Section 11.7. COMPANY shall inform
GI immediately of the implementation of any such assignment or transfer.

11.5     Attack on PATENT RIGHTS

GI shall have the right to terminate this Agreement immediately upon written
notice to COMPANY, if COMPANY attacks, or has attacked or supports an attack
through a THIRD PARTY, the validity of any of the PATENT RIGHTS. To the extent
legally enforceable, sublicenses granted by COMPANY shall provide that in the
event the SUBLICENSEE attacks, or has attacked or supports an attack through a
THIRD PARTY, the validity of any of the PATENT RIGHTS, COMPANY shall have the
right to terminate the sublicense agreement immediately; upon request of GI,
COMPANY shall have the obligation to terminate such sublicense agreement.

11.6     Licenses to ALNYLAM

In the event that

(i)      COMPANY does not grant to ALNYLAM a worldwide non-exclusive
unrestricted royalty-free license, with the right to grant sublicenses, to all
of COMPANY'S existing and future intellectual property rights owned or
controlled by COMPANY, including without limitation patents and patent
applications, trademarks, copyrights and know-how, necessary or useful to
perform ALNYLAM's business in the field of RNAi, or

(ii)     COMPANY does not grant to ALNYLAM a worldwide non-exclusive
unrestricted, with

                                                                              18
<PAGE>
royalties payable only with respect to COMPANY's royalty obligations towards
its licensor, sublicense, with the right to grant further sublicenses to the
greatest extent permitted by its licensor, to all intellectual property rights
currently and in the future licensed to COMPANY, including without limitation
patents and patent applications, trademarks, copyrights and know-how, necessary
or useful to perform ALNYLAM's business in the field of RNAi,

GI shall have the right to terminate this Agreement immediately upon written
notice to COMPANY, if COMPANY fails to grant such licenses or sublicenses to
ALNYLAM within 30 (thirty) days after receiving written notice thereof from GI.

This Section 11.6 shall not apply in the event that (i) COMPANY or ALNYLAM
merges with a THIRD PARTY or SUBLICENSEE in a transaction in which the
shareholders of COMPANY or ALNYLAM (who hold shares in COMPANY or ALNYLAM
immediately before such merger) own less than 50% (fifty percent) of the shares
of the resulting entity after such merger, or (ii) a THIRD PARTY or SUBLICENSEE
acquires all or substantially all of the assets or shares of COMPANY or ALNYLAM.

11.7     Termination for Default

In the event COMPANY fails to pay any amounts due and payable to GI hereunder,
and fails to make such payments within 30 (thirty) days after receiving written
notice of such failure, GI may terminate this Agreement immediately upon written
notice to COMPANY. Notwithstanding the foregoing, in the event COMPANY commits a
material breach of its obligations under this Agreement, and fails to cure that
breach within 60 (sixty) days after receiving written notice thereof, GI may
terminate this Agreement immediately upon written notice to COMPANY.

Notwithstanding the foregoing, if COMPANY disputes any alleged failure to make a
payment or alleged material breach, the matter shall be resolved in accordance
with Section 12.3, and if the matter is resolved against COMPANY, COMPANY shall
have 10 (ten) days from the final decision of the arbitration tribunal to make
the payment, with additional interest on arrears according to Section 5.5 (d),
or cure the breach.

11.8     Termination According to AMENDMENT

GI shall have the right to terminate this Agreement immediately upon written
notice to COMPANY after compliance with the procedures set forth in Section c)
of REQUIREMENT 5 as modified by the AMENDMENT, if one or more of the amended
REQUIREMENTS stated in Section B) to D) of the AMENDMENT are not or no longer
met by ALNYLAM and/or HOLD Co., as applicable.

11.9     Effect of Termination

The following provisions shall survive the expiration or termination of this
Agreement: Articles 1, 3, 5.5, 7, 8, 12 and Section 11.1 and 11.9. In no event
shall termination of this Agreement release COMPANY, its AFFILIATES or
SUBLICENSEES from the obligation to pay any amounts that became due on or before
the effective date of termination.

In the event that any license granted to COMPANY under this Agreement is
terminated, any

                                                                              19
<PAGE>

sublicense under such license granted prior to termination of said license shall
remain in full force and effect, provided that:

(a)      the SUBLICENSEE is not then in breach of its sublicense agreement, and

(b)      the SUBLICENSEE agrees to be bound to GI as licensor under the terms
and conditions of the sublicense agreement, provided that GI shall have no other
obligation than to leave the sublicense granted by COMPANY in place.

In the event that MAX-PLANCK has partially assigned its ownership position in
the JOINT PATENT RIGHTS in certain countries to COMPANY according to Section
2.1, COMPANY shall cost-free re-assign such ownership position in such countries
to MAX-PLANCK on or before the effective date of termination. In the event that
COMPANY has further assigned its ownership position in certain countries in
accordance with Section 2.1, such further assignment shall remain in full force
and effect, provided that

(a)      the sub-assignee is not then in breach of its sub-assignment agreement,
and

(b)      the sub-assignee agrees to be bound to GI as assignor under the terms
and conditions of the sub-assignment agreement, provided that GI shall have no
other obligation than to leave the sub-assignment granted by COMPANY in place.
[A SIMILAR PROVISION SHOULD ALSO BE ADDED TO THE ALNYLAM LICENSE.]

11.10    Insolvency

This Agreement shall terminate automatically, if, regarding the assets of
COMPANY, a petition in insolvency is filed and not withdrawn by the petitioner
or dismissed by court for inappropriateness within 90 (ninety) days of the
filing, or the commencement of insolvency proceedings has been declined by court
for insufficiency of assets. In addition, this Agreement shall terminate
automatically, if COMPANY is in liquidation for other reasons, except for a
liquidation to reorganize COMPANY, if the reorganized entity agrees in writing
that this Agreement shall be continued entirely by such reorganized entity.

ARTICLE 12 - MISCELLANEOUS

12.1     Notice

Any notices required or permitted under this Agreement and all correspondence
hereunder shall be in English and in writing, shall specifically refer to this
Agreement, and shall be sent by a method providing confirmation of delivery to
the following addresses or facsimile numbers of the parties:

If to GI:         Garching Innovation GmbH
                  Hofgartenstrasse 8
                  D-80539 Muenchen/Germany
                  Tel: +49/89/290919-0
                  Fax: +49/89/290919-99

If to COMPANY:    Ribopharma AG,

                                                                              20
<PAGE>

                  Fritz-Hornschuh-Strasse 9
                  95326 Kulmbach/Germany
                  Tel: 09221/827 62 11
                  Fax: 09 221/827 62 99

All notices under this Agreement shall be deemed effective upon receipt. A party
may change its contact information immediately upon written notice to the other
party in the manner provided in this Section.

12.2     Governing Law

The parties explicitly agree and deem appropriate that this Agreement and all
disputes arising out of or related to this Agreement, or the performance,
enforcement, breach or termination hereof, and any remedies relating thereto,
shall be construed, governed, interpreted and applied in accordance with the
laws of the Federal Republic of Germany, except that questions affecting the
construction and effect of any patent shall be determined by the law of the
country in which the patent shall have been granted.

12.3     Dispute Resolution

The parties shall attempt to settle any dispute or claim arising out of or
relating to this Agreement by good faith negotiations. If the parties fail to
agree on a reasonable settlement within 60 (sixty) days after the affected party
informed the other party in writing of such dispute or claim, either party may
initiate arbitration under the procedural Rules of the International Chamber of
Commerce upon written notice to the other party within 30 (thirty) days after
such failure. The arbitration tribunal shall be appointed as follows: each party
shall select, within 30 (thirty) days after notice to initiate arbitration, an
independent and experienced THIRD PARTY as its arbitrator. The two arbitrators
selected by the parties shall mutually select an independent and experienced
THIRD PARTY as third arbitrator. The venue for the arbitration procedure shall
be Munich, Germany, the language shall be English, and German law shall be
applied. The award of the arbitration tribunal shall be final and binding for
the parties. Notwithstanding the foregoing, each party may apply for
interlocutory relief in court.

12.4     Amendment and Waiver

This Agreement may be amended, supplemented, or otherwise modified only by means
of a written instrument signed by both parties. Any waiver of any rights or
failure to act in a specific instance shall relate only to such instance and
shall not be construed as an agreement to waive any rights or fail to act in any
other instance, whether or not similar.

12.5     Severability

Should one of the provisions of this Agreement be held void, invalid or
unenforceable, the remaining provisions of this Agreement will not cease to be
effective. The parties shall negotiate in good faith to replace such void,
invalid or unenforceable provision by a new provision which reflects, to the
extent possible, the original intent of the parties.

12.6     Headings

                                                                              21
<PAGE>

All headings are for convenience only and shall not affect the meaning of any
provision of this Agreement.

12.7.    Effect on ALNYLAM LICENSE

To avoid any discrepancies between this Agreement and the ALNYLAM LICENSE due to
the fact that the ALNYLAM LICENSE does not reflect that (i) UMASS' ownership
position in the JOINT PATENT RIGHTS is excluded from the JOINT PATENT RIGHTS
with respect to the ALNYLAM LICENSE and this Agreement, and (ii) ALNYLAM has not
founded and established a European-based therapeutics company, but ALNYLAM and
COMPANY executed the MERGER, this Agreement shall prevail the ALNYLAM LICENSE to
the extent the aforementioned discrepancies occur.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized representatives.

Garching Innovation GmbH           Ribopharma AG

By:    /s/Bernhard Hertel          By:    /s/ Roland Kreutzer /s/ Stefan Limmer
       --------------------               --------------------------------------
Name:  Dr. Bernhard Hertel         Name:  Dr. Roland Kreutzer, Dr. S. Limmer
Title: Geschaftsfuhrer             Title: Vorstande
Date:  July 30, 2003               Date:  July 30, 2003
       --------------------               --------------------------------------

Acknowledged and agreed:

Hold Co., Inc.                     Alnylam Pharmaceuticals, Inc.

By:    /s/ John Maraganore         By:    /s/ John Maraganore
       --------------------               --------------------------------------
Name:  John Maraganore             Name:  John Maraganore
Title: Chief Executive Officer     Title: Chief Executive Officer
Date:  August 26, 2003             Date:  August 26, 2003
       --------------------               --------------------------------------

                                                                              22
<PAGE>

                                   APPENDIX A

                               JOINT PATENT RIGHTS

I.       United States Patents and Applications

USSN [**] entitled [**]

USSN [**] entitled [**]

II.      International (non-U.S.) Patents and Applications

[**] entitled [**]

                                                                              23
<PAGE>

                                   APPENDIX B

                            MAX-PLANCK PATENT RIGHTS

I.       United States Patents and Applications

USSN [**] entitled "[**]II. International (non-U.S.) Patents and Applications

European Serial Number [**]

                               [**] entitled "[**]

                                                                              24
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                                   APPENDIX C

                                 ALNYLAM LICENSE

                       [FILED SEPARATELY AS EXHIBIT 10.19]

                                                                              25<PAGE>

                                                                   EXHIBIT 10.21

          CONFIDENTIAL MATERIALS OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

                                    AGREEMENT

This agreement ("Agreement") is effective as of the 17th day of September, 2003
("Effective Date") between THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR
UNIVERSITY ("Stanford"), an institution of higher education having corporate
powers under the laws of the State of California, and Alnylam Pharmaceuticals,
Inc. ("Alnylam" or "Licensee"), a corporation having a principal place of
business at 790 Memorial Drive, Suite 202, Cambridge, MA 02139. Stanford and
Alnylam agree as follows:

1        BACKGROUND

1.1      Stanford has an assignment of "Efficient RNA Transfection to the Livers
         of Living Mice" from the laboratory of Mark Kay ("Invention"), as
         described in Stanford Docket S00-012 and any Licensed Patent, as
         defined below, which may issue to the Invention.

1.2      Stanford wants to have the Invention perfected and marketed as soon as
         possible so that resulting products may be available for public use and
         benefit.

1.3      Alnylam wants a license under the Invention, and Licensed Patent to
         develop, manufacture, use, and sell Licensed Product in the field of
         use of Delivery of synthesized siRNA molecules for research and
         therapeutic use.

1.4      The Technology and Invention were made in the course of research
         supported by the National Institutes of Health (NIH).

2        DEFINITIONS

2.1      "Licensed Patents" means all patent applications filed on the Invention
         and all patents issuing thereon including

         (A)      Stanford's U.S. Patent Application, Serial Number [**]
                  entitled [**],[**],

         (B)      Stanford's U.S. Patent Application, Serial Number [**]
                  entitled [**],

         (C)      [**]the Continuation-in-Part, Serial Number [**] entitled
                  [**], and

         (D)      any divisions, continuations and any foreign patent
                  application or equivalent corresponding thereto, and any
                  Letters patent or equivalent thereof issuing thereon or
                  reissue, reexamination or extension thereof.

         (E)      Continuation-in-part applications (CIPs) that are offered to
                  the other co-exclusive licensee will also be offered to
                  Alnylam for licensing in the Licensed Field of Use.

2.2      "Licensed Product" means any product or part in the Licensed Field of
         Use, the manufacture, use, or sale of which:

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         (A)      is covered by a valid claim of an issued, unexpired Licensed
                  Patent directed to the Invention in the country in which it is
                  made, used or sold. A claim of an issued, unexpired Licensed
                  Patent is presumed to be valid unless it has been held to be
                  invalid or unenforceable by a final judgment of a court of
                  competent jurisdiction from which no appeal can be or is
                  taken; rendered unenforceable through disclaimer or otherwise;
                  donated to the public; or lost through an interference
                  proceeding; or

         (B)      is covered by any claim being prosecuted in a pending
                  application of Licensed Patents in the country in which it is
                  made, used or sold unless such claim has been pending in such
                  application or an earlier application of Licensed Patents for
                  greater than [**] years.

2.3      "Net Sales" means the gross commercialization revenue derived by
         Alnylam and any sublicensee from Licensed Product, less the following
         items but only as they actually pertain to the disposition of Licensed
         Product by Alnylam and any sublicensee, are included in gross revenue,
         and are separately billed:

         (A)      import, export, excise and sales taxes, and custom duties;

         (B)      costs of insurance, packing, and transportation from the place
                  of manufacture to the customer's premises or point of
                  installation;

         (C)      costs of installation at the place of use; and

         (D)      credit for returns, allowances, or trades; and

         (E)      customary trade, quantity or cash discounts actually allowed
                  or taken.

         (F)      Where Licensed Products are not sold separately, but are sold
                  in combination with or as parts of other therapeutic products,
                  hereinafter such combinations referred to as a "Combination
                  Product" and the Licensed Product and each such other product
                  being referred to as a "Component Product", the Net Sales
                  price to be used for the purpose of calculating royalties
                  payable in respect of Combination Products must be determined
                  by multiplying the Net Sales price of the Combination Product
                  by the percentage value of the Licensed Product comprising a
                  Component Product contained in the Combination Product, such
                  percentage value being determined by dividing the current
                  market value of the Licensed Product comprising a Component
                  Product by a sum of the separate current market values of each
                  of the Component Products which are contained in the
                  Combination Product. The current market value of each of the
                  Component Products must be for a quantity comparable to that
                  contained in the Combination Product and of the same class,
                  purity and potency. When no current market value is available
                  for a Component Product, a reasonable hypothetical market
                  value for such Component Product based upon the allocation of
                  the same proportions of costs, reasonable overhead and profits
                  (all of which must be determined on the basis of generally
                  accepted accounting principles) as are or should be allocated
                  to similar Component Products and having an ascertainable
                  market value.

2.4      "siRNA Molecule" means an agent that modulates expression of a target
         gene by an RNA interference mechanism.

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2.5      "Licensed Field of Use" means delivery of ex-vivo synthesized siRNA
         Molecules for research, development and therapeutic uses (including a
         diagnostic necessary for development, sale or reimbursement of a
         therapeutic Licensed Product). The Licensed Field of Use specifically
         excludes delivery of any system producing in vivo expressed siRNAs for
         therapeutic use, including but not limited to episomal and integrated
         vectors, and recombinant viruses.

2.6      "Licensed Territory" means worldwide.

2.7      "Co-Exclusive" means that, subject to Article 4, Stanford will only
         grant one further license in the Licensed Territory in the Licensed
         Field of Use.

2.8      "Affiliate" means any legal entity (such as a corporation, partnership,
         or limited liability company) that directly, or indirectly through one
         or more intermediaries, controls or is controlled by, or is under
         common control with Company and that is bound by the terms and
         conditions of this Agreement. For the purposes of this definition, the
         term "control" means (i) beneficial ownership of at least fifty percent
         (50%) of the voting securities of a corporation or other business
         organization with voting securities or (ii) a fifty percent (50%) or
         greater interest in the net assets or profits of a partnership or other
         business organization without voting securities. For purposes of this
         Agreement, the term Alnylam shall include its Affiliates, unless the
         context indicates otherwise.

3        GRANT

3.1      GRANT. Stanford grants and Alnylam accepts a license in the Licensed
         Field of Use to make, have made, use, have used, sell, have sold,
         import and have imported Licensed Product in the Licensed Territory.

3.2      CO-EXCLUSIVITY. The license is Co-Exclusive, including the right to
         sublicense pursuant to Article 13, in the Licensed Field of Use for a
         term beginning on the Effective Date, and ending, on a
         country-by-country basis, on the expiration of the last to expire of
         Licensed Patents.

3.3      RETAINED RIGHTS. Stanford may practice the Invention and use the
         Technology for its own bona fide research, including sponsored research
         and collaborations. Stanford has the right to publish any information
         included in Technology and Licensed Patent.

3.4      EXCLUSIVITY.

         (A)      If the other Co-Licensee discontinues licensing this Field of
                  Use, then the Field of Use will become exclusive for Alnylam.

         (B)      If the other Co-Licensee discontinues any other therapeutic
                  license under the Licensed Patents, Stanford shall so inform
                  Alnylam and Alnylam shall have the option to obtain an
                  exclusive, worldwide sublicensable license to such therapeutic
                  field. The terms of any such license shall be negotiated in
                  good faith by Stanford and Alnylam. This option may be
                  exercised by Alnylam by written notice to Stanford at any time
                  during a period of ninety (90) days after notification by
                  Stanford.

4        GOVERNMENT RIGHTS

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This Agreement is subject to all of the terms and conditions of Title 35 United
States Code Sections 200 through 204, including an obligation that Licensed
Product sold or produced in the United States be "manufactured substantially in
the United States." Alnylam will take all reasonable action necessary on its
part as licensee to enable Stanford to satisfy its obligations to the U.S.
Government under Title 35. If Alnylam reasonably desires an exception to the
government requirement of substantial manufacture in the United States then
Stanford shall reasonably cooperate with Alnylam in obtaining such exception.

5        DILIGENCE

5.1      MILESTONES. As an inducement to Stanford to enter into this Agreement,
         Alnylam will use all commercially reasonable efforts and diligence to
         develop, manufacture, and sell or lease Licensed Product and to
         diligently develop markets for the Licensed Product. In particular,
         Alnylam will meet the milestones shown in Appendix A, which shall
         satisfy Alnylam's diligence obligations. If Alnylam in good faith fails
         to meet a milestone set forth in Appendix A, then Alnylam shall have a
         [**] period of time to reestablish diligence towards its objectives,
         and if Alnylam reestablishes diligence towards its objectives during
         this [**] period, any prior lack of diligence will be deemed cured. If
         Alnylam does not reestablish diligence towards its objectives during
         this [**] period, Stanford may terminate this Agreement if Alnylam has
         not met the milestones. Stanford may terminate this Agreement if
         Alnylam or a sublicensee has not sold Licensed Product for any [**]
         period after Alnylam's or a sublicensee's first commercial sale of
         Licensed Product. Efforts by Alnylam's sublicensees or Affiliates shall
         be considered efforts of Alnylam under this section.

5.2      PROGRESS REPORT. Alnylam acknowledges that diligent development of
         Licensed Product is of utmost importance to Stanford. On or before
         September 30 of each year until Alnylam markets a Licensed Product,
         Alnylam will make a written annual report in confidence to Stanford
         covering the preceding year ending June 30, regarding the progress of
         Alnylam toward commercialization of Licensed Product. The report will
         include, as a minimum, information (e.g., summary of work completed,
         key scientific discoveries, summary of work in progress, current
         schedule of anticipated events or milestones and market plans for
         introduction of Licensed Product) sufficient to enable Stanford to
         satisfy reporting requirements of the U.S. Government and for Stanford
         to ascertain progress by Alnylam toward meeting the diligence
         requirements of this Article 5.

6        ROYALTIES

6.1      ISSUE ROYALTY. Alnylam will pay to Stanford a noncreditable,
         nonrefundable license issue royalty of $[**] on signing this Agreement.

6.2      MINIMUM ROYALTY. Beginning one year from the Effective Date, and each
         anniversary thereafter, Alnylam will pay to Stanford a yearly royalty
         of $[**]. Yearly royalty payments are nonrefundable, but they are
         creditable against earned royalties to the extent provided in Section
         6.4.

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6.3      EARNED ROYALTY. In addition, Alnylam will pay Stanford earned royalties
         on Net Sales as follows:

         (A)      [**]% of Net Sales for a Licensed Product subject to the
                  following;

         (B)      Such royalty payments shall be reduced up to [**]% (from [**]%
                  of Net Sales down to [**]% of Net Sales) by the amount of
                  royalty paid to access additional intellectual property
                  necessary in order to sell Licensed Products ("Additional
                  Earned Royalties").

         (C)      Such royalty payments shall be reduced as follows:

                  (1)      [**]% if Additional Earned Royalties are [**]% or
                           less.

                  (2)      [**]% if Additional Earned Royalties are greater than
                           [**]% but less than [**]%.

                  (3)      [**]% if Additional Earned Royalties are equal to or
                           greater than [**]% but less than [**]%.

                  (4)      [**]% if Additional Earned Royalties are equal to or
                           greater than [**]% but less than [**]%.

                  (5)      [**]% if Additional Earned Royalties are equal to or
                           higher than [**]%.

         (D)      Only one royalty is due on each Licensed Product sold by
                  Alnylam or its sublicensees regardless of whether its
                  manufacture, use, importation or sale are or shall be covered
                  by more than one patent or patent application included in
                  Licensed Patents under this Agreement, and no further
                  royalties will be due for use of such Licensed Product by
                  Alnylam or its sublicensee's customers.

6.4      CREDITABLE PAYMENTS. Creditable payments under this Agreement will be
         an offset to Alnylam against each earned royalty payment which Alnylam
         would be required to pay under Section 6.3 until the entire credit is
         exhausted.

6.5      MILESTONE PAYMENTS.

         (A)      For the first Licensed Product, Alnylam will make the
                  following payments for the filing of an IND, initiation of
                  Phase II trial, initiation of Phase III trial, and approval of
                  New Drug Application or equivalent in the U.S. ("Milestone
                  Payments"):

                  (1)      $[**] for filing of the first IND.

                  (2)      $[**] for initiation of the first Phase II trial.

                  (3)      $[**] for initiation of the first Phase III trial.

                  (4)      $[**] for approval of the first New Drug Application
                           or equivalent regulatory approval in the U.S.

         (B)      For the second Licensed Product, Alnylam will make the
                  following Milestone Payments:

                  (1)      $[**] for filing of the first IND.

                  (2)      $[**] for initiation of the first Phase II trial.

                  (3)      $[**] for initiation of the first Phase III trial.

                  (4)      $[**] for approval of the first New Drug Application
                           or equivalent regulatory approval in the U.S.

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         (C)      For the third and every subsequent Licensed Product, Alnylam
                  will make the following Milestone Payments:

                  (1)      $[**] for filing of the first IND.

                  (2)      $[**] for initiation of the first Phase II trial.

                  (3)      $[**] for initiation of the first Phase III trial.

                  (4)      $[**] for approval of the first New Drug Application
                           or equivalent regulatory approval in the U.S.

         (D)      Notwithstanding the above, at the time that Stanford receives
                  a Milestone Payment from Alnylam on behalf of a sublicensee
                  under Section 13.6, the corresponding Milestone Payment under
                  this Section 6.5 will not be due.

6.6      OBLIGATION TO PAY ROYALTIES. If this Agreement is not terminated in
         accordance with other provisions, Alnylam will be obligated to pay
         royalties on all Licensed Product that is either sold or produced under
         the license granted in Article 3, whether or not the Licensed Product
         is produced before the Effective Date of this Agreement or sold after
         the Licensed Patent has expired.

6.7      CURRENCY. The royalty on sales in currencies other than U.S. Dollars
         will be calculated using the appropriate foreign exchange rate for the
         currency quoted by the Bank of America (San Francisco) foreign exchange
         desk, on the close of business on the last banking day of each calendar
         quarter. Royalty payments to Stanford will be in U.S. Dollars. All
         non-U.S. taxes related to royalty payments will be paid by Alnylam and
         are not deductible from the payments due Stanford. Stanford shall
         assist Alnylam as reasonably requested by Alnylam and at Alnylam's
         expense, in recovering such taxes to the extent possible under
         applicable tax laws and treaties.

6.8      PATENT COSTS. Within thirty days after receiving a statement from
         Stanford during the Co-Exclusive period, Alnylam will reimburse
         Stanford:

         (A)      [**] of the Licensed Patent patenting expenses incurred by
                  Stanford before the Effective Date; and

         (B)      $[**] per year for Licensed Patent patenting expenses incurred
                  by Stanford after the Effective Date.

         (C)      If the Field of Use covered in this license becomes Exclusive
                  for Alnylam, Stanford and Alnylam will negotiate coverage of
                  patent expenses in good faith.

6.9      PATENT PROSECUTION.

         (A)      Stanford will be responsible for the filing, prosecution and
                  maintenance of the Licensed Patents. Alnylam shall be kept
                  informed of and shall receive copies of all documentation and
                  substantive actions pertaining to the filing, prosecution and
                  maintenance of Licensed Patents. Alnylam shall have reasonable
                  opportunities to participate in decision making and Stanford
                  will use diligent efforts to incorporate Alnylam's reasonable
                  suggestion.

         (B)      Throughout the term of this agreement, Alnylam will retain
                  rights to any claims that have support in the Licensed Patents
                  (defined in Section 2.1), whether or not they are in a CIP.

         (C)      If Stanford elects not to continue to seek or maintain patent
                  prosecution on any Licensed Patent in any country during the
                  co-exclusive term of the license despite

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                  Alnylam's willingness to pay its share of the prosecution
                  costs, Alnylam shall have the right, at its expense, to
                  procure, maintain and enforce in any country such Licensed
                  Patent.

6.10     MOST FAVORED LICENSEE Stanford warrants and represents that it has not
         granted a license in the Field of Use to another party and shall not do
         so in the future on terms that are more favorable than those hereby
         granted to Alnylam.

7        ROYALTY REPORTS, PAYMENTS, AND ACCOUNTING

7.1      QUARTERLY EARNED ROYALTY PAYMENT AND REPORT. Beginning with the first
         sale of a Licensed Product, Alnylam will make written reports (even if
         there are no sales) and earned royalty payments to Stanford within
         thirty days after the end of each calendar quarter. This report will be
         in the form of the report of Appendix B and will state the number,
         description, and aggregate Net Sales of Licensed Product during the
         completed calendar quarter, and resulting calculation pursuant to
         Section 6.3 of earned royalty payment due Stanford for the completed
         calendar quarter. With each report, Alnylam will include payment due
         Stanford of royalties for the completed calendar quarter.

7.2      TERMINATION REPORT. Alnylam will make a written report to Stanford
         within ninety days after the license expires under Section 3.2. Alnylam
         will continue to make reports after the license has expired, until all
         Licensed Product produced under the license have been sold or
         destroyed. Concurrent with the submittal of each post-termination
         report, Alnylam will pay Stanford all applicable royalties.

7.3      ACCOUNTING. Alnylam will keep and maintain records for a period of
         three years showing the manufacture, sale, use, and other disposition
         of products sold or otherwise disposed of under the license. Records
         will include general-ledger records showing cash receipts and expenses,
         and records that include production records, customers, serial numbers,
         and related information in sufficient detail to enable Alnylam to
         determine the royalties payable under this Agreement.

7.4      AUDIT BY STANFORD. Alnylam will permit an independent certified public
         accountant selected by Stanford and acceptable to Alnylam to examine
         Alnylam's books and records from time to time (but no more than one
         time a year) to the extent necessary to verify reports provided for in
         Sections 7.1 and 7.2. Stanford will pay for the cost of such audit,
         unless the results of the audit reveal an underreporting of royalties
         due Stanford of five percent or more, in which case, Alnylam will pay
         the audit costs.

8        NEGATION OF WARRANTIES

8.1      To the best of Stanford's OTL knowledge, Stanford is the sole owner of
         Licensed Patent and has the right to enter into this Agreement and to
         grant the rights and licenses set forth herein.

8.2      NEGATION OF WARRANTIES. Nothing in this Agreement is construed as:

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         (A)      Stanford's warranty or representation as to the validity or
                  scope of any Licensed Patent;

         (B)      A warranty or representation that anything made, used, sold,
                  or otherwise disposed of under any license granted in this
                  Agreement is or will be free from infringement of patents,
                  copyrights, and other rights of third parties;

         (C)      An obligation to bring suit against third parties for
                  infringement, except as described in Article 12;

         (D)      Granting by implication, estoppel, or otherwise any licenses
                  or rights under patents or other rights of Stanford or other
                  persons other than Licensed Patent, regardless of whether the
                  patents or other rights are dominant or subordinate to any
                  Licensed Patent; or

         (E)      An obligation to furnish any technology or technological
                  information.

8.3      NO WARRANTIES. Except as expressly set forth in this Agreement,
         Stanford makes no representations and extends no warranties of any
         kind, either express or implied. There are no express or implied
         warranties of merchantability or fitness for a particular purpose, or
         that Licensed Product will not infringe any patent, copyright,
         trademark, or other rights, or any other express or implied warranties.

8.4      SPECIFIC EXCLUSION. Nothing in this Agreement grants Alnylam any
         express or implied license or right under or to U.S. Patent 4,656,134
         entitled "Amplification of Eucaryotic Genes" or any patent application
         corresponding thereto.

9        INDEMNITY

9.1      INDEMNIFICATION. Alnylam will indemnify, hold harmless, and defend
         Stanford and Stanford Hospitals and Clinics, and their respective
         trustees, officers, employees, students, and agents against all claims
         for death, illness, personal injury, property damage, and improper
         business practices arising out of the manufacture, use, sale, or other
         disposition of Invention, Licensed Patent, Licensed Product, by Alnylam
         or any sublicensee, or their customers except to the extent such claims
         are due to the gross negligence or willful misconduct of Stanford.
         Stanford agreed to promptly notify Alnylam in writing of any such claim
         and Alnylam shall manage and control, at its own expense, the defense
         of such claim and its settlement. Alnylam agrees not to settle any such
         claim against Stanford without Stanford's written consent where such
         settlement would include any admission of liability on the part of
         Stanford, where the settlement would impose any restriction on the
         conduct by Stanford of any of its activities, or where the settlement
         would not include an unconditional release of Stanford from all
         liability for claims that are the subject matter of such claim.

9.2      NO LIABILITY. Subject to Section 9.1, neither party will be liable to
         each other for any loss profit, expectation, punitive or other
         indirect, special, consequential, or other damages whatsoever, in
         connection with any claim arising out of or related to this Agreement
         whether grounded in tort (including negligence), strict liability,
         contract, or otherwise.

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9.3      WORKERS' COMPENSATION. Alnylam will at all times comply, through
         insurance or self-insurance, with all statutory workers' compensation
         and employers' liability requirements covering all employees with
         respect to activities performed under this Agreement.

9.4      INSURANCE. Alnylam will maintain, during the term of this Agreement,
         Comprehensive General Liability Insurance, including Product Liability
         Insurance prior to commercialization, with a reputable and financially
         secure insurance carrier to cover the activities of Alnylam and its
         sublicensees. Upon initiation of human clinical trials of Licensed
         Product, such insurance will provide minimum limits of liability of
         Five Million Dollars and will include Stanford and Stanford Hospitals
         and Clinics, and their respective trustees, directors, officers,
         employees, students, and agents as additional insureds. Insurance will
         be written to cover claims incurred, discovered, manifested, or made
         during or after the expiration of this Agreement and must be placed
         with carriers with ratings of at least A- as rated by A.M. Best.
         Alnylam will furnish a Certificate of Insurance evidencing primary
         coverage and additional insured requirements and requiring thirty (30)
         days prior written notice of cancellation or material change to
         Stanford. Alnylam will advise Stanford, in writing, that it maintains
         excess liability coverage (following form) over primary insurance for
         at least the minimum limits set forth above. All insurance of Alnylam
         will be primary coverage; insurance of Stanford and Stanford Hospitals
         and Clinics will be excess and noncontributory.

10       MARKING

Before the issuance of Licensed Patents, Alnylam will mark Licensed Product (or
their containers or labels) made, sold, or otherwise disposed of by it under the
license granted in this Agreement with the words "Patent Pending," and following
the issuance of one or more patents, with the numbers of the Licensed Patent.

11       STANFORD NAMES AND MARKS

Alnylam will not identify Stanford in any promotional advertising or other
promotional materials to be disseminated to the public or to use the name of any
Stanford faculty member, employee, or student, or any trademark, service mark,
trade name, or symbol of Stanford or Stanford Hospitals and Clinics, or any that
is associated with any of them, without Stanford's prior written consent, except
as may be required by law. Any use of Stanford's name will be limited to
statements of fact, e.g., that Stanford has co-exclusively licensed Licensed
Patents to Alnylam, and will not imply endorsement of Alnylam's products or
services.

12       INFRINGEMENT BY OTHERS: PROTECTION OF PATENTS

12.1     INFRINGEMENT ACTION.

         (A)      The parties will promptly inform each other of any suspected
                  infringement of any Licensed Patent by a third party.

         (B)      Stanford, Licensee and the other Co-Exclusive licensee will
                  meet to discuss the matter during the Co-Exclusive period of
                  this Agreement.

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         (C)      If the Field-of-Use becomes Exclusive for Licensee, Stanford
                  and Licensee will meet to discuss the matter during the
                  Exclusive period of this Agreement.

         (D)      If Stanford does not choose to institute suit against said
                  third party within sixty days of notification, then the suit
                  may be brought in both Licensee's and the other Co-Exclusive
                  licensee's names, and Stanford's name if necessary and the
                  out-of-pocket costs thereof shall be borne equally by Licensee
                  and the other Co-Exclusive licensee and any recovery or
                  settlement shall be shared equally between Licensee and the
                  other Co-Exclusive licensee. In such situation, Licensee and
                  the other Co-Exclusive licensee shall agree to the manner in
                  which they exercise control over such action and if either
                  party desires to also be represented by separate counsel of
                  its own selection, the fees for such counsel shall be paid by
                  such party.

         (E)      If both, Stanford and the other Co-Exclusive licensee, or
                  Stanford if there is no other Co-Exclusive Licensee, choose
                  not to institute suit against said third party within sixty
                  days of notification, then Licensee shall have the right to
                  institute suit in its own name or if necessary, in Stanford's
                  name, to enjoin such infringement. Licensee shall bear the
                  entire cost of such litigation and shall be entitled to retain
                  the entire amount of any recovery or settlement. However, any
                  recovery in excess of litigation/settlement costs will be
                  considered Net Sales and Licensee will pay Stanford royalties
                  as indicated in Article 6 hereof. Stanford shall provide
                  reasonable assistance to Licensee in the prosecution of any
                  such suit brought by Licensee, at Licensee's expense.

13       SUBLICENSING

13.1     PERMITTED SUBLICENSING FOR LICENSED CO-EXCLUSIVE FIELD OF USE. Alnylam
         may grant sublicenses in the Co-exclusive Licensed Field of Use during
         the Co-Exclusive period:

         (A)      only in conjunction with intellectual property under Alnylam's
                  control; and

         (B)      only if Alnylam is developing or selling Licensed Products in
                  the Co-Exclusive Licensed Field of Use.

13.2     REQUIRED SUBLICENSING FOR LICENSED CO-EXCLUSIVE FIELD OF USE.

         (A)      If Alnylam or its sublicensee(s) is unable or unwilling to
                  serve or develop a potential market or market territory for
                  which there is a willing sublicensee, Alnylam will, at
                  Stanford's request, negotiate in good faith a sublicense under
                  the Licensed Patents, provided that the same request has been
                  made of the other Co-Exclusive licensee.

         (B)      Bona fide business concerns of Alnylam will be considered in
                  any good faith negotiations for a sublicense under this
                  Agreement and Alnylam shall not be required to
                  license/sublicense any other intellectual property to such
                  sublicensee.

         (C)      If the other Co-Exclusive licensee itself or through its
                  sublicensees is already developing a product in the market or
                  market territory for which there is a willing sublicensee,
                  Alnylam will not be required to sublicense to such party.

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         (D)      In case that any other issue arises in the context of Required
                  Sublicensing, Stanford will discuss and try to resolve such
                  issue with Alnylam in good faith.

13.3     SUBLICENSE REQUIREMENTS. Any sublicense granted by Alnylam under this
         Agreement will be subject and subordinate to terms and conditions of
         this Agreement, except:

         (A)      Sublicense terms and conditions will reflect that any
                  sublicensee will not further sublicense, with the exception
                  that sublicensee may further sublicense rights under Licensed
                  Patents only as needed or implied in the course of
                  distribution or performance of service as required for the
                  sale to an end user of Licensed Products; and

         (B)      The earned royalty rate specified in the sublicense may be at
                  different rates than the rates in this Agreement.

13.4     SUBLICENSES REVERT TO STANFORD. Any sublicense will expressly include
         the provisions of Articles 7, 8, and 9 for the benefit of Stanford. If
         a sublicensee desires that its sublicense survive the termination of
         this agreement, Stanford agrees that the sublicense will revert to
         Stanford subject to the transfer of all obligations, including the
         payment of royalties specified in the sublicense, to Stanford or its
         designee, if this Agreement is terminated.

13.5     COPY OF SUBLICENSES. Alnylam will provide Stanford in confidence a copy
         of all relevant portions of any sublicenses granted pursuant to this
         Article 13.

13.6     SHARING OF SUBLICENSING INCOME. In addition to the earned royalties
         defined in Article 6, Alnylam will pay Stanford [**] percent ([**]%) of
         the amount received by Alnylam, that is specifically attributable to
         the Licensed Patents, from a sublicensee in

         (A)      up-front license fees, and

         (B)      clinical Milestone Payments as defined in Article 6.5.

13.7     ROYALTY-FREE SUBLICENSES. Alnylam may grant royalty-free or noncash
         sublicenses or cross-licenses if Alnylam pays all royalties due
         Stanford from sublicensee's Net Sales.

14       TERMINATION

14.1     TERMINATION BY ALNYLAM - Alnylam may terminate this Agreement by giving
         Stanford notice in writing at least thirty days in advance of the
         effective date of termination selected by Alnylam.

14.2     TERMINATION BY STANFORD - Stanford may terminate this Agreement if:

         (A)      Alnylam is:

                  (1)      delinquent on any royalty payment or report;

                  (2)      not diligently developing and commercializing
                           Licensed Product in accordance with Article 5 hereof;

                  (3)      in breach of any material provision; or

                  (4)      provides any false report; and

         (B)      Alnylam fails to remedy the breach within sixty days after
                  written notice by Stanford.

                                                                  Page: 11 of 16
<PAGE>

14.3     SURVIVING PROVISIONS - Surviving any termination or expiration are:

         (A)      Alnylam's obligation to pay royalties accrued or accruable
                  based on Licensed Product made, used or sold during the term
                  of this Agreement;

         (B)      Any cause of action or claim of Alnylam or Stanford, accrued
                  or to accrue, because of any breach or default by the other
                  party; and

         (C)      The provisions of Articles 6, 7, 8, and 9, 18.8and any other
                  provisions that by their nature are intended to survive.

15       ASSIGNMENT

15.1     ASSIGNMENT BY ALNYLAM - Alnylam may assign this Agreement to an
         Affiliate or, subject to Section 15.2 as part of:

         (A)      A sale or other transfer of Alnylam's entire business; or

         (B)      Sale or other transfer of that part of Alnylam's business to
                  which the license granted hereby relates.

15.2     CONDITIONS OF ASSIGNMENT - Prior to any assignment,

         (A)      Alnylam must give Stanford written notice of the assignment,
                  including the new assignee's contact information and;

         (B)      The new assignee must agree in writing to Stanford to be bound
                  by this Agreement.

         (C)      If the new assignee is a pharmaceutical or biotechnology
                  company having aggregate annual sales revenues of at least 3
                  times higher than the aggregate annual sales revenues of
                  Alnylam, Stanford must have received a $40,000 assignment fee.

15.3     AFTER THE ASSIGNMENT - Upon assignment of this Agreement, Alnylam will
         be released of liability under this Agreement and the term "Alnylam" as
         used in this Agreement will mean the new assignee.

16       ARBITRATION

16.1     DISPUTE RESOLUTION BY ARBITRATION. Any controversy arising under or
         related to this Agreement, and any disputed claim by either party
         against the other under this Agreement excluding any dispute relating
         to patent validity or infringement arising under this Agreement, will
         be settled by arbitration in accordance with the Licensing Agreement
         Arbitration Rules of the American Arbitration Association.

16.2     REQUEST FOR ARBITRATION. Either party may request arbitration. Stanford
         and Alnylam will mutually agree in writing on a third party arbitrator
         within thirty days of the arbitration request. The arbitrator's
         decision will be final and nonappealable and may be entered in any
         court having jurisdiction.

                                                                  Page: 12 of 16
<PAGE>

16.3     DISCOVERY. The parties will be entitled to discovery as if the
         arbitration were a civil suit in the California Superior Court. The
         arbitrator may limit the scope, time, and issues involved in discovery.

16.4     PLACE OF ARBITRATION. The parties will mutually agree in writing to a
         place where arbitration will be held.

17       NOTICES

All notices under this Agreement will be sent by first class mail, registered or
certified with return receipt requested, by reputable overnight courier or
delivered personally and shall be deemed to have been fully given upon receipt:

All general notices to Alnylam will be sent to:

                                    John Maraganore, Ph.D.
                                    President and Chief Executive Officer
                                    Alnylam Pharmaceuticals, Inc.
                                    790 Memorial Drive, Suite 202
                                    Cambridge, MA 02139

All financial invoices to Alnylam (i.e., accounting contact) will be sent in
writing to:

                                    Mary Trueblood
                                    Controller
                                    Alnylam Pharmaceuticals, Inc.
                                    790 Memorial Drive, Suite 202
                                    Cambridge, MA 02139

                                                                  Page: 13 of 16
<PAGE>

All progress report invoices to Alnylam (i.e., technical contact) will be sent
in writing to:

                                    Nagesh Mahanthappa, Ph.D., M.BA.
                                    Director, Corporate Development
                                    Alnylam Pharmaceuticals, Inc.
                                    790 Memorial Drive, Suite 202
                                    Cambridge, MA 02139

All general notices to Stanford will be e-mailed or mailed to:

                                    Office of Technology Licensing
                                    900 Welch Road, Suite 350
                                    Palo Alto, CA 94304-1080
                                    info@otlmail.Stanford.edu

All payments to Stanford will be mailed to:

                                    Stanford University
                                    Office of Technology Licensing
                                    Department #44439
                                    P.O. Box 44000
                                    San Francisco, CA 94144-4439

All progress reports to Stanford will be e-mailed or mailed to:

                                    Office of Technology Licensing
                                    1705 El Camino Real
                                    Palo Alto, CA 94306-1106
                                    info@otlmail.Stanford.edu

Either party may change its address with written notice to the other party.

18       MISCELLANEOUS

18.1     WAIVER AND AMENDMENT. This Agreement may be amended, supplemented or
         otherwise modified only by means of a written instrument signed by both
         parties. None of the terms of this Agreement can be waived except by
         the written consent of the party waiving compliance.

18.2     CHOICE OF LAW. This Agreement will be governed by the laws of the State
         of California applicable to agreements negotiated, executed, and
         performed within California.

18.3     HEADINGS. The headings in this Agreement are for convenience of
         reference only and do not constitute a part of it. The headings do not
         affect its interpretation.

                                                                  Page: 14 of 16
<PAGE>

18.4     FORCE MAJEURE. Neither party will be responsible for delays resulting
         from causes beyond the reasonable control of such party, including
         without limitation fire, explosion, flood, war, strike, or riot,
         provided that the nonperforming party uses commercially reasonable
         efforts to avoid or remove such causes of nonperformance and continues
         performance under this Agreement with reasonable dispatch whenever such
         causes are removed.

18.5     BINDING EFFECT. This Agreement shall be binding upon and inure to the
         benefit of the parties and their respective permitted successors and
         assigns.

18.6     SEVERABILITY In the event that any provision of this Agreement shall be
         held invalid or unenforceable for any reason, such invalidity or
         unenforceability shall not affect any other provision of this
         Agreement, and the parties shall negotiate in good faith to modify the
         Agreement to preserve (to the extent possible) their original intent.

18.7     ENTIRE AGREEMENT This Agreement constitutes the entire agreement
         between the parties with respect to its subject matter and supercedes
         all prior agreements or understandings between the parties relating to
         its subject matter.

18.8     CONFIDENTIALITY. Stanford agrees that diligent efforts shall be used to
         maintain the confidentiality of reports or documents received from
         Alnylam or its Affiliate or sublicensees pursuant to this Agreement.

The parties execute this Agreement in duplicate originals by their duly
authorized officers or representatives.

                           THE BOARD OF TRUSTEES OF THE LELAND

                           STANFORD JUNIOR UNIVERSITY

                                              /s/ Katharine Ku
                                    Signature __________________________________

                                             Katharine Ku
                                    Name    ____________________________________

                                             Director, Technology Licensing
                                    Title   ____________________________________

                                             Sept. 17, 2003
                                    Date    ____________________________________

                           LICENSEE

                                    Signature /s/John Maraganore

                                              _________________________________

                                    Name John Maraganore

                                    Title President and CEO

                                             September 19, 2003
                                    Date    ____________________________________

                                                                  Page: 15 of 16
<PAGE>

                             APPENDIX A: MILESTONES

1.       By the end of the year [**], Alnylam will [**].

2.       By the end of the year [**], Alnylam will [**].

3.       By the end of the year [**], Alnylam will [**].

                                                                  Page: 16 of 16

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