Document:

Document

Exhibit 10.1

PATENT CROSS-LICENSE AGREEMENT

between

DICERNA PHARMACEUTICALS, INC.
and
ALNYLAM PHARMACEUTICALS, INC.

April 3, 2020

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH “[***]”. SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED.
ACTIVE/104190464.2

TABLE OF CONTENTS
        Page
						
	1. DEFINITIONS AND INTERPRETATIONS
	1

		
	2. LICENSES
	12

		
	3. DEVELOPMENT AND REGULATORY
	17

		
	4. COMMERCIALIZATION AND MANUFACTURING
	18

		
	5. FINANCIAL PROVISIONS
	18

		
	6. REPORTS AND PAYMENT TERMS
	19

		
	7. INTELLECTUAL PROPERTY RIGHTS
	22

		
	8. CONFIDENTIALITY
	22

		
	9. PUBLICITY
	24

		
	10. TERM AND TERMINATION
	24

		
	11. REPRESENTATIONS AND WARRANTIES
	26

		
	12. INDEMNIFICATION AND LIABILITY
	27

		
	13. GENERAL PROVISIONS
	29

i

PATENT CROSS-LICENSE AGREEMENT

THIS PATENT CROSS-LICENSE AGREEMENT (the “Agreement”), effective as of April 3, 2020 (the “Effective Date”), is by and between Dicerna Pharmaceuticals, Inc., a corporation organized and existing under the laws of Delaware, with its principal business office located at 33 Hayden Avenue, Lexington, MA 02421 (“Dicerna”) and Alnylam Pharmaceuticals, Inc., a corporation organized and existing under the laws of Delaware, with its principal business office located at 675 West Kendall Street, Henri A. Termeer Square, Cambridge, MA 02142 (“Alnylam”).  Dicerna and Alnylam are each referred to individually as a “Party” and together as the “Parties”.
BACKGROUND
WHEREAS, Dicerna and Alnylam wish to grant each other non-exclusive patent licenses on the terms set forth in herein.
NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, the sufficiency of which is acknowledged by both Parties, the Parties agree as follows:
1. DEFINITIONS AND INTERPRETATIONS
Capitalized terms used in this Agreement shall have the meanings specified in this Article 1, or as defined elsewhere in this Agreement.
1.1 “Acquired Party” has the meaning set forth in Section 2.7.
1.2 “Acquirer” has the meaning set forth in the definition of “Change of Control”.
1.3 “Additional Alnylam In-Licenses” means the agreements set forth in Section A of Exhibit A.
1.4 “Additional Dicerna In-Licenses” means the agreements set forth in Section A of Exhibit B.
1.5 “Affiliate” means, with respect to a Party, any legal entity which, at the time such determination is being made, is controlled by, controlling or under common control with such Party.  As used in this definition, the term “control,” whether used as a noun or a verb, refers to the possession, directly or indirectly, of the power to direct, or cause the direction of, the management or policies of a legal entity, whether through the ownership of voting rights (e.g., fifty percent (50%) or more of the equity, the ordinary voting power or the general partnership interest), by contract or otherwise.
1.6 “Alnylam Existing In-Licenses” means the agreements set forth in Section B of Exhibit A.
1.7 “Alnylam Existing Third Party Agreements” means (a) the Alnylam Existing In-Licenses and (b) the agreements set forth in Section C of Exhibit A.  Alnylam Existing Third Party 

Agreements also include any Additional Alnylam In-License included within the definition of Alnylam Existing Third Party Agreements pursuant to Section 2.5.2(a).
1.8 “Alnylam Indemnified Party” has the meaning set forth in Section 12.2.
1.9 “Alnylam In-License” means any (a) the Alnylam Existing In-Licenses; (b) any Additional Alnylam In-License included within the definition of Alnylam Existing Third Party Agreements pursuant to Section 2.5.2(a); and (c) any agreement between Alnylam (or its Affiliates) and a Third Party entered into after the Effective Date pursuant to which Alnylam acquires Control of any Patent Rights that Cover the Research, Development, registration, making (including formulation), having made, use, Commercialization, or other exploitation of Dicerna Products in the Field in the Territory; but only to the extent such agreement is designated as an Alnylam In-License pursuant to Section 2.5.1.
1.10 “Alnylam Licensed Patent Rights” means (a) the Patent Rights that are Controlled by Alnylam or its Affiliates as of the Effective Date, as set forth in a list agreed upon by the Parties contemporaneously with the execution of this Agreement; and (b) any additional Patent Rights that (x) are Controlled by Alnylam or its Affiliates as of the Effective Date or during the Term, (y) Cover the Research, Development, registration, making (including formulation), having made, use, Commercialization, or other exploitation of Dicerna Products in the Field in the Territory, and (z) are included in the definition of Alnylam Licensed Patent Rights pursuant to Section 2.4.1.  For the avoidance of doubt, the Alnylam Licensed Patent Rights do not include (i) any Patent Rights Covering any targeting ligand or other siRNA delivery technology other than GalNAc or (ii) any Patent Rights licensed to Alnylam under [***].
1.11 “Alnylam Products” means Lumasiran and any Backups thereof.
1.12 “Annual Net Sales” means, with respect to a particular Product and Calendar Year, all Net Sales of such Product during such Calendar Year.
1.13 “Applicable Laws” means all federal, state, local, national and supra-national laws, statutes, rules and regulations, including any rules, regulations, guidelines or requirements of Regulatory Authorities, taxing authorities, national securities exchange or securities listing organizations that may be in effect from time to time during the Term and applicable to a particular activity hereunder.
1.14 “Assigning Party” has the meaning set forth in Section 6.3.1.
1.15 “Backup” means (a) with respect to Lumasiran, any RNAi Therapeutic, other than Lumasiran, that meets all of the following requirements: (i) is Directed to same target gene as Lumasiran; (ii) does not include any targeting ligand or other siRNA delivery technology other than GalNAc; (iii) is Controlled by Alnylam prior to or after the Effective Date; and (iv) can be used in the Field; and (b) with respect to Nedosiran, any RNAi Therapeutic, other than Nedosiran, that meets all of the following requirements: (i) is Directed to same target gene as Nedosiran; (ii) does not include any targeting ligand or other siRNA delivery technology other than GalNAc; (iii) is Controlled by Dicerna prior to or after the Effective Date; and (iv) can be used in the Field.
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1.16 “Business Day” means any day other than a Saturday, Sunday or any other day on which commercial banks in New York, New York, U.S.A. are authorized or required by Applicable Laws to remain closed.
1.17 “Calendar Quarter” means any respective period of three (3) consecutive calendar months ending on March 31, June 30, September 30 and December 31 of any Calendar Year.
1.18 “Calendar Year” means each successive period of twelve (12) months commencing on January 1 and ending on December 31.
1.19 “Change of Control” means with respect to a Party (or its ultimate parent), (a) a merger, acquisition, consolidation or reorganization of such Party (or its ultimate parent) with a Third Party that results in the voting securities of such Party (or its ultimate parent) outstanding immediately prior thereto, or any securities into which such voting securities have been converted or exchanged, ceasing to represent more than [***] of the combined voting power of the surviving entity or the parent of the surviving entity immediately after such merger or consolidation, (b) a transaction or series of related transactions in which a Third Party, together with its Affiliates, becomes the “beneficial owner” (as such term is used in Section 13(d) of the Securities Exchange Act of 1934, as amended, and Rule 13d-3 thereunder (or, in each case, any successor thereto), except that a Person shall be deemed to have “beneficial ownership” of all shares that any such Person has the right to acquire, whether such right may be exercised immediately or only after the passage of time), directly or indirectly, of more than [***] of the combined voting power of the outstanding securities of such Party (or its ultimate parent), or (c) the sale or other transfer to a Third Party, whether directly or indirectly by a Party or an Affiliate thereof, of all or substantially all of such Party’s (or its ultimate parent’s) business.  The acquiring or combining Third Party in any of (a), (b) or (c), and any of such Third Party’s Affiliates (whether in existence as of or any time following the applicable transaction, but other than the acquired Party and its Affiliates in existence prior to the applicable transaction or Affiliates it controls after the applicable transaction) are referred to collectively herein as the “Acquirer”.
1.20 “Claims” has the meaning set forth in Section 12.1.
1.21 “Clinical Trial” means any human clinical trial.
1.22 “CNS” means central nervous system, which includes the brain and spinal cord, dorsal root, trigeminal, pterygopalatine ganglia, submandibular ganglia, otic ganglia, and ciliary ganglia, but excluding peripheral nerves (other than dorsal root, trigeminal, pterygopalatine ganglia, submandibular ganglia, otic ganglia, and ciliary ganglia), the neuromuscular junction and muscle.
1.23 “Code” has the meaning set forth in Section 10.6.
1.24 “Combination Product” means a pharmaceutical formulation containing as its active ingredients both a Product and one or more other therapeutically active compounds or ingredients.
1.25 “Commercialization” or “Commercialize” means any and all activities directed to the offering for sale and sale of a Product, or other compound, product or therapy including: (a) 
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activities directed to storing, marketing, promoting, detailing, distributing, importing, exporting, selling and offering to sell that Product, or other compound, product or therapy; (b) conducting Clinical Trials after Marketing Authorization of a Product, or other compound, product or therapy with respect to such Product, or other compound, product or therapy; (c) interacting with Regulatory Authorities regarding the foregoing; and (d) seeking pricing approvals and reimbursement approvals (as applicable) for that Product, or other compound, product or therapy in the Territory.  When used as a verb, to “Commercialize” and “Commercializing” means to engage in Commercialization and “Commercialized” has a corresponding meaning.
1.26 “Commercially Reasonable Efforts” of a Party means that level of efforts, expertise and resources commonly applied by such Party to carry out a particular task or obligation, consistent with the general practice followed by such Party relating to other pharmaceutical compounds, products or therapies owned by it, or to which it has exclusive rights, which are of similar market potential at a similar stage in their development or product life, taking into account issues of safety and efficacy, product profile, the competitiveness of other products in development and in the marketplace, supply chain management considerations, the proprietary position of the compound, product or therapy (including with respect to patent or regulatory exclusivity), the regulatory structure involved, the profitability of the applicable compound, product or therapy (including pricing and reimbursement status achieved), and other relevant technical, legal, scientific or medical factors.  [***]
1.27 “Confidentiality Agreement” has the meaning set forth in Section 13.11.
1.28 “Confidential Information” means all Know-How or other information or materials of a Party, in any form (written, oral, electronic, photographic, or otherwise) that is confidential or proprietary, including:
(a) all such information or materials regarding or concerning any Product of such Party, or any other technical or business information;
(b) all communications between the Parties or information of whatever kind whether recorded or not and, if recorded, in whatever medium, relating to or arising out of this Agreement, whether disclosed prior to or after entering into this Agreement;
(c) any information that the Party indicates in writing is information of a confidential nature or which is marked “confidential”; and
(d) all copies and excerpts of the communications, information, notes, reports and documents in whatever form referred to in subclauses (a) through (d) of this definition.
For purposes of the confidentiality obligations set forth herein the terms and conditions of this Agreement shall be deemed Confidential Information of both Parties for purposes of the restriction on disclosure.
1.29 “Control” or “Controlled” means, with respect to any Patent Right or other intellectual property right, that a Party owns or has a license to, such Patent Right or other intellectual property right, and in each case, has the power to grant to the other Party, access, a 
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license, or a sublicense (as applicable) to the same on the terms and conditions set forth in this Agreement without violating any obligations of the granting Party owed to a Third Party; provided that, with respect to rights to any Third Party Patent Right or other intellectual property right that is licensed to, or otherwise obtained by, (i) a Party or its Affiliates pursuant to an agreement entered into by such Party or any of its Affiliates after the Effective Date, or (ii) Alnylam or its Affiliates pursuant to any Additional Alnylam In-License or Dicerna or its Affiliates pursuant to an Additional Dicerna In-License, such Third Party Patent Rights or other intellectual property right shall be deemed not to be under the Control of such Party or its Affiliates unless and until the agreement pursuant to which such rights are obtained becomes an In-License pursuant to Section 2.5.1 or Section 2.5.2, as the case may be.
1.30 “Covered” or “Cover” means, with respect to a Product in a particular country and a particular Patent Right, that the manufacture, use, sale or importation of such Product in such country would, but for the licenses granted herein, infringe a Valid Claim in such Patent Right.
1.31 “Development” or “Develop” means, with respect to a Product (or other compound, product or therapy), any Research, non-clinical and clinical drug development activities that are necessary or useful to obtain Marketing Authorization for such Product, or other compound, product or therapy, including completions of Clinical Trials and the preparation and filing of Regulatory Filings and all regulatory affairs related to the foregoing.  When used as a verb, “Developing” means to engage in Development and “Developed” has a corresponding meaning.  For clarity, “Development” shall not include any Commercialization activities.
1.32 “Dicerna Existing In-Licenses” means the agreements set forth in Section B of Exhibit B.
1.33 “Dicerna Existing Third Party Agreements” means (a) the Dicerna Existing In-Licenses and (b) the agreements set forth in Section C of Exhibit B.  Dicerna Existing Third Party Agreements also include any Additional Dicerna In-License included within the definition of Dicerna Existing Third Party Agreements pursuant to Section 2.5.2(b).
1.34 “Dicerna Indemnified Party” has the meaning set forth in Section 12.1.
1.35 “Dicerna In-License” means any (a) Dicerna Existing In-Licenses; (b) any Additional Dicerna In-License included within the definition of Dicerna Existing Third Party Agreements pursuant to Section 2.5.2(b), and (c) any agreement between Dicerna (or its Affiliates) and a Third Party entered into after the Effective Date pursuant to which Dicerna acquires Control of any Patent Rights that Cover the Research, Development, registration, making (including formulation), having made, use, Commercialization, or other exploitation of Alnylam Products in the Field in the Territory, but only to the extent such agreement is designated as a Dicerna In-License pursuant to Section 2.5.1.
1.36 “Dicerna Licensed Patent Rights” means (a) the Patent Rights that are Controlled by Dicerna or its Affiliates as of the Effective Date, as set forth in a list agreed upon by the Parties contemporaneously with the execution of this Agreement; and (b) any additional Patent Rights that (x) are Controlled by Dicerna or its Affiliates as of the Effective Date or during the Term, (y) Cover the Research, Development, registration, making (including formulation), having made, use, 
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Commercialization, or other exploitation of Alnylam Products in the Field in the Territory, and (z) are included in the definition of Dicerna Licensed Patent Rights pursuant to Section 2.4.2.  For the avoidance of doubt, the Dicerna Licensed Patent Rights do not include any Patent Rights Covering any targeting ligand or other siRNA delivery technology other than GalNAc.
1.37 “Dicerna Product” means Nedosiran and any Backups thereof.
1.38 “Directed to” means, with respect to an siRNA and a target gene, [***].
1.39 “Dispute” has the meaning set forth in Section 13.4.1.
1.40 “Executive Officer” means an executive officer that is designated by a Party during the Term from time to time for dispute resolution purposes.
1.41 “Existing Third Party Agreements” means the Alnylam Existing Third Party Agreements and Dicerna Existing Third Party Agreements.
1.42 “Eye” means all parts of the eye, which for the avoidance of doubt, includes the cornea, iris, fovea, lens, macula, optic nerve, retina, pupil, sclera, and vitreous, and all periocular, periorbital and other accessary structures that support eye homeostasis, including conjunctiva, tissues of upper and lower eyelids, and fornices, meibomian glands, lacrimal glands and extraocular muscles.
1.43 “FDA” means the United States Food and Drug Administration and any successor thereto.
1.44 “Field” means the treatment or prevention of PH-related pathologies excluding any applications in the CNS or Eye (such as, without limitation, diseases or pathologies of the CNS or Eye, or any administration to the CNS or Eye, including intrathecal administration or intraocular administration).
1.45 “First Commercial Sale” means the first sale of a Product by Dicerna (in the case of the Dicerna Products) or by Alnylam (in the case of the Alnylam Products), or one of its Affiliates or their Sublicensees, to an unaffiliated third party after receipt of all Marketing Authorizations required to market and sell the applicable Product have been obtained in the country in which such Product is sold.  Sales for purposes of testing a Product and sample purposes shall not be deemed a First Commercial Sale.  Furthermore, for purposes of clarity, the term “First Commercial Sale” as used in this Agreement shall not include: (i) any distribution or other sale solely for so-called treatment IND sales, named patient sales, compassionate or emergency use sales or pre-license sales, in each case provided that such Product is distributed without charge or sold at or below cost; (ii) intercompany transfers to Affiliates of Dicerna (in the case of the Dicerna Products) or of Alnylam (in the case of the Alnylam Products) or between such entities and a Sublicensee of Dicerna (in the case of the Dicerna Products) or of Alnylam (in the case of the Alnylam Products) or an Affiliate, provided that a subsequent sale to an unaffiliated Third Party by such Affiliate of Dicerna (in the case of the Dicerna Products) or of Alnylam (in the case of the Alnylam Products) or Sublicensee is not considered an intercompany transfer; nor (iii) other similar non-commercial sales.
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1.46 “First Target” has the meaning set forth in the definition of “Directed to”.
1.47 “GalNAc” means an N-acetylgalactosamine ligand.
1.48 “Governmental Authority” means any court, commission, authority, department, ministry, official or other instrumentality of, or being vested with public authority under any law of, any country, state or local authority or any political subdivision thereof, or any association of countries.
1.49 “IND” means an investigational new drug application filed with the FDA with respect to a Product or other compound, product or therapy, or an equivalent application filed with a Regulatory Authority in a country other than the United States to commence a Clinical Trial of pharmaceutical product.
1.50 “Indemnified Party” has the meaning set forth in Section 12.3.1.
1.51 “Indemnifying Party” has the meaning set forth in Section 12.3.1.
1.52 “In-License” mean an Alnylam In-License or a Dicerna In-License.
1.53 “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended.
1.54 “Know-How” means all technical, scientific, and other information, know-how, data, inventions, discoveries, trade secrets, specifications, instructions, techniques, processes, designs, drawings, formulae, methods, practices, protocols, expertise and other information and technology applicable to formulations, compositions or products or to their manufacture, development, registration, use, marketing or sale or to methods of assaying or testing them, and all biological, chemical, pharmacological, biochemical, toxicological, pharmaceutical, physical and analytical, efficacy, safety and pharmacovigilance, chemistry, manufacturing and controls, quality control, preclinical and clinical data relevant to any of the foregoing.  For clarity, Know-How includes any such information comprised or embodied in any applicable physical materials, and excludes Patent Rights.
1.55 “Licensing Party” has the meaning set forth in Section 2.5.1.
1.56 “Losses” has the meaning set forth in Section 12.1.
1.57 “Lumasiran” means the molecule being Developed by Alnylam as of the Effective Date known or referred to by Alnylam as lumasiran, as further described in Exhibit D.
1.58 “Marketing Authorization” means, collectively, all Regulatory Approvals (including any pricing, reimbursement or access approvals) from the relevant Regulatory Authority necessary to initiate marketing and selling a Product in any country.
1.59 “MicroRNA” or “miRNA” means a structurally defined functional RNA molecule usually between [***] nucleotides in length, which is derived from an endogenous, genetically-encoded non-coding RNA which is predicted to be processed into a hairpin RNA structure that is a 
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substrate for the double-stranded RNA-specific ribonuclease drosha and subsequently is predicted to serve as a substrate for the enzyme dicer, a member of the RNase III enzyme family.
1.60 “MicroRNA Mimic” means a single-stranded or double-stranded oligonucleotide with the same or substantially similar base composition and sequence (including chemically modified bases) as a particular natural miRNA and which is designed to mimic the activity of such miRNA.  For clarity, MicroRNA Mimic excludes a double-stranded oligonucleotide which functions or is designed to function as an siRNA.
1.61 “Nedosiran” means the molecule being Developed by Dicerna as of the Effective Date known or referred to by Dicerna as Nedosiran (formerly designated DCR-PHXC), as further described in Exhibit C.
1.62 “Net Sales” shall mean, [***].
1.63 “Non-Acquired Party” has the meaning set forth in Section 2.7.
1.64 “Non-Assigning Party” has the meaning set forth in Section 6.3.1.
1.65 “Notice of Dispute” has the meaning set forth in Section 13.4.1.
1.66 “Patent Challenge by Alnylam” has the meaning set forth in Section 10.4.
1.67 “Patent Challenge by Dicerna” has the meaning set forth in Section 10.3.
1.68 “Patent Rights” means the rights and interests in and to issued patents and pending patent applications (which, for purposes of this Agreement, include certificates of invention, applications for certificates of invention and priority rights) in any country or region, including all provisional applications, substitutions, continuations, continuations-in-part, continued prosecution applications including requests for continued examination, divisional applications and renewals, and all letters patent or certificates of invention granted thereon, and all reissues, reexaminations, extensions (including pediatric exclusivity patent extensions), term restorations, renewals, substitutions, confirmations, registrations, revalidations, revisions and additions of or to any of the foregoing, and all foreign counterparts of any of the foregoing.
1.69 “Payee” has the meaning set forth in Section 6.3.2.
1.70 “Payor” has the meaning set forth in Section 6.3.2.
1.71 “Person” means any individual, corporation, partnership, association, joint-stock company, trust, unincorporated organization or government or political subdivision thereof.
1.72 “PH” means collectively primary hyperoxaluria types I, II and III.
1.73 “Pre-Existing Affiliates” has the meaning set forth in Section 2.7.
1.74 “Product” means all formulations, versions, or SKUs of Alnylam Product and/or Dicerna Product, as applicable, for use in the Field.
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1.75 “Regulatory Approval” means, collectively, any and all approvals (including supplements, amendments, pre- and post-approvals, pricing and reimbursement approvals), licenses, registrations or authorizations (including marketing and labeling authorizations) granted by or received from any Regulatory Authority that are necessary for the Research, Development, registration, manufacture (including formulation), distribution, importation, exportation, use, and Commercialization of a pharmaceutical product (including a Product) in a given jurisdiction.
1.76 “Regulatory Authority” means the FDA or any counterpart to the FDA outside the United States, or other Governmental Authority with authority over the Research, Development, registration, making (including formulation), use and Commercialization of a pharmaceutical product (including a Product), which may include the authority to grant the required reimbursement and pricing approvals for such sale.
1.77 “Regulatory Filings” means, individually or collectively, all applications, filings, submissions, licenses, registrations, permits, notifications, and authorizations (including marketing and labeling authorizations) or waivers with respect to the testing, Research, Development, registration, manufacture (including formulation), use and Commercialization of a Product made to or received from any Regulatory Authority in a given country, including INDs.
1.78 “Research” means all activities related to the research, identification, generation, formatting, screening, testing (including in vitro and animal models, but not in human subjects), stability testing, toxicology and formulation of compounds, products or therapies.
1.79 “RNAi Therapeutic” means any product that is based on or comprises at least one siRNA.
1.80 “Royalty” has the meaning set forth in Section 5.1.2.
1.81 “Royalty Term” means (i) with respect to each Dicerna Product in each country, the period from the First Commercial Sale of such Dicerna Product in such country until such Dicerna Product is no longer being Covered by a Valid Claim of the Alnylam Licensed Patent Rights in such country, and (ii) with respect to each Alnylam Product in each country, the period from the First Commercial Sale of such Alnylam Product in such country until such Alnylam Product is no longer being Covered by a Valid Claim of the Dicerna Licensed Patent Rights in such country.
1.82 “Second Target” has the meaning set forth in the definition of “Directed to”.
1.83 “siRNA” means an oligonucleotide composition of native or chemically modified RNA that targets a gene through activation of the RNA interference pathway, and that is not a MicroRNA, MicroRNA antagonist or MicroRNA Mimic.
1.84 “Sublicensed Party” has the meaning set forth in Section 2.5.3.
1.85 “Sublicensee” means a Third Party that is granted a license or sublicense to Research, Develop, make, have made, use, Commercialize or otherwise exploit Products in the 
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Field in the Territory or any portion thereof, beyond the mere right to purchase Products from a Party and its Affiliates.
1.86 “Sublicensor Party” has the meaning set forth in Section 2.5.3.
1.87 “Term” has the meaning set forth in Section 10.1.
1.88 “Territory” means worldwide.
1.89 “Third Party” means any Person other than Dicerna or Alnylam or an Affiliate of Dicerna or Alnylam.
1.90 “United States” or “U.S.” means the United States of America and its territories and possessions.
1.91 “USD” and “$” means United States dollars.
1.92 “Valid Claim” means any claim of: (a) an issued and unexpired patent, which claim has not been (i) revoked or held unenforceable, unpatentable or invalid by a decision of a court or other governmental agency of competent jurisdiction that is not appealable or has not been appealed within the time allowed for appeal, nor (ii) abandoned, disclaimed, denied or admitted to be invalid or unenforceable through reissue, re-examination or disclaimer or otherwise; or (b) a pending patent application that has not been pending for more than [***] years from the date of its earliest priority date that has not been cancelled, withdrawn, or abandoned, or finally rejected without the possibility of appeal or refiling; in each case of (a) and (b) (i) claiming the making, using, selling, offering for sale, importation or other exploitation of a Product and (ii) included within the Alnylam Licensed Patent Rights or the Dicerna Licensed Patent Rights.  A pending claim that ceases to be a Valid Claim due to the time limit in clause (b) shall, if it later issues, qualify again as a Valid Claim, provided that it meets the requirements of clause (a) of the foregoing definition.
1.93 “VAT” has the meaning set forth in Section 6.3.5.

2. LICENSES
2.1 License Grants.
2.1.1 License Grant to Dicerna.  Subject to the terms and conditions of this Agreement and the Alnylam Existing Third Party Agreements, Alnylam (on behalf of itself and its Affiliates) hereby grants to Dicerna a perpetual, irrevocable, non-exclusive license, with the right to grant sublicenses (through multiple tiers) as provided in Section 2.2, under the Alnylam Licensed Patent Rights to Research, Develop, register, make (including formulate), have made, use, Commercialize, or otherwise exploit the Dicerna Products in the Field in the Territory during the Term.
2.1.2 License Grant to Alnylam.  Subject to the terms and conditions of this Agreement and the Dicerna Existing Third Party Agreements, Dicerna (on behalf of itself and its 
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Affiliates) hereby grants to Alnylam a perpetual, irrevocable, non-exclusive license, with the right to grant sublicenses (through multiple tiers) as provided in Section 2.2, under the Dicerna Licensed Patent Rights to Research, Develop, register, make (including formulate), have made, use, Commercialize, or otherwise exploit the Alnylam Products in the Field in the Territory during the Term.
2.2 Sublicense Rights.  Subject to the terms and conditions of this Agreement, Dicerna and Alnylam shall each have the right to grant sublicenses, in full or in part, under any and all rights licensed to Dicerna and Alnylam, respectively, under Section 2.1 to its Affiliates and to any Third Party; subject, at all times, to the terms and conditions of this Agreement, and provided, further, that each Party shall still be entitled to receive under or as a result of any such sublicense the same Royalty as set forth in this Agreement.  Notwithstanding the foregoing, neither Party may grant any sublicenses under this Section 2.2 to any such Third Party if such sublicense is not part of a broader license to such Third Party that includes other material Patent Rights or other material intellectual property owned or controlled by the sublicensing Party.
2.3 Covenants.
2.3.1 Alnylam covenants that it will not: (a) willfully take any action that (i) would impose or result in a lien, charge or encumbrance of the Alnylam Licensed Patent Rights that would prevent or limit Dicerna’s exercise of its license rights to such Alnylam Licensed Patent Rights, or (ii) would materially adversely affect the license rights granted to Dicerna under this Agreement; or (b) assign, transfer, convey or otherwise grant to any Person any rights to any Alnylam Licensed Patent Rights (or any rights to any Patent Rights that would otherwise be included in the Alnylam Licensed Patent Rights if not assigned, transferred, conveyed, or otherwise granted to a Third Party), in any manner that is inconsistent with the licenses granted to Dicerna pursuant to Section 2.1.1.
2.3.2 Dicerna covenants that it will not: (a) willfully take any action that (i) would impose or result in a lien, charge or encumbrance of the Dicerna Licensed Patent Rights that would prevent or limit Alnylam’s exercise of its license rights to such Dicerna Licensed Patent Rights, or (ii) would materially adversely affect the license rights granted to Alnylam under this Agreement; or (b) assign, transfer, convey or otherwise grant to any Person any rights to any Dicerna Licensed Patent Rights (or any rights to any Patent Rights that would otherwise be included in the Dicerna Licensed Patent Rights if not assigned, transferred, conveyed, or otherwise granted to a Third Party), in any manner that is inconsistent with the licenses granted to Alnylam pursuant to Section 2.1.2.
2.4 Additional Licensed Patent Rights.
2.4.1 With regards to any additional Patent Rights (other than Patent Rights Covering any [***]) that (a) are Controlled by Alnylam or its Affiliates as of the Effective Date or during the Term, (b) Cover the Research, Development, registration, making (including formulation), having made, use, Commercialization, or other exploitation of Dicerna Products in the Field in the Territory, and (c) are not already listed for inclusion in the definition of Alnylam Licensed Patent Rights, Dicerna shall have the option, exercisable during the Term upon written notice to Alnylam, and on a Patent Right-by-Patent Right basis, to expand the definition of 
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Alnylam Licensed Patent Rights under this Agreement to include such additional Patent Rights.  Upon receipt of such written notice from Dicerna, such additional Patent Rights will thereafter be included within the definition of Alnylam Licensed Patent Rights and licensed to Dicerna Pursuant to Section 2.1.1, and the list mentioned in Section 1.10(a) will be updated accordingly.
2.4.2 With regards to any additional Patent Rights (other than Patent Rights Covering any targeting ligand or other siRNA delivery technology other than GalNAc) that (a) are Controlled by Dicerna or its Affiliates as of the Effective Date or during the Term, (b) Cover the Research, Development, registration, making (including formulation), having made, use, Commercialization, or other exploitation of Alnylam Products in the Field in the Territory, and (c) are not already listed for inclusion in the definition of Dicerna Licensed Patent Rights, Alnylam shall have the option, exercisable during the Term upon written notice to Dicerna, and on a Patent Right-by-Patent Right basis, to expand the definition of Dicerna Licensed Patent Rights under this Agreement to include such additional Patent Rights.  Upon receipt of such written notice from Alnylam, such additional Patent Rights will thereafter be included within the definition of Dicerna Licensed Patent Rights and licensed to Alnylam Pursuant to Section 2.1.2, and the list mentioned in Section 1.36(a) will be updated accordingly.
2.5 In-Licenses.
2.5.1 Acceptance of In-Licenses.  In the event that either Party (the “Licensing Party”) or its Affiliate enters into an agreement with a Third Party after the Effective Date meets the criteria set forth in clause (b) of the definition of Dicerna In-License or clause (b) of the definition of Alnylam In-License (as the case may be), then the Licensing Party will promptly provide the other Party with notice and a copy of the applicable Third Party agreement.  Within [***] days following receipt of such notice, the other Party will decide, in its sole discretion, whether to accept the applicable Third Party agreement as an Alnylam In-License or Dicerna In-License, as the case may be, and provide notice of such decision to the Licensing Party.  In the event that such other Party declines to accept such agreement as an Alnylam In-License or Dicerna In-License, as the case may be, any rights granted to the Licensing Party thereunder will not be deemed to be “Controlled” by the Licensing Party or licensed to the other Party under this Agreement.  In the event that the other Party accepts such Third Party agreement as an Alnylam In-License or Dicerna In-License, as the case may be, (i) such agreement will thereafter be included within the definition of Alnylam In-License or Dicerna In-License, as applicable, (ii) any rights granted to the Licensing Party thereunder will be deemed to be “Controlled” by the Licensing Party and sublicensed to the other Party pursuant to the terms of this Agreement, and (iii) the Parties will negotiate in good faith an allocation of the respective share each Party shall bear for payments made or to be made under such Third Party Agreement such that each Party will equitably bear responsibility for those payments arising from its activities under the rights licensed under such Third Party agreement (or in the case of the Party that is the sublicensee, arising from the grant of such sublicense).
2.5.2 Additional In-Licenses.
(a) Dicerna shall have the option, exercisable during the Term upon written notice to Alnylam, and on an Additional Alnylam In-License by Additional Alnylam In-License basis, to expand the definition of Alnylam Licensed Patent Rights under this 
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Agreement to include the Patent Rights Controlled by Alnylam under such Additional Alnylam In-License.  Upon receipt of such written notice from Dicerna, such agreement will thereafter be included within the definition of the Alnylam Existing Third Party Agreements, and all rights granted to Alnylam thereunder will be deemed to be “Controlled” by Alnylam and sublicensed to Dicerna under this Agreement effective as of the date of such written notice, and Exhibit A will be updated accordingly.  For the avoidance of doubt, in no event shall this Section 2.5.2(a) permit the Alnylam Licensed Patent Rights to expand to include (i) any Patent Rights Covering [***] or (ii) any Patent Rights licensed to Alnylam [***].
(b) Alnylam shall have the option, exercisable during the Term upon written notice to Alnylam, and on an Additional Dicerna In-License by Additional Dicerna In-License basis, to expand the definition of Dicerna Licensed Patent Rights under this Agreement to include the Patent Rights Controlled by Dicerna under such Additional Dicerna In-License.  Upon receipt of such written notice from Alnylam, such agreement will thereafter be included within the definition of the Dicerna Existing Third Party Agreements, and all rights granted to Dicerna thereunder will be deemed to be “Controlled” by Dicerna and sublicensed to Alnylam under this Agreement effective as of the date of such written notice, and Exhibit B will be updated accordingly.  For the avoidance of doubt, in no event shall this Section 2.5.2(b) permit the Dicerna Licensed Patent Rights to expand to include any Patent Rights Covering [***].
2.5.3 Compliance.  Each Party acknowledges and agrees that the sublicenses and other rights granted by the other Party to such first Party in this Agreement are subject to the terms of any In-Licenses to which such other Party or any of its Affiliates is a party.  Each Party granted a sublicense pursuant to this Agreement under any of the In-Licenses of the other Party (or any of its Affiliates) (the Party granted a sublicense, the “Sublicensed Party,” and the Party granting the sublicense, the “Sublicensor Party”) shall comply with, and perform and take such actions as may be required to allow the Sublicensor Party to comply with, all applicable terms and conditions of the In-Licenses of the Sublicensor Party to the extent (a) applicable to (i) the Sublicensed Party’s rights or obligations relating to the Development, manufacture or Commercialization of Products under this Agreement or (ii) the filing, prosecution, maintenance, extension, defense, enforcement or the further sublicensing of the Alnylam Licensed Patent Rights (if Alnylam is the Sublicensor Party) or the Dicerna Licensed Patent Rights (if Dicerna is the Sublicensor Party) to the extent relevant to the Sublicensed Party’s rights or obligations relating to the Development, manufacture or Commercialization of Products under this Agreement, and (b) the Sublicensed Party has been given written notice or provided a copy of such terms and conditions on or before the later of (i) the Effective Date and (ii) the date on which such In-License is first required to have been provided to the Sublicensed Party hereunder, including any such terms and conditions relating to sublicensing, patent matters, confidentiality, reporting, audit rights, indemnification and diligence.  Without limiting the foregoing, (x) the Parties shall, from time to time, upon the reasonable request of either Party, discuss the terms of any In-License and (y) each Sublicensed Party shall prepare and deliver to the Sublicensor Party any reports required under the applicable In-Licenses of the Sublicensor Party sufficiently in advance to enable the Sublicensor Party to comply with its obligations under the applicable In-Licenses, to the extent that the Sublicensed Party had been made aware of such 
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provisions sufficiently in advance of the date on which such compliance is required in order for such Sublicensed Party to properly prepare such reports.
2.6 No Implied Licenses or Rights.  Except as expressly set forth in this Agreement, neither Party, by virtue of this Agreement, shall acquire any license or other interest, by implication or otherwise, in any materials, Know-How, Patent Rights or other intellectual property rights Controlled by the other Party or its Affiliates not expressly granted under this Agreement.  Furthermore, notwithstanding anything to the contrary in this Agreement, by entering into this Agreement, neither Party is forfeiting any rights that such Party may have, including its rights to perform Research in compliance with 35 U.S.C. § 271(e)(1) or any experimental or Research use exemption that may apply in any country.
2.7 Effect of Change of Control.  [***]
2.8 Covenant Not to Sue.
2.8.1 With regards to any Patent Rights that (a) are Controlled by Alnylam or its Affiliates as of the Effective Date or during the Term, (b) Cover the Research, Development, registration, making (including formulation), having made, use, Commercialization, or other exploitation of Dicerna Products in the Field in the Territory, and (c) are not included in the definition of Alnylam Licensed Patent Rights, Alnylam and its Affiliates hereby agree and covenant not to sue Dicerna, Dicerna’s Affiliates, and any direct and indirect Sublicensees, during the Term in the event that a Dicerna Product or the Research, Development, registration, making (including formulation), having made, use, Commercialization, or other exploitation thereof in the Field infringes such Patent Rights.  Notwithstanding the foregoing, the Patent Rights subject to the covenant not to sue granted under this Section 2.8.1 shall not include any Patent Rights Covering any targeting ligand or other siRNA delivery technology other than GalNAc.  In addition, if Dicerna or any of its Affiliates (x) commences or participates in any action or proceeding (including any patent opposition or re-examination proceeding), or otherwise asserts any claim, challenging or denying the validity or enforceability of any Patent Rights subject to the covenant not to sue granted under this Section 2.8.1 or any claim thereof or (y) actively assists any other Person or entity in bringing or prosecuting any action or proceeding (including any patent opposition or re-examination proceeding) challenging or denying the validity or enforceability of any such Patent Rights or any claim thereof, then, to the extent permitted by the Applicable Laws, the covenant not to sue granted under this Section 2.8.1 shall terminate with respect to such Patent Rights.
2.8.2 With regards to any Patent Rights that (a) are Controlled by Dicerna or its Affiliates as of the Effective Date or during the Term, (b) Cover the Research, Development, registration, making (including formulation), having made, use, Commercialization, or other exploitation of Alnylam Products in the Field in the Territory, and (c) are not included in the definition of Dicerna Licensed Patent Rights, Dicerna and its Affiliates hereby agree and covenant not to sue Alnylam, Alnylam’s Affiliates, and any direct and indirect Sublicensees, during the Term in the event that a Alnylam Product or the Research, Development, registration, making (including formulation), having made, use, Commercialization, or other exploitation thereof in the Field infringes such Patent Rights.  Notwithstanding the foregoing, the Patent Rights subject to the covenant not to sue granted under this Section 2.8.2 shall not include any Patent Rights Covering 
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any targeting ligand or other siRNA delivery technology other than GalNAc.  In addition, if Alnylam or any of its Affiliates (x) commences or participates in any action or proceeding (including any patent opposition or re-examination proceeding), or otherwise asserts any claim, challenging or denying the validity or enforceability of any Patent Rights subject to the covenant not to sue granted under  this Section 2.8.2 or any claim thereof or (y) actively assists any other Person or entity in bringing or prosecuting any action or proceeding (including any patent opposition or re-examination proceeding) challenging or denying the validity or enforceability of any such Patent Rights or any claim thereof, then, to the extent permitted by the Applicable Laws, the covenant not to sue granted under this Section 2.8.2 shall terminate with respect to such Patent Rights.

3. DEVELOPMENT AND REGULATORY
3.1 Development Responsibilities.  As between the Parties, Dicerna shall have sole discretion and authority with respect to all decisions concerning the Research and Development of Dicerna Products in the Field, including the clinical and regulatory strategy of such Dicerna Products.  As between the Parties, Alnylam shall have sole discretion and authority with respect to all decisions concerning the Research and Development of Alnylam Products in the Field, including the clinical and regulatory strategy of such Alnylam Products. 
3.2 Regulatory Responsibilities.
3.2.1 As between the Parties, Dicerna shall, with respect to the Dicerna Products, (i) be responsible for the preparation, submission, and maintenance of all Regulatory Filings and obtaining and maintaining Regulatory Approvals and shall have sole control over all interactions with the applicable Regulatory Authority, (ii) have sole responsibility for safety management, including the timely reporting to the appropriate Governmental Authorities, of all adverse events and any other information concerning the safety of Dicerna Products, in each case, in accordance with Applicable Laws and (iii) own all right, title and interest in and to any and all Regulatory Filings and Regulatory Approvals and hold all such Regulatory Filings and Regulatory Approvals in its name.
3.2.2 As between the Parties, Alnylam shall, with respect to Alnylam Products, (i) be responsible for the preparation, submission, and maintenance of all Regulatory Filings and obtaining and maintaining Regulatory Approvals and have sole control over all interactions with the applicable Regulatory Authority, (ii) have sole responsibility for safety management, including the timely reporting to the appropriate Governmental Authorities, of all adverse events and any other information concerning the safety, in each case, in accordance with Applicable Laws, and (iii) own all right, title and interest in and to any and all Regulatory Filings and Regulatory Approvals and hold all such Regulatory Filings and Regulatory Approvals in its name.
3.3 Costs of Development.  Dicerna shall be responsible for its own costs and expenses for the Research and Development of the Dicerna Products, and Alnylam shall be responsible for its own costs and expenses for the Research and Development of Alnylam Products.

4. COMMERCIALIZATION AND MANUFACTURING
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4.1 Commercialization by Dicerna.  As between the Parties, Dicerna shall have the sole right and be responsible at its own expense for the Commercialization and manufacture of the Dicerna Products.  All decisions concerning the Commercialization and manufacture of Dicerna Products within the Territory, including the marketing and sales of Dicerna Products, and the design, price, and promotion of Dicerna Products are within the sole discretion of Dicerna.
4.2 Commercialization by Alnylam.  As between the Parties, Alnylam shall have the sole right and be responsible at its own expense for the Commercialization and manufacture of the Alnylam Products.  All decisions concerning the Commercialization and manufacture of Alnylam Products within the Territory, including the marketing and sales of Alnylam Products, and the design, price, and promotion of Alnylam Products, are within the sole discretion of Alnylam.

5. FINANCIAL PROVISIONS
5.1 Royalties to Alnylam.
5.1.1 Dicerna shall pay Alnylam a Royalty as set forth in Section 5.1.2 on a country-by-country and Dicerna Product-by-Dicerna Product basis during the Royalty Term, in each case subject to the Royalty reductions set forth below in this Section 5.1.
5.1.2 Royalties.  During the Royalty Term, Dicerna shall pay Alnylam a royalty on a Dicerna Product-by-Dicerna Product and country-by-country basis an amount equal to [***] of Net Sales of Dicerna Product (each such royalty payment, a “Royalty”).
5.1.3 Royalty Reduction - Third Party Royalties – Anti-Stacking.  If Dicerna determines that it is necessary for Dicerna or its Affiliates or Sublicensees to obtain a license from a Third Party after the Effective Date in order to Research, Develop, make (including formulate), have made, use, Commercialize or otherwise exploit a Dicerna Product in a particular country, Dicerna shall have the right to deduct [***] of all upfront, milestone, Royalty or other payments due under such license with the Third Party (to the extent not already subject to the payment sharing pursuant to Section 2.5.1) from the Royalty owing to Alnylam during the applicable period for the such Dicerna Product under Section 5.1.2, subject to the Royalty reduction floor as set forth below; provided, that any credit not applied because of such Royalty reduction floor may be carried forward to future Calendar Quarters.  Notwithstanding the foregoing, in no event shall the Dicerna be permitted to reduce royalties payable to Alnylam pursuant to this Section 5.1.3 below [***] of the royalties otherwise payable under Section 5.1.2.
5.2 Royalties to Dicerna.
5.2.1 Alnylam shall pay Dicerna a Royalty as set forth in Section 5.2.2 on a country-by-country and Alnylam Product-by-Alnylam Product basis during the Royalty Term, in each case subject to the Royalty reductions set forth below in this Section 5.2.
5.2.2 Royalties.  During the Royalty Term, Alnylam shall pay Dicerna a Royalty on an Alnylam Product-by-Alnylam Product and country-by-country basis on Annual Net Sales of Alnylam Product at the applicable Royalty rate set forth below, based on the time period during which such Net Sales accrue.
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	Time Period During Which Net Sales Accrue	Royalty Rate
	[***]	[***]
	[***]	[***]

5.2.3 Royalty Reduction - Third Party Royalties – Anti-Stacking.  If Alnylam determines that it is necessary for Alnylam or its Affiliates or Sublicensees to obtain a license from a Third Party after the Effective Date in order to Research, Develop, make (including formulate), have made, use, Commercialize or otherwise exploit an Alnylam Product in a particular country, Alnylam shall have the right to deduct [***] of all upfront, milestone, Royalty or other payments due under such license with the Third Party (to the extent not already subject to the payment sharing pursuant to Section 2.5.1) from the Royalty owing to Dicerna during the applicable period for the such Alnylam Product under Section 5.2.2, subject to the Royalty reduction floor as set forth below; provided, that any credit not applied because of such Royalty reduction floor may be carried forward to future Calendar Quarters.  Notwithstanding the foregoing, in no event shall the Alnylam be permitted to reduce royalties payable to Dicerna pursuant to this Section 5.2.3 below [***] of the royalties otherwise payable under Section 5.2.2.

6. REPORTS AND PAYMENT TERMS
6.1 Payment Terms.  During the Royalty Term with respect to any Royalties due from one Party to the other under this Agreement, the paying Party shall furnish to the other Party a quarterly report on sales of the paying Party’s Product within [***] days after each [***].  Such report shall include the Net Sales of such Product and the Royalties due (in USD).  Royalties shown to have accrued by each report provided under this Section 6.1 shall be due and payable [***].  In addition, the paying Party will, in advance of each such quarterly report and solely to the extent practicable, provide the other Party with preliminary good faith estimates of the Net Sales for the paying Party’s Product for the applicable [***].
6.2 Payment Currency / Exchange Rate.  All payments to be made by under this Agreement shall be made in USD.  Payments shall be made by electronic wire transfer of immediately available funds to the account of the recipient Party, as designated in writing to the paying Party.  If any currency conversion is required in connection with the calculation of amounts payable hereunder, such conversion shall be [***].
6.3 Taxes.
6.3.1 Income Taxes.  Except as provided in this Section 6.3.1, each Party shall pay all income and other taxes (including interest) imposed on or measured with respect to its own income accruing or paid to it under this Agreement.  Notwithstanding anything in this Agreement to the contrary, if one Party’s assignment of this Agreement (such Party, the “Assigning Party”) leads to the imposition of income tax liability on the other Party (such Party, the “Non-Assigning Party”) that would not have been imposed in the absence of such action or in an increase in such liability above the liability that would have been imposed in the absence of such action, the Assigning Party will indemnify and hold harmless the Non-Assigning Party from any such additional or increased income tax liability (except to the extent that the Non-Assigning Party or any of its Affiliates can obtain a refund or credit for such amounts, provided that the Non-
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Assigning Party will be reimbursed f by the Assigning Party or any reasonable out of pocket costs incurred in obtaining such a refund or credit).
6.3.2 Withholding Taxes.  If provision is made in law or regulation of any country for withholding of taxes of any type, levies or other charges with respect to any royalty or other amounts payable under this Agreement to a Party (the “Payee”), then the other Party (the “Payor”) shall timely pay such tax, levy or charge for and on behalf of the Payee to the proper Governmental Authority, and shall promptly furnish Payee with appropriate proof of payment of the withheld taxes as well as the official receipts sufficient to enable the Payee to claim credits for such payments of taxes; provided, however, that notwithstanding anything in this Agreement to the contrary, if an Assigning Party’s assignment of this Agreement leads to the imposition of withholding tax liability on a Non-Assigning Party that would not have been imposed in the absence of such action or in an increase in such liability above the liability that would have been imposed in the absence of such action, the Assigning Party will indemnify and hold harmless a Non-Assigning Party from any such additional or increased withholding tax liability (except to the extent that a Non-Assigning Party or any of its Affiliates can obtain a refund or credit of such withholding taxes, provided that a Non-Assigning Party will be reimbursed for any reasonable out of pocket costs incurred in obtaining such a refund or credit).  The Parties shall cooperate and exercise their reasonable best efforts to ensure that any such withholding taxes are mitigated or reduced to the extent possible under the provisions of any Applicable Laws, and shall provide the Payee reasonable assistance (including the provision of any tax forms and other information) in order to allow the Payee to obtain the benefit of any present or future treaty against double taxation or exemption from, refund or reduction in taxes which may apply to such payments.  To the extent that a Party is required to deduct and withhold taxes on any such payment pursuant to this Section 6.3.2, such Party will provide the Payee with written notice of the required withholding as promptly as reasonably practical (and in any event, no later than [***]) prior to making such payment.  To the extent such amounts are so deducted and withheld and timely remitted to the relevant tax authorities, such amounts shall be treated for all purposes under this Agreement as having been paid to the Party to whom such amounts would otherwise have been paid.
6.3.3 Foreign-Derived Deduction Eligible Income Reporting.  Alnylam shall obtain and deliver to Dicerna, on an annual basis and within [***] days of Dicerna’s request to provide, information as reasonably requested by Dicerna and in Alnylam’s possession to meet any documentation requirements imposed by regulations issued under Section 250 of the Internal Revenue Code for the treatment of an appropriate portion of such amounts as “foreign-derived deduction eligible income” within the meaning of Section 250 of the Internal Revenue Code and the regulations thereunder.
6.3.4 No Partnership for Tax Purposes.  The Parties acknowledge and agree that this Agreement is not intended to treated as a partnership or joint venture for United States federal and state tax purposes, and the Parties further agree to file all tax returns (including information returns) consistent with the foregoing intended tax treatment unless required by a final determination within the meaning of Section 1313 of the Internal Revenue Code.
6.3.5 Value Added Tax.  It is understood and agreed between the Parties that any payments made by any Party under this Agreement are exclusive of any value added tax (“VAT”) 
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or similar tax imposed upon such payments.  Where VAT is properly chargeable in respect of any supply of goods or services made under this Agreement, the Party paying the consideration for that supply will pay the amount of VAT subject to receipt of a valid tax invoice issued in accordance with Applicable Laws.
6.4 Audit Rights (Financial).
6.4.1 [***]

7. INTELLECTUAL PROPERTY RIGHTS
7.1 Ownership of Patent Rights.  [***]
7.2 Filing, Prosecution, Enforcement and Defense.
7.2.1 Filing and Prosecution.
(a) Alnylam Licensed Patent Rights.  [***]
(b) Dicerna Licensed Patent Rights.  [***]
7.2.2 Enforcement and Defense.
(a) Enforcement of Alnylam Licensed Patent Rights.  [***]
(b) Enforcement of Dicerna Licensed Patent Rights.  [***]
7.2.3 Recovery.  The Party having the right to initiate any infringement suit under Section 7.2.2 above shall have the sole and exclusive right to select counsel for any such suit and shall pay all expenses of the suit, including attorneys’ fees and court costs and reimbursement of the other Party’s reasonable out-of-pocket expense in rendering assistance requested by the initiating Party.  In connection with any such suit under Section 7.2.2, any damages, license fees, royalties or other compensation (including any amount received in settlement of such litigation), such amounts shall be allocated in all cases to the Party Controlling the asserted Patent Rights.

8. CONFIDENTIALITY
8.1 Duty of Confidence.  During the Term and for [***] years thereafter, all Confidential Information disclosed by one Party to the other Party hereunder shall be maintained in confidence by the recipient Party and shall not be disclosed to any Third Party or used for any purpose, except as set forth herein, without the prior written consent of the disclosing Party.  The recipient Party may only use Confidential Information of the other Party for purposes of exercising its rights and fulfilling its obligations under this Agreement and may disclose Confidential Information of the other Party and its Affiliates to employees, agents, contractors, consultants and advisers of the recipient Party and its Affiliates, licensees and Sublicensees to the extent reasonably necessary for such purposes; provided that such persons and entities are bound by confidentiality and non-use of the Confidential Information consistent with the confidentiality provisions of this Agreement as they apply to the recipient Party.
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8.2 Exceptions.  The obligations under this Article 8 shall not apply to any information to the extent the recipient Party can demonstrate by competent evidence that such information:
8.2.1 is (at the time of disclosure) or becomes (after the time of disclosure) known to the public or part of the public domain through no breach of this Agreement by the recipient Party or its Affiliates;
8.2.2 was known to, or was otherwise in the possession of, the recipient Party or its Affiliates prior to the time of disclosure by the disclosing Party;
8.2.3 is disclosed to the recipient Party or an Affiliate on a non-confidential basis by a Third Party that is entitled to disclose it without breaching any confidentiality obligation to the disclosing Party or any of its Affiliates; or
8.2.4 is independently developed by or on behalf of the recipient Party or its Affiliates, as evidenced by its written records, without use of or reference to the Confidential Information disclosed by the disclosing Party or its Affiliates under this Agreement.
8.3 Authorized Disclosures.  Subject to this Section 8.3, the recipient Party may disclose Confidential Information (including the Agreement) belonging to the other Party:
8.3.1 if such disclosure is deemed necessary by counsel to the recipient Party to be disclosed to such Party’s attorneys, independent accountants or financial advisors, for the sole purpose of enabling such attorneys, independent accountants or financial advisors to provide advice to the recipient Party, on the condition that such Persons are bound by confidentiality and non-use obligations consistent with the confidentiality provisions of this Agreement as they apply to the recipient Party;
8.3.2 to the extent required in connection with any judicial or administrative process relating to or arising from this Agreement (including any enforcement hereof) or to comply with applicable court orders or governmental regulations;
8.3.3 if the recipient Party is required by judicial or administrative process to disclose Confidential Information that is subject to the non-disclosure provisions of this Article 8, in which case such Party shall promptly inform the other Party of the disclosure that is being sought in order to provide the other Party an opportunity to challenge or limit the disclosure obligations.  Confidential Information that is disclosed as permitted by this Section 8.3 shall remain otherwise subject to the confidentiality and non-use provisions of this Article 8, and the Party disclosing Confidential Information as permitted by this Section 8.3 shall take all steps reasonably necessary, including obtaining an order of confidentiality and otherwise cooperating with the other Party, to ensure the continued confidential treatment of such Confidential Information;
8.3.4 if the recipient Party is required to make a disclosure by law, regulation or legal process, including by the rules or regulations of any tax authority, the United States Securities and Exchange Commission, or any other similar regulatory agencies in a country other than the United States or of any stock exchange or other securities trading institution.  In such event, a Party 
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disclosing Confidential Information of the other Party under this Section 8.3.4 shall disclose only such Confidential Information of such other Party as is required to be disclosed; or
8.3.5 if such disclosure is to the recipient Party’s bona fide potential or existing collaborators, financial partners, investors, acquirers or lenders, the recipient Party may disclose the terms of this Agreement to such collaborators, financial partners, investors, acquirers or lenders who have executed a non-disclosure agreement restricting such collaborators, financial partners, investor, acquirer or lender to use the terms of this Agreement solely for purposes of, and to the extent necessary for, evaluating the potential or existing collaboration, financial partnership, investment, acquisition or financing, restricting access to such individuals as may need to know the information for such evaluation, and strictly prohibiting disclosure of such terms by the prospective or existing collaborators, financial partners, investor, acquirer, or lender.

9. PUBLICITY
9.1 Publicity.  The Parties have mutually approved a joint press release attached hereto as Exhibit E.  Each Party agrees not to issue any other press release or other public statement, whether oral or written, disclosing the terms hereof or any of the activities conducted hereunder without the prior written consent of the other Party; provided, however, that neither Party will be prevented from complying with any duty of disclosure it may have pursuant to Applicable Laws or pursuant to the rules of any recognized stock exchange or quotation system subject to the restrictions set forth in Section 8.3.

10. TERM AND TERMINATION
10.1 Term.  Subject to Article 10, the term of this Agreement (the “Term”) will commence on the Effective Date and (subject to earlier termination in accordance with this Article 10) will expire upon the expiration of the last-to-expire Patent Rights licensed under Article 2.
10.2 Remedies for Breach; No Early Termination.  If Dicerna or any of its Affiliates on the one hand or Alnylam or any of its Affiliates on the other breaches this Agreement and such breach remains uncured for more than [***] days after the receipt by the breaching Party of notice specifying the breach and requiring its remedy, provided, prior to such notice being delivered, the Parties had fully complied with Section 13.4 (except as may otherwise be provided in Section 13.4.3); then on each such occasion, the non-breaching Party shall have the right to seek monetary damages for such breach, whether or not cured, and/or to seek equitable relief (including restraining orders, specific performance or other injunctive relief) to prevent such uncured breach from continuing or such breach from occurring again in the future.  The prevailing Party in such an action for monetary damages or equitable relief shall be entitled to recover reasonable attorneys’ fees and expenses from the other Party.  The Parties acknowledge and agree that the remedies provided for in this Section 10.2 are the sole and exclusive remedies for any breach of this Agreement, and no breach of this Agreement shall constitute grounds for termination of this Agreement or any of the rights or obligations set forth herein.
10.3 Challenges of Patent Rights by Dicerna.  If, during the Term, Dicerna or any of its Affiliates (a) commences or participates in any action or proceeding (including any patent 
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opposition or re-examination proceeding), or otherwise asserts any claim, challenging or denying the validity or enforceability of any Patent Rights licensed to Dicerna under this Agreement or any claim thereof or (b) actively assists any other Person or entity in bringing or prosecuting any action or proceeding (including any patent opposition or re-examination proceeding) challenging or denying the validity or enforceability of any Patent Rights licensed to Dicerna under this Agreement or any claim thereof (each of (a) and (b), a “Patent Challenge by Dicerna”), then, to the extent permitted by the Applicable Laws, Alnylam shall have the right, exercisable within [***] days following receipt of notice regarding such Patent Challenge by Dicerna, in its sole discretion, to give notice to Dicerna that Alnylam may terminate the license granted to Dicerna under Section 2.1.1 (which termination will be effective [***] days following such notice (or such longer period as Alnylam may designate in such notice)), and, unless Dicerna or such Affiliate withdraws or causes to be withdrawn all such challenge(s) within such [***] day period such that such challenge is actually withdrawn and no longer pending, Alnylam will have the right at its sole discretion to either terminate the license granted to Dicerna under Section 2.1.1 or reduce the royalty paid by Alnylam to [***], by providing written notice thereof to Dicerna.  The foregoing sentence shall not apply with respect to (i) any Patent Rights that Alnylam first asserts against Dicerna or any of its Affiliates where the Patent Challenge by Dicerna is made in defense of such assertion or (ii) any Patent Challenge commenced by a Third Party that, after the Effective Date, acquires or is acquired by Dicerna or its Affiliates or its or their business or assets, whether by stock purchase, merger, asset purchase or otherwise, but only with respect to Patent Challenges commenced prior to the closing of such acquisition.
10.4 Challenges of Patent Rights by Alnylam.  If, during the Term, Alnylam or any of its Affiliates (a) commences or participates in any action or proceeding (including any patent opposition or re-examination proceeding), or otherwise asserts any claim, challenging or denying the validity or enforceability of any Patent Rights licensed to Alnylam under this Agreement or any claim thereof or (b) actively assists any other Person or entity in bringing or prosecuting any action or proceeding (including any patent opposition or re-examination proceeding) challenging or denying the validity or enforceability of any Patent Rights licensed to Alnylam under this Agreement or any claim thereof (each of (a) and (b), a “Patent Challenge by Alnylam”), then, to the extent permitted by the Applicable Laws, Dicerna shall have the right, exercisable within [***] days following receipt of notice regarding such Patent Challenge by Alnylam, in its sole discretion, to give notice to Alnylam that Dicerna may terminate the license granted to Dicerna under Section 2.1.2 (which termination will be effective [***] days following such notice (or such longer period as Dicerna may designate in such notice)), and, unless Alnylam or such Affiliate withdraws or causes to be withdrawn all such challenge(s) within such [***]-day period such that such challenge is actually withdrawn and no longer pending, Dicerna will have the right at its sole discretion to either terminate the license granted to Alnylam under Section 2.1.2 or reduce the royalty paid by Dicerna to [***], by providing written notice thereof to Alnylam.  The foregoing sentence shall not apply with respect to (i) any Patent Rights that Dicerna first asserts against Alnylam or any of its Affiliates where the Patent Challenge by Alnylam is made in defense of such assertion or (ii) any Patent Challenge commenced by a Third Party that, after the Effective Date, acquires or is acquired by Alnylam or its Affiliates or its or their business or assets, whether by stock purchase, merger, asset purchase or otherwise, but only with respect to Patent Challenges commenced prior to the closing of such acquisition.
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10.5 Survival.  Termination of this Agreement shall not relieve the Parties of any obligation accruing prior to such termination, nor affect in any way the survival of any other right, duty or obligation of the Parties which is expressly stated elsewhere in this Agreement to survive such termination.  Without limiting the foregoing and except as expressly set forth otherwise in this Agreement, Section 1, Section 5 (solely to the extent any payments became payable prior to the effective date of such expiration or termination), Section 6 (with respect to Sections 6.1, 6.2, and 6.3, solely to the extent any payments became payable prior to the effective date of such expiration or termination), Section 7, Section 8, Section 9, Section 10.5, Section 12, and Section 13 shall survive to the extent applicable.  Except as otherwise expressly provided herein, all other rights and obligations of the Parties under this Agreement shall terminate upon termination of this Agreement.  For clarity, the Parties acknowledge and agree that the license grants in Section 2.1 are intended to be perpetual and irrevocable, subject to Sections 10.3 and 10.4.
10.6 Bankruptcy Code.  If this Agreement is rejected by a Party as a debtor under Section 365 of the United States Bankruptcy Code or similar provision in the bankruptcy laws of another jurisdiction (the “Code”), then, notwithstanding anything else in this Agreement to the contrary, all licenses and rights to licenses granted under or pursuant to this Agreement by the Party in bankruptcy to the other Party are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the Code (or similar provision in the bankruptcy laws of the jurisdiction), licenses of rights to “intellectual property” as defined under Section 101(35A) of the Code (or similar provision in the bankruptcy laws of another applicable jurisdiction).  The Parties agree that a Party that is a licensee of rights under this Agreement shall retain and may fully exercise all of its rights and elections under the Code, and that upon commencement of a bankruptcy proceeding by or against a Party under the Code, the other Party shall be entitled to a complete duplicate of, or complete access to (as such other Party deems appropriate), any such intellectual property and all embodiments of such intellectual property, if not already in such other Party’s possession, shall be promptly delivered to such other Party: (a) upon any such commencement of a bankruptcy proceeding upon written request therefor by such other Party, unless the bankrupt Party elects to continue to perform all of its obligations under this Agreement; or (b) if not delivered under the foregoing subclause (a), upon the rejection of this Agreement by or on behalf of the bankrupt Party upon written request therefor by the other Party.  The foregoing provisions of this Section 10.6 are without prejudice to any rights a Party may have arising under the Code.

11. REPRESENTATIONS AND WARRANTIES
11.1 Representations and Warranties by Each Party.  Each Party represents and warrants to the other as of the Effective Date that:
11.1.1 Good Standing.  It is a corporation duly organized, validly existing under the laws of the jurisdiction of its incorporation, and in good standing under the laws of its jurisdiction of formation.
11.1.2 Authority and Capabilities.  It has: (a) full corporate power and authority to execute, deliver, and perform this Agreement; (b) taken all corporate action(s) required by Applicable Laws and its organizational documents to authorize the execution and delivery of this Agreement, and the consummation of the transactions and performance of its obligations 
23

contemplated by this Agreement; and (c) sufficient facilities, experienced personnel and other capabilities to enable it to perform its obligations under this Agreement.
11.1.3 Valid and Binding.  This Agreement constitutes a legal, valid and binding agreement enforceable against it in accordance with its terms (except as the enforceability thereof may be limited by bankruptcy, bank moratorium or similar laws affecting creditors’ rights generally and laws restricting the availability of equitable remedies and may be subject to general principles of equity whether or not such enforceability is considered in a proceeding at law or in equity).
11.1.4 No Conflict.  The execution and delivery of this Agreement and all other instruments and documents required to be executed pursuant to this Agreement, and the consummation of the transactions contemplated hereby do not and shall not: (a) conflict with or result in a breach of any provision of its organizational documents; (b) result in a breach of any agreement to which it is a party; or (c) violate any Applicable Laws.
11.1.5 Licensed Patent Rights.  With respect to the Alnylam Licensed Patent Rights (in the case of Alnylam) and the Dicerna Licensed Patent Rights (in the case of Dicerna), it has sufficient right and authority to grant the licenses thereunder set forth in Section 2.
11.2 Representations, Warranties and Covenants of Dicerna.  Dicerna represents, warrants and covenants to Alnylam as follows, in each case as of the Effective Date:
11.2.1 Field Limitation.  Dicerna and its Affiliates will, and will cause its Sublicensees to, ensure that in no event will any Dicerna Product be (i) administered to or used in (or developed or designed for use or administration in) the CNS or Eye through any route of administration (including when administered intrathecally or intraocularly), or (ii) developed or commercialized as a prophylactic or therapeutic for a disease(s) of the CNS or Eye where the siRNA contained in such Product is conferring any therapeutic effect through interference in the CNS or Eye, as applicable, with the function of any messenger RNA encoded by the same target gene as such Dicerna Product.  Dicerna and its Affiliates will not be liable for uses by any Third Party of the Product outside of the approved label use(s) for such Product if and only if Dicerna and its Affiliates comply with all of the undertakings set forth on Exhibit F.
11.3 Limitation.  Neither Party makes any representation or warranty, either express or implied, that any of the Research, Development and/or Commercialization efforts with regard to any Product will be successful.
11.4 No Other Warranties.  Except as otherwise expressly set forth in this Agreement, each Party expressly disclaims any and all representations or warranties of any kind with respect to the subject matter of this Agreement, whether express or implied, including any warranties of non-infringement, merchantability or fitness for a particular purpose.

12. INDEMNIFICATION AND LIABILITY
12.1 Indemnification by Alnylam.  Alnylam shall indemnify, defend and hold Dicerna and its Affiliates, and their respective officers, directors, employees, contractors, agents and assigns (each, a “Dicerna Indemnified Party”), harmless from and against losses, damages and liability, 
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including reasonable legal expense and attorneys’ fees, (collectively, “Losses”) to which any Dicerna Indemnified Party may become subject as a result of any Third Party demands, claims or actions (“Claims”) against any Dicerna Indemnified Party (including product liability claims) arising or resulting from: (a) the fraud, gross negligence or willful misconduct of Alnylam or its Affiliates pursuant to this Agreement, (b) the material breach of any term in or the covenants, warranties, representations made by Alnylam to Dicerna under this Agreement, or (c) the Development or Commercialization of Alnylam Products by Alnylam or its Affiliates or Sublicensees.  Alnylam is only obliged to so indemnify and hold the Dicerna Indemnified Parties harmless to the extent that such Claims do not arise from the material breach of this Agreement by or the negligence or willful misconduct of Dicerna or a Dicerna Indemnified Party.
12.2 Indemnification by Dicerna.  Dicerna shall indemnify, defend and hold Alnylam and its Affiliates, and their respective officers, directors, employees, contractors, agents and assigns (each, a “Alnylam Indemnified Party”), harmless from and against Losses incurred by any Alnylam Indemnified Party as a result of any Third Party Claims against any Alnylam Indemnified Party (including product liability claims) arising or resulting from: (a) the fraud, gross negligence or willful misconduct of Dicerna or its Affiliates pursuant to this Agreement; (b) the material breach of any term in or the covenants, warranties, representations made by Dicerna to Alnylam under this Agreement, or (c) the Development or Commercialization of Dicerna Products by Dicerna or its Affiliates or Sublicensees.  Dicerna is only obliged to so indemnify and hold the Alnylam Indemnified Parties harmless to the extent that such Claims do not arise from the material breach of this Agreement or the negligence or willful misconduct of Alnylam or an Alnylam Indemnified Party.
12.3 Indemnification Procedure.
12.3.1 Any Dicerna Indemnified Party or Alnylam Indemnified Party seeking indemnification hereunder (“Indemnified Party”) shall notify the Party against whom indemnification is sought (“Indemnifying Party”) in writing reasonably promptly after the assertion against the Indemnified Party of any Claim in respect of which the Indemnified Party intends to base a claim for indemnification hereunder, but the failure or delay so to notify the Indemnifying Party shall not relieve the Indemnifying Party of any obligation or liability that it may have to the Indemnified Party except to the extent that the Indemnifying Party demonstrates that its ability to defend or resolve such Claim is adversely affected thereby.
12.3.2 Subject to the provisions of Section 12.3.3, the Indemnifying Party shall have the right, upon providing notice to the Indemnified Party of its intent to do so within [***]   days after receipt of the notice from the Indemnified Party of any Claim, to assume the defense and handling of such Claim, at the Indemnifying Party’s sole expense.
12.3.3 The Indemnifying Party shall select competent counsel in connection with conducting the defense and handling of such Claim, and the Indemnifying Party shall defend or handle the same in consultation with the Indemnified Party, and shall keep the Indemnified Party timely apprised of the status of such Claim.  The Indemnifying Party shall not, without the prior written consent of the Indemnified Party, agree to a settlement of any Claim which could lead to liability or create any financial or other obligation on the part of the Indemnified Party for which the Indemnified Party is not entitled to indemnification hereunder, or would involve any admission 
25

of wrongdoing on the part of the Indemnified Party.  The Indemnified Party shall cooperate with the Indemnifying Party, at the request and expense of the Indemnifying Party, and shall be entitled to participate in the defense and handling of such Claim with its own counsel and at its own expense.
12.4 Special, Indirect and Other Losses.  Neither Party nor any of its Affiliates shall be liable under this Agreement for special, indirect, incidental, punitive or consequential damages, including loss of profits suffered by the other Party, except for: (a) punitive or exemplary damages required to be paid to a Third Party pursuant to a non-appealable order of a court of competent jurisdiction in connection with a Third Party claim for which the Indemnified Party is entitled to indemnification hereunder; (b) such damages arising out of Article 8 of this Agreement by a Party, its Affiliates or Sublicensees; or (c) such damages arising out of the fraud, gross negligence or willful misconduct of the liable Party.
12.5 Insurance.  Each Party, at its own expense, shall maintain liability insurance (which may include self-insurance) in an amount adequate to cover its obligations under this Agreement during the Term, and shall provide to the other Party a certificate of insurance (or evidence of self-insurance) evidencing such coverage upon request.

13. GENERAL PROVISIONS
13.1 Assignment.  Except as provided in this Section 13.1, this Agreement may not be assigned or otherwise transferred, nor may any right or obligation hereunder be assigned or transferred, by either Party without the consent of the other Party; provided, however, that (and notwithstanding anything elsewhere in this Agreement to the contrary) (a) either Party may, without such consent, assign this Agreement and its rights and obligations hereunder in whole or in part: (i) to an Affiliate of such Party so long as such Party remains primarily liable for any acts or omissions of such Affiliate; (ii) to the Acquirer in connection with a Change of Control or to a Third Party in connection with a sale to such Third Party of all or substantially all of the business of such Party to which this Agreement relates.  Any attempted assignment not in accordance with this Section 13.1 shall be void.  The assigning Party shall promptly notify the other Party of any such permitted assignment, and any such permitted assignee shall assume in writing all assigned obligations of its assignor under this Agreement.
13.2 Severability.  Should one or more of the provisions of this Agreement become void or unenforceable as a matter of Applicable Laws, then this Agreement shall be construed as if such provision were not contained herein and the remainder of this Agreement shall be in full force and effect, and the Parties will use their best efforts to substitute for the invalid or unenforceable provision a valid and enforceable provision which conforms as nearly as possible with the original intent of the Parties.
13.3 Governing Law; English Language.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts and the patent laws of the United States without giving effect to any law that would result in the application of a different body of law than as set forth in this Section 13.3.  This Agreement was prepared in the English language, which language shall govern the interpretation of, and any Dispute regarding, the terms of this Agreement.
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13.4 Dispute Resolution.
13.4.1 If any dispute, claim or controversy of any nature arising out of or relating to this Agreement, including any action or claim based on tort, contract or statute, or concerning the interpretation, effect, termination, validity, performance or breach of this Agreement (each, a “Dispute”), arises between the Parties, if and as applicable, within [***] days after a written request by either Party to the other Party (“Notice of Dispute”), either Party may refer the Dispute to the Executive Officer of each Party for resolution through good faith negotiation of such Executive Officers.
13.4.2 If, after an additional [***] days after the Notice of Dispute, the Executive Officers have not succeeded in negotiating a resolution of the Dispute [***].
13.4.3 Notwithstanding the dispute resolution procedures set forth in this Section 13.4, in the event of an actual or threatened breach hereunder, the aggrieved Party may seek equitable relief (including restraining orders, specific performance or other injunctive relief) without submitting to the applicable dispute resolution procedure if there is a reasonable likelihood of the occurrence of irreparable harm during the period of the applicable dispute resolution procedure.
13.5 Force Majeure.  Neither Party shall be responsible to the other for any failure or delay in performing any of its obligations under this Agreement or for other nonperformance hereunder (excluding, in each case, the obligation to make payments when due) if such delay or nonperformance is caused by strike, fire, flood, earthquake, accident, war, act of terrorism, act of God or of the government of any country or of any local government, or by any other cause unavoidable or beyond the control of any Party hereto.  In such event, the affected Party shall use Commercially Reasonable Efforts to resume performance of its obligations and will keep the other Party informed of actions related thereto.
13.6 Waivers and Amendments.  The failure of any Party to assert a right hereunder or to insist upon compliance with any term or condition of this Agreement shall not constitute a waiver of that right or excuse a similar subsequent failure to perform any such term or condition by the other Party.  No waiver shall be effective unless it has been given in writing and signed by the Party giving such waiver.  No provision of this Agreement may be amended or modified other than by a written document signed by authorized representatives of each Party.
13.7 Relationship of the Parties.  Nothing contained in this Agreement shall be deemed to constitute a partnership, joint venture, or legal entity of any type between Alnylam and Dicerna, or to constitute one as the agent of the other.  Each Party shall act solely as an independent contractor, and nothing in this Agreement shall be construed to give any Party the power or authority to act for, bind, or commit the other.
13.8 Notices.  All notices, consents or waivers under this Agreement shall be in writing and will be deemed to have been duly given when: (a) scanned and converted into a portable document format file (i.e., pdf file), and sent as an attachment to an e-mail message, where, when such message is received, a read receipt e-mail is received by the sender (and such read receipt e-mail is preserved by the Party sending the notice), provided, further that a copy is promptly sent by 
27

an internationally recognized overnight delivery service (receipt requested) (although the sending of the e-mail message shall be when the notice is deemed to have been given); or (b) the earlier of when received by the addressee or [***] days after it was sent, if sent by registered letter or overnight courier by an internationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and e-mail addresses set forth below (or to such other addresses and e-mail addresses as a Party may designate by notice):
If to Alnylam:   Alnylam Pharmaceuticals, Inc.
675 West Kendall Street, Henri A. Termeer Square
Cambridge, MA 02142
Attention Chief Operating Officer
and
Alnylam Pharmaceuticals, Inc.
675 West Kendall Street, Henri A. Termeer Square
Cambridge, MA 02142
Attention: Chief Legal Officer
If to Dicerna:  Dicerna Pharmaceuticals, Inc.
33 Hayden Avenue 
Lexington, MA 02421
Attention: President
and
          Dicerna Pharmaceuticals, Inc.
33 Hayden Avenue 
Lexington, MA 02421
Attention: General Counsel
13.9 Further Assurances.  Dicerna and Alnylam hereby covenant and agree without the necessity of any further consideration, to execute, acknowledge and deliver any and all documents and take any action as may be reasonably necessary to carry out the intent and purposes of this Agreement.
13.10 No Third Party Beneficiary Rights.  This Agreement is not intended to and shall not be construed to give any Third Party any interest or rights (including any third party beneficiary rights) with respect to or in connection with any agreement or provision contained herein or contemplated hereby, except as otherwise expressly provided for in this Agreement.
13.11 Entire Agreement.  This Agreement sets forth the entire agreement and understanding of the Parties as to the subject matter hereof and supersedes all proposals, oral or written, and all other communications between the Parties with respect to such subject matter.  The Parties acknowledge and agree that, as of the Effective Date, all Confidential Information disclosed pursuant to the Confidentiality Agreement by a Party or its Affiliates shall be included in the Confidential Information subject to this Agreement and the Confidentiality Agreement is hereby 
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superseded in its entirety; provided, that the foregoing shall not relieve any Person of any right or obligation accruing under the Confidentiality Agreement prior to the Effective Date. “Confidentiality Agreement” means the Mutual Confidential Disclosure Agreement between Alnylam and Dicerna dated September 27, 2019.
13.12 Counterparts.  This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
13.13 Expenses.  Each Party shall pay its own costs, charges and expenses incurred in connection with the negotiation, preparation and execution of this Agreement.
13.14 Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives, successors and permitted assigns.
13.15 Construction.  The Parties hereto acknowledge and agree that: (a) each Party and its counsel reviewed and negotiated the terms and provisions of this Agreement and have contributed to its revision; (b) the rule of construction to the effect that any ambiguities are resolved against the drafting Party shall not be employed in the interpretation of this Agreement; and (c) the terms and provisions of this Agreement shall be construed fairly as to all Parties hereto and not in a favor of or against any Party, regardless of which Party was generally responsible for the preparation of this Agreement.
13.16 Interpretation.  The captions and headings to this Agreement are for convenience only, and are to be of no force or effect in construing or interpreting any of the provisions of this Agreement.  Unless specified to the contrary, references to Articles, Sections or Exhibits mean the particular Articles, Sections or Exhibits to this Agreement and references to this Agreement include all Exhibits hereto.  In the event of any conflict between the main body of this Agreement and any Exhibit hereto, the main body of this Agreement shall prevail.  Unless context otherwise clearly requires, whenever used in this Agreement: (a) the words “include” or “including” shall be construed as incorporating, also, “but not limited to” or “without limitation”; (b) the word “day” or “year” means a calendar day or year unless otherwise specified; (c) the word “notice” shall mean notice in writing (whether or not specifically stated) and shall include notices, consents, approvals and other written communications contemplated under this Agreement; (d) the words “hereof,” “herein,” “hereby” and derivative or similar words refer to this Agreement as a whole and not merely to the particular provision in which such words appear; (e) the words “shall” and “will” have interchangeable meanings for purposes of this Agreement; (f) provisions that require that a Party, the Parties or a committee hereunder “agree,” “consent” or “approve” or the like shall require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter, approved minutes or otherwise; (g) words of any gender include the other gender; (h) words using the singular or plural number also include the plural or singular number, respectively; (i) references to any specific law, rule or regulation, or article, section or other division thereof, shall be deemed to include the then-current amendments thereto or any replacement law, rule or regulation thereof; (j) the phrases “non-creditable” and “non-refundable” shall not prohibit, limit or restrict either Party’s right to obtain damages in connection with a breach of this Agreement; and (k) neither Party shall be deemed to be acting on behalf of the other Party.
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13.17 Cumulative Remedies.  No remedy referred to in this Agreement is intended to be exclusive unless explicitly stated to be so, but each shall be cumulative and in addition to any other remedy referred to in this Agreement or otherwise available under law.
[Remainder of page left blank intentionally; signature page follows.]
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IN WITNESS WHEREOF, the Parties intending to be bound have caused this Agreement to be executed by their duly authorized representatives.

ALNYLAM PHARMACEUTICALS, INC. 

By:/s/ Jeff Poulton  
Name: Jeff Poulton
Title:  Chief Financial Officer

DICERNA PHARMACEUTICALS, INC.

By:/s/ Douglas M. Fambrough  
Name: Douglas M. Fambrough
Title: Chief Executive Officer 
[Signature Page to the Patent Cross-License Agreement]

EXHIBIT A

CERTAIN ALNYLAM AGREEMENTS

[***]

EXHIBIT B
CERTAIN DICERNA AGREEMENTS

[***]

EXHIBIT C
[***]

EXHIBIT D

[***]

EXHIBIT E

MUTUAL PRESS RELEASE

Contacts:
Alnylam Pharmaceuticals, Inc.

Christine Regan Lindenboom

(Investors and Media)
+1-617-682-4340

Josh Brodsky
(Investors)
+1-617-551-8276

Dicerna Pharmaceuticals, Inc.
Media: 
Amy Trevvett, Dicerna Pharmaceuticals, Inc.
+1 617-612-6253 
atrevvett@dicerna.com 
Investors: 
Lauren Stival, Stern Investor Relations, Inc. 
+1 212-362-1200 
lauren.stival@sternir.com 

Alnylam and Dicerna Form RNAi Therapeutics Collaboration on Alpha-1 Antitrypsin Deficiency-Associated Liver Disease and Complete Cross-License Agreement for Primary Hyperoxaluria Programs

- Dicerna to Lead Global Clinical Development and U.S. Commercialization of its DCR-A1AT and Alnylam’s ALN-AAT02 Investigational Therapeutics for the Treatment of Alpha-1 Liver Disease; Alnylam Retains Post-Phase 3 Opt-in Right for Ex-U.S. Commercialization -  
- Companies Complete Non-Exclusive Intellectual Property Cross-License Agreement for the Development and Commercialization of Alnylam’s Lumasiran and Dicerna’s Nedosiran Investigational Programs for Primary Hyperoxaluria -  

CAMBRIDGE, Mass. and LEXINGTON, Mass. --[BUSINESS WIRE]--April 6, 2020 - Alnylam Pharmaceuticals, Inc. (Nasdaq: ALNY), and Dicerna Pharmaceuticals, Inc. (Nasdaq: DRNA), both leaders in the field of ribonucleic acid interference (RNAi) therapeutics, announced today the formation of a development and commercialization collaboration on investigational RNAi therapeutics for the treatment of alpha-1 antitrypsin (A1AT) deficiency-associated liver disease (alpha-1 liver disease). In addition, the companies have completed a cross-license of their respective intellectual property for Alnylam’s lumasiran and Dicerna’s nedosiran investigational programs for the treatment of primary hyperoxaluria (PH). These agreements will enhance and accelerate Alnylam’s and Dicerna’s ability to bring these orphan product candidates to market.  
“We are excited to bring our two leading RNAi therapeutics companies together in our efforts to advance potentially transformative medicines for the treatment of two rare diseases with significant unmet medical need. Specifically, the new agreements allow for Alnylam and Dicerna to join forces in areas of common interest, namely alpha-1 liver disease and primary hyperoxaluria,” said John Maraganore, Ph.D., Chief Executive Officer of Alnylam. “We look forward to collaborating with Dicerna to advance treatments for patients living with alpha-1 liver disease, where Dicerna will lead development and U.S. commercialization while Alnylam retains an ex-U.S. commercialization option, where the company already has the resources and experience to hit the ground running. Moreover, our cross-license agreement for primary hyperoxaluria puts the needs of patients and the patient community first, and ensures freedom to operate for both companies for their respective RNAi therapeutic programs in this ultra-rare orphan disease.”
“These agreements between Alnylam and Dicerna represent biopharma collaboration at its best, unifying the strengths of two leaders in RNAi innovation to rally behind the common goal of delivering much-needed new therapies to patients with rare diseases,” said Douglas M. Fambrough, Ph.D., President and Chief Executive Officer of Dicerna. “By joining our efforts in alpha-1 liver disease, we believe we can be more strongly assured of bringing forward the therapy with the greatest potential to benefit patients. At the same time, our agreement related to lumasiran and nedosiran clears a path for each company to offer a new and differentiated treatment to patients with PH.” 
Under the development and commercialization agreement, Alnylam’s ALN-AAT02 and Dicerna’s DCR-A1AT, investigational RNAi therapeutics, each in Phase 1/2 development, will be explored for the treatment of alpha-1 liver disease. Under the agreement, Dicerna assumes responsibility for both ALN-AAT02 and DCR-A1AT at its cost, and may progress one or both of these investigational medicines through clinical development. Dicerna will select which product candidate(s) to advance in development for the treatment of patients with alpha-1 liver disease. At the completion of Phase 3, Alnylam has the no-cost opportunity to opt-in to commercialize the selected candidate in countries outside the U.S., where it already has a commercialization infrastructure in place. If Alnylam exercises its opt-in right, each party shall pay tiered royalties to the other party based on net product sales generated in its territory at rates dependent on which candidate is commercialized. In the event Alnylam waives its commercialization option, Dicerna 

will retain worldwide rights to commercialize the selected candidate(s) in exchange for milestones and royalties payable to Alnylam, also at a rate dependent on which candidate is ultimately commercialized.
In a separate agreement, Alnylam and Dicerna granted each other a non-exclusive cross-license to their respective intellectual property related to their PH treatment investigational programs to ensure that each party has the freedom to develop and commercialize its respective product candidate: Alnylam’s lumasiran targeting glycolate oxidase (GO) for the treatment of PH type 1 and Dicerna’s nedosiran targeting lactate dehydrogenase A (LDHA) for the treatment of PH types 1, 2, and 3. Alnylam’s lumasiran has achieved positive Phase 3 results in the ILLUMINATE-A study and is currently the subject of a rolling new drug application (NDA) with the U.S. Food and Drug Administration (FDA). Dicerna’s nedosiran is currently being evaluated in the PHYOXTM clinical development program in patients with PH. The cross-license agreement provides for Alnylam to pay mid- to high-single-digit royalties to Dicerna based on global net sales of lumasiran and for Dicerna to pay low-single-digit royalties to Alnylam on global net sales of nedosiran.
The transaction related to alpha-1 liver disease is subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

About ALN-AAT02 and DCR-A1AT
ALN-AAT02 and DCR-A1AT are investigational, subcutaneously administered RNAi therapeutics targeting alpha-1 antitrypsin (A1AT) in development for the treatment of A1AT deficiency-associated liver disease (alpha-1 liver disease). ALN-AAT02 utilizes Alnylam's enhanced stabilization chemistry plus (ESC+)-GalNAc-conjugate technology, which enables subcutaneous dosing with increased selectivity and a wide therapeutic index. DCR-A1AT utilizes Dicerna’s GalXCTM technology, which enables subcutaneous delivery and optimizes the activity of the RNAi pathway so that it operates in the most specific and potent fashion. The safety and efficacy of ALN-AAT02 and DCR-A1AT have not been evaluated by the FDA, EMA or any other health authority.

About Alpha-1 Antitrypsin Deficiency-Associated Liver Disease
Alpha-1 antitrypsin (A1AT) deficiency is an autosomal disorder that results in disease of the lungs and liver. A1AT is a liver-produced serine proteinase inhibitor with the primary function of protecting the lungs from neutrophil elastase and other irritants that cause inflammation. About 95 percent of people with A1AT deficiency are homozygous and carry two copies of the abnormal Z allele (PiZZ) which expresses the Z-AAT protein. In the liver, misfolding of the mutant Z-AAT protein hinders its normal release into the blood thereby causing it to aggregate in hepatocytes, leading to liver injury, fibrosis, cirrhosis, and hepatocellular carcinoma (HCC). There are estimated to be approximately 120,000 individuals with the PiZZ mutation in the U.S. and major European countries, and of these, 10 percent or more have an associated liver 

pathology (alpha-1 liver disease) caused by the aggregates of the misfolded Z-AAT protein. The only treatment options presently available for alpha-1 liver disease patients are supportive care and, in the case of advanced cirrhosis, liver transplantation. RNAi-mediated inhibition of A1AT in people with alpha-1 liver disease may represent a promising new way to treat this rare disease.

About Lumasiran
Lumasiran is an investigational, subcutaneously administered RNAi therapeutic targeting glycolate oxidase (GO), in development for the treatment of primary hyperoxaluria type 1 (PH1), an ultra-rare life threatening disease. GO is encoded by the hydroxyacid oxidase 1 (HAO1) gene. Thus, by silencing HAO1 and depleting the GO enzyme, lumasiran inhibits production of oxalate – the metabolite that directly contributes to the pathophysiology of PH1. Lumasiran utilizes Alnylam's Enhanced Stabilization Chemistry (ESC)-GalNAc-conjugate technology, which enables quarterly subcutaneous maintainence dosing with increased potency and durability and a wide therapeutic index. Lumasiran has received both U.S. and EU Orphan Drug Designations, a Breakthrough Therapy Designation and pediatric rare disease designation from the U.S. Food and Drug Administration (FDA), and a Priority Medicines (PRIME) designation from the European Medicines Agency (EMA). The safety and efficacy of lumasiran have not been evaluated by the FDA, EMA or any other health authority.

About Nedosiran
Nedosiran (formerly referred to as DCR-PHXC) is the only RNAi drug candidate in development for primary hyperoxaluria (PH) types 1, 2 and 3 and is Dicerna’s most advanced product candidate utilizing the proprietary GalXCTM RNAi technology platform. Nedosiran is designed to inhibit the lactate dehydrogenase A (LDHA) enzyme – an enzyme that catalyzes the final step in a common pathway resulting in oxalate overproduction in patients with PH1, PH2 and PH3. Dicerna is evaluating the safety and efficacy of nedosiran in patients with all known forms of PH as part of its PHYOX clinical development program.

About Primary Hyperoxaluria (PH) 
PH is an ultra-rare disease with three known types (PH1, PH2 and PH3), each resulting from a mutation in one of three different genes. In patients with PH, excessive oxalate production results in the deposition of calcium oxalate crystals in the kidneys and urinary tract and can lead to the formation of painful and recurrent kidney stones and nephrocalcinosis. Renal damage is caused by a combination of tubular toxicity from oxalate, calcium oxalate deposition in the kidneys, and urinary obstruction by calcium oxalate stones. Compromised kidney function exacerbates the disease as the excess oxalate can no longer be effectively excreted, resulting in subsequent accumulation and crystallization in bones, eyes, skin, and heart, especially in patients with PH1 and PH2, leading to severe illness and death. Current treatment options are very limited and include frequent renal dialysis or combined organ transplantation of liver and kidney, a procedure with high morbidity that is limited due to organ availability. Although a minority of patients are fully responsive to Vitamin B6 therapy, there are no approved pharmaceutical therapies for PH.

About RNAi 
RNAi (RNA interference) is a natural cellular process of gene silencing that represents one of the most promising and rapidly advancing frontiers in biology and drug development today. Its discovery has been heralded as “a major scientific breakthrough that happens once every decade or so,” and was recognized with the award of the 2006 Nobel Prize for Physiology or Medicine. By harnessing the natural biological process of RNAi occurring in our cells, a new class of medicines, known as RNAi therapeutics, is now a reality. Small interfering RNA (siRNA), the molecules that mediate RNAi and comprise Alnylam’s and Dicerna’s RNAi therapeutic platforms, function upstream of today’s medicines by potently silencing messenger RNA (mRNA) – the genetic precursors – that encode for disease-causing proteins, thus preventing them from being made. This is a revolutionary approach with the potential to transform the care of patients with genetic and other diseases.

About Alnylam Pharmaceuticals 
Alnylam (Nasdaq: ALNY) is leading the translation of RNA interference (RNAi) into a whole new class of innovative medicines with the potential to transform the lives of people afflicted with rare genetic, cardio-metabolic, hepatic infectious, and central nervous system (CNS)/ocular diseases. Based on Nobel Prize-winning science, RNAi therapeutics represent a powerful, clinically validated approach for the treatment of a wide range of severe and debilitating diseases. Founded in 2002, Alnylam is delivering on a bold vision to turn scientific possibility into reality, with a robust RNAi therapeutics platform. Alnylam’s commercial RNAi therapeutic products are ONPATTRO® (patisiran), approved in the U.S., EU, Canada, Japan, Brazil, and Switzerland, and GIVLAARI® (givosiran), approved in the U.S and the EU. Alnylam has a deep pipeline of investigational medicines, including six product candidates that are in late-stage development. Alnylam is executing on its “Alnylam 2020” strategy of building a multi-product, commercial-stage biopharmaceutical company with a sustainable pipeline of RNAi-based medicines to address the needs of patients who have limited or inadequate treatment options. Alnylam is headquartered in Cambridge, MA.

About Dicerna Pharmaceuticals, Inc.
Dicerna Pharmaceuticals, Inc. (Nasdaq: DRNA) is a biopharmaceutical company focused on discovering, developing and commercializing medicines that are designed to leverage ribonucleic acid interference (RNAi) to selectively silence genes that cause or contribute to disease. Using our proprietary RNAi technology platform, GalXCTM, Dicerna is committed to developing RNAi-based therapies with the potential to treat both rare and more prevalent diseases. By reducing the level of disease-causing proteins in the hepatocytes of the liver, Dicerna’s GalXC platform has the potential to safely target conditions that are difficult to treat with other modalities. Continually innovating, Dicerna is also exploring new applications of RNAi technology beyond the liver, targeting additional tissues and enabling new therapeutic applications. In addition to our own pipeline of core discovery and clinical candidates, Dicerna has established collaborative relationships with some of the world’s leading pharmaceutical 

companies, including Novo Nordisk A/S, Roche, Eli Lilly and Company, Alexion Pharmaceuticals, Inc. and Boehringer Ingelheim International GmbH. Between Dicerna and our collaborative partners, we currently have more than 20 active discovery, preclinical or clinical programs focused on rare, cardiometabolic, viral-infectious, chronic-liver and complement-mediated diseases, as well as neurodegeneration and pain. At Dicerna, our mission is to interfere – to silence genes, to fight disease, to restore heath. For more information, please visit www.dicerna.com. 

Alnylam Forward Looking Statements 
Various statements in this release concerning Alnylam's future expectations, plans and prospects, including, without limitation, Alnylam's views and plans with respect to the potential for RNAi therapeutics, including ALN-AAT02, lumasiran, DCR-A1AT and nedosiran, the development and potential commercialization of ALN-AAT02 and/or DCR-A1AT and its potential to opt-in to such program(s) in the future to commercialize outside of the U.S., expectations regarding the rolling submission of an NDA for lumasiran and the potential benefit of lumasiran and nedosiran for patients with PH, and expectations regarding the continued execution on its “Alnylam 2020” guidance for the advancement and commercialization of RNAi therapeutics, constitute forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results and future plans may differ materially from those indicated by these forward-looking statements as a result of various important risks, uncertainties and other factors, including, without limitation: potential risks to Alnylam’s business, activities and prospects as a result of the COVID-19 pandemic, or delays or interruptions resulting therefrom; Alnylam's ability to discover and develop novel drug candidates; its ability to successfully demonstrate the efficacy and safety of its product candidates, including ALN-AAT02; the pre-clinical and clinical results for its product candidates, including ALN-AAT02, which may not be replicated or continue to occur in other subjects or in additional studies or otherwise support further development of product candidates for a specified indication or at all; actions or advice of regulatory agencies, which may affect the design, initiation, timing, continuation and/or progress of clinical trials or result in the need for additional pre-clinical and/or clinical testing; delays, interruptions or failures in the manufacture and supply of its product candidates or its marketed products, including ALN-AAT02 or lumasiran; obtaining, maintaining and protecting intellectual property; intellectual property matters including potential patent litigation relating to its platform, products or product candidates; obtaining regulatory approval for its product candidates, including lumasiran, and maintaining regulatory approval and obtaining pricing and reimbursement for its products, including ONPATTRO and GIVLAARI; progress in continuing to establish a commercial and ex-United States infrastructure; successfully launching, marketing and selling its approved products globally, including ONPATTRO and GIVLAARI, and achieve net product revenues for ONPATTRO within its expected range during 2020; Alnylam’s ability to successfully expand the indication for ONPATTRO in the future; competition from others using technology similar to Alnylam's and others developing products for similar uses; Alnylam's ability to manage its growth and operating expenses within the ranges of its expected guidance and achieve a self-sustainable financial profile in the future, obtain additional funding to support its business activities, and establish and maintain strategic business alliances and new business initiatives; Alnylam's dependence on third parties, including Vir, for 

development of candidates for the treatment of infectious diseases, including COVID-19, and commercialization of any infectious disease product resulting therefrom, Regeneron, for development, manufacture and distribution of certain products, including eye and CNS products, and Ironwood, for assistance with the education about and promotion of GIVLAARI in the U.S.; the outcome of litigation; the risk of government investigations; and unexpected expenditures, as well as those risks more fully discussed in the "Risk Factors" filed with Alnylam's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) and in other filings that Alnylam makes with the SEC. In addition, any forward-looking statements represent Alnylam's views only as of today and should not be relied upon as representing its views as of any subsequent date. Alnylam explicitly disclaims any obligation, except to the extent required by law, to update any forward-looking statements.

Dicerna Forward-Looking Statements
Various statements in this release concerning Dicerna’s future expectations, plans and prospects, including, without limitation, Dicerna's views and plans with respect to the potential for RNAi therapeutics, including ALN-AAT02, DCR-A1AT and nedosiran, the development and potential commercialization of ALN-AAT02 and/or DCR-A1AT and the opportunity to accelerate development for patients, expectations regarding future royalties earned from sales of lumasiran or from commercialization of ALN-AAT02 and/or DCR-A1AT outside the United States, expectations regarding the rolling submission of an NDA for lumasiran and the potential benefit of lumasiran and nedosiran for patients with PH and the success of Dicerna’s PHYOX clinical program and expectations regarding the success of the collaboration with Alnylam, constitute forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results and future plans may differ materially from those indicated by these forward-looking statements as a result of various important risks, uncertainties and other factors, including, without limitation: potential risks to Dicerna’s business, activities and prospects as a result of the COVID-19 pandemic, or delays or interruptions resulting therefrom; Dicerna’s ability to discover and develop novel drug candidates; its ability to successfully demonstrate the efficacy and safety of its product candidates, including nedosiran, DCR-A1AT and/or ALN-AAT02; the preclinical and clinical results for its product candidates, including  nedosiran, DCR-A1AT and/or  ALN-AAT02, which may not be replicated or continue to occur in other subjects or in additional studies or otherwise support further development of product candidates for a specified indication or at all; actions or advice of regulatory agencies, which may affect the design, initiation, timing, continuation and/or progress of clinical trials or result in the need for additional preclinical and/or clinical testing; delays, interruptions or failures in the manufacture and supply of its product candidates, including nedosiran, DCR-A1AT or ALN-AAT02; obtaining, maintaining and protecting intellectual property, Dicerna’s dependence on existing collaborators and success of future collaborations, as well as those risks more fully discussed in the “Risk Factors” filed with Dicerna’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) and in other filings that Dicerna makes with the SEC. In addition, any forward-looking statements represent Dicerna’s views only as of today and should not be relied upon as representing its views as of any subsequent date. Dicerna explicitly disclaims any obligation, except to the extent required by law, to update any forward-looking statements.

GalXCTM and PHYOXTM are trademarks of Dicerna Pharmaceuticals, Inc.

EXHIBIT F

CERTAIN UNDERTAKINGS BY DICERNA

1.  [***]Document

Exhibit 10.2

PURCHASE AND SALE AGREEMENT
dated as of April 10, 2020
between
ALNYLAM PHARMACEUTICALS, INC.
and
BX BODYGUARD ROYALTIES L.P.
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH “[***]”. SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED

Table of Contents
Page
						
	ARTICLE I DEFINED TERMS AND RULES OF CONSTRUCTION
	1

		
	Section 1.1 Defined Terms
	1

	Section 1.2 Rules of Construction
	9

		
	ARTICLE II PURCHASE AND SALE OF THE PURCHASED ASSETS
	10

		
	Section 2.1 Purchase and Sale
	10

	Section 2.2 Purchase Price
	11

	Section 2.3 No Assumed Obligations
	11

	Section 2.4 Excluded Assets
	12

		
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE SELLER
	13

		
	Section 3.1 Existence; Organization
	13

	Section 3.2 No Conflicts
	13

	Section 3.3 Authorization; Enforceability
	13

	Section 3.4 Ownership
	13

	Section 3.5 Governmental and Third Party Authorizations
	13

	Section 3.6 No Litigation
	14

	Section 3.7 No Brokers’ Fees
	14

	Section 3.8 Compliance with Laws
	14

	Section 3.9 Intellectual Property Matters
	14

	Section 3.10 Medco License Agreement
	17

	Section 3.11 No Other Agreements
	19

	Section 3.12 UCC Matters
	19

	Section 3.13 Set-Off Against Royalty
	19

	Section 3.14 SEC Filings
	19

	Section 3.15 Related Agreements
	20

	Section 3.16 Medco Supply Agreement
	20

	Section 3.17 Compliance
	20

	Section 3.18 Solvency
	21

	Section 3.19 Tax Matters
	21

		
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE PURCHASER
	21

		
	Section 4.1 Organization
	21

	Section 4.2 No Conflicts
	21

	Section 4.3 Authorization
	21

	Section 4.4 Governmental and Third Party Authorizations
	22

	Section 4.5 No Litigation
	22

i

						
	Section 4.6 Access to Information
	22

	Section 4.7 Funds Available
	22

		
	ARTICLE V COVENANTS
	23

		
	Section 5.1 Public Announcement
	23

	Section 5.2 Further Assurances
	23

	Section 5.3 Royalty Reports; Notices and Communications from Licensee
	23

	Section 5.4 Supply Chain
	24

	Section 5.5 Payments on Account of Purchased Assets; Escrow
	24

	Section 5.6 Misdirected Payments
	24

	Section 5.7 Maintenance of License Agreement
	25

	Section 5.8 Enforcement of License Agreement
	27

	Section 5.9 Prosecution and Enforcement of Intellectual Property
	28

	Section 5.10 No Assignment; No Liens
	30

	Section 5.11 Audits
	30

	Section 5.12 Retained Royalty Interest
	31

	Section 5.13 Related Agreements
	32

	Section 5.14 Commercialization
	32

	Section 5.15 SEC Filings
	33

	Section 5.16 Licensee Instruction
	33

	Section 5.17 Tax Matters
	33

	Section 5.18 Change in Name or Organization
	35

	Section 5.19 Seller’s Commercially Reasonable Efforts and Judgment
	35

		
	ARTICLE VI THE CLOSING
	35

		
	Section 6.1 Closing
	35

	Section 6.2 Payment of Purchase Price
	35

	Section 6.3 Closing Deliverables
	36

	Section 6.4 Post-Closing Deliverables
	36

		
	ARTICLE VII INDEMNIFICATION
	37

		
	Section 7.1 Indemnification by the Seller
	37

	Section 7.2 Indemnification by the Purchaser
	37

	Section 7.3 Materiality
	38

	Section 7.4 Procedures for Third Party Claims
	38

	Section 7.5 Other Claims
	39

	Section 7.6 Time Limitations
	39

	Section 7.7 Limitations on Liability
	40

	Section 7.8 Exclusive Remedy
	40

		
	Article VIII CONFIDENTIALITY
	41

		

ii

						
	Section 8.1 Confidentiality
	41

	Section 8.2 Disclosures to Certain Affiliates
	41

	Section 8.3 Termination of Confidentiality Agreement
	42

	Section 8.4 Permitted Disclosure
	42

	Section 8.5 Financial Statements
	43

	Section 8.6 Specific Enforcement
	43

	Section 8.7 Other Relevant Obligations
	43

	Section 8.8 Use of Name
	43

		
	Article IX TERMINATION
	44

		
	Section 9.1 Termination of Agreement
	44

	Section 9.2 Effect of Termination
	44

		
	Article X MISCELLANEOUS
	44

		
	Section 10.1 Specific Performance
	44

	Section 10.2 Notices
	44

	Section 10.3 Successors and Assigns
	46

	Section 10.4 Independent Nature of Relationship
	47

	Section 10.5 No Personal Liability
	47

	Section 10.6 Entire Agreement
	47

	Section 10.7 Governing Law
	47

	Section 10.8 Waiver of Jury Trial
	48

	Section 10.9 Severability
	48

	Section 10.10 Counterparts
	49

	Section 10.11 Amendments; No Waivers
	49

	Section 10.12 Cumulative Remedies
	49

	Section 10.13 Table of Contents and Headings
	49

Exhibit A Form of Bill of Sale
Exhibit B Form of Licensee Instruction
Exhibit C Paying Agent Agreement
Exhibit D Purchaser Account
Exhibit E Seller Account
Exhibit F Disclosure Schedule
Exhibit G Royalty Product Patents
Exhibit H Medco License Agreement
Exhibit I Press Release
Schedule 1.1 Knowledge Parties 
Schedule 2.5(a) True-Up Mechanism Examples
Schedule 3.10(a) Medco License Agreement Notices and Correspondence
Schedule 10.3 Assignment
iii

PURCHASE AND SALE AGREEMENT
This PURCHASE AND SALE AGREEMENT (this “Agreement”) dated as of April 10, 2020 is between Alnylam Pharmaceuticals, Inc., a Delaware corporation (the “Seller”), and BX Bodyguard Royalties L.P., a Delaware limited partnership (the “Purchaser”). 
W I T N E S S E T H :
WHEREAS, the Seller has the right to receive royalties based on Net Sales of the Royalty Product (as defined below) under the Medco License Agreement (as defined below); and
WHEREAS, the Seller desires to sell, contribute, assign, transfer, convey and grant to the Purchaser, and the Purchaser desires to purchase, acquire and accept from the Seller, the Purchased Assets (as defined below), upon and subject to the terms and conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual agreements, representations and warranties set forth herein and of other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto covenant and agree as follows:
ARTICLE I
DEFINED TERMS AND RULES OF CONSTRUCTION

Section 1.1 Defined Terms.  The following terms, as used herein, shall have the following respective meanings:
[***]
“Affiliate” means, with respect to any designated Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such designated Person.  For purposes of this definition, “control” of a Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlled” and “controlling” have meanings correlative to the foregoing. 
“Agreement” has the meaning set forth in the preamble.
“Alnylam Commercialization Royalty” means, for each calendar year following termination of the Medco License Agreement and an election by the Seller, pursuant to Section 5.7(d), to Commercialize the Royalty Product itself in all or some portion of the Territory or under a [***] that consists of a profit share for Seller with respect to the Royalty Product in all or some portion of the Territory, an amount equal to (a) [***] of Net Sales up to [***] of the Royalty Product made by or on behalf of the Seller or any of its Affiliates or sublicensees or profit share partners in the Territory or such portion of the Territory, (b) [***] of Net Sales greater than [***] but less than [***] of the Royalty Product made by or on behalf of the Seller or any of its Affiliates or sublicensees or profit share partners in the Territory or such portion of the Territory, (c) [***] of 
1

Net Sales greater than [***] but less than [***] of the Royalty Product made by or on behalf of the Seller or any of its Affiliates or sublicensees or profit share partners in the Territory or such portion of the Territory and (d) [***] of Net Sales greater than [***] of the Royalty Product made by or on behalf of the Seller or any of its Affiliates or sublicensees or profit share partners in the Territory or such portion of the Territory; provided that, in the event that the Purchaser has not received the Minimum ROI by December 31, 2029 (taking into account the [***] in making such determination and the true-up mechanism set forth in Section 2.5), then the percentages set forth in the foregoing clauses (a)-(d) shall be increased to [***], [***], [***] and [***], respectively, in respect of Net Sales of the Royalty Product made by the Seller on or after January 1, 2030. For purposes of this definition, (i) the definition of “Net Sales” is deemed to be amended to replace “MedCo” with “Seller” in each place that it appears (other than any references to (Sub)licensees) and (ii) the amount of Net Sales used in calculating the Alnylam Commercialization Royalty shall be net of one half of any royalty payable by the Seller to the Licensee on such Net Sales pursuant to Section 12.3(b) of the Medco License Agreement. 
“Alnylam Technology” has the meaning set forth in Section 1.15 of the Medco License Agreement.
“Applicable Percentage” means, (a) with respect to the Royalty, fifty percent (50%) and (b) with respect to the Milestones, seventy-five (75%); provided that, with respect to the Applicable Percentage for the Royalty set forth in the foregoing clause (a), in the event that Purchaser has not received the Minimum ROI by December 31, 2029 (taking into account the [***] in making such determination and the true-up mechanism set forth in Section 2.5), then such Applicable Percentage for the Royalty pursuant to clause (a) hereunder shall be increased to fifty-five (55%) in respect of any Royalty payable on Net Sales made on or after January 1, 2030. 
“Bankruptcy Code” means Title 11 of the United States Code.
“Bill of Sale” means that certain bill of sale, dated as of the Closing Date, executed by the Seller and the Purchaser, substantially in the form attached hereto as Exhibit A.
“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by applicable Law to remain closed. For the avoidance of doubt, solely with respect to any notice or other communication required to be given or delivered hereunder, limitations on the operations of commercial banks due to the outbreak of a contagious disease, epidemic or pandemic (including COVID-19), or any quarantine, shelter-in-place or similar or related directive, shall not prevent a day that would otherwise be a Business Day hereunder from so being a Business Day.   
“Calendar Quarter” has the meaning set forth in Section 1.21 of the Medco License Agreement.
“Closing” has the meaning set forth in Section 6.1.
“Closing Date” has the meaning set forth in Section 6.1.
2

“Code” means the U.S. Internal Revenue Code of 1986, as amended, and the regulations thereunder.
“Commercialization” has the meaning set forth in Section 1.31 of the Medco License Agreement.
“Consent” means, with respect to Purchaser and any authorization or approval required to be given by Purchaser under Article V, the authorization or approval of a particular action or course of action, which “Consent” shall not be unreasonably withheld, conditioned or delayed; provided that, if a different standard is expressly provided for hereunder with respect to a particular authorization or approval, then such standard shall apply. 
“Competitive Infringement” has the meaning set forth in Section 1.33 of the Medco License Agreement. 
“Core Royalty Product Patent” means [***]. 
“Data Room” means, collectively, the virtual data room established by the Seller as of the date hereof and made available to the Purchaser via Box.
“Disputes” has the meaning set forth in Section 3.9(c).
“Excluded Assets” has the meaning set forth in Section 2.4.
“Excluded Liabilities and Obligations” has the meaning set forth in Section 2.3.
 “Existing Confidentiality Agreement” has the meaning set forth in Section 8.3.
“Excluded Payments” means any amounts due or paid to the Seller pursuant to Sections 6.4.3.2, 6.4.3.4 and 7.2 of the Medco License Agreement, but solely to the extent not set-off against the Royalty or Milestones.
“FDA” means the U.S. Food and Drug Administration and any successor agency thereto.
“First Installment” means fifty percent (50%) of the Purchase Price, or $500,000,000.
[***]
“Fundamental Representations and Warranties” has the meaning set forth in Section 7.6(a).
“GAAP” means generally accepted accounting principles in effect in the United States from time to time.
“Governmental Authority” means the government of the United States, any other nation or any political subdivision thereof, whether state or local, and any agency, authority (including supranational authority), commission, instrumentality, regulatory body, court, central bank or other Person exercising executive, legislative, judicial, taxing, regulatory or administrative powers or 
3

functions of or pertaining to government, including each Patent Office, the FDA and any other government authority in any jurisdiction.
“Inclisiran” means that certain pharmaceutical product known by the non-proprietary name inclisiran, which, as of the date hereof, is being developed by Licensee under the Medco License Agreement, and has been submitted to the FDA for regulatory approval under NDA #214012. 
“IRS Withholding Form” has the meaning set forth in Section 5.17(c)(i).
[***]
“Knowledge of the Purchaser” means, (a) for purposes of Article IV, the actual knowledge as of the date of this Agreement, of any of the officers of the Purchaser identified on Schedule 1.1(a), and (b) for all other purposes of this Agreement, the actual knowledge as of the applicable time, of any of the officers of the Purchaser identified on Schedule 1.1(a) or any successor to any such officer holding the same or substantially similar officer position at such time.
“Knowledge of the Seller” means, (a) for purposes of Article III, the actual knowledge as of the date of this Agreement, of any of the officers of the Seller identified on Schedule 1.1(b), and (b) for all other purposes of this Agreement, the actual knowledge as of the applicable time, of any of the officers of the Seller identified on Schedule 1.1(b) or any successor to any such officer holding the same or substantially similar officer position at such time. For clarity, “Knowledge of the Seller” for purposes of Section 3.10(k) and Section 3.16 shall be based on actual knowledge, following due inquiry internal to Seller. 
“Law” means, with respect to any Person, all laws, statutes, rules, regulations and orders of Governmental Authorities applicable to such Person or any of its properties or assets.
“Licensee” means (a) The Medicines Company, a Delaware corporation, and its successors and permitted assigns (“Medco”) and (b) solely for purposes of Article V unless otherwise expressly specified, Novartis and Medco. 
“Licensed Royalty Product Patents” means those Royalty Product Patents set forth on Exhibit G hereto that are controlled, but not owned, by Seller or its Affiliates pursuant to a license agreement with a third party. 
“Licensee Instruction” means the direction letter to Licensee in the form attached hereto as Exhibit B.
“Lien” means any security interest, mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or otherwise), charge against or interest in property or other priority or preferential arrangement of any kind or nature whatsoever, in each case to secure payment of a debt or performance of an obligation, including any conditional sale or any sale with recourse.
4

“Loss” means any loss, assessment, award, cause of action, claim, charge, cost, expense (including expenses of investigation and attorneys’ fees), fine, judgment, liability, obligation, or penalty. 
“Material Adverse Effect” means (a) any material adverse change in, or material adverse effect, when considered individually or in the aggregate, on (i) the legality, validity or enforceability of any of the Transaction Documents or the Medco License Agreement, (ii) the rights of Seller under, or the right or ability of the Seller to perform its obligations under, (A) any of the Transaction Documents, (B) the Medco License Agreement, or (C) the Related Agreements, but only to the extent affecting the right of Seller to perform its obligations under the Medco License Agreement or otherwise pertaining to the Purchased Assets, (iii) the right or ability of Licensee to perform its obligations under the Medco License Agreement, (iv) the rights or remedies of the Purchaser under any of the Transaction Documents, including the right of the Purchaser to receive any of the Purchased Assets, or (v) the Royalty Product Patents, or (b) any change to the Purchased Assets (including the timing, value, amount or duration thereof).
“Medco” has the meaning set forth in the definition of “Licensee.”
“Medco Ancillary Agreements” means, collectively, that certain Quality Agreement on Material Supply, dated August 4, 2016, by and between the Seller and the Licensee, and that certain Pharmacovigilance Agreement, dated February 1, 2016, by and between the Seller and the Licensee, as may be amended from time to time. 
“Medco License Agreement” means that certain License and Collaboration Agreement, dated February 3, 2013, by and between the Seller and Licensee, as amended on November 22, 2019 (the “First Amendment”), and as may be further amended in accordance with Section 5.7(a). 
“Medco Supply Agreement” means that certain Supply and Technology Transfer Agreement, dated April 14, 2016, by and between the Seller and Licensee, as amended by that certain Amendment No. 1, dated October 10, 2019, by and between the Seller and Licensee, and as may be further amended in accordance with Section 5.4(a). 
“Milestones” means, on a milestone payment-by-milestone payment basis, all amounts due, paid or payable under Section 7.3 of the Medco License Agreement.
“Minimum ROI” means an amount equal to at least $1,000,000,000 paid to Purchaser under the Transaction Documents (and not required, as of the date of determination of whether the Minimum ROI has been met, to be refunded or reimbursed to Licensee or Seller) in respect of payments from the Royalty component under the Purchased Royalty Interest. 
“Net Sales” has the meaning set forth in Section 1.89 of the Medco License Agreement.
[***]
“Non-Warranting Parties” has the meaning set forth in Section 10.5.
“Novartis” means Novartis AG, the indirect parent company of Medco. 
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“Patent Office” means the applicable patent office, including the United States Patent and Trademark Office and any comparable foreign patent office, for any Patent Rights included in the Alnylam Technology.
“Patent Rights” has the meaning set forth in Section 1.94 of the Medco License Agreement. 
“Paying Agent” means Wilmington Trust, as paying agent.
“Paying Agent Agreement” means that certain paying agent agreement, executed by the Seller, the Purchaser and the Paying Agent promptly after the Closing Date, substantially in the form attached hereto as Exhibit C.
“Person” means any natural person, firm, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, Governmental Authority or any other legal entity, including public bodies, whether acting in an individual, fiduciary or other capacity.
“Proceeds” means any amounts actually recovered or received by the Seller as a result of any settlement or resolution of any actions, suits, proceedings, claims or disputes related to the Royalty or the Milestones, except for any amounts that are permitted to be used by this Agreement or the Medco License Agreement and that are actually used to reimburse or indemnify Licensee for costs, expenses, legal fees or other fees relating to such actions, suits, proceedings, claims or disputes. 
“Purchase Price” has the meaning set forth in Section 2.2.
“Purchased Assets” means (a) the Purchased Royalty Interest, (b) any Proceeds payable to Purchaser in accordance with this Agreement, (c) all proceeds (as defined under UCC) of any of the foregoing, (d) any interest on any amounts referred to in the immediately preceding clauses payable by the Licensee under Section 7.7 of the Medco License Agreement, (e) any portion payable to Purchaser, in accordance with Section 5.17(f), of any payment made pursuant to Section 7.9.2 of the Medco License Agreement with respect to the Royalty or Milestones, and (f) to the extent payable by the Seller in lieu of any portion of the Purchased Royalty Interest and to the extent the Seller Commercializes the Royalty Product in accordance with Section 5.7(d) following termination of the Medco License Agreement, the Alnylam Commercialization Royalty. 
“Purchased Royalty Interest” means (a) the Royalty multiplied by the Applicable Percentage and (b) the Milestones multiplied by the Applicable Percentage.
“Purchaser” has the meaning set forth in the preamble.
“Purchaser Account” means the account set forth on Exhibit D or such other account as may be designated by the Purchaser in writing from time to time.
“Purchaser Indemnified Party” has the meaning set forth in Section 7.1.
“Regulatory Authority” has the meaning set forth in Section 1.112 of the Medco License Agreement. 
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“Related Parties” has the meaning set forth in Section 1.113 of the Medco License Agreement.
“Related Agreements” has the meaning set forth in the definition of “Relevant Obligations.” 
“Relevant Obligations” means all obligations of the Seller or any of its Affiliates under (a) that certain Co-Exclusive License Agreement, by and between the Seller and Max Planck Innovation GmbH (f/k/a Garching Innovation GmbH), dated December 20, 2002, as amended, (b) that certain Agreement, by and between the Seller and The Board of Trustees of the Leland Stanford Junior University, dated September 17, 2003, (c) that certain Commercial License Agreement, by and between the Seller and Plant Bioscience Limited, dated May 14, 2012, (d) that certain Second Amended and Restated Strategic Collaboration and License Agreement, by and between the Seller and Ionis Pharmaceuticals, Inc. (f/k/a Isis Pharmaceuticals, Inc.), dated January 8, 2015, as amended, and (e) any other Alnylam In-Licenses (as defined in the Medco License Agreement) entered into by Seller after the effective date of the Medco License Agreement in accordance with Section 1.11 thereunder ((a) – (e), collectively, the “Related Agreements”).
“Remainder” means fifty percent (50%) of the Purchase Price, or $500,000,000.
“Representatives” means, collectively, with respect to any Person, the trustees, directors, board members, members, partners, managers, officers, employees, agents, advisors or other representatives (including attorneys, accountants, consultants, scientists and financial advisors) of such Person.
“ROFN Notice” has the meaning set forth in Section 5.12.
“Royalty” means, on a country-by-country and Royalty Product-by-Royalty Product basis, all amounts due, paid or payable (i) in respect of Net Sales by Licensee and its Related Parties of any and all Royalty Products, including under Section 7.4.1 and Section 7.4.2 of the Medco License Agreement but excluding Milestones, after giving effect to all Royalty Reductions applicable thereto, (ii) [***]. For the avoidance of doubt, the Royalty shall exclude any and all Excluded Payments.
“Royalty Product” means any “Licensed Product,” as such term is defined in Section 1.72 of the Medco License Agreement. For the avoidance of doubt, Inclisiran is an example of a “Royalty Product.”
“Royalty Product Patents” has the meaning set forth in Section 3.9(a).
“Royalty Reduction” means any adjustments, modifications, credits, offsets, credits, reductions or deductions to Royalty payments made (a) under the Medco License Agreement pursuant to and expressly permitted by Section 7.4.3, Section 7.4.4 [***] or Section 7.4.5 of the Medco License Agreement with respect to the Royalty Product (and subject to the limitation imposed by Section 7.4.6 of the Medco License Agreement) or (b) [***]. 
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“Royalty Reports” means, with respect to each Calendar Quarter, the report (including any certifications in respect thereof) required to be prepared and delivered to Seller pursuant to Section 7.4.7 of the Medco License Agreement.
“Royalty Term” has the meaning set forth in Section 1.114 of the Medco License Agreement.
“SEC” means the U.S. Securities and Exchange Commission. 
“Seller” has the meaning set forth in the preamble.
“Seller Account” means the account set forth on Exhibit E hereto or such other account as may be designated by the Seller in writing from time to time.
“Seller Indemnified Party” has the meaning set forth in Section 7.2.
“Set-Off” means any right of set-off, counterclaim, credit, reduction or deduction by contract or otherwise, other than a Royalty Reduction.
“Seller SEC Documents” has the meaning set forth in Section 3.14.
“Solvent” means, with respect to any Person on any date of determination, that on such date (a) the fair value of the assets of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair saleable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature, (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital and (e) such Person is able to pay its debts and liabilities, contingent obligations and other commitments as they mature in the ordinary course of business. The amount of contingent obligations or contingent liabilities, as applicable, at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability or obligation, as applicable.
“Territory” has the meaning set forth in Section 1.1.25 of the Medco License Agreement.
“Transaction Documents” means this Agreement, the Paying Agent Agreement, the Bill of Sale and the Licensee Instruction.
“UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York; provided, that, if, with respect to any financing statement or by reason of any provisions of applicable Law, the perfection or the effect of perfection or non-perfection of the back-up security interest or any portion thereof granted pursuant to Section 2.1(b) is governed by the Uniform Commercial Code as in effect in a jurisdiction of the United States other than the State of Delaware, then “UCC” means the Uniform Commercial Code as in effect from time to time in such 
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other jurisdiction for purposes of the provisions of this Agreement and any financing statement relating to such perfection or effect of perfection or non-perfection.
“U.S.” or “United States” means the United States of America, each territory thereof and the District of Columbia.
Section 1.2 Rules of Construction.  Unless the context otherwise requires, in this Agreement:
(a) a term has the meaning assigned to it and an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;
(b) unless otherwise defined, all terms that are defined in the UCC shall have the meanings stated in the UCC;
(c) words of the masculine, feminine or neuter gender shall mean and include the correlative words of other genders;
(d) the definitions of terms shall apply equally to the singular and plural forms of the terms defined;
(e) references to the term “or” will be interpreted in the inclusive sense commonly associated with the term “and/or”;
(f) the terms “include”, “including” and similar terms shall be construed as if followed by the phrase “without limitation”;
(g) unless otherwise specified, references to an agreement or other document include references to such agreement or document as from time to time amended, restated, reformed, supplemented or otherwise modified in accordance with the terms thereof (subject to any restrictions on such amendments, restatements, reformations, supplements or modifications set forth herein) and include any annexes, exhibits and schedules attached thereto;
(h) references to any Law shall include such Law as from time to time in effect, including any amendment, modification, codification, replacement or reenactment thereof or any substitution therefor; provided that, for purposes of Article III and Article IV, reference to a Law shall mean such Law as in effect as of the date hereof; 
(i) references to any Person shall be construed to include such Person’s successors and permitted assigns (subject to any restrictions on assignment, transfer or delegation set forth herein or in any of the other Transaction Documents), and any reference to a Person in a particular capacity excludes such Person in other capacities;
(j) the word “will” shall be construed to have the same meaning and effect as the word “shall”;
(k) the words “hereof”, “herein”, “hereunder” and similar terms when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision hereof, 
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and Article, Section and Exhibit references herein are references to Articles and Sections of, and Exhibits to, this Agreement unless otherwise specified;
(l) in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including” and each of the words “to” and “until” means “to but excluding”; and
(m) where any payment is to be made, any funds are to be applied or any calculation is to be made under this Agreement on a day that is not a Business Day, unless this Agreement otherwise provides, such payment shall be made, such funds shall be applied and such calculation shall be made on the succeeding Business Day, and payments shall be adjusted accordingly.
ARTICLE II
PURCHASE AND SALE OF THE PURCHASED ASSETS

Section 2.1 Purchase and Sale.
(a) Upon the terms and subject to the conditions of this Agreement, upon the payment of the First Installment at the Closing, the Seller shall sell, contribute, assign, transfer and convey to the Purchaser, and the Purchaser shall purchase, acquire and accept from the Seller, all of the Seller’s right, title and interest in and to the Purchased Assets, free and clear of any and all Liens, other than those Liens created in favor of the Purchaser by the Transaction Documents. Without limiting the foregoing, it is understood and agreed that the Purchaser shall not, by purchase of the Purchased Assets, acquire any assets or rights of the Seller under, or relating to, the Medco License Agreement [***] other than the Purchased Assets and any rights specified in this Agreement.
(b) It is the intention of the parties hereto that the sale, transfer, assignment and conveyance contemplated by this Agreement be, and is, a true, complete, absolute and irrevocable sale, transfer, assignment and conveyance by the Seller to the Purchaser of all of the Seller’s right, title and interest in and to the Purchased Assets free and clear of all Liens, other than those created in favor of the Purchaser by the Transaction Documents.  Neither the Seller nor the Purchaser intends the transactions contemplated by this Agreement to be, or for any purpose characterized as, a loan from the Purchaser to the Seller or a pledge, a security interest, a financing transaction or a borrowing.  Each of the Seller and the Purchaser hereby waives, to the maximum extent permitted by applicable Law, any right to contest or otherwise assert that this Agreement does not constitute a true, complete, absolute and irrevocable sale, transfer, assignment and conveyance by the Seller to the Purchaser of all of the Seller’s right, title and interest in and to the Purchased Assets under applicable Law, which waiver shall, to the maximum extent permitted by applicable Law, be enforceable against the Seller in any bankruptcy or insolvency proceeding relating to the Seller. Not in derogation of the foregoing statement of the intent of the parties hereto in this regard, and for the purposes of providing additional assurance to the Purchaser in the event that, despite the intent of the parties hereto, the sale, transfer, assignment and conveyance contemplated hereby is hereafter held not to be a sale, the Seller does hereby grant to the Purchaser, as security for the payment of amounts to the Purchaser equal to the Purchased Assets as it becomes due and payable, a security interest in and to all right, title and interest of the Seller, in, to and under the Purchased Assets and 
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any “proceeds” (as such term is defined in the UCC) thereof, and the Seller does hereby authorize the Purchaser, from and after the Closing, to file such financing statements (and continuation statements with respect to such financing statements when applicable) in such manner and such jurisdictions as are necessary or appropriate to perfect such security interest.
Section 2.2 Purchase Price.  The purchase price to be paid by the Purchaser in full consideration for the sale, contribution, assignment, transfer and conveyance of the Purchased Assets, without any deduction for withholding or other taxes is $1,000,000,000 (the “Purchase Price”), of which: 
(a) Initial Up-Front Purchase Price.  The First Installment shall be paid to Seller in accordance with Section 6.2; and 
(b) Secondary Up-Front Purchase Price.  The Remainder shall be paid to Seller accordance with Section 6.2.
Section 2.3 No Assumed Obligations.  Notwithstanding any provision in this Agreement or any other writing to the contrary, the Purchaser is purchasing, acquiring and accepting only the Purchased Assets and is not assuming any liability or obligation of the Seller or any of the Seller’s Affiliates of whatever nature, whether presently in existence or arising or asserted hereafter (including any liability or obligation of the Seller under the Medco License Agreement).  All such liabilities and obligations shall be retained by and remain liabilities and obligations of the Seller or the Seller’s Affiliates, as the case may be (the “Excluded Liabilities and Obligations”).
Section 2.4 Excluded Assets.  Except as expressly set forth in the Transaction Documents, the Purchaser does not, by purchase, acquisition or acceptance of the right, title or interest granted hereunder or otherwise pursuant to any of the Transaction Documents, purchase, acquire or accept any assets or contract rights of the Seller, including under the Medco License Agreement, other than the Purchased Assets, or any other assets of the Seller (collectively, the “Excluded Assets”). 
Section 2.5 [***]. 
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE SELLER

Except as set forth on, or disclosed in, Exhibit F, the Seller hereby represents and warrants to the Purchaser as of the date hereof as follows:
Section 3.1 Existence; Organization.  The Seller is a corporation duly organized, validly existing and in good standing under the Laws of Delaware.
Section 3.2 No Conflicts.  The execution, delivery and performance by Seller of the Transaction Documents and the consummation of the transactions contemplated thereby do not (a) give rise to any right of termination, cancellation or acceleration of any right or obligation of Licensee or any sublicensee under the Medco License Agreement, or (b) constitute a breach or violation of or default under any provision of (i) the organizational documents of the Seller, (ii) any 
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Law or Judgment applicable to the Seller, (iii) the Medco License Agreement or (iv) any contract (other than the Medco License Agreement) to which the Seller is a party or by which the Seller is bound, including the Related Agreements, except, in the case of clauses (b)(ii) and (b)(iv), for such breaches, violations and defaults that, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.  

Section 3.3 Authorization; Enforceability.  The Seller has all necessary corporate power and authority to (a) conduct its affairs as currently conducted, including to exercise its rights and perform its obligations under the Medco License Agreement and (b) execute, deliver and perform the Transaction Documents and to consummate the transactions contemplated thereby.  The execution, delivery and performance of the Transaction Documents, and the consummation of the transactions contemplated thereby, have been duly authorized by the Seller.  Each of the Transaction Documents has been duly executed and delivered by the Seller and constitutes the legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, except as may be limited by general principles of equity (regardless of whether considered in a proceeding at law or in equity) and by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally, general equitable principles and principles of public policy.
Section 3.4 Ownership.  The Seller has good and valid title to the Purchased Assets, free and clear of all Liens (other than those created in favor of the Purchaser and expressly contemplated by this Agreement and the Paying Agent Agreement), and is the exclusive owner of the entire right, title (legal and equitable) and interest in the Purchased Assets. Upon payment of the First Installment by the Purchaser, the Purchaser will have acquired, subject to the terms and conditions set forth in this Agreement, good and valid title to the Purchased Assets, free and clear of all Liens (other than those created in favor of Purchaser and expressly contemplated by this Agreement and the Paying Agent Agreement).
Section 3.5 Governmental and Third Party Authorizations.  The execution, delivery and performance by the Seller of the Transaction Documents and the consummation of any of the transactions contemplated thereby do not require any consent, approval, license, order, authorization or declaration from, notice to, action or registration by or filing with any Governmental Authority or any other Person, except for (a) a Current Report on Form 8-K by the Seller with the U.S. Securities and Exchange Commission, (b) the UCC financing statements contemplated by Section 2.1(b), (c) those previously obtained and (d) such consents, the failure of which to be obtained or made, would not reasonably be expected to have a Material Adverse Effect.
Section 3.6 No Litigation.  There is no (a) action, suit, arbitration proceeding, claim, demand, citation, summons, subpoena, investigation or other proceeding (whether civil, criminal, administrative, regulatory or investigative) pending or, to the Knowledge of the Seller, threatened, by or against the Seller, or (b) pending inquiry or investigation (whether civil, criminal, administrative, regulatory or investigative) by or against the Seller that, in each case, individually or in the aggregate, (i) challenges or seeks to prevent or delay the consummation of any of the transactions contemplated by any of the Transaction Documents to which Seller is a Party or (ii) would reasonably be expected to result in a Material Adverse Effect.
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Section 3.7 No Brokers’ Fees.  The Seller has not taken any action that would entitle any Person or entity other than Evercore Group L.L.C. to any commission or broker’s fee in connection with the transactions contemplated by this Agreement. Other than the Paying Agent, there is no Person or entity retained by Seller entitled to any commission or broker’s fee from Purchaser in connection with the transactions contemplated by this Agreement.
Section 3.8 Compliance with Laws.  The Seller (a) has not violated, nor is it in violation of, has not been given notice of any violation of, and, to the Knowledge of the Seller, is not under investigation with respect to nor has it been threatened to be charged with, any violation of, any applicable Law or any judgment, order, writ, decree, injunction, stipulation, consent order, permit or license granted, issued or entered by any Governmental Authority, and (b) is not subject to any judgment, order, writ, decree, injunction, stipulation or consent order issued or entered by any Governmental Authority; in each case, that would reasonably be expected to have a Material Adverse Effect.
Section 3.9 Intellectual Property Matters. 
(a) With respect to such patents and patent applications owned by the Seller, and to the Knowledge of the Seller with respect to all other such patents and patent applications, Exhibit G sets forth an accurate and complete list of all issued patents and patent applications in the Alnylam Technology and that cover or claim the Royalty Product or its use, manufacture, or sale (such Patent Rights listed or required to be listed on Exhibit G, the “Royalty Product Patents”).  For each of such Royalty Product Patents, the Seller has indicated (i) the jurisdictions in which such Patent Right is pending, allowed, granted or issued, (ii) the patent number or patent serial number, (iii) the owner of such Patent Right (which shall be to the Knowledge of the Seller, in the case of owners other than Seller or its Affiliates), and (iv) the expiration date of such Patent Right.
(b) Seller has not committed any act, or failed to commit any required act, that would reasonably be expected to cause any Royalty Product Patents to expire prematurely, lapse or be declared invalid or unenforceable, or that estops the enforcement of such Royalty Product Patent against any third party. There are no unpaid maintenance or renewal fees or annuities payable by the Seller to any third party that currently are overdue for any of the Royalty Product Patents. No Royalty Product Patents have lapsed or been abandoned, cancelled, disclaimed or expired, and to the Knowledge of the Seller, there is no fact, circumstance or event that would constitute a basis for any such lapse, abandonment, cancellation or expiration.  To the Knowledge of the Seller, each individual associated with the filing and prosecution of the Royalty Product Patents owned in whole or in part by Seller, including the named inventors of such Royalty Product Patents, has complied in all material respects with all applicable duties of candor and good faith in dealing with any Patent Office, including any duty to disclose to any Patent Office all information known by such inventors to be material to the patentability of each such Royalty Product Patents (including any relevant prior art), in each case, in those jurisdictions in the Territory where such duties exist.
(c) Seller has not received any written notice from Licensee or any other Person, and to the Knowledge of Seller, there is no pending or threatened litigation, opposition, interference, reexamination, reissue, inter partes review, post grant review, cancellation, notification, injunction, claim, suit, action, citation, summon, subpoena, hearing, inquiry, investigation (by the International Trade Commission or otherwise), complaint, arbitration, 
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mediation, demand, decree or other dispute, disagreement, proceeding or claim (collectively, “Disputes”) challenging the validity, enforceability, scope, inventorship or ownership of any of the Royalty Product Patents or that would reasonably be expected to give rise to any Set-Off against the payments due to the Seller under the Medco License Agreement. The Royalty Product Patents owned by Seller, and to the Knowledge of the Seller the Licensed Royalty Product Patents, are not subject to any outstanding injunction, judgment, order, decree, ruling, settlement or other final disposition of a Dispute. 
(d) To the Knowledge of Seller, the Royalty Product Patents that have been issued or granted by the applicable Patent Office are valid and enforceable. Seller has not received any written legal opinion, whether preliminary in nature or qualified in any manner, which concludes that a challenge to the validity or enforceability of any of the issued Royalty Product Patents may succeed. Seller has not received any claim or notice challenging, or threatening to challenge, the ownership of, or rights of Licensee in and to, or the validity or enforceability of the Royalty Product Patents.
(e) Seller has not received any claim or notice disputing or threatening to dispute the inventorship of any of the Royalty Product Patents or otherwise alleging that any Person who is not named as an inventor on any of the Royalty Product Patents should be so named, and to the Knowledge of the Seller, there is no reasonable basis for such a claim with respect to any of the Royalty Product Patents owned by Seller.
(f) The Seller has not received any written notice under the Medco License Agreement or otherwise of Competitive Infringement of any Royalty Product Patent or of infringement of any Core Royalty Product Patent. 
(g) Each of the Royalty Product Patents owned by Seller correctly names all of the inventors thereof, in accordance with applicable Law. Seller has not received any notice from Licensee or any other Person, and to the Knowledge of Seller, there is no Person who is or claims to be an inventor under any of the Royalty Product Patents who is not a named inventor thereof, or that any Person named as an inventor of any of the Royalty Product Patents is not an inventor thereof. 
(h) To the Knowledge of the Seller, there is no pending or threatened action, suit or proceeding that claims that the manufacture, use, marketing, sale, offer for sale, importation or distribution of the Royalty Product does or will infringe on any patent or other intellectual property rights of any other Person or constitute misappropriation of any other Person’s trade secrets or other intellectual property rights.  The Seller has not received any written notice asserting or claiming any such infringement or misappropriation in respect of the Royalty Product.  To the Knowledge of the Seller, the manufacture, use, marketing, sale, offer for sale, importation or distribution of the Royalty Product by Licensee does not and will not constitute an infringement of any patent or other intellectual property rights of any other Person or constitute misappropriation of any other Person’s trade secrets or other intellectual property rights, except where such infringement or misappropriation would not reasonably be expected to result in a Material Adverse Effect.  
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(i) The Alnylam Technology licensed (or sublicensed or optioned, as the case may be) by Seller to Licensee under the Medco License Agreement constitute all the intellectual property owned by or licensed (with the right to sublicense) to the Seller or any of the Seller’s Affiliates necessary for the sale of the Royalty Products in the Territory. Other than the Medco License Agreement, the Medco Supply Agreement and the Medco Ancillary Agreements, there are no other contracts between Seller or any of its Affiliates, on the one hand, and Licensee or its respective Affiliates, on the other hand, involving or related to a Royalty Product, the Royalty Product Patents or the Purchased Assets, or that would reasonably be expected to result in a Material Adverse Effect. 
(j) Except as set forth on Exhibit G with respect to the Licensed Royalty Product Patents, Seller owns the entire right, title and interest, free and clear of any Liens, in and to the Royalty Product Patents. To the Knowledge of the Seller, there are no facts that would preclude Seller from having clear title in and to such Royalty Product Patents.
(k) There are no compulsory licenses granted or, to the Knowledge of the Seller, threatened to be granted under the Royalty Product Patents with respect to the Royalty Product or any other product that, if sold without a license, would constitute a Competitive Infringement of the Royalty Product Patents. To the Knowledge of the Seller, no event or condition exists that would permit or require Licensee to grant any such compulsory license to any Person.  Seller has not received any written notice from or on behalf of Licensee expressing an intention by Licensee to grant any such compulsory license or otherwise Set-Off any amount from the Purchased Assets because of any amount owed or claimed to be owed from Seller to Licensee. 
(l) Absent the Medco License Agreement, the manufacture, marketing, use, sale or distribution of Inclisiran in the applicable jurisdiction would infringe a Valid Claim (as defined in the Medco License Agreement) of each applicable Core Royalty Product Patent. Seller and its Affiliates own each Core Royalty Product Patent.
(m)  Inclisiran is a Licensed Product, as such term is defined in the Medco License Agreement, and the Royalty Products, including Inclisiran, are Licensed Products under and as such term is defined in the Medco License Agreement.
Section 3.10 Medco License Agreement. 
(a) Attached hereto as Exhibit H is a true, correct and complete copy of the Medco License Agreement. Seller has provided to Purchaser in the Data Room the material written notices and other material written correspondence delivered to the Licensee by Seller, or by the Licensee or Novartis to Seller, in each case since January 1, 2018 (i) pursuant to the Medco License Agreement or (ii) pertaining to development, manufacturing, supply and patent prosecution activities thereunder since January 1, 2018, as further described and with the exceptions set forth on Schedule 3.10(a) hereto, in each case relating to, affecting or involving the Purchased Assets or the Medco License Agreement or that could reasonably be expected to have an adverse effect on the value of the Purchased Assets in any material respect.
(b) Other than the Transaction Documents, the Medco License Agreement, the Medco Supply Agreement, the Medco Ancillary Agreements and the Related Agreements, there is 
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no contract, agreement or other arrangement (whether written or oral) to which the Seller is a party or by which any of their respective assets or properties is bound or committed (i) that creates a Lien on the Royalty, the Milestones, the Medco License Agreement or the Alnylam Technology; (ii) that materially relates to, affects or involves the Purchased Royalty Interest, the Royalty Products or the Royalty Product Patents or (iii) for which breach thereof, nonperformance thereof, cancellation thereof or failure to renew would reasonably be expected to have a Material Adverse Effect. Other than the Transaction Documents, there is no contract, agreement or other arrangement (whether written or oral) to which the Seller is a party or by which any of their respective assets or properties is bound or committed that creates a Lien on the Purchased Assets. The Seller has not received any notice from the Licensee or Novartis under Section 6.1.3(b) of the Medco License Agreement or provided any consent to the Licensee or Novartis under Section 6.1.3(a) of the Medco License Agreement and, to Knowledge of Seller, no sublicense has been granted. 
(c) 
(i) The Medco License Agreement is in full force and effect and is the legal, valid and binding obligation of the Seller and, to the Knowledge of the Seller, Licensee, enforceable against the Seller and, to the Knowledge of the Seller, Licensee in accordance with its terms, except as may be limited by general principles of equity (regardless of whether considered in a proceeding at law or in equity) and by applicable bankruptcy, insolvency, moratorium and other similar Laws of general application relating to or affecting creditors’ rights generally. 
(ii) The Seller has not received any written notice or, to the Knowledge of the Seller, any other communication, from or on behalf of the Licensee or Novartis challenging or threatening to challenge the validity or enforceability of the Medco License Agreement or any obligation of the Licensee thereunder, including any obligation to pay the Royalty, Milestones or any other payment thereunder.
(d) Except as would not reasonably be expected to have a Material Adverse Effect, (i) the Seller is not in breach or violation of or in default under the Medco License Agreement and (ii) to the Knowledge of the Seller, neither the Licensee nor Novartis has  breached, and neither the Licensee nor Novartis is in violation or default under, any provision of the Medco License Agreement.
(e) The Seller has not granted or been granted any written waiver under the Medco License Agreement or released Licensee or Novartis, in whole or in part, from any of its  obligations under the Medco License Agreement.  To the Knowledge of the Seller, there are no waivers or modifications (or pending requests therefor) in respect of the Medco License Agreement.  Since the date of the First Amendment, the Seller has not received from the Licensee or Novartis any written proposal [***] to amend or waive any provision of the Medco License Agreement.
(f) To the Knowledge of the Seller, no event has occurred that, upon notice or the passage of time or both, would reasonably be expected to give rise to a breach of the Medco License Agreement by Seller or Licensee or Novartis, which breach would reasonably be expected to result in  a Material Adverse Effect, or that would otherwise give the Seller or Licensee the right 
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to terminate the Medco License Agreement or cease paying the Royalty or Milestones thereunder.  The Seller has not received any written notice of an intention by Licensee or Novartis to terminate or breach the Medco License Agreement, in whole or in part, or challenging the validity or enforceability of the Medco License Agreement or the obligation to pay the Royalty or Milestones thereunder, or that the Seller or Licensee is in default of its obligations under the Medco License Agreement, in each case other than as would not reasonably be expected to result in a Material Adverse Effect.  The Seller has no intention of terminating the Medco License Agreement and has not given Licensee or Novartis any notice of termination of the Medco License Agreement, in whole or in part.
(g) Neither Seller nor Licensee (nor Novartis) has assigned, sold or transferred the Medco License Agreement or any of its rights, interests or obligations thereunder (including with respect to the Royalty and the Milestones) to any Person, and the Seller has not consented to any such assignment by Licensee.  Except as contemplated by the Transaction Documents, the Seller has not assigned, sold or transferred, in whole or in part, any of the Seller’s right, title or interest in or to the Royalty, Milestones or Purchased Assets.
(h) Neither the Seller nor Licensee has exercised its rights to conduct an audit under Section 7.5 of the Medco License Agreement.
(i) To the Knowledge of the Seller, the Seller has received all amounts owed to it under the Medco License Agreement, to the extent such amounts have come due, including the Upfront Fee (as defined in the Medco License Agreement) and the milestones (i) and (ii) under Section 7.2(a) of the Medco License Agreement.
(j) Seller has not sent or received any written notice or, to the Knowledge of the Seller, any other communication of any dispute from the Licensee or Novartis for resolution pursuant to Section 13.12 of the Medco License Agreement.
(k) [***]. 
(l) There are no agreements between the Seller or, to the Knowledge of the Seller, Licensee or Novartis, with any third party or Person that would give rise to a right of Licensee to reduce the payment of any Royalty or Milestone owed to Seller pursuant to Section 7.4.5 of the Medco License Agreement, and Seller has no Knowledge of any ongoing discussions related to any such agreements. 
(m) Neither the Seller nor Licensee has made any claim of indemnification under the Medco License Agreement. 
Section 3.11 No Other Agreements.  Seller has not entered into any agreement relating to the present or future assignment, transfer, or sale of any rights in or to any portion of the Royalty or Milestones. 
Section 3.12 UCC Matters.  The Seller’s exact legal name is, and for the preceding ten (10) years has been, “Alnylam Pharmaceuticals, Inc.”.  The Seller’s principal place of business is, and for the preceding ten (10) years has been, located in the Commonwealth of Massachusetts.  The 
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Seller’s jurisdiction of organization is, and for the preceding ten (10) years has been, the State of Delaware.
Section 3.13 Set-Off Against Royalty.  To the Knowledge of the Seller, neither Licensee nor Novartis has any right of Set-Off under the Medco License Agreement against the Purchased Assets or any other amounts payable to the Seller under the Medco License Agreement.  Licensee has not exercised, and, to the Knowledge of the Seller, has not had and does not have the right to exercise, and, to the Knowledge of the Seller, no event or condition exists that, upon notice or passage of time or both, would reasonably be expected to permit Licensee or Novartis to exercise, any Set-Off against the Purchased Assets or any other amounts payable to the Seller under the Medco License Agreement.
Section 3.14 SEC Filings.  In the three (3) years prior to the Closing Date, Seller has timely filed all required reports, schedules, forms, statements and other documents (including exhibits and all other information incorporated therein), and any required amendments to any of the foregoing, with the SEC (the "Seller SEC Documents”). As of their respective filing dates, each of the Seller SEC Documents complied in all material respects with the requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder applicable to such Seller SEC Documents, and no Seller SEC Documents when filed, declared effective or mailed, as applicable, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
Section 3.15 Related Agreements. Except as would not reasonably be expected to have a Material Adverse Effect, the Related Agreements are in full force and effect, and are the legal and valid binding obligation of the Seller and, to the Knowledge of the Seller, the counterparties thereunder, enforceable against the Seller and, to the Knowledge of the Seller, the counterparties thereunder, in accordance with their terms, except as may be limited by general principles of equity (regardless of whether considered in a proceeding at law or in equity) and by applicable bankruptcy, insolvency, moratorium and other similar Laws of general application relating to or affecting creditors’ rights generally. Except as would not reasonably be expected to have a Material Adverse Effect, the Seller has not received any written notice or, to the Knowledge of the Seller, any other communication, from or on behalf of a counterparty to any Related Agreement challenging or threatening to challenge the validity or enforceability of any such Related Agreement or any obligation of the Seller thereunder. Except as would not reasonably be expected to have a Material Adverse Effect, the Seller is not in breach or violation of or in default under any of the Related Agreements, and, to the Knowledge of the Seller, the counterparty under each Related Agreement has not breached, and is not in violation or default under, any provision of any such Related Agreement. The Related Agreements include all agreements pursuant to which Seller has in-licensed Patent Rights that are directed to, cover or claim Inclisiran and are sublicensed to Medco under the Medco License Agreement.
Section 3.16 Medco Supply Agreement.  The Medco Supply Agreement is in full force and effect, is the legal and valid binding obligation of the Seller and, to the Knowledge of the Seller, the Licensee, enforceable against the Seller and, to the Knowledge of the Seller, the 
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Licensee, in accordance with its terms, except as may be limited by general principles of equity (regardless of whether considered in a proceeding at law or in equity) and by applicable bankruptcy, insolvency, moratorium and other similar Laws of general application relating to or affecting creditors’ rights generally. The Seller is not in breach or violation of or in default under the Medco Supply Agreement. There are no amounts due or payable under the Medco Supply Agreement by Seller, [***] nothing in the Medco Supply Agreement creates any right of offset by Licensee against the Purchased Assets. [***]
Section 3.17 Compliance.  To the Knowledge of the Seller, all applications, submissions, information and data related to the Royalty Product submitted or utilized as the basis for any request to any Regulatory Authority by or on behalf of Licensee were true and correct in all material respects as of the date of such submission or request, and any material updates, changes, corrections or modifications to such applications, submissions, information or data required under applicable Laws have been submitted to the necessary Regulatory Authorities. To the Knowledge of Seller, Licensee has not committed any act, made any statement or failed to make any statement that would reasonably be expected to provide a basis for the FDA or any other Regulatory Authority to invoke its policy with respect to “Fraud, Untrue Statements of Material Facts, Bribery, and Illegal Gratuities,” or similar policies set forth in any applicable Laws.  
Section 3.18 Solvency.  Seller is Solvent. 
Section 3.19 Tax Matters. No deduction or withholding for or on account of any tax has been made or, to the Knowledge of the Seller, was required under applicable Law to be made from any payment to Seller under the Medco License Agreement, and, to the Knowledge of the Seller, provided that Purchaser provides an IRS Withholding Form establishing a zero percent (0%) withholding rate for each of “royalties,” “other income” and “interest,” no such deduction or withholding will be made or will be required under currently applicable Law to be made with respect to any payment to (or for the benefit of) the Purchaser hereunder. Seller has filed (or caused to be filed) all material tax returns and material tax reports required to be filed under applicable Law and has paid all material taxes required to be paid, except for any such taxes that are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with generally accepted accounting principles, as in effect from time to time.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

The Purchaser hereby represents and warrants to the Seller as of the date hereof as follows:
Section 4.1 Organization.  The Purchaser is a limited partnership duly organized, validly existing and in good standing under the Laws of the state of Delaware.

Section 4.2 No Conflicts.  The execution, delivery and performance by the Purchaser of any of the Transaction Documents and the consummation of the transactions contemplated thereby do not constitute a breach or default under, or require prepayment under any provision of (a) any applicable Law or any judgment applicable to Purchaser that would reasonably be expected to have 
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a Material Adverse Effect, (b) any contract to which the Purchaser is a party or by which the Purchaser is bound, or (c) the organizational documents of the Purchaser.
Section 4.3 Authorization.  The Purchaser has all powers and authority to conduct its affairs as currently conducted, and to execute and deliver, and perform its obligations under, the Transaction Documents to which it is party and to consummate the transactions contemplated hereby and thereby.  The execution and delivery of each of the Transaction Documents to which the Purchaser is party and the performance by the Purchaser of its obligations hereunder and thereunder have been duly authorized by the Purchaser.  Each of the Transaction Documents to which the Purchaser is party has been duly executed and delivered by the Purchaser.  Each of the Transaction Documents to which the Purchaser is party constitutes the legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar applicable Laws affecting creditors’ rights generally, general equitable principles and principles of public policy.
Section 4.4 Governmental and Third Party Authorizations.  The execution, delivery and performance by the Purchaser of the Transaction Documents and the consummation of any of the transactions contemplated hereunder and thereunder do not require any consent, approval, license, order, authorization or declaration from, notice to, action or registration by or filing with any Governmental Authority or any other Person, except as described in Section 3.5.
Section 4.5 No Litigation.  There is no (a) action, suit, arbitration proceeding, claim, demand, citation, summons, subpoena, investigation or other proceeding (whether civil, criminal, administrative, regulatory, investigative or informal) pending or, to the Knowledge of the Purchaser, threatened by or against the Purchaser, at law or in equity, or (b) inquiry or investigation (whether civil, criminal, administrative, regulatory, investigative or informal) by or before a Governmental Authority pending or, to the Knowledge of the Purchaser, threatened against the Purchaser, that, in each case, challenges or seeks to prevent or delay the consummation of any of the transactions contemplated by any of the Transaction Documents to which the Purchaser is party.
Section 4.6 Access to Information.  The Purchaser acknowledges that it has reviewed the Medco License Agreement, the Medco Supply Agreement and such other documents and information relating to, and has had the opportunity to ask such questions of, and to receive answers from, representatives of the Seller concerning, the Royalty Product, the Alnylam Technology, the Medco License Agreement, the Medco Supply Agreement, the Royalty, the Purchased Assets, and any other matter relating thereto, in each case, as it deemed necessary to make an informed decision to purchase, acquire and accept the Royalty in accordance with the terms of this Agreement. Except as specifically set forth in Article III and the Disclosure Schedules, the Purchaser acknowledges and agrees that the Seller makes no representation nor extends any warranty, whether express or implied, with respect to the Royalty Product, the Alnylam Technology, the Medco License Agreement, the Medco Supply Agreement, the Royalty, the Purchased Assets, future Net Sales of the Royalty Product or any other matter relating thereto; provided that, the foregoing disclaimers shall not apply in the case of fraud on the part of Seller. The Purchaser has such knowledge, sophistication and experience in financial and business matters that it is capable of evaluating the risks and merits of purchasing, acquiring and accepting the Purchased Assets in accordance with the terms of this Agreement.
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Section 4.7 Funds Available.  The Purchaser has sufficient funds on hand or binding and enforceable commitments to provide it with sufficient funds to satisfy its obligations, in each case to pay the Purchase Price, and the Purchaser has no reason to believe, and has not been provided with oral or written notice that any of its investors are not required or do not intend, for any reason, to satisfy their obligations under such commitments.  The Purchaser acknowledges and agrees that its obligations under this Agreement are not contingent on obtaining financing.
ARTICLE V
COVENANTS

Section 5.1 Public Announcement.  Except (a) for a press release previously approved in form and substance by the Seller and the Purchaser and attached hereto as Exhibit I, or any other public announcement using substantially the same text as such press release, and (b) subject to Section 5.15, any disclosure required by applicable Law, by the rules and regulations of any securities exchange or market on which any security of such Party may be listed or traded or by any Governmental Authority of competent jurisdiction, neither Party shall, and each Party shall cause its Affiliates not to, without the prior written consent of the other Party (which consent shall not be unreasonably withheld or delayed), issue any press release or make any other public disclosure with respect to this Agreement or any of the other Transaction Documents or any of the transactions contemplated hereby or thereby.

Section 5.2 Further Assurances.  Subject to the terms and conditions of this Agreement, each Party shall execute and deliver such other documents, certificates, instruments, agreements and other writings, take such other actions and perform such additional acts under applicable Law as may be reasonably requested by the other Party and necessary to implement expeditiously the transactions contemplated by, and to carry out the purposes and intent of the provisions of, this Agreement and the other Transaction Documents, including to (i) perfect the sale, contribution, assignment, transfer, conveyance and granting of the Purchased Assets to the Purchaser pursuant to this Agreement, (ii) perfect, protect, more fully evidence, vest and maintain in the Purchaser good, valid and marketable rights and interests in and to the Purchased Assets free and clear of all Liens (other than those Liens created in favor of the Purchaser by the Transaction Documents), (iii) create, evidence and perfect the Purchaser’s back-up security interest granted pursuant to Section 2.1(b) and (iv) enter into the Paying Agent Agreement in accordance with Section 6.4(b).
Section 5.3 Royalty Reports; Notices and Communications from Licensee.  Promptly (and in any event no later than [***]) following the receipt by the Seller from the Licensee of (a) a Royalty Report, (b) any written notice or written correspondence relating to, affecting or involving the Purchased Assets (including notification regarding the achievement of any of the Milestones by Licensee or a Related Party), the Medco License Agreement or that would reasonably be expected to result in a Material Adverse Effect, (c) any development reports provided by Licensee pursuant to Section 2.5.1 of the Medco License Agreement, or (d) the Medco Commercialization Plan (as defined in the Medco License Agreement), the Seller shall furnish a copy of the same to the Purchaser (provided that Seller shall not be required to furnish to Purchaser any notice or correspondence that, if disclosed, would result in the loss or waiver of any attorney client privilege [***]). Except for the Licensee Instruction and notices and correspondence required to be given or made by the Seller (i) under the Medco License Agreement or (ii) by applicable Law, the Seller 
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shall not send any notice or correspondence to the Licensee relating to, affecting or involving, the Royalty, the Milestones or the Purchased Assets, or that would reasonably be expected to result in a Material Adverse Effect, except in each case, with the Consent of Purchaser. Without limiting the foregoing, the Seller shall, promptly (and in any event no later than [***]) following the delivery thereof by the Seller to the Licensee, furnish a copy of any written notice or correspondence sent by the Seller to the Licensee relating to, affecting or involving the Purchased Assets or the Medco License Agreement, or that would reasonably be expected to result in a Material Adverse Effect.
Section 5.4 Supply Chain. 
(a) [***].  
(b) [***] Seller shall promptly to the extent provided by the Medco Supply Agreement provide [***] to Purchaser any and all information of which Seller becomes aware regarding any circumstances that have occurred, or are likely to occur, that have resulted in or are reasonably likely to result in, any failure or delay in the supply or delivery of Loaded GalNAc Support (as defined in the Medco Supply Agreement) to Licensee. 
(c) [***].
Section 5.5 Payments on Account of Purchased Assets; Escrow.  Promptly following the Closing,  Seller shall instruct Licensee in the Licensee Instruction, and thereafter Seller shall act in accordance with Section 5.8 to cause Licensee to pay amounts owed in respect of the Purchased Assets into an escrow account in accordance with the Paying Agent Agreement. 
Section 5.6 Misdirected Payments.
(a) Notwithstanding the terms of the Licensee Instruction and the Paying Agent Agreement, commencing on the Closing Date and at all times thereafter, if any portion of the Purchased Assets is paid to the Seller, then (i) the Seller shall hold such amount in trust for the benefit of the Purchaser in a segregated account, (ii) the Seller shall have no right, title or interest whatsoever in such amount and shall not create or suffer to exist any Lien thereon and (iii) the Seller promptly, and in any event no later than [***] following the receipt by the Seller of such amount, shall remit such amount to the Purchaser Account. The Seller shall notify the Purchaser of such wire transfer and provide reasonable details regarding the Purchased Assets payment so received by the Seller.
(b) Notwithstanding the terms of the Licensee Instruction and the Paying Agent Agreement, commencing on the Closing Date and at all times thereafter, if any amount due under the Medco License Agreement that does not constitute the Purchased Assets is paid to the Purchaser, then (i) the Purchaser shall hold such amount in trust for the benefit of the Seller in a segregated account, (ii) the Purchaser shall have no right, title or interest whatsoever in such amount and shall not create or suffer to exist any Lien thereon and (iii) the Purchaser promptly, and in any event no later than [***] following the receipt by the Purchaser of such amount, shall remit such amount to the Seller Account. The Purchaser shall notify the Seller of such wire transfer and provide reasonable details regarding the erroneous payment so received by the Purchaser.
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(c) If the Licensee exercises any Set-Off against any payment of the Purchased Assets, then Seller shall promptly (and in any event no later than [***]) following payment of the Purchased Assets reduced by such Set-Off, make a true-up payment to the Purchaser such that the Purchaser receives the full amount of such Purchased Asset payment that would have been payable to the Purchaser had such Set-Off not been exercised. After the Seller makes the payment referred to in the first sentence of this Section 5.6(c), the Seller shall be entitled to, and the Purchaser shall not be entitled to, any amounts recovered from the Licensee in respect of such Set-Off.
(d) All remittances pursuant to this Section 5.6 shall be made (i) without set-off or deduction of any kind (except as required by applicable Law) and (ii) by wire transfer of immediately available funds to such account as the relevant payee may designate in writing (such designation to be made at least [***] prior to any such payment).
(e) A late fee of [***] shall accrue on all unpaid amounts on an annualized basis with respect to any sum payable under Section 5.6(a) or Section 5.6(b) beginning [***] after receipt of such payment received in error. 
Section 5.7 Maintenance of License Agreement.
(a) The Seller (i) shall perform and comply with all of its obligations under the Medco License Agreement, except where such performance and compliance is being contested in good faith by appropriate proceedings (provided that, during the pendency of any such dispute, Seller shall continue to comply with all of its other obligations under the Medco License Agreement) or where non-performance or non-compliance would not reasonably be expected to result in a Material Adverse Effect, and (ii) shall not (A) forgive, release or compromise any portion of the Royalty, the Milestones or the Purchased Assets payable under the Medco License Agreement, (B) amend, modify, supplement, restate, waive, cancel or terminate (or consent to any cancellation or termination of), in whole or in part, any provision of or right under the Medco License Agreement (except with the prior written Consent of Purchaser, to be granted or withheld in Purchaser’s sole discretion), or (C) assign, in whole or in part, the Medco License Agreement or any provision thereof or right thereunder.
(b) The Seller shall not, without the prior written Consent of the Purchaser, grant or withhold any consent, exercise or waive any right or option or fail to exercise any right or option in respect of, affecting or relating to the Purchased Assets, the Royalty Product or the Medco License Agreement in any manner that would (i) reasonably be expected to have a Material Adverse Effect or (ii) conflict with, or that would reasonably be expected to give rise to a breach, violation, termination or default under the Medco License Agreement.
(c) Within [***] after (i) becoming aware of, whether by written notice or otherwise, Licensee’s (A) intent to terminate the Medco License Agreement (in whole or in part) or (B) allegation of a breach or violation of or default under the Medco License Agreement by Seller or (ii) gaining Knowledge of any fact, circumstance or event that would reasonably be expected to give rise to a breach or violation of or default under the Medco License Agreement by the Seller, the Seller shall give written notice thereof to the Purchaser. Such notice shall (x) describe in reasonable detail such breach, violation, default or termination event, (y) include a copy of any written notice received from Licensee with respect thereto, and (z) in the case of any breach, 
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violation or default or alleged breach or default by the Seller, describe in reasonable detail any corrective action the Seller proposes to take in respect of such breach, violation or default. In consultation with Purchaser, Seller shall use commercially reasonable efforts to cure any breach or default by it under the Medco License Agreement and, in any case, shall give written notice to the Purchaser upon curing such breach or default. In connection with any dispute regarding an alleged breach that is related to the Royalty or the Milestones or would reasonably be expected to have a Material Adverse Effect, the Seller shall employ such counsel, reasonably acceptable to the Seller, as the Purchaser may select. The Seller shall pay the costs and expenses of such counsel. In addition to the obligations set forth in Section 5.7(a), the Seller shall not, except with the prior written Consent of Purchaser (which consent may be withheld or granted in Purchaser’s sole discretion with respect to the Royalty, the Milestones or the Purchased Assets), waive any obligation of, or grant any consent to, the Licensee under, involving, affecting, in respect of or related to the Royalty, the Milestones, the Royalty Product Patents or the Purchased Assets.
(d) Without limiting the provisions of Section 5.7(c), if Licensee terminates or provides written notice of termination of the Medco License Agreement (in whole or with respect to any Royalty Product, or any portion of the Territory, or a termination that would adversely affect the Purchased Assets), or the Medco License Agreement otherwise terminates (in whole or with respect to any Royalty Product, or any portion of the Territory, or a termination that could adversely affect the Purchased Assets), [***].
Section 5.8 Enforcement of License Agreement. 
(a) Promptly after the Seller obtains Knowledge of a breach or violation of or default under, or an alleged breach or violation of or default under, the Medco License Agreement by Licensee or of the existence of any facts, circumstances or events that, alone or together with other facts, circumstances or events, would reasonably be expected (with or without the giving of notice or passage of time, or both) to give rise to a breach or violation of or default under the Medco License Agreement by Licensee or the right to terminate the Medco License Agreement (in whole or in part) by the Seller, in each case the Seller shall (i) promptly (but in any event within [***]) give written notice to the Purchaser describing in reasonable detail the relevant breach, default or termination event and (ii) proceed, in consultation with the Purchaser, and with Purchaser’s prior written Consent, to take such permissible actions to enforce compliance by Licensee with the relevant provisions of the Medco License Agreement and to exercise any or all of the Seller’s rights and remedies, whether under the Medco License Agreement or by operation of law, with respect thereto (in each case other than with respect to breaches, violations or defaults that would not reasonably be expected to have a Material Adverse Effect).
(b) In connection with any enforcement of Licensee’s obligations under the Medco License Agreement with respect to any breach referred to in Section 5.8(a), the lead counsel selected by Seller shall be reasonably acceptable to Purchaser. The Applicable Percentage of all fees and expenses incurred in enforcing Licensee’s obligations under the Medco License Agreement pursuant to Section 5.8(a) shall be borne by Purchaser (taking into account any variation in such interests over different time periods, if applicable), with the remainder to be borne by Seller, provided, however, that the out-of-pocket costs and expenses (including the fees and expenses of the Seller’s counsel) shall be entirely borne by the Seller if such breach, violation, 
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default or termination event or alleged breach, violation, default or termination event directly results from a breach or violation of or default under the Medco License Agreement by the Seller.
(c) All Proceeds resulting from any enforcement of Licensee’s obligations under the Medco License Agreement with respect to payment of the Royalty or the Milestones (regardless of whether such enforcement is initiated by Seller as a result of a written request from Purchaser or initiated by Seller in the absence of any such request), after deduction (and reimbursement to Seller and Purchaser) of all costs and expenses (including attorneys’ fees and expenses) actually paid by each of Seller and Purchaser in connection with such enforcement pursuant to Section 5.8(b) above, shall be paid in accordance with the Paying Agent Agreement and allocated as follows: (i) the Applicable Percentage (taking into account whether the breach that led to such enforcement was related to the Royalty or to the Milestones and the time period in which such breach occurred) of such Proceeds to the Purchaser, and (ii) the remainder to the Seller.  The Seller hereby assigns and, if not presently assignable, agrees to assign to the Purchaser the amount of Proceeds due to the Purchaser in accordance with this Section 5.8(c).
Section 5.9 Prosecution and Enforcement of Intellectual Property.  
(a) In each case if and to the extent permitted under the Medco License Agreement, the Seller shall (i) take any and all actions, and prepare, execute, deliver and file any and all agreements, documents and instruments, that are reasonably necessary or desirable to diligently prosecute, preserve and maintain the applicable Royalty Product Patents, including payment of maintenance fees or annuities, at the sole cost and expense of the Seller, (ii) when available in respect of the Royalty Product Patents, obtain issued Patent Rights and any corrections, substitutions, reissues and reexaminations thereof and obtain patent term extensions and any other forms of patent term restoration in any country, (iii) not disclaim, allow to lapse, abandon, or terminally disclaim or fail to take any action necessary or desirable to prevent the disclaimer, lapse or abandonment of, any Royalty Product Patent, (iv) diligently defend (and enforce) the Royalty Product Patents against infringement or interference by any other Person, and against any claims of invalidity or unenforceability, in any jurisdiction (including by bringing any legal action for infringement or defending any counterclaim of invalidity or action of any other Person for declaratory judgment of non-infringement or non-interference), and (v) promptly provide to Purchaser (A) any and all information reasonably requested by Purchaser regarding ongoing prosecution, defense and enforcement matters for the Royalty Product Patents, and (B) any information of which Seller becomes aware that could reasonably be expected to have a Material Adverse Effect on the prosecution, maintenance, defense or enforcement of the Royalty Product Patents. To the extent that Seller receives any material correspondence regarding the prosecution, defense or enforcement of the Royalty Product Patents, Seller will provide such correspondence to Purchaser and provide Purchaser a reasonable opportunity to comment thereon. If and to the extent permitted under the Medco License Agreement, such comments will be considered by Seller in good faith.
(b) If the Seller has the right pursuant to Section 11.4 of the Medco License Agreement and applicable Law to institute a suit or other legal proceedings to enforce any of the Royalty Product Patents in respect of Competitive Infringement or to participate in a suit instituted by another, then promptly (and in any event within [***]) following the Seller becoming aware of 
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such right of the Seller, Seller shall provide written notice to Purchaser thereof [***]. In the event that Seller declines to exercise such right, Seller shall promptly give notice of such declination to Purchaser, and Purchaser shall have [***] to discuss Seller's reasons for declining to enforce the applicable Royalty Product Patents [***]. [***]. In no event shall Seller be required to perform any actions or omit to perform any actions that would violate applicable Law or otherwise subject Seller to a risk of sanctions or other penalties. Seller may employ any counsel, so long as such counsel is acceptable to Purchaser (such acceptance not to be unreasonably withheld or delayed).
(c) [***]
(d) To the extent in respect of any Competitive Infringement, the Proceeds of any enforcement of any of the Royalty Product Patents (i) by Seller pursuant to this Section 5.9 and Section 11.4 of the Medco License Agreement or (ii) by Licensee pursuant to Section 11.4 of the Medco License Agreement, in each case of the immediately foregoing clauses (i) and (ii), shall first be used to reimburse each of Seller and Purchaser for the costs and expenses (including attorneys’ fees and expenses) it has actually paid in connection with such enforcement pursuant to Section 5.9(c) above, and the remainder (if any) shall be allocated to Purchaser in a proportion equal to the Applicable Percentage for the Royalty, with the remainder allocated to Seller (where the Applicable Percentage is applied taking into account any variation in such Applicable Percentage over different time periods, if applicable).
Section 5.10 No Assignment [***].  
(a) [***].
(b) Promptly (and in any event within [***]) following receipt by Seller of a written request from the Licensee for consent to assign the Medco License Agreement (in whole or in part), including pursuant to Section 13.1 of the Medco License Agreement, Seller shall provide notice thereof to Purchaser. Seller and Purchaser shall consult with each other regarding whether to grant such consent, and Seller shall not grant or withhold such consent without the prior written Consent of Purchaser.  
Section 5.11 Audits.  
(a) Consultation.  Following the Closing Date, the Seller and the Purchaser shall consult with each other regarding the timing, manner and conduct of any review or audit of the Licensee’s books and records pursuant to Section 7.5.1 of the Medco License Agreement. For the avoidance of doubt, Seller shall not request an examination of the Licensee’s records and books of account without the prior written Consent of Purchaser. 
(b) Audits under Medco License Agreement.  Following consultation in accordance with Section 5.11(a), if requested in writing by the Purchaser, Seller shall to the extent permitted by Section 7.5.1 of the Medco License Agreement, provide written notice to Licensee to cause an inspection or audit to determine the correctness of any Royalty or Milestone payments made under the Medco License Agreement. All of the expenses of any inspection or audit requested by the Purchaser that would otherwise be borne by Seller pursuant to the Medco License Agreement, including such fees and expenses of any public accounting firm engaged by Seller (and 
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reasonably acceptable to Purchaser and Licensee) in connection with such an inspection or audit shall be borne by the Purchaser in an amount equal to the Applicable Percentage then in effect for the Royalty, with Seller bearing the remainder (it being understood that, in accordance with Section 7.5.1 of the Medco License Agreement as in effect on the date hereof, in the event that any such audit reveals an underpayment during the applicable time period of greater than [***] then Licensee shall be responsible for such costs and expenses). Seller will promptly furnish to Purchaser a true, correct and complete copy of any inspection or audit report prepared in connection with such an inspection or audit. If, following the completion of such inspection or audit, Seller is required to reimburse Licensee for overpayment of the Royalty, then Purchaser shall promptly upon request reimburse Seller, or, at Seller’s request, Licensee on behalf of Seller, for the portion of such overpaid amount that was actually paid to the Purchaser, and shall promptly (and in any event within [***]) after making such payment provide documentation satisfactory to Seller evidencing that such payment was made. If, following the completion of such inspection or audit, Licensee is required to pay amounts representing an underpayment of the Royalty during the applicable period of time, the Purchaser shall be paid from such amounts a portion equal to the amount by which the Purchased Royalty Interest was underpaid during the applicable period of time.
Section 5.12 [***].
Section 5.13 Related Agreements.  Except as would not reasonably be expected to have a Material Adverse Effect, Seller shall maintain the Related Agreements in full force and effect and shall not breach, violate or otherwise default under or fail to perform any of its Relevant Obligations under any of the Related Agreements during the term of this Agreement, except where such performance is being contested in good faith by appropriate proceedings (provided that, during the pendency of any such dispute, Seller shall continue to comply with all of its other Relevant Obligations under the Related Agreements in accordance with this Section 5.13).  Except as would not reasonably be expected to have a Material Adverse Effect, Seller shall not, without the prior written Consent of the Purchaser, (a) amend, modify, supplement, restate, waive, cancel or terminate (or consent to any cancellation or termination of), in whole or in part, any provision of or right under the Related Agreements, or (b) assign, in whole or in part, the Related Agreements or any provision thereof or right thereunder. 
Section 5.14 Commercialization.  If Purchaser shall so request (by written notice to Seller), Seller and Purchaser shall consult with each other once per calendar quarter regarding the status of the Licensee’s, its Affiliates and its sublicensees’ compliance with the development, commercialization, marketing and promoting obligations set forth in Sections 2.4 and 3.1 of the Medco License Agreement.
Section 5.15 SEC Filings.  Prior to the submission by Seller to the SEC of any Seller SEC Documents that contain any Confidential Information, or that contain information related to the existence or subject matter of this Agreement or the identity of Purchaser, Seller shall provide drafts of such Seller SEC Documents to Purchaser within a reasonable period of time, but in any event no less than [***] prior to the planned date of such submission, to review any confidential treatment requests related thereto, and Seller shall redact any information therein as requested by Purchaser, unless such information is, in the Seller’s view, required to be included by Law 
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(including any rules and regulations promulgated by the SEC) or stock exchange rule or regulation, and Seller shall consider in good faith any other comments by Purchaser thereto. 
Section 5.16 Licensee Instruction.  Prior to the termination of this Agreement pursuant to Section 9.1, Seller shall not, without Purchaser’s prior written consent (which consent may be withheld or granted in Purchaser’s sole discretion), deliver any further directions to Licensee regarding the payment of the Purchased Assets. 
Section 5.17 Tax Matters.
(a) Tax Treatment. Notwithstanding the accounting treatment therefor and unless otherwise required by Applicable Law, for all U.S. federal and applicable state and local tax purposes, the Seller and the Purchaser shall treat (i) the transactions contemplated by the Transaction Documents as a sale and the Purchaser’s payment of the Purchase Price (pursuant to Section 2.2 of this Agreement) as received by the Seller in a taxable transaction, (ii) Purchaser as the direct recipient of the payments made with respect to the Purchased Assets and (iii) the transactions contemplated under this Agreement as separate and independent from any transactions entered into by the Purchaser and the Seller or their Affiliates other than those contemplated by this Agreement.  If there is an inquiry by any Governmental Authority of the Seller or the Purchaser related to this Section 5.17, the Parties shall cooperate with each other in responding to such inquiry in a commercially reasonable manner consistent with this  Section 5.17.
(b) Amounts Received and Remitted under Section 5.6. Seller and Purchaser agree that for United States federal income tax purposes, (i) any and all amounts in respect of the Purchased Assets remitted by Seller to Purchaser pursuant to Section 5.6(a) or otherwise under this Agreement shall be treated as received by Seller as agent for Purchaser, and (ii) any and all amounts remitted by Seller to Purchaser pursuant to Section 5.6(a) of this Agreement shall be treated as remittances of amounts collected by Seller on behalf of Purchaser. Seller further agrees to use commercially reasonable efforts to disclose such custodian arrangement to its relevant counterparties (including Licensee and the Paying Agent), and where requested, promptly to deliver any U.S. tax forms provided by Purchaser. 
(c) Withholding. 
(i) On or prior to the Closing Date, the Purchaser shall deliver to the Seller a duly completed and valid (A) IRS Form W-9 certifying that the Purchaser is a United States person, as such term is defined in Section 7701(a)(30) of the Code, (B) applicable IRS Form W-8BEN-E claiming treaty benefits under a double taxation treaty with respect to each of “royalties,” “interest” and “other income,” (C) an IRS Form W-8IMY to which the forms set forth in the preceding (A) and (B) are attached, or (D) other applicable Form W-8 that indicates no withholding is required in respect of payments with respect to the Purchased Assets, (in each case ((A) through (D)), the “IRS Withholding Form”), and Purchaser shall provide an updated IRS Withholding Form to the Seller throughout the term of the Transaction Documents whenever required in order for the Seller to have on file a duly completed and valid IRS Withholding Form.
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(ii) All payments to the Purchaser under the Transaction Documents shall be made without any deduction or withholding by the Seller for or on account of any tax, unless required by Applicable Law. If any Applicable Law (as reasonably determined by the Seller) requires the deduction or withholding of any tax by the Seller, then the Seller shall be entitled to make such deduction or withholding in accordance with Applicable Law. Any such withheld amounts shall be treated for all purposes of the Transaction Documents as having been paid to the Purchaser. Seller shall give or cause to be given to Purchaser such assistance as may reasonably be necessary to enable Purchaser to claim exemption from any such withholding, reduction thereof, or credit therefor, and in each case shall furnish Purchaser proper evidence of the taxes paid by Seller on its behalf.
(d) Reporting. The parties hereto agree not to take any position that is inconsistent with the provisions of this Section 5.17 and Section 10.4 on any tax return or in any audit or other judicial or administrative proceeding unless (i) the other party hereto has consented to the taking of such position, or (ii) the party hereto that contemplates taking such an inconsistent position has been advised by a nationally recognized tax counsel in writing that it is unable to conclude that the position specified in this Section 5.17 is more likely than not to prevail if challenged by the tax authority having jurisdiction of the relevant tax.
(e) Cooperation. The parties hereto shall reasonably cooperate in accordance with applicable Law to minimize taxes (including withholding taxes and indirect taxes such as value added tax, sales tax and other similar taxes) in connection with the transactions contemplated by the Transaction Documents, including with respect to any [***], and to comply with invoicing and reporting requirements related thereto. 
(f) Gross-Up Under License. For the avoidance of doubt, in the event that Seller (i) is entitled to a payment by Licensee with respect to the Royalty or Milestones as a result of a gross-up adjustment pursuant to Section 7.9.2 of the Medco License Agreement to the extent that Purchaser would be entitled to a gross-up adjustment attributable to the Applicable Percentage pursuant to Section 7.9.2 of the Medco License Agreement, determined as if Purchaser (or its beneficial owners) were the “Payee” thereunder, as a result of the Purchaser’s (or its beneficial owners’) jurisdiction or otherwise, or (ii) is entitled to payment as a result of or benefits directly from beneficial tax treatment resulting from a [***] that consists of a profit share for Seller with respect to the Royalty Product in all or some portion of the Territory, then Purchaser shall be entitled to a proportion of any such payment or benefit equal to the Applicable Percentage.
Section 5.18 Change in Name or Organization.  Seller shall provide Purchaser with written notice not less than [***] prior to any change in, or amendment or alteration of, Seller’s (a) legal name, (b) form or type of organization, or (c) jurisdiction of organization. 
Section 5.19 Seller’s Commercially Reasonable Efforts and Judgment.  It is understood and agreed that, in determining whether Seller’s efforts or judgments are “commercially reasonable” with respect to any covenant that specifically references such term in this Article V, Seller shall be deemed to be acting or making a judgment in a commercially reasonable manner if Seller would reasonably be expected to act in the same manner if Seller had the sole right, title and interest in and to the Purchased Assets.
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ARTICLE VI
THE CLOSING

Section 6.1 Closing.  The closing of the transactions contemplated hereby (the “Closing”) shall take place on the date hereof (the “Closing Date”) at the offices of Goodwin Procter LLP located at 100 Northern Avenue, Boston, MA 02210, or such other place as the parties hereto mutually agree.
Section 6.2 Payment of Purchase Price.  
(a) Purchase Price. At the Closing, the Purchaser shall deliver to the Seller payment of the First Installment by wire transfer of immediately available funds to the Seller Account, without any deduction for withholding or other taxes (unless otherwise required by applicable Law) [***]. The Purchaser shall deliver the Remainder to the Seller on September 30, 2021 by wire transfer of immediately available funds to the Seller Account, without any deduction for withholding or other taxes (unless otherwise required by applicable Law) and, except as set forth in Section 6.2(b), without any other Set-Off.
(b) [***].
Section 6.3 Closing Deliverables.
(a) At the Closing, each of the Seller and the Purchaser shall deliver to the other party hereto a duly executed counterpart to the Bill of Sale, evidencing the sale and assignment to the Purchaser of the Purchased Assets.
(b) At the Closing, the Seller shall deliver to the Purchaser a certificate of an executive officer of the Seller, dated as of the Closing, certifying as to the (i) attached copies of the organizational documents of the Seller and resolutions of the governing body of the Seller authorizing and approving the execution, delivery and performance by the Seller of the Transaction Documents and the transactions contemplated thereby and (ii) the incumbency of the officer or officers of the Seller who have executed and delivered the Transaction Documents, including therein a signature specimen of each such officer or officers.
(c) At the Closing, the Purchaser shall deliver to the Seller a certificate of an executive officer or other authorized signatory of the Purchaser, dated as of the Closing, certifying as to the (i) attached copies of the organizational documents of the Purchaser and (ii) the incumbency of the officer or officers of the Purchaser who have executed and delivered the Transaction Documents, including therein a signature specimen of each such officer or officers. 
(d) At the Closing, the Purchaser shall deliver to the Seller a duly completed and executed IRS Withholding Form pursuant to Section 5.17(c)(i).
(e) As soon as practicable (but in any event no later than one (1) Business Day after the Closing) Seller shall deliver to Purchaser a duly executed receipt for payment of the First Installment. 
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Section 6.4 Post-Closing Deliverables.  
(a) Between [***] prior to September 30, 2021, Seller shall issue an invoice to Purchaser for the Remainder. As soon as practicable (but in any event no later than one (1) Business Day Seller’s receipt of such payment) after the payment of the Remainder by Purchaser, Seller shall deliver to Purchaser a duly executed receipt for such payment. 
(b) Promptly following the Closing, Purchaser and Seller shall use reasonable best efforts to deliver or cause to be delivered to the other party hereto a duly executed counterpart to the Paying Agent Agreement, with such changes and modifications as may be agreed in good faith between Purchaser, Seller and the Paying Agent.
(c) Promptly following execution of the Paying Agent Agreement, the Seller shall deliver to Licensee a duly executed copy of the Licensee Instruction. Within three (3) Business Days thereafter, the Seller shall deliver to Purchaser evidence reasonably satisfactory to Purchaser confirming the delivery to and receipt by Licensee of the Licensee Instruction.
ARTICLE VII
INDEMNIFICATION

Section 7.1 Indemnification by the Seller.  The Seller agrees to indemnify and hold harmless the Purchaser, its Affiliates and its and their respective partners, directors, officers, managers, members, consultants, contractors, employees, representatives or agents (each, a “Purchaser Indemnified Party”) from and against, and will pay to each Purchaser Indemnified Party the amount of, any and all Losses awarded against or incurred or suffered by such Purchaser Indemnified Party, whether or not involving a Third Party Claim, arising out of (a) any breach of any representation or warranty made by the Seller in any of the Transaction Documents or certificates delivered by the Seller to the Purchaser in writing pursuant to this Agreement, (b) any breach of or default under any covenant or agreement of the Seller in any of the Transaction Documents, (c) any Excluded Assets or Excluded Liabilities and Obligations, and (d) any fees, expenses, costs, liabilities or other amounts incurred or owed by Seller or its Affiliates to any brokers, financial advisors or comparable other Persons retained or employed by it in connection with the transactions contemplated by this Agreement; provided, however, that the foregoing shall exclude any indemnification to any Purchaser Indemnified Party (i) that has the effect of imposing on Seller any recourse liability for the Purchased Assets because of the insolvency or other creditworthiness problems of the Licensee or the insufficiency of the Purchased Assets, whether as a result of the amount of cash flow resulting from sales or licensing of the Royalty Product or otherwise, in each case unless resulting from the breach or default by Seller of or under any of the Transaction Documents, (ii) that results from the gross negligence, willful misconduct or fraud of any Purchaser Indemnified Party, (iii) that results from the failure of Licensee to perform any of its obligations under the Medco License Agreement, unless directly resulting from the breach or default by the Seller of or under the Medco License Agreement or hereunder or (iv) to the extent resulting from acts or omissions of the Seller based upon the written instructions from any Purchaser Indemnified Party. Any amounts due to any Purchaser Indemnified Party hereunder shall be payable by the Seller to such Purchaser Indemnified Party upon demand.
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Section 7.2 Indemnification by the Purchaser.  The Purchaser agrees to indemnify and hold each of the Seller and its Affiliates and any or all of their respective partners, directors, officers, managers, members, employees, representatives or agents (each, a “Seller Indemnified Party”) harmless from and against, and will pay to each Seller Indemnified Party the amount of, any and all Losses awarded against or incurred or suffered by such Seller Indemnified Party, whether or not involving a Third Party Claim, arising out of (a) any breach of any representation or warranty made by the Purchaser in any of the Transaction Documents and (b) any breach of or default under any covenant or agreement of the Purchaser in any Transaction Document to which the Purchaser is party; provided, however, that the foregoing shall exclude any indemnification to any Seller Indemnified Party (i) that results from the gross negligence, willful misconduct or fraud of any Seller Indemnified Party, (ii) that results from the failure of Licensee to perform any of its obligations under the Medco License Agreement or (iii) to the extent resulting from acts or omissions of the Purchaser based upon the written instructions from any Seller Indemnified Party.  Any amounts due to any Seller Indemnified Party hereunder shall be payable by the Purchaser to such Seller Indemnified Party upon demand.
Section 7.3 Materiality.  For purposes of determining the amount of any Losses resulting from any breach by Seller of the representations and warranties contained in Section 3.1, Section 3.2, Section 3.3, Section 3.4, Section 3.9(a)-(h) and (j)–(m) (solely with respect to Core Royalty Product Patents), Section 3.9(i) (solely with respect to inclisiran), Section 3.10(a) (solely with respect to the first sentence thereof and clause (i) of the second sentence thereof), Section 3.10(b)-(j) and (l)-(m) and Section 3.19, or any breach by Purchaser of the representations contained in Section 4.1, Section 4.2, Section 4.3, Section 4.4 and Section 4.7 pursuant to Section 7.1 or Section 7.2, as applicable (but not for determining the existence of any such breach (and therefore, whether any indemnification is owed)), and without limiting Section 7.7 or Section 7.8, all such representations and warranties that are qualified by materiality or by reference to a Material Adverse Effect shall be deemed to be not so qualified, as applicable.
Section 7.4 Procedures for Third Party Claims.  
(a) If any claim or demand made by any Person other than the Purchaser or the Seller against a Purchaser Indemnified Party or a Seller Indemnified Party, as applicable (a “Third Party Claim”) shall be brought or alleged against an indemnified party in respect of which indemnity is to be sought against an indemnifying party pursuant to Section 7.1 or Section 7.2, the indemnified party shall, promptly after receipt of notice of the commencement of such Third Party Claim, notify the indemnifying party in writing of the commencement thereof, enclosing a copy of all papers served, if any; provided, that the failure to so notify such indemnifying party will not relieve the indemnifying party from any liability that it may have to any indemnified party under Section 7.1 or Section 7.2 unless, and only to the extent that, the indemnifying party is actually materially prejudiced by such failure.  
(b) In the event that any Third Party Claim is brought against an indemnified party and it notifies the indemnifying party of the commencement thereof in accordance with this Section 7.4, the indemnifying party will be entitled, at the indemnifying party’s sole cost and expense, to participate therein and, to the extent that it may wish, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and, after notice from the 
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indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be liable to such indemnified party under this Article VII for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the foregoing, the indemnifying party may not assume the defense to a Third Party Claim (i) involving criminal liability of any indemnified party or in which equitable relief other than monetary damages is sought against any indemnified party, (ii) involving a purported class action or (iii) if the Third Party Claim relates to taxes. 
(c) In any such Third Party Claim, an indemnified party shall have the right to retain its own counsel, but the reasonable fees and expenses of such counsel shall be at the sole cost and expense of such indemnified party unless (a) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel, (b) the indemnifying party has assumed the defense of such proceeding and has failed within a reasonable time to retain counsel reasonably satisfactory to such indemnified party or (c) the named parties to any such Third Party Claim (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential conflicts of interests between them based on the advice of counsel to the indemnifying party.    
(d) The indemnifying party shall not be liable for any settlement of any Third Party Claim effected without its written consent, but, if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any Loss by reason of such settlement or judgment.  No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement, compromise or discharge of any pending or threatened Third Party Claim in respect of which any indemnified party is or could have been a party and indemnity could be sought hereunder by such indemnified party, unless such settlement, compromise or discharge, as the case may be, (i) includes an unconditional written release of such indemnified party, in form and substance reasonably satisfactory to the indemnified party, from all liability on claims that are the subject matter of such claim or proceeding, (ii) does not include any statement as to an admission of fault, culpability or failure to act by or on behalf of any indemnified party, (iii) does not impose any continuing material obligation or restrictions on any indemnified party, and (iv) does not involve any injunctive relief binding on the indemnified party or its Affiliates.
Section 7.5 Other Claims.  A claim by an indemnified party under this Article VII for any matter not involving a Third Party Claim and in respect of which such indemnified party would be entitled to indemnification hereunder may be made by delivering, in good faith, a written notice of demand to the indemnifying party, which notice shall contain (a) a description and the amount of any Losses incurred or suffered or a reasonable estimate of Losses reasonably expected to be incurred or suffered by the indemnified party, (b) a statement that the indemnified party is entitled to indemnification under this Article VII for such Losses and a reasonable explanation of the basis therefor, and (c) a demand for payment in the amount of such Losses or a reasonable estimate of such Losses.  For all purposes of this Section 7.5, the Seller shall be entitled to deliver such notice of demand to the Purchaser on behalf of the Seller Indemnified Parties, and the Purchaser shall be 
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entitled to deliver such notice of demand to the Seller on behalf of the Purchaser Indemnified Parties.
Section 7.6 Time Limitations.
(a) The Seller shall have liability under Section 7.1 with respect to any breach of any representation or warranty made by the Seller in Article III of this Agreement only if, on or prior to the date that is [***] after the Closing, the Purchaser notifies the Seller of a claim in respect of such breach, specifying the factual basis of such claim in reasonable detail [***] or any breach of a representation or warranty resulting from fraud or willful misconduct on the part of Seller, as to which a claim may be made at any time until the date that is [***] after the termination of this Agreement.
(b) The Purchaser shall have liability under Section 7.2 with respect to any breach of any representation or warranty made by the Purchaser in Article IV of this Agreement only if, on or prior to the date that is [***] after the Closing Date, the Seller notifies the Purchaser of a claim in respect of such breach, specifying the factual basis of such claim in reasonable detail [***] or any breach of a representation or warrant resulting from fraud or willful misconduct on the part of Purchaser, as to which a claim may be made at any time until the date that is [***] after the termination of this Agreement. 
Section 7.7 Limitations on Liability. No party hereto shall be liable for any consequential (including lost profits), punitive, special, indirect or incidental damages under this Article VII (and no claim for indemnification hereunder shall be asserted) as a result of any breach or violation of any covenant or agreement of such party (including under this Article VII) in or pursuant to this Agreement, except to the extent a court of competent jurisdiction awards such damages to a third party in connection with a Third Party Claim. Other than with respect to any fraud, willful misconduct, or intentional misrepresentation, in no event shall Seller’s aggregate liability for Losses under Section 7.1(a) or Purchaser’s aggregate liability for Losses under Section 7.2 (a) exceed the Purchase Price less (i) the Purchased Assets payments actually received by the Purchaser (and not required to be returned or reimbursed to Licensee or Seller, other than pursuant to any indemnification obligation of the Purchaser hereunder) as of the date any claim for Losses is made, and (ii) the amount of any Set-Off taken by the Purchaser (and not required to be returned or reimbursed to Seller) previously pursuant to Section 6.2(b) in respect of a breach of a representation or warranty set forth in Article III (but not a breach of a covenant set forth in Article V) underlying such Loss, and (b) Seller shall not have any liability for Losses under Section 7.1 and the Purchaser shall not have any liability for Losses under Section 7.2 unless and until the aggregate amount of all Losses incurred by the indemnified party equals or exceeds [***], in which event the indemnifying party shall be liable for Losses including such amount.
Section 7.8 Exclusive Remedy.  Except in the case of fraud or intentional breach and except as set forth in Section 6.2(b) and Section 9.2 (pursuant to which each of Purchaser and Seller accordingly preserves all remedies available with respect to any such claim or matter based thereon under applicable Law), the indemnification afforded by this Article VII shall be the sole and exclusive remedy for any and all Losses awarded against or incurred or suffered by a Party in connection with the transactions contemplated by the Transaction Documents, including with respect to any breach of any representation or warranty made by a Party in any of the Transaction 
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Documents or any certificate delivered by a Party to the other Party in writing pursuant to this Agreement or any breach of or default under any covenant or agreement by a Party pursuant to any Transaction Document. Notwithstanding the foregoing, nothing in this Article VII nor any provision of this Agreement shall operate to limit the rights of a Party to seek equitable remedies (including specific performance or injunctive relief) or, in the case of fraud or intentional breach committed by or on behalf of the other Party, any remedies available to it under applicable Law.
ARTICLE VIII
CONFIDENTIALITY

Section 8.1 Confidentiality.  Except as provided in this Article VIII or otherwise agreed in writing by the parties, the parties hereto agree that, during the term of this Agreement and until the [***] anniversary of the date of termination of this Agreement, each party (the “Receiving Party”) shall keep confidential, and shall not publish or otherwise disclose to any Person (other than its Affiliates, its and its Affiliates’ Representatives, and any actual or potential assignees, financing sources or investors (including, in the case of the Seller, any party evaluating the acquisition of any portion of the Royalty that is not included in the Purchased Assets) and their respective Representatives, in each case who have agreed to be bound by the provisions of this Section 8.1 or are otherwise subject to restrictions of confidentiality substantially as restrictive as those contained in this Section 8.1) and shall not use or disclose for any purpose other than as provided for in the Transaction Documents (which includes the exercise of any rights or the performance of any obligations hereunder), any information (whether written or oral, or in electronic or other form) furnished to it by or on behalf of the other party (the “Disclosing Party”) pursuant to the Existing Confidentiality Agreement (as defined below) or this Agreement (such information, “Confidential Information” of the Disclosing Party), except for that portion of such information that:
(a) was already in the Receiving Party’s possession on a non-confidential basis prior to its disclosure to it by the Disclosing Party, as evidenced by written records (provided, if such information was disclosed to the Receiving Party on a non-confidential basis by a party that is not the Disclosing Party, such party had the right to disclose such information to the Receiving Party without any legal, contractual or fiduciary obligation to, any person with respect to such information);
(b) is or becomes generally available to the public other than as a result of an act or omission by the Receiving Party or its Affiliates in breach of this Agreement; 
(c) was independently developed by the Receiving Party, as evidenced by written records, without use of or reference to the Confidential Information or in violation of the terms of this Agreement.  
Section 8.2 Disclosures to Certain Affiliates.  Notwithstanding anything to the contrary provided elsewhere herein, none of Purchaser’s Affiliates (including portfolio companies) or its Affiliates’ Representatives, or any actual or potential assignees, partners (including limited partners), financing sources or investors (and their Representatives), including, for the avoidance of doubt, The Blackstone Group Inc., shall have any obligations with respect to Confidential Information provided to Purchaser pursuant to this Agreement to the extent that such Confidential Information is not made available to such Affiliates (including portfolio companies), Affiliates’ 
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Representatives, or any actual or potential assignees, partners (including limited partners), financing sources or investors (and their Representatives). In addition, the Confidential Information may be disclosed to any of the Persons listed in the foregoing sentence solely for the purpose of assessing or resolving conflicts or determining the proper allocation of investment opportunities, only if such individual shall agree to be bound by the confidentiality and use provisions of this Article VIII, and if such disclosure is made, Purchaser shall indemnify the Seller in accordance with Article VII for any breach by such individual of such confidentiality and use provisions; provided, however, that receipt of Confidential Information by such individual shall not be imputed to the individual’s broader business unit (e.g., the broader Affiliate entity).  
Section 8.3 Termination of Confidentiality Agreement.  Effective upon the date hereof, the Confidentiality Agreement, dated November 14, 2019 (the “Existing Confidentiality Agreement”), between Seller and Purchaser shall terminate and be of no further force or effect, and shall be superseded by the provisions of this Article VIII.
Section 8.4 Permitted Disclosure.  In the event that a Receiving Party or its Affiliates or any of its or its Affiliates’ Representatives are requested by a governmental or regulatory authority or required by applicable Law, regulation or legal process (including the regulations of a stock exchange or governmental or regulatory authority or the order or ruling of a court, administrative agency or other government or regulatory body of competent jurisdiction) to disclose any Confidential Information, the Disclosing Party shall promptly, to the extent permitted by Law, notify the Disclosing Party in writing of such request or requirement so that the Disclosing Party may seek an appropriate protective order or other appropriate remedy (and if the Disclosing Party seeks such an order or other remedy, the Receiving Party will provide such cooperation, at the Disclosing Party’s sole expense, as the Seller shall reasonably request).  If no such protective order or other remedy is obtained and Receiving Party or its Affiliates or its or its Affiliates’ Representatives are, in the view of their respective counsel (which may include their respective internal counsel), legally required to disclose Confidential Information, the Receiving Party or its Affiliates or its or its Affiliates’ Representatives, as the case may be, shall only disclose that portion of the Confidential Information that their respective counsel advises that the Purchaser or its Affiliates or its or its Affiliates’ Representatives, as the case may be, are required to disclose and will exercise commercially reasonable efforts, at the Disclosing Party’s sole expense, to obtain reliable assurance that confidential treatment will be accorded to that portion of the Confidential Information that is being disclosed.  In any event, the Receiving Party will not oppose action by the Disclosing Party to obtain an appropriate protective order or other reliable assurance that confidential treatment will be accorded the Confidential Information.  Notwithstanding the foregoing, notice to the Disclosing Party shall not be required where disclosure is made (i) in response to a request by a governmental or regulatory authority having competent jurisdiction over the Receiving Party, its Affiliates or its or its Affiliates’ Representatives, as the case may be, or (ii) in connection with a routine examination by a regulatory examiner, where in each case such request or examination does not expressly reference the Disclosing Party, its Affiliates, the Royalty, the Milestones, the Purchased Assets or this Agreement. Further, notwithstanding anything contained in this Article VIII to the contrary, the Seller may disclose Confidential Information to the extent such disclosure is reasonably necessary to comply with the Securities Act of 1933, as amended, with the Securities Exchange Act of 1934, as amended, or with any rule, regulation or legal process 
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promulgated by the SEC or a stock exchange, subject to Seller’s obligations set forth in Section 5.15.
Section 8.5 Financial Statements.  Notwithstanding anything herein to the contrary, nothing in this Article VIII shall be construed to restrict either party hereto from (a) providing copies of Royalty Reports to its independent accountants, provided such independent accountants have agreed to be bound by the provisions of Section 8.1 or are bound by restrictions of confidentiality no less restrictive by those contained in Section 8.1, or including disclosure of the Purchase Price and the amount and nature of the Purchased Assets in the footnotes to such party’s audited annual financial statements, in each case to the extent so required by GAAP, or including comparable disclosure in such party’s unaudited quarterly financial statements, (b) providing copies of such audited annual and unaudited quarterly financial statements to such party’s existing or prospective lenders or direct or indirect beneficial owners, as long as such lenders or beneficial owners have agreed to be bound by the provisions of this Article VIII or are otherwise subject to reasonable restrictions of confidentiality, and (c) disclosing Confidential Information in connection with any assignment permitted under Section 10.3, and in accordance with the requirements of this Article VIII.
Section 8.6 Specific Enforcement.  Each party hereto acknowledges and agrees that remedies at law may not be adequate to protect the Seller or the Purchaser against any actual or threatened breach of this Article VIII by the Purchaser or the Seller, either of its Affiliates or its or their Affiliates’ Representatives, and that the Seller and the Purchaser (as applicable) shall be entitled to seek specific performance and temporary and permanent injunctive relief or other equitable relief as a remedy for any such actual or threatened breach.  Such remedy shall not be deemed to be the exclusive remedy for breach of this Section 8.6 but shall be in addition to all other rights and remedies available at law or equity to the Seller or the Purchaser (as applicable).
Section 8.7 Other Relevant Obligations.  In addition to, and without limiting, Purchaser’s obligations under this Article VIII, Purchaser shall fully comply with any Relevant Obligations that are applicable to the Confidential Information.
Section 8.8 Use of Name.  Except as required by Law (including any rule, regulation or legal process promulgated by the SEC or a stock exchange) in the disclosing Party’s good faith view, neither party shall use the name, trademark, service mark, trade name, or symbol or any adaptation thereof of the other party, including, with respect to Purchaser, any reference to “Blackstone” or “The Blackstone Group”, or of any of its Representatives, Affiliates, partners, managers, directors, board members, members, officers, funds, employees or agents for advertising, marketing, endorsement, promotional or sales literature, publicity, public announcement or disclosure in any document employed to obtain funds or financing without the specific prior written consent of an authorized representative of the other party or individual whose name is to be used as to each such use (which consent may be granted or withheld in such party’s sole discretion). Notwithstanding the foregoing, Purchaser may use the name, logos, and other insignia of Seller in any “tombstone” or other advertisements, in its publications, marketing or promotional materials to existing and prospective investors and otherwise on the website or in other marketing materials of Purchaser, as applicable, without the Seller’s prior approval.
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ARTICLE IX
TERMINATION

Section 9.1 Termination of Agreement.  This Agreement shall continue in full force and effect until the date on which Purchaser has received the last payment with respect to the Purchased Assets, at which time this Agreement shall automatically terminate.  
Section 9.2 Effect of Termination.  Upon the termination of this Agreement pursuant to Section 9.1, this Agreement shall become void and of no further force and effect, except for any rights, obligations or claims of either Party that have accrued prior to termination; provided, however, that (a) the provisions of Section 5.1, Section 5.6, Section 5.11 (only until the date that is three (3) months after the termination date), Article I, Article VII (but only if a claim under Article VII is pending on or is brought within [***] of the termination date, and only until the final resolution of such claim and the full satisfaction of all liabilities and obligations hereunder related to such claim), Article VIII, this Article IX and Article X shall survive such termination and shall remain in full force and effect and (b) nothing contained in this Section 9.2 shall relieve either party from liability for any breach of this Agreement that occurs prior to termination. 
ARTICLE X
MISCELLANEOUS

Section 10.1 Specific Performance.  Each of the parties hereto acknowledges that the other party hereto will have no adequate remedy at law if it fails to perform any of its obligations under any of the Transaction Documents.  In such event, each of the parties hereto agrees that the other party hereto shall have the right, in addition to any other rights it may have (whether at law or in equity), to specific performance of this Agreement.
Section 10.2 Notices.  All notices, consents, waivers and other communications hereunder shall be in writing and shall be effective (a) upon receipt when sent through the mails, registered or certified mail, return receipt requested, postage prepaid, with such receipt to be effective the date of delivery indicated on the return receipt, (b) upon receipt when sent by an overnight courier, (c) on the date personally delivered to an authorized officer of the party to which sent or (d) on the date transmitted by facsimile or other electronic transmission with a confirmation of receipt, in all cases, with a copy emailed to the recipient at the applicable address, addressed to the recipient as follows:
if to the Seller, to:
Alnylam Pharmaceuticals, Inc.
675 West Kendall Street, Henri A. Termeer Square
Cambridge, MA  02142
Attention:  Jeff Poulton
[***]

with a copy, which shall not constitute notice, to:

Alnylam Pharmaceuticals, Inc.
38

675 West Kendall Street, Henri A. Termeer Square
Cambridge, MA  02142
Attention:  Laurie Keating
[***]

and to:

Goodwin Procter LLP
100 Northern Avenue
Boston, MA  02210
Attention:  Kingsley L. Taft
[***] 

if to the Purchaser, to:

BX Bodyguard Royalties L.P.
c/o Blackstone Life Sciences 
101 Main Street
Suite 1210
Cambridge, MA  02142
Attention:  Craig Shepherd  
[***]

With a copy, which shall not constitute notice, to: 

Blackstone Life Sciences
101 Main Street
Suite 1210
Cambridge, MA  02142
Attention:  Julie Constable 
[***]

and to:

Ropes & Gray LLP
800 Boylston Street
Prudential Tower
Boston, MA  02199
Attention:  Melissa Rones
[***]

Each party hereto may, by notice given in accordance herewith to the other party hereto, designate any further or different address to which subsequent notices, consents, waivers and other communications shall be sent.
39

Section 10.3 Successors and Assigns.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  The Seller shall not be entitled to assign, delegate or otherwise transfer this Agreement or any of its interests, obligations or rights hereunder without the prior written consent of the Purchaser, and any such purported assignment, delegation or transfer without such consent shall be void ab initio and of no effect (provided that Seller may assign this Agreement without the consent of the Purchaser to an Affiliate (provided that such assignment to an Affiliate shall be at no incremental cost, including Taxes, to Purchaser) or to any third party that acquires all or substantially all of Seller’s business, whether by merger, sale of assets or otherwise, as long as such assignee agrees in a writing to be bound by all the provisions of this Agreement as if such assignee were the “Seller” under this Agreement). Seller shall give notice to Purchaser of any assignment for which consent was not required by Purchaser promptly after the occurrence thereof, and Seller shall remain liable to Purchaser for its obligations to Purchaser hereunder (and Purchaser shall be entitled to seek recovery for any breach or default of an obligation hereunder from Seller or from such Affiliate assignee). Prior to payment of the amounts set forth in Section 6.2(a) [***], the Purchaser shall not be entitled to assign, delegate or otherwise transfer this Agreement or any of its obligations or rights hereunder without the prior written consent of the Seller, and any such purported assignment, delegation or transfer without such consent shall be void ab initio and of no effect; provided, however, that Purchaser may assign this Agreement without the consent of Seller if (i) the Purchaser notifies the Seller at least [***] prior to any such assignment, (ii) any such assignee, as a condition precedent to such assignment, agrees (A) in writing with the Seller to be bound by the obligations of the Purchaser contained in this Agreement, and (B) in writing with the parties thereto to be bound by the obligations of the Purchaser contained in the document set forth on Schedule 10.3, (iii) any such assignee complies with Section 5.17(c) (replacing “Purchaser” wherever it appears with such assignee and replacing “Closing Date” with the date that such assignee acquires an interest in the Purchaser’s rights hereunder), (iv) notwithstanding any such assignment, the Purchaser shall remain liable to the Seller for its obligations to the Seller hereunder (and Seller shall be entitled to seek recovery for any breach or default of an obligation hereunder from the Purchaser or from such assignee) and (v) in any event such assignment shall be of the Agreement in its entirety; provided further, however, that at all times during the term of this Agreement, Purchaser may assign any of its rights to receive the Purchased Assets hereunder, in whole or in part, without restriction and without consent of the Seller provided, in each case, that the Purchaser remains liable to the Seller for its obligations hereunder. Following payment of the amounts set forth in Section 6.2(a) (after giving effect to Section 6.2(b)), Purchaser may assign, delegate or otherwise transfer (in whole or in part) any or all of its obligations and rights hereunder, in whole or in part, without restriction and without the consent of the Seller (but subject to compliance with clauses (i), (ii)(A) and (iii) above (without giving effect to the words “with the Seller” in clause (ii)(A), and provided that clause (ii)(A) shall not apply to any such assignment that is solely of a right). 
Section 10.4 Independent Nature of Relationship.  The relationship between the Seller and the Purchaser is solely that of seller and purchaser, and neither the Seller nor the Purchaser has any fiduciary or other special relationship with the other party hereto or any of its Affiliates.  Nothing contained herein or in any other Transaction Document shall be deemed (including for tax purposes) to constitute the Seller and the Purchaser as a partnership, an association, a joint venture or any other kind of entity or legal form.
40

Section 10.5 No Personal Liability.  It is expressly understood and agreed by Seller and Purchaser that: 
(a) each of the representations, warranties, covenants and agreements in the Transaction Documents made on the part of Seller is made by Seller and is not intended to be nor is a personal representation, warranty, covenant or agreement of any other Person, including those Persons named in the definition of “Knowledge of Seller” and any other Representative of Seller or Seller’s Affiliates (the “Non-Warranting Parties”);
(b) other than Seller, no Person, including the Non-Warranting Parties, shall have any liability whatsoever for breach of any representation, warranty, covenant or agreement made in the Transaction Documents on the part of Seller or in respect of any claim or matter arising out of, relating to or in connection with the Transaction Documents or the transactions contemplated thereby;
(c) the provisions of this Section 10.5 are intended to benefit each and every one of the Non-Warranting Parties and shall be enforceable by each and every one of them to the fullest extent permitted by Law; and
(d) the provisions of clauses (a) – (c) of this Section 10.5 shall apply to Purchaser, mutatis mutandis. 
Section 10.6 Entire Agreement.  This Agreement, together with the Exhibits and Schedules hereto, the other Transaction Documents and the Confidentiality Agreement constitute a complete and exclusive statement of the terms of agreement between the parties, and supersede all prior agreements, understandings and negotiations, both written and oral, between the parties, with respect to the subject matter of this Agreement.  No representation, inducement, promise, understanding, condition or warranty not set forth herein (or in the Exhibits or Schedules hereto or the other Transaction Documents) has been made or relied upon by either party.
Section 10.7 Governing Law. 
(a) THIS PURCHASE AND SALE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF RELATING TO CONFLICTS OF LAW OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
(b) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the non-exclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of, relating to or in connection with this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York 
41

State court or, to the extent permitted by applicable Law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable Law.
(c) Each of the parties hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in Section 10.7(b).  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
(d) Each of the parties hereto irrevocably consents to service of process in the manner provided for notices in Section 10.2.  Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable Law.  Each of the parties hereto waives personal service of any summons, complaint or other process, which may be made by any other means permitted by New York law.
Section 10.8 Waiver of Jury Trial.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS PURCHASE AND SALE AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY HERETO WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THIS PURCHASE AND SALE AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS Section 10.8. 
Section 10.9 Severability.  If one or more provisions of this Agreement are held to be invalid, illegal or unenforceable by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, which shall remain in full force and effect, and the parties hereto shall replace such invalid, illegal or unenforceable provision with a new provision permitted by applicable Law and having an economic effect as close as possible to the invalid, illegal or unenforceable provision.  Any provision of this Agreement held invalid, illegal or unenforceable only in part or degree by a court of competent jurisdiction shall remain in full force and effect to the extent not held invalid, illegal or unenforceable.
Section 10.10 Counterparts.  This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by the other party hereto.  Any counterpart may be executed by facsimile or other electronic transmission, and such facsimile or other electronic transmission shall be deemed an original.
42

Section 10.11 Amendments; No Waivers.  Neither this Agreement nor any term or provision hereof may be amended, supplemented, restated, waived, changed or modified except with the written consent of the parties hereto.  No failure or delay by either party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  No notice to or demand on either party hereto in any case shall entitle it to any notice or demand in similar or other circumstances.  No waiver or approval hereunder shall, except as may otherwise be stated in such waiver or approval, be applicable to subsequent transactions.  No waiver or approval hereunder shall require any similar or dissimilar waiver or approval thereafter to be granted hereunder.  The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by applicable Law.
Section 10.12 Cumulative Remedies.  The remedies herein provided are cumulative and not exclusive of any remedies provided by applicable Law.  Without limiting the foregoing, the Seller hereby authorizes the Purchaser, at any time and from time to time, to the fullest extent permitted by applicable Law, to offset any amounts payable by the Purchaser to, or for the account of, the Seller against any obligations of the Seller to the Purchaser arising in connection with the Transaction Documents (including amounts payable pursuant to Article VII) that are then due and payable. 
Section 10.13 Table of Contents and Headings.  The Table of Contents and headings of the Articles and Sections of this Agreement have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms or provisions hereof.

{SIGNATURE PAGE FOLLOWS}

43

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above.
BX BODYGUARD ROYALTIES L.P.

By: Blackstone Life Sciences Advisors L.L.C. on
behalf of BX Bodyguard Royalties L.P.

By: /s/ Robert Liptak 
Name: Robert Liptak
Title: Authorized Person

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above.
ALNYLAM PHARMACEUTICALS, INC.

By: /s/ John M. Maraganore 
Name: John M. Maraganore, Ph.D.
Title: Chief Executive Officer

EXHIBIT A
FORM OF BILL OF SALE

EXHIBIT B
FORM OF LICENSEE INSTRUCTION

EXHIBIT C
PAYING AGENT AGREEMENT

EXHIBIT D
PURCHASER ACCOUNT

[***]

EXHIBIT E

SELLER ACCOUNT

[***]

EXHIBIT F
DISCLOSURE SCHEDULE

EXHIBIT G
ROYALTY PRODUCT PATENTS

EXHIBIT H
MEDCO LICENSE AGREEMENT

EXHIBIT I
PRESS RELEASE

SCHEDULE 1.1
[***]

SCHEDULE 2.5(a)
True-Up Mechanism 

[***]

SCHEDULE 3.10(A)

[***]

SCHEDULE 10.3
ASSIGNMENT
[***]

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