Document:

exv10w1

Exhibit 10.1

February 28, 2011

Patricia Allen

7 Ashford Lane

Andover, MA 01810

Dear Patty:

     This letter is to summarize the terms of the separation package that Alnylam Pharmaceuticals,
Inc. (“the Company”) is willing to offer you as a result of your resignation of employment.
Please read this letter agreement, which includes a general release, carefully. If you are willing
to agree to its terms, please sign in the space provided below and return it to me so that your
separation benefits can begin.

     1. Regardless of whether you choose to sign this letter agreement, your employment with the
Company terminates on March 21, 2011 (“the Separation Date”), provided that you satisfactorily
perform your job duties and otherwise comply with Company rules, policies and procedures through
that date. You will be paid for time worked through the Separation Date, less lawful deductions.
You have no accrued vacation time to be paid out upon separation.

     2. After the Separation Date, except as provided below, you will not be entitled to receive
any benefits paid by, or participate in any benefit programs offered by the Company to its
employees. Your coverage under the Company’s health plan will continue through March 31, 2011.
You will receive, under separate cover, information concerning your right to continue your health
insurance benefits after that date in accordance with COBRA.

     3. In consideration for signing this letter agreement and general release and in compliance
with the promises made herein, and in the event you sign this agreement and return it to me within
time period set forth in the agreement and do not revoke your acceptance pursuant to paragraph 9
below, the Company agrees as follows:

	 	a.	 	The Company will pay you twelve (12) months of severance pay (in
the form of salary continuation) at your current base rate of pay of $10,433.21
semi-monthly, less lawful deductions. Payments will made on a semi-monthly
basis commencing with the first payroll cycle after the expiration of the
revocation period set forth in paragraph 9; and
	 
	 	b.	 	The Company will pay 100% of the cost of your COBRA premiums
until the earlier of (i) March 31, 2012 or (ii) the date you become eligible for
coverage under the group health plan of another employer; provided that you
properly elect to continue such coverage under COBRA. Thereafter, you will be
responsible for

300 Third Street • Cambridge MA, 02142 • main 617.551.8200 • fax 617.551.8101 •

www.alnylam.com

 

 

	 	 	 	the full cost of COBRA coverage. You agree to promptly notify the Company if you
become eligible for coverage under the group health plan of another employer
prior to March 31, 2012. You acknowledge that all amounts that the Company pays
on your behalf for COBRA premium payments will be reported as income to you and
taxed accordingly.
	 
	 	c.	 	The Company will offer you the opportunity to provide consulting
services to the Company as a part-time employee for a period of up to twelve
(12) months following the Separation Date (“the Consulting Term”), subject to
your execution of the Consulting Agreement attached hereto as Exhibit A. The
number of consulting hours during the Consulting Term will be determined by the
Company in its sole discretion, provided however that you will be offered at
least one hour of consulting per month during the Consulting term at the rate of
$300.00 per hour.
	 
	 	d.	 	The Company will allow you to continue vesting during the
Consulting Term in any currently unvested stock options previously awarded to
you, as if you remained actively employed during the Consulting Term, provided
that you do not breach any obligations to the Company (including, without
limitation, obligations to the Company under this letter agreement, the
Consulting Agreement or the Employee Nondisclosure, Noncompetition and
Assignment of Intellectual Property Agreement.) You will not be eligible for
any additional stock awards after the Separation Date.

     4. You understand and agree that you would not receive the monies and/or benefits specified in
Paragraph No. 3 above, except for your execution of this letter agreement and general release and
the fulfillment of the promises contained therein.

     5. In consideration of the payments to be made by the Company to you as set forth in Paragraph
No. 3 above and the promises contained in this letter agreement and general release, you
voluntarily and of your own freewill release, forever discharge and hold harmless Alnylam
Pharmaceuticals, Inc., its subsidiaries, divisions and affiliates, its present or former officers,
directors, trustees, employees, agents or successors or assigns from any and all claims, demands,
rules or regulations, or any other causes of action of whatever nature, whether known or unknown,
including, but not limited to, The National Labor Relations Act, as amended; Title VII of the Civil
Rights Act of 1964, as amended; Sections 1981 through 1988 of Title 42 of the United States Code,
as amended; the Age Discrimination in Employment Act of 1967, as amended; the Older Workers Benefit
Protection Act; the Immigration Reform Control Act, as amended; the Employee Retirement Income
Security Act of 1974, 29 U.S.C. § 1001, et seq.; the Occupational Safety and Health
Act, as amended; the Civil Rights Act of 1866, 29 U.S.C. § 1981, et seq; the
Rehabilitation Act of 1973, 29 U.S.C. § 701, et seq.; the Americans With
Disabilities Act of 1990, as amended; the Civil Rights Act of 1991; the Family and Medical Leave
Act; the Equal Pay Act; the Massachusetts Law Against Discrimination, G.L. c. 151B; the
Massachusetts Wage and Hour Laws, G.L. c. 151; the Massachusetts Privacy Statute, G.L. c. 214, §
1B; the Massachusetts Wage Payment Statute, G.L. c. 149, § 148 et seq.; the
Massachusetts Sexual Harassment Statute, G.L. c. 214 § 1C; the

 

 

Massachusetts Civil Rights Act, G.L. c. 12, § 11H, the Massachusetts Equal Rights Act, G.L. c.
93, § 102; or any other federal or state law, regulation, or ordinance; any public policy,
contract, tort, or common law; or any allegation for costs, fees, or other expenses including
attorneys’ fees incurred in these matters. You agree that neither this letter agreement and
general release, nor the furnishing of consideration for this letter agreement and general release,
shall be deemed or construed at anytime for any purpose as an admission by the Company of any
liability or unlawful conduct of any kind. In addition, if any claim is not subject to release, to
the extent permitted by law, you waive any right or ability to be a class or collective action
representative or to otherwise participate in any putative or certified class, collective or
multi-party action or proceeding based on such a claim in which the Company or any other releasee
identified in this agreement is a party.

     6. You agree not to make or publish any written or oral disparaging or defamatory statements
regarding the Company, and its current and former employees, officers, directors and agents.
Violation of this paragraph shall be deemed a material breach of this agreement.

     7. You hereby acknowledge and reaffirm the validity of the Employee Nondisclosure,
Noncompetition and Assignment of Intellectual Property Agreement between you and the Company, the
terms and conditions of which are incorporated herein by reference and remain in full force and
effect for the full term stated therein. You understand that the Company would not provide you
with the benefits under this letter agreement but for your reaffirmation of these obligations.

     8. You will be afforded up to twenty-one (21) days to consider the meaning and effect of this
letter agreement and general release. You are advised to consult with an attorney and you
acknowledge that you have had the opportunity to do so. You agree that any modifications, material
or otherwise, do not restart or affect in any manner the original 21-day consideration period for
the separation proposal made to you.

     9. You may revoke this letter agreement and general release for a period of seven (7) days
following the day you execute this letter agreement and general release. Any revocation within
this period must be submitted, in writing, to Eric Raichle, Vice President of Human Resources and
state, “I hereby revoke my acceptance of the letter agreement and general release.” The revocation
must be personally delivered to Eric Raichle, Vice President of Human Resources, Alnylam
Pharmaceuticals, Inc., 300 Third Street, Cambridge, MA 02142, or postmarked within seven (7) days
of execution of this letter agreement and general release. This letter agreement and general
release shall not become effective or enforceable until the revocation period has expired. If the
last day of the revocation period is a Saturday, Sunday, or legal holiday in Massachusetts, then
the revocation period shall not expire until the next following day which is not a Saturday,
Sunday, or legal holiday.

     10. This letter agreement and general release, which will be construed under Massachusetts
law, may not be modified, altered, or changed except upon express written consent of both parties
wherein specific reference is made to this letter agreement and general release.

     11. Nothing herein limits your right, where applicable, to file or participate in an
investigative proceeding of any federal, state or local governmental agency, provided however, that
by signing this Agreement, you waive the right to seek or receive any money damages based upon

 

 

any claim that might be asserted arising out of your employment at the Company. You further
affirm that you have been paid and have received all leave (paid or unpaid), compensation, wages,
bonuses, commissions, and/or benefits to which you may be entitled and that no other leave (paid or
unpaid), compensation, wages, bonuses, commissions and/or benefits are due to you, except as
provided in this letter agreement. You furthermore affirm that you have no known workplace
injuries or occupational diseases and have been provided and/or have not been denied any leave
requested under the Family and Medical Leave Act. You also affirm that you have not been
retaliated against for reporting any allegations of wrongdoing by the Company or its officers,
including any allegations of corporate fraud. In addition, you affirm that all decisions regarding
your pay and benefits through the date of your execution of this letter agreement were not
discriminatory based on age, disability, race, color, sex, religion, national origin or any other
classification protected by law.

     12. This letter agreement, which includes a general release, represents the complete agreement
between you and the Company, and fully supersedes any prior agreements or understandings between
the parties, other than your Employee Nondisclosure, Noncompetition and Assignment of Intellectual
Property Agreement referred to in paragraph 7. You acknowledge that you have not relied on any
representations, promises, or agreements of any kind made to you in connection with your decision
to sign this letter agreement and general release, except those set forth herein.

     The Company would like to extend its appreciation to you for your past service, and its
sincere hope for success in your future endeavors.

Very truly yours,

/s/ Eric Raichle

Eric Raichle

Vice President, Human Resources

You have been advised in writing that you have up to twenty-one (21) days to consider this
agreement and general release and to consult with an attorney prior to the execution of this letter
agreement and general release.

Having elected to execute this letter agreement and general release, to fulfill the promises
set forth herein, and to receive thereby the sums and benefits set forth in Paragraph No. 3 above,
you freely and knowingly, and after due consideration, enter into this letter agreement and general
release intending to waive, settle, and release all claims you have or might have against the
Company.

	 	 	 	 	 	 	 

	3/21/11

	 	 	 	/s/ Patricia Allen
	 	 
	 

	 	 	 	 	 	 
	Date

	 	 	 	Patricia Allen	 	 

 

 

Exhibit A

Standard Alnylam Form

Consultant from Industry

Approved July 2007

	 	 	 

	CONSULTANT:

	 	Patricia Allen
	ALNYLAM CONTACT:

	 	Laurence Reid, SVP, Chief Business Officer
	EFFECTIVE DATE:

	 	March 22, 2011

CONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT (together with its Business Terms Exhibit, the “Agreement”) made as
of March 22, 2011, (the “Effective Date”) is between Alnylam Pharmaceuticals, Inc., a Delaware
corporation having an address at 300 Third Street, 3rd Floor, Cambridge, MA 02142 (tel:
617-551-8200) (together with its affiliates, “Alnylam”), and Patricia Allen having an address at 7
Ashford Lane, Andover, MA 01810 (“Consultant”). Alnylam desires to have the benefit of
Consultant’s knowledge and experience, and Consultant desires to provide Consulting Services
(defined below) to Alnylam, all as provided in this Agreement.

1. Consulting Services. Alnylam retains Consultant and Consultant agrees to provide Consulting
Services to Alnylam (the “Consulting Services”) as it may from time to time reasonably request and
as specified in the business terms exhibit attached to this Agreement (“Business Terms Exhibit”).
Any changes to the Consulting Services (and any related compensation adjustments) must be agreed
upon in writing between Consultant and Alnylam prior to commencement of the changes.

	 	1.1	 	Performance. Consultant agrees to render the Consulting Services to Alnylam, or
to its designee, (a) at such reasonably convenient times and places as Alnylam may
direct, (b) under the general supervision of Alnylam, and (c) on a best efforts basis.
Consultant will comply with all rules, procedures and standards promulgated from time
to time by Alnylam with regard to Consultant’s access to and use of Alnylam’s property,
information, equipment and facilities. Consultant agrees to furnish Alnylam with
written reports with respect to the Consulting Services if and when requested by
Alnylam.
	 
	 	1.2	 	Third Party Confidential Information. Consultant agrees not to use any trade
secrets or other confidential information of any other person, firm, corporation,
institution or other entity in connection with any of the Consulting Services.
	 
	 	1.3	 	No Conflicts. Consultant is under no contractual or other obligation or
restriction which is inconsistent with Consultant’s execution of this Agreement or the
performance of the Consulting Services. During the Term (defined below), Consultant
will not enter into any agreement, either written or oral, in conflict with
Consultant’s obligations under this Agreement. Consultant will arrange to provide the
Consulting Services in such manner and at such times that the Consulting Services will
not conflict with Consultant’s responsibilities under any other agreement, arrangement
or understanding or pursuant to any employment relationship Consultant has at any time
with any third party.
	 
	 	1.4	 	Absence of Debarment. Consultant represents that Consultant has not been (a)
debarred, convicted, or is not subject to a pending debarment or conviction, pursuant
to section 306 of the United States Food Drug and Cosmetic Act, 21 U.S.C. § 335a, (b)

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	 	 	 	listed by any government or regulatory agencies as ineligible to participate in any
government healthcare programs or government procurement or non-procurement programs
(as that term is defined in 42 U.S.C. 1320a-7b(f)), or excluded, debarred, suspended
or otherwise made ineligible to participate in any such program, or (c) convicted of
a criminal offense related to the provision of healthcare items or services, or is
not subject to any such pending action. Consultant agrees to inform Alnylam in
writing promptly if Consultant is subject to the foregoing, or if any action, suit,
claim, investigation, or proceeding relating to the foregoing is pending, or to the
best of Consultant’s knowledge, is threatened.
	 
	 	1.5	 	Non-Competition. Consultant acknowledges and reaffirms Consultant’s
obligations under the Employee Nondisclosure, Noncompetition and Assignment of
Intellectual Property Agreement signed by Consultant, which shall remain in full force
and effect during the Term as if Consultant was actively employed as a full-time
employee. For purposes of any post-employment restrictive covenants contained in the
Employee Nondisclosure, Noncompetition and Assignment of Intellectual Property
Agreement, Consultant’s last day of active employment shall be the last day of the
Term.

	2.	 	Compensation. In consideration for the Consulting Services rendered by Consultant to
Alnylam, Alnylam agrees to pay Consultant the fees set forth in the Business Terms Exhibit
attached hereto. Unless otherwise specified in the Business Terms Exhibit, undisputed
payments will be made by Alnylam within thirty (30) days from Alnylam’s receipt of
Consultant’s invoice. Invoices will contain such detail as Alnylam may reasonably require and
will be payable in U.S. Dollars. Alnylam will reimburse Consultant for reasonable business
expenses incurred by Consultant in the performance of the Consulting Services as specified in
the Business Terms Exhibit.
	 
	3.	 	Materials and Developments.

	 	3.1	 	Materials. All documentation, information, and biological, chemical and other
materials controlled by Alnylam and furnished to Consultant by or on behalf of Alnylam
(“Materials”) and all associated intellectual property rights will remain the exclusive
property of Alnylam. Consultant will use Materials provided by Alnylam only as
necessary to perform the Consulting Services and will treat them in accordance with the
requirements of this Section 3.1. Consultant agrees that it will not use or evaluate
those Materials or any portions thereof for any other purpose except as directed or
permitted in writing by Alnylam. Without Alnylam’s prior express written consent,
Consultant agrees that it will not analyze the Materials, or transfer or make the
Materials available to third parties.
	 
	 	3.2	 	Deliverables. Consultant assigns and agrees to assign to Alnylam all rights in
the United States and throughout the world to inventions, discoveries, improvements,
ideas, designs, processes, formulations, products, computer programs, works of
authorship, databases, mask works, trade secrets, know-how, information, data,
documentation, reports, research, creations and other products arising from or made in
the performance of the Services (whether or not patentable or subject to copyright or
trade secret protection) (collectively, “Deliverables”). For purposes of the copyright
laws of the United States, Deliverables will constitute “works made for hire,” except
to the extent such deliverables cannot by law be “works made for hire.” Alnylam will
have the right to use Deliverables for any and all purposes. During and after the term
of this Agreement, Consultant will cooperate fully in obtaining patent and other
proprietary protection for any patentable

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	 	 	 	Deliverables, all in the name of Alnylam and at Alnylam’s cost and expense. Such
cooperation will include, without limitation, executing and delivering all requested
applications, assignments and other documents, and taking such other measures as
Alnylam may reasonably request in order to perfect and enforce Alnylam’s rights in
the Deliverables. Consultant appoints Alnylam its attorney-in-fact to execute and
deliver any such documents on behalf of Consultant if Consultant fails to do so.
Consultant will, however, retain full ownership rights in and to all templates,
programs and other materials developed or obtained or licensed from third parties by
Consultant (“Consultant Property”) prior to or independent of the Consulting
Services, regardless of whether such Consultant Property is used in the performance
of the Consulting Services. Consultant hereby grants to Alnylam a perpetual,
non-exclusive, fully paid-up worldwide license to use Consultant Property solely to
the extent required for Alnylam’s use of the Deliverables.
	 
	 	3.3	 	Work at Third Party Facilities. Consultant will not use any third party
facilities or intellectual property in performing the Consulting Services without
Alnylam’s prior written consent.
	 
	 	3.4	 	Records; Records Storage. Consultant will maintain all materials and all other
data and documentation obtained or generated by Consultant in the course of preparing
for and providing the Consulting Services, including all computerized records and files
(the “Records”) in a secure area reasonably protected from fire, theft and destruction.
These Records will be “Works Made for Hire” and will remain the exclusive property of
Alnylam. Upon written instruction of Alnylam, all Records will, at Alnylam’s option
either be (a) delivered to Alnylam or to its designee, or (b) disposed of, unless such
Records are otherwise required to be stored or maintained by Consultant as a matter of
law or regulation. In no event will Consultant dispose of any such Records without
first giving Alnylam sixty (60) days’ prior written notice of Consultant’s intent to do
so. Consultant may, however, retain copies of any Records as are reasonably necessary
for regulatory or insurance purposes, subject to Consultant’s obligation of
confidentiality.

	4.	 	Confidential Information.

	 	4.1	 	Definition. “Confidential Information” means all scientific, technical,
financial or business information owned, possessed or used by Alnylam, learned of by
Consultant or developed by Consultant in connection with the Services, whether or not
labeled “Confidential”, including but not limited to (a) Deliverables, Materials,
scientific data and sequence information, (b) marketing plans, business strategies,
financial information, forecasts, personnel information and customer lists of Alnylam,
and (c) all information of third parties that Alnylam has an obligation to keep
confidential.
	 
	 	4.2	 	Obligations of Confidentiality. During the Term and for a period of five (5)
years thereafter, Consultant will not directly or indirectly publish, disseminate or
otherwise disclose, use for Consultant’s own benefit or for the benefit of a third
party, deliver or make available to any third party, any Confidential Information,
other than in furtherance of the purposes of this Agreement, and only then with the
prior written consent of Alnylam. Consultant will exercise all reasonable precautions
to physically protect the integrity and confidentiality of the Confidential
Information.
	 
	 	4.3	 	Exceptions. Consultant will have no obligations of confidentiality and non-use
with respect to any portion of the Confidential Information which:

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	 	(a)	 	is or later becomes generally available to the public by use,
publication or the like, through no fault of Consultant;
	 
	 	(b)	 	is obtained from a third party who had the legal right to
disclose it to Consultant; or
	 
	 	(c)	 	Consultant already possesses, as evidenced by Consultant’s
written records that predate the receipt thereof.

	 	 	 	In the event that Consultant is required by law or court order to disclose any
Confidential Information, Consultant will give Alnylam prompt notice thereof so that
Alnylam may seek an appropriate protective order. Consultant will reasonably
cooperate with Alnylam in its efforts to seek such a protective order.

	5.	 	Term and Termination.

	 	5.1	 	Term. This Agreement will commence on the Effective Date and continue for the
term specified on the Business Terms Exhibit (the “Term”), unless sooner terminated
pursuant to the express terms of this Section 5 or extended by written agreement of the
parties.
	 
	 	5.2	 	Termination for Breach. If either party breaches in any material respect any of
its material obligations under this Agreement, in addition to any other right or
remedy, the non-breaching party may terminate this Agreement in the event that the
breach is not cured within thirty (30) days after receipt by that party of written
notice of the breach.
	 
	 	5.3	 	Termination by Alnylam. Alnylam may terminate this Agreement (a) immediately
at any time upon written notice to Consultant in the event of a breach of this
Agreement by Consultant which cannot be cured (i.e. breach of the confidentiality
obligation).
	 
	 	5.4	 	Effect of Expiration/Termination. Upon expiration or termination of this
Agreement, neither Consultant nor Alnylam will have any further obligations under this
Agreement, except that (a) Consultant will terminate all Consulting Services in
progress in an orderly manner as soon as practical and in accordance with a schedule
agreed to by Alnylam, unless Alnylam specifies in the notice of termination that
Consulting Services in progress should be completed, (b) Consultant will deliver to
Alnylam any Materials in its possession or control and all Deliverables made through
expiration or termination, (c) Alnylam will pay Consultant any monies due and owing
Consultant, up to the time of termination or expiration, for Consulting Services
actually performed and all authorized expenses actually incurred, (d) Consultant will
promptly refund to Alnylam any monies paid by Alnylam in advance for Consulting
Services not rendered, (e) Consultant will immediately return to Alnylam all
Confidential Information and copies thereof provided to Consultant under this Agreement
except for one (1) copy which Consultant may retain solely to monitor Consultant’s
surviving obligations of confidentiality, and (f) the terms, conditions and obligations
under Sections 1.4, 1.5, 3, 4, 5.4 and 6 will survive expiration or termination for any
reason.

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	6.	 	Miscellaneous.

	 	6.1	 	Employment Relationship. All Consulting Services will be rendered by
Consultant as a part-time employee. Regardless of Consultant’s status as an employee,
Consultant will not be entitled to and hereby waives, to the full extent permitted by
law, any right that Consultant has or may have to receive or participate in any and all
benefits offered to employees, including, without limitation, rights under any medical
or benefit plan, pension plan, vacation plan, bonus plan, stock option plan, and any
other fringe benefits of any kind maintained by Alnylam for its employees now, or at
any time in the future.
	 
	 	6.2	 	Taxes. Payments made to Consultant under this Agreement are subject to lawful
deductions. Consultant will receive an IRS Form W-2 in the ordinary course of
business based on work performed by Consultant under this Agreement.
	 
	 	6.3	 	Use of Name. Consultant consents to the use by Alnylam of Consultant’s name
and likeness in written materials and oral presentations to current or prospective
customers, partners, investors or others, provided that such materials or presentations
accurately describe the nature of Consultant’s relationship with or contribution to
Alnylam.
	 
	 	6.4	 	Assignability and Binding Effect. The Consulting Services to be rendered by
Consultant are personal in nature. Consultant may not assign or transfer this
Agreement or any of Consultant’s rights or obligations hereunder except to a
corporation of which Consultant is the sole stockholder. In no event will Consultant
assign or delegate responsibility for actual performance of the Consulting Services to
any other natural person. This Agreement will be binding upon and inure to the benefit
of the parties and their respective legal representatives, heirs, successors and
permitted assigns.
	 
	 	6.5	 	Notices. All notices required or permitted under this Agreement must be in
writing and must be given by addressing the notice to the address for the recipient set
forth in this Agreement or at such other address as the recipient may specify in
writing under this procedure. Notices to Alnylam will be marked “Attention: Vice
President, Legal.” Notices will be deemed to have been given (a) three (3) business
days after deposit in the mail with proper postage for first class registered or
certified mail prepaid, or (b) one (1) business day after sending by nationally
recognized overnight delivery service.
	 
	 	6.6	 	No Modification. This Agreement may be changed only by a writing signed by
Consultant and an authorized representative of Alnylam.
	 
	 	6.7	 	Remedies. It is understood and agreed that Alnylam may be irreparably injured
by a breach of this Agreement; that money damages would not be an adequate remedy for
any such breach; and that Alnylam will be entitled to seek equitable relief, including
injunctive relief and specific performance, without having to post a bond, as a remedy
for any such breach, and such remedy will not be Alnylam’s exclusive remedy for any
breach of this Agreement.
	 
	 	6.8	 	Severability; Reformation. Any of the provisions of this Agreement which are
determined to be invalid or unenforceable in any jurisdiction will be ineffective to
the extent of such invalidity or unenforceability in such jurisdiction, without
rendering invalid or unenforceable the remaining provisions hereof and without
affecting the validity or enforceability of any of the other terms of this Agreement in
such jurisdiction, or the terms of this Agreement in any other jurisdiction. The
parties will substitute for

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	 	 	 	the invalid or unenforceable provision a valid and enforceable provision that
conforms as nearly as possible with the original intent of the parties.
	 
	 	6.9	 	Waivers. No waiver of any term, provision or condition of this Agreement in
any one or more instances will be deemed to be or construed as a further or continuing
waiver of any other term, provision or condition of this Agreement. Any such waiver
must be evidenced by an instrument in writing executed by Consultant or, in the case of
Alnylam, by an officer authorized to execute waivers.
	 
	 	6.10	 	Entire Agreement. This Agreement constitutes the entire agreement of the
parties with regard to its subject matter, and supersedes all previous written or oral
representations, agreements and understandings between the parties on the subject
matter. Nothing herein, however, supersedes Consultant’s obligations under
Consultant’s separation agreement and general release (to which this Agreement is
attached as Exhibit A) or Consultant’s obligations under the Employee Nondisclosure,
Noncompetition and Assignment of Intellectual Property Agreement.
	 
	 	6.11	 	Governing Law. This Agreement will be governed by, construed, and interpreted
in accordance with the laws of the Commonwealth of Massachusetts, without reference to
principles of conflicts of laws.
	 
	 	6.12	 	Counterparts. This Agreement may be executed in any number of counterparts,
each of which will be deemed an original, but all of which together will constitute one
and the same instrument.
	 
	 	6.13	 	Headings. The section headings are included solely for convenience of
reference and will not control or affect the meaning or interpretation of any of the
provisions of this Agreement.

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 

	ALNYLAM PHARMACEUTICALS, INC.	 	 	 	Patricia Allen	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Laurence E. Reid
	 	 	 	By:
	 	/s/ Patricia L. Allen	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	L. Reid
	 	 	 	Name:
	 	Patricia L. Allen	 	 
	Title:

	 	CBO
	 	 	 	Title:
	 	Consultant	 	 

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BUSINESS TERMS EXHIBIT

Consulting Agreement with Patricia Allen

	1.	 	Consulting Services:

Work with senior management and act as a resource to provide comprehensive financial
guidance including but not limited to general accounting, operating budget, public reporting
and treasury-related activities.

Consultant will render Consulting Services on a schedule to be determined by Alnylam
arrangement between Consultant and Laurence Reid, SVP, Chief Business Officer to whom
Consultant will report.

	2.	 	Compensation:

As full compensation for the Consulting Services, Alnylam will pay Consultant $300 per hour,
for no more than one hour per month during the Term, without Alnylam’s specific written
consent.

Alnylam will reimburse Consultant for all reasonable travel and other business expenses
incurred by Consultant in rendering the Consulting Services, provided that such expenses are
agreed upon in writing in advance, and are confirmed by appropriate written expense
statements and other supporting documentation.

	3.	 	Term:

This Agreement will be for an initial term of one (1) year beginning on the Effective Date,
and may be extended for additional periods, at Alnylam’s option and with Consultant’s
consent.exv10w2

Confidential Materials omitted and filed separately with the

Securities and Exchange Commission. Asterisks denote omissions.

Exhibit 10.2

CONFIDENTIAL SETTLEMENT AGREEMENT AND MUTUAL RELEASE

     This Confidential Settlement Agreement and Mutual Release (“Confidential Settlement
Agreement”) is entered into as of the Effective Date by and between Max-Planck-Gesellschaft zur
Förderung der Wissenschaften e.V. (“MPG”), Max-Planck-Innovation GmbH (“MI”) (collectively referred
to herein as “Max Planck”), and Alnylam Pharmaceuticals, Inc. (“Alnylam”), on the one hand, and
Whitehead Institute for Biomedical Research (“Whitehead”), Massachusetts Institute of Technology
(“MIT”), and the University of Massachusetts (“UMass”), on the other hand.

     This Confidential Settlement Agreement is made with respect to the lettered recitals below.
The Definitions set forth in Section 1 below apply to the recitals.

     A. MPG, MI, Alnylam, Whitehead, MIT, and UMass are parties to the Litigation, which involves a
dispute concerning the Tuschl I Patent Family and the Tuschl II Patent Family. One of the claims
asserted in the Litigation is UMass’s claim pursuant to 35 U.S.C. § 256 to have Phillip D. Zamore,
Phillip A. Sharp, and David P. Bartel named as co-inventors of two issued patents in the US Tuschl
II Patent Family.

     B. The Parties deem it to be in their best interests and to their mutual advantage to settle
their disputes on the terms and conditions set forth in this Confidential Settlement Agreement
(including the exhibits attached hereto), without admitting liability, in order to achieve
certainty in their business dealings and to avoid the expense of litigation. As part of their
settlement of the claims in the Litigation, including UMass’s counterclaim to correct inventorship
(described above), the Parties have agreed to common ownership of the US Tuschl II Patent Family on
the terms and conditions set forth in this Confidential Settlement Agreement, including in the
attached: Assignment Agreement, Amendment to the Alnylam License Agreement, and Exclusive License
Agreement.

     NOW, THEREFORE, in consideration of all of the terms and conditions of this Confidential
Settlement Agreement, the Parties agree as follows:

     1. Definitions. The following words and phrases shall have the meanings set forth
below solely for purposes of this Confidential Settlement Agreement.

          1.1 “2001 Research Agreement” shall mean the JOINT INVENTION AND JOINT MARKETING AGREEMENT
between and among MPG, MI, Whitehead, MIT and UMass dated September 19, 2001.

          1.2 “2003 Therapeutics Agreement” shall mean the JOINT INVENTION AND JOINT MARKETING AGREEMENT
FOR RNAI THERAPEUTIC PURPOSES between and among MPG, MI, MIT and Whitehead dated July 30, 2003.

          1.3 “Affiliate” shall mean any corporation or other business entity that now or in the future
directly or indirectly controls, is controlled by, or is under common control with, a Party or a
third party (as the case may be as used in this Confidential Settlement Agreement). Control means
direct or indirect ownership of, or other beneficial interest in, fifty percent (50%) or more of
the voting stock, other voting interest, or income of a corporation or other business

 

 

entity, or possession of the power to elect or appoint fifty percent (50%) or more of the
members of the governing body of the corporation or other business entity. A corporation or other
business entity shall be an Affiliate only during such period of time that it meets the definition
set forth in this Section 1.3.

          1.4 “Alnylam License Agreement” shall mean the Co-Exclusive License Agreement between and
among MI and Alnylam dated December 20, 2002, as amended, and as approved by Whitehead and MIT
pursuant to the letter dated July 30, 2003.

          1.5 “Amendment to the Alnylam License Agreement” shall mean the Amendment between and among
Alnylam, MI, MIT and Whitehead attached hereto as Exhibit I.

          1.6 “Assignment Agreement” shall mean the Assignment Agreement between and among MPG,
Whitehead, MIT and UMass attached hereto as Exhibit A.

          1.7 [**].

          1.8 “Claim” or “Claims” shall mean any and all claims, actions, causes of action, demands,
costs, and charges of whatever nature, whether accrued now or hereafter, whether known or unknown,
including without limitation any and all claims to recover attorneys’ fees and costs.

          1.9 “Defendants” shall mean Whitehead, UMass and MIT collectively.

          1.10 “Effective Date” shall mean March 14, 2011.

          1.11 “Exclusive License Agreement” shall mean the Exclusive License Agreement to the US Tuschl
II Patent Family between UMass and Alnylam attached hereto as Exhibit B.

          1.12 “Litigation” shall mean the civil action entitled Max-Planck-Gesellschaft zur Förderung
der Wissenschaften e.V., Max-Planck-Innovation GmbH, and Alnylam Pharmaceuticals, Inc. v. Whitehead
Institute for Biomedical Research, Massachusetts Institute of Technology, and the Board of Trustees
of the University of Massachusetts, pending in the United States District Court for the District of
Massachusetts as Case No. 09-CV-11116-PBS.

          1.13 “Merck” shall mean Merck & Co., Inc. and its Affiliates.

          1.14 “Merck Option Agreement” shall mean Merck’s rights under the non-exclusive option
agreement relating to the US Tuschl II Patent Family as provided for in Section 2.2 of the
Exclusive License Agreement.

          1.15 “Party” shall mean MPG, MI, Alnylam, Whitehead, MIT, or UMass, and when used in the
plural shall mean all of them.

          1.16 “Plaintiffs” shall mean MPG, MI and Alnylam collectively.

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          1.17 “Prosecution” shall mean the process of interacting with a patent office such as the
USPTO with respect to a patent application or patent, including but not limited to responding to
office actions, conducting examiner interviews, filing continuing applications, drafting, amending
and cancelling claims, pursuing appeals (including in a court, in the case of an appeal from or a
challenge to a patent office action or decision), or otherwise seeking allowance of a patent
application or seeking correction, reexamination, reissue, or patent term extension of an issued
patent.

          1.18 “Prosecution Guidelines” shall mean the Tuschl I and II Prosecution Guidelines attached
as Exhibit C to this Confidential Settlement Agreement.

          1.19 “UMass-Sirna Agreement” shall mean the License Agreement between UMass and Sirna
Therapeutics, Inc., now Merck & Co., Inc. (“Merck”), dated September 8, 2003, as such license was
in effect on the date on which the Litigation was initially filed.

          1.20 “UMass’s Inventorship Claim” shall mean UMass’s Claim in the Litigation pursuant to 35
U.S.C. § 256 to have Phillip D. Zamore, Phillip A. Sharp, and/or David P. Bartel named as
co-inventors of two issued patents in the U.S. Tuschl II Patent Family, and any other Claim that
may now or hereafter exist to have any or all of Phillip D. Zamore, Phillip A. Sharp, or David P.
Bartel named as an inventor on any application or patent in the Tuschl II Patent Family.

          1.21 “USPTO” shall mean the United States Patent and Trademark Office.

          1.22 “US Tuschl I Patent Family” shall mean any and all patents issued by, and patent
applications filed in, the USPTO as set forth in the attached Exhibit D, entitled “RNA
sequence-specific mediators of RNA interference,” naming as inventors Thomas Tuschl, David P.
Bartel, Phillip A. Sharp, and Phillip D. Zamore, and any divisionals, continuations,
continuation-in-part applications thereof, requests for continued examination, reissues or
reexaminations of any of the foregoing filed in the USPTO.

          1.23 “Non-US Tuschl I Patent Family” shall mean any and all patents issued by, and patent
applications filed in, any country other than the United States as set forth in the attached
Exhibit E, entitled “RNA sequence-specific mediators of RNA interference,” naming as inventors
Thomas Tuschl, David P. Bartel, Phillip A. Sharp, and Phillip D. Zamore, and any divisionals,
continuations, continuation-in-part applications thereof, requests for continued examination,
reissues or reexaminations of any of the foregoing filed in any country other than the United
States.

          1.24 “The Tuschl I Patent Family” shall mean the US Tuschl I Patent Family and the Non-US
Tuschl I Patent Family collectively.

          1.25 “US Tuschl II Patent Family” shall mean any and all patents issued by, and patent
applications filed in, the USPTO as set forth in the attached Exhibit F, entitled “RNA Interference
Mediating Small RNA Molecules,” naming as inventors Thomas Tuschl, Sayda Elbashir, and Winfried
Lendeckel, and any divisionals, continuations, continuation-in-part applications thereof, requests
for continued examination, reissues or reexaminations of any of the foregoing filed in the USPTO.

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          1.26 “Non-US Tuschl II Patent Family” shall mean any and all patents issued by, and patent
applications filed in, any country other than the United States as set forth in the attached
Exhibit G, entitled “RNA Interference Mediating Small RNA Molecules,” naming as inventors Thomas
Tuschl, Sayda Elbashir, and Winfried Lendeckel, and any divisionals, continuations,
continuation-in-part applications thereof, requests for continued examination reissues or
reexaminations of any of the foregoing filed in any country other than the United States.

          1.27 “The Tuschl II Patent Family” shall mean the US Tuschl II Patent Family and the Non-US
Tuschl II Patent Family collectively.

          1.28 “WGS Settlement Agreement” shall mean the Settlement Agreement between MI, MPG, and
Alnylam, on one hand, and Wolf, Greenfield & Sacks, P.C., on the other hand, attached hereto as
Exhibit H.

     2. Patent Prosecution.

          2.1 Prosecution of the US Tuschl I Patent Family. Max Planck shall have sole
responsibility for Prosecution of the US Tuschl I Patent Family. Prosecution shall be conducted
according to the principles set forth in the Prosecution Guidelines, which are incorporated herein.
Max Planck shall (i) keep all other Parties reasonably and promptly informed as to Prosecution of
the US Tuschl I Patent Family; (ii) furnish all other Parties copies of documents relevant to the
Prosecution of the US Tuschl I Patent Family, including timely drafts of amendments and other
responses to office actions reasonably in advance of filing; and (iii) allow all other Parties to
comment on all substantive prosecution matters with respect to the Prosecution of the US Tuschl I
Patent Family.

          2.2 Prosecution of the Non-US Tuschl I Patent Family. UMass shall have sole
responsibility for Prosecution of the Non-US Tuschl I Patent Family. Prosecution shall be
conducted according to the principles set forth in the Prosecution Guidelines, which are
incorporated herein. UMass shall (i) keep all other Parties reasonably and promptly informed as to
Prosecution of the Non-US Tuschl I Patent Family; (ii) furnish all other Parties copies of
documents relevant to the Prosecution of the Non-US Tuschl I Patent Family, including timely drafts
of amendments and other responses to office actions reasonably in advance of filing; and (iii)
allow all other Parties to comment on all substantive prosecution matters with respect to the
Prosecution of the Non-US Tuschl I Patent Family.

          2.3 Prosecution of the US Tuschl II Patent Family. Max Planck shall have sole
responsibility for Prosecution of the US Tuschl II Patent Family. Prosecution shall be conducted
according to the principles set forth in the Prosecution Guidelines, which are incorporated herein.
Max Planck shall (i) keep all other Parties reasonably and promptly informed as to Prosecution of
the US Tuschl II Patent Family; (ii) furnish all other Parties copies of documents relevant to the
Prosecution of the US Tuschl II Patent Family, including timely drafts of amendments and other
responses to office actions reasonably in advance of filing; and (iii) allow all other Parties to
comment on all substantive prosecution matters with respect to the Prosecution of the US Tuschl II
Patent Family.

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          2.4 Prosecution of the Non-US Tuschl II Patent Family. Max Planck shall have sole
responsibility for Prosecution of the Non-US Tuschl II Patent Family. Prosecution shall be
conducted according to the principles set forth in the Prosecution Guidelines, which are
incorporated herein. Max Planck shall (i) keep all other Parties reasonably and promptly informed
as to Prosecution of the Non-US Tuschl II Patent Family; (ii) furnish all other Parties copies of
documents relevant to the Prosecution of the Non-US Tuschl II Patent Family, including timely
drafts of amendments and other responses to office actions reasonably in advance of filing; and
(iii) allow all other Parties to comment on all substantive prosecution matters with respect to the
Prosecution of the Non-US Tuschl II Patent Family.

          2.5 Outside Patent Prosecution Counsel. The Parties shall agree upon a law firm to
handle Prosecution of both the US Tuschl I and the US Tuschl II Patent Families. Such law firm
shall initially be Lando & Anastasi, LLP. In the event that such law firm withdraws or Max Planck
decides to change the law firm prosecuting the US Tuschl I Patent Family and the US Tuschl II
Patent Family, then Max Planck shall provide prompt notice of such event to MIT, UMass and
Whitehead along with a recommended law firm to assume such prosecution from such point forward.
Max Planck’s recommendation shall be subject to consent by MIT, UMass and Whitehead, such consent
not to be unreasonably withheld or delayed. MPG (and/or MI, as appropriate), MIT, UMass and
Whitehead shall each execute a Power of Attorney in favor of the agreed-upon law firm (or
replacement law firm, as the case may be), as well as a reasonable conflict of interest waiver in
the form requested by such law firm (or replacement law firm, as the case may be) that waives any
conflict of interest in connection with the Prosecution of The Tuschl I and The Tuschl II Patent
Families. The Parties shall also agree upon law firms to handle Prosecution of the Non-US Tuschl I
and Non-US Tuschl II Patent Families and shall likewise execute Powers of Attorney and (if
requested) reasonable conflict of interest waivers that waive any conflict of interest in
connection with the Prosecution of The Tuschl I and The Tuschl II Patent Families in favor of such
law firms. The Parties agree that the law firm of Nelson Mullins Riley & Scarborough LLP may
handle Prosecution of the Non-US Tuschl I Patent Family and that they will execute Powers of
Attorney and reasonable conflict of interest waivers in favor of such law firm that waive any
conflict of interest in connection with the Prosecution of The Tuschl I and The Tuschl II Patent
Families. The Parties agree that the law firm of Weickman & Weickman may handle Prosecution of the
Non-US Tuschl II Patent Family and that they will execute Powers of Attorney and reasonable
conflict of interest waivers that waive any conflict of interest in connection with the Prosecution
of The Tuschl I and The Tuschl II Patent Families in favor of such law firm.

          2.6 No Goldstein Petition. The Parties agree not to seek to withdraw the Powers of
Attorney they execute pursuant to Section 2.5 above, whether through a petition filed in the USPTO
pursuant to 37 CFR § 1.36 under In re Goldstein, 16 USPQ2d 1963 (Dep. Ass’t Com’r for Patents
1988), or otherwise. Further, each Party hereby consents to, and does, waive any conflict of
interest of any attorney designated pursuant to Section 2.5 above in connection with the
Prosecution of The Tuschl I and The Tuschl II Patent Families. Each Party further represents and
warrants that it has consented to such conflict waiver after consultation with independent counsel
and that the implications and risks of common representation in connection with the Prosecution of
The Tuschl I and The Tuschl II Patent Families as provided for herein have been explained to them.

- 5 -

 

          2.7 Costs of Patent Prosecution. As between Max Planck, Whitehead, MIT and UMass,
[**] shall pay for all expenses, including attorneys’ fees, incurred in the Prosecution of the US
Tuschl I Patent Family, the US Tuschl II Patent Family, and the Non-US Tuschl II Patent Family,
PROVIDED THAT nothing herein shall be deemed to relieve any research reagent licensee of an
existing obligation to pay, in addition to royalties, a portion of all fees and costs, including
attorneys’ fees, incurred in the Prosecution of The Tuschl I Patent Family and The Tuschl II Patent
Family under the terms set forth in the license agreements entered pursuant to the 2001 Research
Agreement. As between Max Planck, Whitehead, MIT and UMass, [**] shall pay for all expenses,
including attorneys’ fees, incurred in the Prosecution of the Non-US Tuschl I Patent Family,
PROVIDED THAT nothing herein shall be deemed to relieve any research reagent licensee of an
existing obligation to pay, in addition to royalties, a portion of all fees and costs, including
attorneys’ fees, incurred in the Prosecution of The Tuschl I Patent Family under the terms set
forth in the license agreements entered pursuant to the 2001 Research Agreement. For avoidance of
doubt, this Section 2.7 does not authorize any Party to amend, and does not require any Party to
consent to any amendment of, any license granted pursuant to the 2001 Research Agreement.

          2.8 Amendment to 2001 Research Agreement. The third Whereas clause on page 1 of the
2001 Research Agreement is hereby amended to replace “MPG” with “MPG, M.I.T., Whitehead and UMass
.. . . “ with the remainder of that Whereas clause to remain unchanged. Section 1, entitled “Patent
Management,” and Section 3(a) of the section entitled “Patent Maintenance,” of the 2001 Research
Agreement are hereby superseded in their entirety and replaced by the provisions of Section 2.1
through 2.5 and 2.7 of this Confidential Settlement Agreement. Section 4, entitled “Sharing of
Revenue,” of the 2001 Research Agreement is hereby amended to read as follows: “First, a [**]
percent ([**]%) administration fee shall be deducted from all revenue and equity received by the
licensing agent, whether M.I.T. or GI, from license fees and royalties from the PATENT PACKAGE.
Then, the remaining revenue and equity shall be distributed by M.I.T. and GI on at least a
quarterly basis as follows: (a) [**]% shall be paid to GI, and shall be attributed to the MPG
Invention. (b) [**]% shall be paid to M.I.T., and shall be distributed in the following way by
M.I.T.: ...” Clauses (i), (ii), and (iii) of Section 4 remain unchanged.

          2.9 Amendment to 2003 Therapeutics Agreement. Section 1, entitled “Patent
Management,” and Section 2(a) of the section entitled “Patent Maintenance,” of the 2003
Therapeutics Agreement are hereby superseded in their entirety and replaced by the provisions of
Sections 2.1 through 2.5 and 2.7 of this Confidential Settlement Agreement.

          2.10 [**].

          2.11 [**].

          2.12 Bayh-Dole Reports. To the extent that any periodic reports must be filed with
the U.S. Government under the provisions of the Bayh-Dole Act in connection with the prosecution of
The Tuschl I Patent Family, Max Planck agrees to timely provide MIT with the necessary information
to prepare such reports and MIT agrees to prepare and file such reports on behalf of all of the
co-owners of The Tuschl I Patent Family.

- 6 -

 

     3. Other Agreements.

          3.1 Assignment Agreement, Exclusive License Agreement, and Amendment to the Alnylam
License Agreement. Not later than the Effective Date, MPG, Whitehead, MIT, and UMass shall
execute and deliver the Assignment Agreement. Immediately following delivery of the Assignment
Agreement, (i) Alnylam and UMass shall execute and deliver the Exclusive License Agreement, and
(ii) Alnylam, MI, MIT and Whitehead shall execute and deliver the Amendment to the Alnylam License
Agreement.

          3.2 WGS Settlement Agreement. Not later than the Effective Date, MPG, MI, Alnylam and
Wolf, Greenfield & Sacks, P.C. shall enter into the WGS Settlement Agreement.

          3.3 [**]

               3.3.1 [**]

               3.3.2 [**]

               3.3.3 [**]

               3.3.4 [**]

          3.4 UMass Payments to Alnylam. In consideration of the rights granted under the Merck
Option Agreement, UMass shall pay Alnylam (i) [**] percent ([**]%) of any additional payments or
other consideration (exclusive of any milestone payments due under the UMass-Sirna Agreement) that
UMass receives from Merck solely for rights to the US Tuschl II Family, and (2) [**] percent
([**]%) of royalty income (exclusive of any milestone payments due under the UMass-Sirna Agreement)
that UMass receives from Merck solely for rights to the US Tuschl II Family. For the avoidance of
any doubt, the Parties acknowledge and agree: (i) UMass shall have no obligation to make any
payment to Alnylam in the event that UMass and Merck agree that the milestone payment provided for
in the UMass-Sirna Agreement upon issuance of a patent in the US Tuschl I Patent Family shall be
due if a patent issues in either the US Tuschl I Patent Family or the US Tuschl II Patent Family;
(ii) if UMass increases the consideration it receives from Merck above the consideration described
in the UMass-Sirna Agreement in exchange for rights to the US Tuschl II Patent Family, then Alnylam
shall be entitled to [**] percent ([**]%) of such increased amount; and (iii) if UMass receives
income under the UMass-Sirna Agreement solely as a result of the license of the US Tuschl II Patent
Family (i.e., such payments would not have been made on account of the license to the US Tuschl I
Patent Family), then Alnylam shall be entitled to [**] percent ([**]%) of such amount. UMass shall
make such payments to Alnylam not later than [**] days after receipt of the corollary payment from
Merck.

          3.5 No Termination of Merck Option Agreement. No challenge to the validity,
enforceability, or inventorship of any application or patent in the Non-US Tuschl II Patent Family
made by Merck outside of the United States shall have the effect of terminating Merck’s rights
under Merck Option Agreement.

- 7 -

 

          3.6 No Use of Merck License. Max Planck and Alnylam agree that neither the existence
nor the terms of any license entered into by Merck pursuant to a Merck Option Agreement for rights
to the US Tuschl II Patent Family shall be admissible for any purpose in any infringement action,
opposition proceeding, nullity proceeding, or other judicial or administrative proceeding in which
the validity of any member of the Tuschl II Patent Family may be challenged.

     4. Survival of the 2001 Research Agreement and 2003 Therapeutics Agreement. Except as
explicitly amended by this Confidential Settlement Agreement, the 2001 Research Agreement and the
2003 Therapeutics Agreement remain in force and effect. The Parties further covenant and agree
that the allocation and distribution of revenue and equity under the 2001 Research Agreement as
amended by this Confidential Settlement Agreement and under the 2003 Therapeutics Agreement as
amended by this Confidential Settlement Agreement shall remain unchanged regardless of the issuance
or non-issuance of patents in either The Tuschl I Patent Family or The Tuschl II Patent Family.

     5. Challenges to The Tuschl I and The Tuschl II Patent Families.

          5.1 No Challenges. Alnylam, Max Planck, Whitehead, MIT and UMass and their Affiliates
shall not voluntarily challenge or cause to be challenged the validity, enforceability or
inventorship of any patents in The Tuschl I Patent Family or The Tuschl II Patent Family before any
court, agency, or other tribunal (including the USPTO).

          5.2 No Participation. Alnylam, Max Planck, Whitehead, MIT and UMass and their
Affiliates shall not initiate, or knowingly support or assist any third party with, any legal or
administrative proceeding that seeks to invalidate, revoke, reexamine, challenge inventorship or
render unenforceable any patents in The Tuschl I Patent Family or The Tuschl II Patent Family,
including any proceeding before the USPTO. As used in the preceding sentence, “knowingly” shall
mean knowing that the participation or assistance, at the time it is given, relates to any actual
or prospective legal or administrative proceeding that seeks to invalidate, revoke, reexamine, or
render unenforceable any patents in The Tuschl I Patent Family or The Tuschl II Patent Family,
including any proceeding before the USPTO. Nothing herein shall preclude a Party from
participating in such a proceeding to support the validity or enforceability of any patent in The
Tuschl I Patent Family or The Tuschl II Patent Family. No Party shall be deemed to have violated
any provision of this Section 5 based solely on activities: (i) undertaken by one or more of its
licensees or Merck, without any support of such activities by the Party; (ii) undertaken at the
request of a licensee, of a license granted pursuant to the 2001 Research Agreement, to the extent
such activities are required by the license agreement as it currently provides as of the Effective
Date; or (iii) required by a lawful subpoena or court order. For avoidance of doubt, this Section
5.2 does not authorize any Party to amend, and does not require any Party to consent to any
amendment of, any license granted pursuant to the 2001 Research Agreement.

          5.3 Compelled Testimony. Sections 5.1 and 5.2 shall not apply to any testimony,
documents or other evidence provided in response to a subpoena or order issued by any court,
tribunal, or agency.

- 8 -

 

     6. No Further Conveyances of Rights. (a) UMass, MIT and Whitehead each covenant and
agree, other than as expressly provided for, or agreed to, in: the 2001 Research Agreement, the
2003 Therapeutics Agreement, the Alnylam License Agreement or the two non-asserts attached to the
August 6, 2004 letter from MIT to Kevin Nash of Dharmacon, (i) not to dedicate to the public nor to
convey to any entity whatsoever, including to any of its or their Affiliates, whether by
assignment, license or otherwise, any interest in the US Tuschl II Patent Family without the prior
written consent of Max Planck; and (ii) not to make any representation in any form or manner that
any patent application or patent in the US Tuschl II Patent Family may be used for research
purposes. (b) Under no circumstance shall UMass, MIT or Whitehead disclaim or otherwise
relinquish ownership of any US Tuschl II Patent without the prior written consent of Max Planck.
In the event that UMass, MIT or Whitehead does disclaim or otherwise relinquish its ownership
interest in any US Tuschl II Patent, such Party shall be deemed to have disclaimed and relinquished
its ownership interest in every patent in the US Tuschl II Patent Family and every patent in The
Tuschl I Patent Family in order to maintain common ownership between The Tuschl I Patent Family and
The Tuschl II Patent Family. (c) For purposes of clarity, this Section 6 does not affect or limit
the rights and abilities of any licensing agent under the 2001 Research Agreement or the 2003
Therapeutics Agreement to negotiate and enter into licenses with any third party on behalf of the
parties to those agreements, subject to existing contractual obligations.

     7. Releases, Covenants Not to Sue, and Dismissals.

          7.1 Releases by Plaintiffs. Plaintiffs, on behalf of themselves and their
predecessors, successors, assigns, and Affiliates, do hereby now and forever release and discharge
Defendants, and their predecessors, successors, assigns, and Affiliates, and each of their
respective current and former trustees, officers, directors, employees, agents, attorneys, and
representatives, from: (i) any and all Claims concerning any act or omission occurring prior to the
execution of this Confidential Settlement Agreement that are related to, or connected in any way
with, the Tuschl I Patent Family, the Tuschl II Patent Family, UMass’s Inventorship Claim, or the
Litigation, including without limitation any and all claims that were raised or could have been
raised in the Litigation, any and all claims for breach of the 2001 Research Agreement, the 2003
Therapeutics Agreement, or the Alnylam License Agreement; and (ii) any and all Claims to recover
attorneys’ fees and costs, or to be defended, indemnified, or held harmless, in connection with The
Tuschl I and/or The Tuschl II Patent Families, (including without limitation the Prosecution of The
Tuschl I and/or The Tuschl II Patent Families), UMass’s Inventorship Claim, the Litigation, the
2001 Research Agreement, the 2003 Therapeutics Agreement, or the Alnylam License Agreement, .

          7.2 Releases by Defendants. Defendants, on behalf of themselves and their
predecessors, successors, assigns, and Affiliates (collectively, the “Releasing Entities”), do
hereby now and forever release and discharge Plaintiffs, and their predecessors, successors,
assigns, and Affiliates, and each of their respective current and former trustees, officers,
directors, employees, agents, attorneys, and representatives, from: (i) any and all Claims
concerning any act or omission occurring prior to the execution of this Confidential Settlement
Agreement that are related to, or connected in any way with, The Tuschl I Patent Family, The Tuschl
II Patent Family, UMass’s Inventorship Claim, or the Litigation, including without limitation any
and all claims that were raised or could have been raised in the Litigation, any and

- 9 -

 

all claims for breach of the 2001 Research Agreement, the 2003 Therapeutics Agreement, or the
Alnylam License Agreement; and (ii) any and all Claims to recover attorneys’ fees and costs, or to
be defended, indemnified, or held harmless, in connection with The Tuschl I Patent Family, The
Tuschl II Patent Family (including without limitation the Prosecution of The Tuschl I Patent Family
or The Tuschl II Patent Family), UMass’s Inventorship Claim, the Litigation, the 2001 Research
Agreement, the 2003 Therapeutics Agreement, or the Alnylam License Agreement, provided, however,
that the release contained in this Section 7.2 shall not extend to any claim for indemnification
under Section 7.1 of the Alnylam License Agreement for a claim brought against Whitehead or MIT by
a non-Releasing Entity other than a claim seeking to recover attorneys’ fees and costs in
connection with the Litigation or a claim seeking to recover attorneys’ fees and costs incurred
prior to the Effective Date in connection with the Prosecution of The Tuschl I Patent Family or The
Tuschl II Patent Family.

          7.3 Releases by Whitehead. Whitehead, on behalf of itself and its predecessors,
successors, assigns, and Affiliates, does hereby now and forever release and discharge UMass and
MIT, and their predecessors, successors, assigns, and Affiliates, and each of their respective
current and former trustees, officers, directors, employees, agents, attorneys, and
representatives, from: (i) any and all Claims concerning any act or omission occurring prior to the
execution of this Confidential Settlement Agreement that are related to, or connected in any way
with, the Tuschl I Patent Family, the Tuschl II Patent Family, UMass’s Inventorship Claim, or the
Litigation, including without limitation any and all claims that were raised or could have been
raised in the Litigation, any and all claims for breach of the 2001 Research Agreement, the 2003
Therapeutics Agreement, or the Alnylam License Agreement; and (ii) any and all Claims to recover
attorneys’ fees and costs, or to be defended, indemnified, or held harmless, in connection with The
Tuschl I and/or The Tuschl II Patent Families, (including without limitation the Prosecution of The
Tuschl I and/or The Tuschl II Patent Families), UMass’s Inventorship Claim, the Litigation, the
2001 Research Agreement, the 2003 Therapeutics Agreement, or the Alnylam License Agreement.

          7.4 Releases by UMass and MIT. UMass and MIT, on behalf of themselves and their
predecessors, successors, assigns, and Affiliates, do hereby now and forever release and discharge
Whitehead and each other, and their predecessors, successors, assigns, and Affiliates, and each of
their respective current and former trustees, officers, directors, employees, agents, attorneys,
and representatives, from: (i) any and all Claims concerning any act or omission occurring prior to
the execution of this Confidential Settlement Agreement that are related to, or connected in any
way with, the Tuschl I Patent Family, the Tuschl II Patent Family, UMass’s Inventorship Claim, or
the Litigation, including without limitation any and all claims that were raised or could have been
raised in the Litigation, any and all claims for breach of the 2001 Research Agreement, the 2003
Therapeutics Agreement, or the Alnylam License Agreement; and (ii) any and all Claims to recover
attorneys’ fees and costs, or to be defended, indemnified, or held harmless, in connection with The
Tuschl I and/or The Tuschl II Patent Families, (including without limitation the Prosecution of The
Tuschl I and/or The Tuschl II Patent Families), UMass’s Inventorship Claim, the Litigation, the
2001 Research Agreement, the 2003 Therapeutics Agreement, or the Alnylam License Agreement.

          7.5 Covenant Not to Sue. The Parties and their Affiliates shall not now or at any
time in the future initiate any legal proceeding anywhere in the world asserting any Claim

- 10 -

 

released pursuant to Sections 7.1 through 7.4. Any Party that breaches (or whose Affiliate
breaches) the obligations under this Section 7.5 (i) consents to the dismissal of such legal
proceeding and to the entry of a permanent injunction restraining the breaching Party (or
Affiliate) from initiating any future legal proceeding asserting any Claim released pursuant to
this Confidential Settlement Agreement; and (ii) shall be liable to the other Party and its
Affiliates for their reasonable attorneys’ fees and costs incurred in securing the dismissal of
such legal proceeding and the entry of such permanent injunction.

          7.6 Dismissal of Litigation. Not later than three (3) business days after the
Effective Date, the Parties shall file a Stipulated Order of Dismissal, in the form of Exhibit J
attached hereto, requesting the court to dismiss with prejudice the Litigation and all claims and
counterclaims asserted therein.

          7.7 No Licenses or Releases to Unnamed Third Parties. For the sake of clarity, the
Parties acknowledge and agree that this Confidential Settlement Agreement grants no license to and
releases no Claims against any other third party not specifically provided for in this Confidential
Settlement Agreement or the Exhibits thereto.

     8. Further Assurances. Each Party covenants and agrees that it shall execute and
deliver such other documents as may be required to implement any provision of this Agreement.

     9. Limitation of Remedies. UNLESS A REPRESENTATION OR WARRANTY OF A PARTY IN THIS
CONFIDENTIAL SETTLEMENT AGREEMENT IS KNOWINGLY FALSE, IN NO OTHER EVENT SHALL THE PARTIES, THEIR
TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES AND AFFILIATES BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL
DAMAGES OF ANY KIND, DIRECT OR INDIRECT, FOR A BREACH OF THIS CONFIDENTIAL SETTLEMENT AGREEMENT,
INCLUDING ECONOMIC DAMAGES, ATTORNEYS’ FEES (EXCEPT AS SET FORTH IN SECTION 7.5), DIRECT OR
INDIRECT, OR INJURY TO PROPERTY OR LOST PROFITS, REGARDLESS OF WHETHER THE PARTY OR PARTIES SHALL
BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW OF THE POSSIBILITY OF THE
FOREGOING.

          10. Confidentiality.

               10.1 Limitations on Disclosure. The Parties and their counsel shall take reasonable
measures to ensure that the terms of this Confidential Settlement Agreement remain strictly
confidential and are not disclosed to any third party, except as specifically set forth in Sections
10.1.1 through 10.1.6.

               10.1.1 Pursuant to Order. The terms of this Confidential Settlement Agreement may be
disclosed pursuant to any order or subpoena requiring disclosure in any legal proceeding, but only
so long as the Party that has the disclosure requirement provides the other Parties with written
notice of such requirement not later than [**] after first learning of such order or subpoena.

               10.1.2 Professional Advisers. The terms of this Confidential Settlement Agreement may
be disclosed to any Party’s attorney, accountant, auditor, or insurer, but only so

- 11 -

 

long as any such person or entity is informed of this confidentiality provision and agrees in
writing to take reasonable measures to keep the terms of this Confidential Settlement Agreement
strictly confidential and prevent their disclosure to any third party except as permitted by
Section 10.1.5.

               10.1.3 Merck. The terms of this Confidential Settlement Agreement may be disclosed to
Merck, but only so long as Merck is informed of this confidentiality provision and agrees in
writing to take reasonable measures to keep the terms of this Confidential Settlement Agreement
strictly confidential and prevent their disclosure to any third party except as permitted by
Section 10.1.5 and 10.1.6.

               10.1.4 Licensees. A redacted version of this Confidential Settlement Agreement may be
disclosed to any licensee of a license agreement entered into pursuant to the 2001 Research
Agreement solely to the extent required by such license agreement with any of the Parties, provided
that all terms and provisions of this Confidential Settlement Agreement that need not be disclosed
to such licensee are redacted, and further provided that the disclosing Party takes reasonable
measures to keep the terms of this Confidential Settlement Agreement strictly confidential and
prevent their disclosure to any third party except as permitted by Section 10.1.5. Prior to making
any such disclosure, the Party intending to make the disclosure shall provide the other Parties
with a redacted version of this Confidential Settlement Agreement to be disclosed pursuant to this
Section 10.1.4 and give the other Parties a reasonable opportunity to object to the content of the
redacted document on the ground that it would disclose more information than authorized by this
Section 10.1.

               10.1.5 Required by Law. The terms of this Confidential Settlement Agreement may be
disclosed as required by law, including but not limited to any disclosure required to be made
pursuant to the reporting obligations applicable to nonprofit corporations or recipients of federal
funds or as required by the Securities and Exchange Commission or other such regulatory
authorities, or as required by the Office of the Attorney General of the Commonwealth of
Massachusetts. Prior to making any such disclosure, the Party intending to make the disclosure
shall provide the other Parties with a redacted version of this Confidential Settlement Agreement
to be disclosed pursuant to this Section 10.1.5 and give the other Parties a reasonable opportunity
to object to the content of the redacted document on the ground that it would disclose more
information than authorized by this Section 10.1.5.

               10.1.6 Public Information. Any term of this Confidential Settlement Agreement may be
disclosed publicly only to the extent such term is publicly known or widely disseminated to the
public, other than through the wrongful act of the Party or its Affiliates, prior to the disclosure
by the Party.

               10.2 Media Inquiries. Notwithstanding the generality of the restrictions imposed by
Section 10.1, a Party may disclose that there has been a settlement of the Parties’ disputes, the
terms of which settlement are confidential, and Alnylam may issue the press release attached hereto
as Exhibit K. No other statements or releases to the press shall be made by any Party concerning
the terms of this Confidential Settlement Agreement, except that the Parties may disclose the
information contained in Alnylam’s press release and may disclose that

- 12 -

 

pursuant to the settlement, The Tuschl II Patent Family became co-owned by MPG, Whitehead, MIT
and UMass.

     11. Final and Binding Agreement. Each Party agrees that it has made such
investigation of all matters pertaining to this Confidential Settlement Agreement that such Party
deems necessary. Each Party agrees that it is not relying in any manner on any statement, promise,
representation or omission, whether oral or written, express or implied, made by any person or
entity, not specifically set forth in this Confidential Settlement Agreement (or in an exhibit
attached hereto), including but not limited to any statement, promise, representation or omission
concerning The Tuschl I Patent Family, The Tuschl II Patent Family or the Litigation. Each Party
acknowledges that, after execution of this Confidential Settlement Agreement, such Party may
discover facts different from or in addition to those which it now knows or believes to be true.
Nevertheless, each Party agrees that this Confidential Settlement Agreement shall be and remain in
full force and effect in all respects, notwithstanding such different or additional facts. This
Confidential Settlement Agreement is intended to be, and is, final and binding on all Parties,
regardless of any allegation of misrepresentation, mistake of law or fact, or any other
circumstances whatsoever, unless a Party knowingly made a false representation or warranty in this
Confidential Settlement Agreement.

     12. Assignment. This Confidential Settlement Agreement is personal to the Parties and
no rights or obligations under this Confidential Settlement Agreement may be assigned by any Party
without the prior written consent of the other Parties.

     13. Compromise Agreement. This Confidential Settlement Agreement is a compromise and
settlement of disputed Claims and is not intended to be, nor shall be construed as, any admission
of liability or wrongdoing by any Party.

     14. Warranties and Representations.

          14.1 No Assignment of Claims. Each Party warrants and represents that such Party has
not sold, assigned, conveyed, pledged, encumbered, or otherwise in any way transferred to any
person or entity any Claim released by such Party pursuant to this Confidential Settlement
Agreement.

          14.2 No Assignment of Patent Ownership. Each Party warrants and represents that such
Party has not sold, assigned, conveyed, pledged, encumbered, or otherwise in any way transferred to
any person or entity any ownership or partial ownership interest in the Tuschl I Patent Family as
of the Effective Date.

          14.3 Independent Advice. Each Party warrants and represents that it has received or
had the opportunity to obtain independent legal advice from such Party’s attorney with respect to
the rights and obligations arising from, and the advisability of executing, this Confidential
Settlement Agreement.

          14.4 Due Authorization. Each Party warrants and represents that such Party is fully
entitled and duly authorized to enter into and deliver this Confidential Settlement Agreement. In
particular, and without limiting the generality of the foregoing, each Party

- 13 -

 

warrants and represents that it is fully entitled to grant the releases, enter into the
covenants, and undertake the obligations set forth herein.

          14.5 Corporate Power. The Parties warrant and represent that they are duly organized
and validly existing, and that they have full corporate power and authority to enter into this
Confidential Settlement Agreement and carry out the provisions hereof.

          14.6 Survival of Warranties. All warranties and representations set forth in this
Confidential Settlement Agreement (and in any exhibit attached hereto) shall survive the execution
and delivery of this Confidential Settlement Agreement.

          14.7 Licenses Granted Under 2001 Research Agreement.

               14.7.1 MIT License Grants. MIT warrants and represents that the only licenses that
MIT has granted pursuant to the 2001 Research Agreement under which a current or former licensee
currently has any rights or Claims are licenses to [**].

               14.7.2 Max Planck License Grants. Max Planck warrants and represents that it has not
granted any licenses pursuant to the 2001 Research Agreement under which a current or former
licensee currently has any rights or Claims.

     15. General Provisions.

          15.1 Choice of Law. This Confidential Settlement Agreement shall be governed by and
construed in accordance with the internal substantive laws of the Commonwealth of Massachusetts as
applied to contracts made and wholly performed within the Commonwealth of Massachusetts without
regard to its principles of choice of law. Each Party agrees that it shall not argue to any court
or other tribunal that the substantive laws of the state Commonwealth of Massachusetts do not
govern the construction or enforcement of this Confidential Settlement Agreement.

          15.2 No Oral Modification. No provision of this Confidential Settlement Agreement can
be waived, modified, amended, or supplemented except in a writing that expressly references this
Confidential Settlement Agreement and is signed by an authorized representative of each Party to be
bound.

          15.3 No Construction Against Drafter. Because all Parties have participated in
drafting, reviewing, and editing the language of this Confidential Settlement Agreement, no
presumption for or against any Party arising out of drafting all or any part of this contract shall
be applied in any action whatsoever.

          15.4 No Third-Party Beneficiaries. The Parties agree that there are no third-party
beneficiaries of any kind to this Confidential Settlement Agreement.

          15.5 Entire Agreement. This Confidential Settlement Agreement, along with the
Prosecution Guidelines attached as Exhibit A hereto, constitutes the entire agreement and
understanding between the Parties and supersedes all prior agreements and understandings as to its
subject matter, whether written or oral, with the exception of (1) the Exclusive License

- 14 -

 

Agreement; (2) the Assignment Agreement; (3) the 2001 Research Agreement, as amended by this
Confidential Settlement Agreement and the Exclusive License Agreement; (4) the 2003 Therapeutics
Agreement, as amended by this Confidential Settlement Agreement and the Exclusive License
Agreement; (5) the Alnylam License Agreement; and (6) the Amendment to the Alnylam License
Agreement.

          15.6 Severability. Should a provision of this Confidential Settlement Agreement be
found to be void, illegal or unenforceable, the remaining provisions of this Confidential
Settlement Agreement will not cease to be effective. The Parties shall negotiate in good faith to
replace such void, illegal or unenforceable provision by a new provision which reflects, to the
extent possible, the original intent of the Parties.

          15.7 Headings. The subject headings used in this Confidential Settlement Agreement
are included for purposes of convenience only, and shall not affect the construction or
interpretation of any provisions of this document.

          15.8 Notices. Any notices to be given under this Agreement shall be delivered
personally, or sent by registered or certified mail, courier, fax or e-mail, to the party at its
address below or at such other address as may be supplied in writing.

Notices as described above shall be provided to the following:

If to MAX PLANCK:

Managing Director

Max Planck Innovation GmbH

Amalienstr. 33

80799 Munich

Germany

If to ALNYLAM:

Alnylam Pharmaceuticals, Inc.

300 Third Street

Cambridge, MA 02142

Attn: General Counsel

If to MIT:

Massachusetts Institute of Technology

77 Massachusetts Ave.

Cambridge, MA 02139-4307

Attn: Office of the General Counsel

If to WHITEHEAD:

Vice President

Whitehead Institute

- 15 -

 

Nine Cambridge Center

Cambridge, MA 02142-1493

If to UMASS:

Office of Technology Management

University of Massachusetts

222 Maple Avenue

Higgins Building, Suite 114

Shrewsbury, MA 01545

Attn: Executive Director

          15.9 Execution in Counterparts. This Confidential Settlement Agreement may be
executed and delivered in any number of counterparts. When each Party has signed and delivered at
least one counterpart to all other Parties, each counterpart shall be deemed an original and all
counterparts, taken together, shall constitute one and the same agreement, which shall be binding
and effective on the Parties hereto. This Confidential Settlement Agreement shall not become
binding on the Parties hereto unless it has been executed by authorized representatives of all
Parties.

- 16 -

 

     IN WITNESS WHEREOF, the Parties have approved and executed this Confidential Settlement
Agreement as of the Effective Date.

	 	 	 	 	 	 	 

	MAX-PLANCK-GESELLSCHAFT ZUR FÖRDERUNG DER WISSENSCHAFTEN e.V
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Joe Gelies	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:
	 	Authorized Representative	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	MAX-PLANCK-INNOVATION GmbH	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Joe Gelies	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Its: Managing Director	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	UNIVERSITY OF MASSACHUSETTS	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James P. McNamara, Ph.D	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:
	 	Executive Director, Office of Technology Management	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	and	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Deirdre Heatwole	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:
	 	General Counsel	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	ALNYLAM PHARMACEUTICALS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Barry Greene	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:
	 	President and Chief Operating Officer	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	MASSACHUSETTS INSTITUTE OF TECHNOLOGY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ R. Gregory Morgan	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:
	 	VP & General Counsel	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	WHITEHEAD INSTITUTE FOR BIOMEDICAL RESEARCH	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Martin Mullins	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:
	 	Vice President	 	 
	 

	 	 	 	 

	 	 

- 17 -

 

EXHIBIT A

 

 

Exhibit A

ASSIGNMENT

     WHEREAS, MAX-PLANCK-GESELLSCHAFT ZUR FÖRDERUNG DER WISSENSCHAFTEN E.V., a corporation duly
organized and existing under the laws of Germany (“MPG”), represents and warrants that it is the
owner of 100% of the entire right, title and interest in and to the TUSCHL II UNITED STATES PATENTS
AND PATENT APPLICATIONS, defined as the patents and patent applications filed in the United States
Patent and Trademark Office set forth in the attached Schedule A, entitled “RNA Interference
Mediating Small RNA Molecules” by Thomas Tuschl, Sayda Elbashir, and Winfried Lendeckel, and any
divisionals, continuations, continuation-in-part applications directed to the same subject matter,
continued prosecution applications, reissues or reexaminations of any of the foregoing filed in the
United States Patent and Trademark Office. (For the avoidance of doubt, TUSCHL II UNITED STATES
PATENTS AND PATENT APPLICATIONS does not include any Tuschl II patents or patent applications filed
outside of the United States, and no rights or interest in any such patents or patent applications
are granted under this Assignment.)

     WHEREAS, MASSACHUSETTS INSTITUTE OF TECHNOLOGY, a corporation duly organized and existing
under the laws of the Commonwealth of Massachusetts (“M.I.T.”), WHITEHEAD INSTITUTE FOR BIOMEDICAL
RESEARCH, a Delaware corporation (“WHITEHEAD”), and the UNIVERSITY OF MASSACHUSETTS, a public
institution of higher education duly organized and existing under the laws of the Commonwealth of
Massachusetts (“UMASS”), each wish to acquire an undivided share of all right, title and interest
in and to the TUSCHL II UNITED STATES PATENTS AND PATENT APPLICATIONS.

     WHEREAS, MPG wishes to transfer, convey and assign to each of M.I.T., WHITEHEAD and UMASS an
undivided share of all right, title and interest in and to the

 

 

TUSCHL II UNITED STATES PATENTS AND PATENT APPLICATIONS, and to retain all remaining right,
title and interest in and to the TUSCHL II UNITED STATES PATENTS AND PATENT APPLICATIONS for
itself, so that MPG, M.I.T., WHITEHEAD and UMASS shall be joint owners of the TUSCHL II UNITED
STATES PATENTS AND PATENT APPLICATIONS.

     NOW THEREFORE, for good and valuable consideration, the adequacy of which is hereby
acknowledged, MPG hereby transfers, conveys and assigns to each of M.I.T., WHITEHEAD and UMASS an
undivided share of all right, title and interest in and to the TUSCHL II UNITED STATES PATENTS AND
PATENT APPLICATIONS, including but not limited to the right to sue for past, present and future
infringement of same. MPG retains an undivided share of all right, title and interest in and to
the TUSCHL II UNITED STATES PATENTS AND PATENT APPLICATIONS.

- 2 -

 

     IN WITNESS WHEREOF, THROUGH the signatures of their authorized representatives below, the
parties hereto have caused this Assignment to be made and executed as of this 14th day of March,
2011.

	 	 	 	 	 	 	 

	MAX-PLANCK-GESELLSCHAFT ZUR FÖRDERUNG DER WISSENSCHAFTEN e.V
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Joe Gelies	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:
	 	Authorized Representative	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	MASSACHUSETTS INSTITUTE OF TECHNOLOGY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ R. Gregory Morgan	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:
	 	VP and General Counsel	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	WHITEHEAD INSTITUTE FOR BIOMEDICAL RESEARCH	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Martin A. Mullins	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:
	 	Vice President	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	UNIVERSITY OF MASSACHUSETTS	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James P. McNamara, Ph.D.	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:
	 	Executive Director, Office of Technology Management	 	 
	 

	 	 	 	 

	 	 

- 3 -

 

SCHEDULE A

 

 

Schedule A

TUSCHL II UNITED STATES PATENTS AND PATENT APPLICATIONS

	 	 	 	 	 
	U.S. Application No.	 	U.S. Patent No.
	10/433,050
	 	 	 	 
	10/832,248

	 	 	7,078,196	 
	10/832,257
	 	 	 	 
	10/832,432

	 	 	7,056,704	 
	11/142,865
	 	 	 	 
	11/142,866
	 	 	 	 
	11/634,138
	 	 	 	 
	11/634,129
	 	 	 	 
	12/260,443
	 	 	 	 
	12/537,602
	 	 	 	 
	12/537,632
	 	 	 	 
	12/591,829
	 	 	 	 
	12/683,070
	 	 	 	 
	12/683,081
	 	 	 	 
	12/794,071
	 	 	 	 
	12/819,444
	 	 	 	 
	12/834,311
	 	 	 	 
	12/835,086
	 	 	 	 
	12/838,786
	 	 	 	 
	12/879,300
	 	 	 	 
	12/897,374
	 	 	 	 

 

 

EXHIBIT B

 

 

EXHIBIT B

Exhibit B has been filed separately as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q
for the fiscal period ended March 31, 2011 and is incorporated herein by reference.

 

 

EXHIBIT C

 

 

Exhibit C

Tuschl I and II Prosecution Guidelines

General Principle:

Maximize the commercial potential of the T1 and T2 inventions by prosecuting their respective
United States patent applications in a manner that leads to valid and enforceable T1 and T2 claims
that are not substantially different in scope than those currently pending.

Specifics

     1. The parties shall agree to execute the necessary documents to create common ownership of
the T1 and T2 patent families in the United States. When common ownership is established, except
as provided for herein, no party may dedicate to the public or convey to any other party by
assignment, license or otherwise any interest that they acquired in T2 nor may they make any
statements that T2 intellectual property is free to be used for research purposes.

     2. Prosecution of T1 and T2 United States applications shall be undertaken in a coordinated
manner, controlled by Max Planck consistent with the guidelines set forth in this document. The
other parties shall have the right to comment on all substantive prosecution matters and such
comments shall be considered in good faith by Max Planck. A law firm to be agreed upon by the
parties would prosecute T1 outside of the United States. UMass shall control prosecution of T1
outside the US in accordance with these guidelines, using such law firm to oversee such
prosecution. The other parties shall have the right to comment on all substantive prosecution
matters and such comments shall be considered in good faith by UMass.

     3. Max Planck shall diligently prosecute the [**].

     4. A third party gatekeeper/arbiter shall be identified along with a simple, speedy dispute
resolution mechanism in the event there is disagreement among the parties regarding the
implementation of these rules and guidelines. The arbiter shall initially be [TO BE AGREED BY THE
PARTIES]. When a dispute arises among the parties, the arbiter shall consider in good faith the
position(s) of each party in the dispute which the parties shall have at least fifteen (15) days to
submit to such arbiter. The arbiter shall render his/her decision in an unbiased manner in
accordance with the General Principles and Specifics set forth in this document within five (5)
business days of receiving all relevant documentation from the parties and, at the arbiter’s
discretion, discussion with the parties; provided, however, that the arbiter shall hold no ex parte
meetings or substantive conversations with the parties without the consent of all of the parties.
In the event that the arbiter is no longer willing or capable of serving in this function, a
replacement shall be selected as follows: each of the parties shall nominate five potential
replacements and any potential arbiter appearing on each of the relevant lists shall be the arbiter
and the parties shall attempt in good faith to secure such arbiter’s services. In the event that
there is more than one arbiter that appears on each such list, the parties shall agree in good
faith which arbiter to approach first. In the event that there are no arbiters in common, the
parties shall repeat the process until an arbiter appears on each such list or all of the parties
can otherwise agree on an arbiter.

 

 

     5. As soon as practical, an interview shall be arranged with the T1 and T2 patent examiners
jointly to discuss both patent families in a coordinated fashion to help optimize the prosecution
strategy going forward. A representative of each T1 owner shall be entitled to attend the
interview.

     6. A prosecution roadmap shall be created consistent with the guidelines above, for each
pending patent family, taking into consideration the specific issues raised in each case and
subject to the right of the other parties to comment and the dispute resolution mechanism. The
parties acknowledge that any such roadmap is subject to change and must be flexible.

     7. Where required, terminal disclaimers will be filed in both T1 and T2 patent applications.

 

 

Exhibit D

 

 

Exhibit D

US Tuschl I Patent Family

	 	 	 
	Application No	 	Patent No
	09/821,832
	 	 
	10/255,568
	 	 
	11/474,738
	 	 
	11/474,919
	 	 
	11/474,930
	 	 
	11/474,932
	 	 
	11/880,355
	 	 
	11/880,464
	 	 
	12/897,744
	 	 
	12/897,749
	 	 
	12/897,754
	 	 
	12/897,756
	 	 
	12/897,759
	 	 
	12/897,740
	 	 
	13/008,636
	 	 
	60/193,594
	 	 
	60/265,232
	 	 

 

 

EXHIBIT E

 

 

Exhibit E

Non-US Tuschl I Patent Family

	 	 	 	 	 	 	 	 	 
	Country	 	Application No	 	Patent No
	Australia

	 	 	2001249622	 	 	 	2001249622	 
	Australia

	 	 	2007214287	 	 	 	 	 
	Brazil

	 	PI01075365
	 	 	 	 
	Canada

	 	 	2404890	 	 	 	 	 
	European Patent Convention

	 	 	1922870.9	 	 	 	1309726	 
	European Patent Convention

	 	 	10184711.9	 	 	 	 	 
	European Patent Convention

	 	 	10184520.4	 	 	 	 	 
	European Patent Convention

	 	 	10184660.8	 	 	 	 	 
	European Patent Convention

	 	 	08168152.0	 	 	 	 	 
	Hong Kong

	 	 	09107803.3	 	 	 	 	 
	Israel

	 	 	151928	 	 	 	 	 
	Israel

	 	 	192467	 	 	 	 	 
	Israel

	 	 	202350	 	 	 	 	 
	Japan

	 	 	2001-573036	 	 	 	 	 
	Korea, Republic of

	 	 	10-2002-7012832	 	 	 	10-0919786	 
	Korea, Republic of

	 	 	10-2010-7014840	 	 	 	 	 
	Korea, Republic of

	 	 	2008-7005061	 	 	 	 	 
	New Zealand

	 	 	553687	 	 	 	553687	 
	New Zealand

	 	 	522045	 	 	 	522045	 
	New Zealand

	 	 	572384	 	 	 	 	 
	Patent Cooperation Treaty

	 	PCT/US01/10188
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Austria

	 	 	01922870.9	 	 	 	E450621	 
	Belgium

	 	 	01922870.9	 	 	 	1309726	 
	Switzerland

	 	 	01922870.9	 	 	 	1309726	 
	Cyprus

	 	 	01922870.9	 	 	 	1309726	 
	Germany

	 	 	01922870.9	 	 	 	60140676.1	 
	Denmark

	 	 	01922870.9	 	 	DK/EP1039726	 
	Spain

	 	 	01922870.9	 	 	 	1309726	 
	Finland

	 	 	01922870.9	 	 	 	1309726	 
	France

	 	 	01922870.9	 	 	 	1309726	 
	United Kingdom

	 	 	01922870.9	 	 	 	1309726	 
	Greece

	 	 	01922870.9	 	 	 	3071392	 
	Ireland

	 	 	01922870.9	 	 	 	1309726	 
	Italy

	 	 	01922870.9	 	 	20941BE/2010	 

 

 

	 	 	 	 	 	 	 	 	 
	Country	 	Application No	 	Patent No
	Liechtenstein

	 	 	01922870.9	 	 	 	1309726	 
	Luxemborg

	 	 	01922870.9	 	 	 	1309726	 
	Monaco

	 	 	01922870.9	 	 	 	1309726	 
	Netherlands

	 	 	01922870.9	 	 	 	1309726	 
	Portugal

	 	 	01922870.9	 	 	 	1309726	 
	Sweden

	 	 	01922870.9	 	 	 	1309726	 
	Turkey

	 	 	01922870.9	 	 	TR 201001272	 

- 2 -

 

EXHIBIT F

 

 

Exhibit F

US Tusch1 II Patent Family

	 	 	 	 	 
	U.S. Application No.	 	U.S. Patent No.
	10/433,050
	 	 	 	 
	10/832,248

	 	 	7,078,196	 
	10/832,257
	 	 	 	 
	10/832,432

	 	 	7,056,704	 
	11/142,865
	 	 	 	 
	11/142,866
	 	 	 	 
	11/634,138
	 	 	 	 
	11/634,129
	 	 	 	 
	12/260,443
	 	 	 	 
	12/537,602
	 	 	 	 
	12/537,632
	 	 	 	 
	12/591,829
	 	 	 	 
	12/683,070
	 	 	 	 
	12/683,081
	 	 	 	 
	12/794,071
	 	 	 	 
	12/819,444
	 	 	 	 
	12/834,311
	 	 	 	 
	12/835,086
	 	 	 	 
	12/838,786
	 	 	 	 
	12/879,300
	 	 	 	 
	12/897,374
	 	 	 	 

 

 

EXHIBIT G

 

 

Exhibit G

Non-US Tuschl II Patent Family

	 	 	 	 	 	 	 	 	 
	CountryName	 	Application No.	 	Patent Number
	Albania

	 	EP 01985833.1	 	 	 	1407044	 
	Albania

	 	AL-P-2008-2819	 	 	 	 	 
	Australia

	 	 	2010212438	 	 	 	 	 
	Australia

	 	 	 	 	 	 	2002235744	 
	Australia

	 	 	 	 	 	 	2007203385	 
	Austria

	 	 	 	 	 	EP1407044

	Belgium

	 	 	 	 	 	EP1407044

	Brazil

	 	PI 0115814-7	 	 	 	 	 
	Canada

	 	 	2,429,814	 	 	 	 	 
	China (People’s Republic)

	 	 	2009 10 148 888.2	 	 	 	 	 
	China (People’s Republic)

	 	 	2009 10 148 887.8	 	 	 	 	 
	China (People’s Republic)

	 	 	2009 10 148 886.3	 	 	 	 	 
	China (People’s Republic)

	 	 	 	 	 	ZL01820900.9

	Cyprus, Republic of

	 	 	 	 	 	EP1407044

	Czech Republic

	 	 	2003-1839	 	 	 	 	 
	Denmark

	 	 	 	 	 	EP1407044

	European Patent Convention

	 	 	10179952.6	 	 	 	 	 
	European Patent Convention

	 	 	10180025.8	 	 	 	 	 
	European Patent Convention

	 	 	10179947.6	 	 	 	 	 
	European Patent Convention

	 	 	07014533.9	 	 	 	 	 
	Finland

	 	 	 	 	 	 	1407044	 
	France

	 	 	 	 	 	EP1407044

	Germany

	 	 	 	 	 	EP1407044

 

 

	 	 	 	 	 	 	 	 	 
	CountryName	 	Application No.	 	Patent Number
	Greece

	 	 	 	 	 	EP1407044

	Hong Kong

	 	 	08105073.1	 	 	 	 	 
	Hong Kong

	 	 	10105412.7	 	 	 	 	 
	Hong Kong

	 	 	10105414.5	 	 	 	 	 
	Hong Kong

	 	 	10104709.2	 	 	 	 	 
	Hungary

	 		P03 02557	 	 	 	 	 
	India

	 	612/KOL NP/2003
	 	 	 	 
	India

	 	2718/KOL NP/2010
	 	 	 	 
	Ireland

	 	 	 	 	 	EP1407044

	Israel

	 	 	155991	 	 	 	 	 
	Israel

	 	 	207727	 	 	 	 	 
	Italy

	 	EP 01985833.1
	 	EP1407044

	Japan

	 	 	2010-046471	 	 	 	 	 
	Japan

	 	 	2009-210276	 	 	 	 	 
	Japan

	 	 	 	 	 	 	4 095 895	 
	Japan

	 	 	 	 	 	 	4494392	 
	Latvia

	 	 	 	 	 	EP1407044

	Liechtenstein

	 	 	 	 	 	EP1407044

	Lithuania

	 	 	 	 	 	EP1407044

	Luxembourg

	 	 	 	 	 	EP1407044

	Macedonia

	 	 	 	 	 	 	1407044	 
	Mexico

	 	 	 	 	 	 	257426	 
	Monaco

	 	 	 	 	 	 	1407044	 
	Netherlands

	 	EP 01985833.1
	 	 	 	 
	Netherlands

	 	 	 	 	 	 	1407044	 
	New Zealand

	 	 	 	 	 	 	525888	 
	Norway

	 	 	20032464	 	 	 	 	 
	Patent Cooperation Treaty

	 	PCT/EP01/13968
	 	 	 	 
	Poland

	 		P 365784	 	 	 	 	 
	Poland

	 		P 384789	 	 	 	 	 
	Portugal

	 	 	 	 	 	 	1407044	 
	Republic of Korea

	 	 	 	 	 	 	872437	 
	Republic of Korea

	 	 	 	 	 	 	10-0909681	 
	Romania

	 	 	 	 	 	 	1407044	 
	Russian Federation

	 	 	2003119457	 	 	 	2322500	 
	Russian Federation

	 	 	2007131270	 	 	 	 	 
	Singapore

	 	 	 	 	 	 	96891	 

- 2 -

 

	 	 	 	 	 	 	 	 	 
	CountryName	 	Application No.	 	Patent Number
	Slovenia

	 	 	 	 	 	 	1407044	 
	South Africa

	 	 	 	 	 	 	2003/3929	 
	Spain

	 	 	 	 	 	 	1407044	 
	Sweden

	 	 	 	 	 	 	1407044	 
	Switzerland

	 	 	 	 	 	EP1407044

	Turkey

	 	 	 	 	 	 	1407044	 
	United Kingdom

	 	 	 	 	 	EP1407044

- 3 -

 

EXHIBIT H

 

 

Exhibit H

SETTLEMENT AGREEMENT

     This Settlement Agreement is entered into as of the Effective Date by and between
Max-Planck-Gesellschaft zur Förderung der Wissenschaften e. V. (“MPG”), Max-Planck-Innovation GmbH
(“MI”) (collectively referred to herein as “Max Planck”), and Alnylam Pharmaceuticals, Inc.
(“Alnylam”), on the one hand, and Wolf, Greenfield & Sacks, PC (“Wolf Greenfield”), on the other
hand.

     This Settlement Agreement is made with respect to the lettered recitals below. The
Definitions set forth in Section 1 below apply to the recitals.

     A. WHEREAS, MPG and Wolf Greenfield are parties to the Litigation;

     B. WHEREAS, the Parties deem it to be in their best interests and to their mutual advantage to
settle their disputes on the terms and conditions set forth in this Settlement Agreement, without
admitting liability;

     NOW, THEREFORE, in consideration of all of the terms and conditions of this Settlement
Agreement, the Parties agree as follows:

     1. Definitions. The following words and phrases shall have the meanings set forth
below solely for purposes of this Settlement Agreement.

          1.1 “Claims” shall mean any and all claims, counterclaims, actions, causes of action, demands,
costs, and charges of whatever nature, whether known or unknown, including without limitation any
and all claims to recover attorneys’ fees and costs.

          1.2 “Effective Date” shall mean March 14, 2011.

          1.3 “Litigation” shall mean the civil action entitled Max-Planck-Gesellschaft zur Förderung
der Wissenschaften e.V. v. Wolf, Greenfield & Sacks, PC, pending in the United States District
Court for the District of Massachusetts as Civil Action No. 1:09-CV-11168-PBS.

          1.4 “Party” shall mean MPG, MI, Alnylam or Wolf Greenfield, and when used in the plural shall
mean all of them.

     2. Releases, Covenants Not to Sue, and Dismissals.

          2.1 Releases by MPG, MI and Alnylam. MPG, MI, and Alnylam, on behalf of themselves
and their predecessors, successors, and assigns, do hereby now and forever release and discharge
Wolf Greenfield, and its predecessors, successors, and assigns, and each of its respective current
and former shareholders, trustees, officers, directors, employees, agents, attorneys, insurers and
representatives (but only in the representatives’ capacities as such), from any and all Claims
concerning any act or omission occurring prior to or on the Effective Date, including without
limitation any and all Claims arising under, related to, or connected in any way with the
Litigation.

 

 

          2.2 Releases by Wolf Greenfield. Wolf Greenfield, on behalf of itself and its
predecessors, successors, and assigns, does hereby now and forever release and discharge MPG, MI,
and Alnylam and their predecessors, successors, and assigns, and each of their respective current
and former shareholders, trustees, officers, directors, employees, agents, attorneys, insurers and
representatives (but only in the representatives’ capacities as such), from any and all Claims
concerning any act or omission occurring prior to or on the Effective Date, including without
limitation any and all Claims arising under, related to, or connected in any way with the
Litigation.

          2.3 Covenant Not to Sue. The Parties shall not now or at any time in the future
initiate any legal proceeding anywhere in the world asserting any Claim released pursuant to
Sections 7.1 and 17.2. Any Party that breaches the obligations under this Section 7.5 (i) consents
to the dismissal of such legal proceeding and to the entry of a permanent injunction restraining
the breaching Party from initiating any future legal proceeding asserting any Claim released
pursuant to this Settlement Agreement; and (ii) shall be liable to the other Party for their
reasonable attorneys’ fees and costs incurred in securing the dismissal of such legal proceeding
and the entry of such permanent injunction.

          2.4 Dismissal of Litigation. Not later than three business days after the earlier of
(i) the entry by the District Court of the Vacatur requested in the Joint Stipulated Motion filed
pursuant to Section 2.5; or (ii) sixty (60) days after the Effective Date, the Parties shall file a
Stipulated Order of Dismissal, in the form of Exhibit A attached hereto, requesting the District
Court to dismiss with prejudice the Litigation and all Claims asserted therein.

          2.5 Joint Stipulated Motion for Vacatur. Not later than three business days after the
Effective Date, MPG and Wolf Greenfield shall file the Joint Stipulated Motion for Vacatur of the
Court’s September 14, 2010 Memorandum and Order (Dkt #108), in the form attached as Exhibit B
hereto.

     3. Further Assurances. Each Party covenants and agrees that it shall execute and
deliver such other documents as may be required to implement any provision of this Settlement
Agreement.

     4. Limitation of Remedies. IN NO EVENT SHALL THE PARTIES, THEIR TRUSTEES, DIRECTORS,
OFFICERS, EMPLOYEES AND AFFILIATES BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND,
FOR A BREACH OF THIS SETTLEMENT AGREEMENT, INCLUDING ECONOMIC DAMAGES, ATTORNEYS’ FEES (EXCEPT AS
PROVIDED IN SECTION 7.5), DIRECT OR INDIRECT, OR INJURY TO PROPERTY OR LOST PROFITS, REGARDLESS OF
WHETHER THE PARTY OR PARTIES SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN FACT SHALL
KNOW OF THE POSSIBILITY OF THE FOREGOING.

     5. Confidentiality.

          5.1 Limitations on Disclosure. The Parties and their counsel shall take all
reasonable measures to ensure that the terms of this Settlement Agreement remain strictly
confidential and are not disclosed to any third party, except as follows:

- 2 -

 

               5.1.1 Pursuant to Order. The terms of this Settlement Agreement may be disclosed
pursuant to any order or subpoena requiring disclosure in any legal proceeding, so long as the
Party that has the disclosure requirement provides the other Parties with written notice of such
requirement not later than [**] after first learning of such order or subpoena.

               5.1.2 Professional Advisers. The terms of this Settlement Agreement may be disclosed
to any Party’s attorney, accountant, auditor, or insurer, but only so long as any such person or
entity is informed of this confidentiality provision and agrees in writing to take all reasonable
measures to keep the terms of this Settlement Agreement strictly confidential and prevent their
disclosure to any third party except as permitted by Section 5.1.3.

               5.1.3 Required by Law. The terms of this Settlement Agreement may be disclosed as
required by law, including but not limited to any disclosure required to be made pursuant to the
reporting obligations applicable to nonprofit corporations or recipients of federal funds or as
required by the Securities Exchange Commission or other such regulatory authorities.

     6. Final and Binding Agreement. Each Party agrees that it has made such investigation
of all matters pertaining to this Settlement Agreement that such Party deems necessary. Each Party
agrees that it is not relying in any manner on any statement, promise, representation or omission,
whether oral or written, express or implied, made by any person or entity, not specifically set
forth in this Settlement Agreement. Each Party acknowledges that, after execution of this
Settlement Agreement, such Party may discover facts different from or in addition to those which it
now knows or believes to be true. Nevertheless, each Party agrees that this Settlement Agreement
shall be and remain in full force and effect in all respects, notwithstanding such different or
additional facts. This Settlement Agreement is intended to be, and is, final and binding on all
Parties, regardless of any allegation of misrepresentation, fraud, mistake of law or fact, or any
other circumstances whatsoever.

     7. Assignment. This Settlement Agreement is personal to the Parties and no rights or
obligations under this Settlement Agreement may be assigned by any Party without the prior written
consent of the other Parties.

     8. Compromise Agreement. This Settlement Agreement is a compromise and settlement of
disputed Claims and is not intended to be, nor shall be construed as, any admission of liability or
wrongdoing by any Party.

          9. Warranties and Representations.

          9.1 No Assignment of Claims. Each Party warrants and represents that such Party has
not sold, assigned, conveyed, pledged, encumbered, or otherwise in any way transferred to any
person or entity any Claim released by such Party pursuant to this Settlement Agreement.

          9.2 Independent Advice. Each Party warrants and represents that it has received or
had the opportunity to obtain independent legal advice from such Party’s attorney with respect to
the rights and obligations arising from, and the advisability of executing, this Settlement
Agreement.

- 3 -

 

          9.3 Due Authorization. Each Party warrants and represents that such Party is fully
entitled and duly authorized to enter into and deliver this Settlement Agreement. In particular,
and without limiting the generality of the foregoing, each Party warrants and represents that it is
fully entitled to grant the releases, enter into the covenants, and undertake the obligations set
forth herein.

          9.4 Corporate Power. The Parties warrant and represent that they are duly organized
and validly existing, and that they have full corporate power and authority to enter into this
Settlement Agreement and carry out the provisions hereof.

          9.5 Survival of Warranties. All warranties and representations set forth in this
Agreement shall survive the execution and delivery of this Settlement Agreement.

     10. General Provisions.

          10.1 Choice of Law. This Settlement Agreement shall be governed by and construed in
accordance with the internal substantive laws of the Commonwealth of Massachusetts as applied to
contracts made and wholly performed within the Commonwealth of Massachusetts without regard to its
principles of choice of law. Each Party agrees that it shall not argue to any court or other
tribunal that the substantive laws of the state Commonwealth of Massachusetts do not govern the
construction or enforcement of this Settlement Agreement.

          10.2 No Oral Modification. No provision of this Settlement Agreement can be waived,
modified, amended, or supplemented except in a writing that expressly references this Settlement
Agreement and is signed by an authorized representative of each Party to be bound.

          10.3 No Construction Against Drafter. Because all Parties have participated in
drafting, reviewing, and editing the language of this Settlement Agreement, no presumption for or
against any Party arising out of drafting all or any part of this contract shall be applied in any
action whatsoever.

          10.4 Entire Agreement. This Settlement Agreement constitutes the entire agreement and
understanding between the Parties and supersedes all prior agreements and understandings as to its
subject matter.

          10.5 Headings. The subject headings used in this Settlement Agreement are included
for purposes of convenience only, and shall not affect the construction or interpretation of any
provisions of this document.

          10.6 Notices. Any notices to be given under this Agreement shall be delivered
personally, or sent by registered or certified mail, courier, fax or e-mail, to the party at its
address below or at such other address as may be supplied in writing.

     Notices as described above shall be provided to the following:

If to Max Planck:

- 4 -

 

Managing Director

Max Planck Innovation GmbH

Amalienstr. 33

80799 Munich

Germany

If to Alnylam:

Alnylam Pharmaceuticals, Inc.

300 Third Street

Cambridge, MA 02142

Attn: General Counsel

If to Wolf Greenfield

Jason Honeyman

WOLF, GREENFIELD & SACKS, PC

600 Atlantic Avenue

Boston, Massachusetts 02210-2206

Phone: (617) 646-8222

Fax: (617) 646-8646

jhoneyman@wolfgreenfield.com

          10.7 Execution in Counterparts. This Settlement Agreement may be executed and
delivered in any number of counterparts. When each Party has signed and delivered at least one
counterpart to all other Parties, each counterpart shall be deemed an original and all
counterparts, taken together, shall constitute one and the same agreement, which shall be binding
and effective on the Parties hereto. This Settlement Agreement shall not become binding on the
Parties hereto unless it has been executed by authorized representatives of all Parties.

- 5 -

 

     IN WITNESS WHEREOF, the Parties have approved and executed this Settlement Agreement as of the
Effective Date.

	 	 	 	 	 	 	 

	MAX-PLANCK-GESELLSCHAFT ZUR FÖRDERUNG DER WISSENSCHAFTEN e.V
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Joe Gelies	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:
	 	Authorized Representative	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	MAX-PLANCK-INNOVATION GmbH
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Joe Gelies	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:
	 	Managing Director	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	ALNYLAM PHARMACEUTICALS, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Barry Greene	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:
	 	President and Chief Operating Officer	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	WOLF, GREENFIELD & SACKS, PC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jason Honeyman	 	 
	 

	 	 	 	 	 	 
	 
	 

	 	Its:
	 	Chairman of the firm	 	 
	 

	 	 	 	 	 	 

- 6 -

 

Exhibit A to Settlement Agreement

 

 

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF MASSACHUSETTS

	 	 	 	 	 	 	 

	MAX-PLANCK-GESELLSCHAFT ZUR

	 	 	)	 	 	 
	FOERDERUNG DER WISSENSCHAFTEN e.V.,

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Plaintiff

	 	 	)	 	 	CIVIL ACTION NO.
	v.

	 	 	)	 	 	1:09-CV-11168-PBS
	 

	 	 	)	 	 	 
	WOLF GREENFIELD & SACKS, PC,

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Defendant.

	 	 	)	 	 	 

MAX-PLANCK-GESELLSCHAFT ZUR FOERDERUNG DER

WISSENSCHAFTEN E.V. AND WOLF GREENFIELD & SACKS, PC’S

[PROPOSED] STIPULATED ORDER OF DISMISSAL

     Pursuant to Federal Rule of Civil Procedure 41(a), Plaintiff Max-Planck-Gesellschaft zur
Foerderung der Wissenschaften e.V. (“Max Planck”) and Defendant Wolf Greenfield & Sacks, PC (“Wolf
Greenfield”), by their attorneys, hereby stipulate and agree that this action be dismissed in its
entirety with prejudice and that all rights of appeal are waived. Each party shall bear its own
costs and attorney’s fees.

     IT IS SO STIPULATED.

 

 

	 	 	 

	MAX-PLANCK-GESELLSCHAFT ZUR

	 	WOLF GREENFIELD & SACKS, PC
	FOERDERUNG DER
	 	 
	WISSENSCHAFTEN E.V.
	 	 
	 
	 	 
	By its attorneys,

	 	By its attorneys,
	 
	 	 
	/s/ Michael E. Mone

	 	/s/ Richard M. Zielinski
	 

	 	 
	Michael E. Mone, BBO #351680

	 	Richard M. Zielinski, BBO #540060
	Catherine A. Ryan, BBO #655821

	 	Timothy J. Dacey, BBO #111800
	ESDAILE, BARRETT & ESDAILE

	 	Elizabeth K. Levine, BBO #658532
	75 Federal Street

	 	GOULSTON & STORRS, P.C.
	Boston, Massachusetts 02110

	 	400 Atlantic Avenue
	Telephone: (617) 482-0333

	 	Boston, Massachusetts 02110-3333
	 

	 	Telephone: (617) 482-1776
	 

	 	Facsimile: (617) 574-4112
	 
	 	 
	Dated: March __, 2011
	 	 

IT IS SO ORDERED on this the ____ day of ___________________________, 2011.

___________________________

The Honorable Patti B. Saris

United States District Judge

District of Massachusetts

Boston Division

 

 

Exhibit B to Settlement Agreement

Joint Motion for Vacatur

 

 

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF MASSACHUSETTS

	 	 	 	 	 	 	 

	MAX-PLANCK-GESELLSCHAFT ZUR

	 	 	)	 	 	 
	FOERDERUNG DER WISSENSCHAFTEN e.V.,

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Plaintiff

	 	 	)	 	 	CIVIL ACTION NO.
	v.

	 	 	)	 	 	1:09-CV-11168-PBS
	 

	 	 	)	 	 	 
	WOLF GREENFIELD & SACKS, PC,

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Defendant.

	 	 	)	 	 	 

MAX-PLANCK-GESELLSCHAFT ZUR FOERDERUNG DER

WISSENSCHAFTEN E.V. AND WOLF GREENFIELD & SACKS, PC’S

JOINT STIPULATED MOTION FOR VACATUR OF THIS COURT’S

SEPTEMBER 14, 2010 MEMORANDUM AND ORDER

     Whereas on September 14, 2010, this Court entered a Memorandum and Order in the
above-captioned case granting partial summary judgment to Plaintiff Max-Planck-Gesellschaft zur
Foerderung der Wissenschaften e.V. (“Max Planck”) and granting partial summary judgment to Wolf,
Greenfield and Sacks, PC (“Wolf Greenfield”), Dkt. No. 108; and

     Whereas the September 14, 2010 Memorandum and Order is an interlocutory order and this Court
has not entered a final judgment in the above-captioned case; and

     Whereas on December 22, 2010, Wolf Greenfield filed a motion for reconsideration of the
September 14, 2010 Memorandum and Order, Dkt. No. 125; and

     Whereas the parties in this action have reached an agreement to settle all claims and
counterclaims;

     Max-Planck and Wolf Greenfield hereby jointly and respectfully request that the Court’s
September 14, 2010 Memorandum and Order be vacated.

 

 

	 	 	 

	MAX-PLANCK-GESELLSCHAFT ZUR

	 	WOLF GREENFIELD& SACKS, PC
	FOERDERUNG DER WISSENSCHAFTEN
	 	 
	E.V. By its attorneys,
	 	 
	 
	 	 
	/s/

	 	By its attorneys,
	Michael E. Mone/BBO #351680

	 	/s/
	MMone@ebelaw.com

	 	Richard M. Zielinski, BBO #540060
	Catherine A. Ryan/BBO #655821

	 	Timothy J. Dacey, BBO #111800
	ESDAILE, BARRETT & ESDAILE

	 	Elizabeth K. Levine, BBO #658532
	75 Federal Street

	 	GOULSTON & STORRS, P.C.
	Boston, Massachusetts 02110

	 	400 Atlantic Avenue
	Telephone: (617) 482-0333

	 	Boston, Massachusetts 02110-3333
	 

	 	Telephone: (617) 482-1776
	 

	 	Facsimile: (617) 574-4112
	 
	 	 
	Dated: March 14, 2011
	 	 

CERTIFICATE OF SERVICE

     I hereby certify that this document filed through the ECF system will be sent electronically
to the registered participants as identified on the Notice of Electronic Filing and that all
counsel of record are so registered.

	 	 	 	 	 
	 	 	 
	 	/s/ Richard M. Zielinski
 	 
	 	Richard M. Zielinski 	 
	 	 	 
	 

- 2 -

 

EXHIBIT I

 

 

Exhibit I

Exhibit I has been filed separately as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q
for the fiscal period ended March 31, 2011 and is incorporated herein by reference.

 

 

EXHIBIT J

 

 

UNITED STATES DISTRICT COURT

DISTRICT OF MASSACHUSETTS

	 	 	 
	MAX-PLANCK-GESELLSCHAFT ZUR FÖRDERUNG
	 	 
	DER WISSENSCHAFTEN e.V.,
	 	 
	MAX-PLANCK-INNOVATION
	 	 
	GmbH, and ALNYLAM PHARMACEUTICALS, INC.,
	 	 
	 
	 	 
	Plaintiffs,
	 	 
	 
	 	 
	v.

	 	Civil Action No. 09-CV-1 1116-PBS
	WHITEHEAD INSTITUTE FOR BIOMEDICAL
	 	 
	RESEARCH, MASSACHUSETTS INSTITUTE OF
	 	 
	TECHNOLOGY, and BOARD OF TRUSTEES OF THE
	 	 
	UNIVERSITY OF MASSACHUSETTS,
	 	 
	 
	 	 
	Defendants.
	 	 

STIPULATION FOR DISMISSAL

 

 

     Pursuant to Federal Rule of Civil Procedure 41 (a), the parties in the above-entitled action,
by their attorneys, hereby stipulate and agree that this action be dismissed in its entirety with
prejudice and that all rights of appeal are waived. Each party shall bear its own costs and
attorney’s fees.

     IT IS SO STIPULATED.

	 	 	 
	MAX-PLANCK-GESELLSCHAFT ZUR

	 	WHITEHEAD INSTITUTE FOR BIOMEDICAL
	FÖRDERUNG DER WISSENSCHAFTEN e.V.;

	 	RESEARCH
	MAX-PLANCK-INNOVATION GmbH; and

ALNYLAM PHARMACEUTICALS, INC.

	 	

By its attorneys,
	

	 	 
	By their attorneys,

	 	/s/ Christopher M. Morrison        
	 

	 	 
	 

	 	Christopher M. Morrison (BBO 651335)
	/s/ Thomas F. Maffei        

	 	JONES DAY
	Thomas F. Maffei (BBO 313220)

	 	175 Federal St., Suite 501
	Scott McConchie (BBO 634127)

	 	Boston, MA 02110
	GRIESINGER, TIGHE & MAFFEI, LLP

	 	(617) 449-6999
	176 Federal Street Boston, Massachusetts

	 	
	 02110

	 	Glenn J. Pfadenhauer, pro hac 
	(617) 542-9900

	 	David C. Kiernan, pro hac
	
Morgan Chu, pro hac

	 	George A. Borden (BBO 552302)
WILLIAMS & CONNOLLY LLP
	David I. Gindler, pro hac

	 	725 Twelfth Street, NW
	Michael H. Strub, pro hac

	 	Washington, DC 20005
	IRELL & MANELL A LLP

	 	(202) 434-5000
	1800 Avenue of the Stars, Suite 900

	 	

	Los Angeles, CA 90067

	 	THE UNIVERSITY OF MASSACHUSETTS
	(310) 277-1010

	 	
	MASSACHUSETTS INSTITUTE OF

	 	By its attorneys,
	TECHNOLOGY

	 	
	 

	 	/s/ Donald R. Ware          
	By its attorneys,

	 	Donald R. Ware (BBO 516260)
	

	 	Barbara A. Fiacco (BBO 633618)
	/s/ Daryl L. Wiesen           

	 	FOLEY HOAG LLP
	Daryl L. Wiesen (BBO 634872)
	 	155 Seaport Boulevard Boston, MA 02210
	GOODWIN PROCTER LLP
	 	(617) 832-1000
	Exchange Place Boston, MA 02109-2881
	 	
	(617) 570-1000
	 	 
	Fax: (617) 523-1231
	 	 
	 
	 	 
	Dated: March 14, 2011
	 	 

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IT IS SO ORDERED on this the 21st day of March, 2011.

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Patti B. Saris
 	 
	 	The Honorable Patti B. Saris 	 
	 	United States District Judge

District of Massachusetts

Boston Division 	 
	 

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EXHIBIT K

 

 

Contacts:

Alnylam Pharmaceuticals, Inc.

Cynthia Clayton Senior Director, Investor Relations and

Corporate Communications

617-551-8207

Amanda Sellers (Media)

Spectrum

202-955-6222 x2597

Draft — Not for Release

Alnylam Pharmaceuticals Reaches Settlement in Litigation Regarding Tuschl Patents

Cambridge, Mass., March XX, 2011 - Alnylam Pharmaceuticals, Inc. (Nasdaq: ALNY), a leading
RNAi therapeutics company, today announced the signing of a global settlement agreement among
Alnylam, Max Planck Society (“Max Planck”), the Whitehead Institute for Biomedical Research
(“Whitehead”) and the University of Massachusetts (“UMass”) resolving their ongoing litigation
regarding the Tuschl patents. The Massachusetts Institute of Technology (“MIT”), formerly a party
to the litigation, has also agreed to the terms of the settlement.

“Today’s settlement provides for a favorable resolution of this dispute for all parties and
significantly optimizes the successful prosecution of both the Tuschl I and Tuschl II patent
families, which together represent critical innovations for the advancement of RNAi therapeutics as
breakthrough medicines,” said John Maraganore, Ph.D., Chief Executive Officer of Alnylam. “As for
Alnylam, this settlement enables continued focus on our business transformation with advancement of
innovative RNAi therapeutic products to patients.”

The litigation was initiated in June 2009 and scheduled for trial in March 2011 in the United
States District Court for the District of Massachusetts in Boston, Massachusetts. As part of the
settlement agreement, Max Planck, Whitehead, UMass, and MIT have agreed that future prosecution of
the Tuschl I and Tuschl II patent families in the United States should be coordinated and led by a
single party. Max Planck will assume that role, in addition to their ongoing leadership in the
continued prosecution of the Tuschl II patent family outside the United States. UMass will lead
future prosecution of the Tuschl I patent family outside the United States. Further, Alnylam has
granted UMass the right to sublicense the U.S. Tuschl II patent family to Merck, subject to certain
Alnylam third-party obligations and other limitations, in exchange for a share of certain future
sublicense income.

“We are very pleased that the settlement provides for coordinated prosecution of the Tuschl I and
Tuschl II patent families in the United States that will encourage further development of RNAi
therapeutics,” said Whitehead Institute Director David C. Page, M.D.

About RNA Interference (RNAi)

RNAi (RNA interference) is a revolution in biology, representing a breakthrough in understanding
how genes are turned on and off in cells, and a completely new approach to drug discovery and
development. Its discovery has been heralded as “a major scientific breakthrough

 

that happens once every decade or so,” and represents one of the most promising and rapidly
advancing frontiers in biology and drug discovery today which was awarded the 2006 Nobel Prize for
Physiology or Medicine. RNAi is a natural process of gene silencing that occurs in organisms
ranging from plants to mammals. By harnessing the natural biological process of RNAi occurring in
our cells, the creation of a major new class of medicines, known as RNAi therapeutics, is on the
horizon. Small interfering RNAs (siRNAs), the molecules that mediate RNAi and comprise Alnylam’s
RNAi therapeutic platform, target the cause of diseases by potently silencing specific mRNAs,
thereby preventing disease-causing proteins from being made. RNAi therapeutics have the potential
to treat disease and help patients in a fundamentally new way.

About Alnylam Pharmaceuticals

Alnylam is a biopharmaceutical company developing novel therapeutics based on RNA interference, or
RNAi. The company is leading the translation of RNAi as a new class of innovative medicines with a
core focus on RNAi therapeutics for the treatment of genetically defined diseases, including
ALN-TTR for the treatment of transthyretin-mediated amyloidosis (ATTR), ALN-PCS for the treatment
of severe hypercholesterolemia, and ALN-HPN for the treatment of refractory anemia. As part of its
“Alnylam 5x15TM” strategy, the company expects to have five RNAi therapeutic products
for genetically defined diseases in advanced stages of clinical development by the end of 2015.
Alnylam has additional partner-based programs in clinical or development stages, including
ALN-RSV01 for the treatment of respiratory syncytial virus (RSV) infection, ALN-VSP for the
treatment of liver cancers, and ALN-HTT for the treatment of Huntington’s disease. The company’s
leadership position on RNAi therapeutics and intellectual property have enabled it to form major
alliances with leading companies including Merck, Medtronic, Novartis, Biogen Idec, Roche, Takeda,
Kyowa Hakko Kirin, and Cubist. In addition, Alnylam and Isis co-founded Regulus Therapeutics Inc.,
a company focused on discovery, development, and commercialization of microRNA therapeutics;
Regulus has formed partnerships with GlaxoSmithKline and sanofi-aventis. Alnylam has also formed
Alnylam Biotherapeutics, a division of the company focused on the development of RNAi technologies
for application in biologics manufacturing, including recombinant proteins and monoclonal
antibodies. Alnylam scientists and collaborators have published their research on RNAi therapeutics
in over 100 peer-reviewed papers, including many in the world’s top scientific journals such as
Nature, Nature Medicine, Nature Biotechnology, and Cell. Founded in 2002, Alnylam maintains
headquarters in Cambridge, Massachusetts. For more information, please visit www.alnylam.com.

Alnylam Forward-Looking Statements

Various statements in this release concerning Alnylam’s future expectations, plans and prospects,
including without limitation, statements regarding Alnylam’s expectations with respect to its
“Alnylam 5x15” product strategy, Alnylam’s views with respect to the outcome of this settlement,
the likelihood of issuance of patents in the United States or elsewhere, and the strength,
enforceability and validity of any patents that do issue constitute forward-looking statements for
the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of
1995. Actual results may differ materially from those indicated by these forward-looking statements
as a result of various important factors, including risks related to obtaining,

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maintaining and protecting intellectual property and Alnylam’s ability to enforce its patents
against infringers and to defend its patent portfolio against challenges from third parties as well
as those risks more fully discussed in the “Risk Factors” section of its most recent quarterly
report on Form 10-K on file with the Securities and Exchange Commission. 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 does not assume any obligation to
update any forward-looking statements.

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