Document:

EX-10.79

 Exhibit 10.79 
 LOAN AGREEMENT 
 THIS LOAN AGREEMENT (as amended, modified or
supplemented from time to time, “Agreement”), dated as of the      day of March, 2013, by and between (i) EAGLEBANK (the “Lender”), and (ii) COMSTOCK REDLAND ROAD, L.C., a Virginia limited
liability company (the “Borrower”), recites and provides: 
 RECITALS: 

R-1. The Borrower has acquired a certain development site consisting of acreage approved for a 117-unit multi-family apartment building,
together with the improvements thereon, whether now existing or hereinafter constructed, located on Redland Road and Yellowstone Way, Montgomery County, Maryland, as more particularly described on Exhibit A attached hereto (the
“Property”), on which the Borrower intends to undertake certain development improvements. 
 R-2. Subject to the terms
of this Agreement, the Lender agrees to make an acquisition and development loan (the “Loan”) to the Borrower, as more particularly described in Section One below, for the purpose of financing the acquisition and the Development (as
hereinafter defined) of the Property. 
 R-3. The Lender and the Borrower agree that the Loan will be made and advanced upon and
subject to the terms, covenants and conditions set forth in this Agreement. 
 R-4. Simultaneously herewith the Lender is making
a separate credit facility available to the Borrower (the “AD&C Loans”) for acquisition, development and construction of housing with respect to certain property adjacent to the Property (the “Housing Parcel”) that has been
approved for construction of 39 single family detached or townhome housing units, which was to have been subdivided pursuant to a record plat (the “Record Plat”) to create the Property and the Housing Parcel each as a separate subdivided
record lot; however, the Record Plat has not been recorded and the Property and the Housing Parcel are part of one single subdivided record lot known as P-146 in Montgomery County, Maryland. 

R-5. The Borrower has requested that the Lender waive the condition to closing the Loan that the Record Plat be recorded, and the Lender
is amenable to such request provided the Borrower performs its duties and obligations strictly in accordance with the terms and conditions of this Agreement. 
 AGREEMENT 
 ACCORDINGLY, for and in consideration of the foregoing Recitals
which are a material part of this Agreement and not mere prefatory language, and of the mutual covenants and conditions set forth in this Agreement, and for other good and valuable consideration the receipt and sufficiency of which are hereby
acknowledged, the Lender and the Borrower agree as follows: 

  
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 SECTION ONE 
 THE LOAN 
 1.1 Amount. The maximum principal amount that may be
advanced under the Loan shall not exceed the lesser of (i) Two Million Four Hundred Thousand and No/100 Dollars ($2,400,000.00), or (ii) sixty-five percent (65%) of the cost of acquisition of the Property and the Development thereof
in accordance with a budget approved by the Lender, or (iii) sixty percent (60%) of the discounted (“When Developed”) value of the Property pursuant to the Appraisal (hereinafter defined) and any appraisals which may be engaged
by the Lender from time to time subsequent to the date hereof. The Loan will be evidenced by a Promissory Note made by the Borrower payable to the order of the Lender (as the same may be amended, renewed, restated, supplemented or substituted from
time to time, the “Note”) which shall be governed by Maryland law. 
 1.2 Purpose. The Borrower will use the
Loan proceeds as follows: (i) up to One Million Five Hundred Thousand and No/100 Dollars ($1,500,000.00) toward the purchase price of the Property plus up to Seventy Thousand and No/100 Dollars ($70,000.00 toward closing costs (the
“Acquisition Advance”) shall be applied to costs (including closing costs) of acquisition of the Property; and (ii) up to Eight Hundred Thirty Thousand and No/100 Dollars ($830,000.00) (the “Development Advance” or if more
than one “Development Advances”) shall be used for the Development of the Property in accordance with a Development Budget that shall have been approved by the Lender in advance and in accordance with plans and specifications to be
submitted to and approved by the Lender, and with advances to be made as the work progresses, all as set forth in this Agreement. The Lender shall not be obligated to make any Development Advances until the Record Plat is recorded except for
interest on the Loan for the first ninety (90) days following the Loan closing, notwithstanding the provisions of this Loan Agreement for the Interest Reserve, as hereinafter provided. For purposes of this Agreement, the term
“Development” shall mean, generally, (a) land clearing and rough grading; (b) provision of storm drainage structures and facilities, sediment control devices, base paving of streets, curbs and gutters; (c) providing sewer
and water distribution systems and erecting temporary street signs; (d) provision of underground electric and gas utility lines, cable television easements and easements for private utility companies to install telephone lines and other
utilities; and (e) other subdivision improvements as required by governmental authorities in order for use and occupancy permits to issue, all in accordance with final site plan review by Montgomery County, Maryland and the Record Plat. The
Development Budget for purposes of the Development Advance and portions thereof shall include the foregoing Development costs together with real estate taxes, an interest reserve to be withheld from loan proceeds and applied monthly to payment of
accrued interest as hereinafter set forth, and other expenses approved by the Lender. Certain other costs normally considered part of development costs shall be deferred and paid for by the Borrower out of its own funds, including by way of example
and not limitation, final paving of streets, site amenities, landscaping and erosion control. 
 1.3 Record Plat. The
Borrower shall use commercially reasonable efforts with the highest due diligence to cause the Record Plat to be approved by applicable governmental authorities and recorded. The terms and conditions with respect to the Record Plat are as follows:

  
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	 	(a)	 If the Record Plat, in form as shall have been approved by the Lender, has not been recorded within ninety (90) days from the closing of the Loan,
an Event of Default shall have occurred on the ninety-first (91st) day following the closing. 

  

	 	(b)	The Deed of Trust (hereinafter defined) shall initially encumber the Property and the Housing Parcel as security for the Loan. Upon recordation of the Record Plat, the
Deed of Trust shall be amended to reflect the new legal description and the Lender’s loan policy of title insurance shall be appropriately endorsed in form satisfactory to the Lender in all respects. 

 

	 	(c)	Provided there has then occurred no Event of Default hereunder or under the AD&C Loans, following recordation of the Record Plat, if (i) the Borrower sells the
Property and upon closing of such sale pays the Loan in full, the Lender shall release the Property from the lien of the Deed of Trust, or (ii) the Borrower determines to develop the Property and transfer the Property to an affiliate, the
Lender shall release the Property from the lien of the Deed of Trust and simultaneously therewith the Property shall be encumbered by a new deed of trust (the “Apartment Parcel Deed of Trust”) as security for the Loan as well as
cross-collateral as security for the Loan and the AD&C Loans. 

  

	 	(d)	If applicable under Subparagraph 1.3(c) above, the Apartment Parcel Deed of Trust shall be in the form as attached to this Agreement as Exhibit B and shall
constitute a first lien on the Property. 

  

	 	(e)	The Leases Assignment (hereinafter defined) shall encumber all leases, rents and profits with respect to the Property and the Housing Parcel. The Property may be
released from the Leases Assignment in the event of (i) sale and payment in full of the Loan as contemplated in Subparagraph 1.3(c) above or (ii) transfer of the Property to an affiliate, in which event a new assignment of leases and rents
in form substantively identical to the Leases Assignment shall be recorded against the Property simultaneously with such release. 

  

	 	(f)	UCC-1 Financing Statements that constitute a fixture filing shall be recorded against the Property and the Housing Parcel. Such UCC-1 Financing Statements may be
terminated as to the Property in the event of (i) sale and payment in full of the Loan as contemplated in Subparagraph 1.3(c) above or (ii) transfer of the Property to an affiliate, in which event a new UCC-1 Financing Statement in form
substantively identical to the initial instrument shall be filed against the Property simultaneously with such termination. 

 1.4 Guarantor. Comstock Holding Companies, Inc. (the “Guarantor”) shall guarantee the payment and performance of the Borrower’s obligations, covenants and agreements under the Loan
and, as evidenced by the Loan Documents, and shall also guarantee the Carve Out Obligations (defined on Exhibit C attached hereto), which guaranty shall be evidenced by an instrument of unlimited and unconditional guaranty of payment,
performance and completion from the Guarantor for the benefit of the Lender, in form and substance satisfactory to the Lender (the “Guaranty”). 

  
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 1.5 Term. The Note shall mature twelve (12) months after the date of closing on
the Loan (the “Maturity”). It is acknowledged and agreed that notwithstanding any provisions herein, the Borrower has not applied for, nor has the Lender made any commitment with respect to, any extension of such Maturity. Upon any
application for an extension, any approval of an extension on any terms would be contingent upon the usual and customary underwriting procedures of EagleBank, including without limitation, full credit and collateral evaluation and review, the
approval of the loan committee of EagleBank, and payment to the Lender of extension fees as determined by the Lender. 
 1.6
Interest Rate. Commencing on the closing of the Loan, the unpaid balance of each of the Note outstanding from time to time shall bear interest and be payable at the floating rate per annum equal to three percent (3%) above the thirty
(30) day LIBOR Rate (hereinafter defined), rounded upwards, if necessary, to the nearest one-eighth of one percent (0.125%). The LIBOR rate means, for each calendar month, the annualized weighted average of the 30-day London Interbank Offered
Rates (at approximately 11:00 a.m. London time) for U.S. Dollar transactions on the day that is two (2) business days prior to the first day of that calendar month, as reported by Bloomberg Business News; if Bloomberg Business News is not
available, the Lender shall select a similar source for the LIBOR index and shall notify the Borrower of such selection. If no LIBOR index is available, or if the Lender determines in its sole discretion that any reported LIBOR rate is unreliable,
the Lender may select an alternative index upon notice to the Borrower of such selection. Interest shall be calculated using a 360-day year, based upon the actual number of days for which the calculation is being made. Notwithstanding the above, in
no event shall the Note bear interest at a rate below the floor interest rate of five percent (5%) per annum at any time (the “Interest Rate Floor”). 
 1.6 Interest Reserve. From the proceeds of the Loan, One Hundred Twenty Thousand and No/100 Dollars ($120,000.00) shall not be disbursed but shall be reserved by the Lender for the payment of
interest on the Loan (the “Interest Reserve”) until such reserve is exhausted. Notwithstanding the foregoing or any provision of the Loan Documents to the contrary, the Lender shall not be obligated to make any disbursements from the
Interest Reserve if any Event of Default shall have occurred, and further, notwithstanding the foregoing or any provision of any of the Loan Documents to the contrary, nothing contained herein shall be deemed to release or in any way to relieve the
Borrower from its obligation under the Note to pay interest as provided in the Note. Each disbursement from the Interest Reserve shall constitute a disbursement of principal of the Loan and shall be added to the then outstanding principal balance of
the Loan. 
 1.7 Real Estate Tax Reserve. From the proceeds of the Loan, Sixty Thousand and No/100 Dollars ($60,000.00)
shall not be disbursed but shall be reserved by the Lender (the “Taxes Reserve”) for the payment of real estate taxes and other governmental impositions against the Property (collectively, “Taxes”) until such reserve is
exhausted. Notwithstanding the foregoing or any provision of the Loan Documents to the contrary, the Lender shall not be obligated to make any disbursements from the Taxes Reserve if any Event of Default shall have occurred, and further,
notwithstanding the foregoing or any 

  
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provision of any of the Loan Documents to the contrary, nothing contained herein shall be deemed to release or in any way to relieve the Borrower from its obligation under the Loan Documents to
pay Taxes as they become due. Each disbursement from the Taxes Reserve shall constitute a disbursement of principal of the Loan and shall be added to the then outstanding principal balance of the Loan. 

1.8 Collateral. The Loan shall be secured by, among other things, the following: 

 

	 	(i)	A first lien deed of trust, security agreement and fixture filing (as the same may be amended, restated, supplemented or substituted, the “Deed of Trust”) on
the Property and the Housing Parcel; 

  

	 	(ii)	An assignment of Leases and Rents on the Property and the Housing Parcel (as the same may be amended, restated, supplemented or substituted, the “Leases
Assignment”); 

  

	 	(iii)	Assignments of all Development documents including, without limitation, plans and specifications, permits, architect’s contracts, engineering contracts, and
Development contracts (the “Documents Assignment”); 

  

	 	(iv)	Consents to Assignment executed by each of the general contractor, architect and project engineer for the Development (the “Consents”);

  

	 	(v)	An Environmental Indemnity Agreement made by the Borrower and the Guarantor for the benefit of the Lender (as the same may be amended, restated, supplemented or
substituted, the “Environmental Indemnity”); 

  

	 	(vi)	Such UCC-1 Financing Statements as the Lender may determine to be necessary or desirable. 

1.9 Equity Requirement. As a condition of the Loan, as of the closing of the Loan the Borrower shall have made an equity
investment in the Property in an amount not less than One Million Five Hundred Thousand and No/100 Dollars ($1,500,000.00), and shall have provided reasonable evidence of such investment to the Lender in the form of cash investment or mezzanine
financing acceptable to the Lender in its sole discretion. 
 1.10 Cross Defaulted Loan. An event of default under the
AD&C Loans (sometimes herein collectively called the “Cross-Defaulted Loan”) shall constitute an Event of Default under the Loan Documents. From and after recordation of the Record Plat, release of the Property from the lien of the
Deed of Trust, and recordation of the Apartment Parcel Deed of Trust, (i) the Property shall secure, in addition to the Loan, the AD&C Loans, and (ii) the Housing Parcel shall secure, in addition to the AD&C Loans, the Loan. In
addition, simultaneous closing on the AD&C Loans shall be a condition to closing on the Loan. 
 1.11 Deposit
Relationship. As a condition of the Loan, the Borrower shall establish its primary operating account and all escrow accounts hereunder with the Lender and shall maintain such accounts with the Lender throughout the term of the Loan. In addition,
the Borrower and/or Guarantor and/or any related entities shall maintain an aggregate minimum monthly average aggregate deposit balance with the Lender of ten percent (10%) of the combined outstanding principal balances of the Loan

  
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and the Cross-Defaulted Loan, tested quarterly, with the first quarterly test period commencing on April 1, 2013 and tested at June 30, 2013. Such deposits shall be held in demand
deposits or money market accounts. If at any time under any of the Loan Documents the Lender is collecting deposits for the payment of insurance premiums and/or real estate taxes, the amount(s) on deposit, to the extent unapplied as of the date of
any such semi-annual test, shall be counted toward the foregoing deposit balance requirements. The foregoing deposit balance requirement is in addition to any deposit balance requirement under the terms of the loan documents for any other loan or
loans by the Lender to the Borrower, the Guarantor or any affiliate(s) of the Borrower or the Guarantor. The failure to comply with the foregoing deposit balance requirements shall not constitute a default under the Loan; however, interest shall
accrue on all amounts outstanding under the Loan at one-quarter of one percent (0.25%) plus the rate of interest then payable under the Note (and the Interest Rate Floor shall also increase by one-quarter of one percent (0.25%)) from the date of
such failure until such time as the deposit balance requirement is satisfied at the next quarterly test. 
 1.12 Fees.
The Borrower shall pay to the Lender a fee for the Loan in the amount of Twelve Thousand and No/100 Dollars ($12,000.00), one-half of which has been received by the Lender and the balance of which shall be paid upon closing of the Loan. The Lender
acknowledges receipt from the Borrower of Twelve Thousand Five Hundred and No/100 Dollars ($12,500.00), for application to the Lender’s third-party costs and towards the Lender’s underwriting in connection with the Loan (including without
limitation fees of appraisers, consultants and legal counsel), any unused balance of which may be applied to the foregoing Loan fee. 
 1.13 Intercreditor Agreement. It is understood that, contemporaneously herewith, the Borrower has borrowed One Million One Hundred Ten Thousand and No/100 Dollars ($1,110,000.00) (the
“Subordinate Loan”) from Eagle Commercial Ventures, LLC (“Subordinated Lender”). As a condition of closing the Loan, Subordinated Lender shall enter into a Subordination and Standstill Agreement with the Lender (the
“Intercreditor Agreement”), in form and substance satisfactory to the Lender in all respects, pursuant to which Subordinated Lender shall subordinate all of its rights in and to the Subordinate Loan to the Lender’s rights, remedies
and security under the Loan Documents. 
 SECTION TWO 
 PAYMENTS, COMPUTATIONS, FEES, CHARGES AND PROTECTIVE ADVANCES 
 2.1
Payments. All payments due with respect to this Agreement or the Loan shall be made in immediately available funds to the Lender at such place as designated by the Lender from time to time. The Lender is authorized, but shall be under no
obligation, to charge any deposit account maintained by the Borrower with the Lender or any affiliate of the Lender for any payments due to the Lender with respect to this Agreement or the Loan. Payments shall be applied, at Lender’s sole
discretion: (i) first, to payment of accrued and unpaid interest, if any; (ii) second, to payment of any principal then due, if any; (iii) third, to late charges, if any; (iv) fourth, to reasonable attorneys’ fees and costs
of collection; and (v) fifth, to reduce the outstanding principal balance of the Note until such principal shall have been fully repaid. All payments hereunder shall be made without offset, demand counterclaim, deduction, abatement, defense, or
recoupment, each of which the Borrower hereby waives. 

  
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 2.2 Late Charges. If any payment due under the Note is not made within ten
(10) days of its due date, the Borrower shall pay to the Lender upon demand (which may be in the form of the usual monthly billing or invoice) a late charge equal to five percent (5%) of the amount of such payment. 

1.3. Default Rate. After an Event of Default (hereinafter defined), the interest which accrues on the Note shall be increased to
the Default Rate (as defined in the Note). 
 1.4 Computations. Interest and fees on the Loan shall be computed on the
basis of a year of three hundred sixty (360) days and actual days elapsed. 
 1.5 Prepayment. The Borrower may
prepay the Note in whole or in part without premium or penalty at any time upon ten (10) days prior written notice to the Lender. Partial prepayments shall be applied to installments of principal in their inverse order of maturity, if
applicable. Amounts prepaid under the Note may not be re-borrowed. 
 1.6 Indebtedness. As used in this Agreement, the
term “Indebtedness” means all present and future indebtedness of the Borrower to the Lender arising out of or in connection with the Note or any of the other Loan Documents. 

SECTION THREE 

CONDITIONS 

3.1 Conditions Precedent to Closing. In addition to any other conditions stated in this Agreement, the following conditions must
be satisfied prior to Lender closing on the Loan. 
 (a) Loan Documents. Receipt by Lender of appropriately completed and
duly executed originals of this Agreement, the Note, the Guaranty, the Deed of Trust, the Leases Assignment, the Documents Assignment, the Consents, the Environmental Indemnity, UCC-1 Financing Statements and Intercreditor Agreement, all as Lender
may require (collectively, together with any other documents executed and delivered in connection with the Indebtedness, the “Loan Documents”). 
 (b) Organizational Documents. The Borrower and each entity comprising the Borrower shall supply to the Lender, to the extent it has not previously done so in any prior transaction with the Lender:
(i) a currently certified copy of its Articles of Organization and all amendments thereto; (ii) evidence satisfactory to the Lender and its counsel that it is in good standing in the jurisdiction where organized and qualified to do
business in every jurisdiction in which the nature of its businesses or its properties makes such qualification necessary; (iii) resolutions authorizing the due execution and delivery of the Loan Documents to which it is a party; and
(iv) certified copies of its Operating Agreement and all amendments thereto. The Articles of Organization and the Operating Agreement of Borrower and each entity comprising the Borrower shall not be amended, changed or modified in any respect
without prior written consent of the Lender. In addition, the Guarantor shall supply, to the extent it has not previously done so in any prior transaction with the Lender: (i) a currently certified copy of its Articles of

  
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Incorporation and all amendments thereto; (ii) evidence satisfactory to Lender and its counsel that it is in good standing in the jurisdiction where organized and qualified to do business in
every jurisdiction in which the nature of its businesses or its properties makes such qualification necessary; (iii) resolutions authorizing the due execution and delivery of the Loan Documents to which it is a party and a certificate of
incumbency; and (iv) certified copies of its By-Laws and all amendments thereto. The Articles of Incorporation and the Bylaws of the Guarantor shall not be amended, changed or modified in any respect without the prior written consent of the
Lender; provided, however, that on the condition that the Lender is given thirty (30) days advance written notice, the Lender hereby consents to the Guarantor’s change in corporate domicile from Delaware to Virginia and all amendments to
its organizational documents as are reasonably required to effect such change in domicile subsequent to the closing of the Loan; provided further that UCC-1 financing statements shall be filed in the changed domicile at the cost and expense of the
Borrower. 
 (c) Opinion. Receipt by the Lender of the opinion(s) of the counsel for Borrower and the Guarantor, in form
and content satisfactory to the Lender, in its sole, but reasonable, discretion. 
 (d) Insurance. Receipt by the Lender
of certificate(s) of insurance to evidence a fully paid policy or policies of comprehensive public liability insurance naming Lender as an additional insured thereunder in an amount not less than Two Million and No/100 Dollars ($2,000,000.00) in the
aggregate with not less than One Million and No/100 Dollars ($1,000.000.00) per occurrence; in any event, the amount of all insurance shall be sufficient to prevent any co-insurance contribution on any loss, with each policy providing for a thirty
(30) day prior written notice of cancellation, amendment or alteration. 
 (e) Operating Account. The Borrower shall
have established its primary operating account with the Lender. 
 (f) Financing Statements. The financing statements
necessary to perfect the Lender’s security interest in the personal property subject to the Deed of Trust, and in any other collateral requiring the filing of a financing statement for perfection of a lien thereon, shall be duly filed in all
appropriate offices and jurisdictions, all other financing statements covering any of such personal property shall be terminated or the Lender shall be reasonably satisfied that such terminations are forthcoming, and filing and recording receipts
evidencing such filings and terminations shall be delivered to Lender, all in form and substance satisfactory to the Lender. 

(g) Property Documents. The Lender shall have received and approved in its sole discretion, the following: 

(1) Appraisals. An appraisal of the Property, prepared by an appraiser acceptable to the Lender, in form and
content acceptable to the Lender, conforming to all regulatory and internal appraisal guidelines applicable to or established by the Lender, in its sole, absolute, nonreviewable discretion, reflecting a “when developed” discounted value
satisfactory to the Lender (the “Appraisal”); 

  
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 (2) Title Insurance. A commitment for title insurance (the
“Title Commitment”) insuring the first priority lien of the Deed of Trust in the aggregate amount of the Note and the AD&C Loans, containing no exceptions unacceptable to the Lender, issued in the name of the Lender by a title company
acceptable to the Lender and in an amount equal to the aggregate principal amount of the Note and the AD&C Loans. The Title Commitment and the title policy issued pursuant thereto (the “Title Policy”) shall reflect that all
requirements for issuance of the Title Policy have been satisfied, and shall contain such other endorsements or coverages as the Lender may require. 
 (3) Survey. A current survey and legal description of the Property and the Housing Parcel satisfactory to the Lender from a registered land surveyor of the State of Maryland, which survey shall
show all easements, rights of way and other matters of record, shall locate all existing improvements on the Property and the Housing Parcel, shall contain metes and bounds descriptions of each applicable constituent portion of the Property
acceptable to the Lender and its counsel, shall generally show a state of facts acceptable to the Lender, and shall contain a surveyor’s certificate satisfactory to the Lender. 

(4) Subdivision Plat. Approval by the Lender and its construction consultant of the form of Record Plat to be
recorded. 
 (5) Development Approvals. Copies of the certified site plan for the Property showing,
without limitation, evidence satisfactory to the Lender that the Property can be developed without any requirement for development of the Housing Parcel. 
 (6) Development and Construction Budgets. Final budget for the Development for the Property which shall have been reviewed and approved by the Lender in its sole discretion and by the Lender’s
Development and construction consultant (the “Lender’s Inspector”). It is understood that the Development budget may be a combined budget for development work on the Housing Parcel, in which event the Lender will allocate funding
under the Loan and the AD&C Loans based upon percentage of work completed as determined by the Lender’s Inspector. 
 (7) Development Documents. The Plans and Specifications, Development Schedule and any and all other Development documents requested by the Lender and/or the Lender’s Inspector, which shall
have been reviewed and approved by the Lender in its sole discretion and by the Lender’s Inspector. 

  
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 (8) Flood Hazard. Evidence that no part of the Property or the
Housing Parcel is located in a special flood hazard area. 
 (9) Public Utilities. Evidence to the effect
that sanitary sewer, water, electric, gas, telephone and other public utilities are available and adequate to serve the Property and the Housing Parcel. 
 (10) Licenses and Permits. Copies of all licenses and permits in connection with the Property and the Housing Parcel, including without limitation licenses, permits, proffers and other conditions
to final subdivision and site plan approval for the Property and the Housing Parcel. 
 (11) Consultant’s
Review. Satisfactory review and analysis by the Lender’s construction consultant of the Development plans, documents and budgets. 
 (12) Zoning. Receipt by the Lender of a zoning endorsement to the Title Policy acceptable to the Lender or such other written evidence as is acceptable to the Lender that the Property and the
Housing Parcel are zoned consistent with the uses contemplated beyond any possibility of appeal and can be developed as proposed as a matter of right, and to the effect, further, that there are no pending proceedings, either administrative,
legislative or judicial, which would in any manner adversely affect the status of the zoning with respect to the Property and the Housing Parcel or any part thereof. 

(13) Marketing Report. Receipt and satisfactory review and analysis by the Lender of a marketing report.

 (h) No Default. No event shall have occurred and be continuing that constitutes an Event of Default (as defined
below). 
 (i) Representations. All representations and warranties contained in this Agreement shall be true and correct
in every material respect as of the date of closing of the Loan. 
 (j) Satisfactory Documents. All documents delivered
pursuant to this Agreement must be in form and substance satisfactory to the Lender and its counsel and all legal matters incident to this Agreement must be satisfactory to Lender’s counsel. 

  
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 (k) Identification. As required by federal regulation, closing the Loan is contingent
upon satisfactory verification of identity of the signatories and verification that none of the Borrower or the Guarantor or any signers is restricted from conducting business in the United States. 

3.2 Conditions Precedent to Advances of Loan. In addition to any other conditions stated in this Agreement, the following
conditions related to the Development must be satisfied prior to any disbursements under the Loan and all of the following matters shall have been approved by the Lender. 
 (a) Permits. Copies of any and all building and similar permits required in connection with the Development, or such portion thereof for which advances are requested, together with such evidence as
the Lender may require to the effect that all fees for such permits have been paid. Satisfactory evidence shall be submitted to the Lender that all governmental approvals necessary for the Development, or such portion thereof for which advances are
requested, have been obtained. The Lender shall also receive satisfactory evidence that all applicable safety, ecological and environmental laws and any other codes or regulations affecting the Development and/or proposed use of the Property have
been complied with. 
 (b) Plans and Specifications. Two (2) sets of complete copies of the final Plans and
Specifications of the Development, which Plans and Specifications shall be satisfactory to the Lender in all respects. The Lender’s review of the Plans and Specifications is solely for the benefit of the Lender, and the Lender’s approval
thereof shall not be deemed in any respect to be a representation or warranty, expressed or implied, that the Development will be sound, have a value of any particular magnitude or otherwise satisfy a particular standard. Prior to any advances for
hard costs, the Borrower shall furnish the Lender with copies of the Montgomery County-approved stamped Plans, together with such evidence as the Lender may require to the effect that such Plans and Specifications have been approved by all
governmental and quasi-governmental authorities having or claiming jurisdiction, and together with a final Development Budget which must be satisfactory to the Lender in its discretion. 

(c) Trade Payment Breakdown. A breakdown of total development costs, which shall include a draw schedule (the “Development
Budget”) containing reasonable details of amounts anticipated to be payable for each category of work to be performed and materials to be supplied in connection with the Development, and a projected schedule for the progress of the Development,
all in such form and containing such details as the Lender shall require. Any change orders shall be subject to the Lender’s prior approval. No hard costs shall be advanced under the Loan until such time as the Development Budget has been
approved by the Lender in its sole discretion. The Borrower may, from time to time, request reallocation of amounts in the Development Budget based upon such reasonable supporting documentation justifying such reallocation as may be approved by the
Lender; any such reallocation shall be subject to the Lender’s approval in its sole discretion. 
 (d) Development
Schedule. A projected Schedule (“Development Schedule”) for the progress of the Development of the Property and a projection of cash flow, each in such form and containing such details as the Lender shall require. The Borrower shall be
required to diligently pursue 

  
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and proceed with the Development in accordance with the Development Schedule to completion. Failure of the Borrower to meet the requirements of the Development Schedule for completion of
Development shall constitute an Event of Default under this Agreement. 
 (e) General Contractor. All contracts for
Development shall be subject to the Lender’s approval. Each Development contract shall be assigned to the Lender effective on a default under any of the Loan Documents. Each Development contractor shall consent to such assignment and agree, in
the event of any such default, to continue performance of the contract for the Lender, if the Lender so requests. Comstock Homes of Washington, L.C., an affiliate of the Guarantor, is hereby approved as the general contractor for Development. Prior
to any advances for Development costs, the Borrower shall furnish the Lender with a copy of the contractor’s license for that portion of the Development. The Borrower shall also furnish the Lender with copies of licenses for all major
subcontractors. 
 (f) Architect’s and Engineer’s Certificate. The architect and the engineer for the
Development shall be subject to the Lender’s approval. In addition, the contracts with the architect and the engineer shall be subject to the Lender’s approval. A certificate from the architect and/or project engineer will be required to
the effect that the Development, if completed in accordance with the Plans and Specifications, will comply with all federal, state, County and local laws, statutes, ordinances, codes, regulations, rules or other laws applicable to the Development
(“Applicable Laws”). Prior to any advances for Development costs, the Borrower shall furnish the Lender with a copy of the engineer’s license and the architect’s license. 

(g) Lender’s Development Consultant. All draw requests shall be submitted to the Lender and the Lender’s Inspector for
review and approval. The Borrower shall be responsible for payment of all of the Lender’s Inspector’s fees. 
 3.3
Provisions Governing Disbursements of Loan. Disbursements of the Loan shall be governed by the following provisions: 

(a) The Development shall be performed by the Borrower in strict accordance with all applicable (whether present or future) laws,
ordinances, codes, rules, regulations, requirements and orders of any governmental or regulatory authority having or claiming jurisdiction. The Development shall be in strict accordance with all applicable use or other restrictions and the
provisions of any prior declarations, covenants, conditions, restrictions and zoning ordinances and regulations. 
 (b) The
Borrower shall have submitted to the Lender and the Lender’s Inspector such information as may be requested by the Lender or the Lender’s Inspector to verify the Development costs which are to be incurred in connection with the
Development. The Lender shall not be obligated to authorize disbursement of Loan proceeds with respect to the Development for an amount in excess of the Development costs to be incurred in connection therewith as verified by the Lender or the
Lender’s Inspector pursuant to the provisions of the preceding sentence. The funding of each draw request is subject to an inspection and approval by the Lender’s Inspector. 

  
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 (c) Loan proceeds will be advanced in installments as the Development progresses in
accordance with the terms of this Agreement to finance the Development in accordance with the Plans and Specifications, but no more often than once monthly, provided that the Lender is satisfied that the amounts available under the Loan will be
sufficient to complete the work and pay or provide for all reasonably anticipated Development costs through the required Development completion date under the Development Schedule. In the event the Lender determines that the amounts available under
the Loan, together with any additional cash provided by the Borrower to the Lender, if any, is insufficient to complete the Development in such manner as the Lender may require, the Borrower shall provide such funds necessary to complete the
Development. Except for advances for materials and supplies to be delivered to the Property, as to which no retainage will be required, advances of the Loan shall be subject to withholding of retainage in the amount of ten percent (10%) of
direct Development costs approved by the Lender or the Lender’s Inspector, and at the Lender’s discretion of labor and materials brought into the Development and eligible for payment on a trade payable basis. 

(d) Advances of the Loan shall be conditioned upon the Lender’s receipt of (i) written certification by parties approved by the
Lender that the work which is the basis of the requested advance was completed in accordance with the approved Plans and Specifications and within the cost estimates approved by the Lender (or such adjustments of cost estimates of line items as
shall be required and approved by the Lender, provided that sufficient funds to complete the Development will be available under such adjusted estimates), to the satisfaction of the Lender, and (ii) evidence that at that time all necessary
certificates required to be obtained from any board, agency or department (government or otherwise) have been obtained. All documents required to be submitted to the Lender as a condition of each disbursement shall be on standard AIA forms and shall
be furnished to the Lender at the Lender’s address set forth in this Agreement. The Lender shall have at least ten (10) business days after receipt of the foregoing documentation prior to funding an approved advance. 

(e) The Lender shall have received a notice of title continuation or an endorsement to the title insurance policy with respect to the
Property theretofore delivered to the Lender, showing that since the last preceding advance, there has been no change in the status of title and no other exception not theretofore approved by the Lender, which endorsement shall have the effect of
advancing the effective date of the policy to the date of the advance then being made and increasing the coverage of the policy by an amount equal to the advance then being made, if the policy does not by its terms provide automatically for such an
increase. 
 (f) Before making the first advance of Loan Proceeds, the Borrower shall have provided to the Lender satisfactory
documentary evidence that the general contractor has obtained a Basic Business License from the State of Maryland and such license is in effect. 

  
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 (g) Before making any advance of Loan proceeds, the Lender may require the Borrower to
obtain from any contractor or materialmen it may engage in connection with the Development, acknowledgements of payment and releases of liens and rights to claim liens, if applicable, down to the date of the last preceding advance and concurrently
with the final advance. All such acknowledgements and releases shall be in form and substance satisfactory to the Lender. 
 (h)
The Lender shall not be obligated to make the final advance of Loan proceeds hereunder, which shall include the retainage described above, unless (i) the Lender’s Inspector has certified to the Lender on standard AIA forms that the work is
complete; (ii) the Lender has received evidence satisfactory to it that all work requiring inspection by governmental or regulatory authorities having or claiming jurisdiction has been duly inspected and approved by such authorities and by any
rating or inspection organization, bureau, association, or office having or claiming jurisdiction; (iii) that completion of the Development has occurred free and clear of all mechanics’ or materialmen’s liens and any bills or claims
for labor, materials and services in connection with the completion of the Development; and (iv) certificates from the Borrower’s architect, engineer and/or contractor, and, if required, from the Lender’s Inspector, certifying that
the Development has been completed in accordance with, and as completed comply with, the Plans and Specifications and all laws and governmental requirements. All fees and costs of the Lender’s Inspector shall be paid by the Borrower.

 (i) The Lender shall not be obligated to make any advances of Loan proceeds hereunder unless, in the reasonable judgment of
the Lender, all work completed at the time of the application for advance has been performed in a good and workmanlike manner, and all materials and fixtures usually furnished and installed at that stage of the development have been furnished and
installed, and no default which has not been cured has occurred under this Agreement or any of the documents evidencing, securing or guaranteeing the Loan. 
 SECTION FOUR 
 REPRESENTATIONS AND WARRANTIES 

In order to induce the Lender to extend credit to the Borrower, the Borrower and the Guarantor each make the following representations
and warranties as to itself: 
 4.1 Organization. The Borrower and each entity comprising the Borrower is a limited
liability company duly organized, validly existing and in good standing under the laws of the Commonwealth of Virginia and is duly qualified as a foreign limited liability company and in good standing under the laws of each other jurisdiction in
which such qualification is required. The Guarantor represents and warrants that it is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and is duly qualified as a foreign corporation and in
good standing under the laws of each other jurisdiction in which such qualification is required. 
 5.2 Execution and
Delivery. The Borrower and each entity comprising the Borrower has the power, and has taken all of the necessary actions, to execute and deliver and perform its obligations under the Loan Documents, and the Loan Documents, when executed and
delivered, will be binding obligations of each such entity enforceable in accordance with their respective terms. 

  
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 4.3 Power. Each of the Borrower and each entity comprising the Borrower has the power
and authority to own its properties and to carry on its business as now being conducted. 
 4.4 Financial Statements. Al
financial statements and information delivered to the Lender are correct and complete in all material respects and present fairly the financial conditions, and reflect all known liabilities, contingent and otherwise, of the Borrower and the
Guarantor as of the dates of such statements and information, and since such dates no material adverse change in the assets, liabilities, financial condition, business or operations of the Borrower or the Guarantor has occurred. 

4.5 Taxes. All tax returns and reports of the Borrower and the Guarantor required by law to be filed have been duly filed, and all
taxes, assessments, other governmental charges or levies (other than those presently payable without penalty or interest and those that are being contested in good faith in appropriate proceedings) upon the Borrower and/or the Guarantor and upon any
of their respective properties, assets, income or franchises, that are due and payable have been paid. 
 4.6 Litigation.
There is no action, suit or proceeding pending or, to the knowledge of the Borrower or the Guarantor, threatened against or affecting the Borrower or the Guarantor that, either in any case or in the aggregate, may result in any material adverse
change in the business, properties or assets or in the condition, financial or otherwise, of the Borrower or the Guarantor, or that may result in any material liability on the part of the Borrower or the Guarantor that would materially and adversely
affect the ability of the Borrower or the Guarantor to perform its and/or their obligations under the Loan Documents, or that questions the validity of any of the Loan Documents or any action taken or to be taken in connection with the Loan
Documents. 
 4.7 No Breach. The execution and delivery of the Loan Documents, and compliance with the provisions of the
Loan Documents, will not conflict with or violate any provisions of law or conflict with, result in a breach of, or constitute a default under, the organizational documents of the Borrower, or any judgment, order or decree binding on the Borrower,
or any other agreements to which the Borrower is a party. 
 4.8 No Defaults. To the best of the Borrower’s
knowledge, the Borrower is not in default with respect to any debt, direct or indirect, upon or as to which the Borrower has any liability or obligation. 
 4.9 Compliance. The Borrower is in compliance in all material respects with all applicable laws and regulations, including, without limitation, the Employee Retirement Income Security Act of 1974,
as amended (“ERISA”). 

  
 15 

 410 Approvals. No authorizations, approvals or consents of, and no filings and
registrations with, any governmental or regulatory authority or agency, are necessary for the execution, delivery or performance of the Loan Documents by the Borrower. 
 4.11 Title to Assets. The Borrower has good and marketable title to all of its assets, subject only to the liens and security interests permitted by this Agreement. 

4.12 Use of Proceeds. The proceeds of the Loan shall be used only for the purposes described in this Agreement. The proceeds of
the Loan shall not be used to purchase or carry any margin stock, as such term is define din Regulation U of the Board of Governors of the Federal Reserve System. 
 4.13 Vacant Status of Property and Housing Parcel. Seneca Concrete, Inc., former tenant of a portion of the Property and/or the Housing Parcel, has vacated its leased premises, and the Property and
the Housing Parcel are vacant and free of any tenancy that would or might impair development thereof. 
 SECTION FIVE 

COVENANTS OF BORROWER AND GUARANTOR 
 In consideration of credit extended or to be extended by the Lender, the Borrower covenants and agrees as follows: 
 5.1 Financial Information. The Borrower and the Guarantor shall each deliver to the Lender: (i) with respect to the Borrower, each year within ninety (90) days after the close of its
fiscal year, financial statements prepared in accordance with standard accounting principles consistently applied, certified as true and correct by an officer of each such entity; (ii) with respect to the Guarantor, each year within ninety
(90) days after the close of its fiscal year, audited financial statements; (iii) each year within thirty (30) days after filing, a copy of each such entity’s federal income tax return and all schedules thereto, provided that in
the event of such extension such entity shall provide the Lender with a copy of the federal income tax return and all schedules thereto within thirty (30) days of the filing of same with the Internal Revenue Services, and (iv) promptly
upon the Lender’s request, such financial and other information as the Lender reasonably may require from time to time. All financial statements shall be in such reasonable detail and shall be accompanied by such certificates of the Borrower or
the Guarantor, as applicable, as may reasonably be required by the Lender. 
 5.2 Taxes. All tax returns and reports of
the Borrower required by law to be filed have been duly filed, and all taxes, assessments, other governmental charges or levies (other than those presently payable without penalty or interest and those that are being contested in good faith in
appropriate proceedings) upon the Borrower and upon the Borrower’s properties, assets, income or franchises, that are due and payable, have been paid. 
 5.3 Compliance with Laws. The Borrower shall comply with all applicable laws and regulations including, without limitation, ERISA. 

  
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 5.4 Maintain Existence. The Borrower and the Guarantor each shall maintain its
existence in good standing, maintain and keep its properties in good condition (ordinary wear and tear excepted), maintain adequate insurance for all of its properties with financially sound and reputable insurers. The Borrower shall remain in the
same line of business as it is on the date of this Agreement and shall not enter into any new lines of business without the prior written consent of the Lender. 
 5.5 Notices. As soon as it has actual knowledge, the Borrower shall notify the Lender of the institution or threat of any material litigation or condemnation or administrative proceeding of any
nature involving the Borrower. 
 5.6 Books and Records. The Borrower shall maintain complete and
accurate books of account and records. The principal books of account and records shall be kept and maintained at 1886 Metro Center Drive, 4th Floor, Reston, VA 10190. The Borrower shall not remove such books of account and records without giving the Lender at
least thirty (30) days prior written notice. The Borrower, upon reasonable notice from the Lender, shall permit the Lender, or any officer, employee or agent designated by the Lender, to examine the books of account and records maintained by
the Borrower, and agree that the Lender or such officer, employee or agent may audit and verify the books and records. The Borrower shall reimburse the Lender for any reasonable expenses incurred by the Lender in connection with any such audits. All
accounting records and financial reports furnished to the Lender by the Borrower and the Guarantor pursuant to this Agreement shall be maintained and prepared in accordance with GAAP. 

5.7 Liens. The Borrower shall not create, incur, assume or permit to exist any mortgage, deed of trust, assignment, pledge, lien,
security interest, charge or encumbrance, including, without limitation, the right of a vendor or under a conditional sale contract or the lessor under a capitalized lease (collectively, (“Liens”) of any kind or nature in or upon any of
the asset of the Borrower except: 
  

	 	(a)	Liens created or deposits made that are incidental to the conduct of the business of the Borrower, that are not incurred in connection with any borrowing or the
obtaining of any credit and that do not and will not interfere with the use by the Borrower of any of its assets in the normal course of its business or materially impair the value of such assets for the purpose of such business; and

  

	 	(b)	Liens securing the Indebtedness. 

5.8 Debt. Except as provided above in Section 5.7, without the prior written consent of the Lender, the Borrower shall not
incur or permit to exist any debt for borrowed funds, the deferred purchase price of goods or services or capitalized lease obligations, except for (a) trade debt incurred in the ordinary course of business, and (b) the Indebtedness.

 5.9 Contingent Liabilities. Without the prior written consent of the Lender, neither the Borrower nor the Guarantor
shall guarantee, endorse, become contingently liable upon or assume the obligation of any person, or permit any such contingent liability to exist, except by the endorsement of negotiable instruments for deposit or collection or similar transactions
in the ordinary course of business. 

  
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 5.10 Sale of Assets. Without the prior written consent of the Lender, the Borrower
shall not sell, lease, assign or otherwise dispose of any of its assets except for (a) the disposition of assets that are no longer needed or useful in its business, (b) assets which have been removed and replaced, (c) sale and
conveyance of the Property following recordation of the Record Plat and payment in full of all principal, accrued interest and other charges due under the Loan, and (d) sales of housing lots and units on the Housing Parcel as provided for in
the Deed of Trust. 
 5.11 Mergers and Acquisitions. Without the prior written consent of the Lender, the Borrower shall
not merge or consolidate with, or acquire all or substantially all of the assets, stock, partnership interests or other ownership interests of, any other person. 
 5.12 Loans and Advances. Without the prior written consent of the Lender, the Borrower shall not make any loan or advance to any affiliate, director, member, manager, officer or employee of the
Borrower, or any other person, except for the creation of accounts receivable in the ordinary course of business on terms that are no less favorable than would apply in an arms-length transaction. 

5.13 Subsidiaries and Joint Ventures. Without the prior written consent of the Lender, the Borrower shall not form any subsidiary,
become a general or limited partner in any partnership or become a party to a joint venture. If the Lender grants its consent to the formation or acquisition of a subsidiary Borrower, such entity shall cause each subsidiary to perform and observe
all of the covenants contained in this Agreement and the other Loan Documents. 
 5.14 Affiliates. Without the prior
written consent of the Lender, the Borrower shall not engage in business with any of its affiliates except in the ordinary course of business and on terms that are no less favorable to the Borrower than would apply in an arm’s length
transaction. 
 5.15 Organization; Control and Management; Transfers. Until such time as the Loan is fully repaid, there
shall be no Transfer (hereinafter defined) of any interest in the Borrower, nor any change in the Control (hereinafter defined) or management of either the Borrower or the Guarantor, nor any Transfer of the Property without the Lender’s prior
written consent. “Transfer” means any assignment, pledge, conveyance, sale, transfer, mortgage, encumbrance, grant of a security interest or other disposition, either directly or indirectly, in the aggregate of fifty percent (50%) or
more of the beneficial ownership interests of an entity and the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through the ability to exercise voting power, by
contract or otherwise. “Controlled by” and “controlling” shall have the respective correlative meanings thereto. 
 SECTION SIX 
 DEFAULT AND REMEDIES 

6.1 Default. Each of the following shall constitute an “Event of Default” under this Agreement: 

  
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 (a) Failure to Pay. If: (i) the Borrower shall fail to pay any monthly payment
required under the Note (“Monthly Payments”) when due thereunder or (ii) the Borrower shall fail to pay any amount (other than the Monthly Payments) as and when due under any of the other Loan Documents; 

(b) Failure to Give Notices. If the Borrower fails to give the Lender any notice required by Section 5.5 of this Agreement
within thirty (30) days after it has actual knowledge of the event giving rise to the obligation to give such notice. 

(c) Failure to Permit Inspections. If the Borrower refuses to permit the Lender to inspect its books and records in accordance
with the provisions of Section 5.6 or failure to permit the Lender to inspect the Property upon reasonable advance notice. 

(d) Failure to Record Record Plat. If the Record Plat is not recorded within ninety (90) days following closing the Loan.

 (e) Failure to Observe Covenants. If the Borrower fails to perform or observe any non-monetary term, covenant,
warranty or agreement contained in this Agreement or in the other Loan Documents for which no cure period or another cure period is provided, and such failure shall continue for a period of thirty (30) days after written notice of such failure
has been given to the Borrower by the Lender; provided, however, if such default is not in the payment of any sum due to the Lender hereunder, or was not the subject of an Event of Default for which notice was previously provided, and provided the
Borrower is diligently pursuing the cure of such default , then the Borrower shall have an additional sixty (60) days within which to cure such default prior to the Lender exercising any right or remedy available hereunder, or at law or in
equity. 
 (f) Defaults Under Loan Documents. If an Event of Default shall occur under the Note or any other Loan
Document and shall not be cured within any applicable grace period. 
 (g) Breach of Representation. Discovery by the
Lender that any representation or warranty made or deemed made by the Borrower in this Agreement or in any other Loan Document or in any statement or representation made in any certificate, report or opinion delivered pursuant to this Agreement or
other Loan Document or in connection with any borrowing under this Agreement by the Borrower or the Guarantor or any member, manager, officer, agent, employee or director of the Borrower or the Guarantor, was materially untrue when made or deemed to
be made. 
 (h) Voluntary Bankruptcy. If the Borrower or the Guarantor makes an assignment for the benefit of creditors,
files a petition in bankruptcy, petitions or applies to any tribunal for any receiver or any trustee of the Borrower or the Guarantor or any substantial part of the property of the Borrower or the Guarantor, or commences any proceeding relating to
the Borrower or the Guarantor under any reorganization, arrangement, composition, readjustment, liquidation or dissolution law or statute of any jurisdiction, whether in effect now or after this Agreement is executed. 

  
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 (i) Involuntary Bankruptcy. If, within sixty (60) days after the filing of a
bankruptcy petition or the commencement of any proceeding against the Borrower or the Guarantor seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statue, law or
regulation, the proceeding shall not have been dismissed, or, if within sixty (60) days, after the appointment, without the consent or acquiescence of the Borrower or the Guarantor, of any trustee, receiver or liquidator of any Borrower or all
or any substantial part of the properties of the Borrower o the Guarantor, the appointment shall not have been vacated. 
 (j)
Cross Default. If, as a result of default, any present or future obligations of the Borrower or the Guarantor or any affiliate of the Borrower or the Guarantor to the Lender or any other creditor, whether due to acceleration provisions or
otherwise therein, are declared to be due and payable prior to the expressed maturity of such obligations. 
 (k) Cross
Default to Particular Instruments: If an Event of Default by the applicable borrower shall occur under any of the following, as any of the following may be amended, substituted or replaced from time to time: (i) the AD&C Loans,
(ii) any loan documents evidencing and/or securing that certain loan from the Lender to New Hampshire Ave. Ventures, LLC (“NHA”) in the amount of $6,000,000.00, which is evidenced, among other things, by a Revolving Development Loan
Promissory Note dated August 13, 2012 made by NHA to the order of the Lender; (iii) any loan documents evidencing and/or securing that certain loan from the Lender to NHA in the amount of $4,000,000.00, which is evidenced, among other
things, by a Revolving Construction Loan Promissory Note dated August 13, 2012 made by NHA to the order of the Lender; (iv) any loan documents evidencing and/or securing that certain loan from the Lender to Comstock Potomac Yard, L.C. and
Comstock Penderbrook, L.C., jointly and severally, in the amount of $9,960,000.00, which is evidenced, among other things, by a Deed of Trust Note dated May 30, 2012 made by those obligors to the order of the Lender; and (v) the
Subordinate Loan. 
 (l) Material Adverse Change. A material adverse change occurs in the financial or business condition
of the Borrower or the Guarantor. 
 (m) Judgment. If a judgment, attachment, garnishment or other process is entered
against the Borrower and is not vacated or bonded within sixty (60) days after entry (or such shorter period of time as necessary in order to avoid attachment or foreclosure), or if a judgment, attachment, garnishment or other process is
entered against the Guarantor that would materially affect the Guarantor’s ability to perform its obligations under the Loan Documents, and such judgment, attachment, garnishment or other process is not vacated or bonded with in sixty
(60) day after entry (or such shorter period of time as necessary in order to avoid attachment or foreclosure). 

  
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 (n) Dissolution. The dissolution, liquidation or termination of existence of the
Borrower or the Guarantor unless a substitute guarantor, satisfactory to the Lender in its sole and absolute discretion, assumes all liability under the Guaranty and Environmental Indemnity and executes any documents which the Lender may reasonably
require to implement such substitution, within sixty (60) days after event of dissolution, liquidation or termination of existence. 
 (o) Change in Management/Control. A change in the management of or controlling interest in the Borrower or the Guarantor without the prior written consent of the Lender. 

6.2 Remedies. Upon the occurrence of an Event of Default (a) the Lender, at its option, by written notice to the Borrower,
may declare all Indebtedness to the Lender to be immediately due and payable, whether such Indebtedness was incurred prior to, contemporaneous with or subsequent to the date of this Agreement and whether represented in writing or otherwise, without
presentment, demand, protest or further notice of any kind, and (b) the Lender may exercise all rights and remedies available to it under the Loan Documents and applicable law. The Borrower agrees to pay all costs and expenses incurred by the
Lender in enforcing any obligation under this Agreement or the other Loan Documents, including, without limitation, attorneys’ fees. No failure or delay by the Lender in exercising any power or right will operate as a waiver of such power or
right, nor will any single or partial exercise of any power or right preclude any other future exercise of such power or right, or the exercise of any other power or right. 
 6.3 Borrower to Pay Fees and Charges. The Borrower shall pay all fees and charges incurred in the procuring, making and enforcement of the Loan, including without limitation the reasonable fees and
disbursements of Lender’s attorneys, charges for appraisals, the fee of Lender’s inspector and construction consultant, fees and expenses relating to examination of title, title insurance premiums, surveys, and mortgage recording,
documentary, transfer or other similar taxes and revenue stamps, loan extension fees, if any, and the Lender’s fees for the Loan. 
 SECTION SEVEN 
 GENERAL PROVISIONS 

7.1 Defined Terms. Each accounting term used in this Agreement, not otherwise defined, shall have the meaning given to it under
GAAP applied on a consistent basis. The term “person” shall mean any individual partnership, corporation, trust, joint venture, unincorporated association, governmental subdivision or agency or any entity of any nature. The term
“subsidiary” means, with respect to any person, a corporation or other person of which shares of stock or other ownership interest having ordinary voting power to elect a majority of the board of directors or other managers of such
corporation or person are at the time owned, or the management of which it otherwise controlled, directly or indirectly, through one or more intermediaries, by such person. The term “affiliate” means, with respect to any specified person,
any other person that, directly or indirectly, controls or is controlled by, or is under common control with, such specified person. All meanings assigned to defined terms in this Agreement shall be applicable to the singular and plural forms of the
terms defined. 

  
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 7.2 Notices. All notices, requests, demands and other communication with respect
hereto shall be in writing and shall be delivered by hand, prepaid by Federal Express (or a comparable overnight delivery service), or sent by the United States first-class mail, certified, postage prepaid, return receipt requested, to the parties
at their respective addresses set forth as follows: 
 If to the Lender, to: 

EAGLEBANK 
 7815
Woodmont Avenue 
 Bethesda, MD 20814 
 Attn: Douglas Vigen, Senior Vice President 
 With a copy to: 

Friedlander Misler, PLLC 
 5335 Wisconsin Avenue, N.W., Suite 600 
 Washington, D.C. 20015 

Attn: Leonard A. Sloan, Esq. 
 If to the Borrower, to: 
 Comstock Redland Road, L.C. 

c/o Comstock Holding Companies, Inc. 
 1886 Metro Center Drive, 4th Floor 
 Reston, VA 20190 

Attn: Christopher Clemente 
 With a copy to: 
 Comstock Redland Road, L.C. 

c/o Comstock Holding Companies, Inc. 
 1886 Metro Center Drive, 4th Floor 
 Reston, VA 20190 

Attn: Jubal Thompson, Esq. 
 Any notice, request, demand or other communication delivered or sent in the manner aforesaid shall be deemed given or made (as the case may be) upon the earliest of (a) the date it is actually
received, (b) on the business day after the day on which it is delivered by hand, (c) on the business day after the day on which it is properly delivered by Federal Express (or a comparable overnight delivery service), or (d) on the
third (3rd) business day after the day on which it is
deposited in the United States mail. Any party may change such party’s address by notifying the other parties of the new address in any manner permitted by this Section. 

  
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 7.3 Successors and Assigns. This Agreement will be binding upon and inure to the
benefit of the Lender and the Borrower and their respective successors, assigns, personal representatives, executors and administrators, provided that the Borrower may not assign or transfer its rights under this Agreement. 

7.4 Entire Agreement. Except for the other Loan Documents expressly referred to in this Agreement, this Agreement represents the
entire agreement between the Lender and the Borrower, supersedes all prior commitments and may be modified only by an agreement in writing. 
 7.5 Survival. All agreements, covenants, representations and warranties made in this Agreement and all other provisions of this Agreement will survive the delivery of this Agreement and the other
Loan Documents and the making of the advances under this Agreement and will remain in full force and effect until the obligations of the Borrower under this Agreement and the other Loan Documents are indefeasibly satisfied. 

7.6 Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of Maryland, without
reference to conflict of laws principles. 
 7.7 Headings. Section headings are for convenience of reference only and
shall not affect the interpretation of this Agreement. 
 7.8 Participations. The Lender shall have the right to sell all
or any part of its rights under the Loan Documents, and the Borrower authorizes the Lender to disclose to any prospective participant in the Loan any and all financial and other information in the Lender’s possession concerning the Borrower or
the collateral for the Loan. 
 7.9 No Third Party Beneficiary. The parties do not intend the benefits of this Agreement
or any other Loan Document to inure to any third party. 
 7.10 Waiver of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY
LAW, THE LENDER AND THE BORROWER KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY BASED ON, ARISING OUT OF OR UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. 

7.11 Waiver. The rights of the Lender under this Agreement and the other Loan Documents shall be in addition to all other rights
provided by law. No waiver of any provision of this Agreement, or any other Loan Document, shall be effective unless in writing, and no waiver shall extend beyond the particular purpose involved. No waiver in any one case shall require the Lender to
give any subsequent waivers. 

  
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 7.12 Severability. If any provision of this Agreement or any other Loan Document is
held to be void, invalid, illegal or unenforceable in any respect, such provision shall be fully severable and this Agreement or the applicable Loan Document shall be construed as if the void, invalid, illegal or unenforceable provision were not
included in this Agreement or in such Loan Document. 
 7.13 No Setoffs. With respect to a monetary default claimed by
the Lender under the Loan Documents, no setoff, claim, counterclaim, reduction or diminution of any obligation or defense of any kind or nature that the Borrower has or may have against the Lender (other than the defenses of payment, the
Lender’s gross negligence or willful misconduct) shall be available against the Lender in any action, suit or proceeding brought by the Lender to enforce this Agreement or any other Loan Document. The foregoing shall not be construed as a
waiver by the Borrower of any such rights or claims against the Lender, but any recovery upon any such rights or claims shall be had from the Lender separately, it being the intent of this Agreement and the other Loan Documents that the Borrower
shall be obligated to pay, absolutely and unconditionally, all amounts due under this Agreement and the other Loan Documents. 

7.14 No Merger. The Borrower and the Lender expressly agree that the Borrower’s agreement and obligation to pay the
Lender’s reasonable attorneys’ fees and costs, and all other litigation expenses, shall not be merged into any judgment obtained by the Lender, but shall survive the same and shall not be extinguished by any monetary judgment. It is the
express intent of the parties hereto that all post-judgment collection fees and expenses (including reasonable attorneys’ fees and costs) shall survive entry of a final judgment and shall be collectible by the Lender against the Borrower from
time to time following entry of any final judgment obtained by the Lender against the Borrower. 
 7.15. Counterparts.
This Agreement may be executed for the convenience of the parties in several counterparts, which are in all respects similar and each of which is to be deemed to be complete in and of itself, and any one of which may be introduced in evidence or
used for any other purpose with the production of the other counterparts thereof. 
 7.16 Consent to Jurisdiction. The
Borrower irrevocably submits to jurisdiction of any state or federal court sitting in the Commonwealth of Virginia or the State of Maryland over any suit, action or proceeding arising out of or relating to this Agreement, the Note or any other Loan
Documents. The undersigned irrevocably waives, to the fullest extent permitted by law, any objection that the undersigned may now or hereafter have to the venue of any such suit, action or proceeding brought in any such court and any claim that any
such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Final judgment in any such court shall be conclusive and binding and may be enforced in any court in which the undersigned is subject to
jurisdiction by a suit upon such judgment provided that service of process is effected as provided herein or as otherwise permitted by applicable law. 
 7.17 Service of Process. The Borrower hereby consents to process being served in any suit, action or proceeding instituted in the Commonwealth of Virginia or the State of Maryland in connection
with the Loan by (i) the mailing of a copy thereof by certified mail, postage prepaid, return receipt requested, to the Borrower at the address set forth in the Notices section of this Agreement and
(ii)

  
 24 

 
serving a copy thereof upon the Borrower’s registered agent for service of process. The undersigned irrevocably agrees that such service shall be deemed to be service of process upon the
undersigned in any such suit, action or proceeding. Nothing in this Agreement shall affect the right of the Lender otherwise to bring proceedings against the undersigned in the courts of any jurisdiction or jurisdictions. 

9.18 Exhibits. All exhibits referred to herein as attached hereto are incorporated in full by reference as though fully set forth
in this Agreement. The Exhibits are: 
  

			
	 Exhibit A:
	  	Legal Description of the Property and the Housing Parcel
	 Exhibit B:
	  	Form of Apartment Parcel Deed of Trust
	 Exhibit C:
	  	Carve Out Obligations

 [SIGNATURES ON FOLLOWING PAGES] 

  
 25 

 IN WITNESS WHEREOF, the Borrower and the Lender have caused this Agreement to be executed in
their respective names by duly authorized representatives as of the day and year first above written. The Guarantor joins herein to consent and agree to the terms, conditions, provisions and covenants of those sections of this Agreement that address
a covenant or obligation of the Guarantor. 
  

							
	WITNESS:	 	BORROWER:
		
		 	 COMSTOCK REDLAND ROAD, L.C., a Virginia
 limited liability company

			
		 	By:	 	 Comstock Holding Companies, Inc., a Delaware
 corporation, its Manager

				
		 		 	By:	 	  

		 		 		 	Christopher D. Clemente
		 		 		 	Chief Executive Officer

 [SEAL] 

COMMONWEALTH OF VIRGINIA 
 COUNTY OF
                    , ss: 
 I,                     , a Notary Public in and for the aforesaid jurisdiction, do hereby certify
that Christopher D. Clemente personally appeared before me in said jurisdiction and acknowledged that he is the Chief Executive Officer of Comstock Holding Companies, Inc., which is the Manager of Comstock Redland Road, L.C., a Virginia limited
liability company, party to the foregoing instrument, and that the same is his act and deed and the act and deed of said Comstock Redland Road, L.C. 
 IN WITNESS WHEREOF, I have set my hand and Notarial Seal, this      day of             , 2013. 

 

			
		  	  
 Notary
Public

		
	[SEAL]	  	My Commission
expires:                        .
		
		  	Notary Registration No.
                        .

  
 26 

					
	Witness:	 	GUARANTOR:
		
		 	 COMSTOCK HOLDING COMPANIES, INC., a
 Delaware corporation

			
	______________	 		 	
	Print Name:	 		 	
		 	By:	 	  

		 		 	Christopher D. Clemente
		 		 	Chief Executive Officer

 COMMONWEALTH OF VIRGINIA 
 COUNTY OF                     , ss: 

I,                     , a
Notary Public in and for the aforesaid jurisdiction, do hereby certify that Christopher D. Clemente personally appeared before me in said jurisdiction and acknowledged that he is the Chief Executive Officer of Comstock Holding Companies, Inc., a
Delaware corporation, party to the foregoing instrument, and that the same is his act and deed and the act and deed of said Comstock Holding Companies, Inc.. 
 IN WITNESS WHEREOF, I have set my hand and Notarial Seal, this      day of             , 2013. 

 

			
		  	  
 Notary
Public

		
	[SEAL]	  	My Commission
expires:                        .
		
		  	Notary Registration No.
                        .

  
 27 

					
	Witness:	 	LENDER:
		
		 	EAGLEBANK
			
	______________	 		 	
	Print Name:	 		 	
		 	By:	 	  

		 		 	Douglas Vigen
		 		 	Senior Vice President

 [SEAL] 

COMMONWEALTH OF VIRGINIA 
 COUNTY OF
                    , ss: 
 I,                     , a Notary Public in and for the aforesaid jurisdiction, do hereby certify
that Douglas Vigen personally appeared before me in said jurisdiction and acknowledged that he a Senior Vice President of EAGLEBANK; that he has been duly authorized to execute and deliver the foregoing instrument for the purposes therein contained
and that the same is his act and deed; that the seal affixed to said instrument is such corporate seal and that it was so affixed by order of the Board of Directors of said Bank; and that he signed his name thereon by like order. 

IN WITNESS WHEREOF, I have set my hand and Notarial Seal, this      day of
            , 2013. 
  

			
		  	  
 Notary
Public

		
	[SEAL]	  	My Commission
expires:                        .
		
		  	Notary Registration No.
                        .

  
 28 

 EXHIBIT A 
 Legal Description of the Property and the Housing Parcel 
 Parcel P-146 in Montgomery
County, Maryland, being that tract of land comprising 4.24307 acres, more or less, said tract of land being bisected by Yellowstone Way. 
 Tax
ID No. 04-001-00776834. 
 For metes and bounds description, see Exhibit “A” to Commitment for Title Insurance issued by Stewart
Title Guaranty Company on February 13, 2013, File No. 01242 – 1549. 

  
 29 

 EXHIBIT B 
 FORM OF APARTMENT PARCEL DEED OF TRUST 
 [ATTACHED] 

  
 30 

 EXHIBIT C 
 CARVE OUT OBLIGATIONS 
 The Guarantor shall also guaranty the full and timely payment of any and
all actual loss, damage, cost, expense, liability, claim or other obligation incurred by the Lender (including reasonable attorneys’ fees and out-of-pocket costs actually incurred) arising out of or in connection with any one or more of the
following (the “Carve Out Obligations”): 
 (i) Fraud, material misrepresentation or willful misconduct by Borrower or
Guarantor or any of their respective members, managers, officers, principals, or any other person properly authorized to make statements or representations, or act, on behalf of Borrower or Guarantor in connection with the Loan or the Property;

 (ii) physical waste committed on the Property; damage to the Property as a result of the intentional misconduct, recklessness
or gross negligence of Borrower or Guarantor, or any agent or employee of any such persons; or the removal of any portion of the Property by or at the direction of Borrower or Guarantor or any direct or indirect member or manager thereof, in
violation of the terms of the Loan Documents (as defined in the Loan Agreement) following a default under the Loan which is not cured within any applicable grace or cure period (an “Event of Default”); 

(iii) subject to any right to contest or bond off such matters, as provided in the Deed of Trust or Loan Agreement, failure to pay any
valid taxes, assessments, mechanics’ liens, materialmen’s liens or other liens which could create liens on any portion of the Property which would be superior to the lien or security title of the Deed of Trust or the other Loan Documents,
to the full extent of the amount claimed by any such lien claimant; 
 (iv) the breach of any representation, warranty or
covenant in, and any liability under any provision in, that certain Environmental Indemnity Agreement of even date herewith given by Borrower and Guarantor to Lender or the breach of any representation, warranty or covenant relating solely to, and
any liability under any provision concerning, environmental laws, hazardous substances or asbestos in the Deed of Trust; 
 (v)
the misapplication or conversion of (A) any insurance proceeds paid to Borrower by reason of any loss, damage or destruction to the Property, (B) any awards or other amounts received by Borrower in connection with the condemnation of all
or a portion of the Property, or (C) any rents from the Property following an Event of Default or collected in advance; and 
 (vi) failure to maintain any insurance policies required under the Loan Documents, or timely to pay or provide the amount of any insurance deductible, to the extent of the applicable deductible, following
a casualty or other insured event. 

  
 31EX-4.26

			
	Exhibit 4.26 as filed with 20-F	 	Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as [**]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

 EXHIBIT 4.26 
 SETTLEMENT AGREEMENT AND GENERAL RELEASE 
 This
Settlement Agreement and General Release (the “Agreement”) is entered into this 12th day of November 2012 (the “Effective Date”) by and among Tekmira Pharmaceuticals Corporation, a British Columbia corporation with a principal place of business at 100-8900 Glenlyon Parkway,
Burnaby, British Columbia, Canada V5J 5J8 (“TPC”), Protiva Biotherapeutics Inc., a wholly-owned subsidiary of TPC and a British Columbia corporation with a principal place of business at 100-8900 Glenlyon Parkway, Burnaby, British
Columbia, Canada V5J 5J8 (“Protiva”), Alnylam Pharmaceuticals, Inc., a Delaware corporation with a principal place of business at 300 Third Street, Cambridge, MA 02142 (“Alnylam”), and AlCana Technologies, Inc., a British
Columbia corporation with a principal place of business at 2714 West 31st Avenue, Vancouver, British Columbia, Canada V6L 2A1 (“AlCana”). Each of TPC, Protiva, Alnylam, and AlCana shall be considered a “Party,” and collectively they shall be considered the
“Parties.” 
 WHEREAS, on or about January 8, 2007, Alnylam and Inex Pharmaceuticals Corp. (“Inex”)
entered into License and Collaboration Agreement (the “Original Inex-Alnylam LCA”); 
 WHEREAS, on or about
January 8, 2007, Inex sublicensed to Alnylam certain technology that Inex had licensed from the University of British Columbia (“UBC”) (the agreement and all amendments are referred to as the “UBC Sublicense”); 

  
 - 1 -

 WHEREAS, on or about August 14, 2007, Alnylam and Protiva entered into a Cross-License
Agreement (the “Original Alnylam-Protiva CLA”); 
 WHEREAS, on or about May 28, 2008, Protiva and TPC, which had
by then acquired Inex’s assets including Inex’s assignment of the Original Inex-Alnylam LCA, agreed to a Share Purchase Agreement pursuant to which TPC purchased all outstanding shares of Protiva, and Protiva became a wholly-owned
subsidiary of TPC (the combined entity hereafter referred to as “Tekmira”); 
 WHEREAS, on or about May 30, 2008,
Tekmira and Alnylam agreed to new licensing and collaboration arrangements that superseded and replaced the Original TPC-Alnylam LCA and the Original Alnylam-Protiva CLA, specifically the Amended and Restated License and Collaboration between TPC
and Alnylam (the “Amended TPC-Alnylam LCA”) and the Amended and Restated Cross-License Agreement between Alnylam and Protiva (the “Amended Alnylam-Protiva CLA”); 

WHEREAS, on or about October 15, 2008, Tekmira terminated the employment of a number of employees, including, among others,
Dr. Thomas Madden, Dr. Michael Hope, Dr. Barbara Mui, and Dr. Ying Tam; 
 WHEREAS, on or about
January 2, 2009, Tekmira and Alnylam entered into the Development, Manufacturing and Supply Agreement (the “Manufacturing Agreement”); 
 WHEREAS, on or about January 8, 2009, the Alnylam-TPC research collaboration expired; 

  
 - 2 -

 WHEREAS, on or about January 26, 2009, Alnylam retained certain former Tekmira
employees and/or contractors as Alnylam consultants, including Dr. Madden, Dr. Hope, Dr. Mui, Dr. Tam, Dr. Steven Ansell, and Dr. Jianxin Chen; 
 WHEREAS, on or about February 13, 2009, Dr. Madden, Dr. Hope, Dr. Mui, Dr. Tam, Dr. Ansell, Dr. Chen and others formed AlCana; 

WHEREAS, on or about July 27, 2009, Alnylam, TPC, Protiva, AlCana, and UBC entered into a Supplemental Agreement (the
“Supplemental Agreement”) that, among other things, provided for (i) the termination of Alnylam’s consulting arrangement with Dr. Madden, Dr. Hope, Dr. Mui, Dr. Tam, Dr. Ansell, and Dr. Chen,
(ii) a collaborative research arrangement involving Alnylam, AlCana and UBC relating to, among other things, the discovery of novel lipids (the “Sponsored Research Agreement”), and (iii) licenses to TPC and Protiva permitting
certain use of discoveries made during the consulting arrangements or the Alnylam-AlCana-UBC collaboration; 
 WHEREAS, on or
about August 14, 2009, the Alnylam-Protiva research collaboration expired; 
 WHEREAS, on or about December 9, 2009,
Alnylam and AlCana entered into the InterfeRx Option Agreement (the “Option Agreement”); 
 WHEREAS, on or about
February 28, 2011, the Unites States Board of Patent Appeals and Interferences declared an interference proceeding between Alnylam, which is the assignee of U.S. Patent No. 7,718,629, and Protiva, which is the assignee of U.S. Patent
Application No. 11/807,872, captioned Protiva Biotherapeutics, Inc. v. Alnylam Pharmaceuticals, Inc., Patent Interference No. 105792 (the “Interference Proceeding”), relating to Alnylam’s and Protiva’s separate
patent claims to the same siRNA sequence; 

  
 - 3 -

 WHEREAS, on or about March 16, 2011, TPC and Protiva filed a lawsuit in the
Massachusetts Superior Court for Suffolk County, Tekmira Pharmaceuticals Corp., et al. v. Alnylam Pharmaceuticals, Inc., et al., Civ. A. No. 11-1010-BLS2 (the “Massachusetts State Court Action”), alleging that, among other
things, Alnylam had misappropriated certain claimed trade secrets and other confidential information that Tekmira provided to Alnylam in connection with the research collaborations in violation of common law and certain statutes including Mass. Gen.
Laws ch. 93, § 42 (trade secrets), Mass. Gen. Laws ch. 266, § 91 (false advertising), and Mass. Gen. Laws ch. 93A (unfair and deceptive trade practices); 
 WHEREAS, on or about April 6, 2011, Alnylam answered Tekmira’s complaint in the Massachusetts State Court Action, denying any and all wrongdoing or liability and asserting counterclaims for,
among other things, breach of contract and violation of Mass. Gen. Laws ch. 93A; 
 WHEREAS, on or about June 3, 2011,
Tekmira filed an amended complaint in the Massachusetts State Court Action which added AlCana as a defendant and asserted new claims, allegations and theories, including, among other things, breach of contract, misappropriation of trade secrets in
violation of Mass. Gen. Laws ch. 93, § 42, civil conspiracy, tortious interference with contractual relationships, false advertising in violation of Mass. Gen. Laws ch. 266, § 91, and violation of Mass. Gen. Laws ch. 93A; 

WHEREAS, on or about June 28, 2011, Alnylam answered the amended complaint in the Massachusetts State Court Action, denying any and
all wrongdoing or liability and asserting counterclaims for, among others, breach of contract, misappropriation of trade secrets in violation of Mass. Gen. Laws ch. 93, § 42, and violation of Mass. Gen. Laws ch. 93A; 

  
 - 4 -

 WHEREAS, on or about July 15, 2011, AlCana answered the amended complaint in the
Massachusetts State Court Action, denying any and all wrongdoing or liability and asserting counterclaims for breach of the Supplemental Agreement and violation of Mass. Gen. Laws ch. 93A; 

WHEREAS, on or about August 4, 2011, Tekmira answered AlCana’s counterclaims in the Massachusetts State Court Action, denying
any and all wrongdoing or liability; 
 WHEREAS, on or about October 11, 2011, Tekmira answered Alnylam’s
counterclaims in the Massachusetts State Court Action, denying any and all wrongdoing or liability; 
 WHEREAS, on or about
November 16, 2011, TPC filed an action in the Supreme Court of British Columbia, Canada against Drs. Madden, Hope, and Mui individually, captioned Tekmira Pharmaceuticals Corp. v. Michael Hope, et al., No. S117660 (the “B.C.
Action”), alleging that they had breached purported common law and contractual duties to TPC; 
 WHEREAS, on or about
February 24, 2012, Dr. Madden, Dr. Hope, and Dr. Mui responded to TPC’s complaint in the B.C. Action, denying any and all wrongdoing or liability; 
 WHEREAS, on or about January 17, 2012, Alnylam and Isis Pharmaceuticals, Inc. filed a lawsuit in the United States District Court for the District of Massachusetts, captioned Alnylam
Pharmaceuticals, Inc., et al. v. Tekmira Pharmaceuticals Corp., Civ. A. No. 1:12-CV-10087 (the “U.S. Infringement Action”), alleging that Tekmira has infringed U.S. Patent No. 7,695,902, U.S. Patent No. 6,858,225; U.S.
Patent No. 6,815,432; U.S. Patent No. 6,534,484; U.S. Patent No. 6,586,410; and U.S. Patent No. 6,858,224; 

  
 - 5 -

 WHEREAS, on or about September 25, 2012, Alnylam filed a lawsuit in the Federal Court
of Canada, captioned Alnylam Pharmaceuticals, Inc., et al. v. Tekmira Pharmaceuticals Corp., Court File No. T-1783-12 (the “Canadian Infringement Action”), alleging that Tekmira infringed CA Patent No. 2,359,180; 

WHEREAS, through the aforementioned litigation matters, the Parties have obtained voluminous information about the claims and defenses in
these matters; 
 WHEREAS, having consulted with competent counsel of their own choosing, each Party wishes to resolve the
aforementioned disputes amicably and without the need for further litigation; 
 WHEREAS, concurrent with this Agreement,
Alnylam and Tekmira have agreed to a Cross-License Agreement dated November 12, 2012 (the “2012 Cross-License Agreement”), which supersedes and replaces the Amended TPC-Alnylam LCA, the Amended Alnylam-Protiva CLA, and the
Supplemental Agreement as it relates to Alnylam and Tekmira. 
 WHEREAS, concurrent with this Agreement, AlCana and Tekmira have
agreed to a binding term sheet, attached hereto as Exhibit A (the “Binding Term Sheet”); 

  
 - 6 -

 NOW AND THEREFORE, in consideration of the promises and conditions set forth herein and in
the 2012 Cross-License Agreement, the sufficiency of which is hereby acknowledged, the Parties agree as follows: 
 1.
Dismissal of All Disputes with Prejudice: Simultaneously with the complete execution of this Agreement, the Parties shall direct their respective counsel to execute Stipulations of Dismissal with Prejudice dismissing all claims and
counterclaims that were or could have been asserted in the Massachusetts State Court Action, U.S. Infringement Action, Canadian Infringement Action, and B.C. Action, and in the case of the Interference Proceeding, a Request for Adverse Judgment
providing that Alnylam concedes priority to Protiva with respect to all claims that correspond to Counts 1-5, i.e., claims 34, 36, 38, and 40-43 of Protiva U.S. Application 11/807,872; claims 1-6, 8, 10, 12-18, 21-22, and 32-33 of Alnylam
U.S. Patent 7,718,629; and claims 32-38 of Alnylam U.S. Application 13/165,568, and requesting that an adverse judgment be entered against Alnylam as to these claims and priority be awarded to Protiva for U.S. Application 11/807,872. The plaintiffs
in each matter, or in the case of the Interference Proceeding, Alnylam, shall file the relevant stipulation in the appropriate matter no later than one business day after the Effective Date. All Parties will bear their own attorneys’ fees and
costs, and waive all rights of appeal. 
 2. Assignment of Protiva Patent Application in Interference Proceeding:
Simultaneously with the complete execution of this Agreement and the 2012 Cross-License Agreement, Protiva hereby assigns to Alnylam all of Protiva’s right, title and interest in and to U.S. Patent Application No. 11/807,872, with no
additional payment due to Tekmira and will record such assignment with the U.S. Patent and Trademark Office within [**] business days of the Effective Date. 

  
  

	[**]	 Certain
information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

- 7 - 

 3. Mutual General Releases: The Parties hereby exchange the following general
releases, which they intend to be construed as broadly and inclusively as legally permissible: 
 a. Tekmira’s Release
of Alnylam: Tekmira, including both TPC and Protiva, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, both together and individually, release and forever discharge Alnylam and each of its past and
present parents, subsidiaries, departments and divisions, and the predecessors and successors in interest, and each of the current and former employees, officers, directors, attorneys, and insurers or any of the foregoing (collectively, the
“Alnylam Released Parties”), and each of them, jointly and severally, from any and all claims or counterclaims, causes, causes of action, counts, remedies, promises, damages, liabilities, obligations, judgments, suits, demands, actions,
costs, expenses, fees, covenants, controversies, and agreements, of whatever kind or nature, anywhere in the world, whether at law, equity, statutory, administrative, arbitration or otherwise, whether known or unknown, foreseen or unforeseen,
accrued or unaccrued, suspected or unsuspected, which Tekmira, TPC and/or Protiva, may now have, have ever had, or in the future may have against any and each of the Alnylam Released Parties that are based on any material fact, known or unknown, in
existence at any time prior to the Effective Date as well as all claims and counterclaims that were or could have been brought in the Massachusetts Superior Court Action, the U.S. Infringement Action, the Canadian Infringement Action, the
Interference Proceeding, and/or the B.C. Action. 
 b. Alnylam’s Release of Tekmira: Alnylam, for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, releases and forever discharges Tekmira, including both TPC and Protiva, and each of their past and present parents, subsidiaries, departments and divisions, and the
predecessors and successors in interest, and each 

  
 - 8 -

 
of the current and former employees, officers, directors, attorneys, and insurers, of any of the foregoing (collectively, the “Tekmira Released Parties”), and each of them, jointly and
severally, from any and all claims or counterclaims, causes, causes of action, counts, remedies, promises, damages, liabilities, obligations, judgments, suits, demands, actions, costs, expenses, fees, covenants, controversies, and agreements, of
whatever kind or nature, anywhere in the world, whether at law, equity, statutory, administrative, arbitration or otherwise, whether known or unknown, foreseen or unforeseen, accrued or unaccrued, suspected or unsuspected, which Alnylam may now
have, have ever had, or in the future may have against any and each of the Tekmira Released Parties that are based on any material fact, known or unknown, in existence at any time prior to the Effective Date as well as all claims and counterclaims
that were or could have been brought in the Massachusetts Superior Court Action, the U.S. Infringement Action, the Canadian Infringement Action, the Interference Proceeding, and/or the B.C. Action. 

c. Tekmira’s Release of AlCana: Tekmira, including both TPC and Protiva, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, both together and individually, release and forever discharge AlCana and each of its past and present parents, subsidiaries, departments and divisions, and the predecessors, and successors in interest,
and each of the current and former employees, officers, directors, attorneys, and insurers of any of the foregoing (collectively, the “AlCana Released Parties”), and each of them, jointly and severally, from any and all claims or
counterclaims, causes, causes of action, counts, remedies, promises, damages, liabilities, obligations, judgments, suits, demands, actions, costs, expenses, fees, covenants, controversies, and agreements, of whatever kind or nature, anywhere in the
world, whether at law, equity, statutory, administrative, arbitration or otherwise, whether known or unknown, foreseen or unforeseen, accrued or unaccrued, suspected 

  
 - 9 -

 
or unsuspected, which Tekmira, TPC and/or Protiva, may now have, have ever had, or in the future may have against any and each of the AlCana Released Parties that are based on any material fact,
known or unknown, in existence at any time prior to the Effective Date as well as all claims and counterclaims that were or could have been brought in the Massachusetts Superior Court Action and/or the B.C. Action. 

d. AlCana’s Release of Tekmira: AlCana, for good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, releases and forever discharges the Tekmira Released Parties, and each of them, jointly and severally, from any and all claims or counterclaims, causes, causes of action, counts, remedies, promises, damages, liabilities, obligations,
judgments, suits, demands, actions, costs, expenses, fees, covenants, controversies, and agreements, of whatever kind or nature, anywhere in the world, whether at law, equity, statutory, administrative, arbitration or otherwise, whether known or
unknown, foreseen or unforeseen, accrued or unaccrued, suspected or unsuspected, which AlCana may now have, have ever had, or in the future may have against any and each of the Tekmira Released Parties that are based on any material fact, known or
unknown, in existence at any time prior to the Effective Date of the Agreement as well as all claims and counterclaims that were or could have been brought in the Massachusetts Superior Court Action and/or the B.C. Action. 

e. Notwithstanding anything herein to the contrary, 
 i. even if based on any material, known or unknown fact in existence at any time prior to the Effective Date, the general releases and covenants not to sue set forth in this Agreement are not intended to
and do not release the Parties from any of their obligations under this Agreement and are not intended to and do not prohibit claims for breach of this Agreement; 

  
 - 10 -

 ii. even if based on any material, known or unknown fact in existence at any time prior to
the Effective Date, the general releases and covenants not to sue set forth in this Agreement are not intended to and do not release the Parties from any of their obligations under the 2012 Cross-License Agreement or the Binding Term Sheet, as the
case may be, and do not prohibit claims for breach of those agreements provided the breach arises after the Effective Date; further provided, however, that no Party may assert that any conduct, act, or omission by or on behalf of any released Party
prior to the Effective Date constitutes a breach of any of the released Party’s obligations or duties under 2012 Cross-License Agreement or the Binding Term Sheet; and 
 iii. even if based on any material, known or unknown fact in existence at any time prior to the Effective Date, the general releases and covenants not to sue set forth in this Agreement are not intended
to and do not prohibit claims for patent infringement on patents filed on or after April 15, 2010 and which are not entitled to claim priority to any patent prior to April 15, 2010, whether or not the patents claim such priority, but
solely for alleged infringing activities that occur after the Effective Date. To each Party’s Knowledge (as defined herein), no activities conducted by any other Party or any of their affiliates, licensees or sublicensees, including without
limitation any Identified Sublicensee (as defined in section 4), prior to the Effective Date, will, if continued after the Effective Date, constitute infringement of any patent controlled by the Party making this representation, which patent was
filed on or after April 15, 2010 and which is not entitled to claim priority to any patent prior to April 15, 2010. For purposes of this section 3.e.iii., “Knowledge” with respect to Tekmira means the actual

  
 - 11 -

 
knowledge as of the Effective Date of Mark Murray, Paul Brennan, Barry McGurl and/or Elizabeth Howard; with respect to Alnylam means the actual knowledge as of the Effective Date of Barry Greene,
Laurence Reid and/or Steve Bossone; and with respect to AlCana means the actual knowledge as of the Effective Date of Tom Madden. 
 4. Specific Release of Third Party Sublicensees: Each Party acknowledges that the other Parties have sublicensed to the third parties identified on Exhibit B (the “Identified
Sublicensees”) certain technology licensed from another Party under the Original TPC-Alnylam LCA, the Amended TPC-Alnylam LCA, the Original Alnylam-Protiva CLA, the Amended Alnylam-Protiva CLA, the Manufacturing Agreement, the Supplemental
Agreement, and/or the UBC Sublicense Agreement (collectively, the “Original Agreements”). 
 a. To the extent that the
Parties have sublicensed or granted options to license such technology to third parties in accordance with the Parties’ Original Agreements, the rights of those third parties shall not be affected by this Agreement, the 2012 Cross-License
Agreement or the Binding Term Sheet. 
 b. For each of Alnylam’s and AlCana’s Identified Sublicensees respectively,
Tekmira, for good and valuable consideration from Alnylam and AlCana, the receipt and sufficiency of which is hereby acknowledged, releases that sublicensee from any and all claims or counterclaims, causes, causes of action, counts, remedies,
promises, damages, liabilities, obligations, judgments, suits, demands, actions, costs, expenses, fees, covenants, controversies, and agreements anywhere in the world, whether at law, equity, statutory, administrative, arbitration or otherwise,
whether known or unknown, foreseen or unforeseen, accrued or unaccrued, suspected or unsuspected, based on that sublicensee’s acquisition or use of Tekmira’s 

  
 - 12 -

 
alleged confidential information and trade secrets at issue in the Massachusetts Superior Court Action or the B.C. Action that the sublicensee received from Alnylam or AlCana prior to [**], with
the exception of claims for patent infringement. 
 c. For each of Tekmira’s Identified Sublicensees, Alnylam and AlCana,
for good and valuable consideration from Tekmira, the receipt and sufficiency of which is hereby acknowledged, release that sublicensee from any and all claims or counterclaims, causes, causes of action, counts, remedies, promises, damages,
liabilities, obligations, judgments, suits, demands, actions, costs, expenses, fees, covenants, controversies, and agreements anywhere in the world, whether at law, equity, statutory, administrative, arbitration or otherwise, whether known or
unknown, foreseen or unforeseen, accrued or unaccrued, suspected or unsuspected, based on that sublicensee’s acquisition or use of Alnylam’s or AlCana’s alleged confidential information and trade secrets at issue in the Massachusetts
Superior Court Action that the sublicensee received from Tekmira prior to [**], with the exception of claims for patent infringement, other than claims subject to the release provided in section 4.d. below. 

d. Alnylam, for good and valuable consideration from Tekmira, the receipt and sufficiency of which is hereby acknowledged, further
releases Tekmira’s Identified Sublicensees from any and all claims or counterclaims, causes, causes of action, counts, remedies, promises, damages, liabilities, obligations, judgments, suits, demands, actions, costs, expenses, fees, covenants,
controversies, and agreements anywhere in the world, whether at law, equity, statutory, administrative, arbitration or otherwise, whether known or unknown, foreseen or unforeseen, accrued or unaccrued, suspected or unsuspected, for infringement of
patent claims at issue in the U.S. Infringement Action and Canadian Infringement Action. 

  
  

	[**]	 Certain
information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

- 13 - 

 e. For the avoidance of doubt, nothing in this section 4 shall operate to release any claims
the Parties may have pursuant to their own respective agreements with an Identified Sublicensee. 
 5. Covenant Not to
Sue: 
 a. Each Party hereby covenants not to file or assert in any lawsuit, arbitration, or other proceeding of any nature,
anywhere in the world, any and all claims or counterclaims, causes, causes of action, counts, remedies, promises, damages, liabilities, obligations, judgments, suits, demands, actions, costs, expenses, fees, covenants, controversies, and agreements
that are within the scope of the releases set forth in sections 3 and 4 above. For avoidance of doubt, this covenant shall not prohibit the filing or assertion of any claims for breach of this Agreement, the 2012 Cross-License Agreement, the Binding
Term Sheet, or patent infringement, as set forth in sections 3.e.i., ii and iii above. 
 b. If any Party is found by any court,
arbitrator or other tribunal to have breached this covenant not to sue, that Party shall pay each released Party against whom a released claim has been asserted sixty-five million dollars in United States funds ($65,000,000.00) as a liquidated
damage, not as a penalty. This liquidated damages provision shall not apply to or be enforceable by the Identified Sublicensees referenced in section 4 above. 

  
 - 14 -

 6. Termination or Amendment of Prior Agreements: 

a. The Parties agree that the terms of this Agreement, the 2012 Cross-License Agreement and the Binding Term Sheet shall extinguish,
supersede, and replace their rights and obligations under the Supplemental Agreement and Sponsored Research Agreement solely as between and among each other; provided, however, Alnylam’s payment obligations to UBC (for the benefit of UBC and
AlCana, as referenced in section 7.b., below) under the Supplemental Agreement and Sponsored Research Agreement shall survive the execution of this Agreement, the 2012 Cross-License Agreement and the Binding Term Sheet, and shall also survive any
termination of the Supplemental Agreement or Sponsored Research Agreement, in each case for the duration of the applicable Royalty Term (as defined in the Sponsored Research Agreement). 

b. In addition: 

i. Any and all other prior agreements between Alnylam and Tekmira, TPC, and/or Protiva, whether oral or written, are hereby terminated as
of the Effective Date with the sole exceptions of the (i) UBC Sublicense (under which Alnylam shall continue to have sublicenses to all patent rights that were sublicensed to Alnylam under the terms of the UBC Sublicense immediately prior to
the Effective Date, including such patent rights sublicensed to Alnylam under the terms of the UBC Sublicense as provided in the Supplemental Agreement); and (ii) Mutual Confidential Disclosure Agreement made as of April 9, 2012. Alnylam
and Tekmira acknowledge and agree that simultaneously with the complete execution of this Agreement they have entered into the 2012 Cross-License Agreement that shall survive. 

ii. Tekmira and AlCana agree that any and all prior agreements between them, whether oral or written, are hereby terminated. AlCana and
Tekmira acknowledge and agree that simultaneously with the complete execution of this Agreement they have entered into the Binding Term Sheet that shall survive. 

  
 - 15 -

 iii. Alnylam and AlCana agree that the Option Agreement between them is hereby terminated
and that the three InterfeRx options granted thereunder will be granted by Alnylam to Tekmira under to the 2012 Cross-License Agreement in exchange for the consideration provided by Tekmira to AlCana pursuant to the Binding Term Sheet. 

c. Alnylam and Tekmira acknowledge and agree that an amendment to the UBC Sublicense is desirable in order to harmonize the UBC
Sublicense with certain agreements of the Parties reflected in this Agreement and the 2012 Cross-License Agreement, such that the UBC Patents are included in Tekmira Patents (as such terms are defined in the 2012 Cross-License Agreement).
Accordingly, Alnylam and Tekmira agree that they shall work in good faith to negotiate and enter into an appropriate amendment to the UBC Sublicense as soon as practicable following the Effective Date. Tekmira and Alnylam hereby agree that until and
unless the UBC Sublicense is amended, Tekmira retains its rights to milestones and royalties with respect to the UBC Patents, as such rights have been amended in the 2012 Cross-License Agreement, and that until and unless the UBC Sublicense is
amended, the licenses under the Patent(s) (as defined in the UBC Sublicense) granted back to Tekmira by Alnylam pursuant to Section 3.2(b) of the UBC Sublicense shall be limited to such Patent(s) that were filed, or that claim priority to such
a Patent that was filed, before April 15, 2010. 
 d. For the period from the Effective Date until the such time as the
amendment to the UBC Sublicense contemplated in paragraph (c) above becomes effective, the licenses under the Patent(s) granted back to Tekmira by Alnylam pursuant to Section 3.2(b) of

  
 - 16 -

 
the UBC Sublicense shall be expanded to grant Tekmira such licenses with respect to all Tekmira Products (as defined in the 2012 Cross-License Agreement); provided that, such
expanded license back to Tekmira shall be a non-exclusive license with respect to Tekmira Products directed to Tekmira Non-Exclusive Targets (as defined in the 2012 Cross-License Agreement). 

e. Alnylam hereby covenants that it and its Existing Affiliates will not initiate any legal suit against Tekmira or any of its Existing
Affiliates asserting that: 
 i. any internal Research performed solely by Tekmira or its Existing Affiliates (and not with any
Third Party) and solely for the purpose of identifying a Target for selection as a Tekmira Additional Target during the period starting on the Effective Date and continuing until the earlier of (A) the [**] anniversary of the Effective Date and
(B) such date that Tekmira completes its selection of the Tekmira Additional Targets pursuant to Article III of the 2012 Cross-License Agreement; or 
 ii. the formulating in LNP Formulations by Tekmira or any of its Existing Affiliates of oligonucleotides controlled by any bona fide Third Party pharmaceutical collaborator on behalf of such Third Party
and solely for Research (but not Development or Commercialization); 
 constitutes infringement and/or misappropriation of the UBC Patents. For
clarity, the Parties agree that the covenants set forth in this section 6.e do not extend to any Third Party. 

  
  

	[**]	 Certain
information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

- 17 - 

 Capitalized terms used in this section 6.e. and not otherwise defined in this Agreement shall have the
meanings ascribed to them in the 2012 Cross-License Agreement. 
 7. AlCana Assignment of Milestone and Royalty Payments to
Tekmira: 
 a. Tekmira, Protiva and AlCana agree to the terms of the Binding Term Sheet attached hereto as Exhibit A. Alnylam
agrees to the terms of the Binding Term Sheet to the extent that its rights are implicated therein. 
 b. For avoidance of
doubt, Alnylam and AlCana represent and warrant that after the execution of this Agreement and the 2012 Cross-License Agreement, Alnylam will continue to be obligated under the Sponsored Research Agreement to pay UBC (for the benefit of UBC and
AlCana) milestone payments (as set forth in the Sponsored Research Agreement) and royalties on Net Sales (as defined in the Sponsored Research Agreement) of any Alnylam Product containing the MC3 lipid at a royalty rate of [**]% (subject to
reduction pursuant to Section 8.4.2.(b) of the Sponsored Research Agreement) for the duration of the applicable Royalty Term (as defined in the Sponsored Research Agreement). AlCana represents and warrants that, as of the Effective Date, UBC,
in turn, is obligated to pay to AlCana [**]% of such milestone and royalty payments UBC receives from Alnylam for the ALN-TTR02 product and that, as of the Effective Date, AlCana is not aware of any claim by UBC that would reduce such percentage of
milestone and royalty payments for the ALN-TTR02 product due to AlCana in future. Pursuant to the Binding Term Sheet, AlCana agrees to provide Tekmira with [**]% of such milestone and royalty payments AlCana receives from UBC. 

  
  

	[**]	 Certain
information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

- 18 - 

 c. Alnylam consents to AlCana’s assignment of its milestone and royalty payments to
Tekmira as set forth herein, pursuant to the terms of the Binding Term Sheet. Alnylam and AlCana covenant that they will not terminate, amend, or otherwise modify the contractual rights and obligations between and among themselves and UBC in a
manner that would impair Tekmira’s right to receive the milestone and royalty payments AlCana is assigning to Tekmira under this Agreement and the Binding Term Sheet. 
 d. Alnylam and AlCana represent and warrant that they have no contractual rights and/or obligations between and/or among themselves and UBC that are inconsistent with the terms of this Agreement and the
2012 Cross-License and their obligations thereunder. 
 8. Public Statements: Following the complete execution of this
Agreement and at a date and time that agreed to by the Parties in writing, or otherwise if required by law, the Parties will issue the mutually agreed upon press-releases attached hereto as Exhibits C-1 and C-2. They will thereafter make no further
public statement about the Massachusetts State Court Action, the Interference Proceeding, the U.S. Infringement Action, the Canadian Infringement Action, or the B.C. Action, or with respect to the subject matter of any of those disputes that is
substantially inconsistent with the press-release in Exhibits C-1 and C-2 or the content set forth within the mutually acceptable questions and answers document attached as Exhibit C-3. 

9. Confidentiality: 
 a. All negotiations, communications, documents, drafts, and other materials and information relating to and in connection with this Agreement, including all of its terms, shall be treated as strictly
private and confidential by the Parties and shall not be disclosed to any 

  
 - 19 -

 
third party, disseminated to the public, or released to the press; except that: (i) the Parties may disclose the terms reflected in a redacted copy of this Agreement, to be agreed
upon among the Parties promptly following the Effective Date, but only to the extent reasonably necessary to comply with a regulatory requirement, including the rules and regulations of the United States Securities and Exchange Commission or similar
regulatory agency in a country other than the United States; (ii) disclosure of the terms reflected in the redacted copy of this Agreement, as agreed upon among the Parties, is permitted if reasonably required in order for a Party to obtain
financing or conduct discussions with actual or prospective development or commercialization partners provided that the recipient is bound by an obligation of confidentiality; and (iii) any Party may disclose the terms reflected in the redacted
copy of this Agreement, as agreed upon among the Parties, to an affiliate, actual or prospective collaborator, financial advisor, auditor, lender, rating agency, legal counsel, or consultant with a legitimate business need to be informed provided
that such person or entity first agrees in writing to protect the confidentiality of the information. 
 b. If a Party is
required by judicial or administrative process to disclose any information subject to the preceding paragraph, such Party shall promptly inform each other Party of the disclosure that is being sought in order to provide the each other Party an
opportunity to challenge or limit the disclosure obligations. If any Party intends to challenge or limit disclosure, it shall notify the other Party and promptly take commercially reasonable steps to ask an appropriate judicial or administrative
body to preclude or limit disclosure. No Party may disclose any information about the Agreement until any such motion or challenge is resolved. Any such information that is disclosed in a judicial or administrative process shall remain otherwise
subject to the confidentiality provisions in the preceding paragraph, and the 

  
 - 20 -

 
Party disclosing such information shall take all steps reasonably practical, including without limitation seeking an order of confidentiality, to ensure the continued confidential treatment of
such information. 
 10. Future Disputes: The Parties agree that any disputes that arise between them during the period
ending on the third anniversary of the Effective Date, including without limitation, claims relating to the enforcement of this Agreement, shall be resolved by binding arbitration conducted in accordance with the Commercial Arbitration Rules and
Supplementary Procedures for Large Complex Disputes of the American Arbitration Association (“AAA”). The arbitration shall be conducted by a panel of three persons experienced in large commercial disputes who are independent of the
arbitrating Parties and neutral with respect to the dispute presented for arbitration. Within [**] days after initiation of arbitration, each arbitrating Party shall select one person to act as an arbitrator and the Party-selected arbitrators shall
select an additional arbitrator within [**] days of their appointment. If the arbitrators selected by the Parties are unable or fail to agree on the third arbitrator, the additional arbitrator shall be appointed by the AAA. The place of the
arbitration shall be in Chicago, Illinois, USA, and all proceedings and communications shall be in English. 
 11. Agreement
Regarding AlCana: Tekmira agrees not to acquire, whether itself or through a third party, a controlling interest in AlCana for a period of [**] years after the Effective Date. 

  
  

	[**]	 Certain
information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

- 21 - 

 12. General Provisions: 

a. Knowing and Voluntary Entry into this Agreement: Each Party agrees that no other Party has made any representation to it of any
kind whatsoever, whether oral or in writing, upon which that Party has relied in entering into this Agreement. Each Party further agrees that in entering into this Agreement, it has received independent legal advice from competent counsel of its
choosing. Each Party enters into this Agreement of its own volition, without compulsion of any kind, and after a full and fair opportunity to consider this matter with its own legal advisor. 

b. No Admissions or Concessions by Virtue of this Agreement: Each Party to this Agreement acknowledges and agrees that this
Agreement is a compromise of claims which the Parties have entered into solely for the purpose of avoiding the burdens, inconvenience, and expense of continuing disputes and litigation. Nothing in this Agreement, or the negotiations that preceded
the Agreement, shall be construed to be or deemed an admission or concession by any Party of any liability or wrongdoing, or as an infirmity of any claim or defense. Nor shall it be construed as an admission or concession as to the amount that any
Party could or would have recovered at trial. Neither this Agreement nor anything related to the negotiations that preceded it may be offered against the Alnylam Released Parties, the AlCana Released Parties, or the Tekmira Released Parties in any
proceeding with the sole exception of a proceeding to enforce the terms of this Agreement. 
 c. No Prior Assignment of
Claims: Each Party represents and warrants that it has not voluntarily or involuntarily assigned, pledged, liened or otherwise sold or transferred in any manner whatsoever to any other person or entity, either by instrument, in writing or

  
 - 22 -

 
otherwise, any right, action, claim or counterclaim, cause, cause of action, action, count, remedy, promise, damage, liability, debt, due, sums of money, account, reckoning, obligation, judgment,
writ of execution, lien, levy, attachment, suit, demand, cost, expense, fee, bond, bill, specialty, covenant, controversy, agreement, set-off, third party action or proceeding of whatever kind or nature, or any portion thereof, to be released under
sections 3 and 4 above. 
 d. Third Party Beneficiaries: The Parties acknowledge and agree that this Agreement is made
solely for the benefit of the Parties hereto, as well as the non-parties identified in the releases set forth in sections 3 and 4 and the covenant not to sue set forth in section 5, each of whom are intended third-party beneficiaries to this
Agreement (the “Third Party Beneficiaries”). The Parties further acknowledge and agree that the Third Party Beneficiaries have the right to enforce the provisions in this Agreement to the extent necessary to protect any rights granted to
them in this Agreement. Except as provided in the preceding two sentences, this Agreement does not create any other rights, claims or benefits inuring to any person or entity that is not a party to this Agreement, nor does it create any other third
party beneficiary hereto. 
 e. Applicable Law: This Agreement shall be governed, interpreted and enforced according to
the laws of the State of Delaware, without regard to any conflict of law provisions. 
 f. Invalidity: With the exception
of the releases set forth in sections 3 and 4 above and the covenant not to sue set forth in section 5 above, if any provision, or portion thereof, of this Agreement is held invalid, void or unenforceable under any applicable statute or rule of law,
only that provision, or portion thereof, shall be deemed omitted from this 

  
 - 23 -

 
Agreement, and only to the extent to which it is held invalid, and the remainder of the Agreement shall remain in full force and effect. If any portion of the releases set forth in sections 3 and
4 or the covenant not to sue set forth in section 5 is deemed invalid, it shall be rewritten to conform to the provisions written in this Agreement to the maximum extent permitted by law. 

g. Entire Agreement: This Agreement (including the Binding Term Sheet) and the 2012 Cross-License Agreement constitute the entire
agreement and understanding between the Parties relating to the subject matter of this Agreement (including the Binding Term Sheet) and the 2012 Cross-License Agreement, and supersede all previous written or oral representations, agreements, drafts
and understandings between the Parties. Each Party warrants and represents that no representation or statement of any kind whatsoever, other than in the terms and provisions in this Agreement (including the Binding Term Sheet) and the 2012
Cross-License Agreement, was made to it that in any way whatsoever induced it to enter this Agreement. 
 h. Written
Modification: This Agreement may only be varied or modified by a written agreement signed by duly authorized representatives of all of the Parties hereto; provided, however, that the material terms of the Binding Term Sheet shall be confirmed by
a subsequent written agreement signed by duly authorized representatives of Tekmira and AlCana. 
 i. Execution in
Counterparts: This Agreement may be executed in counterparts and transmitted by email or facsimile, each of which shall be deemed an original and any set of which, when taken together, shall constitute one and the same instrument and be
sufficient proof of the instrument so constituted. 

  
 - 24 -

 j. Binding Agreement between the Parties: This Agreement shall be binding on and
inure to the benefit of the Parties, their legal representatives, and their successors. 
 k. Paragraph Headings: The
paragraph headings form no part of this Agreement and may not be used to construe the provisions of this Agreement. 
 l.
Construction of Agreement: Each Party and its counsel have participated in the drafting of this Agreement. The Agreement shall not be construed for or against any Party as the draftsperson hereof. In addition, as used in this Agreement,
(a) words of any gender include all genders; (b) words using the singular or plural number also include the plural or singular number, respectively; and (c) the word “including” shall mean “including, but not limited
to.” 
 m. Authority: The Parties represent that each person signing this Agreement on behalf of a Party has the
full power and authority to enter into the Agreement. 
 n. Additional Documents: Each Party agrees to execute any
additional documents and to take further action which reasonably may be required to consummate this Agreement and/or otherwise fulfill the intent of the Parties. 
 [Signature Page Follows.] 

  
 - 25 -

 IN WITNESS WHEREOF, duly authorized representatives of the Parties have executed this
Agreement as of the Effective Date. 
  

									
	ALNYLAM PHARMACEUTICALS, INC.	 		 	TEKMIRA PHARMACEUTICALS CORPORATION
					
	By:	 	 /s/ Barry Greene
	 		 	By:	 	 /s/ Mark J. Murray

					
	Print Name:	 	 Barry Greene
	 		 	Print Name:	 	 Mark J. Murray

					
	Title:	 	 President & Chief Operating Officer
	 		 	Title:	 	 President & CEO

			
	ALCANA TECHNOLOGIES, INC.	 		 	PROTIVA BIOTHERAPEUTICS INC.
					
	By:	 	 /s/ T.D. Madden
	 		 	By:	 	 /s/ Mark J. Murray

					
	Print Name:	 	 Thomas Madden
	 		 	Print Name:	 	 Mark J. Murray

					
	Title:	 	 President & CEO
	 		 	Title:	 	 President & CEO

  
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 EXHIBIT A 

  
 - 27 -

 TEKMIRA – ALCANA SETTLEMENT BINDING TERM SHEET 

This is a confidential, binding summary of settlement terms between Tekmira Pharmaceuticals Corp. and Protiva Biotherapeutics, Inc. (collectively
“Tekmira”), on one hand, and AlCana Technologies, Inc. (“AlCana”) on the other hand. This document is intended to and does create expectancies and legally binding rights and obligations. The parties expect to enter into a further
agreement implementing these terms in more detail. 
 Definitions: 
 “Effective Date” has the same meaning as in the accompanying Settlement Agreement to which this Binding Term Sheet is attached. 
 “Field of Use” means the delivery of an RNAi Product for any and all purposes. 

“Intellectual Property” means any and all discoveries, inventions, information, knowledge, know-how, trade secrets, designs, practices,
methods, uses, compositions of matter, articles of manufacture, protocols, formulas, processes, assays, skills, experience, techniques, data, reports, and results of experimentation and testing and other scientific or technical information,
patentable or otherwise, controlled by a party after the Effective Date. 
 “Licensed Product” means any product, good, or
service covered by a claim of the Tekmira controlled Intellectual Property or AlCana controlled Intellectual Property. 

“siRNA” means a double-stranded ribonucleic acid (RNA) composition designed to act primarily through an RNA interference mechanism that
consists of either (a) two separate oligomers of native or chemically modified RNA that are hybridized to one another along a substantial portion of their lengths, or (b) a single oligomer of native or chemically modified RNA that is
hybridized to itself by self-complementary base-pairing along a substantial portion of its length to form a hairpin. 
 “RNAi
Product” means a product containing, comprised of or based on siRNA, Dicer Substrates, Multivalent RNA, or any derivatives thereof, which are effective in gene function modulation and designed to modulate the function of particular genes or
gene products by causing degradation through RNA interference of a Target mRNA to which such siRNAs or siRNA derivatives or moieties are complementary. For greater clarity, an RNAi Product shall not include Antisense. 

“Sublicensable Product” means a Supplemental Field Product that has been developed by AlCana and for which AlCana has shown a
pharmacological effect of that product against the Target in in vivo studies in a small animal species. 

  
 - 28 -

 “Supplemental Field” means the delivery of (i) single-stranded oligonucleotides,
either chemically modified or unmodified, acting through the RNase H mechanism or by or other mechanisms of translational arrest but excluding RNA interference involving RISC (“Antisense”) and (ii) DNA plasmids or messenger RNA
(mRNA) either chemically modified or unmodified that are transcribed and/or translated into protein and wherein the pharmacological activity is dependent on expression of the protein (“Gene Therapy”). 

“Supplemental Field Product” means a product containing, comprised of, or based on Antisense or Gene Therapy. 

“Target” means: (a) a polypeptide or entity comprising a combination of at least one polypeptide and other macromolecules, that is
a site or potential site of therapeutic intervention by a therapeutic agent; or a nucleic acid which is required for expression of such polypeptide or other macromolecule if said macromolecule is itself a polypeptide; (b) variants of a
polypeptide (including any splice variant or fusions thereof), entity or nucleic acid described in clause (a); or (c) a defined non-peptide entity, including a microorganism, virus, fungi, bacterium or single cell parasite; provided
that the entire genome of a virus shall be regarded as a single Target. 
 A. LICENSE TO
TEKMIRA’S LNP TECHNOLOGY 
  

	 	•	 	 Tekmira will grant to AlCana a non-exclusive right to use the Tekmira Combined Licensed Technology and the Category 1 Patents (each as defined in the
2012 Cross-License Agreement between Tekmira and Alnylam referenced in the Settlement Agreement) for use in developing and commercializing Supplemental Field Products. The license granted to AlCana supersedes and replaces the licenses granted to
AlCana by Alnylam and Tekmira in the current Supplemental Agreement 

  

	 	•	 	 AlCana’s right to sub-license will be on a Sublicensable Product-by-Sublicensable Product basis. 

 

	 	•	 	 In consideration for this license, AlCana will pay the following to Tekmira for a Supplemental Field Product (covered by Tekmira Intellectual Property)
 

 Milestones 
  

			
	 Milestone
	  	Amount (U.S. Dollars)
	 [**]
	  	[**]
	 [**]
	  	[**]
	 [**]
	  	[**]
	 [**]
	  	[**]
	 [**]
	  	[**]

  
  

	[**]	 Certain
information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

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 Royalties 

 

					
	 Annual Net Sales (per product)
	  	Royalty*	 
	 [**]
	  	 	[**]	% 
	 [**]
	  	 	[**]	% 
	 [**]
	  	 	[**]	% 

  

	*	Royalty to be reduced by [**]% if covered only by a pending claim (to be defined), standard royalty offsets of [**]% will be included. 

B. ALCANA’S LICENSE TO TEKMIRA 

 

	 	•	 	 AlCana waives any milestone or royalty payments owed to AlCana by Tekmira under the Supplemental Agreement or Sponsored Research Agreement.

  

	 	•	 	 AlCana will grant to Tekmira a non-exclusive license to any AlCana Intellectual Property for use in RNAi Products. 

 

	 	•	 	 In consideration for this license, Tekmira will pay the following to AlCana for an RNAi Product (covered by AlCana Intellectual Property). 

 Milestones 
  

			
	 Milestone
	  	Amount (U.S. Dollars)
	 [**]
	  	[**]
	 [**]
	  	[**]
	 [**]
	  	[**]
	 [**]
	  	[**]
	 [**]
	  	[**]

 Royalties 
  

					
	 Annual Net Sales (per product)
	  	Royalty*	 
	 [**]
	  	 	[**]	% 
	 [**]
	  	 	[**]	% 
	 [**]
	  	 	[**]	% 

  

	*	Royalty to be reduced by [**]% if covered only by a pending claim (to be defined), standard royalty offsets of [**]% will be included 

  
  

	[**]	 Certain
information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

- 30 - 

 C. INTERFERX OPTION RIGHTS 

 

	 	•	 	 AlCana agrees to terminate the InterfeRx Option Agreement with Alnylam dated as of December 9, 2009 (“Option Agreement”) and Alnylam
will provide the three (3) InterfeRx options to Tekmira, provided that the options will be extended to a period of [**] years from the Effective Date, and will be subject to the terms and conditions of the 2012 Cross-License Agreement.

  

	 	•	 	 In consideration for the termination of the Option Agreement and the transfer of the options to Tekmira, Tekmira will pay to AlCana the following sums:

  

	 	•	 	 [**] US within [**] days of the Effective Date. 

  

	 	•	 	 [**] US within [**] days of Tekmira successfully exercising each InterfeRx Option (it being understood that Tekmira will exercise its 4 previously
negotiated options first) 

 D. SETTLEMENT AGREEMENT 

 

	 	•	 	 Tekmira, Alnylam and AlCana will dismiss with prejudice and with each party bearing its own costs all claims and counterclaims commenced in the
Massachusetts and British Columbia actions. The parties will execute full and final releases in favour of each other and instruct their counsel to file the appropriate documents with the court registries in each jurisdiction to cause the
dismissal of the actions. 

 E. NON-COMPETITION 

 

	 	•	 	 AlCana will not undertake any activities by itself or with a third party specifically directed to research and development of a RNAi Product (except as
allowed under Section H below) for a period of five (5) years after the Effective Date (“AlCana Non-Competition Period”). 

 F. REVENUE SHARING FROM SPONSORED RESEARCH AGREEMENT 

 

	 	•	 	 In exchange for a payment of [**] US by Tekmira within [**] business days of execution of the further detailed agreement implementing this Binding Term
Sheet, AlCana hereby agrees to provide Tekmira with [**]% of the milestone and royalty payments it receives from the University of British Columbia or Alnylam (directly or indirectly) as set forth in the Sponsored Research Agreement dated
July 27th 2009, but solely with respect to Licensed
Products covered by an Outstanding Claim of the UBC Controlled Patent Right (each as defined in the Sponsored Research Agreement) that was filed, or claims priority to a patent that was filed, before April 15, 2010. For the avoidance of doubt,
AlCana and Alnylam represent and warrant that such Licensed Products include Alnylam products that include the MC3 lipid. 

  
  

	[**]	 Certain
information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

- 31 - 

 G. AUDITS 
 At any given point in time, each Party will have on file complete and accurate records for the last [**] years of all net sales of products for which it is the paying Party, and AlCana shall have on file
complete and accurate records for the last [**] years of all payments received from UBC and Alnylam. The other Party to this Agreement will have the right, [**] during each twelve (12) month period, to retain at its own expense an independent
qualified certified public accountant reasonably acceptable to such Party to review such records solely for accuracy and for no other purpose upon reasonable notice and under a written obligation of confidentiality, during regular business hours. If
the audit demonstrates that the payments owed under this Agreement have been understated, the audited Party will pay the balance to such other Party together with interest on such amounts from the date on which such payment obligation accrued at a
rate equal to the then current [**] day United States dollar LIBOR rate plus [**] percent per annum. If the underpayment is greater than five percent of the amount owed, then the audited Party will reimburse such other Party for its reasonable
out-of-pocket costs of the audit. If the audit demonstrates that the payments owed under this Agreement have been overstated, such other Party to this Agreement will credit the balance against the next payment due from the audited Party (without
interest). 
 H. CHARITABLE FOUNDATION 
 AlCana is currently concluding an agreement with a charitable foundation (“Foundation”) covering a research and development program. The name of the Foundation will be disclosed in the detailed
agreement. The planned research is directed at development of potential therapeutics for the treatment of a specific chronic and currently untreatable disease (“Foundation Disease”) [**]. The research program will include studies involving
potential RNAi therapeutics. Tekmira agrees that AlCana will undertake this program under the following conditions: 
  

	i.	Any Intellectual Property that is generated in the collaboration will be called “Foundation IP” 

 

	ii.	All Foundation IP will be held and prosecuted by AlCana 

  

	iii.	AlCana will grant to Tekmira an exclusive license to the Foundation IP in the Field of Use, subject to the rights granted to the Foundation below

  

	iv.	AlCana will grant to the Foundation exclusive rights to the Foundation IP related specifically to the Foundation Disease 

The Foundation will pay to AlCana a [**]% royalty (less offsets) on Net Sales. AlCana will pass through [**]% of any royalty it obtains from the
Foundation to Tekmira 

  
  

	[**]	 Certain
information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

- 32 - 

 EXHIBIT B 

  
 - 33 -

 Alnylam Identified Sublicensees: 
 AlCana Technologies, Inc. 
 Ascletis Pharmaceuticals (Hangzhou) Co., Ltd. 

Genzyme Corporation 
 Monsanto Company

 Novartis Institutes for BioMedical Research, Inc. 
 Regulus Therapeutics Inc. (formerly Regulus Therapeutics LLC) 
 F. Hoffmann-La Roche Ltd,
Hoffman-La Roche Inc. (and its assignee, Arrowhead Research Corporation) 
 Takeda Pharmaceutical Company Limited 

University of British Columbia 
 Tekmira
Identified Sublicensees 
 AlCana Technologies, Inc. 
 Bristol-Myers Squibb Co. 
 Merck & Co., Inc. (and Sirna Therapeutics, Inc.) 

F. Hoffmann-La Roche Ltd, Hoffman-La Roche Inc. (and its assignee, Arrowhead Research Corporation) 

AlCana Identified Sublicensees 

Alnylam Pharamaceuticals, Inc. 
 University of
British Columbia 

  
 - 34 -

 Confidential 

 

 EXHIBIT C 

 Confidential 

 
 

 
 Contacts: 
 Alnylam Pharmaceuticals, Inc. 
 Cynthia Clayton 

Vice President, Investor Relations and 

Corporate Communications 
 617-551-8207

 Amanda Sellers (Media) 
 Spectrum

 202-955-6222 x2597 

Alnylam and Tekmira Restructure Relationship and Settle All Litigation 
 Cambridge, Mass., November 12, 2012 – Alnylam Pharmaceuticals, Inc. (Nasdaq: ALNY) announced today that they and Tekmira Pharmaceuticals Corporation have restructured their
relationship with a new licensing agreement and have resolved all litigation between the parties in a settlement agreement. The new license agreement consolidates and clarifies certain intellectual property (IP) elements related to lipid
nanoparticle (LNP) technology for RNAi therapeutics. Further, Alnylam has elected to independently manufacture its LNP-based RNAi therapeutic products and to buy-down certain future potential milestone payments and a significant portion of future
potential royalties for its ALN-VSP, ALN-PCS, and ALN-TTR02 programs. The settlement of all ongoing litigation between the two companies allows Alnylam to continue to focus its efforts on advancing innovative medicines to patients. 

“With this restructuring of our Tekmira relationship, we are gaining independence in our LNP manufacturing and decreasing the milestone and royalty
burdens on several of our LNP-based products. Further, the companies have created clarity around the overall patent estate for LNP-based products, while ensuring Alnylam’s full access to use this technology for our products in the future.
Of course, we are also pleased to put this legal matter behind us and continue our focus on advancing RNAi therapeutics through clinical trials with the goal of bringing them to the market where we can make an impact in the lives of patients and
their caregivers,” said Barry Greene, President and Chief Operating Officer of Alnylam. “Alnylam plans to continue to advance RNAi therapeutic products as part of its ‘Alnylam 5x15’ product strategy with LNP delivery technologies
- as employed with ALN-TTR02, ALN-PCS, and ALN-VSP, in addition to the use of the company’s proprietary conjugate-based delivery technology - as employed with ALN-TTRsc, ALN-AT3, and other undisclosed programs.” 

Under a new license agreement, Alnylam and Tekmira have agreed to consolidate certain IP elements related to LNP technology for the systemic delivery of
RNAi therapeutic products. Specifically, certain patents and patent applications, including the MC3 lipid family, will be assigned by Alnylam to Tekmira. Alnylam retains full rights to use this IP for advancing RNAi therapeutic products to the
market, including the rights to sublicense IP on a product-by-product basis. Alnylam has also agreed to grant five additional non-exclusive therapeutic licenses to Tekmira. 

 Confidential 

 

 In addition, Alnylam has elected to buy out its manufacturing obligations to Tekmira with respect to its
LNP-based pipeline programs. Alnylam will make a one-time payment of $30 million to Tekmira in order to have the rights to manufacture its own LNP-based products going forward, either itself or through a third-party contractor. Alnylam has
established its own Good Manufacturing Practice (GMP) capabilities and process for its LNP-based products. Alnylam will employ this manufacturing capability for the advancement of ALN-TTR02 into Phase III clinical trials, which the company expects
to start by the end of 2013. 
 Further, Alnylam has elected to buy-down certain future potential milestone and royalty payments due to Tekmira
for its ALN-VSP, ALN-PCS, and ALN-TTR02 LNP-based products. Specifically, Alnylam will make a one-time payment of $35 million to Tekmira in association with the termination of the prior license agreements between the companies and the significant
reduction in milestone and royalty payments for its ALN-VSP, ALN-PCS, and ALN-TTR02 products. Tekmira will also be eligible to receive an additional $10 million in aggregate in contingent milestone payments related to advancement of ALN-VSP and
ALN-TTR02 products, which now represent the only potential milestones for ALN-VSP, ALN-PCS and ALN-TTR02 products. Alnylam will otherwise continue to be obligated to pay Tekmira potential milestones and royalties on all other future LNP-based
products on terms identical to its original license agreements. Tekmira will continue to be obligated to pay Alnylam potential milestones and royalties on certain RNAi therapeutic products developed under its licenses from Alnylam on terms identical
to its original license agreements. 
 Finally, Alnylam and Tekmira have agreed to settle all ongoing litigation between the parties. The
parties have also agreed to a resolution of the interference proceeding related to Alnylam-owned US Patent No. 7,718,629 directed to an siRNA component in ALN-VSP. In addition, Tekmira and AlCana Technologies, Inc. have agreed to drop their
claims and counterclaims in both the Massachusetts and British Columbia lawsuits. Finally, the parties have agreed to a covenant not to sue on matters related to the current dispute in the future, which includes liquidated damages to be paid if the
covenant is breached, and have also agreed to resolve any future disputes that might arise over the next three years with binding arbitration. 

Alnylam will incur a $65 million charge to operating expenses during the fourth quarter of 2012 related to the restructuring of its license agreements
with Tekmira. As a result of the payments being made in connection with this restructuring, Alnylam is revising its financial guidance to end 2012 with greater than $215 million in cash. 
 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 

 Confidential 

 

 
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 RNA (siRNA), 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-AT3 for the treatment of hemophilia, ALN-PCS for the treatment of severe hypercholesterolemia, ALN-HPN for the treatment of refractory anemia, and ALN-TMP for the treatment of hemoglobinopathies. As part of its “Alnylam 5x15TM”
strategy, the company expects to have five RNAi therapeutic products for genetically defined diseases in clinical development, including programs in advanced stages, on its own or with a partner by the end of 2015. Alnylam has additional partnered
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, Cubist, Ascletis,
Monsanto, and Genzyme. 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, Sanofi,
AstraZeneca and Biogen Idec. Alnylam has also formed Alnylam Biotherapeutics, a division of the company focused on the development of RNAi technologies for applications in biologics manufacturing, including recombinant proteins and monoclonal
antibodies. Alnylam’s VaxiRNATM platform applies RNAi technology to improve the manufacturing processes for vaccines; GlaxoSmithKline is a collaborator in this effort. 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. 
 About LNP Technology 

Alnylam has licenses to Tekmira LNP intellectual property for use in RNAi therapeutic products using LNP technology. 

Alnylam Forward-Looking Statements 

Various statements in this release concerning Alnylam’s future expectations, plans and prospects, including without limitation, statements regarding
Alnylam’s views with respect to the outcome of this settlement and the restructuring of its relationship with Tekmira, its expectations 

 Confidential 

 

 
regarding the payment to and receipt from Tekmira of future milestones and royalties, its plans with respect to the manufacture of LNP-based RNAi therapeutics, its expected cash position as of
December 31, 2012, and Alnylam’s expectations regarding its “Alnylam 5x15” product strategy, 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, without limitation, Alnylam’s ability to successfully advance RNAi therapeutics, in
particular ALN-VSP, ALN-PCS and ALN-TTR, resulting in the potential achievement of milestone and royalty events and thus the benefit to Alnylam of the buy-down of such payments, Alnylam’s ability to manufacture or have manufactured its
LNP-based RNAi therapeutics for clinical and commercial use, obtaining, maintaining and protecting intellectual property and Alnylam’s dependence on Tekmira for the protection of and access to certain LNP IP, obtaining regulatory approval for
products, competition from others using technology similar to Alnylam’s and others developing products for similar uses, Alnylam’s ability to raise additional capital, and Alnylam’s ability to establish and maintain strategic business
alliances and new business initiatives, as well as those risks more fully discussed in the “Risk Factors” section of its most recent quarterly report on Form 10-Q 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.

 Confidential 

 
 

 
 Tekmira and Alnylam Restructure Relationship and Settle All Litigation 

 

			
	FOR IMMEDIATE RELEASE:	  	November 12, 2012

  
 Vancouver, BC
— Tekmira Pharmaceuticals Corporation (Nasdaq: TKMR, TSX: TKM) today announced that it has entered into a settlement agreement with Alnylam Pharmaceuticals, Inc. that resolves all litigation between the companies, and has signed a new licensing
agreement that restructures the relationship and provides clarity on all intellectual property and licensing issues between the companies. As a result of the restructuring and new agreements, Tekmira will receive $65 million within 10 days and is
eligible to receive $10 million in near-term milestone payments expected to be received in 2013. 
 “Today’s announcement provides
assurances for our stakeholders that we accomplished what we set out to do when we initiated this litigation. We now have clarity around the intellectual property that protects our lipid nanoparticle (LNP) technology and a cash payment that will
enable us to continue the execution of our business plan into 2015,” said Dr. Mark J. Murray, Tekmira’s President and CEO. 

“Tekmira is entering an exciting new era of growth and development. Clarity of rights and ownership around our LNP intellectual property – the
leading technology for the systemic delivery of RNAi therapeutics – combined with a strong balance sheet should strengthen our ability to invest in, advance and expand our own product pipeline. We also look forward to establishing new business
relationships with pharmaceutical partners driven by intellectual property certainty and recent promising clinical data validating the therapeutic utility of LNP-enabled products,” added Dr. Murray. 

As part of this settlement and restructuring, all previous agreements between the companies are terminated and a new license agreement has been
established that provides clear terms outlining Tekmira’s LNP intellectual property. Under the terms of the new license agreement: 
  

	 	•	 	 Alnylam will transfer all agreed-upon patents and patent applications related to LNP technology for the systemic delivery of RNAi therapeutic products,
including the MC3 lipid family, to Tekmira, who will own and control prosecution of this intellectual property portfolio. Tekmira is the only company able to sublicense LNP intellectual property in future platform-type relationships.

  

	 	•	 	 Tekmira will receive a total of $65 million in cash payments within 10 days. This includes $30 million associated with the termination of the
manufacturing agreement and $35 million associated with the termination of the previous license agreements, as well as a modification of the milestone and royalty schedules associated with Alnylam’s ALN-VSP, ALN-PCS, and ALN-TTR02 programs.

 Confidential 

 

	 	•	 	 Tekmira is also eligible to receive an additional $10 million in near-term milestones, comprised of a $5 million payment upon ALN-TTR02 entering a
pivotal trial and a $5 million payment related to initiation of clinical trials for ALN-VSP in China. Both near-term milestones are expected to occur in 2013. 

 

	 	•	 	 Alnylam no longer has “opt-in” rights to Tekmira’s lead oncology product, TKM-PLK1; Tekmira now holds all development and
commercialization rights related TKM-PLK1, which is expected to enter Phase 2 clinical trials in 2013. 

  

	 	•	 	 In addition to its eight existing InterfeRx licenses, Tekmira will receive five additional non-exclusive licenses to develop and commercialize RNAi
therapeutics based on Alnylam’s siRNA payload technology. Tekmira will pay Alnylam milestones and royalties for these products. 

  

	 	•	 	 Alnylam has a license to use Tekmira’s intellectual property to develop and commercialize products, including ALN-TTR02, ALN-VSP, ALN-PCS, and
other LNP-enabled products. Alnylam has rights to sublicense Tekmira’s LNP technology if it is part of a product sublicense. Tekmira remains eligible for milestone and royalty payments as Alnylam’s LNP-enabled products are developed and
commercialized. 

 Alnylam and Tekmira have agreed to settle all ongoing litigation between the parties. The parties have also
agreed to a resolution of the interference proceeding related to Alnylam-owned US Patent No. 7,718,629 directed to an siRNA component in ALN-VSP. Finally, the parties have agreed to a covenant not to sue on matters related to the current
dispute in the future, which includes liquidated damages to be paid if the covenant is breached, and have also agreed to resolve any future disputes that might arise over the next three years with binding arbitration. 

Tekmira and AlCana Technologies, Inc. have also agreed to settle all ongoing litigation between the parties. Tekmira expects to enter into a cross
license agreement with AlCana which will include milestone and royalty payments, and AlCana has agreed not to compete in the RNAi field for five years. 
 About RNAi and Tekmira’s LNP Technology 
 RNAi therapeutics have the potential to treat
a broad number of human diseases by “silencing” disease causing genes. The discoverers of RNAi, a gene silencing mechanism used by all cells, were awarded the 2006 Nobel Prize for Physiology or Medicine. RNAi therapeutics, such as
“siRNAs,” require delivery technology to be effective systemically. Tekmira believes its LNP technology represents the most widely adopted delivery technology for the systemic delivery of RNAi therapeutics. Tekmira’s LNP platform is
being utilized in multiple clinical trials by both Tekmira and its partners. Tekmira’s LNP technology (formerly referred to as stable nucleic acid-lipid particles or SNALP) encapsulates siRNAs with high efficiency in uniform lipid nanoparticles
that are effective in delivering RNAi therapeutics to disease sites in numerous 

 Confidential 

 

 
preclinical models. Tekmira’s LNP formulations are manufactured by a proprietary method which is robust, scalable and highly reproducible and LNP-based products have been reviewed by
multiple FDA divisions for use in clinical trials. LNP formulations comprise several lipid components that can be adjusted to suit the specific application. 
 About Alnylam RNAi Technology 
 Tekmira has licenses to Alnylam RNAi intellectual property
for certain siRNA programs. 
 About Tekmira 
 Tekmira Pharmaceuticals Corporation is a biopharmaceutical company focused on advancing novel RNAi therapeutics and providing its leading lipid nanoparticle delivery technology to pharmaceutical partners.
Tekmira has been working in the field of nucleic acid delivery for over a decade and has broad intellectual property covering LNPs. Further information about Tekmira can be found at www.tekmirapharm.com. Tekmira is based in Vancouver, B.C.

 Forward-Looking Statements and Information 
 This news release contains “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking
statements”). Forward-looking statements are generally identifiable by use of the words “believes,” “may,” “plans,” “will,” “anticipates,” “intends,” “budgets,”
“could,” “estimates,” “expects,” “forecasts,” “projects” and similar expressions, and the negative of such expressions. Forward-looking statements in this news release include statements about the
settlement to resolve all litigation between Tekmira and Alnylam Pharmaceuticals, Inc. and AlCana Technologies, Inc., including the patent infringement lawsuit; statements about the quantum and timing of Tekmira’s expected payments related to
the settlement agreement and new licensing agreement with Alnylam; statements about Tekmira’s expected payments funding the continued execution of its business plan into 2015; Tekmira’s ability to invest in, advance and expand its product
pipeline; the establishment of new business relationships with pharmaceutical partners; clinical data validating the therapeutic utility of LNP-enabled products; expected timing of Phase 2 clinical trials for TKM-PLK1; milestones and royalty
payments from Alnylam’s LNP-enabled products; the additional five non-exclusive InterfeRx licenses; future disputes and mechanisms for resolution of disputes with Alnylam; Tekmira’s expectations of entering into a cross license agreement
with AlCana, which includes anticipated milestone and royalty payments and an expected agreement for AlCana not to compete in the RNAi field for five years; and Tekmira’s strategy, future operations, clinical trials, prospects and the plans of
management; RNAi (ribonucleic acid interference) product development programs; the future royalty payments expected from the ALN-TTR, ALN-VSP, ALN-PCS and other LNP-enabled product development programs of Alnylam; and Tekmira’s expectations
with respect to existing and future agreements with third parties. 

 Confidential 

 

 With respect to the forward-looking statements contained in this news release, Tekmira has made numerous
assumptions regarding, among other things: LNP’s status as a leading RNAi delivery technology; the timing and results of clinical data releases and use of LNP technology by Tekmira’s development partners and licensees; the time required to
complete research and product development activities; the timing and quantum of payments to be received under contracts with Tekmira’s partners including Alnylam and others; the timing of receipt of an immediate payment of $65 million and $10
million in additional milestone payments from Alnylam expected in 2013; Tekmira’s receipt of five additional non-exclusive InterfeRx licenses; Tekmira’s financial position and its ability to execute on its business strategy; and
Tekmira’s ability to protect its intellectual property rights and not to infringe on the intellectual property rights of others. While Tekmira considers these assumptions to be reasonable, these assumptions are inherently subject to significant
business, economic, competitive, market and social uncertainties and contingencies. 
 Additionally, there are known and unknown risk factors
which could cause Tekmira’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained herein. Known risk factors
include, among others: expected payments related to the licensing agreement between Tekmira and Alnylam may not be received in the quantum and on the timing currently anticipated, or at all; payments received from the settlement may not be
sufficient to fund Tekmira’s continued business plan as currently anticipated; Tekmira may never invest in, advance or expand its product pipeline; Tekmira may not be able to establish new business relationships with pharmaceutical partners;
LNP-enabled products may have no therapeutic utility; TKM-PLK1 may never enter into Phase 2 clinical trials; Tekmira may never receive milestones or royalty payments from Alnylam; Tekmira may not receive any additional non-exclusive InterfeRx
licenses; the possibility that Tekmira does not enter into a cross license agreement with AlCana on the terms currently anticipated, or all; the possibility that other organizations have made advancements in RNAi delivery technology that Tekmira is
not aware of; difficulties or delays in the progress, timing and results of clinical trials; future operating results are uncertain and likely to fluctuate; economic and capital market conditions; Tekmira’s ability to obtain and protect
intellectual property rights, and operate without infringing on the intellectual property rights of others; Tekmira’s research and development capabilities and resources will not meet current or expected demand; Tekmira’s development
partners and licensees conducting clinical trial, development programs and joint venture strategic alliances will not result in expected results on a timely basis, or at all; anticipated payments under contracts with Tekmira’s collaborative
partners may not be received by Tekmira on a timely basis, or at all, or in the quantum expected by Tekmira; Tekmira’s products may not prove to be effective in the treatment of cancer and infectious disease; and the possibility that Tekmira
has not sufficiently budgeted for expenditures necessary to carry out planned activities. 

 Confidential 

 

 A more complete discussion of the risks and uncertainties facing Tekmira appears in Tekmira’s
annual report on Form 20-F for the year ended December 31, 2011 (Annual Report), which is available at www.sedar.com or at www.sec.gov/edgar.shtml. All forward-looking statements herein are qualified in their entirety by this cautionary
statement, and Tekmira disclaims any obligation to revise or update any such forward-looking statements or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events
or developments, except as required by law. 
 CONTACTS: 
 TEKMIRA 
 Investors 
 Jodi Regts 
 Director, Investor Relations 
 Phone: 604-419-3234 
 Email: jregts@tekmirapharm.com 

Media 
 David Ryan 

Longview Communications Inc. 
 Phone:
416-649-8007 
 Email: dryan@longviewcomms.ca 

 Confidential 

[**] 
  

 

	[**] 	 Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

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