CLASS ACTION ORDER PRELIMINARILY APPROVING SETTLEMENT AND PROVIDING FOR NOTICE WHEREAS, on November 3, 2021, the Parties to the above-entitled action (the “Action”)1 entered into a Stipulation of Settlement (the “Stipulation” or “Settlement”), which is subject to review by this Court and which, together with the exhibits thereto, sets forth the terms and conditions for the Settlement and dismissal of the claims alleged in the Action; and the Court having read and considered the Stipulation and the accompanying documents; and the Parties to the Stipulation having consented to the entry of this Notice Order; and all capitalized terms used herein having the meanings defined in the Stipulation; NOW, THEREFORE, IT IS HEREBY ORDERED, this 3rd day of December 2021, that: 1. The Court preliminarily finds that: (a) the Settlement resulted from informed, extensive arm’s-length negotiations, including mediation among Plaintiff and Defendants under the direction of a very experienced mediator, Robert A. Meyer, Esq. of JAMS; and (b) the Settlement is sufficiently fair, reasonable, and adequate to warrant providing notice of the Settlement to the Settlement Class. 2. For purposes of the Settlement only, and preliminarily, for purposes of this Notice Order, the Action shall proceed as a class action, pursuant to CPLR §§901 and 902, on behalf of a class (the “Settlement Class”) consisting of all persons who purchased or otherwise acquired Alnylam common stock pursuant or traceable to Alnylam’s Registration Statement issued in connection with its November 14, 2017 secondary public offering (the “Offering”). For purposes of the Settlement only, the Settlement Class includes persons who purchased or otherwise acquired Alnylam common stock between November 14, 2017 and September 12, 2019, inclusive. Excluded from the Settlement Class are Defendants and their immediate families; the officers, directors and affiliates of Defendants during the Settlement Class Period and members of their immediate families; the legal representatives, heirs, successors, or assigns of any of the foregoing; and any entity in which any Defendant has or had a controlling interest. For avoidance of doubt, Investment Vehicles2 are not excluded from the Settlement Class solely because they are, or are managed by, affiliates or subsidiaries of a Defendant. However, to the extent that any Defendant or any entity that might be deemed to be an affiliate or subsidiary thereof (i) managed or advised, and (ii) directly or indirectly held a beneficial interest in, said Investment Vehicle during the Settlement Class Period, that beneficial interest in the Investment Vehicle is excluded from the Settlement Class. Also excluded from the Settlement Class are those Persons who would otherwise be Settlement Class Members but who timely and validly exclude themselves therefrom. 3. For purposes of the Settlement only, and preliminarily, for purposes of this Notice Order, the Plaintiff is hereby certified as Settlement Class Representative, and Plaintiff’s Counsel is appointed as Settlement Class Counsel. 4. A Fairness Hearing is hereby scheduled to be held before the Court at Part 43, via Microsoft Teams Virtual Platform, on April 12, 2022, at 2:30 p.m., for the following purposes: (a) to determine whether the proposed Settlement is fair, reasonable, and adequate, and should be approved by the Court; (a) to determine whether the proposed Settlement is fair, reasonable, and adequate, and should be approved by the Court; (b) to determine whether the Judgment as provided under the Stipulation should be entered; (c) to determine whether the proposed Plan of Allocation for the distribution of the Net Settlement Fund should be approved by the Court as fair, reasonable and adequate; (d) to determine whether to grant final certification of a Settlement Class for purposes of the Settlement; (e) to consider Plaintiff’s Counsel’s application for an award of attorneys’ fees and expenses; (f) to consider Plaintiff’s request for an award for its efforts in prosecuting this Action on behalf of the Settlement Class; (g) to consider any objections or opt outs received by the Court; and (h) to rule upon such other matters as the Court may deem appropriate. 5. The Court reserves the right to approve the Settlement with or without modification and with or without further notice to the Settlement Class and may adjourn the Fairness Hearing without further notice to the Settlement Class. The Court reserves the right to enter the Judgment approving the Stipulation regardless of whether it has approved the Plan of Allocation, Plaintiff’s Counsel’s request for an award of attorneys’ fees and expenses and Plaintiff’s request for an award for its representation of the Settlement Class. 6. The Court approves the form, substance and requirements of the Notice of Pendency and Proposed Settlement of Class Action (the “Notice”), the Proof of Claim and Release (the “Proof of Claim”), and the Summary Notice of Proposed Settlement of Class Action (the “Summary Notice”), annexed hereto as Exhibits 1, 2 and 3, respectively. 7. The Court approves the appointment of Analytics Consulting, LLC as the Claims Administrator to supervise and administer the notice procedure in connection with the proposed Settlement as well as the processing of Proofs of Claim as more fully set forth below. 8. The Claims Administrator shall cause the Notice and the Proof of Claim, substantially in the forms annexed hereto, to be mailed, by first class mail, postage prepaid, by December 17, 2021, to all Settlement Class Members who can be identified with reasonable effort. By December 10, 2021, Alnylam, at its expense, shall make, or cause to be made, the last known addresses of Alnylam record shareholders to the Claims Administrator for the purpose of identifying and giving notice to the Settlement Class. The Claims Administrator shall use reasonable efforts to give notice to nominee purchasers such as brokerage firms and other persons or entities who purchased or otherwise acquired Alnylam common stock during the Settlement Class Period as record owners but not as beneficial owners. Such nominee purchasers are directed, within ten (10) business days of their receipt of the Notice, to either forward copies of the Notice and Proof of Claim to their beneficial owners or to provide the Claims Administrator with lists of the names and addresses of the beneficial owners, and the Claims Administrator is ordered to send the Notice and Proof of Claim promptly to such identified beneficial owners. Nominee purchasers who elect to send the Notice and Proof of Claim to their beneficial owners shall send a statement to the Claims Administrator confirming that the mailing was made as directed. Additional copies of the Notice shall be made available to any record holder requesting such for the purpose of distribution to beneficial owners, and such record holders shall be reimbursed from the Settlement Fund, upon receipt by the Claims Administrator of proper documentation, for the reasonable expense of sending the Notice and Proof of Claim to beneficial owners. 9. The Claims Administrator shall cause the Summary Notice to be published in The Wall Street Journal and once over a national newswire service, by December 27, 2021. 10. Plaintiff’s Counsel shall, by April 5, 2022, file with the Court and serve on the Parties proof of mailing of the Notice and Proof of Claim and proof of publication of the Summary Notice. 11. The form and content of the Notice and the Summary Notice, and the method set forth herein of notifying the Settlement Class of the Settlement and its terms and conditions, meet the requirements of New York law, due process, and all other applicable laws and constitute the best notice practicable under the circumstances, and shall constitute due and sufficient notice to all persons and entities entitled thereto and reasonably calculated under the circumstances to describe the terms and effect of the Settlement and to apprise the Settlement Class Members of their right to object to the proposed Settlement and to exclude themselves from the Settlement Class. No Settlement Class Member will be relieved from the terms and conditions of the Settlement, including the releases provided pursuant thereto, based upon the contention or proof that such Settlement Class Member failed to receive actual or adequate notice. 12. In order to be entitled to participate in the Net Settlement Fund, in the event the Settlement is consummated in accordance with its terms set forth in the Stipulation, each Settlement Class Member shall take the following actions and be subject to the following conditions: (a) By March 17, 2022, each Person claiming to be an Authorized Claimant shall be required to submit to the Claims Administrator a completed Proof of Claim, substantially in a form contained in Exhibit 2 attached hereto and as approved by the Court, signed under penalty of perjury and supported by such documents as are specified in the Proof of Claim and as are reasonably available to the Authorized Claimant. (b) Except as otherwise ordered by the Court, all Settlement Class Members who fail to timely submit a Proof of Claim within such period, or such other period as may be ordered by the Court, shall be forever barred from receiving any payments pursuant to the Stipulation and the Settlement set forth therein, but will in all other respects be subject to and bound by the provisions of the Stipulation, the releases contained therein, and the Final Judgment, Notwithstanding the foregoing, Plaintiff’s Counsel may, in its discretion, accept for processing late submitted claims so long as the distribution of the Net Settlement Fund to Authorized Claimants is not materially delayed. In connection with processing the Proofs of Claim, no discovery shall be allowed on the merits of the Action or the Settlement. No Person shall have any claim against Plaintiff, Plaintiff’s Counsel or the Claims Administrator by reason of the decision to exercise such discretion whether to accept late-submitted claims. (c) As part of the Proof of Claim, each Settlement Class Member shall submit to the jurisdiction of the Court with respect to the claim submitted, and shall (subject to effectuation of the Settlement) release all Released Claims as provided in the Stipulation. 13. Settlement Class Members shall be bound by all determinations and judgments in this Action, whether favorable or unfavorable, unless they request exclusion from the Settlement Class in a timely and proper manner, as hereinafter provided. A Settlement Class Member wishing to make such request shall, no later than March 22, 2022, mail a request for exclusion in written form by first class mail postmarked to the address designated in the Notice. Such request for exclusion shall clearly indicate the name, address and telephone number of the person seeking exclusion, that the sender requests to be excluded from the Settlement Class, and must be signed by such person. Such persons requesting exclusion are also directed to state the date(s), price(s), and number of shares of Alnylam common stock they purchased or acquired pursuant or traceable to the Registration Statement issued in connection with the Offering. The request for exclusion shall not be effective unless it is made in writing within the time stated above, and the exclusion is accepted by the Court. Settlement Class Members requesting exclusion from the Settlement Class shall not be entitled to receive any payment out of the Net Settlement Fund as described in the Stipulation and Notice. 14. The Court will consider objections to the Settlement, the Plan of Allocation, the payment to Plaintiff, and/or the award of attorneys’ fees and expenses. Any person wanting to object must do so in writing and may also appear at the Fairness Hearing. To the extent any person wants to object in writing, such objections and any supporting papers, accompanied by proof of Settlement Class membership, shall be filed with the Supreme Court of the State of New York, County of New York: Commercial Division, 60 Centre Street, New York, NY 10007, and copies of all such papers served no later than March 22, 2022, to each of the following: Theodore J. Pintar, Robbins Geller Rudman & Dowd LLP, 655 West Broadway, Suite 1900, San Diego, CA 92101, on behalf of Plaintiff and the Settlement Class; Alexander C. Drylewski, Skadden, Arps, Slate, Meagher & Flom LLP, One Manhattan West, New York, NY 10001, on behalf of the Alnylam Defendants; and Adam S. Hakki, Shearman & Sterling LLP, 599 Lexington Avenue, New York, NY 10022, on behalf of the Underwriter Defendants. Persons who intend to object in writing to the Settlement, the Plan of Allocation, the request for an award of attorneys’ fees and expenses and/or Plaintiff’s request for an award for representing the Settlement Class and desire to present evidence at the Fairness Hearing must include in their written objections copies of any exhibits they intend to introduce into evidence at the Fairness Hearing. If an objector hires an attorney to represent him, her or it for the purposes of making an objection, the attorney must both effect service of a notice of appearance on counsel listed above and file it with the Court by no later than March 22, 2022. A Settlement Class Member who files a written objection does not have to appear at the Fairness Hearing for the Court to consider his, her or its objection. However, if the Settlement Class Member intends to appear at the Fairness Hearing, the Settlement Class Member shall identify any witnesses they may seek to call and exhibits they intend to offer at the Fairness Hearing in the papers served as set forth above no later than March 22, 2022. Any member of the Settlement Class who does not make his, her, or its objection in the manner provided in the Notice shall be deemed to have waived such objection and shall forever be foreclosed from making any objection to the fairness or adequacy, of the Settlement set forth in the Stipulation, to the Plan of Allocation, and to the award of attorneys’ fees and expenses to Plaintiff’s Counsel and Plaintiff’s request for an award, unless otherwise ordered by the Court. 15. Any Person that submits a request for exclusion may thereafter submit to the Claims Administrator and to Plaintiff’s Counsel a written and signed revocation of that request for exclusion, provided that it is received no later than April 5, 2022, in which event that Person will be included in the Settlement Class. 16. All papers in support of the Settlement, the Plan of Allocation, and any application by Plaintiff’s Counsel for attorneys’ fees and expenses and an award to Plaintiff shall be filed by March 8, 2022. All reply papers shall be filed and served by April 5, 2022. 17. All funds held by the Escrow Agent shall be deemed and considered to be in custodia legis of the Court, and shall remain subject to the jurisdiction of the Court, until such time as such funds shall be distributed pursuant to the Stipulation and/or further order(s) of the Court. 18. The Claims Administrator, Defendants’ Counsel, and Plaintiff’s Counsel shall promptly furnish each other with copies of any and all objections that come into their possession. 19. Pending final determination of whether the Settlement should be approved, the Plaintiff, all Settlement Class Members, and each of them, and anyone who acts or purports to act on their behalf, shall not institute, commence, maintain or prosecute, and are hereby barred and enjoined from instituting, continuing, commencing, maintaining or prosecuting any action in any court or tribunal that asserts Released Claims against any of the Released Parties. Unless and until the Stipulation is cancelled and terminated pursuant to its terms, all proceedings in the Action, other than such proceedings as may be necessary to carry out the terms and conditions of the Settlement, are hereby stayed and suspended until further order of the Court. 20. All reasonable expenses incurred in identifying and notifying Settlement Class Members, as well as administering the Settlement Fund, shall be paid as set forth in the Stipulation and herein. In the event the Settlement is not approved by the Court, or otherwise fails to become effective, neither Plaintiff nor any of its counsel shall have any obligation to repay any amounts actually and properly disbursed from the Settlement Fund, except as provided for in the Stipulation. 21. If any specified condition to the Settlement set forth in the Stipulation is not satisfied and Plaintiff or Defendants elect to terminate the Settlement, then, in any such event, the Stipulation, including any amendment(s) thereof, shall be null and void and of no further force or effect (except to the extent otherwise expressly provided in the Stipulation), without prejudice to any party, and may not be introduced as evidence or referred to in this Action, or any action or proceeding by any person or entity for any purpose, and each Party shall be restored to his, her or its respective position as it existed on August 31, 2021. 22. Neither the Stipulation nor the terms of the Settlement, nor any of the negotiations or proceedings connected with it, nor this Notice Order, shall be construed as an admission or concession by Defendants of the truth of any of the allegations in the Action, or of any liability, fault, or wrongdoing of any kind. 23. The Court may adjourn or continue the Fairness Hearing without further written notice. 24. The Court retains exclusive jurisdiction over the Action to consider all further matters arising out of or connected with the Settlement. The Court may approve the Settlement, with such modifications as may be agreed to by the Parties, if appropriate, without further notice to the Settlement Class. Dated: December 3, 2021 EXHIBIT 1 Chester County Employees Retirement Fund, Individually and on Behalf of All Others Similarly Situated, Plaintiff v. Alnylam Pharmaceuticals, Inc., John M. Maraganore, Michael P. Mason, Dennis A. Ausiello, Michael W. Bonney, John K. Clarke, Marsha H. Fanucci, Steven M. Paul, David E.I. Pyott, Paul R. Schimmel, Amy W. Schulman, Phillip A. Sharp, Kevin P. Starr, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Piper Jaffray & Co., JMP Securities LLC, Needham & Company, LLC, Chardan Capital Markets, LLC and B. Riley FBR, Inc. n/k/a B. Riley Securities, Inc., Defendants; 655272/2019 TO: ALL PERSONS WHO PURCHASED OR OTHERWISE ACQUIRED ALNYLAM PHARMACEUTICALS, INC. (“ALNYLAM” OR THE “COMPANY”) COMMON STOCK PURSUANT OR TRACEABLE TO THE REGISTRATION STATEMENT ISSUED IN CONNECTION WITH ALNYLAM’S NOVEMBER 14, 2017 SECONDARY PUBLIC OFFERING (THE “OFFERING”) (“SETTLEMENT CLASS” OR “SETTLEMENT CLASS MEMBERS”)3 IN ORDER TO QUALIFY FOR A SETTLEMENT PAYMENT, YOU MUST TIMELY SUBMIT A PROOF OF CLAIM AND RELEASE FORM (“PROOF OF CLAIM”) BY MARCH 17, 2022. THIS NOTICE WAS AUTHORIZED BY THE COURT. IT IS NOT A LAWYER SOLICITATION. PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. WHY SHOULD I READ THIS NOTICE? This Notice is given pursuant to an order issued by the Supreme Court of the State of New York, County of New York: Commercial Division (the “Court”). This Notice serves to inform you of the proposed settlement of the above-captioned class action lawsuit (the “Settlement”) and the hearing (the “Fairness Hearing”) to be held by the Court to consider the fairness, reasonableness, and adequacy of the Settlement, as set forth in the Stipulation of Settlement dated November 3,2021 (the “Stipulation”), by and between Plaintiff Chester County Employees Retirement Fund (“Plaintiff”), on behalf of itself and the Settlement Class (as defined below), and Defendants Alnylam Pharmaceuticals, Inc., John M. Maraganore, Michael P. Mason, Dennis A. Ausiello, Michael W. Bonney, John K. Clarke, Marsha H. Fanucci, Steven M. Paul, David E.I. Pyott, Paul R. Schimmel, Amy W. Schulman, Phillip A. Sharp and Kevin P. Starr (the “Individual Defendants,” and collectively with Alnylam, the “Alnylam Defendants”), Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Needham & Company, LLC, Piper Jaffray & Co. (n/k/a Piper Sandler & Co.), JMP Securities LLC, Chardan Capital Markets, LLC, and B. Riley FBR, Inc. n/k/a B. Riley Securities, Inc. (the “Underwriter Defendants,” and collectively, “Defendants”), by their respective counsel.4 This Notice is intended to inform you how this lawsuit and proposed Settlement may affect your rights and what steps you may take in relation to it. This Notice is NOT an expression of any opinion by the Court as to the merits of the claims or defenses asserted in the lawsuit or whether the Defendants engaged in any wrongdoing. WHAT IS THIS LAWSUIT ABOUT? I. THE ALLEGATIONS Alnylam is a pharmaceutical company that, at the time of the Offering, had multiple drugs in development but none that had been approved for sale. Of all the drugs in Alnylam’s developmental pipeline, the closest one to being commercialized was patisiran. Plaintiff claims that Defendants violated §§11, 12(a)(2) and 15 of the Securities Act of 1933 by reason of alleged material misstatements and omissions in the Registration Statement for the Offering. Specifically, Plaintiff alleges that the Registration Statement included untrue material statements about, and failed to disclose material information regarding, a study performed on the efficacy of patisiran. Defendants deny all of Plaintiff’s allegations and deny having engaged in any wrongdoing or violation of law of any kind whatsoever. Without limiting the generality of the foregoing in any way, Defendants have denied and continue to deny, among other things, that any misstatements or materially misleading omissions were made or that Plaintiff or the Settlement Class have suffered any damages. Defendants do not admit any liability or wrongdoing in connection with the allegations set forth in the Action, or any facts related thereto. Defendants have agreed to the Settlement solely to eliminate the burden and expense of continued litigation. Accordingly, the Settlement may not be construed as an admission of any wrongdoing by Defendants. THE COURT HAS NOT RULED AS TO WHETHER DEFENDANTS ARE LIABLE TO PLAINTIFF OR TO THE SETTLEMENT CLASS. THIS NOTICE IS NOT INTENDED TO BE AN EXPRESSION OF ANY OPINION BY THE COURT WITH RESPECT TO THE TRUTH OF THE ALLEGATIONS IN THIS ACTION OR THE MERITS OF THE CLAIMS OR DEFENSES ASSERTED. THIS NOTICE IS SOLELY TO ADVISE YOU OF THE PROPOSED SETTLEMENT OF THIS ACTION AND YOUR RIGHTS IN CONNECTION WITH THAT SETTLEMENT. II. PROCEDURAL HISTORY The initial complaint was filed in this Court by Plaintiff on September 12, 2019 (NYSCEF No. 1). On November 7, 2019, Plaintiff filed its Amended Complaint for Violations of the Federal Securities Laws (NYSCEF No. 11). On December 20, 2019, Defendants moved to dismiss the Action (NYSCEF No. 27). On February 3, 2020, Plaintiff filed its opposition (NYSCEF No. 39), and on March 4, 2020, Defendants filed their reply (NYSCEF No. 43). Following oral argument on June 3, 2020 (NYSCEF No. 50), on October 30, 2020, the Honorable O. Peter Sherwood denied Defendants’ motion to dismiss (NYSCEF No. 51). Defendants appealed Justice Sherwood’s denial of their motion to dismiss (NYSCEF No. 54). Following briefing by the Parties and oral argument, on April 29, 2021, the First Department issued its Order modifying in part,5 and otherwise affirming the denial of Defendants’ motion to dismiss (NYSCEF No. 106). Once the case entered discovery, among other things, the Parties: (i) served their document demands for production; and (ii) objected and responded to each other’s document demands. Additionally: (i) Defendants have produced hard-copy documents and centrally-stored files and have produced some electronically-stored documents; (ii) Plaintiff has substantially completed its document production to Defendants; and (iii) a representative of Plaintiff has been deposed. On February 22, 2021, Plaintiff filed its motion for class certification (NYSCEF No. 68). Defendants filed their opposition to Plaintiff’s motion on April 2, 2021 (NYSCEF No. 81), and Plaintiff filed its reply on April 16, 2021 (NYSCEF No. 105). During that time, Justice Sherwood retired and this Action was reassigned to Justice Reed. The motion for class certification is fully briefed but has not been argued. On June 1, 2021, Defendants filed a motion for reargument before the First Department, or, in the alternative, for leave to appeal to the Court of Appeals. On June 14, 2021, Biotechnology Innovation Organization (“BIO”), a trade association, filed an amicus brief in support of this motion. On August 30, 2021, Plaintiff filed its opposition to Defendants’ motion for reargument, which also responded to BIO’s amicus brief. In light of the Settlement, Defendants requested and received an extension of their deadline to file a reply in support of their reargument motion, which otherwise would have been due on September 10, 2021. Following the completion of class certification briefing and the First Department’s ruling, the Parties agreed to explore a resolution of the Action and engaged the services of Robert A. Meyer, Esq., of JAMS, a nationally recognized mediator experienced in complex shareholder litigation. In connection with the mediation, each side provided to Mr. Meyer and exchanged with each other submissions setting forth their respective positions on the issues of liability, causation, and damages. On August 9, 2021, the Parties attended an all-day remote mediation with Mr. Meyer. Although the result of the mediation was inconclusive, the Parties continued to work with Mr. Meyer following the mediation and on August 31, 2021, reached an agreement in principle to settle the Action on the terms set forth herein, subject to the negotiation of a Stipulation of Settlement and approval by the Court. HOW DO I KNOW IF I AM A SETTLEMENT CLASS MEMBER? If you purchased or acquired Alnylam common stock pursuant or traceable to the Registration Statement filed in connection with the Offering, you are a Settlement Class Member. For purposes of this Settlement only, you are a Settlement Class Member if you purchased or otherwise acquired Alnylam common stock between November 14, 2017 and September 12, 2019, inclusive. As set forth in the Stipulation, excluded from the Settlement Class are: Defendants and their immediate families; the officers, directors and affiliates of Defendants during the Settlement Class Period and members of their immediate families; the legal representatives, heirs, successors, or assigns of any of the foregoing; and any entity in which any Defendant has or had a controlling interest. For avoidance of doubt, Investment Vehicles are not excluded from the Settlement Class solely because they are, or are managed by, affiliates or subsidiaries of a Defendant. However, to the extent that any Defendant or any entity that might be deemed to be an affiliate or subsidiary thereof (i) managed or advised, and (ii) directly or indirectly held a beneficial interest in, said Investment Vehicle during the Settlement Class Period, that beneficial interest in the Investment Vehicle is excluded from the Settlement Class. Also excluded from the Settlement Class are those Persons who would otherwise be Settlement Class Members but who timely and validly exclude themselves therefrom. PLEASE NOTE: Receipt of this Notice does not mean that you are a Settlement Class Member or that you will be entitled to receive a payment from the Settlement. If you are a Settlement Class Member and you wish to be eligible to participate in the distribution of proceeds from the Settlement, you are required to submit the Proof of Claim that is being distributed with this Notice and the required supporting documentation as set forth therein postmarked or submitted online on or before March 17, 2022. WHAT IS THE MONETARY VALUE OF THE PROPOSED SETTLEMENT? The Settlement, if approved, will result in the creation of a cash settlement fund of $7,000,000 (the “Settlement Fund”). The Settlement Fund, plus accrued interest and minus the costs of this Notice and all costs associated with the administration of the Settlement Fund, as well as attorneys’ fees and expenses, and the payment to Plaintiff for representing the Settlement Class, as approved by the Court (the “Net Settlement Fund”), will be distributed to eligible Settlement Class Members pursuant to the Plan of Allocation that is described in the next section of this Notice. WHAT IS THE PROPOSED PLAN OF ALLOCATION? The objective of the Plan of Allocation is to equitably distribute the Net Settlement Fund among Settlement Class Members based on their respective alleged economic losses resulting from the securities law violations alleged in the Action. The Claims Administrator shall determine each Settlement Class Member’s share of the Net Settlement Fund based upon the recognized loss formula (the “Recognized Claim”) described below. A Recognized Claim will be calculated for each share of Alnylam common stock purchased or otherwise acquired pursuant or traceable to the Offering. The calculation of a Recognized Claim will depend on several factors, including when the shares were purchased or otherwise acquired and in what amounts, whether the shares were ever sold, and, if so, when they were sold and for what amounts. The Recognized Claim is not intended to estimate the amount a Settlement Class Member might have been able to recover after a trial, nor to estimate the amount that will be paid to Settlement Class Members pursuant to the Settlement. The Recognized Claim is the basis upon which the Net Settlement Fund will be proportionately allocated to Settlement Class Members. Your share of the Net Settlement Fund will depend on the number of valid Proofs of Claim that Settlement Class Members send in and how many shares of Alnylam common stock you purchased or otherwise acquired pursuant or traceable to the Offering, and whether you sold any of those shares and when you sold them. The calculation of claims below is not an estimate of the amount you will receive. It is a formula for allocating the Net Settlement Fund among all Authorized Claimants. Furthermore, if any of the formulas set forth below yield an amount less than $0.00, the claim per share is $0.00. PLAN OF ALLOCATION A. Calculation of Recognized Losses on Eligible Shares For each Eligible Share purchased or otherwise acquired in the Offering, the Recognized Loss for each such share shall be the inflation per share on the date of purchase minus the inflation per share on the date of sale as set forth in the following Table A below (unless a lower Recognized Loss amount would result by applying the loss limitation rules (caps) set forth in
