8-KLeadership ChangesMaterial Agreements

ALNYLAM PHARMACEUTICALS, INC. 8-K Report, Material Agreement (Oct 2, 2020)

Filed October 2, 2020For Securities:ALNY

Summary

Alnylam Pharmaceuticals, Inc. (ALNY) filed an 8-K on October 2, 2020, detailing a material definitive agreement regarding its office lease and an arrangement for a departing executive. The company has amended its lease for office space in Cambridge, Massachusetts, extending the term for key floors through June 30, 2026, with an option for a further extension. This lease amendment secures critical operational space for the company's continued growth and operations. Separately, the company formalized an agreement with Barry E. Greene, who resigned as President, to provide consulting services and extended his non-compete and non-solicitation obligations. This arrangement includes continued equity vesting and specific cash compensation for Mr. Greene over a two-year period, ensuring a smooth transition and continued access to his expertise on an as-needed basis.

Key Highlights

  • 1Alnylam Pharmaceuticals amended its real property lease for office space in Cambridge, MA, extending the term for the 12th and 13th floors by five years to June 30, 2026.
  • 2The lease amendment includes an option for the company to further extend the lease term by an additional five years.
  • 3The lease for the 16th floor will expire and terminate on June 30, 2021.
  • 4Beginning July 2021, the annual rent for the extended lease space will be $3.54 million, with subsequent annual increases of 2.0%.
  • 5Barry E. Greene resigned as President effective September 30, 2020, after 17 years of service.
  • 6Mr. Greene will provide consulting services to Alnylam for up to 10 hours per month for two years post-resignation.
  • 7The consulting agreement includes continued vesting of Mr. Greene's equity awards and specific cash compensation, along with extended non-compete and non-solicitation agreements.

Frequently Asked Questions

The lease amendment secures essential office space in Cambridge, MA, through June 30, 2026, with an option for further extension. This provides Alnylam with long-term operational certainty for key facilities, supporting its continued growth and research activities.

Starting July 2021, the annual rent for the extended lease space will be $3.54 million, with a 2.0% annual increase thereafter. This represents a commitment to significant ongoing facility costs.

Following his resignation, Mr. Greene will serve as a consultant for up to 10 hours per month for two years. The agreement also includes continued vesting of his equity awards, specific cash compensation, and extended non-compete and non-solicitation clauses to ensure a smooth transition and protect the company's interests.

Yes, the lease for the 16th floor of the office space located at 101 Main Street, Cambridge, MA, will expire and terminate on June 30, 2021. However, the lease for the 12th and 13th floors has been extended.