-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FF6jgWLh6lNujPUeazPhuMDDqsM6SqpNt2qLeiI7YtXnqZHh+IWkHaw2jHb+F5wS 1osJY3Jc1C7vd/U+nEusrw== 0000910627-10-000086.txt : 20100504 0000910627-10-000086.hdr.sgml : 20100504 20100504112520 ACCESSION NUMBER: 0000910627-10-000086 CONFORMED SUBMISSION TYPE: DEFC14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20100504 DATE AS OF CHANGE: 20100504 EFFECTIVENESS DATE: 20100504 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: GENZYME CORP CENTRAL INDEX KEY: 0000732485 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] IRS NUMBER: 061047163 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DEFC14A SEC ACT: 1934 Act SEC FILE NUMBER: 000-14680 FILM NUMBER: 10795624 BUSINESS ADDRESS: STREET 1: 500 KENDALL STREET CITY: CAMBRIDGE STATE: MA ZIP: 02142 BUSINESS PHONE: 6172527500 MAIL ADDRESS: STREET 1: 500 KENDALL STREET CITY: CAMBRIDGE STATE: MA ZIP: 02142 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: ICAHN CARL C CENTRAL INDEX KEY: 0000921669 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 000000000 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DEFC14A BUSINESS ADDRESS: STREET 1: C/O ICAHN ASSOCIATES CORP. STREET 2: 767 FIFTH AVE., SUITE 4700 CITY: NEW YORK STATE: NY ZIP: 10153 BUSINESS PHONE: 212-702-4300 MAIL ADDRESS: STREET 1: C/O ICAHN ASSOCIATES CORP. STREET 2: 767 FIFTH AVE., SUITE 4700 CITY: NEW YORK STATE: NY ZIP: 10153 FORMER COMPANY: FORMER CONFORMED NAME: ICAHN CARL C ET AL DATE OF NAME CHANGE: 19950612 DEFC14A 1 genzdefc14a042910.txt SCHEDULE 14A Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No.) Filed by the Registrant [ ] Filed by a Party other than the Registrant [X] Check the appropriate box: [ ] Preliminary Proxy Statement [ ] Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) [X] Definitive Proxy Statement [ ] Definitive Additional Materials [ ] Soliciting Material Pursuant to 240.14a-12 GENZYME CORPORATION (Name of Registrant as Specified In Its Charter) DR. STEPHEN BURAKOFF DR. ALEXANDER J. DENNER MR. CARL C. ICAHN DR. RICHARD MULLIGAN DR. ERIC ENDE HIGH RIVER LIMITED PARTNERSHIP HOPPER INVESTMENTS LLC BARBERRY CORP. ICAHN PARTNERS LP ICAHN PARTNERS MASTER FUND LP ICAHN PARTNERS MASTER FUND II LP ICAHN PARTNERS MASTER FUND III LP ICAHN ENTERPRISES G.P. INC. ICAHN ENTERPRISES HOLDINGS L.P. IPH GP LLC ICAHN CAPITAL L.P. ICAHN ONSHORE LP ICAHN OFFSHORE LP BECKTON CORP. (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (check the appropriate box): [X] No fee required. [ ] Fee computed on table below per Exchange Act Rule 14a-6(i)(4) and 0-11. 1) Title of each class of securities to which transaction applies: 2) Aggregate number of securities to which transaction applies: 3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): 4) Proposed maximum aggregate value of transaction: 5) Total fee paid: [ ] Fee paid previously with preliminary materials. [ ] Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. 1) Amount Previously Paid: 2) Form, Schedule or Registration Statement No.: 3) Filing Party: 4) Date Filed: 2010 ANNUAL MEETING OF SHAREHOLDERS OF GENZYME CORPORATION ___________________ PROXY STATEMENT OF DR. STEPHEN BURAKOFF DR. ALEXANDER J. DENNER MR. CARL C. ICAHN DR. RICHARD MULLIGAN DR. ERIC ENDE HIGH RIVER LIMITED PARTNERSHIP HOPPER INVESTMENTS LLC BARBERRY CORP. ICAHN PARTNERS LP ICAHN PARTNERS MASTER FUND LP ICAHN PARTNERS MASTER FUND II LP ICAHN PARTNERS MASTER FUND III LP ICAHN ENTERPRISES G.P. INC. ICAHN ENTERPRISES HOLDINGS L.P. IPH GP LLC ICAHN CAPITAL L.P. ICAHN ONSHORE LP ICAHN OFFSHORE LP BECKTON CORP. ___________________ To Our Fellow Genzyme Shareholders: This Proxy Statement and the accompanying GOLD proxy card are being furnished to shareholders ("Shareholders") of Genzyme Corporation, 500 Kendall Street, Cambridge, Massachusetts 02142 ("Genzyme," "Corporation" or "Company") in connection with the solicitation of proxies by Carl C. Icahn and the Participants (as hereinafter defined), to be used at the 2010 Annual Meeting (the "Annual Meeting") of Shareholders of Genzyme which is scheduled to be held at the American Academy of Arts and Sciences, 136 Irving Street, Cambridge, Massachusetts, on June 16, 2010, at 9 a.m. local time, and at any adjournments, postponements or continuations thereof. This Proxy Statement and the GOLD proxy card are first being furnished to Shareholders on or about May 5, 2010. At the Annual Meeting, the Participants will seek to elect to the Board of Directors ("Board") of Genzyme the following persons (each a "Nominee" and collectively, the "Nominees"): DR. STEPHEN BURAKOFF DR. ALEXANDER J. DENNER MR. CARL C. ICAHN DR. RICHARD MULLIGAN The Icahn Parties (as hereinafter defined) believe that Genzyme's inability to fully manufacture and supply certain of its products leads to the conclusion that the manufacturing system at Genzyme is "broken." This conclusion is further evidenced by Genzyme's subsequent announcement of the Food and Drug Administration's enforcement action. As Board members, the Nominees will work, subject to their fiduciary duties, to understand and then help Genzyme correct what they believe is "broken." The Icahn Parties believe that Nominees knowledge of science, medicine, finance and business will significantly improve the science and business expertise of the Board of Directors of Genzyme. The Icahn Parties also believe that each Nominee is a strong shareholder-oriented individual who will help represent the best interests of Genzyme's shareholders. Each of our Nominees has consented to being named in this Proxy Statement and, if elected, to serve as a director. Under the proxy rules we may only solicit proxies for our Nominees, which would result in limiting the ability of Shareholders that would like to vote for our Nominees to fully exercise their voting rights to vote for up to a full complement of ten directors. Alternatively, we may solicit proxies in support of our Nominees and also seek authority to vote for all of the Genzyme nominees other than those Genzyme nominees we specify. This would enable a Shareholder who desires to vote for up to a full complement of ten director nominees to use the GOLD proxy card to vote for our Nominees as well as the Genzyme nominees for whom we are seeking authority to vote other than those nominees as to which the Shareholder specifically withholds our authority to vote for. We have determined to nominate a slate of four Nominees, Mr. Icahn, Drs. Burakoff, Denner and Mulligan and are seeking authority to vote for up to all of the Genzyme nominees other than Charles L. Cooney, Senator Connie Mack III, Richard F. Syron and Henri A. Termeer. As a result, should a Shareholder so authorize us, on the GOLD proxy card, we would cast votes for our four Nominees and up to six Genzyme nominees. None of the Genzyme nominees for whom we seek authority to vote have agreed to serve with any of our Nominees, if elected. Additionally, if Genzyme does not nominate the respective individuals for which we seek authority to vote, our GOLD proxy card will not allow such Shareholder to utilize the GOLD proxy card to vote for such individual. THE PARTICIPANTS URGE YOU TO VOTE THE GOLD PROXY CARD FOR DR. STEPHEN BURAKOFF, DR. ALEXANDER J. DENNER, MR. CARL C. ICAHN AND DR. RICHARD MULLIGAN AS DIRECTORS. The Nominees and each of the other Participants have no interest in Genzyme other than through the beneficial ownership (if any) of shares of Common Stock, par value $.01 per share, of Genzyme (the "Common Stock") or other securities (if any) of Genzyme, except as disclosed herein, including the Annexes hereto, and in the case of Dr. Ende pursuant to his Consulting Agreement, as described herein, and in the case of Drs. Burakoff and Mulligan, pursuant to an agreement in which certain affiliates of Carl C. Icahn have agreed to pay each of Drs. Burakoff and Mulligan $25,000 and to indemnify each Nominee (other than Mr. Icahn) with respect to certain costs incurred by each such Nominee in connection with the proxy contest relating to the Annual Meeting (the "Nominee Agreement"). DR. STEPHEN BURAKOFF, DR. ALEXANDER J. DENNER, MR. CARL C. ICAHN AND DR. RICHARD MULLIGAN ARE COMMITTED TO ACTING IN THE BEST INTEREST OF ALL SHAREHOLDERS OF GENZYME. THE PARTICIPANTS URGE YOU TO VOTE YOUR GOLD PROXY CARD FOR DR. STEPHEN BURAKOFF, DR. ALEXANDER J. DENNER, MR. CARL C. ICAHN AND DR. RICHARD MULLIGAN. IMPORTANT According to Genzyme's Proxy Statement, the Bylaws and applicable law, the election of the Nominees requires the affirmative vote of a plurality of the votes cast by the holders of Genzyme's Common Stock at a meeting at which a quorum is present in person or represented by proxy. As a result, your vote is extremely important. We urge you to mark, sign, date, and return the enclosed GOLD proxy card to vote FOR the election of each Nominee. WE URGE YOU NOT TO SIGN ANY PROXY CARD SENT TO YOU BY GENZYME. IF YOU HAVE ALREADY DONE SO, YOU MAY REVOKE YOUR PROXY BY DELIVERING A LATER-DATED GOLD PROXY CARD IN THE ENCLOSED POSTAGE-PREPAID ENVELOPE, EXECUTING A VOTE VIA INTERNET OR TELEPHONE, OR BY VOTING IN PERSON AT THE ANNUAL MEETING. SEE "VOTING PROCEDURES" AND "PROXY PROCEDURES" BELOW. If you attend the Annual Meeting and you beneficially own shares of Common Stock but are not the record owner, your mere attendance at the Annual Meeting WILL NOT be sufficient to cancel your prior given proxy card. You must have written authority from the record owner to vote the shares of Common Stock in its name at the meeting. Contact D.F. King & Co., Inc. at the number shown in this Proxy Statement for assistance or if you have any questions. If you have any questions or require any assistance in executing your proxy, please call: D.F. KING & CO., INC. SHAREHOLDERS CALL TOLL-FREE: (800) 347-4750 BANKS AND BROKERS CALL COLLECT: (212) 269-5550 THE PROXY STATEMENT, AS WELL AS OTHER PROXY MATERIALS DISTRIBUTED BY THE PARTICIPANTS, ARE AVAILABLE FREE OF CHARGE ONLINE AT WWW.DFKING.COM/GENZYME. Only holders of record of Genzyme's Common Stock as of the close of business on April 9, 2010 (the "Record Date") are entitled to notice of, and to attend and to vote at, the Annual Meeting and any adjournments or postponements thereof. According to the definitive proxy statement of Genzyme filed with the Securities and Exchange Commission ("Genzyme's Proxy Statement"), as of the Record Date, there were outstanding 266,470,351 shares of Common Stock. Shareholders of record at the close of business on the Record Date will be entitled to one vote at the Annual Meeting for each share of Common Stock of Genzyme held on the Record Date. As of the Record Date, the Participants and their affiliates beneficially owned an aggregate of 13,100,000 shares of Common Stock, representing approximately 4.92% of the outstanding shares of Common Stock. The Participants and their affiliates intend to vote such shares of Common Stock FOR the election of the Nominees. VOTE FOR THE NOMINEES BY USING THE ENCLOSED GOLD PROXY TO VOTE TODAY - BY TELEPHONE, BY INTERNET, OR BY MARKING, SIGNING, DATING AND RETURNING THE GOLD PROXY CARD IN THE POSTAGE-PAID ENVELOPE PROVIDED TO YOU. PARTICIPANTS IN SOLICITATION OF PROXIES In addition to the Nominees (who are Dr. Stephen Burakoff, Dr. Alexander J. Denner, Mr. Carl C. Icahn and Dr. Richard Mulligan), the participants in the solicitation of proxies (the "Participants") from Shareholders of Genzyme include the following: High River Limited Partnership, a Delaware limited partnership ("High River"), Hopper Investments LLC, a Delaware limited liability company ("Hopper"), Barberry Corp., a Delaware corporation ("Barberry"), Icahn Partners LP, a Delaware limited partnership ("Icahn Partners"), Icahn Partners Master Fund LP, a Cayman Islands limited partnership ("Icahn Master"), Icahn Partners Master Fund II LP, a Cayman Islands limited partnership ("Icahn Master II"), Icahn Partners Master Fund III LP, a Cayman Islands limited partnership ("Icahn Master III"), Beckton Corp., a Delaware corporation ("Beckton"), Icahn Enterprises G.P. Inc., a Delaware corporation ("Icahn Enterprises GP"), Icahn Enterprises Holdings L.P., a Delaware limited partnership ("Icahn Enterprises Holdings"), IPH GP LLC, a Delaware limited liability company ("IPH"), Icahn Capital LP, a Delaware limited partnership ("IcahnCapital"), Icahn Onshore LP, a Delaware limited partnership ("Icahn Onshore"), Icahn Offshore LP, a Delaware limited partnership ("Icahn Offshore") and Dr. Eric Ende. Icahn Partners, Icahn Master, Icahn Master II and Icahn Master III (collectively, the "Funds") and High River (together with the Funds, the "Icahn Parties"), are entities controlled by Mr. Icahn. Dr. Denner is an employee and/or officer and/or director of the Icahn Parties and various other entities controlled by Mr. Icahn, and who will participate in soliciting proxies from Genzyme Shareholders. Dr. Denner does not own beneficially any interest in securities of Genzyme. Dr. Denner will not receive any special compensation in connection with this solicitation. In connection with their employment by Mr. Icahn and his affiliated companies, Dr. Denner, among other employees, has a participatory interest in the profits and fees derived by Mr. Icahn and/or his affiliated entities in the Funds. Because only a portion of such profit interests are distributed and because of Dr. Denner's other investments in the Funds, Dr. Denner also has capital accounts in the Funds. Generally, in the aggregate, Dr. Denner's profit interests and capital accounts in the Funds entitle him to less than 2% of the profits generated by the Funds. Dr. Ende is an independent consultant retained by Icahn Capital to solicit proxies and provide consulting services relating to this solicitation and general consulting services relating to other investments by the Icahn Parties. Dr. Ende does not own beneficially any interest in securities of Genzyme. Assuming the Annual Meeting of Genzyme is held in June and further assuming the contest is successful the agreement referred to herein may provide for payments of up to approximately $200,000.00. The business address of Dr. Ende is c/o Icahn Capital LP, 767 Fifth Avenue, Suite 4700, New York, New York 10153. In consideration of providing certain investment advisory, administrative and back office services to the Funds, Icahn Onshore, the general partner of Icahn Partners and Icahn Offshore, the general partner of Icahn Master, Icahn Master II and Icahn Master III, (together, the "General Partners"), are allocated from the Funds on an annual basis (i) special profits interest allocations ranging from 1.5% to 2.5% of the balance in each of the Funds' capital accounts attributable to fee-paying investors but such allocations are made only to the extent that there is sufficient profits to cover such amounts and (ii) incentive allocations, subject to a "Highwater Mark" (whereby the General Partners do not earn incentive allocations during a particular year even though the fund had a positive return in such year until losses in prior periods are recovered), ranging from 15% to 25% of the net profits generated by fee-paying investors of the Funds. Therefore, the amounts received by the General Partners will be affected by the combination of fee-paying assets under management and the investment performance of the Funds (including any increase or decrease in the value of shares of the Corporation). The General Partners are owned by Icahn Capital, which is a subsidiary of Icahn Enterprises L.P., a New York Stock Exchange listed master limited partnership ("Icahn Enterprises"). Carl C. Icahn is the indirect owner of the general partner of Icahn Enterprises and the indirect holder of approximately 92.34% of the outstanding depositary units representing limited partnership interests in Icahn Enterprises. Annex A attached hereto sets forth, as to the Nominees and the other Participants, all transactions in securities of Genzyme effected during the past two years and their beneficial ownership of securities of Genzyme. With respect to each Participant (including the Nominees), except as set forth herein or in any of the Annexes attached hereto, (i) such Participant is not, nor was within the past year, a party to any contract, arrangement or understanding with any person with respect to any securities of Genzyme, including, but not limited to, joint ventures, loan or option arrangements, puts or calls, guarantees against loss or guarantees of profit, division of losses or profits, or the giving or withholding of proxies; and (ii) neither such Participant nor any of such Participant's associates have any arrangement or understanding with any person with respect to (A) any future employment by Genzyme or its affiliates or (B) any future transactions to which Genzyme or any of its affiliates will or may be a party. PROPOSAL 1 -- ELECTION OF DIRECTORS Given that the Icahn Parties believe that the Company has not yet been able to cure, among other things, its severe manufacturing and supply problems, the Icahn Parties believe that a change in Board composition at Genzyme is necessary to bring new ideas and ways of looking at problems to the existing Board. The Nominees are committed to the best interests of all Genzyme Shareholders and intend to work to correct the problems associated with manufacturing and to improving shareholder value. The Nominees are unable to fully formulate specific plans with respect to the Company as they are not privy to non-public information regarding Genzyme's manufacturing problems. The Icahn Parties believe that the Nominees, based upon their vast experiences as disclosed herein, can help to effect positive change at the Company by working with the other Board members and management in correcting these problems and improving shareholder value. Article I, Section 5, of Genzyme's Amended and Restated Bylaws, effective May 24, 2007, provide that Shareholder nominations of directors may be made by " any shareholder entitled to vote for the election of directors at the meeting who complies with the notice procedures set forth in this section." On February 19, 2010 the Icahn Parties, record holders of Common Stock, delivered timely notice in accordance with the foregoing, notifying Genzyme that the Icahn Parties intend to nominate and will seek to elect at the Annual Meeting - Dr. Stephen Burakoff, Dr. Alexander J. Denner, Mr. Carl C. Icahn and Dr. Richard Mulligan as members of the board of directors of Genzyme. Each Nominee, if elected, would serve a one-year term and hold office until the 2011 annual meeting of Shareholders and until a successor has been duly elected and qualified. Background information about each of the Nominees is set forth below and the Annexes attached hereto. According to Genzyme's Proxy Statement, the Board of Genzyme intends to nominate ten candidates for election as directors at the Annual Meeting. This Proxy Statement is soliciting proxies to elect Dr. Stephen Burakoff, Dr. Alexander J. Denner, Mr. Carl C. Icahn and Dr. Richard Mulligan, and to enable Shareholders to vote for the Genzyme nominees other than Charles L. Cooney, Senator Connie Mack III, Richard F. Syron and Henri A. Termeer. Therefore, should a Shareholder so authorize us, we will cast votes for our four Nominees and up to six Genzyme nominees. None of such Genzyme nominees for whom we seek authority to vote have agreed to serve with any of our Nominees, if elected. If elected, the Nominees will be a minority of the directors and will not alone be able to adopt resolutions. However, the Nominees expect to be able to actively engage other Board members in full discussion of the issues facing the Company and resolve them together. By utilizing their respective experiences and working constructively with Board members, the Nominees believe they can effect positive change at the Company. Mr. Icahn has an interest in the election of directors at the Annual Meeting indirectly through the beneficial ownership of securities, as further described in Annex A. Dr. Stephen Burakoff, Dr. Alexander J. Denner and Dr. Richard Mulligan are each party to a Nominee Agreement, substantially in the form attached hereto as Annex B, pursuant to which the Icahn Parties have agreed to pay certain fees to each such Nominee (other than Dr. Denner) and to indemnify each such Nominee with respect to certain costs incurred by each such Nominee in connection with the proxy contest relating to the Annual Meeting. Except as disclosed in this Proxy Statement, including the Annexes attached hereto and as provided in the Nominee Agreement (which, among other things, provides for a payment to Dr. Stephen Burakoff and Dr. Richard Mulligan of $25,000), none of the Nominees will receive any compensation from any of the Participants or any of their affiliates in connection with this proxy solicitation. Dr. Stephen Burakoff and Dr. Richard Mulligan have an interest in the election of directors at the Annual Meeting pursuant to the Nominee Agreement. Dr. Denner has an interest in the election of directors at the Annual Meeting indirectly through his capital accounts and other investments in the Funds. The Nominees would not be barred from being considered independent under the independence requirements of The NASDAQ Stock Market, Inc. and the independence standards applicable to Genzyme under paragraph (a)(1) of Item 407 of Regulation S-K under the Securities Exchange Act of 1934, as amended. DR. STEPHEN BURAKOFF, age 67 Dr. Steven Burakoff's principal occupation is serving as Professor of Medicine, Hematology and Medical Oncology at the Mount Sinai School of Medicine and director of the Tisch Cancer Institute at the Mount Sinai Medical Center, since 2007. Prior to his appointment at Mount Sinai, Dr. Burakoff was the Laura and Isaac Perlmutter Professor, New York University School of Medicine; Director, New York University Cancer Institute; and Director, Skirball Institute of Biomolecular Medicine, New York University School of Medicine, from 2000 to 2007. Previously, Dr. Burakoff was Chair of Pediatric Oncology at the Dana-Farber Cancer Institute; the Margaret M. Dyson Professor of Pediatrics at the Harvard Medical School, and also received an Honorary Master's of Science Degree from Harvard University. He was the recipient of the first Harvard Medical School Excellence in Mentoring Award. He was also the Ted Williams Senior Investigator at the Dana-Farber Cancer Institute, and he also served as a member of the Board of Trustees of the Dana-Farber Cancer Institute. Dr. Burakoff serves as a member of the External Advisory Committee at: the Cold Spring Harbor Laboratory Cancer Center, the Baylor Medical School Cancer Center, and the Cancer Center of the University of Massachusetts Medical School, the Albert Einstein College of Medicine Cancer Center and the St. Jude's Cancer Center. Dr. Burakoff holds memberships in many professional societies and organizations, including: Alpha Omega Alpha, the American Society of Clinical Investigation, and the Association of American Physicians, and the American Association of Immunologist where he serves as Secretary-Treasurer. He has been an Editor and Associate Editor for numerous journals and author of more than 300 publications in peer-reviewed journals. On May 11, 2009, Dr. Burakoff received the American Association of Immunologists Lifetime Achievement Award. On September 22, 2009, Dr. Burakoff received the Lillian and Henry M. Stratton Professor of Cancer Medicine endowed professorship from the Mount Sinai School of Medicine. Since 2009, Dr. Burakoff has served as a director of Ligand Pharmaceuticals Incorporated, a publicly traded royalty-driven biotechnology company and from 2005 through 2008 served as a director of Pharmacopeia, a publicly traded biopharmaceutical company which was then acquired by Ligand. Dr. Burakoff graduated from Lehigh University with a Bachelor of Science degree, received his Master's degree from Queens College, and his M.D. from Albany Medical College. Dr. Burakoff's business address is Tisch Cancer Institute, Mount Sinai School of Medicine, One Gustave L. Levy Place, New York, New York 10029. Dr. Burakoff is a highly accomplished research oncologist. Based upon Dr. Burakoff's medical background and education, the Icahn Parties believe that Dr. Burakoff has the requisite set of skills to serve as a Board member of Genzyme. DR. ALEXANDER J. DENNER, age 40 Dr. Denner's principal occupation is serving as Managing Director of entities affiliated with Carl C. Icahn, including Icahn Partners, Icahn Master, Icahn Master II and Icahn Master III. Icahn Partners, Icahn Master, Icahn Master II and Icahn Master III are private investment funds. Dr. Denner has served in this position since August 2006. Dr. Denner's previous employment was serving as a portfolio manager specializing in healthcare investments for Viking Global Investors from April 2005 to May 2006. Previously, he served in a variety of roles at Morgan Stanley, beginning in 1996, including as portfolio manager of healthcare and biotechnology mutual funds. Dr. Denner was the chairman of the Executive Committee of the Board of Directors of ImClone Systems Incorporated, a publicly traded biopharmaceutical company, and a director of ImClone Systems Incorporated from April 2006 until the company was purchased in December 2008. He served on the Board of Adventrx Pharmaceuticals Inc., a publicly traded biopharmaceutical company from October 2006 to October 2009. In addition, Dr. Denner has served as a director of Biogen Idec Pharmaceuticals, a publicly traded biopharmaceutical company from June, 2009 until the present, as a director of Amylin Pharmaceuticals, Inc., a publicly traded biopharmaceutical company since June 2009, as a director of Enzon Pharmaceuticals, a publicly traded biopharmaceutical company from May 2009 until the present, and as Chairman of the Board of Directors of Enzon Pharmaceuticals from July, 2009 until the present. Dr. Denner received his S.B. degree from the Massachusetts Institute of Technology and his M.S., M.Phil., and Ph.D. degrees from Yale University. The business address of Dr. Denner is c/o Icahn Associates Corp, 767 Fifth Avenue, Suite 4700, New York, NY 10153. Based upon Dr. Denner's experience of overseeing the operations, research and development of biopharmaceutical companies; service on boards of biopharmaceutical companies; financial background, including with respect to biotechnology companies; and education, the Icahn Parties believe that Dr. Denner has the requisite set of skills to serve as a Board member of Genzyme. MR. CARL C. ICAHN, age 74 Carl C. Icahn has served as chairman of the board and a director of Starfire Holding Corporation ("Starfire"), a privately-held holding company, and chairman of the board and a director of various subsidiaries of Starfire, since 1984. Since August 2007, through his position as Chief Executive Officer of Icahn Capital LP, a wholly-owned subsidiary of Icahn Enterprises L.P. ("Icahn Enterprises"), and certain related entities, Mr. Icahn's principal occupation is managing private investment funds, including Icahn Partners LP, Icahn Partners Master Fund LP, Icahn Partners Master Fund II LP, and Icahn Partners Master Fund III LP. From November 2004 to August 2007, Mr. Icahn conducted this occupation through his entities CCI Onshore Corp. and CCI Offshore Corp. Since November 1990, Mr. Icahn has been chairman of the board of Icahn Enterprises G.P. Inc., the general partner of Icahn Enterprises. Icahn Enterprises is a diversified holding company engaged in a variety of businesses, including investment management, metals, automotive, real estate, railcar, food/packaging, casino gaming and home fashion. In March 2010, Mr. Icahn was appointed Chairman of the Board of Tropicana Entertainment Inc., which owns and operates a diversified, multi-jurisdictional collection of casino gaming properties. Mr. Icahn was chairman of the board and president of Icahn & Co., Inc., a registered broker-dealer and a member of the National Association of Securities Dealers, from 1968 to 2005. Mr. Icahn has served as chairman of the board and as a director of American Railcar Industries, Inc., a company that is primarily engaged in the business of manufacturing covered hopper and tank railcars, since 1994. From October 1998 through May 2004, Mr. Icahn was the president and a director of Stratosphere Corporation, the owner and operator of the Stratosphere Hotel and Casino in Las Vegas, which, until February 2008, was a subsidiary of Icahn Enterprises. From September 2000 to February 2007, Mr. Icahn served as the chairman of the board of GB Holdings, Inc., which owned an interest in Atlantic Coast Holdings, Inc., the owner and operator of The Sands casino in Atlantic City until November 2006. From September 2006 to November 2008, Mr. Icahn was a director of ImClone Systems Incorporated ("ImClone"), a biopharmaceutical company, and from October 2006 to November 2008, he was the chairman of the board of ImClone. Mr. Icahn has been chairman of the board and a director of XO Holdings, Inc., a telecommunications services provider, since February 2006, and of its predecessor from January 2003 to February 2006. Mr. Icahn has served as a director of Cadus Corporation, a company engaged in the ownership and licensing of yeast-based drug discovery technologies since July 1993. From May 2005 to January 2010, Mr. Icahn served as a director of Blockbuster Inc., a provider of in-home movie rental and game entertainment. In October 2005, Mr. Icahn became a director of WestPoint International, Inc., a manufacturer of bed and bath home fashion products. From August 2007 to September 2009, Mr. Icahn was a director of WCI Communities, Inc., a homebuilding company. In December 2007, Mr. Icahn became a director of Federal-Mogul Corporation ("Federal-Mogul"), a supplier of automotive products, and since January 2008, has been the chairman of the board of Federal-Mogul. From August 2008 to October 2009, Mr. Icahn was a director of Yahoo! Inc., a company that provides Internet services to users, advertisers, publishers and developers worldwide. Mr. Icahn received his B.A. from Princeton University. The business address of Mr. Icahn is c/o Icahn Capital LP, 767 Fifth Avenue, Suite 4700, New York, NY 10153. Mr. Icahn is internationally recognized as a leading financier and is generally known for his financial acumen. Mr. Icahn has had a long career of serving on boards of many companies and his focus on various means of enhancing shareholder value for those companies. Based upon Mr. Icahn's financial experience and expertise, the Icahn Parties believe that Mr. Icahn has the requisite set of skills to serve as a Board member of Genzyme. DR. RICHARD MULLIGAN, age 55 Dr. Mulligan's principal occupation is serving as the Mallinckrodt Professor of Genetics at Harvard Medical School, and Director of the Harvard Gene Therapy Initiative. Professor Mulligan received his B.S. degree from the Massachusetts Institute of Technology, and his Ph.D. from the Department of Biochemistry at Stanford University School of Medicine. After receiving postdoctoral training at the Center for Cancer Research at MIT, Professor Mulligan joined the MIT faculty and subsequently was appointed Professor of Molecular Biology and Member of the Whitehead Institute for Biomedical Research before moving to Children's Hospital and Harvard in 1996. His honors include the MacArthur Foundation Prize, the Rhodes Memorial Award of the American Association for Cancer Research, the ASMB-Amgen Award, and the Nagai Foundation International Prize. Dr. Mulligan served as a director of ImClone System Incorporated, a publicly traded biopharmaceutical company, from September 2006 until November 2008, and as a member of Scientific Advisory Board and Executive Committee. In addition, Dr. Mulligan has served as a director of Biogen Idec Pharmaceuticals, a publicly traded biopharmaceutical company from June 2009 until the present, as a director of Enzon Pharmaceuticals, a publicly traded biopharmaceutical company from May 2009 until the present, and as a director of Cellectis SA, a biotechnology company which specializes in genome engineering, since 2007. He has also served on the National Institutes of Health's Recombinant DNA Advisory Committee and on the U.S. Food and Drug Administration Biological Response Modifiers Advisory Committee. Dr. Mulligan's business address is Harvard Institutes of Medicine Rm 407, 4 Blackfan Circle, Boston, Massachusetts 02115. Based upon Dr. Mulligan's expertise in genetics and gene therapy; experience in overseeing the operations, research and development of biopharmaceutical companies; service on boards of biotechnology and/or biopharmaceutical companies; and his education, the Icahn Parties believe that Dr. Mulligan has the requisite set of skills to serve as a Board member of Genzyme. Dr. Denner and Mr. Icahn have no prior relationships with Dr. Burakoff. Dr. Burakoff was a professor at Harvard Medical School during Dr. Mulligan's tenure at Harvard Medical School. Drs. Denner and Mulligan currently serve on the Board of Directors of Biogen Idec Inc. ("Biogen") and Enzon Pharmaceuticals, Inc. ("Enzon"). Drs. Denner and Mulligan were elected to the Board of Directors of Biogen Idec Inc. at the 2009 Annual Meeting of Stockholders following their nomination by entities affiliated with Mr. Icahn. In January 2009, representatives of Mr. Icahn and his affiliated entities suggested Drs. Denner and Mulligan as potential directors to the Board of Directors of Enzon. Drs. Denner and Mulligan were subsequently nominated on Enzon's board slate of directors and elected at the 2009 Annual Meeting of Stockholders. Drs. Denner, Mulligan and Mr. Icahn served together on the Board of Directors of ImClone Systems Incorporated ("ImClone"). Following discussions in April 2006 between ImClone and Mr. Icahn, a then stockholder of ImClone, Dr. Denner, who was not then employed by affiliated entities of Mr. Icahn, was appointed to the Board of ImClone. In August 2006, representatives of ImClone offered to nominate on management's slate of directors, Mr. Icahn, Dr. Denner, then an employee of entities affiliated with Mr. Icahn, and two persons recommended to ImClone by Mr. Icahn, including Dr. Richard Mulligan, and all of such nominees were subsequently elected at the 2006 Annual Meeting of Stockholders. As disclosed in this Proxy Statement, Drs. Denner and Mulligan currently serve on the Board of Directors of Biogen. The Icahn Parties have considered the applicability of Section 8 of the Clayton Act, which includes a statutory prohibition on interlocking directorates between competing corporations, and although there can be no assurances, the Icahn Parties believe that the prohibitions thereunder are not applicable because Biogen and the Company would not now be deemed competitors within the meaning of Section 8 of the Clayton Act based upon the assumption made by the Icahn Parties, which they believe to be reasonable, that sales of drugs by Genzyme and Biogen which might be considered as competing were de minimus, as defined with respect Section 8 of the Clayton Act, during 2009. The Icahn Parties do not believe a conflict of interest arises from having membership on the Board of Directors of Biogen and Genzyme. The Nominees are aware that if elected they will have fiduciary obligations to Genzyme regardless of any other affiliations. The Nominees intend to fulfill their distinct fiduciary obligations to each entity on whose board they serve. Additionally, to the extent there are conflicts, the Nominees intend to take measures to otherwise alleviate the conflict including, if necessary, recusal with respect to the specific conflict. WE STRONGLY URGE YOU TO VOTE FOR THE ELECTION OF DR. STEPHEN BURAKOFF, DR. ALEXANDER J. DENNER, MR. CARL C. ICAHN AND DR. RICHARD MULLIGAN BY MARKING, SIGNING, DATING AND RETURNING THE ENCLOSED GOLD PROXY CARD IN THE POSTAGE PAID ENVELOPE PROVIDED TO YOU WITH THIS PROXY STATEMENT OR BY USING THE GOLD PROXY CARD TO VOTE BY TELEPHONE OR INTERNET. IF YOU HAVE SIGNED THE GOLD PROXY CARD AND NO MARKING IS MADE, YOU WILL BE DEEMED TO HAVE GIVEN A DIRECTION TO VOTE ALL THE SHARES OF COMMON STOCK REPRESENTED BY THE GOLD PROXY CARD FOR THE ELECTION DR. STEPHEN BURAKOFF, DR. ALEXANDER J. DENNER, MR. CARL C. ICAHN AND DR. RICHARD MULLIGAN AND THE GENZYME NOMINEES OTHER THAN CHARLES L. COONEY, SENATOR CONNIE MACK III, RICHARD F. SYRON AND HENRI A. TERMEER. OTHER MATTERS TO BE CONSIDERED AT THE ANNUAL MEETING According to Genzyme's Proxy Statement, Genzyme is soliciting proxies with respect to five other proposals. Please refer to Genzyme's Proxy Statement for a detailed discussion of these proposals, including various arguments in favor of and against such proposals. These proposals are outlined below. IF YOU HAVE SIGNED THE GOLD PROXY CARD AND NO MARKING IS MADE, YOU WILL BE DEEMED TO HAVE GIVEN A DIRECTION TO VOTE ALL OF THE SHARES OF COMMON STOCK REPRESENTED BY YOUR GOLD PROXY CARD FOR PROPOSALS 2, 3, 5 AND 6 LISTED BELOW AND AGAINST PROPOSAL 4 LISTED BELOW. PROPOSAL 2 -- PROPOSAL TO AMEND 2004 EQUITY INCENTIVE PLAN According to the Company's 2010 Definitive Proxy Statement, the Company will also solicit proxies with respect to a proposal for Shareholders to approve an increase of 2,750,000 shares available for issuance under the 2004 Equity Incentive Plan. Please refer to the Company's 2010 Definitive Proxy Statement for a discussion of such proposal. The Participants intend to vote, and recommend that you vote, FOR this proposal. PROPOSAL 3 -- PROPOSAL TO AMEND 2009 EMPLOYEE STOCK PURCHASE PLAN According to the Company's 2010 Definitive Proxy Statement, the Company will also solicit proxies with respect to a proposal for Shareholders to approve an increase of 1,500,000 shares under the 2009 Employee Stock Purchase Plan. Please refer to the Company's 2010 Definitive Proxy Statement for a discussion of such proposal. The Participants intend to vote, and recommend that you vote, FOR this proposal. PROPOSAL 4 -- PROPOSAL TO AMEND 2007 DIRECTOR EQUITY PLAN According to the Company's 2010 Definitive Proxy Statement, the Company will also solicit proxies with respect to a proposal for Shareholders to approve the increase of 250,000 shares available for issuance under the 2007 Director Equity Plan. Please refer to the Company's 2010 Definitive Proxy Statement for a discussion of such proposal. The Participants intend to vote, and recommend that you vote, AGAINST this proposal. PROPOSAL 5 -- PROPOSAL TO AMEND AND RESTATE OUR CHARTER According to the Company's 2010 Definitive Proxy Statement, the Company will also solicit proxies with respect to a proposal for Shareholders to approve an amendment to the Company's Restated Articles of Organization to reduce to 40% the percentage of shares required for Shareholders to call a special meeting of Shareholders. Please refer to the Company's 2010 Definitive Proxy Statement for a discussion of such proposal. The Participants intend to vote, and recommend that you vote, FOR this proposal. PROPOSAL 6 -- PROPOSAL TO RATIFY SELECTION OF AUDITORS According to the Company's 2010 Definitive Proxy Statement, the Company will also solicit proxies to ratify the selection of PricewaterhouseCoopers LLP to serve as the auditors for the fiscal year ending December 31, 2010. Please refer to the Company's 2010 Definitive Proxy Statement for a discussion of such proposal. The Participants intend to vote, and recommend that you vote, FOR this proposal. OTHER PROPOSALS The Participants and their affiliates know of no other business to be presented at the Annual Meeting. If any other matters should properly come before the Annual Meeting, it is intended that the persons named on the enclosed GOLD proxy card will vote that proxy on such other matters in accordance with their judgment. VOTING PROCEDURES According to Genzyme's Proxy Statement, the Bylaws and applicable law, holders of shares of Genzyme's Common Stock, at the close of business on the Record Date are entitled to notice of, and to vote at, the Annual Meeting. Each share of Common Stock outstanding on the Record Date is entitled to one vote on each matter presented at the Annual Meeting. According to Genzyme's Proxy Statement, the Bylaws and applicable law, when the number of nominees timely nominated for election at an annual meeting exceeds the number of directors to be elected at the meeting, the election of directors at such annual meeting is a contested election. In a contested election directors are elected by a plurality of the votes cast by the holders of Genzyme's Common Stock at a meeting at which a quorum is present. Plurality means that the individuals who receive the largest number of votes cast are elected as directors, up to the maximum number of directors to be chosen at the meeting. Consequently, any shares of Common Stock not voted (whether by abstention, broker nonvote or otherwise) have no impact in the election of directors. A quorum is the presence by person or by proxy of a majority of the shares of Common Stock issued and outstanding and entitled to vote at the Annual Meeting. The shares of Common Stock represented by a proxy marked "withhold" or "abstain" will be considered present at the Annual Meeting for purposes of determining a quorum. BROKER NON-VOTES If you hold your shares of Common Stock through a bank, broker or other nominee and do not provide voting instructions to the record holder of the shares of Common Stock, your shares of Common Stock will not be voted on any proposal on which your broker or nominee does not have discretionary authority to vote. In this case, a "broker non-vote" occurs. Shares of Common Stock constituting broker non-votes are not counted or deemed to be present or represented for the purpose of determining whether shareholders have approved a matter, but they are counted as present for the purpose of determining a quorum at the Annual Meeting. The election of directors at the Annual Meeting is a "non-routine matter" and brokers do not have discretionary authority to vote your shares of Common Stock on "non-routine matters." Therefore, unless you provide specific voting instructions to your broker, your broker will not have discretionary authority to vote your shares of Common Stock for the election of directors at the Annual Meeting and your shares of Common Stock will not be voted for the election of directors. If your shares of Common Stock are held in street name, your broker or nominee has enclosed a voting instruction card with this Proxy Statement. We strongly encourage you to vote your shares of Common Stock by following the instructions provided on the voting instruction card. According to Genzyme's Proxy Statement, the Bylaws and applicable law, the affirmative vote of a majority of shares of Common Stock present in person or represented by proxy at the Annual Meeting and entitled to vote thereon is required to approve the Amendment to the Restated Articles of Organization. According to Genzyme's Proxy Statement, the Bylaws and applicable law, the approval of each of (i) the amendment to the 2004 Equity Incentive Plan; (ii) the amendment to the 2009 Employee Stock Purchase Plan; (iii) the Amendment to the 2007 Director Equity Plan; and (iv) the ratification of the selection of the Independent Registered Accounting Firm require that the number of votes cast in favor of the proposal exceed the number of votes cast against the proposal. As explained in the detailed instructions on your GOLD proxy card, there are four ways you may vote. You may: 1. Sign, date and return the enclosed GOLD proxy card in the enclosed postage-paid envelope. We recommend that you vote on the GOLD proxy card even if you plan to attend the Annual Meeting; 2. Vote via the Internet by following the voting instructions on the GOLD proxy card or the voting instructions provided by your broker, bank or other holder of record. 3. Vote by telephone by following the voting instructions on the GOLD proxy card or the instructions provided by your broker, bank or other holder of record; or 4. Vote in person by attending the Annual Meeting. Written ballots will be distributed to Shareholders who wish to vote in person at the Annual Meeting. If you hold your shares of Common Stock through a bank, broker or other custodian, you must obtain a legal proxy from such custodian in order to vote in person at the meeting. To submit a proxy with voting instructions by telephone please call the telephone number listed on the GOLD proxy card. Proxies may also be submitted over the Internet. Please refer to the GOLD proxy card for the website information. In each case Shareholders will be required to provide the unique control number which has been printed on each Shareholder's GOLD proxy card. In addition to the instructions that appear on the GOLD proxy card, step-by-step instructions will be provided by a recorded telephone message for those Shareholders submitting proxies by telephone, or at the designated website for those Shareholders submitting proxies over the Internet. Shareholders submitting their proxies with voting instructions by telephone or over the Internet will receive confirmation on the telephone that their vote by telephone was successfully submitted, and may provide an email address for confirmation that their vote by Internet was successfully submitted. Whether or not you are able to attend the Annual Meeting, you are urged to complete the enclosed GOLD proxy and return it in the enclosed self-addressed, prepaid envelope. All valid proxies received prior to the meeting will be voted. If you specify a choice with respect to any item by marking the appropriate box on the proxy, the shares of Common Stock will be voted in accordance with that specification. IF NO SPECIFICATION IS MADE, THE SHARES OF COMMON STOCK WILL BE VOTED (I) FOR DR. STEPHEN BURAKOFF FOR DIRECTOR; (II) FOR DR. ALEXANDER J. DENNER FOR DIRECTOR; (III) FOR MR. CARL C. ICAHN FOR DIRECTOR (IV) FOR DR. RICHARD MULLIGAN FOR DIRECTOR (V) FOR THE PERSONS WHO HAVE BEEN NOMINATED BY GENZYME TO SERVE AS DIRECTORS, OTHER THAN CHARLES L. COONEY, SENATOR CONNIE MCAK III, RICHARD F. SYRON AND HENRI A. TERMEER; (VI) FOR THE AMENDMENT TO THE 2004 EQUITY INCENTIVE PLAN; (VII) FOR THE AMENDMENT TO THE 2009 EMPLOYEE STOCK PURCHASE PLAN; (VIII) AGAINST THE AMENDMENT TO THE 2007 DIRECTOR EQUITY PLAN; (IX) FOR THE AMENDMENT TO THE RESTATED ARTICLES OF ORGANIZATION; (X) FOR THE RATIFICATION OF THE SELECTION OF THE INDEPENDENT REGISTERED ACCOUNTING FIRM; AND (XI) IN THE PROXY HOLDERS' DISCRETION AS TO OTHER MATTERS THAT MAY PROPERLY COME BEFORE THE ANNUAL MEETING. If you have any questions or require any assistance in executing your proxy, please call: D.F. KING & CO., INC. SHAREHOLDERS CALL TOLL-FREE: (800) 347-4750 BANKS AND BROKERAGE FIRMS CALL: (212) 269-5550 PROXY PROCEDURES IN ORDER FOR YOUR VIEWS TO BE REPRESENTED AT THE ANNUAL MEETING, PLEASE MARK, SIGN, DATE AND RETURN THE ENCLOSED GOLD PROXY CARD IN THE ENCLOSED POSTAGE-PREPAID ENVELOPE OR USE THE GOLD PROXY CARD TO VOTE BY TELEPHONE OR INTERNET. The accompanying GOLD proxy card will be voted at the Annual Meeting in accordance with your instructions on such card. Only holders of record as of the close of business on the Record Date will be entitled to vote. If you were a Shareholder of record on the Record Date, you will retain your voting rights at the Annual Meeting even if you sell such shares of Common Stock after the Record Date. Accordingly, it is important that you vote the shares of Common Stock held by you on the Record Date, or grant a proxy to vote such shares of Common Stock on the GOLD proxy card, even if you sell such shares of Common Stock after the Record Date. IF YOUR SHARES OF COMMON STOCK ARE HELD IN THE NAME OF A BROKERAGE FIRM, BANK, BANK NOMINEE OR OTHER INSTITUTION ON THE RECORD DATE, ONLY IT CAN VOTE SUCH SHARES OF COMMON STOCK AND ONLY UPON RECEIPT OF YOUR SPECIFIC INSTRUCTIONS. ACCORDINGLY, PLEASE CONTACT THE PERSON RESPONSIBLE FOR YOUR ACCOUNT AND INSTRUCT THAT PERSON TO EXECUTE ON YOUR BEHALF THE GOLD PROXY CARD AS SOON AS POSSIBLE. REVOCATION OF PROXIES Any Shareholder of record may revoke or change his or her proxy instructions at any time prior to the vote at the Annual Meeting by: - submitting a properly executed, subsequently dated GOLD proxy card that will revoke all prior proxy cards, including any white proxy cards which you may have submitted to Genzyme; - instructing the Icahn Parties by telephone or via the Internet as to how you would like your shares of Common Stock voted (instructions are on your GOLD proxy card); - attending the Annual Meeting and withdrawing his or her proxy by voting in person (although attendance at the Annual Meeting will not in and of itself constitute revocation of a proxy); or - delivering written notice of revocation either to the Icahn Parties c/o D.F. King & Co., Inc., 48 Wall Street, New York, NY 10005, or the Corporate Secretary of Genzyme. Although a revocation is effective if delivered to Genzyme, the Icahn Parties request that either the original or a copy of any revocation be mailed to the Icahn Parties c/o D.F. King & Co., Inc., 48 Wall Street, New York, NY 10005, so that the Icahn Parties will be aware of all revocations. IF YOU PREVIOUSLY SIGNED AND RETURNED A WHITE PROXY CARD TO GENZYME, WE URGE YOU TO REVOKE IT BY (1) MARKING, SIGNING, DATING AND RETURNING THE GOLD PROXY CARD, (2) INSTRUCTING US BY TELEPHONE OR VIA THE INTERNET AS TO HOW YOU WOULD LIKE YOUR SHARES OF COMMON STOCK VOTED WITH RESPECT TO THE GOLD PROXY CARD, (3) ATTENDING THE ANNUAL MEETING AND VOTING IN PERSON OR (4) DELIVERING A WRITTEN NOTICE OF REVOCATION TO THE ICAHN PARTIES OR TO THE CORPORATE SECRETARY OF THE COMPANY. COST AND METHOD OF SOLICITATION Solicitation of proxies will be made by Mr. Icahn, Drs. Burakoff, Denner, Ende and Mulligan. Pursuant to an Agreement dated April 27, 2010, Icahn Capital has retained D.F. King & Co., Inc. ("D.F. King") to conduct the solicitation, for which D.F. King is to receive a fee of up to $175,000, plus expenses and a success fee of up to $175,000. Icahn Capital has agreed to indemnify D.F. King against certain liabilities and expenses, including certain liabilities under the federal securities laws. Insofar as indemnification for liabilities arising under the federal securities laws may be permitted to D.F. King pursuant to the foregoing provisions, we have been informed that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy and is therefore unenforceable. Proxies may be solicited by mail, courier services, Internet, advertising, telephone or telecopier or in person. It is anticipated that D.F. King will employ up to 100 persons to solicit proxies from Genzyme Shareholders for the Annual Meeting. The total expenditures in furtherance of, or in connection with, the solicitation of proxies is approximately to date, and is estimated to be $175,000 in total. The Icahn Parties will pay all costs associated with this solicitation. The Icahn Parties do not intend to seek reimbursement for the costs and expenses associated with the proxy solicitation in the event that any of the Nominees are elected to the Board of Directors of Genzyme. ADDITIONAL INFORMATION Certain information regarding the securities of Genzyme held by Genzyme's directors, management and 5% Shareholders is contained in Genzyme's Proxy Statement. Information concerning the date by which proposals of security holders intended to be presented at the next annual meeting of Shareholders of Genzyme must be received by Genzyme for inclusion in Genzyme's Proxy Statement and form of proxy for that meeting is also contained in Genzyme's Proxy Statement. This information is expected to be contained in Genzyme's public filings. The Participants take no responsibility for the accuracy or completeness of such information contained in Genzyme's public filings. Date: May 4, 2010 DR. STEPHEN BURAKOFF DR. ALEXANDER J. DENNER MR. CARL C. ICAHN DR. RICHARD MULLIGAN DR. ERIC ENDE HIGH RIVER LIMITED PARTNERSHIP HOPPER INVESTMENTS LLC BARBERRY CORP. ICAHN PARTNERS LP ICAHN PARTNERS MASTER FUND LP ICAHN PARTNERS MASTER FUND II LP ICAHN PARTNERS MASTER FUND III LP ICAHN ENTERPRISES G.P. INC. ICAHN ENTERPRISES HOLDINGS L.P. IPH GP LLC ICAHN CAPITAL L.P. ICAHN ONSHORE LP ICAHN OFFSHORE LP BECKTON CORP. ANNEX A SECURITY OWNERSHIP OF THE PARTICIPANTS -------------------------------------- (1) TITLE OF (2) NAME OF (3) AMOUNT OF (4) PERCENT OF CLASS BENEFICIAL BENEFICIAL CLASS (2) OWNER (1) OWNERSHIP -------- ---------- ---------- ---------- Common Stock, par High River 2,620,000 0.98% value $0.01 per share ("Shares") Shares Icahn Partners 3,873,541 1.45% Shares Icahn Master 4,359,306 1.64% Shares Icahn Master II 1,630,324 0.61% Shares Icahn Master III 616,829 0.23% _________________________ (1) Please note that each record holder listed in this table is, as of the date of this filing, the direct beneficial owner of the Shares set forth under the heading "(3) Amount of Beneficial Ownership" and that indirect beneficial ownership of Shares is described below in the text of this Annex A under the heading "Description of Beneficial Ownership." (2) Please note that percentages of ownership set forth in this column were calculated based on the number of Shares stated to be outstanding as of the Record Date by the Corporation in the Corporation's Definitive Proxy Statement. DESCRIPTION OF BENEFICIAL OWNERSHIP AND BENEFICIAL OWNERS Barberry Corp., a Delaware corporation ("Barberry"), is the sole member of Hopper Investments LLC, a Delaware limited liability company ("Hopper"), which is the general partner of High River. Beckton Corp., a Delaware corporation ("Beckton") is the sole stockholder of Icahn Enterprises G.P. Inc., a Delaware corporation ("Icahn Enterprises GP"), which is the general partner of Icahn Enterprises Holdings L.P., a Delaware limited partnership ("Icahn Holdings"). Icahn Holdings is the sole member of IPH GP LLC, a Delaware limited liability company ("IPH"), which is the general partner of Icahn Capital L.P., a Delaware limited partnership ("Icahn Capital"). Icahn Capital is the general partner of each of Icahn Onshore LP, a Delaware limited partnership ("Icahn Onshore") and Icahn Offshore LP, a Delaware limited partnership ("Icahn Offshore"). Icahn Onshore is the general partner of Icahn Partners. Icahn Offshore is the general partner of each of Icahn Master, Icahn Master II and Icahn Master III. Each of Barberry and Beckton is 100 percent owned by Carl C. Icahn ("Mr. Icahn," and collectively with Barberry, Hopper, Beckton, Icahn Enterprises GP, Icahn Holdings, IPH, Icahn Capital, Icahn Onshore, Icahn Offshore, the "Beneficial Owners" and each of them a "Beneficial Owner." As such, Mr. Icahn is in a position indirectly to determine the investment and voting decisions made by each of the Icahn Parties. The principal business address of each of (i) Icahn Offshore, Icahn Onshore, Icahn Capital, IPH, Icahn Holdings, Icahn Enterprises GP and Beckton is White Plains Plaza, 445 Hamilton Avenue - Suite 1210, White Plains, NY 10601 and (ii) Barberry and Hopper is c/o Icahn Capital LP, 767 Fifth Avenue, 47th Floor, New York, NY 10153. The address of Icahn Partners is 767 Fifth Avenue, 47th Floor, New York, NY 10153. The address of Icahn Master is c/o Walkers SPV Limited, P.O. Box 908GT, 87 Mary Street, George Town, Grand Cayman, Cayman Islands. The address of Icahn Master II is c/o Walkers SPV Limited, Walker House, 87 Mary Street, George Town, Grand Cayman KY1-9002, Cayman Islands. The address of Icahn Master III is c/o Walkers SPV Limited, Walker House, 87 Mary Street, George Town, Grand Cayman KY1-9002, Cayman Islands. The address of High River is 767 Fifth Avenue, 47th Floor, New York, NY 10153. Barberry is primarily engaged in the business of serving as the sole member of Hopper and investing in securities. Hopper is primarily engaged in the business of serving as the general partner of High River and investing in securities. Icahn Offshore is primarily engaged in the business of serving as the general partner of each of Icahn Master, Icahn Master II and Icahn Master III. Icahn Onshore is primarily engaged in the business of serving as the general partner of Icahn Partners. Icahn Capital is primarily engaged in the business of serving as the general partner of each of Icahn Offshore and Icahn Onshore. IPH is primarily engaged in the business of serving as the general partner of Icahn Capital. Icahn Holdings is primarily engaged in the business of holding direct or indirect interests in various operating businesses. Icahn Enterprises GP is primarily engaged in the business of serving as the general partner of each of Icahn Enterprises and Icahn Holdings. Beckton is primarily engaged in the business of holding the capital stock of Icahn Enterprises GP. Each of High River, Icahn Master, Icahn Master II, Icahn Master III, Icahn Partners and High River are primarily engaged in the business of investing in securities. The Icahn Parties and Carl C. Icahn may be deemed to beneficially own, in the aggregate, 13,100,000 Shares, representing approximately 4.92% of the Corporation's outstanding Shares (based upon the 266,470,351 Shares stated to be outstanding as of the Record Date by the Corporation in the Corporation's Definitive Proxy filed with the Securities and Exchange Commission on April 26, 2010). High River has sole voting power and sole dispositive power with regard to 2,620,000 Shares. Each of Hopper, Barberry and Mr. Icahn has shared voting power and shared dispositive power with regard to such Shares. Icahn Partners has sole voting power and sole dispositive power with regard to 3,873,541 Shares. Each of Icahn Onshore, Icahn Capital, IPH, Icahn Holdings, Icahn Enterprises GP, Beckton and Mr. Icahn has shared voting power and shared dispositive power with regard to such Shares. Icahn Master has sole voting power and sole dispositive power with regard to 4,359,306 Shares. Each of Icahn Offshore, Icahn Capital, IPH, Icahn Holdings, Icahn Enterprises GP, Beckton and Mr. Icahn has shared voting power and shared dispositive power with regard to such Shares. Icahn Master II has sole voting power and sole dispositive power with regard to 1,630,324 Shares. Each of Icahn Offshore, Icahn Capital, IPH, Icahn Holdings, Icahn Enterprises GP, Beckton and Mr. Icahn has shared voting power and shared dispositive power with regard to such Shares. Icahn Master III has sole voting power and sole dispositive power with regard to 616,829 Shares. Each of Icahn Offshore, Icahn Capital, IPH, Icahn Holdings, Icahn Enterprises GP, Beckton and Mr. Icahn has shared voting power and shared dispositive power with regard to such Shares. Each of Hopper, Barberry and Mr. Icahn, by virtue of their relationships to High River, may be deemed to indirectly beneficially own the 2,620,000 Shares which High River directly beneficially owns. Each of Icahn Onshore, Icahn Capital, IPH, Icahn Holdings, Icahn Enterprises GP, Beckton and Mr. Icahn, by virtue of their relationships to Icahn Partners, may be deemed to indirectly beneficially own the 3,873,541 Shares which Icahn Partners directly beneficially owns. Each of Icahn Offshore, Icahn Capital, IPH, Icahn Holdings, Icahn Enterprises GP, Beckton and Mr. Icahn, by virtue of their relationships to Icahn Master, Icahn Master II and Icahn Master III, may be deemed to indirectly beneficially own the 6,606,459 Shares which Icahn Master, Icahn Master II and Icahn Master III directly beneficially own. On January 5, 2001, Reliance Group Holdings, Inc. ("Reliance") commenced an action in the United States District Court for the Southern District of New York against Mr. Icahn, Icahn Associates Corp. and High River alleging that High River's tender offer for Reliance 9% senior notes violated Section 14(e) of the Exchange Act. Reliance sought a temporary restraining order and preliminary and permanent injunctive relief to prevent defendants from purchasing the notes. The Court initially imposed a temporary restraining order. Defendants then supplemented the tender offer disclosures. The Court conducted a hearing on the disclosures and other matters raised by Reliance. It then denied plaintiff's motion for a preliminary injunction and ordered dissolution of its temporary restraining order following dissemination of the supplement. Reliance took an immediate appeal to the United States Court of Appeals for the Second Circuit and sought a stay to restrain defendants from purchasing notes during the pendency of the appeal. On January 30, 2001, the Court of Appeals denied plaintiff's stay application. On January 30, Reliance also sought a further temporary restraining order from the District Court. The Court considered the matter and reimposed its original restraint until noon the next day, at which time the restraint was dissolved. The appeal was argued on March 9 and denied on March 22, 2001. TWO YEAR SUMMARY TABLE: The following table indicates the date of each purchase and sale of Shares, as well as the exercise of any call options, if any, by the Participants and by Mr. Icahn and his affiliates within the past two years, and the number of shares in each such purchase and sale. SHARES PURCHASED/(SOLD) NAME DATE AND CALL OPTIONS EXERCISED - ---- ---- ------------------------------ High River 8/19/2009 8,800 High River 8/25/2009 157,475 High River 8/27/2009 16,000 High River 8/28/2009 117,725 High River 8/31/2009 12,600 High River 9/2/2009 7,400 High River 9/8/2009 30,000 High River 9/10/2009 10,000 High River 9/16/2009 2,700 High River 10/1/2009 20,740 High River 10/27/2009 66,000 High River 11/2/2009 30,000 High River 12/21/2009 8,600 High River 12/22/2009 5,000 High River 12/28/2009 1,048,830 (3) High River 1/28/2010 9,180 High River 2/5/2010 65,400 High River 2/8/2010 4,774 High River 2/9/2010 2,385 High River 2/10/2010 23,792 High River 2/11/2010 25,940 High River 2/12/2010 4,472 High River 2/16/2010 116,000 High River 2/17/2010 116,120 High River 2/18/2010 81,000 High River 2/19/2010 40,000 High River 2/23/2010 20 High River 2/25/2010 12,508 High River 3/4/2010 5,060 High River 3/24/2010 400,000 High River 3/25/2010 171,479 Icahn Partners 8/19/2009 12,050 Icahn Partners 8/25/2009 215,637 Icahn Partners 8/27/2009 21,910 Icahn Partners 8/28/2009 161,204 Icahn Partners 8/31/2009 17,254 Icahn Partners 9/2/2009 11,139 Icahn Partners 9/8/2009 41,175 Icahn Partners 9/10/2009 13,725 Icahn Partners 9/16/2009 3,705 Icahn Partners 10/1/2009 29,874 Icahn Partners 10/27/2009 90,853 Icahn Partners 11/2/2009 74,457 Icahn Partners 12/21/2009 12,380 Icahn Partners 12/22/2009 7,198 Icahn Partners 12/28/2009 1,507,035 (4) Icahn Partners 2/5/2010 170,634 Icahn Partners 2/8/2010 7,059 Icahn Partners 2/9/2010 3,527 Icahn Partners 2/10/2010 35,182 Icahn Partners 2/11/2010 38,358 Icahn Partners 2/12/2010 6,611 Icahn Partners 2/16/2010 171,528 Icahn Partners 2/17/2010 171,707 Icahn Partners 2/18/2010 118,393 Icahn Partners 2/19/2010 59,120 Icahn Partners 2/23/2010 29 Icahn Partners 2/25/2010 18,487 Icahn Partners 3/4/2010 8,402 Icahn Partners 3/24/2010 591,385 Icahn Partners 3/25/2010 253,523 Icahn Master 8/19/2009 14,837 Icahn Master 8/25/2009 265,515 Icahn Master 8/27/2009 26,977 Icahn Master 8/28/2009 198,493 Icahn Master 8/31/2009 21,244 Icahn Master 9/2/2009 12,682 Icahn Master 9/8/2009 50,601 Icahn Master 9/10/2009 16,868 Icahn Master 9/16/2009 4,554 Icahn Master 10/1/2009 37,434 Icahn Master 10/27/2009 111,736 Icahn Master 11/2/2009 45,543 Icahn Master 11/4/2009 66,921 Icahn Master 11/13/2009 75,664 Icahn Master 11/16/2009 206,077 Icahn Master 11/18/2009 91,658 Icahn Master 12/21/2009 14,720 Icahn Master 12/22/2009 8,559 Icahn Master 1/5/2010 1,369,237 (5) Icahn Master 2/5/2010 50,688 Icahn Master 2/8/2010 7,945 Icahn Master 2/9/2010 3,969 Icahn Master 2/10/2010 39,595 Icahn Master 2/11/2010 43,168 Icahn Master 2/12/2010 7,441 Icahn Master 2/16/2010 193,041 Icahn Master 2/17/2010 193,240 Icahn Master 2/18/2010 137,241 Icahn Master 2/19/2010 66,615 Icahn Master 2/23/2010 34 Icahn Master 2/25/2010 20,829 Icahn Master 3/4/2010 5,317 Icahn Master 3/24/2010 665,546 Icahn Master 3/25/2010 285,317 Icahn Master II 8/19/2009 6,020 Icahn Master II 8/25/2009 107,728 Icahn Master II 8/27/2009 10,945 Icahn Master II 8/28/2009 80,534 Icahn Master II 8/31/2009 8,621 Icahn Master II 9/2/2009 4,099 Icahn Master II 9/8/2009 20,433 Icahn Master II 9/10/2009 6,809 Icahn Master II 9/16/2009 1,839 Icahn Master II 10/1/2009 11,623 Icahn Master II 10/27/2009 44,516 Icahn Master II 11/4/2009 19,324 Icahn Master II 11/13/2009 27,937 Icahn Master II 11/16/2009 76,091 Icahn Master II 11/18/2009 33,843 Icahn Master II 11/24/2009 44,702 Icahn Master II 11/30/2009 49,668 Icahn Master II 12/3/2009 56,250 Icahn Master II 12/4/2009 27,122 Icahn Master II 12/7/2009 49,222 Icahn Master II 12/8/2009 36,918 Icahn Master II 12/9/2009 37,641 Icahn Master II 12/15/2009 49,223 Icahn Master II 12/16/2009 116,909 Icahn Master II 12/17/2009 12,306 Icahn Master II 12/21/2009 5,291 Icahn Master II 12/22/2009 3,076 Icahn Master II 1/28/2010 27,387 Icahn Master II 2/5/2010 29,014 Icahn Master II 2/8/2010 2,969 Icahn Master II 2/9/2010 1,482 Icahn Master II 2/10/2010 14,794 Icahn Master II 2/11/2010 16,129 Icahn Master II 2/12/2010 2,781 Icahn Master II 2/16/2010 72,128 Icahn Master II 2/17/2010 72,202 Icahn Master II 2/18/2010 49,603 Icahn Master II 2/19/2010 24,856 Icahn Master II 2/23/2010 12 Icahn Master II 2/25/2010 7,773 Icahn Master II 3/4/2010 4,898 Icahn Master II 3/24/2010 248,901 Icahn Master II 3/25/2010 106,705 Icahn Master III 8/19/2009 2,293 Icahn Master III 8/25/2009 41,022 Icahn Master III 8/27/2009 4,168 Icahn Master III 8/28/2009 30,667 Icahn Master III 8/31/2009 3,281 Icahn Master III 9/2/2009 1,680 Icahn Master III 9/8/2009 7,791 Icahn Master III 9/10/2009 2,598 Icahn Master III 9/16/2009 702 Icahn Master III 10/1/2009 4,029 Icahn Master III 10/27/2009 16,895 Icahn Master III 12/21/2009 2,009 Icahn Master III 12/22/2009 1,167 Icahn Master III 12/28/2009 241,572 (6) Icahn Master III 1/28/2010 9,332 Icahn Master III 2/5/2010 11,264 Icahn Master III 2/8/2010 1,124 Icahn Master III 2/9/2010 563 Icahn Master III 2/10/2010 5,599 Icahn Master III 2/11/2010 6,105 Icahn Master III 2/12/2010 1,053 Icahn Master III 2/16/2010 27,303 Icahn Master III 2/17/2010 27,331 Icahn Master III 2/18/2010 18,763 Icahn Master III 2/19/2010 9,409 Icahn Master III 2/23/2010 5 Icahn Master III 2/25/2010 2,941 Icahn Master III 3/4/2010 1,623 Icahn Master III 3/24/2010 94,168 Icahn Master III 3/25/2010 40,372 _________________________ (3) High River acquired these Shares upon the exercise of call options as described on Attachment I-A to this Annex A. (4) Icahn Partners acquired these Shares upon the exercise of call options as described on Attachment I-A to this Annex A. (5) Icahn Master acquired these Shares upon the exercise of call options as described on Attachment I-A to this Annex A. (6) Icahn Master III acquired these Shares upon the exercise of call options as described on Attachment I-A to this Annex A. Shares of Common Stock purchased by each of the Icahn Parties are maintained in margin accounts that include positions in securities in addition to the shares. As of April 30, 2010, the indebtedness of the margin account of each of Icahn Partners, Icahn Master, Icahn Master II, Icahn Master III and High River were approximately $71,012,220, $92,292,076, $31,257,952, $19,334,087, and $650,971,447, respectively. ANNEX A ATTACHMENT 1-A The following are American call options purchased by the Record Holders, which were written by UBS AG with a $33.25 strike price and an expiration date of November 4, 2011, and which provide for physical settlement. These are further described in the chart set forth below. On December 28, 2009, High River, Icahn Partners and Icahn Master III and on January 5, 2010, Icahn Master, exercised all of their respective call options as further described in the chart below. NUMBER OF SHARES NAME DATE SUBJECT TO OPTION PREMIUM - ---- ---- ----------------- ------- High River 11/04/2009 40,000.00 715,388.00 High River 11/13/2009 45,000.00 781,006.50 High River 11/16/2009 122,560.00 2,036,689.82 High River 11/18/2009 54,512.00 900,091.24 High River 11/24/2009 72,000.00 1,213,646.40 High River 11/30/2009 80,000.00 1,408,896.00 High River 12/02/2009 4,493.00 79,692.34 High River 12/03/2009 95,000.00 1,658,500.50 High River 12/04/2009 44,080.00 737,387.87 High River 12/07/2009 80,000.00 1,325,744.00 High River 12/08/2009 60,000.00 966,522.00 High River 12/09/2009 61,177.00 970,212.16 High River 12/15/2009 80,000.00 1,283,200.00 High River 12/16/2009 190,008.00 3,003,038.44 High River 12/17/2009 20,000.00 305,080.00 Icahn Partners 11/04/2009 66,516.00 1,189,618.71 Icahn Partners 11/13/2009 65,797.00 1,141,952.99 Icahn Partners 11/16/2009 179,202.00 2,977,960.92 Icahn Partners 11/18/2009 79,706.00 1,316,089.53 Icahn Partners 11/24/2009 105,273.00 1,774,502.74 Icahn Partners 11/30/2009 116,973.00 2,060,034.90 Icahn Partners 12/03/2009 123,029.00 2,147,827.98 Icahn Partners 12/04/2009 63,456.00 1,061,517.35 Icahn Partners 12/07/2009 115,164.00 1,908,474.78 Icahn Partners 12/08/2009 86,372.00 1,391,340.64 Icahn Partners 12/09/2009 88,067.00 1,396,663.36 Icahn Partners 12/15/2009 115,164.00 1,847,230.56 Icahn Partners 12/16/2009 273,527.00 4,323,039.53 Icahn Partners 12/17/2009 28,789.00 439,147.41 Icahn Master 11/24/2009 121,064.00 2,040,679.00 Icahn Master 11/30/2009 134,514.00 2,368,952.96 Icahn Master 12/02/2009 17,972.00 318,769.36 Icahn Master 12/03/2009 179,438.00 3,132,610.66 Icahn Master 12/04/2009 75,454.00 1,262,224.69 Icahn Master 12/07/2009 136,942.00 2,269,375.44 Icahn Master 12/08/2009 102,706.00 1,654,460.14 Icahn Master 12/09/2009 104,720.00 1,660,764.95 Icahn Master 12/15/2009 136,941.00 2,196,533.64 Icahn Master 12/16/2009 325,249.00 5,140,495.40 Icahn Master 12/17/2009 34,237.00 522,251.20 Icahn Master III 11/04/2009 7,239.00 129,467.34 Icahn Master III 11/13/2009 10,602.00 184,005.13 Icahn Master III 11/16/2009 28,870.00 479,758.77 Icahn Master III 11/18/2009 12,841.00 212,028.02 Icahn Master III 11/24/2009 16,961.00 285,898.01 Icahn Master III 11/30/2009 18,845.00 331,883.06 Icahn Master III 12/03/2009 21,283.00 371,556.49 Icahn Master III 12/04/2009 10,288.00 172,101.78 Icahn Master III 12/07/2009 18,672.00 309,428.65 Icahn Master III 12/08/2009 14,004.00 225,586.23 Icahn Master III 12/09/2009 14,279.00 226,452.09 Icahn Master III 12/15/2009 18,672.00 299,498.88 Icahn Master III 12/16/2009 44,348.00 700,911.27 Icahn Master III 12/17/2009 4,668.00 71,205.67 ANNEX A ATTACHMENT 1-B The following are European put options which were written by the Record Holders to UBS AG and have a $33.25 strike price and an expiration date of November 4, 2011, and provide for cash settlement only and are further described in the chart set forth below. On December 28, 2009, High River, Icahn Partners and Icahn Master III and on January 5, 2010, Icahn Master, exercised all of the call options described in Annex A Attachment 1-A, and upon exercise of the call options, all of the put options described below expired pursuant to their terms. NAME DATE QUANTITY OPTION PREMIUM ($) - ---- ---- -------- ------------------ High River 11/04/2009 40,000.00 7,153.88 High River 11/13/2009 45,000.00 7,810.07 High River 11/16/2009 122,560.00 20,366.90 High River 11/18/2009 54,512.00 9,000.91 High River 11/24/2009 72,000.00 12,136.46 High River 11/30/2009 80,000.00 14,088.96 High River 12/02/2009 4,493.00 796.92 High River 12/03/2009 95,000.00 16,585.01 High River 12/04/2009 44,080.00 7,373.88 High River 12/07/2009 80,000.00 13,257.44 High River 12/08/2009 60,000.00 9,665.22 High River 12/09/2009 61,177.00 9,702.12 High River 12/15/2009 80,000.00 12,832.00 High River 12/16/2009 190,008.00 30,030.38 High River 12/17/2009 20,000.00 3,050.80 Icahn Partners 11/04/2009 66,516.00 11,896.19 Icahn Partners 11/13/2009 65,797.00 11,419.53 Icahn Partners 11/16/2009 179,202.00 29,779.61 Icahn Partners 11/18/2009 79,706.00 13,160.90 Icahn Partners 11/24/2009 105,273.00 17,745.03 Icahn Partners 11/30/2009 116,973.00 20,600.35 Icahn Partners 12/03/2009 123,029.00 21,478.28 Icahn Partners 12/04/2009 63,456.00 10,615.17 Icahn Partners 12/07/2009 115,164.00 19,084.75 Icahn Partners 12/08/2009 86,372.00 13,913.41 Icahn Partners 12/09/2009 88,067.00 13,966.63 Icahn Partners 12/15/2009 115,164.00 18,472.31 Icahn Partners 12/16/2009 273,527.00 43,230.40 Icahn Partners 12/17/2009 28,789.00 4,391.47 Icahn Master 11/24/2009 121,064.00 20,406.79 Icahn Master 11/30/2009 134,514.00 23,689.53 Icahn Master 12/02/2009 17,972.00 3,187.69 Icahn Master 12/03/2009 179,438.00 31,326.11 Icahn Master 12/04/2009 75,454.00 12,622.25 Icahn Master 12/07/2009 136,942.00 22,693.75 Icahn Master 12/08/2009 102,706.00 16,544.60 Icahn Master 12/09/2009 104,720.00 16,607.65 Icahn Master 12/15/2009 136,941.00 21,965.34 Icahn Master 12/16/2009 325,249.00 51,404.95 Icahn Master 12/17/2009 34,237.00 5,222.51 Icahn Master III 11/04/2009 7,239.00 1,294.67 Icahn Master III 11/13/2009 10,602.00 1,840.05 Icahn Master III 11/16/2009 28,870.00 4,797.59 Icahn Master III 11/18/2009 12,841.00 2,120.28 Icahn Master III 11/24/2009 16,961.00 2,858.98 Icahn Master III 11/30/2009 18,845.00 3,318.83 Icahn Master III 12/03/2009 21,283.00 3,715.56 Icahn Master III 12/04/2009 10,288.00 1,721.02 Icahn Master III 12/07/2009 18,672.00 3,094.29 Icahn Master III 12/08/2009 14,004.00 2,255.86 Icahn Master III 12/09/2009 14,279.00 2,264.52 Icahn Master III 12/15/2009 18,672.00 2,994.99 Icahn Master III 12/16/2009 44,348.00 7,009.11 Icahn Master III 12/17/2009 4,668.00 712.06 ANNEX B [FORM OF NOMINEE AGREEMENT] HIGH RIVER LIMITED PARTNERSHIP ICAHN PARTNERS LP ICAHN PARTNERS MASTER FUND LP ICAHN PARTNERS MASTER FUND II LP ICAHN PARTNERS MASTER FUND III LP FEBRUARY 17, 2010 Dear ___________: This will confirm our understanding as follows: You agree that you are willing, should we so elect, to become a member of a slate of nominees (the "Slate") to stand for election as directors of Genzyme Corporation ("Genzyme") in connection with a proxy contest with management of Genzyme in respect of the election of directors of Genzyme at the 2010 Annual Meeting of Shareholders of Genzyme (the "Annual Meeting"), expected to be held in the Spring of 2010, or a special meeting of shareholders of Genzyme called for a similar purpose (the "Proxy Contest"). High River Limited Partnership, Icahn Partners LP, Icahn Partners Master Fund LP, Icahn Partners Master Fund II LP and Icahn Partners Master Fund III LP (collectively, "Icahn"), agree to pay the costs of the Proxy Contest. In addition, upon our filing of a preliminary proxy statement with the SEC, which indicates that Icahn intends to nominate you for election at the Annual Meeting, you will be entitled to be paid $25,000 by Icahn unless you are elected to serve as a director of Genzyme at the Annual Meeting or a special meeting of shareholders of Genzyme called for a similar purpose or in connection with a settlement of the Proxy Contest by Icahn and Genzyme, in which case you will not receive any payment from Icahn in connection with the Proxy Contest. Payment to you pursuant to this paragraph, if any, will be made by Icahn, subject to the terms hereof, upon the earliest of (i) the certification of the results of the election in respect of the Proxy Contest, (ii) the settlement of the Proxy Contest by Icahn and Genzyme, or (iii) the withdrawal of the Proxy Contest by Icahn. (7) You understand that it may be difficult, if not impossible, to replace nominees who, such as yourself, have agreed to serve on the Slate and later change their minds and determine not to seek election. Accordingly, the Slate is relying upon your agreement to seek election. In that connection, you are being supplied with a questionnaire in which you will provide Icahn with information necessary for Icahn to make appropriate disclosure both to Genzyme and for use in creating the proxy material to be sent to shareholders of Genzyme and to be filed with the Securities and Exchange Commission. You have agreed that (i) you will immediately complete and sign the questionnaire and return it to Tara L. Keating, Assistant General Counsel, Icahn Enterprises LP, 767 Fifth Avenue, Suite 4700, New York, NY 10153, Tel: (212) 702-4365, Fax: (212) 688-1158, Email: tkeating@sfire.com and (ii) your responses to the questions contained therein will be true and correct in all respects. In addition, you have agreed that, concurrently with your execution of this letter, you will execute the attached instrument directed to Genzyme informing Genzyme that you consent to being nominated by Icahn for election as a director of Genzyme and, if elected, consent to serving as a director of Genzyme. Upon being notified that we have chosen you, we may forward that consent and your completed questionnaire (or summaries thereof) to Genzyme. ________________________ (7) This paragraph is not contained in Dr. Denner's Nominee Agreement. Icahn hereby agrees that, so long as you actually serve on the Slate, Icahn will defend, indemnify and hold you harmless from and against any and all losses, damages, penalties, judgments, awards, liabilities, costs, expenses and disbursements (including, without limitation, reasonable attorneys' fees, costs, expenses and disbursements) incurred by you in the event that (i) you become a party, or are threatened to be made a party, to any civil, criminal, administrative or arbitrative action, suit or proceeding, and any appeal thereof relating solely to your role as a nominee for director of Genzyme on the Slate (a "Proceeding") or (ii) you are called to testify or give a deposition in any Proceeding (whether or not you are a party or are threatened to be made a party to such Proceeding), including, in each case, the advancement to you of all reasonable attorneys' costs and expenses incurred by you in connection with any Proceeding. Your right of indemnification hereunder shall continue (i) in the event that Icahn determines to withdraw the Slate or remove you from the Slate and (ii) after the election has taken place but only for events which occur prior to such election and subsequent to the date hereof. Anything to the contrary herein notwithstanding, Icahn is not indemnifying you for any action taken by you or on your behalf which occurs prior to the date hereof or subsequent to the Annual Meeting or such earlier time as you are no longer a nominee of the Slate for election to Genzyme's Board of Directors or for any actions taken by you as a director of Genzyme, if you are elected. Nothing herein shall be construed to provide you an indemnity: (i) in the event you are found to have engaged in a violation of any provision of state or federal law in connection with the Proxy Contest unless you demonstrate that your action was taken in good faith and in a manner you reasonably believed to be in or not opposed to the best interests of electing the Slate; or (ii) if you acted in a manner which constitutes gross negligence or willful misconduct. In the event that you shall make any claim for indemnification hereunder, you shall promptly notify Icahn in the event of any third-party claims actually made against you or known by you to be threatened. In addition, with respect to any such claim, Icahn shall be entitled to control your defense with counsel chosen by Icahn. Icahn shall not be responsible for any settlement of any claim against you covered by this indemnity without its prior written consent. However, Icahn may not enter into any settlement of any such claim without your consent unless such settlement includes a release of you from any and all liability in respect of such claim. Each of us recognizes that should you be elected to the Board of Directors of Genzyme all of your activities and decisions as a director will be governed by applicable law and subject to your fiduciary duty to the shareholders of Genzyme and, as a result, that there is, and can be, no agreement between you and Icahn which governs the decisions which you will make as a director of Genzyme. Should the foregoing agree with your understanding, please so indicate in the space provided below, whereupon this letter will become a binding agreement between us. Very truly yours, HIGH RIVER LIMITED PARTNERSHIP By: __________________________ Name: Edward E. Mattner Title: Authorized Signatory ICAHN PARTNERS LP By: __________________________ Name: Edward E. Mattner Title: Authorized Signatory ICAHN PARTNERS MASTER FUND LP By: __________________________ Name: Edward E. Mattner Title: Authorized Signatory ICAHN PARTNERS MASTER FUND II LP By: __________________________ Name: Edward E. Mattner Title: Authorized Signatory ICAHN PARTNERS MASTER FUND III LP By: __________________________ Name: Edward E. Mattner Title: Authorized Signatory Agreed to and Accepted as of the date first above written: __________________________ Name: IMPORTANT --------- 1. If your shares of Common Stock are held in your own name, please mark, date and mail the enclosed GOLD proxy card to our Proxy Solicitor, D.F. King & Co., Inc., in the postage-paid envelope provided. 2. If your shares of Common Stock are held in the name of a brokerage firm, bank nominee or other institution, only it can vote such shares of Common Stock and only upon receipt of your specific instructions. Accordingly, you should contact the person responsible for your account and give instructions for a GOLD proxy card to be signed representing your shares of Common Stock. 3. If you have already submitted a white proxy card to Genzyme for the Annual Meeting, you may change your vote to a vote FOR the election of the Nominee by marking, signing, dating and returning the enclosed GOLD proxy card for the Annual Meeting, which must be dated after any proxy you may have submitted to Genzyme. You may also submit your later-dated proxy by using the enclosed GOLD proxy card to vote by telephone or by Internet. ONLY YOUR LATEST DATED PROXY FOR THE ANNUAL MEETING WILL COUNT AT THE ANNUAL MEETING. If you have any questions or require any assistance in executing your proxy, please call: D.F. KING & CO., INC. STOCKHOLDERS CALL TOLL-FREE: (800) 347-4750 BANKS AND BROKERAGE FIRMS CALL: (212) 269-5550 GENZYME CORPORATION ANNUAL MEETING OF SHAREHOLDERS JUNE 16, 2010 GOLD PROXY CARD GOLD PROXY CARD THIS PROXY IS SOLICITED BY: --------------------------- DR. STEVEN BURAKOFF, DR. ALEXANDER J. DENNER, MR. CARL C. ICAHN, DR. RICHARD MULLIGAN, DR. ERIC ENDE, HIGH RIVER LIMITED PARTNERSHIP, HOPPER INVESTMENTS LLC, BARBERRY CORP., ICAHN PARTNERS LP, ICAHN PARTNERS MASTER FUND LP, ICAHN PARTNERS MASTER FUND II LP, ICAHN PARTNERS MASTER FUND III LP, ICAHN ENTERPRISES G.P. INC., ICAHN ENTERPRISES HOLDINGS L.P., IPH GP LLC, ICAHN CAPITAL L.P., ICAHN ONSHORE LP, ICAHN OFFSHORE LP AND BECKTON CORP. (THE "PARTICIPANTS") VOTING CONTROL NUMBER THERE ARE THREE WAYS TO AUTHORIZE THE PROXIES TO CAST YOUR VOTES YOUR TELEPHONE OR INTERNET VOTE AUTHORIZES THE NAMED PROXIES TO VOTE YOUR SHARES IN THE SAME MANNER AS IF YOU HAD RETURNED YOUR PROXY CARD. WE ENCOURAGE YOU TO USE THESE COST EFFECTIVE AND CONVENIENT WAYS OF VOTING, 24 HOURS A DAY, 7 DAYS A WEEK. TELEPHONE VOTING INTERNET VOTING VOTING BY MAIL This method of voting is Visit the Internet voting Simply sign and date available for residents of Web site at https://www. your proxy card and the U.S. and Canada. On a directvote.com/genz. Have return it in the touch tone telephone, call this proxy card ready and postage-paid envelope TOLL FREE 1-866-407-4371, follow the instructions to D.F. King & Co., 24 hours a day, 7 days a on your screen. You will Inc., c/o Independent week. Have this proxy card incur only your usual Tabulator, P.O. Box ready, then follow the pre- Internet charges. Avail- 1997, New York, NY recorded instructions. Your able 24 hours a day, 7 10117-0024. If you vote will be confirmed and days a week until 11:59 are voting by tele- cast as you have directed. p.m., June 15, 2010 EDT. phone or the Internet Available 24 hours a day, please do not mail 7 days a week until 11:59 your proxy card. p.m., June 15, 2010 EDT. DETACH BELOW AND RETURN USING THE ENVELOPE PROVIDED ONLY IF YOU ARE VOTING BY MAIL. YOUR VOTE, WHETHER BY INTERNET, TELEPHONE OR MAIL, MUST BE RECEIVED NO LATER THAN 11:59 P.M., JUNE 15, 2010 EDT TO BE INCLUDED IN THE VOTING RESULTS. DETACH HERE GENZYME CORPORATION ANNUAL MEETING OF SHAREHOLDERS JUNE 16, 2010 GOLD PROXY CARD GOLD PROXY CARD THIS PROXY IS SOLICITED BY: --------------------------- DR. STEVEN BURAKOFF, DR. ALEXANDER J. DENNER, MR. CARL C. ICAHN, DR. RICHARD MULLIGAN, DR. ERIC ENDE, HIGH RIVER LIMITED PARTNERSHIP, HOPPER INVESTMENTS LLC,BARBERRY CORP., ICAHN PARTNERS LP, ICAHN PARTNERS MASTER FUND LP, ICAHN PARTNERS MASTER FUND II LP, ICAHN PARTNERS MASTER FUND III LP, ICAHN ENTERPRISES G.P. INC., ICAHN ENTERPRISES HOLDINGS L.P., IPH GP LLC, ICAHN CAPITAL L.P., ICAHN ONSHORE LP, ICAHN OFFSHORE LP AND BECKTON CORP. (THE "PARTICIPANTS") The undersigned hereby appoints and constitutes each of Alexander J. Denner and Tara L. Keating (acting alone or together) as proxies, with full power of substitution in each, to represent the undersigned at the Annual Meeting of Shareholders of Genzyme Corporation ("Genzyme") to be held on June 16, 2010 at 9 a.m. local time at the American Academy of Arts and Sciences, 136 Irving Street, Cambridge, Massachusetts, and at any adjournment or postponement or continuations thereof (the "Annual Meeting"), hereby revoking any proxies previously given, to vote all shares of Common Stock of Genzyme held or owned by the undersigned as directed below, and in their discretion upon such other matters as may come before the meeting (provided, however, that the persons named above will be permitted to use such discretionary authority only for matters which they do not know, a reasonable time before the solicitation, are to be presented at the meeting). IF NO DIRECTION IS MADE, THE PERSONS NAMED IN THIS GOLD PROXY CARD WILL VOTE YOUR SHARES: (I) FOR DR. STEPHEN BURAKOFF FOR DIRECTOR; (II) FOR DR. ALEXANDER J. DENNER FOR DIRECTOR; (III) FOR MR. CARL C. ICAHN FOR DIRECTOR (IV) FOR DR. RICHARD MULLIGAN FOR DIRECTOR (V) FOR THE PERSONS WHO HAVE BEEN NOMINATED BY GENZYME TO SERVE AS DIRECTORS, OTHER THAN CHARLES L. COONEY, SENATOR CONNIE MACK III, RICHARD F. SYRON AMD HENRI A. TERMEER; (VI) FOR THE AMENDMENT TO THE 2004 EQUITY INCENTIVE PLAN; (VII) FOR THE AMENDMENT TO THE 2009 EMPLOYEE STOCK PURCHASE PLAN; (VIII) AGAINST THE AMENDMENT TO THE 2007 DIRECTOR EQUITY PLAN; (IX) FOR THE AMENDMENT TO THE RESTATED ARTICLES OF ORGANIZATION; (X) FOR THE RATIFICATION OF THE SELECTION OF THE INDEPENDENT REGISTERED ACCOUNTING FIRM; AND (XI) IN THE PROXY HOLDERS' DISCRETION AS TO OTHER MATTERS THAT MAY PROPERLY COME BEFORE THE ANNUAL MEETING. THE PROXY STATEMENT, AS WELL AS OTHER PROXY MATERIALS DISTRIBUTED BY THE PARTICIPANTS, ARE AVAILABLE FREE OF CHARGE ONLINE AT WWW.DFKING.COM/GENZYME. SIGN, DATE AND MAIL YOUR PROXY TODAY UNLESS YOU HAVE VOTED BY TELEPHONE OR BY INTERNET, (CONTINUED AND TO BE SIGNED ON THE REVERSE SIDE.) IF YOU HAVE NOT VOTED BY INTERNET OR TELEPHONE, PLEASE DATE, MARK, SIGN AND RETURN THIS PROXY PROMPTLY. YOUR VOTE, WHETHER BY INTERNET, TELEPHONE OR MAIL, MUST BE RECEIVED NO LATER THAN 11:59 P.M., JUNE 15, 2010 EDT TO BE INCLUDED IN THE VOTING RESULTS. [X] PLEASE MARK VOTES AS IN THIS EXAMPLE. THE PARTICIPANTS RECOMMEND A VOTE "FOR" THE ELECTION OF THE NOMINEES LISTED IN PROPOSAL 1 BELOW, "FOR" PROPOSALS 2, 3, 5 AND 6 AND "AGAINST" 4. 1. Election of directors -- Nominees: [ ] [ ] [ ] (01) Dr. Steven Burakoff FOR ALL WITHHELD FROM FOR ALL (02) Dr. Alexander J. Denner NOMINEES ALL NOMINEES EXCEPT (03) Mr. Carl C. Icahn (04) Dr. Richard Mulligan The persons who have been nominated by Genzyme to serve as directors other than Charles L. Cooney, Senator Connie Mack III, Richard F. Syron and Henri A. Termeer. The Participants are NOT seeking authority to vote for and WILL NOT exercise any authority to vote for Charles L. Cooney, Senator Connie Mack III, Richard F. Syron and Henri A. Termeer. There is no assurance that any of the Genzyme nominees, will serve as directors if any or all of the Nominees are elected to the Board. You should refer to the proxy statement and form of proxy distributed Genzyme for the names, background, qualifications and other information concerning Genzyme nominees. NOTE: IF YOU DO NOT WISH YOUR SHARES VOTED "FOR" A PARTICULAR NOMINEE, MARK THE "FOR ALL EXCEPT" BOX AND WRITE THE NAME(S) OF THE NOMINEE(S) YOU DO NOT SUPPORT ON THE LINE BELOW. YOU MAY ALSO WITHHOLD AUTHORITY TO VOTE FOR THE PERSONS WHO HAVE BEEN NOMINATED BY GENZYME TO SERVE AS DIRECTORS OTHER THAN CHARLES L. COONEY, SENATOR CONNIE MACK III, RICHARD F. SYRON AND HENRI A. TERMEER BY WRITING THE NAMES OF SUCH NOMINEES BELOW. YOUR SHARES WILL THEN BE VOTED FOR THE REMAINING NOMINEE(S). ___________________________________________________________________________ 2. A proposal to amend the 2004 Equity [ ] [ ] [ ] Incentive Plan to increase the number FOR AGAINST ABSTAIN of shares of common stock available for issuance under the plan by 2,750,000 shares. 3. A proposal to amend the 2009 Employee [ ] [ ] [ ] Stock Purchase Plan to increase the FOR AGAINST ABSTAIN number of shares of common stock under the plan by 1,500,000. 4. A proposal to amend the 2007 Director [ ] [ ] [ ] Equity Plan to increase the number of FOR AGAINST ABSTAIN shares of common stock available for issuance under the plan by 250,000 shares. 5. A proposal to amend the Restated [ ] [ ] [ ] Articles of Organization to reduce the FOR AGAINST ABSTAIN percentage of shares required for shareholders to call a special meeting of shareholders from 90% to 40%. 6. A proposal to ratify the audit committee's [ ] [ ] [ ] selection of independent auditors for 2010. FOR AGAINST ABSTAIN Please be sure to sign and date this Proxy. ------------------------------------- -------------------------- SIGNATURE(S) OF SHAREHOLDER(S) DATE ------------------------------------- -------------------------- SIGNATURE(S) IF HELD JOINTLY DATE ---------------------------------------------------------------------- TITLE, IF ANY NOTE: IF YOU DO NOT WISH YOUR SHARES VOTED "FOR" A PARTICULAR NOMINEE, MARK THE "FOR ALL EXCEPT" BOX AND WRITE THE NAME(S) OF THE NOMINEE(S) YOU DO NOT SUPPORT ON THE LINE BELOW. YOU MAY ALSO WITHHOLD AUTHORITY TO VOTE FOR THE PERSONS WHO HAVE BEEN NOMINATED BY GENZYME TO SERVE AS DIRECTORS OTHER THAN CHARLES L. COONEY, SENATOR CONNIE MACK III, RICHARD F. SYRON AND HENRI A. TERMEER BY WRITING THE NAMES OF SUCH NOMINEES BELOW. YOUR SHARES WILL THEN BE VOTED FOR THE REMAINING NOMINEE(S). -----END PRIVACY-ENHANCED MESSAGE-----