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LEUKAPHERESIS SERVICES AGREEMENT

Consulting Services Agreement

LEUKAPHERESIS SERVICES AGREEMENT | Document Parties: DENDREON CORP | Dendreon Corporation You are currently viewing:
This Consulting Services Agreement involves

DENDREON CORP | Dendreon Corporation

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Title: LEUKAPHERESIS SERVICES AGREEMENT
Governing Law: Delaware     Date: 9/29/2009
Industry: Biotechnology and Drugs     Sector: Healthcare

LEUKAPHERESIS SERVICES AGREEMENT, Parties: dendreon corp , dendreon corporation
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Exhibit 99.2

LEUKAPHERESIS SERVICES AGREEMENT

     This Agreement (“Agreement”) is made as of September 24, 2009 (“the Effective Date”) between Dendreon Corporation, a Delaware Corporation, (“Dendreon”), with offices at 3005 First Avenue, Seattle, Washington 98121 and American National Red Cross (“ARC”), a nonprofit, charitable corporation chartered by an act of the United States Congress, on behalf of its participating blood services regions, each a “Collection Center”), with offices at 2025 E Street NW, Washington, DC 20006.

     WHEREAS, ARC provides leukapheresis collection services for those in need of such services throughout the United States;

     WHEREAS, Dendreon desires to obtain clinical trial and/or commercial leukapheresis collections in connection with the development and commercialization of Dendreon’s immunotherapeutic cancer product candidates; and

     WHEREAS, ARC is willing to provide such services on behalf of Dendreon though ARC’s network of Collection Centers throughout the United States.

     NOW, THERFORE, in consideration of the mutual covenants and undertakings contained herein, ARC and Dendreon, intending to be legally bound, hereby agree as follows:

          1. Definitions

 

(a)

 

Affiliate ” shall mean, with respect to any person or entity, any other person or entity, which controls, is controlled by or is under common control with such person or entity. For purposes of this Agreement, a person or entity shall be in “control” of an entity if it owns or controls at least fifty percent (50%) of the equity securities of the subject entity entitled to vote in the election of directors (or, in the case of an entity that is not a corporation, for the election of the corresponding managing authority), or otherwise has the power to control the management and policies of such other entity.

 

 

(b)

 

“Collection Center Sites” shall mean the Sites listed on Exhibit B and amended from time to time as agreed upon by the parties.

 

 

(c)

 

“Confidential Information” means all non-public and/or proprietary information owned or possessed by the disclosing party and provided to the receiving party, whether disclosed in writing or orally. It includes apheresis procedures, financial records, methods, techniques and processes, and technical and scientific data, unpublished findings, biological material, know-how, specifications, patent applications, algorithms, programs, designs, drawings, and formulae, and engineering, manufacturing, marketing, financial and business plans and data, and any information disclosed by disclosing party to receiving party pursuant to this Agreement.

 


 

 

(d)

 

“Procedures” shall mean a series of tasks performed in a definite, regular order in accordance with instructions that are version controlled and approved by appropriate personnel.

 

 

(e)

 

“Services” shall have the meaning set forth in Section 2(a).

 

 

(f)

 

“Term” has the meaning set forth in Section 11(a).

          2. Services, Scheduling and Compliance with Law

 

(a)

 

Collection Center shall provide services to Dendreon in the form of clinical trial and/or commercial leukapheresis collections (for purposes of this Agreement, the terms leukapheresis (mononuclear cell (MNC) collection) and apheresis shall be interchangeable) and any other services that are mutually agreed to in writing in accordance with the terms and conditions contained in this Agreement (“Services”), including without limitation those services set forth in the Exhibits which are attached hereto and incorporated herein and which set forth procedures for leukapheresis collections. The Services will be performed on patients referred to Collection Center by Dendreon.

 

 

(b)

 

Collection Center agrees to perform these Services (i) in strict accordance with the terms of this Agreement, including all Exhibits hereto, (ii) in compliance with all applicable federal, state, and local laws, rules, regulations, ordinances, and guidelines (collectively, the “Legal Requirements”), including without limitation applicable FDA regulations, guidances, guidelines, and policies, (iii) in compliance with any written instructions of Dendreon and (iv) in a professional manner that meets industry standards.

 

 

(c)

 

Collection Center shall ensure that adequate personnel are available to perform the Services hereunder. The level of staffing and staffing patterns shall be at the discretion of the Collection Center, subject to the foregoing sentence. All Collection Center personnel performing Services shall be duly licensed health care professionals, according to the applicable individual state requirements, who are trained to perform the leukapheresis collections and otherwise perform the Services. Collection Center shall also provide the appropriate supplies, apheresis equipment approved by FDA for mononuclear cell collections, and pharmaceuticals that are reasonably necessary for the performance of the Services, except as set forth on Exhibit A or otherwise expressly agreed by the parties. Collection Center shall provide pharmaceuticals for use as reasonably necessary for the performance of the Services (e.g., Heparin, Epinephrine, normal saline, IV calcium gluconate, Tums, Diphenhydramine, and Methylprednisolone). All equipment used by Collection Center relating to the Services shall be maintained in accordance with the manufacturer’s specifications.

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(d)

 

During the term of this Agreement, Collection Center agrees to meet with designated representatives of Dendreon to discuss the progress and results of the Services, and ongoing plans and changes in the Services. Collection Center participants in such meetings will include staff trained and knowledgeable about the provision of services for Dendreon, and other Collection Center staff as appropriate. At a minimum, Dendreon and Collection Center shall meet on at least a quarterly basis, and more frequently if required, for a business planning forecasting discussion, which Collection Center may utilize for its capacity and resource planning purposes.

 

 

(e)

 

Collection Center shall coordinate all scheduling activities with Dendreon in accordance with the terms set forth on Exhibit A hereto.

          3. Collection Center Locations

 

(a)

 

Collection Center proposes to provide Services in accordance with this Agreement at the locations (“Sites”) set forth on Exhibit B, attached hereto. Exhibit B shall be amended from time to time as agreed upon between the parties.

 

 

(b)

 

Collection Center shall be the preferred provider of leukapheresis services to Dendreon within the United States of America, either directly or via subcontractor relationships it develops. Collection Center shall have the right to make the first offer to provide Services to Dendreon in a select geographic region, which Dendreon shall in good faith consider and engage in discussions with Collection Center over a period of not less than thirty (30) days, following which Dendreon has the right to identify and engage another entity to provide Services in such region if desired.

 

 

(c)

 

The list of Sites set forth on Exhibit B shall be confirmed by Dendreon and the Services shall be implemented by Collection Center upon completion of qualification and site inspection of each Site by Dendreon, training of licensed staff, technicians and other office personnel. Dendreon shall provide the initial training. Thereafter, Collection Center shall be responsible for training all other personnel. Dendreon and Collection Center will work together to develop a training plan for subsequent sites. The implementation schedule shall provide for one or more tests prior to commencement of the Services.

          4. Chain of Identity, Labeling, Packaging and Shipping of Leukapheresis Products

     Collection Center Sites shall maintain chain of identity with Dendreon regarding Patients and/or cell collections in accordance with the requirements set forth on Exhibit C, hereto.

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          5. Privacy Requirements

 

(a)

 

Collection Center agrees to maintain a privacy policy to protect the information of individuals.

 

 

(b)

 

Collection Center agrees to ensure that all personnel performing the Services under this Agreement review and are aware of the Collection Center’s privacy policy.

 

 

(c)

 

Collection Center agrees not to disclose confidential patient data to any third party or to use such data for any purpose other than providing the Services outlined in this Agreement, provided, however, that Collection Center may disclose patient information pursuant to law or court order, provided, however, that Collection Center shall inform Dendreon within 24 hours of any such mandated disclosure.

 

 

(d)

 

In the event that Collection Center receives a request to produce or provide confidential patient information to a government agency or other third party, Collection Center agrees to notify Dendreon of such request, to the extent permitted by the government agency or third party.

 

 

(e)

 

Collection Center agrees to allow Dendreon and/or its designated representatives from time to time and upon reasonable advance notice to review Collection Center’s privacy policy. All such designated representatives shall be employees of Dendreon.

 

 

(f)

 

Collection Center employees will only access and use confidential Dendreon patient data as needed to perform the Services and Collection Center functions.

 

 

(g)

 

Collection Center will use prudent and reasonable precautions to maintain and store confidential Dendreon patient data in a secure manner in an effort to prevent unauthorized access to systems and locations where personal donor information is stored.

 

 

(h)

 

Collection Center will limit access to confidential Dendreon patient data to authorized individuals.

 

 

(i)

 

Collection Center shall immediately report to Dendreon in writing of any use and/or disclosure of confidential patient information that is not permitted or required under this Agreement which Collection Center becomes aware within five (5) business days of Collection Center’s discovery of such unauthorized use or disclosure. Collection Center will take reasonable steps to mitigate or rectify any harm that may result from such unauthorized use or disclosure, and take reasonable actions to prevent any similar unauthorized use or disclosure in the future.

          6. Communications Protocol

     Collection Center Sites shall communicate with Dendreon regarding Patients and/or cell collections in accordance with the requirements set forth on Exhibit D, hereto.

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          7. Regulatory and Quality Requirements

     Collection Center shall conduct all Services in accordance with and shall strictly adhere to the requirements of the Regulatory and Quality requirements set forth in Exhibit E.

          8. Regulatory and Quality Control

     Collection Center shall conduct all Services in accordance with and shall strictly adhere to the Regulatory and Quality Control standards set forth in Exhibit F.

          9. Adverse Events Reporting

     Collection Center shall strictly adhere to any and all Legal Requirements for reporting adverse events in accordance with the same. All adverse events occurring during any clinical cell collection procedure conducted on behalf of Dendreon should be reported per the clinical trial protocol. Adverse events occurring during any commercial cell collection procedure may be reported to Dendreon’s Call Center. The Collection Center shall provide responses to a series of questions about the adverse event as described in Exhibit G, Adverse Events Reporting Requirements. In addition, the Collection Center shall follow its own Procedures for reporting adverse events to FDA and adhere to Collection Center’s policies and standards of care for medical management of patients.

          10. Complaint Investigation

     Dendreon and Collection Center shall work together in good faith to develop a process to capture, address, track and report on Complaints utilizing the Collection Center’s Problem Management System.

     Within the Collection Center’s Problem Management System, a Complaint is currently defined as any written, electronic, or oral communication that alleges deficiencies related to the identity, durability, reliability, safety, effectiveness, or performance of any device, blood component, blood product, process, procedure, or employee performance that impacts donor or product safety.

          11. Term and Termination

 

(a)

 

This Agreement shall commence on the Effective Date and remain in effect for five (5) years, unless terminated earlier in accordance with the provisions of this Section 10 (the “Initial Term”). Thereafter, this Agreement will renew automatically for additional 1 (one) year periods (“Subsequent Term” and together with the Initial Term, the “Term”) unless otherwise terminated in accordance with the provisions of this section. The successful completion of site inspections and qualification of additional Sites shall not “restart” the clock for purposes of establishing the Effective Date of this Agreement, but rather such additional Sites shall simply be added to the list of Sites which have been approved by Dendreon to provide Services under this Agreement.

 

 

(b)

 

Either party may terminate this Agreement without cause by giving twelve (12) months prior written notice to the other party. In addition,

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either party may terminate this Agreement for cause upon thirty (30) days prior notice to the other party, defined as any material breach of this Agreement, which shall remain uncured following fifteen (15) days notice. Any termination shall be without prejudice to any claims that either party may have against the other. Dendreon’s sole responsibility in the event of termination shall be to reimburse Collection Center for Services actually and satisfactorily performed by Collection Center up to the effective date of termination. Upon expiration or termination of this Agreement, Collection Center shall promptly return to Dendreon any and all copies of Confidential Information (as defined above) in Collection Center’s possession, as well as any other equipment or supplies provided by Dendreon to Collection Center hereunder.

 

 

(c)

 

In the event that either party elects to terminate this Agreement pursuant to the terms set forth above, the parties agree to work together cooperatively and in good faith to wind up their business relationship, transfer cell collection responsibilities to those providers as may be designated by Dendreon, comply with regulatory requirements applicable to the termination, and otherwise complete an orderly termination.

 

 

(d)

 

Sections 5, 15, 16, 19, 20, 23, 24, 25 and 29 shall survive any expiration or termination of this Agreement for the time period set forth therein, or if no time period is set forth therein, then indefinitely.

          12. Payment for Services Rendered

 

(a)

 

Compensation for the Services will be as shown in Exhibit H.

 

 

(b)

 

Following the first year of commercialization, and for the remaining four years of the term of this Agreement, the parties agree that the prices as shown in Exhibit H shall be adjusted on an annual basis, in accordance with changes in the national (US City Average), Medical Care Consumer Price Index measuring urban consumers for the previous twelve (12) month period as published by the Bureau of Labor and Statistics. At least sixty (60) days prior to the fifth anniversary of this Agreement, the parties will review the terms set forth in this Section 12 to mutually assess and revise the pricing terms set forth herein. In the event that the parties agree to revise such pricing terms, Dendreon shall draft an amendment to this Agreement, to be signed by both parties, which shall set forth the revised pricing terms. In the event that the parties are unable to reach an agreement regarding a revision to the pricing terms, either party may terminate this Agreement in accordance with Section 11 above.

 

 

(c)

 

Collection Center will send Dendreon a monthly invoice that itemizes the previous month’s Services on a per procedure basis with the associated purchase order number and chain of identity number referenced to each leukapheresis procedure. Dendreon will pay each

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such invoice within thirty (30) days of receipt, except that Dendreon may withhold payment on any invoiced amounts that it disputes. In the event that Dendreon disputes any invoiced amount, it shall so notify Collection Center in writing, and the parties shall negotiate in good faith to resolve the matter as expeditiously as possible.

 

 

(d)

 

If applicable, Collection Center shall pay all federal, state, and local taxes that arise out of the Services hereunder.

 

 

(e)

 

If, for any reason attributable:

 

 

1.

 

solely to Collection Center, a leukapheresis procedure is cancelled after it begins or Collection Center cannot accommodate a patient for whom a leukapheresis procedure was previously scheduled with Dendreon’s Call Center, Collection Center shall receive no payment. Collection Center shall report any failure to commence or complete a leukapheresis procedure to Dendreon within one (1) hour of such failure.

 

 

2.

 

in part to Collection Center, a leukapheresis procedure is cancelled after it begins or Collection Center cannot accommodate a patient for whom a leukapheresis procedure was previously scheduled with Dendreon’s Call Center, Dendreon and Collection Center will work together in good faith through an agreed-upon resolution process to determine the appropriate payment to Collection Center. Collection Center shall report any failure to commence or complete a leukapheresis procedure to Dendreon within one (1) hour of such failure, and Dendreon and Collection Center shall agree upon the appropriate payment within thirty (30) days of such failure.

 

 

3.

 

in no part to Collection Center, a leukpaheresis procedure is canceled after it begins or if a procedure is cancelled with less than the agreed upon advance notice given per Exhibit H, Collection Center shall receive the cancelation fee payment per Exhibit H.

 

(f)

 

If Dendreon makes a payment to Collection Center and the parties mutually agree that the Collection Center was not entitled to such payment (or a portion thereof), Dendreon shall be entitled to deduct the amount of such payment from any amount due to Collection Center in the invoice immediately following the discovery of such overpayment:

          13. Representations and Warranties

 

(a)

 

Collection Center covenants, represents and warrants as follows:

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     (i) Collection Center has all necessary rights, powers, licenses, certifications, and authorities to enter into this Agreement.

     (ii) Collection Center’s performance under this Agreement does not conflict with or create a breach or a default of any law, order or a court or government agency, contract or other obligation with any third party.

     (iii) Collection Center shall at all times conform to FDA requirements and any other applicable state or federal requirements in performing under this Agreement.

     (iv) To prevent the introduction, transmission, or spread of communicable diseases by leukapheresis collections performed under this Agreement, Collection Center shall, at a minimum, use aseptic techniques for performing the leukapheresis collections.

 

(b)

 

Dendreon covenants, represents and warrants as follows:

     (v) Dendreon is a corporation organized under the laws of the state of Delaware and has all necessary rights, powers and authorities to enter into this Agreement.

     (vi) Dendreon’s performance under this Agreement does not conflict with or create a breach or a default of any law, order of a court or government agency, contract or other obligation with any third party.

          14. Independent Contractor

     The parties are independent contractors and will not act as an employee, agent, partner, joint venturer or co-venturer of the other. Neither party will enter into any agreement(s) or incur any obligations on behalf of the other, or commit the other party in any manner without such other party’s prior written consent.

          15. Use of Name

     Each party agrees not to use the name, emblem, logo or marks of the other party to this Agreement in any advertising, news release, or other publication or public statement, without the prior written consent of the other party.

          16. Indemnification

 

(a)

 

Indemnification by Collection Center: Collection Center agrees to defend, hold harmless and indemnify Dendreon, its directors, officers, employees and agents and its and its respective successors, heirs and assigns (the “Dendreon Indemnitees”) against any legal liability, claims, demands, actions, judgments, liability, loss, damage and expenses (including reasonable attorneys’ fees) (collectively, the “Liabilities”) with respect to bodily injury, death and property damage actually incurred by the Dendreon Indemnitees as a result any third

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party claims, demands or judgments, to the extent such liability arises out of (a) Collection Center Indemnitees’ alleged negligence in the conduct of the Services by Collection Center under this Agreement, including any failure to maintain the Chain of Identity of the leukapheresis collection product, and (b) any alleged unauthorized use, disclosure, infringement or misappropriation of any patent, trademark, copyright, or other intellectual property, right or trade secret of a third party by Collection Center; and (c) performance by the Collection Center Indemnitees of any obligations of Collection Center under this Agreement. However, in no instance shall Collection Center be responsible to the Dendreon Indemnitees for any Liabilities to the extent caused by any wrongful or negligent act or omission of the Dendreon Indemnitees individually or collectively.

 

 

(b)

 

Indemnification by Dendreon: Dendreon agrees to defend, hold harmless, and indemnify Collection Center, its governors, directors, officers, medical and professional staff, employees and agents and its successors, heirs and assigns (the “Collection Center Indemnitees”) against Liabilities with respect to bodily injury, death, and property damage actually incurred by Collection Center Indemnitees, or which may be asserted or claimed against the Collection Center Indemnitees, as a result of any third party claims, demands or judgments, to the extent such Liabilities arise out of (a) the alleged negligence of Dendreon, its directors, officers, employees, contractors, licensees, Affiliates or agents in connection with the design, production, manufacture, sale or use in commerce, or promotion of sipuleucel-T, (b) any use of sipuleucel-T by any person, (c) performance by the Dendreon Indemnitees of any obligations of Dendreon under this Agreement, and, (d) any alleged unauthorized use, disclosure, infringement or misappropriation of any patent, trademark, copyright, or other intellectual property, right or trade secret of a third party by Dendreon. However, in no instance shall Dendreon be responsible to the Collection Center Indemnitees for any Liabilities to the extent caused by any wrongful or negligent act or omission of the Collection Center Indemnitees individually or collectively.

 

 

(c)

 

Requirements for Indemnification: A party seeking indemnification under this Section 15 shall provide prompt written notice of circumstances that might reasonably be expected to give rise to a claim for indemnification and of the initiation of any action or proceeding that may reasonably lead to a claim for indemnification. Upon such notice and acknowledgement of the indemnifying party’s obligation to indemnify, the indemnifying party shall have the right to assume the defense and settlement of any such action or proceeding, provided that the indemnifying party shall not settle any action or proceeding with any admission of liability or wrongdoing by the indemnified party without such indemnified party’s prior written consent. No action or proceeding shall be settled without the prior written consent of the

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indemnifying party, which consent shall not be unreasonably withheld, and the indemnifying party shall not be responsible for any legal fees or other costs incurred other than as provided herein. The indemnified party shall cooperate fully with the indemnifying party and its legal representatives in the investigation and defense of any action or proceeding covered by this indemnification. The indemnified party shall have the right, but not the obligation, to be represented by counsel of its own selection and at its own expense in or with respect to any such action or other proceeding.

          17. Insurance

 

(a)

 

Mutual Insurance Requirements. Collection Center and Dendreon shall each maintain: (i) Commercial General Liability insurance, including contractual liability coverage, in an amount not less than $5,000,000 per occurrence and $5,000,000 annual aggregate for their respective work under this Agreement and naming the other Party’s indemnitees as additional insured as their interests may appear, and (ii) Property insurance providing coverage for their respective equipment supplies and premises during the Term of this Agreement. Any commercial insurance policies obtained by each party shall be with insurance carriers having an AM Best Rating of “A X” or higher. Insurance coverage limits may be met by a combination of primary and excess or umbrella policies. Each party will furnish to the other certificates of insurance as evidence of the insurance required in both the foregoing and the following paragraphs on or before the Effective Date and from time to time upon request. Each party’s liability under this Agreement shall not be limited to the amount of any insurance coverage that it maintains. In addition to the foregoing, each party shall maintain the following insurance coverages:

 

 

(b)

 

Additional Collection Center Insurance Requirements: Collection Center shall maintain Professional Liability insurance that is no less than $1 million per occurrence and $3 million aggregate and such insurance shall remain in force for at least three (3) years following the end of the Term or a Subsequent Term.

 

 

(c)

 

Additional Dendreon Insurance Requirements: (1) Products/Clinical Trials Liability insurance applicable to the manufacture of any clinical trial product of Dendreon that uses the leukapheresis collections in an amount not less than $5,000,000 per occurrence and the aggregate and such Products/Clinical Trials Liability insurance shall; (i) name the Collection Center Indemnitees as specified in this Agreement as additional insureds; (ii) remain in effect for not less than 3 years after cessation of clinical trials related to this Agreement; (2) As of the date of any sale or commercial use of sipuleucel-T after market approval of the product, Products Liability insurance in an amount not less than $10,000,000 per occurrence and such Products Liability insurance shall, (i) name the Collection Center Indemnitees as additional

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insureds; and (ii) such Products Liability insurance shall be maintained in force for not less than five years after the last date of sale of sipuleucel-T. With respect to insurance coverage requirements relative to clause (c)(1), Dendreon intends to seek a clarifying endorsement from its insurance provider stating that such Products/Clinical Trials Liability insurance does not exclude from coverage claims in which the theory of the claim is deficient, negligent or inadequate design of the product or clinical trial, or other related professional (Errors & Omissions) exposure.

          18. Documentation of Compliance

     Upon Dendreon’s request no more than once during any twelve (12) month period, absent cause, Collection Center shall provide Dendreon with a copy of the Collection Center’s license and an attestation that all Collection Center personnel performing the Services are properly licensed as required by the Legal Requirements.

          19. Confidentiality

 

(a)

 

Confidential Information. It is anticipated that the parties will exchange Confidential Information pursuant to the terms of this Agreement.

 

 

(b)

 

Receiving Party’s Limited Use and Nondisclosure of Confidential Information. Each of Dendreon, Collection Center and ARC shall use Confidential Information of the other solely for the purpose of complying with the terms of this Agreement. All Confidential Information shall remain the property of the disclosing party and shall be kept confidential by the receiving party and not disclosed to others except with the disclosing party’s prior written consent. The receiving party will maintain Confidential Information in strict confidence and shall treat it with not less than the degree of care with which the receiving party would treat the receiving party’s own Confidential Information.

 

 

(c)

 

Exceptions. The confidentiality obligations shall not apply to information that is subject to one or more of the following circumstances:

(i) the information is now, or hereafter becomes, through no act or failure to act on the part of the receiving party, generally known the public;

(ii) the information is furnished to the receiving party by a third party that the receiving party reasonably believes is not prohibited from disclosing such information by a contractual, legal or fiduciary obligation;

(iii) the information is properly in the possession of the receiving party prior to its disclosure pursuant to this Agreement, as evidenced by receiving party’s written records;(iv) the information is independently d


 
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