RE: Free £2 million reservation fee?16 Mar 2023 14:49
S - please see below extract from the Vaxart\Hvivo contract:
5. Challenge Study Slot Reservation.
5.1 Reservation. Vaxart wishes to reserve space in the Quarantine Facility for the quarantine phase of the Challenge Study (the “Reservation”).
The Reservation will commence on the Quarantine Start Date (as defined below) (the “Quarantine Bed Days”). For purposes of this Agreement, “Quarantine Start Date” means the date on which the quarantine phase of the Challenge Study is expected to commence. Vaxart shall select a date as the Quarantine Start Date and provide written notice thereof to hVIVO on or before [***]. Unless otherwise agreed by hVIVO in writing, the Quarantine Start Date shall be no earlier than [***] and no later than [***].
5.2 Changes to the Reservation. Vaxart may change the Quarantine Start Date, reduce the number of Quarantine Bed Days or cancel the Reservation, subject to the provisions of this Agreement. Upon written notice to hVIVO, Vaxart may change the Quarantine Start Date, without penalty, (a) to a date that is up to 30 days before or after the originally scheduled Quarantine Start Date or (b) as reasonably necessary to meet the requirements of any applicable regulatory authority or Ethics Committee (EC) (any such change, a “Permitted Change”). In the event Vaxart should, for any reason, (i) change the Quarantine Start Date, other than a Permitted Change, and reschedule the Challenge Study to commence within one year after the original Quarantine Start Date (a “Postponement”); or (ii) cancel the Reservation (“Cancellation”), then, subject to Section 5.3:
5.2.1Cost Reimbursement. Vaxart shall reimburse hVIVO for all costs and/or expenses incurred by hVIVO as a direct result of the Postponement, Scope Reduction or Cancellation. In addition, Vaxart shall pay any applicable charges described in Sections 5.2.2 herein.
5.2.2(a) Cancellation. In the event of a Cancellation, a cancellation fee equating to value of the cancelled Quarantine Bed Days shall become due as follows:
Period between Notice of Cancellation and Reserved Quarantine Start
Date
Amount of Cancellation Fee
Less than 5 months [***]
More than 5 months but less than 12 months [***]
More than 12 months [***]
hVIVO shall retain the appropriate proportion of the Booking Fee as payment of the cancellation fee.
Looks to me like Vaxart 'wishes to reserve space in the Quarantine Facility for the quarantine phase of the Challenge Study'.
On that basis, a postponement fee should apply (unless they rearrange the start date within 30 days of the original date. In which case, the full contract is back on track).
I think this contract covers Hvivo very well in any eventuality.
IMHO
NB Apologies for the lengthy extract. If you want to see the original text from the contract, I've posted on the T*l*gram discussion forum(*=e)
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