Under the terms of the agreement, River’s Edge acknowledges the validity and enforceability of the Nicomide patent. River’s Edge has agreed to make a lump-sum settlement payment to Dusa for damages and will permanently cease the manufacture, distribution and sale of its nicotinamide product, NIC 750. River’s Edge will immediately notify the drug databases that NIC 750 is no longer available.
Also, River’s Edge will withdraw and cease participating in the re-examination of Nicomide’s patent by the United States Patent and Trademark Office, and will consent to the return to Dusa of the entire bond, with all accrued interest, that is currently being held by the US District Court, New Jersey.
As part of the settlement, Dusa has granted a perpetual exclusive license to River’s Edge to manufacture and sell four of its products from the Avar line, including Avar cleanser, Avar gel, Avar E-emollient cream and Avar E-green which are non-strategic for Dusa in exchange for a royalty, including a guaranteed minimum annual royalty, for three years. Dusa will transfer its existing inventory of these products to River’s Edge so that the supply of the products will not be interrupted.