SETTLEMENT AGREEMENT AND MUTUAL RELEASE
THIS SETTLEMENT AGREEMENT AND MUTUAL RELEASE (the “Agreement”), is entered into
as of October 28, 2007 (the “Effective Date”), by and among DUSA PHARMACEUTICALS, INC., a
corporation organized and existing under the laws of the State of New Jersey with a principal place of business
located at 25 Upton Drive, Wilmington, Massachusetts, together with its wholly-owned subsidiary SIRIUS
LABORATORIES, INC., on the one hand, and RIVER’S EDGE PHARMACEUTICALS, LLC, a limited
liability company organized and existing under the laws of the State of Georgia with a principal place of business
located at 5400 Laurel Springs Parkway, Building 504, Suwanee, Georgia on the other.
A. As used herein, the term “DUSA” shall mean and collectively refer to DUSA Pharmaceuticals, Inc. and
Sirius Laboratories, Inc., together with each of their respective successors, assigns, parents, and subsidiaries or
B. As used herein, the term “River’s Edge” shall mean and refer to River’s Edge Pharmaceuticals, LLC,
together with all of its successors, assigns, parents, subsidiaries, or affiliated companies.
C. DUSA and River’s Edge are sometimes hereafter referred to individually as a “Party” and collectively as
WHEREAS , DUSA is the owner, by virtue of its acquisition of Sirius Laboratories, Inc., of U.S. Patent
No. 6,979,468 entitled “Oral Composition and Method for the Treatment of Inflammatory Cutaneous
Disorders” (the “‘468 Patent”), under which DUSA has manufactured, marketed, distributed, and sold its
Nicomide ® product; and
WHEREAS, River’s Edge has manufactured, marketed, distributed, and sold a product labeled as NIC 750
that competes with DUSA’s Nicomide ® product; and
WHEREAS , on April 20, 2006, DUSA filed an action in the United States District Court, District of New
Jersey against River’s Edge entitled DUSA Pharmaceuticals, Inc., et al. v.