Apr 11 2007
The parties have entered into a Settlement Agreement and a Manufacture and Supply Agreement to resolve both lawsuits and all claims between the parties.
The terms of these agreements require the dismissal of all pending legal actions between the parties, a cross licensing of various patents between the two companies, the payment of $2.5 million by Synergetics to Iridex on April 16, 2007 and $800,000 annually over the next five years. Under the Manufacture and Supply Agreement, Synergetics obtained the right to manufacture and supply various laser disposables, which could result in approximately $3.0 million in revenue for Synergetics over the next five years.
"I am pleased with the resolution of our dispute with Iridex," said Gregg D. Scheller, Chief Executive Officer and President of Synergetics. "The resolution of this dispute allows us to focus our energies on our business and move forward with an industry partner. This agreement allows Synergetics to continue marketing its proprietary and patent-pending, new two-connector system under a fully-paid, irrevocable Iridex license. The elimination of a significant portion of our legal fees associated with going to trial in the current adapter case and our pending directional laser probe case, in addition to gross profit we will derive from manufacturing probes for Iridex should more than offset our cross licensing fees in this settlement. This settlement should enable both companies to focus their energies on market opportunities in this competitive environment."
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