Under the proposed agreement, RecoverCare will purchase products from Ivivi, who in return will be responsible for providing initial training and ongoing technical and warranty support.
In addition, Ivivi will receive a specified revenue share based on RecoverCare’s gross monthly rental fees, subject to certain minimums. RecoverCare will also service current Ivivi long term acute care hospitals accounts for which Ivivi will receive a specified revenue share.
The proposed agreement is expected to have a three-year initial term. The letter of intent is non-binding and is subject to negotiation and execution of a definitive agreement between Ivivi and RecoverCare. A formal launch is expected to follow within 90 days of finalization of an agreement between the parties.