Under the agreement, iMedica will grant Misys a license for the iMedica PRM 2008 practice management (PM) and electronic health record (EHR) application which Misys can use to sell and support its customers.
The agreement also states that iMedica will provide a license to Misys for the new version of the iMedica software source code, PRM 2008 SP1, subject to acceptance by Misys. Misys will then have no further access to any subsequent versions of the iMedica partner relationship management application.
iMedica and Misys will continue to develop their products independently, and neither will have any rights to the other’s future source code or products or any obligation to share future source code or products. Once the consideration outlined below is paid, Misys will not owe any further royalty payments to iMedica.
In consideration for entering into the agreement, iMedica will receive up to $12 million in cash over the coming months contingent upon delivery by iMedica and acceptance by Misys of the source code and services and all equity in iMedica held by Misys, and the remaining balance for the outstanding prepaid royalties related to the previous original equipment manufacturer agreement.