Research Industries Corp., the Salt Lake-based company specializing in developing and manufacturing hospital disposable products for open-heart surgery, nerve repair devices and specialty pharmaceuticals, has signed a letter of intent with an unaffiliated party for a private placement of Research shares.

Company officials said the letter of intent contemplates the other party will purchase 540,000 share of Research common stock, an amount equivalent to about 9.9 percent of outstanding shares after given effect to the transaction, at $5.70 per share.It also stipulates the purchaser will enter into a standstill agreement limiting its acquisition, voting and disposition of Research shares for four years. Also, the document says the purchaser is entitled to representation on Research's board as long as it holds more than 7 percent of the company's outstanding stock.

The transaction is subject to negotiation and execution of certain documents, company officials said.