Common use of Kaiser Clause in Contracts

Kaiser. Borrower has received a letter, dated January 10, 2020, from outside counsel to KP Select, LLC, one of the Kaiser Permanent family of companies (“Kaiser”), demanding that Borrower provide reimbursement to Kaiser in the amount of $4.1 million dollars for costs allegedly incurred by Kaiser for treating patients whose AFX Endovascular AAA Systems were subject to the July 2018 recall notice. Borrower vigorously disputes this payment demand. Since it is presently not possible to determine the outcome of any future discussions with Kaiser regarding this matter, and whether litigation will ensue, or the outcomes associated with potential litigation, no provision has been made in Borrower’s financial statements for the ultimate resolution.