Common use of Epidemic Failure Warranty Clause in Contracts

Epidemic Failure Warranty. Notwithstanding anything else to the contrary herein, if a Product demonstrates an Epidemic Failure at any time during the Term, A-S will, in addition to the remedies provided under Section 6.2, reimburse Akorn for direct and incidental and consequential costs, as defined in Section 2715 of the California Commercial Code, associated with the Epidemic Failure, including without limitation labor costs associated with implementation of a recovery plan under this Section. Akorn will notify A-S whenever an Epidemic Failure is identified or suspected and work with A-S to develop a recovery plan, which may include a preventative action plan if appropriate under the circumstances. The recovery plan actually implemented by Akorn is in Akorn’s sole discretion; provided, however that (i) Akorn and A-S will work together to minimize costs associated with Akorn’s recovery plan as much as possible without compromising Akorn’s ability to aggressively respond to its customer’s needs; and (ii) A-S will reimburse Akorn for costs incurred by Akorn in implementing that portion of the recovery plan associated with the Epidemic Failure.