Common use of Directed Sourcing Clause in Contracts

Directed Sourcing. Fallbrook shall retain the right to require TSI to source and purchase certain components from suppliers designated by Fallbrook at its sole discretion. Notwithstanding the foregoing, TSI shall manage such designated suppliers. On rare occasions and on a case by case basis, if the parties mutually agree that the indirect costs for TSI to manage a supplier is deemed to be unreasonable, then the parties shall agree in writing on a supplier development and management program that would identify the TSI and Fallbrook responsibilities in managing that Directed Source supplier. .