The Transition Services Agreement (TSA) is a crucial document in UAE corporate transactions, designed to ensure business continuity during ownership transitions. It is primarily used following mergers, acquisitions, or divestitures where one party needs to temporarily provide services to another to maintain operational stability. The agreement must comply with UAE legal requirements, including the Civil Code (Federal Law No. 5 of 1985) and Commercial Transactions Law (Federal Law No. 18 of 1993). TSAs typically outline detailed service descriptions, performance standards, costs, duration, and transition plans, ensuring smooth operational handover while maintaining compliance with UAE regulatory requirements. This document is essential for managing post-transaction relationships and ensuring both parties understand their rights, obligations, and the temporary nature of the arrangement.
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1. Parties: Identification of the service provider and recipient entities
2. Background: Context of the agreement, typically referencing the main transaction necessitating the TSA
3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation
4. Services: Overview of services to be provided, referencing detailed service descriptions in schedules
5. Service Standards: Required quality levels and performance standards for service delivery
6. Term and Termination: Duration of services, extension options, and termination rights
7. Charges and Payment: Service fees, payment terms, and any cost adjustment mechanisms
8. Governance and Service Management: Service management structure, reporting, and escalation procedures
9. Confidentiality: Protection of confidential information exchanged during service provision
10. Data Protection and Security: Obligations regarding data handling, security measures, and compliance
11. Liability and Indemnification: Allocation of risks and responsibilities between parties
12. Force Majeure: Provisions for handling events beyond parties' reasonable control
13. Dispute Resolution: Procedures for resolving disputes between parties
14. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law
1. Personnel and Employment: Required when services involve dedicated staff or employee transfers
2. Intellectual Property Rights: Needed when services involve creation or use of intellectual property
3. Insurance: Important when services involve significant operational risks
4. Business Continuity: Required for critical services requiring disaster recovery planning
5. Third Party Rights: Needed when services involve or impact third party contracts
6. Regulatory Compliance: Required for regulated industries or services
7. Exit Management: Detailed exit procedures for complex service transitions
8. Anti-Bribery and Corruption: Important for cross-border services or high-risk jurisdictions
1. Service Descriptions: Detailed specifications of each service to be provided
2. Service Levels and KPIs: Specific performance metrics and measurement criteria
3. Charges and Pricing: Detailed fee structure, including any variable components
4. Governance Procedures: Detailed procedures for service management and escalation
5. Technical Requirements: Technical specifications and requirements for service delivery
6. Exit Plan: Detailed procedures for service transition at termination
7. Data Processing Agreement: Detailed terms for handling personal data if applicable
8. Contact Details: Key personnel and contact information for both parties
9. Form of Reports: Ƶ for required service reports and documentation
Authors
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Technology
Manufacturing
Healthcare
Energy
Telecommunications
Real Estate
Retail
Professional Services
Logistics
Hospitality
Construction
Relevant Teams
Legal
Operations
Finance
Mergers & Acquisitions
Corporate Development
Risk & Compliance
Project Management
Information Technology
Human Resources
Commercial
Service Delivery
Business Integration
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
General Counsel
Head of Legal
Corporate Lawyer
Mergers & Acquisitions Director
Integration Manager
Operations Director
Transition Manager
Project Manager
Commercial Director
Risk Manager
Compliance Officer
Business Development Director
Service Delivery Manager
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