The Transition Services Agreement (TSA) is a crucial document used in corporate transactions where one entity needs to provide temporary support services to another, typically following a business separation, acquisition, or divestiture. This agreement is particularly important in the Saudi Arabian context, where it must align with both modern business practices and Islamic law principles. It outlines detailed service arrangements, including scope, duration, service levels, costs, and operational responsibilities, while ensuring compliance with Saudi regulations and Sharia requirements. The TSA serves as a bridge to maintain business continuity during organizational changes, providing a structured framework for service delivery until the recipient entity can operate independently or establish alternative arrangements.
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1. Parties: Identification of the service provider and recipient entities
2. Background: Context of the transition and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Services: Detailed description of transition services to be provided
5. Term and Termination: Duration of services and termination provisions
6. Service Levels: Performance standards and metrics for service delivery
7. Charges and Payment: Fee structure, payment terms, and invoicing procedures
8. Governance: Management structure and oversight of services
9. Data Protection and Security: Measures for protecting confidential information and personal data
10. Liability and Indemnification: Allocation of risks and responsibilities between parties
11. Force Majeure: Provisions for unforeseen circumstances affecting service delivery
12. Dispute Resolution: Procedures for resolving disagreements under Saudi law
13. General Provisions: Standard legal clauses including notices, amendments, and governing law
1. Migration Support: Additional provisions for knowledge transfer and migration assistance, used when permanent transfer of services is planned
2. Third Party Contracts: Provisions regarding management of third-party contracts, included when services involve external vendors
3. Employee Matters: Provisions regarding personnel transfers or secondments, included when staff transitions are involved
4. Intellectual Property Rights: Special provisions for IP ownership and licenses, used when services involve significant IP
5. Business Continuity: Disaster recovery and business continuity provisions, included for critical services
6. Exit Management: Detailed exit procedures, included for complex service arrangements
7. Compliance with Islamic Finance: Specific provisions ensuring Sharia compliance, included when financial services are involved
1. Schedule 1 - Services Description: Detailed specification of each service to be provided
2. Schedule 2 - Service Levels: Detailed service level agreements and KPIs
3. Schedule 3 - Charges: Detailed pricing structure and payment terms
4. Schedule 4 - Governance Procedures: Detailed governance framework and escalation procedures
5. Schedule 5 - Key Personnel: List of key personnel from both parties involved in service delivery
6. Schedule 6 - Technical Requirements: Technical specifications and requirements for service delivery
7. Schedule 7 - Data Processing Agreement: Detailed data protection and processing requirements
8. Appendix A - Contact Details: Contact information for key personnel and authorized representatives
9. Appendix B - Form of Reports: Ƶ for required service reports and documentation
Authors
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Manufacturing
Technology
Healthcare
Energy & Utilities
Telecommunications
Real Estate
Retail & Consumer
Industrial
Professional Services
Transportation & Logistics
Mining & Natural Resources
Relevant Teams
Legal
Operations
Finance
Information Technology
Human Resources
Procurement
Compliance
Risk Management
Corporate Development
Project Management
Commercial
Strategy
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Head of Legal
General Counsel
Corporate Development Director
Integration Manager
Transition Manager
Operations Director
Commercial Director
Project Manager
Legal Counsel
Compliance Officer
Risk Manager
Finance Director
IT Director
HR Director
Procurement Manager
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