A Transition Services Agreement (TSA) is commonly used in corporate transactions where one party needs to provide temporary support services to another party post-closing. Under Singapore law, this document defines critical aspects such as service scope, standards, duration, pricing, and termination conditions. It's particularly vital in complex transactions where immediate separation of all business functions is not feasible, requiring careful consideration of Singapore's regulatory requirements, including data protection, employment laws, and industry-specific regulations.
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Key Requirements PROMPT example:
Transition Services Agreement
"Need a Transition Services Agreement to cover IT infrastructure and HR support services for 12 months following our acquisition of ABC Tech Pte Ltd, with the deal expected to close in March 2025 and requiring Singapore law compliance."
1. Parties: Identifies and defines the service provider and recipient
2. Background/Recitals: Context of the agreement, typically relating to a preceding transaction
3. Definitions: Key terms used throughout the agreement
4. Services: Detailed description of transition services to be provided
5. Service Standards: Quality and performance standards for service delivery
6. Duration and Term: Period of service provision and extension options
7. Fees and Payment: Pricing, payment terms, and invoicing procedures
8. Termination: Circumstances and process for ending the agreement
1. Employee Matters: Terms relating to seconded employees or staff transfers - use when employees are being transferred or seconded
2. Data Protection: PDPA compliance provisions - use when personal data is being processed
3. Intellectual Property: IP ownership and licensing provisions - use when IP rights are involved in service delivery
4. Migration Assistance: Terms for helping transition to alternative service providers - use when complex service migration is anticipated
1. Service Description Schedule: Detailed breakdown of each service to be provided
2. Service Levels Schedule: Specific performance metrics and KPIs
3. Pricing Schedule: Detailed fee structure and calculations
4. Personnel Schedule: Key personnel and their roles
5. Exit Plan: Detailed procedures for service termination and transition
6. Data Processing Schedule: Details of data handling procedures and compliance requirements
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