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Partnership Exit Agreement
"I need a Partnership Exit Agreement under Saudi law for a three-partner professional services firm where one founding partner is retiring as of March 1, 2025, with a six-month transition period and ongoing consulting arrangements."
1. Parties: Identification of all parties involved, including the exiting partner(s) and remaining partner(s)
2. Background: History of the partnership, reason for exit, and current partnership structure
3. Definitions: Key terms used throughout the agreement
4. Exit Date and Process: Specific date and detailed process for the partner's exit
5. Financial Settlement: Terms of financial settlement, including valuation method and payment terms
6. Transfer of Ownership: Process and terms for transferring the exiting partner's ownership interest
7. Release of Liabilities: Mutual release of future liabilities and ongoing obligations
8. Confidentiality: Ongoing confidentiality obligations post-exit
9. Non-Compete and Non-Solicitation: Restrictions on competitive activities and client/employee solicitation
10. Representations and Warranties: Standard representations about authority, ownership, and compliance
11. Tax and Regulatory Matters: Handling of tax liabilities and regulatory compliance requirements
12. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction
13. Dispute Resolution: Process for resolving any disputes related to the exit
14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Intellectual Property Rights: Required when IP ownership needs to be addressed in the exit
2. Employee Matters: Needed when the exit affects employment relationships or responsibilities
3. Ongoing Projects: Include when there are incomplete projects requiring transition arrangements
4. Client Transition: Required when specific client relationships need to be addressed
5. Post-Exit Services: Include when the exiting partner will provide transition services
6. Insurance and Indemnification: Required when specific risks need to be allocated post-exit
7. Brand and Name Usage: Include when the partnership name includes the exiting partner's name
8. Related Party Agreements: Needed when there are additional agreements requiring modification
1. Schedule 1: Partnership Interest Valuation: Detailed calculation of the exiting partner's interest value
2. Schedule 2: Payment Schedule: Detailed timeline and terms for financial settlement
3. Schedule 3: Assets Transfer List: Inventory of assets being transferred or retained
4. Schedule 4: Ongoing Contracts: List of contracts affecting the exit arrangement
5. Schedule 5: Completion Actions: Checklist of actions required to complete the exit
6. Appendix A: Partnership Agreement: Copy of the original partnership agreement
7. Appendix B: Financial Statements: Relevant financial statements used for valuation
8. Appendix C: Regulatory Filings: Required forms and filings for Saudi authorities
Authors
Professional Services
Retail
Manufacturing
Construction
Real Estate
Technology
Healthcare
Consulting
Trading
Hospitality
Education
Financial Services
Transportation
Energy
Agriculture
Legal
Finance
Compliance
Corporate Governance
Risk Management
Operations
Business Development
Executive Leadership
Board of Directors
Partnership Committee
Corporate Affairs
Treasury
Tax
Managing Partner
CEO
CFO
Legal Counsel
Corporate Secretary
Business Development Director
Finance Manager
Compliance Officer
Risk Manager
Operations Director
Managing Director
Board Member
Partnership Committee Member
Senior Partner
Executive Director
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