Sample Template: TSA Master Document

Sample Template: TSA Master Document

A TSA Master Document should be structured so that a reader can navigate quickly from high-level commercial terms to granular service details. Below is an editable outline you can drop into Word (or your contract-lifecycle platform). Each major article is introduced by a short paragraph that explains the purpose of the bullets that follow.

1 Cover Sheet

Why it matters: The cover sheet ensures both legal teams and regulators can immediately confirm deal identity, effective date, and signatories.

  • Document title, effective date, and TSA reference number
  • Full legal names and addresses of “Provider” (Parent) and “Recipient” (NewCo)
  • Cross-reference to the underlying SPA, APA, or stock-sale agreement
  • Space for authorised signatures and corporate seals

2 Preamble

Why it matters: A concise preamble provides context for auditors and courts if any dispute arises about intent.

  • One-paragraph description of the divestiture and need for interim services
  • Statement that services are temporary and will sunset on predefined dates
  • Confirmation that services do not create a de facto joint venture or employment relationship

3 Definitions

Why it matters: Clear definitions prevent “scope creep” and billing disputes.

  • “Services,” “Service Schedule,” “Sunset Date,” “SLA,” “Change Request,” “Exit Certificate,” etc.
  • Reference to any capitalised terms imported from the SPA/APA

4 Scope of Services (Summary Table)

Why it matters: A summary table allows executives to see the full service menu on one page before diving into individual schedules.

  • Service name
  • Functional area (IT, Finance, HR, etc.)
  • Sunset date
  • Pricing basis (cost-plus, unit rate, or fixed fee)
  • Named exit owner

5 Term and Sunset Provisions

Why it matters: Hard end-dates and fee escalators create urgency to exit services on time.

  • Start date (legal close) and final sunset date for each service
  • Automatic monthly fee escalator (e.g., +10 %/month) after sunset date
  • Extension only by written amendment signed by both CFOs

6 Pricing and Payment Terms
Why it matters: Transparent pricing reduces true-up arguments and transfer-pricing risk.

  • Pricing model (cost-plus X %, unit rate, or fixed fee)
  • Invoicing frequency (e.g., monthly in arrears) and currency
  • True-up method for volume variances and audit-trail requirements
  • Responsibility for VAT, GST, or withholding taxes

7 Service-Level Agreement Framework

Why it matters: SLAs tie cost to performance and give the carve-out leverage if quality slips.

  • Uptime, response-time, and accuracy targets for each service type
  • Credit/penalty schedule with monthly cap (e.g., 15 % of fee)
  • Reporting cadence and KPI definitions

8 Data-Security & Privacy Obligations

Why it matters: Most TSA breaches involve data exposure; explicit controls protect both parties.

  • Encryption standards (in transit and at rest)
  • Access-control requirements (least privilege, MFA)
  • Breach-notification window (e.g., within 24 hours)
  • Data-return or destruction requirements at exit

9 Governance & Reporting

Why it matters: Clear roles and calendars keep minor issues from snowballing into cost overruns.

  • Parent Service Owner and Recipient Service Owner responsibilities
  • TSA Review Board cadence (monthly) and agenda
  • Escalation ladder and decision thresholds
  • Standard dashboard template and delivery dates

10 Change-Control Procedure

Why it matters: Preventing “scope creep” preserves budget and timeline.

  • Change-request form content (scope, timeline, cost impact, risk)
  • Impact-assessment window (e.g., five business days)
  • Approval matrix tied to cost or term variance thresholds
  • Contract-amendment process and version control

11 Liability, Indemnity, and Audit Rights

Why it matters: Sets financial risk boundaries and ensures compliance proof.

  • Aggregate liability cap (e.g., total annual fees) and exclusions (fraud, data breaches)
  • Mutual indemnities for third-party claims arising from gross negligence
  • Audit rights—notice period, frequency, and cost allocation

12 Termination and Exit Certificates

Why it matters: Defines the mechanics for shutting off services and stopping billing.

  • Termination for convenience (notice period, exit-fee schedule)
  • Termination for cause (material breach, uncured in X days)
  • Exit-readiness checklist requirements
  • Dual signature on Exit Certificate and data-destruction attestation

13 Dispute-Resolution & Governing Law

Why it matters: Pre-sets the escalation route, avoiding drawn-out litigation.

  • Good-faith negotiation window → Executive review → Mediation → Binding arbitration
  • Governing law and venue (e.g., New York or London Court of International Arbitration)

Appendices
Why they matter: Detail lives here so the main body stays readable.

  • Appendix A: Service Schedules — One per service with scope, SLAs, pricing tables, exit checklist
  • Appendix B: Governance Charter — Contact list, meeting calendars, dashboard formats
  • Appendix C: Change-Request Form — Editable Word form or PDF
  • Appendix D: Data-Flow Diagrams — Visuals for any data shared between Parent and NewCo

Populate each section with deal-specific information, route for legal and finance sign-off, and you have an audit-ready TSA Master Document.

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