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The Termination Of Joint Venture Agreement is a crucial document used when parties to a joint venture in Saudi Arabia mutually agree to end their business relationship or when termination becomes necessary due to other circumstances. This document is essential in the Saudi Arabian business environment, where joint ventures are common vehicles for foreign investment and local business partnerships. The agreement must comply with Saudi Companies Law, Foreign Investment Law, and Sharia principles, while addressing key aspects such as asset distribution, liability settlement, employee transfers, and regulatory obligations. It provides a structured approach to unwinding complex business relationships while protecting all parties' interests and ensuring proper documentation for regulatory authorities. The document typically becomes relevant when the joint venture's objectives have been achieved, when partners wish to pursue different strategic directions, or when the venture is no longer commercially viable.

1. Parties: Identification of all parties to the termination agreement, including their full legal names, addresses, and registration details

2. Background: Recitals detailing the original joint venture agreement, its date, purpose, and the mutual decision to terminate

3. Definitions: Key terms used in the agreement, including references to the original joint venture agreement terms

4. Termination Date: Specific date when the joint venture will terminate and cease operations

5. Mutual Agreement to Terminate: Express agreement of all parties to terminate the joint venture

6. Process of Termination: Step-by-step procedure for winding down the joint venture operations

7. Distribution of Assets: Detailed provisions for the division and transfer of joint venture assets

8. Settlement of Liabilities: Provisions for handling outstanding debts, obligations, and liabilities

9. Intellectual Property Rights: Allocation and future use of IP developed during the joint venture

10. Confidentiality Obligations: Ongoing obligations regarding confidential information post-termination

11. Employee Matters: Handling of employment contracts and related obligations

12. Release and Discharge: Mutual release of claims between parties, subject to the terms of the agreement

13. Governing Law: Confirmation of Saudi law as governing law and Sharia compliance

14. Dispute Resolution: Mechanism for resolving disputes arising from the termination

15. Notices: Process for formal communications between parties during the termination process

16. Execution: Signature blocks and execution requirements