Exit from mitosis must not occur prior to partitioning of chromosomes betwe
en daughter cells. We find that the GTP binding protein Tem1, a regulator o
f mitotic exit, is present on the spindle pole body that migrates into the
bud during S phase and mitosis. Tem1's exchange factor, Lte1, localizes to
the bud. Thus, Tem1 and Lte1 are present in the same cellular compartment (
the bud) only after the nucleus enters the bud during nuclear division. We
also find that the presence of Tem1 and Ltel in the bud is required for mit
otic exit. Our results suggest that the spatial segregation of Tem1 and Lte
l ensures that exit from mitosis only occurs after the genetic material is
partitioned between mother and daughter cell.