Cash Pooling Agreement Sample Clauses
A Cash Pooling Agreement is a contractual arrangement that allows multiple accounts, often belonging to different subsidiaries within a corporate group, to be managed collectively for the purpose of optimizing liquidity. Under this agreement, the balances of participating accounts are aggregated, enabling surplus funds from one account to offset deficits in another, which can reduce overall borrowing costs and maximize interest earnings. This clause is essential for centralizing cash management, improving financial efficiency, and ensuring that the group as a whole makes the best use of its available cash resources.
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Cash Pooling Agreement. Deutsche Bank AG, Seller, EPCOS Portugal and certain other Seller’s Affiliates entered into a cash pooling agreement dated August 24, 2001 with respect to Euro accounts and certain foreign currency accounts (the “Cash Pooling Agreement”). The balances of each of these accounts to which EPCOS Portugal is a party as of two (2) Business Day before the Signing Date and the EPCOS Portugal Cash Pooling Balance are shown in Exhibit 2.5. The “EPCOS Portugal Cash Pooling Balance” means the aggregate balance of all accounts listed in Exhibit 2.5 comprising all liabilities and receivables (including any accrued and unpaid interest thereon) of EPCOS Portugal under the Cash Pooling Agreement. Seller shall procure that EPCOS Portugal terminates the Cash Pooling Agreement with effect as of one (1) Business Day prior to the scheduled Closing Date and shall deliver to Purchaser II Seller’s good faith estimate of the EPCOS Portugal Cash Pooling Balance as of such date. The balances of the accounts not denominated in Euro shall for purposes of calculating the EPCOS Portugal Cash Pooling Balance be translated into Euro in accordance with Section 22.13, provided that such translation shall be made for all such accounts with the foreign currency exchange rate prevailing on such date. In case such EPCOS Portugal Cash Pooling Balance is owed by EPCOS Portugal to Seller, Purchaser II (or EPCOS Portugal with funds provided by Purchaser II) shall pay the EPCOS Portugal Cash Pooling Balance to Seller on the Closing Date. In case such EPCOS Portugal Cash Pooling Balance is owed to EPCOS Portugal by Seller, Seller shall pay the EPCOS Portugal Cash Pooling Balance to EPCOS Portugal on the Closing Date.
Cash Pooling Agreement. No Obligor shall (and the Company shall procure (in accordance with article 1120 of the French Code civil (promesse de porte-fort)) that none of its Subsidiaries will) enter into cash pooling transaction, cash management or other netting agreement except if all other parties to such agreements are Flowserve Group Members or banks (établissements de crédit).