Funding Agreement Template

This Funding Agreement ("Agreement") is made and entered into as of [Date], by and between:

Company A, a [jurisdiction] corporation with its principal place of business at [address] ("Holding Company" or "Company A"),

and

Company B, a [jurisdiction] corporation with its principal place of business at [address], fully owned by Company A ("Trading Company" or "Company B").

WHEREAS, Company A is the holding company of Company B, and

WHEREAS, Company B requires funding for its business operations, and

WHEREAS, Company A agrees to provide the necessary funding to Company B under the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties hereto agree as follows:

1. Funding Amount

Company A agrees to provide funding to Company B in the amount of €[amount] ("Funding Amount").

2. Purpose of Funding

The Funding Amount shall be used by Company B solely for the purpose of [specific purpose, e.g., working capital, expansion, specific projects, etc.].

3. Disbursement of Funds

The Funding Amount shall be disbursed by Company A to Company B as follows:

• Initial disbursement of €[initial amount] on [date].
• Subsequent disbursements of €[subsequent amounts] on [dates/conditions for subsequent disbursements].

4. Repayment Terms

Company B agrees to repay the Funding Amount to Company A under the following terms:

• Repayment Schedule: [e.g., monthly, quarterly, annually]
• Interest Rate: [e.g., X% per annum, if applicable]
• Commencement Date: [date when repayments will start]
• Maturity Date: [final repayment date]

5. Conditions Precedent

The obligation of Company A to disburse the Funding Amount is subject to the following conditions:

• Company B shall provide all necessary documentation as requested by Company A.
• Company B shall comply with all applicable laws and regulations.

6. Representations and Warranties

Both parties represent and warrant that:

• They have the authority to enter into this Agreement.
• The execution and performance of this Agreement will not violate any agreement to which either party is a party.

7. Covenants

Company B covenants that it will:

• Use the Funding Amount solely for the purposes specified in this Agreement.
• Maintain accurate and complete records of the use of the funds and provide such records to Company A upon request.

8. Default

In the event of default by Company B, including failure to make any repayment when due, Company A may declare the entire outstanding Funding Amount, including accrued interest, immediately due and payable.

9. Miscellaneous

• Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [jurisdiction].
• Amendments: Any amendments to this Agreement must be in writing and signed by both parties.
• Entire Agreement: This Agreement constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.

10. Signatures

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

[Authorized Signatory]
Company A (Holding Company)

[Authorized Signatory]
Company B (Trading Company)

Contact Information:

Company A:
[Name]
[Title]
[Email]
[Phone]

Company B:
[Name]
[Title]
[Email]
[Phone]

This template provides a basic structure for a funding agreement between a holding company and its fully-owned trading company. Be sure to customize the template to fit the specific details and legal requirements of your situation.