Can this exhibit be signed electronically?

Yes. Electronic signatures are legally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws where adopted, provided intent, consent, attribution, and record retention requirements are met.

When is a notary or witness required?

Most exhibits do not require notarization, but state or transaction-specific rules may demand a notary or witnesses for certain attachments or security instruments. Verify local notary and deed rules before execution.

What if a signer’s name doesn’t match ID?

Mismatched names can cause verification failures and delays. Use the legal entity or government-name format in the signature block and provide proof of authority when necessary.

How do I amend the exhibit after signing?

Amendments should be made by executed written amendment or restatement signed by authorized parties. Electronic amendments are acceptable if they meet ESIGN/UETA validity criteria.

Is remote online notarization (RON) acceptable?

RON is permitted in many states but rules vary. Confirm the state’s RON status, required identity-proofing, and retention rules before using remote notarization.

How can I revoke or cancel a submitted exhibit?

Revocation depends on contract terms and whether the exhibit has been relied on or incorporated. Notice and agreement of counterparty are typically required; consult counsel for rescission steps.

Electronic Signature
Templates
Miscellaneous
Funding Proposal Exhibit

Funding Proposal Exhibit

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FUNDING PROPOSAL EXHIBIT

This Funding Proposal Exhibit (this Exhibit) is made effective as of and is attached to and made a part of the underlying Agreement between:

Funder Name: Recipient Name:

WHEREAS

WHEREAS, Funder desires to provide funding to support the activities described in this Exhibit and the Agreement; and

WHEREAS, Recipient represents that the funding will be applied to the project, program, or business use described below subject to the terms and conditions set forth in this Exhibit; and

WHEREAS, the parties intend for this Exhibit to set forth the amounts, disbursement schedule, conditions precedent, reporting obligations, and other obligations necessary to effectuate such funding.

SCOPE OF WORK

Description of Project, Use of Funds, and Deliverables

FUNDING TERMS

Total Funding Amount Disbursement Schedule (include amounts and dates or milestones) Conditions Precedent to First Disbursement

PAYMENT TERMS

Recipient shall invoice Funder in accordance with the Disbursement Schedule. Payment of undisputed invoices shall be made within days of receipt of an invoice that complies with the requirements set forth in this Exhibit.

Late Payment Fee

Any undisputed amount not paid when due shall accrue interest at a rate of percent per annum, calculated daily from the date due until paid in full, or the maximum rate permitted by applicable law, whichever is lower.

REPORTING AND AUDIT

Reporting Frequency Reports Required

Funder or its authorized representatives shall have the right, upon reasonable notice and during normal business hours, to inspect Recipient records and supporting documentation to verify compliance with this Exhibit.

TERM AND TERMINATION

This Exhibit shall commence on the Start Date: and continue until the End Date: unless earlier terminated in accordance with this Exhibit.

Notice Period for Termination Without Cause Termination for Cause

CONFIDENTIALITY

The parties acknowledge that in connection with the performance of this Exhibit each party may disclose Confidential Information. "Confidential Information" means non-public, proprietary, or confidential information disclosed by one party to the other, whether orally, in writing, or by inspection. Recipient shall: (a) protect Confidential Information with the same degree of care it uses to protect its own confidential information but no less than reasonable care; (b) use Confidential Information solely for the purposes permitted by this Exhibit; and (c) not disclose Confidential Information to any third party except to employees, consultants, or agents with a need to know who are bound by confidentiality obligations no less protective than those set forth herein.

Confidential Information does not include information that: (i) is or becomes generally known to the public through no act or omission of the receiving party; (ii) was rightfully known to the receiving party prior to disclosure; (iii) is independently developed without use of the other party's Confidential Information; or (iv) is rightfully obtained from a third party without restriction.

REPRESENTATIONS, WARRANTIES AND INDEMNITY

Each party represents and warrants that it has full power and authority to enter into this Exhibit and to perform its obligations hereunder. Recipient further represents that the use of funds as described in the Scope of Work will not violate any law or third-party rights. Recipient agrees to indemnify, defend, and hold harmless Funder from and against any claims, losses, liabilities, costs, or expenses arising out of Recipient's misuse of funds, breach of this Exhibit, or materially false representations.

GOVERNING LAW

This Exhibit shall be governed by and construed in accordance with the substantive laws of the State of without regard to its conflicts of law principles.

ENTIRE AGREEMENT

This Exhibit, together with the Agreement to which it is attached, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations, and understandings, whether written or oral, relating to such subject matter. In the event of any conflict between the provisions of this Exhibit and the Agreement, the terms of this Exhibit shall control solely with respect to the funding arrangements set forth herein.

MISCELLANEOUS

Notices required under this Exhibit shall be delivered to the party addresses set forth in the Agreement or as otherwise designated in writing. Any waiver of a provision of this Exhibit must be in writing signed by the party granting the waiver. If any provision of this Exhibit is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Additional Provisions (optional)

Funder:

By:

Date:

Recipient:

By:

Date:

What the Funding Proposal Exhibit Is and How It’s Used

A Funding Proposal Exhibit is a structured attachment to a financing agreement that documents an offer for capital, the proposed use of funds, and the conditions under which funding will be released. Typically drafted by a sponsor, borrower, or financial advisor, the exhibit organizes key terms such as the funding amount, draw schedule, conditions precedent, required documentation, and reporting obligations. It supports underwriting and decision-making by creating a single reference for financiers and counsel, and it may be incorporated by reference into a commitment letter, purchase agreement, or loan facility.

Why a Clear Funding Proposal Exhibit Matters

A concise exhibit reduces ambiguity, speeds underwriting, and helps align expectations among lenders, sponsors, and legal teams. It clarifies who funds what, when, and under which conditions, reducing disputes and administrative delays.

Primary Users and Roles for This Exhibit

The Funding Proposal Exhibit is most often prepared and used by parties directly involved in a financing transaction.

Lenders and underwriters — review funding triggers, conditions precedent, and collateral descriptions to underwrite risk and set funding timelines.
Borrowers and sponsors — document planned use of proceeds, draw schedules, and reporting obligations to demonstrate compliance readiness.
Legal and compliance teams — confirm contractual language, governing law, and attachment integrity to reduce enforceability and regulatory risk.

Each party uses the exhibit differently: lenders focus on conditions and security; borrowers track draw mechanics and permitted uses; counsel ensures the exhibit integrates with primary financing documents.

Step-by-Step: Preparing and Submitting the Exhibit

Follow these sequential steps to prepare a compliant Funding Proposal Exhibit and move it through review to execution.

01

Draft the exhibit: Assemble terms, schedules, and supporting data for internal review.
02

Attach supporting documents: Include financials, insurance certificates, and title or lien reports as required.
03

Route for approvals: Send to legal, compliance, and authorized signers in order.
04

Execute and archive: Obtain signatures, capture audit trail, and store final exhibit securely.

Typical Electronic Workflow for Execution and Recordkeeping

A repeatable electronic workflow reduces errors and documents each action for audit purposes.

Upload document: Importer uploads the exhibit and attachments to the signing platform.
Place fields: Add signature, date, and conditional fields where needed.
Invite signers: Send secure signing links or set recipient order for sequential signing.
Complete and archive: Signed package and audit trail are stored in the document repository.

Configuring a Digital Signing Workflow

Recommended workflow settings to support secure, auditable e-signatures for the exhibit.

Field	Configuration
Authentication	Email link or SMS code; use MFA for higher assurance.
Recipient Order	Set sequential or parallel signing depending on approvals required.
Conditional Fields	Show fields only when specified conditions are met.
Audit Trail	Capture timestamps, IP addresses, and signer actions for compliance.

Technical Considerations for eSubmission and Integration

Ensure your platform supports required integrations, secure storage, and appropriate signer authentication before e-submitting the exhibit.

Integrations: Salesforce, NetSuite, Google Workspace compatibility
File formats: PDF, DOCX, and Excel supported
Authentication: Email link, SMS code, KBA options

Choose a platform that captures an auditable record (timestamps, IPs, certificate) and integrates with your document repository. Verify HIPAA BAA, 21 CFR Part 11, or other compliance add-ons where industry rules demand stronger controls.

Core Components to Include in a Professional Exhibit

A well‑structured Funding Proposal Exhibit contains essential components that let reviewers evaluate risk and timing quickly.

Executive Summary

One-paragraph overview of the funding purpose, amount, and key milestones so decision-makers can assess suitability at a glance.

Funding Schedule

Detailed draw schedule that ties amounts to milestones, deliverables, or time periods to govern disbursements clearly.

Conditions Precedent

Precise list of required documents, approvals, and third-party consents that must be delivered before funding occurs.

Security Description

Describe collateral, security interests, and perfection steps to clarify priority and enforcement mechanics.

Draw Procedures

Procedural checklist for requesting a draw, required certificates, and timelines for lender review and funding.

Reporting Requirements

Ongoing reporting obligations, frequency, and the format of financial statements or covenant compliance submissions.

Documents Commonly Attached to the Exhibit

Include these attachments to support verification and accelerate lender review.

Financial Statements

Recent audited or reviewed financial statements, pro forma schedules, and management forecasts that substantiate funding need and repayment plan.

Collateral Schedule

Itemized list of assets serving as collateral with descriptions, values, and any existing encumbrances or priority interests.

Insurance Certificates

Current insurance evidencing required coverage and policy limits with certificate holder details matching the lender's requirements.

Legal Opinions and Permits

Any required regulatory approvals, permits, title reports, or counsel opinions that confirm enforceability and compliance.

Typical Deadlines and Timing Expectations

Common date-driven events to track when preparing and executing the exhibit.

Submission Deadline:

Date by which the exhibit and attachments must be delivered to the lender.

Funding Date:

Target date for funds to be disbursed upon satisfaction of conditions.

Cure Period:

Time allowed to correct deficiencies after a lender's notice, often 10–30 days.

Reporting Due Dates:

Scheduled dates for interim reports or post-funding compliance deliverables.

Record Retention Start:

Date when retention obligations begin, typically the effective date of the funded agreement.

Key Milestones from Draft to Funding

Sequence the following stages to visualize the critical path and approvals needed to reach closing.

01

Draft Completion

Finalized exhibit text and attachments ready for internal review.

02

Underwriting Review

Lender conducts diligence and requests clarifications or additional documents.

03

Approval and Conditions

Lender issues conditional approval and lists outstanding pre-funding items.

04

Funding Close

Conditions satisfied, funds disbursed, and executed exhibit archived.

Common Mistakes That Slow Review or Funding

Incomplete attachments — missing financials, title reports, or insurance certificates create immediate review holds and requests for re-submission.
Vague conditions — ambiguous or subjective conditions precedent that are open to interpretation delay lender sign-off and increase negotiation.
Mismatched names or entities — inconsistent legal entity names across schedules, signatures, or filings trigger verification issues and may invalidate actions.
Unclear draw mechanics — lack of precise draw triggers, amounts, or timelines leads to disputes and operational delays during disbursement.

Consequences of an Incorrect or Incomplete Exhibit

Contract Voidance: Possible loss of enforceability

Funding Delays: Postponed disbursements and added costs

Tax Consequences: Incorrect reporting or withholding exposure

Regulatory Fines: Compliance penalties for industry violations

Lien Priority Loss: Unperfected security may lose priority

Reputational Harm: Trust erosion among counterparties

How This Exhibit Differs from Related Transaction Documents

A short comparison highlights key differences between a Funding Proposal Exhibit and other financing documents.

Criteria	Funding Proposal Exhibit	Term Sheet
Notarization Required	rare	rare
Binding Legal Effect	conditional	often non-binding
Typical Signers	sponsor, borrower	sponsor, potential investor
Attachments Required	schedules and certificates	summary financials

eSignature Vendor Pricing Snapshot for Executing Exhibits

Typical vendor pricing and capability differences for eSignature platforms used to execute Funding Proposal Exhibits; signNow appears first for comparison.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Who Typically Signs and What Authority They Hold

Chief Financial Officer

The CFO often signs to bind the borrowing entity for financial commitments. Ensure the CFO has documented corporate authority and is listed in corporate records or by board resolution.

General Counsel

General counsel or authorized corporate officer signs to confirm legal compliance, authority to contract, and that conditions precedent are met from the organization's perspective.

Frequently Asked Questions About Funding Proposal Exhibits

Answers to common questions about signing, enforceability, notarization, and document changes when using an electronic process.

Need help? Contact support

Can this exhibit be signed electronically?
Yes. Electronic signatures are legally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws where adopted, provided intent, consent, attribution, and record retention requirements are met.
When is a notary or witness required?
Most exhibits do not require notarization, but state or transaction-specific rules may demand a notary or witnesses for certain attachments or security instruments. Verify local notary and deed rules before execution.
What if a signer’s name doesn’t match ID?
Mismatched names can cause verification failures and delays. Use the legal entity or government-name format in the signature block and provide proof of authority when necessary.
How do I amend the exhibit after signing?
Amendments should be made by executed written amendment or restatement signed by authorized parties. Electronic amendments are acceptable if they meet ESIGN/UETA validity criteria.
Is remote online notarization (RON) acceptable?
RON is permitted in many states but rules vary. Confirm the state’s RON status, required identity-proofing, and retention rules before using remote notarization.
How can I revoke or cancel a submitted exhibit?
Revocation depends on contract terms and whether the exhibit has been relied on or incorporated. Notice and agreement of counterparty are typically required; consult counsel for rescission steps.

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