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Business Moonshine Agreement

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BUSINESS MOONSHINE AGREEMENT

This Business Moonshine Agreement (Agreement) is made and entered into as of by and between:

Individual    LLC    Corporation    Partnership

Individual    LLC    Corporation    Partnership

WHEREAS

WHEREAS, Party A is engaged in the production, blending and limited commercial distribution of handcrafted spirits commonly referred to in industry parlance as moonshine, and maintains facilities, personnel and trade knowledge necessary for such production;

WHEREAS, Party B desires to procure, distribute or otherwise commercialize certain batches or product lines produced by Party A on the terms and conditions set forth herein; and

WHEREAS, the parties desire to set forth their respective rights and obligations regarding production, delivery, payment, confidentiality and allocation of risk.

SCOPE OF WORK

Party A shall perform the production, quality control, packaging and delivery services described below. Party A shall comply with all applicable laws and safety standards in producing the product. Party B shall cooperate in scheduling and accept deliveries pursuant to the Delivery Terms section.

PAYMENT TERMS

In consideration for the services and goods provided by Party A, Party B shall pay the amounts and according to the schedule set forth below. All amounts are stated in U.S. dollars.

Late payments shall accrue interest and fees as set forth below.

TERM AND TERMINATION

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

Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure within the notice period specified above. Termination shall not relieve either party of obligations accrued prior to termination.

CONFIDENTIALITY

Each party acknowledges that during performance it will receive Confidential Information of the other. "Confidential Information" means non-public business, technical and financial information disclosed by a party. Each receiving party shall (a) hold Confidential Information in confidence using at least the same degree of care it uses for its own confidential materials but in no event less than reasonable care; (b) not disclose Confidential Information to third parties except as expressly permitted in this Agreement; and (c) use Confidential Information solely for performance of this Agreement. The obligations in this section do not apply to information that is (i) publicly known other than by breach of this Agreement, (ii) independently developed without use of the other party's Confidential Information, or (iii) required to be disclosed by law, provided the disclosing party gives prompt notice to the other to permit a protective order.

PRODUCT COMPLIANCE, REPRESENTATIONS, AND WARRANTIES

Party A represents that all products delivered under this Agreement shall be produced in compliance with all applicable laws and regulations and shall conform to the specifications agreed in writing. Party B represents that it will not modify, relabel or repurpose products in a manner that would violate applicable law or materially alter safety labeling without Party A's prior written consent.

EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

INDEMNIFICATION

Each party shall indemnify and hold harmless the other party and its officers, directors, agents and employees from and against any third-party claims, losses, liabilities and expenses (including reasonable attorneys' fees) to the extent such claims arise from the indemnifying party's gross negligence, willful misconduct, or material breach of this Agreement. The indemnified party shall provide prompt written notice of any claim and cooperate in the defense and resolution of the claim.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles. Any disputes arising under this Agreement shall be resolved in the courts located within that State, subject to the parties' rights to seek injunctive relief where appropriate.

ENTIRE AGREEMENT

This Agreement, including any exhibits or schedules attached hereto and any written amendments executed by both parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous understandings and agreements, whether oral or written. No amendment shall be effective unless in writing and signed by authorized representatives of both parties.

NOTICES

All notices under this Agreement shall be in writing and delivered to the addresses set forth below or to such other address as a party may designate in writing in accordance with this section. Notices are effective upon personal delivery or three (3) days after deposit with the postal service if mailed by certified mail, return receipt requested.

Party A Printed Name:

By:

Date:

Party B Printed Name:

By:

Date:

Enter text✕

What the Business Moonshine Agreement Covers

The Business Moonshine Agreement is a commercial contract template used by licensed craft distillers, distributors, or joint ventures to document rights, obligations, and risk allocation for producing and selling distilled spirits under a branded label. It typically addresses production specifications, quality control, labeling and compliance with federal and state alcohol regulations, payment and royalty terms, intellectual property assignment, insurance and indemnity, and termination mechanics. The agreement is intended for lawful, licensed operations; using it does not replace required permits, tax registrations, or excise reporting obligations under federal or state law.

Why a Clear Agreement Matters for Distilled Spirits Businesses

A well-drafted Business Moonshine Agreement reduces regulatory risk, clarifies commercial terms between producers and partners, and documents compliance steps that support licensing, excise tax reporting, and distribution.

Why a Clear Agreement Matters for Distilled Spirits Businesses

Typical Parties Who Use This Agreement

The agreement suits parties engaged in lawful production, bottling, branding, or distribution of distilled spirits who need written commercial terms.

  • Small craft distilleries and licensed micro-distillers forming supply relationships or co-packing arrangements.
  • Independent distributors and wholesalers contracting for exclusive or non-exclusive regional rights.
  • Brand owners or beverage entrepreneurs outsourcing production under a tolling or contract-distillation model.

Use the template as a starting point; consult counsel for industry-specific licensing, excise tax, and labeling compliance in your jurisdiction.

Who Typically Signs

Distillery Owner

The business owner or an authorized officer signs for the producing entity. The signatory should have authority to bind the company and be prepared to provide licensing and TTB permit references if requested during due diligence.

Distributor Representative

An authorized sales or operations executive signs on behalf of the distributor or brand manager. They must confirm state reseller permits, insurance coverage, and agreed payment and delivery terms.

Essential Information to Include

Party Names: Full legal entity names
Addresses: Street, city, state, ZIP
Tax Identifiers: EIN or SSN for individuals
Effective Date: MM/DD/YYYY format
Payment Terms: Net days and remittance details
Licenses: TTB and state license numbers

Step-by-Step: Completing the Agreement

Follow these sequential steps to populate, review, and finalize the Business Moonshine Agreement.

  • 01
    Prepare Documents: Gather formation docs, EIN, and licenses.
  • 02
    Complete Fields: Enter names, dates, specs, and payment terms.
  • 03
    Review Compliance: Check TTB and state liquor laws applicability.
  • 04
    Sign and Archive: Obtain signatures, notarization if needed, and retain copies.

How to Configure an Online Signing Workflow

Set up a digital workflow that enforces field completion, signer order, and audit logging for regulatory and commercial transparency.

Field Configuration
Signer Order Specify producer first, then distributor
Required Fields Make licenses, EIN, and effective date mandatory
Authentication Enable email and SMS code for signers
Audit Trail Capture timestamps, IP, and signed PDF

Digital Signing and Submission Basics

Use an eSignature platform that supports audit trails, secure storage, and industry integrations to streamline execution and recordkeeping.

  • Document Formats: PDF and DOCX accepted
  • Integrations: Connect to ERP/CRM and cloud storage
  • Authentication: Email, SMS, KBA, or advanced methods

Ensure the chosen platform supports ESIGN/UETA compliance, encrypted storage, and the ability to produce a certificate of completion for regulatory audits.

Typical Online Execution Flow

A standard eSigning flow reduces manual steps and preserves a complete audit trail for compliance and dispute resolution.

  • Upload Document: Sender uploads final draft to the platform
  • Place Fields: Add signature, date, and required fields
  • Invite Signers: Send secure email or link to parties
  • Complete Signing: Signers authenticate and apply signatures

Key Timing Considerations and Deadlines

Track payment, reporting, and licensing deadlines to avoid penalties and interruptions to production or distribution.

Effective Date:

Start of obligations and insurance coverage

Excise Reporting:

Monthly or quarterly TTB filings depending on volume

Tax Payments:

Follow federal and state excise payment schedules

Contract Renewals:

Notice periods defined in the agreement

License Renewals:

Observe state renewal windows to avoid suspension

Common Mistakes to Avoid

  • Incomplete licensing details cause distribution holds and fines by regulators if not corrected before shipping.
  • Using ambiguous production specs leads to disputes over quality, product returns, and potential labeling violations.
  • Failing to align payment terms with delivery schedules creates cash flow disputes and delayed fulfillment.
  • Relying on unsigned or initialed pages can render parts of the contract unenforceable during litigation.

Penalties and Legal Risks of an Incorrect Agreement

Excise Fines: Monetary penalties
Permit Suspension: License revocation risk
Tax Consequences: Backup withholding or penalties
Civil Liability: Breach damages and injunctions
Criminal Exposure: Unlicensed production risks
Contract Voidance: Unenforceable provisions

eSignature Vendor Pricing and Feature Snapshot

Compare core pricing and compliance features relevant to executing and storing the Business Moonshine Agreement; signNow is listed first per platform comparisons.

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 free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Real-World Examples of Digital Execution

Practical examples show how signed, stored agreements simplify operations and support compliance during audits.

Optica Ventures / Timed Execution

A small producer adopted a standardized contract to align bottling specs and payment timing.

  • The change reduced disputes over batch quality.
  • Standardized clauses and an online signing workflow produced consistent records for audits and accelerated partner onboarding over multiple states.

Martin Properties / Remote Signing

A regional brand used remote signing to finalize distribution agreements across counties.

  • Remote notarization supported certain signatures.
  • Executed agreements retained in a secure repository allowed faster compliance checks and eliminated overnight courier costs while preserving audit trails for regulators.

Frequently Asked Questions About Execution and Validity

Answers to common questions about enforceability, eSign use, notarization, and changing or revoking the agreement.


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