exv10w1






Exhibit 10.1




NONQUALIFIED

STOCK OPTION AGREEMENT




     THIS NONQUALIFIED STOCK OPTION AGREEMENT (this “Agreement”) is entered into effective as of
_________, 20___(the “Grant Date”), by CRAFT BREWERS ALLIANCE, INC., a Washington corporation (the
“Company”), and _________(the “Holder”).



RECITALS




     A. The Company has adopted the 2002 Stock Option Plan (the “Plan”). Capitalized terms
that are used but not defined in this Agreement will have the meanings given those terms in the
Plan.



     B. The Committee has designated the Holder to receive a stock option under the Plan.



     NOW THEREFORE, the Company and the Holder agree as follows:



     1. Grant of the Option. The Company grants to the Holder a Nonqualified Stock Option (the
“Option”) to acquire from the Company ___shares of Common Stock (the “Shares”) at the price of
___per share (the “Purchase Price”). The Option is subject to all of the provisions of the
Plan and the terms and conditions specified in this Agreement.



     2. Term of the Option. Unless earlier terminated pursuant to the Plan, the Option will
terminate on the earliest to occur of the following: (a) the expiration of three (3) months
following the date of termination of the Holder’s Service for any reason other than death,
Disability or Cause; (b) the expiration of one year following the date of termination of the
Holder’s Service by reason of death or Disability; (c) the date of termination of the Holder’s
Service for Cause; and (d) the tenth anniversary of the Grant Date (_________, 20___).



     3. Exercisability. Except as specified below and in Section 7.2 of the Plan, the Option will
become exercisable (a) as to twenty-five percent (25%) of the Shares on the first anniversary of
the Grant Date, and (b) as to an additional twenty-five percent (25%) of the Shares on each of the
next three anniversaries of the Grant Date. If the Holder’s Service terminates by reason of death
or Disability, the Option will immediately become exercisable in full. Except as provided in
Section 7.2 of the Plan, if the Holder’s Service terminates for any reason other than death or
Disability, the Option thereafter will be exercisable only for the Shares as to which it was
exercisable on the date of termination.



     4. Exercise of the Option. In order to exercise the Option, the Holder must do the following:



     (a) deliver to the Company a written notice, in substantially the form of the attached Exhibit
A, specifying the number of Shares for which the Option is being exercised;



     (b) tender payment to the Company of the aggregate Purchase Price for the



 









 








Shares for which the
Option is being exercised, which amount may be paid —






                (i) by check;



                (ii) by delivery to the Company of shares of Common Stock already owned by the Holder that
have a Fair Market Value, as of the date of exercise, equal to the aggregate Purchase Price
payable;



                (iii) delivery (in a form approved by the Committee) of an irrevocable direction to a
securities broker acceptable to the Committee:




                    (A) To sell Shares subject to the Option and to deliver all or a part of the sales
proceeds to the Company in payment of all or a part of the exercise price and withholding
taxes due; or




                    (B) To pledge Shares subject to the Option to the broker as security for a loan and to
deliver all or a part of the loan proceeds to the Company in payment of all or a part of the
exercise price and withholding taxes due; or



                (iv) by such other means as the Committee, in its sole discretion, may permit at the
time of exercise;



     (c) pay, or make arrangements satisfactory to the Committee for payment to the Company
of, all taxes required to be withheld by the Company in connection with the exercise of the
Option; and



     (d) execute and deliver to the Company any other documents required from time to time
by the Committee in order to promote compliance with applicable laws, rules and regulations.



     5. Tax Withholding and Reimbursement. The Company is authorized to withhold from the Holder’s
other compensation any withholding and payroll taxes imposed on the Company in connection with or
with respect to the exercise or other settlement of the Option (the “Payroll Taxes”). In the event
the Holder is no longer an employee of the Company at the time of exercise or there is insufficient
other income from which to withhold Payroll Taxes, the Holder agrees to pay the Company an amount
sufficient to provide for payment of all Payroll Taxes.



     6. Acceptance of Option; Further Assurances. By executing this Agreement, the Holder accepts
the Option, acknowledges receipt of a copy of the Plan, and agrees to comply with and be bound by
all of the provisions of the Plan and this Agreement. The Holder agrees to from time to time
execute such additional documents as the Company may reasonably require in order to effectuate the
purposes of the Plan and this Agreement.



     7. Entire Agreement; Amendments; Binding Effect. This Agreement, together with the Plan,
constitutes the entire agreement and understanding between the Company and the Holder regarding the
subject matter hereof. Except as permitted by the Plan, no
amendment of the Option or this Agreement, or waiver of any provision of this Agreement or the



 









 





Plan, shall be valid unless in writing and duly executed by the Company and the Holder. The
failure of any party to enforce any of that party’s rights against the other party for breach of
any of the terms of this Agreement or the Plan shall not be construed as a waiver of such rights as
to any continued or subsequent breach. This Agreement shall be binding upon the Holder and his or
her heirs, successors and assigns.



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



	 	 	 	 	 
	“Company”	CRAFT BREWERS ALLIANCE, INC.

 	 
	 	By
 	 
	 	[Name] 	 
	 	[Title] 	 
	 



	 	 	 
	“Holder”

	__________________________________________	 







 












 





EXHIBIT A




NOTICE OF STOCK OPTION EXERCISE




CRAFT BREWERS ALLIANCE, INC.

2002 STOCK OPTION PLAN



	 	 	 	 	 

	To:

	 	Craft Brewers Alliance, Inc.

929 North Russell Street

Portland, Oregon 97227

Attention: Patrick Green
	 	 
	 
	 	 	 	 
	Holder:

	 	                                                                         
       

                  Print Name
	 	 
	 
	 	 	 	 
	Mailing Address:

	 	                                                                         
       
	 	 
	 

	 	                                                                        
        
	 	 
	 

	 	                                                                        
        
	 	 
	 
	 	 	 	 
	Telephone Number:

	 	                                                                         
       
	 	 
	 
	 	 	 	 
	Option:	 	The option evidenced by
an Option Agreement dated                     ,      .






OPTION EXERCISE



I hereby elect to exercise the Option to purchase shares (“Shares”) of common stock of Craft
Brewers Alliance, Inc. (“CBAI”), covered by the Option as follows:




	 	 	 	 	 

	 

	 	Number of Shares Purchased (a)
	 	                                                              
	 

	 	Per-Share Option Price (b)
	 	$                                                            
	 

	 	Aggregate Purchase Price (a times b)
	 	$                                                            
	 

	 	Closing Date of Purchase
	 	                                                              
	 
	 

	 	Form of Payment [Check One]:	 	 
	 
	 	 	 	 
	 	 	o    My check in the full amount of the Aggregate Purchase Price (as well as a
check for any withholding taxes, if this box  ̈ is checked). See
“Instructions” below.

	 
	 	 	 	 
	 	 	o    Delivery of previously owned shares of CBAI common stock with a fair market
value equal to the Aggregate Purchase Price (as well as any withholding taxes,
if this box  ̈ is checked). See “Instructions” below. Note that
restricted shares acquired from CBAI under one of its stock plans may be used
for this purpose only if such shares have become vested.







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	 	 	o    My irrevocable direction to my securities broker (see below) to sell Shares
subject to the Option and deliver a portion of the sales proceeds to Craft
Brewers Alliance, Inc., in full payment of the Aggregate Purchase Price (as
well as any withholding taxes, if this box  ̈ is checked). See
“Instructions” below. I hereby confirm that any sale of Shares will be in
compliance with CBAI’s policies on insider trading and Rule 144, if applicable.
I HEREBY IRREVOCABLY AUTHORIZE                                          to transfer funds to
Craft Brewers Alliance,

                         
     (name of broker)

Inc., from my account in payment of the Aggregate Purchase Price (and
withholding taxes, if applicable) and Craft Brewers Alliance, Inc., is
hereby directed to issue the Shares for my account with such broker and to
transmit the Shares to the broker indicated above.







Instructions:




     (1) If payment is to be by check, a check for the amount of the Aggregate Purchase Price
payable to Craft Brewers Alliance, Inc., should be submitted with this Notice.



     (2) If payment is to be by surrender of previously owned shares or by attestation of
ownership (see Attestation Form below), either a certificate for the shares accompanied by a stock
power endorsed in blank or the completed Attestation Form should be submitted with this Notice. If
applicable, a certificate for any shares in excess of those needed to satisfy the Aggregate
Purchase Price and withholding taxes, if applicable, will be returned to you with the certificate
for your option shares. Any change in registration between the payment shares and the new shares
will require a properly executed stock power that is guaranteed by an institution participating in
a recognized medallion signature guarantee program.



     (3) No withholding tax is due upon exercise of an incentive stock option. Withholding tax is
due immediately upon exercise of a nonqualified stock option by an employee. If withholding tax is
due at the time of exercise, you will be notified of the amount and satisfactory arrangements must
be made for payment before a stock certificate for your option shares will be delivered to you (or
your broker, if applicable). Among other alternatives, amounts necessary to satisfy withholding
obligations may be deducted from compensation otherwise payable to you.



ISSUANCE INSTRUCTIONS FOR STOCK CERTIFICATES




     Please register the stock certificate(s) in the following name(s):



                                                                      




                                                                      




                                                                      




          If applicable, please check one: o JT TEN o TEN COM o Other




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     Please deliver the stock certificate(s) to (check one):



	 	 	 	 	 

	 

	 	o My brokerage account
	 	 
	 
	 	 	 	 
	 

	 	                                                                  
                        
	 

	 	                                                                  
                        
	 

	 	                                                                  
                        
	 

	 	      Attn:                                                              
             
	 

	 	      Account No.:                                                              ; or

	 
	 	 	 	 
	 

	 	o My mailing address set forth above.
	 	 
	 





	 	 	 

	 

Date

	 	 

Signature of Participant






ATTESTATION FORM



As indicated above, I have elected to use shares of CBAI common stock that I already own to pay the
Aggregate Purchase Price of the Option (and withholding taxes, if applicable).



I attest to the ownership of the shares represented by the certificate(s) listed below or to the
beneficial ownership of the shares held in the name of my broker, as indicated in the attached copy
of my brokerage statement. I will be deemed to have delivered such shares to CBAI in connection
with the exercise of my Option.



I understand that, because I (and any joint owner) will retain ownership of the shares (the
“Payment Shares”) deemed delivered to pay the Aggregate Purchase Price (and withholding taxes, if
applicable), the number of shares to be issued to me upon exercise of my Option will be reduced by
the number of Payment Shares. I represent that I have full power to deliver and convey
certificates representing the Payment Shares to CBAI and by such delivery and conveyance could have
caused CBAI to become sole owner of the Payment Shares. The joint owner of the Payment Shares, if
any, by signing this Form, consents to these representations and to the exercise of the Option by
this attestation.



I certify that any Payment Shares originally issued to me as restricted shares are now fully
vested.







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List certificate(s) and number of shares covered, or attach a copy of your brokerage statement:




	 	 	 

	Common Stock 

Certificate Number
	 	Number of

Shares Covered
	 
	 	 
	 	 	 
	 	 	 





	 	 	 

	Date:                                                    
	 	 
	 
	 	 
	Print Name of Option Holder:

	                                                            
                                                            
	 
	 	 
	Signature of Option Holder:

	                                                            
                                                            
	 
	 	 
	Print Name of Joint Owner:

	                                                            
                                                            
	 
	 	 
	Signature of Joint Owner:

	                                                            
                                                            





If you are attaching a copy of your brokerage statement, you must have your securities broker
complete the following:




     The undersigned hereby certifies that the foregoing attestation is correct.




	 	 	 	 	 
	 	 

Name of Brokerage Firm

 	 
	Date:                                          	By:  	 	 
	Telephone No.:                                                 	 	 	 
	 	 	  

Print Name of Signing Broker 	 
	 




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