Document:

exv10w2

Exhibit 10.2

May 26, 2010

Robert P. Widmer

Craft Brewers Alliance, Inc.

929 North Russell Street

Portland, OR 97227

Dear Rob:

     The purpose of this letter is to set forth our understanding about your continued employment
as Vice President of Corporate Quality Assurance and Industry Relations of Craft Brewers Alliance,
Inc. (the “Company”). Effective as of July 1, 2010, this letter supersedes and replaces any
agreement regarding your employment by the Company, including, without limitation, your Employment
Agreement dated June 30, 2008; provided, however, that this letter does not supersede or replace
your Non-Competition/Non-Solicitation Agreement with the Company dated June 30, 2008.

     Your employment is “at-will,” which means you or the Company may end the employment
relationship at any time. Our mutual agreement regarding your salary, severance, and other
benefits and obligations is set forth below.

Compensation and Benefits

     Your base salary for the six-month period ending December 31, 2010, will be $95,275, Your base
salary effective January 1, 2011 will increase by the rate established for all employees of the
Company (before standard tax withholdings and other payroll deductions). In addition, you are
entitled to participate in all of the Company’s employee benefit programs for which you are
eligible, including long-term incentive awards approved by the Compensation Committee for key
employees from time to time.

Severance

     In the event that your employment with the Company is terminated by the Company for any reason
other than “for cause” or by you due to “good reason,” the Company will continue to pay your
monthly base salary at the rate in effect on the date of termination in accordance with the
Company’s normal payroll schedule commencing on the day following termination and extending for a
period (the “Severance Period”) of 12 months.

     In addition, the Company will promptly (in no event later than March 15 of the calendar year
after the year in which your employment terminated) make a cash payment to you in an amount equal
to 100% of your unused Paid Time Off (“PTO”) hours accrued through the date of termination in
accordance with the provisions of the Company’s PTO Plan then in effect.

 

 

Robert P. Widmer

May 26, 2010

Page 2

     If you become entitled to severance benefits under this agreement, the Company will also continue
to provide you during the Severance Period the same health benefits as were being provided to you
at the time of termination; provided, however, that such benefits shall terminate in the event you
find new employment with comparable health coverage.

     For purposes of this letter, “for cause” means that you have engaged in conduct which has
substantially and adversely impaired the interests of the Company, or would be likely to do so if
you were to remain employed by the Company; you have engaged in fraud, dishonesty or self-dealing
relating to or arising out of your employment with the Company; you have violated any criminal law
relating to your employment or to the Company; you have engaged in conduct which constitutes a
material violation of a significant Company policy or the Company’s Code of Conduct and Ethics,
including, without limitation, violation of policies relating to discrimination, harassment, use of
drugs and alcohol, and workplace violence; or you have repeatedly refused to obey lawful directions
of the Company’s Board of Directors.

     For purposes of this letter, “good reason” means the occurrence of one or more of the
following events without your consent: (a) a material reduction in your authority, duties, or
responsibilities as the Company’s Vice President of Corporate Quality Assurance and Industry
Relations; (b) a material reduction in the authority, duties, or responsibilities of the person or
persons to whom you report (including, if applicable, a requirement that you report to a Company
officer or employee instead of reporting directly to the Company’s Board of Directors); or (c) a
relocation of your principal office to a location that is more than 100 miles from Portland,
Oregon; provided, however, that “good reason” shall only be deemed to have occurred
if: (i) within 90 days after the initial existence of the circumstances constituting “good reason,”
you provide the Company with a written notice describing such circumstances, (ii) the Company fails
to cure the circumstances within 30 days after the Company receives your notice, and (iii) you
terminate your employment with the Company and all the members of the Company’s controlled group
within 90 days of the date of your notice.

     For purposes of this letter, a termination of your employment will be deemed to occur only
when or if there has been a “separation from service” as such term is defined in Treasury
Regulation Section 1.409A-1(h).

     If, during the Severance Period, you become employed or associated with a brewing or other
company that the Company determines, in its reasonable discretion, is a competitor of the Company
or the portion of Anheuser-Busch, Inc.’s business relating to alcoholic beverages, your severance
payments and benefits under this letter agreement will terminate as of the effective date of such
employment or association. This is in addition to, and not in place of, the restrictions set forth
in your Non-Competition Agreement/Non-Solicitation Agreement with the Company.

     The total amount of severance payments and other benefits (except benefits described in Treasury
Regulation Sections 1.409A-1(a)(5) or 1.409A-(b)(9)(v)) provided to you pursuant to this letter
agreement shall not exceed two times the lesser of (i) the sum of your annualized compensation
based upon your annual salary in the year preceding the year in which your employment is terminated
(adjusted for any increase during that year that was expected to

 

 

Robert P. Widmer

May 26, 2010

Page 3

continue indefinitely if your employment had not terminated) or (ii) the applicable dollar limit
under Section 401(a)(17) of the Internal Revenue Code for the calendar year in which your
employment is terminated.

     The severance payments and other benefits under this letter are intended to be exempt from the
requirements of Section 409A of the Internal Revenue Code by reason of all payments under this
Agreement being either “short-term deferrals” within the meaning of Treasury Regulation
Section 1.409A-1(b)(4) or separation pay due to involuntary separation from service under Treasury
Regulation Section 1.409A-1(b)(9)(iii). All provisions of this letter shall be interpreted in a
manner consistent with preserving these exemptions.

     The Company will require you to execute an appropriate general release of claims that you may
have relating to your employment at the Company and termination of your employment as a condition
to your receipt of severance payments or other benefits other than those required by law or
provided to employees generally. If such general release of claims is not executed within 30 days
following the date your employment with the Company is terminated, all severance payments and other
benefits payable after such 30-day period will be forfeited, and you agree to repay any severance
payments, and the value of any other benefits, paid to you during such period.

Code of Conduct

     By your signature below, you agree to comply with the Company’s Code of Conduct and Ethics as
in effect from time to time, and to be subject to the Company’s policies and procedures in effect
from time to time for directors and employees of the Company.

     We appreciate your continued efforts on behalf of the Company, and look forward to working
with you for years to come.

	 	 	 	 	 

	 

	 	Sincerely,	 	 
	 
	 	 	 	 
	 

	 	/s/ David Lord 

	 	 
	 

	 	David Lord	 	 
	 

	 	Chairman of Compensation Committee 

of Board of Directors	 	 

	 	 	 

	Acknowledged and Agreed:
	 	 
	 
	 	 
	/s/ Robert P. Widmer
 

	 	 
	Robert P. Widmer
	 	 
	 
	 	 
	Date: July 8, 2010exv10w3

Exhibit 10.3

FORM OF NONSTATUTORY

STOCK OPTION AGREEMENT

          THIS NONSTATUTORY 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 “Optionholder”).

RECITALS

          A. The Company has adopted the 2007 Stock Incentive 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 Optionholder to receive a stock option under the Plan.

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

          1. Grant of the Option. The Company grants to the Optionholder a Nonstatutory 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 Optionholder’s Continuous Service for any reason other
than death, Disability or Cause; (b) the expiration of one year following the date of termination
of the Optionholder’s Continuous Service by reason of death or Disability; (c) the date of
termination of the Optionholder’s Continuous Service for Cause; and (d) the tenth anniversary of
the Grant Date (                    , 20     ).

          3. Exercisability. Except as specified below and in Section 12.3 of the Plan, the Option will
become exercisable (a) as to twenty percent (20%) of the Shares on the first anniversary of the
Grant Date, and (b) as to an additional twenty percent (20%) of the Shares on each of the next four
anniversaries of the Grant Date. If the Optionholder’s Continuous Service terminates by reason of
death or Disability, the Option will immediately become exercisable in full. If the Optionholder’s
Continuous Service terminates by reason of Cause, all outstanding Options shall be forfeited
(whether vested or not vested) and expire on the date of termination. Except as provided in Section
12.3 of the Plan, if the Optionholder’s Continuous Service terminates for any reason other than
death, Disability or Cause, 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 Optionholder 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 Optionholder
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
Optionholder’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 Optionholder 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
Optionholder 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 Optionholder
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 Optionholder 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 Optionholder
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 Optionholder. 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 Optionholder 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]
	 	 
	 
	 	 	 	 	 	 	 	 
	“Optionholder”
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	[Name]	 	 

 

 

EXHIBIT A

NOTICE OF STOCK OPTION EXERCISE

CRAFT BREWERS ALLIANCE, INC.

2007 STOCK INCENTIVE PLAN

	 	 	 	 	 	 	 

	To:	 	Craft Brewers Alliance, Inc.	 	 
	 	 	929 North Russell Street	 	 
	 	 	Portland, Oregon 97227	 	 
	 

	 	Attention:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	Optionholder:
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	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.

A-1

 

	 	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, Inc., from my account in payment of the 
(name of broker)

 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 nonstatutory 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

A-2

 

     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.

A-3

 

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 Optionholder:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Signature of Optionholder:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	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

A-4

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