Document:

Exhibit 10.2
    

    
      EMPLOYMENT AGREEMENT

    

    
      This Employment Agreement (“Agreement”) is between Kurt R. Widmer
      (“Widmer”) and Redhook Ale Brewery, Incorporated (“Company”)
      (referred to collectively as the “parties”).  Upon the completion of
      the merger described below, Company will be renamed Craft Brewers
      Alliance, Inc.
    

    
      Company and Widmer agree as follows, effective as of the closing date of
      the proposed merger between Company and Widmer Brothers Brewing Company
      (the “Effective Date”):
    

    
      1.  Purpose.  This Agreement sets forth the terms and
      conditions of Widmer’s employment with Company from and after the
      Effective Date.
    

    
      2.  Employment.  Company will employ Widmer as its
      Chairman of the Board.  His responsibilities are described in a document
      entitled “Responsibilities of the Chairman of the Board,” which is
      attached to this Agreement as Exhibit A. In addition, Widmer shall
      comply with Company’s Code of Conduct and Ethics as in effect from time
      to time, and be subject to Company’s policies and procedures in effect
      from time to time for its senior executives.
    

    
      3.  Term of Employment.  The initial term of this
      Agreement starts on the Effective Date and, subject to the provisions of
      this Agreement, ends on the last day of the month in which the second
      anniversary of the Effective Date occurs. If Widmer remains in the
      employ of Company following the initial term, he shall be an at-will
      employee of Company.
    

    
      4.  Compensation.  As payment for services rendered to
      Company, Widmer shall be entitled to receive from Company a salary,
      benefits and bonus as follows:
    

    
      a.  Base Salary.  Company shall pay Widmer an annual
      base salary of $225,000 (before standard tax withholdings).  Company
      shall pay Widmer his base salary in accordance with Company’s normal
      payroll policies.  Widmer’s base salary will be reviewed annually by the
      Compensation Committee of Company’s Board of Directors (the “Committee”)
      and may be adjusted on an annual basis.  Widmer will not participate in
      decisions about his base salary, benefits and bonus.
    

    
      b.  Benefits.  Widmer will be entitled to participate
      in all of Company’s employee benefit programs for which he is eligible,
      including a long-term incentive plan for executive officers to be
      developed by the Committee.
    

    
      c.  Bonus.  At the end of each fiscal year during which
      Widmer renders services under this Agreement (regardless of whether such
      services were rendered for the entire year or for a portion of the
      year), Widmer shall be eligible to receive a bonus, the amount of which
      is based upon the financial performance of the Company during that
      fiscal year.  Company financial goals will be established by the
      Committee at the beginning of each fiscal year.  The amount of the
      bonus, if any, will be determined by the Committee, and Widmer will not
      participate in that decision.
    

    
      
        

        

      

      
        
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      d.  Expenses.  Widmer will be reimbursed for all
      business expenses related to travel on Company’s business, including
      lodging and a mileage allowance.
    

    
      5.  Payment of Severance and Compensation upon Termination
      or Resignation.
    

    
      a.  If, prior to the second anniversary of the Effective Date, Widmer is
      terminated by Company other than for Cause, or if Widmer resigns for
      Good Reason, he shall be paid his base salary through the date of
      termination or resignation in accordance with the normal payroll
      practices of Company.  In addition, he shall be entitled to receive from
      Company severance pay equal to two (2) years’ base salary at his final
      rate of pay.  Subject to the provisions of Section 10, all compensation
      and severance pay shall be paid in a lump-sum single payment on or
      before the sixtieth (60th) day following Widmer’s termination or
      resignation date.  Widmer shall also be entitled to receive payment for
      100% of his 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.  In addition, Company shall pay the monthly premium
      for continuation of health coverage (COBRA) for eighteen (18) months
      following the termination or resignation date, except that such payments
      shall end earlier if Widmer accepts health insurance coverage at a
      subsequent employer.
    

    
      b.  If Widmer is terminated by Company for Cause or if Widmer resigns
      for other than Good Reason, he shall be paid his base salary through the
      date of termination or resignation in accordance with the normal payroll
      practices of Company.  
    

    
      c.  “Cause” shall mean:  
    

    
      i.  Widmer has engaged in conduct which has substantially and adversely
      impaired the interests of Company, or would be likely to do so if he
      were to remain employed by Company;
    

    
      ii.  Widmer has engaged in fraud, dishonesty or self-dealing relating to
      or arising out of his employment with Company;
    

    
      iii.  Widmer has violated any criminal law relating to his employment or
      to Company;
    

    
      iv.  Widmer has engaged in conduct which constitutes a material
      violation of a significant Company policy or the Company's Code of
      Ethics, including, without limitation, violation of policies relating to
      discrimination, harassment, use of drugs and alcohol and workplace
      violence; or
    

    
       v.  Widmer has repeatedly refused to obey lawful directions of
      Company's Board of Directors.
    

    
      d.   “Good Reason” shall mean:
    

    
      
        

        

      

      
        
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      i.  a material change in Widmer’s duties, responsibilities, position or
      title;
    

    
      ii.  Company is declared bankrupt; or a receiver is appointed if the
      Company ceases business operations; and
    

    
      iii.  Company’s material breach of any provision of this Agreement,
      which breach is not cured by Company within fifteen (15) days following
      its receipt of a notice from Widmer of such breach.
    

    
      6.  Change in Control.  In the event of any Change in
      Control of Company following the Effective Date, this Agreement shall
      continue in effect, except that Widmer shall have the option to resign
      his employment upon notice to Company of not less than thirty (30) days
      and he shall receive compensation and severance pay in accordance with
      paragraph 5.a.
    

    
      a.  A “Change in Control” shall mean:
    

    
      i.  the completion of any sale, transfer, merger or consolidation of
      Company with any other organization if the shareholders of Company
      before the transaction own less than fifty percent (50%) of the equity
      securities of the organization after the transaction; or
    

    
      ii.  the sale or other disposition of all or substantially all of the
      assets of Company.
    

    
      7.  Notice.  Every notice required by the terms of this
      Agreement shall be in writing and sent to the following parties:
    

    
    	
           
        	
           
        	
          If to Widmer:
        	
          Mr. Kurt R. Widmer
        
	

        	

        	

        	
          929 N. Russell Street
        
	

        	

        	

        	
          Portland, Oregon 97227
        
	

        	

        	

        	
           
        
	

        	

        	
          With a copy to:
        	
          Victor J. Kisch
        
	

        	

        	

        	
          900 S.W. Fifth Avenue, Suite 2600
        
	

        	

        	

        	
          Portland, Oregon 97204
        
	

        	

        	

        	
          Fax: (503) 220-2480
        
	

        	

        	

        	
          E-mail: vkisch@stoel.com
        
	

        	

        	

        	
           
        
	

        	

        	
          If to Company:
        	
          Craft Brewers Alliance, Inc.
        
	

        	

        	

        	
          929 N. Russell Street
        
	

        	

        	

        	
          Portland, Oregon 97227
        

    

    
      8.  Governing Law.  The validity, construction and
      performance of this Agreement shall be governed by the laws of the state
      of Oregon.
    

    
      9.  Death or Disability.  Widmer’s employment shall
      terminate automatically on the date of Widmer’s death or disability.  In
      that event, Company shall pay to Widmer or his estate or legal guardian,
      as applicable, Widmer’s base salary as of the date of termination for a
      period of two (2) years following such termination plus accrued vacation
      pay, plus Widmer’s bonus pro-rated to the date of termination.  Subject
      to the provisions of Section 10, if Widmer's employment terminates by
      reason of his death or Widmer dies within two (2) years following his
      termination by reason of disability, the foregoing amount (to the extent
      not previously paid) will be paid in a lump sum within sixty (60) days
      of his death.  Widmer shall be disabled if, for a period of at least six
      (6) consecutive months, he is unable to perform the essential functions
      of his position with or without reasonable accommodation.  If Widmer’s
      employment terminates by reason of his disability, his employment
      termination date shall be deemed to be the last day of the six-month
      period described above.
    

    
      
        

        

      

      
        
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      10.   Deferred Severance.  The amounts required to be
      paid to Widmer under Sections 5(a), 6 and 9 shall be paid to Widmer as
      soon as practicable following the occurrence of the event that entitles
      Widmer to such payments, but in any event no later than sixty (60) days
      following such termination event; provided, however, that if Widmer at
      the time of his separation from service with Company is a "specified
      employee" within the meaning of Section 409A(a)(2)(B)(i) of the Internal
      Revenue Code of 1986, as amended (the "Code"), such amounts shall
      instead be paid six months after his separation from service to the
      extent necessary so that none of such amounts will be subject to the
      additional income tax provided for in Section 409A(a)(1)(B)(i) of the
      Code (any amounts the payment of which is so deferred will be referred
      to as the "Deferred Severance").
    

    
      11.  Arbitration.  Any dispute concerning the
      interpretation, construction, breach or enforcement of this Agreement or
      arising in any way from Widmer’s employment with Company or the
      termination of Widmer’s employment shall be submitted to confidential
      final and binding arbitration.  Such arbitration is to be before a
      single arbitrator in Portland, Oregon.  Selection of an arbitrator and
      adjudication of the dispute shall be conducted under the then current
      rules of the Arbitration Service of Portland, Inc. applicable to
      employment disputes.  Each party shall bear one-half of the cost of such
      arbitration and shall bear its own attorneys’ fees.  Judgment on the
      award rendered may be entered in any court of competent jurisdiction.
    

    
      12.  Construction.  Wherever possible, each provision
      of this Agreement, including without limitation the arbitration
      provision, shall be interpreted in such manner as to be effective and
      valid under applicable Oregon law, but if any provision of this
      Agreement shall be prohibited by Oregon law or be deemed invalid or
      unenforceable, such provision shall be modified or eliminated only to
      the extent of such prohibition, invalidity or unenforceability without
      invalidating the remainder of such provision or the remaining provisions
      of this Agreement, which shall remain in effect according to their terms.
    

    
      13.  Waivers.  No failure or delay on the part of
      either party to exercise any right or remedy shall operate as a waiver.
    

    
      14.  Assignment.  This Agreement shall be binding upon
      and inure to the benefit of Company and its successors and assigns, and
      shall be binding upon Widmer and his administrators, executors, legatees
      and heirs.  This Agreement, which is a personal services contract, may
      not be assigned by Widmer.
    

    
      15.  Modification.  This Agreement shall not be
      modified or amended except by a written instrument signed by the parties
      hereto.
    

    
      
        

        

      

      
        
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      16.  Entire Agreement.  This Agreement constitutes the
      entire agreement and understanding between the parties in reference to
      the matters addressed herein.  This Agreement replaces and supersedes
      all prior and contemporaneous employment agreements or understandings of
      the parties, including those between Widmer and Widmer Brothers Brewing
      Company.  It is expressly understood that the parties also have entered
      or will enter into a Non-Competition/Non-Solicitation Agreement as
      contemplated by the Agreement and Plan of Merger dated as of November
      13, 2007, as it may be amended from time to time, between Redhook and
      Widmer Brothers Brewing Company.  The provisions of this Agreement shall
      not be construed for or against any party, as the parties are
      sophisticated and have had the opportunity to engage legal counsel.
    

    
      17.   Good Faith and Fair Dealing.  The parties agree
      to act in good faith and to deal fairly with one another in the
      interpretation, execution, performance and implementation of the terms
      and provisions of this Agreement.
    

    
      IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
      the Effective Date.
    

    

    

    
    	
          /s/ Kurt R. Widmer
        	
           
        	
          Date: June 30, 2008
        	

        
	
          Kurt R. Widmer
        	

        	

        	

        
	

        	

        	

        	
           
        
	

        	

        	

        	
           
        
	
          REDHOOK ALE BREWERY, INCORPORATED
        	

        	

        	

        
	

        	

        	

        	
           
        
	

        	

        	

        	
           
        
	
          
            /s/ Paul S. Shipman
          

        	

        	
          Date: June 30, 2008
        	

        
	
          Paul S. Shipman, Chief Executive Officer
        	

        	

        	

        

    

    

    

    
      
        

        

      

      
        
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       EXHIBIT A
    

    
      CRAFT BREWERS ALLIANCE, INC.

Responsibilities
of
      the
Chairman of the Board

    

    
      POSITION SUMMARY:
    

    
      Assumes the responsibility of providing leadership, direction, and
      motivation to ensure that the viability and overall performance of Craft
      Brewers Alliance, Inc. ("CBAI"), is maintained at the highest possible
      level commensurate with the objectives set forth in its strategy and
      mission statement. Presides at all meetings of the Board of Directors.
      Provides leadership to the Board in reviewing and deciding upon matters
      which exert major influence on the manner in which CBAI's business is
      conducted. Acts in a general advisory capacity to the Chief Executive
      Officer(s) and other officers in all matters concerning the interests
      and management of CBAI. Performs such duties as may be conferred by law
      or assigned by the CEO(s) or the Board. Represents CBAI to its
      customers, the financial community, and the general public.
    

    
      POSITION RESPONSIBILITIES:
    

    
      Prepares agendas for and convenes and conducts regular and special
      meetings of the Board of Directors.
    

    
      Gives counsel and directs through the CEO(s) and other senior officers
      activities of CBAI to ensure that quality, profit, service, and
      efficiency objectives are being maintained. Monitors corporate strategy
      execution status and performance.
    

    
      Reviews major activities and plans with the CEO(s) to insure conformity
      with the Board’s views on corporate policy.
    

    
      Possesses the same powers as the CEO(s) to sign all certificates,
      contracts, and other instruments which may be authorized by the Board.
    

    
      Exercises all powers and discharges all the duties of the CEO, except as
      may be limited by resolution of the Board of Directors, upon that
      individual's absence or inability to act.
    

    
      Participates in outside activities which will enhance corporate prestige
      and fulfill CBAI's public obligations as a member of industry and the
      community.
    

    
      Carries out special assignments in collaboration with the CEO(s) or
      Board of Directors.
    

    
      Counsels collectively and individually with members of the Board,
      utilizing their capacities to the maximum extent practicable to benefit
      CBAI.
    

    
      
        

        

      

      
        
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      Presides at all meetings of the shareholders and participates as
      appropriate in all standing committees.
    

    
      Following consultation with the CEO(s) and appropriate board committees,
      makes recommendations for the election of officers by the Board of
      Directors and such recommendations shall be given deference.
    

    
      Following consultation with the CEO(s) and appropriate board committees,
      presents recommendations for proposed changes in major corporate
      policies to the Board for action and such recommendations shall be given
      deference.
    

    
      Develops and maintains relationships with Anheuser-Busch executives,
      with Anheuser-Busch leading wholesalers and with industry-related
      vendors.
    

    
      Travels nationally for market visits, both on and off premises, to
      market and promote CBAI's portfolio of beer brands and to maintain trade
      relationships.
    

    
      Appears in advertising both image and voice and maintains relationships
      with print, TV, and radio media.
    

    
      Develops and maintains relationships with key politicians, lobbyists,
      and entities at the Federal, State, County, and City levels.
    

    
      Acts as a role model in support of a highly functional corporate
      culture. Exemplifies the philosophy that only excellence in job
      performance and beer quality is acceptable.
    

    
      Participates in maintaining CBAI’s high quality hiring philosophy.
    

    
      Participates as an active member of the Oregon Brewers Guild and brewing
      trade associations.
    

    

    

    
      2Exhibit 10.3
    

    
      [Redhook Ale Brewery Letterhead]

June 30, 2008

    

    
      Terry Michaelson
Craft Brands Alliance LLC
929 North Russell Street
Portland,
      OR 97227

Dear Terry:
    

    
      As you know, Widmer Brothers Brewing Company has agreed to merge into
      Redhook Ale Brewery, Incorporated (the “Merger”), and on the closing
      date of the Merger (the "Effective Date"), the surviving corporation
      will be named Craft Brewers Alliance, Inc. (the "Company").  The purpose
      of this letter is to confirm our understanding about your employment as
      the Co-Chief Executive Officer of the Company.  As of the Effective
      Date, this letter will supersede your existing Employment Agreement with
      Craft Brands Alliance LLC; provided, however, that any Long Term Bonus
      (as such term is used in your existing Employment Agreement) earned
      through December 31, 2007, will become fully vested as of the Effective
      Date and will continue to be paid consistent with the past practice of
      Craft Brands Alliance LLC and in accordance with the payment schedule
      attached as Exhibit A.
    

    
      You will be an “at-will” employee.  Our mutual agreement regarding your
      salary, severance and other benefits and obligations, beginning as of
      the Effective Date, is set forth below.
    

    
      Compensation and Benefits
    

    
      Your annual base salary will initially be $215,000 (before standard tax
      withholdings and other payroll deductions).  Your base salary level will
      be reviewed annually for adjustment beginning January 1, 2009 by the
      Compensation Committee and its recommendation will be submitted to the
      Company's Board of Directors for approval.  In addition, you are
      entitled to participate in all of the Company’s employee benefit
      programs for which you are eligible, including a long-term incentive
      plan for executive officers to be developed by the Compensation
      Committee of the Board.
    

    
      You will be eligible for a yearly bonus, such bonus to be approved by
      the Board on recommendation of the Compensation Committee.  We
      anticipate that a portion of your bonus will be discretionary, and a
      portion will be paid upon achieving certain targets approved by the
      Compensation Committee or the Board.  For 2008, your target bonus will
      be 40% of base salary.  No bonus will be payable under your existing
      Employment Agreement with respect to services during 2008 except to the
      extent paid prior to the Effective Date.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      Severance
    

    
      In the event that your employment with the Company is terminated by the
      Company for any reason other than “for cause”, the Company will continue
      to pay you your then base salary for a period of months (the “Severance
      Period”) equal to the lesser of (a) the number of full years of service
      you have accrued with the Company, including time spent at Widmer
      Brothers Brewing Company and Craft Brands Alliance LLC, or (b) 24
      months. In addition, the Company will promptly 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. The Company will
      also continue to provide you, for the Severance Period or 18 months,
      whichever is less, 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.  Additionally, 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 Anheuser-Busch, Incorporated, your salary continuation
      payments will terminate as of the effective date of such employment or
      association.  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 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.
    

    
      If there is a substantial adverse change in the nature or status of your
      title, position, duties, or reporting responsibilities as an executive
      of the Company, you have the option to resign and receive the same
      severance and health benefits as if you were terminated not "for cause"
      calculated at the base salary in effect prior to such adverse change in
      your position with the Company. This option will expire, if not
      previously exercised, at the close of business on the 45th
      calendar day following (a) your receipt of written notice from the
      Company of the substantial adverse change in your title, position,
      duties, or reporting responsibilities or (b) your delivery of written
      notice to the Company that you believe a substantial change in your
      title, position, duties, or reporting responsibilities has occurred.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      The Company may 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 any
      severance payments or other benefits other than those required by law or
      provided to employees generally.
    

    
      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
      senior executives of the Company.
    

    
      We appreciate your continued efforts on behalf of the Company, and look
      forward to having you as a member of our team for years to come.
    

    
      Sincerely,
    

    
      /s/ Paul S. Shipman
    

    
      Paul Shipman
Chief Executive Officer

    

    
      Acknowledged and Agreed:

__/s/ Terry Michaelson__________________
Terry
      Michaelson

Date: June 30, 2008

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      EXHIBIT A

Long Term Bonus Payments
(Terry
      Michaelson)

    

    
    	
          1.
        	
          2009 Aggregate Payment:
        	
           
        	
          $39,515
        
	
          2.
        	
          2010 Aggregate Payment:
        	

        	
          $35,777
        
	
          3.
        	
          2011 Aggregate Payment:
        	

        	
          $16,013

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