FORM OF NONQUALIFIED OPTION AGREEMENT

THIS NONQUALIFIED OPTION AGREEMENT (this "Agreement") is entered into effective as of ______________ (the "Grant Date"), by CRAFT BREW ALLIANCE, INC., a Washington corporation (the "Company"), and _____________________________ (the "Optionholder").

A.    The Company has adopted the 2014 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 Nonqualified 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.

1.    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 "for cause" (as defined in Section 14.4 of the Plan; referred to herein as "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 (_________________).

2.    Exercisability. Except as specified below and in Section 5.5 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 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 5.5 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.

3.    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)    by withholding Shares issuable to the Optionholder upon exercise of the Option with a Fair Market Value on the date of delivery equal to the aggregate Purchase Price of the Shares as to which the Option is exercised;

(iv)     by 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 Purchase Price (and withholding taxes, if applicable) 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 Purchase Price and withholding taxes due, provided that the Optionholder is not a Reporting Person; or

(v)    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.

4.    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. In no event will the amount withheld exceed the minimum amount of tax required to be withheld by law in connection with exercise of the Option. Payment may be in (a) cash, (b) shares of Common Stock otherwise owned by the Optionholder, duly endorsed for transfer, with a Fair Market Value equal to the sums to be withheld, (c) Shares issuable to the Optionholder upon exercise of the Option with a Fair Market Value equal to the sums to be withheld, or (d) any combination of the foregoing methods of payment; provided that, with respect to clauses (b) and (c), the Committee may, at any time in its sole discretion, suspend or terminate the use of those methods of satisfying the tax withholding obligation upon notice to the Optionholder.

5.    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 execute from time to time such additional documents as the Company may reasonably require in order to effectuate the purposes of the Plan and this Agreement.

6.    Clawback/Recovery. Any compensation paid to the Optionholder under the Option may be subject to recoupment in accordance with any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company's securities are listed or quoted or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law, including the Sarbanes-Oxley Act of 2002. The Optionholder agrees to promptly repay any such compensation as directed by the Company under any such clawback.

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.