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Sample Business Contracts

Stock Option Agreement [Incentive Stock Option] - Green Mountain Coffee Inc. and Robert D. Britt

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                           GREEN MOUNTAIN COFFEE, INC.
                             STOCK OPTION AGREEMENT
                          UNDER 1999 STOCK OPTION PLAN
                             INCENTIVE STOCK OPTION

                                 January 8, 1999


         AGREEMENT  entered into by and between Green Mountain  Coffee,  Inc., a
Delaware corporation with its principal place of business in Waterbury,  Vermont
(together with its subsidiaries, the "Company"), and the undersigned employee of
the Company (the "Optionee").

         The Company  desires to grant,  the Optionee an incentive  stock option
under the  Company's  1999 Stock Option Plan, as amended (the "Plan") to acquire
shares of the Company's Common Stock, par value $.10 per share (the "Shares").

         The Plan  provides  that each  option is to be  evidenced  by an option
agreement, setting forth the terms and conditions of the option.

         ACCORDINGLY,  in  consideration  of the  premises  and  of  the  mutual
covenants and agreements  contained herein,  the Company and the Optionee hereby
agree as follows:

         1.       Grant of Option.

         The Company  hereby  grants to the  Optionee  incentive  stock  options
(collectively, the "Option") to purchase all or any part of the number of Shares
shown at the end of this Agreement on the terms and conditions  hereinafter  set
forth.  This Option is intended to be treated as an incentive stock option under
Section 422 of the Internal Revenue Code of 1986, as amended (the "Code").

         2.       Purchase Price.

         The purchase  price  ("Purchase  Price") for the Shares  covered by the
Option  shall  be the  dollar  amount  per  Share  set  forth at the end of this
Agreement.

         3.       Time of Exercise of Option.

         This Option shall be first  exercisable as to 25% of the Shares on each
of the first four anniversary dates of this Agreement.

         To the extent  the  Option is not  exercised  by the  Optionee  when it
becomes exercisable, it shall not expire, but shall be carried forward and shall
be exercisable, on a cumulative basis, until the Expiration Date, as hereinafter
defined.

        4.       Term of Options; Exercisability.

         (a)      Term.

                                    (i) Each  Option  shall  expire  on the date
                           shown at the end of this Agreement  (the  "Expiration
                           Date"),  as  determined  by the Board of Directors of
                           the Company (the "Board").

                                    (ii)  Except as  otherwise  provided in this
                           Section  4,  if  the  Optionee's  employment  by  the
                           Company  is  terminated,  the  Option  granted to the
                           Optionee  hereunder shall terminate on the earlier of
                           ninety days after the date the Optionee's  employment
                           by the  Company  is  terminated,  or (ii) the date on
                           which the Option expires by its terms.

                                    (iii)  If  the   Optionee's   employment  is
                           terminated  by the  Company  for cause or because the
                           Optionee  is in breach of any  employment  agreement,
                           such Option will terminate on the date the Optionee's
                           employment is terminated by the Company.

                                    (iv)  If  the   Optionee's   employment   is
                           terminated  by the Company  because the  Optionee has
                           become  permanently  disabled  (within the meaning of
                           Section  22(e)(3)  of the Code),  such  Option  shall
                           terminate  on the  earlier  of (i) one year after the
                           date such  Optionee's  employment  by the  Company is
                           terminated,  or (ii)  the date on  which  the  option
                           expires by its terms.

                                    (v)  In  the  event  of  the  death  of  the
                           Optionee,  the Option  granted to such Optionee shall
                           terminate  on the  earlier  of (i) one year after the
                           date such  optionee's  employment  by the  Company is
                           terminated;  or (ii)  the date on  which  the  option
                           expires by its terms.

         (b)      Exercisability.

                                    (i)  Except  as  provided   below,   if  the
                           Optionee's  employment by the Company is  terminated,
                           the Option granted to the Optionee hereunder shall be
                           exercisable  only to the  extent  that  the  right to
                           purchase  shares under such Option has accrued and is
                           in effect on the date the  Optionee's  employment  by
                           the Company is terminated.

                                    (ii)  If  the   Optionee's   employment   is
                           terminated  by the  Company  because  he or  she  has
                           become  permanently  disabled,  as defined above, the
                           option  granted to the  Optionee  hereunder  shall be
                           immediately  exercisable  as to the  full  number  of
                           Shares  covered by such Option,  whether or not under
                           the  provisions  of Section 3 hereof  such Option was
                           otherwise exercisable as of the date of disability.

                                    (iii)  In  the  event  of the  death  of the
                           Optionee,  the Option granted to such Optionee may be
                           exercised  to  the  full  number  of  Shares  covered
                           thereby,  whether  or not  under  the  provisions  of
                           Section 3 hereof the  Optionee  was entitled to do so
                           at the  date of his or her  death,  by the  executor,
                           administrator  or  personal  representative  of  such
                           Optionee,  or by any person or persons  who  acquired
                           the  right to  exercise  such  Option by  bequest  or
                           inheritance  or  by  reason  of  the  death  of  such
                           Optionee.

         5.       Manner of Exercise of Option.

         (a) To the extent that the right to exercise the Option has accrued and
is in effect,  the option may be exercised in full or in part by giving  written
notice to the Company stating the number of Shares  exercised and accompanied by
payment in full for such Shares.  No partial  exercise may be made for less than
one hundred (100) full shares of Common  Stock.  Payment may be either wholly in
cash or in whole or in part in Shares already owned by the person exercising the
Option,  valued  at fair  market  value  as of the date of  exercise;  provided,
however,  that payment of the exercise price by delivery of Shares already owned
by the person  exercising  the Option may be made only if such  payment does not
result in a charge to earnings for financial  accounting  purposes as determined
by the  Board.  Upon such  exercise,  delivery  of a  certificate  for  paid-up,
non-assessable  Shares shall be made at the  principal  office of the Company to
the person  exercising  the option,  not less than thirty (30) and not more than
ninety (90) days from the date of receipt of the notice by the Company.

         (b) The  Company  shall at all  times  during  the  term of the  Option
reserve  and keep  available  such  number of Shares  as will be  sufficient  to
satisfy the requirements of the Option.

         6.       Non-Transferability.

         The  right  of  the  Optionee  to  exercise  the  option  shall  not be
assignable or transferable by the Optionee otherwise than by will or the laws of
descent and distribution, and the Option may be exercised during the lifetime of
the  Optionee  only by him or her. The Option shall be null and void and without
effect upon the  bankruptcy of the Optionee or upon any attempted  assignment or
transfer,  except as  hereinabove  provided,  including  without  limitation any
purported  assignment,  whether  voluntary  or  by  operation  of  law,  pledge,
hypothecation or other disposition contrary to the provisions hereof, or levy of
execution,  attachment,  trustee  process or similar  process,  whether legal or
equitable, upon the Option.

         7.       Representation Letter and Investment Legend.

         (a) In the event  that for any  reason  the  Shares  to be issued  upon
exercise of the Option shall not be effectively  registered under the Securities
Act of 1933,  as amended (the "1933 Act"),  upon any date on which the option is
exercised  in whole or in part,  the person  exercising  the Option shall give a
written  representation  to the Company in the form attached hereto as Exhibit 1
and the Company shall place an "investment legend",  so-called,  as described in
Exhibit  1,  upon any  certificate  for the  Shares  issued  by  reason  of such
exercise.

         (b) The Company shall be under no  obligation  to qualify  Shares or to
cause a registration statement or a post-effective amendment to any registration
statement to be prepared for the purposes of covering the issue of Shares.

         8.       Adjustments on Changes in Capitalization.

         Adjustments on changes in capitalization  and the like shall be made in
accordance with the Plan, as in effect on the date of this Agreement.

         9.       No Special Employment Rights.

         Nothing  contained in the Plan or this Agreement  shall be construed or
deemed by any person under any circumstances to bind the Company to continue the
employment  of the  Optionee  for the period  within  which  this  Option may be
exercised. However, during the period of the Optionee's employment, the Optionee
shall render  diligently  and  faithfully the services which are assigned to the
Optionee  from time to time by the  Board or by the  executive  officers  of the
Company and shall at no time take any action which directly or indirectly  would
be inconsistent with the best interests of the Company.

         10. Rights as a Shareholder.

         The Optionee shall have no rights as a shareholder  with respect to any
Shares  which may be  purchased  by exercise  of this option  unless and until a
certificate  or  certificates  representing  such  Shares  are duly  issued  and
delivered to the Optionee.  Except as otherwise  expressly provided in the Plan,
no  adjustment  shall be made for dividends or other rights for which the record
date is prior to the date such stock certificate is issued.

         11.      Withholding Taxes.

         Whenever  Shares are to be issued  upon  exercise of this  Option,  the
Company  shall have the right to require the Optionee to remit to the Company an
amount  sufficient  to satisfy  all  Federal,  state and local  withholding  tax
requirements  prior to the delivery of any certificate or certificates  for such
Shares.  The  Company  may agree to  permit  the  Optionee  to  withhold  Shares
purchased   upon  exercise  of  this  Option  to  satisfy  the   above-mentioned
withholding requirement.

         IN  WITNESS  HEREOF,  the  Company  has  caused  this  Agreement  to be
executed,  and the optionee has hereunto set his or her hand and seal, all as of
the day and year first above written.

GREEN MOUNTAIN COFFEE, INC.                             OPTIONEE

By:   /s/ Robert P. Stiller                             /s/ Robert D. Britt
      _____________________                             ________________________
      Robert P. Stiller                                 Robert D. Britt
      President
                                                        10,000
                                                        ________________________
                                                        Number of Shares

                                                        $5.625
                                                        ________________________
                                                        Purchase Price Per Share

                                                        January 8, 2009
                                                        ________________________
                                                        Expiration Date