EX-10.1






EXHIBIT 10.1




The Boston Beer Company, Inc.

Restated Employee Equity Incentive Plan






1. Purpose; History.



(a) The purpose of The Boston Beer Company, Inc. (the “Company”, which term for purposes of
eligibility to participate shall include all of the affiliates of The Boston Beer Company, Inc.,
including Boston Beer Corporation, a Massachusetts corporation) Employee Equity Incentive Plan (the
“Plan”) is to provide additional incentive for management and other employees of the Company,
selected for participation in the Plan, to promote the growth and success of the Company’s
business, and to reward them for such growth and success, by making available to them shares of the
Company’s Class A [Limited Voting Rights] Common Stock ($0.01 par value) (“Class A Stock”).



(b) The Plan was originally adopted on November 20, 1995. As adopted, the Plan provided for
Management Options, Discretionary Options and Investment Shares. The maximum number of shares of
the Company’s Class A Common Stock, $0.01 par value per share (the “Class A Stock”), originally
authorized for issuance under the Plan was 1,687,500 shares. On October 20, 1997, the Board of
Directors of the Company (the “Board”) and the sole holder of the Company’s outstanding Class B
Common Stock, $0.01 par value per share (the “Class B Stock”), amended the Plan to provide for an
additional 1,000,000 authorized shares of Class A Stock and, on December 19, 1997, the Board
further amended the Plan to delete the provisions that had permitted the grant of Management
Options at a per share exercise price of $0.01 and to provide for a shift from the Board’s
Compensation Committee (the “Compensation Committee”) to the full Board authority to act under the
Plan, based on recommendations brought to it by the Compensation Committee. On December 14, 2001,
the Plan was amended to provide for an additional 1,000,000 authorized shares of Class A Stock.




(c) On December 20, 2005, the Board further amended the Plan, formally striking the
discontinued Management Options provisions and inserting the Board’s right to grant shares of
restricted stock (“Restricted Stock Grants”). On December 19, 2006, the Board further amended the
Plan to provide for an additional 500,000 authorized shares of Class A Stock, to change the method
used in valuing shares of Class A stock for purposes of the Plan and to grant the Board discretion
to waive eligibility requirements in granting Discretionary Options and Restricted Stock Grants.
On December 21, 2007, the Plan was amended to provide for an additional 1,000,000 authorized
            shares of Class A Stock. October 30, 2009, the Plan was amended to provide for an additional
812,500 authorized shares of Class A Stock. On October 8, 2013, the vesting provisions with
respect to Investment Shares were amended. On October 8, 2014, the Plan was restated to reflect
formally certain procedures and practices followed with respect to Restricted Stock Grants and
Discretionary Options. On December 9, 2015, the Plan was amended to provide for an additional
700,000 authorized shares of Class A Stock. On December 20, 2017, the Plan was amended to: (i)
extend the time within which Discretionary Options may be exercised following the death of an
Optionee for Discretionary Options granted on and after January 1, 2018; and (ii) clarify that
            shares issued hereunder may be subject to additional Company policies in addition to the terms of
this Policy.



2. Shares Covered By the Plan.



The maximum number of shares of Class A Stock that may be issued under the Plan is 6,700,000
shares, subject to adjustment in accordance with Section 11 of the Plan. Shares of Class A Stock
which are the subject of Restricted Stock Grants (as defined in Section 5) or Discretionary Options
(as defined in Section 6) or Management Options granted under the Plan prior to its amendment on
December 19, 1997, which lapse unexercised or Investment Shares which do not become Vested Shares
(as defined in Section 7) and are repurchased by the Company pursuant to Section 7(g), or which are
redeemed by the Company pursuant to Section 7(f) shall again be available for issuance hereunder.
The maximum number of such shares that may be granted hereunder to an individual recipient per
calendar year shall not exceed 1,000,000.



3. Administration of the Plan.



The Plan shall be administered by the Board. In its sole discretion, the Board shall have the
power to:



(i) select employees to be granted Restricted Stock Grants pursuant to Section 5 of the Plan
and Discretionary Options pursuant to Section 6 of the Plan;



(ii) authorize Restricted Stock Grants and the grant of Discretionary Options, pursuant to
Sections 5 and 6 of the Plan;



(iii) construe the Plan;



(iv) determine all questions arising under the Plan;



(v) including as hereinafter provided, delegate to the Compensation Committee of the Board or
one or more officers of the Company power to make and administer grants to different categories of
employees of the Company (in which case such delegatee(s) shall be considered the “Board” hereunder
for purposes of such grants); and



(vi) adopt and amend such rules and regulations for the administration of the Plan as it may
deem desirable.



The decision of the Board as to all questions of interpretation and application of the Plan
shall be final and binding on all persons.



4. Eligibility.



Employees eligible to participate in the Plan (“Eligible Employees”) are those employees of
the Company who:



(i) except as otherwise determined by the Board on the recommendation of the Board’s
Compensation Committee, have been employed by the Company for at least one (1) year or whose
earlier participation is approved by the Board in connection with his or her becoming an employee;



(ii) have entered into an Employment Agreement (the “Employment Agreement”) with the Company
containing such terms and conditions as the Board in its discretion may from time to time require;
and



(iii) In the case of Restricted Stock Grants and Discretionary Options, have been recommended
to the Board by the Board’s Compensation Committee, taking into account each prospective grantee’s
or optionee’s level of responsibility, performance, potential and such other considerations as the
Board or such Committee deems appropriate.



5. Restricted Stock Grants.



The Compensation Committee, subject to ratification by the Board and the holders of a majority
of the Class B Stock, may, from time to time, grant to Eligible Employees shares of Class A Stock,
subject to such vesting criteria and other terms and conditions, as the Board shall determine.
Except as otherwise determined from time to time by the Board in connection with specific
Restricted Stock Grants, Restricted Stock Grants shall vest over the period of five (5) years after
the grant date at the rate of twenty percent (20%) of the shares covered thereby per year, so long
as the recipient continues to be employed by the Company as of each vesting date. All Restricted
Stock Grants shall be reflected in a restricted stock agreement, setting forth the applicable
vesting criteria, terms and conditions, and otherwise in a form approved from time to time by the
Board.



6. Discretionary Options.



(a) The Compensation Committee, subject to ratification by the Board and the holders of a
majority of the Class B Stock, may also, from time to time, grant to Eligible Employees
(individually, an Optionee and collectively, “Optionees”) options (“Discretionary Options”) to
acquire shares of Class A Stock (“Option Shares”), on such terms and conditions, including exercise
price (which shall not be less than the fair market value of such shares as of the date of grant),
as the Board shall determine.



(b) Except as the Board may from time to time otherwise determine with respect to a particular
Discretionary Option, each Discretionary Option shall be set forth in an Option Agreement,
containing such terms and conditions as the Board in its discretion may from time to time require,
which shall include in any event the following terms, conditions and restrictions:




(i) Except as otherwise determined from time to time by the Board in connection with
specific options, the right to exercise each Discretionary Option shall vest over the period
of five (5) years after the date on which the Option was granted (the “Option Date”), at the
rate of twenty percent (20%) of the Option Shares covered thereby per year, so long as the
Optionee continues to be employed by the Company as of each vesting date, provided that (1)
the Board may in its discretion permit accelerated vesting, (2) the Board may tie
exercisability to performance criteria determined by the Board in its discretion, and (3)
the Board may tie exercisability to compliance by an Optionee with any applicable
restrictive covenants.




(ii) Except as determined by the Board from time to time, each Discretionary Option
shall terminate on the earliest to occur of the expiration of: (1) ten (10) years after the
Option Date; (2) ninety days after the Optionee ceases to be an employee of the Company,
other than by reason of his or her death; or (3) one (1) year after the Optionees ceases to
be an employee because of his or her death.



7. Performance-Based Measures for Certain Grants.



The performance measure(s) to be used for Restricted Stock Grants or Discretionary Options
granted to senior executive employees that are designed to qualify for the performance-based
compensation exception under Section 162(m) of the Internal Revenue Code of 1986 as amended shall
be chosen from among:



(a) Earnings per share;



(b) Net income (before or after taxes);



(c) Cash flow (including, but not limited to, operating cash flow and free cash flow);



(d) Gross revenues or Gross Volume;



(e) Depletions;



(f) Gross Profit or Gross Margins;



(g) EBITDA;



(h) Percentage increases in any of the above measures; and



(i) Any of the above measures compared to peer or other companies. Performance measures may be
set either at the corporate level, subsidiary level, division level, or business unit level.



8. Purchase of Investment Shares.



Eligible Employees may also become “Participants” in the Plan and invest up to ten percent
(10%) of their most recent annual compensation (base salary and bonus, if any) in whole shares
(“Investment Shares”) of Class A Stock. The number of Investment Shares which can be purchased by
each Participant will be computed by dividing 10% of the Participant’s eligible compensation up to
a maximum of $175,000 by the Investment Share Value (as defined in Section 7(c)). After a
Participant has been employed by the Company for at least two (2) years, Investment Shares will be
issued at a discount from Investment Share Value based on length of service. The cost to the
Participant will be the Investment Share Value, discounted, if applicable, according to the
schedule in Section 7(c). For each full year Investment Shares are held after issuance and the
Participant remains employed with the Company, twenty percent (20%) will become fully vested,
except for those Participants who are age 64 or older, for whom one hundred percent (100%) of the
Investment Shares will become fully vested (“Vested Shares”). Investment Shares not yet vested
shall cease to vest upon the termination of a Participant’s employment with the Company, except as
otherwise then determined by the Board, unless such termination was because of death or disability,
whereupon such death or disability termination the Participant’s unvested Investment Shares shall
vest. Notwithstanding the foregoing, unvested Investment Shares outstanding at January 1, 2014
shall also vest upon the Participant’s attainment of age 65 while employed by the Company, and
Investment Shares issued to a Participant on or after January 1, 2014 who is age 64 or older shall
vest on the first anniversary of issuance if the Participant is still then employed by the Company.



(a) The maximum number of Investment Shares that may be issued to each Participant at any time
will be equal to ten percent (10%) of his or her most recent annual compensation (base salary and
bonus, if any) up to a maximum of $17,500, divided by the applicable Discounted Investment Share
Value then in effect under Section 7(c), below.



(b) The issuance price for Investment Shares will be based on the then Investment Share Value.
Investment Share Value shall be the closing price at which shares of Class A stock traded on the
New York Stock Exchange or on any other exchange on which such shares may be traded, on the day
next preceding the date of a Participant’s investment in Investment Shares, which ordinarily shall
be effective as of January 1 in each applicable year. The issuance price for Investment Shares will
be the “Discounted Investment Share Value”, determined based on discounts from Investment Share
Value, keyed to each Eligible Employee’s tenure with the Company.




Prior to 2 full years of employment, there will be no discount




After 2 full years of employment, the discount will be 20%




After 3 full years of employment, the discount will be 30%




After 4 full years of employment, the discount will be 40%



(c) Each Participant will be responsible for the withholding taxes payable on his or her W-2
earnings, including on the amount of taxable income realized by him or her by reason of the
purchase of Investment Shares at Discounted Investment Share Value, whether recognized at the time
of purchase or upon vesting.



(d) All Investment Shares which have not yet vested shall be held in escrow by an escrow agent
selected by the Board, pursuant to an Investment Share Escrow Agreement, in a form approved from
time to time by the Board.



(e) Each Participant who purchases Investment Shares and who is not subject to the provisions
of Section 16(b) of the 1934 Act shall have the right at any time to cause the Company to redeem
all, but not less than all, of the Investment Shares previously purchased by him or her but which
have not yet vested at a price equal to the lesser of (i) the Discounted Investment Share Value at
which the Shares were issued and (ii) the Investment Share Value, as of the date next preceding the
date on which the Investment Shares are tendered for redemption.



(f) In the event of the termination of the employment with the Company of any Participant who
holds Investment Shares, the Company shall have the right, but not the obligation, to redeem within
ninety (90) days after such termination any or all of such Investment Shares which are not Vested
Shares at a price, payable in cash, equal to the lesser of (i) the Discounted Investment Share
Value at which the Shares were issued and (ii) the Investment Share Value, as of the date next
preceding the date on which the Investment Shares are called for redemption.



9. Provisions Relating to Securities Act.



Notwithstanding any other provision of the Plan, the Company may delay the issuance of Option
Shares covered by the exercise of a Discretionary Option or any Restricted Stock Grant shares that
have vested or Investment Shares which have become Vested Shares (in any case, “Shares”) until one
of the following conditions shall be satisfied:



(i) Such Shares are at the time of issuance effectively registered under applicable federal
and state securities acts, as now in force or hereafter amended; or



(ii) Counsel for the Company shall have given an opinion, which opinion shall not be
unreasonably conditioned or withheld, that the issuance of such Shares is exempt from registration
under applicable federal and state securities acts, as now in force or hereafter amended.



Moreover, unless the Shares to be issued have been effectively registered under the Securities
Act of 1933, as amended (the “Act”), the Company shall be under no obligation to issue such Shares
unless the person to whom the Shares are to be issued shall first give written representation to
the Company, satisfactory in form and scope to the Company’s counsel and upon which in the opinion
of such counsel the Company may reasonably rely, that he or she is acquiring the Shares to be
issued to him or her as an investment and not with a view to or for sale in connection with any
distribution thereof in violation of the Act. The Company shall have no obligation, contractual or
otherwise, to any person to register under any federal or state securities laws any Shares issued
under the Plan to such person.



10. Expenses of the Plan.



All costs and expenses of the adoption and administration of the Plan shall be borne by the
Company, and none of such expenses shall be charged to any recipient of a Restricted Stock Grant,
Optionee or Participant.



11. No Contractual Right to Participate and No Right to Continued Employment.



Nothing in the Plan shall be deemed to give any employee of the Company, or his or her legal
representatives or assigns, or any other person claiming under or through him or her, any
contractual or other right to participate in the benefits of the Plan. Nothing in the Plan and no
action or grant thereunder shall be construed to constitute or be evidence of any agreement or
understanding, express or implied, on the part of the Company to employ or retain in its employ for
any specific period of time any recipient of a Restricted Stock Grant, Optionee or Participant. No
Discretionary Option shall give to the recipient any rights as a stockholder in the Company or any
rights in any Option Shares, except to the extent the Option has been exercised and Option Shares
issued.



12. Dilution and Other Adjustments.



In the event that the outstanding shares of Class A Stock are changed into or exchanged for a
different number or kind of shares or other securities of the Company or of another corporation by
reason of any reorganization, merger, consolidation, recapitalization, reclassification, stock
split-up, combination of shares, or dividends payable in capital stock, appropriate adjustment
shall be made in the number and kind of shares which may be issued under the Plan and as to which
outstanding Discretionary Options or portions thereof then unexercised shall be exercisable, to the
end that the proportionate interest of the Optionee shall be maintained as before the occurrence of
such event; such adjustment in outstanding Discretionary Options shall be made without change in
the total price applicable to the unexercised portion of such Discretionary Options and with a
corresponding adjustment in the exercise price per share.



13. Transferability.



No right or interest under the Plan of any Eligible Employee shall be assignable or
transferable, in whole or in part, either directly or by operation of law or otherwise, including,
but not by way of limitation, execution, levy, garnishment, attachment, pledge, bankruptcy or in
any other manner, other than by will or the laws of descent and distribution; and no such right or
interest of any Eligible Employee shall be subject to any obligation or liability of such Eligible
Employee. 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.



14. Withholding of Income Taxes.



The Company shall have the right to deduct from amounts otherwise payable by the Company to
any recipient of a Restricted Stock Grant, Optionee or Participant by way of salary or wages or
otherwise, any Federal, state or local taxes required by law to be withheld with respect to the
exercise of a Discretionary Option granted under the Plan or the purchase or vesting under the Plan
of Investment Shares or shares subject to a Restricted Stock Grant which results in taxable income
to the recipient of the Restricted Stock Grant, Optionee or Participant.



15. Rights Subject to Company Policies.



In addition to the terms and conditions outlined herein, Discretionary Options, Restricted
Stock Grants, or Investment Shares issued under the Plan and any transaction related thereto may
also be subject to the Company’s Insider Trading Policy, Executive Compensation Recovery Policy,
Ban on Hedging/Pledging Company Stock, or other similar policies established by the Company. The
Company will ensure that copies of such documents are readily available and accessible to all
employees.



16. Amendment and Termination of the Plan.



The Board, subject to the approval of the holders of a majority in interest of the Company’s
issued and outstanding Class B Stock, may at any time terminate, extend, or amend the Plan;
provided, however, that termination or amendment of the Plan shall not, without the consent of any
person affected thereby, modify or in any way affect any Restricted Stock Grant or Discretionary
Option granted, or Investment Shares purchased, prior to such termination or amendment.



Approved by the Board of Directors on the recommendation of the Compensation Committee and by the
sole holder of the Class B Common Stock of the Company on December 20, 2017, effective for grants
and issuances made effective on and after January 1, 2018.