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                                                                   Exhibit 10.25

                     AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

      This Amendment No.1 to the Employment Agreement between John Lennon
("Executive") and Pyramid Breweries Inc., a Washington corporation (the
"Company") dated effective July 16, 2004 (the "Agreement") is dated and made
effective March 29, 2005.

1.    Amendment to Paragraph 5(c) of Agreement. Pursuant to paragraph 25 of the
Agreement, this Amendment No. 1 is being executed by Executive and the Company
for the purpose of amending paragraph 5(c) of the Agreement in its entirety to
read as follows, and all other provisions of the Agreement shall remain in full
force and effect:

      (c)   Stock Awards. Subject to approval by the Company's Compensation
      Committee, the Executive will be granted stock awards or stock units for
      up to 350,000 shares of the Company's Common Stock on the following terms:

            (i)   Annual Awards. Executive will be granted stock awards or stock
            units for 35,000 shares on each of January 1, 2006 and the next four
            anniversaries of that date; provided, however, that if Executive's
            employment is terminated by the Company without Cause or by
            Executive for Good Reason, or as a result of Executive's death or
            Disability (all as defined below), during 2005, Executive will
            receive the stock award that Executive would have been entitled to
            receive on January 1, 2006, and during any other year, Executive
            will receive a prorated portion of the relevant annual award as of
            the date Executive's employment is terminated;

            (ii)  Annual Performance Awards. Executive will be granted stock
            awards or stock units for an additional 35,000 shares based on the
            Company's achievement of certain performance goals as follows;
            provided that if Executive's employment is terminated by the Company
            without Cause or by Executive for Good Reason, or as a result of
            Executive's death or Disability (all as defined below), during 2005,
            Executive will receive the stock award that Executive would have
            been entitled to receive on January 1, 2006 as if the applicable
            performance goal had been met, and during any other year, Executive
            will receive a prorated portion of the relevant annual performance
            award as set forth below as if the relevant annual performance goal
            had been reached, prorated to the date Executive's employment is
            terminated and granted as of the date Executive's employment is
            terminated:

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                  (A)   On January 1, 2006, if the Company achieves an increase
                  in return on average net equity for the year ending December
                  31, 2005, of at least 200 basis points as compared to return
                  on average net equity for the year ending December 31, 2004;

                  (B)   On January 1, 2007, if the Company achieves an increase
                  in return on average net equity for the year ending December
                  31, 2006, of at least 200 basis points as compared to return
                  on average net equity for the year ending December 31, 2005;

                  (C)   On January 1, 2008, if the Company achieves an increase
                  in return on average net equity for the year ending December
                  31, 2007, of at least 200 basis points as compared to return
                  on average net equity for the year ending December 31, 2006

                  (D)   On January 1, 2009, if the Company achieves an increase
                  in return on average net equity for the year ending December
                  31, 2008, of at least 200 basis points as compared to return
                  on average net equity for the year ending December 31, 2007;
                  and

                  (E)   On January 1, 2010, if the Company achieves an increase
                  in return on average net equity for the year ending December
                  31, 2009, of at least 200 basis points as compared to return
                  on average net equity for the year ending December 31, 2008.

      The awards granted to Executive pursuant to this paragraph 5(c) will be in
      the form of stock awards, provided that Executive can elect instead to
      receive an award in the form of stock units by delivering to the Company
      written notice to that effect no later than the 10th business day prior to
      the grant date for that award. The stock awards or stock units will be
      granted either under the Company's 2004 Equity Incentive Plan (the
      "Plan"), or outside of the Plan, but subject to the terms and conditions
      of the Plan. The stock awards or stock units will be subject to a
      forfeiture restriction that will lapse on the first anniversary of their
      respective grant dates. The stock awards or stock units will be evidenced
      by award agreements in substantially the form attached hereto as Exhibit A
      (the "Stock Agreement"), and will be subject to the terms and conditions
      set forth in the Stock Agreement, the Plan and this agreement.
      Notwithstanding any contrary provisions of the Plan or any successor
      incentive plan, no stock award or stock units that have become vested
      under this agreement shall be subject to forfeiture thereafter. The
      forfeiture restrictions will lapse on an accelerated basis under certain
      circumstances in the event of a Company Transaction or Change in Control
      (both as defined in the Plan) or
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      upon a termination of Executive's employment by the Company without Cause
      (as defined below), by Executive for Good Reason (as defined below) or as
      a result of Executive's death or Disability. The Company shall use its
      best efforts to obtain Form S-8 registration with respect to the shares of
      the Company's Common Stock issuable pursuant to this agreement and to
      maintain such registration for as long as Executive holds such shares.

2.    Counterparts. This Amendment No. 1 may be executed in any number of
counterparts, each of which shall be an original and all of which, taken
together, shall constitute a single agreement.

      DATED as of the date first written above.

                                        EXECUTIVE:

                                        ----------------------------------------
                                        John Lennon

                                        COMPANY:

                                        PYRAMID BREWERIES INC.

                                        By
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                                          Name:
                                               ---------------------------------
                                          Title:
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