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Compensation and Benefits
 1.
    
    Your base salary will be $6,153.85 per pay period ($160,000 per annum), payable bi-weekly in
arrears, by direct bank transfer.
 2.
    
    You will be eligible to participate in the Companys Officer Incentive Compensation Bonus
Plan (OICP), which is explained further in this letter.
 3.
    
    You will be eligible to receive restricted stock awards based on both performance and
service, which is explained further in this letter.
 4.
    
    Your first annual performance review is scheduled for early 2007 consistent with the
companys annual performance review process and timeline. Interim performance reviews are
scheduled at your managers discretion.5.
    
    Your monthly car allowance will be $575.00.
 6.
    
    Group medical coverage through Regence Blue Shield. Vision and dental coverage via the
companys 60% reimbursement program. All coverage begins the first calendar day of the first
month after 90 days of employment.
  The Pyramid Breweries 2006 Corporate
and Operations Incentive Compensation Program is governed by the program document.
    
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7.
    
    You will earn 160 hours of vacation your first year of service which can be used as earned.
Subsequent vacation will be earned according to this vacation accrual schedule. You will earn
40 hours of sick leave each year of service (up to a maximum of 160 hours). Pyramid Breweries
Inc. also observes eight paid holidays each year.
   10.
    
    This offer is subject to your ability to begin work no later than September 25, 2006.
Employment is also subject to you passing our pre-employment drug test as well as a reference
check.
        
  The Pyramid Breweries 2006 Corporate and Operations Incentive Compensation Program is governed by the program document.
    
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Performance Based Incentive Program (OICP)
   
    
    40% of annual base salary if the company meets the Corporate Target(s)
   The Pyramid Breweries 2006 Corporate and Operations Incentive Compensation Program is governed by the program document.
    
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Performance Incentive Plan (PIP)
    The Pyramid Breweries 2006 Corporate and Operations Incentive Compensation Program is governed by the program document.
    
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Restricted Stock Agreement
  I.
    
    Base Award. You will be granted a stock award for
20,000 shares on January 1, 2007. As more particularly set forth in the
applicable Award Agreement, (A) these shares will be subject to forfeiture in
the event your employment with the Company terminates under certain
circumstances, (B) such forfeiture restrictions will lapse (i.e., the shares
will vest) in 20% installments (each, an Annual Installment) beginning on
January 1, 2008 and on the next four anniversaries of that date; and (C) after
December 31, 2007, if your employment is terminated by the Company without
Cause or by you for Good Reason, or as a result of your death or Disability
(all as defined below) then the forfeiture restrictions will lapse with respect
to a prorated portion of the Annual Installment for the year in which such
termination occurs based on the date your employment is terminated;II.
    
    Annual Performance Awards. You will be entitled to
receive the following equity compensation awards (each, a Performance Award)
based on the Companys achievement of certain performance goals as follows:
     The Pyramid Breweries 2006 Corporate and Operations Incentive Compensation Program is governed by the program document.
    
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The Pyramid Breweries 2006 Corporate and Operations Incentive Compensation Program is governed by the program document.
    
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Termination Provision:
 Without Cause or Good Reason:
 By Company for Cause:
 Death:
 Permanent Disability:
 Termination Payments:
 Termination Without Cause:
   The Pyramid Breweries 2006 Corporate and Operations Incentive Compensation Program is governed by the program document.
    
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All Other Terminations
   /s/ Scott Barnum
    
    9/25/06Scott Barnum
    
    DateChief Executive OfficerPyramid Breweries/s/ Michael OBrien
    
    9/25/06Michael OBrien
    
    Date
 The Pyramid Breweries 2006 Corporate and Operations Incentive Compensation Program is governed by the program document.
    
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