Document:

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                                                                   Exhibit 10.31

                         RESTAURANT MANAGEMENT AGREEMENT

     This Restaurant Management Agreement (the "AGREEMENT") is effective as of
August 1, 2004, between PORTLAND BREWING CO., ("PBC") and PYRAMID BREWERIES INC.
("PMID").

                                    RECITALS

A.   PBC is lessee in possession of the property commonly known as the Alehouse,
     located at 2730 NW 31st Avenue Portland, OR 97210, sometimes referred to
     herein as "the Alehouse," under that certain sublease dated effective
     August 1, 2004 (the "Sublease").

B.   PBC holds the licenses and legal authority to operate and manage the
     Alehouse, including operation of a brewpub offering full food and beverage
     service to the guests and patrons of the Alehouse, under the laws of the
     State of Oregon, and any all implementing rules and regulations pertaining
     thereto (collectively, "LIQUOR LAWS").

                              TERMS AND CONDITIONS

1.   Management.

     1.1. PBC hereby retains PMID to supply staffing and on-site management of
          the Alehouse for PBC's dispensing alcoholic beverages at the Premises
          in compliance with all Liquor Laws. This Agreement shall extend to all
          areas covered by any beverage license of PBC at the Alehouse (the
          "PREMISES").

     1.2. PMID shall keep adequate books and records in connection with all
          business operations conducted on or from the Alehouse, and PBC may
          inspect such books and records at reasonable times during PMID's
          office business hours.

2.   Term; termination.

     2.1. The term of this Agreement shall be for five (5) years, and shall
          continue thereafter from year to year unless terminated as herein
          provided. Either party may terminate this Agreement upon thirty (30)
          days' prior written notice to the other, with or without cause.

     2.2. If either party breaches a provision of this Agreement, the
          non-defaulting party may terminate the Agreement upon written notice
          to the defaulting party.

     2.3. This agreement shall automatically terminate, without notice, upon
          expiration or earlier termination of the Sublease.

     2.4. This agreement shall automatically terminate upon the issuance to PMID
          of a license to operate a restaurant on the premises, but PMID shall
          not hold any license incompatible with the Sublease, or the Sublease
          (Brewery) and the Equipment Lease dated as of the date of this
          agreement.

3.   Use of premises. PMID shall have the right to come upon the Premises solely
     to manage PBC's operation of the Alehouse. PBC reserves the right to
     conduct its normal business activities on the Premises and to use the
     Premises for any purpose it deems advisable that is consistent with the
     Sublease. PBC shall have and maintain the exclusive control over the
     transportation, storage, distribution, possession, sale and service of all
     alcoholic beverages purchased, stored or sold at the Alehouse.

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4.   Insurance.

     4.1. PBC will furnish adequate public liability insurance and property
          damage insurance as it deems necessary or advisable to adequately
          protect against loss or damage from the claims of all persons who may
          be in, on or about the Premises, by the consent or sufferance of PMID
          or PBC. PMID shall reimburse PBC for the full cost of such insurance.

     4.2. Each party shall be solely responsible for its own acts and
          activities. PMID shall, using its own business judgment as to means,
          provide first-class management of PBC's operations at the Premises,
          and shall not act or hold itself out as an agent, joint venturer, or
          partner of PBC, or in any other capacity empowering it to bind PBC nor
          shall PBC act or hold itself out as an agent, joint venturer, or
          partner of PMID, or in any other capacity empowering it to bind PMID.

5.   Compensation.

     5.1. For all performance undertaken by PMID hereunder, PMID may retain for
          its own account twenty-five percent (25%) of Gross Receipts from PBC's
          operations at the Premises.

     5.2. "GROSS RECEIPTS" means revenues from the sales of food, alcoholic
          beverages and merchandise sold by PBC on the Premises, not including
          any taxes now or hereafter imposed upon, or measured by, such sales.
          PMID shall maintain and make available at all reasonable times to PBC
          customary and necessary records of all PBC's sales upon the Premises,
          retaining such records for at least four (4) years.

6.   Notice. All notices required under this Agreement shall be sent by
     certified U.S. mail to the parties addresses set out below:

     PBC:            Portland Brewing Co.
                     2730 NW 31st Ave
                     Portland, OR 97210

     With a copy to: Schwabe Williamson & Wyatt, P.C.
                     1211 SW Fifth Ave., Suites 1500-1900
                     Portland, OR 97204-3795
                     Attn: Darius Hartwell

     PMID:           Pyramid Breweries, Inc.
                     91 S. Royal Brougham Way
                     Seattle, WA 98134

7.   Binding Effect. This Agreement shall be binding upon and inure to the
     benefit of the parties hereto and their respective successors and assigns
     where permitted herein or by law.

8.   Choice of Law. This instrument shall be construed under and in accordance
     with the laws of Oregon applicable to contracts made and principally to be
     performed in said state, and all obligations of the parties created
     hereunder are performable in Portland, Oregon.

9.   Waiver. No waiver by the parties hereto of any default or breach of any
     term, condition, or

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     covenant of this Agreement shall be deemed a waiver of any other breach of
     the same or any other term, condition, or covenant contained herein.

10.  Signatures. This instrument may be executed by the signing of counterparts.
     If each of the parties signs at least one counterpart, the counterpart
     instruments shall be treated as a binding contract.

Executed: February 14, 2006

                                        PYRAMID BREWERIES, INC.

                                        ----------------------------------------
                                        By: John Lennon
                                        Its: President and Chief Executive
                                             Officer

                                        PORTLAND BREWING COMPANY

                                        ----------------------------------------
                                        By: R. Scott MacTarnahan
                                        Its: President<PAGE>

                                                                   Exhibit 10.32

                            INDEMNIFICATION AGREEMENT

This Indemnification Agreement (the "INDEMNIFICATION AGREEMENT") is effective
August 1, 2004, and is between PORTLAND BREWING COMPANY, an Oregon corporation
("PBC"), and PYRAMID BREWERIES, INC., a Washington corporation ("PMID").

                                    RECITALS

A.   PBC and PMID are parties to the following agreements:

     -    A Production Agreement executed February 14, 2006 and dated effective
          August 1, 2004 (the "PRODUCTION AGREEMENT");

     -    Two Subleases, each executed February 14, 2006 and dated effective
          August 1, 2004 (the "SUBLEASES");

     -    An Equipment Lease executed February 14, 2006 and dated effective
          August 1, 2004 (the "EQUIPMENT LEASE");

     -    A Staffing Agreement executed February 14, 2006 and dated effective
          August 1, 2004 (the "STAFFING AGREEMENT"); and

     -    A Restaurant Management Agreement executed February 14, 2006 and dated
          effective August 1, 2004 (the "MANAGEMENT Agreement").

          These agreements are referred to herein collectively as the
          "AGREEMENTS".

B.   The parties are willing to execute and perform the Agreements on the
     condition that they sign this Indemnification Agreement.

C.   In view of the business relationship between PMID and PBC, the
     consideration from PBC to PMID under the Agreements will inure to the
     benefit of PMID, and the consideration from PMID to PBC will inure to the
     benefit of PBC.

                                    AGREEMENT

1.   GENERAL INDEMNIFICATION. To the extent not prohibited by law, PMID will
     defend and indemnify PBC and each present and future shareholder, director,
     officer, employee and agent of PBC for, from, and against any and all
     claims, actions, proceedings, damages, liabilities, and expenses of every
     kind, past and future, whether known or unknown, including but not limited
     to reasonable attorney's fees, resulting from or arising out of the
     Agreements, the relationship created thereby, and the business relationship
     of the parties prior to the execution and delivery of the Agreements.
     Without limiting the generality of the foregoing, PMID specifically agrees
     to defend and indemnify PBC in connection with the specific areas
     identified herein.

2.   DIRECT CLAIMS. PMID will not make claims based on actions or omissions of
     PBC related to duties of PBC under the Agreements, where such duties are
     performed by PMID or its employees or agents pursuant to the Staffing
     Agreement.

3.   THIRD PARTY CLAIMS. The indemnification obligations of PMID set forth
     herein will include without limitation indemnification for: (i) injuries to
     employees or others in connection with the activities contemplated by the
     Production Agreement; (ii) dram shop liability and other liability

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     concerning the sale of alcoholic beverages related to the operation of the
     restaurant as set forth in the Management Agreement; (iii) products
     liability claims in connection with the products produced pursuant to the
     Production Agreement; (iv) liability related to employment, workers'
     compensation, and associated claims in connection with the Staffing
     Agreement; and (v) liability arising in connection with health and safety
     regulations relevant to activities contemplated by the Production
     Agreement, Staffing Agreement, and Management Agreement.

4.   INTELLECTUAL PROPERTY. The indemnification obligations of PMID set forth
     herein will include without limitation indemnification for any and all
     claims or liabilities arising from PBC's use of trademarks and other
     intellectual property of PMID and third parties pursuant to the Production
     Agreement or Management Agreement.

5.   TAXES. The indemnification obligations of PMID set forth herein will
     include without limitation indemnification for any and all tax liabilities
     assessed or assessable against PBC by the United States Department of the
     Treasury or any agency thereof (e.g. IRS, TTB, ATF) or by the Social
     Security Administration or by any state taxing agency, arising out of or in
     any way related to PBC's business operations pursuant to the Agreements.
     Obligations specifically subject to this covenant of indemnification
     include, but are not limited to, all state and federal income tax, excise
     tax, payroll tax, business and occupations tax, and employment tax
     liabilities arising out of PBC's business operations under the Agreements.
     PMID shall not be responsible to indemnify PBC from any state or federal
     corporate income or payroll tax liabilities that are not related to the
     performance of PBC's operations and obligations under the Agreements.
     PMID's indemnification obligations will include any accruals, interest,
     penalties or fines assessed in connection with tax liabilities.

6.   FINES AND PENALTIES. The indemnification obligations of PMID set forth
     herein will include without limitation indemnification for any fines and
     penalties levied on PBC in connection with the activities contemplated by
     the Agreements.

7.   DEFENSE COSTS. The indemnification obligations of PMID set forth herein
     will include without limitation indemnification for legal fees and any
     other costs incurred by PBC in the response to and defense of any claim
     covered by this Indemnification Agreement.

8.   COMPLIANCE COSTS. The indemnification obligations of PMID set forth herein
     will include without limitation indemnification for all of PBC's costs
     incurred in complying with all applicable laws and regulations governing
     the activities contemplated by the Agreements.

9.   SUBROGATION. An indemnitor hereunder shall be subrogated to any recovery
     received by or payable to an indemnitee hereunder for any loss, liability
     or damage arising from a fact or circumstance invoking indemnification
     hereunder, whether from insurance, other indemnity, or other source, and
     shall receive the benefit any refund, compromise, or adjustment of any
     cost, expense, assesment, fine, tax, or other liability of such indemnitee
     that arises from the subject matter of any area specified herein.

10.  CERTAIN LIMITATIONS. Notwithstanding any other provision hereof, PMID will
     not be required to indemnify PBC with respect to any claim, loss, expense
     or liability: (i) for which PBC is covered by any policy of insurance that
     PBC holds, and PBC is fully reimbursed under such policy for the claim,
     loss, expense or liability (and the associated costs); or (ii) results
     solely from PBC's willful or grossly negligent breach of an obligation to
     PMID under the Agreements. PMID shall be subrogated to any third party
     indemnification for any claim indemnified hereunder by PMID and to any
     refund to PBC of tax paid by reason of collection

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     from, or payment by, PMID of such tax, and PBC shall upon reasonable
     request execute all documents reasonably necessary or convenient to effect
     such subrogration.

11.  GOVERNING LAW. This Agreement is governed by the laws of the State of
     Oregon, without giving effect to any conflict-of-law principle that would
     result in the laws of any other jurisdiction governing this Agreement.

12.  ATTORNEY'S FEES. If any arbitration or litigation is instituted to
     interpret, enforce, or rescind this Agreement, including but not limited to
     any proceeding brought under the United States Bankruptcy Code, the
     prevailing party on a claim will be entitled to recover with respect to the
     claim, in addition to any other relief awarded, the prevailing party's
     reasonable attorney's fees and other fees, costs, and expenses of every
     kind, including but not limited to the costs and disbursements specified in
     ORCP 68 A(2), incurred in connection with the arbitration, the litigation,
     any appeal or petition for review, the collection of any award, or the
     enforcement of any order, as determined by the arbitrator or court.

13.  SIGNATURES. This Agreement may be signed in counterparts. A fax
     transmission of a signature page will be considered an original signature
     page. At the request of a party, the other party will confirm a
     fax-transmitted signature page by delivering an original signature page to
     the requesting party.

     Executed February 14, 2006:

                                        PYRAMID BREWERIES, INC.

                                        ----------------------------------------
                                        By: John Lennon
                                        Its: President and Chief Executive
                                             Officer

                                        PORTLAND BREWING COMPANY

                                        ----------------------------------------
                                        By: R. Scott MacTarnahan
                                        Its: President

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