Document:

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                                                                  EXHIBIT 10.4.5
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                                 LOAN GUARANTY

     THIS LOAN GUARANTY is dated (for reference purposes only) as of May 1, 2000
and is made and entered into in connection with the provision by Bank of the
credit facility referred to in paragraph 1 below, pursuant to which each
Guarantor (as defined below) expects to derive direct and/or indirect benefit.

     NOW, THEREFORE, the parties agree as follows:

1.   Obligations Guarantied. For consideration, the adequacy, sufficiency and
receipt of which is hereby acknowledged, the undersigned (collectively,
"Guarantors" and individually each or any "Guarantor") unconditionally, jointly
and severally guarantee and promise to pay to UNION BANK OF CALIFORNIA, N.A.
("Bank") on demand, in lawful United States money, subject to the limitations
set forth in Section 19, below, all principal, interest, reasonable attorneys'
fees, expenses and other sums due or which become due pursuant to any or all of
the following: (a) that certain Loan Agreement of even date herewith (as from
time to time amended the "Loan Agreement") by and between West Valley MRF, LLC,
a California limited liability company, ("Borrower") and Bank, pursuant to which
Bank has agreed to make revolving loans in the aggregate principal amount not to
exceed $2,000,000 to assist the Borrower in financing a part of the cost of
equipment acquisition; (b) any Borrower Agreement (as defined in the Loan
Agreement), including, without limitation, any security agreements securing the
Loan Agreement; and (c) all extensions, renewals and modifications of any of the
foregoing (individually and collectively, the "Obligations"), whether due or not
due, absolute or contingent, liquidated or unliquidated, legal or equitable,
whether Borrower is liable individually or jointly or with others, whether
incurred before, during or after any bankruptcy, reorganization, insolvency,
receivership or similar proceeding ("Insolvency Proceeding"), and whether
recovery thereof is or becomes barred by a statute of limitations or is or
becomes otherwise unenforceable, together with all expenses of, for and
incidental to collection, including reasonable attorneys' fees. This Guaranty is
in addition to any other guaranties of the Obligations. The maximum amount
payable by Guarantors to Bank hereunder shall be limited to the maximum amount
specified in Section 19, below. Capitalized terms used herein without definition
shall have the respective meanings ascribed thereto in the Loan Agreement.

2.   Reinstatement. All of Bank's rights pursuant to this Guaranty continue with
respect to amounts previously paid to Bank on account of any Obligations which
are thereafter restored or returned by Bank, whether in an Insolvency Proceeding
of Borrower or for any other reason, all as though such amounts had not been
paid to Bank, and each Guarantor's liability under this Guaranty (and all its
terms and provisions) shall be reinstated and revived as provided herein,
notwithstanding any surrender or cancellation of this Guaranty. Bank, in its
sole discretion, may determine whether any amount paid to it must be restored or
returned; provided, however, that if Bank elects to contest any claim for return
or restoration, each Guarantor agrees to indemnify and hold Bank harmless from
and against all costs and expenses, including reasonable attorneys' fees,
expended or incurred by Bank in connection with such contest. If any Insolvency
Proceeding is commenced by or against Borrower or any Guarantor, at Bank's
election, each Guarantor's

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obligations under this Guaranty shall immediately and without notice or demand
become due and payable, whether or not then otherwise due and payable.

3.   Authorization. Each Guarantor authorizes Bank, without notice and without
affecting such Guarantor's liability under this Guaranty, from time to time,
whether before or after any revocation of this Guaranty, to (a) renew,
compromise, extend, accelerate, release, subordinate, waive, amend and restate,
or otherwise amend or change, the interest rate, time or place for payment or
any other terms of all or any part of the Obligations; (b) accept delinquent or
partial payments on the Obligations; (c) take or not take security or other
credit support for this Guaranty or for all or any part of the Obligations, and
exchange, enforce, waive, release, subordinate, fail to enforce or perfect, sell
or otherwise dispose of any such security or credit support; (d) apply proceeds
of any such security or credit support and direct the order or manner of its
sale or enforcement as Bank, in its sole discretion, may determine; and (e)
release or substitute Borrower or any Guarantor or other person or entity liable
in respect of all or any part of the Obligations.

4.   Waivers. To the maximum extent permitted by law, each Guarantor waives (a)
all rights to require Bank to proceed against Borrower or proceed against,
enforce or exhaust any security for the Obligations or to marshal assets or to
pursue any other remedy in Bank's power whatsoever; (b) all defenses arising by
reason of: any disability or other defense of Borrower, the cessation for any
reason of the liability of Borrower, any defense that any other indemnity,
guaranty or security was to be obtained, any claim that Bank has made such
Guarantor's obligations more burdensome or more burdensome than Borrower's
obligations, and the use of any proceeds of the Obligations other than as
intended or understood by Bank or such Guarantor; (c) all presentments, demands
for performance, notices of nonperformance, protests, notices of protest,
notices of dishonor, notices of acceptance of this Guaranty, and all other
notices or demands to which such Guarantor might otherwise be entitled; (d) all
conditions precedent to the effectiveness of this Guaranty; (e) all rights to
file a claim in connection with the Obligations in an Insolvency Proceeding
filed by or against Borrower; (f) all rights to require Bank to enforce any of
its remedies and (g) until the Obligations are satisfied or fully paid, with
such payment not subject to return: (i) all rights of subrogation,
indemnification or reimbursement, (ii) all rights of recourse to any assets or
property of Borrower or to any collateral or credit support for the Obligations,
(iii) all rights to participate in or benefit from any security or credit
support Bank may have or acquire, and (iv) all rights, remedies and defenses
such Guarantor may have or acquire against Borrower; provided however that
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anything in this Guaranty to the contrary notwithstanding, the Guarantors shall
only be required to waive and forebear the enforcement of any rights of
subrogation, indemnification or reimbursement against any person or entity so
long as such person or entity is in default in the payment of any obligation due
and owing to Bank; during the continuance of any such default all such rights of
subrogation, indemnification and reimbursement shall be subordinated as provided
in Section 6 below. Bank may foreclose, either by judicial foreclosure or by
exercise of power of sale, any deed of trust which secures any Obligations, and
even though such foreclosure or exercise may destroy or diminish the rights of
the Guarantors, or any of them, against Borrower, each Guarantor shall remain
liable for any part of the Obligations remaining unpaid after foreclosure. Each
Guarantor understands that if Bank forecloses by trustee's sale on a deed of
trust securing any of the Obligations, Guarantor would then have a defense
preventing Bank from thereafter enforcing Guarantor's liability for the unpaid

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balance of the secured Obligations. This defense arises because the trustee's
sale would eliminate Guarantor's right of subrogation, and therefore Guarantor
would be unable to obtain reimbursement from Borrower. Guarantor specifically
waives this defense and all rights and defenses that Guarantor may have because
the Obligations are secured by real property. This means, among other things:
(1) Bank may collect from Guarantor without first foreclosing on any real or
personal property collateral pledged by Borrower; and (2) if Bank forecloses on
any real property collateral pledged by Borrower: (A) the amount of the
Obligations may be reduced only by the price for which the collateral is sold at
the foreclosure sale, even if the collateral is worth more than the sale price;
and (B) Bank may collect from Guarantor even if Bank, by foreclosing on the real
property collateral, has destroyed any right Guarantor may have to collect from
Borrower. This is an unconditional and irrevocable waiver of any rights and
defenses Guarantor may have because the Obligations are secured by real
property. These rights and defenses include, but are not limited to, any rights
or defenses based upon Section 580a, 580b, 580d, or 726 of the California Code
of Civil Procedure. Each Guarantor agrees that such Guarantor shall remain
liable (subject to the limits set forth in Section 19, below) for any part of
the Obligations remaining unpaid after a trustee's sale, although such Guarantor
would not become subrogated to any part of the Obligations that such Guarantor
has paid and would therefore be unable to obtain reimbursement for those
payments from Borrower. Each Guarantor may therefore incur a partially or
totally unreimbursable liability under the Guaranty. Each Guarantor waives all
benefits under California Civil Code sections 2808, 2809, 2810, 2819, 2839,
2845, 2846, 2848, 2849, 2850, 2855, 2899 and 3433 and California Code of Civil
Procedure sections 580a, 580b, 580d and 726.

5.   Guarantor to Keep Informed. Each Guarantor warrants having established with
Borrower adequate means of obtaining, on an ongoing basis, such information as
such Guarantor may require concerning all matters bearing on the risk of
nonpayment or nonperformance of the Obligations. Each Guarantor assumes sole,
continuing responsibility for obtaining such information from sources other than
from Bank. Bank has no duty to provide any information to any Guarantor until
Bank receives such Guarantor's written request for specific information in
Bank's possession and Borrower has authorized Bank to disclose such information
to such Guarantor.

6.   Subordination. All liabilities and commitments of Borrower to any
Guarantor, and all liabilities and commitments of any guarantor of any of the
Obligations to any other Guarantor, which presently or in the future may exist
("Guarantor Claims") are hereby subordinated to the Obligations; provided
however that so long as the party against which such Guarantor Claims are
asserted is not in default in the payment of any obligations due and owing to
Bank, payments and distributions from Borrower to any Guarantor or among or
between any of the guarantors (including any Guarantor) of any of the
Obligations shall be permitted in the ordinary course of business. Whenever any
such default shall have occurred and be continuing, Guarantor Claims against
such party in default will be enforced, and performance thereon received by any
Guarantor only as a trustee for Bank, and each Guarantor will promptly pay over
to Bank upon demand all proceeds recovered for application to the Obligations
without reducing or affecting such Guarantor's liability under other provisions
of this Guaranty.

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7.   Representations and Warranties. The Guarantors represent and warrant to the
Bank as follows:

     (a) Corporate Existence and Power.  Each Guarantor (i) is a corporation
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duly organized, validly existing and in good standing under the laws of the
State of Delaware, (ii) is duly qualified or licensed as a foreign corporation
and is in good standing in the State of California and in each other
jurisdiction in which it owns or leases property or in which the conduct of its
business requires it to so qualify or be licensed and (iii) has all requisite
corporate power and authority to own or lease and operate its properties and to
carry on its business as now conducted and as proposed to be conducted.

     (b) Authorization.  The execution, delivery and performance by the
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Guarantors of this Guaranty, and the consummation of the transactions
contemplated hereby and thereby, are within each Guarantor's corporate powers,
have been duly authorized by all necessary corporate action of such Guarantor
and do not contravene such Guarantor's charter documents or bylaws.

     (c) Binding Effect.  This Guaranty has been duly executed and delivered by
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the Guarantors. This Guaranty is the legal, valid and binding obligation of each
Guarantor, enforceable against such Guarantor in accordance with its terms,
except as the enforceability thereof may be limited by bankruptcy, insolvency,
moratorium, reorganization or other similar laws affecting creditors' rights
generally.

     (d) Other Information.   To the knowledge of Guarantors, no information,
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exhibit or report furnished by any Guarantor to Bank in connection with the Loan
Agreement or this Guaranty contains any material misstatement of fact or omits
to state a material fact or any fact necessary to make the statements contained
therein, in light of the circumstances in which made, not misleading.

     (e) Litigation.  Except as previously disclosed in writing to Bank, there
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is no action, suit, investigation, litigation or proceeding affecting the
Guarantors pending or, to the best knowledge of the Guarantors, threatened
before any court, governmental agency or arbitrator (a) that would be reasonably
likely to have a materially adverse effect on the business, condition (financial
or otherwise), operations, performance, properties or prospects of the
Guarantors or (b) that purports to affect the legality, validity or
enforceability of this Guaranty or the consummation of the transactions
contemplated hereby.

     (f) Financial Statements.  The audited consolidated balance sheet of Kaiser
         --------------------
Ventures Inc., a Delaware corporation ("KVI") and its Subsidiaries as of
December 31, 1999, and the related audited consolidated statements of income,
retained earnings and cash flows of KVI and its Subsidiaries for the fiscal year
then ended, fairly present the consolidated financial condition of KVI and its
Subsidiaries as of such date and the consolidated results of the operations of
KVI and its Subsidiaries for the fiscal year ended on such date, all in
accordance with generally accepted accounting principles applied on a consistent
basis. The unaudited consolidated balance sheet of KVI and its Subsidiaries as
of March 30, 2000, and the related unaudited consolidated statements of
operation, retained earnings and cash flows of KVI and its Subsidiaries for the
three-month

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period then ended, reviewed (subject to normal year-end audit adjustments) by
the chief financial officer or chief accounting officer of KVI as having been
prepared in accordance with generally accepted accounting principles applied on
a consistent basis, fairly present the consolidated financial condition of KVI
and its Subsidiaries as of such date and the consolidated results of the
operations of KVI and its Subsidiaries for the three-month period ending on such
date. Since March 31, 2000 there has been no materially adverse change in the
business, condition (financial or otherwise), operations, performance,
properties or prospects of KVI or any of its Subsidiaries. KVI and its
Subsidiaries have no material contingent liabilities, except as disclosed in
such consolidated financial statements or the notes thereto, that would be
reasonably likely to have a materially adverse effect on the business, condition
(financial or otherwise), operations, performance, properties or prospects of
KVI or any of its Subsidiaries.

     (g) Burdensome Agreements.  Except as otherwise disclosed in writing,
         ---------------------
neither KVI nor any of its Subsidiaries is a party to any indenture, loan
agreement, credit agreement, lease or other agreement or instrument, or subject
to any charter or corporate restriction, that would be reasonably likely to have
a materially adverse effect on the business, condition (financial or otherwise),
operations, performance, properties or prospects of KVI or any of its
Subsidiaries or on the ability of KVI or any of its Subsidiaries to carry out
its obligations under this Guaranty.

     (h) Taxes.  KVI and its Subsidiaries have filed, or there has been filed on
         -----
their behalf, all tax returns (federal, state, local and foreign) required to be
filed before the date of the making of this representation and warranty, and KVI
and its Subsidiaries have paid all taxes shown thereon to be due, including
interest, additions to taxes and penalties, or have provided adequate reserves
for the payment thereof.

     (i) Title to Properties; Ownership.  KVI and its Subsidiaries have good and
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marketable title to all material properties, real or personal, purported to be
owned thereby. KVI is the legal and beneficial owner of all of the outstanding
capital stock of Kaiser Recycling Corporation, a Delaware corporation, and such
stock is not subject to any lien or other encumbrance other than the lien of the
stock pledge agreement securing KVI's obligations under the KVI Performance
Guaranty.

     (j) Regulation.  Neither Guarantor is currently subject to financial,
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organizational or rate regulation (i) under the Public Utility Holding Company
Act of 1935, the Federal Power Act, the Interstate Commerce Act, the Investment
Company Act of 1940 or any Governmental Rule limiting its ability to incur Debt
or (ii) by the California Public Utilities Commission.

8.   Covenants.  The Guarantors covenant and agree that, unless Bank otherwise
consents in writing and so long the Obligations remain unpaid

     (a) Each of the Guarantors will, preserve, renew and keep in full force and
effect its corporate existence (in the jurisdiction thereof) and the material
rights, privileges, franchises and governmental approvals necessary or desirable
for the normal conduct of its business.

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     (b) Neither Guarantor will merge or consolidate with or into, or sell,
assign, lease or otherwise dispose of (whether in one transaction or in a series
of transactions) all or substantially all of its assets (whether now owned or
hereafter acquired) to any Person, unless, in the case of any merger or
consolidation, such Guarantor is the surviving entity; provided however that the
Guarantors shall be permitted, upon notice to the Bank, to transfer any or all
of the assets or capital stock of KRC to Burrtec Waste Industries, Inc. ("BWI")
or any wholly-owned subsidiary of BWI or KVI.

     (c) KVI will deliver the following to the Bank:

         (i)   as soon as available and in any event within 45 days after the
end of each of the first three quarters of each fiscal year of KVI, a copy of
the quarterly report on Form 10-Q filed by KVI with the SEC with respect to such
fiscal quarter;

         (ii)  as soon as available and in any event within 105 days after the
end of each fiscal year of KVI , a copy of the annual report on Form 10-K filed
by KVI with the SEC with respect to such fiscal year, in each case containing
financial statements audited by Ernst & Young or another "Big Six" accounting
firm, together with a certificate of such accounting firm stating that in the
course of the regular audit of the business of KVI and its Subsidiaries, which
audit was conducted by such accounting firm in accordance with generally
accepted auditing standards, such accounting firm has obtained no knowledge that
an Event of Default has occurred and is continuing or, if in the opinion of such
accounting firm an Event of Default has occurred and is continuing, a statement
as to the nature thereof.

         (iii) promptly upon the filing thereof, a copy of any report on Form 8-
K filed by KVI with the SEC;

         (iv)  as soon as available and in any event within 30 days after the
end of each fiscal year of KVI, a budget, an operating plan, and an operating-
profit and cash-flow projection for KVI for the then current fiscal year, as
prepared by KVI and approved by the Guarantor's board of directors;

         (v)   forthwith upon KVI's becoming aware of the occurrence of any
Event of Default relating to KVI, a certificate of the chief financial officer
or chief accounting officer of KVI setting forth the details thereof and the
action that KVI is taking or proposes to take with respect thereto;

         (vi)  promptly after the commencement thereof, notice of all material
actions, suits and proceedings before any Governmental Authority or arbitrator,
affecting KVI or any of its Subsidiaries, of the type described in Section 7(e),
above;

         (vii) promptly after the occurrence thereof, notice of any event or
condition that constitutes or causes a materially adverse change in the
business, condition (financial or otherwise), operations, performance,
properties or prospects of KVI or any of its Subsidiaries, if

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such event or condition could materially impair either Guarantor's ability to
perform its obligations under this Guaranty; and

          (viii)  promptly upon request, such other information respecting the
business, condition (financial or otherwise), operations, performance,
properties or prospects of either Guarantor as the Bank may from time to time
reasonably request. All non-public information will be treated confidentially by
the Bank and will not be distributed or otherwise made available by the Bank to
any person or entity, other than the Bank's employees, authorized agents or
representatives who need to review or be informed of such information in
connection with their employment by the Bank.

     (d)  KVI will maintain, and cause each of its Subsidiaries to maintain,
insurance with responsible and reputable insurance companies or associations
that have an A.M. Best Co. rating of at least B+:6 or a Solvency International
or equivalent rating as in effect on the Date of Issuance for such insurance
company or association, in such amounts and covering such risks as is usually
carried by companies engaged in similar businesses and owning similar properties
in the same general areas in which KVI or such Subsidiary operates provided,
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however, that in the case of any liability insurance (excluding directors and
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officers liability insurance), such insurance shall name the Bank as an
additional insured and shall provide for at least 30 days' prior written notice
to the Bank of any amendment, nonrenewal or cancellation thereof (except that
only 10 days' notice need be provided for cancellation due to the Guarantor's
failure to pay thereunder).

     (e)  KVI will maintain its fiscal year and fiscal quarters so that they
correspond to the calendar year and calendar quarters.

9.   Assignments. Without notice to the Guarantors, Bank may assign the
Obligations and this Guaranty, in whole or in part, and may disclose to any
prospective or actual purchaser of all or part of the Obligations any and all
information Bank has or acquires concerning either Guarantor, this Guaranty and
any security for this Guaranty provided that each such prospective or actual
purchaser must agree to maintain the confidentiality of all such information.

10.  Counsel Fees and Costs. The prevailing party shall be entitled to
attorneys' fees (including a reasonable allocation for any appropriately
documented fees of Bank's internal counsel), and all other costs and expenses
which it may incur in connection with the enforcement or preservation of its
rights under, or defense of, this Guaranty or in connection with any other
dispute or proceeding relating to this Guaranty, whether or not incurred in an
Insolvency Proceeding, arbitration, litigation or other proceeding.

11.  [Intentionally omitted]

12.  Multiple Guarantors/Borrowers. When there is more than one Borrower named
herein, or when this Guaranty is executed by more than one Guarantor, then the
words "Borrower" and "Guarantor," respectively, shall mean all and any one or
more of them, and their respective successors and assigns, including debtors-in-
possession and bankruptcy trustees, and words used herein in the singular shall
be considered to have been used in the plural where the context and

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construction so requires in order to refer to more than one Borrower or
Guarantor, as the case may be. This Guaranty may be executed in any number of
counterparts and by different parties hereto on separate counterparts. Each
counterpart, when so executed and delivered, shall be deemed to be an original
and all counterparts, taken together, shall constitute but one and the same
Guaranty.

13.  Waiver of Jury Trial. EACH GUARANTOR AND BANK HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION ARISING UNDER THIS GUARANTY, ANY OF THE OBLIGATIONS, OR ANY
RELATED AGREEMENTS OR INSTRUMENTS, OR IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DISCUSSIONS, DEALINGS OR ACTIONS OF SUCH PARTIES OR ANY OF
THEM (WHETHER ORAL OR WRITTEN) WITH RESPECT THERETO, OR TO THE TRANSACTIONS
RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE. EACH PARTY HEREBY AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED
IN ACCORDANCE WITH THE PROVISIONS OF THE ALTERNATIVE DISPUTE RESOLUTION
AGREEMENT REFERRED TO IN PARAGRAPH 18 BELOW. EACH GUARANTOR ACKNOWLEDGES AND
AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION
(AND EACH OTHER PROVISION OF EACH OTHER DOCUMENT TO WHICH IT IS A PARTY) AND
THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR BANK AGREEING TO THE CREDIT
EXTENSION REFERRED TO HEREIN.

14.  Integration/Severability/Amendments. This Guaranty is intended by each of
the Guarantors and Bank as the complete, final expression of their agreement
concerning its subject matter. It supersedes all prior understandings or
agreements with respect thereto and may be changed only by a writing signed by
Bank and the Guarantor intended to be bound by such writing. No course of
dealing, or parol or extrinsic evidence shall be used to modify or supplement
the express terms of this Guaranty. If any provision of this Guaranty is found
to be illegal, invalid or unenforceable, such provision shall be enforced to the
maximum extent permitted, but if fully unenforceable, such provision shall be
severable, and this Guaranty shall be construed as if such provision had never
been a part of this Guaranty and the remaining provisions shall continue in full
force and effect.

15.  Joint and Several.  If more than one Guarantor signs this Guaranty, the
obligations of each Guarantor under this Guaranty are joint and several in
accordance with the terms of this Agreement, and independent of the Obligations
and of the liabilities and commitments of any other person or entity.  A
separate action or actions may be brought and prosecuted against any Guarantor,
whether action is brought against Borrower, any other Guarantor or any other
person or entity liable in respect of all or any part of the Obligations, and
whether Borrower or such others are joined in any such action.

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16.  Notice. Any notice given by any party under this Guaranty shall be
effective only upon its receipt by the other party and only if (a) given in
writing and (b) personally delivered or sent by United States mail, postage
prepaid, and addressed to Bank or Guarantor at their respective addresses for
notices indicated below. Each Guarantor and Bank may change the place to which
notices, requests, and other communications are to be sent to them by giving
written notice of such change to the other.

17.  California Law. Subject to paragraph 13 of this Guaranty, this Guaranty
shall be governed by and construed according to the laws of California, and each
Guarantor submits to the nonexclusive jurisdiction of the state or federal
courts in California.

18.  Dispute Resolution. This Guaranty hereby incorporates any alternative
dispute resolution agreement previously, concurrently or hereafter executed
between any Guarantor and Bank.

19.  Limitation on Guarantor's Liability. Notwithstanding the provisions of
Section 1 hereof or anything else to the contrary in this Guaranty, Guarantor's
liability under this Guaranty for the Obligations shall not exceed the sum of
the following (collectively, the "Guaranteed Liability Amount"): (a) the lesser
of (i) ONE MILLION AND NO/100 DOLLARS ($1,000,000.00); or (ii) fifty percent
(50%) of all Obligations representing principal outstanding at the time of
demand by Bank under this Guaranty (the "Principal Amount") without reduction
for any payments with respect to the Obligations received by Bank after such
demand from any source other than a Guarantor hereunder including, without
limitation, any payments from Borrower or any other guarantor of the Obligations
or derived from any collateral securing the Obligations; (b) all interest, fees
and like charges owing and allocable to the Principal Amount as reasonably
determined by Bank; and (c) without allocation in respect of the Principal
Amount, all costs, attorneys' fees and expenses of Bank relating to or arising
out of the enforcement of the Obligations and all indemnity liabilities of
Guarantor under this Guaranty; provided however, that Guarantors' liability for
all costs, fees, expenses and indemnity liabilities specified in the preceding
clause (c) shall terminate upon receipt by Bank from Guarantors of the full
Guaranteed Liability Amount. The foregoing limitation applies only to
Guarantor's liability under this particular Guaranty. Unless Bank otherwise
agrees in writing, every other guaranty previously, concurrently or hereafter
given to Bank by Guarantor is independent of this Guaranty and of every other
such guaranty. Without notice to Guarantor, Bank may apply or reapply any
amounts received in respect of the Obligations from any source other than from
Guarantor to that portion of the Obligations not included with the Guaranteed
Liability Amount.

20.  Events Of Default.  The occurrence of any of the following events shall be
an "Event of Default" hereunder:

     (a) The occurrence of an Event of Default (as defined in Section 6 of the
Loan Agreement); or

     (b) Any representation or warranty made any Guarantor hereunder or in any
statement, certificate or document delivered by such Guarantor in connection
with the this Guaranty shall prove to have been incorrect in any material
respect when made; or

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     (c)  Either Guarantor shall fail to perform or observe any other material
term, covenant or agreement contained in this Guaranty and any such failure
shall be impossible for such Guarantor to remedy or which shall remain
unremedied for thirty (30) days after written notice thereof shall have been
given to such Guarantor by Bank; provided however any such failure which is not
impossible to cure but which is not reasonably susceptible of cure within a 30-
day period shall not constitute an Event of Default hereunder unless either (A)
the Guarantors shall fail to initiate and diligently pursue all action necessary
to remedy such failure; or (B) such failure is not remedied within sixty (60)
days after written notice to the Guarantors from the Bank; or

     (d)  Either Guarantor shall (i) fail to make any payment, equal to or
exceeding $100,000 of any principal of or interest or premium on any Debt (as
defined below) when due (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise) and such failure shall continue after the
applicable grace period, if any, specified in the agreement or instrument
relating to such Debt, or (ii) fail to perform or observe any material term,
covenant or condition on its part to be performed or observed under any
agreement or instrument relating to any Debt when required to be performed or
observed, and such failure shall continue after the applicable grace period, if
any, specified in such agreement or instrument, if the effect of such failure to
perform or observe is to accelerate, or to permit the acceleration of, the
maturity of any Debt, the unpaid principal amount of which then equals or
exceeds $100,000. "Debt" of either Guarantor (which shall not include any
indebtedness hereunder) means (A) indebtedness for borrowed money or for the
deferred purchase price of property or services in respect of which either
Guarantor is liable, contingently or otherwise, as obligor, guarantor or
otherwise, or in respect of which any Guarantor otherwise assures a creditor
against loss and (B) obligations under leases which shall have been or should
be, in accordance with generally accepted accounting principles, recorded as
capital leases in respect of which obligations or such Guarantor is liable,
contingently or otherwise, as obligor, guarantor or otherwise, or in respect of
which obligations any Guarantor assures a creditor against loss.

21.  Remedies Upon Event of Default. Upon the occurrence and during the
continuance of an Event of Default hereunder, (but without limiting any other
rights or remedies available to Bank under the Loan Agreement and this Guaranty
or otherwise available under California law, all of which rights and remedies
are hereby expressly reserved) an amount equal to the Guaranteed Liability
Amount shall become immediately due and payable by the Guarantors to the Bank,
without presentment, demand, protest or other requirements of any kind, all of
which are hereby expressly waived by the Guarantors. Either of the following two
events shall constitute a "Payment Event of Default" hereunder: (1) any
intentional misrepresentation of a material fact by either Guarantor; or (2)
failure by the Guarantors to pay the Guaranteed Liability Amount to the Bank
within ninety (90) days after the occurrence of an Event of Default. Upon the
occurrence of a Payment Event of Default hereunder, the Bank shall have the
right, at its option, to declare an Event of Default under the Loan Agreement
and to exercise any and all rights and remedies provided thereunder.

                      [Agreement continues on next page]

                                      -10-
<PAGE>

22.  Termination. Subject to reinstatement pursuant to Paragraph 2 above, this
Guaranty and all of the rights of the Bank hereunder shall terminate upon the
earlier of (i) receipt by the Bank of the Guaranteed Liability Amount, or (ii)
the payment in full of all of the Obligations.

     Each Guarantor acknowledges having received a copy of this Guaranty and
having made each waiver contained in this Guaranty with full knowledge of its
consequences.

Dated as of May 1, 2000

                                   GUARANTORS

                                   KAISER VENTURES INC.,
                                   a Delaware corporation

                                   By:  /s/ James F. Verhey
                                        -------------------
                                        Name:   James F. Verhey
                                        Title: Executive Vice President - CFO

                                   KAISER RECYCLING CORPORATION,
                                   a Delaware corporation

                                   By:  /s/ Eric D. Herbert
                                        -------------------
                                        Name:   Eric D. Herbert
                                        Title: Vice President

                                      -11-<PAGE>

                                                                    Exhibit 10.1

                         GLOBAL WATER SOLUTIONS, INC.
                           1998 INCENTIVE STOCK PLAN
                           -------------------------

     1.   Purpose.  The GLOBAL WATER SOLUTIONS, INC. 1998 Incentive Stock Plan
          -------
(the "Plan") is intended to provide incentives which will attract and retain
highly competent persons as officers, directors and employees of GLOBAL WATER
SOLUTIONS, INC. and any of its subsidiaries (the "Company"), by providing them
opportunities to acquire shares of Common Stock of the Company ("Common Shares")
or to receive monetary payments based on the value of such shares pursuant to
the Awards described herein.

     2.   Administration.  The Plan will be administered by the Compensation
          --------------
Committee (the "Committee") appointed by the Board of Directors of the Company
from among its members provided, however, that if and as long as Common Shares
are registered under the Securities Exchange Act of 1934, members of the
Committee must qualify as non-employee directors within the meaning of Rule 16b-
3 of the Securities and Exchange Act of 1934, as amended, and, to the extent
necessary, Internal Revenue Code Section 162(m).  The Committee is authorized,
subject to the provisions of the Plan, to establish such rules and regulations
as it deems necessary for the proper administration of the Plan and to make such
determinations and interpretations and to take such action in connection with
the Plan and any Awards granted hereunder as it deems necessary or advisable.
All determinations and interpretations made by the Committee shall be binding
and conclusive on all participants and their legal representatives.  No member
of the Board, no member of the Committee and no employee of the Company shall be
liable for any act or failure to act hereunder, by any other member or employee
or by any agent to whom duties in connection with the administration of this
Plan have been delegated or, except in circumstances involving his bad faith,
gross negligence or fraud, for any act or failure to act by the member or
employee.

     3.   Participants.  Participants will consist of such officers, directors,
          ------------
employees and consultants of the Company, as the Committee in its sole
discretion determines to be significantly responsible for the success and future
growth and profitability of the Company and whom the Committee may designate
from time to time to receive Awards under the Plan.  Designation of a
participant in any year shall not require the Committee to designate such person
to receive an Award in any other year or, once designated, to receive the same
type or amount of Awards as granted to the participant in any year.  The
Committee shall consider such factors as it deems pertinent in selecting
participants and in determining the type and amount of their respective Awards.

     4.   Types of Awards.  Awards under the Plan may be granted in any one or a
          ---------------
combination of (a) Stock Options, (b) Stock Appreciation Rights, (c) Stock
Awards, (d) Performance Shares, and (e) Performance Units, all as described
below (collectively "Awards").

     5.   Shares Reserved under the Plan.  There is hereby reserved for issuance
          ------------------------------
under the Plan an aggregate of One Million (1,000,000) Common Shares, which may
be authorized but unissued shares.  Any shares subject to any form of Award
hereunder may thereafter be subject to new Awards under this Plan if there is a
lapse, expiration or termination of any such Awards prior to issuance of the
shares or the payment of the equivalent or if shares are issued under such
<PAGE>

Stock Options or Stock Appreciation Rights or as Stock Awards, and thereafter
are reacquired by the Company pursuant to rights reserved by the Company upon
issuance thereof.

     6.   Stock Options.  Stock Options will consist of awards from the Company,
          -------------
in the form of agreements, which will enable the holder to purchase a specific
number of Common Shares, at set terms and at a fixed purchase price.  Stock
Options may be "incentive stock options" within the meaning of Internal Revenue
Code Section 422 ("Incentive Stock Options") or Stock Options which do not
constitute Incentive Stock Options ("Nonqualified Stock Options").  The
Committee will have the authority to grant to any participant one or more
Incentive Stock Options, Nonqualified Stock Options, or both types of Stock
Options (in each case with or without Stock Appreciation Rights).  Each Stock
Option shall be subject to such terms and conditions consistent with the Plan as
the Committee may impose from time to time, subject to the following
limitations:

          (a)  Exercise Price.  Each Stock Option granted hereunder shall have
               --------------
such per-share exercise price as the Committee may determine at the date of
grant provided, however, that the per-share exercise price for Incentive Stock
Options shall not be less than 100% of the Fair Market Value of the Common
Shares on the date the option is granted and provided further that the per-share
exercise price for Nonqualified Stock Options shall not be less than 85% of the
Fair Market Value of the Common Shares on the date the option is granted.

          (b)  Payment of Exercise Price. The option exercise price may be paid
               -------------------------
by check or, in the discretion of the Committee, by the delivery (or
certification of ownership) of Common Shares of the Company then owned by the
participant; provided, however, that option agreements may provide that payment
of the exercise price by delivery of Common Shares of the Company then owned by
the participant may be made only if such payment does not result in a charge to
earnings for financial accounting purposes as determined by the Committee. In
the discretion of the Committee, if Common Shares are readily tradeable on a
national securities exchange or other market system at the time of option
exercise, payment may also be made by delivering a properly executed exercise
notice to the Company together with a copy of irrevocable instructions to a
broker to deliver promptly to the Company the amount of sale or loan proceeds to
pay the exercise price. To facilitate the foregoing, the Company may enter into
agreements for coordinated procedures with one or more brokerage firms.

          (c)  Exercise Period.  Stock Options granted under the Plan shall be
               ---------------
exercisable at such times and subject to such terms and conditions as shall be
determined by the Committee.  In addition, Nonqualified Stock Options shall not
be exercisable later than fifteen (15) years after the date they are granted and
Incentive Stock Options shall not be exercisable later than ten (10) years after
the date they are granted.  All Stock Options shall terminate at such earlier
times and upon such conditions or circumstances as the Committee shall in its
discretion set forth in such option at the date of grant.

          (d)  Limitations on Incentive Stock Options. Incentive Stock Options
               --------------------------------------
may be granted only to participants who are employees of the Company or one of
its subsidiaries (within the meaning of Internal Revenue Code Section 424(f)) at
the date of grant. The aggregate Fair Market Value (determined as of the time
the option is granted) of the Common Shares with respect to which Incentive
Stock Options are exercisable for the first time by a

                                      -2-
<PAGE>

participant during any calendar year (under all option plans of the Company)
shall not exceed $100,000. Incentive Stock Options may not be granted to any
participant who, at the time of grant, owns stock possessing (after the
application of the attribution rules of Section 424(d) of the Code) more than
10% of the total combined voting power of all classes of stock of the Company,
unless the option price is fixed at not less than 110% of the Fair Market Value
of the Common Shares on the date of grant and the exercise of such option is
prohibited by its terms after the expiration of five (5) years from the date of
grant of such option.

          (e)  Redesignation as Nonqualified Stock Options. Options designated
               -------------------------------------------
as "incentive stock options" that fail to continue to meet the requirements of
Internal Revenue Code Section 422 shall be redesignated as nonqualified options
for Federal income tax purposes automatically without further action by the
Committee on the date of such failure to continue to meet the requirements of
Section 422 of the Code.

          (f)  Limitation of Rights in Shares. The recipient of a Stock Option
               ------------------------------
shall not be deemed for any purpose to be a shareholder of the Company with
respect to any of the shares subject thereto except to the extent that the Stock
Option shall have been exercised and, in addition, a certificate shall have been
issued and delivered to the participant.

     7.   Stock Appreciation Rights.  The Committee may, in its discretion,
          -------------------------
grant Stock Appreciation Rights to the holders of any Stock Options granted
hereunder. In addition, Stock Appreciation Rights may be granted independently
of and without relation to options. Each Stock Appreciation Right shall be
subject to such terms and conditions consistent with the Plan as the Committee
shall impose from time to time, including the following:

          (a)  A Stock Appreciation Right relating to a Nonqualified Stock
Option may be made part of such option at the time of its grant or at any time
thereafter up to six months prior to its expiration, and a Stock Appreciation
Right relating to an Incentive Stock Option may be made part of such option only
at the time of its grant.

          (b)  Each Stock Appreciation Right will entitle the holder to elect to
receive the appreciation in the Fair Market Value of the shares subject thereto
up to the date the right is exercised. In the case of a right issued in relation
to a Stock Option, such appreciation shall be measured from not less than the
option price and in the case of a right issued independently of any Stock
Option, such appreciation shall be measured from not less than 85% of the Fair
Market Value of the Common Shares on the date the right is granted. Payment of
such appreciation shall be made in cash or in Common Shares, or a combination
thereof, as set forth in the award, but no Stock Appreciation Right shall
entitle the holder to receive, upon exercise thereof, more than the number of
Common Shares (or cash of equal value) with respect to which the right is
granted.

          (C)  Each Stock Appreciation Right will be exercisable at the times
and to the extent set forth therein, but no Stock Appreciation Right may be
exercisable earlier than six months after the date it was granted or later than
the earlier of (i) the term of the related option, if any, or (ii) fifteen years
after it was granted. Exercise of a Stock Appreciation Right shall reduce the
number of shares issuable under the Plan (and the related option, if any) by the
number of shares with respect to which the right is exercised.

                                      -3-
<PAGE>

     8.   Stock Awards.  Stock Awards will consist of Common Shares transferred
          ------------
to participants for a consideration equal to the Fair Market Value per share, at
a discount from Fair Market Value, or without other payment therefor as
additional compensation for services rendered to the Company. Stock Awards shall
be subject to such terms and conditions as the Committee determines appropriate,
including, without limitation, restrictions on the sale or other disposition of
such shares and rights of the Company to reacquire such shares for no
consideration upon termination of the participant's employment within specified
periods. The Committee may require the participant to deliver a duly signed
stock power, endorsed in blank, relating to the Common Shares covered by any
Stock Award. The Committee may also require that the stock certificates
evidencing such shares be held in custody until the restrictions thereon shall
have lapsed. Subject to the restrictions set forth in any such Stock Award, the
participant shall have, with respect to the Common Shares subject to a Stock
Award, all of the rights of a holder of Common Shares of the Company, including
the right to receive dividends and to vote the shares.

     9.   Performance Shares.
          ------------------

          (a)  Performance Shares may be awarded either alone or in addition to
other Awards granted under this Plan and shall consist of the right to receive
Common Shares or cash of an equivalent value at the end of a specified
Performance Period. The Committee shall determine the participants to whom and
the time or times at which Performance Shares shall be awarded, the number of
Performance Shares to be awarded to any person, the duration of the period (the
"Performance Period") during which, and the conditions under which, receipt of
the Common Shares will be deferred, and the other terms and conditions of the
Award in addition to those set forth in this Section 9. The Committee may
condition the grant of Performance Shares upon the attainment of specified
performance goals or such other factors or criteria as the Committee shall
determine.

          (b)  Performance Shares awarded pursuant to this Section 9 shall be
subject to the following terms and conditions:

               (i)   Unless otherwise determined by the Committee at the time of
     the grant a Performance Share Award, with respect to the Common Shares
     subject to a Performance Share Award, the participant shall not have any of
     the rights of a holder of Common Shares of the Company, including the right
     to receive dividends or to vote the shares.

               (ii)  Subject to the provisions of the Performance Share Award
     and this Plan, at the expiration of the Performance Period, share
     certificates and/or cash of an equivalent value (as the Committee may
     determine) shall be delivered to the participant, or his or her legal
     representative, in a number equal to the vested shares covered by the
     Performance Share Award.

               (iii) Subject to the applicable provisions of the Performance
     Share Award and this Plan, upon termination of a participant's employment
     with the Company for any reason during the specified Performance Period,
     the participant's Performance

                                      -4-
<PAGE>

     Shares will vest or be forfeited in accordance with the terms and
     conditions established by the Committee.

     10.  Performance Units.
          -----------------

          (a)  Performance Units may be awarded either alone or in addition to
other Awards granted under this Plan and shall consist of the right to receive a
fixed dollar amount, payable in cash or Common Shares or a combination of both.
The Committee shall determine the participants to whom and the time or times at
which Performance Units shall be awarded, the number of Performance Units to be
awarded to any person, the duration of the period (the "Performance Cycle")
during which, and the conditions under which, a participant's right to
Performance Units will be vested, the ability of participants to defer the
receipt of payment of such Performance Units, and the other terms and conditions
of the Award in addition to those set forth in Section 10. The Committee may
condition the vesting of Performance Units upon the attainment of specified
performance goals or such other factors or criteria as the Committee shall
determine.

          (b)  The Performance Units awarded pursuant to this Section 10 shall
be subject to the following terms and conditions:

               (i)   At the expiration of the Performance Cycle, the Committee
     shall determine the extent to which the performance goals have been
     achieved, and the percentage of the Performance Units of each participant
     that have vested.

               (ii)  Subject to the applicable provisions of the Performance
     Unit Award and this Plan, at the expiration of the Performance Cycle, cash
     and/or share certificates of an equivalent value (as the Committee may
     determine) shall be delivered to the participant, or his or her legal
     representative, in payment of the vested Performance Units covered by the
     Performance Unit Award.

               (iii) Subject to the applicable provisions of the Performance
     Unit Award and this Plan, upon termination of a participant's employment
     with the Company for any reason during the Performance Cycle for a given
     Performance Unit Award, the Performance Units in question will vest or be
     forfeited in accordance with the terms and conditions established by the
     Committee.

     11.  Adjustment Provisions.
          ---------------------

          (a)   If the Company shall at any time change the number of issued
Common Shares without new consideration to the Company (such as by stock
dividend, stock split, recapitalization, reorganization, exchange of shares,
liquidation, combination or other change in corporate structure affecting the
Common Shares) or make a distribution of cash or property which has a
substantial impact on the value of issued Common Shares, the total number of
shares available for Awards under this Plan shall be appropriately adjusted and
the number of shares covered by each outstanding Award and the reference price
or Fair Market Value for each outstanding Award shall be adjusted so that the
net value of such Award shall not be changed.

                                      -5-
<PAGE>

          (b)  In the case of any sale of assets, merger, consolidation,
combination or other corporate reorganization or restructuring of the Company
with or into another corporation which results in the outstanding Common Shares
being converted into or exchanged for different securities, cash or other
property, or any combination thereof (an "Acquisition"), subject to the
provisions of this Plan and any limitation applicable to the Award:

               (i)   any participant to whom a Stock Option has been granted
     shall have the right thereafter and during the term of the Stock Option, to
     receive upon exercise thereof the Acquisition Consideration (as defined
     below) receivable upon the Acquisition by a holder of the number of Common
     Shares which might have been obtained upon exercise of the Stock Option or
     portion thereof, as the case may be, immediately prior to the Acquisition;

               (ii)  any participant to whom a Stock Appreciation Right has been
     granted shall have the right thereafter and during the term of such right
     to receive upon exercise thereof the difference on the exercise date
     between the aggregate Fair Market Value of the Acquisition Consideration
     receivable upon such acquisition by a holder of the number of Common Shares
     which are covered by such right and the aggregate reference price of such
     right; and

               (iii) any participant to whom Performance Shares or Performance
     Units have been awarded shall have the right thereafter and during the term
     of the Award, upon fulfillment of the terms of the Award, to receive on the
     date or dates set forth in the Award, the Acquisition Consideration
     receivable upon the Acquisition by a holder of the number of Common Shares
     which are covered by the Award.

     The term "Acquisition Consideration" shall mean the kind and amount of
securities, cash or other property or any combination thereof receivable in
respect of one Common Share upon consummation of an Acquisition.

          (c)  Notwithstanding any other provision of this Plan, the Committee
may authorize the issuance, continuation or assumption of Awards or provide for
other equitable adjustments after changes in the Common Shares resulting from
any other merger, consolidation, sale of assets, acquisition of property or
stock, recapitalization, reorganization or similar occurrence upon such terms
and conditions as it may deem equitable and appropriate.

          (d)  In the event that another corporation or business entity is being
acquired by the Company, and the Company assumes outstanding employee stock
options and/or stock appreciation rights and/or the obligation to make future
grants of options or rights to employees of the acquired entity, the aggregate
number of Common Shares available for Awards under this Plan shall be increased
accordingly.

     12.  Nontransferability.
          ------------------

          (a)  Each Award granted under the Plan to a participant shall not be
transferable by him otherwise than by law or by will or the laws of descent and
distribution, and shall be exercisable, during his lifetime, only by him. In the
event of the death of a participant while the participant is rendering services
to the Company, each Stock Option or Stock

                                      -6-
<PAGE>

Appreciation Right theretofore granted to him shall be exercisable during such
period after his death as the Committee shall in its discretion set forth in
such option or right at the date of grant (but not beyond the stated duration of
the option or right) and then only:

               (i)   By the executor or administrator of the estate of the
     deceased participant or the person or persons to whom the deceased
     participant's rights under the Stock Option or Stock Appreciation Right
     shall pass by will or the laws of descent and distribution; and

               (ii)  To the extent that the deceased participant was entitled to
     do so at the date of his death.

          (b) Notwithstanding Section 12(a), in the discretion of the Committee,
Awards granted hereunder may be transferred to members of the participant's
immediate family (which for purposes of this Plan shall be limited to the
participant's children, grandchildren and spouse), or to one or more trusts for
the benefit of such family members or partnerships in which such family members
and/or trusts are the only partners, but only if the Award expressly so
provides.

     13.  Other Provisions. Awards under the Plan may also be subject to such
          ----------------
other provisions (whether or not applicable to any other Awards under the Plan)
as the Committee determines appropriate, including without limitation,
provisions for the installment purchase of Common Shares under Stock Options,
provisions for the installment exercise of Stock Appreciation Rights, provisions
to assist the participant in financing the acquisition of Common Shares,
provisions for the forfeiture of, or restrictions on resale or other disposition
of Shares acquired under any form of Award, provisions for the acceleration of
exercisability or vesting of Awards in the event of a change of control of the
Company, provisions for the payment of the value of Awards to participants in
the event of a change of control of the Company, provisions for the forfeiture
of, or provisions to comply with Federal and state securities laws, or
understandings or conditions as to the participant's employment in addition to
those specifically provided for under the Plan.

     14.  Fair Market Value.  For purposes of this Plan and any Awards
          -----------------
hereunder, the Fair Market Value of Common Shares shall be the mean between the
highest and lowest sale prices for the Company's Common Shares as reported on
the Nasdaq National Market (or such other consolidated transaction reporting
system on which such Common Shares are primarily traded) on the date of
calculation (or on the next preceding trading date if Common Shares were not
traded on the date of calculation), provided, however, that if the Company's
Common Shares are not at any time readily tradeable on a national securities
exchange or other market system, Fair Market Value shall mean the amount
determined in good faith by the Committee as the fair market value of the Common
Shares of the Company.

     15.  Withholding.  All payments or distributions made pursuant to the Plan
          -----------
shall be net of any amounts required to be withheld pursuant to applicable
federal, state and local income and/or employment tax withholding requirements.
If the Company proposes or is required to distribute Common Shares pursuant to
the Plan, it may require the recipient to remit to it an amount sufficient to
satisfy such tax withholding requirements prior to the delivery of any

                                      -7-
<PAGE>

certificates for such Common Shares. The Committee may, in its discretion and
subject to such rules as it may adopt, permit an optionee or award or right
holder to pay all or a portion of the federal, state and local withholding taxes
arising in connection with (a) the exercise of a Nonqualified Stock Option or a
Stock Appreciation Right, (b) the receipt or vesting of Stock Awards, or (c) the
receipt of Common Shares upon the expiration of the Performance Period or the
Performance Cycle, respectively, with respect to any Performance Shares or
Performance Units, by electing to have the Company withhold Common Shares having
a Fair Market Value equal to the amount of taxes required to be withheld.

     16.  Tenure.  A participant's right, if any, to continue to serve the
          ------
Company as an officer, employee, or otherwise, shall not be enlarged or
otherwise affected by his designation as a participant under the Plan, nor shall
this Plan in any way interfere with the right of the Company, subject to the
terms of any separate employment agreement to the contrary, at any time to
terminate such employment or to increase or decrease the compensation of the
participant from the rate in existence at the time of the grant of an Award.

     17.  Duration, Amendment and Termination.  No Award shall be granted after
          -----------------------------------
December 31, 2008; provided, however, that the terms and conditions applicable
to any Award granted prior to such date may thereafter be amended or modified by
mutual agreement between the Company and the participant or such other persons
as may then have an interest therein.  Also, by mutual agreement between the
Company and a participant, under this Plan or under any other present or future
plan of the Company, Awards may be granted to such participant in substitution
and exchange for, and in cancellation of, any Awards previously granted such
participant under this Plan, or any other present or future plan of the Company.
The Board of Directors may amend the Plan from time to time or terminate the
Plan at any time, subject to any requirement of stockholder approval required by
applicable law, rule or regulation.

     18.  Governing Law.  This Plan and actions taken in connection herewith
          -------------
shall be governed and construed in accordance with the laws of the State of
California (regardless of the law that might otherwise govern under applicable
California principles of conflict of laws).

     19.  Approval.  The Plan was adopted by the Board of Directors and the
          --------
shareholders of the Company on August 28, 1998.

                                      -8-

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