Document:

<PAGE>
                                                                  Exhibit 10.20

Description of Kaiser Aluminum & Chemical Corporation Short-Term Incentive Plan
-------------------------------------------------------------------------------

         The Company maintains a broad based short-term incentive plan pursuant
to which participants, including the Named Executive Officers, may earn cash
awards. Awards are determined on a sliding scale based on attainment by the
Company of various levels of financial performance calculated using internal
measures of controllable continuing operating results. Depending on the level
of financial performance, participants may earn up to three times their annual
award target.

         Awards under the plan are paid in the year after they are earned. If a
participant's employment is terminated prior to the end of a plan year as a
result of death, disability or retirement, such participant will be entitled to
receive a pro rated portion of any award earned through the date of his or her
termination of employment. Except as may be provided in a separate agreement
with a participant, awards earned under the program are forfeited if a
participant is terminated for cause prior to payment, or a participant's
employment is terminated prior to the end of a plan year for any reason other
than death, disability or retirement.<PAGE>
                                                                  Exhibit 10.21

Description of Kaiser Aluminum & Chemical Corporation Long-Term Incentive Plan
-------------------------------------------------------------------------------

         During 2002, the Company adopted, and the Court approved as part of
the Kaiser Aluminum & Chemical Corporation Key Employee Retention Program, a
new long-term incentive plan under which key management employees, including
the Named Executive Officers, became eligible to receive a cash award based on
the attainment by the Company of sustained cost reductions above a stipulated
threshold for the period 2002 through the Company's emergence from bankruptcy.
Under the plan, fifteen percent of such cost reductions above the stipulated
threshold are placed in a pool to be shared by participants based on their
individual target's percentage of the aggregate target for all participants. A
participant's target percentage may be adjusted upward or downward, within
certain limitations, at the discretion of the Company's Chief Executive
Officer.

         Amounts payable under the plan generally are not determinable until
conclusion of the plan. If a participant's employment is terminated without
cause or as a result of death, disability or retirement prior to conclusion of
the plan, such participant will be entitled to receive a pro rated portion of
any award earned through the date of his or her termination of employment.
Awards earned under the program are forfeited if the participant voluntarily
terminates his or her employment (other than at normal retirement) or is
terminated for cause prior to the scheduled payment date.

         In general, awards payable under the program are payable in two
installments - the first on the date that the Company emerges from bankruptcy
and the second on the one year anniversary of such date.<PAGE>
                                                                   EXHIBIT 10.23

                  AMENDMENT TO SETTLEMENT AND RELEASE AGREEMENT

THIS AMENDMENT (the "Amendment") DATED AS OF JANUARY 27, 2005 TO SETTLEMENT AND
RELEASE AGREEMENT DATED AS OF OCTOBER 5, 2004 (the "Agreement"), by and among
the Debtors(1) and the Creditors' Committee:

     1. Section 4.2.f. of the Agreement shall be amended and restated as
follows:

     f.   Except as otherwise provided in this Section, the pre-petition
          intercompany Claim held by KFC against KACC (the "KFC Claim") shall be
          allowed as a valid enforceable pre-petition unsecured Claim in the
          amount of $1.106 billion and shall receive the same treatment as
          allowed general unsecured Claims (excluding retiree medical Claims)
          under any plan or plans of reorganization for KACC and/or KAC. 75% of
          the KFC Claim shall be assigned to the 524(g) trust or master tort
          trust on the effective date of a plan or plans of reorganization for
          KACC and/or KAC, provided that such plan or plans provide for the
          524(g) trust or master tort trust to receive (a) a cash distribution
          of no more than $13 million (excluding any proceeds of insurance), (b)
          no equity distribution from any of the Debtors other than (i) 100% of
          the stock of KAE Trading, Inc. (which as of the effective date of such
          plan will own only the property described in the term sheet annexed
          hereto as Exhibit A) and (ii) stock of KAC in respect of 75% of the
          KFC Claim and (c) no debt distribution from any of the Debtors (the
          "Permitted Cash and Equity Trust Distributions"). If a plan or plans
          of reorganization for KACC and/or KAC are confirmed and become
          effective which provide for a 524(g) trust or master tort trust to
          receive cash and equity distributions in excess of the Permitted Cash
          and Equity Trust Distributions, or a distribution of debt from any
          Debtor, 75% of the KFC Claim shall not be assigned to the 524(g) trust
          or master tort trust and the KFC Claim shall be allowed unless the
          United States on behalf of EPA, DOI, NOAA, or BPA (the "US") files an
          abjection to the allowance of the KFC Claim within thirty (30) days
          after the effective date of such a plan or plans. If the US files an
          objection in accordance with the preceding sentence (which shall be
          the only circumstance in which the US may file an objection to the KFC
          Claim), the US may object to the KFC Claim on any basis, including
          based on any facts relating to the KFC-KACC note, provided, however,
          that the US may not object to the KFC Claim based on the treatment of
          intercompany Claims under the Agreement (as amended by the Amendment).
          The Debtors and the Creditors' Committee expressly reserve their
          rights to oppose any such Claim objection which shall be adjudicated
          by the Court.

     2. Section 7.7 of the Agreement shall be amended and restated as follows:

     7.7  KACC shall pay, in cash, the reasonable fees and expenses of each of
          the members of the Creditors' Committee (including indenture trustee
          fees and the fees and expenses of counsel of such members) incurred in
          connection with the negotiation, execution and approval of the
          settlement contained in this Agreement

----------
(1)  All terms not otherwise defined herein shall have the meaning set forth in
     the Agreement.
<PAGE>
          and this Agreement, subject only to the Creditors' Committee filing an
          application with the Bankruptcy Court. The Debtors and the United
          States Trustee may object to the reasonableness of any particular fees
          or expenses sought in such application.

     3. This Amendment may be executed in two or more counterparts, in which
case this Amendment shall include each such executed and delivered counterpart,
each of which shall be deemed to be part of a single instrument. This Amendment
may be executed and delivered by facsimile.

     4. Except as provided in this Amendment, none of the terms of the Agreement
shall be deemed to have been modified or altered in any way. The Agreement, as
modified by the Amendment, shall remain in full force and effect.

     5. This Amendment shall became effective when the Agreement becomes
effective but shall not be effective unless the requisite DIP Lenders and the
Agent have consented to this Amendment or such consent is no longer required

     IN WITNESS WHEREOF, the parties have caused this Amendment to be executed
as of the day and year first above written.

                                   KAISER ALUMINUM CORPORATION

                                   By:    /s/ Edward F. Houff
                                       -----------------------------------------
                                       Name:  Edward F. Houff
                                       Title: Senior Vice President and
                                              Chief Restructuring Officer

                                   KAISER ALUMINUM & CHEMICAL CORPORATION

                                   By:    /s/ Edward F. Houff
                                       -----------------------------------------
                                       Name:  Edward F. Houff
                                       Title: Senior Vice President and
                                              Chief Restructuring Officer

                                   KAISER FINANCE CORPORATION

                                   By:    /s/ Edward F. Houff
                                       -----------------------------------------
                                       Name:  Edward F. Houff
                                       Title: Senior Vice President and
                                              Chief Restructuring Officer

                                        2
<PAGE>
                                   KAISER ALUMINA AUSTRALIA CORPORATION

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   KAISER ALUMINUM TECHNICAL SERVICES, INC.

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   KAISER BELLWOOD CORPORATION

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   KAISER ALUMINIUM INTERNATIONAL, INC.

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   KAISER MICROMILL HOLDINGS LLC

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   KAISER SIERRA MICROMILLS, LLC.

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                        3
<PAGE>
                                   KAISER TEXAS SIERRA MICROMILLS, LLC

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   KAISER TEXAS MICROMILL HOLDINGS, LLC

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   KAISER ALUMINUM PROPERTIES, INC.

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   AKRON HOLDING CORP.

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   OXNARD FORGE DIE COMPANY, INC.

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   KAISER ALUMINIUM & CHEMICAL INVESTMENT, INC.

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                        4
<PAGE>
                                   KAISER CENTER, INC.

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   ALWIS LEASING, INC.

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   ALPART JAMAICA, INC.

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   KAISER JAMAICA CORPORATION

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   KAISER BAUXITE COMPANY

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   KAISER ALUMINUM & CHEMICAL OF CANADA LIMITED

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                        5
<PAGE>
                                   KAISER ALUMINUM & CHEMICAL OF CANADA
                                   INVESTMENT LIMITED

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   KAE TRADING, INC.

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   KAISER CENTER PROPERTIES

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   TEXADA MINES LTD.

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   KAISER EXPORT COMPANY

                                   By: /s/ John M. Donnan
                                       -----------------------------------------
                                       Name: John M. Donnan
                                       Title: Vice President and General Counsel

                                   CREDITORS' COMMITTEE

                                   By: /s/ Lisa G. Beckerman
                                       -----------------------------------------
                                       Name: Lisa G. Beckerman
                                       Title: Counsel to the Creditors'
                                              Committee

                                        6
<PAGE>
Settlement Proposal Subject to Rule 408
of Federal Rules of Evidence

            KAC PLAN TREATMENT OF PERSONAL INJURY CLAIMS AND DEMANDS

A. Creation of PI Trust(s)

         The KAC plan of reorganization (the "Plan") will provide for the
creation of a trust(s) ("PI Trust(s)") that will be funded with the Trust Assets
described below and will assume the liability for the Covered PI Claims
described below. Appropriate channeling injunctions pursuant to Section 524(g)
and Section 105 of the Bankruptcy Code will become effective upon confirmation
of the Plan.

B. Personal Injury Claims Assumed by PI Trust(s)

         Each of the four categories of personal injury claims and demands set
for the below ("Covered PI Claims") will be assumed by the PI Trust(s), and
each will be treated as a separate class under the Plan pursuant to Section
1126 of the Bankruptcy Code.

         1.       Asbestos Claims and Demands

         2.       Silica Claims and Demands

         3.       CTPV Claims and Demands

         4.       NIHL Claims

C. Assets ("Trust Assets") to be Contributed to the PI Trust(s)

         1.       Proceeds form existing and future postpetition settlements
                  (consummated on or before the effective date of the Plan (the
                  "Effective Date")) of Covered PI Claims' insurance, including
                  the amounts currently held in two separate escrow accounts
                  approved by orders of the Bankruptcy Court entered July 28,
                  2003 and December 29, 2004.

         2.       Insurance assets as follows:

                  a.       Assignment of rights to proceeds under the Insurance
                           Policies described below as to Covered PI Claims

                  b.       Applicable Insurance Policies

                           i.       Insurance policies to be defined by schedule

                                    -       Pre-1985 General Liability Policies

                                    -       London ships policies

                                    -       Pre-April 15, 1990 KACC General
                                            Liability Policies, except joint
                                            MAXXAM policies
<PAGE>
                          ii.      No right to recover to the extent of any self
                                   insurance (i.e., deductibles, SIR, captives)
                                   or workers' compensation

                 c.       Responsibility for and Right to Control Litigation and
                          Settlement after Plan Consummation

                          i.      PI Trust(s) will undertake, at its expense,
                                  the continuation of the insurance coverage
                                  litigation or any other pursuit of recoveries
                                  from insurers for Covered PI Claims, and no
                                  additional demands will be made on the Debtors
                                  for additional funds or distributions related
                                  to the conduct of the insurance coverage
                                  litigation or other pursuit or such
                                  recoveries, except insofar as any Debtor or
                                  affiliate thereof may be required to make a
                                  payment (premium, loss or otherwise) in order
                                  to satisfy a condition precedent (such as
                                  "exhaustion") to coverage, in which case the
                                  PI Trust(s) will advance such payment on
                                  behalf of the Debtor or affiliate.

                          ii.     PI Trust(s) will have right to control the
                                  coverage litigation and to settle as to
                                  Covered PI Claims under the Insurance
                                  Policies.

                          iii.    PI Trust(s) will be authorized to proceed in
                                  the name of reorganized KAC to the extent
                                  required to pursue recoveries under the
                                  Insurance Policies. If required by law, e.g.,
                                  if any of the assignments of rights to
                                  insurance proceeds described above are held
                                  not to be effective, reorganized KAC will
                                  appear in and prosecute actions to pursue
                                  recoveries under the applicable insurance
                                  policies for the benefit and at the expense
                                  of the PI Trust(s).

                          iv.     Reorganized KAC will undertake to provide
                                  information, including all historical files
                                  and records, to the PI Trust(s), as required
                                  in the conduct of the coverage litigation or
                                  other pursuit of recoveries for Covered PI
                                  Claims, subject to reimbursement for expenses.

        3.       $13 million in cash from KACC.

        4.       Distributions in respect of an $829,500,000 allowed unsecured
                 prepetition claim against KACC (75% of the US $1.106 billion
                 intercompany claim held by Kaiser Finance Corporation against
                 KACC), which shall be in the form of equity of KAC and shall
                 be made at the same time or times that equity distributions
                 are made to other unsecured creditors of KACC.

        5.       100% of the stock of KAE Trading, Inc., which, as of the
                 effective date of the Plan, will own only the Brooklawn
                 property located in Louisiana and the lessor's interest in
                 a lease of such property between KACC and Defense National
                 Stockpile Center (as modified as of October 18, 2002), except
                 that, if, based on an updated environmental and/or appraisal
                 report acceptable to the parties hereto, the Brooklawn
                 property is determined to have zero or negative value,
                 different

                                       2

<PAGE>

                  property acceptable to all the parties hereto shall be
                  substituted for the Brooklawn property, provided that such
                  substitute property shall have a value of $1 million or less.

D.       Insurance Neutrality

         The parties hereto will discuss an appropriate insurance neutrality
provision for inclusion in the Plan, PI Trust(s) and confirmation order.

E.       Trust and Trust Distribution Procedures

         1.       TDPs established for asbestos, silica and CTPV claims and
                  demands

         2.       Matrix for payment of NTHL claims, with recoveries limited to
                  premises insurance only.

         3.       TDPs will set forth the requirements for claim submission and
                  resolution, including specific medical criteria, product
                  exposure requirements, claim valuation terms, mechanisms to
                  assure consistency of treatment and conserve assets for future
                  claims.

F.       Restrictions on Transfer of KAC Equity

         The parties hereto shall cooperate with each other in formulating
restrictions on transfers of reorganized KAC equity and/or share lock-up
agreements regarding KAC equity in an effort to prevent an ownership change of
reorganized KAC (and to provide a reasonable margin of error for such purpose),
and thereby preserve the unlimited use of reorganized KAC's anticipated
consolidated federal income tax net operating losses, which restrictions and/or
share lock-up agreements shall be acceptable to the parties.

G.       Conditions Precedent to Plan

         Court approval of (1) the settlement and release agreement regarding
prepetition and postpetition intercompany claims entered into between the
Debtors and the Creditors' Committee, (2) the settlement agreement entered into
between the Debtors and the PBGC and (3) the amended agreement with the USWA
will be conditions precedent to confirmation of the Plan, and the parties
hereto agree to use their commercially reasonable best efforts to support
prompt approval of each.

H.       Support of KAC Plan

         All parties hereto agree to use their commercially reasonable best
efforts to support prompt confirmation and consummation of the Plan with the
terms described above and the pending plans of reorganization for AJI/KJC and
KAAC/KFC, and to not directly or indirectly support efforts by other parties to
oppose prompt confirmation of the Plan and these pending plans. The parties
hereto acknowledge that there are other terms of the Plan that have not yet
been agreed upon by certain parties. The rights of the parties with respect to
such other provisions of the Plan, including the right to object to the Plan on
the basis of such other provisions, or any provision dividing the Trust Assets
described in Paragraph C hereof, are expressly reserved.

                                       3

<PAGE>

          Amendment of Term Sheet

          This term sheet may be amended by written amendment acceptable to all
the parties hereto.

Dated: January 26, 2005
       ----------------

                              Debtors and Debtors in Possession

                              By: Edward F. Houff
                                 --------------------------------------------
                              Title: Senior VP & Chief Restrictionary Officer
                                    -----------------------------------------

                              Unsecured Creditors' Committee

                              By: /s/ Lisa G. Beckerman
                                 ---------------------------
                              Title: Counsel for the secured
                                    ------------------------
                                     Creditor's Committees

                              United Steelworkers of America

                              By: David A. Foster
                                 --------------------------
                              Title: Director, District #11
                                    -----------------------
<PAGE>

                                  Pension Benefit Guaranty Corporation

                                  By:  /S/ Jim P. Eggeman
                                     ------------------------------------
                                  Title: Attorney
                                        ---------------------------------

                                  Asbestos Claimants' Committee

                                  By:  /S/  Ronald E. Reinsel
                                     ------------------------------------
                                  Title: Attorney for Asbestos
                                        ---------------------------------
                                         Claimants' Committee

                                  Asbestos Future Claimants' Representative

                                  NIV on behalf of Michael Murphy
                                  ---------------------------------------

                                  Silica/CTPV Future Claimants' Representative

                                  Anne Ferrazzi
                                  ---------------------------------------

                                       5

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