Document:

Employment Agreement between Terry L. Cook

 EXHIBIT 10.3 
 EMPLOYMENT AGREEMENT 
 OF

 TERRY L. COOK 
 This EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into effective as of January 1, 2007, by and between TERRY L. COOK (“Employee”) and BUSINESS STAFFING, INC. (the
“Company”). 
 RECITALS 
 A. Employee is currently employed by the Company pursuant to that certain Employment Agreement by and between the Company and Employee dated effective January 1, 2002, as amended by that certain Amendment
to Employment Agreement dated December 15, 2004 (the “2002 Amended Employment Agreement”). The Company leases Employee to Kaiser Ventures LLC (“Kaiser”) and he works as Kaiser’s Executive Vice President
– Administration, and General Counsel and Corporate Secretary. 
 B. The intent of this Agreement is to set forth the terms and
conditions of Employee’s employment by the Company and his serving as a leased employee to Kaiser. This Agreement shall supersede the 2002 Amended Employment Agreement. 
 NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows: 
 1. EMPLOYMENT, POSITIONS AND DUTIES. The Company
hereby employs Employee upon the terms and conditions set forth in this Agreement. Employee acknowledges and agrees that he will be a leased employee only to Kaiser. Employee’s positions with Kaiser as a leased Employee shall be Executive Vice
President – Administration, and General Counsel and Corporate Secretary. In such capacity, Employee shall have the responsibilities and duties normally incident to such positions, including, but not limited to, those duties and responsibilities
set forth in Schedule “A” attached hereto and incorporated herein by this reference and such other duties and responsibilities as may be reasonably assigned to him from time-to-time by Kaiser’s President or Chief
Executive Officer. Employee agrees to devote his full business time and attention to the discharge of his duties and responsibilities under this Agreement. 
 2. TERM AND CREDIT FOR PAST EMPLOYMENT. Employee’s employment under the terms of this Agreement
shall commence as of January 1, 2007, and shall continue for a minimum of five (5) years from the effective date of this Agreement (“Initial Term”) unless sooner terminated as provided herein; provided, however, the term
of this Agreement shall be automatically extended on a month to month basis after the Initial Term until such time as Kaiser has disposed of all of its material assets unless otherwise earlier terminated as provided in this Agreement.
Notwithstanding the date of the commencement of this Agreement, for purposes of the calculation of benefits or for any other similar purpose, the Company shall credit Employee with the time he was employed by the Company, Kaiser or any predecessor
of Kaiser. 
  

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 3. BASE SALARY. As of January 1, 2007,
Employee’s annual base salary shall be $275,450. Prior to the first meeting of the Board of Managers in any calendar year, the Human Relations Committee of the Board will review Employee’s salary and report its recommendations for any
revision to the full Board at such meeting and will communicate its review to the Company. Employee’s annual base salary shall be adjusted effective as of January 1 of each year, commencing January 1, 2008, by the increase in the
consumer price index over the prior applicable year utilizing the Consumer Price Index for Urban Wage Earners and Clerical Workers, U.S. City Average, All Items, published by the Bureau of Labor Statistics of the United Stated Department of Labor.
The entire Board of Managers of Kaiser together with the Company have final responsibility for the review, approval or disapproval of any revisions to Employee’s annual base salary. 
 4. INCENTIVE PERFORMANCE BASED BONUS
PROGRAM. Employee acknowledges that in 2001 Kaiser discontinued it historical annual performance bonus program and that the Company is also terminating its discretionary cash
bonus program simultaneously with the effective date of this Agreement. In lieu of these previous cash bonus programs, Employee shall be eligible for and be paid an incentive performance bonus in accordance with the terms of the Company’s
Executive Officer New Revenue Incentive Participation Plan dated effective January 1, 2007, the terms of which are incorporated herein by this reference. 
 5. ANNUAL GRANT OF CLASS A UNITS AND VESTING AND CONVERSION
OF PREVIOUSLY GRANTED OPTIONS. During the term of this Agreement, the Company shall cause to be issued to Employee 25,000 Kaiser Class A
Units as of January 15 of each year beginning as of January 15, 2007, if Employee is employed by the Company as of the immediately preceding December 31; provided, however, the amount of this annual grant of Class A Units shall
be reviewed may be modified by the Company prior to the January 15, 2010 grant of Class A Units. Notwithstanding the foregoing, the annual grant of Class A Units may be delayed until the Employee complies with the provisions of
Paragraph 6.b. below. 
 It is acknowledged and agreed that all options granted to Employee by Kaiser or its predecessor prior to the date of
this Agreement are fully vested in Employee and all outstanding options to acquire Kaiser Ventures Inc. common stock have been converted to options to acquire Class A Units in Kaiser. 
 6. OTHER BENEFITS. 
 a. INSURANCE AND OTHER BENEFITS. Employee will be entitled
to participate in all benefits provided by the Company to its employees and to senior executives in accordance with and subject to the Company’s policies and procedures as they may exist from time-to-time, including, but not limited to, medical
and dental insurance, life insurance, disability insurance, 401(k) savings plan, any pension or retirement plan, deferred compensation plan, education and seminar reimbursement, 

  

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car allowance, and reimbursement of reasonable expenses for company business. These benefits shall be at least at the same level as provided to Employee as
of the day prior to the effective date of this Agreement except that contributions to the Company’s 401(k) savings plan, money purchase plan and supplemental executive retirement plan of the Company shall be appropriately modified to reflect
the current compensation of Employee. Benefits shall also include life insurance for the benefit of Employee with a face amount of not less than that in effect as of December 31, 2002, with premium paid in accordance with the Company’s
policies in effect on December 31, 2002, except that the Company may self-insure if insurance is not available on a commercially reasonably basis. In addition, the Company shall only be responsible for the payment of the premium for the first
level (first one-third) of Employee’s life insurance benefit and the third level (the last one-third) of such coverage. Employee shall be responsible for the payment of the premium for the second level (second 1/3) of coverage. Employee shall
be entitled to four (4) weeks of paid vacation per year. 
 b. ADDITIONAL WELLNESS
BENEFITS. In addition to the benefits described above, the Company shall reimburse Employee for all costs associated with an annual physical not otherwise covered by insurance and the costs not otherwise covered
by insurance for a more comprehensive physical exam and medical tests and evaluation every two years, including the costs that may be associated with a full body scan. Employee’s first comprehensive medical exam shall be completed by
December 31, 2007, with the next comprehensive exam to be completed by December 31, 2009, and shall continue thereafter every two years during the term of this Agreement. If as a result of any annual physical Employee is diagnosed with a
medical condition that may reasonably be considered to materially impact Employee’s performance of his duties under this Agreement, Employee shall promptly advise the Chairman of Kaiser’s Human Relations Committee of such diagnosis. In the
event Employee does not complete the comprehensive medical exam every two years as provided herein, Employee’s annual grant of Class A Units shall be delayed until such time as Employee complies with this comprehensive medical exam
requirement. For example, if Employee fails to have a comprehensive medical exam completed by December 31, 2007, the annual grant of Class A Units to Employee which Employee would have received on January 15, 2008 will be delayed
until such time as Employee completes the required comprehensive medical exam. The Company may also pay or reimburse Employee for certain other reasonable health and wellness benefits as may be pre-approved by the Company. Employee shall provide to
the General Counsel of the Company written notice that he has completed the comprehensive medical exam as provided herein together with reasonable documentation that such exam was performed. 
 7. COMPENSATION PAYABLE UPON TERMINATION BY THE
COMPANY WITHOUT CAUSE. In the event Employee is terminated by the Company for any reason except for “cause”, as “cause” is
defined in Paragraph 11 below, the Company shall pay to Employee the following compensation and Employee shall receive the following benefits as severance benefits: 
 a. if the termination occurs during the Initial Term, Employee shall be paid two (2) years of annual base salary; 
  

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 b. the Company shall continue to provide and pay its portion of all of Employee’s health
insurance, dental insurance, vision insurance, life insurance, wellness, welfare and other benefits for a period of twenty four (24) months following the date of termination, including the Company’s portion of any retirement and deferred
compensation plans such as the Company’s 401(k) plan and SERP, as applicable. After such termination, Employee shall be entitled, for a period of three years to exercise his Equity Incentives as to any then vested, including any options vesting
within one year of termination as provided in the next sentence, notwithstanding any other applicable provision contained in any option agreement. In addition to the foregoing, with respect to any restricted Equity Incentives, Employee shall
continue to vest in such securities for a period of one-year following termination. 
 All amounts due Employee shall be payable in one lump
sum or as may be mutually agreed upon between Employee and the Company as may be permitted under applicable law. Employee shall have no duty to seek other employment during this period of time and there shall be no offset for any compensation paid
to Employee from any other source. If the Company or an Affiliate of the Company desires to retain Employee as a consultant after termination of Employee’s employment, the parties shall negotiate the terms of such consulting agreement which
shall be documented in an agreement executed by the parties. 
 8. COMPENSATION PAYABLE UPON
CONSTRUCTIVE TERMINATION. In the event that Employee is constructively terminated by the Company as defined in Paragraph 9 below, Employee shall be paid and receive the same compensation and benefits
as provided in Paragraph 7 above for termination by the Company without cause. 
 9. CONSTRUCTIVE
TERMINATION DEFINED. Employee shall be deemed to have been constructively terminated by the Company upon the occurrence of any of the following events: 
 a. The assignment to Employee of duties materially and adversely inconsistent with Employee’s positions at Kaiser as a leased employee as of
the effective date of this Agreement. This includes a change in reporting responsibilities, authority including title, or responsibilities; provided, however, a lateral transfer within Kaiser or to an Affiliate shall not be deemed a constructive
termination; 
 b. Any requirement that Employee permanently relocate to an office more than 50 miles from the then location to which
he is assigned as of the effective date of this Agreement; and/or 
 c. Any failure to provide Employee with compensation and benefits
in the aggregate on terms that are not materially less favorable than those enjoyed by Employee under this Agreement as of the effective date of this Agreement, or the subsequent taking of any action that would materially reduce any of
Employee’s compensation and benefits in effect as of the date of this Agreement unless such compensation and benefits are substantially equally reduced for executive officers of the Company as a group (as measured by a percentage) or there is
less than a ten percent (10%) reduction in compensation or benefits. 
  

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 then, at Employee’s option, exercisable within ninety (90) days of the date Employee knew, or
should have known exercising reasonable care, of the occurrence of any of the foregoing events and the expiration of any applicable cure period, Employee shall have the right to terminate his employment by written notice to the Company, and on the
date of such termination the Company will pay Employee the compensation and benefits described in Paragraph 11 below. 
 10.
TERMINATION FOR CAUSE. If the Company elects to terminate Employee’s employment for “cause” (as defined Paragraph 11 below),
Employee’s employment will terminate on the date fixed for termination by the Company and thereafter the Company will not be obligated to pay Employee any additional compensation or extend his benefits, other than the compensation due and owing
up to the date of termination and as may be required by law, as well as any compensation or amounts that may be due under various compensation and retirement and deferred compensation plans as provided in Paragraph 15 below. After such termination,
Employee shall be entitled, for a period of one hundred and twenty (120) days, to exercise any options or other equity related incentives that are vested as of the date of termination. 
 11. DEFINITION OF “CAUSE.”
“Cause” for the purposes of this Agreement shall mean any of the following: 
 a. Willful breach by Employee of any provision
of this Agreement, provided, however, if the breach is not a material breach, the Company shall give Employee written notice of such breach and Employee shall have thirty (30) days in which to cure such breach. No written notice or cure period
shall be required in the event of a willful and material breach of this Agreement by Employee; 
 b. Gross negligence or dishonesty in
the performance of Employee’s duties or possibilities hereunder; 
 c. Engaging in conduct or activities or holding any position
that materially conflicts with the interest of, or materially interferes with Employee’s duties and responsibilities to the Company, Kaiser or their Affiliates; or 
 d. Engaging in conduct which is materially detrimental to the business of the Company, Kaiser or their Affiliates. 
 12. VOLUNTARY TERMINATION. Employee’s employment by the Company may be terminated at any time upon the parties’ mutual written
agreement. In the event of a mutual written agreement, Employee’s compensation and shall be as set forth in such agreement. In the event of Employee’s voluntary termination of employment, the Company shall not be obligated to pay Employee
any additional compensation, other than the compensation due and owing as the date of termination and as may be required by law, as well as any compensation or amounts that may be due under 

  

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various compensation and retirement and deferred compensation plans as provided in Paragraph 15 below. After such termination, Employee shall be entitled for
a period of hundred and twenty (120) days to exercise any Equity Incentives that are vested as of the date of termination. 
 13.
DISABILITY BENEFITS. In the event of the disability of Employee for any reason, the Company shall continue to pay to Employee his salary and benefits less short-term disability payments and less
long-term disability payments for a period of two (2) years. In addition, upon permanent disability, the vesting of all retirement and deferral compensation plans and all outstanding Equity Incentives shall continue to accrue for a period of
two (2) years after the date of disability in the same manner as if Employee were still employed by the Company and serving as a leased employee to Kaiser during that period. 
 14. DEATH BENEFITS. In the event of Employee’s death, Kaiser
shall pay to Employee’s personal representative or his estate, Employee’s salary and benefits through the end of the month in which the death occurred plus the compensation and benefits that would be payable to Employee upon termination
without cause as provided in Paragraph 7 of this Agreement, except that any compensation that would be payable to Employee for termination during the Initial Term as provided in Paragraph 7.a. of this Agreement shall not be payable upon death. The
proceeds from any life insurance shall be for the sole benefit of Employee’s designated beneficiaries or if there are no designated beneficiaries, Employee’s estate. Employee’s estate or personal representative shall have at least one
(1) year after the date of Employee’s death while in the employment of the Company in which to exercise all vested Equity Incentives, unless the terms of an Equity Incentive provides for a longer period of time. 
 15. PAYMENTS PURSUANT TO OTHER COMPENSATION PLANS. In
addition to the compensation and benefits to be paid to Employee pursuant to this Agreement, upon termination of Employee’s employment with the Company Employee (or his estate as applicable) shall be paid or continue to receive the benefit of
existing and future compensation, bonus, retirement and deferred compensation plans subject to and in accordance with the terms of each respective plan. As of the date of the effective date of this Agreement, Employee and the Company agree that the
following plans are in effect: (i) Business Staffing, Inc. 401(k) Plan; (ii) Business Staffing, Inc. Supplemental Executive Retirement Plan; (iii) Business Staffing, Inc. Deferred Compensation Plan; (iv) Class C and D Units; and
(v) Executive Officer New Revenue Incentive Participation Plan. 
 16. POSSIBLE REDUCTION
IN CERTAIN BENEFITS. 
 a. Except
as provided in Paragraph 17.b. below, Employee shall in no circumstances receive “payments in the nature of compensation” from the Company which would result in “excess parachute payments” (as that term is defined in Sections
280G and 4999 of the Internal Revenue Code of 1954, as amended, or any equivalent or analogous term as shall in the future be defined in any law or regulation governing the amount of severance compensation that may be paid without penalty to an
officer of a company upon a change in control of the Company). In the event either 

  

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Employee or the Company shall be advised in writing by his or its counsel that Employee would receive excess parachute payments if all payments under all
contacts between Employee and the Company were made, such opinion shall be confidentially disclosed to the other party. If it is mutually determined that such payments would trigger the excess parachute payments provisions, Employee shall receive
only such compensation and benefits under his contracts with the Company (not to exceed those permitted without constituting excess parachute payments) which he, in his sole discretion, has designated in written notice to the Company. Employee shall
have a minimum of thirty (30) days in which to make such written designation. In the event of a disagreement between the counsel of the respective parties as to whether a payment would result in excess parachute payments, such counsel shall
jointly designate an independent tax counsel (whose fees shall be paid by the Company) within 10 days who shall promptly make a conclusive determination of the matter. 
 b. Notwithstanding anything else to the contrary, in the event Employee is terminated pursuant to Paragraph 7 above, Employee shall have the right, in his sole discretion, to elect to receive all or any part of
the compensation payable to him upon termination (or which would have been due under Paragraph 7 but for a previous election under Paragraph 17.a.) without regard to whether any such amounts may constitute “excess parachute payments.” If
Employee fails to provide the Company a written designation within thirty (30) days, he shall be presumed to have elected to receive all compensation and benefits due him without regard to whether any such compensation or benefits shall
constitute “excess parachute payments.” 
 c. Nothing in this Paragraph 17 shall be construed or deemed to be a forfeiture
of any compensation or benefits that Employee may elect not to accelerate due to any concern about the receipt of “excess parachute payments 
 17. CONFIDENTIALITY. 
 a. EMPLOYEE’S
OBLIGATIONS. Employee agrees that (a) except as provided in this Agreement Employee shall maintain the confidential nature of any Proprietary Information received or acquired by him, and (b) Employee
shall use such Proprietary Information solely for the purpose of meeting his obligations under this Agreement and not in connection with any other business or activity. “Proprietary Information” means all oral, written or recorded
information about or related to the Company, Kaiser or any of their Affiliates or its or their technology, assets, liabilities, or business, whether acquired before or after the date hereof, and regardless of the manner in which it is acquired,
together with any documents or other materials prepared by Employee which contain or reflect such information. After termination of employment upon demand of the Company, or Kaiser, as applicable, Employee agrees to return or destroy any and all
materials containing any Proprietary Information. 
 b. COMPANY
OBLIGATIONS. The Company agrees that it shall maintain and provide information regarding Employee in accordance with generally accepted industrial and business practices and that it will seek to require Kaiser
to follow the same requirements. 
  

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 c. LIMITATIONS ON CONFIDENTIAL
OBLIGATIONS AND USE RESTRICTIONS. The restrictions in Paragraphs 17.a. and b. above do not apply to information which the disclosing party can demonstrate (i) is
then in the public domain by acts not attributable to such disclosing party or (ii) is hereafter received on an unrestricted basis by such disclosing party from a third party source who, to such disclosing party’s knowledge after due
inquiry, is not and was not bound by confidentiality obligations to the Company, Kaiser or any Affiliate thereof (in the case of Paragraph 15.a.) or to Employee (in the case of Paragraph 17.b.). In addition, Employee and the Company and, Kaiser or
any Affiliate is permitted to disclose any Proprietary Information as necessary in the defense or prosecution of any legal action. 
 d.
ACTIONS IF DISCLOSURE REQUIRED. If Employee is required by law to make any disclosure otherwise prohibited hereunder, such party shall use its best efforts to provide the
other with prompt prior notice where possible so that (a) the other party (with the reasonable cooperation of the party required to make such disclosure) may seek an appropriate protection order or other remedy and/or (b) the parties can
seek in good faith to agree on the appropriate scope and approach to disclosure. If a protective order or other remedy is not obtained, the party required to make such disclosure may furnish only that portion of information protection hereby which
it is legally compelled to disclose and shall use its reasonable efforts to obtain confidential treatment for all information so disclosed. 
 e. INJUNCTION. Each party agrees that remedies at law may be inadequate to protect against breach of this Paragraph 18, and hereby agrees to the granting of injunctive relief without proof of actual
damage. 
 18. ARBITRATION OF
DISPUTES. If Employee and the Company cannot resolve a dispute (whether arising in contract or tort or any other legal theory, whether based on federal, state or local statute or
common law and regardless of the identities of any other defendants) that in any way relates to or arises out of this Agreement, the termination of Employee’s employment relationship with the Company or any Affiliate thereof, (without limiting
the generality of any other Paragraph herein), then such dispute shall be settled as follows: 
 a. The Company and Employee agree to
jointly select a judicial officer who is affiliated with the Judicial Arbitration and Mediation Service, or such other equivalent organization as the Company and Employee may mutually select, to act as the trier of fact and judicial officer in such
dispute resolution; 
 b. If the Company and Employee are unable to agree upon a particular judicial officer, then the decision shall
be made by the chief executive officer of the Judicial Arbitration and Mediation Service, after consulting with the Company and Employee; 
 c. the Company and Employee shall have the same rights of discovery as if the dispute were being resolved in the Superior Court of the State of California. However, the judicial officer shall, on his own motion, or the request of
either the Company or Employee, have the authority to extend or reduce the time periods therefore; and, 
  

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 d. The judicial officer serving hereunder shall be designated as a referee under the provisions of
Title VIII, Chapter 6 of the California Code of Civil Procedure (Sections 638 through 645. 1, inclusive). Payment for the services of the judicial officer and the rights and procedure of appeal, and/or other review of the decision, shall be made as
provided in such sections. 
 The judicial officer shall have the right to grant injunctive relief, specific performance and other equitable
remedies. 
 19. MISCELLANEOUS. 
 a. DEDUCTIONS. Applicable federal and state income taxes, social security contributions (FICA), Medicare
contributions, medical insurance premiums and any other appropriate or customary deductions shall be withheld from any compensation paid to Employee by the Company. 
 b. ENTIRE AGREEMENT; AMENDMENTS. This Agreement states the entire understanding and agreement between the parties with respect to its subject matter as
of the date of this Agreement, and may only be amended by a written instrument duly executed by Employee and the Company; and to the extent it directly impacts Kaiser, the written consent of Kaiser. 
 c. ASSIGNMENT. This Agreement and the rights and obligations of Employee may not be sold, transferred, assigned,
pledged or hypothecated by Employee. 
 d. NON-WAIVER. Failure to insist upon strict
compliance with any provision of this Agreement or the waiver of any specific event of non-compliance shall not be deemed to be or operate as a waiver of such provision or any other provision hereof or any other event of non-compliance. 

e. BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the Company,
its successors and assigns and, Employee’s heirs, successors, and legal or personal representatives. 
 f.
HEADINGS. The headings throughout this Agreement are for convenience only and shall in no way be deemed to define, limit, or add to the meaning of any provision of this Agreement. 
 g. CONTEXT. Whenever required by the context, the singular shall include the plural, the plural the singular, and one
gender such other gender as is appropriate. 
 h. NOTICES. All notices, request, demands, consents and
other communications hereunder shall be transmitted in writing and shall be deemed to 

  

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have been duly given when hand delivered or sent by certified United States mail, postage prepaid, with return by certified requested, addressed to the
parties as follows: 
  

	
	 Business Staffing, Inc.
 3633 E. Inland Empire Blvd.,
Suite 480
 Ontario, CA 91764
 ATTENTION: General Counsel

	
	WITH COPY TO:
	 3633 E. Inland Empire Blvd., Suite 480
 Ontario, CA
91764
 ATTENTION: Chairman of Human Relations Committee

	
	 Terry L. Cook
 10154 Whispering Forest Dr.
 Alta Loma, CA 91737

 i. COSTS. In any action taken to enforce the provisions of
this Agreement, the prevailing party shall be reimbursed all costs incurred in such legal action including reasonable attorney’s fees in such action. 
 j. SEVERABILITY. If any provision or clause of this Agreement, as applied to any party or circumstances shall be adjudged by a court to be invalid or unenforceable, said
adjudication shall in no manner effect any other provision of this Agreement, the application of such provision to any other circumstances or the validity or enforceability of this Agreement. 
 k. DEFINITION OF AFFILIATE, ENFORCEABILITY BY
KAISER AND TERMINATION AS A LEASED EMPLOYEE. The term “Affiliate” for purposes of this Agreement shall mean any person
or entity now or hereafter in control, controlled by or in common control with the Company. It shall also include any direct or indirect subsidiary of the Company and any company in which the Company has more than a ten percent (10%) ownership
interest. The Parties agree that Kaiser shall be a third party beneficiary on this Agreement and shall have the right to enforce its terms. The parties also agree that for purposes of this Agreement, that termination by Kaiser of Employee as a
leased employee shall also be deemed and shall be a termination of Employee by the Company. 
 l. ACKNOWLEDGMENT
REGARDING ISO’S. Employee acknowledges that he is responsible for the tax consequences of all severance compensation he may receive and that certain actions may need to be taken by Employee within limited
periods of time to preserve the tax status of any incentive options. The Company makes no representation or warranty that any past or future grant of a stock option or Equity Incentive to Employee qualifies as an incentive option. 
 m. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the
State of California. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement to be effective as
of the day and year first written above not withstanding the actual date of signature. 
  

							
	“EMPLOYEE”	 		 	“COMPANY”
	TERRY L. COOK	 		 	BUSINESS STAFFING, INC.
				
	 /s/ Terry L. Cook
	 		 	By:	 	 /s/ Richard E. Stoddard

	Terry L. Cook	 		 		 	Richard E. Stoddard
		 		 		 	President

  

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 CONSENT OF HUMAN RELATIONS
COMMITTEE 
 OF 
 KAISER VENTURES LLC 
 TO 
 TERRY L. COOK EMPLOYMENT AGREEMENT 
 The Human Relations Committee of Kaiser Ventures LLC (“Kaiser”) hereby consents to the employment agreement between Business Staffing,
Inc. (the “Company”) and Terry L. Cook dated effective January 1, 2007, as set forth above and the payment of all sums that may be required of Kaiser to reimburse the Company under the terms of such agreement as provided in the
Administrative Services Agreement between the Company and Kaiser dated as of January 1, 2003. 
  

			
	KAISER VENTURES LLC
	HUMAN RELATIONS COMMITTEE
		
	By:	 	 /s/ Todd G. Cole

		 	Todd G. Cole, Chairman

  

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 SCHEDULE “A” 
 TERRY L. COOK 
 EXECUTIVE VICE PRESIDENT - ADMINISTRATION, 
 GENERAL
COUNSEL AND COMPANY SECRETARY 
 These positions report to the Board of Managers,
Chief Executive Officer and Chief Operating Officer, of Kaiser Ventures Inc. (“Kaiser”) as appropriate and to the Company. The positions are to be filled by Business Staffing, Inc. through the services of Terry L. Cook. 

RESPONSIBILITIES. Legal services, business insights, and technical assistance in the following areas, among others: 

 

	 	•	 	General legal and business advice; 

  

	 	•	 	All contractual relations, including joint ventures, leases, partnership agreements, purchase and sale agreements, collection of receivables, tenant disputes, etc.;

  

	 	•	 	Due diligence investigations and legal evaluation of acquisition targets, plus assistance in preparation, review and closing of acquisition agreements; 

  

	 	•	 	Legal risk analysis; 

  

	 	•	 	Corporate legal strategy; 

  

	 	•	 	Personnel administration and related issues; 

  

	 	•	 	All SEC compliance matters (other than financial statements and related information which you will coordinate with the Chief Financial Officer), including preparation of reports on
Forms 10-K, 10-Q, 8-K, Form 3 & 4 filings, oversight of Company policies on insider trading and confidential information, proxy materials, and shareholder meetings; 

  

	 	•	 	Advise the Board of Directors regarding procedures, legal issues, and legal positions; 

  

	 	•	 	Corporate governance matters, such as corporate minutes, Board of Director resolutions and special matters, by-laws and articles of incorporation, annual corporate filings, trade
names, maintenance of corporate subsidiaries, etc. for both Kaiser and MRC; 

  

	 	•	 	Supervision of litigation matters; 

  

	 	•	 	Development of defense strategies involved in defending Kaiser against lawsuits; 

  

	 	•	 	Regulatory and agency issues; 

  

	 	•	 	Resolution of outstanding bankruptcy reorganization matters; 

  

	 	•	 	Providing legal assistance to subsidiaries of Kaiser, as appropriate; 

  

	 	•	 	Participate in major negotiations involving all phases of corporate transactions; 

  

	 	•	 	Corporate, public and media relations; 

  

	 	•	 	Community and agency relations; 

  

	 	•	 	Charitable and political donations; 

  

	 	•	 	Overall lobbying strategy; 

  

	 	•	 	Supervision of environmental compliance and remediation; 

  

	 	•	 	Contract administration; and 

  

	 	•	 	Tenant, vendor and consultant matters. 

  

 13Executive Officer New Revenue Participation Incentive Plan

 EXHIBIT 10.4 
 BUSINESS STAFFING, INC. 
 EXECUTIVE OFFICER NEW REVENUE PARTICIPATION INCENTIVE PLAN 
 This Executive Officer New Revenue Participation Incentive Plan is established and adopted by Business Staffing, Inc. (the “Company”)
effective as of January 1, 2007, upon the following terms and conditions. 
 1. PURPOSES OF THE
PLAN. The purposes of this Plan are to advance the interests of the Company and Kaiser Ventures LLC (“Kaiser”) by: 
  

	 	•	 	Retention of key executive personnel; 

  

	 	•	 	Providing additional incentives to those personnel; and 

  

	 	•	 	Promoting the creation of new sources of revenue for the benefit of Kaiser and to maximize the ultimate distribution of cash to Kaiser’s members. 

 2. OVERVIEW. The Plan creates a performance based incentive pool for the management of the Company, whose value will depend upon the
New Net Revenue (as defined below) generated for the benefit of Kaiser. As further provided herein, the Plan provides for the creation and payment of an incentive pool equal to eighteen percent (18%) of the amount of any New Net Revenue (as
defined below) which shall be payable fifty percent (50%) in Kaiser Class A Units and fifty percent (50%) in either cash or contributions to the Company’s SERP. 
 3. DEFINITIONS. As used herein, the following definitions shall apply: 
 “ANNUAL AUDITED FINANCIAL STATEMENTS” shall mean Kaiser’s annual year end financial statements audited by Kaiser’s independent registered public
accounting firm. 
 “BOARD” means the Board of Directors of the Company. 
 “CLASS A UNITS” means the Class A Units of Kaiser. 
 “COMMITTEE” means a committee of the Company composed of the same individuals that serve on the Human Relations Committee
of Kaiser. To the extent it is involved in such matters, any Committee must comply with any applicable requirements for any payments under this Plan to qualify as “performance-based compensation” under Section 162(m) with respect to
“covered employees” within the meaning of Section 162(m). 
 “COMPANY” means Business Staffing
Inc. 
 “EXECUTIVE OFFICERS” means the persons set forth on Schedule 1 provided
they remain in the employment of the Company and any person that may be added by the Committee in connection with the replacement of a current Executive Officer as provided in Section 9.5. 
 “INCENTIVE BONUS PERFORMANCE POOL” means eighteen percent (18%) of the
Net New Revenue of Kaiser as provided and determined in Section 4.1 below. 
  

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 “KAISER” means Kaiser Ventures LLC and, unless the context otherwise
requires, the subsidiaries of Kaiser. 
 “NEW NET REVENUE” means the positive
difference, if any, determined by the subtraction of New Revenue Expenses from New Revenue. 
 “NEW
REVENUE” means all revenue generated from new lines of business or new sources of revenue for Kaiser that are not historically recurring revenues as of January 1, 2006. New Revenue shall not include revenues generated
from the sale of Kaiser’s existing assets and projects, except as provided herein, distributions from Kaiser’s interest in West Valley MRF, LLC, revenues generated as a result of landfill operations at Eagle Mountain, interest and
investment income. New Revenue shall include, but is not limited to, the items listed on Schedule 2 attached hereto 
 “NEW REVENUE EXPENSES” means all incremental and new direct and indirect expenses incurred in the generation of New Revenue but New Revenue Expenses shall not include the
amortization or depreciation cost of any existing asset or an allocation of any fixed expense or charge, including the allocation of the base salary and benefits of existing employee positions of the Company. For capital assets purchased to generate
New Revenue, New Revenue Expenses shall include the annual depreciation or amortization charge for such capital asset as determined by the Committee, but which in any event shall be fully amortized over the predicted duration of the related New
Revenue stream; provided, however, if the purchase price for the new capital asset should be less than $10,000, it will be deemed fully expensed for purposes of this Plan in the year of purchase. 
 “PLAN” means this Executive Officer New Revenue Participation Incentive Plan. 
 “SERP” means the Company’s Supplemental Executive Retirement Plan that was first established in 1995. 
 4. PAYMENT OF PERFORMANCE INCENTIVE BONUSES. 
 4.1 EARNING OF INCENTIVE BONUSES. Subject to the terms and
conditions of this Plan, the Incentive Performance Bonus Pool shall be eighteen percent (18%) of the New Net Revenue of the Company as measured on a calendar year basis as determined from the Annual Audited Financial Statements beginning with
the calendar year ending December 31, 2007, and it shall be awarded annually to the Executive Officers 
 4.2
TIMING OF THE DETERMINATION OF THE PERFORMANCE INCENTIVE BONUS
POOL. The final determination of the New Net Revenue and the Incentive Performance Bonus Pool for each calendar year shall be made by March 14 of the following calendar year or such earlier date as may be
required by applicable U.S. Internal Revenue regulations to prevent the compensation payable pursuant to this Plan to be considered “deferred” compensation. 
 4.3 PAYMENT. The Incentive Performance Bonus Pool shall be divided among and paid equally to all Executive Officers; provided, however, if any individual shall no
longer be an Executive Officer as of the end of any applicable calendar year, the amount of that Executives Officer’s performance bonus shall be prorated based upon the actual number of days he or 

  

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she served as an Executive Officer during the applicable calendar year unless the Committee should otherwise decide and the Incentive Performance Bonus pool
shall thereafter be divided among and paid to the remaining Executive Officers except that any replacement Executive Officer shall participate, if at all, as provided in Section 9.5 below. Any bonus payable under the Plan shall be paid by
March 14 of each calendar year and shall be paid fifty percent (50%) in Class A Units and fifty percent (50%) , either in cash or by a contribution to the SERP account of the applicable Executive Officer. All Class A Units
shall be issued at fair market value as of the date of the issuance of the Class A Units as established by the Committee. 
 5.
EXAMPLES. Examples of New Revenue, New Revenue Expenses and New Net Revenue and the calculation and payments of amounts under this Plan are attached to this Plan as Exhibit “A.” 

6. REPORTING. Kaiser shall undertake such steps as necessary and appropriate to accurately record New Revenue and New Revenue
Expenses. The Company shall provide each Executive Officer, at any time at which a payment is due under the Plan, with a statement setting forth its calculation of the payment(s) then due. Each Executive Officer shall have fifteen (15) days to
review such statement, and unless such Executive Officer provides written notice to the Company of any objections to the calculation within that period, the calculation shall be final and binding. If an Executive Officer timely objects to the
statement, the dispute will be immediately submitted to a arbitrator agreed by the Company and the Executive Officer(s) or, if no such arbitrator is agreed upon within fifteen (15) days, the dispute shall be resolved under the commercial
arbitration rules of the American Arbitration Association. The determination of the arbitrator shall be final, conclusive and binding on the parties. 
 7. WITHHOLDINGS. The Company shall deduct all federal, state, local and other taxes or withholdings required by law to be withheld with respect to any all amounts paid under this Plan. 
 8. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION. In the event of a
reorganization, recapitalization, unit split, unit distribution, combination of units, merger, consolidation or any other change in the equity structure of Kaiser the Committee will make appropriate adjustments in the number and kind of units (or
other equity interests). However, no fractional Class A Units will be issued pursuant to any such adjustment and the fair market value of any fractional units result from adjustments will be paid in cash to each Executive Officer, as
applicable. 
 9. NON-TRANSFERABILITY OF RIGHTS. 
 9.1 NO TRANSFERS. No Executive Officer may sell, pledge, assign, hypothecate, transfer
or dispose of any of his or her rights under this Plan in any manner other than by will or by the laws of descent or distribution, except that the Company may, if it wishes to do so, allow the spouse of the Participant to hold and/or exercise rights
hereunder pursuant to a qualified domestic relations order as defined by the Code or Title I of ERISA. 
 9.2
DESIGNATION OF BENEFICIARY. An Executive Officer may file a written designation of a beneficiary who is to receive any payments under this Plan in the event of the
Executive 

  

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Officer’s death. If an Executive Officer is married and the designated beneficiary is not his or her spouse, spousal consent shall be required for such
designation to be effective. An Executive Officer may change such designation of his or her beneficiary at any time by written notice, subject to the above spousal consent conditions. 
 9.3 EFFECT OF NO DESIGNATION. If an Executive Officer
dies and there is no living beneficiary validly designated under this Plan, any payments under this Plan due to the Executive Officer will be made to the executor or administrator of the estate of the Executive Officer. 
 9.4. RIGHTS OF PARTICIPANTS AND
BENEFICIARIES. The Company shall pay all amounts payable hereunder only to the Executive Officer or any beneficiaries properly designated pursuant to this Plan. The Company shall not be liable for the debts,
contracts or engagements of any Executive Officer or his or her beneficiaries, and rights to payments under this Plan may not be taken in execution by attachment or garnishment, or by any other legal or equitable proceeding, while in the hands of
the Company. 
 9.5 REPLACEMENT EXECUTIVE OFFICERS. If an Executive
Officer ceases to work for the Company or Kaiser on a full time or part time basis, the Committee may in its discretion elect to allow a replacement Executive Officer (provided the replacement is not already an Executive Officer) to participate in
the Incentive Performance Bonus Pool in any amount up to but not exceeding the amount that would have been received by the former Executive Officer. 
 10. NO RIGHT TO CONTINUED EMPLOYMENT. This Plan shall not confer upon a Executive Officer any right with respect to continuing the Executive
Officer’s employment or consulting relationship with the Company and/or Kaiser, nor shall it interfere in any way with the Executive Officer right or the Company’s right to terminate such employment or consulting relationship at any time,
with or without cause. This Plan shall not affect the rights of the Executive Officers or any other employees to participate under other plans of the Company. 
 11. FUNDING; RIGHTS TO PAYMENT. This Plan is an unfunded arrangement. To the extent any Executive Officer acquires a right to receive payments under the Plan, such rights
shall be no greater than the right of any unsecured creditor of the Company. Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or fiduciary relationship among
the Company, Kaiser and any Executive Officer, which shall continue to be as it was without reference to this Plan. 
 12. ADMINISTRATION.

 12.1 ADMINISTRATOR. The Plan shall be administered by the Committee selected by the
Board. The Committee shall initially consist of the members of Kaiser’s Human Relations Committee. The Committee may increase the size of the Committee and appoint additional members, remove members (with or without cause) and substitute new
members, fill vacancies (however caused), and remove all members of the Committee and thereafter directly administer the Plan, all to the extent permitted by applicable laws, and to the extent relevant, the rules for qualification as
“performance-based compensation” under Section 162(m). 
  

 4 

 12.2 POWERS OF
ADMINISTRATOR. Subject to the provisions of the Plan and, in the case of the Committee, the Committee shall have the authority, in its discretion to take any action provided in this Plan, including: 

 

	 	•	 	to construe and interpret the terms of the Plan; 

  

	 	•	 	to prescribe, amend and rescind rules and regulations relating to the Plan; provided such do not conflict with the terms of any agreement with an Executive Officer; and

  

	 	•	 	to make all other determinations deemed necessary or advisable for administering the Plan. 

 12.3 EFFECT OF DECISIONS. The decisions, determinations and
interpretations of the Board and the Committee made in good faith shall be final and binding on all Executive Officers. 
 13. AMENDMENT
AND TERMINATION OF THE PLAN. This Plan may be amended with the consent of the Executive Officers that are included within the Plan as of the effective date
of the amendment and the Company. The right to earn awards under this Plan will expire on the earlier of the distribution of substantially all the cash proceeds to Kaiser members resulting from a sale of Kaiser’s assets or December 31,
2016. 
 14. MISCELLANEOUS. The Plan shall be governed by, and construed in accordance with the laws of the State of
Delaware (without giving effect to conflicts of law principles). 
 ADOPTED 
 The foregoing Business Staffing, Inc. Executive Officer New Revenue Participation Incentive Plan (and exhibits thereto) was approved by the Board of
Directors of Business Staffing, Inc. to be effective as of January 1, 2007. 
  

			
	BUSINESS STAFFING, INC.
		
	By:	 	 /s/ Richard E. Stoddard

		 	Richard E. Stoddard
		 	President

 APPROVED 
 The foregoing Business Staffing, Inc. Executive Officer New Revenue Participation Incentive Plan (and exhibits thereto) was approved by the Board of
Managers of Kaiser Ventures LLC and Kaiser Ventures LLC agrees to issue Class A Units in accordance with the Plan to be effective as of January 1, 2007. 
  

 5 

			
	KAISER VENTURES LLC
		
	By:	 	 /s/ Todd G. Cole

		 	Todd G. Cole
		 	Chairman of Human Relations Committee

  

 6 

 SCHEDULE 1 
 EXECUTIVE OFFICERS 
 Richard
E. Stoddard 
 James F. Verhey 
 Terry L. Cook 
  

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 SCHEDULE 2 
 NEW REVENUE 
 New Revenue
shall include, but is not limited to, revenue generated from the following items/matters: 
  

	 	•	 	The rental of houses and other facilities at Eagle Mountain; 

  

	 	•	 	The rental of Kaiser’s house at Lake Tamarisk; 

  

	 	•	 	The rental of the Eagle Mountain site for military, law enforcement or similar training; 

  

	 	•	 	The rental of the existing Eagle Mountain prison facilities or a site for construction of a new prison facility; 

  

	 	•	 	Sales and royalties from the sale of minerals and rock products; 

  

	 	•	 	Energy projects; 

  

	 	•	 	The sale or lease of new assets; 

  

	 	•	 	Movies; commercials; photo shoots; and 

  

	 	•	 	Real estate development (excluding pre-development values of pre-existing properties as determined by the Committee) 

  

 8 

 Exhibit “A” 
 To 
 BUSINESS STAFFING, INC.
NEW REVENUE PARTICIPATION INCENTIVE PLAN 
 EXAMPLES OF NEW
REVENUE, NEW REVENUE EXPENSES, CALCULATION AND PAYMENT OF 
 THE INCENTIVE PERFORMANCE BONSUS POOL 
 EXAMPLE 1 
 Assume during
calendar year 2008, Kaiser received $225,000 from the lease of its Kaiser Eagle Mountain facilities for military training under a five (5) year contract, $36,000 from the lease of houses at Eagle Mountain, and $80,000 from the sale of two lots
at Lake Tamarisk. One of Kaiser’s employees was paid $2,000 in over time directly related to the military training conducted Eagle Mountain, an air conditioning unit was replaced at one of the houses rented for a full year at a price of $5,000
and it has an estimated useful life of 10 years, and a 6% commission was paid in connection with the sale of the Lake Tamarisk Lots. In this example, items that would constitute New Revenue would be: (i) the $225,000 received from the lease of
the Eagle Mountain facilities for military training; and (ii) the $36,000 received from the rental of houses at Eagle Mountain. New Revenue would not include the sale of the Lake Tamarisk lots as those are existing assets of Kaiser. New Revenue
Expenses would be: (i) the $2,000 in overtime paid to Kaiser’s employee but no portion of his regular salary would be a New Revenue Expense; and (ii) the full cost of the air conditioning unit of $5,000 because it was a capital asset
with a purchase price of less than $10,000. New Net Revenue would be $254,000 calculated as follows: New Revenue of $261,000 ($225,000 + $36,000) less New Net Revenue Expenses of $7,000. The Incentive Performance Bonus Pool would equal $45,720
calculated as follows: (18% of $254,000). In addition, assume that the fair market value of Kaiser’s Class A Units was determined to be $.50. Each of the three Executive Officers would receive an incentive performance bonus of $15,240
payable as follows: 50% in Class A Units at $.50 per unit which would result in 15,240 units being issued to each officer (no fractional units would be issued) and $7,120 in cash or a SERP contribution. 
 EXAMPLE 2 
 Assume the same
facts as in Example 1 above, but also assume that Kaiser spent an additional $25,000 to construct a high speed internet line for the direct benefit of the military training exercises which is amortized over five years and it sold rock products for a
royalty of $3.00 per ton and it sold 50,000 tons for a highway construction project for a total of $150,000. Outside legal services for $12,000 were spent to collect the revenues generated from the lease of the Eagle Mountain facility for military
training. In addition, to those items identified above as New Revenue, the sale of the rock for $150,000 would be New Revenue and the amount paid in legal expenses and the amortized costs of the high speed internet line would be New Expenses. In
this example, the New Net Revenue of $387,000 would be calculated as follows: New Revenue of $411,000 consisting of: (i) Military training revenues of $225,000 + housing rentals of $36,000 + rock sales of $150,000. From New Revenue would be
subtracted New Revenue Expenses of $24,000 consisting of: (i) $2,000 in overtime; (ii) $5000 which is the full cost of the new air conditioning unit since its purchase price was less than $10,000; (iii) $5,000 which is the amortized
cost of the new internet line; and (iv) $12,000 which is the legal fees to collect the military training rent. The Incentive Performance Bonus Pool would equal $69,660 calculated as follows: (18% of $387,000). Each of the Executive Officers
would receive an 

  

 9 

 
incentive bonus of $23,220 payable 50% in Class A Units and 50% in either cash or a contribution to the SERP. The number of Class A Units to be
issued to each Executive Office in the example would be 23,220 units (no fractional units would be issued) and $11,610.00 in either cash or a SERP contribution. 
  

 10

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