Document:

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                                                                  EXHIBIT 10.1.3
                                                                  ==============

                              AMENDMENT NO. 3 TO
                              ------------------
                        PURCHASE AND SALE AGREEMENT AND
                        -------------------------------
                           JOINT ESCROW INSTRUCTIONS
                           -------------------------

     THIS AMENDMENT NO. 3 TO PURCHASE AND SALE AGREEMENT AND JOINT ESCROW
INSTRUCTIONS (this "Amendment") is made and entered into and effective as of
                    ---------
August 15, 2000, by and between KAISER VENTURES INC., a Delaware corporation,
and KAISER STEEL LAND DEVELOPMENT, INC., a Delaware corporation (collectively,
"Seller"), and CCG ONTARIO, LLC, a Delaware limited liability company ("Buyer").
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                                   RECITALS
                                   --------

     A.   WHEREAS, Buyer and Seller have entered into that certain Purchase and
Sale Agreement and Joint Escrow Instructions dated as of July 13, 2000, as
amended by that certain Amendment No. 1 to Purchase and Sale Agreement and Joint
Escrow Instructions dated as of July 20, 2000, and that certain Amendment No. 2
to Purchase and Sale Agreement and Joint Escrow Instructions dated July 27, 2000
and that certain side letter amendment dated August 11, 2000 (as amended, the
"Purchase Agreement");
 ------------------

     B.   WHEREAS, Buyer and Seller desire to amend the Purchase Agreement, as
more particularly set forth herein.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Buyer and Seller hereby agree as
follows:

                                   AGREEMENT
                                   ---------
     1.   Amendments.  The Purchase Agreement is hereby amended as follows:
          ----------

          A.   Recital C of the Purchase Agreement is hereby revised to read
               ---------
in full as follows:

               C.   WHEREAS, in consideration for Buyer's agreement to (i)
     assume certain contractual indemnification and other obligations of Seller
     which are specifically agreed to by Buyer; (ii) remediate existing
     Hazardous Substances contamination at, under, above, adjacent to and/or
     emanating to or from the Real Property and/or the Tar Pits Property; (iii)
     assume certain liabilities associated with the Real Property and/or the
     Adjacent Property; and (iv) other good and valuable consideration, Seller
     desires to sell the Real Property and Other Assets (defined in Section 1.37
     below) to Buyer on the terms and conditions set forth herein.

          B.   Recital D of the Purchase Agreement is hereby revised to read
               ---------
in full as follows:
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               D.   WHEREAS, Buyer desires to purchase the Real Property and
          Other Assets from Seller and to undertake an obligation to (i) assume
          certain contractual indemnification and other obligations of Seller
          which are specifically agreed to by Buyer; (ii) remediate existing
          Hazardous Substances contamination at, under, above, adjacent to
          and/or emanating to or from the Real Property and/or, subject to the
          provisions of Section 10.7 hereof, the Tar Pits Property; and (iii)
          assume certain liabilities associated with the Real Property and/or
          the Adjacent Property on the terms and conditions set forth herein.

          C.  Section 1.45 of the Purchase Agreement is hereby revised to
              ------------
delete the last sentence thereof and replace it with the following:

               The Parties acknowledge and agree that (i) the shares of Fontana
          Union Water Company, a mutual water company, which are owned by Kaiser
          Ventures, Inc. and/or its subsidiary, Fontana Water Resources, Inc.,
          and (ii) the water well located on the Budway Property, and its
          related facilities and easement which are currently used by California
          Speedway Corporation are not included within the definitions of Land,
          Real Property, Property or Other Assets.

          D.   Section 4.6 of the Purchase Agreement is amended to add the
               -----------
following phrase to the end of the first sentence thereof:

               and the other obligations described in Article 10 below.

          E.   Section 5.2.10 of the Purchase Agreement is hereby revised to
               --------------
read in full as follows:

               5.2.10  Buyer and Seller have agreed upon the provisions of that
          certain Members Operating Agreement of West Valley MRF, LLC, dated
          June 19, 1997, and of that certain Performance Guaranty and
          Indemnification Agreement by Kaiser Ventures Inc. in favor of West
          Valley Recycling & Transfer, Inc. and West Valley MRF to be assigned
          to Buyer as a Material Agreement.

          F.   Section 5.3.3 of the Purchase Agreement is hereby revised to
               -------------
read in full as follows:

               5.3.3  Buyer has delivered to Escrow Holder original counterparts
          of the Bill of Sale, the License, the Omnibus Assignment and
          Assumption Agreement, the Assignment of Certain Lease Rights, the MRF
          Easements and the Deed, duly executed by Buyer and acknowledged, where
          appropriate.

          G.   Section 10.2.2 of the Purchase Agreement is amended to delete
               --------------
the second sentence thereof and replace it with the following:

               Prior to the Close of Escrow, Seller shall remove from the Real
          Property, transport and dispose of or otherwise lawfully manage all
          Hazardous Substances known to be stored in containers on the Real
          Property other than materials stored

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          in the drums referred to in Section 2.11.5 of the "scope of work"
          attached to the IT Contract with ITG.

          H.   Section 10.3.2 of the Purchase Agreement is hereby revised to
               --------------
add the following as a new clause (i): (i) all reasonable costs incurred in
connection with obtaining access for remediation purposes over the Budway
Property, the Rancho Cucamonga Property, the D.T. Sari Property and the Maas
Hansen Property as depicted on Exhibit A-1 attached hereto; provided that for
purposes of this clause (i), once Seller has provided to Buyer a license, access
agreement, easement or other similar instrument or Buyer has otherwise obtained
adequate access to such property, Seller shall only be liable for costs and
liabilities to the extent they arise from the delay in gaining or providing such
access. The amendment to Section 10.3.1 of the Purchase Agreement contained in
Amendment No. 1 to the Purchase Agreement is hereby deleted.

          I.  Section 10.3.3.2 of the Purchase Agreement is hereby revised to
              ----------------
amend clause (iii) and to add clause (iv) as follows: (iii) following the
occurrence of a Default, in connection with Seller's enforcement of the
performance bond or the IT Contract in accordance with the terms hereof and
thereof, or (iv) in the manner permitted pursuant to Section 10.9.4 herein.

          J.   Section 10.3.4 of the Purchase Agreement is hereby revised to
               --------------
read in full as follows:

               10.3.4  Indemnification by Buyer.  Except only for the Excluded
                       ------------------------
          Liabilities and Losses (as hereinafter defined) arising out of
          Seller's failure to make any payments required of Seller pursuant to
          the first paragraph of Section 10.7 hereof, Buyer agrees to assume,
          indemnify, hold harmless and defend Seller and its past, current and
          future members, affiliates, subsidiaries and each of their officers,
          directors, employees, agents and representatives (collectively, the
          "Seller Parties" except that the term "Seller Parties" shall not
          include The California Speedway Corporation, International Speedway
          Corporation, a Florida corporation (successor by merger with PSH
          Corp., a Delaware corporation), 88 Corp. (successor by merger to
          Penske Motorsports, Inc., formerly known as Penske Speedway Holding
          Corp.), Speedway Development Corporation, and Penske Holdings
          Corporation (collectively, the "Speedway Entities"), or the West
                                          -----------------
          Valley MRF (the "MRF") or their members (other than Kaiser Recycling
                           ---
          Corporation), managers, officers, directors, employees or agent unless
          such officers, directors, employees or agents are or were also
          officers, directors, employees or agents of Seller) from and against
          any and all Environmental Liabilities and Obligations, and from and
          against any and all liabilities, penalties, fines, suits, claims,
          demands, actions, losses, damages, expenses, investigation and
          remediation costs (including, but not limited to, laboratory,
          handling, transportation, containment, neutralization, disposal,
          capping and other similar costs), operation and maintenance costs,
          financial assurance costs (other than costs of Seller's existing
          financial assurances), Agency costs (including, but not limited to,
          permitting, licensing, hazardous waste taxes and oversight costs),
          causes of action, proceedings, judgments, executions

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          and reasonable costs of any kind or nature whatsoever (including
          reasonable attorneys', consultants', engineers', experts' and
          contractors' fees) (collectively, "Losses") in connection with,
                                             ------
          arising out of or related to: (a) any Corrective Action; (b)
          compliance or noncompliance with any Requirements; (c) the existence
          of any threat to health, safety or the environment under any Laws, or
          the presence or alleged presence or release of any Hazardous
          Substances on, under, at or from the Real Property or the Tar Pits
          Property; (d) Buyer and ITG's compliance or non compliance with any
          Law in connection with the Real Property or the Adjacent Property; (e)
          the breach of this Agreement or any Exhibit attached hereto and
          incorporated herein by Buyer except for consequential damages incurred
          by Seller and arising out of such breach (as distinct from
          consequential damages incurred by third parties and recovered or
          recoverable from Seller which third party consequential damages shall
          be recoverable hereunder); (f) any breach of the IT Contract or the
          performance and completion bond, as defined in Section 10.4 below and
          (g) personal injury, including death and disability, occurring on or
          after the Close of Escrow caused to employees, contractors, invitees
          or guests or any other persons at or from the Real Property to the
          extent such injury is not related to Hazardous Substances conditions
          at the Real Property or the Adjacent Property; provided, however, that
          this subparagraph (g) of Section 10.3.2 shall not be deemed to limit
          Buyer's assumption and responsibility for any claims (whether arising
          prior to, as of or after the Close of Escrow) as provided in this
          Agreement or in any exhibit hereto related to Hazardous Substances
          conditions that were or are at or from the Real Property and/or the
          Adjacent Property. The carve out of the Speedway Entities or the MRF
          from the term Seller Parties is not intended to nor shall it be
          construed or deemed to limit Buyer's liability or obligations under
          any provision of the Omnibus Assignment and Assumption Agreement or to
          limit any rights the MRF and the Speedway Entities may have for
          indemnification under the Assigned Items assumed by Buyer under the
          Omnibus Assignment and Assumption Agreement.

               In addition, except for (1) the Excluded Liabilities, (2) Losses
          arising out of Seller's failure to make any payments required of
          Seller pursuant to the first paragraph of Section 10.7 hereof, (3)
          Losses realized by the Seller Parties (or any of them) for diminution
          in value of the Real Property or the Adjacent Property resulting from
          one or more of the Seller Parties' inability to use the Real Property
          or the Adjacent Property for a desired purpose, and (4) Losses
          realized by the Seller Parties or any of them pursuant to any
          contracts or other agreements which any of the Seller Parties is a
          party to (which Losses shall be assumed and indemnified against only
          to the extent provided for in the Omnibus Assignment and Assumption
          Agreement), Buyer shall assume and indemnify, defend and hold the
          Seller Parties harmless from and against all Losses arising out of the
          presence during Seller's ownership of the Adjacent Property of
          Hazardous Substances in, on or under the Adjacent Property in
          violation of applicable Laws.  Notwithstanding the immediately
          foregoing sentence, Buyer does not assume, indemnify, or hold harmless
          under the immediately preceding sentence any Seller Party from or
          against any obligation (i) that would require a Seller Party to
          remediate any property (other than the Real Property) for a use that
          is prohibited

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          by any recorded restrictive covenant in effect on that property on the
          date of the Close of Escrow or that would require any Seller Party to
          indemnify any party for any loss arising from such party's or any
          other party's inability to use any property (other than the Real
          Property) for a use prohibited by such restrictive covenants, or (ii)
          to indemnify or defend any party from, or to pay any party for, the
          following types of damages or Losses, to the extent such damages or
          Losses arise out of or as a result of the existence of Hazardous
          Substances in, on, under or about the Adjacent Property as of the date
          the Adjacent Property was sold by Seller except to the extent
          emanating from the Real Property and do not arise as a result of a
          knowing act or knowing failure to act of Buyer, in either case, which
          (x) at the time of such act or failure to act, Buyer had knowledge or
          reason to know that such act or failure to act would significantly
          increase the likelihood of a remediation effort materially slower than
          contemplated under this Agreement or the Assigned Items and (y)
          actually results in a remediation effort materially slower than
          contemplated: (A) any diminution in value of the Adjacent Property,
          (B) increased costs to operate the Adjacent Property, (C) increased
          finance costs associated with the Adjacent Property, (D) increased
          development or construction costs on the Adjacent Property, or (E) any
          party's inability to use the Adjacent Property or the interruption of
          any business or other activity on the Adjacent Property (the foregoing
          clauses (ii)(A) through (E) being referred to herein as the
          "Diminution in Value Losses"). Any indemnification and defense to be
          provided pursuant to this Section 10.3.4 shall be conducted in
          accordance with the procedures set forth in Section 14, below.

          K.   Section 10.3.6 of the Purchase Agreement is hereby revised to
               --------------
read in full as follows:

               10.3.6  Indemnification by Seller.  Seller agrees to indemnify,
                       -------------------------
          hold harmless and defend Buyer and its members, affiliates and
          subsidiaries and each of their past, current and future officers,
          directors, employees, agents and representatives (other than the OVI
          Group as defined in Section 15.19 below or ITG or any affiliate
          thereof) from and against any and all liabilities, penalties, fines,
          suits, claims, demands, actions, losses, damages, expenses,
          investigation and remediation costs (including, but not limited to,
          laboratory, handling, transportation, containment, neutralization,
          disposal, capping and other similar costs), operation and maintenance
          costs, financial assurance costs, Agency costs (including, but not
          limited to, permitting, licensing, hazardous waste taxes and oversight
          costs), causes of action, proceedings, judgments, executions and
          reasonable costs of any kind or nature whatsoever (including
          reasonable attorneys', consultants', engineers' and contractors' fees)
          in connection with, arising out of or related to any Excluded
          Liabilities except for (a) consequential damages incurred by Buyer
          arising out of Seller's breach of this Agreement or any Exhibit hereto
          (as distinct from consequential damages incurred by third parties as a
          result of Seller's breach of this Agreement and recovered or
          recoverable from Buyer which third party consequential damages shall
          be recoverable hereunder) and (b) notwithstanding anything to the
          contrary contained in the Omnibus Assignment and Assumption Agreement
          attached

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          hereto as Exhibit P (including, without limitation, Section 2(e)
          thereof), any obligations or liabilities related to or arising from
          any acts or omissions of the MRF or Speedway Entities occurring on or
          after the Effective Date (as defined in the Omnibus Assignment and
          Assumption Agreement) and (c) Diminution in Value Losses. Any
          indemnification and defense to be provided pursuant to this Section
          10.3.6 shall be conducted in accordance with the procedures set forth
          in Section 14, below.

          L.   Section 10.4 of the Purchase Agreement is hereby revised to
               ------------
read in full as follows:

               10.4  IT Contract.  As an inducement to execute this Agreement,
                     -----------
          Seller is relying upon, and hereby approves and consents to, Buyer's
          retention of ITG and LandBank, Inc., (each, a "Consultant") for the
                                                         ----------
          Corrective Action at or near the Real Property and/or the Tar Pits
          Property and the operations and maintenance on the Real Property
          and/or Adjacent Property pursuant to a fixed-priced contract between
          Buyer and ITG and a remediation services agreement with LandBank, Inc.
          (the contracts, together with the lien and completion bond issued to
          secure performance thereof and the multiple obligee agreement, are
          collectively, the "IT Contract"), the forms of which shall be attached
                             -----------
          hereto as Exhibit Q.  Seller shall be an express third party
                    ---------
          beneficiary of the IT Contract and an obligee of the performance bond.
          Buyer shall have no obligation to obtain Seller's consent to any
          termination or amendment of the IT Contract after the Close of Escrow
          except for amendments relating to the Tar Pits Property; provided,
          however, Buyer shall provide Seller with written notice of any such
          termination and any modification which significantly reduces the scope
          of work to be performed by IT where such work is still required to be
          performed by an Agency.  If Buyer terminates the IT Contract or
          modifies it to significantly reduce the scope of work to be performed
          by IT where such work is still required to be performed by any Agency,
          Buyer shall, within a reasonable period of time, enter into a contract
          providing for performance of the remaining Corrective Action or the
          Corrective Action no longer covered by the IT Contract but still
          required to be performed by any Agency.  Seller shall be named as a
          third party beneficiary of such contract and, if a bond is provided
          under such contract, Seller shall be named as an additional obligee
          under such bond and be a party to a multiple obligee agreement.  Buyer
          shall deliver to Seller copies of any such replacement contract and,
          if issued, such bond.  Buyer shall also, at the request of Seller,
          make a representative reasonably available to consult with Seller with
          respect to such replacement contract, and, if, within a reasonable
          period of time prior to the date when such replacement contract is
          intended to be signed, Seller requests that such meeting be held prior
          to entry into the replacement contract, Buyer shall provide Seller
          with a copy of the draft contract and shall make itself reasonably
          available to consult with Seller prior to execution of the replacement
          contract.  Buyer acknowledges that it does not have any current
          intention or expectation of terminating the IT Contract after the
          Close of Escrow.  Buyer hereby agrees that if the Consultant defaults
          under the IT Contract, Buyer shall enforce its rights under the IT
          Contract (including, without limitation, the bonds) so long as the IT

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          Contract secured by such bonds remains in effect, provided that this
          Agreement shall not prohibit Buyer from terminating the IT Contract
          with or without cause.

          M.   Pursuant to Section 5.2.20 of the Purchase Agreement, Seller was
to deliver to Buyer the MRF's consent to the assignment and assumption of
Seller's and Kaiser Recycling Corporation's ("KRC") rights and obligations under
the Material Agreements relating to the MRF (identified on Exhibit B to the
Omnibus Assignment and Assumption Agreement as a "MRF Agreement") on the terms
contained in the Omnibus Assignment and Assumption Agreement. Buyer has agreed
to waive the condition precedent regarding delivery of the MRF consent pre-
closing. Notwithstanding anything to the contrary contained in the Omnibus
Assignment and Assumption Agreement, Buyer and Seller agree that the assignment
and assumption of the rights and obligations of Seller and KRC under the
Material Agreements relating to the MRF shall be of no force or effect prior to
delivery of the MRF's consent thereto in a form reasonably acceptable to Buyer.
Upon delivery of such consent, however, such assignment and assumption shall be
effective as of the Close of Escrow. Nothing herein shall be deemed or construed
to abrogate or modify Buyer's obligations under this Agreement relative to the
Tar Pits Property.

          N.   Section 10.7 of the Purchase Agreement is amended to add the
               ------------
words "immobilization and" prior to the word "capping" in lines 6, 11 and 12
thereof and to add the following paragraph as the second paragraph thereof:

               Buyer agrees that it shall comply with and assume as of the Close
          of Escrow any and all obligations and/or requirements to inspect,
          maintain and secure the Tar Pits Property, including without
          limitation, weed control, maintenance and repair of any bird netting,
          fencing and signage at Buyer's cost and expense.

          O.   Section 10.9 of the Purchase Agreement is hereby revised to
               ------------
read in full as follows:

               10.9  Default by Buyer.
                     ----------------

               10.9.1  Buyer shall be deemed to have defaulted in its
          obligations (a "Default") and agreements set forth in Section 10.3.3.1
                          -------
          hereof and the last sentence of the first paragraph of Section 10.7
          hereof with respect to subparagraph (d) below if:

               (a)     any of the work described in the scope of work to be
          attached to the Remediation Stop Loss Insurance Policy (Capital Costs)
          has been abandoned for a period of two hundred forty (240) consecutive
          days; or
                --

               (b)     all work included in the definition of Corrective Action
          has not been completed on the Real Property and/or the Tar Pits
              ---
          Property and/or any operations, maintenance and monitoring obligations
          Buyer has assumed under this Agreement and/or the Omnibus Assignment
          and Assumption Agreement and/or which arise out of Buyer's Consent
          Order (collectively, the "O&M Obligations") and all of the following
                                    ---------------   ---
          events occur:

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                    (i)    An Agency seeks in a written notice to have Seller
               perform Corrective Action with respect to the Real Property or
               the Tar Pits Property and/or any of the O&M Obligations; and

                    (ii)   Seller gives Buyer written notice of the Agency's
               written notice or order; and

                    (iii)  Buyer fails to respond to the Agency and timely
               commence taking the appropriate action or entering into good
               faith negotiations with such Agency; and

                    (iv)   As a result of Buyer's failure to take appropriate
               action in response to such Agency notice or order, Agency
               performs Corrective Action and/or any of the O&M Obligations and
               submits a claim or invoice against Seller for the cost of such
               performance; and

                    (v)    Buyer does not pay the costs described in clause (iv)
               above within thirty (30) days after receipt of a demand from
               Seller hereunder or provide a bond or other security for such
               costs reasonably acceptable to Seller so that Seller is not
               obligated to pay such costs to the Agency.

               Notwithstanding the foregoing, if, after the occurrence of clause
          (b)(i) and (b)(ii) above, and despite Buyer's compliance with clause
          (b)(iii), above, an Agency issues an order on Seller requiring Seller
          to perform Corrective Action and/or any of the O&M Obligations, and
          the cost of performing or failure to perform such Corrective Action
          and/or any of the O&M Obligations (including, without limitation,
          fines, penalties and/or interest for failure to perform) will or may
          in the aggregate exceed $250,000 and, based on the opinion of a "big
          5" or other nationally recognized accounting firm reasonably
          acceptable to Buyer, which firm is not then retained by Seller for
          audit purposes, Seller will be required to disclose such order in its
          SEC filings and reserve against the costs of performing or failing to
          perform such order, Buyer shall be in Default hereunder if Buyer has
          not provided such surety or bonds as are necessary to avoid the
          reserve requirement of Seller within ninety (90) days of written
          notice by Seller to Buyer of such reserve requirement; or
                                                                 --

               (c)     Buyer breaches its obligation to make the deposit, if
          required, under Section 10.9.4.1 below; or
                                                  --

               (d)     Buyer breaches its obligation to make the deposits, if
          required, under Section 10.9.10 below.

               10.9.2  If a Default occurs as defined in Section 10.9.1 and so
          long as such Default is continuing, then Seller shall have the right
          to take such steps as necessary to cure such Default which, with
          respect to a Default under (c) and (d) above shall include the right
          to take over the Corrective Action (including the right to enter onto
          the Real Property pursuant to the easement for remediation purposes
          reserved by Seller in the Deed) and to recover from Buyer the costs

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          reasonably expended or due and payable by Seller to cure such Default.
          If Seller elects to undertake steps to cure all or any portion of such
          Default, then Seller shall be obligated to continue such steps as are
          necessary to cure the portion of the Default until Seller provides
          Buyer with written notice of its intent to cease such self-help
          remedies and thereafter Seller shall cease such self help remedies in
          accordance with such notice. In addition, Seller shall have the right
          to exercise all rights and remedies afforded to Seller under the CDC
          Guaranty in a similar manner and fashion against Buyer.

               10.9.3  Buyer hereby assigns to Seller, on a non-exclusive basis,
          without releasing Buyer from any of its obligations under this
          Agreement or under the Omnibus Assignment and Assumption Agreement, to
          the extent necessary to exercise Seller's self-help rights after the
          occurrence and during the continuance of a Default, or pursuant to
          Section 10.9.4 or pursuant to Section 10.9.10, to the extent such
          items are assignable:

               (a)     any and all governmental and regulatory licenses,
          permits, authorizing approvals or entitlements, whether now or
          hereafter acquired, pertaining to the Corrective Action or the O&M
          Obligations, as applicable,

               (b)     any and all contracts, warranties, reports or rights
          pertaining to the Corrective Action or the O&M Obligations, as
          applicable, whether now or hereafter acquired, including, without
          limitation, any of the Assigned Items (as such term is defined in the
          Omnibus Assignment and Assumption Agreement) to the extent pertaining
          to the Corrective Action or the O&M Obligations, as applicable, and

               (c)     any rights assigned to Buyer pursuant to the Assignment
          and Assumption of Certain Lease Rights, and

               (d)     the IT Contract.

               The assignment contained in this Section 10.9.3 is made without
          recourse or warranty.  The enumeration of the categories to be
          assigned in clauses (a)-(d) above shall not be deemed a representation
          or warranty by Buyer as to the existence of any such rights, and all
          rights being assigned under this Section 10.9.3 are being assigned on
          an "AS IS," "WHERE IS," "WITH ALL FAULTS" basis, without any
          representation or warranty of any kind or nature of Buyer, express,
          implied or statutory, as to the nature of the rights assigned under
          this Section 10.9.3 or their fitness for Seller's intended use or
          their assignability or enforceability.

               10.9.4  For purposes of this Section 10.9.4, the word "completed"
          shall mean the date upon which Buyer has received and delivered to
          Seller a No Further Action Letter for the East Slag Pile parcel or
          received and delivered to Seller a Certificate of Completion for the
          East Slag Pile parcel or provides Seller

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          notice that the East Slag Pile parcel has been endorsed onto the Real
          Estate Environmental Liability Insurance Policy.

                    10.9.4.1  If at the end of the sixth year of the term of the
               Remediation Stop Loss Insurance Policy, Buyer has not completed
               the "scope of work" attached to the Remediation Stop Loss
               Insurance Policy for the East Slag Pile parcel, Buyer shall be
               obligated, at its expense, to deposit cash into a pledged account
               in an amount equal to the difference between (i) Eight Million
               Eight Hundred One Thousand Two Hundred and Eleven Dollars
               ($8,801,211.00) and (ii) the amount of funds Buyer has reasonably
               paid to third parties to date on completing the "scope of work"
               on the East Slag Pile parcel; provided that the amount to be
               deposited in the cash account shall not exceed Five Million
               Dollars ($5,000,000).  Notwithstanding the foregoing, if all of
               the Guaranteed Obligations other than completion of the "scope of
               work" for the East Slag Pile parcel have been completed, the
               amount required to be deposited by Buyer under Section 10.9.4.1
               above may be reduced by the amount of the Maximum Liability
               Amount (as defined in the Guaranty) as of the date such deposit
               is required under this Section 10.9.4.1.

                    10.9.4.2  If at the end of the seventh year of the
               Remediation Stop Loss Insurance Policy, Buyer has not completed
               the "scope of work" attached to the Remediation Stop Loss
               Insurance Policy for the East Slag Pile parcel, then
               notwithstanding the absence of a Default, Seller shall be
               entitled to exercise its self-help remedies under Section 10.9.2
               and 10.9.3 with respect to the non-completed portion of the
               "scope of work" for the East Slag Pile parcel and may, together
               with Buyer, draw upon the cash collateral account described in
               this Section 10.9.4 to complete such "scope of work" on the East
               Slag Pile parcel.

                    10.9.4.3  Following completion of the "scope of work" for
               the East Slag Pile parcel and payment of amounts incurred in
               connection therewith (subject to good faith disputes), any
               amounts deposited pursuant to Section 10.9.4.1 above shall be
               promptly released to Buyer.

               10.9.5  Following the deposit of the amount due under Section
          10.9.4.1 above, Buyer, and following the end of the seventh year of
          the Remediation Stop Loss Insurance Policy, Buyer, Seller and CDC (to
          the extent any amount has been drawn under the CDC Guaranty), shall be
          entitled to draw against such cash account solely for the purposes of
          paying third party costs incurred in connection with performing the
          "scope of work" on the East Slag Pile parcel by delivering to the
          account holder a statement (the "East Slag Pile Draw Certification")
          certifying that the amount requested in such draw has been incurred
          with third parties in the performance of such "scope of work" and, if
          the self-insured retention amount under the Remediation Stop Loss
          Insurance Policy has not been paid in full and such policy remains in
          effect, that to the best knowledge of the certifying person after due
          inquiry (which for purposes of this provisions shall mean review of
          the

                                       10
<PAGE>

          Remediation Stop Loss Insurance Policy language and exclusions
          applicable to determining what costs are applicable to the self-
          insured retention amount), is applicable toward the self-insured
          retention amount under the Remediation Stop Loss Insurance Policy.

               10.9.6  If a draw is requested by Buyer or CDC under Section
          10.9.5, Seller shall have twenty (20) days from delivery of the East
          Slag Pile Draw Certification to review such East Slag Pile Draw
          Certification.  If Seller does not object to such East Slag Pile Draw
          Certification during such twenty (20) day period, then the holder of
          the cash account shall disburse to Buyer or CDC, as the case may be,
          the amount of funds requested in the East Slag Pile Draw
          Certification.  If during such twenty (20) day period Seller submits
          to Buyer or CDC, as applicable, a written certification that it has
          reviewed the East Slag Pile Draw Certification (and, if the self-
          insured retention amount under the Remediation Stop Loss Insurance
          Policy has not been paid in full and such policy remains in effect,
          the Insurance Policies) and the documents described in Section 10.9.8
          below and believes, based upon such review and after consultation with
          counsel, that the amount requested in the East Slag Pile Draw
          Certification is not applicable toward third party costs incurred in
          the performance of the East Slag Pile parcel "scope of work" (and, if
          the self-insured retention amount under the Remediation Stop Loss
          Insurance Policy has not been paid in full and such policy remains in
          effect, the self-insured retention amount under the Remediation Stop
          Loss Insurance Policy), then Buyer and Seller (and CDC, as applicable)
          agree to promptly meet to resolve the dispute in good faith, and
          failing to resolve such dispute within five (5) business days of
          Seller's written certification, shall thereafter submit such dispute
          to an expedited reference proceeding as described in Section 10.9.9
          below.  Notwithstanding any disagreement between Buyer or CDC, as
          applicable, and Seller, and notwithstanding Seller's objection to the
          East Slag Pile Draw Certification in the manner set forth above, if a
          Zurich Entity notifies Buyer and/or Seller that the amount requested
          in the East Slag Pile Draw Certification is applicable toward the
          self-insured retention amount under the Stop Loss Policy (Capital
          Costs), then the account holder is entitled to disburse, and shall
          immediately disburse, to Buyer or CDC, as applicable, the amounts of
          funds requested in the East Slag Pile Draw Certification unless Seller
          is objecting to such draw certification on the grounds that the funds
          requested are not being applied toward third party costs incurred in
          performing the "scope of work" for the East Slag Pile Parcel.

               10.9.7  Subject to Section 10.9.6 above, the cash account shall
          provide that the account holder shall be unconditionally obligated to
          disburse to Buyer, Seller or CDC (whichever entity has requested
          funds) the amount of funds requested by such party in its East Slag
          Pile Draw Certification upon receipt of such East Slag Pile Draw
          Certification.  The account holder shall expressly acknowledge and
          agree that it shall be obligated to disburse to Buyer or Seller
          (whichever entity has requested funds) the amount of funds requested
          in its East Slag Pile Draw Certification notwithstanding contrary
          instructions from the other party.

                                       11
<PAGE>

               10.9.8   Any person seeking to draw against such cash collateral
          delivered pursuant to Section 10.9.4.1 shall deliver to any requesting
          person such invoices, receipts or other evidence of payment reasonably
          requested by such person to evidence that funds drawn or to be drawn
          from the cash collateral account have been incurred in connection with
          performance of the "scope of work" and are applicable toward the self-
          insured retention amount; provided, however, that subject to the
          requirements of Section 10.9.6 above, in no event shall the delivery
          of such documentation be a condition to the making or receipt of a
          draw against the cash collateral.

               10.9.9   Any controversy preventing the disbursement of funds to
          Buyer or Seller, as applicable, pursuant to a East Slag Pile Draw
          Certification under Section 10.9.5 above or a Tar Pits Property Draw
          Certification under Section 10.9.12 below shall be promptly heard in
          San Bernardino County, California by a reference proceeding pursuant
          to the provisions of California code of Civil Procedure Sections 638
          through 645.1, inclusive.  The parties hereto shall agree upon a
          single referee who shall try all issues of fact and law and report his
          or her decisions thereon.  If the parties are unable to agree upon a
          referee, then any party hereto may thereafter seek to have one
          appointed pursuant to California Code of Civil Procedure Sections 638
          and 640.  The cost of such proceeding shall initially be borne equally
          by the parties to the dispute.  However, the prevailing party in such
          proceeding shall be entitled, in addition to all other costs, to
          recover its contribution for the cost of the reference and its
          attorneys' fees and expenses as an item of damage and/or recoverable
          cost.  The referee shall not be bound by formal rules of evidence and
          may admit such evidence as determined by him or her to be relevant and
          probative of the issues raised by the reference.  The referee may
          employ such experts not associated with, employed by, or affiliated
          with any party as he or she determines are necessary to aid him or her
          in deciding the reference.

               10.9.10  The following provisions relate to the Tar Pits
          Property.

                    10.9.10.1  If, on the date which is eighteen (18) months
               after the Close of Escrow, Buyer has not completed the
               immobilization/ solidification portion of the "scope of work"
               attached to the Remediation Stop Loss Insurance Policy for the
               Tar Pits Property, (a) Buyer shall be obligated, at its expense,
               to deposit cash into a pledged account in an amount equal to the
               difference between (i) Two Million Eight Hundred Thirty Six
               Thousand Eight Hundred Seventy Three Dollars ($2,836,873) and
               (ii) the amount of funds Buyer has reasonably paid to third
               parties to date on completing the "scope of work" on the Tar Pits
               Property and (b) notwithstanding the absence of a Default, Seller
               shall be entitled to exercise its self-help remedies under
               Section 10.9.2 and 10.9.3 with respect to the non-completed
               portion of the "scope of work" for the Tar Pits Property and may,
               together with Buyer, draw upon the cash collateral account
               described in this Section 10.9.10 to complete such "scope of
               work" on the Tar Pits Property.  Notwithstanding the foregoing,
               if all of

                                       12
<PAGE>

               the Guaranteed Obligations other than completion of the "scope of
               work" for the Tar Pits Property have been completed, the amount
               required to be deposited by Buyer under Section 10.9.10.1 above
               may be reduced by the amount of the Maximum Liability Amount (as
               defined in the Guaranty) as of the date such deposit is required
               under this Section 10.9.10.1.

                    10.9.10.2  If, on the date which is twenty-seven (27) months
               after the Close of Escrow, Buyer has not completed the "scope of
               work" attached to the Remediation Stop Loss Insurance Policy for
               the Tar Pits Property (which, for purposes of this Section
               10.9.10.2 and 10.9.10.3 below, shall mean the date upon which
               Buyer has received and delivered to Seller a No Further Action
               Letter for the Tar Pits Property or received and delivered to
               Seller a Certificate of Completion for the Tar Pits Property or
               provides Seller notice that the Tar Pits Property has been
               endorsed onto the Real Estate Environmental Liability Insurance
               Policy) then (a) Buyer shall be obligated, at its expense, to
               deposit cash into a pledged account in an amount equal to the
               difference between (i) Two Million Eight Hundred Thirty Six
               Thousand Eight Hundred Seventy Three Dollars ($2,836,873) and
               (ii) the amount of funds Buyer has reasonably paid to third
               parties to date on completing the "scope of work" on the Tar Pits
               Property and (b) notwithstanding the absence of a Default, Seller
               shall be entitled to exercise its self-help remedies under
               Section 10.9.2 and 10.9.3 with respect to the non-completed
               portion of the "scope of work" for the Tar Pits Property and may,
               together with Buyer, draw upon the cash collateral account
               described in this Section 10.9.10.2 to complete such "scope of
               work" on the Tar Pits Property.  Notwithstanding the foregoing,
               if all of the Guaranteed Obligations other than completion of the
               "scope of work" for the Tar Pits Property have been completed,
               the amount required to be deposited by Buyer under Section
               10.9.10.2 above may be reduced by the amount of the Maximum
               Liability Amount (as defined in the Guaranty) as of the date such
               deposit is required under this Section 10.9.10.2.

                    10.9.10.3  Following completion of the "scope of work" for
               the Tar Pits Property and payment of amounts incurred in
               connection therewith (subject to good faith disputes), any
               amounts deposited pursuant to Section 10.9.10.1 and/or 10.9.10.2
               above shall be promptly released to Buyer.

               10.9.11      Following the deposit of the amount due under
          Section 10.9.10.1 and/or 10.9.10.2 above, Buyer, Seller and CDC (to
          the extent any amount has been drawn under the CDC Guaranty), shall be
          entitled to draw against such cash account solely for the purposes of
          paying third party costs incurred in connection with performing the
          "scope of work" on the Tar Pits Property by delivering to the account
          holder a statement (the "Tar Pits Property Draw Certification")
          certifying that the amount requested in such draw has been incurred
          with third parties in the performance of such "scope of work" and, if
          the

                                       13
<PAGE>

          self-insured retention amount under the Remediation Stop Loss
          Insurance Policy has not been paid in full and such policy remains in
          effect, that to the best knowledge of the certifying person after due
          inquiry (which for purposes of this provisions shall mean review of
          the Remediation Stop Loss Insurance Policy language and exclusions
          applicable to determining what costs are applicable to the self-
          insured retention amount), is applicable toward the self-insured
          retention amount under the Remediation Stop Loss Insurance Policy.

               10.9.12  If a draw is requested by Buyer or CDC under Section
          10.9.11, Seller shall have twenty (20) days from delivery of the Tar
          Pits Property Draw Certification to review such Tar Pits Property Draw
          Certification.  If Seller does not object to such Tar Pits Property
          Draw Certification during such twenty (20) day period, then the holder
          of the cash account shall disburse to Buyer or CDC, as the case may
          be, the amount of funds requested in the Tar Pits Property Draw
          Certification.  If during such twenty (20) day period Seller submits
          to Buyer or CDC, as applicable, a written certification that it has
          reviewed the Tar Pits Property Draw Certification (and, if the self-
          insured retention amount under the Remediation Stop Loss Insurance
          Policy has not been paid in full and such policy remains in effect,
          the Insurance Policies) and the documents described in Section 10.9.14
          below and believes, based upon such review and after consultation with
          counsel, that the amount requested in the Tar Pits Property Draw
          Certification is not applicable toward third party costs incurred in
          the performance of the Tar Pits Property "scope of work" (and, if the
          self-insured retention amount under the Remediation Stop Loss
          Insurance Policy has not been paid in full and such policy remains in
          effect, the self-insured retention amount under the Remediation Stop
          Loss Insurance Policy), then Buyer and Seller (and CDC, as applicable)
          agree to promptly meet to resolve the dispute in good faith, and
          failing to resolve such dispute within five (5) business days of
          Seller's written certification, shall thereafter submit such dispute
          to an expedited reference proceeding as described in Section 10.9.9
          above.  Notwithstanding any disagreement between Buyer or CDC, as
          applicable, and Seller, and notwithstanding Seller's objection to the
          Tar Pits Property Draw Certification in the manner set forth above, if
          a Zurich Entity notifies Buyer and/or Seller that the amount requested
          in the Tar Pits Property Draw Certification is applicable toward the
          self-insured retention amount under the Remediation Stop Loss
          Insurance Policy, then the account holder is entitled to disburse, and
          shall immediately disburse, to Buyer or CDC, as applicable, the
          amounts of funds requested in the Tar Pits Property Draw Certification
          unless Seller is objecting to such draw certification on the grounds
          that the funds requested are not being applied toward third party
          costs incurred in performing the "scope of work" for the Tar Pits
          Property.

               10.9.13  Subject to Section 10.9.12 above, the cash account shall
          provide that the account holder shall be unconditionally obligated to
          disburse to Buyer, Seller or CDC (whichever entity has requested
          funds) the amount of funds requested by such party in its Tar Pits
          Property Draw Certification upon receipt of such Tar Pits Property
          Draw Certification.  The account holder shall expressly

                                       14
<PAGE>

          acknowledge and agree that it shall be obligated to disburse to Buyer
          or Seller (whichever entity has requested funds) the amount of funds
          requested in its Tar Pits Property Draw Certification notwithstanding
          contrary instructions from the other party.

               10.9.14  Any person seeking to draw against such cash collateral
          delivered pursuant to Section 10.9.10.1 or 10.9.10.2 above shall
          deliver to any requesting person such invoices, receipts or other
          evidence of payment reasonably requested by such person to evidence
          that funds drawn or to be drawn from the cash collateral account have
          been incurred in connection with performance of the "scope of work"
          and are applicable toward the self-insured retention amount; provided,
          however, that subject to the requirements of Section 10.9.12 above, in
          no event shall the delivery of such documentation be a condition to
          the making or receipt of a draw against the cash collateral.

               10.9.15  Each of the rights and remedies provided in this
          Agreement is cumulative and not exclusive of, and shall not prejudice,
          any other right or remedy provided in this Agreement.  No failure or
          delay on the part of Seller in exercising any right or remedy shall
          operate as a waiver of such right or remedy; nor shall any single or
          partial exercise of any right or remedy preclude any other or further
          exercise of such right or remedy or of any other right or remedy.

          P.   Section 15.1 is amended to provide that any side letters executed
               ------------
between the Parties as of the Closing Date shall be deemed incorporated into
this Agreement.

          Q.   Section 15.18 is hereby added to the Purchase Agreement:
               -------------

               15.18  Joint and Several Liability.  The obligations of Kaiser
          Steel Land Development Inc. and Kaiser Ventures Inc. under this
          Agreement shall be joint and several.  Kaiser Steel Land Development
          Inc. and Kaiser Ventures Inc. each agree that Buyer has no obligation
          to proceed against either Kaiser Steel Land Development Inc. or Kaiser
          Ventures Inc. or exhaust any other remedy in the power of Buyer, and
          the failure of Buyer to do so shall not exonerate, release or
          discharge Kaiser Steel Land Development Inc. or Kaiser Ventures Inc.
          from their absolute, unconditional and independent obligations
          hereunder.

          R.   Section 15.19 through 15.22 are added to the Purchase Agreement
               ---------------------------
as follows:

               15.19  Disclosures Made By Seller.  Buyer acknowledges and agrees
          that for purposes of this Agreement and its exhibits, OVI is solely
          responsible for disclosing to Buyer all disclosures previously made by
          Seller to OVI and its members, agents and representatives, including
          LandBank Environmental Properties, LLC and LandBank, Inc.
          (collectively the "OVI Group") and Buyer agrees that Seller may rely
          on OVI's disclosure of such matters to Buyer and waives any claim
          based on a failure of Seller to disclose matters to Buyer if Seller

                                       15
<PAGE>

          previously disclosed such matters to any member, agent or
          representative of one or more of the OVI Group.

               15.20  Omnibus Assignment and Assumption Agreement.  It is the
          express intent of Buyer and Seller to transfer to Buyer and have Buyer
          assume and indemnify Seller and the other Seller Parties from and
          against all of the Assigned Items to the extent provided in the
          Omnibus Assignment and Assumption Agreement.  The assumption and
          indemnification obligations imposed therein shall be binding upon
          Buyer, whether or not the Omnibus Assignment and Assumption Agreement
          is ever challenged or considered ineffective or deemed unenforceable.
          Notwithstanding anything to the contrary contained in the Omnibus
          Assignment and Assumption Agreement concerning the exclusive nature of
          any assignment made thereunder, in the event Buyer is in breach of its
          obligations under such document, Seller Parties hereby reserve their
          rights under the Assigned Items assumed under the Omnibus Assignment
          and Assumption Agreement by Buyer, on a non-exclusive basis, and
          following notice to Buyer and a thirty (30) day opportunity to cure,
          to defend any claims made against the Seller Parties under such
          Assigned Items and to perform during the pendency of such breach any
          obligations required in connection therewith, but only to the extent
          such performance is required to reduce damages the Seller Parties
          would be subject to, absent performance under such Assigned Items.
          Such non-exclusive reservation by Seller Parties in the event of such
          a breach by Buyer is not intended to nor shall it be deemed or
          construed to relieve Buyer from any of its obligations under the
          Omnibus Assignment and Assumption Agreement or under this Agreement,
          including, without limitation, its obligations to assume and indemnify
          Seller Parties for the matters for which Buyer has agreed to assume
          and/or provide indemnification under the Omnibus Assignment and
          Assumption Agreement and/or this Agreement.

               15.21  Cooperation on Insurance Policies; Status of Insurance
          Policies.  The Parties agree to cooperate with one another in making
          claims against the Insurance Policies.  Buyer agrees that if Seller
          makes any payments against the self-insured retention under the
          Remediation Stop Loss Insurance Policy, Seller shall be deemed to have
          made such payment as Buyer's "authorized representative" for purposes
          of Seller's ability to make claims under the policy.  The Parties
          represent and warrant to each other that it has not obtained and will
          not obtain at the Closing any other environmental insurance policies
          concerning the Real Property and/or Adjacent Property other than the
          Insurance Policies.  The Parties represent and warrant to each other
          that it does not have any side agreements with any of the Zurich
          Entities concerning or relating to the Insurance Policies and that all
          agreements with the Zurich Entities are contained within the language
          of the Insurance Policies.

               15.22  Manifesting Substances.  Buyer shall be responsible for
          signing as the generator all manifests required for the removal and/or
          disposal of Hazardous Substances and non Hazardous Substances and
          wastes from the Real Property and the Adjacent Property; provided,
          however, that one of Seller Parties

                                       16
<PAGE>

          shall be responsible for signing as the generator all manifests
          required for the removal and/or disposal of Hazardous Substances and
          non Hazardous Substances and wastes from the Tar Pits Property.

          S.   Exhibit A to the Purchase Agreement is hereby revised in full and
               ---------
attached hereto as Exhibit A.
                   ----------

          T.   Exhibit C to the Purchase Agreement is hereby revised in full and
               ---------
attached hereto as Exhibit C.
                   ---------

          U.   Exhibit F to the Purchase Agreement is hereby revised in full and
               ---------
attached hereto as Exhibit F. Notwithstanding anything which could be construed
                   ---------
to the contrary contained in the Grant Deed, the property conveyed by the Grant
Deed shall not include the trailer owned by Johnson Bail Bonds.

          V.   Exhibit G to the Purchase Agreement is hereby revised in full and
               ---------
attached hereto as Exhibit G.
                   ----------

          W.   Exhibit H to the Purchase Agreement is hereby revised in full and
               ---------
attached hereto as Exhibit H.
                   ---------

          X.   Exhibit I to the Purchase Agreement is hereby revised in full and
               ---------
attached hereto as Exhibit I.
                   ---------

          Y.   Exhibit K to the Purchase Agreement is hereby revised in full and
               ---------
attached hereto as Exhibit K.
                   ---------

          Z.   Exhibit L to the Purchase Agreement is hereby revised in full and
               ---------
attached hereto as Exhibit L.
                   ---------

          AA.  Exhibit M to the Purchase Agreement is hereby revised in full and
               ---------
attached hereto as Exhibit M.
                   ---------

          BB.  Exhibit P to the Purchase Agreement is hereby revised in full and
               ---------
attached hereto as Exhibit P.
                   ---------

          CC.  Exhibit Q to the Purchase Agreement is hereby revised in full and
               ---------
attached hereto as Exhibit Q.
                   ---------

          DD.  Exhibit U to the Purchase Agreement is hereby ratified as the
               ---------
final Exhibit U.
      ---------

          EE.  Exhibit X to the Purchase Agreement is hereby revised in full and
               ---------
attached hereto as Exhibit X.
                   ---------

          FF.  Exhibit Y to the Purchase Agreement is hereby revised in full and
               ---------
attached hereto as Exhibit Y.
                   ---------

                                       17
<PAGE>

          GG.  Exhibit AA to the Purchase Agreement is hereby deleted in its
               ----------
entirety.

          HH.  Exhibit BB to the Purchase Agreement is hereby revised in full
               ----------
and attached hereto as Exhibit BB.
                       ----------

          II.  Exhibit CC to the Purchase Agreement is hereby revised in full
               ----------
and attached hereto as Exhibit CC.
                       ----------

          JJ.  Exhibit DD to the Purchase Agreement is hereby revised in full
               ----------
and attached hereto as Exhibit DD.
                       ----------

          KK.  Exhibit EE to the Purchase Agreement is hereby revised in full
               ----------
and attached hereto as Exhibit EE.
                       ----------

     2.   No Other Amendments.  Except as expressly amended hereby, the Purchase
          -------------------
Agreement is unchanged and in full force and effect.

     3.   Counterparts. This Amendment may be executed in counterparts, each of
          ------------
which shall be an original and all of which taken together shall constitute the
same instrument.

                           [SIGNATURES ON NEXT PAGE]
                           -------------------------

                                       18
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of
the dates written below.

Buyer:                                    CCG ONTARIO, LLC,
-----                                     a Delaware limited liability company

                                          By:  /s/ Charles A. McPhee
                                                -------------------------
                                                   Charles A. McPhee
                                                   Its:  Vice President

Date Executed:  August 15, 2000

Seller:                                   KAISER VENTURES INC.,
------                                    a Delaware corporation

                                          By:  /s/ Lee R. Redmond
                                              ----------------------------------
                                          Name:    Lee R. Redmond
                                                --------------------------------
                                          Its:  Sr. Vice President - Real Estate
                                                --------------------------------

Date Executed:  August 15, 2000

                                          KAISER STEEL LAND DEVELOPMENT, INC.,
                                          a Delaware corporation

                                          By:  /s/ Lee R. Redmond
                                             --------------------------------
                                          Name:    Lee R. Redmond
                                               -------------------------------
                                          Its:  Vice President - Real Estate
                                              --------------------------------

Date Executed:  August 15, 2000

                                      S-1
<PAGE>

RECEIVED AND ACCEPTED THIS ____ DAY OF ____________________, 2000.

ESCROW HOLDER:
CHICAGO TITLE INSURANCE COMPANY

By:___________________________
Name: ________________________
Its:__________________________

                                      S-2
<PAGE>

                      Exhibits Available Upon the Written
                      ===================================

                                 Request of the
                                 ==============

                       Securities and Exchange Commission
                       ==================================<PAGE>

                                                                    EXHIBIT 10.2
                                                                    ============

                  PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS

                                      FOR

                      KAISER STEEL LAND DEVELOPMENT, INC.
                                   (Seller)

                                      and

                      THE CALIFORNIA SPEEDWAY CORPORATION
                                    (Buyer)

                            DATED: August 10, 2000
<PAGE>

                                     INDEX

<TABLE>
<CAPTION>
  Item                                                                              Page No.
  ----                                                                              --------
<S>                                                                                 <C>
ARTICLE 1     RECITALS.............................................................     1
   1.1        .....................................................................     1
   1.2        .....................................................................     1

ARTICLE 2     AGREEMENT OF PURCHASE AND SALE.......................................     1
   2.1        Purchase Price.......................................................     1
   2.2        Payment of Purchase Price............................................     1

ARTICLE 3     ESCROW...............................................................     2
   3.1        Opening of Escrow....................................................     2
   3.2        Delivery of Documents to Escrow......................................     2
   3.3        Close of Escrow......................................................     2

ARTICLE 4     REVIEW PERIOD........................................................     2
   4.1        Review Period........................................................     2
   4.2        Review of Condition of Property......................................     3
   4.3        Review of Condition of Title.........................................     3
   4.4        Disapproval of Contingencies.........................................     3

ARTICLE 5     ADDITIONAL COVENANTS AND AGREEMENTS..................................     4
   5.1        Cooperation..........................................................     4
   5.2        Federal and State Withholding Requirements...........................     4
   5.3        No Interest in Water Rights..........................................     4
   5.4        Sewer Service........................................................     4
   5.5        Plans and Approvals..................................................     4

ARTICLE 6     PRE CLOSING OBLIGATIONS..............................................     5
   6.1        Seller's Obligations.................................................     5
   6.2        Buyer's Obligations..................................................     5

ARTICLE 7     POST CLOSING OBLIGATIONS.............................................     5
   7.1        Improvements.........................................................     5
   7.2        Buyer's Compliance with Environmental Laws...........................     5
   7.3        Indemnification for Noncompliance....................................     6
   7.4        Environmental Related Definitions....................................     6

ARTICLE 8     ACKNOWLEDGMENTS, REPRESENTATIONS, WARRANTIES AND INDEMNITIES.........     7

   8.1        Buyer's Acknowledgments, Representations, Warranties
              and Indemnity........................................................     7
   8.2        Seller's Acknowledgments, Representations, Warranties
              and Indemnity........................................................     8
</TABLE>

                                       i
<PAGE>

<TABLE>
<CAPTION>
  Item                                                                              Page No.
  ----                                                                              --------
<S>                                                                                 <C>
ARTICLE 9     THE CLOSE OF ESCROW..................................................     9
      9.1     Close of Escrow......................................................     9
      9.2     Termination Based on Failure to Close by Closing Date................    10
      9.3     Prorations...........................................................    10
      9.4     Seller's Fees and Costs..............................................    10
      9.5     Buyer's Fees and Costs...............................................    11

ARTICLE 10    REMEDIES.............................................................    11
     10.1     Seller's Liquidated Damages..........................................    11
     10.2     Buyer's Liquidated Damages...........................................    11

ARTICLE 11    GENERAL PROVISIONS...................................................    12
     11.1     Time of the Essence and Strict Construction..........................    12
     11.2     Notice and Demands...................................................    12
     11.3     Captions for Convenience.............................................    12
     11.4     Severability.........................................................    12
     11.5     Governing Law........................................................    12
     11.6     No Oral Amendment or Modification....................................    12
     11.7     Relationship of Seller and Buyer.....................................    13
     11.8     Attorneys' Fees......................................................    13
     11.9     Amended and Successor Statutes and Regulations.......................    13
     11.10    Entire Agreement.....................................................    13
     11.11    Exhibits and Schedules...............................................    13
     11.12    Confidentiality......................................................    13
     11.13    Successors and Assigns...............................................    13
     11.14    Eminent Domain.......................................................    14
     11.15    Counterparts.........................................................    14
     11.16    No Third Party Beneficiary...........................................    14
     11.17    Survival of Representations and Warranties...........................    14
     11.18    No Recordation.......................................................    14
</TABLE>

                                      ii
<PAGE>

                  Purchase Agreement and Escrow Instructions
                  ==========================================

     This PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS ("Agreement") is made and
entered into this 10th day of August, 2000 ("Effective Date"), by and between
KAISER STEEL LAND DEVELOPMENT, INC., a Delaware corporation ("Seller"), and THE
CALIFORNIA SPEEDWAY CORPORATION, a Delaware corporation, ("Buyer") with
reference to the facts set forth below.

                                   Article 1
                                   RECITALS

     1.1  Seller is the owner of that certain real property primarily situated
in the City of Rancho Cucamonga in the County of San Bernardino, State of
California, consisting of approximately 37.11 acres (gross) and generally
described as San Bernardino County Assessor's Parcel Numbers 0229-291-24, and
portions of 25 and 27 (the "Property").  The parties hereto acknowledge that the
Property was the subject of a "lot-line adjustment" which has now been
completed.

     1.2  Buyer desires to purchase the Property and Seller desires to sell the
Property to Buyer upon the terms and conditions set forth in this Agreement.

     NOW THEREFORE, in consideration of the mutual agreements set forth herein
and for other valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Buyer agrees to purchase and Seller agrees to sell the
Property on the terms and conditions set forth below.

                                   Article 2
                        AGREEMENT OF PURCHASE AND SALE

     2.1  Purchase Price.  The purchase price for the Property is $2.65 per
square foot based upon net useable acreage (the "Property Purchase Price").  It
is agreed that the net useable square feet is 1,448,805.66 square feet (subject
to adjustment as a result of any survey) making for a total Property Purchase
Price of $3,839,334.84 for the Property, subject to permitted closing
adjustments.

     2.2  Payment of Purchase Price.  The Purchase Price, including the Deposit,
shall be paid in immediately available good funds in accordance with the
provisions set forth below.

          2.2.1  Deposit. Upon the opening of escrow in accordance with Section
                 -------
3.1 below, Buyer shall deposit into escrow the amount of Fifty Thousand Dollars
($50,000) (the "Deposit").  Unless this Agreement is terminated by Buyer on or
before the end of the Review Period, the Deposit shall be non-refundable to
Buyer at the end of the review period and released to Seller, except as
otherwise provided herein.  The Deposit shall be credited and applied to the
Purchase Price at the Close of Escrow, but shall be retained by Seller without
any additional escrow instructions as its liquidated damages as provided in
Paragraph 10.1 if Escrow fails to close as a result of Buyer's default.  If
Escrow fails to close as a result of Seller's default under the terms of this
Agreement or the failure of a condition precedent, other than a condition
precedent that can be satisfied by Buyer, Escrow Agent shall refund the Fifty
Thousand Dollars ($50,000) and shall pay, if applicable, the liquidated damages
as provided in Paragraph 10.1.

                                       1
<PAGE>

          2.2.2  Balance of Cash Payment. On or before one business day prior to
                 -----------------------
the Closing Date, Buyer shall deposit the balance of the Purchase Price in cash
into escrow, which shall be released to Seller on the Close of Escrow.

                                   Article 3
                                    ESCROW

     3.1  Opening of Escrow.  Within two business days of the Effective Date of
this Agreement, Buyer and Seller shall open escrow by depositing with Chicago
Title Insurance Company, San Bernardino office ("Escrow Agent") a fully executed
original of this Agreement for use as escrow instructions and Escrow Agent shall
execute the consent of Escrow Agent and deliver a fully executed consent to
Buyer and Seller.  If Escrow Agent requires additional instructions, Buyer and
Seller agree to make any such deletions, substitutions, and additions which do
not materially alter the terms of this Agreement.  If there is any conflict
between the provisions of this Agreement and any additional or supplementary
Escrow Instructions, the terms of this Agreement shall control.

     3.2  Delivery of Documents to Escrow.

          3.2.1  Seller's Documents. On or before the Close of Escrow, Seller
                 ------------------
shall deposit into Escrow a grant deed signed and acknowledged substantially in
the form and content attached hereto as Exhibit "A" and incorporated herein (the
                                        ===========
"Grant Deed").  Provided that all terms and conditions of this Agreement have
been satisfied, Escrow Agent shall record the Grant Deed at the Close of Escrow.
Seller shall deliver on or before the Close of Escrow any other documents
required by the Escrow Agent in order to convey title to Buyer as contemplated
herein.

          3.2.2  Buyer's Documents.  On or before one day prior to the Close of
                 -----------------
Escrow, Buyer shall execute, acknowledge, deliver, and deposit into Escrow any
document reasonably required by the Escrow Agent in order to covey title to
Buyer as contemplated herein and to otherwise carry out the terms of this
Agreement.

     3.3  Close of Escrow.  Unless the parties mutually agree in writing upon a
different Closing Date, Escrow shall close no later than September 15, 2000,
subject to the satisfaction or waiver of conditions Articles 4.3 and 4.4 below.

                                   Article 4
                                 REVIEW PERIOD

     4.1  Review Period.  Buyer shall have  the later of 30 days following the
Opening of Escrow or the delivery to Buyer of a Preliminary Title Report to
investigate the Property and satisfy itself in its sole and absolute discretion
as to the suitability of the Property for its acquisition (the "Review Period").
Buyer acknowledges that it has conducted some investigation of the Property
prior to entering into this Agreement.  Seller shall no later than five business
(5) days after the Opening of Escrow deliver to Buyer at Buyer's notice address,
a copy of any soils reports, engineering studies, grading plans, maps, any
existing surveys, and environmental documents it may have in its possession
pertaining to the Property, and a copy of a Preliminary Title Report
("Preliminary Report"), prepared by Chicago Title Insurance Company (the "Title
Company") with respect to the Property containing such exceptions as the Title
Company would specify in the Title Policy (as defined below), along with copies
of all recorded documents referenced in the Preliminary Report ("Permitted
Exceptions").  Any and all such information furnished by Seller to

                                       2
<PAGE>

Buyer as required by this Section 4.1 shall be confidential, and Buyer is hereby
notified of its confidentiality in accordance with Section 11.12 herein.

     4.2  Review of Condition of Property.  Buyer may undertake the following
activities on this Property during the Review Period:

          (a)  Survey.  Buyer may arrange for and obtain an ALTA Survey of the
               ------
Property at Buyer's sole expense.

          (b)  Environmental Study.  Buyer shall have the right to conduct an
               -------------------
environmental study of the Property.  Any environmental study which Buyer may
undertake regarding the Property shall be at Buyer's sole expense.  Seller shall
have the right to be present on site during any field investigation, receive
split samples, if any are taken, and receive a copy of all draft and final
reports.  The Property shall be placed in the same condition as prior to any
such environmental study, and/or field investigation at Buyer's sole expense.
It is acknowledged that Buyer has already conducted a Phase 1 environmental
study of the Property.  In addition, Buyer and any designated representative
shall have the right to review environmental information pertaining to the
Property in Seller's possession; provided, however, all such information shall
be deemed confidential in accordance with Section 11.12 herein.

          (c)  Biological Assessment.  Buyer at Buyer's sole expense may conduct
               ---------------------
a biological survey assessment for Delhi Sands Flower Loving Fly and/or San
Bernardino County Kangaroo Rat on the Property.  Neither Buyer nor Seller will
seek an U.S. Fish and Wildlife clearance letter.  In addition, Buyer shall have
the right to review biological information pertaining to the Property in
Seller's possession; provided, however, all such information shall be deemed
confidential in accordance with Section 11.12 herein.  Buyer shall not disclose
such information to others without the prior consent of Seller prior to
disclosure.

          (d)  Zoning.  Buyer may undertake an investigation of the existing and
               ------
possible re-zoning for the Property to determine its suitability for Buyer's
purposes.

     4.3  Review of Condition of Title.  Buyer shall deliver notice of
disapproval of any exception or other title matter to Seller in writing on or
before twenty one (21) days from the receipt by Buyer of the Preliminary Report
and exception documents (the "Title Review Period").  Buyer shall deliver notice
of such disapproval to Seller in writing on or before the end of the Title
Review Period or all Permitted Exceptions shall be deemed approved.  If Buyer
disapproves any Permitted Exceptions, Seller may elect to remove such Permitted
Exceptions by the Close of Escrow or shall notify the Buyer in writing that such
Permitted Exceptions shall not be removed.  Seller shall give Buyer notice of
its election to not remove the disapproved exceptions within three (3) days of
Seller's receipt of Buyer's notice of disapproval, whereupon Buyer shall have
three (3) days in which to notify Seller that (i) Buyer revokes its disapproval
of such exception(s) and will proceed with the purchase without any reduction in
the Purchase Price and take title to the Property subject to such exception(s)
or (ii) Buyer will terminate this Agreement without liability to Seller, and
obtain a full refund of the Fifty-Thousand ($50,000.00) deposit.

     4.4  Disapproval of Contingencies.  Should Buyer, on or before the end of
the Review Period, deliver in writing to Seller a Notice of Disapproval ("Notice
of Disapproval"), with a copy to the Escrow Agent, then, except for Buyer's
obligations to indemnify Seller and of confidentiality, the respective rights,
duties, and obligations of Buyer and Seller under this Agreement shall terminate
without further liability.  The parties then shall immediately thereafter sign
such instructions and other instruments as may be necessary to effect the
cancellation of this Escrow, and each party shall pay its respective share (if
any) of escrow cancellation charges.  Upon

                                       3
<PAGE>

cancellation, Escrow Agent shall immediately return the funds, less applicable
escrow cancellation charges, and any documents to the parties that furnished
them (and Seller shall immediately return the Deposit to Buyer). Should Buyer
not deliver a Notice of Disapproval on or before the end of the Review Period,
then Buyer shall be deemed to have approved or waived its contingencies to the
purchase of the Property, and will consummate the contemplated purchase of the
Property, subject to Seller's performance of its obligations, as provided in
this Agreement.

                                   Article 5
                      ADDITIONAL COVENANTS AND AGREEMENTS

     5.1  Cooperation.  Buyer and Seller acknowledge that it may be necessary to
execute documents other than those specifically referred to herein in order to
complete the acquisition of the Property.  Both Buyer and Seller hereby agree to
cooperate with each other by executing such other documents or taking such other
action as may be reasonably necessary to complete this transaction in accordance
with the intent of the parties as evidenced in this Agreement.

     5.2  Federal and State Withholding Requirements.  The parties agree to
comply with the requirements of Section 1445 of the Internal Revenue Code,
California withholding requirements, and any regulations promulgated thereunder.

     5.3  No Interest in Water Rights.  Buyer shall acquire no interest in any
water rights, claims or title to water, including, without limitation, the water
rights adjudicated in the name of Seller, as successor to Kaiser Steel
Corporation, in the San Bernardino county Superior Court, Case No. 164327,
captioned Chino Basin Municipal Water District vs. City of Chino, et al, all
riparian and appropriate rights to surface waters and all water rights
represented by water stock. Furthermore, Buyer shall not have any claim, right,
or interest in any of the water rights in Fontana Union Water Company, a mutual
water company, in which Seller owns stock and that stock (or substantially all
of such stock) is leased to Cucamonga County Water District.

     5.4  Sewer Service.  Seller, or a wholly owned subsidiary of Seller, will
provide sewer service to the Property subject to and in accordance with that
certain Amended and Restated Sewer Services Agreement dated as of August 10,
2000, between Kaiser Ventures Inc. and The California Speedway Corporation First
Amendment to Amended and Restated Sewer Services Agreement substantially in the
form and content attached hereto as Exhibit "B". Any and all costs pertaining to
                                    ===========
the installation of any improvements or equipment, including without limitation
a lift station and appurtenant pipelines, to connect the Property to the
existing Sewer Treatment Facility described in the Sewer Services Agreement
shall be the sole expense and responsibility of Buyer.  The completion of such
installation shall not be a condition to the Close of Escrow.  However, the
execution and acknowledgement of Amended and Restated Sewer Agreement at such
time as Seller shall reasonably require (which may before the scheduled closing
on the Property) shall be a condition to the Close of Escrow.

     5.5  Plans and Approvals.  All plans, specifications, governmental
licenses, approvals and permits shall be the responsibility of Buyer at Buyer's
sole expense.  Seller agrees to reasonably cooperate with Buyer in any rezoning,
annexation, permitting of subdivision or any other governmental approval or
review of the Property, provided that Seller shall not be required to incur any
third party cots unless such shall be advanced or reimbursed by Buyer.

                                       4
<PAGE>

                                   Article 6
                            PRE CLOSING OBLIGATIONS

     6.1  Seller's Obligations.  The costs associated with the lot-line
adjustment shall by borne by Seller.  It is expressly understood and agreed that
any conditional use permit, zoning change, annexation, subdivision or any other
similar land use approval, license, or permit for any portion of the Property
shall be processed and obtained by Buyer at Buyer's sole expense.  Annexation
and/or subdivision shall not be a condition to the Close of Escrow.  In
addition, the Phase 1 environmental investigation conducted on behalf of Buyer
reported finding certain limited items located on the property, some of which
may constitute Hazardous Materials, as defined below.  Seller shall remove prior
to the Close of Escrow, the items specified in the Phase 1 report, other than
slag, to the reasonable satisfaction of Buyer.  However, in the event the
removal of such items would cost Seller more than $250,000, Seller shall have
the right to terminate this Agreement and to refund any deposit of Buyer that
may have been previously released to it.  Upon removal of the Hazardous
Materials on the Property as specified in the Phase 1 report, other than slag,
Seller shall provide a certificate to Seller as of the Closing Date certifying
that to the best of Seller's knowledge, Hazardous Materials have been removed in
accordance with the terms of this Agreement.

     6.2  Buyer's Obligations.  Buyer shall execute, acknowledge and deliver to
Seller, prior to closing, the Amended and Restated Sewer Agreement.

                                   Article 7
                            POST CLOSING OBLIGATIONS

     7.1  Improvements.  Seller shall have no liability or responsibility for
improvements on-site or off-site for the benefit of the Property except as set
forth in the Amended and Restated Sewer Services Agreement.

          7.1.1  Fees.  Except as otherwise provided in Paragraph 6.1, Buyer
                 ----
shall be responsible for and obligated to pay all fees, assessments, special
taxes or in-lieu fees encumbering the Property or required by any governmental
agency, redevelopment agency, assessment district, fee district or any other
similar governmental charges for or in connection with Buyer's purchase or
improvement of the Property.  Buyer shall be responsible for its prorata share
of any prepaid expenses such as property taxes.

          7.1.2  No Obligation for Governmental Approvals.  Buyer shall have the
                 ----------------------------------------
sole responsibility for processing approvals and construction of all
improvements on the Property Unless expressly otherwise provided in this
Agreement, all expenses and responsibility associated with governmental
approvals for the development of the Property shall be the sole responsibility
of Buyer.  However, Seller agrees to reasonably cooperate with Buyer in
processing such governmental approvals.

     7.2  Buyer's Compliance with Environmental Laws.  Buyer specifically
covenants and agrees to timely and fully comply with Environmental Laws, and
shall not allow the release of Hazardous Materials (as defined below) on or in
the Property (including, but not limited to, surrounding property, the surface,
subsurface, water and air) with Hazardous Materials.  Furthermore, Buyer shall
not use, store, handle or treat Hazardous Materials on the Property except in
full compliance with Environmental Laws (as defined below).

                                       5
<PAGE>

     7.3  Indemnification for Noncompliance.  Buyer specifically covenants and
agrees to timely and fully comply with Environmental Laws, and shall not allow
the release of Hazardous Materials on the Property (including, but not limited
to, the Building, surrounding property, the surface, subsurface, water and air).
Furthermore, Buyer shall not use, store, handle or treat Hazardous Materials on
the Subject Property except in full compliance with Environmental Laws.  Buyer
shall indemnify, defend, and hold Seller and its officers, directors,
shareholders, partners, employees, Affiliates, and assigns (collectively the
"Indemnified Parties") harmless from and against all liability, obligations,
claims, damages, penalties, losses, causes of action, costs, and expenses
(including attorneys' fees, expert witness fees, consulting and other
professional fees) imposed upon incurred by or asserted against the Indemnified
Parties as a result of any violation or asserted violation of or failure to
timely or fully comply with Environmental Laws or as a result of any release of
Hazardous Materials on the Property, adjacent property owned by Seller or its
Affiliates, or other property (including, but not limited to, improvements,
surface, subsurface water and air) or any allegations related thereto.

     This indemnification shall exclude Hazardous Materials that exist on the
Property prior to the Close of Escrow, which are found within the first seven
years after the Close of Escrow.

     7.4  Environmental Related Definitions.

          7.4.1     Hazardous Materials Defined.  For the purposes of this
                    ---------------------------
Agreement, "Hazardous Materials" shall mean and refer to any material or
substance which is (i) defined or listed as a "hazardous waste", "extremely
hazardous waste", "restrictive hazardous waste", "hazardous material",
"hazardous chemical", "extremely hazardous substance", "toxic substance", "toxic
pollutant", "pollutant", "pollution", "regulated substance", "pesticide",
"contaminant", "hazardous air pollutant", or words of similar import, or
considered a waste, condition of pollution, or nuisance, pursuant to the laws of
California and/or the United States:  (ii) gasoline, diesel fuel, oil, used oil,
petroleum, or a petroleum product or fraction thereof; (iii) asbestos and
asbestos-containing construction materials as defined by federal or state law,
by weight, of asbestos; (iv) substances known by the State of California or the
United States to cause cancer and/or reproductive toxicity; (v) toxic,
corrosive, flammable, infectious, radioactive, mutagenic, explosive or otherwise
hazardous substances which are or become regulated by any governmental agency or
instrumentality of the United States, or any state or any political subdivision
thereof; (vi) polychlorinated biphenyls (PCBs); (vii) urea formaldehyde foam
insulation; (viii) all hazardous air pollutants or materials known to cause
serious health effects (including, without limitation, volatile hydrocarbons,
pesticides, herbicides and industrial solvents) and/or (ix) substances which
constitute a material health, safety or environmental risk to any Person or
property.  It is the intent of the Parties hereto to construe the term
"Hazardous Materials" broadly.

          7.4.2     Environmental Laws Defined.  For the purposes of this
                    --------------------------
Agreement, "Environmental Laws" shall mean and refer to all federal, state and
local laws, rules, regulations, ordinances, guidelines, permit conditions,
orders, consent decrees and other requirements relating to health, safety,
hazardous substances, industrial hygiene and environmental conditions or
protections applicable to the Property and the Project's wild life and fish, if
any, and their habitats.  Such laws and regulations include, but are not limited
to, the Resource Conservation and Recover), Act, 42 U.S.C. (S)6901 et seq., as
amended from time to time; the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. (S)9601 et seq., as amended from time
to time; the Toxic Substances Control Act, 15 U.S.C. (S)2601 et seq., as amended
from time to time; the Clean Water act, 33 U.S.C. (S)466 et seq., as amended
from time to time; the Clean Air Act, 42 U.S.C. (S)7401 et seq., as amended from
time to time; the Emergency Planning and Community, Right-to-Know Act, 42 U.S.C.
(S)1101 et seq., as amended from time to time; the Hazardous Materials
Transportation Act, 49 U.S.C. (S)5101 et seq., as amended from time to time; the
Federal Water

                                       6
<PAGE>

Pollution Control Act, 33 U.S.C. (S)1251 et seq., as amended from time to time;
the Federal Insecticide, Fungicide and Rodenticide Act, & U.S.C. (S)136 et seq.,
as amended from time to time; the Oil Pollution Act of 1990, 33 U.S.C. (S)2701
et seq., as amended from time to time; the Safe Drinking Water Act, 42 U.S.C.
(S)300 et seq., et seq., as amended from time to time; the Pollution Prevention
Act 29 U.S.C. (S)651 et seq., as amended from time to time; state and federal
super lien and environmental clean-up programs; U.S. Department of
Transportation regulations; Endangered Species Act, 16 U.S.C. (S)1531 et seq.,
as amended from time to time; all applicable state and local statutes and
ordinances with a scope or purpose similar to the foregoing; and all regulations
promulgated pursuant to said laws.

                                   Article 8
         ACKNOWLEDGMENTS, REPRESENTATIONS, WARRANTIES AND INDEMNITIES

     8.1  Buyer's Acknowledgments, Representations, Warranties and Indemnity.

          8.1.1  Purchase "As Is", Release and Indemnity.  Except as set
                 ---------------------------------------
forth in this Agreement:  (a) Buyer is relying solely, upon its own inspections,
investigations, and analyses of the Property, in entering into this Agreement
and is not relying in any way upon any representations, statements, agreements,
warranties, studies, reports, descriptions, guidelines or other information or
material furnished by Seller or its representatives, whether oral or written,
express or implied, of any nature whatsoever regarding any such matters; (b)
Buyer has made such independent investigations and analyses as Buyer deems
necessary or appropriate concerning Buyer's proposed use and development of the
Property; (c) Buyer is buying the Property on an "as is-all faults" basis,
except for environmental conditions existing before Close of Escrow; (d) no
patent or latent condition affecting the Property in any way (including, without
limitation, the effects of Hazardous Materials, unless the Hazardous Materials
are reported in the environmental studies provided or otherwise shown within
seven years of the Close of Escrow to have been present on the Property before
the Close of Escrow) (collectively, the "Property Conditions"), shall give rise
to any right of damages, specific performance, rescission or other claims by
Buyer against Seller; and (e) Buyer hereby assumes the risk of any and all
liabilities, claims, demands, suits, judgments, losses, damages, expenses
(including, without limitation, attorney's fees) and other obligations arising
out of or incurred in connection with the effect of the Property Conditions
(collectively, the "Assumed Risks") Seller shall have no obligation to correct
any conditions or alleged defects discovered by Buyer in the course of its
investigations or inspections or thereafter with respect to the Property except
for Hazardous Materials above the standards requiring remediation shown to exist
within seven years of the Close of Escrow by clear and convincing evidence to
have been present on the Property before the Close of Escrow.  There shall be no
remediation, indemnification, or legal obligation asserted against Seller after
the expiration of seven (7) years after the Close of Escrow.  Notwithstanding
the above, Seller shall only be obligated to remediate any Hazardous Materials
on the Property pre-existing the Closing Date requiring remediation under
applicable Environmental Laws, except those attributable to Buyer, its agents,
and their activities, to industrial standards and not residential standards.
Furthermore, if Seller is required to remediate any Hazardous Materials, Buyer
agrees that it will allow the placement of a Covenant to Restrict Property which
would prohibit the use of the Property for residences; day care; schools, and
other similar uses.  Buyer shall not be entitled to any damages or expenses as a
result of the placement of such a covenant on the Property.

          8.1.2  Assumption Release and Indemnity.  Except as set forth in this
                 --------------------------------
Agreement, Buyer for itself and its successors and assigns (the "Buyer's Related
Parties") with respect only to the Property:  (i) releases, waives, discharges,
covenants not to sue Seller and all current and future officers, directors,
shareholders, employees, agents, affiliates, partners, successors and assigns of
Seller (collectively the "Released Parties"), and each of them for any and all
liabilities

                                       7
<PAGE>

or obligations concerning the Assumed Risks except that for a period of seven
(7) years following the Close of Escrow Seller shall remain responsible and
liable for Hazardous Materials on the Property on the Close of Escrow that
require Remediation under applicable Environmental Laws at standards in excess
of industrial standards; and (ii) waives the benefits of California Civil Code
Section 1542, except with regard to Seller's responsibility and liability for
Hazardous Materials on the Property as of the Close of Escrow for a period of
seven (7) years following the Close of Escrow as provided herein, which provides
as follows:

   "A general release does not extend to claims which the creditor
   does not know or suspect to exist in his favor at the time of
   executing the release, which if known by him must have materially
   affected his settlement with the debtor."

          8.1.3  Buyer's Authority.  Buyer represents and warrants to Seller
                 -----------------
that it and the individuals executing this Agreement for Buyer have the legal
power, right and authority to enter into this Agreement and to consummate the
transaction contemplated hereby and this Agreement is a binding obligation of
Buyer subject to bankruptcy and other similar laws affecting creditors.

          8.1.4  No Finders.  Buyer represents and warrants to Seller that it
                 ----------
has not employed a broker in connection with the contemplated transaction.

     8.2  Seller's Acknowledgments, Representations, Warranties and Indemnity

          Except as expressly stated in this Agreement, seller makes no other
representations or warranties either express or implied.

          8.2.1  Seller's Authority.  Seller represents and warrants to Buyer
                 ------------------
that it and the individuals executing this Agreement for Seller have the legal
right and authority to enter into this Agreement and to consummate the
transaction contemplated hereby and this Agreement is a binding obligation of
Seller subject to bankruptcy and other similar laws affecting creditors.

          8.2.2. Ownership of the Property.  Seller is the owner of o the
                 -------------------------
Property and the Property as of the Closing Date shall be free and clear of all
liens, restrictions, easements, leases, tenancies, charges, rights of use or
possession or of any other title objections except the Permitted Exceptions and
those exceptions as may be otherwise mutually agreed upon by the Parties.

          8.2.3. No Finders.  No finder, broker or other intermediary has been
                 ----------
used by Seller in connection with the transactions contemplated by this
Agreement and no person will be entitled to a finder's fee or brokerage
commission upon consummation of such transactions or otherwise in connection
therewith. Seller agrees to indemnify and hold harmless Buyer from and against
any finder's fee or brokerage commission arising out of the conduct of Seller.

          8.2.4  Eminent Domain.  To the best of Seller's knowledge, Seller has
                 --------------
received no written notice from any governmental authority that eminent domain
proceedings for the condemnation of the Property or any part in thereof are
pending.

          8.2.5  Litigation.  To the best of Seller's knowledge, (except as
                 ----------
disclosed in writing by Seller to Buyer or Buyer's counsel) Seller has received
no written notice of any threatened or pending litigation against Seller which
would materially and adversely affect the Property or Seller's obligations
pursuant to this Agreement.

          8.2.6  No Conflict.  To the best of Seller's knowledge, neither
                 -----------
Seller's execution of this Agreement nor performance by Seller of any of its
obligations hereunder including, without

                                       8
<PAGE>

limitation, the transfer, assignment and sale of the Property contemplated by
this Agreement (a) violates or shall violate any written or oral contract,
agreement or instrument to which Seller is a party or is bound or which affects
the Property or any part of it, or (b) shall constitute or result in violation
or breach by Seller of any judgment, order, writ, injunction, or decree issued
or imposed upon Seller, or result in violation of any applicable laws; and no
approval, consent, order, authorization, designation, filling (other than
recording), required in conjunction with Seller's execution of this Agreement
and performance of its obligations hereunder.

          8.2.7  Environmental Warranty.  To the best of Seller's actual
                 ----------------------
knowledge, there will be no Hazardous Materials on or in the Property in
sufficient quantities so as to require remediation as of the Closing under
applicable Environmental Laws.

          8.2.8  Environmental Indemnity.  For a period of seven (7) years from
                 -----------------------
the Close of Escrow, Seller agrees to defend, indemnify and hold harmless Buyer
and all current and future officers, directors, shareholders, employees and
affiliates, successors and assigns of Buyer (collectively the "Buyer Indemnified
Parties") and each of them from any and all liabilities, obligations or costs
(including attorneys' fees) as a result of a breach of Section 8.2.7 or the
presence of Hazardous Materials being released on or in the Property prior to
the date of Closing. Any environmental remediation or obligation undertaken
pursuant to this indemnity provision shall be subject to, limited by and
performed in accordance with the provisions of Section 8.1.1. Seller shall have
no indemnification or remediation obligation after the seventh (7th) anniversary
of the Closing except as to claims made prior to such date.

          8.2.9  Copies of Documents. The documents presented to Buyer by Seller
pursuant to this Agreement are true, correct, and complete copies of all
material documents in Seller's possession or control that can be reasonably
retrieved and that are not subject to the attorney-client privilege, the
attorney work product privilege, or any other privilege.

          8.2.10 Lot-Line Adjustment.  The "Lot-Line" adjustment for the
Property has been completed and approved by the County of San Bernardino Land
Use Services/Planning Division.

                                   Article 9
                              THE CLOSE OF ESCROW

     9.1  Close of Escrow.  Escrow Agent shall close the Escrow (the "Close of
Escrow") on or before the Closing Date WHEN AND ONLY WHEN each of the following
conditions has been, or upon such Closing shall be, satisfied or waived.

          9.1.1  Supplements to Preliminary Report.  If any title exceptions are
                 ---------------------------------
recorded against the Property except as a result of Buyer's actions before the
Close of Escrow in addition to the Permitted Exceptions or instruments disclosed
in the Preliminary Report, Buyer shall have approved such exceptions within
three (3) days after receipt of a supplemental report showing such exceptions or
this Agreement shall terminate and Seller shall refund the Deposit to the Buyer.

          9.1.2  Title Policy.  Escrow Agent shall be unconditionally committed
                 ------------
to procure from the Title Company, at Seller's expense, a CLTA owners policy of
title insurance or, at Buyer's request, an ALTA Owners Policy of title insurance
(the "Title Policy") with a liability limit in the amount of the Purchase Price
and insuring fee title vested in Buyer free and clear of any liens, encumbrances
and interests except:  (i) general, special and supplemental taxes that are not
yet payable; (ii) those Permitted Exceptions as approved by Buyer; (iii) those
rights, interests and

                                       9
<PAGE>

easements, if any, reserved by Seller in Seller's Grant Deed; (iv) the matters
described in the printed form portion of the Title Policy; and (v) any items
caused by the acts or omissions of Buyer or permitted to be placed of record by
Buyer as of the close of escrow. As provided in Section 9.5, the increased
premium for an ALTA Owner's Policy shall be paid by Buyer.

          9.1.3  Buyer's Performance, Representations and Warranties.  Buyer
                 ---------------------------------------------------
shall have duly performed each and every undertaking and agreement to be
performed by it hereunder and under the terms and conditions of the Agreement,
and Buyer's representations and warranties shall be true and correct in all
material respects at and as of the Close of Escrow.  Buyer shall provide Seller
an Officer's certificate, certifying the above.

          9.1.4  Deposit of Purchase Price.  Buyer shall have deposited the full
                 -------------------------
Purchase Price in Escrow. Upon the Close of Escrow, the full Purchase Price
(less the Deposit) shall be delivered to Seller.

          9.1.5  Deed to the Property.  Seller shall have deposited into Escrow
                 --------------------
the executed and acknowledged Grant Deed to the Property in recordable form.
Upon the Close of Escrow the Escrow Agent shall cause the Grant Deed to be
recorded in the Official Records of San Bernardino County, California.

          9.1.6  Amended and Restated Sewer Agreement.  Buyer and Seller shall
                 ------------------------------------
have executed and delivered two (2) copies of the Amended and Restated Sewer
Agreement.

          9.17   Certification Regarding Hazardous Materials.  Seller shall
                 -------------------------------------------
have delivered its certificate regarding Hazardous Materials as provided in
Section 6.1.

          9.18   Zoning.  Buyer shall have satisfied itself with regard to
                 ------
the zoning of the Property for Buyer's anticipated intended use; provided,
however, if Buyer has not resolved this zoning contingency within sixty (60)
days after the date of this Agreement, Seller shall have the right to terminate
this Agreement pursuant to the provisions of Section 9.2 hereof.

     9.2  Termination Based on Failure to Close by Closing Date.  If Escrow
fails to close by the Closing Date for any reason other than Buyer's or Seller's
default, then, except for Buyer's obligations to indemnify Seller, the
respective rights, duties and obligations of Buyer and Seller under this
Agreement shall forthwith terminate without further liability.  The Parties
shall immediately thereafter sign such instructions and other instruments as may
be necessary to effect the cancellation of this Escrow.  Upon cancellation,
Seller shall refund the Deposit to Buyer, Escrow Agent shall immediately return
any funds it is then holding, less applicable escrow cancellation charges, and
documents to the parties that furnished them.  Notwithstanding the provisions of
this Paragraph, the Parties may extend the Closing Date by their mutual written
agreement in which event the provisions of this Paragraph shall apply to the
extended closing date with the same force and effect as the Closing Date.

     9.3  Prorations.  Property taxes, special assessments, utility charges and
other similar amounts with respect to the Property shall be prorated as of the
Closing Date by the Escrow Agent, in accordance with the Escrow Agent's standard
practices and as shall be mutually agreed upon by Buyer and Seller prior to the
Close of Escrow.

     9.4  Seller's Fees and Costs.  Seller will pay:  (i) the fee for a CLTA
Owners Title Policy; (ii) one-half of Escrow Agent's escrow fee; (iii) usual
Seller's document-drafting and recording charges; (iv) Documentary Transfer Tax
in the amount Escrow Agent determines to be required by law.

                                       10
<PAGE>

     9.5  Buyer's Fees and Costs.  Buyer will pay:  (i) one-half of Escrow
Agent's escrow fee; (ii) usual Buyer's document-drafting and recording charges;
and (iii) the additional premium for an ALTA Owners Title Policy and
endorsements to the Policy, should Buyer request other than a CLTA Owners Title
Policy.

                                  Article 10
                                   REMEDIES

     10.1 Seller's Liquidated Damages.  IF ESCROW FAILS TO CLOSE DUE TO BUYER'S
DEFAULT UNDER THIS AGREEMENT, SELLER WILL BE DAMAGED AND WILL BE ENTITLED TO
COMPENSATION FOR THOSE DAMAGES. SUCH DAMAGES WILL, HOWEVER, BE EXTREMELY
DIFFICULT AND IMPRACTICAL TO ASCERTAIN. IF ESCROW FAILS TO CLOSE DUE TO BUYER'S
DEFAULT UNDER THIS AGREEMENT, PROVIDED SELLER IS NOT ALSO IN DEFAULT HEREUNDER,
THE SUM REPRESENTED BY THE DEPOSIT MADE UNDER ARTICLE 2.2.1 SHALL BE DEEMED TO
CONSTITUTE A REASONABLE ESTIMATE OF SELLER'S DAMAGES UNDER THE PROVISIONS OF
SECTION 1671 OF THE CALIFORNIA CIVIL CODE AND SELLER'S SOLE AND EXCLUSIVE REMEDY
IN THE EVENT OF THE FAILURE TO CLOSE ESCROW RESULTING FROM BUYER'S DEFAULT SHALL
BE LIMITED TO SUCH AMOUNTS PROVIDED, HOWEVER, THE PARTIES AGREE THAT, IN NO
EVENT, SHALL THIS LIQUIDATED DAMAGES PROVISION APPLY TO ANY BREACH OF BUYER'S
OBLIGATIONS UNDER ANY OTHER INDEMNITY PROVISION OF THIS AGREEMENT. BY INITIALING
THIS PROVISION IN THE SPACES BELOW. SELLER AND BUYER EACH SPECIFICALLY AFFIRM
THEIR RESPECTIVE AGREEMENTS CONTAINED IN THIS PARAGRAPN 10.1.

          BUYER'S INITIAL __________      SELLER'S INITIALS ___________

     10.2 Buyer's Liquidated Damages.  IF SELLER DEFAULTS UNDER ANY PROVISIONS
OF THIS AGREEMENT, BUYER, WILL BE DAMAGED AND WILL BE ENTITLED TO COMPENSATION
FOR THOSE DAMAGES. SUCH DAMAGES WILL, HOWEVER, BE EXTREMELY DIFFICULT AND
IMPRACTICAL TO ASCERTAIN. IF ESCROW FAILS TO CLOSE AS A RESULT OF SELLER'S
DEFAULT, ONE HUNDRED THOUSAND DOLLARS ($100,000) SHALL CONSTITUTE A REASONABLE
ESTIMATE OF BUYER'S DAMAGES AND SUCH DAMAGES SHALL BE THE SOLE AND EXCLUSIVE
REMEDY FOR SELLER'S DEFAULT. BUYER'S SOLE AND EXCLUSIVE REMEDY IS THE PAYMENT OF
ONE HUNDRED THOUSAND DOLLARS ($100,000), AND HEREBY WAIVES ANY ACTIONS AGAINST
 SELLER OR THE PROPERTY FOR SPECIFIC PERFORMANCE AND CONSEQUENTIAL DAMAGES;
PROVIDED, HOWEVER, THE PARTIES AGREE THAT IN NO EVENT SHALL THIS LIQUIDATED
DAMAGES PROVISION APPLY TO PAY BREACH OF SELLER'S OBLIGATIONS UNDER ANY OTHER
INDEMNITY PROVISION OF THIS AGREEMENT.

          BY INITIALING THIS PROVISION IN THE SPACES BELOW, SELLER AND BUYER
EACH SPECIFICALLY AFFIRM THEIR RESPECTIVE AGREEMENTS CONTAINED IN THIS PARAGRAPH
10.2.

          BUYER'S INITIAL __________      SELLER'S INITIALS ___________

                                       11
<PAGE>

                                  Article 11
                              GENERAL PROVISIONS

     11.1      Time of the Essence and Strict Construction.  Time is of the
essence pursuant to this Agreement for the performance and observance of all
obligations of Seller and Buyer hereunder and all provisions of this Agreement
shall be strictly construed.

     11.2      Notice and Demands. All notices or demands required or permitted
pursuant to this Agreement shall be in writing, signed by the party giving the
same, and shall be deemed properly given and received when personally served or
upon the earlier of (i) receipt or (ii) rejection, if sent by registered or
certified mail, postage prepaid or by nationally recognized overnight courier
service, such as Federal Express, and addressed to the intended recipient at its
address as set forth below or at any other address of which such party gives the
other party notice in accordance with the provisions of this Section 11.2.

     If to Buyer:        The California Speedway Corporation
                         9300 Cherry Ave.
                         Fontana, CA 92335
     Attention:          Les Richter

     With copy to:       Penske Corporation
                         13400 West Outer Drive
                         Detroit, MI 48239
     Attention:          Robert H. Kurnick, Jr., Esq.

     If to Seller:       Kaiser Steel Land Development Inc.
                         3633 E. Inland Empire Blvd., Suite 850
                         Ontario, CA 91764
     Attention:          Lee R. Redmond III, Vice President - Real Estate

     With copy to:       Kaiser Steel Land Development, Inc.
                         3633 E. Inland Empire Blvd., Suite 850
                         Ontario, CA 91764
     Attention:          Terry L. Cook, Vice President and General Counsel

     11.3      Captions for Convenience.  The headings and captions of this
Agreement are for convenience and reference only and shall not be considered in
interpreting the provisions hereof.

     11.4      Severability.  Any provision in this Agreement which is illegal,
invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction, be
ineffective to the extent of such illegality, invalidity or unenforceability
without invalidating the remaining provisions hereof or affecting the legality,
validity or enforceability of such provision in any other jurisdiction. Seller
and Buyer shall negotiate in good faith to replace any illegal, invalid or
unenforceable provision of this Agreement with a legal, valid and enforceable
provision that, to the extent possible, will preserve the economic bargain of
this Agreement, or shall otherwise amend this Agreement, including the provision
relating to choice of law, to achieve such result.

     11.5      Governing Law.  This Agreement shall be interpreted and enforced
according to the laws of the State of California.

     11.6      No Oral Amendment or Modification.  No provision of this
Agreement may be amended or modified except to the extent any such amendment or
modification is expressly set

                                       12
<PAGE>

forth in a written instrument executed by the party against whom the amendment
or modification is sought.

     11.7      Relationship of Seller and Buyer.  Nothing contained in this
Agreement shall be deemed or construed as creating the relationship of principal
and agent, partnership, or joint venture and no provision in this Agreement end
no act of Seller or Buyer shall be deemed to create any relationship other than
that of Seller and Buyer.  Without limiting the generality of the foregoing, all
obligations of Seller and Buyer with respect to third parties shall be
independent.

     11.8      Attorneys' Fees.  If it becomes necessary for Seller or Buyer to
bring an action (including any form of dispute resolution), either at law or in
equity, to enforce or interpret the provisions of this Agreement, the prevailing
party in such action shall be entitled to recover its reasonable attorneys' fees
and other professional fees and costs of all types, as a part of any judgment
therein, in addition to any other award which may be granted.

     11.9      Amended and Successor Statutes and Regulations.  All references
in this Agreement to a statute or regulation or section of same, shall include
future amendments and successor statutes, regulations, or sections thereof, as
applicable, and all references in this Agreement to any local, state or federal
government commission, department or agency or instrumentality or court shall
include their successors.

     11.10     Entire Agreement.  This Agreement and the exhibits and schedules,
if any, attached hereto contains all of the agreements and understanding with
respect to the matters covered hereby, and no prior agreements, oral or written,
or understandings, representations, or warranties of any nature or kind what so
ever pertaining to such matters shall be effective for any purpose unless
expressly incorporated into the provisions of this Agreement or the exhibits
attached hereto.

     11.11     Exhibits and Schedules.  All exhibits and schedules which are
referred to in this Agreement are incorporated into this Agreement as though
fully set forth herein.

     11.12     Confidentiality.  If either Party gives notice to the other Party
that certain of its information is being furnished or for which access is being
given to the other Party on a confidential basis, then, to the extent that such
information is disclosed or made available to it, the other Party shall
thereafter treat and maintain the same as confidential information and shall not
use it or disclose it to others without the prior consent of the Party giving
notice; provided, however, that this provision shall not apply to (a) disclosure
or use as is necessary to perform the provisions of this Agreement (but only on
a confidential basis which is satisfactory to the party giving notice) and (b)
disclosure or use which is required or compelled by law. Notwithstanding the
foregoing, this Section 11.12 shall not apply to any information which the Party
to which the information has been furnished can show: (i) has been published or
become part of the public domain other than by the conduct of such Party, its
officers, employees or agents; (ii) has been furnished or made known to such
Party by third parties (other than those acting directly or indirectly on behalf
of such Party,) as a matter of legal right and without restriction on
disclosure; or (iii) was lawfully in such Party's possession before the
disclosure by the disclosing Party.

     11.13     Successors and Assigns.  Buyer may assign or otherwise transfer
any of its rights or obligations under this Agreement without obtaining the
prior written consent of Seller. Such assignment shall not release Buyer or
Buyer's assignee from its obligations hereunder. Seller may, at any time, assign
or otherwise transfer its rights and obligations under this Agreement without
the consent of Buyer. Such assignment shall not release Seller or Seller's
assignee from its obligations hereunder. Subject to the restrictions and
prohibitions on assignment each and all of the covenants

                                       13
<PAGE>

and conditions of this Agreement shall inure to the benefit of and shall be
binding upon the successors in interest of Buyer and Seller, as applicable and,
subject to the restrictions on transfers herein provided, their successors,
heirs, representatives and assigns.

     11.14     Eminent Domain.  If, prior to the Close of Escrow, all or any
portion of the Property is taken or appropriated by any public or quasi-public
authority under the power of eminent domain or such an eminent domain action is
threatened pursuant to a resolution of intention to condemn filed by any public
entity, and if such taking will materially and adversely affect the Property,
then Buyer may terminate this Agreement without further liability hereunder and
receive a refund of its Deposit and documents deposited herein. If Buyer does
not timely terminate this Agreement or if a partial taking of the Property which
does not materially and adversely affect the Property occurs, then this
Agreement shall remain in full force and effect and upon the Closing Date Buyer
shall receive from Seller any award paid for that portion of the Property taken
or the right to an award if not paid as of the Closing Date. Buyer must elect to
terminate or maintain the Agreement by notice in writing to Seller with twenty
(20) days after written notice by Seller of a threatened taking or it shall be
deemed that Buyer has elected not to terminate this Agreement. Buyer may also
have the right to seek an award of condemnation for any future loss of revenues
it may have.

     11.15     Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument.

     11.16     No Third Party Beneficiary.  This Agreement is not for the
benefit of any person or entity other than Buyer and Seller.

     11.17     Survival of Representations and Warranties.  The representations
and warranties of Buyer and Seller shall terminate on the seventh (7/th/)
anniversary of the Closing.

     11.18     No Recordation.  This Agreement shall not be recorded except with
the express written consent of both parties hereto.

     IN WITNESS WHEREOF, Seller and Buyer have caused this Agreement to be
executed by their respective duly authorized representative as of the day and
year first above written.

<TABLE>
<S>                                             <C>
"Seller"                                        "Buyer"
Kaiser Steel Land Development, Inc.             The California Speedway Corporation
 a Delaware corporation                          a California corporation

By:  /s/ Terry L. Cook                          By:  /s/ Les Richter
     ---------------------------------               ----------------------------------
     Terry L. Cook

Its: Vice President - General Counsel           Its: Vice President - Special Projects
     --------------------------------                ---------------------------------
</TABLE>

                                       14

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