THIS EQUIPMENT PURCHASE AGREEMENT, dated as of October 2, 2000 (the "Equipment Agreement"),
is by and between ALLOY STEEL INTERNATIONAL, INC., a Delaware corporation ("ASI"), and KROKO
NOMINEES PTY LTD As Trustee for THE COLLIER UNIT TRUST, an Australian entity ("Collier").
WHEREAS, ASI desires to purchase from Collier, and Collier desires to sell, an Alloy Application Machine
known as Machine #2 ("Machine #2"), upon the terms and subject to the conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of the mutual benefits to be derived and the representations, warranties,
conditions and covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as
ARTICLE I: PURCHASE AND SALE
SECTION 1.01. Sale and Purchase of Assets.
(1) On the Date hereof Collier shall sell, transfer, grant, convey and assign to ASI, its successors and assigns
forever, and ASI shall purchase and receive from Collier, all of the right, title and interest in and to Machine #2.
SECTION 1.02. Consideration. The purchase price is $820,000 in United States Dollars (the "Purchase Price").
SECTION 1.03. Delivery. Delivery shall be made at ASI's expense to its plant and will furnish specifications for
ARTICLE II: REPRESENTATIONS AND WARRANTIES
SECTION 2.01. "AS IS" Sale.
MACHINE #2 COVERED BY THIS CONTRACT HAS BEEN PURCHASED BY ASI "As Is" and "With
All Faults" AND ASI ACKNOWLEDGES THAT NO WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR ANY PARTICULAR PURPOSE ARE TO BE IMPLIED BY THIS TRANSACTION.
SECTION 2.02 DISCLAIMER OF EXPRESS WARRANTIES.
Any affirmation of fact or promise made by Collier shall not be deemed to create an express warranty that
Machine #2 conforms to the affirmation or promise.
SECTION 2.03 DISCLAIMER OF IMPLIED WARRANTIES.
THIS SALE IS MADE ON THE EXPRESS UNDERSTANDING THAT THERE IS NO IMPLIED
WARRANTY THAT MACHINE #2 SHALL BE FIT FOR A PARTICULAR PURPOSE. ASI
ACKNOWLEDGES THAT THERE ARE NO WARRANTIES TH