Document:

Exhibit 10.4

                              EMPLOYMENT AGREEMENT

      AGREEMENT  made and entered  into as of this second day of October,  2000,
between  Alloy  Steel   International,   Inc.,  a  Delaware   corporation   (the
"Corporation")  having an address at 42  Mercantile  Way Malaga,  P.O.  Box 3087
Malaga D C 6945,Western Australia and Gene Kostecki (the "Executive").

                              W I T N E S S E T H:

      WHEREAS, Executive is presently employed by the Corporation; and

      WHEREAS,  the Corporation and the Executive  desire to set forth the terms
of  Executive's  employment  with the  Corporation,  pursuant  to the  terms and
conditions hereof.

      NOW,  THEREFORE,  in consideration of the covenants and agreements  herein
contained,  the  parties  hereto  agree with each other as  follows:

1.    Term of  Employment.  The  Corporation  agrees to and does  hereby  employ
      Executive,  and Executive  agrees to and does hereby accept  employment by
      the Corporation,  as the Founder, Chairman, and Chief Executive Officer of
      the Corporation,  subject to the supervision and direction of its Board of
      Directors, for the five (5) year period commencing on October 2, 2000, and
      ending at  midnight on the first day of October,  2005 (the  "Term").  The
      Term shall be automatically  renewed on an annual basis (each such period,
      a "Renewal  Period") for an additional year (the "Renewal  Term"),  unless
      this   Agreement  is  terminated  in  writing  by  the  Executive  or  the
      Corporation  (the "Notice of Nonrenewal") not less than one hundred eighty
      (180)  days prior to the  expiration  of the Term or any  Renewal  Period,
      unless otherwise

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terminated pursuant to the provisions of this Agreement.

2.    Duties of  Executive.  Executive  shall  devote such time,  attention  and
      energy to the affairs of  Corporation  as shall be reasonably  required to
      perform  his duties  hereunder,  and, in  pursuance  of the  policies  and
      directions of the Board of Directors, Executive shall use his best efforts
      to promote the business and affairs of the Corporation.

3.    Base Compensation.  In consideration of the Executive's  services pursuant
      to this Agreement,  Corporation shall pay to Executive,  during the period
      of Executive's  employment under this Agreement,  (i) a salary at the rate
      of One Hundred Fifty Thousand Dollars  (U.S.$150,000.00)  per year for the
      first year of this Agreement (the "Base  Compensation);  and (ii) for each
      year thereafter,  annual  compensation shall be determined by the Board of
      Directors,  but in no event less than  $150,000.00.  The Base Compensation
      shall  be  payable  in  equal   installments,   in  accordance   with  the
      Corporation's  customary  procedures  for executive  employees  (but in no
      event less  frequently than  semi-monthly),  subject to applicable tax and
      payroll deductions. The Board of Directors of the Corporation may increase
      Executive's Base  Compensation at such time or times and in such amount or
      amounts  as  it  may  in  its  sole  discretion  determine.

4.    Incentive  Compensation.  (a).  Provided  Executive has duly performed his
      obligations  pursuant  to  this  Agreement,  Executive  will  receive,  as
      additional compensation for the services to be rendered by Executive under
      this Agreement, cash incentive compensation,  the amount of which shall be
      determined by the Board of Directors based on the Executive's  performance
      and contributions to the Corporation's  success.

      (b). Provided Executive's  employment continues during the term hereof and
      he is in good

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      standing,  Executive  shall receive  stock  options to purchase  shares in
      accordance with the Corporation's 2000 Stock Option Plan.

5.    Other  Benefits.  During the term of this Agreement the Executive shall be
      entitled to  participate  in any benefit plans adopted by the  Corporation
      for the  general  and  overall  benefit  of all  employees  and/or for key
      executives  of the  Corporation  such  as  health  care,  life  insurance,
      disability,   stock  option  plans,  tax,  legal  and  financial  planning
      services, pension, profit sharing and savings. Executive shall be entitled
      to receive at no cost full family coverage health care insurance.

6.    Vacation. Executive shall be entitled to a fully paid vacation of four (4)
      weeks per calendar year, which vacation shall be scheduled at such time or
      times as the  Corporation  in  consultation  with Executive may reasonably
      determine.

7.    Expenses.  The  Corporation  shall  pay or  reimburse  Executive  for  all
      reasonable and necessary  expenses  incurred by him in connection with his
      duties hereunder,  upon submission by Executive to the Corporation of such
      reasonable  evidence of such expenses as the Corporation  may require.

8.    Insurance.  The  Corporation  may from time to time apply for  policies of
      life,  health and accident  insurance  or  disability  insurance  upon the
      Executive  in such  amounts  as the  Corporation  deems  appropriate.  The
      Executive  agrees to aid the  Corporation  in  procuring  such  insurance,
      including  submitting  to  a  physical  examination,   if  required,   and
      completing  any and all forms required for  application  for any insurance
      policy.

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9.    Support. The Executive shall be provided by the Corporation at its expense
      with  office  space,   furnishings  and  facilities,   reserved   parking,
      secretarial  and  administrative  assistance,  supplies and other  support
      equipment  (including  a computer,  mobile  phone,  facsimile  machine and
      photocopier).

10.   No Forced  Relocation.  The  executive  shall not be  required to move his
      principal  place of residence  from the greater Perth,  Western  Australia
      area or to perform  regular  duties that could  reasonably  be expected to
      require either such move against his wish or to spend amounts of time each
      week  outside  the  greater  Perth,   Western  Australia  area  which  are
      unreasonable  in  relation  to  his  duties  and  responsibilities  of the
      Executive  hereunder,  and the Corporation agrees that, if it requests the
      Executive to make such a move and the Executive declines the request,  (i)
      that declination  shall not constitute any basis for a determination  that
      Cause  exists,  and (ii) no animosity  or  prejudice  will be held against
      Executive.

11.   Disclosure of  Information.  The Executive  shall,  during his  employment
      under this Agreement and thereafter,  keep  confidential  and refrain from
      disclosing to any unauthorized  persons all data and information  relating
      to  the   respective   businesses  of  the   Corporation  or  any  of  its
      subsidiaries.

12.   Intellectual Property Rights.

      (a) The Executive  shall promptly  disclose to the Corporation in writing,
      any and all charts, layouts, maps, inventions,  improvements,  techniques,
      markets,  sales and  advertising  plans,  processes,  concepts  and plans,
      whether  or  not   copyrightable  or  patentable,   secret  processes  and
      "know-how," conceived by the Executive during the

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      term  of  his  employment  by  the  Corporation  (the   "Executive's  Work
      Product"), whether alone or with others and whether during regular working
      hours and through the use of facilities and property of the Corporation or
      otherwise,   which  directly  relates  to  the  present  business  of  the
      Corporation.  Upon the  Corporation's  request at any time or from time to
      time during the Term of the  Executive's  employment,  the Executive shall
      (i) deliver to the Corporation copies of the Executive's Work Product that
      may be in his  possession or otherwise  available to him; and (ii) execute
      and deliver to the Corporation  such  applications,  assignments and other
      documents  as it may  reasonably  require in order to apply for and obtain
      copyrights or patents in the United States of America and other  countries
      with  respect  to  any  Executive's  Work  Product  that  it  deems  to be
      copyrightable or patentable, and/or otherwise to vest in itself full title
      thereto.

      (b) All  documents  that  pertain to the  Corporation,  including  but not
      limited to the Executive's  Work Product,  shall be the sole and exclusive
      property  of the  Corporation.  Upon the  termination  of the  Executive's
      employment,  all such documents that may be in his possession or otherwise
      available to him or shall  thereafter  come into his possession or control
      shall be promptly  returned to the Corporation  without the necessity of a
      request therefor.

13.   Non-Competition   Covenant.  (a)  The  Executive  shall  not,  during  his
      employment by the  Corporation,  engage,  directly or  indirectly,  in any
      business  competitive  with the  business of the  Corporation  without the
      consent of the Board of Directors.

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      (b) For a period of one (1) year after the  termination of the Executive's
      employment  hereunder  (the  "Non-Competition  Period"),  for  any  reason
      whatsoever,  other than a  termination  by the  Corporation  without  Good
      Cause, the Executive shall not (i) engage,  directly or indirectly,  as an
      officer,  director,  shareholder,  owner, partner,  joint venturer or in a
      managerial  capacity,  whether  as an  employee,  independent  contractor,
      consultant  or  advisor,  or as a  sales  representative  in any  business
      relating  to  Internet   products  and  services,   and  directly  related
      activities as presently conducted by the Corporation throughout the United
      States  (the  "Territory"),   without  the  permission  of  the  Board  of
      Directors,  which permission shall not be unreasonably withheld or delayed
      or (ii)  induce or actively  attempt to  influence  any other  employee or
      consultant  of the  Corporation  to  terminate  his or her  employment  or
      consultancy with the Corporation. Nothing herein contained shall be deemed
      to prevent  ownership by Executive  (as said term is defined in regulation
      14(A) promulgated  under the Securities  Exchange Act of 1934 as in effect
      on the date hereof),  collectively, of not more than 5% of the outstanding
      capital stock of a corporation listed on a national securities exchange.

            (1)  The  parties  to  this  Agreement   consider  the  restrictions
      contained  herein  reasonable  as to the  duration of the  Non-Competition
      Period and the extent of the  Territory.  However,  if the duration if the
      Non-Competition  Period or the extent of the  Territory  herein  specified
      should be judged unreasonable by any Court or arbitration proceeding,  the
      validity and effect of the remaining  provisions of this  Agreement  shall
      not be affected thereby and, the duration of the Non-

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      Competition  Period  shall be reduced by such number of months  and/or the
      area of the  Territory  shall be reduced such that,  the Territory and the
      Non-Competition  Period shall be deemed  reasonable  so that the foregoing
      covenant not to compete may be enforced.

            (2) Executive agrees and recognizes that in the event of a breach of
      threatened  breach  by  Executive  of the  provisions  of  the  aforegoing
      covenants,  the  Corporation may suffer  irreparable  harm, and that money
      damages may not be an adequate remedy. Therefore, the Corporation shall be
      entitled as a matter of right to specific  performance of the covenants of
      Executive  contained  herein by way of temporary  or permanent  injunctive
      relief  in a  Court  of  competent  jurisdiction.

14.   Termination.  This Agreement and Executive's  employment may be terminated
      in any one of the following ways:

            (a)  Termination of Employment by the  Corporation.  The Corporation
      shall be  entitled,  if  acting at the  direction  of the  Required  Board
      Majority,  to terminate  the  Executive's  employment  at any time with or
      without  Good Cause.  The  Corporation's  termination  of the  Executive's
      employment will be effective on the date the Corporation delivers a notice
      of termination to the Executive  pursuant to this Section 14(a)  (together
      with  any  required  certified  Board  resolution).   If  the  Corporation
      terminates  the  Executive's  employment for Good Cause,  the  Corporation
      shall,  within thirty (30) business days thereafter,  pay the Executive an
      amount equal to the Accrued  Benefits  plus  severance  pay and, when that
      payment  is  made,  the  Corporation  shall  have  no  further  obligation
      hereunder to compensate the

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      Executive.  If  the  Corporation  terminates  the  Executive's  employment
      without Good Cause,  or elects not to renew  Executive's  employment  upon
      expiration  of the  original  term or any renewal  term,  the  Corporation
      shall,  within thirty (30) business days thereafter,  pay the Executive an
      amount equal to the sum of Accrued Benefits,  plus the Severance  Payment,
      and shall continue to provide health insurance benefits for the Executive,
      his spouse and minor children,  if any (on the same terms in effect on the
      Termination  date) for a period of three (3) years  after the  termination
      date.

            (b) Termination of Employment by the Executive.  The Executive shall
      be  entitled  to  terminate  his  Employment,  by  delivery of a notice of
      termination to the Corporation: (1) for Good Reason at any time within one
      hundred  eighty (180) days after the facts or  circumstances  constituting
      that Good Reason first exist and are known to the  Executive,  (ii) in the
      event of his  Disability,  as provided in Section  14(c),  or (iv) without
      Good Reason and other than for  Disability  at any time.  If the Executive
      terminates his Employment for Good Reason,  the  Corporation  shall pay to
      the  Executive in a cash lump sum within five (5) business  days after the
      date the Corporation  receives the Executive's  notice of termination,  an
      amount equal to the sum of Accrued  Benefits plus the  Severance  Payment,
      and shall continue to provide health insurance benefits for the Executive,
      his  spouse  and  minor  children  (on the  same  terms in  effect  on the
      Termination  date) for a period of three (3) years  after the  termination
      date. If the Executive  terminates his Employment  without Good Reason and
      other than for Disability,  the Corporation shall pay to the Executive, in
      a cash lump sum within five (5) business days after the termination  date,
      the Accrued

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      Benefits.

            (c) Termination by Reason of Disability. If the Executive incurs any
      Disability prior to termination of this Agreement, either the Executive or
      the Corporation may terminate the Executive's  Employment effective on the
      date the  Nonterminating  Party receives a notice of termination  from the
      Terminating Party pursuant to this Section 14(c);  provided,  however that
      the Corporation shall,  within five (5) business days thereafter,  pay the
      Executive  an  amount  equal  to the  sum of  Accrued  Benefits  plus  the
      Termination  Payment, and the Corporation shall continue to provide health
      insurance  benefits for the  Executive,  his spouse and minor children (on
      the same  terms in effect on the  Termination  date) for a period of three
      (3) years after the Termination date.

            (d) Termination of Employment by Death.  The Executive's  Employment
      shall terminate automatically at the time of his death. If the Executive's
      Employment  is  terminated  by  reason  of  the  Executive's   death,  the
      Corporation shall pay to the Executive's estate, in a cash lump sum within
      thirty (30) days after the Termination date, an amount equal to the sum of
      the Accrued Benefits plus the Termination  Payment,  and shall continue to
      provide health  insurance  benefits for the  Executive's  spouse and minor
      children  (on the same  terms in  effect  on the  Termination  date) for a
      period of three (3) years after the Termination date.

            (e)  Return  of  Property.   On  termination   of  the   Executive's
      Employment,  however brought about, the Executive (or his representatives)
      shall promptly deliver and return to the Corporation all the Corporation's
      property that is in the possession

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      or under the control of the Executive.

            (f) Stock Options.  Notwithstanding  any provision of this Agreement
      to  the  contrary:  (i)  except  in  the  case  of a  termination  of  the
      Executive's  Employment for Cause, all stock options previously granted to
      the  Executive  under the  Company's  2000 Stock Option Plan, or any other
      applicable  Stock  Option  Plan,  that  have  not been  exercised  and are
      outstanding  as of the  time  immediately  prior to the  Termination  date
      shall,  notwithstanding  any contrary  provision of any  applicable  Stock
      Option Plan, automatically become vested and immediately exercisable,  and
      remain  outstanding  until  exercised  or the  expiration  of their  term,
      whichever  is  earlier;  and  (ii)  in the  case of a  termination  of the
      Executive's  Employment for Cause, all stock options previously granted to
      Executive  under  Incentive  Plans  that have not been  exercised  and are
      outstanding as of the Termination date shall  automatically be terminated,
      unless the Compensation  Committee determines otherwise in its discretion,
      notwithstanding any contrary provision of any applicable Incentive Plan.

            (g) Change in Control of the Corporation.  In the event of a "Change
      in  Control"  (as  defined  below)  of the  Corporation  during  the Term,
      Executive may terminate this Agreement as provided herein.

            Upon  termination of this Agreement for any reason  provided  above,
      Executive  shall be entitled to receive  all  compensation  earned and all
      benefits and reimbursements due through the effective date of termination.
      Additional compensation subsequent to termination, if any, will be due and
      payable  to  Executive  only to the  extent  and in the  manner  expressly
      provided above or in paragraph 5

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      hereof.

            If  termination  of  Executive's   employment   arises  out  of  the
      Corporation's  failure to pay  Executive  on a timely basis the amounts to
      which he is  entitled  under  this  Agreement  or as a result of any other
      breach of this Agreement by the Corporation, the Corporation shall pay all
      amounts and damages to which Executive may be entitled as a result of such
      breach,  including  interest  thereon  and all  reasonable  legal fees and
      expenses  and other  costs  incurred  by  Executive  to enforce his rights
      hereunder.  Further,  none of the  provisions of paragraph 11 hereof shall
      apply in the event this Agreement is terminated as a result of a breach by
      the Corporation.

15.   Change in Control.

            (a) Unless Executive elects to terminate this Agreement  pursuant to
      subparagraph (c) below,  Executive  understands and acknowledges  that the
      Corporation may be merged or consolidated  with or into another entity and
      that such entity shall automatically succeed to the rights and obligations
      of the  Corporation  hereunder or that the Corporation may undergo another
      type of Change in Control.  In the event such a merger of consolidation or
      other  Change in Control is initiated  prior to the end of the Term,  then
      the provisions of this paragraph shall be applicable.

            (b)  In the  event  of a  pending  Change  in  Control  wherein  the
      Corporation  and Executive have not received  written notice at least five
      (5) business days prior to the anticipated closing date of the transaction
      giving  rise to the  Change  in  Control  from the  successor  to all or a
      substantial portion of the Corporation's business and/or

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      assets  that such  successor  is willing  as of the  closing to assume and
      agree to perform  obligations  under this Agreement in the same manner and
      to the same extent  that the  Corporation  is hereby  required to perform,
      then such Change in Control  shall be deemed to be a  termination  of this
      Agreement  by the  Corporation  without Good Cause during the Term and the
      applicable portions herein will apply; however,  under such circumstances,
      the amount of the lump-sum  severance  payment due to  Executive  shall be
      twice  the  amount  of  the  Severance  Payment  and  the  non-competition
      provisions herein shall not apply whatsoever.

            (c) In any Change in Control  situation,  Executive may, at his sole
      discretion,  elect to terminate this Agreement by providing written notice
      to  the  Corporation  at  least  five  (5)  business  days  prior  to  the
      anticipated  closing  of the  transaction  giving  rise to the  Change  in
      Control.  In such case, the Corporation  shall pay to Executive the amount
      of the Severance Payment and the  non-competition  provisions herein shall
      all  apply  for a  period  of one (1)  year  from  the  effective  date of
      termination.

            (d)  For  purposes  of  applying   paragraph  12  hereof  under  the
      circumstances  described  in (b)  and (c)  above,  the  effective  date of
      termination will be the closing date of the transaction giving rise to the
      Change  in  Control  and all  compensation,  reimbursements  and  lump-sum
      payments due Executive must be paid in full by the Corporation at or prior
      to such closing.  Further,  Executive  will be given  sufficient  time and
      opportunity  to elect  whether to  exercise  all or any of his  options to
      purchase  shares  of  common  stock of the  Corporation,  such that he may
      convert the options to

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      shares prior to the closing of the  transaction  giving rise to the Change
      in Control, if he so desires.

            (e) A "Change in Control" shall mean a change in control of a nature
      that would be required to be reported in response to Item 6(e) of Schedule
      14A of Regulation 14A  promulgated  under the  Securities  Exchange Act of
      1934, as amended,  as in effect on the date of this Agreement,  or if Item
      6(c) is no longer in effect,  any regulations  issued by the United States
      Securities and Exchange Commission pursuant to the Securities Exchange Act
      of 1934, as amended, which serve similar purposes;  provided further that,
      without  limitation,  a Change in Control shall be deemed to have occurred
      if and when:

            (i) the following individuals no longer constitute a majority of the
      members of the Board of  Directors of (A) the  individuals  who, as of the
      day after the closing date of the  Corporation's  initial public offering,
      constitute  the  Board of  Directors  of the  Corporation  (the  "Original
      Directors");  (B) the  individuals who thereafter are elected to the Board
      of Directors of the  Corporation  and whose  election,  or nomination  for
      election,  to the Board of Directors of the  Corporation was approved by a
      vote of at least two-thirds (2/3) of the Original  Directors then still in
      office  (such   directors   becoming   "Additional   Original   Directors"
      immediately  following  their  election);  and (c) the individuals who are
      elected to the Board of Directors of the  Corporation  and whose election,
      or nomination for election,  to the Board of Directors of the  Corporation
      was  approved  by a vote of at  least  two-thirds  (2/3)  of the  Original
      Directors and Additional Original Directors then still in office

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      (such directors also becoming "Additional Original Directors"  immediately
      following their election);

            (ii) a tender offer or exchange  offer is made whereby the effect of
      such offer is to take over and control the Corporation,  and if such offer
      is consummated for the equity  securities of the Corporation  representing
      twenty  percent  (20%)  or  more  of  the  combined  voting  power  of the
      Corporation's then outstanding voting securities;

            (iii) the  stockholders of the  Corporation  shall approve a merger,
      consolidation,  recapitalization,  or reorganization of the Corporation, a
      reverse stock split of outstanding voting  securities,  or consummation of
      any such transaction if stockholder  approval is not obtained,  other than
      any such transaction which would result in at least  seventy-five  percent
      (75%) of the total voting power  represented  by the voting  securities of
      the surviving entity outstanding  immediately after such transaction being
      beneficially owned by at least  seventy-five  percent (75%) of the holders
      of outstanding  voting securities of the Corporation  immediately prior to
      the  transaction,  with the voting  power of each such  continuing  holder
      relative to other such continuing holders not substantially altered in the
      transaction; or

            (iv) the  stockholders  of the  Corporation  shall approve a plan of
      complete  liquidation  of the  Corporation or an agreement for the same or
      disposition  by the  Corporation  of all or a  substantial  portion of the
      Corporation's   assets  to  another  person  or  entity  which  is  not  a
      wholly-owned  subsidiary of the Corporation  (i.e., fifty percent (50%) or
      more of the total assets of the Corporation).

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            (f) Sales of the Corporation's  Common Stock  beneficially  owned or
      controlled  by the  Corporation  shall not be  considered  in  determining
      whether a Change in Control has occurred.

            (g) Executive shall be notified in writing by the Corporation at any
      time that the  Corporation or any member of its Board  anticipates  that a
      Change in Control may take place.

            (h) In the event that a Change in Control  occurs and the  aggregate
      amount of any  payments  made to Executive  hereunder,  or pursuant to any
      plan,  program or policy of the Corporation in connection with, on account
      of,  or as a  result  of,  such  Change  in  Control  constitutes  "excess
      parachute  payments" as defined in Section  280G of the  Internal  Revenue
      Code of 1986, as amended (the  "Code"),  subject to the excise tax imposed
      by Section 4999 of the Code, or any successor sections thereof,  Executive
      shall  receive  from the  Corporation,  in addition  to any other  amounts
      payable  under this  Agreement,  a lump sum payment equal to the amount of
      (i) such excise tax, and (ii) the federal and state  income taxes  payable
      by the Executive with respect to any payments made to Executive under this
      subparagraph  (h). Such amount will be due and payable by the  Corporation
      or its successor  within ten (10) days after executive  delivers a written
      request  for  reimbursement  accompanied  by a copy of his  tax  return(s)
      showing   the   excise   tax   actually   incurred   by   Executive.

16.   Indemnification. In the event Executive is made a party to any threatened,
      pending or completed action, suit or proceeding,  whether civil, criminal,
      administrative  or investigative  (other than an action by the Corporation
      against Executive), by reason

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      of the fact that he is or was performing  services  under this  Agreement,
      then the  Corporation  shall  indemnify  Executive  against  all  expenses
      (including  attorney's  fees),  judgments,   fines  and  amounts  paid  in
      settlement, as actually and reasonably incurred by Executive in connection
      therewith  to  the  maximum  extent   permitted  by  applicable  law.  The
      advancement  of  expenses  shall be  mandatory.  In the  event  that  both
      Executive  and the  Corporation  are made a party to the same  third-party
      action,  complaint,  suit or proceeding,  the Corporation agrees to engage
      competent  legal  representation,  and  Executive  agrees  to use the same
      representation, provided that if counsel selected by the Corporation shall
      have a conflict of interest that  prevents such counsel from  representing
      Executive, Executive may engage separate counsel and the Corporation shall
      pay all attorneys' fees of such separate counsel. Further, while Executive
      is expected at all times to use his best efforts to  faithfully  discharge
      his duties under this  Agreement,  Executive  cannot be held liable to the
      Corporation for errors or omissions made in good faith where Executive has
      not  exhibited  gross,  willful and wanton  negligence  and  misconduct or
      performed  criminal  and  fraudulent  acts  which  materially  damage  the
      business of the Corporation.

17.   Effect of Waiver.  The waiver by either party of a breach of any provision
      of this  Agreement  shall not operate or be  construed  as a waiver of any
      subsequent breach thereof.

18.   Notices.  Any notice permitted,  required,  or given hereunder shall be in
      writing and shall be  personally  delivered;  or  delivered by any prepaid
      overnight  courier  delivery  service  then in  general  use;  or  mailed,
      registered or certified mail, return receipt

                                       16
<PAGE>

      requested,  to such other  addresses as may be  designated by notice given
      hereunder.  Delivery shall be deemed made when actually  delivered,  or if
      mailed, three days after delivery to a United States Post Office and/or to
      an office of the Australian Postal Commission.

19.   Assignment.  Executive shall not be entitled to assign his rights,  duties
      or obligations under this Agreement.

20.   Amendments.  The terms and  provisions of this Agreement may be amended or
      modified only by a written instrument  executed by the party to be charged
      by such amendment or modification.

21.   Governing  Law.  The terms and  provisions  herein  contained  and all the
      disputes  or claims  relating  to this  Agreement  shall be  governed  by,
      interpreted  and  construed in  accordance  with the internal  laws of the
      State of New York, without reference to its conflict of laws principles.

22.   Captions.  The  captions  of  the  sections  of  this  Agreement  are  for
      convenience  of reference  only and in no way define,  limit or affect the
      scope or substance of any section of this Agreement.

23.   Merger  and  Severability.  This  Agreement  shall  constitute  the entire
      Agreement  between  the  Corporation  and  Executive  with  respect to the
      subject matter hereof. The invalidity or unenforceability of any provision
      hereof shall in no way affect the validity or  enforceability of any other
      provision.

24.   Counterparts;  Facsimile.  This Agreement may be executed by facsimile and
      in two (2) or more counterparts, each of which shall be deemed an original
      and all of which

                                       17
<PAGE>

      together shall constitute but one and the same instrument.

25.   Definitions

      A.    "Accrued  Benefits"  means  an  amount  equal  to the sum of (a) the
            portion  of the  Base  Salary  payable  through  and  including  the
            Termination  date which has not yet been paid, (b) all  compensation
            previously  deferred  by the  Executive  (together  with any accrued
            interest and earnings  thereon) which has not yet been paid, and (c)
            any accrued but unpaid expense reimbursements and vacation pay.

      B.    Good  Cause.  "Good  Cause,"  shall  mean  any  one or  more  of the
            following: (1) Executive's willful,  material and irreparable breach
            of  this  Agreement;   (2)  Executive's   gross  negligence  in  the
            performance or intentional  nonperformance  (continuing for ten (10)
            days  after  receipt  of  written  notice of need to cure) of any of
            Executive's  material  duties and  responsibilities  hereunder;  (3)
            Executive's willful dishonesty,  fraud or misconduct with respect to
            the  business or affairs of the  Corporation  which  materially  and
            adversely  affects the operations or reputation of the  Corporation;
            (4)  Executive's  conviction  of a felony  crime;  or (5)  confirmed
            positive  illegal  drug  test  result.

      C.    "Good  Reason" for the  Executive's  termination  of his  Employment
            means:  (a) any  violation  hereof in any  material  respect  by the
            Company;  (b)  without  approval  of 5/7 of the Board  either  (1) a
            failure of the Company to continue in effect any  Compensation  Plan
            in which the Executive was participating,

                                       18
<PAGE>

            or (2) the taking of any action by the Company which would adversely
            affect the  Executive's  participation  in or materially  reduce the
            Executive's  benefits under, any such Compensation  Plan; or (c) the
            assignment to the Executive of duties  inconsistent  in any material
            respect  with the  Executive's  then  current  positions  (including
            status,  offices,  titles and  reporting  requirements),  authority,
            duties or  responsibilities or any other action by the Company which
            results  in a material  diminution  in those  positions,  authority,
            duties or responsibilities.

      D.    "Required  Board  Majority"  means  at any  time a  majority  of the
            members of the entire  Board then in office  which shall  include at
            least a majority of the Outside Directors then in office.

      E.    "Severance  Payment"  means at any time an amount equal to three (3)
            times the Executive's Average Annual Compensation during the term of
            this Agreement.

      F.    "Termination  Payment"  means at any time an amount equal to one and
            one-half (1.5) times the  Executive's  Average  Annual  Compensation
            during the term of this Agreement.

      IN WITNESS  WHEREOF,  the parties hereto have affixed their signatures the
day and year first above written.

                                                 Alloy Steel International, Inc.

                                          By:___________________________________

                                       19
<PAGE>

                                                           Name:
                                                           Title:

                                             Gene Kostecki

                                             ___________________________________

                                       20Exhibit 10.5

                              EMPLOYMENT AGREEMENT

      AGREEMENT  made and entered into as of this second day of October 2, 2000,
between  Alloy  Steel   International,   Inc.,  a  Delaware   corporation   (the
"Corporation")  having an address at 42  Mercantile  Way Malaga,  P.O.  Box 3087
Malaga D C 6945,Western Australia and Alan Charles Winduss (the "Executive").

                              W I T N E S S E T H:

      WHEREAS, Executive is presently employed by the Corporation; and

      WHEREAS,  the Corporation and the Executive  desire to set forth the terms
of  Executive's  employment  with the  Corporation,  pursuant  to the  terms and
conditions hereof.

      NOW,  THEREFORE,  in consideration of the covenants and agreements  herein
contained,  the  parties  hereto  agree with each other as  follows:

1.    Term of  Employment.  The  Corporation  agrees to and does  hereby  employ
      Executive,  and Executive  agrees to and does hereby accept  employment by
      the  Corporation,  as the  Chief  Financial  Officer  of the  Corporation,
      subject to the  supervision  and direction of its Board of Directors,  for
      the five (5) year  period  commencing  on October  2, 2000,  and ending at
      midnight on the first day of October, 2005 (the "Term"). The Term shall be
      automatically  renewed on an annual  basis (each such  period,  a "Renewal
      Period")  for  an  additional  year  (the  "Renewal  Term"),  unless  this
      Agreement is  terminated  in writing by the  Executive or the  Corporation
      (the "Notice of  Nonrenewal")  not less than one hundred eighty (180) days
      prior  to  the  expiration  of the  Term  or any  Renewal  Period,  unless
      otherwise terminated

                                       1
<PAGE>

         pursuant to the provisions of this Agreement.

2.    Duties of  Executive.  Executive  shall  devote such time,  attention  and
      energy to the affairs of  Corporation  as shall be reasonably  required to
      perform  his duties  hereunder,  and, in  pursuance  of the  policies  and
      directions of the Board of Directors, Executive shall use his best efforts
      to promote the business and affairs of the Corporation.

3.    Base Compensation.  In consideration of the Executive's  services pursuant
      to this Agreement,  Corporation shall pay to Executive,  during the period
      of Executive's  employment under this Agreement,  (i) a salary at the rate
      of Eighty Thousand Dollars (U.S.$80,000.00) per year for the first year of
      this  Agreement  (the  "Base   Compensation);   and  (ii)  for  each  year
      thereafter,  annual  compensation  shall  be  determined  by the  Board of
      Directors,  but in no event less than  $80,000.00.  The Base  Compensation
      shall  be  payable  in  equal   installments,   in  accordance   with  the
      Corporation's  customary  procedures  for executive  employees  (but in no
      event less  frequently than  semi-monthly),  subject to applicable tax and
      payroll deductions. The Board of Directors of the Corporation may increase
      Executive's Base  Compensation at such time or times and in such amount or
      amounts as it may in its sole discretion determine.

4.    Incentive  Compensation.  (a).  Provided  Executive has duly performed his
      obligations  pursuant  to  this  Agreement,  Executive  will  receive,  as
      additional compensation for the services to be rendered by Executive under
      this Agreement, cash incentive compensation,  the amount of which shall be
      determined by the Board of Directors based on the Executive's  performance
      and contributions to the Corporation's  success.

      (b). Provided Executive's  employment continues during the term hereof and
      he is in good

                                       2
<PAGE>

      standing,  Executive  shall receive  stock  options to purchase  shares in
      accordance with the Corporation's 2000 Stock Option Plan.

5.    Other  Benefits.  During the term of this Agreement the Executive shall be
      entitled to  participate  in any benefit plans adopted by the  Corporation
      for the  general  and  overall  benefit  of all  employees  and/or for key
      executives  of the  Corporation  such  as  health  care,  life  insurance,
      disability,   stock  option  plans,  tax,  legal  and  financial  planning
      services, pension, profit sharing and savings. Executive shall be entitled
      to receive at no cost full family coverage health care insurance.

6.    Vacation. Executive shall be entitled to a fully paid vacation of four (4)
      weeks per calendar year, which vacation shall be scheduled at such time or
      times as the  Corporation  in  consultation  with Executive may reasonably
      determine.

7.    Expenses.  The  Corporation  shall  pay or  reimburse  Executive  for  all
      reasonable and necessary  expenses  incurred by him in connection with his
      duties hereunder,  upon submission by Executive to the Corporation of such
      reasonable  evidence of such expenses as the Corporation  may require.

8.    Insurance.  The  Corporation  may from time to time apply for  policies of
      life,  health and accident  insurance  or  disability  insurance  upon the
      Executive  in such  amounts  as the  Corporation  deems  appropriate.  The
      Executive  agrees to aid the  Corporation  in  procuring  such  insurance,
      including  submitting  to  a  physical  examination,   if  required,   and
      completing  any and all forms required for  application  for any insurance
      policy.

                                       3
<PAGE>

9.    Support. The Executive shall be provided by the Corporation at its expense
      with  office  space,   furnishings  and  facilities,   reserved   parking,
      secretarial  and  administrative  assistance,  supplies and other  support
      equipment  (including  a computer,  mobile  phone,  facsimile  machine and
      photocopier).

10.   No Forced  Relocation.  The  executive  shall not be  required to move his
      principal  place of residence  from the greater Perth,  Western  Australia
      area or to perform  regular  duties that could  reasonably  be expected to
      require either such move against his wish or to spend amounts of time each
      week  outside  the  greater  Perth,   Western  Australia  area  which  are
      unreasonable  in  relation  to  his  duties  and  responsibilities  of the
      Executive  hereunder,  and the Corporation agrees that, if it requests the
      Executive to make such a move and the Executive declines the request,  (i)
      that declination  shall not constitute any basis for a determination  that
      Cause  exists,  and (ii) no animosity  or  prejudice  will be held against
      Executive.

11.   Disclosure of  Information.  The Executive  shall,  during his  employment
      under this Agreement and thereafter,  keep  confidential  and refrain from
      disclosing to any unauthorized  persons all data and information  relating
      to  the   respective   businesses  of  the   Corporation  or  any  of  its
      subsidiaries.

12.   Intellectual Property Rights.

      (a) The Executive  shall promptly  disclose to the Corporation in writing,
      any and all charts, layouts, maps, inventions,  improvements,  techniques,
      markets,  sales and  advertising  plans,  processes,  concepts  and plans,
      whether  or  not   copyrightable  or  patentable,   secret  processes  and
      "know-how," conceived by the Executive during the

                                       4
<PAGE>

      term  of  his  employment  by  the  Corporation  (the   "Executive's  Work
      Product"), whether alone or with others and whether during regular working
      hours and through the use of facilities and property of the Corporation or
      otherwise,   which  directly  relates  to  the  present  business  of  the
      Corporation.  Upon the  Corporation's  request at any time or from time to
      time during the Term of the  Executive's  employment,  the Executive shall
      (i) deliver to the Corporation copies of the Executive's Work Product that
      may be in his  possession or otherwise  available to him; and (ii) execute
      and deliver to the Corporation  such  applications,  assignments and other
      documents  as it may  reasonably  require in order to apply for and obtain
      copyrights or patents in the United States of America and other  countries
      with  respect  to  any  Executive's  Work  Product  that  it  deems  to be
      copyrightable or patentable, and/or otherwise to vest in itself full title
      thereto.

            (b) All documents that pertain to the Corporation, including but not
      limited to the Executive's  Work Product,  shall be the sole and exclusive
      property  of the  Corporation.  Upon the  termination  of the  Executive's
      employment,  all such documents that may be in his possession or otherwise
      available to him or shall  thereafter  come into his possession or control
      shall be promptly  returned to the Corporation  without the necessity of a
      request therefor.

13.   Non-Competition Covenant.

      (a) The Executive  shall not,  during his  employment by the  Corporation,
      engage,  directly or  indirectly,  in any  business  competitive  with the
      business of the Corporation without the consent of the Board of Directors.

                                       5
<PAGE>

      (b) For a period of one (1) year after the  termination of the Executive's
      employment  hereunder  (the  "Non-Competition  Period"),  for  any  reason
      whatsoever,  other than a  termination  by the  Corporation  without  Good
      Cause, the Executive shall not (i) engage,  directly or indirectly,  as an
      officer,  director,  shareholder,  owner, partner,  joint venturer or in a
      managerial  capacity,  whether  as an  employee,  independent  contractor,
      consultant  or  advisor,  or as a  sales  representative  in any  business
      relating  to  Internet   products  and  services,   and  directly  related
      activities as presently conducted by the Corporation throughout the United
      States  (the  "Territory"),   without  the  permission  of  the  Board  of
      Directors,  which permission shall not be unreasonably withheld or delayed
      or (ii)  induce or actively  attempt to  influence  any other  employee or
      consultant  of the  Corporation  to  terminate  his or her  employment  or
      consultancy with the Corporation. Nothing herein contained shall be deemed
      to prevent  ownership by Executive  (as said term is defined in regulation
      14(A) promulgated  under the Securities  Exchange Act of 1934 as in effect
      on the date hereof),  collectively, of not more than 5% of the outstanding
      capital stock of a corporation listed on a national securities exchange.

            (1)  The  parties  to  this  Agreement   consider  the  restrictions
      contained  herein  reasonable  as to the  duration of the  Non-Competition
      Period and the extent of the  Territory.  However,  if the duration if the
      Non-Competition  Period or the extent of the  Territory  herein  specified
      should be judged unreasonable by any Court or arbitration proceeding,  the
      validity and effect of the remaining  provisions of this  Agreement  shall
      not be affected thereby and, the duration of the Non-

                                       6
<PAGE>

      Competition  Period  shall be reduced by such number of months  and/or the
      area of the  Territory  shall be reduced such that,  the Territory and the
      Non-Competition  Period shall be deemed  reasonable  so that the foregoing
      covenant not to compete may be enforced.

            (2) Executive agrees and recognizes that in the event of a breach of
      threatened  breach  by  Executive  of the  provisions  of  the  aforegoing
      covenants,  the  Corporation may suffer  irreparable  harm, and that money
      damages may not be an adequate remedy. Therefore, the Corporation shall be
      entitled as a matter of right to specific  performance of the covenants of
      Executive  contained  herein by way of temporary  or permanent  injunctive
      relief  in a  Court  of  competent  jurisdiction.

14.   Termination.  This Agreement and Executive's  employment may be terminated
      in any one of the following ways:

            (a)  Termination of Employment by the  Corporation.  The Corporation
      shall be  entitled,  if  acting at the  direction  of the  Required  Board
      Majority,  to terminate  the  Executive's  employment  at any time with or
      without  Good Cause.  The  Corporation's  termination  of the  Executive's
      employment will be effective on the date the Corporation delivers a notice
      of termination to the Executive  pursuant to this Section 14(a)  (together
      with  any  required  certified  Board  resolution).   If  the  Corporation
      terminates  the  Executive's  employment for Good Cause,  the  Corporation
      shall,  within thirty (30) business days thereafter,  pay the Executive an
      amount equal to the Accrued  Benefits  plus  severance  pay and, when that
      payment  is  made,  the  Corporation  shall  have  no  further  obligation
      hereunder to compensate the

                                       7
<PAGE>

      Executive.  If  the  Corporation  terminates  the  Executive's  employment
      without Good Cause,  or elects not to renew  Executive's  employment  upon
      expiration  of the  original  term or any renewal  term,  the  Corporation
      shall,  within thirty (30) business days thereafter,  pay the Executive an
      amount equal to the sum of Accrued Benefits,  plus the Severance  Payment,
      and shall continue to provide health insurance benefits for the Executive,
      his spouse and minor children,  if any (on the same terms in effect on the
      Termination  date) for a period of three (3) years  after the  termination
      date.

            (b) Termination of Employment by the Executive.  The Executive shall
      be  entitled  to  terminate  his  Employment,  by  delivery of a notice of
      termination to the Corporation: (1) for Good Reason at any time within one
      hundred  eighty (180) days after the facts or  circumstances  constituting
      that Good Reason first exist and are known to the  Executive,  (ii) in the
      event of his  Disability,  as provided in Section  14(c),  or (iv) without
      Good Reason and other than for  Disability  at any time.  If the Executive
      terminates his Employment for Good Reason,  the  Corporation  shall pay to
      the  Executive in a cash lump sum within five (5) business  days after the
      date the Corporation  receives the Executive's  notice of termination,  an
      amount equal to the sum of Accrued  Benefits plus the  Severance  Payment,
      and shall continue to provide health insurance benefits for the Executive,
      his  spouse  and  minor  children  (on the  same  terms in  effect  on the
      Termination  date) for a period of three (3) years  after the  termination
      date. If the Executive  terminates his Employment  without Good Reason and
      other than for Disability,  the Corporation shall pay to the Executive, in
      a cash lump sum within five (5) business days after the termination  date,
      the Accrued

                                       8
<PAGE>

      Benefits.

            (c) Termination by Reason of Disability. If the Executive incurs any
      Disability prior to termination of this Agreement, either the Executive or
      the Corporation may terminate the Executive's  Employment effective on the
      date the  Nonterminating  Party receives a notice of termination  from the
      Terminating Party pursuant to this Section 14(c);  provided,  however that
      the Corporation shall,  within five (5) business days thereafter,  pay the
      Executive  an  amount  equal  to the  sum of  Accrued  Benefits  plus  the
      Termination  Payment, and the Corporation shall continue to provide health
      insurance  benefits for the  Executive,  his spouse and minor children (on
      the same  terms in effect on the  Termination  date) for a period of three
      (3) years after the Termination date.

            (d) Termination of Employment by Death.  The Executive's  Employment
      shall terminate automatically at the time of his death. If the Executive's
      Employment  is  terminated  by  reason  of  the  Executive's   death,  the
      Corporation shall pay to the Executive's estate, in a cash lump sum within
      thirty (30) days after the Termination date, an amount equal to the sum of
      the Accrued Benefits plus the Termination  Payment,  and shall continue to
      provide health  insurance  benefits for the  Executive's  spouse and minor
      children  (on the same  terms in  effect  on the  Termination  date) for a
      period of three (3) years after the Termination date.

            (e)  Return  of  Property.   On  termination   of  the   Executive's
      Employment,  however brought about, the Executive (or his representatives)
      shall promptly deliver and return to the Corporation all the Corporation's
      property that is in the possession

                                       9
<PAGE>

      or under the control of the Executive.

            (f) Stock Options.  Notwithstanding  any provision of this Agreement
      to  the  contrary:  (i)  except  in  the  case  of a  termination  of  the
      Executive's  Employment for Cause, all stock options previously granted to
      the  Executive  under the  Company's  2000 Stock Option Plan, or any other
      applicable  Stock  Option  Plan,  that  have  not been  exercised  and are
      outstanding  as of the  time  immediately  prior to the  Termination  date
      shall,  notwithstanding  any contrary  provision of any  applicable  Stock
      Option Plan, automatically become vested and immediately exercisable,  and
      remain  outstanding  until  exercised  or the  expiration  of their  term,
      whichever  is  earlier;  and  (ii)  in the  case of a  termination  of the
      Executive's  Employment for Cause, all stock options previously granted to
      Executive  under  Incentive  Plans  that have not been  exercised  and are
      outstanding as of the Termination date shall  automatically be terminated,
      unless the Compensation  Committee determines otherwise in its discretion,
      notwithstanding any contrary provision of any applicable Incentive Plan.

            (g) Change in Control of the Corporation.  In the event of a "Change
      in  Control"  (as  defined  below)  of the  Corporation  during  the Term,
      Executive may terminate this Agreement as provided herein.

            Upon  termination of this Agreement for any reason  provided  above,
      Executive  shall be entitled to receive  all  compensation  earned and all
      benefits and reimbursements due through the effective date of termination.
      Additional compensation subsequent to termination, if any, will be due and
      payable  to  Executive  only to the  extent  and in the  manner  expressly
      provided above or in paragraph 5

                                       10
<PAGE>

      hereof.

            If  termination  of  Executive's   employment   arises  out  of  the
      Corporation's  failure to pay  Executive  on a timely basis the amounts to
      which he is  entitled  under  this  Agreement  or as a result of any other
      breach of this Agreement by the Corporation, the Corporation shall pay all
      amounts and damages to which Executive may be entitled as a result of such
      breach,  including  interest  thereon  and all  reasonable  legal fees and
      expenses  and other  costs  incurred  by  Executive  to enforce his rights
      hereunder.  Further,  none of the  provisions of paragraph 11 hereof shall
      apply in the event this Agreement is terminated as a result of a breach by
      the Corporation.

15.   Change in Control.

            (a) Unless Executive elects to terminate this Agreement  pursuant to
      subparagraph (c) below,  Executive  understands and acknowledges  that the
      Corporation may be merged or consolidated  with or into another entity and
      that such entity shall automatically succeed to the rights and obligations
      of the  Corporation  hereunder or that the Corporation may undergo another
      type of Change in Control.  In the event such a merger of consolidation or
      other  Change in Control is initiated  prior to the end of the Term,  then
      the provisions of this paragraph shall be applicable.

            (b)  In the  event  of a  pending  Change  in  Control  wherein  the
      Corporation  and Executive have not received  written notice at least five
      (5) business days prior to the anticipated closing date of the transaction
      giving  rise to the  Change  in  Control  from the  successor  to all or a
      substantial portion of the Corporation's business and/or

                                       11
<PAGE>

      assets  that such  successor  is willing  as of the  closing to assume and
      agree to perform  obligations  under this Agreement in the same manner and
      to the same extent  that the  Corporation  is hereby  required to perform,
      then such Change in Control  shall be deemed to be a  termination  of this
      Agreement  by the  Corporation  without Good Cause during the Term and the
      applicable portions herein will apply; however,  under such circumstances,
      the amount of the lump-sum  severance  payment due to  Executive  shall be
      twice  the  amount  of  the  Severance  Payment  and  the  non-competition
      provisions herein shall not apply whatsoever.

            (c) In any Change in Control  situation,  Executive may, at his sole
      discretion,  elect to terminate this Agreement by providing written notice
      to  the  Corporation  at  least  five  (5)  business  days  prior  to  the
      anticipated  closing  of the  transaction  giving  rise to the  Change  in
      Control.  In such case, the Corporation  shall pay to Executive the amount
      of the Severance Payment and the  non-competition  provisions herein shall
      all  apply  for a  period  of one (1)  year  from  the  effective  date of
      termination.

            (d)  For  purposes  of  applying   paragraph  12  hereof  under  the
      circumstances  described  in (b)  and (c)  above,  the  effective  date of
      termination will be the closing date of the transaction giving rise to the
      Change  in  Control  and all  compensation,  reimbursements  and  lump-sum
      payments due Executive must be paid in full by the Corporation at or prior
      to such closing.  Further,  Executive  will be given  sufficient  time and
      opportunity  to elect  whether to  exercise  all or any of his  options to
      purchase  shares  of  common  stock of the  Corporation,  such that he may
      convert the options to

                                       12
<PAGE>

      shares prior to the closing of the  transaction  giving rise to the Change
      in Control, if he so desires.

            (e) A "Change in Control" shall mean a change in control of a nature
      that would be required to be reported in response to Item 6(e) of Schedule
      14A of Regulation 14A  promulgated  under the  Securities  Exchange Act of
      1934, as amended,  as in effect on the date of this Agreement,  or if Item
      6(c) is no longer in effect,  any regulations  issued by the United States
      Securities and Exchange Commission pursuant to the Securities Exchange Act
      of 1934, as amended, which serve similar purposes;  provided further that,
      without  limitation,  a Change in Control shall be deemed to have occurred
      if and when:

                  (i) the following  individuals no longer constitute a majority
      of the members of the Board of Directors of (A) the individuals who, as of
      the day  after  the  closing  date  of the  Corporation's  initial  public
      offering,  constitute  the  Board of  Directors  of the  Corporation  (the
      "Original  Directors");  (B) the individuals who thereafter are elected to
      the  Board  of  Directors  of  the  Corporation  and  whose  election,  or
      nomination for election,  to the Board of Directors of the Corporation was
      approved by a vote of at least two-thirds (2/3) of the Original  Directors
      then  still  in  office  (such  directors  becoming  "Additional  Original
      Directors" immediately following their election);  and (c) the individuals
      who are elected to the Board of  Directors  of the  Corporation  and whose
      election,  or nomination  for  election,  to the Board of Directors of the
      Corporation  was  approved by a vote of at least  two-thirds  (2/3) of the
      Original Directors and Additional Original Directors then still in office

                                       13
<PAGE>

      (such directors also becoming "Additional Original Directors"  immediately
      following their election);

                  (ii) a tender  offer or  exchange  offer is made  whereby  the
      effect of such offer is to take over and control the  Corporation,  and if
      such offer is  consummated  for the equity  securities of the  Corporation
      representing  twenty percent (20%) or more of the combined voting power of
      the Corporation's then outstanding voting securities;

                  (iii) the  stockholders  of the  Corporation  shall  approve a
      merger,   consolidation,   recapitalization,   or  reorganization  of  the
      Corporation,  a reverse stock split of outstanding voting  securities,  or
      consummation  of any  such  transaction  if  stockholder  approval  is not
      obtained,  other than any such transaction  which would result in at least
      seventy-five  percent (75%) of the total voting power  represented  by the
      voting  securities of the surviving entity  outstanding  immediately after
      such transaction being beneficially owned by at least seventy-five percent
      (75%) of the holders of outstanding  voting  securities of the Corporation
      immediately  prior to the transaction,  with the voting power of each such
      continuing   holder  relative  to  other  such   continuing   holders  not
      substantially altered in the transaction; or

                  (iv) the stockholders of the Corporation  shall approve a plan
      of complete liquidation of the Corporation or an agreement for the same or
      disposition  by the  Corporation  of all or a  substantial  portion of the
      Corporation's   assets  to  another  person  or  entity  which  is  not  a
      wholly-owned  subsidiary of the Corporation  (i.e., fifty percent (50%) or
      more of the total assets of the Corporation).

                                       14
<PAGE>

            (f) Sales of the Corporation's  Common Stock  beneficially  owned or
      controlled  by the  Corporation  shall not be  considered  in  determining
      whether a Change in Control has occurred.

            (g) Executive shall be notified in writing by the Corporation at any
      time that the  Corporation or any member of its Board  anticipates  that a
      Change in Control may take place.

            (h) In the event that a Change in Control  occurs and the  aggregate
      amount of any  payments  made to Executive  hereunder,  or pursuant to any
      plan,  program or policy of the Corporation in connection with, on account
      of,  or as a  result  of,  such  Change  in  Control  constitutes  "excess
      parachute  payments" as defined in Section  280G of the  Internal  Revenue
      Code of 1986, as amended (the  "Code"),  subject to the excise tax imposed
      by Section 4999 of the Code, or any successor sections thereof,  Executive
      shall  receive  from the  Corporation,  in addition  to any other  amounts
      payable  under this  Agreement,  a lump sum payment equal to the amount of
      (i) such excise tax, and (ii) the federal and state  income taxes  payable
      by the Executive with respect to any payments made to Executive under this
      subparagraph  (h). Such amount will be due and payable by the  Corporation
      or its successor  within ten (10) days after executive  delivers a written
      request  for  reimbursement  accompanied  by a copy of his  tax  return(s)
      showing the excise tax actually incurred by Executive.

16.   Indemnification. In the event Executive is made a party to any threatened,
      pending or completed action, suit or proceeding,  whether civil, criminal,
      administrative  or investigative  (other than an action by the Corporation
      against Executive), by reason

                                       15
<PAGE>

      of the fact that he is or was performing  services  under this  Agreement,
      then the  Corporation  shall  indemnify  Executive  against  all  expenses
      (including  attorney's  fees),  judgments,   fines  and  amounts  paid  in
      settlement, as actually and reasonably incurred by Executive in connection
      therewith  to  the  maximum  extent   permitted  by  applicable  law.  The
      advancement  of  expenses  shall be  mandatory.  In the  event  that  both
      Executive  and the  Corporation  are made a party to the same  third-party
      action,  complaint,  suit or proceeding,  the Corporation agrees to engage
      competent  legal  representation,  and  Executive  agrees  to use the same
      representation, provided that if counsel selected by the Corporation shall
      have a conflict of interest that  prevents such counsel from  representing
      Executive, Executive may engage separate counsel and the Corporation shall
      pay all attorneys' fees of such separate counsel. Further, while Executive
      is expected at all times to use his best efforts to  faithfully  discharge
      his duties under this  Agreement,  Executive  cannot be held liable to the
      Corporation for errors or omissions made in good faith where Executive has
      not  exhibited  gross,  willful and wanton  negligence  and  misconduct or
      performed  criminal  and  fraudulent  acts  which  materially  damage  the
      business of the Corporation.

17.   Effect of Waiver.  The waiver by either party of a breach of any provision
      of this  Agreement  shall not operate or be  construed  as a waiver of any
      subsequent breach thereof.

18.   Notices.  Any notice permitted,  required,  or given hereunder shall be in
      writing and shall be  personally  delivered;  or  delivered by any prepaid
      overnight  courier  delivery  service  then in  general  use;  or  mailed,
      registered or certified mail, return receipt

                                       16
<PAGE>

      requested,  to such other  address as may be  designated  by notice  given
      hereunder.  Delivery shall be deemed made when actually  delivered,  or if
      mailed, three days after delivery to a United States Post Office and/or to
      an office of the Australian Postal Commission.

19.   Assignment.  Executive shall not be entitled to assign his rights,  duties
      or obligations under this Agreement.

20.   Amendments.  The terms and  provisions of this Agreement may be amended or
      modified only by a written instrument  executed by the party to be charged
      by such amendment or modification.

21.   Governing  Law.  The terms and  provisions  herein  contained  and all the
      disputes  or claims  relating  to this  Agreement  shall be  governed  by,
      interpreted  and  construed in  accordance  with the internal  laws of the
      State of New York, without reference to its conflict of laws principles.

22.   Captions.  The  captions  of  the  sections  of  this  Agreement  are  for
      convenience  of reference  only and in no way define,  limit or affect the
      scope or substance of any section of this Agreement.

23.   Merger  and  Severability.  This  Agreement  shall  constitute  the entire
      Agreement  between  the  Corporation  and  Executive  with  respect to the
      subject matter hereof. The invalidity or unenforceability of any provision
      hereof shall in no way affect the validity or  enforceability of any other
      provision.

24.   Counterparts;  Facsimile.  This Agreement may be executed by facsimile and
      in two (2) or more counterparts, each of which shall be deemed an original
      and all of which

                                       17
<PAGE>

      together shall constitute but one and the same instrument.

25.   Definitions

      A.    "Accrued  Benefits"  means  an  amount  equal  to the sum of (a) the
            portion  of the  Base  Salary  payable  through  and  including  the
            Termination  date which has not yet been paid, (b) all  compensation
            previously  deferred  by the  Executive  (together  with any accrued
            interest and earnings  thereon) which has not yet been paid, and (c)
            any accrued but unpaid expense reimbursements and vacation pay.

      B.    Good  Cause.  "Good  Cause,"  shall  mean  any  one or  more  of the
            following: (1) Executive's willful,  material and irreparable breach
            of  this  Agreement;   (2)  Executive's   gross  negligence  in  the
            performance or intentional  nonperformance  (continuing for ten (10)
            days  after  receipt  of  written  notice of need to cure) of any of
            Executive's  material  duties and  responsibilities  hereunder;  (3)
            Executive's willful dishonesty,  fraud or misconduct with respect to
            the  business or affairs of the  Corporation  which  materially  and
            adversely  affects the operations or reputation of the  Corporation;
            (4)  Executive's  conviction  of a felony  crime;  or (5)  confirmed
            positive illegal drug test result.

      C.    "Good  Reason" for the  Executive's  termination  of his  Employment
            means:  (a) any  violation  hereof in any  material  respect  by the
            Company;  (b)  without  approval  of 5/7 of the Board  either  (1) a
            failure of the Company to continue in effect any  Compensation  Plan
            in which the Executive was participating,

                                       18
<PAGE>

            or (2) the taking of any action by the Company which would adversely
            affect the  Executive's  participation  in or materially  reduce the
            Executive's  benefits under, any such Compensation  Plan; or (c) the
            assignment to the Executive of duties  inconsistent  in any material
            respect  with the  Executive's  then  current  positions  (including
            status,  offices,  titles and  reporting  requirements),  authority,
            duties or  responsibilities or any other action by the Company which
            results  in a material  diminution  in those  positions,  authority,
            duties or responsibilities.

      D.    "Required  Board  Majority"  means  at any  time a  majority  of the
            members of the entire  Board then in office  which shall  include at
            least a majority of the Outside Directors then in office.

      E.    "Severance  Payment"  means at any time an amount equal to three (3)
            times the Executive's Average Annual Compensation during the term of
            this Agreement.

      F.    "Termination  Payment"  means at any time an amount equal to one and
            one-half (1.5) times the  Executive's  Average  Annual  Compensation
            during the term of this Agreement.

        IN WITNESS WHEREOF, the parties hereto have affixed their signatures the
day and year first above written.

                                             Alloy Steel International, Inc.

                                      By:_______________________________________

                                       19
<PAGE>

                                                     Name:
                                                     Title:

                                         Alan Charles Winduss

                                         _______________________________________

                                                    19

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