Exhibit 10.3

                PURCHASE OF SUBORDINATED SECURED PROMISSORY NOTE
                      AND SUPPLY AND CONSIGNMENT AGREEMENT

     This agreement to Purchase  Subordinated Secured Promissory Note and Supply
and  Consignment  Agreement  (this  "Agreement") is made thisAlp day of February
2002, by and among SerVaas, Inc., an Indiana corporation ("SerVaas"),  The Bourt
SerVaas Revocable Trust (the "Trust),  U.S. Rubber Reclaiming,  Inc., an Indiana
corporation  ("USRK) and  Obsidian  Enterprises,  Inc.,  a Delaware  corporation
("Obsidian") and D.C. Investments, LLC, an Indiana limited liability company.

                                    RECITALS

     WHEREAS,  SerVaas sold all of the issued and  outstanding  capital stock of
U.S. Rubber Reclaiming, Inc. to USRR Acquisition, Inc. on December 29, 2000; and
thereafter USRR Acquisition,  Inc. and U.S. Rubber Reclaiming,  Inc. merged with
USRR  Acquisition,  Inc.  as the  surviving  corporation;  and  thereafter  USRR
Acquisition,  Inc. changed its name to U.S. Rubber Reclaiming,  Inc. ("USW') the
business corporation that is a party to this Agreement; and

     WHEREAS,  on December  29, 2000,  USRR entered into a certain  Subordinated
Secured  Promissory  Note in the  principal  amount of One Million Seven Hundred
Fifty Thousand and no/100 Dollars ($1,750,000) (the "Note") payable to the order
of SerVaas,  Inc.  with  interest at 14% per annum through March 31, 2001 and at
20% per annurn  thereafter in partial payment of the acquisition  costs of USRR;
and

     WHEREAS,  on December 29, 2000,  SerVaas and USRR entered into that certain
Supply and Consignment Agreement (the "Supply Agreement") wherein SerVaas agreed
to  supply  and USRR  agreed to  purchase  Six  Million  Four  Hundred  Thousand
(6,400,000)  pounds of scrap butyl rubber raw material  inventory  (the "SerVaas
Scrap  Butyl") in equal  monthly  orders of Two Hundred  Sixty Six  Thousand Six
Hundred Sixty-Seven (266,667) pounds each, for a monthly purchase price of Forty
One  Thousand Six Hundred  Sixty Seven  Dollars  ($41,667.00).  The total Supply
Agreement   Purchase   Price  being  One  Million   Eight  and  no/100   Dollars
($1,000,008.00); and

     WHEREAS,  on  December  29,  2000,  SerVaas,  USRR and Bank  One,  Indiana,
National  Association  ("Bank  One")  entered  into that  certain  Subordination
Agreement (the  "Subordination  Agreement")  wherein  SerVaas  subordinated  the
obligations of the Note and Supply  Agreement to the Obligations owed by USRR to
Bank One; and

     WHEREAS,  on June 14,  200 1, USRR and  SerVaas  entered  into a Waiver and
Deferral  Agreement (the "Waiver")  wherein  SerVaas agreed to the suspension of
interest payments on the Note for the months of May, June, July and August,  200
1, which interest  accrued at 14% per annum, and further SerVaas agreed to defer
USRR's  purchases  of SerVaas  Scrap  Butyl for the same 4 month  period of May,
June, July and August 200 1; and
<PAGE>

     WHEREAS,  Obsidian's  predecessor in interest Danzer Corporation ("Danzer")
acquired all of the outstanding  capital stock of USRR (the "USRR Shares") in an
acquisition  that  closed on June 21,  200 1; and  thereafter  on June 29,  2001
pursuant to a Stock Pledge  Agreement  Danzer pledged the USSR Shares to SerVaas
(the "Stock Pledge") in order to secure the USRR obligations  under the Note and
Supply Agreement; and

     WHEREAS,  certain  disagreements  have  risen  between  SerVaas,  USRR  and
Obsidian in respect of the value and  usefulness  of the SerVaas Scrap Butyl and
the condition of the 12 inch extruder  owned and utilized by USRR as of December
29, 2000; and

     WHEREAS,  in May, 2001 Obsidian caused USRR to suspend any further payments
under  either the Note  and/or  the Supply  Agreement  until such  disputes  are
resolved; and

     WHEREAS,  on the 301h day of December,  2001,  SerVaas assigned the Note to
the Trust; and

     WHEREAS, on February 7, 2002 the parties entered into a Term Sheet settling
the disputes between the parties and providing for the purchase of both the Note
and Supply Agreement; and

     WHEREAS,  on February 7, 2002, in consideration of the agreements set forth
in the Tenn Sheet,  SerVaas waived  certain  defaults of USRR under the Note and
Supply Agreement through November 1, 2002; and

     WHEREAS,  the parties to this Agreement desire to compromise and settle the
disputes  that  have  arisen  among  them and in order to settle  such  disputes
Obsidian is willing,  for a  discount,  to purchase  the Note and arrange for an
affiliated Party to purchase the Supply Agreement.

     NOW, THEREFORE, in consideration of the mutual promises made by the Parties
one to the other and other good and valuable consideration the receipt of which
is hereby acknowledged, the Parties hereto hereby agree as follows:

     1.   Note  Purchase.  During the four (4) month  period of the Waiver,  the
          Note  accrued  interest  through  August  31,  2001 in the  amount  of
          Eighty-Two   Thousand  Five  Hundred   Sixty-One  and  64/100  Dollars
          ($82,561.64) and commencing September 1, 2001, through the date hereof
          the Note has accrued  interest at the rate of twenty percent (20%) per
          annum in the amount of One Hundred  Seventy-One  Thousand  Six Hundred
          Forty-Three  and 84/100 Dollars  ($171,643.84).  On or before February
          26, 2002  Obsidian  agrees to purchase and the Trust agrees to sell to
          Obsidian the Note and all interest  earned and accrued thereon for the
          Purchase  Price of Seven Hundred  Thousand  Dollars  ($700,000),  plus
          30,000  shares of Obsidian  Series C Preferred  Stock  Convertible  to
          Obsidian  Common  Stock at 20:1 and  valued for the  purposes  of this
          Agreement at $5.00 per share or $150,000 (the "Note Purchase Price").

     2.   Supply  Agreement.  From January 1, 2001 through April  30,2001,  USRR
          purchased  1,066,668 pounds of SerVaas Scrap Butyl and paid to SerVaas
          the  sum of  $125,001  for  such  SerVaas  Scrap  Butyl.  SerVaas  has
          5,599,999 pounds of SerVaas Scrap Butyl remaining at the USRR facility
          on  consignment  and subject to the Supply  Agreement.  DC Investments
          hereby agrees to purchase the Supply  Agreement by the issuance of its
          unsecured  Promissory  Note to  SerVaas  in the  principal  amount  of
          $700,000  with  interest  at 8% per annum and with a maturity  date of
          March  18,  2003  (the "DC  Investments  Note")  and in  consideration
          therefore,  SerVaas shall assign all its right,  title and interest in
          and to the Supply Agreement to DC Investments, The DC Investments Note
          shall  be  amortized   over  twelve  (12)  months  in  equal   monthly
          installments of $60,767.06 each.
<PAGE>

     3.   Waiver.  Effective with the execution of this Agreement the Waiver and
          Deferral  Agreement and Term Sheet are terminated and merged into this
          Agreement.

     4.   Note and Stock Pledge.  Upon payment of the Note Purchase  Price,  the
          Trust  agrees to promptly  cancel the Stock  Pledge  Agreement  and to
          return the pledged  USRR shares to Obsidian and to assign the Note and
          all accrued interest thereon to Obsidian.

     5.   Subordination.  This Agreement is subject to and conditioned  upon the
          terms  and  conditions  of  the  Subordination  Agreement.   Upon  the
          execution  and  delivery of this  Agreement,  Obsidian  will request a
          consent from Bank One to the transactions  contemplated  herein.  Such
          request  shall  include a request for the  termination  and release of
          SerVaas from the  Subordination  Agreement and also from the terms and
          conditions  of that  certain  Inter-creditor  Agreement by and between
          SerVaas  and Bank One dated  December  29,  2000,  such  releases  and
          terminations  to be  effective  upon  the  Close  of the  transactions
          contemplated herein.

     6.   DC Investments  Note.  SerVaas intends to sell the DC Investments Note
          to a bona fide purchaser for value and in  contemplation  of such sale
          the parties agree as follows:

          (i) in the event  SerVaas  receives a bona fide third  party  offer to
          purchase the DC  Investments  Note then in such event,  DC Investments
          shall have and SerVaas  hereby  grants to DC  Investments  a "right of
          first refusal" to purchase the DC  Investments  Note on the same terms
          and  conditions  as such bona fide third party offer;  upon receipt of
          written  notice of a bona fide offer to  purchase  the DC  Investments
          Note, DC  Investments  will notify SerVaas within five (5) days of its
          exercise of this right of first refusal or such right will  terminate;
          and

          (ii) in the event the bona fide third party  offer to purchase  the DC
          Investments Note is less than the then outstanding  principal  balance
          of the DC Investments  Note, then in such event, DC Investments  shall
          pay the  difference  to  SerVaas  of the bona fide  offer and the then
          outstanding principal balance of the Note up to a maximum differential
          amount of $150,000.

     7.   Mutual Release.  Conditioned upon the satisfactory performance of this
          Agreement  as  contemplated  in  paragraphs  1,2,3  and  4  above,  DC
          Investments,  Obsidian and USRR hereby  release and forever  discharge
          SerVaas and the Trust and SerVaas and the Trust  hereby  release,  and
          forever discharge  Obsidian,  USRR and DC Investments from any and all
          obligations,  claims, loss and/or damage arising from the Note, Supply
          Agreement,   Waiver,   Stock  Pledge,   Subordination   Agreement  and
          Intercreditor Agreement.

     8.   Term and  Termination.  In the event either DC Investments or Obsidian
          are unable to complete its obligations set forth in paragraphs I and 2
          above,  on or  before  February  26,  2002,  then in such  event  this
          Agreement  shall  terminate and all of the terms and conditions of the
          Note and Supply  Agreement  shall be immediately  reinstated,  and all
          accrued interest on the Note shall be immediately due and payable.

     9.   Binding. This Agreement shall be binding upon and inure to the benefit
          of the parties hereto and their respective successors and assigns.

     10.  Governing  Law.  This  Agreement  shall be governed by the laws of the
          State of Indiana, without regard to conflict of laws principles.
<PAGE>

     11.  Counterparts.  This Agreement may be executed by original or facsimile
          signatures,  in  two  or  more  counterparts,   each  of  which  shall
          constitute  an original,  but all of which when taken  together  shall
          constitute but one agreement.

     12.  Miscellaneous.  This  Agreement  constitutes  the entire  Agreement of
          SerVaas,  the Trust, USRR, Obsidian and DC Investments with respect to
          the matters set forth  herein,  captions are for the ease of reference
          only and shall not affect  the  meaning of  relevant  provisions.  The
          meanings of all defined terms used in this Agreement  shall be equally
          applicable to the singular and the plural forms of the terms  defined.
          No amendment or waiver of any  provisions of this  Agreement  shall be
          effective,  unless  the same  shall be in  writing  and  signed by all
          Parties.

     IN WITNESS WHEREOF,  the Parties have executed and delivered this Agreement
on the date first above written.

DC Investments, LLC                     U.S. Rubber Reclaiming, Inc.

By: /s/ Timothy S. Durham                  By: /s/ Timothy S. Durham
   --------------------------              -----------------------------
    Timothy S. Durham                       Timothy S. Durham, Chairman
    Managing Member
                                        Obsidian Enterprises, Inc.


                                        By: /s/ Timothy S. Durham
                                           -----------------------------
                                            Timothy S. Durham, Chairman

The Beurt SerVaas Revocable Trust       SerVaas, Inc.


By: /s/ Beurt SerVaas                   By: /s/ Beurt SerVaas
   --------------------------              -----------------------------
    Beurt SerVaas, Trustee                  Beurt SerVaas, President