# EXHIBIT 10.11

# FORBEARANCE
AGREEMENT

OLD
NATIONAL BANK, a national banking association (the Bank), OBSIDIAN
LEASING COMPANY, INC., an Indiana corporation with an address of 1ll Monument Circle,
Indianapolis, Indiana, 46204 (the Borrower), OBSIDIAN ENTERPRISES, INC.,
PYRAMID COACH, INC., TIMOTHY S. DURHAM, TERRY WHITESELL, and JULIA WHITESELL(collectively, the Guarantors) (the Borrower and the Guarantors may from
time to time hereinafter be referred to as, the Obsidian Parties) enter into
this Forbearance Agreement (the Agreement) effective as of December 1, 2004.

# RECITALS

A.        
          The Bank and the Obsidian Parties are parties to, among others, the agreements
          and documents as more particularly identified on Exhibit A
          attached hereto (the Schedule of Documents). All of the documents
          referenced on the Schedule of Documents and any other documents, agreements, and
          promissory notes between the Bank and Obsidian Parties, as amended, modified,
          extended, and renewed from time to time, including as amended by this Agreement,
          are referred to collectively as, the Loan Documents.

B.        
          Exhibit B attached hereto and incorporated by reference
          indicates the principal amounts owing to the Bank under the Loan Documents as of
          March 25, 2005 in connection with the Term Loan Note dated October 31, 2002 and
          the Term Loan Note dated October 31, 2002 each executed by the Borrower
          (collectively, the Notes), which amounts do not include costs and
          attorneys fees reimbursable to the Bank pursuant to the Loan Documents,
          obligations for which the Obsidian Parties are liable, and other obligations
          provided for in the Loan Documents (the Obligations).

C.        
          The Obsidian Parties acknowledge that (i) the Obligations are due the Bank
          without setoff, defense, or counterclaim, in law or in equity, of any kind or
          nature whatsoever; and (ii) the Obligations are secured by valid, perfected,
          first priority liens and security interests in favor of the Bank in certain of
          the Obsidian Parties present and future personal property as more
          particularly identified in the Loan Documents (collectively, the
          Collateral.)

D.        
          The Obsidian Parties reaffirm, ratify, and confirm the obligations and duties
          under the Loan Documents.

E.        
          The Obsidian Parties acknowledge that they are in default under the Loan
          Documents for, among other reasons, the defaults under the Loan Documents
          enumerated in Exhibit C attached hereto (the
          Defaults).

F.        
          The Obsidian Parties also acknowledge that based on the Defaults, the Bank has
          the right, without further notice, to take all available legal action to enforce
          its rights under the Loan Documents. Further, if the Bank took such action, the
          Obsidian Parties acknowledge that the Banks actions would be reasonable
          and within the rights and remedies reserved and available to the Bank under the
          Loan Documents.

G.        
          The Obsidian Parties acknowledge that the Bank has duly performed all of its
          obligations under the Loan Documents and that the Bank has no obligation to
          continue to lend to the Obsidian Parties or forbear from enforcing its available
          rights and remedies.

H.        
          The Obsidian Parties acknowledge that the actions taken by the Bank in
          furtherance of the Loan Documents and this Agreement are reasonable and
          appropriate under the circumstances, are within the Banks rights under the
          Loan Documents and applicable law, and do not constitute interference with or
          control over the Obsidian Parties business operations.

I.        
          The Obsidian Parties have requested that the Bank forbear from enforcing its
          rights and remedies under the Loan Documents and applicable law to afford the
          Obsidian Parties an opportunity to reorganize their business affairs.

J.        
          The Bank, as a condition precedent to forbearing from enforcing its rights and
          remedies under the Loan Documents and applicable law, has required certain
          agreements and accommodations as set forth in this Agreement.

K.        
          Subject to the terms and conditions of this Agreement, the Bank has agreed to
          forbear from enforcing its rights and remedies.

L.        
          Upon a default under this Agreement, the Bank will be entitled to immediately
          pursue all available legal remedies against the Obsidian Parties and to obtain a
          judgment therein.

BASED
ON THE FOREGOING RECITALS (which are incorporated as representations, warranties and
covenants of the respective parties, as the case may be), the parties hereto agree as
follows:

# TERMS AND CONDITIONS

1.        
Forbearance. The Bank agrees to forbear from enforcing its rights and remedies
based on the Defaults through 5:00 P.M. (Danville, Illinois time) on April 30,
2005 (the Forbearance Period) subject to the following conditions:

| | (a) | There are no further or additional defaults under the Loan Documents and the
               Obsidian Parties comply with all terms and conditions of this Agreement;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | All payments due under the Loan Documents are timely made.
| | --- | ----------------------------------------------------------

2.        
Defaults. In addition to any other defaults provided for in the Loan
Documents, the following shall constitute a default under this Agreement and
under all of the Loan Documents of which this Agreement is a part:

| | (a) | The Obsidian Parties fail to comply with any terms or conditions in this
               Agreement or the Loan Documents; or
| | --- | ---------------------------------------------------------------------------------------------------------------------------

| | (b) | The Obsidian Parties fail to make future payments under this Agreement to the
               Bank when due as set forth in the Loan Documents.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------

2

3.        
Conditions Precedent. This Agreement shall become and be deemed effective in
accordance with its terms immediately upon the Bank receiving:

| | (a) | Two (2) copies of this Agreement duly executed by the Obsidian Parties and the
               Bank;
| | --- | ---------------------------------------------------------------------------------------------------

| | (b) | The Obsidian Parties shall effect the reissuance of the shares of stock
               currently held under the name of J2 Communications which have been pledged to
               the Bank to secure the Obligations;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Payment of the fees specified in Section 9 hereof; and
| | --- | ------------------------------------------------------

| | (d) | Such other documents and items as the Bank may reasonably request.
| | --- | ------------------------------------------------------------------

4.        
Representations and Warranties of the Obsidian Parties. The Obsidian Parties
hereby represent and warrant, in addition to any other representations and
warranties contained herein, in the Loan Documents or any other document,
writing, or statement delivered or mailed to the Bank or its agent by the
Obsidian Parties, as follows:

| | (a) | This Agreement constitutes a legal, valid, and binding obligation of the
               Obsidian Parties enforceable in accordance with its terms. The Obsidian Parties
               have taken all necessary and appropriate action for the approval of this
               Agreement and the authorization of the execution, delivery, and performance
               thereof.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The Obsidian Parties hereby specifically confirm and ratify the obligations,
               waivers, and consents under each of the Loan Documents.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Except as specifically amended herein, all representations, warranties, and
               other assertions of fact contained in the Loan Documents continue to be true,
               accurate, and complete.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | The Obsidian Parties acknowledge that the definition Loan Documents
               shall include this Agreement and all the documents executed contemporaneously
               herewith.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.        
          Affirmative Covenants. By entering into this Agreement, the Obsidian
          Parties further specifically undertake to comply with the obligations, terms,
          and covenants as contained in this Agreement and the Loan Documents and agree to
          comply therewith as such relate to the credit facilities and accommodations as
          provided to the Obsidian Parties pursuant to the terms of this Agreement.

6.        
          Remedies. Upon the occurrence of a default, the Bank shall have all
          remedies provided in the Loan Documents and/or otherwise available under
          applicable law.

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7.        
          Due Date/No Further Forbearance Implied. THE OBSIDIAN PARTIES
          ACKNOWLEDGE THAT NOTWITHSTANDING ANYTHING IN THE LOAN DOCUMENTS TO THE CONTRARY,
          AND WITHOUT FURTHER DEMAND OR ACTION BY THE BANK, ALL OF THE OBLIGATIONS WILL BE
          DUE AND PAYABLE ON THE EARLIER OF A DEFAULT OR 5:00 P.M. (DANVILLE, ILLINOIS
          TIME) ON APRIL 30, 2005.The Obsidian Parties also acknowledge that the Bank
          has no obligation to extend the term of the Forbearance Period or forbear from
          enforcing its rights and remedies after the Forbearance Period and nothing
          contained herein is intended to be a promise or agreement to extend the term of
          the Forbearance Period beyond April 30, 2005.

8.        
          Release and Covenant Not to Sue. In consideration of the agreements and
          understandings in this Agreement, the Obsidian Parties, their respective
          employees, officers, agents, executors, heirs, successors, and assigns, jointly
          and severally, hereby releases the Bank, its employees, officers, participants,
          agents, affiliates, subsidiaries, successors, and assigns from any claim, right,
          or cause of action which now exists, or hereafter arises from or in any way
          related to facts in existence as of the date hereof, whether known or unknown.
          By way of example and not limitation, the foregoing includes any claims in any
          way related to the Loan Documents and the business relationship with the Bank.

The
Obsidian Parties hereby covenant that they will refrain from commencing any action or suit
or prosecuting any action or suit, in law or in equity, against the Batik, its employees,
officers, agents, participants, affiliates, subsidiaries, successors, and assigns, on
account of any claim, action, or cause of action which now exists or which may hereafter
accrue in the Obsidian Parties favor based upon facts existing as of the date of
this Agreement. In addition to the other liability which shall accrue upon the breach of
this covenant, the breaching party shall be liable to the Bank for all reasonable
attorneys fees and costs incurred by the Bank in the defense of such action or suit.

9.        
          Expenses and Costs. The Obsidian Parties shall be responsible for the
          payment of all fees and out-of-pocket disbursements incurred by the Bank in any
          way arising from or in connection with this Agreement, the Loan Documents,
          and/or the Obligations, including, without limitation, the fees of legal counsel
          for the Bank for the preparation, examination, and approval of documents in
          connection with this Agreement, for the payment of all fees and out-of-pocket
          disbursements incurred by the Bank, including reasonable attorneys fees,
          in any way arising from or in connection with any action taken by the Bank, to
          monitor, advise, enforce, or collect the Obligations or enforce any obligations
          of the Obsidian Parties under this Agreement, or the Loan Documents or any other
          document or agreement arising from or relating to the business relationship
          between the Bank, the Obsidian Parties, or otherwise securing any obligations to
          the Bank, including any actions to lift the automatic stay or to otherwise in
          any way participate in any Bankruptcy, reorganization, or insolvency proceeding
          of the Obsidian Parties and in relation to or in defense of any litigation
          instituted by the Obsidian Parties or any third-party against the Bank arising
          from or relating to the Obligations and/or this Agreement, the Loan Documents,
          or the business relationship between the Obsidian Parties and the Bank,
          including any so-called lender liability actions. All of these
          expenses and fees shall be part of the Obligations. The Bank shall be permitted
          to charge the Obsidian Parties account(s) for such fees, expenses, and
          costs when paid by the Bank.

10.        
          Other Documents. The Obsidian Parties agree to execute any and all
          documents reasonably necessary to carry out the intent of and to implement this
          Agreement.

4

11.        
          Cross Default/Remedies. A default under the terms of this Agreement shall
          be considered a default under each document and agreement comprising the Loan
          Documents and vice versa. If there is a default under this Agreement or any
          document or agreement comprising the Loan Documents or any document executed
          with or referenced in this Agreement, the Bank shall have the right to exercise
          any remedies provided in this Agreement, the Loan Documents, and under
          applicable law and the Forbearance Period shall automatically expire.

12.        
          One General Obligation; Cross Collateral. All loans and advances by the
          Bank to the Obsidian Parties under this Agreement and under all other agreements
          constitute one loan, and all indebtedness and obligations of the Obsidian
          Parties to the Bank under this and under all other agreements, present and
          future, constitute one general obligation secured by the Collateral and security
          held and to be held by the Bank hereunder and by virtue of all other assignments
          and security agreements between the Obsidian Parties and the Bank now and
          hereafter existing. It is expressly understood and agreed that all of the rights
          of the Bank contained in this Agreement shall likewise apply insofar as
          applicable to any modification of or supplement to this Agreement and to any
          other agreements, present and future, between the Bank and the Obsidian Parties.

13.        
          Loan Documents Continue. Except as expressly modified and amended by the
          terms of this Agreement, all of the other terms and conditions of the Loan
          Documents, and documents and instruments executed in connection therewith remain
          in full force and effect and are hereby ratified, confirmed, and approved. If
          there is an express conflict between the terms of this Agreement and the terms
          of the Loan Documents, the terms of this Agreement shall govern and control.

14.        
          Reservation of Rights/No Waivers. Notwithstanding anything to the
          contrary in this Agreement, all of the Banks rights and remedies against
          the Obsidian Parties, the Collateral, and/or any other collateral security
          granted or given to the Bank are expressly reserved, including, without
          limitation, rights and remedies resulting from the Defaults. Likewise, nothing
          herein shall be deemed to constitute a waiver of any Defaults existing as of the
          date hereof.

15.        
          Authority. All parties executing this Agreement in a representative
          capacity warrant that they have authority to execute this Agreement and legally
          bind the entity they represent.

16.        
          Entire Agreement, Etc. This Agreement constitutes the entire
          understanding of the parties and may only be modified or amended by a writing
          signed by the party against whom enforcement is sought. This Agreement is
          governed by Indiana law and may be executed in counterparts, and facsimile
          copies of signatures shall be treated as original signatures for all purposes.
          This Agreement is binding on the Obsidian Parties and their respective heirs,
          representatives, successors, and assigns and shall inure to the benefit of the
          Bank and its successors and assigns.

17.        
          JURY WAIVER. THE OBSIDIAN PARTIES AND THE BANK HEREBY VOLUNTARILY,
          KNOWINGLY, IRREVOCABLY, AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY
          PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED UPON CONTRACT, TORT, OR
          OTHERWISE) BETWEEN OR AMONG THEM ARISING OUT OF OR IN ANY WAY RELATED TO THIS
          AGREEMENT, ANY OTHER LOAN DOCUMENT, OR ANY RELATIONSHIP BETWEEN THE BANK AND THE
          OBSIDIAN PARTIES. THIS PROVISION IS A MATERIAL INDUCEMENT TO THE BANK TO ENTER
          INTO THIS AGREEMENT.

5

18.        
          CONSULTATION WITH COUNSEL. THE OBSIDIAN PARTIES ACKNOWLEDGE THAT (1) THEY
          HAVE BEEN GIVEN THE OPPORTUNITY TO CONSULT WITH COUNSEL AND OTHER ADVISORS OF
          THEIR CHOICE, AND AFTER CONSULTING WITH SUCH COUNSEL AND ADVISORS, KNOWINGLY,
          VOLUNTARILY, AND WITHOUT DURESS, COERCION, UNLAWFUL RESTRAINT, INTIMIDATION, OR
          COMPULSION, ENTER INTO THIS AGREEMENT, BASED UPON SUCH ADVICE AND COUNSEL AND IN
          THE EXERCISE OF THEIR BUSINESS JUDGMENT; (2) THIS AGREEMENT HAS BEEN ENTERED
          INTO IN EXCHANGE FOR GOOD AND VALUABLE CONSIDERATION, RECEIPT OF WHICH THE
          PARTIES HERETO ACKNOWLEDGE; (3) THEY HAVE CAREFULLY AND COMPLETELY READ ALL OF
          THE TERMS AND PROVISIONS OF THIS AGREEMENT AND ARE NOT RELYING ON THE OPINIONS
          OR ADVICE OF THE BANK OR. ITS AGENTS OR REPRESENTATIVES IN ENTERING INTO THIS
          AGREEMENT.

6

Executed
as of the day and year first written above.

|OLD NATIONAL BANK
By:  /s/  Andrew J. Sutherland
       Andrew J. Sutherland, Vice President | By:  /s/  Timothy S. Durham
Timothy S. Durham
|-------------------------------------------------------------------------------------------- | ---------------------------------------------

|OBSIDIAN LEASING COMPANY, INC.
By:  /s/  Timothy S. Durham
Printed:  Timothy S. Durham
Title:  Managing Manager | By:  /s/  Terry Whitesell
Terry Whitesell
|--------------------------------------------------------------------------------------------------------------- | -----------------------------------------

|OBSIDIAN ENTERPRISES, INC.
By:  /s/  Timothy S. Durham
Printed:  Timothy S. Durham
Title:  Chairman and CEO | By:  /s/  Julia Whitesell
Julia Whitesell
|----------------------------------------------------------------------------------------------------------- | -----------------------------------------

|PYRAMID COACH, INC.
By:  /s/  Tim Durham
Printed:  Tim Durham
Title:  President
|-------------------------------------------------------------------------------

7

Exhibit A to Forbearance Agreement

# SECURED CREDIT FACILITIES
PROVIDED TO
THE OBSIDIAN PARTIES
BY
OLD NATIONAL BANK

Effective Date:  October 31, 2002

Document Description

Credit Agreement

Term Loan Note ($3,653,883.09)

Term Loan Note ($588,891.54)

Disbursement Request
and Authorization

Unconditional
Unlimited Continuing Guaranties executed by Guarantors

Commercial Security
Agreement executed by Borrower

Commercial Security Agreement
executed by PCI

Pledge
Agreement executed by OEI regarding outstanding common stock of Borrower,
together with original stock certificates, irrevocable proxy(ies) and stock
power(s).

Officers
Certificate regarding PCI

Officers Certificate
regarding OEI

Officers
Certificate regarding Borrower

Certificates of
Existence regarding Borrower and Entity Guarantors

(a)        
          Delaware Secretary of State (OEI)

(b)        
          Mississippi Secretary of State (Borrower)

(c)        
          Tennessee Secretary of State (PC[)

Certificate of Authority regarding Borrower issued by the Indiana Secretary of State's Office

Certificate of Hazard, Casualty and Liability Insurance and certified copy of
Insurance Policy with Lender Loss Payable Provisions

Pre-Closing UCC, Tax
Lien and Judgment Search Results regarding Borrower

8

(a)        
          Mississippi Secretary of States Office (Borrower)

(b)        
          Tennessee Secretary of States Office (PCI)

File-Stamped UCC
Financing Statements

(a)        
          Mississippi Secretary of States Office (Borrower)

(b)        
          Tennessee Secretary of States Office (PCI)

Opinion of Counsel to
Borrower and Guarantors

Vehicle Titles

Copies of
purchase and conveyance documents executed between Borrower and DW Leasing
Company, LLC

Assignment of Life Insurance Policy as Collateral upon the life of Timothy S.
Durham and copy of life insurance policy

Copies of
Powers of Attorneys executed by Julia Whitesell appointing Timothy S. Durham as
attorney in fact

AMENDMENT NO. 1 TO SECURED CREDIT FACILITIESEffective Date:  December 19, 2002

Amendment No. I to Credit Agreement

Term Loan Note ($173,024.26)

Consent and Confirmation of Guaranty executed by GuarantorsAMENDMENT NO. 2 TO SECURED CREDIT FACILITIESEffective Date:  January 19, 2004

Amendment No. 2 to Credit Agreement

Term Loan Note ($89,892.72)

Consent and Confirmation of Guaranty executed by Guarantors

Certificates of Existence regarding Borrower and Entity Guarantors

9

Exhibit B to Forbearance Agreement

# Outstanding Principal Amount with Accrued Interest and Late Fees

|                                                                             | 
|---------------------------------------------------------------------------- | 
|Term Loan Note ($3,653,883.09) dated October 31, 2002, as of March 25, 2005: | 
|                                                                            
|Term Loan Note ($588,891.54) dated October 31, 2002, as of March 25, 2005:   | 

10

Exhibit C to Forbearance Agreement

# Defaults

1.        
Failure to pay when due all principal and interest payments arising under the
Loan Documents.

2.        
.

3.        
.

11