Document:

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                                                                     EXHIBIT 4.1

                                  PULITZER INC.
                            2000 STOCK PURCHASE PLAN
                            ------------------------
                         (Effective as of April 1, 2000)

         1. Purpose. The purpose of the Plan is to provide eligible Employees of
certain Designated Subsidiaries of the Company with a convenient way to acquire
shares of the Company's Common Stock through payroll deductions.

         2. Definitions. Wherever used herein, the following terms have the
following meanings:

            (a)      "Account" means the bookkeeping account established in the
name of each Participant to reflect the payroll deductions made on behalf of the
Participant.

            (b)      "Board" means the Board of Directors of the Company.

            (c)      "Code" means the Internal Revenue Code of 1986, as amended.

            (d)      "Committee" means the administrative committee appointed
by the Board to administer the Plan.

            (e)      "Common Stock" means the common stock of the Company, $.01
par value per share.

            (f)      "Company" means Pulitzer Inc., a Delaware corporation, and
any successor thereto.

            (g)      "Compensation" means the base cash compensation paid by
the Company or a Designated Subsidiary to a Participant which is required to be
reported as wages on the Participant's Form W-2, including such additional
amounts which are not includable in gross income by reason of Sections 125,
402(e) or 402(h)(1)(B) of the Code, and excluding any bonuses, overtime pay,
expense allowances and other irregular payments (except commissions).

            (h)      "Designated Subsidiary" means any Subsidiary which has
been designated from time to time by the Board to participate in the Plan
including, without limitation, the Subsidiaries set forth on Schedule I hereto
(as amended from time to time).

            (i)      "Employee" means an individual who performs services for a
Designated Subsidiary in an employer-employee relationship.

            (j)      "Enrollment Date" means the first day of an Offering
Period.

            (k)      "Exercise Date" means the last business day of an Offering
Period.

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            (l)      "Fair Market Value" means the closing sale price per share
of the Common Stock as published by a national securities exchange on which
shares of the Common Stock are traded on such date or, if there is no sale on
such date, on the next preceding date.

            (m)      "Offering Period" means the calendar quarter commencing as
of April 1, 2000, and each calendar quarter thereafter; provided, however, that
the Committee shall have the power to change the duration of Offering Periods
and the commencement dates thereof from time to time.

            (n)      "Participant" means any Employee for whom an Account is
maintained under the Plan.

            (o)      "Subsidiary" means (i) any trade or business, other than a
corporation, which is controlled fifty percent (50%) or more (whether by
ownership of stock, assets or an equivalent ownership interest) by the Company
or any of its Subsidiaries, including, without limitation, a partnership or a
limited liability company, or (ii) any other entity in which the Company or any
of its Subsidiaries has an equity or other ownership interest and which is
approved by the Board as a Subsidiary under the Plan.

         3. Available Shares.  Subject to the provisions of Section 11 hereof,
the maximum number of shares of Common Stock available for issuance pursuant to
the Plan shall not exceed 300,000 shares less the number of shares previously-
issued under the Pulitzer Inc. 1999 Employee Stock Purchase Plan, as amended.
Such shares may be either authorized and unissued or held by the Company in its
treasury.  The Committee may cause the Company to purchase previously-issued
and outstanding shares of Common Stock in order to enable the Company to
satisfy its obligations hereunder.

         4. Administration.  The Plan shall be administered by a committee
appointed by and serving at the pleasure of the Board.  Subject to the
provisions of the Plan, the Committee, acting in its sole and absolute
discretion, shall have full power and authority to interpret the provisions of
the Plan, to change the time covered by an Offering Period, to supervise the
administration of the Plan, and to take such other action as may be necessary or
desirable in order to carry out the provisions of the Plan.  A majority of the
members of the Committee shall constitute a quorum.  The Committee may act by
the vote of a majority of its members present at a meeting at which there is a
quorum or by unanimous written consent.  The decisions of the Committee with
regard to questions of construction, interpretation and administration, shall be
final and conclusive on all persons.  The Committee shall keep a record of its
proceedings and acts and will keep or cause to be kept such books and records as
may be necessary in connection with the proper administration of the Plan.  The
Company shall indemnify and hold harmless each member of the Committee and any
employee or director of the Company or of a Subsidiary to whom any duty or power
relating to the administration or interpretation of the Plan is delegated from
and against any loss, cost, liability (including any sum paid in settlement of a
claim with the approval of the Board), damage and expense (including legal and
other expenses incident thereto) arising out of or incurred in connection with
the Plan, unless and except to the extent attributable to such person's fraud or
wilful misconduct.

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         5. Eligibility and Enrollment. An Employee shall be eligible to become
a Participant in the Plan on the Enrollment Date coincident with or next
following the date he commences employment with a Designated Subsidiary. An
eligible Employee shall become a Participant for an Offering Period by
completing a Plan enrollment form authorizing payroll deductions and filing it
with the Company prior to the Offering Period. Payroll deductions for a
Participant shall commence with the first payroll and shall end with the last
payroll in the Offering Period to which such authorization is applicable, unless
sooner terminated by the Participant in accordance with the provisions hereof.
Notwithstanding anything herein to the contrary, the Committee may, in its sole
discretion, limit the number of shares of Common Stock a Participant may
purchase during any Offering Period or any calendar year.

         6. Payroll Deduction. At the time a Participant enrolls in the Plan, he
or she shall be required elect the amount to be deducted from each paycheck
during the Offering Period(s) covered by the election; provided, however, that
no more than ten percent (10%) of a Participant's Compensation may be withheld
under the Plan on any pay date, and provided further that the Committee, acting
in its discretion, may establish a minimum required amount or percentage of
Compensation which is required to be withheld during an Offering Period. All
payroll deductions made for a Participant shall be credited to the Participant's
Account. Interest shall not accrue on any amounts credited to a Participant's
Account. The rate of a Participant's contribution, once established, shall
remain in effect for all subsequent Offering Periods unless changed by the
Participant in writing at such time and in such manner as the Committee may
prescribe.

         7. Purchase of Shares. On each Exercise Date, the amount credited to a
Participant's Account shall be used to purchase a whole number of shares of
Common Stock, the number of which shall be determined by dividing the amount
credited to the Participant's Account by the purchase price per share. Any
amount remaining in the Participant's Account shall be converted to a fractional
share unless the Committee, acting, in its discretion, determines that
fractional shares shall not be credited to Participants under the Plan, in which
event, subject to the Participant's continuing withdrawal right, such amount
shall be credited to the Participant's Account as of the beginning of the next
Offering Period. Subject to Section 11 of the Plan, the purchase price per share
shall be equal to eighty-five (85%) of the Fair Market Value of a share of
Common Stock on the Exercise Date. If the total number of shares of Common Stock
to be purchased as of an Exercise Date, when aggregated with shares of Common
Stock previously purchased for all Employees under the Plan, exceeds the number
of shares then authorized under the Plan, a pro-rata allocation of the available
shares shall be made among the Participants based upon the amounts in their
respective Accounts as of the Exercise Date.

         8. Discontinuance and Withdrawal of Contributions; Change of Rate of
Payroll Deductions.

                  (a) Discontinuance or Withdrawal. At any time during an
Offering Period, a Participant may notify the Company that the Participant
wishes to discontinue contributions under the Plan. This notice shall be in
writing and shall become effective as soon as practicable following its receipt
by the Company. A Participant may elect to withdraw all, but not less than all,
of the amount of his Account at any time during an Offering Period except on the
Exercise Date with

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respect to that Offering Period. If a withdrawal is made during an Offering
Period, no further contributions will be permitted during that Offering Period
by the withdrawing Participant.

             (b) Withholding Changes. At any time during an Offering
Period, a Participant may increase or decrease the rate of his payroll
deductions by completing or filing with the Company a new enrollment form
authorizing a change in payroll deduction rate. The Committee may, in its
discretion, limit the number of payroll deduction rate changes during any
Offering Period. The change in rate shall be effective as soon as practicable
after the Company's receipt of the new enrollment form.

         9.  Termination of Employment. Any Participant whose employment with a
Designated Subsidiary is terminated for any reason before an Exercise Date shall
thereupon cease being a Participant. The total amount credited to the
Participant's Account during the Offering Period shall be returned to the
Participant or, in the case of a deceased Participant, to the Participant's
beneficiary, as soon as practicable after the Participant's termination of
employment. For purposes of this Section 9, a Participant who its transferred
from one Designated Subsidiary to another or to the Company or any other
Subsidiary of the Company shall be deemed not to have terminated employment.

         10. Rights as a Stockholder. No shares of Common Stock shall be issued
under the Plan until full payment therefor has been made (and/or provided for if
all or a portion of the purchase price is being paid in installments). The
holder of an option shall have no rights as a stockholder with respect to any
shares covered by an option until the date a stock certificate for such shares
is issued to him or her. Except as otherwise specifically provided herein, no
adjustments shall be made for dividends or distributions of other rights for
which the record date is prior to the date such stock certificate is issued.

         11. Capital Changes, Reorganization, Sale.

             (a) Adjustments Upon Changes in Capitalization. The number and
class of shares of Common Stock which may be issued under the Plan, as well as
the number and class of shares of Common Stock and the price per share covered
by each right outstanding under the Plan which has not yet been exercised, shall
be adjusted proportionately or as otherwise appropriate to reflect any increase
or decrease in the number of issued shares of Common Stock resulting from a
split-up or consolidation of shares or any like capital adjustment, or the
payment of a stock dividend, and/or to reflect a change in the character or
class of shares covered by the Plan arising from a readjustment or
recapitalization.

             (b) Cash, Stock or Other Property for Stock. Except as otherwise
provided in this Section, in the event of an Exchange Transaction (as
defined below), each Participant shall be permitted to purchase Common Stock
with the balance of his or her Account immediately prior to such Exchange
Transaction, and any amount credited to a Participant's Account which is not
used to purchase Common Stock before the Exchange Transaction shall be
distributed to the Participant. Notwithstanding the preceding sentence, (1) if,
as part of the Exchange Transaction, the stockholders of the Company receive
capital stock of another corporation ("Exchange Stock") in exchange for their
shares of Common Stock (whether or not such Exchange Stock is the sole
consideration), and

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if the Board, in its sole discretion, so directs, then the rights of all
Participants to purchase shares of Common Stock shall be converted into rights
to purchase shares of Exchange Stock on an economically equivalent basis; and
(2) the Committee, acting in its discretion, may suspend operation of the Plan
as of any date that occurs after a contract is made which, if consummated, would
result in an Exchange Transaction and before the Exchange Transaction is
consummated.

         (c) Definition of Exchange Transaction. For purposes hereof, the term
"Exchange Transaction" means a merger (other than a merger of the Company in
which the holders of Common Stock immediately prior to the merger have the same
proportionate ownership of Common Stock in the surviving corporation immediately
after the merger), consolidation, acquisition of property or stock, separation,
reorganization (other than a mere reincorporation or the creation of a holding
company), liquidation of the Company or any other similar transaction or event
so designated by the Board in its sole discretion, as a result of which the
stockholders of the Company receive cash, stock or other property in exchange
for or in connection with their shares of Common Stock.

         (d) Fractional Shares. In the event of any adjustment in the number of
shares of Common Stock covered by any right pursuant to the provisions hereof,
any fractional shares resulting from such adjustment shall be disregarded and
each such right will cover only the number of full shares of Common Stock
resulting from the adjustment.

         (e) Determination of Board to be Final. All adjustments under this
Section 11 shall be made by the Board, and its determination as to what
adjustments shall be made, and the extent thereof, shall be final, binding and
conclusive.

    12.  Amendment and Termination. The Board may amend or terminate the Plan at
any time; provided that any such amendment shall be subject to the approval of
the Company's stockholders if and to the extent such approval is necessary or
desirable to comply with applicable law or exchange requirements.

    13.  Transferability. The rights of a Participant to purchase Common Stock
under the Plan are not assignable or transferable and may only be exercised
during the Participant's lifetime by the Participant. A Participant may file a
written designation of a beneficiary who is to receive the amount credited to
the Participant's Account in the event of the Participant's death during an
Offering Period. A Participant's beneficiary designation may be changed by the
Participant at any time by written notice. In the event of the death of a
Participant and in the absence of a validly designated beneficiary who is living
at the time of the Participant's death, the Participant's estate shall be deemed
to be his designated beneficiary.

    14.  No Rights Conferred. Nothing contained in the Plan shall be deemed to
give any individual any right to be retained in the service or employ of a
Designated Subsidiaries or to interfere with the right of the Designated
Subsidiary to discharge him at any time.

    15.  Use of Funds. All payroll deductions received or held by the Company
under the Plan may be used by the Company for any corporate purpose, and the
Company shall not be obligated to segregate such payroll deductions.

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    16.  Legal Requirements. The Committee may impose such other conditions
with respect to the purchase of Common Stock hereunder, including, without
limitation, any conditions relating to the application of federal or state
securities laws, as it may deem necessary or advisable.

    17.  Governing Law. The Plan shall be governed by the laws of the State of
Delaware, without regard to its conflict of laws provisions.

    18.   Decisions and Determinations of Committee to be Final. Any decision
or determination made by the Board pursuant to the provisions hereof and, except
to the extent rights or powers under this Plan are reserved specifically to the
discretion of the Board, all decisions and determinations of the Committee are
final, binding and conclusive.

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                                                                   EXHIBIT 10.37

                              FORBEARANCE AGREEMENT

         THIS FORBEARANCE AGREEMENT (this "Agreement") is made and effective as
of the 14th day of February, 2000, by and among the financial institutions
listed on the signature pages hereof (individually, a "Lender" and collectively,
the "Lenders"), Bank of America, National Association, formerly BankAmerica
Business Credit, Inc., as agent for the Lenders (in its capacity as agent, the
"Agent"), and McInnes Steel Company, McInnes International, Inc., Taylor Forge
Company, Erie Bronze & Aluminum Company, American Handling, Inc., Northern Steel
Company, Micafil, Inc. and Eballoy Glass Products Company (individually, a
"Borrower" and collectively, the "Borrowers"). All capitalized terms used herein
but not otherwise defined shall have the meanings ascribed to them in the Loan
Agreement (as hereinafter defined).

                                    RECITALS

         A. Lenders, Agent and Borrowers have entered into that certain Loan and
Security Agreement dated as of February 25, 1999, which Loan and Security
Agreement has been amended by various Amendments dated June 24, 1999, August 5,
1999, September 22, 1999 and January 20, 2000 (as so amended, the "Loan
Agreement").

         B. By this Agreement, Borrowers have acknowledged to Lenders that
Borrowers have breached certain provisions of the Loan Agreement (the
"Forbearance Events of Default", as that term is hereinafter defined) and that
the breaches constitute "Events of Default" under the Loan Agreement.

         C. Borrowers have requested that Lenders: (i) forbear from exercising
their rights and remedies under the Loan Agreement; and (ii) continue making
revolving advances under the Loan Agreement. Lenders have agreed to Borrowers'
requests, but only in accordance with, and to the extent of, the terms and
conditions of this Agreement.

                                    AGREEMENT

         In consideration of the recitals set forth above, the covenants and
agreements hereinafter set forth, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by the parties,
Borrowers and Lenders agree as follows:

         1.     Preambles. The preambles to this Agreement are true and correct
and are fully incorporated herein by this reference with the same force and
effect as though restated herein.

         2.     Defined Terms. To the extent not otherwise defined herein, all
capitalized terms used in this Agreement shall have the respective meanings
ascribed to them in the Loan Agreement.

         3.     Inducement by Borrowers.  To induce Lenders and Agent to enter
into this Agreement:

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                  (a) Compliance with Loan Documents. Each Borrower represents
and warrants that on the date hereof and, after giving effect to this Agreement,
other than the Forbearance Events of Default, that such Borrower is in
compliance with all of the terms and provisions set forth in the Loan Agreement
and the other Loan Documents, and to the best of such Borrower's knowledge, no
Event of Default and no event which, upon notice or lapse of time, or both,
would constitute an Event of Default, has occurred and is continuing. Agent and
Lenders represent and warrant that to the best of their knowledge, none of Agent
and Lenders is aware of any Event of Default under the Loan Agreement or the
Loan Documents as of the date hereof, other than the Forbearance Events of
Default.

                  (b) Representations and Warranties. Each Borrower represents
and warrants that: (i) except for the Forbearance Events of Default, on the date
hereof, the representations and warranties set forth in the Loan Agreement are
true and correct, with the same effect as though such representations and
warranties had been made on the date hereof, except to the extent that such
representations and warranties are limited by their terms to an earlier date;
and (ii) except for the Forbearance Events of Default and to the best of each
Borrower's knowledge, such Borrower is in compliance with all of the terms and
provisions of the Loan Agreement and no Event of Default has occurred and is
continuing.

                  (c) Authority. Each Borrower represents and warrants that it
has full power and authority to enter into this Agreement, and has full power
and authority to incur and perform the obligations provided for under this
Agreement, all of which have been duly authorized by all proper and necessary
action, and that no consent or approval of shareholders or creditors or of any
public authority or regulatory body is required as a condition to the validity
or enforceability of this Agreement.

                  (d) Agreement as Binding Agreement. Each Borrower represents
and warrants that this Agreement constitutes the valid and legally binding
obligation of each Borrower, fully enforceable against such Borrower in
accordance with its terms.

                  (e) No Conflicting Agreements. Each Borrower represents and
warrants that the execution and performance by such Borrower of this Agreement
will not: (i) violate any provision of law, any order of any court or other
agency of government, or the charter or articles of incorporation of such
Borrower; (ii) violate any indenture, contract, agreement or other instrument to
which such Borrower is a party, or by which any of its property is bound, or be
in conflict with, result in a breach of or constitute (with due notice and/or
lapse of time) a default under, any such indenture, contract, agreement or other
instrument; or (iii) result in the creation or imposition of any lien, charge or
encumbrance of any nature whatsoever upon any of the property or assets of such
Borrower, other than in favor of Lenders or Agent.

                  (f) Acknowledgment. Each Borrower acknowledges and agrees that
the following Events of Default under the Loan Agreement (collectively the
"Forbearance Events of Default") have occurred:

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                  (i) Borrowers failed to comply with various provisions of the
Loan Agreement as follows:

                      (A)     Section 8.7, in that Northern is not Solvent as of
the date hereof.

                      (B)     Section 8.18, in that a default has occurred
under the Note and Warrant Purchase Agreement occasioned by Borrower's failure
to make a payment due thereunder as a result of the receipt of notice of the
occurrence of an Event of Default under the Loan Agreement from Lenders dated
February 14, 2000.

                      (C)     Section 8.24, in that losses have occurred as of
the date of, and as reflected in, the most recent Financial Statements delivered
to Lenders, which were dated as of December 31, 1999, which losses may
constitute or qualify as a material adverse change in the business, operations,
or conditions (financial or otherwise) of Borrower.

                      (D)     Section 8.29, in that a default exists under the
Subordinated Debt Loan Documents as referenced in subparagraph (B) above.

                      (E)     Section 9.9, in that Borrowers shut down the
operations of Northern.

                      (F)     Section 9.26, in that Centrum and its Subsidiaries
failed to maintain the Consolidated Adjusted Tangible Net Worth threshold
required in said Section 9.26 as of December 31, 1999.

                      (G)     Section 9.27, in that Centrum and its Subsidiaries
failed to maintain the Fixed Charge Coverage Ratio required in said Section 9.27
as of December 31, 1999.

                      (H)     Section 9.29, in that Borrowers failed to maintain
the Required Availability required in said Section 9.29.

In addition, Borrowers failed to divest the material handling portion of
Borrowers' business prior to January 15, 2000 as Borrowers and Lender had
previously agreed.

         4. Forbearance. In accordance with the terms hereof, Lenders agree
that, notwithstanding the Forbearance Events of Default and until the expiration
of the "Forbearance Period" (as hereinafter defined), Lenders will temporarily
forbear from exercising any rights and remedies under the Loan Documents and
applicable law, and Lenders will continue to make loans to Borrowers in
accordance with and subject to the terms and conditions of the Loan Agreement,
as modified and amended by the terms of this Agreement, as though the
Forbearance Events of Default had not occurred and did not exist. Upon
termination of the Forbearance Period, Lenders' agreement to forbear hereunder
shall be null and void and Lenders shall be free to exercise their rights and
remedies under the Loan Agreement and other Loan Documents and applicable law,
immediately and without further notice. As used herein, the term "Forbearance
Period" means the period

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beginning on the date hereof and continuing until the earliest to occur of: (a)
March 31, 2000; (b) the date of the occurrence of any Event of Default, other
than the Forbearance Events of Default, under the Loan Agreement; (c) the
occurrence of any Event of Default, other than the Forbearance Events of
Default, under any of the Loan Documents; (d) the occurrence of a "Material
Adverse Change" (as that term is hereinafter defined); and (e) failure of
Borrowers to perform, comply with and observe each and every covenant, warranty,
duty and obligation of Borrowers hereunder. As used herein, the term "Material
Adverse Change" means any material adverse change from and after the date hereof
on (a) the financial condition, credit, business, prospects, properties or
operations of the Borrowers and any Subsidiaries taken as a whole, (b) the
ability of the Borrowers or any Subsidiaries, if any, to perform its or their
obligations under the Loan Agreement and the Loan Documents to which it is or
they are a party on a timely basis other than with respect to the Forbearance
Defaults, or (c) the value of the Collateral.

         5. Agreement with Respect to Loans. Notwithstanding any other
provisions expressed or implied to the contrary in the Loan Agreement relating
to the Forbearance Defaults, Lenders agree to continue to make Revolving Loans
to Borrowers subject to all of the other provisions of the Loan Agreement during
the Forbearance Period, provided that (i) the Maximum Revolving Amount shall
mean $14,000,000; (ii) Lenders shall make no new Capital Expenditure Loans and
shall have no obligation to make any new Capital Expenditure Loans; and (iii)
Lenders shall make no new loans under the Acquisition Line and shall have no
obligation to make any new Loans under the Acquisition Line.

         6. No Waiver of Forbearance Events of Default. Nothing in this
Agreement shall be deemed to waive the Forbearance Events of Default, any other
Event of Default, or, except as expressly provided herein, limit or impair
Agent's or Lenders' rights or remedies under the Loan Agreement, the Loan
Documents, or applicable law, all of which are hereby expressly reserved.

         7. Conditions Precedent. This Agreement shall become effective as of
the date hereof upon the satisfaction of each of the following conditions
precedent:

            (a) This Agreement.  Agent shall have received a duly authorized and
executed original counterpart of this Agreement;

            (b) Consents and Reaffirmations.  Agent shall have received an
executed original Consent and Reaffirmation in form and substance acceptable to
Lenders from each of the Guarantors; and

            (c) Forbearance Fee.  Borrowers shall pay to Lenders a Forbearance
Fee of $25,000, which shall be due and payable on the earlier of (i) March 31,
2000, and (ii) the date the Forbearance Period terminates.

         8. Affirmation of Indebtedness; Release of Lenders. Borrowers hereby
agree and acknowledge that (a) as of the end of the day on February 11, 2000,
the outstanding principal balance of (i) the Total Facility was $23,658,886.41;
plus (ii) accrued and unpaid interest, fees, costs, expenses and other amounts
owing to Lenders under the Loan Agreement and other Loan

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<PAGE>   5

Documents; (b) because the Forbearance Events of Default exist, the Default Rate
continues to apply to the Total Facility, including without limitation, the
Aggregate Revolver Outstandings; (c) Agent and Lenders have performed all
obligations and duties owed to Borrowers as of the date hereof; and (d) in
consideration of Lenders' forbearance and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
each Borrower fully and forever remises, releases and discharges and does hereby
fully and forever remise, release and discharge Agent and each Lender and each
of its subsidiary and affiliated corporations, and each and all of its or their
directors, officers, employees, attorneys, accountants, consultants, and other
agents, of and from all manner of actions, cause and causes of action, expenses,
losses, damages, judgments, executions, claims and demands of whatsoever kind or
nature, of law or in equity, whether known or unknown, arising out of or
relating in any manner, cause or thing whatsoever, which such Borrower may have
had, or now has, or which the such Borrower hereafter can, shall or may have,
for or by reason of any manner, cause or thing whatsoever, whenever arising, to
and including the date of this Agreement.

         9. Event of Default. Each Borrower hereby acknowledges and agrees that
a breach by Borrowers of any term, provision, covenant or condition herein set
forth or herein required of Borrowers to be kept or performed, shall constitute
an Event of Default under the Loan Documents.

         10. Costs. Each Borrower shall pay or cause to be paid to Agent and
Lenders all fees and expenses of Agent and Lenders relating to this Agreement
and the transactions contemplated herein, including, without limitation, fees
and expenses of Agent's counsel (including but not limited to attorneys and
paralegal who are employees of Agent) (the "Costs"). Each Borrower hereby agrees
that the Costs shall be deemed added to the Obligations as incurred by Lenders.

         11. No Custom; Section Headings. This Agreement shall not establish a
custom or course of dealing, or waive, limit or condition the rights and
remedies of Lenders under the Loan Agreement or the Loan Documents, all of which
rights and remedies are expressly reserved. The section headings and captions
herein are for convenience of reference only and shall not be deemed to limit,
impair or affect the interpretation and construction of the terms hereof.

         12. Representation by Counsel. Each Borrower hereby represents and
warrants to Agent and Lenders that throughout the negotiations, preparation and
execution of this Agreement and the closing hereunder, such Borrower has been
represented by legal counsel of its own choosing and that this Agreement was
entered into by the free will of such Borrower and pursuant to arm's-length
negotiations.

         13. Full Force and Effect. Except as may be expressly set forth herein
to the contrary, the Loan Documents remain unmodified and all other terms and
conditions of the Loan Documents remain in full force and effect. Each Borrower
hereby reaffirms its obligation to fulfill and comply with each of its
covenants, duties and obligations under the Loan Agreement and each of the other
Loan Documents. Notwithstanding anything to the contrary stated herein, to the
extent that the terms and conditions of this Agreement conflict with the terms
and conditions of the Loan Documents, this Agreement shall control.

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<PAGE>   6

         14. Counterparts.  This Agreement may be signed in counterparts, each
of which shall be deemed an original and all of which shall be deemed to
constitute one agreement.

         15. Merger; Modification. This Agreement embodies the entire agreement
between the parties hereto with respect to the matters addressed herein and
supersedes all prior oral and written and all contemporaneous oral
communications with respect to such matters. This Agreement shall not be
modified or amended or extended except in a writing signed by the parties
hereto.

         16. Further Assurances.  Each Borrower shall execute and/or deliver any
other agreements or documents which Agent or Lenders deem reasonably necessary
to achieve the objectives of this Agreement.

         17. GOVERNING LAW/VENUE. THE LOAN DOCUMENTS SHALL BE DEEMED CONTRACTS
AND INSTRUMENTS MADE UNDER THE LAWS OF THE STATE OF ILLINOIS AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE
OF ILLINOIS AND THE LAWS OF THE UNITED STATES OF AMERICA, EXCEPT WITH RESPECT TO
SPECIFIC LIENS, OR THE PERFECTION THEREOF, EVIDENCED BY LOAN DOCUMENTS COVERING
REAL OR PERSONAL PROPERTY WHICH BY THE LAWS APPLICABLE THERETO ARE REQUIRED TO
BE CONSTRUED UNDER THE LAWS OF ANOTHER JURISDICTION. EACH BORROWER HEREBY
IRREVOCABLY SUBMITS ITSELF TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND
FEDERAL COURTS OF THE STATE OF ILLINOIS AND AGREES AND CONSENTS THAT SERVICE OF
PROCESS MAY BE MADE UPON IT IN ANY LEGAL PROCEEDING RELATING TO THE LOAN
DOCUMENTS OR THE INDEBTEDNESS BY ANY MEANS ALLOWED UNDER ILLINOIS OR FEDERAL
LAW. VENUE FOR ANY LEGAL PROCEEDING MAY BE COOK COUNTY, ILLINOIS OR, IN AGENT'S
SOLE DISCRETION, ANY OTHER VENUE PERMITTED BY APPLICABLE LAW.

         18. WAIVER OF JURY TRIAL. EACH BORROWER, LENDERS AND AGENT EACH HEREBY
WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, CAUSE OF ACTION,
SUIT OR PROCEEDINGS (a) ARISING UNDER THIS AGREEMENT, THE OTHER LOAN DOCUMENTS
OR ANY OTHER INSTRUMENT, DOCUMENT, OR AGREEMENT EXECUTED OR DELIVERED IN
CONNECTION HEREWITH OR (b) IN ANY WAY CONNECTED WITH OR RELATED TO OR INCIDENTAL
TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS
AGREEMENT, OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED
IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER
NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR
OTHERWISE. EACH BORROWER, LENDERS AND AGENT HEREBY AGREE AND CONSENT THAT ANY
SUCH CLAIM, DEMAND, ACTION, CAUSE OF ACTION, SUIT OR PROCEEDING SHALL BE DECIDED
BY A COURT TRIAL, WITHOUT A JURY, AND THAT ANY PARTY MAY FILE AN ORIGINAL
COUNTERPART OR COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

                                       6

<PAGE>   7

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

                                       BORROWERS:

                                       McINNES STEEL COMPANY

                                       By:    /s/ Timothy M. Hunter
                                          --------------------------------------
                                       Name:  Timothy M. Hunter
                                            ------------------------------------
                                       Title: Exec. Vice President CFO
                                             -----------------------------------

                                       McINNES INTERNATIONAL, INC.

                                       By:    /s/ Timothy M. Hunter
                                          --------------------------------------
                                       Name:  Timothy M. Hunter
                                            ------------------------------------
                                       Title: Secretary/Treasurer
                                             -----------------------------------

                                       TAYLOR FORGE COMPANY

                                       By:    /s/ Timothy M. Hunter
                                          --------------------------------------
                                       Name:  Timothy M. Hunter
                                            ------------------------------------
                                       Title: Vice President/Treasurer
                                             -----------------------------------

                                       ERIE BRONZE & ALUMINUM COMPANY

                                       By:    /s/ Timothy M. Hunter
                                          --------------------------------------
                                       Name:  Timothy M. Hunter
                                            ------------------------------------
                                       Title: Secretary/Treasurer
                                             -----------------------------------

                                       AMERICAN HANDLING, INC.

                                       By:    /s/ Timothy M. Hunter
                                          --------------------------------------
                                       Name:  Timothy M. Hunter
                                            ------------------------------------
                                       Title: Vice President/Secretary/Treasurer
                                             -----------------------------------

                                       NORTHERN STEEL COMPANY

                                       By:    /s/ Timothy M. Hunter
                                          --------------------------------------
                                       Name:  Timothy M. Hunter
                                            ------------------------------------
                                       Title: Treasurer/Asst. Secretary
                                             -----------------------------------

<PAGE>   8

                                       MICAFIL, INC.

                                       By:    /s/ Timothy M. Hunter
                                          --------------------------------------
                                       Name:  Timothy M. Hunter
                                            ------------------------------------
                                       Title: Treasurer/Asst. Secretary
                                             -----------------------------------

                                       EBALLOY GLASS PRODUCTS COMPANY

                                       By:    /s/ Timothy M. Hunter
                                          --------------------------------------
                                       Name:  Timothy M. Hunter
                                            ------------------------------------
                                       Title: Secretary/Treasurer
                                             -----------------------------------

                                       AGENT:

                                       BANK OF AMERICA, NATIONAL ASSOCIATION,
                                       as the Agent

                                       By:    /s/ Stephen G. Bernardo
                                          --------------------------------------
                                       Name:  Stephen G. Bernardo
                                            ------------------------------------
                                       Title: Vice President
                                             -----------------------------------

                                       LENDER:

                                       BANK OF AMERICA, NATIONAL ASSOCIATION,
                                       as a Lender

                                       By:    /s/ Stephen G. Bernardo
                                          --------------------------------------
                                       Name:  Stephen G. Bernardo
                                            ------------------------------------
                                       Title: Vice President
                                              ----------------------------------

<PAGE>   9

                           CONSENTS AND REAFFIRMATIONS

         The undersigned hereby consent to the terms and conditions of that
Forbearance Agreement to Loan and Security Agreement dated February 14, 2000,
among the financial institutions listed on the signature pages thereto
(individually, a "Lender" and collectively, the "Lenders"), Bank of America,
National Association, formerly BankAmerica Business Credit, Inc., as agent for
the Lenders(in its capacity as agent, the "Agent"), and McInnes Steel Company,
McInnes International, Inc., Taylor Forge Company, Erie Bronze & Aluminum
Company, American Handling, Inc., Northern Steel Company, Micafil, Inc. and
Eballoy Glass Products Company, and reaffirm their obligations under those
certain Guaranty of Payment Agreements each dated as February 25, 1999
(collectively, the "Corporate Guaranties") made by the undersigned in favor of
the Agent and the Lenders, and acknowledge and agree that the Corporate
Guaranties and all other Loan Documents remain in full force and effect.

Dated as of February 14, 2000.

                                               CENTRUM INDUSTRIES, INC.

                                               By:    /s/ Timothy M. Hunter
                                                  ------------------------------
                                               Name:  Timothy M.Hunter
                                                    ----------------------------

                                               Title: CFO/Secretary/Treasurer
                                                     ---------------------------

                                               McINNES SERVICES, INC.

                                               By:    /s/ Timothy M. Hunter
                                                  ------------------------------
                                               Name:  Timothy M. Hunter
                                                    ----------------------------
                                               Title: Secretary/Treasurer
                                                     ---------------------------

                                               LASALLE EXPLORATION, INC.

                                               By:    /s/ Timothy M. Hunter
                                                  ------------------------------
                                               Name:  Timothy M. Hunter
                                                    ----------------------------
                                               Title: Treasurer/Asst. Secretary
                                                     ---------------------------

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