COMPENSATION AGREEMENT

Reference is made to the  Agreement  and Plan of Merger dated August 7, 2000, by
and among Ebiz Enterprises, Inc., a Nevada corporation ("Ebiz"),  LinuxMall.com,
Inc.,  a Delaware  corporation  ("LMI"),  and Linux Mall  Acquisition,  Inc.,  a
Delaware corporation ("Merger Sub") (the "Merger Agreement").  Capitalized terms
used but not defined  herein  shall have the meanings  designated  in the Merger
Agreement.

Ebiz  acknowledges  that  certain LMI  Employees  and LMI  Consultants  (each as
defined on SCHEDULE A attached hereto) have agreed to receive a portion of their
compensation for services  rendered to LMI as such  compensation is described on
the attached SCHEDULE A  ("Compensation"),  whether such Compensation is accrued
or unaccrued as of the date hereof, in the form of shares of Ebiz Common Stock.

Ebiz hereby agrees that no later than 60 days  following the Closing Date of the
Merger  (the  "Payment  Date"),  it shall issue (i) one (1) share of Ebiz Common
Stock to each LMI Employee for each $1.10 of Compensation actually due and owing
such LMI Employee as of the Payment Date, and (ii) a determined  number ("N") of
shares of Ebiz Common Stock to each LMI  Consultant,  according to the following
formula:

                                      C
                                 N = ---
                                      M

     Where:            N =  Number of shares of Ebiz Common Stock

                       C =  Total dollar value of  Compensation  due and
                              owing such LMI Consultant as of the Payment Date

                       M =  Market value, in dollars, of one (1) share of Ebiz
                              Common Stock as of the Payment Date

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<PAGE>
     IN WITNESS WHEREOF, the undersigned has caused this Compensation  Agreement
to be executed and delivered as of the date indicated below.


Dated October 5, 2000                   EBIZ ENTERPRISES, INC.



                                        By: /s/ Jeffrey I. Rassas
                                           -------------------------------------
                                        Name: Jeffrey I. Rassas
                                        Title Chief Executive Officer


                                        LINUXMALL.COM, INC.


                                        By: /s/ David Shaw
                                           -------------------------------------
                                        Name: David Shaw
                                        Title Chief Executive Officer
<PAGE>
                                   SCHEDULE A

     LMI EMPLOYEES/CONSULTANTS         COMPENSATION DUE AS OF THE PAYMENT DATE
     -------------------------         ---------------------------------------
1.   All employees of LMI as of        15% of the monthly compensation of each
     July 7, 2000 (the                 such employee for the period running
     "LMI Employees").                 from July 7, 2000 until the Payment Date

2.   Revision, Inc. and GD&A (the      Amounts due as of the Payment Date for
     "LMI Consultants")                services rendered by Revision and GD&A,
                                       not to exceed $160,000.