Document:

Exhibit 4.2

                                 PROMISSORY NOTE

                                                                PHOENIX, ARIZONA
$___________                                                    _______ __, 2002

     THIS  NOTE  IS ONE IN A  SERIES  OF  PROMISSORY  NOTES  ("NOTE(S)")  ISSUED
PURSUANT TO THE TERMS OF AN OFFERING OF COLLATERALIZED DEBT INSTRUMENTS AND THAT
CERTAIN SECURITY AGREEMENT AND APPOINTMENT OF AGENT FOR HOLDERS, DATED _________
__, 2002 (THE "SECURITY  AGREEMENT"),  THAT THE PARTIES EXPECT MAY AGGREGATE THE
PRINCIPAL AMOUNT OF  $1,100,000.00.  ALL CAPITALIZED  TERMS HEREIN HAVE THE SAME
MEANING AS STATED OR PROVIDED IN THE SECURITY AGREEMENT.

     FOR VALUE RECEIVED, the undersigned (the "MAKER") hereby promises to pay to
the  order  of   _____________________________________________   ("LENDER"),  at
Phoenix,  Arizona or at such other  place,  or to such other party or parties as
the holder of this Note may from time to time  designate,  the  principal sum of
______________________________  ($___________)  together  with  interest  on the
unpaid  principal  balance  from the date the funds are advanced  (the  "FUNDING
DATE"),  at the rate of six percent (6%) per annum (the "STATED  RATE"),  in the
following  manner:  (1)  six (6)  equal  quarterly  payments  of  interest  only
beginning on May 1, 2002; (2) thereafter,  twelve (12) equal quarterly  payments
of  principal  and  interest  based  upon a seven (7) year  amortization  of the
principal;  and then (3) a final balloon payment of all remaining  principal and
interest  then due on May 1,  2008  (the  "LOAN  MATURITY").  Interest  shall be
calculated on the basis of a 360-day year  consisting  of twelve 30-day  months.
All amounts are payable in lawful  money of the United  States.  Interest  shall
accrue at the Stated Rate beginning on the Funding Date.

1.   SECURITY.

     This Note is secured by collateral pursuant to the Security Agreement and a
UCC-1 Financing  Statement.  Such  instruments and documents,  together with any
other  instruments  and  documents   evidencing  or  securing  the  indebtedness
evidenced by this Note, are referred to herein as the "SECURITY DOCUMENTS."

2.   EVENTS OF DEFAULT AND LENDER'S REMEDIES.

     The occurrence of any one or more of the following  events shall constitute
an "EVENT OF DEFAULT" hereunder:

     (A)  Nonpayment of  principal,  interest or any other amount when due under
this Note;

     (B)  Failure to perform any duty or  obligation  of Maker or to pay any sum
due or otherwise  advanced  under any Security  Document or any other default by
Maker thereunder;
<PAGE>
     (C) The conversion of the Bankruptcy  Case to a case under Chapter 7 of the
Bankruptcy Code;

     (D) The appointment,  at any time during the Bankruptcy Case, of a trustee,
pursuant to 11 U.S.C.ss.1104; or

     (E) The  occurrence  of any of the  Events  of  Default  set  forth  in the
Security Agreement.

     Upon the  occurrence  of an Event of Default  hereunder,  Agent for Lender,
pursuant to the terms and in  accordance  with the  procedures  set forth in the
Security  Agreement,  shall provide to Maker a written  Notice of Default at the
address set forth herein and provide to Maker a period of ten (10) business days
from the date of the Notice of Default in order to cure all defaults  under this
Note and/or any of the other Loan Documents. If any such defaults remain uncured
as of the close of business on the tenth  business day following the date of the
Notice of  Default,  the  Agent for  Lender  may,  pursuant  to the terms and in
accordance with the procedures set forth in the Security Agreement, exercise any
of the rights and remedies contained in the Security Agreement.

     All  payments  on this Note shall be applied in the manner set forth in the
Security Agreement.

3.   TIME OF THE ESSENCE.

     Time is of the essence of this Direct Offering Note.

4.   GOVERNING LAW AND JURISDICTION.

     The enforcement,  performance, discharge, lack of performance and formation
of this Agreement shall be governed by, and construed and enforced in accordance
with,   the  law  of  the  State  of  Arizona,   regardless  of  any  applicable
conflict-of-law rules to the contrary.

     The parties hereby:

          (i)  irrevocably  submit to the  jurisdiction of the Superior Court of
Maricopa  County,  State of Arizona,  or any successor to said court, and to the
jurisdiction of the United States  Bankruptcy Court for the District of Arizona,
or any successor to said court (hereinafter referred to as the "ARIZONA COURTS")
for  purposes  of any suit,  action or other  proceeding  which  relates  to the
transactions contemplated in this Agreement;

          (ii) to the extent permitted by applicable law, waive and agree not to
assert by way of motion,  as a defense or otherwise in any such suit,  action or
proceeding,  any claim  that they are not  subject  to the  jurisdiction  of the
Arizona  Courts;   that  the  suit,  action  or  proceeding  is  brought  in  an
inconvenient  forum;  that the  venue  of the  suit,  action  or  proceeding  is
improper;  or that this Agreement or any transaction provided for herein may not
be enforced in or by the Arizona Courts; and

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<PAGE>
          (iii) agree not to seek, and hereby waive,  any  collateral  review by
any other court,  which may be called upon to enforce the judgment or any of the
Arizona  Courts,  of the merits of any such suit,  action or  proceeding  or the
jurisdiction of said Arizona Court.

     IN WITNESS  WHEREOF,  this Promissory Note has been executed as of the date
first written above.

MAKER:

EBIZ ENTERPRISES, INC.
JONES BUSINESS SYSTEMS, INC.

By
     --------------------------------
     Bruce Parsons
Its: President

STATE OF TEXAS          )
                        ) ss.
COUNTY OF HARRIS        )

     The  foregoing  instrument  was  acknowledged  before me this ______ day of
__________________,  2002, by Bruce Parsons,  the President of EBIZ Enterprises,
Inc., and Jones Business Systems, Inc.

                                        --------------------------------
                                        Notary Public
My Commission Expires:

----------------------

                                       3Exhibit 4.3

                      FIRST AMENDMENT TO SECURITY AGREEMENT
                      AND APPOINTMENT OF AGENT FOR HOLDERS

     This First Amendment to the Security Agreement And Appointment of Agent For
Holders dated January 25, 2002 (the  "SECURITY  AGREEMENT")  by and between Ebiz
Enterprises, Inc., Jones Business Systems, Inc. (collectively,  the "BORROWER"),
First  Financial  Equity  Corporation  ("FFEC") and those lenders to the Company
listed on the  signature  pages to the Security  Agreement  (each a "HOLDER" and
collectively  the  "HOLDERS") is dated and effective as of the ___ day of April,
2002. All terms used, but not otherwise defined herein,  shall have the meanings
ascribed to such terms in the Security Agreement.

                                    RECITALS

     A.   The Canopy Group,  Inc.  ("CANOPY")  holds a properly  perfected first
          priority security interest in all of the assets of JBSI and a properly
          perfected  security interest in all of the assets of EBIZ subject only
          to the prepetition first priority position of Ingram Micro, Inc. FFEC,
          as Agent for the Holders, holds a properly perfected security interest
          in all of  Borrower's  assets.  FFEC and Canopy have  entered  into an
          intercreditor  agreement which addresses various matters regarding the
          seniority of their relative  security  interests and their  respective
          rights to property serving as their collateral.

     B.   Borrower has negotiated with Canopy for a new revolving line of credit
          in  the  initial  amount  of  $500,000,  subject  to  approval  by the
          Bankruptcy  Court, and which may be renewed,  extended or increased as
          agreed to by Canopy and Borrower  (the "NEW  LINE").  The parties have
          determined  that the funding  offered by the New Line is critical  for
          Borrower's financial and business operations.

     C.   To complete the transaction  for the New Line,  Borrower must grant to
          Canopy  a  first  lien   priority   position  in  all  of   Borrower's
          post-petition accounts receivable. Borrower requests that the security
          interest in Borrower's post-petition accounts receivable held by FFEC,
          as Agent for the Holders,  be subordinated to the security interest in
          the  post-petition  accounts  receivable to be granted to Canopy under
          the New Line (the "SUBORDINATION").

     D.   FFEC and Holders have  determined it to be in their best  interests to
          grant the Subordination.

     E.   FFEC  and  Holders  hereby  approve  the   Subordination  and  Holders
          authorize FFEC, as Agent,  to take all necessary  action to effect the
          Subordination.
<PAGE>
                                    AGREEMENT

     NOW THEREFORE,  for and in consideration of the premises and other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the parties hereby agree as follows:

     1. A new Section 1.1 is hereby added to the Security  Agreement  and states
as follows:

               1.1 SUBORDINATION OF SECURITY INTERESTS. Notwithstanding anything
          to the contrary  contained  herein,  the security  interest granted to
          Agent hereunder in all of Borrower's post-petition accounts receivable
          shall be and is hereby  subordinated to the security  interest granted
          to Canopy in all of Borrower's post-petition accounts receivable under
          the New Line.

     2. Except as otherwise  amended hereby,  the Security  Agreement remains in
full force and effect.

     3. This First Amendment may be executed in one or more  counterparts and by
original or facsimile  signature,  each of which will constitute an original and
all of which together will constitute one and the same instrument.

     IN WITNESS  WHEREOF,  this First Amendment has been executed by each of the
parties as of the day and year first above written.

BORROWER:

EBIZ ENTERPRISES, INC.
JONES BUSINESS SYSTEMS, INC.

By
   --------------------------------
     Bruce Parsons
Its: President

AGENT:

FIRST FINANCIAL EQUITY CORP.

By
    -------------------------------

Its:

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HOLDER:

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Print or type Name below:

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