Document:

Exhibit 10.29

                      AGREEMENT TO PROVIDE LETTER OF CREDIT
                          AND FINANCIAL ACCOMMODATIONS

                                                                PHOENIX, ARIZONA
                                                               NOVEMBER __, 2001

     This  agreement to provide  letter of credit and  financial  accommodations
(the  "Agreement"),  effective  October __, 2001, is made between and among EBIZ
ENTERPRISES,   INC.   ("EBIZ")  and  JONES  BUSINESS   SYSTEMS,   INC.  ("JBSI")
(collectively, "Debtors"), and THE CANOPY GROUP, INC. ("Lender").

                                    RECITALS

     A. On or about  September 7, 2001,  Debtors filed their separate  petitions
for relief under Chapter 11 of the Bankruptcy Code ("Bankruptcy Petitions").

     B. Debtors are operating a business involved in the manufacture and sale of
computers and computer  components (the "Business").  Pursuant to Section 541 of
the Bankruptcy Code, the business,  personal property  (furniture,  fixtures and
equipment)  used  therein,   and  accounts  and  accounts  receivable  generated
therefrom are property of Debtors' estates.

     C.  Debtors'  purpose  and  intent in filing  their  respective  Bankruptcy
Petitions is to accomplish an effective reorganization of their business affairs
and  operations.  Lender has entered into this Agreement in reliance on Debtors'
intent as expressed in this paragraph.

     D. Lender is a secured  creditor of Debtors,  holding a properly  perfected
security  interest in all of Debtors'  personal  property,  by virtue of several
prepetition  loan  arrangements  pursuant  to which  Lender and  Finova  Capital
Corporation  advanced  funds to  Debtors.  The debt to Lender  consists  of four
components:  a term loan (the  "TERM  LOAN"),  a line of  credit  (the  "LINE OF
CREDIT"),  and two secured convertible  promissory notes (the "NOTES"). The Term
Loan, the Line of Credit and the Notes are collectively  referred to hereinafter
as the "CANOPY  AGREEMENTS."  Prior to the filing by Debtors of their Bankruptcy
Petitions,  Lender  purchased  the Term Loan and the Line of Credit from Finova,
and Finova  assigned  its  security  interests  and all other  rights as against
Debtors and their assets to Canopy.

     E. Debtors and Lender entered into a Stipulation  Providing for Use of Cash
Collateral and Adequate  Protection of Secured  Creditor's  Lien dated September
___, 2001 (the "CASH COLLATERAL  AGREEMENT") in which the Debtors  confirmed the
validity of Lender's  security  interest  securing  the Canopy  Agreements,  and
granted to Lender a first position security interest in the accounts  receivable
of the Debtors, if any, generated  post-petition,  and in all inventory acquired
by the Debtors  post-petition  and in the proceeds of same, to secure the Canopy
Agreements  owing by the Debtors to Lender to the extent of the cash  collateral
advanced by Lender to the Debtors pursuant to the Cash Collateral  Agreement and
not repaid by the Debtors, and any additional post-petition advances by Lender.
<PAGE>
     F.  Debtors  have  entered  into  an  agreement   with  Textron   Financial
Corporation ("TEXTRON"), pursuant to which Textron has agreed to provide a floor
financing  facility to Debtors (the  "TEXTRON  FINANCING  FACILITY")  which will
allow Debtors to purchase  required  materials from various vendors on favorable
terms.  The  Textron  Financing  Facility is  conditioned  upon the posting of a
letter of credit in the amount of  $500,000.00  in favor of Textron (the "LETTER
OF CREDIT")  and  approval by the  Bankruptcy  Court of that  facility  and this
Agreement.  Debtors  have no  ability to obtain  such a letter of credit  except
through and from Lender.  Obtaining the Letter of Credit in favor of Textron and
other financial accommodations from Lender is critical to the ability of Debtors
to continue  their  business  operations,  and without  such  financing  Debtors
believe  they  would  likely  not be able  to  operate  successfully  as a going
concern.  Entering  into this  Agreement  is in the  exercise of  Debtors'  best
business judgment and in the best interest of Debtors.

     G. Lender,  as a shareholder of EBIZ and creditor of the Debtors,  believes
it is in  Lender's  best  interest  to issue  the  Letter  of Credit in favor of
Textron so that the Debtors may continue operations.

     In  consideration  of the above  recitals,  the following  representations,
warranties, covenants and conditions, and other good and valuable consideration,
the receipt  and  sufficiency  of which is  acknowledged,  the parties  agree as
follows:

                                   SECTION ONE
              REPRESENTATIONS, WARRANTIES AND AFFIRMATIVE COVENANTS

     Debtors represent, warrant, and covenant that:

          (1) Debtors have been duly incorporated and organized and are existing
as  corporations  in good  standing  under  the  laws of their  jurisdiction  of
incorporation;  Debtors have the power and  authority  to own the property  that
serves as collateral for all of the advances and loans previously made by Lender
to Debtors (the "COLLATERAL") and to enter into and perform this Agreement,  and
any other document or instrument delivered in connection herewith;

          (2) Debtors  have good title to the  Collateral  and are the legal and
beneficial owners thereof; and

          (3) Debtors shall execute, acknowledge,  deliver, record and file such
further  instruments and do such further acts  (including  delivery of financing
statements)  as  Lender  in its  sole and  absolute  judgment  deems  necessary,
desirable or proper to carry out the purposes of this  Agreement  and to subject
to the security  interest  created  hereby any  property  intended to be covered
hereby.

                                   SECTION TWO
                                LETTER OF CREDIT
                          AND FINANCIAL ACCOMMODATIONS

     Until further  notice,  and on the condition that Debtors not be in default
with  respect to any of the terms of this  Agreement  or any of the terms of the
Textron Financing Facility, Lender will arrange to make available to Debtors the
Letter of Credit  issued by a financial  institution  in favor of Textron in the
<PAGE>
amount of Five Hundred Thousand Dollars ($500,000.00),  provided,  however, that
the Debtors will pay any and all costs and expenses associated with the issuance
of the  Letter of Credit,  including,  but not  limited to the annual  letter of
credit fee charged by the  financial  institution,  and Lender will provide such
further  financial  accommodations  as are  reasonably  requested by the Debtors
without  additional  cost or expense to Lender to maintain such Letter of Credit
until the termination of the Textron Financing Facility. The initial term of the
Letter  of  Credit  will  be  one  year,  and  the  Letter  of  Credit  will  be
automatically  renewed  upon  payment by the Debtors of the  required  costs and
fees;  provided,   however,  that  Lender  may  give  notice  to  the  financial
institution  that has issued the Letter of Credit at least sixty (60) days prior
to the  expiration  of the  Letter of Credit,  or any  renewal  thereof,  not to
further  renew the  Letter of  Credit,  if this  Agreement  has  terminated,  as
provided in Section Four below.

                                  SECTION THREE
                                  TERMS OF LOAN

     (1) Upon a default  by  Debtors  under the terms of the  Textron  Financing
Facility and any draw by Textron  upon the Letter of Credit (a "LOC DRAW"),  the
amount of any such LOC Draw  shall  constitute  a further  advance  by Lender to
Debtors and an additional debt due and owing by Debtors to Lender. The amount of
each advance  resulting  from an LOC Draw shall bear  interest  from the date of
that LOC Draw  until  paid at the rate of twelve  percent  (12%) per annum  (the
"INTEREST  RATE").  Any advance resulting from an LOC Draw is due and payable to
Lender  immediately  on the date of the LOC Draw.  All  amounts  are  payable in
lawful money of the United States.

                                  SECTION FOUR
                            TERMINATION OF AGREEMENT

     Lender shall have the option of  terminating  this Agreement and the rights
and obligations of each of the parties hereunder on the occurrence of any of the
following:  (i) the close of business on the tenth (10th) day following  receipt
by Counsel for the Debtors of a Notice of Default  and  Termination  from Lender
describing with  particularity the nature of the Debtors' breach of the terms of
this  Agreement,  if the Debtors fail to cure that breach prior to that date and
time; (ii) further order of the United States  Bankruptcy Court for the District
of Arizona  presiding  over the pending  bankruptcy  cases of the  Debtors  (the
"Bankruptcy  Court");  (iii) confirmation of a plan of reorganization in both of
the Debtors' pending bankruptcy cases; (iv) the date of the entry of an order by
the Bankruptcy Court converting either of the Debtors' pending  bankruptcy cases
to a case under Chapter 7 of the Bankruptcy Code; (v) dismissal of either of the
Debtors' pending  bankruptcy  cases;  (vi) failure of the Debtors to obtain from
the Bankruptcy Court  confirmation of a plan of  reorganization  proposed by the
Debtors in either of the Debtors' pending  bankruptcy cases within the period in
which the Debtors have the exclusive right to file a plan of  reorganization  as
provided in Section 1121(c)(2) and (3) and any period of extension as ordered by
the Bankruptcy Court; or (vii)  termination of the Textron  Financing  Facility.
Notwithstanding  the  foregoing,  the Debtors'  obligation  to repay any advance
resulting  from an LOC  Draw  on the  terms  provided  herein  and the  Debtors'
agreement not to make any additional  purchases or pay any  additional  expenses
utilizing  credit  extended  pursuant to the Textron  Financing  Facility in the
event of  termination  of this  Agreement  as  provided  below will  survive any
termination of this Agreement. In the event that this Agreement is terminated at
the option of Lender pursuant to this Section,  the Debtors agree that they will
make no further purchase and they will pay no further expenses  utilizing credit
extended pursuant to the Textron Financing Facility.
<PAGE>
                                  SECTION FIVE
                               SECURITY FOR LOANS

     The Debtors  hereby  grant to Lender a security  interest  in the  accounts
receivable of the Debtors, if any, generated post-petition, and in all inventory
acquired by the Debtors post-petition and in the proceeds of same, and all other
personal  property of the Debtors  acquired  post-petition  (including,  but not
limited to goods,  general  intangibles,  and  fixtures)  to secure any  advance
resulting from an LOC Draw.

                                   SECTION SIX
                           OPTION TO CONVERT TO EQUITY

     The Debtors and Lender  hereby agree that Lender  shall have the right,  at
Lender's  option,  at any time prior to or on the effective  date of the plan of
reorganization to be proposed by the Debtors (the "Effective  Date"), to convert
$1,500,000 of the indebtedness  owing from the Debtors to Lender pursuant to the
Canopy Agreements  ("Canopy  Pre-Petition  Debt") into equity of the reorganized
Debtors as of the Effective Date.  $500,000 of the Canopy  Pre-Petition Debt may
be  converted  at  the  price  per  share  at  which  other  parties   advancing
post-petition and pre-confirmation debt may convert such debt into equity of the
reorganized  Debtors  (Textron  will not be given that  option).  The  remaining
$1,000,000 of the Canopy  Pre-Petition  Debt may be converted into equity in the
reorganized  Debtors  pursuant to the confirmed  plan of  reorganization  of the
Debtors  at  the  lowest   price  per  share   provided  in  any  such  plan  of
reorganization  for any shares of stock or  warrants to be issued to any holders
of prepetition claims or equity security interests. The Debtors agree to include
Lender's  option as provided in this  Section Six in any plan of  reorganization
they may propose.

                                  SECTION SEVEN
                           AMENDMENT AND MODIFICATION

     This  Agreement  may not be amended,  modified  or  changed,  nor shall any
waiver of any  provision  hereof be  effective,  except only by an instrument in
writing  and  signed  by the  party  against  whom  enforcement  of any  waiver,
amendment,  change, modification or discharge is sought; provided, however, that
this paragraph shall in no way be a limitation on the provisions of the consents
and waivers set forth above.

                                  SECTION EIGHT
                  SEVERABILITY, ENFORCEABILITY AND CONSTRUCTION

     Each provision of this  Agreement is intended to be severable.  Debtors and
Lender further intend and believe that each provision in this Agreement complies
with all applicable local, state and federal laws and court decisions.  However,
if any provision or  provisions in this  Agreement is or are found by a court of
law to be in  violation  of an  applicable  local,  state or federal  ordinance,
statute, law, administrative or judicial decision, or public policy, and if such
court  should  declare  such  portion or  provision(s)  of this  Agreement to be
illegal,  invalid,  unlawful,  void or unenforceable as written,  then it is the
intent of Debtors and Lender that such portion, provision(s) shall be given full
<PAGE>
force and effect to the fullest  possible extent that they are legal,  valid and
enforceable,  that the remainder of this Agreement shall be construed as if such
illegal, invalid, unlawful, void or unenforceable portion,  provision(s) are not
contained herein, and that the rights,  obligations and interests of Debtors and
Lender under the remainder of this  Agreement  shall  continue in full force and
effect.

                                  SECTION NINE
                               TIME OF THE ESSENCE

     Time is of the essence of this Agreement.

                                   SECTION TEN
                      GOVERNING LAW, JURISDICTION AND VENUE

     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 Utah, regardless of any applicable conflict-of-law
rules to the contrary.

     Debtors and Lender also hereby:

          (A)  irrevocably  submit to the  jurisdiction  of the  Third  Judicial
District  Court in and for Salt Lake County,  State of Utah, or any successor to
said court,  and to the jurisdiction of the United States District Court for the
District of Utah, or any successor to said court (hereinafter referred to as the
"UTAH  COURTS")  for  purposes  of any suit,  action or other  proceeding  which
relates to the transactions contemplated in this Agreement;

          (B) 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 personally  subject to the jurisdiction
of the Utah  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 Utah Courts; and

          (C) agree not to seek, and hereby waive, any collateral  review by any
other court with the exception of any timely filed  appeal,  which may be called
upon to enforce  the  judgment or any of the Utah  Courts,  of the merits of any
such suit, action or proceeding or the jurisdiction of said Utah Court.

                                 SECTION ELEVEN
                               ADDITIONAL ACTIONS

     Each party  hereto  agrees to do all acts and things and to make,  execute,
and deliver such written instruments and documents as shall from time to time be
reasonably required to carry out the terms and provisions of this Agreement.
<PAGE>
                                 SECTION TWELVE
                                 ATTORNEYS' FEES

     In the  event  of any  claim,  controversy  or  dispute  arising  out of or
relating to this Agreement, or the breach thereof, the prevailing party shall be
entitled to recover  reasonable  attorneys' fees incurred in connection with any
arbitration or court proceeding set by the court sitting without a jury.

                                SECTION THIRTEEN
                               REMEDIES CUMULATIVE

     The remedies of the parties  hereto under this Agreement are cumulative and
shall not  exclude  any  other  remedies  to which  any  party  may be  lawfully
entitled.

                                SECTION FOURTEEN
                               COMPUTATION OF TIME

     Whenever the last day for the exercise of any privilege or discharge of any
duty hereunder shall fall upon Saturday,  Sunday or any public or legal holiday,
whether  under  federal or state law,  the party  having such  privilege or duty
shall  have  until  5:00 p.m.  (Mountain  time) on the next  succeeding  regular
business day to exercise such right or to discharge such duty.

                                 SECTION FIFTEEN
                                    AUTHORITY

     Any  individual  signing below on behalf of a  corporation,  partnership or
other entity hereby  personally  represents that he or she has full authority to
bind the party or parties on whose  behalf he or she is signing  subject only to
Bankruptcy Court approval.

                                 SECTION SIXTEEN
                                ENTIRE AGREEMENT

     This Agreement,  including the exhibits and schedules hereto,  contains the
entire  understanding and agreement among the parties hereto with respect to the
subject matter hereof,  and supersedes all prior agreements and  understandings,
express or implied,  oral or written,  among the  parties  with  respect to such
subject matter.  The express terms of this Agreement shall control and supersede
any course of  performance  or usage of the trade  inconsistent  with any of the
terms hereof.  Each of the exhibits and schedules hereto is incorporated  herein
by this reference and constitutes a part of this Agreement.

                                SECTION SEVENTEEN
                                   TERMINOLOGY

     All  captions,  headings  or titles in the  paragraphs  or sections of this
Agreement  are  inserted  for  convenience  of  reference  only  and  shall  not
constitute  a part  of  this  Agreement  or a  limitation  of the  scope  of the
particular  paragraph or section to which they apply. All personal pronouns used
in this Agreement,  whether used in the masculine,  feminine,  or neuter gender,
<PAGE>
shall,  where  appropriate,  include all other  genders and the  singular  shall
include the plural and vice versa.

                                SECTION EIGHTEEN
                                     NOTICES

     All  communications  or notices required or permitted to be given or served
under this  Agreement  shall be in writing and shall be deemed to have been duly
given or made if: (a) delivered in person or by courier (e.g., Federal Express);
(b)  deposited  in the United  States  mail,  postage  prepaid,  for  mailing by
certified or registered mail, return receipt requested; or (c) sent by facsimile
and  addressed to the intended  recipient  at the address  and/or the  facsimile
number set forth below such party's signature at the end of this Agreement.  All
communications  and notices  shall be  effective  upon  delivery in person or by
courier  three (3) days after being  deposited in the United  States mail or two
(2) business  hours after being sent by  facsimile.  Any party may change his or
her address and/or facsimile number by giving notice, in writing, stating his or
her new address  and/or  facsimile  number,  to all of the other  parties in the
foregoing  manner.  Copies  of all  notices  to  Debtors  shall  also be sent to
Christopher R. Kaup,  Esq.,  Tiffany & Bosco,  P.A.,  1850 North Central,  Fifth
Floor, Phoenix, Arizona 85004, facsimile: 602-255-0103. Copies of all notices to
Lender shall also be sent to R. David Grant, Esq., Parsons Behle & Latimer,  201
South Main Street,  Suite 1800, P.O. Box 45898, Salt Lake City, Utah 84145-0898,
facsimile: 801-536-6111.

                                SECTION NINETEEN
                             SUCCESSORS AND ASSIGNS

     This  Agreement  shall be  binding  upon and  inure to the  benefit  of the
parties hereto and their respective assigns, legal  representatives,  executors,
heirs and  successors,  provided,  however,  that no party hereto shall have the
right to assign any right  hereunder or delegate any  obligation  hereunder,  in
whole or in part, without the prior written consent of the other parties hereto,
and any attempt to do so shall be void.

                                 SECTION TWENTY
                                  COUNTERPARTS

     This  Agreement  may be executed in two (2) or more  counterparts,  each of
which shall be deemed to be an  original  as against  any party whose  signature
appears  thereon,  and all of which together  shall  constitute one and the same
agreement.  This Agreement  shall become  binding when one or more  counterparts
have been  signed  by each of the  parties  hereto  and  delivered  to the other
parties hereto.
<PAGE>
     IN WITNESS  WHEREOF,  this Agreement has been executed as of the date first
written above.

                                   LENDER:
                                   THE CANOPY GROUP, INC.

                                   By: /s/ Ralph Yarro
                                       -----------------------------------------
                                       Its President

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

                                       -----------------------------------------
                                        (Address)

STATE OF UTAH      )
                   ) ss.
COUNTY OF UTAH     )

     The  foregoing  instrument  was  acknowledged  before  me this  ____ day of
September,  2001, by  __________________________,  President of The Canopy Group
Inc.

                                        ----------------------------------------
                                        Notary Public

My Commission Expires:

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

                                   DEBTORS:
                                   EBIZ ENTERPRISES, INC.
                                   JONES BUSINESS SYSTEMS, INC.

                                   By: /s/ Bruce A. Parsons
                                       -----------------------------------------
                                       Bruce Parsons
                                       President of JBSI
                                       CEO of EBIZ
                                       10225 East Via Linda, Suite 300
                                       Scottsdale, Arizona  85258-5314

STATE OF ARIZONA     )
                     ) ss.
COUNTY OF MARICOPA   )

     The  foregoing  instrument  was  acknowledged  before  me this  ____ day of
September,  2001 by Bruce Parsons, CEO of EBIZ Enterprises,  Inc., and President
of Jones Business Systems, Inc.

                                        ----------------------------------------
                                        Notary Public

My Commission Expires:

-----------------------Exhibit 10.30

                                December 12, 2001

                          FINANCIAL ADVISORY AGREEMENT

Mr. Bruce Parsons
EBIZ ENTERPRISES, INC.
Jones Business Systems, Inc.
13715 Murphy Rd., Suite D
Stafford, Texas  77477

Dear Mr. Parsons:

     This  Financial  Advisory  Agreement (the  "Agreement")  shall serve to set
forth the terms upon which First  Financial  Equity  Corporation  ("FFEC" or the
"Financial Advisor") will render advisory services to EBIZ Enterprises, Inc. and
Jones Business  Systems,  Inc.  (collectively,  the "Company").  On the basis of
discussions  held between  FFEC and the  Company's  respective  representatives,
subject to the terms and conditions of Paragraph 9 hereafter, FFEC agrees to act
as  the   Company's   Financial   Advisor  to  assist  the  Company  in  raising
debtor-in-possession  financing (the "DIP Financing") on a "best efforts" basis,
pursuant to the following terms and conditions:

     1. TERMS OF THE DIP FINANCING.

          A. FFEC shall act as the Company's  Financial  Advisor relating to the
proposed DIP  Financing of the Company.  Specifically,  the Company  proposes to
raise approximately $1,100,000.00 of DIP Financing through the issuance of a new
class of debt to a group of financially sophisticated persons who understand the
risks  involved  in this type of  financing  transaction  and can afford to lose
their entire investment or institutions (the "Lender Group").  The parties agree
that the DIP Financing  shall have a minimum raise of $300,000.00  (the "Minimum
Raise").  Until FFEC has successfully raised $300,000.00,  all funds received by
FFEC  relating  to the DIP  Financing  shall be held by FFEC in  escrow  for the
Company  and the  individual  members  of the  Lender  Group  and  shall  not be
disbursed to the Company.  The parties acknowledge and agree that the Chapter 11
Plan of Reorganization, which the Company expects to file in its pending Chapter
11  Bankruptcy  Case (the  "Plan"),  may provide each member of the Lender Group
with the right or option to  exchange  or  convert  that debt into  equity.  The
ultimate  terms of the DIP Financing will be determined by the Company and FFEC.
<PAGE>
EBIZ Enterprises, Inc.
December 12, 2001
Page 2

FFEC, as the  Company's  Financial  Advisor,  will market the DIP Financing on a
best efforts basis;

          B. The DIP  Financing  will be  structured to comply with Sections 364
and 1145 of the U.S.  Bankruptcy Code and all applicable  securities laws. It is
the  intent  of  the  parties  that  the  exemptions  from  certain   securities
regulations provided by 11 U.S.C ss.ss.364(f) & 1145(a), 15 U.S.C.  ss.77(c) and
any other  available  securities law  exemptions  shall be applicable to the DIP
Financing.  The DIP  Financing  will be sold through  disclosure  documents  (an
"Offering Circular") that comply with applicable securities and bankruptcy laws.
The Financial  Advisor will solicit a limited number of prospects to participate
in the Lender Group who are financially  sophisticated  and understand the risks
involved in this type of financing transaction; and

          C. FFEC and the  Company  expect  that FFEC shall act as the agent for
the Lender Group and, therefore,  shall have continuing duties to the individual
members of the Lender  Group with  respect to the  property  that shall serve as
collateral for the DIP Financing and the  debtor-creditor  relationship  between
the Company and the Lender Group.  The further terms and conditions  between the
Company,  the Lender Group and FFEC, as the agent for the Lender Group, shall be
set  forth in a Pledge  and  Security  Agreement  and  Appointment  of Agent For
Holders,  separate  Promissory  Notes and a UCC-1 Financing  Statement (the "DIP
Financing  Agreements").  The DIP  Financing  Agreements  shall  be  subject  to
Bankruptcy Court approval.

     2. TERMS.  Subject to Paragraph 3, the term of this Agreement shall be from
the date of execution of this Agreement  through the earlier of  confirmation of
the  Plan or six  months  from  the  date of the  Company's  acceptance  of this
Agreement (the "Term"). The Term may be extended by mutual written agreement.

     3.  TERMINATION.  This  Agreement  may be  terminated  by either party upon
written  notice.  In  the  event  of  termination,  FFEC  will  be  entitled  to
compensation (including any amounts deferred) payable to FFEC pursuant hereto as
of the date of termination.

     4.  COMPENSATION TO FFEC.  Subject only to Bankruptcy Court approval of the
amount of fees that  shall be earned  and which may become due and owing to FFEC
hereunder,  and the other terms and conditions of this Agreement,  for assisting
<PAGE>
EBIZ Enterprises, Inc.
December 12, 2001
Page 3

in the DIP Financing  and serving as the agent for the Lender Group,  FFEC shall
receive cash fees and warrants,  upon the  Effective  Date of the Plan - as that
term is defined in the Plan, with respect to the aggregate  amount of funds from
persons  introduced  by FFEC to the DIP  Financing  and  actually  loaned by the
Lender Group to the Company (the "Loan Amount"), as follows:

          A. Cash fees equal to eight percent (8.0%) of the Loan Amount;

          B. An additional  banking fee equal to two percent  (2.0%) of the Loan
Amount;

          C. Warrants to purchase such number of shares of the Company's  common
stock that shall equal ten percent (10.0%) of the aggregate  number of shares of
common  stock  actually  issued to or to be issued  to the  Lender  Group on the
Effective Date of the Plan (the "DIP Warrants"); and,

          D. The  Financial  Advisor  shall not be entitled to any  compensation
from the  Company  unless the amount of the Minimum  Raise is  actually  met and
loaned to the Company.

     The DIP Warrants will be exercisable  at a price of $0.65 per Warrant.  The
terms of the DIP Warrants shall be set forth in a Warrant Agreement, in form and
substance  reasonably  satisfactory  to the  Financial  Advisor and the Company,
which shall contain, without limitation, anti-dilution provisions and piggy-back
registration  rights.  All Warrants issued to FFEC pursuant to the terms of this
Agreement  shall be exercisable for a period of three (3) years from the date of
the closing of the DIP Financing.

     5. EXPENSES.  The Company shall be responsible  for the  preparation of the
Offering Circular,  including legal fees, accounting,  and printing expenses, as
well as filing and registration  fees,  marketing expenses and background checks
of  senior  management.  The  Company  will  reimburse  the  Financial  Advisor,
following  notice and  approval  by the  Bankruptcy  Court,  for its  reasonable
out-of-pocket  expenses;  provided,  however,  that FFEC  obtain  prior  written
permission  for any  expense in excess of  $1,000.00  or  aggregate  expenses in
excess of  $2,500.00.  FFEC will not charge  for local  telephone  calls,  local
automobile  expenses,  or business meals, unless a representative of the Company
is present. The Company will pay for courier and/or postage costs related to the
mailing of materials to  prospective  investors  or lenders,  and for  telephone
conference calls.
<PAGE>
EBIZ Enterprises, Inc.
December 12, 2001
Page 4

     6. REPRESENTATIONS AND INDEMNIFICATION.

          A. Each party  represents  and  warrants to the other  that:  (i) such
party will not take or  knowingly  permit  any action to be taken in  connection
with the DIP Financing  which violates  federal or state  securities laws or any
bankruptcy  laws; and (ii) none of the  information or statements  provided by a
party in the Offering  Circular  will violate the  anti-fraud  provisions of the
Securities  and  Exchange Act of 1934  (recognizing  that FFEC will only provide
plan of distribution information);

          B. The Company  represents,  warrants and covenants  that: (i) current
Company  management  will  continue in place after the DIP  Financing  until the
earlier  of the first  meeting of the  shareholders  of the  Reorganized  Debtor
following  the  Effective  Date of the  Plan,  the date on which  any  member of
current  management may resign his or her position or the date on which any such
person is terminated by the Company;  (ii) the financial  statements included in
the Offering Circular will fairly reflect the financial condition of the Company
and the results of its  operations  at the time and for the  periods  covered by
such financial  statements;  and (iii) the Company has prepared and delivered to
the Financial Advisor its most recent estimate of sales, earnings, and cash flow
and agrees to update those estimates on a quarterly basis during the pendency of
the DIP Financing;

          C. FFEC  represents and warrants to the Company that: (i) it possesses
all licenses or permits necessary to effect the DIP Financing;  and (ii) it is a
party to that certain  Confidentiality  and  Non-Disclosure  Agreement  with the
Company (the "Confidentiality  Agreement") pursuant to which FFEC agreed to keep
confidential  and not  disclose  certain  proprietary  confidential  information
regarding  the  Company  that  the  Company   agreed  to  furnish  to  FFEC  and
acknowledges that such agreement is valid,  binding on the parties and continues
in full force and effect; and

          D.  Each  party  agrees  to  indemnify  and  hold  the  other  and its
attorneys,  accountants,  agents,  employees,  officers and directors,  free and
harmless from any liability,  cost and expense,  including  attorneys'  fees and
costs, in the event of a breach of any representation or warranty herein.
<PAGE>
EBIZ Enterprises, Inc.
December 12, 2001
Page 5

     7.  SUCCESSORS AND ASSIGNS.  The benefits of this Agreement  shall inure to
the respective successors and assigns of the parties hereto, and the obligations
and liabilities assumed in this Agreement by the parties hereto shall be binding
upon their respective successors and assigns.

     8.  GOVERNING  LAW.  This  Agreement  shall be governed  and  construed  in
accordance with the laws of the State of Arizona.

     9.  Conditions  of  Performance  by FFEC.  Notwithstanding  anything on the
contrary  hereinabove  set forth,  the performance of the obligations of FFEC as
provided in this Agreement is specifically  subject to and conditioned  upon the
following:

          A. Successful  completion of in-depth  investigative  procedures to be
conducted  by FFEC with  respect to the  Company,  its  operations  and  general
performance,  as well as its officers and directors,  within thirty (30) days of
the date hereof (commonly referred to as "due diligence" procedures);

          B. Results of due diligence  procedures  employed by FFEC satisfactory
to FFEC in its sole determination; and

          C. Any necessary Bankruptcy Court approval.

     10.  AMENDMENT.  This Letter of Intent may be amended by mutual  consent of
both parties.

     11.  CONFIDENTIALITY.  FFEC shall  maintain in confidence  until  disclosed
publicly by the Company, any information,  including  projections prepared by or
provided by the Company,  and shall rigorously adhere to all of the terms of the
previously executed Confidentiality Agreement.
<PAGE>
EBIZ Enterprises, Inc.
December 12, 2001
Page 6

     If this  Agreement  correctly  sets  forth  our  understanding,  please  so
indicate by signing and returning the enclosed copy of this Agreement.

                                     Respectfully,

                                     FIRST FINANCIAL EQUITY
                                     CORPORATION

                                     By: /s/ George Fischer
                                         ---------------------------------------
                                         George Fischer, President

ACCEPTED AND AGREED:

this _______ day of  ________________, 2001.

EBIZ ENTERPRISES, INC.                JONES BUSINESS SYSTEMS, INC.

By: /s/ Bruce A. Parsons              By: /s/ Bruce A. Parsons
    ------------------------------        --------------------------------------
    Bruce Parsons, President              Bruce Parsons, President

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