Document:

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                                                                   EXHIBIT 10.14

                            K-TEL INTERNATIONAL, INC.
                      NON-QUALIFIED STOCK OPTION AGREEMENT
                       PURSUANT TO 1997 STOCK OPTION PLAN

No. of shares subject to Option: __________

     OPTION AGREEMENT dated as of ____________, 2000, by and between K-tel
International, Inc., a Minnesota corporation (the "Company"), and ____________
("Optionee"). Unless otherwise defined herein, certain capitalized terms shall
have the meaning set forth in the Company's 1997 Stock Option Plan, as amended
(the "Plan").

                            W I T N E S S E T H :

         1. NATURE OF THE OPTION. This Option is not intended to qualify as an
Incentive Stock Option within the meaning of Section 422 of the United States
Internal Revenue Code of 1986, as amended.

         2. GRANT OF OPTION. Pursuant to the provisions of the Plan, the Company
grants to the Optionee on ____________, 2000, subject to the terms and
conditions of the Plan and to the terms and conditions herein set forth, the
right and option to purchase from the Company all or a part of an aggregate of
_________ shares of Common Stock (the "Shares") at the purchase price of $______
per share, such option to be exercised as hereinafter provided.

         3. TERMS AND CONDITIONS. It is understood and agreed that the option
evidenced hereby is subject to the following terms and conditions:

         (a) EXPIRATION DATE. The option shall expire ten years after the date
of grant specified in Section 2.

         (b) EXERCISE OF OPTION. Subject to the Plan and the other terms of this
Agreement regarding the exercisability of this Option, this Option shall be
exercisable be exercisable cumulatively, to the extent of _________ shares on or
after ____________, 2001, _________ shares subject to this Option on or after
____________, 2002, and _________ shares subject to this Option on or after
____________, 2003.

         Any exercise shall be accompanied by a written notice to the Company
specifying the number of shares of Stock as to which the Option is being
exercised. Notation of any partial exercise shall be made by the Company on
Schedule I hereto.

         (c) PAYMENT OF PURCHASE PRICE UPON EXERCISE. At the time of any
exercise, the purchase price of the Shares as to which this Option is exercised
shall be paid in cash to the Company, unless,

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in accordance with the provisions of Section 5.2 (b) of the Plan, the Committee
shall permit payment of the purchase price in another manner set forth in the
Plan.

         (d) NONTRANSFERABILITY. This option shall not be transferable other
than by will or by the laws of descent and distribution. During the lifetime of
the Optionee, this Option shall be exercisable only by the Optionee or by the
Optionee's guardian or legal representative. No transfer of this Option by the
Optionee by will or by the laws of descent and distribution shall be effective
to bind the Company unless the Company shall have been furnished with written
notice thereof and a copy of the will and/or such other evidence as the
Committee may determine necessary to establish the validity of the transfer.

         (e) NO RIGHTS AS SHAREHOLDER. The Optionee shall have no rights as a
shareholder of the Company with respect to any shares of Stock subject to this
Option prior to the date of issuance to the Optionee of a certificate for such
shares.

         (f) COMPLIANCE WITH LAW AND REGULATIONS. This Option and the obligation
of the Company to sell and deliver shares hereunder shall be subject to all
applicable laws, rules and regulations and to such approvals by any government
or regulatory agency as may be required. The Company shall not be required to
issue or deliver any certificates for shares of Stock prior to (i) the listing
of such shares on any stock exchange on which the Stock may then be listed, and
(ii) the completion of any registration or qualification of such shares under
any federal or state law, or any rule or regulation of any government body which
the Company shall, in its sole discretion, determine to be necessary or
advisable. Moreover, this Option may not be exercised if its exercise or the
receipt of shares of Stock pursuant thereto would be contrary to applicable law.

         4. ADJUSTMENTS. In the event of any change whether through
recapitalization, merger, consolidation, stock dividend, split-up, or change in
the amount of the Company's capital stock after the date hereof, this Option, to
the extent it has not been exercised, shall entitle the Optionee to such number
and kind of securities as the Optionee would have been entitled to had the
Optionee actually owned the stock subject to this Option at the time of the
occurrence of such change. If any other event shall occur, prior to the exercise
of this Option, which shall increase or decrease the amount of capital stock
outstanding and which the Committee, in its sole discretion, shall determine
equitably requires an adjustment in the number of shares which the Optionee may
acquire, such adjustment as the Committee shall determine may be made, and when
so made shall be effective and binding for all purposes of this Option.

         5. INVESTMENT REPRESENTATION. The Committee may require the Optionee to
furnish to the Company, prior to the issuance of any shares upon the exercise of
all or any part of this Option, an agreement (in such form as such the Committee
may specify) in which the Optionee represents that the shares acquired by the
Optionee upon exercise are being acquired for investment and not with a view to
the sale or distribution thereof.

         6. OPTIONEE BOUND BY PLAN. The Optionee hereby acknowledges receipt of
a copy of the Plan and agrees to be bound by all the terms and provisions
thereof. In the event of any question or inconsistency between this Agreement
and the Plan, the terms and conditions of the Plan shall govern.

                                       2
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         7. NOTICES. Any notice hereunder to the Company shall be addressed to
it at its principal executive offices, located at 2605 Fernbrook Lane North,
Plymouth, Minnesota 55447, Attention: President; and any notice hereunder to the
Optionee shall be addressed to the Optionee at the address set forth below;
subject to the right of either party to designate at any time hereunder in
writing some other address.

         8. COUNTERPARTS. This Agreement may be executed in two counterparts
each of which shall constitute one and the same instrument.

         9. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Minnesota.

         IN WITNESS WHEREOF, K-tel International, Inc. has caused this Agreement
to be executed by its President and the Optionee has executed this Agreement,
both as of the day and year first above written.

                                                    K-TEL INTERNATIONAL, INC.

                                                    By:
                                                       -------------------------
                                                        Philip Kives
                                                        Chief Executive Officer

--------------------------------
Optionee (signature)

Name and address of Optionee (type or print):

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

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

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

                                       3
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                                    EXHIBIT A

                             OPTION AND VESTING DATA

Name of Optionee:                   ___________________

Number of Shares Subject to Option: __________

Date of Grant:                      _______________, 2000

                             OPTION VESTING SCHEDULE

<TABLE>
<CAPTION>
                                                    NO. OF SHARES
                     DATE                            EXERCISABLE
                     <S>                            <C>
                     _______________, 2001           _________
                     _______________, 2002           _________
                     _______________, 2003           _________
</TABLE>

         The above vesting schedule assumes a ongoing relationship with the
Company. Your rights to exercise the unvested portion of this Option will cease
upon termination of relationship with the Company. Reference is made to the Plan
and to relevant sections of the Agreement between you and the Company for your
rights to exercise the vested portion of this Option in the event of termination
of your relationship with the Company during lifetime or upon death. The above
vesting schedule is in all respects subject to the terms of those documents.

                                      A-1
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                  SCHEDULE I - NOTATIONS AS TO PARTIAL EXERCISE

<TABLE>
<CAPTION>
                  Number of         Balance of
Date of           Purchased          Shares on      Authorized      Notation
Exercise           Shares             Option         Signature        Date
<S>               <C>               <C>             <C>             <C>

</TABLE>

                                      I-1<PAGE>

                                                                   EXHIBIT 10.15

                             AMENDMENT NUMBER THREE
                                       TO
                           LOAN AND SECURITY AGREEMENT

              This Amendment Number Three to Loan and Security Agreement
("Amendment") is entered into as of September 22, 1999, by and among FOOTHILL
CAPITAL CORPORATION, a California corporation ("Foothill"), and K-TEL
INTERNATIONAL (USA), INC., DOMINION ENTERTAINMENT, INC., K-TEL CONSUMER
PRODUCTS, INC., K-TEL TV, INC. and K-TEL VIDEO, INC., all of which are Minnesota
corporations (jointly "Borrowers"), in light of the following:

              A. Borrowers and Foothill have previously entered into that
certain Loan and Security Agreement, dated as of November 20, 1997 (as amended,
the "Agreement").

              B. Borrowers and Foothill desire to further amend the Agreement as
provided for and on the conditions herein.

              NOW, THEREFORE, Borrowers and Foothill hereby amend and supplement
the Agreement as follows:

              1. DEFINITIONS. All initially capitalized terms used in this
Amendment shall have the meanings given to them in the Agreement unless
specifically defined herein.

              2. AMENDMENTS AND WAIVERS.

                  (a) Section 1.1 of the Agreement is amended to add the
following definition:

                        "NET WORTH" means, as of any date of determination, a
            Person's total stockholder's equity.

                  (b) Section 2.1(a)(x) of the Agreement is amended to read as
follows:

                        (x) the lesser of (i) 85% of Eligible Accounts, less the
            amount, if any, of the Dilution Reserve, and (ii) an amount equal to
            Borrower's Collections with respect to Accounts for the immediately
            preceding 120 day period, minus

                  (c) Section 7.20 of the Agreement is amended to read as
follows:

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                        FINANCIAL COVENANTS. Have Parent fail to have Net Worth
            of at least the following amounts:

                     MINIMUM NET WORTH            FISCAL QUARTER ENDING

                        $3,000,000                June 30, 1999 through
                                                  and including March 31,
                                                  2000

                        $4,000,000                June 30, 2000 and thereafter

                        In addition, Foothill hereby waives Borrowers'
            non-compliance with Section 7.20 solely for the quarter ended March
            31, 1999.

                  (d) Section 2.11(d) of the Agreement is amended to read as
follows:

                        SERVICING FEE. On the first day of each month during the
            term of this Agreement, and thereafter so long as any Obligations
            are outstanding, a servicing fee in an amount equal to $3,250.

              3. REPRESENTATIONS AND WARRANTIES. Borrowers hereby affirms to
Foothill that all of Borrowers' representations and warranties set forth in the
Agreement are true, complete and accurate in all respects as of the date hereof.

              4. NO DEFAULTS. Borrowers hereby affirm to Foothill that no Event
of Default has occurred and is continuing as of the date hereof.

              5. CONDITIONS. The effectiveness of this Amendment is expressly
conditioned upon the following:

                  (a) Receipt by Foothill of an executed copy of this Amendment;
and

                  (b) Within 30 days of the date hereof, Borrowers shall cause
K-Tel Online, Inc. to execute and deliver to Foothill a Continuing Guaranty of
the Obligations and a Security Agreement securing such guaranty.

              6. COSTS AND EXPENSES. Borrowers shall pay to Foothill all of
Foothill's out-of-pocket costs and expenses (including, without limitation, the
fees and expenses of its counsel, which counsel may include any local counsel
deemed necessary, search fees, filing and recording fees, documentation fees,
appraisal fees, travel expenses, and other fees) arising in connection with the
preparation, execution, and delivery of this Amendment and all related
documents.

              7. LIMITED EFFECT. In the event of a conflict between the terms
and provisions of this Amendment and the terms and provisions of the Agreement,
the

                                                                               2
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terms and provisions of this Amendment shall govern. In all other respects,
the Agreement, as amended and supplemented hereby, shall remain in full force
and effect.

              8. COUNTERPARTS; EFFECTIVENESS. This Amendment may be executed in
any number of counterparts and by different parties on separate counterparts,
each of which when so executed and delivered shall be deemed to be an original.
All such counterparts, taken together, shall constitute but one and the same
Amendment. This Amendment shall become effective upon the execution of a
counterpart of this Amendment by each of the parties hereto.

              IN WITNESS WHEREOF, the parties hereto have executed this
Amendment as of the date first set forth above.

                                              FOOTHILL CAPITAL CORPORATION,
                                              a California corporation

                                              By:
                                                 -------------------------------
                                              Title:
                                                    ----------------------------

                                              K-TEL INTERNATIONAL (USA), INC.,
                                              a Minnesota corporation

                                              By:
                                                 -------------------------------
                                              Title:
                                                    ----------------------------

                                              DOMINION ENTERTAINMENT, INC.,
                                              a Minnesota corporation

                                              By:
                                                 -------------------------------
                                              Title:
                                                    ----------------------------

                                              K-TEL CONSUMER PRODUCTS, INC.,
                                              a Minnesota corporation

                                              By:
                                                 -------------------------------
                                              Title:
                                                    ----------------------------

                                                                               3
<PAGE>

                                              K-TEL TV, INC.,
                                              a Minnesota corporation

                                              By:
                                                 -------------------------------
                                              Title:
                                                    ----------------------------

                                              K-TEL VIDEO, INC.,
                                              a Minnesota corporation

                                              By:
                                                 -------------------------------
                                              Title:
                                                    ----------------------------

                                                                               4

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                  The undersigned has executed a Continuing Guaranty in favor of
Foothill Capital Corporation ("Foothill") respecting the obligations of the
Borrowers, as defined in the attached Amendment, owing to Foothill. The
undersigned acknowledges the terms of the above Amendment and reaffirms and
agrees that: its Continuing Guaranty remains in full force and effect; nothing
in such Continuing Guaranty obligates Foothill to notify the undersigned of any
changes in the financial accommodations made available to Borrowers or to seek
reaffirmations of the Continuing Guaranty; and no requirement to so notify the
undersigned or to seek reaffirmations in the future shall be implied by the
execution of this reaffirmation.

                            K-TEL INTERNATIONAL, INC.
                             a Minnesota corporation

                                              By:
                                                 -------------------------------
                                              Title:
                                                    ----------------------------

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