Document:

Exhibit 10.27

                              AGREEMENT FOR SECURED
                                 LINE OF CREDIT

                                                                PHOENIX, ARIZONA
                                                              SEPTEMBER __, 2001

     This  agreement for a secured line of credit (the  "AGREEMENT"),  effective
September __, 2001, between and among EBIZ ENTERPRISES,  INC. ("EBIZ") and JONES
BUSINESS  SYSTEMS,   INC.  ("JBSI")  ("MAKERS"),   and  CALDERA  SYSTEMS,   INC.
("LENDER").

                                    RECITALS

     A. Makers are in the  business of  manufacture  and sale of  computers  and
computer components.

     B. JBSI and Lender are parties to that certain Distribution Agreement dated
November 8, 2000 (the "DISTRIBUTION  AGREEMENT"),  pursuant to which JBSI served
as the nonexclusive distributor of certain products sold by Lender identified in
the   Distribution   Agreement   and  certain  other  goods  and  products  (the
"PRODUCTS"),  and participated in a long term and mutually  beneficial  business
relationship  relating  to the  purchase,  distribution  and sale by  Makers  of
Lender's products.

     C. Lender  previously  extended  credit terms to Makers to  facilitate  the
purchase by Makers of the  Products.  The  outstanding  balance due to Lender by
Makers  as of the  date of  this  Agreement  is  $542,125.61  (the  "OUTSTANDING
BALANCE").

     D. Lender is willing to provide the additional  credit and financing needed
by Makers  up to  $250,000.00  through  a line of  credit  on a  secured  basis,
pursuant to the terms and  conditions of this  Agreement  (the "LINE OF CREDIT")
conditioned  upon  the  execution  of a  promissory  note in the  amount  of the
Outstanding  Balance of even date herewith (the "SECURED PROMISSORY NOTE") and a
security  agreement by Makers conveying a security interest in all of the assets
of Makers in order to secure the  Outstanding  Balance and all amounts  that may
become due and owing  under the Line of Credit.  In the event that Makers file a
petition for relief under Chapter 11 of the  Bankruptcy  Code,  Lender agrees to
continue to provide the Line of Credit to Makers  conditioned  upon  approval of
this Agreement, pursuant to 11 U.S.C. ss.364, by the Bankruptcy Court.

     E. A necessary  precondition  to the Lender entering into this Agreement is
for the Makers to execute  this  Agreement,  the Secured  Promissory  Note,  the
Security  Agreement,  a UCC-1  Financing  Statement,  (collectively  referred to
hereinafter as the "LOAN DOCUMENTS").

     F. Obtaining credit and financing from Lender is critical to the ability of
Makers to continue their business  operations and without such financing  Makers
believe  they  would  likely  not be able  to  operate  successfully  as a going
concern.  Entering into this  Agreement and executing each of the Loan Documents
is, in the exercise of Makers' best business  judgment,  in the best interest of
Makers.
<PAGE>
     In  consideration  of the above  recitals,  the following  representations,
warranties, covenants and conditions, and other good and valuable consideration,
the receipt of which is acknowledged, the parties agree as follows:

                                   SECTION ONE
              REPRESENTATIONS, WARRANTIES AND AFFIRMATIVE COVENANTS

     Makers represent, warrant, and covenant that:

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

     (2)  Makers  have  good  title  to the  Collateral  and are the  legal  and
beneficial owner thereof;

     (3)  Makers  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
                                AMOUNT OF CREDIT

     Until further  notice,  and on the condition  that Makers not be in default
with respect to any of the terms of this  Agreement,  Lender will make available
to  Makers  the Line of Credit in an amount  not to  exceed  Two  Hundred  Fifty
Thousand Dollars  ($250,000.00)  in order to permit Makers to purchase  Products
from Lender.

                                  SECTION THREE
                                  TERMS OF LOAN

     Makers  may from  time to time  order and  purchase  Products  from  Lender
without paying for such Products at the time of placing the order.  By doing so,
Makers are  requesting  and shall be deemed to have  requested  an  extension of
credit under the Line of Credit (a "CREDIT REQUEST"). The aggregate value of the
Products shipped by Lender in response to any order of Products for which Makers
have made a Credit Request shall constitute a draw and a reduction in the amount
of  available  unused  credit  available  under  the Line of Credit  (the  "DRAW
Amount").  Each such Draw  Amount  shall be due and owing to Lender on that date
which is 30 days from date that the  Products,  which  were the  subject  of the
Credit  Request  giving rise to the Draw Request,  were shipped to Makers or the
customers  designated by Makers (the "DUE DATE"). All amounts advanced by Lender
hereunder shall bear interest from the date the funds are advanced until paid at
the rate of ten percent (10%) per annum (the "STATED  RATE").  Makers shall also
execute  the form of Secured  Promissory  Note in the amount of the  Outstanding
<PAGE>
Balance, attached hereto as Exhibit "A." All amounts are payable in lawful money
of the United States.

                                  SECTION FOUR
                            TERMINATION OF AGREEMENT

     This Agreement,  each of the Loan Documents, and the rights and obligations
of each of the parties  hereunder and  thereunder  shall  terminate and be of no
further  force or effect on the date that all  amounts  due and owing under this
Agreement and the Secured  Promissory Note have been paid in full to Lender (the
"TERMINATION  DATE").  Upon the Termination Date, Lender shall (and Lender shall
cause its nominees and any affiliates  that have any rights under this Agreement
or any of the Loan Documents to) execute,  acknowledge,  deliver,  record and/or
file any and documents,  releases,  termination of security interest  statements
and  the  like,  execute,   deliver,   record  and/or  file  such  documents  of
reassignment, reconveyance and the like, and take any and all actions reasonably
requested  by Makers or any  successor  to Makers as may be necessary to release
all security interests, liens, charges and the like on the assets of Makers, any
securities  of Makers or which  otherwise  arise  under or with  respect to this
Agreement,  the Loan  Documents  or any such  related  agreements,  documents or
instruments.

                                  SECTION FIVE
                               SECURITY FOR LOANS

     All funds advanced to Makers by Lender,  including all amounts evidenced by
the Secured  Promissory Note are secured by collateral  pursuant to the Security
Agreement.

                                   SECTION SIX
               EVENTS OF DEFAULT AND LENDER'S RIGHTS AND REMEDIES

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

     (A) Nonpayment of any Draw Amount on any Due Date;

     (B)  Failure  to  perform  any duty or  obligation  of  Makers  under  this
Agreement or to pay any sum due or otherwise  advanced  under this  Agreement of
the Secured Promissory Note;

     (C) Any  material  representation  or warranty  made by Makers to Lender in
connection  with or pursuant to this Agreement is false in any material  respect
on the date as of which it was made or becomes false in any material respect;

     (D) Makers  defaults in the  performance  or observance of any of the other
Loan Documents;

     Upon the occurrence of an Event of Default,  Lender shall provide to Makers
a written  Notice of Default  at the  address  set forth  herein and a period of
thirty  (30) days from the date of the  Notice of  Default  in order to cure all
defaults under this  Agreement  and/or any of the other Loan  Documents.  If any
such  defaults  remain  uncured as of the close of business on the thirtieth day
following the date of the Notice of Default:  (i) the unpaid principal  balance,
<PAGE>
and accrued  unpaid  interest and all other  amounts due or  otherwise  advanced
under this Agreement and the Secured Promissory Note shall automatically without
notice bear interest at a rate equal to fifteen percent (15%) percentage  points
(the  "DEFAULT  RATE") until the default has been cured,  at which time interest
shall again accrue at the Stated Rate; (ii) the whole sum of principal,  accrued
interest  and all  other  amounts  due  under  this  Agreement  and the  Secured
Promissory  Note may, at the option of the Lender be declared  due and  payable,
with  interest  thereon to accrue at the Default Rate from the date of the Event
of  Default  until the Event of Default  has been  cured at which time  interest
shall again accrue at the Stated Rate;  and (iii) the Lender may exercise any of
the rights and remedies  contained herein, in the Secured Promissory Note, or in
the Security Agreement.

     The rights or remedies of Lender as provided in this Agreement, the Secured
Promissory Notes and the Security  Documents shall be cumulative and concurrent,
and may be  pursued  singly,  successively,  or  together  against  Makers,  any
guarantor  hereof and any other funds,  property or security  held by Lender for
payment hereof or otherwise at the sole, absolute and uncontrolled discretion of
Lender. No single or partial exercise of any power hereunder or under any of the
Loan Documents  shall  preclude  other or further  exercise of such power or the
exercise of any other right, remedy or power.

     Lender shall not be obligated to accept any delinquent  payment,  nor shall
acceptance  of any  delinquent  payment or any late charges  prejudice  Lender's
right  to  collect  any  other  amounts  under  this  Agreement  or the  Secured
Promissory  Note, to declare a default under or to accelerate  this Agreement or
the Secured  Promissory Note in the event of any subsequent  Event of Default or
to exercise any other rights or remedies provided herein or by law.

                                  SECTION SEVEN
                           AMENDMENT AND MODIFICATION

     This Agreement and the Secured Promissory Note 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.  Makers and
Lender  further intend and believe that each provision in this Agreement and the
Secured  Promissory Note complies with all applicable  local,  state and federal
laws and court  decisions.  However,  if any  provision  or  provisions  in this
Agreement or the Secured Promissory Note 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 or the Secured Promissory
Note to be illegal, invalid, unlawful, void or unenforceable as written, then it
is the  intent of Makers  that such  portion,  provision(s)  shall be given full
force and effect to the fullest  possible extent that they are legal,  valid and
enforceable,  that  the  remainder  of this  Agreement  and such  Note  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 the Makers under the  remainder of this  Agreement  and the Secured
Promissory Note shall continue in full force and effect.
<PAGE>
                                  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  Arizona,   regardless  of  any  applicable
conflict-of-law rules to the contrary.

     The Makers and Lender also hereby:

          (A)  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 District 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;

          (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 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

          (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 Arizona Courts,  of the merits of any
such suit, action or proceeding or the jurisdiction of said Arizona 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.

                                 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.
<PAGE>
                                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,  and the Loan
Documents  contain  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,
shall,  where  appropriate,  include all other  genders and the  singular  shall
include the plural and vice versa.
<PAGE>
                                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  Makers  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.

                                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.

     IN WITNESS  WHEREOF,  this Agreement has been executed as of the date first
written above,

                                      LENDER:
                                      CALDERA SYSTEMS, INC.

                                      By: /s/ Ransom H. Love
                                          --------------------------------------
                                          Its President
                                          Address: 240 West Center Street
                                                   Orem UT  84057

STATE OF UTAH     )
                  ) ss.
County of Utah    )

     The  foregoing  instrument  was  acknowledged  before  me this  ____ day of
September, 2001, by __________________________ the President of Caldera Systems,
Inc.

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

My Commission Expires:

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

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

                                      By: /s/ Dave Shaw
                                          --------------------------------------
                                      Dave Shaw
                                      President of JBSI
                                      CEO of EBIZ
                                      Address: 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 Dave Shaw, the CEO of EBIZ Enterprises,  Inc., and President
of Jones Business Systems, Inc.

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

My Commission Expires:

--------------------Exhibit 10.28

                       DEALER LOAN AND SECURITY AGREEMENT

Textron Financial Corporation                       CO-BORROWERS:
1180 Welsh Road, Suite 280
North Wales, PA  19454                              EBIZ Enterprises, Inc.
                                                    ----------------------------
                                                    Exact Legal Name
                                                    15695 N. 83rd Way
                                                    ----------------------------
                                                    Street Address
                                                    Scottsdale, AZ 85260
                                                    ----------------------------
                                                    City, State, Zip Code

                                                    Jones Business Systems, Inc.
                                                    ----------------------------
                                                    Exact Legal Name
                                                    13715 Murphy Rd., Suite D
                                                    ----------------------------
                                                    Street Address
                                                    Stafford, TX 774770
                                                    ----------------------------
                                                    City, State, Zip Code

Gentlemen:

     1. We are an authorized dealer of goods manufactured  and/or distributed by
various manufacturers and distributors  (hereinafter called "Manufacturer").  As
such, we from time to time buy goods from  Manufacturer  to be held by us as our
inventory for sale by us in the normal  course of our business.  We may, as more
fully set forth  herein,  from time to time  obtain  loans  from you in order to
finance the purchase of certain of such goods,  including  parts and accessories
therefor,  from  Manufacturer,  and  desire  by this  Agreement  to set forth in
writing our understanding of our loan arrangements with you and secure repayment
of such  loans  and other  related  debts  and  liabilities  we may have to you,
whether now existing or hereafter arising.

     2. Upon our request from time to time, you may, at your sole discretion and
without any  obligation  to do so,  make loans to us,  under such terms and with
such  conditions  as you  shall  specify,  to  enable  us to  acquire  rights in
Inventory from  Manufacturers  pre-approved  by you for financing  programs.  We
understand  that  each such  loan  will be  solely  at your  discretion,  and we
expressly disclaim any right to expect otherwise,  either from the course of our
dealing,  our need therefore,  your dealings with others, your arrangements with
Manufacturer,  or  otherwise.  Conversely,  nothing  herein will prevent us from
obtaining  financing  from  other  sources,  provided  that  you are  completely
satisfied  that such other  financing  will not jeopardize our ability to comply
with our  financial  obligations  to you and that  adequate  procedures  will be
implemented to absolutely assure your ability to identify your Collateral.

     We  understand  that  certain  terms  and  conditions  applicable  to loans
obtained by us from you will be set forth in materials to be made available from
time to time to us and other dealers,  the terms of which,  as revised from time
to time, being deemed incorporated herein by reference. We understand that these
materials  are  subject to change by you at any time and from time to time,  and
expressly assume the  responsibility  of confirming  directly with you, upon our
request for each loan, the exact terms and conditions  then being stated by you,
including  without  limitation  rate of interest and terms of  repayment.  In no
event will we view such materials as a commitment or other offer on your part to
lend,  and we will have no right to any loan under any  particular  terms  until
actually made and under the terms so made. We understand and agree that the full
amount of each loan will be paid to you on its due date  without  deduction  for
any sums due from  Manufacturer  or any Credit Memo that may have been issued to
you, unless you have  previously  notified us that you have received and applied
the amount of the Credit Memo issued by the Manufacturer.

     We understand  that you may,  from time to time,  issue advices to us. Such
advices may include,  but need not be limited to, periodic or monthly statements
of our account,  periodic letter advices in the nature of statements of account,
issued  from time to time,  and  letter  forms or other  forms of notices of due
dates of finance plan payments and of the specific  terms of loans which we have
with you. Unless we, within ten (10) days from the date of any such advice, give
you written and itemized  objection to the contents of such advice,  we shall be
fully  bound  thereby and  acknowledge  that the content of such advice is true,
correct, and complete,  and accurately reflects our obligations to you as of the
date thereof.

     In connection with each loan  requested,  we will deliver to you such other
writings  as you shall  require,  which may include  notes or other  appropriate
evidence of debt. Such notes or other evidence of debt,  Manufacturer  invoices,
and other  like  materials  as may be  revised  from  time to time  ("Collateral
Documents"), together with this Agreement, contain our entire understanding, and
we  acknowledge  that we will not be  relying  upon any  prior  oral or  written
promises or  undertakings  or future oral promises  between us. No  modification
hereof or of the  Collateral  Documents  will be  binding  upon you  unless in a
writing  duly  executed  on your  behalf by an officer  holding the rank of Vice
President or higher.

     We hereby  authorize  you to disburse the proceeds of each loan directly to
Manufacturer on our behalf.  Further, we shall and hereby authorize Manufacturer
to deliver its invoice for Inventory,  together with all Certificates of Origin,
directly  to you.  You may  assume  that  all such  invoices  so  submitted  are
authentic and accurate and that they have been  submitted on our behalf and with
our  permission.  Receipt  by you  from us or  Manufacturer  of an  invoice  for
Inventory  shall  be  your  authority  to  make a loan  to us  under  terms  and
conditions  then being stated by you. In addition we shall and hereby  authorize
the Manufacturer to issue all Credit Memos directly to you.

     We  acknowledge  that  the term  "Prime  Rate",  as used in the  Collateral
Documents in reference to the rate of interest  applicable  to loans to us, will
mean the average of the Prime Rates (the base rate for corporate  loans at large
U.S. money center  commercial banks) quoted in the Wall Street Journal under the
caption "Money Rates",  and agree that the interest rate applicable to our loans
from you will automatically  change from time to time effective upon each change
in the  published  Prime Rate.  We further agree that interest on our loans from
you will be calculated on the basis of a 360 day year but will be chargeable for
the actual days that principal is outstanding in the then current year.

     We have  informed  you  that we are  currently  operating  as a  debtor  in
possession  under the protection of Chapter 11 of the U.S.  Bankruptcy Code with
all of the rights and obligations so afforded a debtor in possession thereunder.
<PAGE>
     3. We acknowledge that our financial  arrangements  with you are completely
independent  of our  arrangements  with  Manufacturer,  and that neither you nor
Manufacturer  are an agent for or acting  on  behalf  of the  other.  We are not
relying,  in  our  understanding  with  you,  on  any  statements,  promises  or
representations,   oral  or  written,  made  by  Manufacturer,  whether  or  not
purportedly  on your behalf,  relating to the subject  matter  hereof and of our
loans with you. Although we may receive official literature, brochures and other
written materials disseminated by you through Manufacturer,  we expressly assume
the risk  that the  materials  so  received  are the  most  current,  up to date
materials then authorized by you to be disseminated.  None of our obligations to
you will be  affected  or  impaired,  or be  subject  to any  defense,  set-off,
counterclaim,  crossclaim or recoupment,  by reason of any claim which we now or
hereafter have against Manufacturer or its agents,  including without limitation
any claim for  breach of  express or implied  warranty  of title,  or  otherwise
related to the condition of the Collateral or our dealings with Manufacturer.

     4. As used herein, the following terms shall have the following meaning:

          a) "Inventory" means all present and future Inventory, as that term is
defined in the Rhode Island Uniform Commercial Code ("Code"),  together will all
parts and accessories, and all replacements, substitutions and additions thereof
or thereto.

          b) "Accounts" means all present and future  Accounts,  as that term is
defined in the Code.

          c)  "General   Intangibles"  means  all  present  and  future  General
Intangibles,  as that term is defined in the Code,  and shall  include,  without
limitation,  all Credit Memos and other sums due from  Manufacturer,  all books,
records,  ledgers,  journals,  check books, computer tapes and disks, print outs
and other  information  and sources of information,  and all licenses,  permits,
franchises,  tradenames  and other rights and  privileges  used or useful in the
conduct of our business and the sale of Inventory.

          d) "Equipment" means all present and future Equipment, as that term is
defined  in  the  CODE,  together  with  all  parts  and  accessories,  and  all
replacements, substitutions and additions thereof or thereto.

          e)  "Investment  Property"  means all  present  and future  Investment
Property, as that term is defined in the CODE.

          f)  "Proceeds"  means  present  and future  Proceeds,  as that term is
defined in the CODE, and shall include, without limitation, insurance payable by
reason of loss or damage to any of the Collateral.  All Proceeds  received by us
will be held in trust for you until  our  loans are paid,  and we will  promptly
deliver all Proceeds to you.

          g)  "Collateral"  means,  individually  and  collectively,  Inventory,
Accounts, General Intangibles, Equipment, Investment Property and Proceeds.

     5. a) In order to  secure  repayment  to you of each loan made by you to us
the proceeds of which enable us to acquire rights in or the use of Inventory, we
hereby grant to you a purchase money security  interest in such  Inventory,  the
Proceeds  thereof  and  all  General  Intangibles  related  thereto,  to  secure
repayment of such loan.  It is intended by this  subparagraph  (a) that only the
Inventory  so acquired,  with  Proceeds and related  General  Intangibles,  will
secure the loan the proceeds of which enabled us to acquire rights in or the use
of such Inventory.

          b) In order to secure repayment to you of all debts and liabilities we
may now or hereafter  have to you under this  Agreement or any other  agreement,
whether such debt or liability be obtained by you by assignment,  negotiation or
otherwise,  and whether  direct or indirect,  primary or secondary,  absolute or
contingent, or otherwise,  including but not limited to all loans made by you to
us to finance  the  purchase  of  Inventory,  we hereby  grant to you a security
interest in all of our Inventory,  Accounts, General Intangibles,  Equipment and
Investment  Property  no matter how  obtained  by us,  whether  now  existing or
hereafter acquired, and the Proceeds of all of the foregoing.

          c) All  payments  made by us will be deemed to be applied by you first
to the loan (i) the proceeds of which enabled us to acquire rights in or the use
of Inventory which we have previously sold and (ii) with the earliest due date.

     6. We hereby represent to you that all information provided by us to you in
connection  with our  application for each loan from you is and will be complete
and accurate in every respect.  WE WILL IMMEDIATELY NOTIFY YOU IN WRITING OF ANY
CHANGE IN ANY OF THIS INFORMATION.

     7. We will from time to time execute and/or deliver or cause to be executed
and/or  delivered  to you such  financing  statements,  amendments  to financing
statements,   continuation  statements,   documents  of  title,   manufacturers'
certificates of origin,  warehouse  receipts,  bills of lading,  vehicle titles,
waivers,  consents  and such  other  manner of  things,  and take all  manner of
actions,  as you may from time to time  request  which are in your sole  opinion
necessary or desirable in order to perfect, protect, maintain, continue, realize
and/or enforce your rights and security  interests  granted  herein.  This shall
include, without limitation, the written waiver by the landlord of each location
at which any Collateral is located. A carbon, photographic or other reproduction
of this Agreement shall be sufficient as a financing  statement and may be filed
in any public office as a financing statement.

     8.  We  will  maintain  the  Inventory  in  excellent,  salable  condition,
consistent with the highest standards in the industry,  and will comply with all
applicable  laws  relating  to our  use  thereof.  We will  provide  you or your
designated  representatives  with access,  at any time,  during normal  business
hours,  whether  announced  or  unannounced,  to  each  location  at  which  any
Collateral is located, to inspect and examine the Inventory and other Collateral
and business records,  including without  limitation all financial  records.  We
agree, at our sole cost, to keep all Inventory  insured against risks covered by
standard forms of fire, theft and extended  coverage and such other risks as may
be reasonably  required by you and under policies issued by an insurance company
or  companies  and in  amounts  satisfactory  to you.  You shall be named to the
extent your  interest  may appear under a Lender's  Loss Payable  Clause in such
policy,  which shall  provide that the insurance  cannot be canceled  without at
least  thirty  (30)  days  prior  written  notice to you and  shall  insure  you
notwithstanding any act or neglect on our part. At our expense, we shall furnish
you with evidence of the same in form satisfactory to you, and shall provide you
with a Certificate  thereof naming you as certificate  holder.  We will promptly
remit to you in the form received, with all necessary endorsements, any Proceeds
of such  insurance.  You may make and settle  claims and endorse our name on any
checks or drafts.  You may apply any Proceeds of insurance which may be received
by you  toward  payment of any  obligations  or  liabilities  owed to you by us,
whether or not then due, in such order of application as you may determine.

     Loss,  damage  or  destruction  of all or any of the  Collateral  shall not
affect or diminish our liabilities to you and we assume all  responsibility  and
risk for the existence,  character,  quality,  condition, value, and delivery of
Inventory.

     9. We will  pay  and/or  cause  to be paid  all  taxes,  levies  and  other
governmental  charges  and  assessments  payable  on  or  with  respect  to  the
Collateral and any premises at which the Collateral is located,  which if unpaid
may result in a lien or  imposition  thereon.  Such taxes,  levies,  charges and
assessments will be paid prior to the date that any penalty for late payment may
<PAGE>
be assessed  with  respect  thereto,  and if  requested  by you we will,  at our
expense,  provide  you  with  receipts  or other  evidence  of  payment  in form
satisfactory to you.

     10. We will not suffer or permit any lien, security interest, charge, claim
or encumbrance to be placed on any of the Collateral,  other than in your favor,
or suffer or permit any interest to exist  therein which is adverse to your own,
other  than the liens or  encumbrances  listed  on  Exhibit  A  attached  hereto
("Permitted  Liens") . We represent  that we are, and agree to remain,  the sole
and absolute owner of the  Collateral,  until sold in the ordinary course of our
business,  and are and will remain  qualified  under the terms of all applicable
laws and under our  dealership  arrangements  with  Manufacturer  to conduct our
business as  presently  conducted,  with all  necessary  governmental  and other
licenses, consents and authorizations having been obtained.

     11.  At your  option,  without  any  obligation  to do so,  you may pay and
discharge taxes, liens, levies, security interests or other encumbrances against
the  Collateral  except  Permitted  Liens,  may pay for insurance on and for the
maintenance  and  preservation  of the  Collateral and perform on our behalf any
other  obligation  required to be performed  by us  hereunder  but which we have
failed to so do. We shall  reimburse  you on demand for any payment  made or any
expense incurred by you pursuant to the authority  hereof,  with interest at the
highest  rate  chargeable  on any of our loans with you, and will pay you a late
charge  of 1.5% per  month of the  amount  due to you,  or the  highest  legally
permissible rate if lower.

     12.  We will  furnish  you such  information  regarding  our  business  and
financial  condition  as you may request  from time to time,  including  without
limitation   such   financial   statements,   in  such  form  and  bearing  such
certifications, as you shall require. We agree that you may audit or cause to be
audited  our books and  records at any and all  times,  during  normal  business
hours,  whether  announced  or  unannounced,  and to permit  you  access to each
location at which any of our General Intangibles are located.

     13.  We will  provide  you with  written  notice of the  following  matters
immediately upon the occurrence thereof:

          a) A change in any  information  provided by us to you herein,  in any
application  made by us in connection  with any loan,  or  otherwise,  including
without limitation, any change in the location of any Collateral or in any other
circumstances regarding the Collateral or our business operations;

          b) Loss,  theft,  or  substantial  damage or destruction of any of the
Collateral or related to our business operations generally; or

          c) Any other matter which might have a material  adverse affect on our
financial condition or operations or which, upon the giving of notice or passage
of time, or both, would result in an event of default by us hereunder.

     14.  Any one or more of the  following  shall be an event of  default by us
under this Agreement:

          a) Failure by us or any person jointly or otherwise  liable to you for
our obligations to you, as surety,  guarantor or otherwise  ("Other Obligor") to
pay any amount due you, as and when due,  contained  or referred to herein or in
any other instrument,  document,  or agreement to which we or such Other Obligor
are a party or by which we or such Other  Obligor are bound to you,  whether now
existing or hereafter created; or

          b)  Failure by us or any Other  Obligor to perform or comply  with any
other  obligation,  covenant or liability  contained or referred to herein or in
any other instrument,  document,  or agreement to which we or such Other Obligor
are a party or by which we or such Other  Obligor are bound to you,  whether now
existing or hereafter created,  and such failure,  if reasonably  susceptible of
cure, is not cured within fifteen (15) days of the occurrence thereof; or

          c) If any warranty,  representation, or statement made or furnished to
you by us or on our  behalf  or on  behalf of an Other  Obligor,  including  any
representation  made  on  our  behalf  by  Manufacturer,  proves  to  be  false,
misleading or incomplete in any respect; or

          d) Loss,  theft or  substantial  damage or  destruction  of any of the
Collateral, or the making of any levy, seizure, or attachment thereof or thereon
other than levies or attachments resulting from Permitted Liens; or

          e) Dissolution, merger, consolidation,  sale or other disposition of a
controlling  interest in our  ownership or of  substantially  all of our assets,
termination of existence, or the commencement of any proceeding by or against us
under Chapter 7 of the U.S. Bankruptcy Code; or

          f)  Failure  by  us  to  pay  any   obligation(s)  or   liability(ies)
whatsoever,  past,  present or future,  when due to any other  creditor,  or the
occurrence  of any event of  default by us under any  agreement  with any of our
respective creditors, including without limitation the occurrence of an event of
default  under any lease  relating to any premises upon which all or any part of
our Inventory or other Collateral is located provided,  however,  that while any
bankruptcy  automatic  stay is in effect,  any  default  under a  pre-bankruptcy
petition obligation shall not constitute an event of default hereunder unless or
until such other creditor obtains relief from such automatic stay; or

          g) If we give notice of a Bulk Sale or intended  Bulk Sale,  or call a
meeting  of our  respective  unsecured  creditors  or  offer  a  composition  or
extension to such creditors, or cease to operate our respective business.

     15. Upon the occurrence of an event of default, you shall have the right to
repossess the Inventory  and also any and all rights  available  under the Code,
including,  without limitation, the right to declare any and all unpaid balances
of  principal,  interest,  costs and expenses  arising out of any and all of our
obligations or liabilities to you,  whether past,  present or future,  direct or
indirect, matured or unmatured, liquidated or unliquidated,  immediately due and
payable without notice to or demand on us. We irrevocably  authorize you or your
agent to enter all premises to take  possession  of and remove the Inventory and
other Collateral and release you from any and all liability with respect to such
entry or removal. We shall in case of default,  if you so request,  assemble and
deliver the Inventory  and other  Collateral,  at our expense,  to a place to be
designated by you. We shall pay all of the costs you incur in the enforcement of
any of our obligations to you or the collection of any  liabilities  owed to you
by us, including, without limitation,  costs, expenses and reasonable attorneys'
fees. If any  notification  of intended  disposition  of any of the Inventory or
other  Collateral  is  required  by  law,  such  notification  shall  be  deemed
reasonably and properly  given if mailed by ordinary mail or overnight  delivery
service  at least  ten (10)  days  before  such  disposition,  postage  prepaid,
addressed to us, either at our address shown in this Agreement, or at such other
address as we may have designated to you in writing.

     16. To the extent  permitted  by  applicable  law, we authorize  you,  your
designee,  the Clerk of the Court, or any attorney of any Court, in the State of
Rhode  Island or any other  state,  to appear  for us at any time in any and all
actions  and to  confess  judgment  against  us for all sums  then  owed to you,
whether  or not  then  payable,  and/or  for the  recovery  of any or all of the
<PAGE>
Inventory in our  possession,  together  with  reasonable  attorneys  fees in an
amount  as  determined  by a court of  competent  jurisdiction..  Wherever  this
provision is prohibited,  unenforceable or unlawful,  it is deemed stricken from
this Agreement.

     17. Any law,  custom or usage to the  contrary  notwithstanding,  you shall
have the right at all times to enforce  the  covenants  and  provisions  of this
Agreement  in strict  accordance  with the  terms  hereof,  notwithstanding  any
conduct or custom on your part in refraining from so doing at any time or times.
Your  failure  at any  time to  invoke  your  rights  under  the  covenants  and
provisions of this Agreement  strictly in accordance  with the same shall not be
construed  as  having  created a custom  in any way or  manner  contrary  to the
specific  terms  and  provisions  of this  Agreement  or as having in any way or
manner  modified,  altered  or waived  the same.  Time is of the  essence in our
performance  hereunder  and  under all other  agreements  with you.  All of your
remedies are cumulative and not  alternative,  and can be exercised in any order
and in any manner, separately or simultaneously, and from time to time until all
liabilities and obligations to you are satisfied in full.

     18.  This  Agreement  may be  assigned  by you,  but we may not assign this
Agreement without your prior written consent. If you assign this Agreement,  you
shall have no further obligation  hereunder.  All of your rights hereunder shall
inure to the benefit of your  successors  and  assigns  and all our  obligations
shall bind our successors and assigns. If there be more than one party obligated
to you under this  Agreement,  their  obligations  hereunder  shall be joint and
several,  and the terms "we" "us" or "our" as used  herein  shall  refer to them
jointly and severally.

     19.  We   authorize   and  empower  you  or  your   employees,   agents  or
representatives,  on our behalf,  and in our name,  to  complete  and supply any
omission or blank  spaces in this  Agreement  and in any  documents or financing
statements  executed by us and including  amendments and  continuations  thereof
under the  Code;  to  execute  and/or  have  acknowledged  any form of  security
instruments,  notes, drafts and documents;  and to make any requisite affidavits
which may be  necessary  or  required  by you,  and/or  which you may  desire to
evidence or secure advances made by you pursuant to the terms of this Agreement.
All of the  foregoing  may be executed in such form and substance as you in your
sole discretion may deem necessary or proper, and this power of attorney,  being
coupled with an interest, is irrevocable.

     20. Our officers, by execution hereof, warrant and represent to you that we
are a duly formed  corporation  and are qualified to do business in the state(s)
in which our place(s) of business is (are) located; and, at a Board of Directors
meeting duly convened,  our officer(s)  were properly  authorized to execute and
deliver this Agreement and all other documents  whether  hereunder or otherwise;
that the  execution  and  delivery of this  Agreement  does not  contravene  the
Articles of Incorporation,  By-Laws, or any agreement, document or instrument to
which we are a party or by the terms of which we are bound.

     21. Any  provision or part thereof in this  Agreement  found upon  judicial
interpretation  or  construction to be prohibited by law shall be ineffective to
the extent of such prohibition,  without  invalidating the remaining  provisions
hereof. All words used shall be understood and construed to be of such gender or
number as the circumstances may reasonably require.

     22. We hereby  represent and warrant to you and your assigns that we are so
authorized,  subject  to final  bankruptcy  court  approval,  to make all of the
representations,  warranties and promises and to incur the obligations set forth
in this  Agreement  as a  debtor  in  possession  under  Chapter  11 of the U.S.
Bankruptcy  Code.  We further  represent  and  warrant  that no  action,  order,
approval or  authorization of our execution of this Agreement is required by any
law or court  other  than  that  already  obtained  by us or being  concurrently
obtained in connection with our execution of this Agreement.

     23. THIS AGREEMENT SHALL BE DEEMED  EFFECTIVE WHEN ACCEPTED AND EXECUTED BY
YOU IN THE STATE OF RHODE  ISLAND,  AND THIS  AGREEMENT  SHALL BE  CONSTRUED  IN
ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF RHODE ISLAND.

     24. AS AN INDEPENDENT  COVENANT, WE IRREVOCABLY CONSENT TO THE JURISDICTION
OF THE  COURTS OF THE STATE OF RHODE  ISLAND IN ANY AND ALL  ACTIONS  BETWEEN US
WHETHER UNDER THIS AGREEMENT OR OTHERWISE AND TO THE SERVICE OF PROCESS  THEREIN
BY CERTIFIED MAIL, RETURN RECEIPT  REQUESTED,  TO US AT THE ADDRESS AS SET FORTH
HEREIN  OR ON YOUR  RECORDS,  AND  IRREVOCABLY  WAIVE  JURY  TRIAL AND THE RIGHT
THERETO IN ANY AND ALL  ACTIONS  BETWEEN US,  WHETHER  UNDER THIS  AGREEMENT  OR
OTHERWISE.

     WE HEREBY ACKNOWLEDGE THAT WE HAVE READ AND UNDERSTAND ALL OF THE TERMS AND
PROVISIONS OF THIS AGREEMENT.

     Intending    to   be   legally    bound,    signed   and    delivered    on
_____________________________, ________:

EBIZ Enterprises, Inc.
----------------------------------
(Corporate Name)

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

Attest: /s/ Mike Colesante
        --------------------------
               Secretary

Jones Business Systems, Inc.
----------------------------------
(Corporate Name)

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

Attest: /s/ Mike Colesante
        --------------------------
               Secretary
<PAGE>
(CORPORATE SEAL)

                                      APPROVED AND ACCEPTED

                                      TEXTRON FINANCIAL CORPORATION
                                      (Secured Party)

                                      BY:   /s/ Pat Smith
                                            ------------------------------------

                                      DATE: 11/14/01
                                            ------------------------------------

Tax ID#:  84-1075269
Filename: DLSA broad
<PAGE>
EXHIBIT " A" TO DEALER LOAN AND SECURITY AGREEMENT

First  priority  security  interest  in all of the  postpetition  assets of Ebiz
Enterprises,  Inc.  ("Ebiz") and Jones Business Systems Inc. ("JBSI") granted in
favor of The Canopy Group, Inc. ("Canopy") pursuant to the terms of that certain
Stipulation  Providing  for Use of Cash  Collateral  and Adequate  Protection of
Secured  Creditor's Lien dated September ____, 2001 by and between Canopy,  Ebiz
and JBSI.

Prepetition,  first priority  security interest in all of the assets of JBSI and
second position  security interest in all of the assets of Ebiz granted in favor
of Canopy.

Prepetition,  first  priority  security  interest  in all of the  assets of Ebiz
granted in favor of Ingram Micro Inc.

Prepetition,  second priority security interest in all of the assets of JBSI and
third position  security  interest in all of the assets of Ebiz granted in favor
of Caldera Systems, Inc.

A security interest granted to The Canopy Group, Inc. in the accounts receivable
generated,  all  inventory  acquired  and the  proceeds  of same,  and all other
personal property of Ebiz and JBSI acquired  post-petition  (including,  but not
limited to goods,  general  intangibles,  and  fixtures)  to secure any  advance
resulting  from a draw  on the  Irrevocable  Standby  Letter  of  Credit  issued
pursuant to the terms of that certain  Agreement to Provide Letter of Credit and
Financial  Accommodations  dated October ____, 2001 by and between Canopy, Ebiz,
and JBSI.

A  POTENTIAL  security  interest  in all of the assets of Ebiz and JBSI having a
priority equal to that of Canopy which may be granted to First Financial  Equity
Corporation,  as agent  for a group of  lenders  that may  provide  postpetition
financing in the amount of  $1,100,000  to Ebiz and JBSI,  upon  approval by the
Bankruptcy Court after notice and hearing.
<PAGE>
        AMENDMENT TO DEALER LOAN AND SECURITY AGREEMENT (THE "AGREEMENT")
                      DATED _________________________, 2001
                                     BETWEEN
                      TEXTRON FINANCIAL CORPORATION ("TFC")
                                       AND
                       EBIZ ENTERPRISES, INC. ("OBLIGOR")
                                       AND
                     JONES BUSINESS SYSTEMS INC. ("OBLIGOR")

The Agreement is amended by adding the following paragraphs:

1.   As security for the  performance  of all  obligations of Obligor and/or its
     affiliates owing to TFC and/or its affiliates, including the obligations of
     Obligor set forth in the  Agreement,  whether  contingent or otherwise (the
     "Obligations"),  Obligor  agrees to cause to be issued to TFC,  by a United
     States bank  acceptable to TFC, an Irrevocable  Standby Letter of Credit in
     form and substance satisfactory to TFC (the "Credit").  The Credit shall be
     in an amount of not less than  $500,000.00 and shall provide for indefinite
     annual  automatic  renewals  unless TFC  receives  written  notice from the
     issuer of the  Credit,  no less than sixty (60) days prior to the  Credit's
     then applicable expiration date, of such issuer's election not to renew the
     Credit (the "Notice").

2.   TFC's  receipt of the Notice  shall  constitute  an event of default on the
     part of Obligor under all agreements  between Obligor and/or its affiliates
     and TFC and/or its  affiliates,  including the Agreement,  entitling TFC to
     draw  on the  Credit  and to  exercise  any  and all  remedies  and  rights
     available to TFC under the Agreement or otherwise,  the foregoing Paragraph
     1, within thirty (30) days  following  TFC's receipt of the Notice.  In the
     event that the Obligations are contingent,  either in whole or in part, TFC
     shall hold the proceeds of any such draw  remaining  after  application  of
     such proceeds to matured  Obligations  (whether  matured by acceleration or
     otherwise) as security for the continuing Obligations.

3.   TFC agrees that,  upon receipt of written notice from any secured  creditor
     of Obligor is in default under the terms of any agreement with such secured
     creditor effective after the date of Obligor's  September , 2001 bankruptcy
     petition,  TFC will not make any  additional  loans to  Obligor  until such
     secured party has notified TFC in writing that such default has been cured.

     TEXTRON FINANCIAL CORPORATION            EBIZ ENTERPRISES, INC.

     By: /s/ Pat Smith                        By: /s/ Bruce A. Parsons
         -------------------------------          ------------------------------

     Name:  ____________________________      Name:  ___________________________

     Title: ____________________________      Title:  __________________________

     Date:  ____________________________      Date:  ___________________________

                                              JONES BUSINESS SYSTEMS, INC.

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

                                              Name:  ___________________________

                                              Title:  __________________________

                                              Date:  ___________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]