SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------------
SCHEDULE 13D
Under the Securities Exchange Act of 1934
Ebiz Enterprises, Inc.
---------------------------------------------
(Name of Issuer)
Common Stock, $0.001 par value
--------------------------------------
(Title of Class of Securities)
(CUSIP Number)
Jeffrey Perry, Esq.
Ebiz Enterprises, Inc.
15695 North 83rd Way
Scottsdale, Arizona 85260
(480) 778-1000
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
October 10, 2000
----------------------------------------
(Date of Event which Requires
Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b) (3) or (4), check the following
box |_|.
(Continued on following page(s))
<PAGE>
Cusip No.
----------- --------------------------------------------------------------------
1
NAME OF REPORTING PERSON
Bomar Shaw Family Trust, LLC
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
----------- --------------------------------------------------------------------
2 (a) [ ]
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (b) [x]
----------- --------------------------------------------------------------------
3
SEC USE ONLY
----------- --------------------------------------------------------------------
4
SOURCE OF FUNDS
SC
----------- --------------------------------------------------------------------
5 |_|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
----------- --------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
Colorado
----------- --------------------------------------------------------------------
NUMBER OF 7
SHARES SOLE VOTING POWER
1,188,000
-------- ---------------------------------------------
BENEFICIALLY 8
OWNED BY SHARED VOTING POWER
5,691,869 *
-------- ---------------------------------------------
EACH 9
REPORTING SOLE DISPOSITIVE POWER
1,188,000
-------- ---------------------------------------------
PERSON 10
WITH SHARED DISPOSITIVE POWER
0
------------------------- -------- ---------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,879,869
----------- --------------------------------------------------------------------
12 |_|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
----------- --------------------------------------------------------------------
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.1%
----------- --------------------------------------------------------------------
14
TYPE OF REPORTING PERSON
OO
----------- --------------------------------------------------------------------
* The filing of this Schedule 13D is not, and shall not be construed as, an
admission that Bomar Shaw Family Trust, LLC beneficially owns any of the shares
of Ebiz common stock for which it is listed as having shared voting power.
<PAGE>
Cusip No.
----------- --------------------------------------------------------------------
1
NAME OF REPORTING PERSON
MV3LP, LLLP
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
----------- --------------------------------------------------------------------
2 (a) [ ]
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (b) [x]
----------- --------------------------------------------------------------------
3
SEC USE ONLY
----------- --------------------------------------------------------------------
4
SOURCE OF FUNDS
SC
----------- --------------------------------------------------------------------
5 |_|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
----------- --------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
Colorado
----------- --------------------------------------------------------------------
NUMBER OF 7
SHARES SOLE VOTING POWER
2,176,000
-------- ---------------------------------------------
BENEFICIALLY 8
OWNED BY SHARED VOTING POWER
4,703,869*
-------- ---------------------------------------------
EACH 9
REPORTING SOLE DISPOSITIVE POWER
2,176,000
-------- ---------------------------------------------
PERSON 10
WITH SHARED DISPOSITIVE POWER
0
------------------------- -------- ---------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,879,869
----------- --------------------------------------------------------------------
12 |_|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
----------- --------------------------------------------------------------------
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.1%
----------- --------------------------------------------------------------------
14
TYPE OF REPORTING PERSON
PN
----------- --------------------------------------------------------------------
* The filing of this Schedule 13D is not, and shall not be construed as, an
admission that MV3LP, LLLP beneficially owns any of the shares of Ebiz common
stock for which it is listed as having shared voting power.
<PAGE>
Cusip No.
----------- --------------------------------------------------------------------
1
NAME OF REPORTING PERSON
Hayjour Family Limited Partnership
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
----------- --------------------------------------------------------------------
2 (a) [ ]
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (b) [x]
----------- --------------------------------------------------------------------
3
SEC USE ONLY
----------- --------------------------------------------------------------------
4
SOURCE OF FUNDS
OO
----------- --------------------------------------------------------------------
5 |_|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
----------- --------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
Arizona
----------- --------------------------------------------------------------------
NUMBER OF 7
SHARES SOLE VOTING POWER
1,703,212
-------- ---------------------------------------------
BENEFICIALLY 8
OWNED BY SHARED VOTING POWER
5,176,657
-------- ---------------------------------------------
EACH 9
REPORTING SOLE DISPOSITIVE POWER
1,703,212
-------- ---------------------------------------------
PERSON 10
WITH SHARED DISPOSITIVE POWER
0
------------------------- -------- ---------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,879,869
----------- --------------------------------------------------------------------
12 |_|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
----------- --------------------------------------------------------------------
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.1%
----------- --------------------------------------------------------------------
14
TYPE OF REPORTING PERSON
PN
----------- --------------------------------------------------------------------
* The filing of this Schedule 13D is not, and shall not be construed as, an
admission that Hajour Family Limited Partnership beneficially owns any of the
shares of Ebiz common stock for which it is listed as having shared voting
power.
<PAGE>
Cusip No.
----------- --------------------------------------------------------------------
1
NAME OF REPORTING PERSON
Kona Investments Limited Partnership
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
----------- --------------------------------------------------------------------
2 (a) [ ]
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (b) [x]
----------- --------------------------------------------------------------------
3
SEC USE ONLY
----------- --------------------------------------------------------------------
4
SOURCE OF FUNDS
OO
----------- --------------------------------------------------------------------
5 |_|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
----------- --------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
Arizona
----------- --------------------------------------------------------------------
NUMBER OF 7
SHARES SOLE VOTING POWER
1,704,212
-------- ---------------------------------------------
BENEFICIALLY 8
OWNED BY SHARED VOTING POWER
5,175,657
-------- ---------------------------------------------
EACH 9
REPORTING SOLE DISPOSITIVE POWER
1,704,212
-------- ---------------------------------------------
PERSON 10
WITH SHARED DISPOSITIVE POWER
0
------------------------- -------- ---------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,879,869
----------- --------------------------------------------------------------------
12 |_|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
----------- --------------------------------------------------------------------
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.1%
----------- --------------------------------------------------------------------
14
TYPE OF REPORTING PERSON
PN
----------- --------------------------------------------------------------------
* The filing of this Schedule 13D is not, and shall not be construed as, an
admission that Kona Investments Limited Partnership beneficially owns any of the
shares of Ebiz common stock for which it is listed as having shared voting
power.
<PAGE>
Cusip No.
----------- --------------------------------------------------------------------
1
NAME OF REPORTING PERSON
Marion Shaw
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
----------- --------------------------------------------------------------------
2 (a) [ ]
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (b) [x]
----------- --------------------------------------------------------------------
3
SEC USE ONLY
----------- --------------------------------------------------------------------
4
SOURCE OF FUNDS
SC
----------- --------------------------------------------------------------------
5 |_|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
----------- --------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
----------- --------------------------------------------------------------------
NUMBER OF 7
SHARES SOLE VOTING POWER
1,188,000
-------- ---------------------------------------------
BENEFICIALLY 8
OWNED BY SHARED VOTING POWER
5,691,869*
-------- ---------------------------------------------
EACH 9
REPORTING SOLE DISPOSITIVE POWER
1,188,000
-------- ---------------------------------------------
PERSON 10
WITH SHARED DISPOSITIVE POWER
0
------------------------- -------- ---------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,879,869
----------- --------------------------------------------------------------------
12 |_|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
----------- --------------------------------------------------------------------
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.1%
----------- --------------------------------------------------------------------
14
TYPE OF REPORTING PERSON
IN
----------- --------------------------------------------------------------------
* The filing of this Schedule 13D is not, and shall not be construed as, an
admission that Marion Shaw beneficially owns any of the shares of Ebiz common
stock for which it is listed as having shared voting power.
<PAGE>
Cusip No.
----------- --------------------------------------------------------------------
1
NAME OF REPORTING PERSON
Debi S. Rassas
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
----------- --------------------------------------------------------------------
2 (a) [ ]
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (b) [x]
----------- --------------------------------------------------------------------
3
SEC USE ONLY
----------- --------------------------------------------------------------------
4
SOURCE OF FUNDS
OO
----------- --------------------------------------------------------------------
5 |_|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
----------- --------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
----------- --------------------------------------------------------------------
NUMBER OF 7
SHARES SOLE VOTING POWER
1,703,212
-------- ---------------------------------------------
BENEFICIALLY 8
OWNED BY SHARED VOTING POWER
5,176,657*
-------- ---------------------------------------------
EACH 9
REPORTING SOLE DISPOSITIVE POWER
1,703,212
-------- ---------------------------------------------
PERSON 10
WITH SHARED DISPOSITIVE POWER
0
------------------------- -------- ---------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,879,869
----------- --------------------------------------------------------------------
12 |_|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
----------- --------------------------------------------------------------------
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.1%
----------- --------------------------------------------------------------------
14
TYPE OF REPORTING PERSON
IN
----------- --------------------------------------------------------------------
* The filing of this Schedule 13D is not, and shall not be construed as, an
admission that Debi S. Rassas beneficially owns any of the shares of Ebiz common
stock for which it is listed as having shared voting power.
<PAGE>
Cusip No.
----------- --------------------------------------------------------------------
1
NAME OF REPORTING PERSON
Mark Bolzern
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
----------- --------------------------------------------------------------------
2 (a) [ ]
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (b) [x]
----------- --------------------------------------------------------------------
3
SEC USE ONLY
----------- --------------------------------------------------------------------
4
SOURCE OF FUNDS
SC
----------- --------------------------------------------------------------------
5 |_|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
----------- --------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
----------- --------------------------------------------------------------------
NUMBER OF 7
SHARES SOLE VOTING POWER
2,180,500
-------- ---------------------------------------------
BENEFICIALLY 8
OWNED BY SHARED VOTING POWER
4,699,369*
-------- ---------------------------------------------
EACH 9
REPORTING SOLE DISPOSITIVE POWER
2,180,500
-------- ---------------------------------------------
PERSON 10
WITH SHARED DISPOSITIVE POWER
------------------------- -------- ---------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,879,869
----------- --------------------------------------------------------------------
12 |_|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
----------- --------------------------------------------------------------------
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.1%
----------- --------------------------------------------------------------------
14
TYPE OF REPORTING PERSON
IN
----------- --------------------------------------------------------------------
* The filing of this Schedule 13D is not, and shall not be construed as, an
admission that Mark Bolzern beneficially owns any of the shares of Ebiz common
stock for which it is listed as having shared voting power.
<PAGE>
Cusip No.
----------- --------------------------------------------------------------------
1
NAME OF REPORTING PERSON
Stephen C. Herman
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
----------- --------------------------------------------------------------------
2 (a) [ ]
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (b) [x]
----------- --------------------------------------------------------------------
3
SEC USE ONLY
----------- --------------------------------------------------------------------
4
SOURCE OF FUNDS
OO
----------- --------------------------------------------------------------------
5 |_|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
----------- --------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
----------- --------------------------------------------------------------------
NUMBER OF 7
SHARES SOLE VOTING POWER
1,704, 212
-------- ---------------------------------------------
BENEFICIALLY 8
OWNED BY SHARED VOTING POWER
5,175,657*
-------- ---------------------------------------------
EACH 9
REPORTING SOLE DISPOSITIVE POWER
1,704, 212
-------- ---------------------------------------------
PERSON 10
WITH SHARED DISPOSITIVE POWER
0
------------------------- -------- ---------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,879,869
----------- --------------------------------------------------------------------
12 |_|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
----------- --------------------------------------------------------------------
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.1%
----------- --------------------------------------------------------------------
14
TYPE OF REPORTING PERSON
IN
----------- --------------------------------------------------------------------
* The filing of this Schedule 13D is not, and shall not be construed as, an
admission that Stephen C. Herman beneficially owns any of the shares of Ebiz
common stock for which it is listed as having shared voting power.
<PAGE>
Cusip No.
----------- --------------------------------------------------------------------
1
NAME OF REPORTING PERSON
Jeffrey I. Rassas
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
----------- --------------------------------------------------------------------
2 (a) [ ]
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (b) [x]
----------- --------------------------------------------------------------------
3
SEC USE ONLY
----------- --------------------------------------------------------------------
4
SOURCE OF FUNDS
OO
----------- --------------------------------------------------------------------
5 |_|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
----------- --------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
----------- --------------------------------------------------------------------
NUMBER OF 7
SHARES SOLE VOTING POWER
1,703,212
-------- ---------------------------------------------
BENEFICIALLY 8
OWNED BY SHARED VOTING POWER
5,176,657*
-------- ---------------------------------------------
EACH 9
REPORTING SOLE DISPOSITIVE POWER
1,703,212
-------- ---------------------------------------------
PERSON 10
WITH SHARED DISPOSITIVE POWER
0
------------------------- -------- ---------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,879,869
----------- --------------------------------------------------------------------
12 |_|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
----------- --------------------------------------------------------------------
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.1%
----------- --------------------------------------------------------------------
14
TYPE OF REPORTING PERSON
IN
----------- --------------------------------------------------------------------
* The filing of this Schedule 13D is not, and shall not be construed as, an
admission that Jeffrey I. Rassas beneficially owns any of the shares of Ebiz
common stock for which it is listed as having shared voting power.
<PAGE>
Cusip No.
----------- --------------------------------------------------------------------
1
NAME OF REPORTING PERSON
David Shaw
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
----------- --------------------------------------------------------------------
2 (a) [ ]
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (b) [x]
----------- --------------------------------------------------------------------
3
SEC USE ONLY
----------- --------------------------------------------------------------------
4 SC
SOURCE OF FUNDS
SC, PF
----------- --------------------------------------------------------------------
5 |_|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
----------- --------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
----------- --------------------------------------------------------------------
NUMBER OF 7
SHARES SOLE VOTING POWER
1,291,945
-------- ---------------------------------------------
BENEFICIALLY 8
OWNED BY SHARED VOTING POWER
5,587,924*
-------- ---------------------------------------------
EACH 9
REPORTING SOLE DISPOSITIVE POWER
1,291,945
-------- ---------------------------------------------
PERSON 10
WITH SHARED DISPOSITIVE POWER
------------------------- -------- ---------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,879,869
----------- --------------------------------------------------------------------
12 |_|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
----------- --------------------------------------------------------------------
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.1%
----------- --------------------------------------------------------------------
14
TYPE OF REPORTING PERSON
IN
----------- --------------------------------------------------------------------
* The filing of this Schedule 13D is not, and shall not be construed as, an
admission that David Shaw beneficially owns any of the shares of Ebiz common
stock for which it is listed as having shared voting power.
<PAGE>
Item 1. Security and Issuer.
This statement on Schedule 13D (this "Schedule 13D") relates to the
common stock, $0.001 par value (the "Common Stock"), of Ebiz Enterprises, Inc. a
Nevada corporation (the "Company"). The address of the Company's principal
executive offices is 15695 North 83rd Way, Scottsdale, Arizona 85260.
Item 2. Identity and Background.
(a), (b), (c) and (f)
This Schedule 13D is being filed by Bomar Shaw Family Trust, LLC,
MP3LP, LLLP, Hayjour Family Limited Partnership, Kona Investments Limited
Partnership, Jeffrey I. Rassas, Debi S. Rassas, Stephen C. Herman, David S.
Shaw, Marion Shaw and Mark Bolzern (the "Reporting Persons"). The name,
residence or business address, principal occupation or employment and the name,
principal business, and address of any corporation or other organization in
which such employment is conducted, for each natural person reporting beneficial
ownership hereunder, are set forth in Schedule 1 attached hereto, which is
incorporated herein by reference. To the knowledge of the Reporting Persons,
each of the persons named on Schedule 1 is a United States citizen.
Bomar Shaw Family Trust, LLC is a limited liability company organized
under the laws of the State of Colorado. It is a family trust and the address of
its principal business and office is c/o Ebiz Enterprises, Inc., 13750 East Rice
Place, Suite 100, Aurora, Colorado.
MP3LP, LLLP is a limited liability limited partnership organized under
the laws of the State of Colorado. It serves as an investment vehicle and the
address of its principal business and office is c/o Ebiz Enterprises, Inc.,
13750 East Rice Place, Suite 100, Aurora, Colorado.
Hayjour Family Limited Partnership is a limited partnership organized
under the laws of the State of Arizona. It serves as an investment vehicle and
the address of its principal business and office is c/o Ebiz Enterprises, Inc.,
13750 East Rice Place, Suite 100, Aurora, Colorado.
Kona Investments Limited Partnership is a limited partnership organized
under the laws of the State of Arizona. It serves as an investment vehicle and
the address of its principal business and office is c/o Ebiz Enterprises, Inc.,
13750 East Rice Place, Suite 100, Aurora, Colorado.
(d) and (e)
During the last five years, none of the Reporting Persons have been (i)
convicted in a criminal proceeding or are a named subject of a pending criminal
proceeding (excluding traffic violations or similar misdemeanors) or (ii) a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding were or are subject to a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, federal or state securities laws or finding
any violation of such laws.
Item 3. Source and Amount of Funds or Other Consideration.
Mark Bolzern, David S. Shaw, Marion Shaw, Bomar Shaw Family Trust, LLC
and MV3LP, LLLP acquired beneficial ownership of the Common Stock reported on
hereunder on October 10, 2000 pursuant to the closing of the merger (the
"Merger") contemplated by the Agreement and Plan of Merger, as amended (the
"Merger Agreement") attached hereto as Exhibits 1 and 2 and incorporated herein
by reference, dated as of August 7, 2000, by and among the Company, a
wholly-owned subsidiary of the Company and LinuxMall.com, Inc., a Delaware
corporation ("LMI"). Pursuant to the Merger, all of the Reporting Persons'
security holdings in LMI were converted into shares of Common Stock.
Under the terms of the Merger Agreement, the Company expanded the size
of its Board of Directors from two to seven members. The Company will fill 5 of
such 7 directorships by appointing 2 inside Directors as directed by LMI, acting
through its Chief Executive Officer, and 3 outside Directors as mutually agreed
upon by the Company and LMI, acting through their respective Chief Executive
Officers. In addition, certain employees, consultants and/or sub-contractors of
LMI have agreed to receive a portion of their compensation for services rendered
to LMI, whether such compensation is accrued or unaccrued, in the form of shares
of Common Stock, pursuant to the terms of a Compensation Agreement, a form of
which is attached hereto as Exhibit 3 and incorporated by reference herein.
The Merger Agreement also contemplates that all of the outstanding
Options of LMI will be assumed by the Company. Messrs. Bolzern and Shaw hold LMI
options which, under the terms of the LMI 2000 Incentive Stock Option Plan, and
the LinuxMall.com, Inc. 2000 Stock Option Plan Notice of Grant, forms of each
attached hereto as Exhibits 9 and 10 respectively, and incorporated herein by
reference, became exercisable upon the event of the Merger. These options,
therefore are currently exercisable for shares of Common Stock.
In addition, Mr. Shaw entered into an Agreement of Purchase and Sale of
Membership Interest (the "Purchase Agreement"), attached hereto as Exhibit 7 and
incorporated herein by reference, with David Gale ("Seller"), dated October 4,
2000, whereby Mr. Shaw agreed to purchase Seller's entire membership interest
(the "Interest") in LM.com, LLC, a Colorado limited liability company ("LM").
Pursuant to the Merger Agreement, Seller's membership interest in LM represents
the right to receive 45,445 shares of Common Stock. Mr. Shaw will use personal
funds to purchase approximately 18.7% of the Interest and the remaining portion
will be purchased by unaffiliated third parties. The price per share of Common
Stock will be approximately $0.88.
The Reporting Persons became the beneficial owners of the Common Stock
held by each Reporting Person pursuant to a Shareholder Voting Agreement and
Proxy (the "Shareholder Agreement"), a form of which is attached hereto as
Exhibit 6 and incorporated herein by reference, entered into in connection with
the Merger. The Shareholder Agreement provides that the signor thereof will vote
all shares of Common Stock held by it in favor of such persons as are nominated
by the Board of Directors of the Company pursuant to Section 2.2 of the Merger
Agreement. For the purpose of voting such shares, the Shareholder Agreement
appoints Mr. Rassas, Mr. Herman, Mr. Shaw and Ray Goshorn as proxies to vote all
of the shares of Common Stock governed by the Shareholder Agreement.
Item 4. Purpose of the Transaction.
The purpose of the transactions was to merge LMI with and into the
Company, with the Company as the surviving corporation. Except as described in
Item 3 above, which is hereby incorporated by reference herein, the Reporting
Persons have no other plans or proposals which relate to or would result in any
of the transactions described in subparagraphs (a) though (j) of Item 4 of
Schedule 13D.
Each of the Reporting Persons intends to evaluate and review the
Company and its business, assets, corporate structure, capitalization,
operations, properties, polices, management and personnel with a view towards
determining how to optimally realize any potential benefits which arise from the
Merger. Accordingly, each Reporting Person reserves the right to change any
plans and intentions at any time, as such reporting person deems necessary and
appropriate.
Item 5. Interest in Securities of the Issuer.
(a) The Reporting Persons as a group beneficially own 6,879,869 shares of Common
Stock, which represent 31.1% of the outstanding Common Stock. The following
individuals comprise the group and contribute to the number of shares of Common
Stock beneficially owned by the group the following number of shares of Common
Stock representing the following percentages of outstanding shares:
<TABLE>
<CAPTION>
Percentage of Shares
Outstanding
Name Number of Shares
<S> <C> <C>
Mark Bolzern 2,180,500* 9.9%
Stephen C. Herman 1,704,212 7.7%
Jeffey I. Rassas 1,703,212 7.7%
Debi S. Rassas 1,703,212 7.7%
David S. Shaw 1,291,945* 5.8%
Marion Shaw 1,188,000 5.4%
Bomar Shaw Family Trust, LLC 1,188,000 5.4%
MV3LP, LLLP 2,176,000 9.9%
Hayjour Family Limited Partnership 1,703,212 7.7%
Kona Investments Limited Partnership 1,704,212 7.7%
</TABLE>
* Includes options currently exercisable for 4,500 shares of Common Stock.
** Includes options currently exercisable for 58,500 of Common Stock and 45,445
shares which may be acquired within 60 days.
(b) The Reporting Persons directly and indirectly have sole power to vote and
direct the disposition of shares of Common Stock as follows:
Name Number of Shares
---- ----------------
Mark Bolzern 2,180,500
Stephen C. Herman 1,704,212
Jeffey I. Rassas 1,703,212
Debi S. Rassas 1,703,212
David S. Shaw 1,291,945
Marion Shaw 1,188,000
Bomar Shaw Family Trust, LLC 1,188,000
MV3LP, LLLP 2,176,000
Hayjour Family Limited Partnership 1,703,212
Kona Investments Limited Partnership 1,704,212
(c) None, other than the transactions described in Item 3.
(d) Inapplicable.
(e) Inapplicable.
Item 6. Contracts, Arrangements, Understandings or Relationships With
Respect to Securities of the Issuer.
The answer to question 3 is hereby incorporated by reference herein.
In connection with the Merger, LMI entered into a Registration Rights
Agreement with the Company on behalf of and for the benefit of the stockholders
and debenture holders of LMI, which provides that for any registration by the
Company of Common Stock six (6) months after the Merger, except i) a
registration relating solely to employee benefit plans and (ii) a registration
relating solely to Rule 145 under the Securities Act, the Company will use its
best efforts to include in such registration the Common Stock held by the
security holders of LMI who were holders of record as of the record date for the
Merger.
In addition, in connection with the Merger, Messrs. Herman and Rassas
entered into a Lock-up Letter pursuant to which they each agreed that for a
period of one year from the Closing Date (as defined in the Merger Agreement),
they will not offer or sell, directly or indirectly, shares of Common Stock,
including any other securities that are convertible into or exercisable or
exchangeable for, or that represents a right to purchase or receive, Common
Stock during the first quarter of such year and thereafter not in an amount in
excess of 25% per quarter, beginning after the first quarter of such one year
period, of the number of shares of Common Stock which they would be permitted to
sell pursuant to Rule 144 of the Securities Act of 1933, as amended.
Each of the documents filed as exhibits hereto are hereby incorporated
by reference in response to this Item 6.
Item 7. Material to be Filed as Exhibits.
Exhibit Description
1 Agreement and Plan of Merger, dated as of August 7, 2000, by and among
Ebiz Enterprises, Inc., a Nevada corporation, LinuxMall.com, Inc., a
Delaware corporation, and Linux Mall Acquisition, Inc., a Delaware
corporation.
2 Form of First Amendment to Agreement and Plan of Merger, dated as of
October __, 2000.
3 Form of Compensation Agreement.
4 Form of Registration Rights Agreement, by and among Ebiz Enterprises,
Inc., a Nevada corporation, and LinuxMall.com, Inc., a Delaware
corporation.
5 Form of Lock-up Letter dated as of October 10, 2000.
6 Form of Shareholder Voting Agreement and Proxy.
7 Agreement for Purchase and Sale of Member Interest dated October 4,
2000.
8 Agreement of Joint Filing, dated October 20, 1999.
9 Form of LinuxMall.com, Inc 2000 Incentive Stock Option Plan.
10 Form of LinuxMall.com, Inc. 2000 Stock Option Plan Notice of Grant.
<PAGE>
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: October 20, 2000
/s/ Mark Bolzern
------------------
Name: Mark Bolzern
/s/ Stephen C. Herman
-----------------------
Name: Stephen C. Herman
/s/ Jeffrey I. Rassas
-----------------------
Name: Jeffrey I. Rassas
/s/ Debi S. Rassas
--------------------
Name: Debi S. Rassas
/s/ David S. Shaw
-------------------
Name: David S. Shaw
/s/ Marion Shaw
-----------------
Name: Marion Shaw
Bomar Shaw Family Trust, LLC
By: /s/ Marion Shaw
----------------
Name: Marion Shaw
Title: General Partner
MV3LP, LLLP
By: /s/ Mark Bolzern
-----------------
Name: Mark Bolzern
Title: General Partner
Hayjour Family Limited Partnership
By: /s/ Debi S. Rassas
-------------------
Name: Deborah Rassas
Title: General Partner
By: /s/ Jeffrey I. Rassas
----------------------
Name: Jeffrey I. Rassas
Title: General Partner
<PAGE>
Kona Investments Limited Partnership
By: /s/ Steven C. Herman
---------------------
Name: Steven C. Herman
Title: General Partner
<PAGE>
Schedule I
Reporting Persons
<TABLE>
<CAPTION>
Name, Principal Business and Address
Principal Occupation and Business Address or of any Organization in Which
Name Residence* Employment is Conducted*
------------------- ----------------------------------------------- -----------------------------------
<S> <C>
Mark Bolzern Founder, LinuxMall.com, Inc. 13750 East Rice Place, Suite 100,
13750 East Rice Place, Suite 100, Aurora, Aurora, Colorado.
Colorado.
Stephen C. Herman Chief Operating Officer
Jeffrey I. Rassas Chairman and Chief Marketing Officer
Debi S. Rassas General Partner, Hajour Family Limited c/o Ebiz Enterprises, Inc., 13750
Partnership East Rice Place, Suite 100, Aurora,
c/o Ebiz Enterprises, Inc., 13750 East Rice Colorado.
Place, Suite 100, Aurora, Colorado.
David S. Shaw Chief Executive Officer 13750 East Rice Place, Suite 100,
13750 East Rice Place, Suite 100, Aurora, Aurora, Colorado.
Colorado.
Marion Shaw General Partner, Bomar Shaw Family Trust, LLC c/o Ebiz Enterprises, Inc., 13750
c/o Ebiz Enterprises, Inc., 13750 East Rice East Rice Place, Suite 100, Aurora,
Place, Suite 100, Aurora, Colorado. Colorado.
</TABLE>
* Unless otherwise indicated, each person whose name appears in this Schedule 1
is employed by Ebiz Enterprises, Inc, a Nevada corporation (the "Company") at
the principal executive offices of the Company with the address as appears in
Item 1 of the Schedule 13D to which this Schedule 1 is attached. The principal
business of the Company is as described in "Item 1 Description of Business" of
its Annual Report on Form 10KSB filed with the Securities and Exchange
Commission on October 13, 2000 and incorporated herein by reference.
