Document:

FINANCIAL SERVICES AGREEMENT

          This Agreement (this "Agreement") is made as of this 25th day of
January 2000, by and among Coyote Network Systems, Inc., a Delaware corporation
with its principal office located in Westlake Village, California ("CNSI"),
Coyote Technologies, LLC, a California limited liability company with its
principal office located in Westlake Village, California ("CTL"), First Venture
Leasing, LLC, a Delaware limited liability company with its principal office
located in Stamford, Connecticut ("First Venture") and Coyote Leasing, LLC, a
Delaware limited liability company with its principal office located in
Stamford, Connecticut (the "Company").

                                 R E C I T A L S

          WHEREAS, each of CNSI and CTL seeks to arrange financing under credit
programs for their Customers;

          WHEREAS, each of CNSI and CTL seeks to form an alliance with another
company possessing funding capabilities and expertise in the area of systems
management, credit programs, design, licensing and leasing programs to maximize
efficiencies and create economies of scale necessary to create and develop
credit programs for their Customers;

          WHEREAS, First Venture is engaged in the business of designing and
implementing U.S. and foreign vendor leasing and financing programs and desires
to provide financing to CNSI and CTL Customers;

          WHEREAS, First Venture has formed the Company, which will offer
certain leasing and credit programs to CNSI and CTL Customers and create and
develop new financing facilities and programs to be offered to CNSI and CTL
Customers and efficiently manage and operate such financing programs;

          NOW, THEREFORE, in consideration of these premises and the mutual
covenants set forth herein, the parties hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

          The following terms shall have the following meanings for all purposes
of this Agreement, and such meanings shall be equally applicable to both the
singular and plural forms of the terms defined:

          "Affiliate" shall, with respect to a given Person, mean any other
Person directly or indirectly controlled by or under direct or indirect common
control with the Person specified.

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          "Agreement" shall have the meaning given to such term in the preamble
hereto, as such agreement is amended and supplemented from time to time in
accordance with its terms.

          "Business" shall have the meaning given to such term in Section 5.01
hereof.

          "Business Day" shall mean any day other than a Saturday, Sunday or
other day on which banking institutions in Connecticut or California are
authorized or required by Law to be closed.

          "Coyote Customers" shall mean any Person that is an end user of
Products.

           "Coyote  License  Agreement"  shall  mean the  Coyote  License
Agreement, dated as of the date hereof, among CNSI, CTL and the Company.

           "Finance  Contracts" shall mean the agreements entered into by
the Company in connection with the offering of various types of Services,
including forms of leases, guarantees, financing statements, loan agreements,
security agreements and other documents appropriate for the conducting of the
Company's Business of providing Services.

           "First Venture Entities" shall mean First Venture or any of its
Subsidiaries.

           "Information"  shall  have the  meaning  given to such term in
Section 7.01 hereof.

           "Law"  shall  mean  and  include  (a)  any  statute,   decree,
constitution, regulation, order, judgment or other directive of any Regulatory
Authority; (b) any treaty, pact, compact or other agreement to which any
Regulatory Authority is a party; (c) any judicial or administrative
interpretation or application of any Law described in (a) or (b) above; and (d)
any amendment or revision of any Law described in (a), (b) or (c) above.

           "Operating Agreement" shall mean the Operating Agreement of the
Company.

           "Operative Documents" shall mean this Agreement, the Operating
Agreement, the Coyote License Agreement, the Remarketing Agreement and any other
agreements, documents or certificates executed and delivered in connection with
the transactions contemplated under this Agreement.

           "Person" means any individual, partnership, joint venture,
corporation, trust, unincorporated organization, government (and any department
or agency thereof) or other entity.

           "Products"  shall  mean  any  products   (including,   without
limitation, related software licenses, but not including real estate) and
related installation and maintenance services provided, furnished, manufactured,
sold and/or marketed by CNSI, CTL or any of their respective Affiliates which
results in revenues or income to CNSI, CTL or any of their respective
Affiliates, and such additional goods or services of CNSI, CTL or any of their
respective Affiliates as the parties may from time to time agree.

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          "Regulatory Authorities" shall mean any national government, or
political subdivision thereof or local jurisdiction therein, (b) any board,
commission, department, division, organ, instrumentality, court, or agency of
any entity described in (a) above, however constituted, and (c) any association,
organization, or institution of which any entity described in (a) or (b) above
is a member or to whose jurisdiction any such entity is subject or in whose
activities any such entity is a participant but only to the extent that any of
the preceding in clauses (a) - (c) have jurisdiction over the Products or its
operations.

          "Remarketing Agreement" shall mean the Master Remarketing Agreement,
dated as of the date hereof, among CNSI, CTL and the Company.

          "Services" shall mean the financing or leasing of Products to Coyote
Customers.

          "Subsidiary" shall mean, with respect to any Person, any other Person
Person which is directly or indirectly controlled by such Person. For purposes
of this definition, "control", as applied to any Person, means the possession,
directly or indirectly, of the power to vote a majority of the securities having
voting power for the election of directors (or other Persons acting in similar
capacities) of such Person or otherwise to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting
securities or by contract or otherwise.

                                   ARTICLE II

                 REPRESENTATIONS AND WARRANTIES OF FIRST VENTURE

          First Venture represents and warrants to CNSI, CTL and the Company as
follows:

          2.01. Organization. First Venture is a limited liability company,
validly organized and existing under the laws of the jurisdiction of its
organization and has due authority to conduct business in all jurisdictions
where it conducts business.

          2.02. No Conflict. The execution and delivery by First Venture of this
Agreement and the other Operative Documents to which it is a party and the
consummation of the transactions herein and therein contemplated do not violate
or constitute a breach or default under the organizational documents of First
Venture or under the terms and conditions of any documents, agreements or other
writings to which First Venture is a party, or under any law, or any applicable
order, which violation, breach or default could reasonably be expected to have a
material adverse effect on First Venture or prohibit it from entering into,
executing, delivering or performing its obligations under this Agreement.

          2.03. Authority. First Venture has the power and authority to execute
and deliver this Agreement and any Operative Document to which it is a party and
to perform its obligations hereunder and thereunder. Such execution, delivery,
performance and consummation have been duly authorized by all necessary limited
liability company action on its part. This Agreement has been duly executed and
delivered by its duly authorized managing member, and constitutes its valid and
legally binding obligation enforceable against it in accordance with the terms
hereof, except as the same may be limited by (i) applicable bankruptcy,

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reorganization, insolvency, moratorium or other similar laws from time to time
in effect affecting creditors' rights generally or (ii) equitable principles of
general application.

          2.04. Regulatory Authorities; Capabilities. First Venture possesses
all licenses and permits and other authorizations by Regulatory Authorities
necessary for the conduct of its respective business and to provide to the
Company the services anticipated under the Operative Documents to which it is a
party, except those the lack of which would not have a material adverse effect
on its respective business or its ability to provide such services. First
Venture has not received notice from any Regulatory Authority indicating that
such Regulatory Authority would oppose or not grant or issue its consent, if
required, with respect to the transactions contemplated by this Agreement and
the other Operative Documents to which it is a party.

          2.05. No Filings Required. No action of, or filing with, or consent
of, any Regulatory Authority or any other third party is required by First
Venture to authorize, or is otherwise required in connection with, the
execution, delivery and performance by First Venture of this Agreement or the
other Operative Documents to which it is a party.

                                   ARTICLE III

            REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY

          The Company represents, warrants and covenants to CNSI, CTL and the
First Venture Entities as follows:

          3.01. Organization. The Company is a limited liability company,
validly organized and existing under the laws of the jurisdiction of its
organization and has due authority to conduct business in all jurisdictions
where it conducts business.

          3.02. No Conflict. The execution and delivery by the Company of this
Agreement and the other Operative Documents to which it is a party and the
consummation of the transactions herein and therein contemplated do not violate
or constitute a breach or default under the organizational documents of the
Company or under the terms and conditions of any documents, agreements or other
writings to which the Company is a party, or under any law, or any applicable
order, which violation, breach or default could reasonably be expected to have a
material adverse effect on the Company or prohibit it from entering into,
executing, delivering or performing its obligations under this Agreement.

          3.03. Authority. The Company has the power and authority to execute
and deliver this Agreement and any Operative Document to which it is a party and
to perform its obligations hereunder and thereunder. Such execution, delivery,
performance and consummation have been duly authorized by all necessary limited
liability company action on its part. This Agreement has been duly executed and
delivered by its duly authorized managing member, and constitutes its valid and
legally binding obligation enforceable against it in accordance with the terms
hereof, except as the same may be limited by (i) applicable bankruptcy,

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reorganization, insolvency, moratorium or other similar laws from time to time
in effect affecting creditors' rights generally or (ii) equitable principles of
general application.

          3.04. Regulatory Authorities; Capabilities. The Company possesses and
shall obtain and maintain all licenses and permits and other authorizations by
Regulatory Authorities necessary for the conduct of the Business, except those
the lack of which would not have a material adverse effect on its respective
business or its ability to provide such services. The Company has not received
notice from any Regulatory Authority indicating that such Regulatory Authority
would oppose or not grant or issue its consent, if required, with respect to the
transactions contemplated by this Agreement and the other Operative Documents to
which it is a party.

          3.05. No Filings Required. No action of, or filing with, or consent
of, any Regulatory Authority or any other third party is required by the Company
to authorize, or is otherwise required in connection with, the execution,
delivery and performance by the Company of this Agreement or the other Operative
Documents to which it is a party.

                                   ARTICLE IV

                 REPRESENTATIONS AND WARRANTIES OF CNSI AND CTL

          Each of CNSI and CTL represents and warrants to the First Venture
Entities and the Company as follows:

          4.01. Organization. CNSI is a corporation and CTL is a limited
liability company, each validly organized and existing under the laws of the
State of its incorporation or formation, as applicable, with due authority to
conduct business in all jurisdictions where it conducts business.

          4.02. No Conflict. The execution and delivery by each of CNSI and CTL
of this Agreement and the other Operative Documents to which CNSI or CTL is a
party and the consummation of the transactions herein and therein contemplated
do not violate or constitute a breach or default under the organizational
documents of CNSI or CTL or under the terms and conditions of any documents,
agreements or other writings to which CNSI or CTL is a party, or under any Law,
or any applicable order, which violation, breach or default could reasonably be
expected to have a material adverse effect on CNSI or CTL or prohibit it from
entering into, executing or performing its obligations under this Agreement.

          4.03. Authority. Each of CNSI and CTL has the power and authority to
execute and deliver this Agreement and any Operative Document to which it is a
party and to perform its obligations hereunder and thereunder, and such
execution, delivery, performance and consummation have been duly authorized by
all necessary corporate action on its part. This Agreement has been duly
executed and delivered by a duly authorized officer of each of CNSI and CTL, and
constitutes the valid and legally binding obligation of each of CNSI and CTL
enforceable against each in accordance with the terms hereof, except as the same
may be limited by (i) applicable bankruptcy, reorganization, insolvency,

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moratorium or other similar Laws from time to time in effect affecting
creditors' rights generally or (ii) equitable principles of general application.

          4.04. Regulatory Authorities. Each of CNSI and CTL possesses all
licenses and permits and other authorizations by Regulatory Authorities
necessary for the conduct of its business and to provide the services
anticipated to be provided by it under the Operative Documents to which it is a
party, except those licenses, permits and authorizations the lack of which would
not have a material adverse effect on its business or its ability to provide
such services. Each of CNSI and CTL has not received notice from any Regulatory
Authority indicating that such Regulatory Authority would oppose or not grant or
issue its consent, if required, with respect to the transactions contemplated by
this Agreement and the other Operative Documents to which it is a party. No
action of, or filing with, or consent of, any Regulatory Authority or any other
third party is required by either CNSI or CTL to authorize, or is otherwise
required by either CNSI or CTL in connection with, the execution, delivery and
performance by either CNSI or CTL of this Agreement or the other Operative
Documents to which either is a party.

          4.05. Litigation. There is no Litigation that is pending, or, to the
knowledge of CNSI or CTL, threatened, in or before any court, commission,
arbitration tribunal, or judicial, governmental or administrative department,
body, agency, administrator or official, grand jury or any other or forum for
the resolution of grievances, against either CNSI or CTL.

                                    ARTICLE V

                    FORMATION OF COMPANY AND RELATED MATTERS

          5.01. Formation of Company. First Venture has formed the Company,
whose purpose shall be to engage in the business of providing Services under
identified credit programs to Coyote Customers in the U.S. and other countries
around the world, to manage such credit programs (collectively, the "Business")
and to engage in any such other legal purpose as agreed to from time to time by
the Company's managing members.

          5.02. Preferred Relationship. In consideration of First Venture having
formed the Company and the Company engaging in the business of providing
Services to Coyote Customers, and First Venture and the Company taking all such
other actions as contemplated by this Agreement and the other Operative
Documents, each of CNSI and CTL agrees that it will view the Company as its
preferred source for providing Services to Coyote Customers. Each of CNSI, CTL
and First Venture will work with the Company to develop the Business by offering
Coyote Customers new credit programs for providing Services. All leasing
opportunities for equipment sold by CNSI and CTL will be presented to the
Company on a first right of refusal basis. The Company will either approve the
financing opportunities presented within 20 days or Coyote will be free to
pursue alternate sources.

          5.03. Delivery and Execution of Certain Operative Documents. The
parties hereto shall deliver or cause to be delivered to the other parties (as
applicable), at or on the date of this Agreement, the Coyote License Agreement
and the Remarketing Agreement.

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                                   ARTICLE VI

                  INDEMNIFICATION AND LIMITATIONS ON LIABILITY

          6.01. Indemnity Under This Agreement. From and after the date hereof,
CNSI, CTL, First Venture and the Company shall each indemnify, defend and hold
harmless the other parties to this Agreement and their respective members,
officers, directors, agents, representatives and employees (with respect to any
Claims relating to (i) below) and each of CNSI and CTL shall indemnify, defend
and hold harmless the Company and its respective general partners, members,
officers, agents, representatives and employees (with respect to any Claims
relating to (ii) below; CNSI, CTL, First Venture and the Company are referred to
respectively in this Section 6.01 as the case may be as the "Indemnifying Party"
and the party to whom such indemnification obligation is owed is referred to in
this Section 6.01 as the "Indemnified Party"), from and against any and all
actions, claims, losses, costs, liabilities, and expenses (including reasonable
attorneys' fees) resulting from or arising out of (i) any breach by the
Indemnifying Party of any representation, warranty, or covenant by such
Indemnifying Party in this Agreement or (ii) any third party claims arising from
the manufacture, sale, delivery, maintenance, service or repair by either CNSI
and CTL or any of its Affiliates of any of the Products, or the condition,
possession, return, disposition, use, operation, performance or control of such
Products (collectively, for purposes of this Section 6.01 only, "Claims"), and
will promptly reimburse any Indemnified Party for all Claims as incurred in
connection with the investigation of, preparation for, or defense of any pending
or threatened action or proceeding (collectively, "Proceeding"), whether or not
such Indemnified Party is a formal party to any such Proceeding; provided
however, that any Claims asserted by third parties concerning Company's uses
anywhere throughout the world of the Marks as permitted under the Coyote License
Agreement shall only be brought pursuant to the terms of the Coyote License
Agreement. Notwithstanding the foregoing, the Indemnifying Party shall not be
liable (a) for any amount paid by or on behalf of an Indemnified Party in
settlement of any Claim without the consent of the Indemnifying Party (which
consent shall not be unreasonably withheld), (b) in respect of any losses,
claims, damages, liabilities or expenses that a court of competent jurisdiction
shall have determined by final judgment resulted primarily from the bad faith,
negligence, or willful misconduct of an Indemnified Party or (c) any Claim, to
the extent the same results from a breach by the Indemnified Party of its
representations, warranties or covenants in this Agreement or the Coyote License
Agreement. An Indemnified Party shall not, without the prior written consent of
the Indemnifying Party (which consent shall not be unreasonably withheld),
settle, compromise or consent to the entry of any judgment in any pending or
threatened Proceeding in respect of which indemnification may be sought
hereunder (whether or not the Indemnified Party is an actual or potential party
to such Proceeding), provided, however, that the Indemnified Party may execute
such settlement, compromise or consent to the entry of judgment in any pending
or threatened Proceeding if the same includes an unconditional release of the
Indemnifying Party hereunder from all liability arising out of such Proceeding.

          6.02. Procedure. Promptly after a party to whom an indemnification
obligation is owed hereunder (an "Indemnified Party") receives notice of the
commencement of any Proceeding in respect of which indemnification may be sought

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hereunder, the Indemnified Party will notify the party that is obligated to
indemnify hereunder (an "Indemnifying Party"); but the omission to so notify the
Indemnifying Party shall not relieve the Indemnifying Party from any obligation
hereunder unless, and only to the extent that, such omission results in the
Indemnifying Party's forfeiture of substantive rights or defenses. If any such
Proceeding shall be brought against the Indemnified Party, the Indemnifying
Party shall, upon written notice given reasonably promptly following the
Indemnified Party's notice to the Indemnifying Party of any such Proceeding, be
entitled to assume the defense thereof at its own expense with counsel chosen by
the Indemnifying Party and reasonably satisfactory to the Indemnified Party;
provided; however, that any Indemnified Party may, at its own expense, retain
separate counsel to participate in such defense.

          6.03. Limitation on Liability. IN NO EVENT SHALL ANY PARTY HERETO BE
LIABLE TO THE OTHER UNDER ANY THEORY OF TORT, CONTRACT, STRICT LIABILITY, OR
OTHER LEGAL OR EQUITABLE THEORY FOR ANY LOST PROFITS, EXEMPLARY, PUNITIVE,
SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES, EACH OF WHICH IS HEREBY
EXCLUDED BY AGREEMENT OF THE PARTIES REGARDLESS OF WHETHER ANY PARTY HERETO HAS
BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT THE
FOREGOING DOES NOT PRECLUDE ANY PARTY FROM BEING INDEMNIFIED AGAINST THIRD-PARTY
CLAIMS UNDER ANY OF THE FOREGOING THEORIES OR FOR ANY OF THE FOREGOING DAMAGES.

          6.04. Sole Remedies. CNSI, CTL, First Venture and the Company, agree
that from and after the date of this Agreement, their sole remedies for any
breach of any representation, covenant or warranty contained in this Agreement
shall be limited to the right of indemnification as and to the extent set forth
in this Article VI, and in all events subject to all of the limitations herein,
and the parties waive all and each other remedy available at Law or in equity,
provided, however, that this limitation shall not apply in respect of any action
brought for fraud with an actual intent to deceive or any right to remedies
described in Section 9.13 hereof.

                                   ARTICLE VII

                       CONFIDENTIAL INFORMATION; PUBLICITY

          7.01. Confidential Information.

               (a) The parties agree that any and all technical, financial,
operations or business information including, but not limited to, customer data,
marketing plans, customer lists, customer information, customer account numbers,
the status of any account, pricing information, computer access codes,
instruction and/or procedural manuals, CNSI's or CTL's current operating
policies and manuals, information prepared for or used in the preparation of any
operating plan or credit, collections and operations manual of the Company, or
financial data of any party ("Information") furnished or disclosed by any party
to another party or obtained by any party as a result of its ownership interest
in the Company shall be deemed the property of the disclosing party or the
Company, as applicable, and when in tangible form, shall be returned by the

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receiving party to the disclosing party or the Company upon request along with
any copies as may be authorized herein.

               (b) "Information" shall not include: (i) information previously
known to the receiving party free of any obligation to keep it confidential as
evidenced by written records; (ii) information that has been or subsequently is
made public, through no wrongful act of the receiving party or any third party;
or (iii) information that is received from a third party without restriction and
without breach of this Agreement, other than information provided to such party
in connection with its performance of this Agreement or any other Operative
Document.

               (c) Each party agrees that it shall hold Information in
confidence and shall not make disclosure of Information to anyone except such of
its employees or third party contractors or agents to whom such disclosure is
necessary for the purpose of and as permitted in performance of this Agreement,
except in the following circumstances: (i) to the extent necessary to comply
with a specific applicable Law or the valid final order of a court of competent
jurisdiction in which the party making the disclosure or communication shall
notify the other party in writing and shall seek confidential and proprietary
treatment of the information; (ii) as part of normal reporting or review
procedures of such party's Board of Directors, or managing members, as
applicable, parent company, auditors and attorneys; provided, however, that such
persons or entities agree to be bound by the provisions of this paragraph; (iii)
to enforce its rights legally under this Agreement in a court of competent
jurisdiction; (iv) as is customary in connection with the sale, transfer,
pledge, syndication, assignment and/or securitization of Finance Contracts
(and/or any accounts receivable or collateral in connection therewith), so long
as the party disclosing Information in such circumstances obtains from such
Persons to whom such Information is disclosed, an agreement in the form of this
Section 7.01, not to disclose such Information; or (v) such information as is
part of the public domain through disclosure other than by or through such
party. Each party shall appropriately notify each employee, contractor, or agent
to whom Information is disclosed that any such disclosures are made in
confidence and shall be kept in confidence by such employee, contractor, or
agent, and shall require any third party contractor or agent to sign a written
agreement to maintain the confidentiality of the Information.

               (d) The obligations of the parties hereunder shall survive and be
enforceable by temporary and permanent injunctive relief against the breaching
party and its employees, officers, directors, agents, representatives, and
contractors notwithstanding any termination of this Agreement.

          7.02. Confidentiality of Agreement; Publicity.

               (a) Except as required by Law, in connection with any offering of
securities or otherwise, the parties shall keep confidential and not disclose,
and shall cause their officers, employees, and agents to keep confidential and
not disclose, any of the terms and conditions of this Agreement or any of the
Operative Documents to any third party without the prior written consent of all
other parties.

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               (b) The obligations of the parties hereunder shall survive and be
enforceable by temporary and permanent injunctive relief against the breaching
party and its employees, officers, directors, agents, representatives, and
contractors notwithstanding any termination of this Agreement.

               (c) Each party will consult with each of the other parties prior
to issuing any press release or otherwise making any public statement with
respect to the transactions contemplated by this Agreement, and will not issue
any such release or make any such statement over the reasonable objection of any
of the other parties, except as required by Law or the rules and regulations of
any relevant securities exchange or quotation system.

                                  ARTICLE VIII

                              TERM AND TERMINATION

          8.01. Term. This Agreement shall take effect on the date hereof and
remain in effect for a period of twelve (12) months or until terminated pursuant
to Section 8.02 hereof, provided, however, the terms of this Agreement shall
remain in effect, as applicable, in relation to any Finance Contract which
remains in effect after the end of the term of this Agreement pursuant to this
Article VIII.

          8.02. Termination. This Agreement and the transactions contemplated
hereby may be terminated as follows:

               (a) By written consent of each of the parties hereto; or

               (b) The dissolution of the Company.

          8.03. Effect of Termination. In the event of the termination of this
Agreement pursuant to Section 8.02, this Agreement shall become void and have no
effect, except in relation to any Finance Contract which remains in effect after
such termination that the provisions of Articles 6 and 7, and any other
provision necessary to give effect to such surviving provisions, shall survive
any such termination.

                                   ARTICLE IX

                                  MISCELLANEOUS

          9.01 Amendments and Waivers. Except as otherwise expressly provided
herein, this Agreement shall not be amended or modified in any fashion except by
an instrument in writing signed by the parties hereto. Waiver by a party of any
condition, or any breach of this Agreement by any other party, shall not be
effective unless in a writing signed by the waiving party, and no such waiver
shall operate or be construed as the waiver of any conditions other than those
expressly identified in the written waiver or of the same or another breach on a
subsequent occasion.

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          9.02. Nonassignability. All terms and provisions of this Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and permitted assigns. This Agreement may not be
assigned by any party; provided, however, that such consent shall not be
required for the assignment by any party of its rights and privileges hereunder
to an Affiliate wholly owned, directly or indirectly, by any of the parties, as
the case may be (it being understood that no such assignment shall relieve the
assigning party of its duties or obligations hereunder).

          9.03. No Third Party Beneficiaries. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective legal
representatives, successors and assigns. This Agreement is not for the benefit
of any other Person, other than CNSI, CTL, First Venture, the Company and their
respective Subsidiaries, and no other Person, other than CNSI, CTL, First
Venture, the Company and their respective Subsidiaries, shall have any rights
against the parties hereunder.

          9.04 Rules of Construction. The headings in this Agreement are
inserted only as a matter of convenience and in no way affect the terms or
intent of any provision of this Agreement. All defined phrases, pronouns, and
other variations thereof shall be deemed to refer to the masculine, feminine,
neuter, singular, or plural, as the actual identity of the organization, person,
or persona may require. No provision of this Agreement shall be construed
against any parties hereto by reason of the extent to which such parties or its
counsel participated in the drafting hereof. All references to dollars shall be
to United States dollars.

          9.05. CHOICE OF LAW; CONSENT TO JURISDICTION. THIS AGREEMENT IS MADE
AND ENTERED INTO UNDER THE LAWS OF THE STATE OF CALIFORNIA, AND THE LAWS OF THAT
STATE APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY THEREUNDER
(WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF) SHALL
GOVERN THE VALIDITY AND INTERPRETATION HEREOF AND THE PERFORMANCE BY PARTIES
HERETO OF THEIR RESPECTIVE DUTIES AND OBLIGATIONS HEREUNDER. Each party hereby
irrevocably consents that any legal action or proceeding against it or any of
its assets with respect to this Agreement may be brought in any jurisdiction
where it or any of its assets may be found, or in any court of the State of
California or any Federal court of the United States of America located in Los
Angeles, California, or both, as the other party may elect, and by execution and
delivery of this Agreement, each party hereby irrevocably submits to and accepts
with regard to any such action or proceeding, for itself and in respect of its
assets, generally and unconditionally, the jurisdiction of the aforesaid courts.
Each party further agrees that final judgment against such party in any action
or proceeding in connection with this Agreement shall be conclusive and may be
enforced in any other jurisdiction within or outside the United States of
America by suit on the judgment, a certified or exemplified copy of which shall
be conclusive evidence of the fact and the amount of such party's indebtedness.
Each party hereby irrevocably waives, to the fullest extent permitted by Law,
any objection which such party may now or hereafter have to the laying of venue
of any suit, action or proceeding arising out of or relating to this Agreement
brought in the State of California, and hereby further irrevocably waives any
claim that any such suit, action or proceeding brought in the State of
California has been brought in an inconvenient forum.

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          9.06. Severability of Provisions. If any provision of this Agreement
shall be contrary to the internal laws of California or any other applicable
Law, at the present time or in the future, such provision shall be deemed null
and void, but shall not affect the legality of the remaining provisions of this
Agreement. This Agreement shall be deemed to be modified and amended so as to be
in compliance with applicable Law and this Agreement shall then be construed in
such a way as will best serve the intention of the parties at the time of the
execution of this Agreement.

          9.07. Counterparts; Delivery. This Agreement may be executed in one or
more counterparts. Each such counterpart shall be considered an original and all
of such counterparts shall constitute a single agreement binding all the parties
as if all had signed a single document. The parties acknowledge that delivery of
executed counterparts of this Agreement may be effected by a facsimile
transmission or other comparable means, with an original document to be
delivered promptly thereafter via overnight courier.

          9.08. Entire Agreement. This Agreement (including any schedules,
exhibits or other attachments hereto), taken together with the other Operative
Documents, constitute the entire agreement among the parties. This Agreement and
the other agreements referred to in the preceding sentence supersede all prior
and contemporaneous agreements, statements, understandings, and representations
of the parties. There are no representations, warranties, agreements,
arrangements, or understandings, oral or written between the parties relating to
the subject matter of this Agreement which are not fully expressed herein or in
the other Operative Documents. The parties agree that the traditional
formulation of the parol evidence rule (whereby extrinsic evidence may not be
used to vary or contradict the unambiguous terms of a document that represents a
final and complete expression of the parties' agreement) shall govern in any
action or proceeding that may ensue concerning this Agreement and/or the other
Operative Documents.

          9.09. Notices. All notices, requests, consents, or other
communications required or permitted to be given under this Agreement shall be
in writing, may be delivered in person by telex or telecopy, by overnight air
courier, or by certified or registered mail (return receipt requested with all
fees prepaid), and shall be deemed to have been duly given and to have become
effective upon the date actually delivered to the parties or their assignees at
the following addresses:

                  If to CNSI or CTL:

                                    Coyote Network Systems, Inc.
                                    4360 Park Terrace Drive
                                    Westlake Village, California  91361
                                    Attention:  President

                                       12
<PAGE>

                  If to First Venture:

                                    First Venture Leasing, LLC
                                    C/O Acorn Roseand & Management
                                    777 Summer Street
                                    Stamford, Connecticut 06901
                                    Attention:  Mr. Robert Loonin

                  If to the Company:

                                    Coyote Leasing, LLC
                                    777 Summer Street
                                    Stamford, Connecticut 06901
                                    Attention:  Mr. Robert Loonin

The persons or addresses to which mailings or deliveries shall be made may be
changed from time to time by notice given pursuant to the provisions of this
section.

          9.10. Waiver of Jury Trial. The parties hereto hereby waive their
respective right to trial by jury of any cause of action, claim, counterclaim or
cross-complaint in any action, proceeding and/or hearing brought by any party
hereto against another party hereto on any matter whatsoever relating to,
resulting from, arising out of, or in any way connected with this Agreement, or
any amendment or breach hereof, including, without limitation, any claim or
injury or damage, or the enforcement of any remedy under any Law, statute, or
regulation, emergency or otherwise, now or hereafter in effect.

          9.11. Expenses. Each party shall bear and pay all direct costs and
expenses incurred by it or on its behalf in connection with the transactions
contemplated hereunder, including filing, registration and applicable fees,
printing fees, and fees and expenses of its own financial or other consultants,
investment bankers, accountants, and counsel. Notwithstanding the foregoing, any
reasonable expenses incurred by First Venture on behalf of or for the benefit of
the Company as contemplated hereunder shall be paid by the Company.

          9.12. Further Assurances. The parties hereto from time to time after
execution of this Agreement, without further consideration, shall execute and
deliver, as appropriate, such documents and take such actions as may be
reasonably necessary or proper to carry out and consummate the transactions
contemplated by this Agreement.

          9.13. Enforcement of Agreement. The parties hereto agree that
irreparable damage would occur in the event that any of the provisions in
Section 5.02 and Article VII of this Agreement was not performed in accordance
with its specific terms or was otherwise breached. It is accordingly agreed that
the parties shall be entitled to an injunction or injunctions to prevent
breaches of Section 5.02 and Article VII of this Agreement and to enforce
specifically such terms and provisions in any court of the United States or any
state having jurisdiction; provided, however, that the foregoing shall not be
construed as prohibiting any party from pursuing any other rights and remedies
available to it for such breach or threatened breach.

                                       13
<PAGE>

          9.14. Brokers and Finders. In the event of a claim by any broker or
finder based upon his or its representing or being retained by or allegedly
representing or being retained by any party, such party agrees to indemnify and
hold each other party harmless of and from any liability in respect of such
claim.

          9.15. Relationship of Parties. Nothing contained in this Agreement
shall be construed as constituting a partnership or agency relationship between
the parties hereto. As of the date of this Agreement, the relationship of the
parties one to another for all purposes shall be that of independent members of
a limited liability company.

                                       14
<PAGE>

          IN WITNESS WHEREOF the undersigned hereto execute this Agreement.

                                         COYOTE NETWORK SYSTEMS, INC.

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

                                         COYOTE TECHNOLOGIES, LLC

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

                                         FIRST VENTURE LEASING, LLC

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

                                         COYOTE LEASING, LLC

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

<PAGE>

                 FIRST AMENDMENT TO FINANCIAL SERVICES AGREEMENT

     This First Amendment to the parties Financial Services Agreement (the
"Agreement") is made this 2nd day of February 2000, by and among Coyote Network
Systems, Inc., a Delaware corporation with its principal office located in
Westlake Village, California ("CNSI"), Coyote Technologies, LLC, a California
limited liability company with its principal office located in Westlake Village,
California ("CTL"), a First Venture Leasing, LLC, a Delaware limited liability
company with its principal office located in Stamford, Connecticut ("First
Venture") and Coyote Leasing, LLC, a Delaware limited liability company with its
principal office located in Stamford, Connecticut (the "Company").

                                 R E C I T A L S

     WHEREAS, each of CNSI, CTL, First Venture and the Company are parties to a
Financial Services Agreement entered into on January 25, 2000 (the "Agreement");

     WHEREAS, each of CNSI, CTL, First Venture and the Company wish to amend the
Agreement;

     NOW, THEREFORE, in consideration of these premises and the mutual covenants
set forth herein, the parties hereby agree as follows:

     Article V, Section 5.02 of the Agreement is replaced and superseded in its
entirety with:

          5.02. Preferred Relationship. In consideration of First Venture having
formed the Company and the Company engaging in the business of providing
Services to Coyote Customers, and First Venture and the Company taking all such
other actions as contemplated by this Agreement and the other Operative
Documents, each of CNSI and CTL agrees that it will view the Company as a
preferred, but nonexclusive source for providing Services to Coyote Customers.
Each of CNSI, CTL and First Venture will work with the Company to develop the
Business by offering Coyote Customers new credit programs for providing
Services.

<PAGE>

         In all other respects, the Agreement is hereby ratified and affirmed.

                                       COYOTE NETWORK SYSTEMS, INC.

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

                                       COYOTE TECHNOLOGIES, LLC

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

                                       FIRST VENTURE LEASING, LLC

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

                                       COYOTE LEASING, LLC

                                       By:
                                             ----------------------------
                                             Name:
                                             Title:MASTER REMARKETING AGREEMENT

          This Agreement (this "Agreement") is made as of this 26th day of
January, 2000, by and among Coyote Network Systems, Inc., a Delaware corporation
with its principal address located at 4360 Park Terrace Drive, Westlake Village,
California 91361 ("CNSI"), Coyote Technologies, LLC, a California limited
liability company with its principal office located at 4360 Park Terrace Drive,
Westlake Village, California 91361 ("CTL"), and Coyote Leasing, LLC, a Delaware
limited liability company with its principal office located at 777 Summer
Street, Stamford, Connecticut 06901 ("Owner").

          WHEREAS, each of CNSI and CTL has agreed that Owner shall be its
preferred source for providing certain leasing and credit programs to CNSI's and
CTL's customers and create and develop new financing facilities and programs to
be offered to CNSI's and CTL's customers pursuant to that certain Financial
Services Agreement, dated as of the date hereof (the "Financial Services
Agreement"), among CNSI, CTL, Owner and First Venture Leasing, LLC. Capitalized
terms used but not defined herein shall have the meanings specified in the
Financial Services Agreement;

          WHEREAS, Owner may purchase from time to time certain equipment (the
"Equipment") from CNSI or CTL which will initially be leased by Owner to third
parties pursuant to a User Lease (as defined below) and which Owner, CNSI and
CTL desire to have remarketed upon the termination of any such User Lease
pursuant to the terms hereof;

          WHEREAS, Owner desires to engage CNSI and CTL and each of CNSI and CTL
desires to accept such engagement to participate with Owner in remarketing the
Equipment on behalf of Owner under the terms and conditions set forth below;

          NOW, THEREFORE, Owner, CNSI and CTL agree as follows:

          1. Appointment. Owner hereby appoints each of CNSI and CTL as its
agent to remarket the Equipment on behalf of Owner, and each of CNSI and CTL
accepts the appointment and agrees to use its commercially reasonable efforts to
perform certain remarketing services as more fully described in this Agreement.
Remarketing shall include the sale (including, without limitation, any
installment or conditional sale, whether in the form of a lease or otherwise or
any trade-in of Equipment), re-lease or renewal of any existing lease of the
Equipment (such re-leases and existing leases are to be collectively referred to
herein as the "User Leases") to either the person leasing the Equipment
immediately prior to the remarketing or to a new user (collectively, the
"Users"). Owner further appoints each of CNSI and CTL, upon prior written
request by Owner to CNSI or CTL, as applicable, to use its commercially
reasonable efforts to assist Owner to effect a transfer of Owner's right, title
and interest in and to any Equipment which Owner has agreed to sell to a User,
subject to the rights of the CNSI or CTL, as applicable, hereunder (including
the right to be reimbursed for its Actual Costs (as defined below) incurred in
providing such assistance), any prior User or any Senior Lienholder (as defined
below) and each of CNSI and CTL hereby accepts such appointment.

                                       1
<PAGE>

          2. Schedules; Availability of Equipment for Remarketing. Owner will
from time to time, deliver to each of CNSI and CTL Remarketing Schedules (each,
a "Remarketing Schedule") under this Agreement. Each Remarketing Schedule shall
be substantially in the form of Exhibit A hereto, shall be consecutively
numbered and shall set forth the description and location of the Equipment, the
date such Equipment will be available for sale, re-lease or lease renewal (the
"Availability Date"), and such other terms as required. Each Remarketing
Schedule shall identify only Equipment which has been leased pursuant to one
particular User Lease.

          3. Remarketing Procedures, Services and Reimbursed Expenses. The
procedure for remarketing the Equipment shall be as follows:

          (a) In the event that any User Lease is terminated prior to the
expiration of its originally scheduled initial term (whether as a result of any
default or event of default by any User thereunder or by such User exercising
any early termination right thereunder, in either event, an "Early
Termination"), upon receipt of a Remarketing Schedule which identifies Equipment
which was subject to such User Lease, each of CNSI and CTL will promote and
market such Equipment as equivalent to Similar Equipment (as defined below) and
shall exert its best efforts to solicit firm offers ("Offers") from Users (which
shall include, without limitation, each of CNSI's and CTL's current customers
both in the U.S. and internationally) for the sale, re-lease or lease renewal of
such Equipment. Each of CNSI and CTL shall assert its best efforts to solicit
Offers for such Equipment. In addition to each of CNSI's and CTL's obligations
in the preceding sentence to promote, market and solicit Offers for Equipment in
priority to any Similar Equipment, in the event that any User Lease is
terminated prior to the expiration of its originally scheduled initial term
(whether as a result of any default or event of default by any User thereunder
or by such User exercising any early termination right thereunder, in either
event, an "Early Termination"), each of CNSI and CTL shall promote and market
any Equipment which was subject to such User Lease as equivalent to Similar
Equipment which is new. Each Offer shall identify the potential User and shall
set out the basic terms and conditions of such Offer, including, without
limitation, the proposed sale price for the sale of the Equipment or the
proposed rent payment amounts and term for any re-lease or lease renewal of the
Equipment. Each of CNSI and CTL will promptly inform Owner of any such Offers it
receives.

          (b) Upon receipt of a Remarketing Schedule which identifies Equipment
which was leased pursuant to a User Lease which was not subject to an Early
Termination, each of CNSI and CTL will exert commercially reasonable efforts to
promote and market such Equipment and solicit Offers for the sale, re-lease or
lease renewal of such Equipment. Each of CNSI and CTL will promptly inform Owner
of any such Offers it receives. In the event that Owner has not received written
notice from either CNSI or CTL that either CNSI or CTL has received an Offer for
such Equipment by the later of (i) 90 days after Owner has delivered to each of
CNSI and CTL a Remarketing Schedule for such Equipment or (ii) 30 days prior to
the Availability Date for such Equipment, Owner shall then have the right to
promote and market such Equipment and solicit Offers directly from any Users
(which shall include, without limitation, each of CNSI's and CTL's current
customers both in the U.S. and internationally), for the sale, re-lease or lease
renewal of such Equipment. The terms of any such marketing activity by Owner
will be subject to the prior review and approval (not to be unreasonably

                                       2
<PAGE>

withheld) of CNSI or CTL, as applicable. Under no circumstances, other than as
provided in this Section 3(b), shall Owner promote or market any Equipment or
solicit Offers directly from Users for the sale, re-lease or lease renewal of
such Equipment.

          (c) In the event that an existing User of Equipment does not renew an
existing User Lease or purchase the Equipment upon the termination of such User
Lease, Owner shall direct such User to ship such Equipment to CTL at such
facility as directed by CTL by written notice to Owner from time to time ("CTL's
Facility"), at such User's expense, in accordance with the terms of the
applicable User Lease. In the event that any User does not comply with Owner's
direction to ship any Equipment to CTL's Facility, Owner shall undertake to
deinstall, insure and transport such Equipment to CTL's Facility at Owner's
Actual Cost. Upon delivery of such equipment to CTL's Facility, CTL shall store,
insure and maintain the Equipment, as required to preserve the value of such
Equipment at CTL's Actual Cost (as defined below). Upon receipt by CTL of a
purchase order from Owner to refurbish the Equipment, CTL shall promptly
refurbish the Equipment (which may include the application of "Skins" decals,
painting, and electronic and software upgrades) and perform any Equipment
modifications (which may include standard board and software changes), so as to
bring the Equipment to the highest release level as Owner and CTL shall agree
will result in the realization of the maximum profit margin for the sale or
re-lease of such Equipment (after accounting for the Actual Costs of any such
refurbishment or modifications). Any of CTL's Actual Costs incurred in
performing such refurbishment or modifications may be reimbursed as an Approved
Expense in accordance with Section 6(a) hereof; provided, however, that in the
event that the amount of Equipment Proceeds (as defined below) available from
the sale, re-lease or lease renewal of Equipment is not sufficient to reimburse
CTL for CTL's Actual Costs incurred in performing such refurbishment or
modifications, Owner shall promptly reimburse CTL for any such shortfall upon
Owner's reasonable determination of such insufficiency of Equipment Proceeds.
"Actual Costs" for the purpose of this Agreement shall mean CNSI's, CTL's or
Owner's, as applicable, actual cost (without mark-up), incurred in performing
any remarketing services pursuant to this Agreement, determined as follows: (i)
if such services are performed by a third party, then the actual cost shall be
the actual charges of such third party paid by CNSI, CTL or Owner, as applicable
(without markups or overhead by CNSI, CTL or Owner, as applicable), and (ii) if
CNSI, CTL or Owner, as applicable, elects to perform such obligation itself,
then the actual cost shall be such party's direct cost for labor and materials.

          (d) Owner, CNSI and CTL shall consider the terms and conditions of any
Offer received by Owner, CNSI or CTL (including, without limitation, any
purchase price, lease payments, lease term and credit worthiness of the proposed
User), and Owner, CNSI and CTL shall mutually agree to the terms of (i) any
Offer (or subsequent counter-offer from User) before accepting such Offer or
(ii) the terms of any counter-offer before making such counter-offer to any
proposed User. In the event that Owner, CNSI or CTL are unable to agree to the
terms of an Offer (or subsequent counter-offer from a User) or with respect to
the terms and conditions of any counter-offer to a User, within ten (10) days of
receipt by Owner, CNSI or CTL of an Offer (or subsequent counter-offer from
User), Owner shall upon notice to CNSI and CTL have the right to sell, re-lease
or enter into a lease renewal for the applicable Equipment, without the
agreement of CNSI or CTL; provided, however, that neither CNSL nor CTL shall be

                                       3
<PAGE>

responsible for the terms of any related Equipment servicing agreement, warranty
or intellectual property rights provided to a User under such circumstances,
other than as may be provided pursuant to Section 4 hereof.

          (e) Upon agreement by Owner and a User for the sale, re-lease or lease
renewal of any Equipment, pursuant to the terms hereof, Owner will promptly
prepare and arrange for the execution of commercially standard documentation for
the sale, re-lease or lease renewal of such Equipment and CTL shall arrange for
the packing, shipping and installation of such Equipment, which shall be
accompanied by new manuals and any appropriate warranty cards and/or
registration information, and all Actual Costs associated with the above may be
reimbursed as an Approved Expense in accordance with Section 6 hereof.

          4. Equipment Servicing; Warranties; Intellectual Property Rights; and
Repurchase or Guarantee Agreements.

          (a) CTL shall offer to any User of Equipment which is subject to any
sale, re-lease or lease renewal hereunder, the option to enter into a service
agreement for such Equipment, upon similar terms and conditions as CTL generally
offers to users of Similar Equipment.

          (b) Each of CNSI and CTL hereby consents to Owner's assignment to any
User of any unexpired portion of any warranty on Equipment which is to be used
by such User pursuant to a sale or re-lease of such Equipment hereunder. Each of
CNSI and CTL shall provide such additional warranties, as required, so that all
Equipment which is sold or re-leased, shall be subject to CNSI's and CTL's basic
warranties for such Equipment for a minimum period of 90 days after the
effective date of such sale or re-lease. In addition to any of the foregoing,
each of CNSI and CTL shall provide such additional warranty coverage to
Equipment which is subject to any Early Termination, which shall be equivalent
to any warranty which each of CNSI and CTL provides for Similar Equipment which
is new. The cost to each of CNSI and CTL of the additional warranties set forth
in the preceding two sentences shall be agreed to by Owner and CNSI or CTL, as
applicable, and shall be reimbursed to CNSI or CTL, as applicable, as an
Approved Expense pursuant to Section 6(a) hereof.

          (c) Each of CNSI and CTL shall grant to any User of Equipment which is
subject to any sale, re-lease or lease renewal hereunder all intellectual
property rights and other rights that are necessary or reasonably appropriate
for the use and operation of any such Equipment and subject to the CNSI's or
CTL's, as applicable, standard terms and conditions for sale of Equipment. Such
grant shall be free of any additional charge or fee to Owner or any User.

          (d) Each of CNSI and CTL shall assign to Owner any rights it has or
may hereafter acquire in any agreement, including, without limitation, any OEM,
distribution or re-seller agreement, relating to (i) any guaranty by any Person
of payment for the lease or purchase of Equipment, or (ii) any obligation by any

                                       4
<PAGE>

Person to purchase Equipment upon the termination of a User Lease.

          5. Administration; Billing and Collecting; Distribution of Equipment
Proceeds. Owner shall: (a) timely invoice (i) Users under a re-lease or lease
renewal of the Equipment for any rental payments and other sums due to be paid
by them to Owner ("Equipment Lease Proceeds") and (ii) Users under a sale of the
Equipment for all sale proceeds and other sums due to be paid to Owner
("Equipment Sale Proceeds," collectively with Equipment Lease Proceeds,
"Equipment Proceeds"); (b) use its best efforts (subject to the rights of any
party holding a lien or security interest in the Equipment and/or Equipment
Proceeds superior to that of Owner (the "Senior Lienholder")) to collect the
Equipment Proceeds; (c) distribute the Equipment Proceeds in accordance with
Section 6 hereof; (d) file and pay, or cause any User to file and pay, all sales
and/or use tax returns arising from a sale, re-lease or lease renewal of
Equipment; and (e) to use reasonable efforts to enforce all remedies (including
lawful repossession) in the event of any default or event of default by User
under any re-lease or lease renewal or sale agreement relating to the Equipment,
subject however, to the rights of a Senior Lienholder, if any.

          6. Payment of Equipment Proceeds. All Equipment Proceeds, upon receipt
of such Equipment Proceeds by Owner, shall be applied as follows (to the extent
Equipment Proceeds are available therefor):

          (a) first, to the payment of or to reimburse CNSI or CTL, as
applicable, for all "Approved Expenses" incurred in connection with the
administration and remarketing of Equipment hereunder. "Approved Expenses" shall
mean, for the purposes of this Agreement, any and all appropriate or necessary
Actual Costs incurred and paid in connection with the performance by each of
CNSI, CTL and Owner of its obligations hereunder, including, but not limited to,
Actual Costs of installation and deinstallation, maintenance and service,
refurbishing, modification, storage, salesmen's commissions paid to CNSI's or
CTL's sales force (in accordance with CNSI's or CTL's standard sales
compensation plan or as otherwise agreed to by Owner and CNSI or CTL, as
applicable) for any sale or re-lease of Equipment to a new User, broker's fees
paid to any third-party brokers (in such amount as mutually agreed to by Owner
and CNSI or CTL, as applicable) for any sale or re-lease of the Equipment to a
new User, legal fees paid to outside counsel, Equipment transportation, drayage
and freight from and to points of installation and for any warranty or
insurance, all of which shall be appropriately documented. Other than as
specifically provided in the previous sentence, Approved Expenses for the
remarketing of any item of Equipment shall not include any general overhead
costs or expenses of CNSI, CTL, Owner, or either of their employees, or any
travel expenses, or salesmen's commissions and brokerage fees not specifically
included as Approved Expenses in the previous sentence, or any advertising,
direct mail or similar costs incurred by CNSI, CTL or Owner in connection with
its remarketing activities, hereunder. Except as specifically provided in
Section 3(c) hereof, Approved Expenses shall be paid or reimbursed to CNSI or
CTL solely from Equipment Proceeds, and notwithstanding anything herein to the
contrary, Owner shall have no direct, personal, out-of-pocket liability for the
payment thereof;

          (b) second, to the payment to Owner of any amounts which have not been
paid by a User having leased the Equipment pursuant to a User Lease and which
are payable pursuant to a User Lease, immediately prior to its remarketing to a

                                       5
<PAGE>

new User hereunder, including, without limitation, (i) all unpaid sums accrued
and due to Owner pursuant to such User Lease (including, without limitation, any
default interest or late charges), as of the date that Owner first receives any
Equipment Proceeds under a sale or lease agreement with such a new User (the
"Initial Payment Date") and (ii) an amount equal to the present value of rental
payments and other sums which were to become due after the Initial Payment Date
during any remaining portion of the initial term of such User Lease which is
subject to Early Termination (which amount shall be discounted to present value
as of the Initial Payment Date at the discount rate as provided in the remedies
section of the applicable User Lease); provided, however, that in the event that
Owner subsequently recovers from such prior User any amounts for which Owner has
received payment pursuant to (i) and (ii) above, such recovered amounts shall be
included as part of the Equipment Proceeds and distributed in accordance with
this Section 6. Owner shall use its commercially reasonable efforts to collect
all amounts which have not been paid by a User having leased the Equipment
pursuant to a User Lease. Owner shall distribute any Equipment Proceeds which it
may receive pursuant to this Section 6(b), in such manner as may be required
pursuant to the terms and conditions, if any, of any then existing agreement
between Owner and CNSI or CTL;

          (c) third, to reimburse Owner for all Approved Expenses incurred in
connection with the administration and remarketing of Equipment hereunder;

          (d) fourth, twenty-five percent (25%) of the remainder thereof (the
"Net Proceeds") shall be paid to the CNSI or CTL, as applicable, as a
remarketing fee (the "Remarketing Fee"), provided that CNSI or CTL, as
applicable, shall not be entitled to such Remarketing Fee if this Agreement has
been terminated in accordance with Section 7 hereof; and

          (e) fifth, the remaining "Net Proceeds" to the Owner.

          7. Termination.

          This Agreement shall terminate upon the mutual agreement of the
parties hereto; provided, however, that Owner shall have the right to earlier
terminate this Agreement prior to such date upon notice in writing to CNSI and
CTL:

          (a) If CNSI or CTL shall have breached in any material respect any of
its covenants, obligations, and agreements hereunder, if such breach shall be
capable of' being cured, such breach shall have continued for thirty (30) days
after CNSI or CTL receives a written notice thereof from Owner specifying the
nature of the breach; or

          (b) If CNSI or CTL shall:

                    (i) admit in writing its inability to pay or fail to pay its
          debts generally as they become due;

                    (ii) file a voluntary petition in bankruptcy or a petition
          to take advantage of any insolvency, reorganization, arrangement,
          composition, readjustment, liquidation, dissolution or similar
          arrangement, under any present or future law, statute or regulation or

                                       6
<PAGE>

          file an answer admitting or failing to deny the material allegations
          of a petition filed against it in any such proceeding;

                    (iii) make an assignment for the benefit of its creditors;

                    (iv) consent to or acquiesce in the appointment of, or
          possession by, a receiver, trustee, liquidator or custodian for itself
          or for the whole or any substantial part of its property;

                    (v) have a petition in bankruptcy or an involuntary petition
          for reorganization, arrangement, composition, readjustment,
          liquidation, dissolution or similar arrangement under any present or
          future law, statute or regulation filed against it, and such
          proceeding or case shall continue undismissed or an order, judgment or
          decree approving or ordering any of the foregoing shall be entered and
          continue unstayed and in effect for a period of sixty (60) or more
          days or an order for relief against such party shall be entered in an
          involuntary case under any law with respect to bankruptcy, insolvency,
          liquidation, moratorium, reorganization or similar laws affecting
          creditors' rights generally; or

                    (vi) cease doing business as a going concern; or

          (c) If a court of competent jurisdiction shall enter an order,
judgment or decree appointing, with or without the consent of CNSI or CTL, a
custodian for such party or the whole or any substantial part of its property,
or approving a petition filed against it seeking reorganization or arrangement
of such party under any bankruptcy or insolvency laws or any other state of
federal law for the relief of debtors, and such order, judgment or decree shall
not be vacated or set aside or stayed within sixty (60) days from the date of
entry thereof; or

          (d) If, under the provisions of any other law for the relief of
debtors, any court of competent jurisdiction or a custodian shall assume custody
or control of CNSI or CTL or the whole or any substantial part of its property,
with or without the consent of such party, and such custody or control shall not
be terminated or stayed within sixty (60) days from the date of assumption of
such custody or control; or

          (e) If any material representation by CNSI or CTL under any Operative
Agreement (as defined in the Financial Services Agreement) or this Agreement
shall have been untrue when made.

          In addition to any right which Owner may have to earlier terminate
this Agreement pursuant to (a) through (e) above, Owner shall have the right to
earlier terminate this Agreement upon notice in writing to CNSI or CTL if CNSI
or CTL shall cease to be actively engaged in the business of remarketing
equipment of the type similar to the Equipment or shall transfer or sell all or
substantially all of its assets and such transferee or purchaser does not assume
CNSI's or CTL's, as applicable, obligations hereunder.

                                       7
<PAGE>

          8. Miscellaneous.

          8.1 Representations and Warranties. Each of the parties hereto
represents and warrants to the other that each has the power and authority to
execute and to carry out the terms of this Agreement, the execution of which has
been duly authorized by all requisite action of such party, and each makes for
the benefit of the other the same representations and warranties as to its
authority with respect to the subject matter hereof and the validity and
enforceability of this Agreement as are made by them in the Financial Services
Agreement.

          8.2 Successors and Assigns. The rights and obligations of the parties
hereunder shall inure to the benefit of, and be binding and enforceable upon,
the respective successors, assigns and transferees of either party; provided,
however, that neither party hereto may assign this Agreement (by operation of
law or otherwise) without prior written consent of the other party which may be
withheld in such party's sole discretion.

          8.3 Notices. Any notice, request or other communication to either
party by the other hereunder shall be given in writing and shall he deemed given
(i) on the date the same is personally delivered, whether by hand delivery,
facsimile transmission or overnight courier with receipt acknowledged or (ii)
three (3) days following the date it is mailed by certified mail, return receipt
requested, postage prepaid and addressed to the party for which it is intended
at the address set forth at the head of this Agreement (or such other address of
which notice has been given pursuant to the provisions of this Section 8.3)
together with a copy thereof to one additional addressee as may be requested by
notice hereunder. The place to which notices or copies of notices are to be
given to either party may changed from time to time by such party by written
notice to the other party.

          8.4 Captions. Captions used herein are inserted for reference purposes
only and shall not affect the interpretation or construction of this Agreement.

          8.5 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

          8.6 Amendments. This Agreement may be amended or varied only by a
document in writing executed by Owner, CNSI and CTL.

          8.7 Relationship of Parties. By their respective actions in connection
with this Agreement, the parties hereto do not intend to be and shall not be
deemed partners or joint venturers with each other.

          8.8 Indemnification.

          (a) Each of the parties hereto agrees to and hereby does indemnify and
protect, defend and hold the other party and its subsidiaries, affiliates,
successors, assigns, stockholders or partners, or any of its, or their,

                                       8
<PAGE>

directors, officers, agents, employees, stockholders or partners (the
"Indemnitee") harmless from and against any and all claims, actions, suits or
proceedings of any kind and nature whatsoever, including all damages,
liabilities, penalties, costs, expenses and legal fees ("Losses") which such
Indemnitee may incur based on, arising out of, connected with or resulting from
any breach of or failure to fulfill any of the other party's covenants or
agreements set forth in this Agreement.

          (b) In the event any claim for indemnification hereunder arises on
account of a claim or action instituted by a third person against an Indemnitee,
the Indemnitee shall notify the indemnifying party (the "Indemnitor") in writing
promptly after the receipt of notice by the Indemnitee that such claim was made
or that such action was commenced, provided, that failure to so notify the
Indemnitor shall not relieve the Indemnitor of its obligations hereunder except
to the extent such delay or failure resulted in increased Losses otherwise
subject to indemnification under this Section 8.8. The Indemnitor shall be
entitled to participate in or, at its option, assume the defense of any such
claim or action by counsel of its own choosing, and if it assumes such defense,
to control and settle the same. If the Indemnitor proposes to enter into a
settlement of such a claim pursuant to which the Indemnitee will incur no
obligation and will receive a general release of claims from the claimant, the
Indemnitee will take all actions and execute all documents necessary to
accomplish such settlement; such claims shall not be settled otherwise without
the Indemnitee's prior written consent. If the Indemnitor shall only participate
in the defense of any such claim or action, the same shall not be settled
without its prior written consent (which consent shall not be unreasonably
withheld or delayed).

                  [Remainder of page intentionally left blank.]

                                       9
<PAGE>

          8.9 Governing Law and Procedure. This Agreement shall be governed by
the laws of the State of New York without giving effect to the conflicts of law
principles of such state. For purposes of any action or proceeding hereunder,
each of the parties hereto expressly submits to the jurisdiction of the federal
and state courts located in the State of New York and City of New York, and
waives any objection to venue therein, or based on the inconvenience of such
forum.

                                              COYOTE LEASING, LLC
                                              Owner

                                              BY:
                                                   ----------------------
                                              ITS:

                                              COYOTE NETWORK SYSTEMS, INC.

                                              BY
                                                   -----------------------
                                              ITS:

                                              COYOTE TECHNOLOGIES, LLC

                                              BY
                                                   -----------------------
                                              ITS:

<PAGE>

                                    EXHIBIT A

                          REMARKETING SCHEDULE NO. ___
                             Dated __________, ____

Description of Equipment:

                    Equipment     Model/
  Qty.      Mfg.       Type       Feature        Description        Serial No.
-------  --------   ----------   ---------    ------------------   ------------

Location of Equipment:        ________________________________
                              Name

                              ________________________________
                              Address

                              ________________________________
                              City/State/Zip

                              ________________________________
                              Contact Person/Telephone

                              (Equipment Schedule No. __ dated _______, ___)

Availability Date: __________, ____; or the first day following Termination Date
of the User Lease if (i) an Early Termination Option or any similar option has
been exercised by the User, or (ii) termination of the User Lease by Owner due
to a default or event of default thereunder; in each case, as notified in
writing from time to time by Owner to CNSI and CTL.

          This Remarketing Schedule is issued pursuant to the Master Remarketing
Agreement dated as of January __, 2000 among CNSI, CTL and Owner and
incorporates by reference all of the terms and conditions of that Agreement.

COYOTE NETWORK SYSTEMS, INC.                COYOTE LEASING, LLC

BY:   _______________________               BY:   ___________________________

ITS:  _______________________               ITS:  ___________________________

DATE: _______________________               DATE: ___________________________

COYOTE TECHNOLOGIES, LLC

BY:   _______________________

ITS:  _______________________

DATE: _______________________

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