Document:

Master Program Agreement

This Master Program Agreement  ("Agreement") dated July 26, 1999 is entered into
between  NetWolves  Corporation,   a  New  York  corporation,   located  at  200
Broadhollow Road, Melville, New York 11747, ("NetWolves"), and Comdisco, Inc., a
Delaware  Corporation,  located  at 6111  N.  River  Road,  Rosemont,  IL  60018
("Comdisco").

NetWolves  is the  manufacturer  of  certain  equipment  known as the FoxBox and
Comdisco is in the business of financing  equipment  and  providing  services in
connection with the equipment.

This Agreement  contemplates an on-going business relationship in which Comdisco
will (i) acquire  from  NetWolves,  all of the right,  title and interest in the
equipment with the exception of intellectual property rights,  software upgrades
and software  application  and content;  (ii) take an  assignment  in associated
leases between NetWolves and certain  customers of NetWolves;  and (iii) provide
services with respect to the equipment as NetWolves'  subcontractor  and take an
assignment of the services fees in connection therewith.

NOW  THEREFORE,  in  consideration  of  the  foregoing  and  the  covenants  and
conditions  set forth herein,  the parties have entered into this  Agreement and
mutually agree as follows.

Definitions

"Commencement  Certificate" means an acceptance certificate substantially in the
form of Exhibit A confirming acceptance of the leased Equipment.

"Equipment" means the FoxBox equipment which will be sold to Comdisco under this
Agreement  and leased to Target  Customers  by  NetWolves  or sold  directly  by
NetWolves to Target Customers. The Equipment is specified in Exhibit B.

"Lease" or "Lease  Documents" means the Product  Agreement and related Equipment
Schedule  in the  form of  Exhibit  C which  NetWolves  will  use to  lease  the
Equipment and provide Services to Target Customers.

"Lessee" means a Target Customer under a Lease.

"Losses" means all losses, claims, liabilities,  demands and expenses whatsoever
including, without limitation, reasonable attorney's fees.

"Related Software" means NetWolves'  software described in Exhibit D which is an
integral part of the Equipment.

"Services" means the roll-out, maintenance, deinstallation and other services as
detailed in the Statement of Work under Services and Lease Documents provided by
Comdisco to Target Customers as NetWolves' subcontractor.

"Services  Documents" means the Services  Agreement and Services Schedule in the
form of  Exhibit  E which  NetWolves  will use to  provide  Services  to  Target
Customers who purchase the Equipment directly from NetWolves.

"Software Application and Content"

"Target  Customer" shall be limited to companies that will lease or purchase the
Equipment as detailed in Exhibit F.

"Transaction  Package for Leased  Equipment"  means the following  completed and
properly  executed  documents  between  NetWolves and the Target  Customer:  (i)
Product Agreement; (ii) Equipment Schedule.

"Transaction  Package for Purchased Equipment" means the following completed and
properly  executed  documents  between  NetWolves and the Target  Customer:  (i)
Services Agreement; (ii) Services Schedule; and (iii) Master Sale Agreement.
<PAGE>
1.0  Transaction Origination, Administration and Assignment

1.1  Comdisco and  NetWolves  will,  simultaneously  with the  execution of this
     Agreement,  execute the Master Agreement and Services  Schedule in the form
     of Exhibit G to  provide  the  Services  on behalf of  NetWolves  to Target
     Customers pursuant to the terms of this Agreement.

1.2  Upon approving the credit of a Target Customer (as detailed in Section 3.0)
     Comdisco will prepare and forward  original Lease or Services  Documents to
     NetWolves, as applicable,  to present to the Target Customer for execution.
     Any  changes to the Lease or Services  Documents  will  require  Comdisco's
     approval.

1.3  Upon Comdisco's receipt and approval of the Transaction  Package for Leased
     Equipment,  NetWolves,  upon  receipt  of  payment  from  Comdisco  for the
     Equipment,  will be deemed to have  assigned to Comdisco all of  NetWolves'
     right,  title  and  interest  in  the  Equipment,  with  the  exception  of
     intellectual  property rights,  software upgrades and Software  Application
     and Content, the Product Agreement,  and the Equipment Schedule,  including
     the right to receive  any rental  payments  included  therein.  Thereafter,
     NetWolves  will have no further  right to any rentals  associated  with the
     Lease  Documents  during  the  Initial  Term  of  any  Equipment  Schedule.
     Notwithstanding the foregoing  assignment,  NetWolves shall not be relieved
     of  any  of  its   obligations  as  a  manufacturer,   including   warranty
     obligations.

1.4  Upon Comdisco's receipt and approval of a Transaction Package for Purchased
     Equipment,  NetWolves,  upon  receipt  of  payment  from  Comdisco  for the
     Equipment,  will be deemed to have assigned to Comdisco all amounts due, if
     any, under a Master Sale  Agreement,  and all right,  title and interest to
     the Services Agreement and Services Schedule (except for any obligations to
     be performed by NetWolves pursuant to the Master Agreement) and all amounts
     due or to become due thereunder. Thereafter, NetWolves will have no further
     right to any revenues associated with the foregoing documents.

1.5  Upon taking an assignment as described in 1.3 and 1.4 above or upon receipt
     of  the  executed  Master  Sale  Agreement,  Comdisco  will  undertake  all
     invoicing on  NetWolves'  letterhead  to the Target  Customer in accordance
     with the  terms of the  Lease or  Services  Documents  or the  Master  Sale
     Agreement,  as applicable.  If NetWolves  becomes aware of any default by a
     Target  Customer under the Lease or Services  Documents,  it shall promptly
     notify Comdisco.

1.6  Lessee shall be  responsible  for and shall file and pay all property taxes
     incurred  in  connection  with the  lease  of the  Equipment.  The  Product
     Agreement  shall  provide  that  Lessee  shall  indemnify  and hold  Lessor
     harmless from and against all taxes,  other than those taxes based upon the
     net income of Lessor.

1.7  NetWolves  will at all times  remain the owner of the Related  Software and
     agrees to transfer all Related Software to the Target  Customers,  pursuant
     to the terms of NetWolves' standard documentation evidencing such transfer.

1.8  Comdisco  acknowledges that it is purchasing the Equipment for resale/lease
     and will provide NetWolves with valid exemption certificates.

2.0  Financial Arrangement
<PAGE>
2.1  Comdisco  has  entered  into  this  financial  arrangement  on the basis of
     NetWolves  intending to implement  40,000 Target Customer  locations within
     forty-eight (48) months from the date of this Master Program Agreement.

2.2  The calculation of the Equipment  purchase price is contingent upon whether
     the Target Customer purchases or leases the Equipment ("purchase price").

     2.2.1Target Customer Elects to Purchase the Equipment. If a Target Customer
          elects to purchase the Equipment  from  NetWolves  instead of entering
          into a  Lease,  and  elects  not  to  take  the  Services,  then  upon
          Comdisco's receipt and approval of a Transaction Package for Purchased
          Equipment  containing the Master Sale  Agreement  only, and receipt of
          the sale  price  from the  Target  Customer,  Comdisco  will  remit to
          NetWolves an amount equal to the purchase  price of the Equipment less
          $1,400.  If a Target  Customer  elects to purchase the  Equipment  and
          elects to take the Services, then upon Comdisco's receipt and approval
          of a Transaction  Package for  Purchased  Equipment and receipt of the
          sale price from the Target Customer,  Comdisco will remit to NetWolves
          the full purchase price. All Services provided will be based on a term
          of forty-eight (48) months.

     2.2.2Target  Customer  Elects to Lease the Equipment.  If a Target Customer
          elects  to lease  the  Equipment,  then upon  Comdisco's  receipt  and
          approval of a Transaction  Package for Leased Equipment,  the purchase
          price for each unit of Equipment  will equal the present  value of the
          rental  stream  at an  interest  rate  commensurate  with  the  Target
          Customer's  credit rating and prevailing  market rates.  Comdisco will
          purchase the Equipment from NetWolves, without recourse but subject to
          Section 4.1(h), at 95% of the purchase price. Comdisco agrees to remit
          payment  to  NetWolves  for the  Equipment  within  ten  (10)  days of
          Comdisco's receipt and approval of the applicable  Transaction Package
          for Leased  Equipment  and  Commencement  Certificate.  At the time of
          payment, NetWolves will provide Comdisco with a bill of sale.

2.3  Comdisco  will  charge a Service  fee of $600.00  to  install  each item of
     Equipment.  Comdisco  will  charge a  minimum  Service  fee of  $300.00  to
     deinstall each item of Equipment.  In the event NetWolves  charges a Target
     Customer  a Service  Fee  greater  than  $300.00  to  deinstall  an item of
     Equipment, NetWolves and Comdisco will share the excess amount on the basis
     of 73% to NetWolves and 27% to Comdisco. All amounts in connection with the
     installation  or  deinstallation  of the  Equipment  will be invoiced  upon
     completion of such installation or deinstallation.

2.4  For the first  twelve  (12) months of an  Equipment  Schedule or a Services
     Schedule,  as applicable,  the Target customer will not be obligated to pay
     Service fees other than for  installation and  deinstallation,  because the
     Equipment is considered  to be under  manufacturer  warranty.  Beginning in
     month thirteen (13) of the Equipment or Services Schedule, Customer will be
     obligated to pay a Service fee of $28.00 per month per item of Equipment.

2.5  The rent under an  Equipment  Schedule is estimated to be $200.00 per month
     per item of Equipment installed, exclusive of taxes.

2.6  The Lease Documents will require Lessee to pay Lessor the last month's rent
     at the time that the first rent payment is due.

2.7  Comdisco's  obligation  to purchase the  Equipment and to pay NetWolves the
     purchase price is contingent upon the following:
<PAGE>
     a.   Lessee's  credit has been  approved and there is no adverse  change in
          Lessee's credit as defined under the Equipment Schedule.

     b.   The Lessee is not in default under any Equipment Schedule.

     c.   Comdisco has received a completed and approved Transaction Package for
          Leased Equipment, and an executed Commencement Certificate.

     d.   Comdisco  has  received  a  completed  and  approved  the   applicable
          Transaction  Package for  Purchased  Equipment and the sale price from
          the Target Customer.

     e.   NetWolves is not in default under this Agreement, the Master Agreement
          or the Services Schedule.

     f.   Neither  NetWolves nor a Target Customer is in default under any Lease
          or Services Documents.

2.8  NetWolves agrees that Comdisco may, on a periodic basis,  review and audit,
     at reasonable times and on reasonable notice,  NetWolves' sale of Equipment
     to Target Customers.

3.0  Credit Review

3.1  Prior to  entering  into  Lease  or  Services  Documentation  with a Target
     Customer, NetWolves will request credit approval from Comdisco with respect
     to the  Target  Customer.  Credit  approval  and the rent  under  the Lease
     Documents will be calculated  based on the Credit Table set forth below and
     all credit approval will be valid for a period of forty-five (45) days from
     the date of approval.

3.2  Credit Table
     Moodys Rating            Basis Points Above Like Term Treasuries
     -------------            ---------------------------------------
     AAA   Aa3                175 basis points
     A1   A3                  200
     Baa1   Baa3              225
     Below Baa3               Individual Credit Review Needed

     Comdisco  reserves  the right to re-adjust  the basis  points  listed above
     based upon a change in market  conditions as determined by Comdisco  within
     six (6)  months  from the date of this  Agreement  and every six (6) months
     thereafter.  If market  conditions  change so that  Comdisco  readjusts the
     basis points as provided for herein,  and NetWolves deems such readjustment
     to be above  competitive  market  rates,  NetWolves  will obtain  three (3)
     quoted  rates  from a third  party  using a similar  point  structure  (the
     "Quoted  Rates").  If Comdisco  matches  the  average of the Quoted  Rates,
     NetWolves  will be deemed to accept  Comdisco's  readjustment.  If Comdisco
     elects  not to match  the  Quoted  Rates,  NetWolves  may  obtain  hardware
     financing from one of the three parties supplying the Quoted Rates.

4.0  Representations and Warranties

4.1  NetWolves  hereby  represents  and warrants (as of the date of execution of
     this Agreement as to (a) and (b) below) that:
<PAGE>

a.   It is a corporation  duly  organized and validly  existing in good standing
     under the laws of the jurisdiction of its incorporation with full corporate
     power  to  enter  into  this  Agreement  and  to  carry  out   transactions
     contemplated herein.

b.   The  execution  and  delivery of this  Agreement,  and all other  documents
     contemplated  herein (including but not limited to the Warrant  Agreement),
     as well as performance of the contemplated transactions hereunder have been
     duly authorized by all necessary  corporate action and this Agreement,  and
     all other  documents  contemplated  herein,  constitute a legal,  valid and
     binding obligation enforceable in accordance with its terms.

c.   Except as detailed  in this  Agreement,  there will be no other  agreements
     between  NetWolves  and the Target  Customer  relating to the Equipment and
     Services in contradiction of the terms of this Agreement. Nothing contained
     in this Agreement  shall  preclude  NetWolves from selling or leasing other
     services to the Target Customer.

d.   All credit information known to NetWolves concerning a Target Customer will
     have been disclosed or made available to Comdisco.

e.   The Target  Customer is not be in default  under any other  agreement  with
     NetWolves which is not the subject of this Agreement.

f.   As of the payment of the purchase  price to  NetWolves,  it is the owner of
     the Equipment and that title to the Equipment will be free and clear of all
     liens, claims,  interests and encumbrances of any kind, including,  but not
     limited to, infringement for claims of third party proprietary rights.

g.   If Comdisco purchases the Equipment from NetWolves,  pursuant to the Target
     Customer's  election to lease the  Equipment,  title to the Equipment  will
     vest in Comdisco upon payment of the purchase price.

h.   The Equipment will be in working order at the time of  installation  at the
     Target  Customer  location,  will  perform  in  all  material  respects  in
     accordance  with  NetWolves   specifications  published  at  the  time  the
     Equipment  is  installed,  and will be subject to  NetWolves  then  current
     manufacturer warranties.

4.2  Comdisco  hereby  represents and warrants that, as of the date of execution
     of this Agreement that:

     a.   It is a  corporation  duly  organized  and  validly  existing  in good
          standing under the laws of the jurisdiction of its incorporation  with
          full corporate power to enter into this Agreement and to carry out the
          transactions contemplated herein.

     b.   The execution and delivery of this Agreement,  and all other documents
          contemplated  herein,  as well as the performance of the  contemplated
          transactions  hereunder  have been duly  authorized  by all  necessary
          corporate   action  and  this  Agreement,   and  all  other  documents
          contemplated herein,  constitute a legal, valid and binding obligation
          enforceable in accordance with its terms.

5.0  Indemnification

     5.1  NetWolves  agrees to  indemnify  and hold  harmless  Comdisco  and its
          affiliates, subsidiaries, employees and agents, successors and assigns
          from any and all:
<PAGE>
          a.   Losses arising from any third party claims based upon a breach of
               NetWolves' representations,  warranties or obligations under this
               Agreement.

          b.   Losses  resulting  directly or indirectly from claims  including,
               without   limitation,   third  party  claims  arising  in  strict
               liability   or   negligence   or   claims  of   infringement   or
               misappropriation  of any  proprietary  interest  or  right of any
               third party, including without limitation any trademark,  patent,
               copyright or trade secret in connection with the Equipment and/or
               Related Software:

          c.   Losses  arising from third party claims based upon any inaccurate
               or incomplete  information willfully or intentionally provided by
               NetWolves.

5.2  In the event that a third party  claims that the  Equipment  or any Related
     Software  infringes a trade secret,  patent,  copyright or any  proprietary
     right of a third party,  NetWolves agrees to defend Comdisco, at NetWolves'
     expense,   and  NetWolves  will  pay  all  costs,  damages  and  reasonable
     attorney's  fees awarded to a third party  arising from such  infringement.
     Comdisco  agrees to promptly  notify  NetWolves  of any such claim and will
     allow  NetWolves  to  control  the  defense  and  any  related   settlement
     negotiations,  provided such settlement does not affect Comdisco's right as
     owner of the  Equipment  nor  diminish  or  increase  Comdisco's  or Target
     Customer's rights or obligations under the Lease or Services Documentation.
     Comdisco may  participate  in the defense of any such claim at its own cost
     and expense.

6.0  Limitation of Liability

     IN CONNECTION WITH THIS AGREEMENT,  NEITHER  COMDISCO NOR NETWOLVES WILL BE
     LIABLE TO THE OTHER FOR INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES EVEN IF
     ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
<PAGE>
7.0  Equipment Maintenance

7.1  The   responsibilities   of  Comdisco  and  NetWolves  in  connection  with
     maintenance  will be as detailed in the Statement of Work,  attached to the
     Services Schedule under the Master Agreement.

8.0  Remarketing

8.1  Comdisco will, at the request of NetWolves,  either  directly or indirectly
     through its subcontractor, perform the following services following a Lease
     termination:

     a.   Upon  expiration  of the Initial Term of any Equipment  Schedule,  any
          in-place  extension  rental and  in-place  purchase  price  negotiated
          between  Comdisco and Lessee will be apportioned  between Comdisco and
          NetWolves as follows: NetWolves 73% and Comdisco 27%.

     b.   For any  Equipment  that is  returned to Comdisco by a Lessee at lease
          termination,  and that is  remarketed to a subsequent  user,  Comdisco
          will take the first  $400.00  per item of  Equipment  for  storage and
          refurbishing costs incurred by Comdisco.  Any remarketing  proceeds in
          excess of $400.00  shall be  apportioned  73% to NetWolves  and 27% to
          Comdisco.

9.0  Term and Termination

9.1  This Agreement  shall be effective as of the date first set forth above and
     shall  continue  for an  initial  period  of four (4) years  (the  "initial
     term"),  and  thereafter  shall be  automatically  renewed  for  additional
     one-year  periods (the "extended  term"),  unless  terminated in writing by
     either party given thirty (30) days prior to the  expiration of the initial
     term.  During the extended term,  either party may terminate this Agreement
     at any time upon thirty (30) days prior written notice.

9.2  Either party may, by written notice,  terminate this Agreement for cause if
     the other party fails to cure a material  default under the Agreement.  Any
     material  default  must  be  specifically   identified  in  the  notice  of
     termination. After written notice, the notified party will have thirty (30)
     days to remedy any default.  Failure to remedy the material  default within
     the  time  period  provided  for  herein  will  give  cause  for  immediate
     termination.

9.3  Notwithstanding any termination of this Agreement, the terms and conditions
     of this  Agreement  will survive for purposes of any Equipment  Schedule or
     Services Schedule in effect with a Target Customer.

9.4  Provided  Comdisco  is not in material  default  under this  Agreement  and
     subject to  paragraphs  4.1(c) and 3.2,  during the initial or any extended
     term of this  Agreement  or upon the lease or purchase  of 20,000  units of
     Equipment as  contemplated  under this  Agreement,  whichever  comes first,
     NetWolves  agrees not to enter into any  agreement in  connection  with any
     Target Customer with any other technology services provider for the purpose
     of  providing  hardware  financing  and the  Services  specified  under the
     Statement of Work in Exhibit E.

10.0 Publicity
<PAGE>
     Except as hereinafter provided in this Section, NetWolves and Comdisco will
     consult  with each other  before  issuing  any press  release or  otherwise
     making any public  statements  with respect to this  Agreement or the other
     transactions contemplated hereby, including using any tradename, or service
     mark  which  identifies  the  other  party,  and  shall not issue any press
     release or make any such public statement prior to receiving the consent of
     the  other  party,  which  consent  will not be  unreasonably  withheld  or
     delayed.  Nothing  contained  herein shall prohibit any party from making a
     press release or other statement required by law or by obligations pursuant
     to any agreement  with any automated  interdealer  quotation  system if the
     party  making  the  disclosure  has first  consulted  with the other  party
     hereto.

11.0 Warrant Coverage

     In   consideration   of  entering  into  this  Agreement,   NetWolves  will
     simultaneous with the execution of this Agreement issue a Warrant Agreement
     granting to  Comdisco  the right to purchase  175,000  shares of  NetWolves
     Common Stock, for an Exercise Price of $10.00 per share,  with a term of no
     less  than  five (5)  years.  The  form of  Warrant  Agreement  shall be as
     attached to this  Agreement as Exhibit H, "Warrant  Agreement".  The number
     and purchase  price of shares shall be subject to adjustment as provided in
     Section  8 of the  Warrant  Agreement.  The  Exercise  Price may be paid at
     Comdisco's  election  either by cash or check or by  surrender  of Warrants
     ("Net Issuance") as determined in the Warrant Agreement.

12.0 Confidentiality

     Each party  (including its employees and agents) will use the same standard
     of care to protect  any  confidential  information  of the other  disclosed
     during negotiation or performance of this Agreement that it uses to protect
     its own confidential information. Confidential Information will not include
     information which (i) is or becomes publicly  available through no wrongful
     act of the receiving  party;  (ii) was known by the receiving  party at the
     time of disclosure  without any  obligation of  confidentiality;  (iii) was
     acquired by the receiving  party from a third party without  restriction on
     nondisclosure; or (iv) was developed independently by the receiving party.

13.0 Miscellaneous

13.1 Each party is an independent  contractor and, except as expressly set forth
     herein,  will have no authority to bind or commit the other party.  Nothing
     herein shall be deemed or construed to create a joint venture,  partnership
     or agency relationship between the parties.

13.2 Except as set forth  herein,  neither  party may  assign  their  rights and
     obligations  described in this Agreement  without the prior written consent
     of the other party except for assignments to affiliates or subsidiaries who
     agree to be bound by the terms of this Agreement. In addition, in the event
     of any such assignment on the part of NetWolves, NetWolves agrees to remain
     primarily  liable  for  the  performance  of  all  obligations   hereunder.
     Notwithstanding the foregoing,  Comdisco may subcontract the performance of
     its  Services to a third  party or assign its rights as provided  for under
     the Lease.

13.3 The waiver by either party of a breach of any  provision of this  Agreement
     will not be construed as a waiver of any subsequent breach. The invalidity,
     in whole or in part, of any provision of this Agreement will not affect the
     validity of the remaining provisions.
<PAGE>
13.4 This  Agreement  including  each Exhibit  represents  the entire  agreement
     between the parties and  supersedes  all oral or other  written  agreements
     understandings  between the parties  concerning the Equipment and Services.
     This  Agreement  may not be  modified  unless in writing  and signed by the
     party against whom enforcement of the modification is sought.

13.5 Any notice,  request or other  communication  under this  Agreement will be
     given in writing and deemed  received upon the earlier of actual receipt or
     three (3) days  after  mailing  if mailed  postage  prepaid  by  regular or
     airmail to the  address  set forth  above or, one day after such  notice is
     sent by courier or facsimile transmission.  Copies to NetWolves also are to
     be provided to David H. Lieberman, Esq., Blau, Kramer, Wactlar & Lieberman,
     P.C., 100 Jericho Quadrangle, Jericho, NY 11731.

13.6 Those terms and conditions which would, by their meaning or intent, survive
     the expiration or termination of this Agreement will so survive.

13.7 THIS  AGREEMENT  IS GOVERNED  BY THE LAWS OF THE STATE OF NEW YORK  WITHOUT
     REGARD TO ITS  CONFLICT  OF LAWS  PROVISIONS.  If there is any  dispute  or
     litigation  as a result of this  Agreement,  the  prevailing  party will be
     entitled to reasonable  attorney's fees. Any action by either party must be
     brought within two (2) years after the cause of action arose.

13.8 All Exhibits to this Agreement are hereby  incorporated  into and deemed to
     be a part of this Agreement.

13.9 In connection with the Services,  in the event of any conflict between this
     Agreement and the Master Agreement, the Master Agreement will govern.

13.10Terms  and   conditions  on  any   NetWolves'   purchase   order  or  other
     acknowledgment  form in addition to, different from or in conflict with the
     terms of this Agreement will be of no force or effect.

13.11NetWolves  will promptly  deliver to Comdisco  after filing such  documents
     with the Securities and Exchange Commission, at Comdisco's request:

     a.   NetWolves' Quarterly and Annual forms 10Q and 10K.

     b.   Such other information concerning the financial condition of NetWolves
          which is  available  to the public as  Comdisco  may from time to time
          request.

13.12Comdisco  and  NetWolves  will  cooperate  by  furnishing  such records and
     supporting material relating to transactions  contemplated hereunder as may
     be reasonably  requested by each party,  and in the  preparation  of forms,
     including notices to Lessees,  and the execution of such other documents as
     may be necessary to fulfill the intent and  effectuate  the purpose of this
     Agreement.

13.13This  Agreement  shall be  binding  upon and  inure to the  benefit  of the
     parties hereto and their respective successors,  personal  representatives,
     executors, heirs and permitted assigns.

IN WITNESS  WHEREOF,  the parties have executed this Agreement on the date first
set forth above.

NETWOLVES CORPORATION                        COMDISCO, INC.

By; /s/ Walter M. Groteke                    By: /s/ John Christopher

Title: ___________________________           Title: ____________________________

Date: _____________________________          Date: ____________________________

<PAGE>
                                   Exhibit A
                        to the Master Program Agreement
                       between NetWolves Corporation and
                                 Comdisco, Inc.
                              Dated July 26, 1999

                            COMMENCEMENT CERTIFICATE
                            ------------------------

     This Certificate dated is executed pursuant to Equipment Schedule No. __ to
the Product Agreement dated _______ between NetWolves Corporation ("Lessor") and
________________________ ("Lessee").

1.      Equipment:
        ---------

                             Equipment
        Qty.       Mfg.      Type/Model       Serial #        Location
        ----       ----      ----------       --------        --------

2.      Commencement Date:
        -----------------

3.      Total Equipment Cost:        $
        --------------------
        (Please total attached invoices)

4.      Representations of Lessee:
        -------------------------

          The  Equipment  has been  delivered to the location  indicated  above,
          tested,  inspected,  found to be in good working order and accepted by
          the Lessee on the Commencement Date.

as Lessee

By:_______________________________

Title:____________________________

<PAGE>
                                   Exhibit B
                        to the Master Program Agreement
                       between NetWolves Corporation and
                                 Comdisco, Inc.
                              Dated July 26, 1999

                             FoxBox Product Family

                                  FoxBox ESCN
                                  -----------
<TABLE>
<CAPTION>
Connection Type                 Dial on Demand
---------------                 --------------
Hardware Specs
--------------
<S>                             <C>
Processor                       266 Mhz
Memory                          32 Megabytes
Storage                         4.3 Gigabytes
Ports                           (1) 100 Megabit Ethernet & (1) V.90 Modem
Web Server                      Internet only
Mail Server IMAP                IMAP Internal
                                POP3 Internal
                                SMTP External
Security Features
Proxies - LAN to Internet       SMTP, HTTP, DNS
Stateful Filters                All TCP and UDP Protocols
Administrative Interface (AI)   Web Based AI only accessible from local LAN
Recommended Number of Users     Up to 8

                                 Thin Client
                                 -----------
Hardware Specs
--------------
Processor                       300 Mhz
Memory                          64 Megabytes
Storage                         No Disk
Network Card                    100 Megabit Ethernet
Video                           4 Megabyte Video
</TABLE>
<PAGE>
                                   Exhibit C
                        to the Master Program Agreement
                       between NetWolves Corporation and
                                 Comdisco, Inc.
                              Dated July 26, 1999

           Form of Product Agreement and Equipment Schedule attached

                                                               PRODUCT AGREEMENT

This  Product  Agreement  dated  ______________________________  is  made by and
between  NetWolves  Corporation  ("NetWolves")  with offices at 200  Broadhollow
Road, Melville, New York 11747, and ____________________________________________
____________________________________________________("Customer") with offices at
____________________________________________________.

SECTION 1. PROPERTY LEASED

NetWolves  leases to Customer  all of the  Products  described  on any  Schedule
entered into pursuant to the terms of this Product Agreement.

SECTION 2. TERM

On the Commencement Date Customer will be deemed to accept the Products, will be
bound to its rental obligations for the Products and the term of a Schedule will
begin and continue  through the Initial Term and thereafter  until terminated by
either party upon prior written notice  received  during the Notice  Period.  No
termination may be effective prior to the expiration of the Initial Term.

SECTION 3. RENT AND PAYMENT

Rent is due and payable in advance, in immediately available funds, on the first
day of  each  Rent  Interval  to the  payee  and at the  location  specified  in
NetWolves'  invoice.  Interim  Rent is due and  payable  when  invoiced.  If any
payment is not made when due, Customer will pay interest at the Overdue Rate.

SECTION 4. SELECTION AND WARRANTY AND DISCLAIMER OF
           WARRANTIES

4.1  Selection.  Customer  acknowledges  that it has  selected  the Products and
disclaims any reliance upon statements made by NetWolves.

4.2 Warranty and Disclaimer of Warranties.  NetWolves warrants to Customer that,
so long as  Customer is not in default,  NetWolves  will not disturb  Customer's
quiet and peaceful possession,  and unrestricted use of the Products. During the
term of the Schedule, NetWolves grants to Customer all applicable warranties for
the Products.  NetWolves assigns to Customer during the term of the Schedule any
manufacturer's warranties for the Products. NetWolves is not responsible for any
liability,  claim,  loss,  damage  or  expense  of any  kind  (including  strict
liability in tort) caused by the Products  except for any loss or damage  caused
by the negligent acts of NetWolves.  UNDER NO  CIRCUMSTANCES,  WILL NETWOLVES BE
LIABLE FOR INDIRECT,  SPECIAL,  CONSEQUENTIAL  OR PUNITIVE  DAMAGES EVEN IF SUCH
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

SECTION 5. TITLE AND ASSIGNMENT

5.1 Title.  Customer holds the Products subject and subordinate to the rights of
the Owner,  NetWolves,  any Assignee and any Secured Party.  Customer authorizes
NetWolves, as Customer's agent, to prepare,  execute and file in Customer's name
precautionary  Uniform Commercial Code financing statements showing the interest
of the Owner,  NetWolves,  and any Assignee or Secured Party in the Products and
to insert  serial  numbers in  Schedules as  appropriate.  Except as provided in
Sections 5.2 and 7.2, Customer will, at its expense,  keep the Products free and
clear  from any  liens  or  encumbrances  of any  kind  (except  any  caused  by
NetWolves)  and will  indemnify  and hold  NetWolves,  Owner,  any  Assignee and
Secured Party harmless from and against any loss caused by Customer's failure to
do so.

5.2  Relocation or Sublease.  Upon prior written  notice,  Customer may relocate
Products to any location within the  continental  United States provided (i) the
Products will not be used by an entity  exempt from federal  income tax and (ii)
all additional costs (including any  administrative  fees,  additional taxes and
insurance coverage) are reconciled and promptly paid by Customer.

Customer may sublease the Products upon the reasonable  consent of NetWolves and
the Secured  Party.  Such  consent to sublease  will be granted if: (i) Customer
meets the relocation  requirements set out above, (ii) the sublease is expressly
subject and subordinate to the terms of the Schedule, (iii) Customer assigns its
rights  in the  sublease  to  NetWolves  and the  Secured  Party  as  additional
collateral and security,  (iv) Customer's  obligation to maintain and insure the
Products is not altered,  (v) all financing  statements required to continue the
Secured  Party's  prior  perfected  security  interest  are filed,  and (vi) the
sublease is not to a leasing  entity  affiliated  with the  manufacturer  of the
Products described on the Schedule.  NetWolves acknowledges  Customer's right to
sublease for a term which extends  beyond the expiration of the Initial Term. If
Customer  subleases the Products for a term  extending  beyond the expiration of
such Initial Term of the applicable  Schedule,  Customer shall remain  obligated
upon the  expiration  of the  Initial  Term to  return  such  Products,  or,  at
NetWolves'  sole  discretion  to (i) return Like  Products  or (ii)  negotiate a
mutually acceptable lease extension or purchase.  If the parties cannot mutually
agree upon the terms of an extension or purchase,  the term of the Schedule will
extend upon the  original  terms and  conditions  until  terminated  pursuant to
Section 2.
<PAGE>
No  relocation or sublease  will relieve  Customer  from any of its  obligations
under this Product Agreement and the applicable Schedule.

5.3 Assignment by NetWolves. The terms and conditions of each Schedule have been
fixed by  NetWolves  in order to  permit  NetWolves  to sell  and/or  assign  or
transfer its interest or grant a security  interest in each Schedule  and/or the
Products to a Secured Party or Assignee.  In that event the term  NetWolves will
mean the Assignee and any Secured Party. However, any assignment, sale, or other
transfer by NetWolves will not relieve NetWolves of its obligations to Customer,
including its warranty  obligations,  and will not materially  change Customer's
duties or  materially  increase the burdens or risks  imposed on  Customer.  The
Customer hereby consents to any such assignment, sale or transfer. Customer also
agrees that:

(a)  The Secured  Party will be entitled to exercise all of  NetWolves'  rights,
     but will not be obligated to perform any of the  obligations  of NetWolves.
     The Secured Party will not disturb Customer's quiet and peaceful possession
     and  unrestricted use of the Products so long as Customer is not in default
     and the  Secured  Party  continues  to receive all Rent  payable  under the
     Schedule;

(b)  Customer  will pay all Rent and all other  amounts  payable to the  Secured
     Party,  despite  any  defense  or  claim  which it has  against  NetWolves.
     Customer reserves its right to have recourse directly against NetWolves for
     any defense or claim; and

(c)  Subject to and without  impairment  of Customer's  leasehold  rights in the
     Products,  Customer  holds the Products for the Secured Party to the extent
     of the Secured Party's rights in the Products.

SECTION 6. NET LEASE AND TAXES

6.1 Net Lease. Each Schedule constitutes a net lease.  Customer's  obligation to
pay Rent and all other amounts is absolute and  unconditional and is not subject
to any  abatement,  reduction,  set-off,  defense,  counterclaim,  interruption,
deferment or recoupment for any reason whatsoever.

6.2 Taxes and Fees.  Lessee will pay when due or reimburse Lessor for all taxes,
fees or any other charges  (together with any related  interest or penalties not
arising from the negligence of Lessor) accrued for or arising during the term of
each  Schedule  against  Lessor,  Lessee  or the  Products  by any  governmental
authority (except only Federal,  state and local taxes on the capital or the net
income of Lessor).  Lessee will file all  personal  property tax returns for the
Products  and pay all  property  taxes due.  Lessee  will  reimburse  Lessor for
property taxes within thirty (30) days of receipt of an invoice.

SECTION 7. CARE, USE AND MAINTENANCE, ATTACHMENTS AND
           RECONFIGURATIONS AND INSPECTION BY NETWOLVES

7.1 Care,  Use and  Maintenance.  Customer  will  maintain  the Products in good
operating order and appearance,  protect the Products from deterioration,  other
than normal wear and tear,  and will not use the Products for any purpose  other
than that for which it was designed.  If commercially  available,  Customer will
maintain in force a standard  maintenance  contract with the manufacturer of the
Products,  or another  party  acceptable  to  NetWolves,  and upon  request will
provide  NetWolves  with a complete copy of that  contract.  If Customer has the
Products  maintained by a party other than the manufacturer,  Customer agrees to
pay any costs  necessary  for the  manufacturer  to bring the  Products  to then
current release,  revision and engineering  change levels, and to re-certify the
Products as eligible for  manufacturer's  maintenance  at the  expiration of the
lease  term.  The lease term will  continue  upon the same terms and  conditions
until recertification has been obtained.

7.2  Attachments and  Reconfigurations.  Upon prior written notice to NetWolves,
Customer may reconfigure and install  Attachments on the Products.  In the event
of such a  Reconfiguration  or Attachment,  Customer  shall,  upon return of the
Products,  at its expense,  restore the  Products to the original  configuration
specified on the Schedule in accordance with the  manufacturer's  specifications
and in the same operating order, repair and appearance as when installed (normal
wear and tear  excluded).  If any parts are removed from the Products during the
Reconfiguration  or  Attachment,  the  restoration  will include,  at Customer's
option,  the  installation  of either the original  removed parts or Like Parts.
Alternatively,   with  NetWolves'  prior  written  consent  which  will  not  be
unreasonably  withheld,  Customer may return the Products with any Attachment or
upgrade.  If any parts of the Products are removed during a  Reconfiguration  or
Attachment,  NetWolves  may  require  Customer to provide  additional  security,
satisfactory  to the  NetWolves,  in order to ensure  performance  of Customer's
obligations  set  forth  in  this  subsection.  Neither  Attachments  nor  parts
installed on Products in the course of  Reconfiguration  shall be  accessions to
the Products.
<PAGE>
However,  if the  Reconfiguration or Attachment (i) adversely affects NetWolves'
tax  benefits  relating to the  Products;  (ii) is not capable of being  removed
without causing material damage to the Products;  or (iii) if at the time of the
Reconfiguration  or Attachment the  manufacturer  does not offer on a commercial
basis a means for the removal of the additional items; then such Reconfiguration
or Attachment is subject to the prior written consent of NetWolves.

7.3 Inspection by NetWolves. Upon request,  Customer, during reasonable business
hours and subject to Customer's  security  requirements,  will make the Products
and  its  related  log  and  maintenance  records  available  to  NetWolves  for
inspection.

SECTION 8. REPRESENTATIONS AND WARRANTIES OF CUSTOMER

Customer  represents and warrants that for each Schedule entered into under this
Product Agreement:

(a)  The  execution,  delivery and  performance  of the Customer  have been duly
     authorized by all necessary corporate action;

(b)  The individual executing was duly authorized to do so;

(c)  The Master Agreement, Product Agreement and each Schedule constitute legal,
     valid and binding agreements of the Customer enforceable in accordance with
     their terms; and

(d)  The  Products  are  personal  property  and  when  subjected  to use by the
     Customer will not be or become fixtures under applicable law.

SECTION 9. DELIVERY AND RETURN OF PRODUCTS

Customer assumes the full expense of transportation and in-transit  insurance to
Customer's  premises and for  installation  of the Products.  Upon expiration or
termination of each Schedule,  Customer will, at NetWolves'  instructions and at
Customer's expense (including transportation and in-transit insurance), have the
Products  deinstalled,  audited  by the  manufacturer,  packed  and  shipped  in
accordance with the  manufacturer's  specifications and returned to NetWolves in
the same operating order, repair and appearance as when installed (ordinary wear
and tear  excluded),  to a location  within  the  continental  United  States as
directed  by  NetWolves.  All items  returned  to  NetWolves  in addition to the
Products become property of NetWolves.

SECTION 10. LABELING

Upon request,  Customer will mark the Products indicating  NetWolves'  interest.
Customer will keep all Products  free from any other  marking or labeling  which
might be interpreted as a claim of ownership.

SECTION 11. INDEMNITY

Customer will indemnify and hold  NetWolves,  any Assignee and any Secured Party
harmless  from and  against  any and all claims,  costs,  expenses,  damages and
liabilities,  including reasonable attorney's fees, arising out of the ownership
(for strict liability in tort only), selection,  possession, leasing, operation,
control,  use,  maintenance,  delivery,  return  or  other  disposition  of  the
Products.  However, Customer is not responsible to a party indemnified hereunder
for any claims,  costs,  expenses,  damages and  liabilities  occasioned  by the
negligent acts of such indemnified party. Customer agrees to carry bodily injury
and  property  damage  liability  insurance  during the term of the  Schedule in
amounts  and  against  risks  customarily  insured  against by the  Customer  on
Products  owned by it. Any amounts  received by NetWolves  under that  insurance
will be credited against Customer's obligations under this Section.

SECTION 12. RISK OF LOSS

12.1  Customer's  Risk of Loss. If the Schedule  indicates that the Customer has
responsibility  for the risk of loss of the Products,  then the following  terms
will apply:

Effective upon delivery and until the Products are returned,  Customer  relieves
NetWolves  of  responsibility  for all  risks of  physical  damage to or loss or
destruction  of the  Products.  Customer will carry  casualty  insurance for the
Products in an amount not less than the  Casualty  Value.  All policies for such
insurance will name NetWolves and any Secured Party as additional insured and as
loss payee,  and will provide for at least thirty (30) days prior written notice
to  NetWolves  of  cancellation   or  expiration.   The  Customer  will  furnish
appropriate evidence of such insurance.

Customer  shall  promptly  repair any damaged  Product  unless such  Product has
suffered a Casualty Loss. Within fifteen (15) days of a Casualty Loss,  Customer
will provide  written  notice of that loss to NetWolves  and Customer  will,  at
NetWolves' option, either (a) replace the damaged Product with Like Products and
marketable  title to the Like Products will  automatically  vest in NetWolves or
(b) pay the  Casualty  Value and after that payment and the payment of all other
amounts due and owing, Customer's obligation to pay further Rent for the damaged
Product will cease.

12.2  NetWolves'  Risk of Loss.  If the Schedule  indicates  that  NetWolves has
responsibility  for the risk of loss of the Products,  then the following  terms
will apply:
<PAGE>
Effective  upon delivery and  throughout  the Initial Term of a Schedule and any
extension, NetWolves agrees to insure the Products against physical damage to or
loss  or  destruction  due to  external  cause  as  specified  by the  terms  of
NetWolves'  then  current  insurance  policy.  NetWolves  relieves  Customer  of
responsibility  for  physical  damage  to or loss  or  destruction  of  Products
reimbursed by that insurance.  Customer will give NetWolves prompt notice of any
damage,  loss or destruction to any Product and NetWolves will determine  within
fifteen (15) days of its receipt of that notice  whether the item has suffered a
Casualty  Loss.  If any  Product  suffers  damage or a  Casualty  Loss  which is
reimbursable under NetWolves' insurance,  upon payment by Customer of NetWolves'
deductible,  NetWolves will: (i) (for damaged  Products) arrange and pay for the
repair of any damaged  Product;  or (ii) (for any Casualty  Loss) at  NetWolves'
option either replace the damaged Product with Like Products, or upon payment of
all other amounts due by Customer  terminate the relevant Schedule as it relates
to the damaged Product.

If any Product suffers damage or a Casualty Loss which is not reimbursable under
NetWolves' insurance,  then Customer will comply with the provisions of the last
paragraph of Section 12.1 regarding  repair,  replacement or payment of Casualty
Value.

If NetWolves fails to maintain insurance coverage as required by this subsection
12.2, Customer will assume such risk of loss and, at the request of any Assignee
or Secured Party, will promptly provide insurance coverage.  This paragraph does
not relieve NetWolves of its obligations to maintain coverage of the Products.

SECTION 13. DEFAULT, REMEDIES AND MITIGATION

13.1  Default.  The  occurrence  of any one or more of the  following  Events of
Default constitutes a default under a Schedule:

(a)  Customer's  failure to pay Rent or other  amounts  payable by Customer when
     due if that failure continues for ten (10) days after written notice; or

(b)  Customer's  failure to perform any other term or  condition of the Schedule
     or the material  inaccuracy of any  representation  or warranty made by the
     Customer in the Schedule or in any document or certificate furnished to the
     NetWolves  hereunder if that failure or  inaccuracy  continues  for fifteen
     (15) days after written notice; or

(c)  An assignment by Customer for the benefit of its creditors,  the failure by
     Customer to pay its debts when due, the insolvency of Customer,  the filing
     by  Customer  or the filing  against  Customer  of any  petition  under any
     bankruptcy or insolvency  law or for the  appointment of a trustee or other
     officer with similar powers, the adjudication of Customer as insolvent, the
     liquidation of Customer, or the taking of any action for the purpose of the
     foregoing; or

(d)  The occurrence of an Event of Default under any Schedule or other agreement
     between Customer and NetWolves or its Assignee or Secured Party.

13.2  Remedies.  Upon the  occurrence  of any of the above  Events  of  Default,
NetWolves, at its option, may:

(a)  enforce Customer's performance of the provisions of the applicable Schedule
     by appropriate court action in law or in equity;

(b)  recover from Customer any damages and or expenses, including Default Costs;

(c)  with notice and demand, recover all sums due and accelerate and recover the
     present  value of the  remaining  payment  stream of all Rent due under the
     defaulted  Schedule  (discounted at the same rate of interest at which such
     defaulted  Schedule was discounted with a Secured Party plus any prepayment
     fees charged to  NetWolves by the Secured  Party or, if there is no Secured
     Party,  then  discounted  at 6%) together  with all Rent and other  amounts
     currently due as liquidated damages and not as a penalty;

(d)  with notice and process of law and in compliance with  Customer's  security
     requirements,  NetWolves  may  enter  Customer's  premises  to  remove  and
     repossess the Products  without being liable to Customer for damages due to
     the repossession,  except those resulting from NetWolves',  its assignees',
     agents' or representatives' negligence; and

(e)  pursue any other remedy permitted by law or equity.

The above remedies, in NetWolves' discretion and to the extent permitted by law,
are cumulative and may be exercised successively or concurrently.

13.3  Mitigation.  Upon return of the Products  pursuant to the terms of Section
13.2, NetWolves will use its best efforts in accordance with its normal business
procedures  (and without  obligation  to give any priority to such  Products) to
mitigate  NetWolves'  damages as  described  below.  EXCEPT AS SET FORTH IN THIS
SECTION, CUSTOMER HEREBY WAIVES ANY RIGHTS NOW OR HEREAFTER CONFERRED BY STATUTE
OR OTHERWISE  WHICH MAY REQUIRE  NETWOLVES TO MITIGATE ITS DAMAGES OR MODIFY ANY
OF NETWOLVES'S  RIGHTS OR REMEDIES STATED HEREIN.  NetWolves may sell,  lease or
otherwise dispose of all or any part of the Products at a public or private sale
for cash or credit with the privilege of purchasing  the Products.  The proceeds
from any sale, lease or other disposition of the Products are defined as either:

<PAGE>

(a)  if sold or otherwise  disposed of, the cash  proceeds  less the Fair Market
     Value of the  Products  at the  expiration  of the  Initial  Term  less the
     Default Costs; or

(b)  if leased,  the present  value  (discounted  at three points over the prime
     rate  as  referenced  in  the  Wall  Street  Journal  at  the  time  of the
     mitigation) of the rentals for a term not to exceed the Initial Term,  less
     the Default Costs.

Any proceeds will be applied against  liquidated  damages and any other sums due
to NetWolves  from Customer.  However,  Customer is liable to NetWolves for, and
NetWolves  may  recover,  the  amount  by which the  proceeds  are less than the
liquidated damages and other sums due to NetWolves from Customer.

SECTION 14. ADDITIONAL PROVISIONS

14.1 Binding Nature. Each Schedule is binding upon, and inures to the benefit of
NetWolves and its assigns. CUSTOMER MAY NOT ASSIGN ITS RIGHTS OR OBLIGATIONS.

14.2 Applicable Law. THIS PRODUCT AGREEMENT AND EACH SCHEDULE IS GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICT OF LAWS PROVISIONS.
NO RIGHTS OR REMEDIES  REFERRED TO IN ARTICLE 2A OF THE UNIFORM  COMMERCIAL CODE
WILL BE CONFERRED ON CUSTOMER UNLESS EXPRESSLY GRANTED HEREIN OR A SCHEDULE.

14.3  Counterparts.  Any Schedule may be executed in any number of counterparts,
each of which will be deemed an  original,  but all such  counterparts  together
constitute one and the same instrument.  If NetWolves grants a security interest
in all or any part of an Schedule, the Products or sums payable thereunder, only
that  counterpart  Schedule  marked  "Secured  Party's  Original"  can  transfer
NetWolves' rights and all other counterparts will be marked "Duplicate".

14.4 Nonspecific  Features and Licensed  Products.  If the Products are supplied
from  NetWolves'  inventory  and  contains  any  features  not  specified in the
Schedule,  Customer grants NetWolves the right to remove any such features.  Any
removal will be performed by the  manufacturer  or another  party  acceptable to
Customer,  upon the request of  NetWolves,  at a time  convenient  to  Customer,
provided that Customer will not unreasonably delay the removal of such features.

Customer acknowledges that the Products may contain or include software or other
licensed  products  of a third  party.  Customer  will  obtain  no  title to the
software or licensed  products  which at all times  remains the  property of the
owner of the  software or  licensed  products.  A license  from the owner may be
required and it is  Customer's  responsibility  to obtain any  required  license
before the use of the software or licensed product. Customer agrees to treat the
software and licensed  products as  confidential  information  of the owner,  to
observe all copyright restrictions, and not to reproduce or sell the software or
licensed products.

14.5  Additional  Documents.  Customer  will,  upon  execution  of this  Product
Agreement  and  as  may  be  requested  thereafter,  provide  NetWolves  with  a
secretary's  certificate  of incumbency  and  authority and any other  documents
reasonably  requested by NetWolves.  Upon the execution of each Schedule with an
aggregate Rent in excess of $2,000,000,  Customer will provide NetWolves with an
opinion from Customer's counsel regarding the  representations and warranties in
Section 8. Customer will furnish, upon request, audited financial statements for
the most recent period.

14.6 NetWolves' Right to Match.  Customer's rights under Section 5.2 and 7.2 are
subject to NetWolves' right to match any sublease or upgrade proposed by a third
party.  Customer will provide  NetWolves with the terms of the third party offer
and  NetWolves  will have three (3) business  days to match the offer.  Customer
shall  obtain  such  upgrade  from or sublease  the  Products  to  NetWolves  if
NetWolves has timely matched the third party offer.

14.7 Electronic  Communications.  Each of the parties may  communicate  with the
other by electronic means under mutually agreeable terms.

SECTION 15. DEFINITIONS

Assignee - means an entity to whom  NetWolves has sold or assigned its rights as
owner and lessor of the Products.

Attachment  - means any  accessory,  equipment  or device  and the  installation
thereof that does not impair the original function or use of the Products and is

<PAGE>

capable of being removed without causing  material damage to the Products and is
not an accession to the Products.

Casualty Loss - means the irreparable loss or destruction of Products.

Casualty  Value - means the greater of the aggregate  Rent  remaining to be paid
for the  balance  of the lease  term or the Fair  Market  Value of the  Products
immediately  prior to the Casualty Loss.  However,  if a Casualty Value Table is
attached to the relevant Schedule its terms will control.

Commencement  Certificate - means the NetWolves provided  certificate which must
be signed by Customer within ten (10) days of the Commencement Date as requested
by NetWolves.

Commencement Date - is defined in each Schedule.

Default Costs - means  reasonable  attorney's fees and remarking costs resulting
from a Customer default or NetWolves' enforcement of its remedies.

Event of Default - means the events described in Subsection 13.1.

Fair Market Value - means the  aggregate  amount which would be obtainable in an
arm's-length  transaction  between an  informed  and willing  buyer/user  and an
informed and willing seller under no compulsion to sell.

Initial Term - means the period of time  beginning on the first day of the first
full  Rent  Interval  following  the  Commencement  Date  for all  Products  and
continuing for the number of Rent Intervals indicated on an Schedule.

Interim  Rent - means the  pro-rata  portion of Rent due for the period from the
Commencement Date through but not including the first day of the first full Rent
Interval included in the Initial Term.

Licensed  Products - means any software or other licensed  products  attached to
the Products.

Like  Part -  means a  substituted  part  which  is lien  free  and of the  same
manufacturer  and part number as the removed part,  and which when  installed on
the Products will be eligible for maintenance  coverage with the manufacturer of
the Products.

Like Products - means  replacement  Products which are lien free and of the same
model, type, configuration and manufacture as Products.

Notice  Period - means the time  period  described  in a Schedule  during  which
Customer  may  give  NetWolves  notice  of the  termination  of the term of that
Schedule.

Overdue Rate - means the lesser of 18% per year or the maximum rate permitted by
the law of the state where the Products are located.

Owner - means the owner of the Products.

Products - means the property  described on a Schedule and any  replacement  for
that property  required or permitted by this Product Agreement or a Schedule but
not including any Attachment.

Reconfiguration  - means any change to Products  that would upgrade or downgrade
the performance capabilities of the Products in any way.

Rent - means  the  rent,  including  Interim  Rent,  Customer  will  pay for the
Products expressed in an Schedule either as a specific amount or an amount equal
to the amount which  NetWolves pays for the Products  multiplied by a lease rate
factor plus all other amounts due to NetWolves under this Product Agreement or a
Schedule.

Rent  Interval  - means a full  calendar  month or  quarter  as  indicated  on a
Schedule.

Schedule - means a Schedule which  incorporates  all of the terms and conditions
of this Product  Agreement and the Master Agreement and, for purposes of Section
14.3, its associated Commencement Certificate(s).

Secured  Party - means an  entity  to whom  NetWolves  has  granted  a  security
interest in a Schedule and related Products for the purpose of securing a loan.

IN WITNESS  WHEREOF,  the  parties  have  caused this  Product  Agreement  to be
executed  by their  duly  authorized  officers  as of the day and year first set
forth above.

_____________________________________   NETWOLVES, CORPORATION
Customer

By: _________________________________   By:  ___________________________________

Title: ______________________________   Title:  ________________________________

Form 6004  2/99

<PAGE>
                           EQUIPMENT SCHEDULE NO. ___

                                 DATED _______

                    TO THE PRODUCT AGREEMENT DATED ________

LESSEE:                         LESSOR:  NetWolves Corporation

Address for Legal Notices:      Address for All Notices:
-------------------------

Attn:  Corporate Secretary      Attn:

Address for Administrative
--------------------------
Correspondence:                 Address for Invoices:
--------------                  --------------------

Attn:                           Attn:
Phone:
Fax:                            Lessee Reference No:
                                -------------------

                                (24 digits maximum)

                                Initial Term:   48 Months

Location of Equipment:
---------------------           Rent:
                                ----
                                Estimated Equipment Rent:
                                ------------------------
                                Months 1-48: $200.00 Per Unit/ Per Month

                                Service Rent:
                                ------------
                                Installation:   $600.00
                                Ongoing Maintenance:  Months 1-12: $0
                                Months 13-48: $28.00 Per Unit/Per Month

                                Transportation Charges (Select one):
                                ----------------------------------
Attn:                           ____ Amortized Over Initial Term
Phone:                          ____  Lessee Pays Vendor Directly

EQUIPMENT (as defined below):
---------
Item            Machine  Model/
No.  Qty.  Mfg.  Type   Feature             Description
---  ----  ---- ------- -------             -----------

<PAGE>

Risk of Loss:  Pursuant to the Product  Agreement,  Lessor and Lessee agree that
the risk of loss is the responsibility of the Lessee.

Notice Period: The Notice Period will be not less than ninety (90) days nor more
than twelve (12) months  prior to the  expiration  of the Initial  Term,  or any
extension  thereof.  If Lessee gives proper written  notice of  termination  but
fails to return the Equipment on the expiration date of the Initial Term, or any
extension  thereof,  the  Schedule  will  continue  in full force and effect and
Lessee will be required to provide an additional  sixty (60) days written notice
of termination.  Such  termination  will be effective at the end of the month in
which the last day of the sixty (60) day  notice  requirement  occurs.  The Rent
will continue at the current rate until the effective date of the written notice
of termination and the Equipment is properly returned.

Special  Terms:  The  following  additional  terms are a part of this  Equipment
Schedule.  The terms and conditions of the Product  Agreement as they pertain to
this Equipment Schedule are modified and amended as follows:

For purposes of this Equipment  Schedule,  all references to "Equipment" will be
deemed to mean "Product",  and all references to "Lessee" will be deemed to mean
"Customer" as set forth in the Product Agreement. In addition, all references to
"Lessor"  will be deemed  to mean  "NetWolves  Corporation"  as set forth in the
Product Agreement.

Multiple Delivery Special Term
------------------------------
1.      Equipment
        ---------
Lessor's  obligation to lease Equipment under this Equipment Schedule applies to
Equipment  described  in this  Equipment  Schedule  for  which  Lessor  receives
Commencement Certificates from Lessee during the period from ____ to _____ up to
an aggregate  purchase  price of  $_________.  Lessee  acknowledges  that it has
either  received or approved  Lessor's  purchase  documentation.  If the cost or
configuration of the Equipment changes, Lessor may adjust the Lease Rate Factors
to reflect these additional costs or related expenses.

2.      Commencement Date
        -----------------
The  Commencement  Date for each item of Equipment  will be the day on which the
Equipment is installed and qualified for a commercially available manufacturer's
standard maintenance contract or warranty coverage. Lessee agrees to confirm the
Commencement  Date by providing  Lessor with a  Commencement  Certificate in the
form  attached  hereto.  Lessor will  summarize  all  Commencement  Certificates
received in the same calendar month into a Summary Schedule in the form attached
to this Equipment  Schedule as Exhibit I, and the Initial Term will begin on the
first day of the next  calendar  month.  Lessee  agrees that for  administrative
purposes,  including  without  limitation,  invoicing  of  Rent  and  taxes  and
assignment of an  identifying  lease number,  Lessor may  administer the Summary
Schedule as if it constituted a separate Equipment Schedule.  Alternatively,  if
Lessor  requests  Lessee  to  execute a Summary  Schedule,  Lessee  will have an
appropriate  official of Lessee execute and promptly return the Summary Schedule
to Lessor.  Executed Summary Schedules will incorporate the terms and conditions
of the Product  Agreement  and this  Equipment  Schedule  and will  constitute a
separate Equipment Schedule.

3.      Adverse Change
        --------------
If Lessee  defaults or there is an adverse change in Lessee's  credit  standing,
Lessor,  at its option with prior written notice to Lessee,  will be relieved of
its   obligations  to  lease   Equipment  for  which  Lessor  has  not  received
Commencement Certificates from Lessee prior to the date of such notice.

4.      Prepayment
        ----------
In consideration of Lessor entering into this Equipment Schedule,  Lessee agrees
to remit  payment of the Rent  payment  for Month 48 with the Rent  payment  for
Month 1.

<PAGE>

5.      Vendor Credits
        --------------
If after the Commencement Date for an item of Equipment,  Lessee finds such item
of Equipment to be  inoperable,  Lessee will seek  recourse  solely  against the
vendor of the Equipment for resolution of any problems concerning performance of
the Equipment. If the item of Equipment is replaced by the vendor, Lessee agrees
to provide Lessor with the serial number for the replacement equipment within 10
days of  replacement.  Lessor will not process any invoices  associated with the
Equipment being returned to vendor or the replacement equipment.

Notwithstanding  the foregoing,  if after the  Commencement  Date for an item of
Equipment,  Lessee  finds that (i) the vendor  has  over-charged  for an item of
Equipment,  or (ii) the vendor has shipped an incorrect item of Equipment,  upon
30 days prior written  notice from Lessee,  Lessor agrees to process any credits
received from the vendor and apply the credits to the Rent hereunder. The rental
adjustment will be effective on Lessor's next billing cycle following the 30 day
notice period.

 6.     Requirements for Return of Equipment at Lease Termination
        ---------------------------------------------------------
Lessee  will  appoint  a  principal   contact   person  (the   "Contact")   with
responsibility  for  coordinating  delivery  and  return  of  Equipment  to  one
centralized shipping location.

Lessee's Contact will provide Lessor a ten day written notice of the Equipment's
availability  for  pick-up,  but  in  no  event  prior  to  Lessee's  notice  of
termination pursuant to the "Notice Period" provision of the Schedule.

If Lessee elects to return less than all of the  Equipment,  Lessee will provide
Lessor with the description of the Equipment being returned,  including the line
number.  Upon Lessee's  request,  Lessor will provide Lessee with a report which
Lessee can use to identify the Equipment description by line number.

Lessor will make arrangements for its transportation carrier to contact Lessee's
Contact to  coordinate  the  return of the  Equipment.  Lessor's  transportation
carrier  will be  responsible  for packing the  Equipment on site on the date of
pick-up.

Lessee will be responsible and submit payment upon receipt of an invoice for the
Fair  Market  Value of any  Equipment  or  Equipment  parts which are missing or
returned damaged (the "Affected  Equipment"),  provided Lessor or its agents did
not cause such Affected Equipment.

7.      Personal Property Tax
        ---------------------
Notwithstanding  anything to the contrary  contained  in the Product  Agreement,
Lessor hereby  appoints  Lessee as its agent for the purpose of filing  personal
property tax returns.  Lessee will pay the appropriate  taxing  jurisdiction for
any  personal  property  tax owed that is  imposed  against  Lessee or Lessor in
connection  with the Equipment,  together with any penalties,  fines or interest
thereon.

Lessee agrees to pay when due and  indemnify  and hold Lessor  harmless from and
against  Lessee's  failure  to  remit  payment  of  personal  property  tax owed
(together with any related  interest or penalties not arising from negligence on
the part of Lessee) now or hereafter  imposed or assessed  against the Lessor or
the Equipment by the relevant  taxing  jurisdiction.  Lessee will cooperate with
Lessor in obtaining all relevant documentation necessary to substantiate payment
of such personal property tax if requested by Lessor.

8.      General Services Terms:
        ----------------------
Lessor will begin  performing the Services as described in the Statement of Work
attached as Exhibit II within thirty (30) days from  execution of this Equipment
Schedule.  The performance of the Services will be coterminous  with the Initial
Term of the  associated  Equipment.  The  Service  Rent  will be as set forth in
Section 9 herein.  Any change to the  Statement  of Work must be  documented  in
writing.  Lessor will have no obligation  to commence work in connection  with a
change  request  until the  change  has been  approved  in writing by Lessor and
Lessee.  Lessee will reimburse  Lessor for all reasonable  expenses  incurred in
connection with Lessor's performance under the Statement of Work.
<PAGE>
Lessor warrants that the Services will be performed in a professional manner.

EXCEPT  AS  EXPRESSLY  SET  FORTH  IN THIS  EQUIPMENT  SCHEDULE  OR THE  PRODUCT
AGREEMENT, LESSOR MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER,  EXPRESS OR
IMPLIED,  INCLUDING,  WITHOUT  LIMITATION,  ANY WARRANTY OF  MERCHANTABILITY  OR
FITNESS FOR A PARTICULAR PURPOSE.

Proprietary Materials will mean all materials, information and other deliverable
items  developed  under a  Statement  of Work  as  well  as  proprietary  tools,
methodologies, documentation and methods of analysis used in connection with the
Services. Lessee acknowledges and agrees that all such Proprietary Materials are
owned by  either  Lessor  or its  subcontractor  and  that  Lessee  receives  no
ownership  interest  herein.  Notwithstanding  the  foregoing,  Lessor grants to
Lessee the right to use such Proprietary  Materials  delivered to Lessee under a
Statement  of Work  for  Lessee's  internal  business  use  only and not for the
benefit of a third party.

Each party  (including  its  employees and agents) will use the same standard of
care to protect any confidential information of the other, or a subcontractor of
Lessor,  disclosed  during  negotiation  or performance of the Statement of Work
that  it  uses  to  protect  its  own  confidential  information.   Confidential
information  will not  include  information  which  (i) is or  becomes  publicly
available  through no wrongful act of the receiving party; (ii) was known by the
receiving   party  at  the  time  of  disclosure   without  any   obligation  of
confidentiality;  (iii) was acquired by the  receiving  party from a third party
without restriction on nondisclosure; or (iv) was developed independently by the
receiving party.

Lessor's  liability  to Lessee  from any  cause  whatsoever  arising  out of the
Services  under this  Equipment  Schedule  will not,  in any  event,  exceed the
aggregate of the Service  Rent paid by Lessee for the  Services,  excluding  the
monthly Rent paid for the Equipment under this Equipment  Schedule,  giving rise
to the claim  during  the  twelve  (12) month  period  immediately  prior to the
occurrence of the claim. UNDER NO CIRCUMSTANCES, WILL EITHER PARTY BE LIABLE FOR
INDIRECT, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES EVEN IF SUCH PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

Lessee will provide  Lessor with access to each site  specified in the site list
to be provided by Lessee. Lessee will be responsible for preparing each site for
the  installation  of the  Equipment,  including  but not limited to,  providing
specified  power  and  cabling,   environmental  and  wiring  requirements,  and
obtaining and maintaining  necessary  permits and  certifications.  In the event
that  Lessee  fails  to fully  prepare  the site  prior to  installation  of the
Equipment as  described  above,  Lessee will be  responsible  for an  additional
charge at the hourly rate set forth in the Statement of Work.

9.      Services Rent:
        -------------
Installation Services:  Lessee will be responsible for an Installation charge of
$600.00 upon  delivery and  acceptance  of the  Equipment as evidenced by Lessee
completing  a  Commencement  Certificate.  Lessor  will  invoice  Lessee for the
Installation charge at the time that Lessor invoices Lessee for the Rent payment
for Months 1 and 48 of the Initial Term.

On-Going  Maintenance  Services:  Service  Rent will be invoiced  and due on the
first day of each month, in advance,  beginning on the 13th month of the Initial
Term of each Summary Schedule.

10.     Principal Contact
        -----------------
Lessee  agrees that it will  designate  an  individual  as a central  contact to
coordinate  confirmation  of delivery  and  acceptance  of the  Equipment at the
end-user   locations.   The  central  contact  will   consolidate   Commencement
Certificates  from the end-user  locations prior to forwarding such verification
to Lessor.

Product  Agreement:  This Equipment  Schedule is issued  pursuant to the Product
Agreement identified on page 1 of this Equipment Schedule.  All of the terms and
conditions of the Product  Agreement are incorporated in and made a part of this
Equipment  Schedule as if expressly  described in this Equipment  Schedule,  and
this Equipment  Schedule  constitutes a separate  lease for the  Equipment.  The
parties  reaffirm  all of the  terms and  conditions  of the  Product  Agreement
(including,  without limitation, the representations and warranties set forth in
<PAGE>
the  Product  Agreement)  except as modified by this  Equipment  Schedule.  This
Equipment Schedule may not be amended or rescinded except by a writing signed by
both parties.

                                        NetWolves Corporation
as Lessee                               as Lessor

By:_______________________________      By:_____________________________________

Title:____________________________      Title:__________________________________

Date:_____________________________      Date:___________________________________

<PAGE>
                                   EXHIBIT I

                                SUMMARY SCHEDULE
                                ----------------

        This Summary Schedule dated _________ is executed  pursuant to Equipment
Schedule  No.  ______ to the  Product  Agreement  dated ____  between  NetWolves
Corporation  ("Lessor") and _______  ("Lessee").  All of the terms,  conditions,
representations  and warranties of the Product Agreement and Equipment  Schedule
No. are  incorporated  herein and made a part hereof and this  Summary  Schedule
constitutes an Equipment Schedule for the Equipment described below.

1.   Equipment:
     ---------
                         Equipment
        Qty.     Mfg.    Type/Model       Serial #       Location
        ---      ---     ----------       --------       --------

                                 "SEE ATTACHED"

2.   Commencement Date:       (See attached)
     -----------------

3.   Initial Term Begins:
     -------------------

4.   Total Equipment Cost:
     --------------------

5.   Rent:
     ----

6.   Representations of Lessee:
     -------------------------
     Each item of Equipment has been delivered to the location  indicated above,
     tested,  inspected,  found to be in good working  order and accepted by the
     Lessee on the Commencement Date.

Please sign and return one copy of this  Summary  Schedule to Lessor  within ten
(10) days of receipt.

                                        NetWolves Corporation
as Lessee                               as Lessor

By:            SAMPLE                   By:
   -----------------------------           -------------------------------------

Title:                                  Title:
      --------------------------              ----------------------------------
<PAGE>
                            COMMENCEMENT CERTIFICATE
                            ------------------------

     This Certificate dated is executed pursuant to Equipment Schedule No. _____
to  the  Product  Agreement  dated  __________  between  NetWolves  Corporation.
("Lessor") and _________ ("Lessee").

1.      Equipment:
        ---------
                         Equipment
        Qty.    Mfg.     Type/Model        Serial #          Location
        ---     ---      ----------        --------          --------

2.      Commencement Date:
        -----------------

3.      Representations of Lessee:
        -------------------------
The  Equipment  has been  delivered to the  location  indicated  above,  tested,
inspected,  found to be in good working  order and accepted by the Lessee on the
Commencement Date.

        as Lessee

        By:_________________________________

        Title:______________________________

<PAGE>
                                   EXHIBIT II

                            STATEMENT OF WORK NO. 1
                           TO THE EQUIPMENT SCHEDULE
                        DATED ____________________, 1999
                  BETWEEN NETWOLVES CORPORATION ("NETWOLVES")
                   AND _________________________ ("CUSTOMER")

1.0  Scope of Services
     NetWolves  will  provide the  following  services at the sites  detailed in
     document to be supplied by customer to the Services Schedule for Customer's
     systems.
     Installation
     Maintenance
     Tier 1 Help Desk
     Moves, Adds, Changes (Optional)
     De-Installation (Optional)
     Project Planning (management)

2.0  Service Components

     2.1  Installation
          NetWolves  will install the equipment for which site surveys have been
          completed.

          2.1.1 Service Scope

                Perform  and  review  site  survey  for each  site  and  confirm
                readiness.  Resolve any open issues to complete site  readiness.
                Develop site specific installation procedures.
                Coordinate and finalize scheduling of:

               * All involved NetWolves, Customer and third party personnel.
               * Shipping and receipt of equipment at each site.
               * Physical implementation of the equipment.
               * Testing  and  certification  of  installed  equipment  in
                 accordance with the test script.
               * Site sign-off by Customer's site representative.
               * Circuit provisioning.

          2.1.2 Service Deliverables

                Site specific installation procedures.
                Fully installed, tested, and functional equipment.
                Comprehensive installation documentation, including:
               * Descriptions, configurations  and  other  pertinent information
                  for each item of installed equipment.
               * Checklist of completed implementation steps and results.
               * Outstanding or open issues list.
               * Completed sign-off forms.

          2.1.3 Assumptions

               Customer  personnel  will be  available as scheduled to assist in
               the installation pursuant to the project plan.

               Customer  will  provide  NetWolves  with an  implementation  test
               script for each site.

               Installation  schedules will be agreed upon between NetWolves and
               Customer.
<PAGE>
               Installations will occur during normal business hours (8:00 AM to
               5:00 PM local time,  Monday through  Friday  excluding New Year's
               Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day,
               the Friday after Thanksgiving, and Christmas Day).

               NetWolves  will provide  implementation  test script per Customer
               request.

               Shipping costs are not included.

2.2  Maintenance

     NetWolves will provide maintenance for the equipment  identified in Exhibit
     B.

     2.2.1 Service Scope

          Determine maintenance coverage requirements.

          Maintain  inventory of configured "hot swap" boxes to be deployed upon
          dispatch.

          Upon  notification  from  NetWolves  help desk,  inventory box will be
          shipped overnight for installation.

          Technician will arrive at site and de-install current box, install and
          test  new  box  and  ship  broken  unit  to  Netwolves   facility  for
          refurbishment

          Provide  documentation  on  all of  the  above  to  Customer  and,  if
          appropriate,   to  the  NetWolves  Help  Desk  or  NetWolves   Network
          Management Center.

     2.2.2 Service Deliverables

          Next day on-site replacement for broken boxes

2.3  Moves, Adds and Changes (Optional)

     NetWolves  will  provide  moves,  adds,  and  changes on a demand  basis to
     facilitate modifications to the network environment.

     2.3.1 Service Scope

          Determine  scope of work to be  performed,  including  scheduling  and
          pricing.

          Coordinate  necessary  services or materials to facilitate  the change
          (equipment, software, telecommunications, etc.).

          Identify resources to perform the change (NetWolves,  Customer, and/or
          third-party personnel).

          Schedule and coordinate execution of the change.

          Execute the change and test, as applicable.

          6x12 to next day on-site response.

     2.3.2 Service Deliverables

          Implementation  of the change as  specified  by an  authorized  change
          request.

          Notification and documentation upon completion, as appropriate.

     2.3.3 Assumptions

          Moves, adds, and changes are modifications to the network  environment
          which  are  outside  the  scope  of this  Statement  of  Work  and are
          therefore priced on a demand basis.

          Customer will provide access to Customer sites where these  activities
          will be performed.

          Customer will provide site contacts,  as appropriate,  for inspection,
          decision-making and site sign-off.

          Moves,  adds and changes will only be provided  based upon  authorized
          change requests.

2.4  De-Installation (Optional)

     NetWolves  will  de-install  the equipment for which site surveys have been
     completed.

     2.4.1 Service Scope

          Development of site specific de-installation procedures.

          De-installation of equipment as determined by procedures.
<PAGE>
          Prepare equipment for shipment.

     2.4.2 Service Deliverables

          Site specific de-installation procedures.

          De-installation documentation, including:

          *    Descriptions,  serial numbers,  versions,  and/or other pertinent
               information identified in the de- installation procedures.

          *    Checklist of completed de-installation steps and results.

          *    Outstanding or open issues list.

     2.4.3 Assumptions

          NetWolves will perform  de-installations  only at those sites at which
          NetWolves is performing implementation of new equipment.

          Customer will provide a list of the equipment to be de-installed

2.5  Help Desk  Operation

*    Customer  will have access to the Help Desk on a 7x24x365  basis except for
     New Year's Day,  Memorial  Day,  July 4, Labor Day,  Thanksgiving  Day, the
     Friday after  Thanksgiving,  and Christmas  Day.  NetWolves  will route all
     calls outside of the scheduled access hours to Customer for resolution.

*    The Help Desk will  provide the first  point of contact for end users.  End
     users may submit requests to the Help Desk via telephone,  e-mail, or voice
     mail.

*    The first point of contact will consist of  providing  the initial  problem
     analysis and resolution.  Escalations will be handled under mutually agreed
     upon escalation procedures.

*    NetWolves  will  provide a Help Desk  Supervisor  who will manage the daily
     operation of the Help Desk. The Help Desk  Supervisor  will report directly
     to the NetWolves Help Desk Service  Manager who will be responsible for the
     overall management of the Help Desk.

<PAGE>

                                   Exhibit D
       to the Master Program Agreement between NetWolves Corporation and
                                 Comdisco, Inc.
                              Dated July 26, 1999

                                Related Software
                                ----------------

Fox OS
Fox A1
ESCN Navigator
ESCN Mother
ESCN Workbench
ESCN Mission Control

All training content  provided  through the ESCN System,  created or licensed by
NetWolves Corporation/The Sullivan Group.
<PAGE>
                                   Exhibit E
                               Comdisco Services
                        to the Master Program Agreement
                between NetWolves Corporation and Comdisco, Inc.
                              Dated July 26, 1999

           Form of Services Agreement and Services Schedule Attached.
<PAGE>
                                                              SERVICES AGREEMENT

This  Services  Agreement  dated  ______________________________  is made by and
between  NetWolves  Corporation  ("NetWolves")  with offices at 200  Broadhollow
Road,     Melville,     New    York    11747,     and     ______________________
__________________________________________________  ("Customer") with offices at
____________________________________________________________________________.

SECTION 1.  SCOPE

1.1 Schedules. NetWolves will provide Services under the terms and conditions of
this Services Agreement and as more particularly defined in each Schedule.  Each
Schedule  will  constitute  a separate  agreement  with  respect to the Services
provided.

1.2  Changes.  Any  change to this  Services  Agreement  must be  documented  in
writing. NetWolves will have no obligation to commence work in connection with a
change  request  until the change has been  approved in writing by NetWolves and
Customer.

1.3 NetWolves may, as it deems  appropriate,  use  subcontractors for all or any
portions of the Services.

SECTION 2.  FEES

2.1 Fees.  Customer  will pay the fees for the  Services  in the  amounts and in
accordance with the payment terms set forth in each Schedule.

2.2 Late Fee.  Whenever  any payment is not made within  thirty (30) days of the
invoice  date,  Customer  will pay  interest  at the lesser of one and  one-half
percent (1.5%) per month or the maximum amount permitted by law.

2.3.  Expenses.  Customer will reimburse  NetWolves for all reasonable  expenses
incurred in connection with services requested by Customer which are outside the
scope of the Services outlined under a Schedule.

2.4 Taxes. Customer will pay or reimburse NetWolves for any taxes, fees or other
charges  imposed by any local,  state or federal  authority  (together  with any
related interest or penalties not due to the fault of NetWolves)  resulting from
this Services  Agreement,  or from any  activities  hereunder,  except for taxes
based on NetWolves' net income.

SECTION 3.  TERM

Each  Schedule  will take effect upon the signature of both parties and continue
through the term as specified therein.

The Services to be provided under each Schedule will begin on the date set forth
in the Schedule.

SECTION 4.  WARRANTIES AND LIABILITY

4.1  Services.  NetWolves  warrants  that the  Services  will be  performed in a
professional manner.

4.2  Exclusive  Warranty.  EXCEPT  AS  EXPRESSLY  SET  FORTH IN THIS  AGREEMENT,
NETWOLVES MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED,
INCLUDING,  WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.

4.3  Liability.  NetWolves'  liability  to  Customer  from any cause  whatsoever
arising  out of this  Services  Agreement  will not,  in any  event,  exceed the
aggregate of the fees paid by Customer for the Services giving rise to the claim
during the twelve (12) month period  immediately  prior to the occurrence of the
claim.  UNDER NO  CIRCUMSTANCES,  WILL  EITHER  PARTY BE  LIABLE  FOR  INDIRECT,
SPECIAL,  CONSEQUENTIAL  OR PUNITIVE DAMAGES EVEN IF SUCH PARTY HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES.
<PAGE>
SECTION 5.  MUTUAL INDEMNIFICATION

Each party will indemnify and hold the other party and its employees and agents,
harmless against any and all claims, liabilities,  losses, damages and causes of
action  relating  to  bodily  injury,   including  death,  arising  out  of  the
intentional or negligent acts or omissions of the indemnifying  party during the
performance  of a  Schedule.  The  indemnifying  party,  however,  will  not  be
responsible  for injury  attributed  to the  intentional  or  negligent  acts or
omissions of the indemnified party, its employees or agents.

SECTION  6.  OWNERSHIP AND CONFIDENTIALITY

6.1 Ownership.  Proprietary  Materials will mean all materials,  information and
other deliverable items developed under a Schedule as well as proprietary tools,
methodologies, documentation and methods of analysis used in connection with the
Services.  Customer  acknowledges and agrees that all such Proprietary Materials
are owned by either  NetWolves' or its  subcontractor and that Customer receives
no ownership interest herein. Notwithstanding the foregoing, NetWolves grants to
Customer the right to use such Proprietary Materials delivered to Customer under
a Schedule for Customer's  internal business use only and not for the benefit of
a third party.  Any  proprietary  software  product will be licensed to Customer
under a separate license agreement.

6.2  Confidentiality.  Each party  (including its employees and agents) will use
the same standard of care to protect any confidential  information of the other,
or a subcontractor, disclosed during negotiation or performance of this Services
Agreement that it uses to protect its own confidential information. Confidential
information  will not  include  information  which  (i) is or  becomes  publicly
available  through no wrongful act of the receiving party; (ii) was known by the
receiving   party  at  the  time  of  disclosure   without  any   obligation  of
confidentiality;  (iii) was acquired by the  receiving  party from a third party
without restriction on nondisclosure; or (iv) was developed independently by the
receiving party.

SECTION 7.  TERMINATION

Either party may, by written notice,  terminate a Services Schedule for cause if
the  other  party  fails to cure a  material  default  under the  Schedule.  Any
material  default must be specifically  identified in the notice of termination.
After written  notice,  the notified party will have ten (10) days to remedy any
monetary  default and thirty (30) days to remedy any other  default.  Failure to
remedy the material default within the time period provided for herein will give
cause for immediate  termination.  If termination is due to Customer's  material
default, Customer will immediately pay to NetWolves the amounts then owing under
the relevant Schedule up to the date of termination. The foregoing payments will
be in addition  to all other legal and  equitable  rights of  NetWolves  and any
remedies set forth in a Services Schedule.

SECTION 8.  MISCELLANEOUS

8.1 Each party is an independent  contractor  and, except as expressly set forth
herein, will have no authority to bind or commit the other party. Nothing herein
shall be deemed or construed to create a joint  venture,  partnership  or agency
relationship between the parties.
<PAGE>
8.2 Customer  may not assign this  Services  Agreement,  or any of its rights or
obligations therein.

8.3 The waiver by either  party of a breach of any  provision  of this  Services
Agreement  will not be  construed  as a waiver  of any  subsequent  breach.  The
invalidity,  in whole or in part, of any  provision of this  Services  Agreement
will not affect the validity of the remaining provisions.

8.4 This  Services  Agreement  including  each  Schedule  represents  the entire
agreement  between  the  parties  and  supersedes  all  oral  or  other  written
agreements or understandings  between the parties concerning the Services.  This
Agreement may not be modified  unless in writing and signed by the party against
whom enforcement of the modification is sought.

8.5 Any notice,  request or other  communication  under this Services  Agreement
will be given in writing and deemed  received upon the earlier of actual receipt
or three (3) days after mailing if mailed postage  prepaid by regular or airmail
to the  address set forth above or, one day after such notice is sent by courier
or facsimile transmission.

8.6 No third party is intended to be, or will be construed to be, a  beneficiary
of any provision of this Services Agreement nor have any right to enforce any of
its provisions or to pursue any remedy for its breach.

8.7 Those terms and conditions which would, by their meaning or intent,  survive
the expiration or termination of any Schedule will so survive.

8.8  THIS SERVICES AGREEMENT AND EACH SCHEDULE
IS GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK WITHOUT REGARD TO ITS CONFLICT OF LAWS
PROVISIONS.  If there is any dispute or  litigation as a result of this Services
Agreement,  the prevailing party will be entitled to reasonable attorney's fees.
Any action by either party must be brought  within two (2) years after the cause
of action arose.

8.9 During the term of each  Schedule  and for a period of one (1) year from the
completion of the Services  thereunder,  Customer agrees not to knowingly employ
or solicit for  employment  any  NetWolves  or  subcontractor  employee  who was
involved in the furnishing of the Services under the relevant Schedule.

8.10 Terms and conditions on Customer's  purchase order or other  acknowledgment
form will be of no force or effect.
<PAGE>
8.11 NetWolves will not be considered in default hereunder due to any failure in
its  performance  of this  Services  Agreement  should such failure arise out of
causes beyond its control.  Such causes include, but are not limited to, acts of
God, acts of any federal, state or local government or authority, fires, floods,
or  other  disasters,  strikes,  degradation  of  telephone  or  other  means of
communication services or utility outages.

IN WITNESS  WHEREOF,  the  parties  have caused this  Services  Agreement  to be
executed  by their  duly  authorized  officers  as of the day and year first set
forth above.

______________________________________    NetWolves Corporation
Customer

By: __________________________________    By: __________________________________

Title: _______________________________    Title: _______________________________
Form 6000, 10/98

<PAGE>
                     SERVICES SCHEDULE DATED [INSERT DATE]
                           TO THE SERVICES AGREEMENT
                              DATED [INSERT DATE]
                  BETWEEN NETWOLVES CORPORATION ("NETWOLVES")
                        AND [CUSTOMER NAME] ("CUSTOMER")

A.   Scope of Services

     NetWolves  will provide the Services in the attached  Statement of Work. In
     the event of any conflict between this Services Schedule and a Statement of
     Work, the Statement of Work will govern.

B.   Fees

     [Include  the  details  of the  payment  schedule  here  or on an  attached
     Exhibit. As part of the payment schedule indicate when NetWolves will begin
     invoicing for each fee component.]

     Expenses will be billed monthly, or at NetWolves' option, as incurred.

C.   Commencement of the Services

     The Services will commence on [insert date that Services will begin].

D.   Term

     The term of this Schedule will commence upon  execution by both parties and
     will continue for a period of [months/weeks] from [insert trigger date].

E.   Change Control

     Upon the identification of any mutually acceptable change to this Schedule,
     Customer and NetWolves will complete a Change Authorization Form.

F.   Responsibilities

     Customer will assign a program  sponsor who will have full  authority  with
     respect  to all  matters  pertaining  to  this  Schedule  and  who  will be
     NetWolves'  primary contact.  If Customer  reassigns its program sponsor or
     such  individual  has any other conflict which would impact the delivery of
     the  Services,  Customer  will  promptly  replace  such person with another
     person  no less  qualified  or  knowledgeable  as to  Customer's  business.
     Customer will also make available to NetWolves other necessary resources on
     a timely basis and will ensure that  Customer's  personnel  involved in the
     Services have  sufficient  knowledge of all relevant  aspects of Customer's
     business,  including  technical,   financial  and  functional  requirements
     relevant to this Schedule.

     Customer  acknowledges  and agrees  that  NetWolves'  ability to perform in
     accordance  with this Schedule is  contingent  on  Customer's  accurate and
     timely  performance  of its  responsibilities.  In the event that  Customer
     fails to perform any of its  responsibilities  specified herein,  NetWolves
     may perform such responsibilities and Customer will reimburse NetWolves for
     all  costs  incurred.  Notwithstanding  the  foregoing,  NetWolves  has  no
     obligation to perform any such responsibilities.

                               Schedule - Page 1
 This document is proprietary and confidential to NetWolves, Inc. Unauthorized
                          distribution is prohibited.

<PAGE>
G.   Reviews

     When Customer review or acceptance of procedures,  plans or any other items
     are  provided  for, and  NetWolves  has not  received  written  notice from
     Customer of  acceptance  or objection  within  three (3)  business  days of
     Customer's receipt of the submitted item, the item will be deemed accepted.

H.   Delays

     In the event that  NetWolves is delayed in the  performance of the Services
     as a result of Customer's  acts or failure to act,  Customer will reimburse
     NetWolves  for all costs  incurred,  including  but not limited to any cost
     associated  with  NetWolves'  resources.  In the  event  of a delay  in the
     commencement  of the Services,  NetWolves and Customer will mutually  agree
     upon a new commencement date.

I.   Exhibits

     The Exhibits to this  Services  Schedule are hereby  incorporated  into and
     deemed to be a part of this Services Schedule.

     [List Exhibits here.]

J.   Special Terms

     Customer  will  provide  NetWolves  with access to each Site  specified  in
     Exhibit __ to enable  NetWolves to perform the  Services.  Customer will be
     responsible for preparing each Site for the  installation of the equipment,
     including  but not  limited  to,  providing  specified  power and  cabling,
     environmental  and  wiring  requirements,  and  obtaining  and  maintaining
     necessary permits and certifications.

This Services Schedule is issued pursuant to the Services  Agreement  identified
above.  All  of  the  terms  and  conditions  of  the  Services   Agreement  are
incorporated herein and made a part hereof. This Services Schedule constitutes a
separate agreement with respect to the Services provided.

_________________________________               NetWolves Corporation
Customer

By:______________________________               By:_____________________________

Title:___________________________               Title:__________________________

Date:____________________________               Date:___________________________

The terms and conditions of this Schedule,  including pricing, are valid only if
executed by [insert date].

3/99

                               Schedule - Page 2
 This document is proprietary and confidential to NetWolves, Inc. Unauthorized
                          distribution is prohibited.

<PAGE>
                                   EXHIBIT A

                            STATEMENT OF WORK NO. 1
                            TO THE SERVICES SCHEDULE
                        DATED ____________________, 1999
                        BETWEEN NETWOLVES ("NETWOLVES")
                   AND _________________________ ("CUSTOMER")

1.0  Scope of Services

     NetWolves  will  provide the  following  services at the sites  detailed in
     document to be supplied by customer to the Services Schedule for Customer's
     systems.  For purposes of this  Statement of Work,  "systems" will mean the
     equipment identified in Exhibit B.
     Installation
     Maintenance
     Tier 1 Help Desk
     Moves, Adds, Changes (Optional)
     De-Installation (Optional)

2.0  Service Components

     2.1  Installation

          NetWolves  will install the equipment for which site surveys have been
          completed.

          2.1.1 Service Scope

                Obtain  and  review  site  survey  for  each  site  and  confirm
                readiness.  Resolve any open issues to complete site  readiness.
                Develop site specific installation procedures.
                Coordinate and finalize scheduling of:

               *    All involved NetWolves, Customer and third party personnel.
               *    Shipping and receipt of equipment at each site.
               *    Physical implementation of the equipment.
               *    Testing  and   certification   of  installed   equipment  in
                    accordance with the test script.
               *    Site sign-off by Customer's site representative.

          2.1.2 Service Deliverables

               Site specific installation procedures.

               Fully installed, tested, and functional equipment.

               Comprehensive installation documentation, including:

               *    Descriptions, configurations and other pertinent information
                    for each item of installed equipment.
               *    Checklist of completed implementation steps and results.
               *    Outstanding or open issues list.
               *    Completed sign-off forms.

          2.1.3 Assumptions

               Customer  personnel  will be  available as scheduled to assist in
               the installation pursuant to the project plan.

               Customer  will  provide  NetWolves  with an  implementation  test
               script for each site.

               Installation  schedules will be agreed upon between NetWolves and
               Customer.

               Installations will occur during normal business hours (8:00 AM to
               5:00 PM local time,  Monday through  Friday  excluding New Year's
               Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day,
               the Friday after Thanksgiving, and Christmas Day).
<PAGE>
2.2  Maintenance

     NetWolves will provide maintenance for the equipment  identified in Exhibit
     B.

     2.2.1 Service Scope

          Determine maintenance coverage requirements.

          Maintain  inventory of configured "hot swap" boxes to be deployed upon
          dispatch.

          Upon  notification  from  NetWolves  help desk,  inventory box will be
          shipped overnight for installation.

          Technician will arrive at site and de-install current box, install and
          test  new  box  and  ship  broken  unit  to  Netwolves   facility  for
          refurbishment

          Provide  documentation  on  all of  the  above  to  Customer  and,  if
          appropriate,   to  the  NetWolves  Help  Desk  or  NetWolves   Network
          Management Center.

     2.2.2 Service Deliverables

          Next day on-site replacement for broken boxes

2.3  Moves, Adds and Changes (Optional)

     NetWolves  will  provide  moves,  adds,  and  changes on a demand  basis to
     facilitate modifications to the network environment.

     2.3.1 Service Scope

          Determine  scope of work to be  performed,  including  scheduling  and
          pricing.

          Coordinate  necessary  services or materials to facilitate  the change
          (equipment, software, telecommunications, etc.).

          Identify resources to perform the change (NetWolves,  Customer, and/or
          third-party personnel).

          Schedule and coordinate execution of the change.

          Execute the change and test, as applicable.

     2.3.2Service  Deliverables  Implementation of the change as specified by an
          authorized  change  request.   Notification  and  documentation   upon
          completion, as appropriate.

     2.3.3 Assumptions

          Moves, adds, and changes are modifications to the network  environment
          which  are  outside  the  scope  of this  Statement  of  Work  and are
          therefore priced on a demand basis.

          Customer will provide access to Customer sites where these  activities
          will be performed.

          Customer will provide site contacts,  as appropriate,  for inspection,
          decision-making and site sign- off.

          Moves,  adds and changes will only be provided  based upon  authorized
          change requests.

2.4  De-Installation (Optional)

     NetWolves  will  de-install  the equipment for which site surveys have been
     completed.

     2.4.1 Service Scope

          Development of site specific de-installation procedures.

          De-installation of equipment as determined by procedures.

          Prepare equipment for shipment.

     2.4.2 Service Deliverables

          Site specific de-installation procedures.

          De-installation documentation, including:

          *    Descriptions,  serial numbers,  versions,  and/or other pertinent
               information identified in the de- installation procedures.
<PAGE>
          *    Checklist of completed de-installation steps and results.

          *    Outstanding or open issues list.

     2.4.3 Assumptions

          NetWolves will perform  de-installations  only at those sites at which
          NetWolves is performing implementation of new equipment.

          Customer will provide a list of the equipment to be de-installed

2.5  Help Desk Operation

*    Customer  will have access to the Help Desk on a 7x24x365  basis except for
     New Year's Day,  Memorial  Day,  July 4, Labor Day,  Thanksgiving  Day, the
     Friday after  Thanksgiving,  and Christmas  Day.  NetWolves  will route all
     calls outside of the scheduled access hours to Customer for resolution.

*    The Help Desk will  provide the first  point of contact for end users.  End
     users may submit requests to the Help Desk via telephone,  e-mail, or voice
     mail.

*    The first point of contact will consist of  providing  the initial  problem
     analysis and resolution.  Escalations will be handled under mutually agreed
     upon escalation procedures.

*    NetWolves  will  provide a Help Desk  Supervisor  who will manage the daily
     operation of the Help Desk. The Help Desk  Supervisor  will report directly
     to the NetWolves Help Desk Service  Manager who will be responsible for the
     overall management of the Help Desk.

<PAGE>
                                   Exhibit F
                        to the Master Program Agreement
                       between NetWolves Corporation and
                                 Comdisco, Inc.
                              Dated July 26, 1999

                                Target Customer
                                ---------------

Any company or account engaged in the distance learning  application through the
Sullivan Group and NetWolves Corporation.
<PAGE>
                                   Exhibit G
                        to the Master Program Agreement
                       between NetWolves Corporation and
                                 Comdisco, Inc.
                              Dated July 26, 1999

            Form of Master Agreement and Services Schedule attached.<PAGE>   1
                                                                     Exhibit 4.1

                                    Exhibit A
                               (Face of Security)

CUSIP ____________

No. ___                                                          $ _____________

                      10.0% SENIOR REDEEMABLE SECURED NOTE
                             DUE NOVEMBER ___, 2004

                            EXCEL LEGACY CORPORATION

promises to pay to
                                  _____________

or registered assigns,
the principal sum of              _____________    Dollars on November ___, 2004

Interest Payment Dates:        February 15 and August 15
Record Dates:                  February 1 and August 1

                This is one of the Securities described in the within-mentioned
        Indenture. Additional provisions of this Security are set forth on the
        other side of this Security.

Authenticated:                                        Dated:

Norwest Bank Minnesota, National Association,         Excel Legacy Corporation
as Trustee

By ________________________                           By _____________________
     Authorized Signature

        OR

as Authenticating Agent

By ________________________
    Authorized Signature

                                       1

<PAGE>   2
                               (Back of Security)

                      10.0% Senior Redeemable Secured Note
                             due November ___, 2004

        1. Interest. Excel Legacy Corporation, a Delaware corporation (the
"Company"), promises to pay interest on the principal amount of this Security at
the rate per annum shown above. The Company will pay interest semiannually on
February 15 and August 15 of each year. Interest on the Securities will accrue
from the most recent date to which interest has been paid or, if no interest has
been paid, from August 15, 1999. Interest will be computed on the basis of a
360-day year of twelve 30-day months.

        2. Method of Payment. The Company will pay interest on the Securities
(except defaulted interest) to the persons who are registered holders of
Securities at the close of business on the record date for the next interest
payment date even though Securities are canceled after the record date and on or
before the interest payment date. Holders must surrender Securities to a Paying
Agent to collect principal payments. The Company will pay principal and interest
in money of the United States that at the time of payment is legal tender for
payment of public and private debts. However, the Company may pay principal and
interest by check payable in such money. It may mail an interest check to a
holder's registered address.

        3. Paying Agent and Registrar. The Trustee will act as Paying Agent and
Registrar. The Company may change any Paying Agent, Registrar or co-registrar
without prior notice. The Company or any of its subsidiaries may act in any such
capacity.

        4. Indenture and Pledge Agreement. The Company issued the Securities
under an Indenture dated as of November ___, 1999 ("Indenture") between the
Company and the Trustee. The terms of the Securities include those stated in the
Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) (the "TIA") as in
effect on the date of the Indenture. The Securities are subject to, and
qualified by, all such terms, certain of which are summarized hereon, and
Securityholders are referred to the Indenture and such Act for a statement of
such terms. The Securities are general obligations of the Company limited to
$___________ in aggregate principal amount. The Securities are secured by a
pledge of certain shares of common stock, par value $.0001 per share, of Price
Enterprises, Inc., a Maryland corporation, pursuant to the Pledge Agreement
referred to in the Indenture.

        5. Optional Redemption. The Company may redeem all or some of the
Securities at any time and from time to time at the redemption price of 100% of
the principal amount of such Securities plus accrued interest to the redemption
date.

        6. Notice of Redemption. Notice of redemption will be mailed at least 30
days but not more than 60 days before the redemption date to each holder of
Securities to be redeemed at his registered address. Securities in denominations
larger than $1,000 may be redeemed in part but only in whole multiples of
$1,000. In the event of a redemption of less than all of the Securities, the
Securities will be chosen for redemption by the Trustee, generally pro rata or
by

                                       2

<PAGE>   3
lot. On and after the redemption date interest ceases to accrue on Securities or
portions of them called for redemption.

        If this Security is redeemed subsequent to a record date with respect to
any interest payment date specified above and on or prior to such interest
payment date, then any accrued interest will be paid to the person in whose name
this Security is registered at the close of business on such record date.

        7. Denominations, Transfer, Exchange. The Securities are in registered
form without coupons in denominations of $1,000 and integral multiples of
$1,000. The transfer of Securities may be registered and Securities may be
exchanged as provided in the Indenture. The Registrar may require a holder,
among other things, to furnish appropriate endorsements and transfer documents
and to pay any taxes and fees required by law or permitted by the Indenture. The
Registrar need not exchange or register the transfer of any Security or portion
of a Security selected for redemption (except the unredeemed portion of any
Security being redeemed in part). Also, it need not exchange or register the
transfer of any Securities for a period of 15 days before a selection of
Securities to be redeemed.

        8. Persons Deemed Owners. Except as provided in paragraph 2, the
registered holder of a Security may be treated as its owner for all purposes.

        9. Amendments and Waivers. Subject to certain exceptions, the Indenture
or the Securities may be amended with the consent of the holders of at least a
majority in principal amount of the then outstanding Securities, and any
existing default may be waived with the consent of the holders of a majority in
principal amount of the then outstanding Securities. Without the consent of any
Securityholder, the Indenture or the Securities may be amended to cure any
ambiguity, defect or inconsistency, to provide for assumption of the Company's
obligations to Securityholders or to make any change that does not adversely
affect the rights of any Securityholder.

        10. Defaults and Remedies. An Event of Default is: default for 30 days
in payment of interest on the Securities; default in payment of principal on
them; failure by the Company for 30 days after notice to it to comply with any
of its other agreements in the Indenture or the Securities or, in the case of
failure by the Company to maintain its corporate existence or to comply with the
restrictions on consolidation, merger or transfer or lease of substantially all
its assets, with such notice but without such passage of time; certain defaults
under and accelerations prior to maturity of other indebtedness; certain final
judgments which remain undischarged; and certain events of bankruptcy or
insolvency. If an Event of Default occurs and is continuing, the Trustee or the
holders of at least 25% in principal amount of the then outstanding Securities
may declare all the Securities to be due and payable immediately, except that in
the case of an Event of Default arising from certain events of bankruptcy or
insolvency, all outstanding Securities become due and payable without further
action or notice. Securityholders may not enforce the Indenture or the
Securities except as provided in the Indenture. The Trustee may require
indemnity satisfactory to it before it enforces the Indenture or the Securities.
Subject to certain limitations, holders of a majority in principal amount of the
then outstanding Securities may direct the Trustee in its exercise of any trust
or power. The Trustee may withhold from Securityholders notice of any

                                       3

<PAGE>   4
continuing default (except a default in payment of principal or interest) if it
determines that withholding notice is in their interests. The Company must
furnish an annual compliance certificate to the Trustee.

        11. Trustee Dealings with the Company. Subject to certain limitations
imposed by the TIA, the Trustee under the Indenture, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services
for the Company or its Affiliates, and may otherwise deal with the Company or
its Affiliates, as if it were not Trustee.

        12. No Recourse Against Others. A director, officer, employee or
stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. Each Securityholder by accepting a Security waives and releases all
such liability. The waiver and release are part of the consideration for the
issue of the Securities.

        13. Authentication. This Security shall not be valid until authenticated
by the manual signature of the Trustee or an authenticating agent.

        14. Abbreviations. Customary abbreviations may be used in the name of a
Securityholder or an assignee, such as: TEN COM (= tenants in common), TEN ENT
(= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

        15. CUSIP Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Securities and the Trustee may use CUSIP
numbers in notices of redemption as a convenience to Securityholders. No
representation is made as to the accuracy of such numbers either as printed on
the Securities or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed thereon.

The Company will furnish to any Securityholder upon written request and without
charge a copy of the Indenture, which has in it the text of this Security in
larger type. Requests may be made to:

                       Treasurer, Excel Legacy Corporation
                         16955 Via Del Campo, Suite 100
                           San Diego, California 92127

                                       4

<PAGE>   5
                                 ASSIGNMENT FORM

To Assign this Security, fill in the form below:

I or we assign and transfer this Security to

                               __________________
                              [__________________]
             (Insert assignee's social security or tax I.D. number)

                               __________________

                               __________________

                               __________________

                               __________________

              (Print or type assignee's name, address and zip code)

and irrevocably appoint _________________________, agent to transfer this
Security on the books of the Company. The agent may substitute another to act
for him.

Dated:   _________________________  Signed:  _____________________________
                                             (Sign exactly as your name appears
                                             on the other side of this Security)

                                       5

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