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FORM 3 OMB APPROVAL
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OMB Number 3235-0104
Expires: September 30, 1998
Estimated average burden
hours per response 0.5
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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 3
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person
McCullough, James R.
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(Last) (First) (Middle)
c/o Coyote Network Systems, Inc.
4360 Park Terrace Drive
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(Street)
Westlake Village, CA 91361
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(City) (State) (ZIP)
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2. Date of Event Requiring Statement (Month/Day/Year)
January 26, 2000
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3. IRS or Social Security Number of Reporting Person (Voluntary)
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4. Issuer Name and Ticker Trading Symbol
Coyote Network Systems, Inc. (CYOE)
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5. Relationship of Reporting Person to Issuer (check all applicable)
[ X ] Director [ ] 10% Owner
[ X ] Officer (give title below) [ ] Other (specify below)
Chief Executive Officer
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6. If Amendment, Date of Original (Month/Day/Year)
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7. Individual or Joint/Group Filing (check applicable line)
[ X ] Form Filed by One Reporting Person
[ ] Form Filed by More than One Reporting Person
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Table I - Non-Derivative Securities Beneficially Owned
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<TABLE>
<CAPTION>
1. Title of Security 2. Amount of Securities 3. Ownership Form: 4. Nature of Indirect
(Instr. 4) Beneficially Owned (Instr.4) Direct (D) or Indirect (I) Beneficial Ownership
(Instr. 5) (Instr. 5)
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<S> <C> <C> <C>
Common Stock 2,000,000 I By KRJ, LLC (1)
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Common Stock 500 D
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</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly. (Over)
Page 1 of 2 Pages
<PAGE>
FORM 3 (continued)
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Table II - Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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<TABLE>
<CAPTION>
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1. Title of Derivative 2. Date Exercisable 3. Title and Amount of 4. Conversion or 5. Ownership 6. Nature of
Security and Expiration Securities Underlying Exercise Price Form of Indirect
(Instr. 4) Date Derivative Security of Derivative Derivative Beneficial
(Month/Day/Year) (Instr. 4) Security Security: Ownership
Direct (D) or (Instr. 5)
Indirect (I)
(Instr. 5)
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Date Expir- Amount
Exer- ation Title or
cisable Date Number
of Shares
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<S> <C> <C> <C> <C> <C> <C> <C>
Employee Stock Option (2) 01/14/06 Common Stock 750,000 $5.00 D
(right to buy)
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</TABLE>
Explanation of Responses:
(1) The reporting person owns a one-third membership interest in KRJ, LLC,
which directly owns the reported securities. The Reporting Person disclaims
beneficial ownership of these securities except to the extent of his
pecuniary interest therein.
(2) Pursuant to an employment agreement dated January 26, 2000, the reporting
person received options to purchase 750,000 shares of the Company's common
stock (the "Options") at $5.00 per share. Of such Options, 300,000 are
currently vested with the remaining Options vesting over three years,
beginning on January 14, 2001, subject to acceleration if certain common
stock price targets are met and sustained.
/s/ James R. McCullough 02/07/00
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**Signature of Reporting Person Date
** Intentional misstatements or omissions of facts constitute Federal
Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78 ff(a).
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