diff --git a/fs/handlers.go b/fs/handlers.go
index cf234d8..1c60f29 100644
--- a/fs/handlers.go
+++ b/fs/handlers.go
@@ -18,6 +18,14 @@ import (
 	"ollie/toolsrv"
 )
 
+// mergeCtx returns a context that cancels when either parent or child cancels.
+// parent is typically the session context; child is the per-read timeout from the server.
+func mergeCtx(parent, child context.Context) (context.Context, context.CancelFunc) {
+	merged, cancel := context.WithCancel(parent)
+	stop := context.AfterFunc(child, func() { cancel() })
+	return merged, func() { stop(); cancel() }
+}
+
 // wireAgentStateEvents sets up the agent to publish state change events to the event bus.
 func wireAgentStateEvents(sessID string, ag *agent.Agent) {
 	ag.SetOnStateChange(func(agentID, state string) {
@@ -113,8 +121,8 @@ func readEventwait(_ HandlerCtx) ([]byte, error) {
 	return nil, fmt.Errorf("eventwait: use blocking read")
 }
 
-func blockEventwait(_ HandlerCtx, cctx context.Context, base string) ([]byte, string, error) {
-	return session.WaitEvent(cctx, base)
+func blockEventwait(_ HandlerCtx, cctx context.Context, _ string) ([]byte, string, error) {
+	return session.WaitEvent(cctx)
 }
 
 func requestGenerate(ctx HandlerCtx, data []byte) ([]byte, error) {
@@ -253,6 +261,7 @@ func sessionBindings(ctx HandlerCtx) ([]Binding, error) {
 			UID:     sess.Uname(),
 			GID:     "agent",
 			Applier: func(c HandlerCtx) HandlerCtx {
+				c.Context = node.Ctx()
 				c.Session = node
 				c.Remove = func() {
 					session.Kill(n)
@@ -485,7 +494,9 @@ func readAgentChat(ctx HandlerCtx) ([]byte, error) {
 }
 
 func streamAgentChat(ctx HandlerCtx, cctx context.Context, base string) ([]byte, string, error) {
-	return streamChat(ctx.AgentLog, cctx, base)
+	merged, cancel := mergeCtx(ctx, cctx)
+	defer cancel()
+	return streamChat(ctx.AgentLog, merged, base)
 }
 
 func readAgentConnection(ctx HandlerCtx) ([]byte, error) {
@@ -499,13 +510,12 @@ func readAgentConnection(ctx HandlerCtx) ([]byte, error) {
 }
 
 func blockAgentStateWait(ctx HandlerCtx, cctx context.Context, base string) ([]byte, string, error) {
-	waitCtx, cancel := context.WithCancel(cctx)
+	merged, cancel := mergeCtx(ctx, cctx)
 	defer cancel()
-	context.AfterFunc(ctx.Session.Ctx(), cancel)
 	if base == "" {
 		base = ctx.Agent.State()
 	}
-	v, ok := ctx.Agent.WaitChange(waitCtx, agent.WatchState, base)
+	v, ok := ctx.Agent.WaitChange(merged, agent.WatchState, base)
 	if !ok {
 		st := ctx.Agent.State()
 		return []byte(st + "\n"), st, nil
diff --git a/session/event.go b/session/event.go
index 3af9d24..31348f6 100644
--- a/session/event.go
+++ b/session/event.go
@@ -56,7 +56,7 @@ func SubscribeEvents(ctx context.Context, topic string) <-chan Event {
 }
 
 // WaitEvent blocks until an event is available. Returns the event as "topic payload\n".
-func WaitEvent(ctx context.Context, _ string) ([]byte, string, error) {
+func WaitEvent(ctx context.Context) ([]byte, string, error) {
 	ch := SubscribeEvents(ctx, "*")
 	select {
 	case ev, ok := <-ch:
diff --git a/toolsrv/accessors.go b/toolsrv/accessors.go
deleted file mode 100644
index 3d00d81..0000000
--- a/toolsrv/accessors.go
+++ /dev/null
@@ -1,33 +0,0 @@
-package toolsrv
-
-import (
-	"fmt"
-	"strings"
-)
-
-// SetOnToolsChanged sets the callback for tool directory changes.
-func (s *Server) SetOnToolsChanged(fn func(string)) {
-	s.OnToolsChanged = fn
-}
-
-// ToolRegistryRevision returns the current registry revision for this server's session.
-// Returns 0 if no registry is configured.
-func (s *Server) ToolRegistryRevision() uint64 {
-	if s.toolRegistry == nil || s.sessionID == "" {
-		return 0
-	}
-	return s.toolRegistry.Revision(s.sessionID)
-}
-
-// buildToolListing formats a slice of ToolInfo into the preamble listing
-// format consumed by agent.refreshToolListing: "- **name** — description\n" per entry.
-// Only local tools (Server == "") with a non-empty description are included.
-func buildToolListing(infos []ToolInfo) string {
-	var sb strings.Builder
-	for _, ti := range infos {
-		if ti.Description != "" && ti.Server == "" {
-			fmt.Fprintf(&sb, "- **%s** — %s\n", ti.Name, ti.Description)
-		}
-	}
-	return sb.String()
-}
diff --git a/toolsrv/conn.go b/toolsrv/conn.go
index f1e0dc1..a739ee6 100644
--- a/toolsrv/conn.go
+++ b/toolsrv/conn.go
@@ -281,3 +281,29 @@ func (c *Conn) callStreaming(ctx context.Context, method string, params json.Raw
 		return nil, fmt.Errorf("rpc %s: %w", method, err)
 	}
 }
+
+// JSON-RPC 2.0 types shared between Conn (client) and transport layer.
+
+type rpcRequest struct {
+	JSONRPC string          `json:"jsonrpc"`
+	ID      int64           `json:"id"`
+	Method  string          `json:"method"`
+	Params  json.RawMessage `json:"params,omitempty"`
+}
+
+type rpcResponse struct {
+	JSONRPC string          `json:"jsonrpc"`
+	ID      int64           `json:"id"`
+	Result  json.RawMessage `json:"result,omitempty"`
+	Error   *rpcError       `json:"error,omitempty"`
+	Stream  bool            `json:"stream,omitempty"`
+}
+
+type rpcError struct {
+	Code    int    `json:"code"`
+	Message string `json:"message"`
+}
+
+type outputNotification struct {
+	Data string `json:"data"`
+}
diff --git a/toolsrv/discover.go b/toolsrv/discover.go
deleted file mode 100644
index abe23a1..0000000
--- a/toolsrv/discover.go
+++ /dev/null
@@ -1,46 +0,0 @@
-package toolsrv
-
-import (
-	"encoding/json"
-	"os"
-	"path/filepath"
-	"strings"
-
-	"ollie/paths"
-)
-
-// ToolsPath returns ~/.config/ollie/tools.
-func ToolsPath() string {
-	return paths.CfgDir() + "/tools"
-}
-
-// DiscoverTools scans the tools directory for .meta files and returns
-// metadata for all tools.
-func DiscoverTools() []ToolInfo {
-	dir := ToolsPath()
-	entries, err := os.ReadDir(dir)
-	if err != nil {
-		return nil
-	}
-	var infos []ToolInfo
-	for _, e := range entries {
-		if e.IsDir() || !strings.HasSuffix(e.Name(), ".meta") {
-			continue
-		}
-		name := strings.TrimSuffix(e.Name(), ".meta")
-		data, err := os.ReadFile(filepath.Join(dir, e.Name()))
-		if err != nil {
-			continue
-		}
-		var m MetaFile
-		if err := json.Unmarshal(data, &m); err != nil {
-			continue
-		}
-		info := ToolInfoFromMeta(name, &m)
-		if info.Name == "" {
-			continue // no variant matched — tool unavailable on this host
-		}
-		infos = append(infos, info)
-	}
-	return infos
-}
\ No newline at end of file
diff --git a/toolsrv/registry.go b/toolsrv/registry.go
index 9eb4b14..f77766c 100644
--- a/toolsrv/registry.go
+++ b/toolsrv/registry.go
@@ -1,10 +1,15 @@
 package toolsrv
 
 import (
+	"encoding/json"
 	"fmt"
 	"os"
+	"path/filepath"
 	"sort"
+	"strings"
 	"sync"
+
+	"ollie/paths"
 )
 
 type Registry struct {
@@ -110,3 +115,62 @@ func (r *Registry) Revision(sessionID string) uint64 {
 }
 
 
+
+// ToolInfo describes a tool provided by a server.
+type ToolInfo struct {
+	Server      string
+	Name        string
+	Description string
+	InputSchema json.RawMessage
+	// Prompt is the usage documentation for this tool, extracted from
+	// the script's ollie:prompt block. Included in the system prompt.
+	Prompt string
+	// Tier is the retention tier: "hot", "warm", or "cold". Parsed from
+	// the script's ollie:tier annotation. Empty defaults to "hot".
+	Tier string
+	// ReadOnly is true when the tool carries an "ollie:parallel read" annotation.
+	ReadOnly bool
+	// OutputFormat is the source-fence language for tool output. Empty means plaintext.
+	OutputFormat string
+	// ResetsCounter is true for action-oriented tools (file_write, lsp_rename, etc.)
+	// that indicate active progress rather than passive research. When true, the
+	// agent loop resets its step counter, allowing continued work without hitting
+	// the soft step-budget guardrail.
+	ResetsCounter bool
+}
+
+// ToolsPath returns ~/.config/ollie/tools.
+func ToolsPath() string {
+	return paths.CfgDir() + "/tools"
+}
+
+// DiscoverTools scans the tools directory for .meta files and returns
+// metadata for all tools.
+func DiscoverTools() []ToolInfo {
+	dir := ToolsPath()
+	entries, err := os.ReadDir(dir)
+	if err != nil {
+		return nil
+	}
+	var infos []ToolInfo
+	for _, e := range entries {
+		if e.IsDir() || !strings.HasSuffix(e.Name(), ".meta") {
+			continue
+		}
+		name := strings.TrimSuffix(e.Name(), ".meta")
+		data, err := os.ReadFile(filepath.Join(dir, e.Name()))
+		if err != nil {
+			continue
+		}
+		var m MetaFile
+		if err := json.Unmarshal(data, &m); err != nil {
+			continue
+		}
+		info := ToolInfoFromMeta(name, &m)
+		if info.Name == "" {
+			continue // no variant matched — tool unavailable on this host
+		}
+		infos = append(infos, info)
+	}
+	return infos
+}
diff --git a/toolsrv/rpc.go b/toolsrv/rpc.go
deleted file mode 100644
index 23d04c1..0000000
--- a/toolsrv/rpc.go
+++ /dev/null
@@ -1,29 +0,0 @@
-package toolsrv
-
-import "encoding/json"
-
-// JSON-RPC 2.0 types shared between Conn (client) and transport layer.
-
-type rpcRequest struct {
-	JSONRPC string          `json:"jsonrpc"`
-	ID      int64           `json:"id"`
-	Method  string          `json:"method"`
-	Params  json.RawMessage `json:"params,omitempty"`
-}
-
-type rpcResponse struct {
-	JSONRPC string          `json:"jsonrpc"`
-	ID      int64           `json:"id"`
-	Result  json.RawMessage `json:"result,omitempty"`
-	Error   *rpcError       `json:"error,omitempty"`
-	Stream  bool            `json:"stream,omitempty"`
-}
-
-type rpcError struct {
-	Code    int    `json:"code"`
-	Message string `json:"message"`
-}
-
-type outputNotification struct {
-	Data string `json:"data"`
-}
diff --git a/toolsrv/server.go b/toolsrv/server.go
index 25e2321..3d42066 100644
--- a/toolsrv/server.go
+++ b/toolsrv/server.go
@@ -392,3 +392,30 @@ func (s *Server) cleanupDetached() {
 		p.Mu.Unlock()
 	}
 }
+
+// SetOnToolsChanged sets the callback for tool directory changes.
+func (s *Server) SetOnToolsChanged(fn func(string)) {
+	s.OnToolsChanged = fn
+}
+
+// ToolRegistryRevision returns the current registry revision for this server's session.
+// Returns 0 if no registry is configured.
+func (s *Server) ToolRegistryRevision() uint64 {
+	if s.toolRegistry == nil || s.sessionID == "" {
+		return 0
+	}
+	return s.toolRegistry.Revision(s.sessionID)
+}
+
+// buildToolListing formats a slice of ToolInfo into the preamble listing
+// format consumed by agent.refreshToolListing: "- **name** — description\n" per entry.
+// Only local tools (Server == "") with a non-empty description are included.
+func buildToolListing(infos []ToolInfo) string {
+	var sb strings.Builder
+	for _, ti := range infos {
+		if ti.Description != "" && ti.Server == "" {
+			fmt.Fprintf(&sb, "- **%s** — %s\n", ti.Name, ti.Description)
+		}
+	}
+	return sb.String()
+}
diff --git a/toolsrv/tools.go b/toolsrv/tools.go
deleted file mode 100644
index d25d656..0000000
--- a/toolsrv/tools.go
+++ /dev/null
@@ -1,30 +0,0 @@
-// Package tools implements the tool server (sandboxed execution, tool registry,
-// skill management) and supporting types.
-package toolsrv
-
-import (
-	"encoding/json"
-)
-
-// ToolInfo describes a tool provided by a server.
-type ToolInfo struct {
-	Server      string
-	Name        string
-	Description string
-	InputSchema json.RawMessage
-	// Prompt is the usage documentation for this tool, extracted from
-	// the script's ollie:prompt block. Included in the system prompt.
-	Prompt string
-	// Tier is the retention tier: "hot", "warm", or "cold". Parsed from
-	// the script's ollie:tier annotation. Empty defaults to "hot".
-	Tier string
-	// ReadOnly is true when the tool carries an "ollie:parallel read" annotation.
-	ReadOnly bool
-	// OutputFormat is the source-fence language for tool output. Empty means plaintext.
-	OutputFormat string
-	// ResetsCounter is true for action-oriented tools (file_write, lsp_rename, etc.)
-	// that indicate active progress rather than passive research. When true, the
-	// agent loop resets its step counter, allowing continued work without hitting
-	// the soft step-budget guardrail.
-	ResetsCounter bool
-}