Document:

accesskey_ex1017.htm

    EXHIBIT
10.17

     

    MASTER
DEVELOPMENT CONTRACT

     

    This
contract by and between CSI Digital, Inc., identified as CSI, and AccessKey IP,
Inc., identified as AccessKey, collectively the parties, hereby enter into a
formal contract for the pursuit of having AccessKey develop products identified
as:

     

    
      	
              ●  
        

            	
              A
      proprietary IPTV middleware product (base source code to be supplied by
      CSI) and dongle with encryption software, that collectively enable the
      authorized delivery of video on demand and live streaming IPTV video to a
      television via a CSI specified Set Top
Box

            

    

    
      	
              ●  
        

            	
              The
      proprietary IPTV middleware and dongle with encryption software
      interoperating with a PC to deliver encrypted video on demand and live
      streaming IPTV video

            

    

    
      	
              ●  
        

            	
              The
      dongle with encryption software interoperating with four CSI selected
      middleware software products to be integrated with the CSI specified Set
      Top Box to deliver encrypted video on demand and live streaming IPTV
      video

            

    

     

    The
parties agree that this is the statement of work as of this date, May 15,
2008

     

    CONTRACT
BASIS

     

    CSI
desires to enter into a formal contract with AccessKey, wherein AccessKey will
develop its Middleware and dongle encryption software to be deployed on mutually
agreed third party Set Top Boxes. The deliverables will include miscellaneous
functionality in accordance CSI’s requirements. Specifically, AccessKey will
develop the following combinations of products as listed below:

     

    
      	
              1. 
        

            	
              An
      IPTV based proprietary middleware and dongle with encryption product for
      use on CSI specified Set Top Boxes

            

    

    
      	
              2. 
        

            	
              AccessKey
      PC- better known as the ‘dongle’, a PC based version of the STB, that
      includes the middleware software and a USB based device which together
      allow viewing of video content securely via a client’s PC from a broadband
      connection.

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
              3. 
        

            	
              A
      PC dongle and Set Top box product that is integrated with four other CSI
      specified middleware software
products

            

    

    
      	
              4. 
        

            	
              Proprietary
      ‘Middleware’ software which may be licensed to other STB providers and
      their clients.  Specific detail regarding the integration of the
      STB and Dongle with the middleware is illustrated in Addendum
      B.

            

    

    
      	
              5. 
        

            	
              The
      AccessKey Products developed for CSI will be able to be branded, or white
      labeled, by both parties with full agreement and discussion as to the
      marketability of said products, not with the intent of competing or
      diluting either parties position in the marketplace.  Third
      party ‘white labeling’ will fall under the same general understanding and
      discussion.

            

    

    
      	
              6. 
        

            	
              All
      products will by integrated and function with with Verimatrix, Inc.’s AES
      encryption and meet their content security
      standards.  Additionally, AccessKey developed security functions
      may be incorporated into all or some of the new
  products.

            

    

     

    CONTRACT
AMOUNT

     

    The
contract amount for this work is $1,500,000 paid by CSI to AccessKey for
engineering, development and the initial production of product.  This
amount is to be repaid by AccessKey to CSI over the course of the first order of
approximately 150,000 Set Top Boxes to CSI as described in the subsequent
paragraphs.

     

    FUNDING

     

    Initial
funding will occur in traunches, $500,000 on execution of this contract, with
the remaining $1,000,000 payable in accordance with the cash flow schedule of
Addendum C, which is tied to Milestones.   Each payment will be
accompanied by a list of completed tasks, in accordance with the milestone
events. The milestone events are tied to the Product requirements and Functional
Specifications of Addendum B.  Checks for payment will only be issued
after milestones are satisfied for that particular period. If Milestones are
achieved in advance of the schedules, payments will be accelerated in accordance
with completion.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    PRODUCT
SPECIFICATIONS

     

    Product
specifications and functionality will be jointly developed and mutually agreed
upon in writing by all parties.  Subcontractors will be subject to the
terms and conditions of the contracts, NDA’s, and agreements mutually developed
by both CSI and AccessKey.  All specifications and or modifications
will be strictly adhered to within the context of the original
agreements.

     

    JURISDICTION

     

    Any
disputes arising from the sub contractors or as a function of this initial
Master contract that cannot be resolved by mutual agreement of the senior
company officers, will be subject to binding arbitration in the state of Oregon
unless an unlawful action or breach of contract is alleged.  Each
party will be bound by the decision of the arbitrator and each party will be
responsible for their own expenses.

     

    Each of
the parties, not including the Subcontractors, will individually own separate,
full and undivided rights to all products designed specifically for these
applications, as well as any associated intellectual property and all associated
software developed under this Contract.  AccessKey and its
Subcontractors will deliver to CSI copies of all relevant specifications,
schematics, drawings, processes and design documents, software source and object
codes at payment milestones or upon request from CSI.  The intent is
to assure CSI of all working documentation and any relevant white paper
documents.  Ownership and compensation terms for any products
developed after the term of this contract, utilizing the sum or part of this
mutually developed product, the terms of which will be negotiated separately
from this contract before they are taken to the market place.

     

    ASSURANCES

     

    This
contract is specifically intended to assure AccessKey that CSI will initially
purchase Set Top Boxes, the AccessKey PC, known as the ‘dongle’ and any
licensable middleware.  This contract is non exclusive and allows CSI
to purchase alternative product from suppliers other than AccessKey if the
situation so warrants and with the expressed compliance of this contract and its
components.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    PRICING

     

    Pricing
of the product is to be based upon the actual build costs, which include the
base line CSI specified set top box(es), any and all manufacturing costs, any
and all third party software royalties, packaging, shipping, import/export
documentation and any related costs as a portion of the completed
product.  It is incumbent upon AccessKey to furnish complete
accounting records and documentation of all related costs of this project or sub
projects.  CSI will receive favored nation pricing on all components
for the life of this agreement.

     

    **

     

    **

     

    Quantity
price reductions, once the original repayment has been satisfied is as
follows:  If CSI STB deliveries exceed 25,000 units in any given
quarter; the profit percentage will be reduced to 4.0%.  Quantities
consisting of 35,000 or more will consist of a profit percentage of 0%. CSI may
accept the discount in the form of a rebate back to CSI or as a credit towards
future purchases.

     

    REPAYMENT

     

    Repayment
of the $1,500,000 will be rebated to CSI on all delivered CSI specified Set Top
Boxes.  This repayment will take the form of the 10% profit percentage
via a rebate directly to CSI or a discount on the purchase
price.   Rebates or discounts will no longer apply if the
repayment is not satisfied within a three year period of the signing of this
contract.  The remaining repayment balance will be waived if not
satisfied by purchases within the aforementioned three year period.

     

    AUDIT
RIGHTS

     

    CSI will
maintain full audit rights with AccessKey for the duration of this contract
regarding to tooling, manufacturing and assembly pricing.  Once the
initial contract amount has been repaid to CSI, CSI may establish alternate
sources for manufacturing and supply.  However, continued product
upgrades and documentation to those upgrades will not be furnished to CSI should
they decide to utilize alternative sources.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    THIRD
PARTY SALES

     

    The sale
of products, jointly developed by AccessKey and CSI, but sold exclusively by
AccessKey to a third party, during the tenure of this contract for the three
year period, will entitle CSI to a royalty fee of 50% of the net profit margin,
less any freight or taxes expense or out of pocket expenses relative to
non-production costs.  This royalty can be in the form of an
additional discount on product purchased by CSI, a direct cash payment or a
negotiated instrument such as stock grants, warrants, or options in
AccessKey.

     

    EXCLUSIVE
DISTRIBUTION

     

    The
potential exists for CSI to become the exclusive distributor of the herein
contained products, negotiated separately from this contract.

     

    PUBLIC
ANNOUNCEMENTS

     

    Both
parties agree to mutually approve, on a timely basis, all press announcements
and investor relations announcements when they regard the joint efforts of
AccessKey and CSI.  Each party will maintain their exclusive
identity.  AccessKey, because of its public listing, will be required
to address all material events, sales, revenues, contracts, et al, and should
these involve CSI, CSI will have full rights of review.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    AGREED:

     

    For CSI
Digital, Inc.

     

     

    
      	    /s/ David C.
      Luman                                                  
       	Date   5/22/2008 
	David C. Luman,
      Chief Executive Officer  	 

    

     

        

    For
AccessKey IP, Inc.

     

     

    
      
        	    /s/ George
      Q.
      Stevens                                               	Date   5/22/2008 
	George Q. Stevens,
      Chairman 	 

      

       

    

     

     

    6accesskey_ex1018.htm

    EXHIBIT
10.18

     

    

     

    THE
OPTION REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES TO BE ISSUED
UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES
LAWS (THE “STATE ACTS”) AND SHALL NOT BE SOLD OR TRANSFERRED
UNLESS SUCH SALE OR TRANSFER HAS BEEN REGISTERED UNDER THE
SECURITIES ACT AND STATE ACTS, OR AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS IS AVAILABLE, THE AVAILABILITY OF WHICH MUST BE
ESTABLISHED TO THE SATISFACTION OF THE COMPANY.

    

    $_____  STOCK
PURCHASE OPTIONS

    

    

    Option
No. ______ Number of Shares: _____________

    

    ACCESSKEY
IP, INC.

    COMMON
STOCK, $0.001 par value PER SHARE

    

    

    

    This
Option is issued to ____________ (“Purchaser”) by ACCESSKEY IP, INC., a
Nevada corporation (hereinafter with its successors called the
“Company”).

    

    For value
received and subject to the terms and conditions hereinafter set out, Purchaser
is entitled to purchase from the Company:

    

    __________
shares of Common Shares at a purchase price of $______ per
share,

    

    all being
fully paid and nonassessable shares of common stock, $0.001 par value per share
(“Common Shares”) of the Company. Such purchase price per Common Share, as
provided herein, is referred to as the “Purchase Price.”

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    The
Purchaser may exercise this Option, in whole or in part, upon surrender of this
Option, with the exercise form annexed hereto duly executed, at the office of
the Company, or such other office as the Company shall notify the Purchaser in
writing, together with a certified or bank cashier’s check payable to the order
of the Company in the amount of the Purchase Price times the number of Common
Shares being purchased.

    

    1. The
person or persons in whose name or names any certificate representing Common
Shares is issued hereunder shall be deemed to have become the holder of record
of the Common Shares represented thereby as of the close of business on the date
on which this Option is exercised with respect to such shares, whether or not
the transfer books of the Company shall be closed. Until such time as this
Option is exercised or terminates, the Purchase Price payable and the number and
character of securities issuable upon exercise of this Option are subject to
adjustment as hereinafter provided.

    

    2. The
Company covenants that it will at all times reserve and keep available a number
of its authorized Common Shares, free from all preemptive rights, which will be
sufficient to permit the exercise of this Option. The Company further covenants
that such shares as may be issued pursuant to the exercise of this Option will,
upon issuance, be duly and validly issued, fully paid and nonassessable and free
from all taxes, liens, and charges.

    

    4. If the
Company subdivides its outstanding Common Shares, by split-up or otherwise, or
combines its outstanding Common Shares, the Purchase Price then applicable to
shares covered by this Option shall forthwith be proportionately decreased in
the case of a subdivision, or proportionately increased in the case of a
combination.

    

    5. If (a)
the Company reorganizes its capital, reclassifies its capital stock,
consolidates or merges
with or into another corporation (but only if the Company is not the surviving
corporation and no longer has more than a single shareholder) or sells,
transfers or otherwise disposes of all or substantially all its property,
assets, or business to another corporation, and (b) pursuant to the terms of
such reorganization, reclassification, merger, consolidation, or disposition of
assets, shares of common stock of the successor or acquiring corporation, or any
cash, shares of stock, or other securities or property of any nature whatsoever
(including Options or other subscription or purchase rights) in addition to or
in lieu of common stock of the successor or acquiring corporation (“Other
Property”), are to be received by or distributed to the holders of Common
Shares, then (c) Purchaser shall have the right thereafter to receive, upon
exercise of this Option, the same
number of shares of common stock of the successor or acquiring corporation and
Other Property receivable upon such reorganization, reclassification, merger,
consolidation, or disposition of assets as a holder of the number of Common
Shares for which this Option is exercisable immediately prior to such event. At
the time of such reorganization, reclassification, merger, consolidation or
disposition of assets, the successor or acquiring corporation shall expressly
assume the due and punctual observance and performance of each and every
covenant and condition of this Option to be performed and observed by the
Company and all the obligations and liabilities 

     

    
      
        
        

      

      
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    hereunder,
subject to such modifications as may be deemed appropriate (as determined by
resolution of the Board of Directors of the Company) in order to adjust the
number of shares of the common stock of the successor or acquiring corporation
for which this Option is exercisable. For purposes of this section, “common
stock of the successor or acquiring corporation” shall include stock of such
corporation of any class which is not preferred as to dividends or assets over
any other class of stock of such corporation and which is not subject to
redemption and shall also include any evidences of indebtedness, shares of
stock, or other securities which are convertible into or exchangeable for any
such stock, either immediately or upon the arrival of a specified date or the
happening of a specified event and any Options or other rights to subscribe for
or purchase any such
stock. The foregoing provisions of this section shall similarly apply to
successive reorganizations,
reclassifications, mergers, consolidations, or disposition of
assets.

    

    6. If a
voluntary or involuntary dissolution, liquidation or winding up of the Company
(other than in connection with a merger or consolidation of the Company) is at
any time proposed during the term of this Option, the Company shall give written
notice to the Purchaser at least thirty days prior to the record date of the
proposed transaction. The notice shall contain: (1) the date on which the
transaction is to take place; (2) the record date (which must be at least thirty
days after the giving of the notice) as of which holders of the Common Shares
entitled to receive distributions as a result of the transaction shall be
determined; (3) a brief description of the transaction; (4) a brief description
of the distributions, if any, to be made to holders of the Common Shares as a
result of the transaction; and (5) an estimate of the fair market value of the
distributions. On the date of the transaction, if it actually occurs, this
Option and all rights existing under this Option shall terminate.

    

    7. In no
event shall any fractional Common Share of the Company be issued upon any
exercise of this Option. If, upon exercise of this Option as an entirety, the
Purchaser would, except as provided in this Section 7, be entitled to receive a
fractional Common Share, then the Company shall issue the next higher number of
full Common Shares, issuing a full share with respect to such fractional share.
If this Option is exercised at one time for less than the maximum number of
Common Shares purchasable upon the exercise hereof, the Company shall issue to
the Purchaser a new Option of like tenor and date
representing the number of Common Shares equal to the difference between the
number of shares purchasable upon full exercise of this Option and the number of
shares that were purchased upon the exercise of this Option.

    

    8.
Whenever the Purchase Price is adjusted, as herein provided, the Company shall
promptly deliver to the Purchaser a certificate setting forth the Purchase Price
after such adjustment and setting forth a brief statement of the facts requiring
such adjustment.

    

    9. If at
any time prior to the expiration or exercise of this Option, the Company shall
pay any dividend or make any distribution upon its Common Shares or shall make
any subdivision or combination of, or other change in its Common Shares, the
Company shall cause notice thereof to be mailed, first class, postage prepaid,
to Purchaser at least thirty full business days prior to the record date set for
determining the holders of Common Shares who shall participate in such dividend,
distribution, subdivision, combination or other change. Such notice shall also
specify the record date as of which holders of Common Shares who shall
participate in such dividend or distribution is to be determined. Failure to
give such notice, or any defect therein, shall not affect the legality or
validity of any dividend or distribution.

    

    
      
        
        

      

      
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    10. The
Company will maintain a register containing the names and addresses of the
Purchaser and any assignees of this Option. Purchaser may change its address as
shown on the Option register by written notice to the Company requesting such
change. Any notice or written communication required or permitted to be given to
the Purchaser may be delivered by confirmed facsimile or telecopy or by a
recognized overnight courier, addressed to Purchaser at the address shown on the
Option register.

    

    11. This
Option has not been registered under the Securities Act of 1933, as amended (the
“Securities Act”), or any state securities laws (“State Acts”) or regulations in
reliance upon exemptions under the Securities Act, and exemptions under the
State Acts. Subject to compliance with the Securities Act and State Acts, this
Option and all rights hereunder are transferable in whole or in part, at the
office of the Company at which this Option is exercisable, upon surrender of
this Option together with the assignment hereof properly endorsed. The Common
Stock into which the Options are exercisable will have piggyback registration
rights, and the Options will be transferable. If by September 30, 2007, the
Company does not register the shares of Common Stock into which the Options are
exercisable, or the shares of Common Stock into which the Options are
exercisable are not otherwise freely tradable, then, at Purchaser’s option, the
Option exercise may be cashless.

    

    12. In
case this Option shall be mutilated, lost, stolen, or destroyed, the Company may
issue a new Option of like tenor and denomination and deliver the same (a) in
exchange and substitution for and upon surrender and cancellation of any
mutilated Option, or (b) in lieu of any Option lost, stolen, or destroyed, upon
receipt of evidence satisfactory to the Company of the loss, theft or
destruction of such Option (including a reasonably detailed affidavit with
respect to the circumstances of any loss, theft, or destruction) and of
indemnity with sufficient surety satisfactory to the Company.

    

    13.
Unless a current registration statement under the Securities Act, shall be in
effect with respect
to the securities to be issued upon exercise of this Option, the Purchaser, by
accepting this Option, covenants and agrees that, at the time of exercise
hereof, and at the time of any proposed transfer of securities acquired upon
exercise hereof, the Company may require Purchaser to make such representations,
and may place such legends on certificates representing the Common Shares
issuable upon exercise of this Option, as may be reasonably required in the
opinion of counsel to the Company to permit such Common Shares to be issued
without such registration.

    

    14. This
Option does not entitle Purchaser to any of the rights of a stockholder of the
Company.

    

    
      
        
        

      

      
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    15.
Nothing expressed in this Agreement and nothing that may be implied from any of
the provisions hereof is intended, or shall be construed, to confer upon, or
give to, any person or corporation other than the parties to this Agreement any
covenant, condition, stipulation, promise, or agreement contained herein, and
all covenants, conditions, stipulations, promises and agreements contained
herein shall be for the sole and exclusive benefit of the parties hereto and
their respective successors and assigns.

    

    16. The
provisions and terms of this Option shall be construed in accordance with the
laws of the State of Nevada.

     

    IN
WITNESS WHEREOF, this Option has been duly executed by the Company as of
ACCESSKEY
IP, INC.

    

    

    By:    /s/ George
Stevens                                   

            
George Stevens, CEO

    

    
      
        
        

      

      
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    FORM
OF EXERCISE

    

    

    Date:
____________________

    

    To: ACCESSKEY IP,
INC.

     

    The
undersigned hereby subscribes for _______ shares of common stock of ACCESSKEY
IP, INC. covered by this Option and hereby delivers $___________ in full payment
of the purchase price thereof. The certificate(s) for such shares should be
issued in the name of the undersigned or as otherwise indicated
below:

     

    
      	 	______________________________________ 
	 	Signature: 
	 	 
	 	______________________________________ 
	 	Printed
      Name 
	 	 
	 	______________________________________ 
	 	Name for
      Registration, if different 
	 	 
	 	______________________________________ 
	 	Street
      Address 
	 	 
	 	______________________________________ 
	 	City, State and Zip
      Code 
	 	 
	 	______________________________________ 
	 	Social Security
      Number 

    

     

     

    
 

    
      
        
        

      

      
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    ASSIGNMENT

     

    For Value
Received, the undersigned hereby sells, assigns and transfers unto the
assignee(s) set forth below the within Option certificate, together with all
right, title and interest therein, and hereby irrevocably constitutes and
appoints ___________________________________ attorney, to transfer the said
Option on the books of the within-named Company with respect to the number of
Common Shares set forth below, with full power of substitution in the
premises.

    

    
    

     

    
      	
              Name(s)
      of

              Assignee(s)

            	
              Social
      Security or 

              other
      Identifying

              Number(s)
      of 

              Assignee(s) 

            	
              Address

            	
              No. of

              Shares

            

    

     

     

     

     

    
      	 	Dated:
      ______________________________ 
	 	 
	 	            
      ______________________________ 
	 	
              Signature

            
	 	 
	 	
              NOTICE: THE SIGNATURE TO
      THISASSIGNMENT MUST CORRESPONDWITH THE NAME AS WRITTENUPON THE FACE OF THE
      OPTION IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT,
      OR ANY CHANGE WHATSOEVER. 

            
	 	 
	 	 
	 	____________________________________ 
	 	Print Name and
      Title 

    

     

     

     

    7

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