"As I recal, Digecor calims the $25000.00 they NEVER GAVE TO EDIG for the NDA agreement gave them the right to use EDIG Tech for 7 years from the date NDA was signed."

They say they have/had a right because of wording within a DRM agreement.

A first agreement of NDA(Nondisclosure agreement) for 7 years, was between Boyer/APS and e.Digital, dated April 2, 2002.

A second agreement was dated October 22,2002 between Boyer/APS and e.Digital for the development of a player for the Alaska Airline venture. Item, Exhibit D, is stipulated to have a revenue sharing split for future markets. Item I, is an ND(Nondisclosure) set within this agreement. Item Q constitutes an understanding that this agreement supersedes any and all prior oral or written communications.

Oct 31, 2005 Wencor issued e.Digital a PO #CJ5lY9RCW to be shipped to digEcor and paid by digEcor, for DigEplayer parts and particulars amounting to $1,270,000.00, while only dating two deliveries for $793,750 to be sent. With that, a foot note at the bottom stating"contingent upon reaching an agreement on DRM terms"

Nov 11, 2005 e.Digital entered into agreement of the PO and the DRM.

The 25,000 was a separate issue for a DRM project detailed between digEcor and e.Digital dated Nov 11, 2005. The 25,000 was to secure an unlimited, irrevocable right. The DRM development agreement also had a concession stated to the effect, that a 1250 unit order of Digeplayes would be part of the deal for this agreement.

doni