diff --git a/secret_store/src/listener/service_contract.rs b/secret_store/src/listener/service_contract.rs
index 05aa7681a..bca739484 100644
--- a/secret_store/src/listener/service_contract.rs
+++ b/secret_store/src/listener/service_contract.rs
@@ -17,6 +17,7 @@
 use std::sync::Arc;
 use futures::{future, Future};
 use parking_lot::RwLock;
+use ethcore::filter::Filter;
 use ethcore::client::{Client, BlockChainClient, BlockId};
 use ethkey::{Public, Signature, public_to_address};
 use native_contracts::SecretStoreService;
@@ -30,15 +31,24 @@ use {ServerKeyId, NodeKeyPair, ContractAddress};
 /// Name of the SecretStore contract in the registry.
 const SERVICE_CONTRACT_REGISTRY_NAME: &'static str = "secretstore_service";
 
+/// Key server has been added to the set.
+const SERVER_KEY_REQUESTED_EVENT_NAME: &'static [u8] = &*b"ServerKeyRequested(bytes32,uint256)";
+
 /// Number of confirmations required before request can be processed.
 const REQUEST_CONFIRMATIONS_REQUIRED: u64 = 3;
 
+lazy_static! {
+	static ref SERVER_KEY_REQUESTED_EVENT_NAME_HASH: H256 = keccak(SERVER_KEY_REQUESTED_EVENT_NAME);
+}
+
 /// Service contract trait.
 pub trait ServiceContract: Send + Sync {
 	/// Update contract.
 	fn update(&self);
 	/// Is contract installed && up-to-date (i.e. chain is synced)?
 	fn is_actual(&self) -> bool;
+	/// Read contract logs from given blocks. Returns topics of every entry.
+	fn read_logs(&self, first_block: H256, last_block: H256) -> Box<Iterator<Item=Vec<H256>>>;
 	/// Publish generated key.
 	fn read_pending_requests(&self) -> Box<Iterator<Item=(bool, ServiceTask)>>;
 	/// Publish server key.
@@ -120,6 +130,34 @@ impl ServiceContract for OnChainServiceContract {
 			&& self.client.get().is_some()
 	}
 
+	fn read_logs(&self, first_block: H256, last_block: H256) -> Box<Iterator<Item=Vec<H256>>> {
+		let client = match self.client.get() {
+			Some(client) => client,
+			None => {
+				warn!(target: "secretstore", "{}: client is offline during read_pending_requests call",
+					self.self_key_pair.public());
+				return Box::new(::std::iter::empty());
+			},
+		};
+
+		// read server key generation requests
+		let contract_address = self.contract.read().address.clone();
+		let request_logs = client.logs(Filter {
+			from_block: BlockId::Hash(first_block),
+			to_block: BlockId::Hash(last_block),
+			address: Some(vec![contract_address]),
+			topics: vec![
+				Some(vec![*SERVER_KEY_REQUESTED_EVENT_NAME_HASH]),
+				None,
+				None,
+				None,
+			],
+			limit: None,
+		});
+
+		Box::new(request_logs.into_iter().map(|log| log.entry.topics))
+	}
+
 	fn read_pending_requests(&self) -> Box<Iterator<Item=(bool, ServiceTask)>> {
 		let client = match self.client.get() {
 			Some(client) => client,
@@ -258,6 +296,10 @@ pub mod tests {
 			self.is_actual
 		}
 
+		fn read_logs(&self, _first_block: H256, _last_block: H256) -> Box<Iterator<Item=Vec<H256>>> {
+			Box::new(self.logs.clone().into_iter())
+		}
+
 		fn read_pending_requests(&self) -> Box<Iterator<Item=(bool, ServiceTask)>> {
 			Box::new(self.pending_requests.clone().into_iter())
 		}
diff --git a/secret_store/src/listener/service_contract_listener.rs b/secret_store/src/listener/service_contract_listener.rs
index a6327ef3c..ebf9aff58 100644
--- a/secret_store/src/listener/service_contract_listener.rs
+++ b/secret_store/src/listener/service_contract_listener.rs
@@ -140,6 +140,31 @@ impl ServiceContractListener {
 		contract
 	}
 
+	/// Process incoming events of service contract.
+	fn process_service_contract_events(&self, first: H256, last: H256) {
+		self.data.tasks_queue.push(self.data.contract.read_logs(first, last)
+			.filter_map(|topics| match topics.len() {
+				// when key is already generated && we have this key
+				3 if self.data.key_storage.get(&topics[1]).map(|k| k.is_some()).unwrap_or_default() => {
+					Some(ServiceTask::RestoreServerKey(
+						topics[1],
+					))
+				}
+				// when key is not yet generated && this node should be master of this key generation session
+				3 if is_processed_by_this_key_server(&*self.data.key_server_set, &*self.data.self_key_pair, &topics[1]) => {
+					Some(ServiceTask::GenerateServerKey(
+						topics[1],
+						topics[2],
+					))
+				},
+				3 => None,
+				l @ _ => {
+					warn!(target: "secretstore", "Ignoring ServerKeyRequested event with wrong number of params {}", l);
+					None
+				},
+			}));
+	}
+
 	/// Service thread procedure.
 	fn run_service_thread(data: Arc<ServiceContractListenerData>) {
 		loop {
@@ -294,14 +319,23 @@ impl Drop for ServiceContractListener {
 
 impl ChainNotify for ServiceContractListener {
 	fn new_blocks(&self, _imported: Vec<H256>, _invalid: Vec<H256>, enacted: Vec<H256>, _retracted: Vec<H256>, _sealed: Vec<H256>, _proposed: Vec<Bytes>, _duration: u64) {
+		let enacted_len = enacted.len();
+		if enacted_len == 0 {
+			return;
+		}
+
 		self.data.contract.update();
 		if !self.data.contract.is_actual() {
 			return;
 		}
 
+		let reason = "enacted.len() != 0; qed";
+		self.process_service_contract_events(
+			enacted.first().expect(reason).clone(),
+			enacted.last().expect(reason).clone());
+
 		// schedule retry if received enough blocks since last retry
 		// it maybe inaccurate when switching syncing/synced states, but that's ok
-		let enacted_len = enacted.len();
 		if self.data.last_retry.fetch_add(enacted_len, Ordering::Relaxed) >= RETRY_INTERVAL_BLOCKS {
 			self.data.tasks_queue.push(ServiceTask::Retry);
 			self.data.last_retry.store(0, Ordering::Relaxed);
@@ -545,6 +579,58 @@ mod tests {
 			&"ffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffff".parse().unwrap()), true);
 	}
 
+	#[test]
+	fn no_tasks_scheduled_when_no_contract_events() {
+		let listener = make_service_contract_listener(None, None, None);
+		assert_eq!(listener.data.tasks_queue.service_tasks.lock().len(), 1);
+		listener.process_service_contract_events(Default::default(), Default::default());
+		assert_eq!(listener.data.tasks_queue.service_tasks.lock().len(), 1);
+	}
+
+	#[test]
+	fn server_key_generation_is_scheduled_when_requested_key_is_unknnown() {
+		let mut contract = DummyServiceContract::default();
+		contract.logs.push(vec![Default::default(), Default::default(), Default::default()]);
+		let listener = make_service_contract_listener(Some(Arc::new(contract)), None, None);
+		assert_eq!(listener.data.tasks_queue.service_tasks.lock().len(), 1);
+		listener.process_service_contract_events(Default::default(), Default::default());
+		assert_eq!(listener.data.tasks_queue.service_tasks.lock().len(), 2);
+		assert_eq!(listener.data.tasks_queue.service_tasks.lock().pop_back(), Some(ServiceTask::GenerateServerKey(Default::default(), Default::default())));
+	}
+
+	#[test]
+	fn no_new_tasks_scheduled_when_requested_key_is_unknown_and_request_belongs_to_other_key_server() {
+		let server_key_id = "ffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffff".parse().unwrap();
+		let mut contract = DummyServiceContract::default();
+		contract.logs.push(vec![Default::default(), server_key_id, Default::default()]);
+		let listener = make_service_contract_listener(Some(Arc::new(contract)), None, None);
+		assert_eq!(listener.data.tasks_queue.service_tasks.lock().len(), 1);
+		listener.process_service_contract_events(Default::default(), Default::default());
+		assert_eq!(listener.data.tasks_queue.service_tasks.lock().len(), 1);
+	}
+
+	#[test]
+	fn server_key_restore_is_scheduled_when_requested_key_is_knnown() {
+		let mut contract = DummyServiceContract::default();
+		contract.logs.push(vec![Default::default(), Default::default(), Default::default()]);
+		let listener = make_service_contract_listener(Some(Arc::new(contract)), None, None);
+		listener.data.key_storage.insert(Default::default(), Default::default()).unwrap();
+		assert_eq!(listener.data.tasks_queue.service_tasks.lock().len(), 1);
+		listener.process_service_contract_events(Default::default(), Default::default());
+		assert_eq!(listener.data.tasks_queue.service_tasks.lock().len(), 2);
+		assert_eq!(listener.data.tasks_queue.service_tasks.lock().pop_back(), Some(ServiceTask::RestoreServerKey(Default::default())));
+	}
+
+	#[test]
+	fn no_new_tasks_scheduled_when_wrong_number_of_topics_in_log() {
+		let mut contract = DummyServiceContract::default();
+		contract.logs.push(vec![Default::default(), Default::default()]);
+		let listener = make_service_contract_listener(Some(Arc::new(contract)), None, None);
+		assert_eq!(listener.data.tasks_queue.service_tasks.lock().len(), 1);
+		listener.process_service_contract_events(Default::default(), Default::default());
+		assert_eq!(listener.data.tasks_queue.service_tasks.lock().len(), 1);
+	}
+
 	#[test]
 	fn generation_session_is_created_when_processing_generate_server_key_task() {
 		let key_server = Arc::new(DummyKeyServer::default());