Exhibit 10.17
                                  -------------

Citizens

          Bank' Investments 'Trust . Insurance www.citizensnational.net

COMMERCIAL SECURITY AGREEMENT

       References in the shaded area are for Lender's use only and do not
    limit the applicability of this document to any particular loan or item.
              Any item above containing "***" has been omitted due
                           to text length limitations.

:_ml#___:

Grantor:

REMOTEMDX, INC.
150 W CIVIC CENTER DRIVE SUITE 400 SANDY, UT 84070

lender:

Citizens National Bank Main Office
127 S Side Square P.O. Box 1279 Macomb,IL 61455

11

THIS  COMMERCIAL  SECURITY  AGREEMENT  dated June 26, 2006, is made and executed
between REMOTEMDX, INC. ("Grantor") and Citizens National Bank ("Lender").
GRANT OF SECURITY INTEREST. For valuable consideration, Grantor grants to Lender
a security interest in the Collateral to secure the Indebtedness and agrees that
Lender  shall  have the  rights  stated in this  Agreement  with  respect to the
Collateral. in addition to all other rights which Lender may have by law.
COLLATERAL  DESCRIPTION.  The word  "Collateral" as used in this Agreement means
the  following  described  property,  whether now owned or  hereafter  acquired,
whether now  existing or  hereafter  arising,  and  wherever  located,  in which
Grantor  is  giving  to  Lender  a  security  interest  for the  payment  of the
Indebtedness  and performance of all other  obligations  under the Note and this
Agreement:
All  Equipment,  Inventory,  Accounts,  Instruments,  Documents,  Chattel Paper,
Deposit Accounts,  Letter of Credit Rights,  Supporting Obligations,  Investment
Property and General Intangibles, Whether now owned or hereafter acquired.
In addition, the word "Collateral" also includes all the following,  whether now
owned or hereafter  acquired,  whether now existing or  hereafter  arising,  and
wherever located:

(A)  All  accessions,   attachments,   accessories,   tools,  parts,   supplies,
replacements of and additions to any of the collateral described herein, whether
added now or later.
(B) All products and produce of any of the property described in this Collateral
section.
(C) All accounts, general intangibles, instruments, rents, monies, payments, and
all other rights, arising out of a sale, lease, consignment or other disposition
of any of the property described in this Collateral section.
(D) All proceeds  (including  insurance  proceeds)  from the sale,  destruction,
loss, or other  disposition of any of the property  described in this Collateral
section,  and sums due from a third  party  who has  damaged  or  destroyed  the
Collateral or from that party's insurer, whether due to judgment,  settlement or
other process.
(E) All  records  and data  relating to any of the  property  described  in this
Collateral  section,  whether in the form of a writing,  photograph,  microfilm,
microfiche,  or electronic media,  together with all of Grantor's right,  title,
and  interest in and to all  computer  software  required  to  utilize,  create,
maintain, and process any such records or data on electronic media.

FUTURE  ADVANCES.  In addition to the Note,  this  Agreement  secures all future
advances  made by Lender to Grantor  regardless of whether the advances are made
a) pursuant to a commitment or b) for the same purposes.

RIGHT OF SETOFF.  To the extent  permitted by applicable  law, Lender reserves a
right of  setoff  in all  Grantor's  accounts  with  Lender  (whether  checking,
savings,  or some other  account).  This  includes  all accounts  Grantor  holds
jointly  with  someone  else and all  accounts  Grantor  may open in the future.
However,  this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Grantor  authorizes  Lender, to the
extent  permitted by  applicable  law, to charge or setoff all sums owing on the
Indebtedness against any and all such accounts.


GRANTOR'S  REPRESENTATIONS  AND WARRANTIES WITH RESPECT TO THE COLLATERAL.  With
respect to the Collateral, Grantor represents and promises to Lender that:

Perfection of Security  Interest.  Grantor  agrees to take whatever  actions are
requested by Lender to perfect and continue  Lender's  security  interest in the
Collateral.  Upon request of Lender,  Grantor will deliver to Lender any and all
of the documents  evidencing or constituting  the  Collateral,  and Grantor will
note Lender's  interest upon any and all chattel  paper and  instruments  if not
delivered to Lender for  possession  by Lender.  This is a  continuing  Security
Agreement  and  will  continue  in  effect  even  though  all or any part of the
Indebtedness  is paid in full and even  though for a period of time  Grantor may
not be indebted to Lender.

Notices to Lender.  Grantor will  promptly  notify Lender in writing at Lender's
address shown above (or such other  addresses as Lender may designate  from time
to time)  prior to any (1) change in  Grantor's  name;  (2) change in  Grantor's
assumed  business  name(s);  (3)  change in the  management  of the  Corporation
Grantor;  (4)  change in the  authorized  signer(s);  (5)  change  in  Grantor's
principal  office address;  (6) change in Grantor's state of  organization;  (7)
conversion  of Grantor to a new or  different  type of business  entity;  or (8)
change in any other aspect of Grantor that directly or indirectly relates to any
agreements  between Grantor and Lender.  No change in Grantor's name or state of
organization will take effect until after Lender has received notice.

No Violation.  The execution and delivery of this Agreement will not violate any
law or  agreement  governing  Grantor or to which  Grantor  is a party,  and its
certificate or articles of incorporation  and bylaws do not prohibit any term or
condition of this Agreement.

Enforceability of Collateral. To the extent the Collateral consists of accounts,
chattel  paper,  or general  intangibles,  as defined by the Uniform  Commercial
Code, the Collateral is  enforceable in accordance  with its terms,  is genuine,
and fully complies with all applicable  laws and  regulations  concerning  form,
content and manner of preparation and execution, and all persons appearing to be
obligated on the  Collateral  have authority and capacity to contract and are in
fact obligated as they appear to be on the  Collateral.  At the time any account
becomes subject to a security interest in favor of Lender,  the account shall be
a good and valid account  representing  an  undisputed,  bona fide  indebtedness
incurred  by the  account  debtor,  for  merchandise  held  subject to  delivery
instructions or previously shipped or delivered


<PAGE>

loan No: 400949881

                    COMMERCIAL SECURITY AGREEMENT (Continued)

Page 2

pursuant to a contract of sale, or for services previously  performed by Grantor
with or for the account  debtor.  So long as this  Agreement  remains in effect,
Grantor shall not, without Lender's prior written consent,  compromise,  settle,
adjust, or extend payment under or with regard to any such Accounts. There shall
be no setoffs or counterclaims  against any of the Collateral,  and no agreement
shall have been made under  which any  deductions  or  discounts  may be claimed
concerning the Collateral except those disclosed to Lender in writing.

Location of the Collateral. Except in the ordinary course of Grantor's business,
Grantor agrees to keep the Collateral (or to the extent the Collateral  consists
of  intangible  property  such as accounts or general  intangibles,  the records
concerning  the  Collateral)  at Grantor's  address shown above or at such other
locations as are  acceptable  to Lender.  Upon  Lender's  request,  Grantor will
deliver to Lender in form  satisfactory  to Lender a schedule of real properties
and Collateral  locations  relating to Grantor's  operations,  including without
limitation the following:  (1) all real property  Grantor owns or is purchasing;
(2) all real property Grantor is renting or leasing;  (3) all storage facilities
Grantor  owns,  rents,  leases,  or uses;  and (4) all  other  properties  where
Collateral is or may be located.

Removal of the Collateral.  Except in the ordinary course of Grantor's business,
including the sales of inventory,  Grantor shall not remove the Collateral  from
its existing location without Lender's prior written consent. To the extent that
the Collateral consists of vehicles, or other titled property, Grantor shall not
take or permit any action which would require  application  for  certificates of
title for the vehicles outside the State of Utah, without Lender's prior written
consent. Grantor shall, whenever requested,  advise Lender of the exact location
of the Collateral.

Transactions  Involving  Collateral.  Except  for  inventory  sold  or  accounts
collected in the ordinary course of Grantor's business, or as otherwise provided
for in this  Agreement,  Grantor  shall not sell,  offer to sell,  or  otherwise
transfer or dispose of the  Collateral.  While  Grantor is not in default  under
this Agreement,  Grantor may sell inventory,  but only in the ordinary course of
its business and only to buyers who qualify as a buyer in the ordinary course of
business. A sale in the ordinary course of Grantor's business does not include a
transfer in partial or total  satisfaction  of a debt or any bulk sale.  Grantor
shall not pledge,  mortgage,  encumber or otherwise  permit the Collateral to be
subject to any lien, security interest,  encumbrance,  or charge, other than the
security  interest  provided for in this  Agreement,  without the prior  written
consent of Lender.  This includes security  interests even if junior in right to
the security  interests  granted under this Agreement.  Unless waived by Lender,
all proceeds from any disposition of the Collateral (for whatever  reason) shall
be held in trust for Lender and shall not be  commingled  with any other  funds;
provided however, this requirement shall not constitute consent by Lender to any
sale or other disposition.  Upon receipt,  Grantor shall immediately deliver any
such proceeds to Lender.

Title.  Grantor  represents  and warrants to Lender that Grantor  holds good and
marketable title to the Collateral, free and clear of all liens and encumbrances
except for the lien of this Agreement.  No financing  statement  covering any of
the  Collateral  is on file in any public  office other than those which reflect
the  security  interest  created  by  this  Agreement  or to  which  Lender  has
specifically  consented.  Grantor shall defend Lender's rights in the Collateral
against the claims and demands of all other  persons.  Repairs and  Maintenance.
Grantor  agrees to keep and maintain,  and to cause others to keep and maintain,
the  Collateral  in good  order,  repair and  condition  at all times while this
Agreement  remains in effect.  Grantor further agrees to pay when due all claims
for work done on, or services rendered or material  furnished in connection with
the  Collateral  so that no lien or  encumbrance  may ever attach to or be filed
against the Collateral.

Inspection of Collateral.  Lender and Lender's  designated  representatives  and
agents shall have the right at all  reasonable  times to examine and inspect the
Collateral wherever located.

Taxes,  Assessments and Liens. Grantor will pay when due all taxes,  assessments
and liens upon the Collateral,  its use or operation,  upon this Agreement, upon
any promissory  note or notes  evidencing the  Indebtedness,  or upon any of the
other Related  Documents.  Grantor may withhold any such payment or may elect to
contest  any  lien  if  Grantor  is in  good  faith  conducting  an  appropriate
proceeding to contest the obligation to pay and so long as Lender's  interest in
the Collateral is not jeopardized in Lender's sole opinion. If the Collateral is
subjected to a lien which is not discharged  within  fifteen (15) days,  Grantor
shall  deposit with Lender cash,  a  sufficient  corporate  surety bond or other
security  satisfactory  to Lender  in an  amount  adequate  to  provide  for the
discharge of the lien plus any interest,  costs,  reasonable  attorneys' fees or
other  charges  that  could  accrue  as a result of  foreclosure  or sale of the
Collateral.  In any contest  Grantor  shall  defend  itself and Lender and shall
satisfy any final adverse  judgment before  enforcement  against the Collateral.
Grantor  shall  name  Lender as an  additional  obligee  under any  surety  bond
furnished in the contest  proceedings.  Grantor further agrees to furnish Lender
with evidence that such taxes,  assessments,  and governmental and other charges
have been paid in full and in a timely  manner.  Grantor may  withhold  any such
payment or may elect to contest any lien if Grantor is in good faith  conducting
an  appropriate  proceeding  to  contest  the  obligation  to pay and so long as
Lender's interest in the Collateral is not jeopardized.

Compliance with  Governmental  Requirements.  Grantor shall comply promptly with
all laws, ordinances, rules and regulations of all governmental authorities, now
or hereafter in effect, applicable to the ownership, production, disposition, or
use of the Collateral,  including all laws or regulations  relating to the undue
erosion of  highly-erodible  land or relating to the  conversion of wetlands for
the production of an agricultural  product or commodity.  Grantor may contest in
good faith any such law, ordinance or regulation and withhold  compliance during
any proceeding,  including  appropriate appeals, so long as Lender's interest in
the Collateral, in Lender's opinion, is not jeopardized.

Hazardous Substances.  Grantor represents and warrants that the Collateral never
has been,  and  never  will be so long as this  Agreement  remains a lien on the
Collateral,  used in violation of any Environmental  Laws or for the generation,
manufacture, storage, transportation, treatment, disposal, release or threatened
release of any Hazardous Substance. The representations and warranties contained
herein are based on Grantor's due diligence in investigating  the Collateral for
Hazardous  Substances.  Grantor hereby (1) releases and waives any future claims
against Lender for indemnity or contribution in the event Grantor becomes liable
for  cleanup or other  costs  under any  Environmental  Laws,  and (2) agrees to
indemnify,  defend,  and hold  harmless  Lender  against  any and all claims and
losses  resulting  from a  breach  of this  provision  of this  Agreement.  This
obligation to indemnify and defend shall survive the payment of the Indebtedness
and the satisfaction of this Agreement.

Maintenance of Casualty Insurance.  Grantor shall procure and maintain all risks
insurance,  including  without  limitation  fire,  theft and liability  coverage
together  with such other  insurance  as Lender may require  with respect to the
Collateral,  in form,  amounts,  coverages  and basis  reasonably  acceptable to
Lender and issued by a company or  companies  reasonably  acceptable  to Lender.
Grantor,  upon  request of Lender,  will deliver to Lender from time to time the
policies or certificates of insurance in form satisfactory to Lender,  including
stipulations that coverages will not be cancelled or diminished without at least
ten (10) days' prior written  notice to Lender and not including any  disclaimer
of the  insurer's  liability for failure to give such a notice.  Each  insurance
policy also shall  include an  endorsement  providing  that coverage in favor of
Lender  will not be  impaired  in any way by any act,  omission  or  default  of
Grantor or any other person.  In connection with all policies covering assets in
which  Lender  holds or is offered a security  interest,  Grantor  will  provide
Lender with such loss payable or other  endorsements  as Lender may require.  If
Grantor at any time fails to obtain or maintain any insurance as required  under
this Agreement, Lender may (but shall not be obligated to) obtain such insurance
as Lender deems  appropriate,  including if Lender so chooses  "single  interest
insurance," which will cover only Lender's interest in the Collateral.

Application of Insurance  Proceeds.  Grantor shall promptly notify Lender of any
loss or  damage  to the  Collateral,  whether  or not such  casualty  or loss is
covered by  insurance.  Lender may make proof of loss if Grantor  fails to do so
within fifteen (15) days of the casualty.

<PAGE>

Loan No: 400949881

                    COMMERCIAL SECURITY AGREEMENT (Continued)

Page 3

All proceeds of any  insurance on the  Collateral,  including  accrued  proceeds
thereon,  shall be held by Lender as part of the Collateral.  If Lender consents
to repair or replacement of the damaged or destroyed  Collateral,  Lender shall,
upon  satisfactory  proof of  expenditure,  pay or  reimburse  Grantor  from the
proceeds for the reasonable  cost of repair or  restoration.  If Lender does not
consent  to repair or  replacement  of the  Collateral,  Lender  shall  retain a
sufficient amount of the proceeds to pay all of the Indebtedness,  and shall pay
the balance to Grantor.  Any proceeds which have not been  disbursed  within six
(6) months after their receipt and which Grantor has not committed to the repair
or restoration of the Collateral shall be used to prepay the Indebtedness.
Insurance Reserves.  Lender may require Grantor to maintain with Lender reserves
for payment of insurance  premiums,  which  reserves shall be created by monthly
payments  from Grantor of a sum estimated by Lender to be sufficient to produce,
at least  fifteen (15) days before the premium due date,  amounts at least equal
to the  insurance  premiums to be paid.  If fifteen (15) days before  payment is
due,  the  reserve  funds are  insufficient,  Grantor  shall upon demand pay any
deficiency  to Lender.  The  reserve  funds shall be held by Lender as a general
deposit and shall  constitute a  non-interest-bearing  account  which Lender may
satisfy by payment of the insurance  premiums  required to be paid by Grantor as
they become due.  Lender does not hold the reserve  funds in trust for  Grantor,
and Lender is not the agent of Grantor  for  payment of the  insurance  premiums
required to be paid by Grantor.  The  responsibility for the payment of premiums
shall remain Grantor's sole responsibility.
Insurance  Reports.  Grantor,  upon request of Lender,  shall  furnish to Lender
reports on each existing policy of insurance  showing such information as Lender
may reasonably request including the following: (1) the name of the insurer; (2)
the risks insured;  (3) the amount of the policy; (4) the property insured;  (5)
the then current value on the basis of which insurance has been obtained and the
manner of determining that value; and (6) the expiration date of the policy.  In
addition,  Grantor  shall upon  request by Lender  (however  not more often than
annually) have an independent  appraiser  satisfactory to Lender  determine,  as
applicable, the cash value or replacement cost of the Collateral.
Financing  Statements.  Grantor  authorizes  Lender  to  file  a  UCC  financing
statement,  or  alternatively,  a copy of this  Agreement  to  perfect  Lender's
security interest. At Lender's request,  Grantor additionally agrees to sign all
other documents that are necessary to perfect,  protect,  and continue  Lender's
security  interest in the  Property.  Grantor  will pay all filing  fees,  title
transfer  fees, and other fees and costs  involved  unless  prohibited by law or
unless Lender is required by law to pay such fees and costs. Grantor irrevocably
appoints Lender to execute  documents  necessary to transfer title if there is a
default.  Lender may file a copy of this Agreement as a financing statement.  If
Grantor changes Grantor's name or address,  or the name or address of any person
granting a security interest under this Agreement changes, Grantor will promptly
notify the Lender of such change.

GRANTOR'S RIGHT TO POSSESSION AND TO COLLECT ACCOUNTS.  Until default and except
as  otherwise  provided  below  with  respect  to  accounts,  Grantor  may  have
possession  of the  tangible  personal  property and  beneficial  use of all the
Collateral  and may use it in any  lawful  manner  not  inconsistent  with  this
Agreement or the Related Documents,  provided that Grantor's right to possession
and  beneficial use shall not apply to any  Collateral  where  possession of the
Collateral by Lender is required by law to perfect Lender's security interest in
such Collateral.  Until otherwise notified by Lender, Grantor may collect any of
the Collateral  consisting of accounts.  At any time and even though no Event of
Default  exists,  Lender may  exercise its rights to collect the accounts and to
notify account  debtors to make payments  directly to Lender for  application to
the  Indebtedness.  If  Lender  at any time has  possession  of any  Collateral,
whether  before  or after an Event of  Default,  Lender  shall be deemed to have
exercised  reasonable care in the custody and  preservation of the Collateral if
Lender takes such action for that purpose as Grantor shall request or as Lender,
in Lender's sole discretion, shall deem appropriate under the circumstances, but
failure to honor any  request  by Grantor  shall not of itself be deemed to be a
failure to exercise  reasonable  care.  Lender shall not be required to take any
steps necessary to preserve any rights in the Collateral  against prior parties,
nor to protect,  preserve or maintain any security  interest given to secure the
Indebtedness.
LENDER'S  EXPENDITURES.  If any action or  proceeding  is  commenced  that would
materially  affect  Lender's  interest in the  Collateral or if Grantor fails to
comply with any provision of this Agreement or any Related Documents,  including
but not limited to  Grantor's  failure to  discharge or pay when due any amounts
Grantor is  required to  discharge  or pay under this  Agreement  or any Related
Documents,  Lender on Grantor's  behalf may (but shall not be obligated to) take
any  action  that  Lender  deems  appropriate,  including  but  not  limited  to
discharging or paying all taxes,  liens,  security  interests,  encumbrances and
other  claims,  at any time  levied or placed on the  Collateral  and paying all
costs  for  insuring,  maintaining  and  preserving  the  Collateral.  All  such
expenditures  incurred  or paid by  Lender  for such  purposes  will  then  bear
interest at the rate  charged  under the Note from the date  incurred or paid by
Lender to the date of repayment by Grantor. All such expenses will become a part
of the Indebtedness and, at Lender's option,  will (A) be payable on demand; (S)
be added to the balance of the Note and be apportioned among and be payable with
any  installment  payments  to  become  due  during  either  (1) the term of any
applicable  insurance  policy;  or (2) the remaining term of the Note; or (C) be
treated  as a  balloon  payment  which  will be due and  payable  at the  Note's
maturity.  The Agreement also will secure  payment of these amounts.  Such right
shall be in addition  to all other  rights and  remedies to which  Lender may be
entitled upon Default.

DEFAULT.  Each of the following shall  constitute an Event of Default under this
Agreement: Payment Default. Grantor fails to make any payment when due under the
Indebtedness.
Other  Defaults.  Grantor  fails to comply  with or to perform  any other  term,
obligation,  covenant or condition  contained in this Agreement or in any of the
Related Documents or to comply with or to perform any term, obligation, covenant
or condition contained in any other agreement between Lender and Grantor.
False Statements. Any warranty, representation or statement made or furnished to
Lender by Grantor or on  Grantor's  behalf  under this  Agreement or the Related
Documents is false or misleading in any material  respect,  either now or at the
time made or furnished or becomes false or misleading at any time thereafter.
Defective  Collateralization.  This  Agreement  or any of the Related  Documents
ceases to be in full  force and  effect  (including  failure  of any  collateral
document to create a valid and perfected  security interest or lien) at any time
and for any reason.  Insolvency.  The  dissolution  or  termination of Grantor's
existence as a going business,  the insolvency of Grantor,  the appointment of a
receiver for any part of Grantor's  property,  any assignment for the benefit of
creditors,  any type of creditor workout,  or the commencement of any proceeding
under any bankruptcy or insolvency laws by or against Grantor.
Creditor or Forfeiture  Proceedings.  Commencement  of foreclosure or forfeiture
proceedings,  whether by judicial  proceeding,  self-help,  repossession  or any
other method,  by any creditor of Grantor or by any governmental  agency against
any collateral securing the Indebtedness.  This includes a garnishment of any of
Grantor's accounts, including deposit accounts, with Lender. However, this Event
of Default shall not apply if there is a good faith dispute by Grantor as to the
validity or  reasonableness  of the claim which is the basis of the  creditor or
forfeiture proceeding and if Grantor gives Lender written notice of the creditor
or  forfeiture  proceeding  and deposits with Lender monies or a surety bond for
the creditor or forfeiture proceeding, in an amount determined by Lender, in its
sole discretion, as being an adequate reserve or bond for the dispute.
Events Affecting  Guarantor.  Any of the preceding events occurs with respect to
any   guarantor,  endorser,  surety,  or  accommodation  party   of any  of  the

<PAGE>

Loan No: 400949881

                    COMMERCIAL SECURITY AGREEMENT (Continued)

Page 4

1
I

Indebtedness or guarantor,  endorser,  surety,  or  accommodation  party dies or
becomes  incompetent or revokes or disputes the validity of, or liability under,
any Guaranty of the Indebtedness.
Adverse  Change.  A  material  adverse  change  occurs  in  Grantor's  financial
condition,  or lender  believes  the prospect of payment or  performance  of the
Indebtedness is impaired.
Insecurity. lender in good faith believes itself insecure.
RIGHTS  AND  REMEDIES  ON  DEFAULT.  If an Event of  Default  occurs  under this
Agreement, at any time thereafter, lender shall have all the rights of a secured
party  under  the  Utah  Uniform   Commercial  Code.  In  addition  and  without
limitation,  lender  may  exercise  anyone or more of the  following  rights and
remedies:
Accelerate Indebtedness.  lender may declare the entire Indebtedness,  including
any prepayment  penalty which Grantor would be required to pay,  immediately due
and payable, without notice of any kind to Grantor.
Assemble Collateral.  lender may require Grantor to deliver to lender all or any
portion  of the  Collateral  and any and all  certificates  of title  and  other
documents relating to the Collateral. lender may require Grantor to assemble the
Collateral  and make it  available  to  lender  at a place to be  designated  by
lender.  lender also shall have full power to enter upon the property of Grantor
to take  possession of and remove the  Collateral.  If the  Collateral  contains
other goods not covered by this Agreement at the time of  repossession,  Grantor
agrees lender may take such other goods,  provided that lender makes  reasonable
efforts to return them to Grantor after repossession.
Sell the Collateral.  lender shall have full power to sell, lease,  transfer, or
otherwise deal with the  Collateral or proceeds  thereof in lender's own name or
that of Grantor.  lender may sell the  Collateral  at public  auction or private
sale.  Unless the Collateral  threatens to decline  speedily in value or is of a
type  customarily  sold on a recognized  market,  lender will give Grantor,  and
other persons as required by law, reasonable notice of the time and place of any
public sale,  or the time after which any private sale or any other  disposition
of the  Collateral  is to be made.  However,  no notice  need be provided to any
person who,  after Event of Default  occurs,  enters into and  authenticates  an
agreement  waiving that person's right to notification of sale. The requirements
of reasonable notice shall be met if such notice is given at least ten (10) days
before  the  time of the  sale or  disposition.  All  expenses  relating  to the
disposition  of the  Collateral,  including  without  limitation the expenses of
retaking,  holding,  insuring,  preparing  for sale and selling the  Collateral,
shall become a part of the  Indebtedness  secured by this Agreement and shall be
payable on demand, with interest at the Note rate from date of expenditure until
repaid.
Appoint  Receiver.  lender shall have the right to have a receiver  appointed to
take possession of all or any part of the Collateral,  with the power to protect
and preserve the Collateral,  to operate the Collateral preceding foreclosure or
sale, and to collect the Rents from the Collateral and apply the proceeds,  over
and above the cost of the receivership,  against the Indebtedness.Grantor hereby
waives any requirement  that the receiver be impartial and  disinterested  as to
all of the parties and agrees that  employment by lender shall not  disqualify a
person from serving as a receiver.
Collect Revenues,  Apply Accounts.  lender, either itself or through a receiver,
may collect the  payments,  rents,  income,  and revenues  from the  Collateral.
lender may at any time in  lender's  discretion  transfer  any  Collateral  into
lender's own name or that of lender's  nominee and receive the payments,  rents,
income,   and  revenues  therefrom  and  hold  the  same  as  security  for  the
Indebtedness  or  apply  it to  payment  of the  Indebtedness  in such  order of
preference  as lender may  determine.  Insofar  as the  Collateral  consists  of
accounts, general intangibles,  insurance policies, instruments,  chattel paper,
choses in action, or similar property,  lender may demand, collect, receipt for,
settle, compromise,  adjust, sue for, foreclose, or realize on the Collateral as
lender may determine, whether or not Indebtedness or Collateral is then due. For
these  purposes,  lender may, on behalf of and in the name of Grantor,  receive,
open and dispose of mail addressed to Grantor;  change any address to which mail
and payments are to be sent; and endorse notes,  checks,  drafts,  money orders,
documents of title,  instruments and items pertaining to payment,  shipment,  or
storage of any Collateral.  To facilitate collection,  lender may notify account
debtors and obligors on any Collateral to make payments directly to lender.
Obtain  Deficiency.  If  lender  chooses  to sell any or all of the  Collateral,
lender may obtain a judgment against Grantor for any deficiency remaining on the
Indebtedness  due to lender after  application of all amounts  received from the
exercise of the rights provided in this Agreement. Grantor shall be liable for a
deficiency  even if the  transaction  described in this  subsection is a sale of
accounts or chattel paper.
Other  Rights and  Remedies.  lender shall have all the rights and remedies of a
secured creditor under the provisions of the Uniform  Commercial Code, as may be
amended from time to time.  In addition,  lender shall have and may exercise any
or all other  rights and remedies it may have  available  at law, in equity,  or
otherwise.
Election of Remedies.  Except as may be  prohibited  by  applicable  law, all of
lender's rights and remedies,  whether evidenced by this Agreement,  the Related
Documents,  or by any other  writing,  shall be cumulative  and may be exercised
singularly  or  concurrently.  Election by lender to pursue any remedy shall not
exclude pursuit of any other remedy,  and an election to make expenditures or to
take action to perform an  obligation  of Grantor  under this  Agreement,  after
Grantor's  failure  to  perform,  shall not affect  lender's  right to declare a
default and exercise its remedies.

MISCELLANEOUS  PROVISIONS.  The following miscellaneous provisions are a part of
this Agreement:
Amendments. This Agreement, together with any Related Documents, constitutes the
entire understanding and agreement of the parties as to the matters set forth in
this  Agreement.  No  alteration  of or  amendment  to this  Agreement  shall be
effective  unless given in writing and signed by the party or parties  sought to
be charged or bound by the alteration or amendment.  Attorneys' Fees;  Expenses.
Grantor agrees to pay upon demand all of lender's costs and expenses,  including
lender's  reasonable  attorneys' fees and lender's legal  expenses,  incurred in
connection  with  the  enforcement  of this  Agreement.  lender  may hire or pay
someone else to help enforce this Agreement, and Grantor shall pay the costs and
expenses of such  enforcement.  Costs and expenses include  lender's  reasonable
attorneys' fees and legal expenses whether or not lender's salaried employee and
whether  or not there is a lawsuit,  including  reasonable  attorneys'  fees and
legal expenses for bankruptcy proceedings (including efforts to modify or vacate
any automatic stay or injunction).  appeals,  and any anticipated  post-judgment
collection services.  Grantor also shall pay all court costs and such additional
fees as may be directed by the court.
Caption  Headings.  Caption  headings  in this  Agreement  are  for  convenience
purposes  only and are not to be used to interpret or define the  provisions  of
this Agreement.
Governing law. With respect to procedural  matters related to the perfection and
enforcement of lender's  rights against the  Collateral,  this Agreement will be
governed by federal law  applicable to lender and to the extent not preempted by
federal  law,  the laws of the  State  of  Utah.  In all  other  respects,  this
Agreement  will be  governed  by federal  law  applicable  to lender and, to the
extent not  preempted by federal law, the laws of the State of Illinois  without
regard to its conflicts of law provisions.  However, if there ever is a question
about  whether any  provision  of this  Agreement is valid or  enforceable,  the
provision that is questioned  will be governed by whichever state or federal law
would find the provision to be valid and enforceable.  The loan transaction that
is evidenced  by the  Note and this  Agreement has been applied for, considered,

<PAGE>

loan No: 400949881

                    COMMERCIAL SECURITY AGREEMENT {Continued}

Page 5

approved and made, and all necessary loan documents have been accepted by lender
in the State of Illinois.

Choice of Venue. If there is a lawsuit,  Grantor agrees upon lender's request to
submit to the jurisdiction of the courts of McDonough County, State of Illinois.

No Waiver by lender.  lender shall not be deemed to have waived any rights under
this Agreement  unless such waiver is given in writing and signed by lender.  No
delay or omission on the part of lender in exercising any right shall operate as
a waiver of such right or any other right.  A waiver by lender of a provision of
this  Agreement  shall not  prejudice or  constitute a waiver of lender's  right
otherwise to demand strict compliance with that provision or any other provision
of this Agreement.  No prior waiver by lender, nor any course of dealing between
lender and Grantor,  shall  constitute a waiver of any of lender's  rights or of
any of Grantor's obligations as to any future transactions. Whenever the consent
of lender is required  under this  Agreement,  the  granting of such  consent by
lender in any instance  shall not  constitute  continuing  consent to subsequent
instances  where such  consent is required  and in all cases such consent may be
granted or withheld in the sole discretion of lender.

Notices.  Unless otherwise provided by applicable law, any notice required to be
given under this  Agreement  or  required by law shall be given in writing,  and
shall be effective  when actually  delivered in accordance  with the law or with
this  Agreement,  when  actually  received by  telefacsimile  (unless  otherwise
required by law), when deposited with a nationally recognized overnight courier,
or, if  mailed,  when  deposited  in the United  States  mail,  as first  class,
certified or registered  mail postage  prepaid,  directed to the addresses shown
near the  beginning  of this  Agreement.  Any party may change its  address  for
notices  under  this  Agreement  by giving  formal  written  notice to the other
parties,  specifying  that the  purpose of the  notice is to change the  party's
address.  For notice  purposes,  Grantor  agrees to keep lender  informed at all
times of Grantor's current address. Unless otherwise provided by applicable law,
if there is more than one Grantor,  any notice given by lender to any Grantor is
deemed to be notice given to all  Grantors.  Power of Attorney.  Grantor  hereby
appoints  lender as Grantor's  irrevocable  attorney-in-fact  for the purpose of
executing any documents necessary to perfect, amend, or to continue the security
interest granted in this Agreement or to demand  termination of filings of other
secured parties.  lender may at any time, and without further authorization from
Grantor,  file a carbon,  photographic  or other  reproduction  of any financing
statement or of this  Agreement for use as a financing  statement.  Grantor will
reimburse lender for all expenses for the perfection and the continuation of the
perfection of lender's security interest in the Collateral.
Severability.  If a court of competent  jurisdiction finds any provision of this
Agreement to be illegal, invalid, or unenforceable as to any circumstance,  that
finding  shall  not  make  the  offending   provision   illegal,   invalid,   or
unenforceable as to any other circumstance. If feasible, the offending provision
shall be considered modified so that it becomes legal, valid and enforceable. If
the offending  provision cannot be so modified,  it shall be considered  deleted
from  this  Agreement.   Unless  otherwise  required  by  law,  the  illegality,
invalidity,  or  unenforceability  of any provision of this Agreement  shall not
affect the legality,  validity or  enforceability of any other provision of this
Agreement.
Successors and Assigns.  Subject to any limitations  stated in this Agreement on
transfer of Grantor's  interest,  this Agreement shall be binding upon and inure
to the benefit of the parties, their successors and assigns. If ownership of the
Collateral becomes vested in a person other than Grantor, lender, without notice
to Grantor,  may deal with Grantor's successors with reference to this Agreement
and the  Indebtedness  by way of  forbearance  or  extension  without  releasing
Grantor  from  the   obligations  of  this  Agreement  or  liability  under  the
Indebtedness.


Survival of Representations and Warranties. All representations, warranties, and
agreements  made by Grantor in this  Agreement  shall  survive the execution and
delivery of this Agreement,  shall be continuing in nature,  and shall remain in
full force and effect until such time as Grantor's Indebtedness shall be paid in
full.
Time  is of the  Essence.  Time is of the  essence  in the  performance  of this
Agreement.
Waive Jury.  All parties to this  Agreement  hereby  waive the right to any jury
trial in any action,  proceeding,  or counterclaim  brought by any party against
any other party.

DEFINITIONS.  The following capitalized words and terms shall have the following
meanings  when  used  in  this  Agreement.  Unless  specifically  stated  to the
contrary, all references to dollar amounts shall mean amounts in lawful money of
the United States of America. Words and terms used in the singular shall include
the  plural,  and the plural  shall  include  the  singular,  as the context may
require.  Words and terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code:
Agreement.  The word "Agreement" means this Commercial  Security  Agreement,  as
this Commercial Security Agreement may be amended or modified from time to time,
together with all exhibits and schedules  attached to this  Commercial  Security
Agreement from time to time. Borrower. The word "Borrower" means REMOTEMDX, INC.
and  includes  all  co-signers  and  co-makers  signing  the Note and all  their
successors and assigns.
Collateral.  The word  "Collateral"  means  all of  Grantor's  right,  title and
interest in and to all the Collateral as described in the Collateral Description
section of this Agreement.
Default. The word "Default" means the Default set forth in this Agreement in the
section titled "Default".
Environmental  laws.  The words  "Environmental  laws"  mean any and all  state,
federal  and  local  statutes,   regulations  and  ordinances  relating  to  the
protection of human health or the environment,  including without limitation the
Comprehensive Environmental Response,  Compensation,  and Liability Act of 1980,
as amended, 42 U.S.C. Section 9601, et seq. ("CERClA"), the Superfund Amendments
and  Reauthorization  Act of 1986,  Pub. l. No. 99-499  ("SARA"),  the Hazardous
Materials  Transportation  Act, 49 U.S.C.  Section 1801,  et seq.,  the Resource
Conservation  and  Recovery  Act,  42 U.S.C.  Section  6901,  et seq.,  or other
applicable  state or  federal  laws,  rules,  or  regulations  adopted  pursuant
thereto.
Event of Default. The words "Event of Default" mean any of the events of default
set forth in this Agreement in the default section of this Agreement.
Grantor. The word "Grantor" means REMOTEMDX, INC..
Guaranty.  The word  "Guaranty"  means the guaranty  from  guarantor,  endorser,
surety,  or  accommodation  party to  lender,  including  without  limitation  a
guaranty of all or part of the Note.
Hazardous  Substances.  The words  "Hazardous  Substances"  mean materials that,
because of their  quantity,  concentration  or physical,  chemical or infectious
characteristics, may cause or pose a present or potential hazard to human health
or  the  environment  when  improperly  used,  treated,   stored,  disposed  of,
generated, manufactured,  transported or otherwise handled. The words "Hazardous
Substances" are used in their very broadest sense and include without limitation
any and all hazardous or toxic  substances,  materials or waste as defined by or
listed  under the  Environmental  laws.  The term  "Hazardous  Substances"  also
includes,  without  limitation,  petroleum  and  petroleum  by-products  or  any
fraction thereof and asbestos.

<PAGE>

Loan No: 400949881

                    COMMERCIAL SECURITY AGREEMENT {Continued}

Page 6

Indebtedness.  The word "Indebtedness"  means the indebtedness  evidenced by the
Note or Related  Documents,  including all principal and interest  together with
all other  indebtedness  and costs and expenses for which Grantor is responsible
under  this  Agreement  or under  any of the  Related  Documents.  Specifically,
without limitation,  Indebtedness  includes the future advances set forth in the
Future Advances  provision of this Agreement together with all interest thereon.
lender.  The word "lender"  means  Citizens  National  Bank,  its successors and
assigns.

Note.  The word  "Note"  means  the Note  executed  by  REMOTEMDX,  INC.  in the
principal  amount  of  $2,000,000.00  dated  June 26,  2006,  together  with all
renewals of, extensions of,  modifications of,  refinancings of,  consolidations
of,  and  substitutions  for the note or credit  agreement.  Property.  The word
"Property"  means all of Grantor's  right,  title and interest in and to all the
Property as described in the "Collateral Description" section of this Agreement.
..

Related  Documents.  The words "Related  Documents"  mean all promissory  notes,
credit  agreements,  loan  agreements,   environmental  agreements,  guaranties,
security  agreements,  mortgages,  deeds of trust,  security  deeds,  collateral
mortgages, and all other instruments,  agreements and documents,  whether now or
hereafter existing, executed in connection with the Indebtedness.


II

GRANTOR HAS READ AND UNDERSTOOD All THE PROVISIONS OF THIS  COMMERCIAL  SECURITY
AGREEMENT AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED JUNE 26. 2006.

GRANTOR:

REMOTEMDX. INC.

By:
DAVID DERRICK, Chief REMOTEMDX. INC.

Executive

Officer

of

LASER PRO """'g. V".  5.32.00.003  Cop,. ",,""' Fi",oo'"  So'",io",.  '00. 1997.
2006. All Righ" R,,",v,'. . UT/IL G,ICFIILPL\E4Q.FC TR.2194 PR.6