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**Exhibit        10.16**
**DISTRIBUTION      AGREEMENT**

**WITNESSETH:**

| **1** | **Term**. |
|-------|-----------|

| 1.1 | Initial                Term.  The initial term of this Agreement (the “Initial                Term”)shall commence as of the Effective Date and shall continue until                the                earlier of (i) three (3) years after the Effective Date and (ii)                the date                this Agreement is earlier terminated in accordance with the provisions                hereof. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | Renewal                Term.  This Agreement will automatically renew for                consecutive one (1) year terms under the same terms and conditions                set                forth herein (each a “Renewal Term”) unless terminated by either party                upon delivering written notice to the other party at least ninety                (90)                days but not more than one hundred twenty (120) days prior to the                end of                the then existing term.  The Renewal Term(s), if any, together                with the Initial Term are collectively referred to hereinafter as                the                “Term.” |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2** | **Services                and Performance.** |
|-------|----------------------------------------------|

| 2.1 | Services.  During                the Term of this Agreement, Distributor shall perform the following                services (the “Services”) for the                Company: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Distributor                shall use commercially reasonable efforts to identify, locate and                obtain                potential purchasers of the Company’s Device and Device Services within                the Bail Bond industry. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (b) | Distributor                shall deploy units of the Device to the customers, train the customer’s in                the use of the Device and otherwise assist the customers by providing                information to such customers upon                request. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Distributor                shall provide additional guidance and advice to the Company with                regard to                the Company’s strategy to exploit its products and services, and such                other support for the Company’s products and services as may mutually be                agreed upon. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | Assignment                of Duties.  Distributor may not assign or delegate to any                other person, firm, or entity any of its duties hereunder without                the                prior written consent of the                Company. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3** | **Sales,                Payments and Pricing.** |
|-------|-------------------------------------------------|

| 3.1 | Sales.  The                Company shall sell and or lease directly to Distributor all                Devices.  The Company shall directly contract with and provide                the Device Services and collect all funds from the Distributor with                respect to such Device sales and Device                Services. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A. | The                Distributor recognizes and agrees that it has in its possession XXXXX                units and that it will pay the daily service rate on these units                beginning                on the Effective Date. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | The                Distributor will purchase XXXXX devices (that includes the XXXXX                units                described above) at the Device Pricing listed                below. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Pricing.  The                retail prices for the Device, Device Services, equipment warranty,                non-emergency airtime for subscribers and sales personnel shall be                determined by the Company.  The Company shall inform the                Distributor of any pricing change in writing and any such change                will                become effective upon receipt by Distributor of notice                thereof. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A. | Device                Pricing =  $ XXXXX per                device |
|--------|----|------------------------------------------------------------------------------|

|   | B. | Daily                Service Rate to Offender = $ XXXXX per                day |
|--------|----|--------------------------------------------------------------------------------|

|   | C. | Daily                Service Rate to Bail Agent = $ XXXXX per                day |
|--------|----|----------------------------------------------------------------------------------|

|   | D. | Daily                Service Rate charged by SecureAlert to Quest Guard = $ XXXXX per                day |
|--------|----|----------------------------------------------------------------------------------------------------------|

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| 3.3 | Payment.  Except                for the purchase of the XXXXX units and the first | month’s                monitoring fee, Distributor will not be liable for any payments until                such                time as Distributor collects revenues from either the Offender or                the Bail                Bond Agent. |
|-----|---------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4** | **Customer                Contacts and                Approvals.** |
|-------|--------------------------------------------------------------------|

| **5** | **Marketing,                Promotion and Training                Materials****.  **The Company will                supply marketing, promotion and training materials to be used by                Distributor in connection with the marketing and distribution of                the                Devices and Device Services.  No materials shall be used by                Distributor except for those provided by the Company or that are                otherwise                pre-approved in writing by the Company.  The Company is not                responsible for expenses incurred by Distributor in connection with                any                marketing promotions. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6** | **Upgrades                and Software**.  The Company agrees that if it                develops additional upgrades to its devices and service, that said                upgrades will be incorporated into Distributor’s product and                service.  In addition, the Company agrees to allow Distributor                software access that enables Distributor to turn off and on devices                remotely. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7** | **Exclusivity**.  The                rights and authorities with respect to the performance of the Services                and                sales of the Device and Device Services given to Distributor in this                Agreement are on an exclusive basis in the Bail Bond industry within                the                North American Territory. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| **8** | **Warranties                and Representations****.  **Distributor                agrees that it shall not make any warranty or representation to any                person                regarding the nature, capability, dependability or terms of sale                or                service regarding the Device or Device Services which are not made                in                Company-provided or Company-approved marketing or promotional materials                or                that are not otherwise pre-approved in writing by the                Company.  Company warrants that the life of the devices will be                three years. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9** | **Indemnity.** |
|-------|----------------|

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| **10** | **Non-Solicitation****.  **Without                the prior written consent of the other party, during the Term of                this                Agreement and for a period of one (1) year after the termination                of this                Agreement, each of the parties hereto agrees not to hire or sub-contract                any employee or agent of the other party for purposes of providing                services similar to those contemplated by this                Agreement. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **11** | **Termination****.**  This                Agreement may be immediately terminated by the Company upon (i) the                failure of the Distributor to comply with laws and regulations which                materially affect its contracting rights or reputation and where                such                failure is not cured within thirty (30) days of receipt of written                notice                thereof or (ii). the occurrence of a material breach of this Agreement                or                fraud by Distributor.  This Agreement may also be terminated by                the written agreement of the                parties. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **12** | **Dispute                Resolution.** |
|--------|----------------------------------------|

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| **13** | **Assignment                and Delegation.** |
|--------|-----------------------------------------------|

| **14** | **Miscellaneous.** |
|--------|--------------------|

| 14.1 | Compliance                with Laws.  Distributor shall fully comply with all                applicable laws, regulations, ordinances, court or agency decisions                and                other issuances having the authority of law regarding the matters                that are                the subject of this Agreement. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | Authority.  Each                of the persons who signs this Agreement represents and warrants that                he or                she has full power and authority to execute this Agreement on behalf                of                the party for whom he or she is signing, and that upon execution                hereof,                this Agreement will be valid, binding and enforceable against the                party in                accordance with its terms. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3 | Governing                Law.  This Agreement shall be construed according to and                governed by the laws of the State of Utah, without giving effect                to                principles of conflict of laws.  The parties agree that                jurisdiction over and venue in any legal proceeding arising out of                or                relating to this Agreement will exclusively be in the state or federal                courts located in Salt Lake City,                Utah. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4 | Notices.  All                notices, demands or other communications which are required or permitted                to be given pursuant to this Agreement shall be in writing and shall                be                delivered personally, sent by telecopy or mailed by prepaid registered                mail to the affected party at the address indicated for such party                herein                or to such other address as such party may from time to time advise                the                other party hereto in writing. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5 | Amendments.  This                Agreement may not be amended, modified, supplemented or waived orally,                and                may only be so amended, modified, supplemented or waived by an instrument                in writing executed by the parties hereto.  Any change to                Exhibit B hereto must be initialed by both                parties. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.6 | Binding                Effect.  This Agreement and all the terms and provisions                hereof shall be binding upon and inure solely to the benefit of the                parties hereto and their respective permitted successors and                assigns. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.7 | Counterparts.  This                Agreement may be executed in one or more counterparts, each of which                shall                be deemed an original, but all of which, when taken together, shall                constitute one and the same                instrument. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 14.8 | Entire                Agreement.  This Agreement contains the entire understanding                and Agreement of the parties hereto with respect to the subject matter                hereof and supersedes all prior agreements, whether written or oral,                between the parties. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.9 | Severability.  In                the event that in any legal proceedings before a competent tribunal                it is                determined that any of the sections of this Agreement or any subsection,                provision or, part thereof is invalid, such section, subsection,                provision                or part thereof shall be deemed to be severed from this Agreement                for the                purposes only of particular legal proceedings in question, and this                Agreement, and the said section, subsection, provision or part thereof,                shall in every other respect continue in full force and                effect. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.10 | Effective                Date.  The effective date of this agreement (the “Effective                Date”) shall be the date set forth below the company’s signature in its                signature block below. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | **THE                COMPANY:**      |
|--------|--------------------------------------|
|   |                                 |   |   |
|   | SecureAlert,                Inc.     |
|   |                                 |   |   |
|   |                                 |   |   |
|   | By:                                  | ____/s/                Randy                Olshen    ________       |
|   |                                 | Name: | Randy                Olshen   __________ |
|   |                                 | Title: | President_______________ |
|   |                                 |   |   |
|   |                                 |   |   |
|   |                                 |   |   |
|   | **DISTRIBUTOR:**                     |
|   | **Quest                Guard, Inc.** |
|   |                                 |   |   |
|   | ___________________________________  |
|   |                                 |   |   |
|   |                                 |   |   |
|   | By:                                  | ___/s/                Danny H. Behymer_________ |
|   |                                 |   |   |
|   |                                 |   |   |
|   |                                 | Name: | Danny                H. Behymer |
|   |                                 | Title: | V.P.                of Operations |
|   |                                 |   |   |
|   |                                 | Address: | 3826                River Road |
|   |                                 |   | St.                George, UT 84770 |

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