Document:

rmdxdistagree.htm

    
      

      

    

    Exhibit 10.29

    EXCLUSIVE
DISTRIBUTION AGREEMENT

    

    This
DISTRIBUTION AGREEMENT (the “Agreement”) is made and entered into effective
September 20, 2007 (“Effective Date”), by and between SecureAlert, Inc., a Utah
corporation (“Company”), with its principal executive office located at 150 West
Civic Center Drive, suite 400, Sandy, Utah 84070, and Electronic Monitoring
Services Corporation (“Distributor”), with its principal executive office
located at P.O. Box 364744, San Juan, Puerto Rico 00936.

    

    WITNESSETH:

    

    WHEREAS,
Company is, among other things, the manufacturer and seller of electronic
location monitoring devices (the “Device”) and provider of services relative to
the monitoring, maintenance and repair of the Device (hereinafter referred to as
the “Device Services”); and

    

    WHEREAS,
Company and Distributor now desire to enter into a business arrangement whereby
Distributor will have the exclusive rights to promote, market, and sell the
Device Services within the Territory (as hereinafter defined) under the terms
and conditions set forth herein;

    

    NOW
THEREFORE, in consideration of the mutual promises, covenants, representations
and good and valuable consideration hereinafter set forth, the adequacy of which
is herby acknowledged, the parties hereto agree as follows:

    

    
      	
              1.

            	
              Term.

            

    

    

    
      	
            	
              1.1

            	
               Initial
      Term.  The initial
      term of this Agreement (hereinafter referred to as 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
      of this Agreement is earlier terminated in accordance with the provisions
      hereof.

            

    

    

    
      	
            	
              1.2

            	
               Renewal
      Term. This Agreement
      will automatically renew for consecutive three (3) years term under the
      same terms and conditions set forth herein (each, hereinafter referred to
      as a “Renewal Term”, and collectively with the Initial Term, the
      “Term”).

            

    

    

    
      	
              2.

            	
              Appointment;
      Assignment of Duties;
Territory.

            

    

    

    
      	
            	
              2.1

            	
              Appointment. The Company hereby
      appoints the Distributor as exclusive distributor to promote, market, and
      sell the Device Services within the
Territory.

            

    

    

    
      	
            	
              2.2

            	
              Duties.

            

    

    

    
      	
            	
              2.2.1

            	
              Distributor
      Duties. During the Term,
      Distributor shall, at its own cost and expense, within the
      Territory:

            

    

    

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (a)

            	
              use
      commercially reasonable efforts to identify, locate and obtain potential
      users of the Device Services (the
  “Subscribers”);

            

    

    

    
      	
               
      

            	
              (b)

            	
              deliver
      units of the Device to the Subscribers, train them in its use, and
      otherwise assist the Subscribers by providing information upon
      request;

            

    

    

    
      	
               
      

            	
              (c)

            	
              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 they may agree;
  and

            

    

    

    
      	
               
      

            	
              (d)

            	
              have
      on hand a sufficient number of Devices, trained professional staff, and
      facilities and resources, necessary to perform the Distributor’s Services
      in accordance with the terms
hereof.

            

    

    

    
      	
            	
              2.2.2

            	
              Company’s
      Duties.  During the Term, Company shall, at its own cost
      and expense:

            

    

    

    
      	
               
      

            	
              (a)

            	
              supply
      contractual, marketing, promotion and training materials to be used by
      Distributor in connection with the marketing and distribution of the
      Device Services.  All materials will be in
      English.  Any materials to be used in a language other than
      English will be at the expense of Distributor and the content of such must
      be approved by the Company.  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;

            

    

    

    
      	
               
      

            	
              (b)

            	
              maintain
      a Monitoring Center and related staff, customer service support, and
      services, to support both English and Spanish speaking Subscribers and
      Users (as hereinafter defined);

            

    

    

    
      	
               
      

            	
              (c)

            	
              upon
      Distributor achieving 1,000 Spanish speaking users of the Device (“Users”)
      in the Territory excluding Florida, the Company will establish a
      Monitoring Center in Puerto Rico to handle offenders and
      Users.

            

    

    

    
      	
               
      

            	
              2.3

            	
              Territory.  The
      definition of Territory includes all of Central and South America, the
      Caribbean, Puerto Rico, the State of Florida, but excludes
      Mexico.

            

    

    

    
      	
              3.

            	
              Purchases,
      Subscribers Pricing; Distributor’s Compensation.  The
      Company agrees to provide the Devices and the Device Services for
      Distributor’s customers under the terms and conditions set forth
      herein.

            

    

    

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              3.1

            	
              Purchases. Except for
      Florida, all Devices deployed by Distributor must be bought by Distributor
      from Company.  Company agrees to give to Distributor six month
      term on payment for the Devices.  As consideration for this
      Exclusive Distribution Agreement in the, Distributor agrees to initially
      purchase 2,000 Devices at Company’s current price of $500.00
      each.  The prices for the Device 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.

            

    

    

    
      	
               
      

            	
              3.2

            	
              Subscribers
      Pricing.  The current
      retail price for the Device Services, equipment warranty, and
      non-emergency airtime for Subscribers is $8.00 per day per in service
      Device (the “Rate Plan”).  Changes to the Rate Plan shall be
      determined by the Company.  The Company shall inform the
      Distributor of any Retail Price Change in writing and any such change will
      become effective upon receipt by Distributor of notice thereof, and
      applicable to Subscribers contracted by Distributor
      thereafter.

            

    

    

    
      	
               
      

            	
              3.3

            	
              Distributor’s
      Compensation, Payment.

            

    

    

    
      	
               
      

            	
              3.3.1

            	
              Compensation.  In
      consideration of this Agreement, Distributor shall pay Company, per Device
      in service:

            

    

    

    (A)  in
Florida - $6.50 per day; and

    

    (B) in
the other Territory - $5.50 per day

    

    If the
Rate Plan or the Device Price is changed by the Company, in no case will
Distributor net receipt (after payment to Company) thereon be in that case the
Company and the Distributor will share proratedly in the increase or decrease in
the rate change.

    

    

    
      	
              4.

            	
              Upgrades;
      First Option.   Company agrees that (i) as it or entity
      controlling Company (“Parent), or any entity directly or indirectly
      controlled by Company or Parent (“Affiliate”) develops hardware or
      software upgrades to the Device or the Device Services same will be
      incorporated, free of charge, into Distributor’s product and service; and
      distributor shall have the first option to distribute any and all
      monitoring devices, location or otherwise, which are developed by Company,
      Parent or Affiliate.

            

    

    

    
      	
              5.

            	
              Exclusivity.
      The rights and authorities given to Distributor in this Agreement
      are on an exclusive basis to the Territory subject to the following
      exceptions:

            

    

    

    
      	
               
      

            	
              (A)

            	
              The
      Company currently has contracts in the State of Florida and will be able
      to continue those contracts with no remuneration going to
      Distributor.

            

    

    

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (B)

            	
              The
      Company has a Territory Account Manager (“TAM”) over Florida that may from
      time to time originate additional contracts in Florida.  For
      those accounts originated by the Company’s TAM during the Term,
      Distributor agrees to pay TAM the amount of commission agreed between the
      Company and TAM not to exceed $.50 per day per
  device.

            

    

    

    
      	
              6.

            	
              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 Device will be three
  years.

            

    

    

    
      	
              7.

            	
              Indemnity.

            

    

    

    The
Company’s Indemnity.  The Company agrees to indemnify and hold
harmless Distributor, and Distributor’s parent, subsidiaries, affiliates,
successors, assigns, officers, directors, members, governors, shareholders,
employees and agents (the “Distributor Indemnified Parties”) from and against
any and all losses, damages, liabilities, obligations, judgments, reasonable
attorneys fees and costs, settlements, costs and other expenses (each, a “Loss”)
incurred or suffered by the Distributor Indemnified Parties as during the Term
in connection with Distributor-initiated customers.  Notwithstanding
anything to the contrary, the Company’s total liability for any indemnification
obligations hereunder shall not exceed the lesser of (i) the payments by the
Company to Distributor pursuant to Section 3.3, over the 12 month period
immediately preceding any Loss.

    

    Distributor’s
Indemnity.  Anything herein to the contrary notwithstanding,
Distributor hereby agrees to indemnify and hold harmless the company and its
subsidiaries, affiliates, successors, assigns, officers, directors, members,
governors, shareholders, employees and agents (the “Company Indemnified
Parties”) from and against any Loss that directly or indirectly arises from, or
is related to, any material breach by Distributor of this Agreement during the
Term, including, without limitation, any Loss resulting from the negligent or
intentional misrepresentation by Distributor, its employees or agents, to any
person with respect to the Devices or Device Services covered by this
Agreement.

    

    Indemnification
Procedure.  The indemnifying party will assume the defense, at
its sole expense and with legal counsel reasonably acceptable to the indemnified
parties, of any claim or proceeding as to which such indemnifying party has an
indemnification obligation hereunder.  If the indemnifying party fails
to do so, the indemnified parties will have the right to assume their own
defense, and the indemnifying party will be obligated to reimburse the
indemnified parties for any and all reasonable expenses (including but not
limited to reasonable attorney’s fees and costs) incurred in there defense of
such claims or litigation, in addition to indemnifying party’s other indemnity
obligations hereunder.  An indemnifying party may not enter into any
settlement or compromise of any claim without the prior written consent of the
indemnified parties unless such settlement or compromise is solely for money
damages or will have no continuing effect in any material respect on the
indemnified parties.

    

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    
      	
              8.

            	
              Non-Solicitation.  Without
      the prior written consent of the other party, during the Term 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.

            

    

    

    
      	
              9.

            	
              Termination;
      Obligation Upon termination.

            

    

    

    Termination.

    

    Term
Expiration.  This Agreement may be 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.

    

    Company’s
Termination.  This Agreement may be immediately terminated by
the Company by written notice to Distributor upon (i) the Distributor failure 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 material breach of
this Agreement or fraud by Distributor.

    

    Distributor
Termination. This Agreement may be immediately terminated by Distributor
by written notice to Company upon (i) the Company’s failure 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 of (ii) the occurrence of material breach of this Agreement or
fraud by Distributor.

    

    Consent.
  This Agreement may also be terminated by the written
agreement of the parties.

    

    Obligations Upon
Termination.

    

    Distributor’s
Obligations.  In the event of any termination of this
Agreement, Distributor shall stop all Distributor Services, and surrender to
Company all Devices in its possession and not being utilized by Subscribers and
all and other documentation provided to it by Company with respect to the
Distributor Services that company may deem necessary or appropriate, including,
without limitation, marketing, promotion and training materials.

    

    Company’s
Obligations. In the event of any termination of this Agreement, Company
shall:

    

    
      	
            	
               
      

            	
              (A)    reimburse
      to distributor the purchase price of all    Devices
      surrendered pursuant to Section 9.2.1;
and

            

    

    

    

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

    

    
      	
            	
               
      

            	
              (B)    continue
      to compensate (as provided in section 3.3.1) Distributor for all Devices
      then in use by Subscribers originated by Distributor prior to the
      termination, until the calendar termination of the related
      Subscriber.

            

    

    

    
      	
              10.

            	
              Dispute
      Resolution.

            

    

    

    Disputes.
The parties agree that in the event of any dispute arises between them under
this agreement, they desire to avoid litigation.  Accordingly, the
aggrieved party will give notice of the dispute to the other party and both
parties will attempt to settle the dispute amicably during the thirty (30)-day
period following such notice.

    

    Mediation.
If the dispute remains unsettled, the parties agree to then submit the
dispute to mediation.  If the parties cannot agree on a mediator, each
will select a mediator and the two mediators so selected will select a third
mediator who shall alone hear the dispute.  Mediation will, if
possible, be conducted during the ninety (90)-day period following expiration of
the thirty (30)-day period.

    

    Arbitration.  If
mediation fails to resolve the dispute within the above described ninety
(90)-day period, the parties agree that the dispute will be submitted to final
and binding arbitration in accordance with the rules of the American Arbitration
Association (“AAA”); but the parties agree that this reference to the rules of
the AAA shall not constitute appointment of AAA as the authority or the body
that will hear and resolve the dispute.  A single arbitrator will be
selected in the same manner described above for the selection of a single
mediator.  If the parties cannot agree on a single arbitrator, each
will select an arbitrator and the two arbitrators so selected will select a
third arbitrator.  Unless otherwise directed by the arbitrator(s), the
expiration of the ninety (90)-day period previously specified for
mediation.

    

    Situs.  Any
mediation or arbitration hearing or meeting held hereunder shall take place at
the Company’s offices in Salt Lake City, Utah.

    

    Costs.  The
costs of mediation (including the mediator’s fees and expenses and costs
directly related to the conduct of mediation, but excluding each party’s direct
costs for transportation, attorneys, etc., for which each will be solely
responsible) will be shared equally by the parties.  The costs of
arbitration shall be allocated among or between the parties as determined by the
arbitrator.

    

    
      	
            	
              11.

            	
              Assignment.  This
      Agreement in part or in whole maybe assigned with the consent of both
      parties.  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.

            

    

    

    

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    

    
      12.  Miscellaneous.

    

    

    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 in the subject of
this Agreement.

    

    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.

    

    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.

    

    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 mailto the affected
party at the following address (or to such other address as such party may from
time to time advice the other party hereto in writing):

    

    
      	 
      	
              If
      to Company:

            
	 
      	 
      	 
      
	 
      	 
      	
              SecureAlert,
      Inc.

            
	 
      	 
      	
              150
      West Civic Center Drive

            
	 
      	 
      	
              Suite
      400

            
	 
      	 
      	
              Sandy,
      UT 84070

            
	 
      	 
      	 
      
	 
      	 
      	
              ATTN:
      [President] indicated for such party herein.

            
	 
      	 
      	 
      
	 
      	
              If
      to Distributor:

            
	 
      	 
      	 
      
	 
      	 
      	
              Electronic
      Monitoring Services Corporation

            
	 
      	 
      	
              P.O.
      Box 364744

            
	 
      	 
      	
              San
      Juan, Puerto Rico 00936

            
	 
      	 
      	 
      
	 
      	 
      	
              ATTN:
      Hector Gonzalez

            

    

    

    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.

    

    

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

    

    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.

    

    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.

    

    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.

    

    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.

    

    

    REMAINDER
OF PAGE INTENTIONALLY LEFT IN BLANK

    

    SIGNATURE
PAGE FOLLOWS

    

    
      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

    

    IN
WITNESS WHEREOF, the parties have executed this Distribution Agreement as of the
Effective Date.

    

    
      	 
      	
              COMPANY:

            
	 
      	 
      
	 
      	
              SecureAlert,
      Inc.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:
      ____________________

            
	 
      	
              Name:__________________

            
	 
      	
              Title:
      ___________________

            
	 
      	 
      
	 
      	 
      
	 
      	
              DISTRIBUTOR:

            
	 
      	 
      
	 
      	
              Security
      Monitoring Services Corporation

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:____________________

            
	 
      	
              Name:  Hector
      L. Gonzalez

            
	 
      	
              Title:  President

            

    

     

    

    

    
       

      
        	AGREED AND
      ACCEPTED	 
	 	 
	RemoteMDx
      Inc.	 
	 	 
	 	 
	By:___________________	 
	Name:________________	 
	

                Title:
      _________________

              	 

      

       

    

    

     

    

    

     

     

     

     

     

     

     

     

     

    9rmdxdistagreerevised.htm

    
      

      

    

    
      Exhibit 10.30

      DISTRIBUTION
AGREEMENT

      

      This
DISTRIBUTION AGREEMENT (the “Agreement”) is made and entered into as of December
28, 2006 (the “Effective Date”), by and among the following: (1) SecureAlert,
Inc., a Utah corporation (the “Company”), with its principal executive office
located at 150 West Civic Center Drive, Suite 400, Sandy, UT  84070:
(2) RemoteMDx, Inc., a Utah corporation (“RMDX”) with its principal executive
office located at 150 West Civic Center Drive, Suite 400, Sandy, Utah 84070; and
(3) Security Investment Holdings, LLC, a Utah limited liability company
(“Distributor”) with its principal office located at 2522 Alice Drive, West
Jordan, Utah 84088.

      

      RECITALS

      

      WHEREAS, the Company is, among
other things, the manufacturer and seller of electronic location monitoring
devices (the “Device”) and provider of services for the monitoring, maintenance
and repair of the Device (“Device Services”); and

       

      WHEREAS, the Company and
Distributor now desire to enter into a business arrangement whereby Distributor
will provide specific Services (as defined herein) for the Company under the
terms and conditions set forth herein.

       

      NOW, THEREFORE, based upon the
foregoing premises, and in consideration of the mutual covenants, promises, and
agreements here, it is hereby agreed as follows:

       

      AGREEMENT

       

      1.           Term.

       

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

       

      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 in accordance with the terms
hereof.  Either party may elect not to renew the Agreement by
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
(collectively, the “Services”) for the Company:

       

      (a)           Distributor
shall use commercially reasonable efforts to identify, locate and introduce
potential purchasers of the Device and Device Services to the Company
(including, but not limited to, governmental entities, agencies, bureaus and the
representatives thereof) and assist the Company in securing binding contracts
for the Company’s sale of Devices and Device Services to such potential
customers identified and introduced by the Distributor (“Distributor Initiated
Customers”);

       

      
        
           

        

        
          A -
1

          
            

          

        

        
           

        

      

      (b)           Distributor
shall deliver units of the Device to Distributor Initiated Customers, train such
customers in the use of the Device, provide relevant information to such
customers relating to the Device and Device Services, and otherwise assist such
customers by responding to requests for information relating to the Device and
Device Services; and

       

      (c)           
Distributor shall provide 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 the parties may mutually
agree.

       

      2.2           Distributor’s
Resources.  Distributor shall employ a sufficient number of
trained professional staff and shall have sufficient facilities and resources
necessary to perform the Services in accordance with the terms of this
Agreement.  Distributor is solely responsible for all costs associated
with providing the Services.

       

      2.3           Assignment and
Sub-Licensing.  The rights and obligations of Distributor under
this Agreement are personal to Distributor and, except as expressly provided
herein, may not be sold, assigned, delegated, transferred or conveyed, nor shall
Distributor sub-license the duties or any rights or interests herein without the
Company’s prior written consent, and any such action shall be null and
void.  Any such unauthorized action, or any attempt at any such
unauthorized action, shall constitute a material breach of this
Agreement.  In the event of any such unauthorized action, any
consideration or fees of any type received by Distributor from an intended
unauthorized transferee or sub-licensee shall be deemed to be collected by
Distributor for and on behalf of the Company and shall be forthwith paid to the
Company.

       

      3.           Sales, Payments and
Pricing.

       

      3.1           Sales.  All
contracts with Distributor Initiated Customers for the sale of Devices and for
Device Services will be entered into directly by the Company and the Company
will provide Device Services to Distributor Initiated Customers.

       

      3.2           Payments.  The
Company shall collect all amounts due from Distributor Initiated Customers for
sales of Devices and Device Services.

       

      3.3           Pricing.  The
retail prices for the Device and Device Services (including equipment warranty
and non-emergency airtime for subscribers and sales personnel) shall be
determined solely by the Company.  The Company shall inform the
Distributor in writing of any pricing changes and any such changes will become
effective upon receipt by Distributor of notice thereof.

       

      3.4           Initial Sale To
Distributor: Effective on the Effective Date, Distributor will purchase
from the Company 667 units of the Device for $400,000.  As to these
667 units of the Device purchased by Distributor pursuant to this Section 3.4
only, the Company will charge a daily Device Service fee for such units which
will be $1.00 per day per active Device less than the then-effective daily
Device Service fee.  This reduction in the daily Device Service fee
for the 667 units sold under this Section 3.4 will only apply for a period of
three (3) years from the Effective Date.

       

      
        
           

        

        
          A -
2

          
            

          

        

        
           

        

      

      4.           Commission.

       

      4.1           Commission.  For
each Device or Device Service sold by the Company to a Distributor Initiated
Customer, the Company shall pay Distributor a commission based upon the daily
fee it receives from a Distributor Initiated Customer for each active
Device.  The per day/per active Device commission is as
follows:

       

      
        	
                 
      

              	
                (a)

              	
                For
      contracts with Distributor Initiated Customers within the State of Utah:
      $0.60
      per day per unit.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                For
      contracts with Distributor Initiated Customers outside the State of
      Utah:  $0.85
      per day per unit.

              

      

       

      4.2           Commission
Payment.  Distributor is only entitled to receive a commission
described in Section 4.1 when the Company has been paid in full by the customer
for the specific Device or Device Service.  The Company shall pay each
month’s accrued commissions (based on accounts that are paid in full) on or
before the 20th day of the succeeding month.  If a customer account is
paid in full in a subsequent month, the Company shall include the commission in
that subsequent month’s payment to Distributor.

       

      4.3           Distributor Initiated
Customer Report.  Together with each payment to Distributor
pursuant to Section 4.2, above, the Company will provide Distributor a monthly
subscriber report for Distributor Initiated Customers including payment,
non-payment and cancellation information for such customers.

       

      4.4                       Termination/Non-Renewal.
In the event that this Agreement is terminated or not renewed pursuant to the
terms of this Agreement, commissions due to distributor under this Agreement
shall continue for a period of six (6) months following such termination or
non-renewal.

       

      

       

      5.           Issuance of RemoteMDx, Inc.
Warrant. 

       

      In the
even that sales of the Device and Device Services to Distributor Initiated
Customers exceed five thousand (5,000) units, with set distributor initiative
customers paying on the 5,000 units for a period of six months, upon notice and
request by Distributor, RMDx will issue to Distributor a Warrant (in
substantially the form annexed hereto as Exhibit A, as such
form may be modified in the discretion of RMDx to comply with any applicable
federal or state securities laws) for the purchase of 200,000 shares of RMDx
common stock at $1.00 per share (the “Warrant”).  The Warrant will be
exercisable from the date of issuance through May 17, 2011.

       

      
        
           

        

        
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      6.           Distributor Contacts With
Potential Customers.

       

      6.1           Written Approvals for
Potential Distributor Initiated Customers. The Distributor shall not
contact any person, entity, or organization on behalf of the Company in
connection with the sale or marketing of the Device and Device Services without
the Company’s prior written consent.

       

      6.2           Identification of
Distributor Initiated Customers. The Company’s consent to and approval of
Distributor’s contacts with potential Distributor Initiated Customers shall be
evidenced by the listing of such potential customers on Exhibit B, attached
hereto and incorporated herein by this reference, and the Company’s Initials
next to the name of such potential customer on Exhibit
B.  The inclusion of a potential Distributor Initiated Customer
on Exhibit B
shall establish that the Distributor was the source for such customer, thereby
entitling Distributor to receive commissions for sales of Devices/Device
Services to such customer pursuant to Section 4, above.

       

      6.3           Term of Company
Approvals.  The Company’s approval of potential Distributor
Initiated Customer shall be valid for six (6) months from the time that the
potential Distributor Initiated Customer is added to Exhibit
B.  If a potential customer does not enter into a contract for
Devices/Device Services with the Company within such six (6) month period of
being placed on Exhibit B, the
potential customer will no longer be considered a Distributor Initiated Customer
under this Agreement.  In the event that a potential customer is
removed from Exhibit
B pursuant to this Section 6.3, Distributor may seek the Company’s
approval to re-list such potential customer discretion, may approve such request
and re-list such potential customer on Exhibit B as a
potential Distributor Initiated Customer

       

      6.4                         Referrals.                                All
referrals that the Company receives as a result of Distributor’s efforts will be
forwarded to Distributor.

       

      7.           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.  Distributor shall only use marketing, promotion and
training materials supplied by the Company unless the Company has provided
written pre-approval for the use of specified non-Company provided
materials.  Distributor is solely responsible for any expenses
incurred by Distributor in connection with any marketing
promotions.

       

      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 of that are not otherwise
specifically pre-approved in writing by the Company.

       

      
        
           

        

        
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      9.           Indemnity.

       

      9.1           The Company’s
Indemnity.  The Company agrees to indemnify and hold harmless
Distributor and Distributor’s parent, subsidiaries, affiliates, successors,
assigns, officers, directors, members, governors, shareholders, employees and
agents (the “Distributor Indemnified Parties”) from and against any and all
losses, damages, liabilities, obligations, judgments, reasonable attorneys fees
and costs, settlements, costs and other expenses (collectively, “Losses”)
associated with any claim that may be asserted against a Distributor Indemnified
Party arising as a direct result of any material breach by the Company of this
Agreement during the Term of this Agreement in connection with Distributor
Initiated Customers (a “Company Indemnified Claim”).  The Company’s
indemnity obligations under this section for any Company Indemnified Claim shall
not exceed the lesser of: (i) the actual aggregate amount of any Losses for a
Company Indemnified Claim or (ii) the aggregate amount of all commissions paid
by the Company to Distributor in connection with the Distributor Initiated
Customer giving rise to such Company Indemnified Claim over the 12-month period
immediately preceding the date on which Distributor receives notice of such
Company Indemnified Claim.

       

      9.2           Distributor’s
Indemnity.  Distributor hereby agrees to indemnify and hold
harmless the Company and the Company’s parents, subsidiaries, affiliates,
successors, assigns, officers, directors, members, governors, shareholders,
employees and agents (the “Company Indemnified Parties”) from and against any
Losses that directly or indirectly arises from, or is related to, any material
breach by Distributor of this Agreement, including, but not limited, any Losses
resulting from the negligent or intentional misrepresentation by Distributor or
its employees or agents to any person or entity with respect to the Device or
Device Services (a “Distributor Indemnified Claim”).

       

      9.3           Indemnification
Procedure.

       

      (a)           Within
five (5) business days of receipt of notice of an actual or potential
Indemnified Claim (either a Company Indemnified Claim or Distributor Indemnified
Claim, as applicable), the indemnified party will notify the indemnifying party
of the existence of any actual or potential Indemnified Claim and shall tender
the defense of the Indemnified Claim to the indemnifying party.

       

      (b)           The
indemnifying party will assume the defense, at its sole expense, and with legal
counsel reasonably acceptable to the indemnified party, of any claim or
proceeding as to which such indemnifying party has an indemnification obligation
hereunder.  If the indemnifying party fails to do so, the indemnified
party will have the right to assume its own defense, and, subject to other
applicable provisions of this Agreement, the indemnifying party will be
obligated to reimburse the indemnified party for any and all reasonable expenses
(including but not limited to reasonable attorneys’ fees and costs) incurred in
the defense of such claims or litigation, in addition to the indemnifying
party’s other indemnity obligations hereunder.

       

      
        
           

        

        
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      (c)           The
indemnified party may, at is sole cost and expense, retain counsel to monitor
the Indemnified Claim, provided that such counsel shall not have authority to
take any action that affects the defense of the Indemnified Claim unless the
indemnified party disclaims its right to indemnification hereunder.

       

      (d)           An
indemnifying party may not enter into any settlement or compromise of any claim
without the prior written consent of the indemnified party unless such
settlement or compromise is solely for money damages or will have no continuing
effect in any material respect on the indemnified party.

       

      (e)           In
the event that an indemnified party is subject to any demand or claim which
involves conduct that is outside of the scope of this indemnification as well as
an Indemnified Claim, the indemnified party shall cooperate with the
indemnifying party in the defense of the Indemnified Claim, and may control the
overall defense of such action, with the indemnifying party liable only to the
extent of any Losses directly attributable to the Indemnified Claim component of
such claim.

       

      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.         Non-Competition.

       

      Without
the prior written consent of the Company, during the Term of this Agreement and
for a period of one (1) year after the termination of this Agreement,
Distributor agrees not to promote, market, or distribute non-Company products
and services which compete with the Device and Device Services.

       

      12.         Termination.

       

      This
Agreement may be terminated by the Company: (a) immediately upon the occurrence
of a material breach of this Agreement or fraud by Distributor and (b) for any
reason upon thirty (30) days’ prior written notice to the
Distributor.  This Agreement may also be terminated by the written
agreement of the parties.

       

      13.         Dispute
Resolution.

       

      13.1         Disputes.  The
parties agree that in the event any dispute arises between them under this
Agreement, they desire to avoid litigation.  Accordingly, the
aggrieved party will give written notice of the dispute to the other party and
both parties will attempt to settle the dispute amicably during the thirty
(30)-day period following such notice.

       

      
        
           

        

        
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      13.2         Mediation.  If
the dispute remains unsettled after the thirty (30)-day period referenced in
Section 13.1, the parties agree to mediate their dispute with a mutually agreed
upon mediator.  Mediation will, if possible, be conducted during the
ninety (90)-day period following expiration of the thirty (30)-day period
referenced in Section 13.1.

       

      13.3         Arbitration.  If
mediation fails to resolve the dispute within the ninety (90)-day period
referenced in Section 13.2, the parties agree that the dispute will be submitted
to final and binding arbitration by a single arbitrator in accordance with the
Commercial Rules of the American Arbitration Association (“AAA”) in effect at
the time of the dispute.  Unless otherwise directed by the arbitrator,
such arbitration must be concluded within one hundred twenty (120) days of the
expiration of the ninety (90)-day period for mediation referenced in Section
13.2.

       

      13.4         Situs.  Unless
otherwise agreed to by the parties, any mediation or arbitration hearing or
meeting held under this Section 13 shall take place in Salt Lake City,
Utah.

       

      13.5         Costs.  The
costs of mediation (including the mediator’s fees and expenses and costs
directly related to the conduct of the mediation, but excluding each party’s
direct costs for transportation, attorneys, etc., for which each will be solely
responsible) will be shared equally by the parties.  The costs of
arbitration shall be allocated among or between the parties as determined by the
arbitrator.

       

      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 deemed to be duly
delivered if delivered in person, by overnight mail, by certified mail, or by
registered mail.

       

      
        
           

        

        
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                If to
      Company:

              	
                If to
      Distributor:

              
	 	 
	
                SecureAlert,
      Inc.

              	
                Security
      Investment Holdings, LLC

              
	
                150
      W. Civic Center Dr., Ste. 400

              	
                2522
      Alice Drive

              
	
                Sandy,
      UT 84070

              	
                West
      Jordan, UT 84088

              
	
                Attn:
      President

              	
                Attn:
      Managing Member

              
	 
      	 
      
	
                If to
      RMDx:

              	 
      
	 
      	 
      
	
                RemoteMDx,
      Inc.

              	 
      
	
                150
      W. Civic Center Dr., Ste. 400

              	 
      
	
                Sandy,
      UT 84070

              	 
      
	
                Attn:
      President

              	 
      

      

      

      Each of
the foregoing shall be entitled to specify a different person and/or address by
giving notice thereof pursuant to this section.

       

      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.

       

      14.8         Entire
Agreement.  This Agreement contains the entire agreement
between the Parties hereto concerning the subject matter hereof and supersedes
all prior and contemporaneous agreements, arrangements, negotiations and
understandings between the Parties relating to the subject matter
hereof.  There are no other understandings, statements, promises or
inducements, oral or otherwise contrary to the terms of this
Agreement.  No representations, warranties, covenants or conditions,
express or implied, whether by statute or otherwise, other than as set forth
herein, have been made by any Party hereto.

       

      14.9         No Implied
Waiver.  No waiver of any term, provision or condition of this
Agreement whether by conduct or otherwise, in any one or more instances, shall
be deemed to be, or shall constitute, a waiver of any other provision hereof,
whether or not similar, nor shall such waiver constitute a continuing waiver,
and no waiver shall be binding unless executed in writing and delivered as per
Section 14.4 by the party making the waiver.

       

      
        
           

        

        
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      14.10       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.

       

      

       

      IN
WITNESS WHEREOF, the parties have executed this Distribution Agreement as of the
Effective Date.

       

      

       

      
        	
                THE
      COMPANY:

              	
                DISTRIBUTOR:

              
	
                SecureAlert,
      Inc.

              	
                Security
      Investment Holdings, LLC

              
	 
      	 
      	 
      	 
      
	
                By:

              	
                ________________________

              	
                By:

              	
                ________________________

              
	
                Name:

              	
                ________________________

              	
                Name:

              	
                ________________________

              
	
                Title:

              	
                ________________________

              	
                Title:

              	
                ________________________

              
	 
      	 
      	 
      	 
      
	
                Date:

              	
                ________________________

              	
                Date:

              	
                ________________________

              

      

      

       

      
        	
                RMDx:

              
	 
      	 
      
	
                By:

              	
                ________________________

              
	
                Name:

              	
                ________________________

              
	
                Title:

              	
                ________________________

              
	 
      	 
      
	
                Date:

              	
                ________________________

              

      

      

       

      
        
           

        

        
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