Document:

<PAGE>
                                                                   EXHIBIT 10.14

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY "[***]" ARE SUBJECT TO A
CONFIDENTIAL TREATMENT REQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT.
COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT HAVE BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION AS PART OF THIS COMPANY'S CONFIDENTIAL TREATMENT
REQUEST.

                               PURCHASE AGREEMENT

      THIS PURCHASE AGREEMENT (this "Agreement") is made this 26th day of
December 2001 by and between Directed Electronics, Inc., a California
Corporation located at One Viper Way, Vista, California ("DIRECTED") and Nutek
Corporation, a Taiwan Corporation located at 5F, No. 3 Alley 6, Lane 45,
Pao-Hsing Road, Hsing-Tien City, Taipei, Taiwan ("SUPPLIER").

1.    DEFINITIONS

      The following terms shall have the following meanings under this
Agreement:

      1.1 "Documentation" means schematics, designs, drawings, manuals
(including without limitation installation manuals, owner's manuals and service
manuals), models, photographs, plans, renderings, samples, schematics, sketches,
specifications and any other written and tangible materials provided by DIRECTED
or developed by SUPPLIER in connection with this Agreement.

      1.2 "Products" means those products identified on Schedule 1 attached
hereto, and the pans and components thereof, manufactured by SUPPLIER and sold
to DIRECTED pursuant to this Agreement. The Products covered by this Agreement
may be changed from time to time upon the written consent of both parties.

      1.3 "Specifications" means the descriptive material itemizing the
functional and operational requirements of the Products and such other technical
specifications, drawings and other material used in the development of the
Product. The Specifications covered by this Agreement may be changed from time
to time upon the written consent of both parties,

      1.4 "Trademarks" means those trademarks or trade names owned or used by
DIRECTED or its affiliates, and designated by DIRECTED in its sole discretion
for use in connection with the Products.

      1.5 "Vendor Requirements" means the packaging, marking and shipping
requirements as expressly described in DIRECTED ELECTRONICS, INC.'s Vendor
Requirements package attached to this Agreement as Schedule 4 and fully
incorporated herein.

      1.6 "Customer" means any corporation, company, partnership, individual, or
other entity that purchases products the same or similar to the Product, either
directly or indirectly, from SUPPLIER.

2.    MANUFACTURE AND SUPPLY OF PRODUCTS

      2.1 Sales and Forecasting. SUPPLIER agrees to manufacture the Products to
conform to the Specifications, and to sell the Products to DIRECTED in
accordance with the terms and conditions of this Agreement. Specific quantities
of Products shall be ordered by DIRECTED for purchase by the placement of a
purchase order issued by DIRECTED. DIRECTED shall provide to SUPPLIER continuous
rolling updated 3 month forecasts of anticipated production need with the first
month of the 3 months being an actual purchase order and the following two
months representing anticipated future Product needs. DIRECTED reserves the
right to adjust the rolling updated forecast by [***] of the original forecast.
DIRECTED shall only be obligation to purchase Products that are incorporated
into the continuous rolling 3-month forecast.

      2.2 Competitive Sales. SUPPLIER shall not sell the Products to any party
except DIRECTED, or those parties listed in Schedule 5, fully incorporated
herein and to be provided by SUPPLIER before the execution of this Agreement,
without DIRECTED'S prior written consent, which consent may be withheld in
DIRECTED'S sole and absolute discretion. DIRECTED shall not be restricted as to
its sale or use of the Products purchased hereunder including, without
limitation, worldwide marketing to any end user or remarketed, and use by
DIRECTED for its benefit or for the benefit of others.

<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

      2.3 Right to Second Source. DIRECTED shall have the Right, at its sole and
absolute discretion, to acquire at any time Product that is the same, similar or
related to the Products from any other source. If Directed exercises it right
under this section, SUPPLIER shall transfer the Directed owned injection mold
and artwork to DIRECTED'S assigned source in 30 days. Directed will pay all
freight.

      2.4 Licensing Right. Notwithstanding any other right in section 2.3,
DIRECTED or its designated second source shall have the right to a [***] from
SUPPLIER to make, use and sell [***] incorporated into the Product including but
not limited to, [***] in the event of SUPPLIER'S:

      (a)   Failure to provide the Product within [***] days after the scheduled
            delivery date due to any natural disaster or war

      (b)   Failure to maintain quality or service standards after a [***] or
            more of the SUPPLIER.

The [***] under this section 2.4 shall extend only to Product produced for
DIRECTED.

      2.5 SUPPLIER agrees to provide to DIRECTED, for storage at a secure
facility locate off site and away from DIRECTED'S normal place of business,
[***] which is incorporated into the Product or newly designed Product. DIRECTED
will have no [***] and agrees not to [***] under any condition except under the
terms set out in section 2.4 of this Agreement. SUPPLIER and its affiliates are
the exclusive owners of all right, title and interest in and to the proprietary
rights associated with or arising from the [***].

3.    ORDERS

      3.1 Placement. DIRECTED may place firm purchase orders for the delivery of
Products by SUPPLIER. Each purchase order shall specify quantities and a
delivery date of not less than sixty (60) days following the date of the
purchase order. Notwithstanding the foregoing, if DIRECTED specifies an
accelerated delivery date in any purchase order, SUPPLIER will use its best
efforts to meet such accelerated date, but DIRECTED cannot cancel those orders,
even if the SUPPLIER cannot meet the accelerated delivery date.

      3.2 Acceptance. SUPPLIER shall accept and acknowledge all purchase orders
that are placed by DIRECTED in conformance with the terms of this Agreement
within three (3) business days, Any purchase order not placed in conformance
with the terms of this Agreement must be rejected by written notice from
SUPPLIER to DIRECTED within three (3) business clays after receipt of such
purchase order. In the event that SUPPLIER uses a form of acknowledgment that
conflicts in any way with this Agreement or DIRECTED's form of purchase order,
the terms of this Agreement and DIRECTED's purchase order shall be controlling.

4.    PAYMENT TERMS

      4.1 Prices. The total purchase prices for the Products are set forth in
Schedule 2 attached hereto. Prices for the Products may not be [***] by
SUPPLIER, and then only provided that SUPPLIER notifies DIRECTED and negotiates
for a mutually agreeable price at least [***] before any change. SUPPLIER
understands that DIRECTED expects [***] on all Products that are relatively
unchanged in design over the prior year. SUPPLIER agrees to use its BEST EFFORTS
to reduce Product cost over time.

                                       2

<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

      4.2 Bill of Materials (BOM). SUPPLIER agrees to provide DIRECTED with
complete Bill of Materials (BOM), list of component suppliers and
sub-contractors for each of the products set forth in Schedule 1. Upon request
by DIRECTED, SUPPLIER will provide [***] part for each of the products set forth
in Schedule 1, or for Product under a request for quote.

      4.3 Payment. Payment for each shipment of Products shall be in accordance
with the payment schedule fully incorporated herein as Schedule 3. All payments
shall be made in United States Dollars.

      4.4 Taxes and Duties. Directed shall be responsible for the payment of all
taxes and duties associated with the importation of the Product into the United
States.

5.    DELIVERY

      5.1 Shipment. SUPPLIER will ship the Products F.O.B. Country of Origin at
DIRECTED's cost. Title to the Products and risk of loss or damage shall pass
from SUPPLIER to DIRECTED upon delivery of the Products to DIRECTED's preferred
shippers as set forth and listed in DIRECTED's Vendor Requirements as set forth
in Schedule 4, or other shipper specified by DIRECTED.

      5.2 Acceptance. DIRECTED shall have the right to conduct an incoming
inspection and shall have forty-five (45) days after delivery to notify SUPPLIER
in writing whether some or all of the Products are rejected. Any Product not
rejected within this forty-five (45) day period shall be deemed accepted. In
the event DIRECTED rejects Products, DIRECTED shall provide a detailed
explanation therefore, and SUPPLIER may inspect the rejected Products at
DIRECTED's premises, replace the rejected Products, or require the return of the
rejected Products, freight collect. Rejected Products shall be [***] to
DIRECTED. The AQL standards are MIL-105D Level II, Major 1.0, Minor 2.5.

      5.3 Rescheduling. DIRECTED may request a rework of Product or a changes in
delivery dates appearing in its purchase orders at no charge provided written
notice of such change is received by SUPPLIER not less than thirty (30) days
prior to the scheduled delivery date to which the change pertains.

      5.4 Cancellations. SUPPLIER shall receive the cancellation of any purchase
order not less than sixty (60) days prior to the scheduled delivery date.
DIRECTED shall pay twenty (20) percent of FOB cost if the order is cancelled
between (30-59) days. No cancellation will be accepted for less than 30 days
prior to delivery date.

      5.5 Late Shipments. SUPPLIER shall ship all products on the dates as
specified in section 3.1 or 5.3. Shipments are considered late if Products is
not delivered to DIRECTED's preferred shippers within twenty (20) day of the
confirmed delivery date as specified in section 3.1 or 5.3. SUPPLIER will be
responsible for all airfreight charges incurred for the shipment of Product
resulting from late shipments (Directed will, however, only request air freight
on such 'late' shipments where absolutely necessary.) SUPPLIER will not be
responsible for the late shipments caused by the parts that DIRECTED cannot
provide thirty (30) days before the delivery date. DIRECTED shall be responsible
for all airfreight charges incurred for the shipment of Product that is not
considered a late shipment and a request for air shipment is made by DIRECTED.

6.    INTELLECTUAL PROPERTY

      6.1 Trademark License. SUPPLIER shall have no right, title or interest in
any DIRECTED name, trade name, or trademark, registered or not, anywhere in the
World. SUPPLIER's sole privilege under this Agreement is a non-exclusive,
limited license to sell Product to DIRECTED, some of which bear in whole or in
part trademarks owned by DIRECTED. Upon the termination or expiration of this
Agreement, SUPPLIER's limited privilege to sell Products using such trademarks
shall immediately cease. Any trademarks used in the course of this Agreement
must be reviewed and approved in advance, in writing, by DIRECTED.

                                       3

<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

      6.2 Trademark Use. SUPPLIER shall affix the Trademarks on all Products
manufactured pursuant to this Agreement, and packaging therefore, in a manner as
specified by DIRECTED. SUPPLIER shall not use the Trademarks in any manner
inconsistent with the instructions of DIRECTED nor on any products except as
manufactured pursuant to this Agreement. Upon the expiration or termination of
this Agreement, SUPPLIER shall immediately discontinue the use of the
Trademarks, and thereafter shall not use the Trademarks, or marks or names
confusingly similar thereto, directly or indirectly in connection with its
business or that of its affiliates or principals, During the term of this
Agreement, SUPPLIER will promptly notify DIRECTED in the event that it learns of
any infringement or unauthorized use of the Trademarks by any person.

      6.3 Proprietary Designs and Information. SUPPLIER agrees that all
proprietary designs anti information, related to all Products manufactured
pursuant to this Agreement, that are provided to SUPPLIER by DIRECTED shall only
be used in the manufacturing of said Product for DIRECTED exclusively, SUPPLIER
shall not use proprietary designs or information for the benefit on any other of
SUPPLIER's Customers.

7.    RIGHTS IN DATA

      7.1 Ownership of Proprietary Rights. DIRECTED and its affiliates are the
exclusive owners of all right, rifle and interest in and to the proprietary
rights associated with or arising from the Products.

      7.2 Ownership of Documentation. The Documentation shall remain the
exclusive property of DIRECTED and its affiliates and shall he protected from
disclosure in accordance with the provisions of Article 12 of this Agreement.
Upon expiration or termination of this Agreement, the Documentation (including
all copies thereof) shall be promptly returned to DIRECTED.

8.    WARRANTY

      8.1 General Warranty. SUPPLIER warrants that all Products (i) will conform
to the Specifications. (ii) will comply with approved products, and (iii) will
be free from defects in material and workmanship, for a period of [***] from
delivery date from supplier. The foregoing warranty shall not apply to any
batteries, sirens, or failure and malfunction which results from any of the
following events (if applicable):

            (a) Improper design of a Product by DIRECTED;

            (b) Components, parts or materials supplied by DIRECTED and used in
the Product;

            (c) Improper installation, maintenance, operation or use of a
Product;

            (d) Any modification of a Product performed without SUPPLIER's
written approval.

      8.2 Repair or Replacement. SUPPLIER will either repair or replace any
Product that is in breach of the foregoing warranty. Shipment to SUPPLIER shall
be at SUPPLIER's expense. Directed shall buy Cargo Marine Insurance to cover the
damages during shipping

      8.3 Optional Credit. In lieu of all individual warranty claims, if
SUPPLIER will not repair or place any product that is in breach of the foregoing
warranty, SUPPLIER may designate a [***] issued as a seperate credit once per
quarter. DIRECTED will monitor the reject rate and lot defectives [***] or more
failure of the same Product type with the same manufacturing date) and negotiate
an adjustment of the discount amount accordingly with SUPPLIER.

9.    QUALITY ASSURANCE
                                       4

<PAGE>

      9.1 Quality Certification. Because DIRECTED seeks to continuously improve
the quality of our products and the level of service to our customers DIRECTED
requires SUPPLIER to maintain a documented quality procedure. SUPPLIER
represents that it maintains a documented quality assurance procedure in
accordance with QS 9000 and/or ISO 9000 quality assurance standards. SUPPLIER
agrees to submit to DIRECTED its documented quality procedure for review.
SUPPLIER agrees to, at its own expense, maintain certification under ISO 9000
and/or QS 9000 quality assurance programs.

      9.2 SUPPLIER's Inspection. SUPPLIER shall inspect the Products before
delivery to assure compliance with the Specifications. SUPPLIER shall not
deliver any Products that fail such inspection. Upon request by DIRECTED,
SUPPLIER shall provide the record of such finished goods inspection.

      9.3 Traceability. If the nature of the Product so requires SUPPLIER agrees
to give each Product a unique serial number which shall be recorded for purposes
of defect and warranty traceability, and SUPPLIER shall maintain a record
keeping system with such data and provide DIRECTED with access to such data as
necessary.

      9.4 Changes. If any change in the design, material or manufacturing
process for the Products (whether or not requested by DIRECTED) causes the
Products to be of materially different quality from prior shipments, SUPPLIER
shall submit those changes to DIRECTED for approval.

      9.5 Facility Inspection. SUPPLIER shall from time to time permit DIRECTED
or its agent to inspect the facilities, conditions regarding quality assurance,
records and documents of SUPPLIER relating to the Products, and of SUPPLIER's
suppliers and subcontractors, in order for DIRECTED to determine whether the
Products are being manufactured under appropriate quality controls; provided,
however, that such inspections will be conducted during normal working hours
with prior notification to SUPPLIER. Any information disclosed to or observed by
DIRECTED or its agent during such inspections shall be deemed to be proprietary
information within the meaning of and subject to the provisions of Article 10 of
this Agreement.

      9.6 Abnormalities. SUPPLIER and DIRECTED shall promptly notify each other
of any abnormalities with respect to the Products or the manufacturing process
relating to the Products if SUPPLIER or DIRECTED believes such abnormalities
materially affect the quality or function of the Products. In such case,
SUPPLIER shall promptly report to DIRECTED any determination made as to the root
cause of the abnormality and the countermeasures taken by SUPPLIER in response
thereto.

      9.7 Meetings. SUPPLIER and DIRECTED shall meet periodically and from time
to time when necessary during each year of the term of this Agreement to discuss
quality assurance and product improvement matters and various other aspects of
their business relationship.

10.   CONFIDENTIALITY

      Each party has executed in association with this Agreement a reciprocal
non-disclosure agreement, said reciprocal non-disclosure agreement is fully
incorporated herein, and shall remain in full force and effect throughout the
term of this agreement.

11.   TERMS AND TERMINATION

      11.1 Term. This Agreement shall have an initial term of five (5) years
from the date hereof and shall thereafter be automatically renewed for
successive one (1) year terms unless notice of termination is given by DIRECTED
to SUPPLIER at least sixty (60) days PRIOR TO THE TERMINATION date of the
initial term or any renewal term, or unless earlier TERMINATED UNDER Section
11.2 or Section 11.3.

      11.2 Termination for Default. In the event that either of the parties
defaults in the performance of any of the terms, conditions, obligations,
undertakings, covenants, or liabilities set forth in this Agreement, the other

                                       5

<PAGE>

party shall give the defaulting party notice of such default. In the event the
defaulting party has not remedied the default within thirty (30) days following
notice thereof, the party giving notice may immediately terminate this Agreement
by providing the defaulting party with written notice of termination.

      11.3 Automatic Termination. This Agreement shall terminate immediately
upon written notice by DIRECTED in the event bat SUPPLIER ceases to carry on its
business, SUPPLIER becomes the subject of any proceedings under any state,
federal or other jurisdictional law for the relief of debtors, SUPPLIER
otherwise becomes insolvent or bankrupt, SUPPLIER makes an assignment for the
benefit of creditors, or upon the appointment of a receiver for SUPPLIER or the
reorganization of SUPPLIER for the benefit of creditors.

      11.4 Effect of Termination. The termination of this Agreement shall not
relieve either party from its obligations, which have accrued pursuant to the
provisions of this Agreement, or release either party from any obligations that
have been incurred as a result of operations conducted under this Agreement. In
any event, the rights and obligations of Articles 6, 7, 8 and 10, and Sections
12.6 and 12.8 shall survive the expiration or termination of this Agreement.

      11.5 Repurchase of Inventory. Upon termination of this Agreement, DIRECTED
shall have the right, but not the obligation, to purchase SUPPLIER's current
inventory of the Products. During a thirty (30) day period following the
termination of this Agreement, SUPPLIER shall permit DIRECTED to enter onto
SUPPLIER's premises to inspect SUPPLIER's current inventory of the Products.
Within fifteen (15) days following such inspection, DIRECTED shall have the
right to purchase any or all of such inventory. Such purchase shall be pursuant
to all of the terms and conditions of this Agreement.

      11.6 Transfer of Tooling. Upon termination of this Agreement, DIRECTED
shall have the right to transfer any and all tooling and proprietary shop
equipment owned by Directed. DIRECTED will be obligated to pay SUPPLIER the fair
cost for packing tooling and equipment transferred. However, DIRECTED shall have
the right to transfer at no cost any and all tooling related to the Product.

12.   MISCELLANEOUS

      12.1 Relationship of Parties. This Agreement does not create the
relationship of principal and agent between SUPPLIER and DIRECTED nor shall it
be construed as creating any form of legal arrangement which would impose
liability upon one party for the act or omission of the other party.

      12.2 Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be delivered personally or mailed by
registered or certified mail, return receipt requested, or delivered by
overnight air courier guaranteeing next clay delivery, to the following
addresses:

            If to SUPPLIER:     President
                                NUTEK, Inc.
                                5F, No. 3, Alley 6, Lane 45
                                Pao-Hsing Road
                                Hsing-Tien City
                                Taipei, Taiwan

            If to DIRECTED:     CEO
                                DIRECTED ELECTRONICS, INC.
                                One Viper Way
                                Vista, California 92083
                                United States of America

Either party may change its address upon notice given to the other party in the
foregoing manner. The notices shall be effective three (3) days after received
by the other party.

                                       6

<PAGE>
      12.3 Severability. If any provision of this Agreement shaft be determined
by a court of competent jurisdiction to be invalid, illegal, or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

      12.4 Entire Agreement. This Agreement (including any schedules attached
hereto) contains the entire agreement of the parties with respect to the
Products to be furnished hereunder (except for any additional terms or
conditions which may be contained in any purchase order which may be issued by
DIRECTED pursuant to this Agreement). Any modification or amendment of any term
or provision of this Agreement shall not be valid or binding unless the same is
in writing and signed by each party hereto.

      12.5 Assignment. Neither party shall assign any of its rights or
obligations under this Agreement without the prior written consent of the other
party, which consent may be withheld at the other party's sole and absolute
discretion; provided, however, that DIRECTED may assign its rights and
obligations hereunder to its affiliates or to any successor, person or entity,
whether arising by merger, transfer of assets, sale of stock, operation or law
or otherwise, or without the need for any consent by SUPPLIER. This Agreement
shall be binding upon and shall inure to the benefit of the legal successors and
assigns of the parties hereto.

      12.6 Governing Law and Venue. This Agreement shall be governed by and
construed in accordance with the laws of the State of California, including the
provisions of the Uniform Commercial Code as adopted in the State of California,
and not the Convention for the International Sale of Goods. The parties agree
that any litigation relating directly or indirectly to this Agreement must be
brought before a court of competent jurisdiction within the State of California.

      12.7 Waivers. No waiver of any of the terms or conditions of this
Agreement by either party shall be valid or binding unless the same is in
writing and signed by an authorized officer of the waiving party. A waiver by
either party of a breach of any of the provisions of this Agreement shall not be
construed as a waiver of any further breach of the same provision or of any
other provision of this Agreement.

      12.8 Attorneys' Fees. In the event that any action at law or in equity is
brought to enforce or interpret the provisions of this Agreement, the prevailing
party shall be entitled to a reasonable attorneys' fee which may be set by the
Court in the same action or in a separate action brought for that purpose, in
addition to any other relief to which the prevailing party may be entitled.

      12.9 Heading. Headings used in this Agreement are for the purposes of
convenience only and shall not affect the legal interpretation of this
Agreement.

      12.10 Draftsmanship. This Agreement shall be deemed jointly drafted and no
ambiguities, duties or obligations shall be resolved against the defter party.

      12.11 Counterparts and Electronic Signatures. This Agreement may be
executed in one or more counterparts, each of which shall be deemed an original
but all of which together will constitute one and the same instrument. This
Agreement may be executed by facsimile or other "electronic signature" (as
defined in the Electronic Signatures in Global and National Commerce Act of
2000) in a manner agreed upon by the parties.

      IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date set forth above.

DIRECTED ELECTRONICS, INC.                  NUTEK, INC.

By: /s/ James E. Minarik                    By: /s/ Charles Chen
    ------------------------                    -----------------
    James E. Minarik                            Charles Chen
    President and CEO                           President and CEO

                                       7

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[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                     Nutek
                                   Schedule 1

                                    Products
                                    ________

                                     [***]
<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                     Nutek
                                   Schedule 2

________________________________________________________________________________
       Part#                       Description                    Cost
       _____                       ___________                    ____
________________________________________________________________________________

                                     [***]
<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                     Nutek
                                   Schedule 3

________________________________________________________________________________
     Month Product                                      Date of Wire
  Shipped from Taiwan                                 Transfer to Nutek
  ___________________                                 _________________
________________________________________________________________________________

January                                                     [***]
February                                                    [***]
March                                                       [***]
April                                                       [***]
May                                                         [***]
June                                                        [***]
July                                                        [***]
August                                                      [***]
September                                                   [***]
October                                                     [***]
November                                                    [***]
December                                                    [***]
<PAGE>
                           DIRECTED ELECTRONICS INC.

                               Vendor Requirements

                            DIRECTED ELECTRONICS INC.
                                  ONE VIPER WAY
                                 VISTA, CA 92083
                                TEL: 800 876-0800
                                FAX: 760 598-6400
                            WEBSITE: WWW.DIRECTED.COM
<PAGE>
                                    CONTENTS

<TABLE>
<S>                                                                         <C>
VENDOR PACKAGING REQUIREMENTS..........................................        3

VENDOR MARKING REQUIREMENTS
         -  Master Carton Markings.....................................        3
         -  Date Code Markings.........................................        3
         -  Master Carton Label Samples................................      3-4
         -  Bar coding:  UPC-A Type ...................................      4-5
         -  UPC Bar Code Label Requirements............................        5
         -  Bar Code Label Samples.....................................        5

GENERAL SHIPPING REQUIREMENTS..........................................        5
         -  Preferred Carriers.........................................      6-7

GRAPHICS DEPARTMENT VENDOR REQUIREMENTS QUESTIONNAIRE..................        8

CONTACTS...............................................................        9
</TABLE>

INITIAL                                2                        NUTEK SCHEDULE 4
                                                             VENDOR REQUIREMENTS
X_______                                                            CONFIDENTIAL

X
<PAGE>

VENDOR PACKAGING REQUIREMENTS

      -     All products must be packaged to conform with good packaging
            procedures that will prevent damage during shipping.

      -     All products must be packed in recyclable corrugated cartons with a
            minimum burst strength of 125 PSI.

      -     Proper packing material must be used to ensure adequate protection
            of product.

      -     Maximum master carton is not to exceed 45 LBS.

      -     Mixing product into the same master carton is not acceptable; each
            product must be packaged in its own master carton.

      -     Palletized product must be shipped on 40"x48" pallets and must not
            exceed an overhang of 1" on all sides, and pallet must be
            shrink-wrapped.

DIRECTED'S inability to collect loss and damaged claims from the carriers due to
poor packaging will result in such losses being claimed against the vendor and
the charges deducted from the invoice.

VENDOR MARKING REQUIREMENTS

MASTER CARTON MARKINGS

Master carton markings can be affixed by label or printed directly on the master
carton. Handwritten markings are not acceptable. Minimum overall size of
markings is to be no less than 3" x 5" in size. Information should be no smaller
than 36-point size (1/2") and be printed in a BOLD font style. Carton marking
should be on two sides of the carton (adjacent sides preferred).

If labels are used, assure that they are a non-removable style of label to
prevent lifting and peeling off during transit.

Information required on the Master Carton:

      -     DIRECTED'S part number and revision letter (revision letter to
            appear in parenthesis) example 455T(B).

      -     Quantity of item in carton, including unit of measure (pcs., pks.,
            pairs)

      -     Date Code

      -     Country of Origin

      -     Purchase Order Number

      -     Carton Count, i.e., 1/5, 2/5, 3/5, etc.

INITIAL                                3                        NUTEK SCHEDULE 4
                                                             VENDOR REQUIREMENTS
X_______                                                            CONFIDENTIAL

X
<PAGE>
DATE CODE MARKINGS

      -     DIRECTED'S date code system consists of two digits (unless otherwise
            specified for DIRECTED'S customer specifics, i.e., GM). The first
            digit represents the year and the second represents the month.

      -     The date code must represent the month and year you have
            manufactured the product (unless otherwise pre-approved by
            DIRECTED'S Packaging/QA Representative).

      -     At a minimum the date code must appear on the master carton and the
            product. Audi products require date code on packaging/gift boxes.

Example of a typical DIRECTED date code (2G). 2002 is represented by the 2 and
July is represented by the G:

<TABLE>
<CAPTION>
YEAR IDENTIFICATION                   MONTH IDENTIFICATION
-------------------                   --------------------
<S>                     <C>           <C>      <C>         <C>
2001 = 1                January       = A      July        = G
2002 = 2                February      = B      August      = H
2003 = 3                March         = C      September   = I (Except for GMSPO product)
2004 = 4                April         = D      October     = J
2005 = 5                May           = E      November    = K
                        June          = F      December    = L
</TABLE>

MASTER CARTON LABEL SAMPLE

            DEI P/N:  XXXXX (X)
            QTY: 24 PCS  D/C:  1A
            C/NO: 5 OF 7  PO#:  XXXXX
            COUNTRY OF ORIGIN
      MASTER CARTON LABEL   SAMPLE STYLE B   7A 4/81 (FILE: B-MCSAMPLE)

INITIAL                                4                        NUTEK SCHEDULE 4
                                                             VENDOR REQUIREMENTS
X_______                                                            CONFIDENTIAL

X
<PAGE>
BAR CODING: UPC-A TYPE (unless otherwise specified on bill of material)

      -     UPC bar code must appear on all gift boxes and/or packaging
            materials and must be scanable. Human-readable number and check
            digit must be printed under the bar code.

      -     UPC bar code is normally distributed with DIRECTED'S artwork/film.
            If there is no artwork/film, then a white label made with
            non-removable adhesive will be required on the packaging (unless
            otherwise pre-approved by packaging/QA representative).

      -     The UPC bar code is issued by packing/QA and will also appear on the
            printed bill of materials (BOM).

UPC BAR CODE LABEL REQUIREMENTS

      -     Label size preferred is 1" x 3" (unless otherwise pre-approved by
            packaging/QA representative).

      -     Must include "COUNTRY OF ORIGIN"

      -     DIRECTED'S full part number including revision letter in
            parenthesis.

      -     DIRECTED'S description of part number and date code (if date is on
            the product, then it is not required on the label).

      -     Human-Readable number and check digit to be printed under the bar
            code symbol.

UPC BAR CODE LABEL SAMPLE

(Label style A&B, for your reference)

                         Directed              Made in
                       Electronics Inc.   Country of Origin
                                   DEI PART #
                            DESCRIPTION AND DATE CODE
                                   (BAR CODE)

INITIAL                                5                        NUTEK SCHEDULE 4
                                                             VENDOR REQUIREMENTS
X_______                                                            CONFIDENTIAL

X
<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

GENERAL SHIPPING REQUIREMENTS

      -     DIRECTED is a certified QS-9000 company and it is a requirement of
            ours that vendors meet a 100% on time delivery performance

      -     Vendor is required to notify DIRECTED no less than three days in
            advance of shipments with a faxed or email shipping advise.

      -     Vendor is required to use DIRECTED specified freight carrier (unless
            otherwise instructed by DIRECTED)

      -     For shipments coming into DIRECTED from overseas, it is required
            that original documents are sent to DIRECTED no less than one week
            after departure

      -     All cartons must arrive with proper markings as described in the
            marking requirements section along with carton count, i.e., 1/5,
            2/5, 3/5, etc.

      -     Each shipment must be accompanied with a detailed packing slip.

PREFERRED CARRIERS

CONTAINER FREIGHT

<TABLE>
<CAPTION>
Area of Service     Carrier                            Contact Information
---------------     -------                            -------------------
<S>                 <C>                                <C>
Taiwan              [***]                              [***]

Hong Kong           [***]                              [***]

Korea               [***]                              [***]

Philippines         Will Advise
</TABLE>

INITIAL                                6                        NUTEK SCHEDULE 4
                                                             VENDOR REQUIREMENTS
X_______                                                            CONFIDENTIAL

X
<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

LCL FREIGHT

<TABLE>
<CAPTION>
Area of Service     Carrier                            Contact Information
---------------     -------                            -------------------
<S>                 <C>                                <C>
Taiwan              [***]                              [***]

Hong Kong           [***]                              [***]

Korea               [***]                              [***]

Philippines         Will Advise
</TABLE>

AIR FREIGHT

<TABLE>
<CAPTION>
Area of Service     Carrier                            Contact Information
---------------     -------                            -------------------
<S>                 <C>                                <C>
Taiwan              [***]                              [***]

Hong Kong           [***]                              [***]

Korea               [***]                              [***]

Philippines         Will Advise
</TABLE>

INITIAL                                7                        NUTEK SCHEDULE 4
                                                             VENDOR REQUIREMENTS
X_______                                                            CONFIDENTIAL

X
<PAGE>
GRAPHICS DEPARTMENT VENDOR REQUIREMENTS QUESTIONNAIRE

      1.    What are your film specifications?

            Film Positive                 (mark one)
            Film Negative
            Read right emulsion side up   (mark one)
            Read right emulsion side down

      2.    Can the vendor double burn plates?
                                               ---------------------------------

      3.    Can the vendor do white text knock outs?
                                                    ----------------------------

      4.    Vendor maximum line screen.
                                        ----------------------------------------

      5.    What type of proofs do you provide for our approval of printed
            materials?
                       ---------------------------------------------------------

      6.    Can vendor make film directly from files provided by DIRECTED?

            --------------------------------------------------------------------

      7.    Does the vendor's PC have the capability to open graphics files?

            --------------------------------------------------------------------

      8.    What kind of computerized system does the vendor have?

            --------------------------------------------------------------------

      9.    What graphics software is the vendor able to use? (Please list all
            with versions)

            --------------------------------------------------------------------

      10.   Please list which version of QuarkXpress and Photoshop vendor is
            using.

            --------------------------------------------------------------------

      11.   Does vendor have type 1 postscript fonts?
                                                     ---------------------------

      12.   Can vendors computerized systems accept 80mb files?
                                                               -----------------

      13.   Can vendor computer systems receive files via FTP, and what are the
            file size limits?

            --------------------------------------------------------------------

      14.   Can vendor computers receive files as email attachments and what are
            the file size limits?

            --------------------------------------------------------------------

INITIAL                                8                        NUTEK SCHEDULE 4
                                                             VENDOR REQUIREMENTS
X_______                                                            CONFIDENTIAL

X
<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

CONTACTS:

[***]

[***]

[***]

[***]

[***]

[***]

PRODUCT DEVELOPMENT

[***]

[***]

[***]

INITIAL                                9                        NUTEK SCHEDULE 4
                                                             VENDOR REQUIREMENTS
X_______                                                            CONFIDENTIAL

X

<PAGE>

                                     NUTEK
                                   SCHEDULE 5

                                 Not Applicable<PAGE>
                                                                   EXHIBIT 10.15

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY "[***]" ARE SUBJECT TO A
CONFIDENTIAL TREATMENT REQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT.
COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT HAVE BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION AS PART OF THIS COMPANY'S CONFIDENTIAL TREATMENT
REQUEST.

      MANUFACTURING AND DISTRIBUTION AGREEMENT, dated as of April 1, 2005,
between SIRIUS SATELLITE RADIO INC., a Delaware corporation ("SIRIUS"), and
DIRECTED ELECTRONICS, INC., a California corporation ("DIRECTED").

      WHEREAS, Sirius operates a satellite digital entertainment service (the
"SIRIUS SERVICE");

      WHEREAS, Sirius has developed technology and designs for Sirius Receivers
(as defined below) and related products for use in receiving the Sirius Service;

      WHEREAS, Sirius desires to expand its current distribution for the sale of
Sirius Receivers and related products;

      WHEREAS, Directed is engaged in the business of designing, developing,
marketing, distributing and selling consumer electronics products and has
established relationships with many independent, regional and national retailers
and new car dealers;

      WHEREAS, Directed desires to perform warehousing, distribution, logistics
and related services with respect to certain Sirius Receivers, accessories, and
related products, and desires a limited license to design, develop and
manufacture accessory products for use with Sirius Receivers and the Sirius
Service.

      NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Directed and Sirius agree as
follows:

                                    ARTICLE I
                                   DEFINITIONS

      SECTION 1.01. DEFINED TERMS. Capitalized terms used herein and not
otherwise defined herein shall have the meaning assigned to such below

            "Accessory Products" means the accessory products listed in Exhibit
B hereto and other accessory products that connect with or otherwise enhance
Sirius Receivers and are approved by Sirius for sale by Directed (including
Directed/Sirius Accessory Products).

            "Activation Fee" has the meaning assigned to such term in Section
4.02(a).

            "Agreement" means this Manufacturing and Distribution Agreement,
together with any exhibits and schedules attached hereto, as amended,
supplemented or otherwise modified from time to time in accordance with the
terms hereof.

            "Approved Dealer" has the meaning assigned to such term in Section
3.02(a).

            "Authorized Manufacturers" has the meaning assigned to such term in
Section 3.03(a).

<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

            [***] has the meaning assigned to such term in Section 3.07(a).

            "Business Day" means a day other than Saturday, Sunday or other day
on which commercial banks in New York City are authorized or required to close.

            "Competitor" means any person or entity (other than Sirius) in the
business of providing a satellite digital audio radio service within the United
States, including without limitation, XM Satellite Radio Holdings Inc., XM
Satellite Radio Inc. and their subsidiaries and affiliates.

            "Dealer Payment" has the meaning assigned to such term in Section
4.02(a).

            "Defaulting Party" has the meaning assigned to such term in Section
9.02.

            "Directed" has the meaning assigned to such term in the preamble to
this Agreement.

            "Directed Marks" has the meaning assigned to such term in Section
7.01(c).

            "Directed/Sirius Accessory Products" has the meaning assigned to
such term in Section 2.01(a).

            "Disclosing Party" has the meaning assigned to such term in Section
11.01(a).

            "Discontinued Product" has the meaning assigned to such term in
Section 3.01(b).

            "Discontinuance Date" has the meaning assigned to such term in
Section 3.01(b).

            "Existing Intellectual Property" has the meaning assigned to such
term in Section 7.02.

            "Group A Dealers" means the entities set forth on Exhibit A hereto.

            "Head Unit" means a device, which is integrated into the dashboard
of a vehicle, which provides the user interface for the reception of radio
signals and, in some cases, the playback of recorded media, such as cassette
tapes, compact discs, minidiscs and DVDs.

            "Information" has the meaning assigned to such term in Section
11.01(a). "Licensed IP" means all intellectual property owned by Sirius which
relates to the connection of an accessory product to a Sirius Receiver or (b)
the use of an accessory product to enhance the performance of Sirius Receivers
or the reception of the Sirius Service.

            "Licensed IP" means all intellectual property owned by Sirius which
relates to (a) the connection of an accessory product to a Sirius Receiver or
(b) the use of an accessory product to enhance the performance of Sirius
Receivers or the reception of the Sirius Service.

                                      -2-

<PAGE>
            "Net Sales" means, with respect to a Directed/Sirius Accessory
Product during any month, (a) the customer invoice price of such product times
(b) the difference between the quantity of such product shipped to customers
during the applicable month minus the quantity of such product returned to
Directed during the applicable month.

            "New Intellectual Property" has the meaning assigned to such term in
Section 7.03.

            "Parties" or "Party" means Sirius and/or Directed, as the context
may require.

            "Products" shall mean the products listed on Exhibit B hereto or
such other products approved by Sirius in writing for distribution by Directed.

            "Receiving Party" has the meaning assigned to such term in Section
11.01(a).

            "Sirius" has the meaning assigned to such term in the preamble to
this Agreement.

            "Sirius Marks" has the meaning assigned to such term in Section
7.01(a).

            "Sirius Receiver" means a device that receives and processes the
Sirius signal, either as a result of circuitry included in the unit itself or in
another device, and which is capable of providing the user interface for the
Sirius Service.

            "Sirius Service" has the meaning assigned to such term in the first
recital to this Agreement.

            "Special Marketing Program" has the meaning set forth in Section
4.08(b).

            "Subscriber" means a paying subscriber to the Sirius Service.

            "Support Materials" has the meaning assigned to such term in Section
305(a).

            "Term" has the meaning assigned to such term in Section 8.01.

            "Type Acceptance Requirements" means Sirius' performance,
environmental and other requirements for Accessory Products as published by
Sirius from time to time.

      SECTION 1.02. Other Definitional Matters. Definitions in this Agreement
apply equally to the singular and plural forms of the defined terms. The words
"Include" and Including" shall be deemed to be followed by the phrase "without
limitation" when such phrase does not otherwise appear. The terms "herein,"
"hereof" and "hereunder" and other words of similar import refer to this
Agreement as a whole and not to any particular section, paragraph or
subdivision. All article, section, paragraph, clause, exhibit or schedule
references not attributed to a particular document shall be references to such
parts of this Agreement.

                                      -3-

<PAGE>

                                    ARTICLE II
                                     LICENSE

      SECTION 2.01. License Grant. (a) Subject to the terms and conditions of
this Agreement, Sirius hereby grants to Directed a non-exclusive,
non-transferable license to use the Licensed IP solely for the purposes of
designing, developing, manufacturing, marketing and selling accessory products
that connect with or otherwise enhance the Sirius Service (such accessory
products designed and developed by Directed, "DIRECTED/SIRIUS ACCESSORY
PRODUCTS").

      (b) Directed shall not, without the prior written consent of Sirius, use
the Licensed IP to design, develop, manufacture, market and sell any product
capable of receiving a satellite radio service offered by a Competitor or
capable of working with receivers for a satellite radio service offered by a
Competitor.

      (c) Directed shall not copy, modify, translate, de-compile, disassemble or
otherwise reverse engineer or determine or attempt to determine source code,
object code, executable code or protocols from the Licensed IP without the
express written consent of Sirius. Directed shall not create any derivative
works based on the Licensed IP and shall not permit or authorize any third party
to create any such derivative works without the express written consent of
Sirius. Any such derivative works based on the Licensed IP shall be the sole and
exclusive property of Sirius; provided that Sirius shall grant Directed a
nonexclusive, royalty free license to any such derivative works developed with
the consent of Sirius.

      (d) The license granted under Section 2.01(a) shall not be sold, assigned,
sublicensed or otherwise transferred (by operation of law or otherwise) without
the prior written consent of Sirius, which may be withheld by Sirius in its sole
discretion. Any sale, assignment, sublicense or other transfer of such license
without the prior written consent of Sirius shall be null and void.

      SECTION 2.02. Product Development. Directed shall propose new ideas for
Directed/Sirius Accessory Products by delivering to Sirius a written proposal,
including a detailed product description and business model and such other
information as Sirius may reasonably request. Directed shall not design and
develop any such new Directed/Sirius Accessory Product unless such product
concept has been approved in writing by Sirius.

      SECTION 2.03. Type Acceptance. Directed shall not manufacture, market or
sell any Directed/Sirius Accessory Product unless such product has, in Sirius'
reasonable opinion, satisfied the applicable Type Acceptance Requirements or has
otherwise been approved for sale in writing by Sirius. Directed shall provide
Sirius with design verification samples of each Directed/Sirius Accessory
Product, in a quantity reasonably requested by Sirius and at no cost to Sirius,
for Sirius' use in determining whether such product satisfies the applicable
Type Acceptance Requirements. Directed shall also provide Sirius with twelve
production samples of each Directed/Sirius Accessory Product, at no cost to
Sirius, for Sirius' use in: (a) determining whether such Accessory satisfies the
Type Acceptance

                                      -4-

<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

Requirements, (b) advertising and promotional materials and (c) such other uses
reasonably determined by Sirius.

                                   ARTICLE III
                         PRODUCTS; SERVICES; EXCLUSIVITY

      SECTION 3.01. Products. (a) Sirius hereby authorizes Directed to market
and sell the Products in accordance with the terms and conditions of this
Agreement.

      (b) Notwithstanding anything herein to the contrary, Sirius may, from time
to time, notify Directed in writing that a thirty party-branded Product or a
Product capable of interfacing with a third party Head Unit shall be distributed
solely through such third party and not through Directed (the applicable
Product, the "DISCONTINUED PRODUCT"). Following receipt of such notification,
Directed shall no longer place new orders for Discontinued Products and shall
use commercially reasonable efforts to cancel any pending orders for
Discontinued Products. Directed shall, within ninety days of such notification
(such ninetieth day, the "DISCONTINUANCE DATE"), discontinue all sales,
marketing and related services with respect to the Discontinued Products. Sirius
shall purchase from Directed, or shall cause the applicable third party to
purchase from Directed, any such Discontinued Products remaining in Directed's
inventory as of the Discontinuance Date at the landed cost paid by Directed for
such Discontinued Products (including customs, duties and shipping costs).
Sirius shall be responsible for all costs associated with Discontinued Products
returned to Directed by any Approved Dealer after the Discontinuance Date,

      SECTION 3.02. Approved Dealers: Credit and Collection. (a) Except as set
forth in Section 3.02(b), Directed shall market and sell the Products only to
the dealers set forth on Exhibit A and Directed's active independent retail
accounts, in each case, located in the contiguous United States (the "APPROVED
DEALERS"). Sirius may, at any time upon written notice to Directed, modify
Exhibit A to include additional dealers. Sirius may, in its sole discretion,
assist Directed in marketing Products to regional and national retail dealers
that are Approved Dealers.

      (b) Directed shall be entitled to market and sell Accessory Products to
any dealer or other entity located in the contiguous United States, other than
telecommunications companies.

      (c) Directed shall have full authority to qualify and accept or reject any
account. Directed shall be responsible for all credit and collection services
related to its sale of the Products, including determination of credit lines and
credit terms, billing, resolution of discrepancies and collection of accounts
receivable.

      SECTION 3.03. Product Sourcing and Pricing. Directed shall purchase
Products (other than Directed/Sirius Accessory Products) from third party
manufacturers authorized by Sirius ("AUTHORIZED MANUFACTURERS"). [***]
Authorized Manufacturers to sell such Products to Directed at costs no higher
than the costs set forth on Exhibit B. Directed and Sirius shall work together
to establish mutually acceptable dealer costs and suggested retail prices for
such Products that are competitive with the costs and retail prices of similar
products marketed and sold by third parties, which costs and prices may

                                      -5-
<PAGE>

[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

change from time to time due to market conditions. Directed shall publish
documents for its dealers that contain such dealer costs and suggested retail
prices.

      SECTION 3.04. Product Branding; Packaging. (a) Sirius shall design the
packaging and manuals for all Products other than Accessory Products [***].

      (b) Sirius and Directed acknowledge that the Accessory Products shall be
branded by Directed; provided that such Accessory Products, whether designed by
Sirius or Directed, shall contain the Sirius logo or another Sirius Mark
designated by Sirius. Directed shall design the packaging and manuals for all
Accessory Products [***].

      (c) The packaging for the Products (other than Accessory Products) shall
include a statement that such products are "distributed by Directed"; provided
that Sirius shall determine, in its sole discretion, the size and placement of
such statements. The packaging for Accessory Products may, at Directed's option,
include a statement indicating that such products are "distributed by Directed".

      SECTION 3.05. Sales Support Services. (a) Directed shall provide full
sales and marketing services to all Approved Dealers and all purchasers of
Accessory Products, including distribution of point of sale materials, technical
product support, installation support and product training materials (such
materials, "SUPPORT MATERIALS"). Directed and Sirius shall work together in good
faith to develop appropriate Support Materials. Sirius may, in its sole
discretion, assist Directed in providing such Support Materials and services to
Approved Dealers.

      (b) All point of sale materials, other marketing materials and product
manuals for the Products shall be subject to the prior written approval of
Sirius, which approval shall not be unreasonably withheld. Sirius acknowledges
that Directed may identify in such materials that such Products are "distributed
by Directed".

      (c) Directed shall use commercially reasonable efforts to cause Approved
Dealers to prominently display, in a high traffic area at each of its locations,
point of sale materials approved by Sirius. Directed shall not, and shall use
commercially reasonable efforts to cause Approved Dealers not to, (i) promote
Subscriptions on terms other than the terms designated by Sirius, (ii) represent
that any Subscription may be obtained on terms or rates other than those
designated by Sirius or (iii) impose any additional terms or conditions in
connection with any Subscription.

      SECTION 3.06. No Bundling. Directed shall not, and shall use commercially
reasonable effort to cause its customers not to, advertise, market or sell any
Products as part of a bundle with any other products or services without the
express written consent of Sirius, which may be withheld in Sirius' sole
discretion.

      SECTION 3.07. Forecasting: Order Placement. (a) For the period from
Directed's initial order for any new Product (other than any Accessory Product)
and continuing for six months following Directed's first shipment of such
Product [***], Sirius shall provide Directed with reasonable assistance in
forecasting

                                      -6-
<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

sales of the applicable Product. On a monthly basis thereafter, Directed shall
provide Sirius with a six-month rolling forecast and a three-month purchase plan
for the Product, broken out by distribution channel, including such information
as Sirius may reasonably request. Upgraded, revised or modified Products (i.e.,
Sportster 1A) shall not be considered new Products for purposes of this Section
3.07 and there shall be no [***] with respect to such upgraded, revised or
modified Products.

      (b) During the [***] with respect to any Product, Directed shall place
orders with Authorized Manufacturers for a quantity of such Product as [***] in
its sole discretion, is necessary to fulfill customer demand. In the event that
any such Products ordered by Directed are not shipped to a customer within
ninety days of receipt by Directed, Sirius shall [***] immediately upon receipt
of a customer order for such Products. Directed shall fulfill all customer
orders on a first in - first out basis.

      (c) Following the conclusion of the [***] with respect to any Product,
Directed shall be solely responsible for determining the quantities of such
Product to be ordered from Authorized Manufacturers; provided that Directed and
Sirius shall mutually determine the most efficient allocation of such Products
to customers.

      (d) Notwithstanding anything herein to the contrary, throughout the Term,
Directed shall be solely responsible for determining the quantities of Accessory
Products to be ordered from Authorized Manufacturers.

      SECTION 3.08. Warehousing. Directed shall store all Products ordered by it
in one or more of its warehouses, and shall provide all related warehousing and
order fulfillment services.

      SECTION 3.09. Returns. (a) Except as set forth in Section 3.09(b),
Directed shall process Products returned to it under warranty for defects and
shall segregate all returned Products found to be defective from returned
Products found to be non-defective. To the extent applicable, Directed shall use
commercially reasonable efforts to restore the reception of Channel 184 of the
Sirius Service in such returned Products. Directed shall, at its sole cost and
expense, ship any such Products that are defective to a location designated by
Sirius. Directed shall return to the Authorized Manufacturer for re-packaging
any such Products that are non-defective and, to the extent required by
applicable law, shall identity such Products as refurbished. Sirius may design
and provide to Directed or the Authorized Manufacturer the packaging to be used
for non-defective returned Products. Directed may use Products identified as
refurbished for warranty exchange purposes or may resell such Products at a
reduced cost for special promotional and sales events approved in writing by
Sirius. Sirius shall provide reasonable assistance to Directed to promote the
sate of refurbished Products; provided that Sirius shall have no responsibility,

                                      -7-

<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

financial or otherwise, for the identification of Products as refurbished or the
distribution of refurbished Products.

      (b) Directed shall negotiate return arrangements with respect to Accessory
Products directly with the applicable Authorized Manufacturers.

      SECTION 3.10. Exclusivity. (a) During the Term, Sirius shall not
distribute any Products (including Directed/Sirius Accessory Products) through
any entities other than Directed, except as follows:

            (i)   Sirius may distribute Products branded by a third party
                  directly through such third party pursuant to Section 3.01(b)
                  of this Agreement;

            (ii)  Sirius may distribute Products (other than Directed/Sirius
                  Accessory Products) directly to consumers; and

            (iii) Sirius may distribute Products (other than Directed/Sirius
                  Accessory Products) to persons or entities that are not
                  Approved Dealers.

      (b) Directed shall not provide any sales, distribution or related services
with respect to [***]

                                   ARTICLE IV
                           FINANCIAL MATTERS; REPORTS

      SECTION 4.01. Reports. (a) Within two Business Days of the end of each
calendar month, Directed shall provide a report to Sirius, in an electronic
format designated by Sirius, identifying (i) the quantity of Directed/Sirius
Accessory Products produced during the previous month, broken out by product,
(ii) the quantity and, if applicable, electronic serial numbers of all Products
shipped by Directed to customers during the preceding month, broken out by
product model and customer, and (iii) the quantity and, if applicable,
electronic serial numbers of all Products returned to Directed during the
preceding calendar month, broken out by product model and customer.

      (b) Within two Business Days of the end of each calendar month, Directed
shall provide a report to Sirius that sets forth in reasonable detail all
forecasts and orders for Products received by it during the preceding month.

      SECTION 4.02. [***] or the initial activation by a Subscriber of any
Product that is a Sirius Receiver and was sold by Directed to an Approved
Dealer; provided that [***] Sirius Receivers sold by Directed to any of the
dealers set forth on Exhibit A hereto (as amended from time to time in
accordance with Section 3.02) or any other dealer [***]. Directed shall use each
[***]

                                      -8-

<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

      [***] Directed may terminate this Agreement by providing written notice to
Sirius within thirty days of receiving notice of such change.

        (b) All [***] shall be based on a full uninterrupted purchase of the
Sirius Service by a Subscriber for a period of 270 days from the date of
activation. If any subscription to the Sirius Service is terminated, cancelled
or disconnected (whether by the Subscriber of Sirius) prior to the end of such
period, or the Subscriber fails to pay Sirius to full price of a subscription
during such period, Sirius shall charge back to Directed a portion of [***]
corresponding to the unused or unpaid portion of such period as follows:

Cancellation, Disconnection or                     Chargeback percentage:
Nonpayment Occurs:

[***]                                              [***]

      (c) Subject to Directed providing the reports described in Section 4.01 in
a timely manner [***]. Sirius shall provide a report setting forth (i) the
electronic serial number of each Product that is a Sirius Receiver and for which
Sirius is [***]; (iii) the name of the Approved Dealer that sold such Sirius
Receiver, (iv) the Sirius corporate identification number for such Approved
Dealer, and (v) and the amount [***].

      SECTION 4.03. Royalties. (a) On a monthly basis, Directed shall pay Sirius
royalties [***] Directed/Sirius Accessory Products during the applicable month.
Directed shall pay such royalties within [***] of the end of each calendar
month.

      (b) Together with each royalty payment, Directed shall deliver to Sirius a
statement, signed and certified by an officer of Directed, setting forth a
reasonably detailed calculation of the Net Sales of Directed/Sirius Accessory
Products during the applicable month (including the quantity of Directed/Sirius
Accessory Products sold and returned during such month, by SKU) and the related
royalties.

      SECTION 4.04. Audit Rights. (a) Directed shall create books and records
relating to its orders and sales of Products and shall maintain such books and
records for a minimum of three years after their creation. Directed shall keep
such books and records at its principal place of business. Sirius may, at any
time after providing at least ten business days prior written notice and during
regular business hours, inspect such books and records for compliance hereunder.
If any such audit reveals material discrepancies [***] for any annual period,
Directed shall reimburse Sirius for the reasonable out-of-pocket costs incurred
by Sirius in connection with such audit.

                                      -9-
<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

      (b) Sirius shall create books and records relating to its payment of
Activation Fees and shall keep such books and records for a minimum of three
years after their creation. Sirius shall keep such books and records at its
principal place of business. Directed may, at any time after providing at least
ten business days prior written notice and during regular business hours,
inspect such books and records for compliance hereunder. If any such audit
reveals material discrepancies [***] for any annual period, Sirius shall
reimburse Directed for the reasonable out-of-pocket costs incurred by Directed
in connection with such audit.

      (c) This Section 4.04 shall survive the expiration or earlier termination
of this Agreement.

      SECTION 4.05. Extraordinary Expenses. (a) Sirius shall fully reimburse
Directed for all reasonable out-of-pocket costs incurred by Directed in
connection with excessive Product failure, including but not limited to costs
related to Product rework, Product recalls and Product shipping, to the extent
such costs were approved in writing by Sirius prior to being incurred by
Directed. [***]

      (b) From time to time Sirius may offer an Approved Dealer a special
in-store pallet program or other special marketing program (such programs
"SPECIAL MARKETING PROGRAMS"). Sirius shall promptly notify Directed of any
Special Marketing Program. Sirius shall fully reimburse Directed for all
reasonable out-of-pocket costs incurred by Directed in connection with a Special
Marketing Program, to the extent such costs were approved in writing by Sirius
prior to being incurred by Directed. Directed shall invoice Sirius for such
costs, together with reasonable supporting documentation, and Sirius shall pay
such invoices within thirty days. Sirius shall use commercially reasonable
efforts to expedite.

                                    ARTICLE V
                           TRAINING; TECHNICAL SUPPORT

      SECTION 5.01. Training. (a) Sirius shall provide, at no cost to Directed,
one training session to Directed's technical service personnel, at a time and
location to be mutually agreed by Sirius and Directed. Such training session
shall cover such topics as Sirius reasonably deems necessary to enable
Directed's technical service personnel to provide technical support and service
with respect to the Products.

      (b) Sirius shall provide, at no cost to Directed, one installation
training session to Directed's technical specialists, at a time and location to
be mutually agreed by Sirius and Directed. Such training session shall cover
such topics as Sirius reasonably deems necessary to enable Directed's technical
specialists to provide installation training to Directed's customers. Directed
shall incorporate Product installation training into training programs that it
provides to its customers.

                                      -10-

<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

      (c) Upon Directed's reasonable request from time to time, Sirius shall
from time to time attend Directed's sales meetings and provide sales training
for the Products, at no cost to Directed.

      (d) In connection with the foregoing training programs, Sirius shall
provide Directed, at no cost, with available printed Product information and
training materials; provided that Sirius shall not be required to produce any
new printed Product information or training materials.

      SECTION 5.02. Technical Support. Directed shall handle all technical
service requests related to the Products from its customers. Directed shall
provide its customers with customer service telephone numbers for purposes of
making such requests.

                                   ARTICLE VI
                                   PROMOTIONS

      SECTION 6.01. Trade Show Events. Sirius and Directed shall attend mutually
acceptable trade show events to promote the Products. Sirius shall display
Directed/Sirius Accessory Products at such events in a manner similar to the
manner in which it displays its other partners' brands. Directed shall display
Sirius-branded Products at such events in a manner similar to the manner in
which it displays its other partners' brands.

      SECTION 6.02. Demonstration Subscriptions. Sirius shall provide Directed,
at no cost, [***] to the Sirius Service to be used solely to demonstrate the
Products to customers and potential customers. Such subscriptions shall be
cancelled by Sirius upon the expiration or earlier termination of this
Agreement.

      SECTION 6.03. Friends and Family Programs. Sirius and Directed shell each
offer a reasonable "friends and family" program for the purchase of its products
and services, at a discounted rate, by employees of the other.

                                   ARTICLE VII
                              INTELLECTUAL PROPERTY

      SECTION 7.01. Use of Trademarks. (a) Sirius shall provide Directed with
guidelines for the use of Sirius' service marks, trademarks, logo, and other
commercial symbols (the "SIRIUS MARKS"). Directed shall use shall use the Sirius
Marks only in accordance with such specifications and only in connection with
the performance of its obligations under this Agreement. Notwithstanding the
foregoing, Directed shall obtain Sirius' written approval prior to any use of
the Sirius Marks. Directed acknowledges Sirius' ownership of and exclusive right
in the Sirius Marks. Directed acknowledges the validity of any trademark
registration relating to the Sirius Marks, and agrees that it will not claim any
right, title, or interest in or to the Sirius Marks. Upon termination or
expiration of this Agreement; Directed shall promptly discontinue the use of the
Sirius Marks.

      (b) Directed acknowledges and agrees that it has no rights to use the
trademarks, service marks, logos or other commercial symbols of any content,
programming, distribution

                                      -11-

<PAGE>
(other than Directed itself), retail or other partner of Sirius, except as
expressly authorized in writing by Sirius.

      (c) Directed shall provide Sirius with guidelines for the use of
Directed's service marks, trademarks, logos, and other commercial symbols (the
"DIRECTED MARKS"). Sirius shall use the Directed Marks only in accordance with
such specifications. Notwithstanding the foregoing, Sirius shall obtain
Directed's written approval prior to any use of the Directed Marks. Sirius
acknowledges Directed's ownership of and exclusive right in the Directed Marks.
Sirius acknowledges the validity of any trademark registration relating to the
Directed Marks, and agrees that it will not claim any right, title, or interest
in or to such Directed Marks. Upon termination or expiration of this Agreement,
Sirius shall promptly discontinue the use of the Directed Marks.

      SECTION 7.02. Existing Intellectual Property. All intellectual property
developed or created prior to the date of this Agreement (the "EXISTING
INTELLECTUAL PROPERTY") is and shall remain the property of the Party which
made, developed or created or presently owns such Existing Intellectual Property
and, unless otherwise expressed in this Agreement, no license is implied or
granted herein to any Existing Intellectual Property by virtue of this
Agreement.

      SECTION 7.03. New Intellectual Property. Any new intellectual property
that is developed or created by Directed for use in, or in connection with,
Sirius Receivers or the Sirius Service (the "NEW INTELLECTUAL PROPERTY") shall
be the joint property of Sirius and Directed. Each Party shall be free to use
and exploit such New Intellectual Property without restriction and without
accounting in any way to the other Party; provided that Directed shall not
license or provide such New Intellectual Property to, or otherwise utilize any
such Intellectual Property for the benefit of, a Competitor. This Section 7.03
shall in no way be construed as an obligation on Directed or Sirius to develop
New Intellectual Property.

      SECTION 7.04. Survival. This Article VI shall survive the expiration or
earlier termination of this Agreement.

                                  ARTICLE VIII
                                      TERM

      SECTION 8.01. Term. The term of this Agreement (the "TERM") shall commence
on the date hereof and shall extend until the third anniversary of the date
hereof. On or before the second anniversary of the date hereof, Sirius and
Directed shall commence good faith discussions regarding extension of the Term
beyond such third anniversary and any related amendments to the terms and
conditions contained herein. Sirius and Directed shall use commercially
reasonable efforts to execute written documentation of any mutually agreeable
extension at least six months prior to the expiration of the Term.

                                      -12-
<PAGE>
                                   ARTICLE IX
                                   TERMINATION

      SECTION 9.01. Special Termination Events. (a) Either Party may terminate
this Agreement immediately, without notice to the other party, upon the
occurrence of any of the following events: (i) the other Party becomes the
subject of a bankruptcy petition filed in a court in any jurisdiction, whether
voluntary or involuntary (which petition, if involuntary, is not dismissed
within ninety days of such filing), (ii) a receiver or a trustee is appointed
for all or a substantial portion of the other Party's assets or (iii) the other
Party makes an assignment for the benefit of its creditors.

      (b) Directed may terminate this Agreement upon thirty days written notice
to Sirius pursuant to Section 4.02(a).

      SECTION 9.02. Termination for Breach. Either party may terminate this
Agreement in the event that the other Party (the "DEFAULTING PARTY") breaches or
fails to perform any material covenant or obligation contained in this
Agreement, or any representation or warranty made by the Defaulting Party under
this Agreement ceases to be true and correct in all material respects and such
breach, failure or cessation continues uncured for a period of fifteen days
after the Defaulting Party receives notice thereof from the non-Defaulting Party
or, if the same cannot be cured within such fifteen day period, the Defaulting
Party fails within such period to commence action reasonably likely to cure such
breach, failure or cessation or thereafter fails to diligently pursue such
action or in any event does not in fact cure such breach, failure or cessation
within thirty days of receiving notice thereof.

      SECTION 9.03. Effect of Termination. (a) Upon termination of this
Agreement, (i) Sirius and Directed shall each be entitled to retain any
documents or materials reflecting New Intellectual Property; (ii) Sirius shall
be responsible for all Product warranties, warranty processing and cost,
associated with returned Product as of the date of termination; and (iii) Sirius
shall accept the transfer of all purchase orders placed by Directed to
Authorized Manufacturers for Products that could not be cancelled.

      (b) Sirius and Directed shall work together in good faith to facilitate an
efficient transition after the termination date in an effort to minimize any
adverse impact on Approved Dealers and Authorized Manufacturers.

                                    ARTICLE X
                         REPRESENTATIONS AND WARRANTIES

      SECTION 10.01. Representations and Warranties of Sirius. Sirius represents
and warrants to Directed that:

      (a) Sirius is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware. Sirius has the power and
authority and all governmental licenses, authorizations, consents and approvals
to perform its obligations under this Agreement. Sirius is duly qualified as a
foreign corporation and in good standing under the laws of each jurisdiction
where its ownership, lease or operation of property or the conduct of its
business requires such qualification.

                                      -13-
<PAGE>
      (b) The execution, delivery and performance by Sirius of this Agreement
has been duly authorized by all necessary corporate action, and does not and
will not contravene the terms of Sirius's Amended and Restated Certificate of
Incorporation or Amended and Restated By-Laws, conflict with, or result in any
breach or contravention of, any contractual obligation to which Sirius is a
party or any order, injunction, writ or decree of any governmental authority to
which Sirius or its property is subject or violate any requirement of law.

      (c) This Agreement constitutes the legal, valid and binding obligation of
Sirius, enforceable against Sirius in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, or similar
laws affecting the enforcement of creditors' rights generally or by equitable
principles relating to enforceability.

      SECTION 10.02. Representations and Warranties of Directed. Directed
represents and warrants to Sirius that:

      (a) Directed is a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization. Directed has the
power and authority and all governmental licenses, authorizations, consents and
approvals to own its assets, carry on its business and to execute, deliver and
perform its obligations under this Agreement. Directed is duly qualified as a
foreign corporation and in good standing under the laws of each jurisdiction
where its ownership, lease or operation of property or the conduct of its
business requires such qualification.

      (b) The execution, delivery and performance by Directed of this Agreement
has been duly authorized by all necessary corporate action, and does not and
will not contravene the terms Directed's Articles of Incorporation or By-Laws,
conflict with, or result in any breach or contravention of, any contractual
obligation to which Directed is a party or any order, injunction, writ or decree
of any governmental authority to which Directed or its property is subject or
violate any requirement of law.

      (c) This Agreement constitutes the legal, valid and binding obligation of
Directed, enforceable against Directed in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, or similar
laws affecting the enforcement of creditors' rights generally or by equitable
principles relating to enforceability.

      (d) Directed shall comply with all customs, technology transfer and other
applicable import and export laws, regulations and controls.

                                   ARTICLE XI
                    CONFIDENTIALITY; DELIVERY OF INFORMATION

      SECTION 11.01. General. (a) All information furnished or disclosed by
either Sirius or Directed (a "DISCLOSING PARTY") to the other (a "RECEIVING
Party") which is (i) marked with

                                      -14-

<PAGE>
a restrictive notice or otherwise designated in writing as proprietary, (ii)
stated to be proprietary at the time of disclosure or (iii) would logically be
considered confidential by virtue of its relation to the work contemplated by
this Agreement (collectively, "INFORMATION") shall be deemed the property of the
Disclosing Party and shall be returned (along with all copies and other
reproductions thereof) to the Disclosing Party promptly upon request. All
information provided to Directed by Sirius which relates to the Sirius Service,
Sirius Receivers, Products or Sirius' business plans, results, forecasts or
strategies shall be considered information, whether or not marked as provided
above. Unless such information: (i) was previously known to the Receiving Party
free of any obligation to keep it confidential, (ii) has been or is subsequently
made public by the Disclosing Party or a third party under no obligation of
confidentiality, or (iii) is independently developed by the Receiving Party,
then the Receiving Party shall, for a period ending three years after the end of
the Term, use the same degree of care, but no less than a reasonable standard of
care, as it uses with regard to its own proprietary information to prevent
disclosure, use or publication thereof. Except as set forth in paragraph (b)
below, information furnished hereunder may be used by a Receiving Party solely
for performance of its obligations under this Agreement and may be used for
other purposes only upon such terms and conditions as may be agreed upon by the
Disclosing Party in writing.

      (b) Neither Sirius nor Directed shall disclose any of the terms and
conditions of this Agreement without the prior written consent of the other
Party unless such disclosure is required by law. Notwithstanding the foregoing,
each Party agrees that the other may disclose this Agreement in its reports,
registration statements and other documents required to be filed with the SEC
and may file this Agreement as an exhibit to such reports and as otherwise may
be required by the rules and regulations of the SEC, any other applicable
regulatory agencies or any national securities exchange.

      (c) The Parties agree that their obligations under this Section 11.01
shall survive any termination of this Agreement.

                                   ARTICLE XII
               INDEMNIFICATION; LIMITATION ON LIABILITY; INSURANCE

      SECTION 12.01. Indemnity. (a) Subject to the limitations set forth in
Section 12.02, Directed shall defend, indemnify and hold harmless Sirius, its
affiliates and their respective employees, officers and directors from and
against any and all third party claims and resulting damages, costs, and other
liabilities and expenses (including reasonable attorneys' fees and expenses)
arising out of: (i) Directed's breath of any of its obligations under this
Agreement; (ii) Directed's negligence or other wrongful conduct related to this
Agreement; or (iii) the development, manufacturing, distribution, marketing or
sale of Directed/Sirius Accessory Products.

      (b) Subject to the limitations set forth in Section 12.02, Sirius shall
defend, indemnify and hold harmless Directed, its affiliates and their
respective employees, officers and directors from and against any and all third
party claims and resulting damages, costs, and other liabilities and expenses
(including reasonable attorneys' fees and expenses) arising out of: (i) Sirius'
breach of any of its obligations under this Agreement; or (ii) Sirius'
negligence or other wrongful conduct related to this Agreement.

                                      -15-

<PAGE>
      (c) Sirius shall defend, indemnify and hold harmless Directed, Directed,
its affiliates and their respective employees, officers and directors from and
against any and all damages, costs and other liabilities and expenses (including
reasonable attorneys' fees and expenses) arising out of or in connection with a
third party claim that any Product based on a Sirius reference design (other
than any Directed/Sirius Accessory Product) infringes any third party legal
right or misappropriates any trade secret. Notwithstanding the terms of this
Section 12.01(c), Sirius shall have no indemnification obligation with respect
to any claim of any kind to the extent it results from: (i) modification of the
applicable Product by a person or entity other than Sirius or its Authorized
Manufacturers; or (ii) Directed's failure to use updated or modified Products
provided by Sirius or its Authorized Manufacturers.

      (d) A Party wishing to be indemnified under this Section 12.01 must: (i)
promptly notify the indemnifying Party in writing of the claim; (ii) grant the
indemnifying Party sole control of the defense and settlement of the claim; and
(iii) provide the indemnifying Party with all assistance, information and
authority reasonably required for the defense and settlement of the claim, at
the indemnifying Party's expense.

      SECTION 12.02. Limitation of Liability. NEITHER PARTY SHALL BE LIABLE FOR
ANY INDIRECT, SPECIAL, PUNITIVE, EXEMPLARY, INCIDENTAL OR CONSEQUENTIAL DAMAGES
OF THE OTHER PARTY OR ANY THIRD PARTY, WHETHER FORESEEABLE OR NOT AND WHETHER
BASED ON NEGLIGENCE OR OTHERWISE.

      SECTION 12.03. Insurance. (a) Directed shall secure and maintain in full
force and effect at all times during the Term and for two years thereafter:

            (i)   comprehensive general liability insurance in the minimum
                  amount $5,000,000 per occurrence, with aggregate coverage of
                  at least $5,000,000; and

            (ii)  (i) umbrella insurance in the minimum amount $3,000,000 per
                  claim, with aggregate coverage of at least $5,000,000.

Directed shall name Sirius as an additional insured and loss payee on each
insurance policy. Directed shall ensure that each insurance policy contains an
endorsement deleting the condition thereof entitled "OTHER INSURANCE" as to any
insurance in force for or in the name of Sirius. Directed shall ensure that each
insurance policy includes a provision requiring the insurance company issuing
such insurance policy to give Sirius prompt notice of any revision or
modification to any insurance policy affecting Sirius' rights or any
cancellation of any such insurance policy.

      (b) Sirius shall secure and maintain in full force and effect at all times
during the Term and for two years thereafter:

            (i)   comprehensive general liability insurance in the minimum
                  amount $5,000,000 per occurrence, with aggregate coverage of
                  at least $5,000,000; and

            (ii)  umbrella insurance in the minimum amount $3,000,000 per claim,
                  with aggregate coverage of at least $5,000,000.

                                      -16-
<PAGE>

Sirius shall name Directed as an additional insured and loss payee on each
insurance policy. Sirius shall ensure that each insurance policy contains an
endorsement deleting the condition thereof entitled "Other Insurance" as to any
insurance in force for or in the name of Directed. Sirius shall ensure that each
insurance policy includes a provision requiring the insurance company issuing
such insurance policy to give Directed prompt notice of any revision or
modification to any insurance policy affecting Directed's rights or any
cancellation of any such insurance policy.

      SECTION 12.04. Survival. This Article XII shall survive the expiration or
earlier termination of this Agreement.

                                  ARTICLE XIII
                                  MISCELLANEOUS

      SECTION 13.01. Notices. All notices and other communications hereunder
shall be in writing, shall be delivered personally, via facsimile or by
reputable international courier and shall be deemed given when delivered
personally, five Business Days after being delivered to a reputable
international courier or when telecopied (with confirmation of the transmission
received by the sender) to the Parties at the following addresses (or at such
other address for a Party as shall be specified by like notice):

      If to Sirius, to:                     If to Directed, to:

          Sirius Satellite Radio Inc.           Directed Electronics, Inc.
          1221 Avenue of the Americas           One Viper Way
          36th Floor                            Vista, CA 92801
          New York, New York 10020              Facsimile No.: (760)598-1389
          Facsimile No.: (212) 584-5353         Attention: General Counsel
          Attention: General Counsel

Notices by e-mail or other means not expressly permitted by this Agreement shall
be of no force and effect under this Agreement.

      SECTION 13.02. Amendment. (a) Neither this Agreement nor any of the terms
hereof may be amended, supplemented, waived or modified except by an instrument
in writing signed by the Party against which the enforcement of such amendment,
supplement, waiver or modification shall be sought.

      (b) Prior to the introduction of any new product not covered by this
Agreement, Sirius and Directed shall negotiate in good faith to amend this
Agreement to cover sales by Directed of such products and establish the product
costs, activation fees and other terms that shall apply to such products.

      SECTION 13.03. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York, regardless of
principles of conflicts of laws that may require the application of the laws of
another jurisdiction.

                                      -17-

<PAGE>

      SECTION 13.04. Dispute Resolution. If a dispute arises out of or relates
to this Agreement, or its alleged breach, and if such dispute cannot be settled
through good faith negotiations within ten days, the Parties shall refer such
dispute to their respective chief executive officers or other senior officers
empowered to resolve such dispute. If such officers are unable to resolve such
dispute within ten days (or such longer period as the parties may agree), such
dispute shall be referred to binding arbitration in New York, New York. Any such
arbitration shall be conducted under the rules of the American Arbitration
Association on the most expedited basis permitted under such rules.

      SECTION 13.05. Entire Agreement. This Agreement constitutes the entire
agreement and supersedes all prior agreements and understandings, both written
and oral, between the Parties with respect to the subject matter hereof.

      SECTION 13.06. Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule of law
or public policy, all other terms, conditions and provisions of this Agreement
shall nevertheless remain in full force and effect.

      SECTION 13.07. Assignment. Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by either Party (whether by
operation of law or otherwise) without the prior written consent of the other
Party; provided that such consent shall not be unreasonably withheld or delayed
in the event of a sale or transfer of all or substantially all of the assets of
Directed, a sale or transfer of the controlling interest of all or substantially
all of the outstanding shares of Directed's common stock or the merger of
Directed with another entity that is not a Competitor.

      SECTION 13.08. Waiver. The failure of a Party to insist upon strict
adherence to any term of this Agreement on any occasion shall not be considered
a waiver nor shall it deprive such Party of the right thereafter to insist upon
strict adherence to such term or any other term of this Agreement. Any waiver,
permit, consent or approval of any kind or character must be in writing, signed
by a senior officer of the applicable Party and shall be effective only to the
extent specifically set forth therein.

      SECTION 13.09. Counterparts. This Agreement may be executed in
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more counterparts have been signed by each of
the Parties and delivered to the other Party. Delivery of an executed
counterpart by facsimile shall be as effective as delivery of a physical
signature page.

                                      -18-

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.

SIRIUS SATELLITE RADIO INC.                        DIRECTED ELECTRONICS, INC.

By: /s/ Robert F. Law                              By: /s/ Jim Minarik
    -------------------------------------------        -------------------
    Robert F. Law                                      Jim Minarik
    Senior Vice President and General Manager,         President and
    Consumer Electronics Division                      Chief Executive Officer

                                      -19-
<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                                                       EXHIBIT A

                                Approved Dealers
                                ________________

                                     [***]
<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                                                       EXHIBIT B

                          Directed Electronics Pricing
                                ________________

                                     [***]

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