Document:

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                                                                    Exhibit 10.7

                         EXECUTIVE EMPLOYMENT AGREEMENT

      This Executive Employment Agreement ("AGREEMENT") is made effective as of
July 23, 2002 ("EFFECTIVE DATE"), by and between JDA Software Group, Inc., a
Delaware corporation ("COMPANY") and Kristen L. Magnuson ("EXECUTIVE") (either
party individually, a "PARTY"; collectively, the "PARTIES").

      WHEREAS, Company desires to retain the services of Executive as Chief
Financial Officer;

      WHEREAS, the Parties desire to enter into this Agreement to set forth the
terms and conditions of Executive's employment by Company and to address certain
matters related to Executive's employment with Company;

      NOW, THEREFORE, in consideration of the foregoing and the mutual
provisions contained herein, and for other good and valuable consideration, the
Parties hereto agree as follows:

      1. Employment. Company hereby employs Executive, and Executive hereby
accepts such employment, upon the terms and conditions set forth herein.

      2. Duties.

            2.1 Position. Executive is employed as Chief Financial Officer and
shall have the duties and responsibilities assigned by Company's Chief Executive
Officer ("CEO") both upon initial hire and as may be reasonably assigned from
time to time. Executive shall perform faithfully and diligently all duties
assigned to Executive. Company reserves the right to modify Executive's position
and duties at any time in its sole and absolute discretion, provided that the
duties assigned are consistent with the position of Chief Financial Officer and
that Executive continues to report directly to the CEO.

            2.2 Standard of Conduct/Full-time. During the term of this
Agreement, Executive will act loyally and in good faith to discharge the duties
of Chief Financial Officer, and will abide by all policies and decisions made by
Company, as well as all applicable federal, state and local laws, regulations or
ordinances. Executive will act solely on behalf of Company at all times.
Executive shall devote Executive's full business time and efforts to the
performance of Executive's assigned duties for Company, unless Executive
notifies the CEO in advance of Executive's intent to engage in other paid work
and receives the CEO's express written consent to do so.

            2.3 Work Location. Executive's principal place of work shall be
located in Scottsdale, Arizona or such other location as the parties may agree
upon from time to time.

      3. Term.

            3.1 Initial Term. The employment relationship pursuant to this
Agreement shall be for an initial term commencing on the Effective Date set
forth above and continuing for three (3) years from the Effective Date ("INITIAL
TERM"), unless sooner terminated in accordance with the terms of this Agreement.
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            3.2 Renewal. On completion of the Initial Term specified in Section
3.1 above, this Agreement will automatically renew for subsequent one-year terms
unless either party provides ninety (90) days' advance written notice to the
other that such party does not wish to renew the Agreement for a subsequent
one-year term. In the event either party gives notice of nonrenewal pursuant to
this Section 3.2, this Agreement will expire at the end of the then-current
term.

      4. Compensation.

            4.1 Base Salary. As compensation for Executive's performance of
Executive's duties hereunder, Company shall pay to Executive a salary of
$250,000 per year, payable in equal monthly installments and in accordance with
the normal payroll practices of Company, less required deductions for state and
federal withholding tax, social security and all other employment taxes and
authorized payroll deductions.

            4.2 Stock Options. Subject to approval by Company's Board of
Directors (the "BOARD"), Company will from time to time grant to Executive an
option to purchase shares of Company's common stock (the "OPTION"). The Option
will be subject to the terms and conditions of one of Company's Stock Option
Plans as designated by the Board (the "PLAN"). The Option will also be subject
to the terms and conditions contained in the special form of option agreement
previously adopted by the Board for the position of Chief Financial Officer, a
form of which is attached hereto as Exhibit A (the "FORM OPTION AGREEMENT") and
shall vest over a period of three (3) years in accordance with the terms of the
Form Option Agreement and the Plan. The Option shall be subject to certain
acceleration provisions described in the Form Option Agreement and this
Agreement.

            4.3 Incentive Compensation. In addition, Executive will also be
eligible to receive incentive compensation subject to the terms and conditions
contained in the Executive Bonus Plan, which is approved by the Board and is
subject to amendment from time to time by the Board in its sole and absolute
discretion (a "BONUS"). Unless otherwise provided herein, the payment of any
Bonus pursuant to this Section 4.3 shall be made in accordance with the normal
payroll practices of Company, less required deductions for state and federal
withholding tax, social security and all other employment taxes and authorized
payroll deductions.

            4.4 Performance and Salary Review. The Board will periodically
review Executive's performance on no less than an annual basis. Adjustments to
salary or other compensation, if any, will be made by the Board in its sole and
absolute discretion.

      5. Customary Fringe Benefits and Facilities. Executive will be eligible
for all customary and usual fringe benefits generally available to executives of
Company subject to the terms and conditions of Company's benefit plan documents.
Company reserves the right to change or eliminate the fringe benefits on a
prospective basis, at any time, effective upon notice to Executive; provided,
however, that during the period of employment under this Agreement, Executive
and her spouse and eligible dependents shall be entitled to receive all benefits
of employment generally available to other members of Company's management and
those benefits for which key executives are or shall become eligible, when and
as Executive becomes eligible therefore, including, without limitation, group
health, life and disability insurance benefits and participation in Company's
401(k) plan. Company further agrees to furnish Executive with such assistance
and accommodations (i.e., an office in the size, type and quality as provided to
Executive prior to the Effective Date) as shall be suitable to the character

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of Executive's position with Company and adequate for the performance of
Executive's duties hereunder.

      6. Business Expenses. Executive will be reimbursed for all reasonable,
out-of-pocket business expenses incurred in the performance of Executive's
duties on behalf of Company. To obtain reimbursement, expenses must be submitted
promptly with appropriate supporting documentation in accordance with Company's
policies.

      7. Termination of Executive's Employment.

            7.1 Termination for Cause by Company. Company may terminate
Executive's employment immediately at any time for Cause. For purposes of this
Agreement, "CAUSE" is defined as: (a) theft, dishonesty, or intentional
falsification of any employment or Company records; improper disclosure of
Company's confidential or proprietary information; (b) Executive's conviction
(including any plea of guilty or nolo contendere) for any criminal act that
materially impairs her ability to perform her duties for Company; or (c) a
material breach of this Agreement by Executive which is not cured within thirty
(30) days of receipt by Executive of reasonably detailed written notice from
Company. In the event Executive's employment is terminated in accordance with
this Section 7.1, Executive shall be entitled to receive only unpaid Base Salary
then in effect, prorated to the date of termination, together with any amounts
to which Executive is entitled pursuant to Sections 5 or 6 hereof. There shall
be no additional vesting under Executive's Option. All other Company obligations
to Executive pursuant to this Agreement will become automatically terminated and
completely extinguished. Executive will not be entitled to receive the Severance
Payments described in Section 7.2, below.

            7.2 Termination Without Cause by Company/Severance. Company may
terminate Executive's employment under this Agreement without Cause at any time
on sixty (60) days' advance written notice to Executive. In the event of such
termination, Executive will receive in one lump sum payment, (i) the unpaid Base
Salary then in effect, prorated to the effective date of termination; (ii) her
Base Salary for twenty-four (24) months from the termination date plus one
year's base Bonus pursuant to Section 4.3 of this Agreement for the calendar
year during which the termination occurs ($125,000 for calendar year 2002),
assuming satisfaction of all performance based milestones at the 100% level by
both Company and the Executive; and (iii) any amounts to which Executive is
entitled pursuant to Sections 5 or 6 hereof (the "SEVERANCE PAYMENTS"), provided
that Executive: (a) complies with all surviving provisions of this Agreement,
including without limitation those provisions specified in Section 14.8, below;
and (b) executes a full general release, releasing all claims, known or unknown,
that Executive may have against Company arising out of or any way related to
Executive's employment or termination of employment with Company, in
substantially the form attached hereto as Exhibit B, or in another form that is
acceptable to Company in its sole discretion. All other Company obligations to
Executive will be automatically terminated and completely extinguished upon
termination of employment.

            7.3 Termination for Good Reason by Executive/Severance. Executive
may terminate Executive's employment under this Agreement for Good Reason
(defined below) at any time on five (5) days' advance written notice to Company.
In the event of such termination, Executive will be entitled to receive the
Severance Payments described in Section 7.2, above, provided that Executive
complies with the conditions to receiving the Severance Payments described in
Sections 7.2(a) and 7.2(b), above. All other Company obligations to Executive
will be automatically terminated and completely extinguished upon termination of
employment.

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      For purposes of this Agreement, "GOOD REASON" is defined as the occurrence
of any of the following conditions:

                  (a) a material, adverse change in Executive's responsibilities
or duties, causing Executive's position to be of materially less stature or
responsibility; provided, that for purposes of this Agreement and without
limiting the generality of the foregoing, a material, adverse change shall be
deemed to occur if Executive no longer serves as Chief Financial Officer (who
shall be the most senior financial officer) of a publicly-traded company
reporting directly to the CEO;

                  (b) the relocation of Executive's work place for Company over
Executive's written objection, to a location more than thirty (30) miles from
Scottsdale, Arizona;

                  (c) a failure to pay, or any reduction of Executive's Base
Salary or Executive's Bonus without Executive's written consent (subject to
applicable performance requirements with respect to the actual amount of Bonus
earned by Executive); or

                  (d) any material breach of this Agreement by Company that is
not cured within thirty (30) days of Company's receipt of written notice from
Executive specifying the material breach of this Agreement.

            7.4 Voluntary Resignation by Executive. Executive may voluntarily
resign Executive's position with Company for any reason, at any time after the
Effective Date, on five (5) days' advance written notice. In the event of
Executive's resignation, Executive will be entitled to receive only the Base
Salary for the five-day notice period and no other amount for the remaining
months of the current term, whether the Initial Term or a subsequent one-year
term (other than amounts to which Executive is entitled pursuant to Section 5 or
6 hereof). All other Company obligations to Executive pursuant to this Agreement
will become automatically terminated and completely extinguished upon
termination of employment. In addition, Executive will not be entitled to
receive any Severance Payments described in Section 7.2, above. The provisions
of this Section 7.4 shall not apply to Executive's resignation for Good Reason.

            7.5 Federal Excise Tax Under Section 4999 of the Code.

            (a) Additional Payment. In the event that any payment or benefit
received or to be received by Executive pursuant to this Agreement or otherwise
payable to Executive (collectively, the "PAYMENTS") would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (the "CODE"), or any similar or successor provision (the "EXCISE TAX"),
Company shall pay to Executive within ninety (90) days of the date Executive
becomes subject to the Excise Tax, an additional amount (the "GROSS-UP PAYMENT")
such that the net amount retained by Executive from the Payments and the
Gross-Up Payment, after deduction of (1) any Excise Tax on the Payments and (2)
any federal, state and local income or employment tax and Excise Tax upon the
payment provided for by this Section, shall be equal to the Payments.

            (b) Determination of Excise Tax. For purposes of determining whether
any of the Payments will be subject to the Excise Tax and the amount of such
Excise Tax:

                  (i) Any payments or benefits received or to be received by
Executive in connection with transactions contemplated by a Change of Control
(as defined below) event

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or Executive's termination of employment (whether pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with Company), shall be
treated as "parachute payments" within the meaning of Section 280G of the Code
or any similar or successor provision, and all "excess parachute payments"
within the meaning of Section 280G of the Code or any similar or successor
provision shall be treated as subject to the Excise Tax, unless in the opinion
of tax counsel ("TAX COUNSEL") selected by Company and reasonably acceptable to
Executive such payments or benefits (in whole or in part) do not constitute
parachute payments, or such excess parachute payments (in whole or in part)
represent reasonable compensation for services actually rendered within the
meaning of Section 280G of the Code (or any similar or successor provision of
the Code) in excess of the base amount within the meaning of Section 280G of the
Code (or any similar or successor provision of the Code), or are otherwise not
subject to the Excise Tax.

                  (ii) The amount of the Payments which shall be treated as
subject to the Excise Tax shall be equal to the lesser of (i) the total amount
of the Payments or (ii) the amount of the excess parachute payments within the
meaning of Section 280G of the Code (after applying paragraph (b)(1) above).

                  (iii) The value of any non-cash benefits or any deferred
payment or benefit shall be determined by Tax Counsel in accordance with the
principles of Section 280G of the Code.

                  (iv) Change of Control. A "CHANGE OF CONTROL" is defined as
any one of the following occurrences:

                        a) Any "person" (as such term is used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934 (the "EXCHANGE ACT")), other
than a trustee or other fiduciary holding securities of Company under an
employee benefit plan of Company, becomes the "beneficial owner" (as defined in
Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of the
securities of Company representing 50% or more of (A) the outstanding shares of
common stock of Company or (B) the combined voting power of Company's
then-outstanding securities; or

                        b) the sale or disposition of all or substantially all
of Company's assets (or any transaction having similar effect is consummated);
or

                        c) Company is party to a merger or consolidation that
results in the holders of voting securities of Company outstanding immediately
prior thereto failing to continue to represent (either by remaining outstanding
or by being converted into voting securities of the surviving entity) at least
50% of the combined voting power of the voting securities of Company or such
surviving entity outstanding immediately after such merger or consolidation; or

                        d) a liquidation or dissolution of Company.

                  (c) Determination of Gross-Up Payment. For purposes of
determining the amount of the Gross-Up Payment, Executive shall be deemed to pay
federal income taxes at the highest marginal rate of federal income taxation in
the calendar year in which the Gross-Up Payment is to be made and state and
local income taxes at the highest marginal rate of taxation in the state and
locality of Executive's residence on the date the Gross-Up Payment is

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to be made, net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes.

                  (d) Adjustments.

                        (i) In the event that the Excise Tax is subsequently
determined to be less than the amount taken into account hereunder, Executive
shall repay to Company at the time that the amount of such reduction in Excise
Tax is finally determined the portion of the Gross-Up Payment attributable to
such reduction (plus the portion of the Gross-Up Payment attributable to the
Excise Tax and federal, state and local income and employment taxes imposed on
the Gross-Up Payment being repaid by Executive if such repayment results in a
reduction in Excise Tax and/or a federal, state or local income or employment
tax deduction) plus interest on the amount of such repayment at the rate
provided in Section 1274(b)(2)(B) of the Code.

                        (ii) In the event that the Excise Tax is determined to
exceed the amount taken into account hereunder (including by reason of any
payment the existence or amount of which cannot be determined at the time of the
Gross-Up Payment), Company shall make an additional gross-up payment in respect
of such excess (plus any interest payable with respect to such excess) at the
time that the amount of such excess is finally determined.

            7.6 Termination of Employment Upon Nonrenewal. In the event either
party decides not to renew this Agreement for a subsequent one-year term in
accordance with Section 3.2 above, the Agreement will expire, Executive's
employment with Company will terminate and Executive will only be entitled to
Executive's Base Salary paid through the last day of the then-current term. All
other Company obligations to Executive pursuant to this Agreement will become
automatically terminated and completely extinguished. In addition, Executive
will not be entitled to any Severance Payments described in Section 7.2.

      8. No Conflict of Interest. During the term of Executive's employment with
Company, Executive must not engage in any work, paid or unpaid, that creates an
actual or potential conflict of interest with Company. If the Board reasonably
believes such a conflict exists during the term of this Agreement, the Board may
ask Executive to choose to discontinue the other work or resign employment with
Company.

      9. Post-Termination Non-Competition.

            9.1 Consideration For Promise To Refrain From Competing. Executive
agrees that Executive's services are special and unique, that Company's
disclosure of confidential, proprietary information and specialized training and
knowledge to Executive, and that Executive's level of compensation and benefits,
including, without limitation, the severance payments provided for in this
Agreement, are partly in consideration of and conditioned upon Executive not
competing with Company. Executive acknowledges that such consideration is
adequate for Executive's promises contained within this Section 9.

            9.2 Promise To Refrain From Competing. Executive understands
Company's need for Executive's promise not to compete with Company is based on
the following: (a) Company has expended, and will continue to expend,
substantial time, money and effort in developing its proprietary information;
(b) Executive will in the course of Executive's employment develop, be
personally entrusted with and exposed to Company's proprietary information; (c)
both during and after the term of Executive's employment, Company will be

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engaged in the highly competitive enterprise software industry; (d) Company
provides products and services nationally and internationally; and (e) Company
will suffer great loss and irreparable harm if Executive were to enter into
competition with Company. Therefore, in exchange for the consideration described
in Section 9.1 above, Executive agrees that for the period of two (2) years
following the date Executive ceases to render services to Company (the "COVENANT
PERIOD"), Executive will not either directly or indirectly, whether as an owner,
director, officer, manager, consultant, agent or employee: (i) work for any of
the following companies or any entity that succeeds to any part of the business
of any of the following Companies that is in competition with Company: Essentus,
Inc., GERS, Inc., Marketmax, Inc., Micro Strategies Incorporated, NONSTOP
Solutions, nsb Retail Systems PLC, Radius PLC, Retek, Inc., SAP AG or SVI
Holdings, Inc. (each a "RESTRICTED BUSINESS"); or (ii) make or hold any
investment in any Restricted Business, whether such investment be by way of
loan, purchase of stock or otherwise, provided that there shall be excluded from
the foregoing the ownership of not more than 1% of the listed or traded stock of
any publicly held corporation. For purposes of this Section 9, the term
"COMPANY" shall mean and include Company, any subsidiary or affiliate of
Company, any successor to the business of Company (by merger, consolidation,
sale of assets or stock or otherwise) and any other corporation or entity of
which Executive may serve as a director, officer or employee at the request of
Company or any successor of Company.

            9.3 Reasonableness of Restrictions. Executive represents and agrees
that the restrictions on competition, as to time, geographic area, and scope of
activity, required by this Section 9 are reasonable, do not impose a greater
restraint than is necessary to protect the goodwill and business interests of
Company, and are not unduly burdensome to Executive. Executive expressly
acknowledges that Company competes on an international basis and that the
geographical scope of these limitations is reasonable and necessary for the
protection of Company's trade secrets and other confidential and proprietary
information. Executive further agrees that these restrictions allow Executive an
adequate number and variety of employment alternatives, based on Executive's
varied skills and abilities. Executive represents that Executive is willing and
able to compete in other employment not prohibited by this Agreement.

            9.4 Reformation if Necessary. In the event a court of competent
jurisdiction determines that the geographic area, duration, or scope of activity
of any restriction under this Section 9 and its subsections is unenforceable,
the restrictions under this section and its subsections shall not be terminated
but shall be reformed and modified to the extent required to render them valid
and enforceable. Executive further agrees that the court may reform this
Agreement to extend the Covenant Period by an amount of time equal to any period
in which Executive is in breach of this covenant.

      10. Confidentiality and Proprietary Rights. Executive agrees to read, sign
and abide by Company's Employee Innovations and Proprietary Rights Assignment
Agreement, which was previously executed by Executive and incorporated herein by
reference.

      11. Nonsolicitation.

            11.1 Nonsolicitation of Customers or Prospects. Executive
acknowledges that information about Company's customers is confidential and
constitutes trade secrets. Accordingly, Executive agrees that during the term of
this Agreement and for a period of two (2) years after the termination of this
Agreement, Executive will not, either directly or indirectly, separately or in
association with others, interfere with, impair, disrupt or damage Company's

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relationship with any of its customers or customer prospects by soliciting or
encouraging others to solicit any of them for the purpose of diverting or taking
away business from Company.

            11.2 Nonsolicitation of Company's Employees. Executive agrees that
during the term of this Agreement and for a period of two (2) years after the
termination of this Agreement, Executive will not, either directly or
indirectly, separately or in association with others, interfere with, impair,
disrupt or damage Company's business by soliciting, encouraging, hiring or
attempting to hire any of Company's employees or causing others to solicit or
encourage any of Company's employees to discontinue their employment with
Company. Notwithstanding the previous sentence, the Executive may give
references for employees and tell headhunters the names of employees of Company,
in either event, where the Executive is aware that the employee has been
identified by Company as not being part of its long-term plans after a Change of
Control.

      12. Injunctive Relief. Executive acknowledges that Executive's breach of
the covenants contained in Sections 9-11 (collectively "COVENANTS") would cause
irreparable injury to Company and agrees that in the event of any such breach,
Company shall be entitled to seek temporary, preliminary and permanent
injunctive relief without the necessity of proving actual damages or posting any
bond or other security.

      13. Agreement to Arbitrate. To the fullest extent permitted by law,
Executive and Company agree to arbitrate any controversy, claim or dispute
between them arising out of or in any way related to this Agreement, the
employment relationship between Company and Executive and any disputes upon
termination of employment, including but not limited to breach of contract,
tort, discrimination, harassment, wrongful termination, demotion, discipline,
failure to accommodate, family and medical leave, compensation or benefits
claims, constitutional claims; and any claims for violation of any local, state
or federal law, statute, regulation or ordinance or common law. Claims for
breach of Company's Employee Innovations and Proprietary Rights Agreement,
workers' compensation, unemployment insurance benefits and Company's right to
obtain injunctive relief pursuant to Section 12 above are excluded. For the
purpose of this agreement to arbitrate, references to "Company" include all
parent, subsidiary or related entities and their employees, supervisors,
officers, directors, agents, pension or benefit plans, pension or benefit plan
sponsors, fiduciaries, administrators, affiliates and all successors and assigns
of any of them, and this Agreement shall apply to them to the extent Executive's
claims arise out of or relate to their actions on behalf of Company.

            13.1 Initiation of Arbitration. Either party may exercise the right
to arbitrate by providing the other party with written notice of any and all
claims forming the basis of such right in sufficient detail to inform the other
party of the substance of such claims. In no event shall the request for
arbitration be made after the date when institution of legal or equitable
proceedings based on such claims would be barred by the applicable statute of
limitations.

            13.2 Arbitration Procedure. The arbitration will be conducted in
Maricopa county, Arizona, by a single neutral arbitrator and in accordance with
the then current rules for resolution of employment disputes of the American
Arbitration Association ("AAA"). The parties are entitled to representation by
an attorney or other representative of their choosing. The arbitrator shall have
the power to enter any award that could be entered by a judge of the trial court
of the State of Arizona, and only such power, and shall follow the law. The
parties agree to abide by and perform any award rendered by the arbitrator.
Judgment on the award may be entered in any court having jurisdiction thereof.

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            13.3 Costs of Arbitration. Each party shall bear one half the cost
of the arbitration filing and hearing fees, and the cost of the arbitrator.

      14. General Provisions.

            14.1 Successors and Assigns. The rights and obligations of Company
under this Agreement shall inure to the benefit of and shall be binding upon the
successors and assigns of Company. Executive shall not be entitled to assign any
of Executive's rights or obligations under this Agreement.

            14.2 Waiver. Either party's failure to enforce any provision of this
Agreement shall not in any way be construed as a waiver of any such provision,
or prevent that party thereafter from enforcing each and every other provision
of this Agreement.

            14.3 Attorneys' Fees. In any dispute relating to this Agreement, the
losing party shall pay the attorneys' fees of the prevailing party in addition
to its own attorneys' fees.

            14.4 Severability. In the event any provision of this Agreement is
found to be unenforceable by an arbitrator or court of competent jurisdiction,
such provision shall be deemed modified to the extent necessary to allow
enforceability of the provision as so limited, it being intended that the
parties shall receive the benefit contemplated herein to the fullest extent
permitted by law. If a deemed modification is not satisfactory in the judgment
of such arbitrator or court, the unenforceable provision shall be deemed
deleted, and the validity and enforceability of the remaining provisions shall
not be affected thereby.

            14.5 Interpretation; Construction. The headings set forth in this
Agreement are for convenience only and shall not be used in interpreting this
Agreement. This Agreement has been drafted by legal counsel representing
Company, but Executive has participated in the negotiation of its terms.
Furthermore, Executive acknowledges that Executive has had an opportunity to
review and revise the Agreement and have it reviewed by legal counsel, if
desired, and, therefore, the normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of this Agreement.

            14.6 Governing Law. This Agreement will be governed by and construed
in accordance with the laws of the United States and the State of Arizona. Each
party consents to the jurisdiction and venue of the state or federal courts in
Maricopa county, Arizona, if applicable, in any action, suit, or proceeding
arising out of or relating to this Agreement.

            14.7 Notices. Any notice required or permitted by this Agreement
shall be in writing and shall be delivered as follows with notice deemed given
as indicated: (a) by personal delivery when delivered personally; (b) by
overnight courier upon written verification of receipt; (c) by telecopy or
facsimile transmission upon acknowledgment of receipt of electronic
transmission; or (d) by certified or registered mail, return receipt requested,
upon verification of receipt. Notice shall be sent to the addresses set forth
below, or such other address as either party may specify in writing.

            14.8 Survival. Sections 8 ("No Conflict of Interest"), 9
("Post-Termination Non-Competition"), 10 ("Confidentiality and Proprietary
Rights"), 11 ("Nonsolicitation"), 12 ("Injunctive Relief"), 13 ("Agreement to
Arbitrate"), 14 ("General Provisions") and 15 ("Entire Agreement") of this
Agreement shall survive Executive's employment by Company.

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            15. Entire Agreement. This Agreement, including Company Employee
Innovations and Proprietary Rights Assignment Agreement incorporated herein by
reference and the Form Option Agreement, constitutes the entire agreement
between the parties relating to this subject matter and supersedes all prior or
simultaneous representations, discussions, negotiations, and agreements, whether
written or oral. This Agreement may be amended or modified only with the written
consent of Executive and the Board of Company. No oral waiver, amendment or
modification will be effective under any circumstances whatsoever.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

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THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY
UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES
HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW.

                                          EXECUTIVE

Dated:  7-23-82                           /s/ Kristin L. Magnuson
       -----------------------            ------------------------------------
                                          KRISTIN L. MAGNUSON

                                          ADDRESS

                                          COMPANY

Dated: 7-23-02                      By:   /s/ James D. Armstrong
       -----------------------            ------------------------------------
                                          JAMES D. ARMSTRONG, CEO

                [SIGNATURE PAGE TO MAGNUSON EMPLOYMENT AGREEMENT]
<PAGE>
                                    EXHIBIT A

                            Form of Option Agreement

See attached.
<PAGE>
                                    EXHIBIT B

                             Form of Mutual Release

See attached.<PAGE>
                                                                   Exhibit 10.50

            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                               SIMPLEDEVICES, INC.

                           __________________________

                            STOCK PURCHASE AGREEMENT
                           __________________________
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                            STOCK PURCHASE AGREEMENT

      This Stock Purchase Agreement ("Agreement") is by and between Simple
Devices, Inc., a Delaware corporation ("Company"), and Rockford Corporation, an
Arizona corporation ("Purchaser"). Company and Purchaser hereby agree as
follows:

1.    BACKGROUND AND DEFINITIONS.

      1.1   Company Business. Company develops, manufactures, markets and
            distributes wireless electronic systems for the delivery of Internet
            and personal computer content to audio and other electronic devices
            and systems and engages in other related business (the "Business").

      1.2   Purchaser Business. Purchaser develops, manufactures, markets and
            distributes high quality mobile, professional and home theatre audio
            systems and equipment.

      1.3   Acquisition. Company has agreed to sell to Purchaser *** shares of
            the Company's common stock (the "Shares") at a purchase price per
            share of $*** and at the aggregate purchase price of ***,
            representing *** of Company's fully-diluted capital stock. Purchaser
            and Company have agreed to complete the acquisition and sale of the
            Shares on the terms described in this Agreement.

      1.4   Purpose. The purpose of this Agreement is to state the terms of
            Purchaser's acquisition of the Shares.

      1.5   Definitions. In this Agreement:

            Affiliate means any Person who controls, is controlled by, or is
            under common control with another Person (directly or indirectly,
            alone or together with others).

            Agreement means this Agreement and each of the Schedules, Exhibits
            and certificates delivered with this Agreement. The Schedules,
            Exhibits and certificates are a part of this Agreement.

            Business has the meaning given in Section 1.1 and includes all
            operating lines, products and services of Company.

            Closing means the consummation of the transactions contemplated by
            this Agreement.

            Closing Date means the day on which the Closing actually takes
            place.

            Company means Simple Devices, Inc., a Delaware corporation.

            Contract means any contract, indenture, mortgage or deed of trust,
            lease, purchase order, guaranty, insurance policy, bond, license,
            instrument, understanding, obligation, or other agreement. A
            Contract may be written or oral.
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            Employment Contracts means all Contracts related to employment,
            including both individual agreements and collective bargaining
            agreements.

            Employment Plans means all executive compensation plans, bonus
            plans, holiday and other bonus practices, deferred compensation
            agreements, pension or retirement plans, employee stock option or
            stock purchase plans, employee life, heath, and accident insurance,
            and other employee benefit plans, agreements, arrangements or
            commitments.

            Encumbrance means any mortgage, pledge, lien, claim, charge,
            security interest, restriction, easement, right of way, or other
            liability that is a charge against an asset.

            Environmental Laws means all Laws relating to the environment or
            Hazardous Materials, including the Comprehensive Environmental
            Response, Compensation and Liability Act of 1980, as amended by the
            Superfund Amendments and Reauthorization Act of 1986 ("CERCLA"), 42
            U.S.C. Section 9601 et seq.; the Toxic Substance Control Act, 15
            U.S.C. Section 2601 et seq; the Hazardous Materials Transaction Act,
            49 U.S.C. Section 1802 et seq; the Resource Conservation and
            Recovery Act, 42 U.S.C. Section 9601 et seq; the Clean Water Act, 33
            U.S.C. Section 1251 et seq; the Safe Drinking Water Act, 42 U.S. C.
            Section 300(f) et seq; the Clean Air Act, 42 U.S.C. Section 7401 et
            seq; the Federal Insecticide, Fungicide and Rodenticide Act, 7
            U.S.C. Section 136 et seq; and the Solid Waste Disposal Act, 42
            U.S.C. Section 6901 et seq.

            Financial Statements and Financial Statements Date have the meanings
            given in Section 6.8.

            Government means any legislature, executive, department,
            administrative agency, municipality, subdivision, instrumentality,
            or other authority of the United States, any state, any locality, or
            any foreign country or political subdivision of a foreign country.

            Hazardous Materials means hazardous wastes, hazardous substances,
            hazardous constituents, toxic substances, pollutants, contaminants,
            radioactive materials, related materials, and any other substances,
            constituents or wastes, whether solids, liquids or gases, subject to
            regulation under any Environmental Laws.

            Information means information Company supplies to Purchaser under
            Section 8.10 of this Agreement.

            Laws means any law, statute, ordinance, rule, regulation, or Order.

            Loss means all expenses (including reasonable attorneys and
            accountants fees), losses, taxes, claims, damages, awards, fines,
            interest, penalties, and liabilities net of related income tax
            benefits, if any.

            Order means any order, decree, decision, injunction, finding, or
            judgment.

                                       3
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            Permits means approvals, permits, licenses, filings, registrations,
            certificates, orders, authorizations, qualifications, or other
            consents from any Government, self-regulatory authority, or any
            other third party.

            Person means any individual person and any corporation, partnership,
            joint venture, limited liability company, trust or other entity.

            Proceeding means any claim, action, suit, mediation, arbitration,
            labor grievance, Government investigation, or other legal or
            administrative proceeding.

            Properties means all properties and assets reflected in the
            Financial Statements or in Schedule 6.17.

            Purchase Price means the purchase price for the Shares in the amount
            of $***, payable as set forth in Section 4 of this Agreement.

            Purchaser means Rockford Corporation, an Arizona corporation.

            Security Rights means all subscriptions, options, warrants, calls,
            contracts, demands, commitments, convertible securities, preemptive
            rights or other agreements or arrangements to acquire common stock
            or other securities of a Person.

            Stockholders means each of the Persons who own shares (of record or
            beneficially) of the capital stock of Company. All Stockholders are
            identified on Schedule 6.6.

            Shares means the *** shares of common stock of Company to be
            acquired by Purchaser pursuant to this Agreement, representing ***
            of the capital stock of Company on a fully-diluted basis.

            Tax means any tax, assessment, duty, or governmental charge or
            deposit, including income, property, ad valorem, gross receipts,
            sales, use, value added, transaction privilege, occupation,
            franchise, transfer, excise, goods and services, payroll,
            employment, profits, capital, severance, production, premium,
            payroll, stamp, unemployment insurance, disability, workers'
            compensation, withholding, and social security tax. Tax also
            includes all interest and penalties, whether disputed or not,
            imposed by any Government.

2.    PURCHASE AND SALE OF SHARES. At the Closing and subject to this Agreement,
      Purchaser will purchase from Company, and Company will issue and sell to
      Purchaser, the Shares. As a result of the purchase, Purchaser will become
      the owner of *** of the capital stock of Company on a fully-diluted basis.
      Attached as Exhibit 2 is a table showing the post-acquisition capital
      structure of the Company.

                                       4
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

3.    CLOSING. The Closing will take place at 10:00 A.M., local time, on or
      before October ___, 2002, at the offices of Steptoe & Johnson LLP, counsel
      for Purchaser, 201 East Washington Street, Suite 1600, Phoenix, Arizona
      85004, or at another agreed upon time and place.

4.    PAYMENT OF PURCHASE PRICE.

      4.1   Purchase Price. Purchaser will pay the Purchase Price of $*** to
            Company at the Closing by cashier's check or wire transfer in
            accordance with wiring instructions given to Purchaser at least 72
            hours prior to Closing (the "Closing Payment"). Out of the Closing
            Payment, Company will use approximately $*** to redeem in full the
            Company's convertible notes, including principal and accrued
            interest. After such payment, Company will have no further
            obligations to the holders of the convertible notes.

      4.2   Use of Proceeds. The proceeds for the Shares will be used by Company
            for working capital and other corporate purposes. Company may not
            make any distributions of the proceeds to the Stockholders.

5.    EMPLOYEES AND OPTIONS. At the Closing, Company will enter into the
      following agreements or arrangements:

      5.1   Employment of Key Employees. Company will enter into an Employment
            and Non-Competition Agreement with each of the employees identified
            on Schedule 5.1 (the "Key Employees") substantially in the form of
            Exhibit 5.1;

      5.2   Employment of Other Employees. Company will continue to employ the
            employees of Company identified on Schedule 5.2 (the "Other
            Employees") but is not obligated to enter into an employment
            agreement with any of the Other Employees or to employ any of the
            Other Employees for any length of time. As a condition to his or her
            continued employment, Purchaser may require that each Other Employee
            sign and deliver to Company an invention agreement in the form of
            Exhibit 5.2.

      5.3   Management Options.

            (a)   At or prior to Closing, Company will grant options (or reserve
                  shares for future options to be granted) to Company's
                  employees to acquire up to an aggregate of *** shares of
                  Company's common stock, representing up to *** of the capital
                  stock of Company on a fully-diluted basis. The options will be
                  distributed among Company's employees as mutually agreed by
                  Company's President and Chairman, subject to the approval of
                  Purchaser. The employees shall receive the option to purchase
                  that number of shares of the Common Stock of the Company as
                  set forth on Exhibit 5.3 attached hereto.

            (b)   The options will be issued pursuant to Company's existing
                  stock option plan, which may be amended by Company as
                  necessary to comply with

                                       5
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                  the terms of this Agreement. The options will be issued at a
                  strike price of not less than $*** per share. All options will
                  vest over *** on a monthly pro-rata basis beginning *** after
                  the grant date.

            (c)   Company will account for any compensation expense resulting
                  from the issuance of the options in a period ending at or
                  before the Closing Date.

6.    REPRESENTATIONS AND WARRANTIES BY COMPANY. Company represents and warrants
      to Purchaser that as of the date of this Agreement and as of the Closing
      Date:

      6.1   Organization and Authority to Conduct Business.

            (a)   Company is duly organized, validly existing and in good
                  standing under the Laws of Delaware.

            (b)   Company is qualified to do business and is in good standing in
                  each of the jurisdictions identified on Schedule 6.1. These
                  are all the jurisdictions in which Company must be qualified
                  or in which the lack of such qualification would have a
                  material adverse effect on the financial condition, business
                  or prospects of Company.

            (c)   Company has all requisite corporate power and authority to
                  carry on its business as now conducted, to own, lease, or
                  operate its properties, and to carry out the transactions
                  contemplated by this Agreement.

            (d)   Company has delivered to Purchaser complete copies of
                  Company's certificate of incorporation and bylaws as amended.

      6.2   Authorization and Approval of Agreement. Company:

            (a)   has taken, or will take before the Closing, all actions; and

            (b)   has secured, or will secure before the Closing, all Permits
                  required to authorize the execution, delivery, and
                  consummation of this Agreement and the transactions
                  contemplated by this Agreement.

      6.3   Binding Effect. This Agreement, and each document or instrument
            executed by Company in connection with this Agreement:

            (a)   constitutes the valid, binding, and enforceable obligation of
                  Company;

            (b)   has been duly executed and delivered by Company; and

            (c)   has been duly authorized by all necessary corporate action.

      6.4   Execution, Delivery and Performance of Agreement. The execution,
            delivery, and performance of this Agreement by Company will not
            (with or without the giving of notice or the passage of time)
            conflict with, result in a default under,

                                       6
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                  result in the creation of any Encumbrance pursuant to, or
                  result in the acceleration of any obligation under or permit
                  the termination of:

            (a)   Company's certificate of incorporation or bylaws; or

            (b)   any Contract or Law to which Company is a party or by which it
                  may be bound.

      6.5   Subsidiaries. Except as disclosed on Schedule 6.5, Company does not
            own or have any investment in any other Person.

      6.6   Capitalization and Share Ownership.

            (a)   The authorized, issued, and outstanding capital stock of
                  Company, and the record and beneficial owners of such capital
                  stock, are as set forth on Schedule 6.6.

            (b)   Except as set forth on Schedule 6.6, and as provided in this
                  Agreement, there are no outstanding Security Rights under
                  which Company is or may become obligated to issue, assign or
                  transfer any shares of the capital stock of Company.

            (c)   Upon payment of the Purchase Price, the Shares will be validly
                  issued and outstanding, fully paid, and non-assessable and
                  will be issued in compliance with all applicable securities
                  laws.

            (d)   Upon payment of the Purchase Price, Purchaser will acquire
                  good and valid title to the Shares free and clear of all
                  Encumbrances, rights of first refusal, preemptive rights or
                  other restrictions.

      6.7   Transactions with Affiliates.

            (a)   Company has not, directly or indirectly,

                  (1)   purchased, sold, leased, or otherwise acquired any
                        property from;

                  (2)   disposed of any property to;

                  (3)   obtained any services from or furnished any services to;
                        or

                  (4)   otherwise dealt with

                  any Stockholder, or any Affiliate of Company or any
                  Stockholder, except as set forth on Schedule 6.7(a).

            (b)   Company:

                  (1)   does not owe any amount to;

                  (2)   is not owed any amount by; and

                                       7
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                  (3)   does not have any Contract with or commitment to

                  any Stockholder, director, officer, employee, consultant or
                  Affiliate, except for Contracts for current services not yet
                  due or as set forth on Schedule 6.7(b).

            (c)   Company does not possess or use any properties or assets of
                  any Stockholder or any Affiliate of any Stockholder, except as
                  set forth on Schedule 6.7(c).

      6.8   Financial Statements.

            (a)   Company has delivered to Purchaser copies of the following
                  financial statements (the "Financial Statements"):

                  (1)   balance sheets as of its fiscal years ending December
                        31, 1999, 2000, and 2001, as well as interim statements
                        through August 31, 2002 (the "Financial Statements
                        Date), and

                  (2)   statements of earnings and (to the extent reasonably
                        available) sources and application of funds for the
                        periods then ended.

            (b)   The Financial Statements:

                  (1)   fairly present Company's financial condition and results
                        of operations for the periods reported;

                  (2)   were prepared in accordance with Generally Accepted
                        Accounting Principles, consistently applied ("GAAP"),
                        except for exceptions noted in the Financial Statements,
                        in Schedule 6.8, or elsewhere in this Agreement; and

                  (3)   in the case of year end statements, said statements were
                        audited by Fish & Associates, the Company's independent
                        accountants.

      6.9   Absence of Undisclosed Liabilities. As of the Financial Statements
            Date, Company had no material debts or liabilities except as
            disclosed in the Financial Statements or this Agreement or on
            Schedule 6.9. Since the Financial Statements Date, Company has not
            incurred additional material debts or liabilities except as
            disclosed in Schedule 6.9 or elsewhere in this Agreement.

      6.10  Litigation. Except as set forth in Schedule 6.10,

            (a)   There is no Proceeding pending or, to Company's knowledge,
                  threatened; and

            (b)   There is no Order in effect or, to Company's knowledge,
                  threatened

            against or relating to:

                                       8
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                  (1)   Company or Company's properties, assets, or business;

                  (2)   Company's officers, directors, or employees in their
                        capacities as such or on account of any action taken or
                        done in such capacities; or

                  (3)   the transactions contemplated by this Agreement.

            Company does not know, or have reason to know, any basis for
            such a Proceeding or Order.

      6.11  Bankruptcy Proceedings. Company is not involved in any Proceeding by
            or against it:

            (a)   under the Bankruptcy Code;

            (b)   under any other insolvency or debtors' relief Laws; or

            (c)   for the appointment of a trustee, receiver, liquidator,
                  assignee, sequestrator or other similar official.

      6.12  Taxes. Except as set forth in Schedule 6.12:

            (a)   Company has paid, or will pay before their due date, all Taxes
                  due in respect of Company's operations;

            (b)   Company has timely filed, or will timely file, all tax returns
                  required in connection with any Taxes, and has not made any
                  requests for extensions. All such returns are accurate and
                  comply with applicable Law;

            (c)   Company has made all material deposits required by Law;

            (d)   Company has not been delinquent in the payment of any Tax or
                  has paid any penalty and interest associated with a
                  delinquency; and

            (e)   Company is not currently the subject of any Tax audit, has no
                  reassessment of any Tax proposed, and knows of no basis for
                  any such reassessment.

      6.13  Compliance with Laws, Permits, and Contracts. To Company's
            knowledge, and except as set forth in Schedule 6.13:

            (a)   Company has complied in all material respects with all Laws
                  applicable to its Business, Properties, or operations as
                  presently conducted and as conducted in the past;

            (b)   Company has secured and is in material compliance with all
                  Permits required for its Business, Properties, and operations
                  as presently conducted;

            (c)   Company has not offered, paid, or agreed to pay money or
                  anything of value for the purpose of or with the intent of
                  obtaining or maintaining

                                       9
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                  business for Company, or otherwise benefiting Company, in
                  violation of any Law (including Section 30A(a) of the
                  Securities Exchange Act of 1934, as amended); and

            (d)   The ownership and present use of Company's Properties, and the
                  conduct of its Business,

                  (1)   does not materially conflict with the rights of any
                        other person; and

                  (2)   will not (with or without the giving of notice or the
                        passage of time) conflict with or result in a default
                        under:

                        (i)   Company's certificate of incorporation or bylaws;
                              or

                        (ii)  any Contract or Law to which Company is a party or
                              by which it is affected.

      6.14  Enforceability of Contracts; No Defaults. Except as set forth on
            Schedule 6.14:

            (a)   all Contracts identified in this Agreement to which Company is
                  a party are effective, valid, binding, and enforceable in
                  accordance with their terms; and

            (b)   Company does not know, or have reason to know, of any default
                  (or event which, after notice or lapse of time, would
                  constitute a default) under such Contracts.

      6.15  Product Recalls. Except as set forth on Schedule 6.15, Company has
            not within the past 5 years:

            (a)   been party to any Proceeding brought by a Government; or

            (b)   been subject to any Order

            that required, or sought to require, that Company recall any
            products that Company designed, manufactured, assembled, shipped,
            sold, distributed, installed, repaired or maintained. Company does
            not know, or have reason to know, of any voluntary recall undertaken
            to avoid a Proceeding or Order or of any pending or threatened
            Proceeding or Order that would require such a recall.

6.16     Environmental Matters.  Except as set forth on Schedule 6.16:

            (a)   Company is in compliance with all Environmental Laws;

            (b)   Company has secured all Permits required under Environmental
                  Laws for the operation of the Business (and such Permits are
                  listed on Schedule 6.16);

                                       10
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            (c)   Company does not know, or have reason to know, of any pending
                  or threatened Proceedings against Company with respect to any
                  Environmental Laws;

            (d)   Company does not know, or have reason to know, of any act
                  attributable to Company that could give rise to liability
                  under CERCLA or any other Environmental Law. Company has not
                  submitted notice pursuant to Section 103 of CERCLA with
                  respect to any of its Properties;

            (e)   To its knowledge, Company does not own or operate any
                  underground storage tank except for tanks in compliance with
                  all Environmental Laws. All of Company's underground storage
                  tanks are identified on Schedule 6.16; and

            (f)   Company does not know, or have reason to know, of any
                  Hazardous Materials that have been released, discharged,
                  deposited, emitted, leaked, spilled, poured, emptied,
                  injected, dumped or disposed of on, in, or under its
                  Properties by Company or any other Person in a manner that
                  violates any applicable Environmental Law.

6.17     Properties.

            (a)   Real Property. Schedule 6.17(a) lists:

                  (1)   all real property Company owns, leases, or uses in the
                        Business;

                  (2)   the terms on which Company owns, leases, or uses such
                        property; and

                  (3)   the terms of any Encumbrances affecting Company's
                        interest in such property.

            (b)   Personal Property. Schedule 6.17(b) lists:

                  (1)   all tangible personal property (other than inventory and
                        supplies) Company owns, leases or uses in the Business,
                        except for owned items having a value of less than
                        $1,000 and leased items requiring annual lease payments
                        less than $1,000;

                  (2)   the terms on which Company owns, leases, or uses such
                        property; and

                  (3)   the terms of any Encumbrances affecting Company's
                        interest in such property.

            (c)   Title. Company has satisfactory title to all properties and
                  assets reflected in the Financial Statements or in Schedule
                  6.17(a) or (b) (the "Properties"), free of any Encumbrance,
                  except:

                                       11
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                  (1)   Properties sold or otherwise disposed of in the ordinary
                        course of business consistent with past practice after
                        the Financial Statements Date; or

                  (2)   as set forth in the Financial Statements or in Schedule
                        6.17(a) or (b).

            (d)   Condition. The Properties are in good operating condition and
                  repair, are suitable for the purposes used, and are adequate
                  for the current operations of Company. Together with inventory
                  and supplies, the Properties are all of the properties and
                  tangible assets used in connection with, necessary for the
                  conduct of, or otherwise material to the Business. Company
                  does not know, or have reason to know, of any pending or
                  threatened condemnation affecting the Properties.

      6.18  Insurance. Schedule 6.18 lists all material insurance policies
            insuring, and all material performance bonds issued in favor of,
            Company, specifying:

            (a)   the name of the insurer or bonding company;

            (b)   the risk insured or bonded;

            (c)   the limits of coverage;

            (d)   the deductible (if any);

            (e)   the premium (including any proposed premium increases known to
                  Company);

            (f)   any notice of cancellation or nonrenewal; and

            (g)   the date through which coverage will continue by virtue of
                  premiums already paid.

      6.19  Development and Distribution Agreements. Schedule 6.19 lists all
            Contracts of Company relating to development of Company's products,
            Company's development of products for others, distribution of
            products, or the services of an independent contractor, but
            excluding any Contract entered into in the ordinary course of
            business terminable by Company in less than 30 days or involving
            payment or receipt of less than $10,000.

      6.20  Other Contracts. Schedule 6.20 lists:

            (a)   Each loan, conditional sales, or security agreement of Company
                  with an unpaid balance more than $10,000;

            (b)   Each material license agreement relating to intellectual
                  property of Company (other than licenses incident to leases of
                  computers, software, or

                                       12
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                  office or photographic equipment used in the ordinary course
                  of business); and

            (c)   All other Contracts of Company but excluding:

                  (1)   Contracts listed or excluded elsewhere in this
                        Agreement; and

                  (2)   any Contract entered into in the ordinary course of
                        business terminable by Company in less than 30 days or
                        involving payment or receipt of less than $10,000.

      6.21  Employment Matters.

            (a)   Employment Contracts and Plans. Schedule 6.21 lists:

                  (1)   all Employment Contracts and Employment Plans of
                        Company; and

                  (2)   the names and current annual rates of compensation of
                        all personnel (including employees and independent
                        contractors) whose 2002 compensation is expected to be
                        $75,000 or more.

            (b)   Compliance with Employment Laws. Company:

                  (1)   is in material compliance with all Laws regulating
                        employment practices, terms and conditions of
                        employment, and wages and hours;

                  (2)   is not subject to any unfair labor practice complaint or
                        other petition before the National Labor Relations
                        Board;

                  (3)   is not subject to any labor strike, dispute, slow-down
                        or stoppage;

                  (4)   is not subject to any Proceeding arising out of or under
                        a collective bargaining agreement; and

                  (5)   has not experienced any primary work stoppage or other
                        labor difficulty involving its employees during the past
                        three years.

            (c)   Plan Compliance. Company has administered and maintained the
                  Employment Plans in material compliance with all applicable
                  Laws. Company does not know, or have reason to know, of any
                  prohibited transaction (as defined in ERISA) relating to any
                  Employment Plan.

      6.22  No Guaranties. Except as disclosed on Schedule 6.22, Company has not
            guaranteed the obligations or liabilities of any Person.

      6.23  Intellectual Property. Schedule 6.23 lists all material patents,
            patent applications, trademarks, trade names, service marks, other
            trade rights, copyrights, licenses,

                                       13
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            and similar intangibles (the "Intellectual Property") that Company
            owns, uses, or has registered. Except as disclosed on Schedule 6.23:

            (a)   Company is not obligated to pay any royalty with respect to
                  Intellectual Property; and

            (b)   Company does not know, or have reason to know, of any pending
                  or threatened Proceedings (or of any basis for such a
                  Proceeding) alleging that Company has infringed on any third
                  party's Intellectual Property.

      6.24  Inventory. Except as disclosed on Schedule 6.24, Company's inventory
            and related supplies are merchantable or suitable for sale in the
            ordinary course of business.

      6.25  Receivables. Schedule 6.25 lists all accounts receivable of the
            Company as of the date indicated. All receivables listed, and all
            receivables that have arisen since such date, arose from
            transactions in the ordinary course of business. Company has
            received no notice, and has no knowledge, that any obligor of any
            such receivables contests or disputes the validity or the amount
            owed.

      6.26  Records. Except as set forth in Schedule 6.26, the books of account,
            minute books, stock certificate books, and stock transfer ledgers
            ("Books") of Company are complete and correct in all material
            respects. Company knows of no material transactions involving the
            business of Company that properly should have been but are not set
            forth in the Books.

      6.27  Official Filings Complete. Company has made all required Government
            filings.

      6.28  Absence of Changes or Events. Except as disclosed on Schedule 6.28,
            as expressly permitted or contemplated by the terms of this
            Agreement, or with Purchaser's written consent, since the Financial
            Statements Date, Company has conducted business only in the ordinary
            course and, since the Financial Statements Date, has not taken, or
            entered into any agreement or made any commitment to take, any of
            the following actions:

            (a)   incurred any obligation or liability, except liabilities

                  (1)   for trade or business obligations incurred in the
                        ordinary course of business; or

                  (2)   which do not materially affect its business or financial
                        condition;

            (b)   paid any obligation or liability other than current
                  liabilities incurred in the ordinary course of business;

            (c)   declared or paid dividends or other distributions to the
                  Stockholders;

                                       14
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            (d)   purchased, retired or redeemed, or obligated itself to
                  purchase, retire or redeem, any of its capital stock;

            (e)   issued or sold any shares of capital stock or other
                  securities;

            (f)   acquired any capital stock of, interest in, or other
                  securities of any Person, or otherwise made any loan or
                  advance to or investment in any Person;

            (g)   subjected any Properties to any Encumbrance, except in the
                  ordinary course of business;

            (h)   sold or otherwise disposed of any Properties, except in the
                  ordinary course of business;

            (i)   cancelled, compromised, waived, or released any debt, claim,
                  or right, except in the ordinary course of business;

            (j)   received or given notice of termination of any Contract whose
                  termination has had, or may have, a material adverse effect on
                  its business or financial condition;

            (k)   to its knowledge, experienced any labor union organizing
                  activity, had any actual or threatened employee strikes, work
                  stoppages, slow-downs, or lock-outs, or had any material
                  change in the terms of agreements with its employees, agents,
                  customers or suppliers;

            (l)   made or agreed to make any change in the compensation payable
                  to any director, officer, or employee, except for normal
                  periodic bonus accruals and normal periodic increases in
                  regular compensation;

            (m)   acquired any capital assets that cost in excess of an
                  aggregate of $50,000;

            (n)   instituted, settled or agreed to settle any material
                  Proceeding; or

            (o)   suffered any change, event, condition, damage, destruction, or
                  loss having a material adverse affect on its business or
                  financial condition.

      6.29  Disclosure. No representation or warranty by Company in this
            Agreement and no certificate or other instrument furnished by or on
            behalf of Company to Purchaser:

            (a)   contains or will contain any untrue statement of a material
                  fact; or

            (b)   omits or will omit to state any material fact required to make
                  the statements made in this Agreement and such certificate or
                  instrument, taken as a whole, not misleading.

                                       15
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            The representations and warranties contained in this Agreement will
            not be affected or deemed waived by reason of any investigation by
            Purchaser or its representatives.

7.    REPRESENTATIONS AND WARRANTIES BY PURCHASER. Purchaser represents and
      warrants to Company that as of the date of this Agreement and as of the
      Closing Date:

      7.1   Organization and Authority. Purchaser is a corporation duly
            organized, validly existing and in good standing under the laws of
            Arizona. Purchaser has all requisite power and authority to carry on
            its business as presently conducted, to enter into this Agreement,
            and to carry out the transactions contemplated by this Agreement.

      7.2   Authorization and Approval of Agreement. Purchaser has taken all
            actions required to authorize the execution, delivery, and
            consummation of this Agreement and the transactions contemplated by
            this Agreement.

      7.3   Binding Effect. This Agreement, and each document or instrument
            executed by Purchaser in connection with this Agreement, constitutes
            the valid, binding, and enforceable obligation of Purchaser, has
            been duly executed and delivered by Purchaser, and has been duly
            authorized by all necessary corporate action.

      7.4   Execution, Delivery and Performance of Agreement. The execution,
            delivery, and performance of this Agreement by Purchaser will not
            (with or without the giving of notice or the passage of time)
            conflict with, result in a default under, or result in the creation
            of any Encumbrance pursuant to:

            (a)   Purchaser's articles of incorporation or bylaws; or

            (b)   any material Contract or Law to which Purchaser is a party or
                  by which it may be bound.

      7.5   Investment Intent. Purchaser acknowledges that:

            (a)   the Shares are not registered under the Securities Act of
                  1933, as amended (the "Securities Act");

            (b)   Purchaser may not resell the Shares unless they are registered
                  or exempt from registration; and

            (c)   Purchaser is acquiring the Shares for its own account, for
                  investment purposes only, and not with a view toward their
                  distribution.

            (d)   Purchaser is an "accredited investor" within the meaning of
                  SEC Rule 501 of Regulation D, as presently in effect and
                  understands the meaning of that term.

                                       16
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            (e)   Purchaser understands that the shares of Common Stock it is
                  purchasing are characterized as "restricted securities" under
                  the federal securities laws inasmuch as they are being
                  acquired from the Company in a transaction not involving a
                  public offering and that under such laws and applicable
                  regulations such securities may be resold without registration
                  under the Securities Act of 1933, as amended (the "Act") only
                  in certain limited circumstances. In this regard, the
                  Purchaser represents that it is familiar with SEC Rule 144, as
                  presently in effect, and understands the resale limitations
                  imposed thereby and by the Act.

      7.6   Purchaser's Independent Investigation. Purchaser and its
            representatives have independently investigated Company and the
            Business. Purchaser acknowledges that there are no representations
            or warranties, express or implied, about Company or the Business
            except for the representations and warranties in this Agreement and
            each certificate and instrument furnished in connection with this
            Agreement. Purchaser is not relying on any written or oral
            information about Company or the Business (including financial or
            forward-looking information) except for the representations and
            warranties in this Agreement and each certificate and instrument
            furnished in connection with this Agreement.

      7.7   Disclosure of Information. The Purchaser believes it has received
            all the information it considers necessary or appropriate for
            deciding whether to enter into this Agreement. The Purchaser further
            warrants that it has had an opportunity to ask questions and receive
            answers from the Company regarding the terms and conditions of the
            Agreement. The foregoing, however, does not limit or modify the
            representations and warranties of the Company set forth in Section 6
            of this Agreement, or the right of the Purchaser to rely thereon.

      7.8   Litigation. There is no Proceeding pending or, to Purchaser's
            knowledge, threatened, and there is no Order in effect, relating to
            the transactions contemplated by this Agreement. Purchaser does not
            know of any basis for such a Proceeding or Order.

      7.9   Disclosure. No representation or warranty by Purchaser in this
            Agreement:

            (a)   contains or will contain any untrue statement of a material
                  fact; or

            (b)   omits or will omit to state any material fact required to make
                  the statements made in this Agreement not misleading.

            The representations and warranties contained in this Agreement will
            not be affected or deemed waived by reason of any investigation by
            Company or its representatives.

8.    PRE-CLOSING COVENANTS. After the execution of this Agreement and before
      the earlier of the Closing or termination of this Agreement:

                                       17
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

      8.1   Conversion of Existing Preferred Stock and Security Rights. Company
            will take all steps necessary to cause

            (a)   all outstanding Series A and Series B preferred stock of
                  Company; and

            (b)   all outstanding Security Rights of Company (other than options
                  under Company's existing stock option plan)

            to be converted into or exchanged for Company common stock and all
            existing preferences relating to the Series A and Series B preferred
            stock to be terminated. Subject to Purchaser's prior written
            approval, Company will amend its certificate of incorporation and
            bylaws as necessary to effect such conversion or exchange.

      8.2   Pre-paid Asset. Company will expense the pre-paid asset Company
            carried on its Balance Sheet as of the Financial Statements Date in
            the amount of $***.

      8.3   Consents and Approvals. Purchaser and Company will cooperate:

            (a)   to obtain as expeditiously as possible all Permits necessary
                  to carry out the transactions contemplated by this Agreement;
                  and

            (b)   to comply with all Laws regulating or restricting the
                  transactions contemplated by this Agreement.

      8.4   Conduct of Business. Company will conduct business only in the
            ordinary course consistent with past practice or as otherwise
            specifically permitted by this Agreement except for changes to which
            Purchaser consents in writing. Company will maintain and preserve
            the Properties and will use best efforts:

            (a)   to preserve the business and organization of Company;

            (b)   to maintain the general character of the Business and conduct
                  its business, operations, activities, and practices in a
                  reasonable manner in accordance with its past practices;

            (c)   to keep available to Purchaser the services of Company's
                  officers, employees, agents and independent contractors; and

            (d)   to preserve for the benefit of Purchaser the goodwill of
                  Company's suppliers, customers, landlords and others having
                  business relationships with it.

      8.5   Consultation. Company will consult with Purchaser about material
            changes in the conduct of Company's business. Company is not
            required to take or fail to take any action that, in Company's
            reasonable judgment, is likely to result in:

            (a)   a substantial penalty;

                                       18
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            (b)   a claim for damages by any third party against Company;

            (c)   losses to Company;

            (d)   prejudice to or interference with Company's business and
                  operations; or

            (e)   a breach by Company of any of the representations and
                  warranties made by it in this Agreement.

      8.6   Approval of Certain Transactions; Operating Requirements. Company
            will not, without Purchaser's prior written approval, take or agree
            to take any of the following actions:

            (a)   amend its certificate of incorporation or bylaws;

            (b)   merge or consolidate (or agree to merge or consolidate) with
                  or into any Person;

            (c)   sell or purchase any shares of capital stock or any other
                  securities;

            (d)   declare or pay any dividend or other distribution;

            (e)   authorize or effect any split-up or recapitalization, or make
                  any changes in its authorized or issued capital stock;

            (f)   incur any additional debt, other than trade debt incurred in
                  the ordinary course of business;

            (g)   increase the compensation of any officers, directors, or
                  employees, except for normal periodic bonus accruals and
                  normal periodic increases in regular compensation;

            (h)   assume or guarantee the obligations of any party except for
                  Company;

            (i)   take any action which would breach any of its representations
                  and warranties in this Agreement;

            (j)   sell or otherwise dispose of any of its assets except in the
                  ordinary course of business;

            (k)   subject any Properties to an Encumbrance, other than in the
                  ordinary course of business; or

            (l)   enter into or terminate any Contract except in the ordinary
                  course of business and except for those of the type which
                  would not have to be listed and described in Schedule 6.20 or
                  any other schedule to this Agreement.

                                       19
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

      8.7   Material Changes. Company will give Purchaser written notice of any
            material change known to Company in any representations and
            warranties made by it in this Agreement.

      8.8   Share Restrictions. Company will take no action that would encumber
            or restrict the Shares or their sale or transfer, except actions to
            enforce rights under this Agreement.

      8.9   Confidentiality.

            (a)   Agreement. Purchaser and Company have entered into and remain
                  bound by the Confidentiality Agreement attached as Exhibit
                  8.9. Each party will comply with its obligations under the
                  Confidentiality Agreement.

            (b)   Press Release. Company acknowledges that Purchaser will make a
                  public announcement of the transactions contemplated in this
                  Agreement immediately after execution of the Agreement. Such
                  an announcement, and later announcements required by
                  applicable securities laws, will not be a violation of
                  Purchaser's confidentiality obligations.

            (c)   Communication Plans. The parties will develop, and
                  cooperatively implement, communication plans to disclose the
                  planned acquisition of Shares by Purchaser and its
                  consequences and benefits to Company's employees and
                  customers.

      8.10  Investigations. Upon reasonable notice and during regular business
            hours, Company will give Purchaser and Purchaser's attorneys,
            accountants and other representatives:

            (a)   access to Company's officers, directors, employees,
                  independent contractors, counsel, and independent accountants;

            (b)   access to Company's Properties, Contracts, and Books;

            (c)   copies of Company documents to the extent Purchaser reasonably
                  requests; and

            (d)   all other information ("Information") Purchaser reasonably
                  requests with respect to the affairs of Company.

            Information that Company supplies to Purchaser or its attorneys,
            accountants or other representatives is subject to the
            Confidentiality Agreement. Company does not assume responsibility
            for the accuracy or completeness of the Information except and to
            the extent specifically provided in this Agreement. The Information,
            and Purchaser's investigation, does not affect Purchaser's right to
            rely on the representations and warranties made in this Agreement.

                                       20
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

9.    LIMITATIONS ON DISPOSITION. The Purchaser agrees not to make any
      disposition of all or any portion of the Common Stock (i) other than
      pursuant to this paragraph 9 hereof or Rule 144 (defined below), or (ii)
      unless the transferee has agreed in writing for the benefit of the Company
      to be bound by this Section 9 and:

            (a)   There is then in effect a Registration Statement under the Act
                  covering such proposed disposition and such disposition is
                  made in accordance with such Registration Statement; or

            (b)   The Purchaser shall have notified the Company of the proposed
                  disposition and shall have furnished the Company with a
                  detailed statement of the circumstances surrounding the
                  proposed disposition, and (ii) the Purchaser shall have
                  furnished the Company with an opinion of counsel, reasonably
                  satisfactory to the Company, that such disposition will not
                  require registration of such shares under the Act (defined
                  below). It is agreed that the Company will not require
                  opinions of counsel for transactions made pursuant to Rule 144
                  (defined below) or for transfers to affiliates of the
                  Purchaser.

10.   "MARKET STAND-OFF" AGREEMENT. The Purchaser hereby agrees that, during the
      period of duration specified by the Company and an underwriter of Common
      Stock or other securities of the Company, following the effective date of
      a registration statement of the Company filed under the Act, it shall not,
      to the extent requested by the Company and such underwriter, directly or
      indirectly sell, offer to sell, contract to sell (including, without
      limitation, any short sale), grant any option to purchase or otherwise
      transfer or dispose of (other than to donees who agree to be similarly
      bound) any securities of the Company held by it at any time during such
      period except Common Stock included in such registration; provided,
      however, that:

            (a)   such agreement shall be applicable only to the first such
                  registration statement of the Company which covers Common
                  Stock to be sold on its behalf to the public in an
                  underwritten offering;

            (b)   all officers and directors of the Company and all other
                  persons which hold greater than five percent (5%) of the
                  Company's equity securities enter into similar agreements or
                  are similarly bound; and

            (c)   such market stand-off time period shall not exceed 180 days
                  from the effective date of the registration statement.

            In the event that any officer, director, or holder of greater than
            five percent (5%) of the Company's equity securities is released
            from the restrictions set forth in this Section 4 prior to the end
            of the 180 day maximum market stand-off time period, than all
            Stockholders shall similarly be released on a pro rata basis to the
            same extent as such officer, director, or holders of greater than
            five percent (5%) of the Company's equity securities. In order to
            enforce the foregoing covenant,

                                       21
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            the Company may impose stop-transfer instructions with respect to
            the Registrable Securities of the Purchaser (and the shares or
            securities of every other person subject to the foregoing
            restriction) until the end of such period.

            Notwithstanding the foregoing, the obligations described in this
            Section 10 shall not apply to a registration relating solely to
            employee benefit plans on Form S-l or Form S-8 or similar forms
            which may be promulgated in the future, or a registration relating
            solely to a Commission Rule 145 transaction on Form S-14 or Form
            S-15 or similar forms which may be promulgated in the future.

11.   RESTRICTED SECURITIES. The Purchaser understands that the shares of Common
      Stock it holds are characterized as "restricted securities" under the
      federal securities laws inasmuch as they were acquired from the Company in
      a transaction not involving a public offering and that under such laws and
      applicable regulations such securities may be resold without registration
      under the Securities Act of 1933, as amended (the "Act"), only in certain
      limited circumstances. In this connection, each Investor represents that
      it is familiar with SEC Rule 144 ("Rule 144"), as presently in effect, and
      understands the resale limitations imposed thereby and by the Act.

12.   LEGENDS. It is understood that the certificates evidencing the Common
      Stock issuable may bear one or all of the following legends:

                                       22
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            (a)   "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
                  SECURITIES ACT OF 1933. THEY MAY NOT BE SOLD, OFFERED FOR
                  SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION
                  STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH
                  ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
                  COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD
                  PURSUANT TO RULE 144 OF SUCH ACT."

            (b)   Any legend required by any applicable state or federal
                  securities laws.

            The Company further agrees, at the request of the Purchaser, to
            remove any of the foregoing legends at such time as they are no
            longer applicable.

13.   CONDITIONS TO EACH PARTY'S OBLIGATIONS. No party is obligated to close the
      transactions contemplated by this Agreement unless the following
      conditions are satisfied on or before the Closing Date:

      13.1  Board Approval. Company's board of directors must approve the
            transaction contemplated by this Agreement and recommend it to the
            Stockholders.

      13.2  Consent of Stockholders. The Stockholders, including the Series A
            and Series B preferred stockholders, must approve the transaction
            contemplated by this Agreement and must waive or surrender any
            liquidation preferences, anti-dilution rights, preemptive rights, or
            other restrictions that would limit or impair the transaction
            contemplated by this Agreement. This approval must include the
            approval of the Series A and Series B preferred stockholders to the
            conversion of their shares into shares of common stock. With the
            prior written approval of Purchaser, Company may amend its
            certificate of incorporation and bylaws as necessary to give effect
            to such waiver or surrender of Stockholder rights.

      13.3  Consents and Approvals. All Governmental consents and approvals
            required pursuant to Section 13.1 must have been obtained.

      13.4  Proceedings. No proceeding seeking to enjoin or prohibit, and no
            Order enjoining or prohibiting, the consummation of the transactions
            contemplated by this Agreement may be in effect.

14.   CONDITIONS TO PURCHASER'S OBLIGATIONS. Purchaser is not obligated to close
      the transactions contemplated by this Agreement unless the following
      conditions are satisfied (or waived by Purchaser) on or before the Closing
      Date:

      14.1  Accuracy of Representations and Warranties. The representations and
            warranties of Company in Section 6 of this Agreement must be true
            and correct, both when made and on the Closing Date.

                                       23
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

      14.2  Right of Purchase Agreement. Company and Stockholders holding at
            least *** of the capital stock of Company on a full-diluted basis
            must have executed and delivered a Right of Purchase Agreement in
            substantially the form of Exhibit 10.2 (the "Right of Purchase
            Agreement") providing for the right of Purchaser to acquire
            Company's remaining shares and Security Rights.

      14.3  Performance of Obligations and Delivery of Documents. Company must
            have:

            (a)   performed all covenants, agreements, and obligations required
                  of it by this Agreement; and

            (b)   executed and delivered to Purchaser all documents required to
                  be delivered at or prior to the Closing, including this
                  Agreement.

      14.4  Opinion of Counsel. Purchaser must have received an opinion of
            Company's counsel, dated as of the Closing Date, substantially in
            conformance with the form of opinion attached as Exhibit 14.4.

      14.5  Certificate. Company must deliver to Purchaser a certificate, in the
            form attached as Exhibit 14.5, that the conditions stated in this
            Section 10 have been fulfilled.

15.   CONDITIONS TO COMPANY'S OBLIGATIONS. Company is not obligated to close the
      transactions contemplated by this Agreement unless the following
      conditions are satisfied (or waived by Company) on or before the Closing
      Date:

      15.1  Accuracy of Representations and Warranties. The representations and
            warranties of Purchaser in Section 7 of this Agreement must be true
            and correct, both when made and on the Closing Date.

      15.2  Right of Purchase Agreement. Purchase must have executed and
            delivered the Right of Purchase Agreement.

      15.3  Performance of Obligations and Delivery of Documents. Purchaser must
            have:

            (a)   performed all covenants, agreements, and obligations required
                  of it by this Agreement; and

            (b)   executed and delivered to Company all documents required to be
                  delivered at or prior to the Closing.

      15.4  Opinion of Counsel. Company must have received an opinion of
            Purchaser's counsel, dated as of the Closing Date, substantially in
            conformance with the form of opinion attached as Exhibit 11.3.

      15.5  Certificate. Purchaser must deliver to Company a certificate, in the
            form attached as Exhibit 11.4, that the conditions stated in this
            Section 11 have been fulfilled.

16.   OBLIGATIONS AT AND AFTER CLOSING.

                                       24
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

      16.1  Company Deliveries. At the Closing, Company will deliver to
            Purchaser:

            (a)   Certificates for the Shares;

            (b)   an Employment and Non-Competition Agreement in the form of
                  Exhibit 5.1 executed by Company and each Key Employee; and

            (c)   all documents required to be delivered to Purchaser under this
                  Agreement including this Agreement and all other documents
                  identified in Section 14.

      16.2  Purchaser Deliveries. At the Closing, Purchaser will deliver to
            Company:

            (a)   the Closing Payment; and

            (b)   all other documents required to be delivered to Company under
                  this Agreement including this Agreement and all other
                  documents identified in Section 15.

      16.3  Board of Directors. From and after the Closing, the board of
            directors of Company will have *** members:

            (a)   ***; and

            (b)   ***.

            Company will take all steps necessary, including amending its
            certificate of incorporation and bylaws, as appropriate, to cause
            the board of directors to be constituted in such manner. Purchaser
            and each Stockholder will agree, in the Right of Purchase Agreement,
            to vote their shares for this board of directors in each election of
            directors held within *** after the Closing Date.

      16.4  Administrative Services. After the Closing, Purchaser will assume
            responsibility to support Company's finance and administration
            requirements. Company will pay a reasonable fee to support
            Purchaser's implementation of Oracle and other administrative
            services for Company.

17.   TERMINATION.

      17.1  Rights to Terminate. A party may terminate this Agreement at any
            time before the Closing:

            (a)   by mutual written consent of Company and Purchaser;

            (b)   by written notice to the other parties if the Closing has not
                  occurred on or before October 14, 2002;

            (c)   by written notice to Company if Company fails to offer
                  Purchaser its first right of refusal as provided in Section
                  17.3(a); or

                                       25
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            (d)   by written notice to the other party if:

                  (1)   a material representation or warranty of the other party
                        was or has become inaccurate or untrue (except that, if
                        the misrepresentation or breach is curable then this
                        Agreement will not terminate until the responsible party
                        has failed for 10 days after notice to cure the
                        misrepresentation or breach); or

                  (2)   the other party has failed to comply with or perform
                        under this Agreement (except that, if the
                        misrepresentation or breach is curable then this
                        Agreement will not terminate until the responsible party
                        has failed for 10 days after notice to cure the
                        misrepresentation or breach).

      17.2  Effect of Termination. If this Agreement is terminated, neither
            party will have any liability or further obligation except for the
            Break-Up Fee established in Section 17.3(b) below, unless the
            termination was a result of a party's (a) breach, (b) violation of
            its duties, obligations, representations, or warranties, or (c)
            fraud, bad faith, or willful misconduct. The Confidentiality
            Agreement will survive any termination and govern the parties'
            obligations with respect to Information and confidentiality.

      17.3  First Right of Refusal and Break-Up Fee.

            (a)   First Right of Refusal. Until the Closing, Company may engage
                  in negotiations with, or otherwise market itself or the
                  Business to, other potential buyers or investors on the
                  following terms:

                  (1)   If Company receives a firm offer to buy all or
                        substantially all of Company's assets, or to acquire at
                        least a majority of the fully-diluted capital stock of
                        Company, Company must give Purchaser a first right of
                        refusal to purchase the assets or acquire such stock on
                        the terms proposed by the offeror.

                  (2)   Upon receipt of written notice from Company specifying
                        the offeror and the proposed terms, Purchaser will have
                        15 days in which to elect to exercise it first right of
                        refusal by providing written notice of such election to
                        Company. If Purchaser exercises its first right of
                        refusal, the closing will take place at the time and
                        place specified in Section 3.

                  (3)   If Purchaser fails to provide notice, Purchaser will
                        have elected not to exercise its first right of refusal
                        and Company or the Stockholders may proceed to sell the
                        assets or capital stock within 90 days after the date
                        Purchaser received notice of the proposed transaction on
                        terms no more favorable to the offeror than set forth in
                        the notice of the offer given to Purchaser.

                                       26
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                  (b) Break-Up Fee. If this Agreement is terminated by Purchaser
                      pursuant to Section 17.1(c), then Company will pay to
                      Purchaser a Break-Up Fee in the amount of $***, and will
                      reimburse Purchaser's due diligence and other expenses
                      incurred in connection with the transaction contemplated
                      by this Agreement up to $***, within two business days of
                      the termination date.

18.      INDEMNIFICATION.

         18.1     By Purchaser. Purchaser will indemnify Company from, and will
                  pay on its behalf, all Loss (whether or not resulting from
                  third party claims) incurred as a result of any untrue
                  representation made by Purchaser, any breach of warranty by
                  Purchaser, or non-fulfillment of any of Purchaser's covenants
                  or agreements stated in this Agreement.

         18.2     By Company. Company will indemnify and hold harmless Purchaser
                  from, and will pay on its behalf, all Losses incurred as a
                  result of any untrue representation made by Company, any
                  breach of warranty made by Company, or non-fulfillment of any
                  covenant or agreement of Company in this Agreement to be
                  performed at or prior to Closing.

                  (a) Deductible. Except as otherwise provided in this
                      Agreement, Company will have no obligation to indemnify
                      Purchaser under this Section 18.2 unless the Losses
                      suffered exceed $*** in the aggregate (and then only to
                      the extent of the excess).

                  (b) Liability Limit. The aggregate liability of Company under
                      this Section 18.2 will not exceed *** of the Purchase
                      Price except in the case of Losses resulting from
                      Company's fraud or willful misrepresentation (in which
                      case the liability will be the amount of Loss resulting
                      from Company's fraud or willful misrepresentation). The
                      obligations of Company under this Section 14.2 are subject
                      to Section 19 below.

         18.3     Procedure.

                  (a) Notice and Assumption of Defense. Promptly after an
                      indemnified party receives notice of any potential Loss,
                      the party must give notice in writing to the indemnifying
                      party. The indemnifying party must assume the defense of
                      the Loss and the indemnified party will reasonably
                      cooperate in connection with such defense.

                  (b) Payment of Defense Costs. If the indemnified party
                      reasonably determines that separate counsel is necessary
                      (whether due to the existence of different defenses,
                      potential conflicts of interest or otherwise), or if the
                      indemnifying party does not assume the defense, then the
                      indemnified party may employ separate counsel, and the
                      indemnifying party will pay such counsel's reasonable fees
                      and disbursements as incurred.

                                       27
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            (c)   Settlement. An indemnifying party is not obligated to
                  reimburse the costs of a settlement unless it has agreed to
                  the settlement. An indemnifying party may not settle a claim
                  unless the indemnified party consents, but if an indemnified
                  party does not consent to a settlement agreed to by the
                  opposing party and the indemnifying party, then the
                  indemnifying party's indemnification obligation will not
                  exceed (1) the amount of the agreed settlement plus (2)
                  expenses incurred before the settlement could have been
                  effected.

19.   EXPIRATION OF REPRESENTATIONS AND WARRANTIES. All representations and
      warranties made by the parties in this Agreement, or in any instrument or
      document furnished in connection with this Agreement, will survive the
      Closing and any investigation at any time by or on behalf of the parties
      as provided in this Section.

      19.1  Survival of Certain Representations and Warranties. The
            representations and warranties set forth in Section 6 and Section 7
            will survive only until six months after the Closing Date except to
            the extent that prior to that time one or more claims is submitted
            in writing to the indemnified party and identified as a claim for
            indemnification pursuant to this Agreement.

      19.2  Limit on Claims. A party may maintain a claim or action for
            indemnity under Section 14 after the expiration of the
            representation or warranty only if the party made the claim in
            writing before expiration.

      19.3  Exclusive Remedy. The indemnification provided by Company in Section
            18.2 is Purchaser's exclusive remedy for breach of any
            representation, warranty or covenant by Company, except that nothing
            in this Section limits Purchaser's remedies against an officer or
            director of Company in respect of fraud, intentional
            misrepresentations, or intentional omissions engaged in personally
            by such officer or director.

20.   NOTICES. Notices under this Agreement must be in writing. Notices are
      deemed given:

      -     when personally delivered;

      -     when received by facsimile, e-mail, or overnight courier service; or

      -     on the fifth business day after mailing by first class registered
            mail, return receipt requested.

      Notices must be sent to the parties at the addresses stated on the
      signature page of this Agreement (or at any other address designated in a
      notice given by a party to change its address).

21.   CERTAIN COSTS.

      21.1  Costs of Proceedings. In any Proceeding arising under or related to
            this Agreement the prevailing party is entitled, in addition to
            other amounts it

                                       28
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            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            recovers, to have the other party pay all costs and expenses
            (including reasonable attorneys' fees) incurred in connection with
            the Proceeding.

      21.2  Expenses. Each party is solely responsible for its own expenses
            relating to the preparation, execution, and consummation of this
            Agreement and the transactions contemplated by this Agreement,
            except that expenses are recoverable as part of the damages owed by
            a party whose failure to perform its obligations results in the
            termination of this Agreement.

      21.3  Finders' Fees. Each party represents that it neither is nor will be
            obligated for any finders' fee or commission in connection with this
            transaction. The Purchaser agrees to indemnify and to hold harmless
            the Company from any liability for any commission or compensation in
            the nature of a finders' fee (and the costs and expenses of
            defending against such liability or asserted liability) for which
            the Purchaser or any of its officers, partners, employees, or
            representatives is responsible. The Company agrees to indemnify and
            hold harmless the Purchaser from any liability for any commission or
            compensation in the natures of a finders' fee (and the costs and
            expenses of defending against such liability or asserted liability)
            for which the Company or any of its officers, employers, or
            representative is responsible.

22.   MISCELLANEOUS.

      22.1  Integration and Amendment. This Agreement, together with the
            Confidentiality Agreement, constitutes the entire agreement of the
            parties, and supersedes all prior agreements or understandings among
            the parties with respect to their subject matter. This Agreement may
            be amended only in a written agreement signed by each of the
            parties.

      22.2  Attorney's Fees. If any action in law or in equity (including
            arbitration) is instituted to enforce or interpret the terms of this
            Agreement, the prevailing party shall be entitled to reasonable
            attorney's fees, costs, and necessary disbursements in addition to
            any other relief to which such party may be entitled.

      22.3  Expenses. The Company and the Purchaser shall bear their own
            expenses incurred with respect to the negotiation, execution,
            delivery and performance of this Agreement and the transactions
            contemplated thereby.

      22.4  Titles and Subtitles. The titles and subtitles used in this
            Agreement are used for convenience only and are not to be considered
            in construing or interpreting this Agreement.

      22.5  Waivers. No waiver under this Agreement is valid unless it is in
            writing and signed by the party giving the waiver. A waiver of a
            particular matter does not waive a subsequent or similar matter.

      22.6  Binding Effect. This Agreement is binding upon, and inures to the
            benefit of, each party and its successors and assigns.

                                       29
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            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

      22.7  No Benefit to Others. This Agreement is solely for the benefit of
            the parties (and their successors and assigns) and does not confer
            any rights on any other persons.

      22.8  Severability. The invalidity or unenforceability of any provision of
            this Agreement does not affect the other provisions. This Agreement
            is to be construed in all respects as if it excluded any invalid or
            unenforceable provision.

      22.9  Construction and Headings. Whenever a singular word is used in this
            Agreement it also includes the plural if required by the context,
            and vice versa. Paragraph headings are for convenience only and do
            not define or limit the contents of a paragraph.

      22.10 Cooperation. In order to carry out this Agreement, each party will
            cooperate, will take further action, and will execute and deliver
            further documents as reasonably requested by the other party.

      22.11 Counterparts. This Agreement may be executed in one or more
            counterparts, all of which taken together are one original.

      22.12 Governing Law. This Agreement is governed by the internal Laws of
            Delaware. Exclusive jurisdiction and venue for any litigation
            arising under this Agreement is in the federal and state courts
            located in Wilmington, Delaware.

                    [Signature Page is on the following page]

                                       30
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            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

EFFECTIVE DATE. This Agreement is executed and effective as of October __, 2002.

                                    SIMPLEDEVICES, INC., a Delaware corporation

                                    By:        ______________________________
                                               Louis S. Hughes, III,
                                               President, CEO and Co-Founder

                                    Address:   Bay View Plaza
                                               2121 El Camino Real, 2nd Floor
                                               San Mateo, CA  94403

                                    ROCKFORD CORPORATION, an Arizona corporation

                                    By:        ______________________________
                                    Name:      W. Gary Suttle
                                    Its:       President and CEO

                                    By:        ______________________________

                                    Name:      ______________________________
                                    Its:       Secretary

                                    Address:   546 South Rockford Drive
                                               Tempe, AZ 85281

                                    Phone:     (480) 967-3565
                                    Facsimile: (480) 967-8132
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                                    Exhibit 2

                              Capitalization Table
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                                   Exhibit 5.1
                    Employment and Non-Competition Agreement

                              EMPLOYMENT AGREEMENT

            This Agreement is between SimpleDevices, a Delaware corporation,
("Simple") and *** ("Employee"). Simple and Employee agree as follows:

1.    RECITALS.

      1.1   Simple's Business. Simple's principal business is the design,
            manufacture, and sale of wireless electronic systems for the
            delivery of Internet and personal computer content to audio and
            other electronic devices and systems. Rockford Corporation, an
            Arizona Corporation, has purchased a *** ownership interest in
            Simple in order to finance the continued development of Simple's
            business.

      1.2   Employee Experience. Employee has worked for Simple to develop
            Simple's business and was an officer of Simple before Rockford
            bought its shares of Simple.

      1.3   Agreement for Employment. In connection with Rockford's purchase of
            Simple, Rockford recognizes Employee's continued contribution to
            Simple's growth and desires to have Simple enter into an employment
            agreement with Employee.

      1.4   Agreement Purpose. This Agreement states the terms of Simple's
            continued employment of Employee.

2.    EMPLOYMENT. Simple employs Employee and Employee accepts employment,
      subject to the terms and conditions of this Agreement.

3.    TITLE AND DUTIES.

      3.1   Title and Reporting. Employee will serve as Simple's *** ("***").
            Employee will have the responsibilities and duties assigned by, and
            will report to the person designated by Simple's Board of Directors.

      3.2   Initial Duties. Employee's initial duties are to:

            (a)   serve in the office designated above, focusing on development
                  of Simple's business and technology;

            (b)   participate as a member of Simple's management group with
                  duties as assigned by Simple's Board of Directors;

            (c)   participate with other members of the Simple management team,
                  responsible to Simple's Board of Directors, to:
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                  (1)   direct all aspects of Simple's business activities and
                        ensure the adequacy and soundness of its financial
                        structure, operations, employee relations, and short and
                        long-range growth;

                  (2)   establish Simple's overall objectives, policies, and
                        plans;

                  (3)   develop new business; and

                  (4)   develop programs to encourage successful future
                        management.

      3.3   No Reduction of Duties; Limitation on Moves. Simple may not change
            Employee's duties in a manner that would substantially reduce
            Employee's responsibilities for management of Simple's business
            unless Employee consents to the change. Simple may not require
            Employee to move to a location outside the Silicon Valley area
            unless Employee consents.

4.    COMPENSATION.

      4.1   Base Compensation. Simple will pay Employee a base salary of $***
            gross per month. Simple will pay Employee using its regular payroll
            practices. Payments are subject to the normal and regular deduction
            of Employee's portion of withholding tax, workers' compensation and
            unemployment tax, and other lawful deductions in the state where
            Employee is located.

      4.2   Changes of Compensation. After the first year of the Agreement,
            Simple and Employee will meet and adjust Employee's compensation to
            take account of changes in the cost of living and of Employee's
            duties for and performance at Simple. Simple's Board of Directors
            may increase Employee's compensation in excess of the cost of
            living, at its discretion.

5.    TERM AND TERMINATION.

      5.1   Employment Term. The period of Employee's employment pursuant to
            this Agreement is for a term commencing on the effective date of
            Rockford's purchase of Simple shares and expiring 4 years
            thereafter, unless terminated earlier pursuant to Paragraph 5.2
            below.

      5.2   Termination. Either party may terminate Employee's employment
            pursuant to this Agreement and the Employment Term provided for
            herein (a) for any reason at any time by giving 30 days' written
            notice of termination or (b) for Cause or Good Reason by giving
            written notice of termination. Termination will not affect the
            obligations of Employee and Simple which survive termination.

            (a)   For all purposes under this Agreement, "Cause" for termination
                  means:

                  (1)   Employee's indictment, conviction or plea of guilty to
                        any act or acts constituting a felony under the laws of
                        the United States, any

                                       3
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                        state or any foreign jurisdiction,

                  (2)   Employee's failing or refusing, after a 30-day written
                        notice from Simple and an opportunity for Employee to
                        cure, to comply in a material respect with Simple's
                        policies, written or otherwise, or with the material
                        duties and obligations imposed under this Agreement,

                  (3)   any act by Employee that is unlawful or brings Simple
                        into disrepute unless Employee believed in good faith
                        that the act was lawful and not opposed to Simple's best
                        interests, or

                  (4)   any act by Employee involving theft or dishonesty and
                        affecting $1,000 or more of Simple's property.

            (b)   For all purposes under this Agreement, "Good Reason" for
                  termination means:

                  (1)   relocation of Simple's executive offices more than forty
                        (40) miles from the Silicon Valley area, without
                        Employee's concurrence;

                  (2)   any material breach by Simple of any provision of this
                        Agreement and Simple's failure, after notice to Simple
                        and Rockford, to cure the breach within 30 days of the
                        notice;

                  (3)   any reduction in Employee's base salary or any material
                        reduction in his total compensation or benefit package,
                        without Employee's concurrence; or

                  (4)   any material reduction in Employee's job duties without
                        Employee's concurrence.

      5.3   Continuation of Base Compensation and Medical Insurance. If

            (a)   Simple terminates Employee's employment for Cause,

            (b)   Employee resigns his employment without Good Reason, or

            (c)   Employee dies or becomes permanently disabled

            then Employee will not be entitled to any additional compensation or
other rights or benefits from Simple, and Simple shall be obligated to pay
Employee only that portion of his base salary that he has earned prior to the
termination date. If Employee's employment is terminated for any other reason,
subject to Employee executing and not revoking a general release of claims with
Simple in the form attached as Exhibit A, then Simple will continue (1) to pay
Employee his base compensation under section 4.1 for the longer of (a) the
remaining term of this Agreement or (b) six months and (2) to provide medical
insurance comparable to that

                                       4
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

provided on the termination date for 6 months after the termination of
Employee's employment.

6.    BENEFITS AND POLICIES.

      6.1   Benefit Plans. In addition to the compensation described above,
            Employee may participate in all fringe benefit plans made available
            to Simple employees located at Simple's location. To the extent
            permitted by law and the applicable benefit plans, Employee will be
            credited with time of service based on continuous periods of
            employment for Simple.

      6.2   Leave. Employee may take reasonable vacation, holiday, and sick
            leave, subject to Simple's reasonable limits and procedures as
            applied to all Simple employees. For purposes of computing the
            amount of leave available to Employee, Employee will be credited
            with time of service based on all prior periods of employment for
            Simple. Employee must adjust his vacation and holiday schedule as
            necessary to satisfy Simple's reasonable business needs.

      6.3   Expenses. Simple will reimburse Employee for reasonable expenses
            incurred in connection with Employee's employment, on a basis
            consistent with Simple's reimbursement of other employees and
            subject to Simple's right to approve all expenses in advance. Simple
            may adopt reasonable policies for reimbursement of expenses, may
            require receipts or other appropriate evidence of each expense, and
            may review the reasonableness of each expense.

      6.4   Employee Policies and Procedures. All other terms of Employee's
            employment will be governed by Simple's employee policies and
            procedures. Simple reserves the right unilaterally to amend the
            employee policies and procedures, from time to time, and Employee
            will be subject to changes made so long as they are applied to all
            Simple employees at Employee's location.

      6.5   Stock Options. Employee will participate in Simple's stock option
            plan on the same basis as other Simple management employees.
            Simple's Board of Directors will determine the amount and terms of
            options awarded to Employee. All options are subject to the terms of
            the plan.

            (a)   In the event Simple terminates Employee's employment other
                  than for Cause or Employee resigns his employment for Good
                  Reason, 50% of Employee's then unvested options shall vest in
                  full.

            (b)   In the event Employee's employment is terminated other than
                  for Cause within 12 months of a Change in Control, 100% of
                  Employee's then unvested options shall vest in full.

            (c)   For all purposes under this Agreement, a "Change in Control"
                  shall mean:

                                       5
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            (1) a merger or consolidation of Simple, in which the stockholders
            of Simple do not control 50% or more of the total voting power of
            the surviving entity (other than a mere reincorporation merger); or

            (2) the sale, transfer or other disposition of all or substantially
            all of Simple's assets in liquidation or dissolution of Simple.

      6.6   No Car. Employee acknowledges that Simple policy is not to provide a
            company car to any employee.

7.    NON-COMPETITION. During:

            (a)   the term of this Agreement and for one year after this
                  Agreement terminates or expires; and

            (b)   any period after the term when Employee is receiving payments
                  of base compensation (but Employee may elect to terminate
                  payments of base compensation to terminate this period)

            Employee will not engage in, plan for, organize, work for, or
            assist, directly or indirectly, any business that develops,
            manufactures, or distributes wireless electronic systems for the
            delivery of Internet and personal computer content to audio and
            other electronic devices and systems.

8.    CONFIDENTIAL INFORMATION. During and after the term of Employee's
      employment, Employee will keep confidential, and will not reproduce, copy
      or disclose to any other person or firm, all trade secrets and other
      proprietary or confidential information and data concerning Simple,
      Rockford, or their businesses ("Confidential Information"). Employee will
      not, during or after the term of this Agreement, use (either alone or with
      others), disclose to any person, or encourage anyone else to disclose any
      Confidential Information except within the scope of Employee's duties and
      responsibilities for Simple and Rockford or with Simple's consent.

9.    RETURN OF SIMPLE DOCUMENTS. Upon termination of this Agreement, Employee
      will return to Simple all records and documents of or pertaining to Simple
      or Rockford (including, but not limited to, customer lists, names, or
      addresses). Employee will not make, retain, or give to any other person
      any copy or extract of any such record or document. "Record" includes but
      is not limited to, information stored on computer.

10.   NON SOLICITATION. During the term of Employee's employment and for one
      year thereafter, Employee will not solicit, or assist others to solicit,
      any persons who were, at any time during the term of Employee's
      employment, employed by, customers of, or solicited to become customers of
      Simple or Rockford.

11.   ACTIONS. Employee acknowledges that it would be difficult to determine
      damages, and Simple will not have an adequate remedy at law, if Employee
      breaches this Agreement. Accordingly, if Employee

                                       6
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

      breaches this Agreement, Simple may seek injunctive relief to enforce this
      Agreement. Nothing in this section limits or excludes any and all other
      rights, including rights to money damages, granted to Simple in law or
      equity.

12.   REFORMATION AND SEVERABILITY. If a section of this Agreement is deemed
      unreasonable as to time or scope by any court or arbitrator, then such
      court or arbitrator may modify the section so that it is reasonable and
      must then enforce the section as modified. If a section of this Agreement
      is deemed unreasonable by a court or arbitrator and cannot be modified so
      that it is reasonable, such section is severable from the remainder of
      this Agreement, which must be enforced according to its terms.

13.   NON-DELEGABILITY OF EMPLOYEE'S RIGHTS. The obligations, rights and
      benefits of Employee under this Agreement are personal and may not be
      delegated, assigned, or transferred without written consent from Simple.

14.   ASSIGNMENT BY SIMPLE. Simple may assign its rights under this Agreement to
      another business that (1) is controlled by or affiliated with Simple or
      (2) acquires Simple or the assets of Simple used in connection with
      Employee's employment. After any such assignment all references in this
      Agreement to "Simple" will, where appropriate, be deemed to refer to the
      assignee.

15.   NOTICES. Notices under this Agreement must be in writing and are effective
      upon delivery or three days after mailing, certified or registered mail,
      return receipt requested, to the party's addresses stated on the signature
      page of this Agreement. A party may change its address by giving the other
      party notice of the change.

16.   ENTIRE AGREEMENT AND AMENDMENT. This Agreement is the entire agreement of
      the parties with respect to Employee's employment and may be amended only
      by a written document signed by both parties.

20.   GOVERNING LAW. Delaware law, excluding Delaware law relating to conflicts
      of laws, will govern this Agreement.

21.   ATTORNEYS' FEES. In any proceeding arising out of this Agreement, the
      prevailing party is entitled to reasonable attorneys' fees, costs and
      other expenses incurred in connection with such proceeding.

22.   ARBITRATION. If the parties cannot resolve a dispute arising out of this
      Agreement or out of Employee's employment, they will submit it to binding
      arbitration in metropolitan Phoenix, Arizona. The arbitration will be
      before a single arbitrator, or, if the parties cannot agree upon a single
      arbitrator, before a panel of three arbitrators, one selected by each
      party (within 10 days after notice of a dispute and failure to agree upon
      a single arbitrator) and a third appointed by the arbitrators selected by
      the parties. The rules for commercial arbitration of the American
      Arbitration Association, as amended to the date of the proceedings,

                                       7
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

      will govern selection of arbitrators and all arbitration proceedings. Any
      court having jurisdiction may enter judgment upon the award. The
      arbitrators must render a decision within 30 days after their appointment
      and may award the costs of arbitration as they see fit.

23.   EXECUTION AND EFFECTIVE DATE. This Agreement is executed on October 15,
      2002 and is effective as of October 1, 2002.

                                     SIMPLEDEVICES, INC., a Delaware corporation

                                     By:       _________________________________
                                               Louis S. Hughes, III,
                                               President and CEO

                                     Address:  Bay View Plaza
                                               2121 El Camino Real, 2nd Floor
                                               San Mateo, CA  94403

                                     EMPLOYEE

                                     By:       _________________________________

                                     Name:     ***

                                     Address:  ***

                                       8
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                          [Exhibit A - Form of Release]

                          GENERAL RELEASE OF ALL CLAIMS

            In consideration of the severance benefit to be paid to me by
SimpleDevices in accordance with the Employment Agreement entered into as of
((Date)), I hereby fully and forever release and discharge SimpleDevices and its
directors, officers, employees, agents, successors, predecessors, subsidiaries,
shareholders, employee benefit plans and assigns (together the "Company"), from
all claims and causes of action arising out of or relating in any way to my
employment with the Company, including the termination of my employment.

            1. I understand and agree that this RELEASE is a full and complete
waiver of all claims, known and unknown, including (without limitation) claims
of wrongful discharge, breach of contract, breach of the covenant of good faith
and fair dealing, violation of public policy, defamation, personal injury or
emotional distress and claims under Title VII of the Civil Rights Act of 1964,
as amended, the Fair Labor Standards Act, the Equal Pay Act of 1963, the
Americans with Disabilities Act, the Civil Rights Act of 1866, the Age
Discrimination in Employment Act of 1967, as amended (ADEA), the California Fair
Employment and Housing Act, the Family and Medical Leave Act or any federal or
state law or regulation relating to employment or employment discrimination. I
further understand and agree that this RELEASE is a full and complete waiver of
all claims, including (without limitation) claims under the Employee Retirement
Income Security Act of 1974 (ERISA) related to severance benefits. I further
understand that by this RELEASE I agree not to assist, encourage, institute or
cause to be instituted the filing of any administrative charge or legal
proceeding against the Company relating to employment discrimination.

            2. I also hereby agree that nothing contained in this RELEASE shall
constitute or be treated as an admission of liability or wrongdoing by me or the
Company. This RELEASE does not relieve the company of its obligations to comply
with the terms of the Employment Agreement, any stock option agreement or any
employee benefit plan or similar program in which I am a participant or eligible
for benefits.

            3. In addition, I hereby expressly waive any and all rights and
benefits conferred upon me by the provisions of Section 1542 of the Civil Code
of the State of California (or any analogous law of any other state), which
states as follows:

            A general release does not extend to claims which the creditor does
            not know or suspect to exist in his favor at the time of executing
            the release, which, if known by him, must have materially affected
            his settlement with the debtor.

            4. I hereby acknowledge that I have read and understand the
foregoing RELEASE and that I sign it voluntarily and without coercion. I further
acknowledge that I was given an opportunity to consider and review this RELEASE
and to consult with an attorney of my own choosing concerning the waivers
contained in this RELEASE and that the waivers are knowing, conscious and with
full appreciation that I am forever foreclosed from pursuing any of the rights
that I waived.
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            5. I understand that I may have up to twenty-one (21) days after
receipt of this letter within which I may review and consider, discuss with an
attorney of my own choosing, and decide to execute or not execute it. I also
understand for a period of seven (7) days after I sign this RELEASE, I may
revoke this RELEASE and that the RELEASE will not become effective until seven
(7) days after I sign it, and only then if I do not revoke it. In order to
revoke this agreement, I must deliver to the Chairman of the Board of the
Company within seven (7) days after I have executed this RELEASE, a letter
stating that I ma revoking it. [Note: remove Section 5 if employee is under 40
years old.]

            6. I understand that if I choose to revoke this RELEASE within seven
(7) days after I signed it, I will not receive any severance benefit and the
RELEASE will have no effect. [Note: remove Section 6 if employee is under 40
years old.]

            7. Before signing my name to this RELEASE, I state that:

               -     I have read it,

               -     I understand it,

               -     I know that I am giving up important rights,

               -     I am aware of my right to consult an attorney before
                     signing it, and

               -     I have signed it knowingly and voluntarily.

Dated: _____________________________  Signature: _______________________________

                                       2
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                                   Exhibit 5.2
                               Invention Agreement

                               EMPLOYEE AGREEMENT

      In exchange for being employed (both past and future) by ROCKFORD
Corporation, its subsidiaries, affiliates, or successors ("ROCKFORD"), I agree
that while working for ROCKFORD:

            1. I have and will continue to perform my assigned duties, comply
            with all ROCKFORD instructions and regulations, and devote my best
            efforts to ROCKFORD's interests. I will not, without ROCKFORD's
            prior written consent, engage in any other job or activity
            detrimental to ROCKFORD's interests.

            2. I have and will continue to promptly disclose and do hereby
            assign to ROCKFORD my entire rights in all designs, trademarks,
            copyrights, discoveries, formulae, processes, manufacturing
            techniques, trade secrets, inventions, improvements, ideas or
            copyrightable works:

      (a)   related in any way to my work at ROCKFORD (whether or not during
            normal working hours);

      (b)   related in any way to ROCKFORD's business or to ROCKFORD's actual or
            demonstrably anticipated research or development; or

      (c)   aided by the use of ROCKFORD equipment, supplies, facilities or
            trade secret information.

      This disclosure and assignment is and will be made without additional
      compensation and solely in consideration of the compensation paid for my
      usual work. I am not conveying rights in designs, trademarks, copyrights,
      discoveries, formulae, processes, manufacturing techniques, trade secrets,
      inventions, improvements, ideas or copyrightable works I made prior to
      working for ROCKFORD which are identified in an attached sheet (which
      contains no confidential information). I understand that I am not required
      to assign any design, trademark, copyright, discovery, formula, process,
      manufacturing technique, trade secret, invention, improvement, idea or
      copyrightable work where:

      (1)   no ROCKFORD equipment, supplies, facilities or trade secret
            information were used;

      (2)   the invention was developed entirely on my own time;

      (3)   the invention does not relate to ROCKFORD's business or to
            ROCKFORD's actual or demonstrably anticipated research or
            development; and

      (4)   the invention does not result from my ROCKFORD work.

            3. I will during and after my ROCKFORD employment, do whatever is
            requested by ROCKFORD, at its expense to sign documents or otherwise
            assist in obtaining and enforcing ROCKFORD's rights throughout the
            world in the assigned items.

            4. I have and will continue to hold in confidence and not use or
            disclose without ROCKFORD's written authorization any confidential
            information (technical or otherwise) I obtain or create during the
            period of my employment. Confidential
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            information includes all information that pertains to any aspect of
            ROCKFORD's business and is either:

      (a)   unknown to actual or potential competitors of ROCKFORD; or

      (b)   proprietary information of ROCKFORD, its customers or suppliers.

                  I will hold this information in confidence until it becomes
                  generally known (other than through breaches of this agreement
                  or other similar agreements) or until three (3) years from the
                  date of my termination, whichever is earlier. I will not make
                  unauthorized copies of such information and will return to
                  ROCKFORD upon my termination or upon ROCKFORD's request, all
                  tangible forms of such information including drawings,
                  computerized data or programs, specifications, documents,
                  devices, models or any other material.

            5. I represent that I have not brought and will not bring or use in
            the performance of my duties at ROCKFORD any proprietary or
            confidential information (whether or not in writing) of a former
            employer without that employer's written authorization.

            6. This agreement (a) survives my employment by ROCKFORD, (b) does
            not in any way restrict my right or the right of ROCKFORD to
            terminate my employment, (c) inures to the benefit of successors and
            assigns to ROCKFORD, and (d) is binding upon my heirs and legal
            representatives.

            7. I certify that to the best of my information and belief, I am not
            a party to any other agreement which will interfere with my full
            compliance with this Agreement except as specifically identified
            below.

            8. I certify and acknowledge that I have carefully read all of the
            provisions of this Agreement and that I understand and will fully
            and faithfully comply with such provisions.

The effective date of this Agreement is the date my employment began at
ROCKFORD.

ROCKFORD                                        EMPLOYEE

By   ________________________________________   By _____________________________
     Jacque Mott, Director of Human Resources

                                                Printed Name____________________

2
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                                   Exhibit 8.9
                            Confidentiality Agreement

                         MUTUAL NON_DISCLOSURE AGREEMENT

      This Agreement is made and entered into by and between Simple Devices
having his principal place of business at Burlingame, CA and Rockford
Corporation having a place of business 600 South Rockford Drive, Tempe, Arizona
85281 ("Rockford").

      Rockford designs and manufactures audio products. Simple Devices is
engages in the business of software and services. The parties with to explore
the possibility of a possible business relationship ("the Activity").

      Rockford and Simple Devices each possess Confidential Information
pertaining to their respective software, technology and business practices. The
parties for their mutual benefit desire that certain information, including
Confidential Information, be disclosed in order that the parties may work
together to accomplish the Activity. The parties wish to define their rights
with respect to Confidential Information.

      Therefore the parties agree as follows:

Definition. Confidential Information shall mean information provided under this
Agreement to further the Activity, which the disclosing party reasonably
believes to be confidential or proprietary. Confidential Information shall be
marked in a fashion to alert a reasonable individual to its proprietary or
confidential status. Confidential Information may be transmitted in electronic,
written, visual, verbal or audio form and the markings shall be applied in a
fashion consistent with generally accepted practices related to the transmission
method used. Confidential Information which is disclosed by video, verbal or
audio means shall be identified as confidential at the time of its disclosure
and summarized and designated as confidential in writing within thirty (30) days
of the disclosure. Confidential Information shall not include information which:

      (i)   was rightfully in the Recipient's possession or was rightfully known
            to the Recipient without disclosure restrictions prior to its
            receipt from the Disclosing Party;

      (ii)  is or becomes public knowledge by acts other than those of the
            Recipient;

      (iii) is developed by the Recipient independent of the Confidential
            Information received under this Agreement;

      (iv)  is rightfully received by the Recipient, from a third party, without
            a duty of confidentiality;

      (v)   is disclosed under operation of law, provided the Disclosing Party
            has been
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            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            notified of the requirement prior to disclosure; or

      (vi)  is disclosed by the Recipient with the Disclosing Party's prior
            written approval

      Confidential Information shall not be deemed to be in the public domain
merely because any part of such information is embodied in general disclosures
by the party owning the Confidential Information or because individual features,
components or combinations are now or become known to the public.

Use of Confidential Information. The parties shall take reasonable precautions
to limit the disclosure of Confidential Information only to employees who are
necessary to accomplish the Activity. The Recipient of Confidential Information
shall not copy Confidential Information, in whole or in part, without the prior
written consent of the Disclosing Party and shall not divulge, in whole or in
part, such Confidential Information to any third party without the prior written
consent of the Disclosing Party. Neither party shall disclose to any third party
this Agreement, any provision of this Agreement or the substance of this
Agreement, without the prior written consent of the other party.

Limitation on Use. The parties shall have the right to utilize the Confidential
Information only for the purposes of the Activity. Neither party shall make any
other use, in whole or in part, of any Confidential Information without the
prior written consent of the other party.

Term and Termination. This Agreement shall terminate with respect to further
disclosures upon thirty (30) days written notice of termination received by one
party from the other party. The rights and obligations with respect to keeping
the Confidential Information confidential, however, shall survive the
termination of this Agreement. The originals, and all copies, of Confidential
Information shall be returned to the Disclosing Party upon: 1) termination of
this Agreement, 2) within thirty (30) days following the Receiving Party's
written notice to the Disclosing Party that it no longer requires the materials;
or 3) upon written request by the Disclosing Party.

Disclaimer. This Agreement sets forth the entire agreement and understanding
between the parties and supersedes all prior oral and written understandings,
representations and discussions between them concerning this subject matter.
This Agreement may be amended only by a written agreement executed by Rockford
and Simple Devices.

No Rights Granted. No rights, obligations, representations or terms other than
those expressly recited in this Agreement are to be implied from this Agreement.
In particular, without limitation, no license is hereby granted directly or
indirectly under any patent, trademark, trade secret or copyright now held by,
or which is or may be licensable by Rockford or Simple Devices. Nothing in this
Agreement shall abrogate or affect any protection of the Confidential
Information provided under the patent, trademark, trade secret or copyright
statutes or under common law.

No Obligation. The parties acknowledge that no obligation exists under this
Agreement to come to the final agreement concerning any matter, including
without limitation the Activity described in this Agreement. Nothing contained
herein shall give rise to any obligation to provide any specific products or
systems that implement the applications or specifications to be discussed.

2
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            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

Either party shall have the right to refuse to accept any information under this
Agreement and nothing in this Agreement shall obligate either party to disclose
to the other party any particular information. Neither party shall be obligated
to compensate the other party for exchanging any information under this
Agreement and the parties agree that no warranties of any kind are given with
respect to the Confidential Information disclosed under this Agreement.

Remedies. The parties to this Agreement acknowledge that the restrictions
contained in this Agreement are a reasonable and necessary protection of the
legitimate interests of both parties and that any violation of them could cause
substantial injury to the parties. The parties further acknowledge that an
action for damages would not be expected to provide full and adequate
compensation to the Disclosing Party in the event of violation of such
restrictions by the Recipient. Therefore, in the event of any violation of such
restrictions, the Disclosing Party shall be entitled, in addition to any other
remedy available under law, to immediate preliminary injunctive relief
prohibiting or stopping any disclosure.

Each of the parties to this Agreement have caused this Agreement to be signed on
its behalf by its duly authorized representative and shall be effective as of
the date of the last signature to this Agreement.

Rockford Corporation                   Simple Devices

____________________________           ____________________________

Rex Whitehead,                         Lou Hughes

Director of Product Planning           CEO

3
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            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                                  Exhibit 10.2
                                Option Agreement

                             STOCK OPTION AGREEMENT

      This Stock Option Agreement ("Agreement") is among Simple Devices, Inc., a
Delaware corporation ("Corporation"), the shareholders of Corporation who
execute a Shareholder Signature Page to this Agreement ("Shareholders"), and
Rockford Corporation, an Arizona corporation ("Rockford").

1.    BACKGROUND.

      1.1   Stock Acquisition. Pursuant to a Stock Purchase Agreement dated as
            of October 16, 2002 (the "Purchase Agreement"), Rockford is
            acquiring *** shares of common stock of Corporation, representing
            *** of the capital stock of Corporation on a fully-diluted basis.
            Capitalized terms used in this Agreement but not defined will have
            the meanings given such terms in the Purchase Agreement.

      1.2   Option to Acquire Shares. A condition to the closing of the
            transactions contemplated by the Purchase Agreement is that Rockford
            must be granted the right and option to acquire **** of capital
            stock and Security Rights of Corporation held by the other
            shareholders of Corporation.

      1.3   Purpose. The purpose of this Agreement is to state the terms and
            conditions of Rockford's right to acquire the shares of capital
            stock and Security Rights of Corporation held by Shareholders.

2.    GRANT OF OPTION. Each Shareholder grants to Rockford the right and option
      (the "Option") to purchase ****, of the shares of capital stock and
      Security Rights of Corporation held by such Shareholder (the "Shares") at
      the purchase price and on the terms and conditions set forth in this
      Agreement.

3.    TIME OF EXERCISE. The Option will be exercisable at any time beginning on
      [the 2nd anniversary of the Closing Date] and ending at 5:00 p.m. MST on
      [the 4th anniversary of the Closing Date]. However, if Corporation fails
      to meet the quarterly cash flow requirements set forth on the attached
      Exhibit A, Rockford may exercise the Option at any time beginning on the
      30th day after the end of the quarter in which Corporation fails to meet
      the cash flow requirements and ending at 5:00 p.m. MST on [the fourth
      anniversary of the Closing Date]. In either case, the period during which
      Rockford may exercise the Option is the "Option Period." For purposes of
      determining whether Corporation has met the quarterly cash flow targets,
      amounts held by Rockford as part of the Reserve but not yet the subject of
      a Loss will be included as part of Corporation's cash.
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            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

4.    METHOD OF EXERCISE. Rockford may exercise the Option by delivering written
      notice to Shareholders' Representative (as defined in Section 7.1) at any
      time during the Option Period stating Rockford's intention to exercise the
      Option and acquire the Shares.

5.    PURCHASE PRICE.

      5.1   Fairness Opinion. The purchase price for the Shares will be the fair
            market value of the Shares as determined by a mutually acceptable
            investment banking firm ("Investment Banker") selected by Rockford
            and Shareholders' Representative in good faith. Investment Banker
            must deliver its written opinion of the fair market value of the
            Shares to Rockford and Shareholders' Representative within 30 days
            after the appointment of Investment Banker. The fair market value of
            the Shares may include an appropriate discount for lack of
            marketability of the Shares, but may not include any discount for
            minority interest or lack of control.

      5.2   Security Rights. All unvested Security Rights held by Shareholders
            will automatically vest in full in connection with the exercise of
            the Option. The purchase price for the Shares represented by any
            Security Rights will be reduced by the exercise or strike price for
            the Shares associated with the Security Rights. If the fair market
            value of the Shares as determined by Investment Banker is less than
            the exercise or strike price, the Security Rights will be canceled
            and surrendered and Shareholder will not be entitled to any payment
            for such Security Rights.

      5.3   Payment. The purchase price for the Shares must be paid in cash (or,
            if mutually agreed by Rockford and Shareholders' Representative,
            shares of Rockford common stock) within 30 days after Investment
            Banker issues its opinion as to the fair market value of the Shares.
            At the closing, Shareholder must deliver to Rockford certificates
            representing the Shares, duly endorsed for transfer to Rockford, or
            an executed stock assignment separate from certificate.

6.    THIRD PARTY OFFERS.

      6.1   Receipt of Offer. At any time prior to the expiration of the Option
            Period, if Corporation receives an offer from a third party who is
            interested in purchasing Corporation or substantially all of its
            assets, then Corporation's board of directors will consider the
            offer in accordance with its fiduciary obligations and will decide
            whether to recommend the offer to the shareholders of Corporation,
            including Rockford.

      6.2   Shareholder Election. If the board of directors recommends the third
            party offer to the shareholders of Corporation but Rockford does not
            elect to accept the third party offer, and if shareholders of
            Corporation (other than Rockford) holding at least *** of the shares
            of capital stock held by such shareholders on a fully-diluted basis
            elect to accept the third party offer, then Rockford and
            Shareholders' Representative must select an Investment Banker to
            provide an opinion with respect to the fairness of the third party
            offer.

                                     - 2 -
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            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            (a)   Fair Offer. If the fairness opinion finds that the third party
                  offer is fair to all of Corporation's shareholders, then
                  Rockford must within 30 days of delivery of the opinion either
                  (1) purchase the Shares of Shareholders on the terms of the
                  third party offer or (2) agree to participate in the sale of
                  Corporation or its assets on the terms of the third party
                  offer.

            (b)   Unfair Offer. If the fairness opinion finds that the third
                  party offer is not fair to all of Corporation's shareholders,
                  then Rockford is not required to participate in the
                  transaction and the Shareholders will be free to sell their
                  Shares to the third party, but subject in any event to
                  Rockford's continuing right to exercise the Option in
                  accordance with this Agreement.

7.    SHAREHOLDERS' REPRESENTATIVE.

      7.1   Appointment. Shareholders agree to appoint Lou Hughes to act as
            Shareholders' representative ("Shareholders' Representative") for
            the purpose of:

            (a)   representing Shareholders in any proceedings relating to this
                  Agreement, including the selection of Investment Banker; and

            (b)   performing any other actions specifically delegated to
                  Shareholders' Representative under the terms of this
                  Agreement.

      7.2   Removal. Shareholders may remove Shareholders' Representative only
            by the vote of Shareholders holding more than 50% of the shares of
            capital stock held by Shareholders on a fully-diluted basis, but
            such vote is not effective unless Shareholders also vote to appoint
            a new Shareholders' Representative. If Shareholders' Representative
            resigns or is no longer able to serve, Shareholders must vote to
            appoint a new Shareholders' Representative within 30 days after the
            resignation or notice of inability to serve. A vote to appoint a new
            Shareholders' Representative is effective when (a) Shareholders
            holding more than 50% of the shares of capital stock held by
            Shareholders on a fully-diluted basis vote to elect a new
            Shareholders' Representative and (b) the new Shareholders'
            Representative gives notice to Rockford and the prior Shareholders'
            Representative of such vote.

      7.3   Reliance. Rockford is entitled to rely upon notices given by
            Shareholders' Representative. Rockford is not liable for actions it
            takes or does not take in reliance upon actions Shareholders'
            Representative takes or does not take (including Shareholders'
            Representative's notices to Rockford). Until Rockford receives
            notice of appointment of a new Shareholders' Representative,
            Rockford may rely upon actions taken by the prior Shareholders'
            Representative.

8.    BOARD OF DIRECTORS. For 10 years from the Closing Date under the Purchase
      Agreement, each Shareholder and Rockford agree to vote all shares of
      Corporation in any election for directors for the candidates required
      under Section 12.3 of the Purchase Agreement.

9.    LEGEND. Each certificate representing Shares subject to this Agreement
      will be marked with the following legend:

                                      -3-
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            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                 The shares of common stock evidenced by this certificate are
            subject to a Stock Option Agreement dated _________, 2002 among
            Simple Devices, Inc. ("Corporation"), the shareholder of Corporation
            to which this certificate was originally issued, and Rockford
            Corporation. Corporation will furnish a copy of the Stock Option
            Agreement to any person upon request.

      Upon notice from Corporation, Shareholders will deliver their Share
      certificates to Corporation so that the legend may be imprinted on the
      certificates.

10.   MISCELLANEOUS.

      10.1  Integration and Amendment. This Agreement constitutes the entire
            agreement of the parties, and supersedes all prior agreements or
            understandings among the parties with respect to the subject matter
            of this Agreement. This Agreement may be amended only in a written
            agreement signed by all of the parties.

      10.2  Waivers. No waiver under this Agreement is valid unless it is in
            writing and signed by the party giving the waiver. A waiver of a
            particular matter does not waive a subsequent or similar matter.

      10.3  Binding Effect. This Agreement is binding upon, and inures to the
            benefit of, each party and its successors and assigns.

      10.4  No Benefit to Others. This Agreement is solely for the benefit of
            the parties (and their successors and assigns) and does not confer
            any rights on any other persons.

      10.5  Severability. The invalidity or unenforceability of any provision of
            this Agreement does not affect the other provisions. This Agreement
            is to be construed in all respects as if it excluded any invalid or
            unenforceable provision.

      10.6  Construction and Headings. Whenever a singular word is used in this
            Agreement it also includes the plural if required by the context,
            and vice versa. Paragraph headings are for convenience only and do
            not define or limit the contents of a paragraph.

      10.7  Cooperation. In order to carry out this Agreement, each party will
            cooperate, will take further action, and will execute and deliver
            further documents as reasonably requested by the other party.

      10.8  Counterparts. This Agreement may be executed in one or more
            counterparts, all of which taken together are one original.

      10.9  Governing Law. This Agreement is governed by the internal Laws of
            Arizona. Exclusive jurisdiction and venue for any litigation arising
            under this Agreement is in the federal and state courts located in
            Maricopa County, Arizona.

                                      -4-
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            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

11.   EXECUTION DATE. This Agreement is executed and effective as of
      ______________, 2002.

                                    Simple Devices, Inc., a Delaware corporation

                                    By:_________________________________________
                                           President

                                    By:_________________________________________
                                           Secretary

                                    Rockford Corporation, an Arizona corporation

                                    By:_________________________________________
                                           President

                                    By:_________________________________________
                                           Secretary

The undersigned consents to his appointment as Shareholders' Representative
under this Agreement, agrees to serve in such capacity at and after the Closing
(subject to removal or resignation as permitted under this Agreement), and
agrees to be bound by the terms of this Agreement.

                                    ____________________________________________
                                           Lou Hughes

                                    Address:____________________________________
                                            ____________________________________
                                            ____________________________________
                                    Telephone:  (___)___________________________
                                    Facsimile:   (___)__________________________

                                      -5-
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            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                           SHAREHOLDER SIGNATURE PAGE

      The Shareholder identified below accepts and agrees to be bound by the
terms and conditions of this Agreement. Shareholder authorizes Corporation and
Rockford to attach this Shareholder Signature Page to the Agreement.

      This Shareholder Signature Page will not be effective until shareholders
of Corporation holding at least *** of the capital stock of Corporation held by
such shareholders (other than Rockford Corporation) on a fully-diluted basis
consent to be bound by this Agreement.

                                    ____________________________________________
                                             Shareholder's Name

                                    ____________________________________________
                                             Individual's Signature

                                                         OR

                                    By:_________________________________________

                                    Its:________________________________________

                                                         OR

                                    ____________________________________________
                                             Name of Attorney

                                    ____________________________________________
                                             Attorney in Fact's Signature
                                             (Power of Attorney Attached)
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION
                                  Exhibit 10.4
                          Opinion of Company's Counsel

October 16, 2002                                 Brobeck, Phleger & Harrison LLP
                                                          2000 University Avenue
                                           East Palo Alto, California 94303-0913
                                                              phone 650.331.8000
                                                                fax 650.331.8100

To the Purchaser as set forth in the
SimpleDevices, Inc. Stock Purchase Agreement
dated October 16, 2002

Ladies and Gentlemen:
We have acted as counsel for SimpleDevices, Inc., a Delaware corporation (the
"Company"), in connection with the issuance and sale of shares of its Common
Stock pursuant to the SimpleDevices, Inc. Stock Purchase Agreement dated October
16, 2002 (the "Stock Purchase Agreement") between the Company and you. This
opinion letter is being rendered to you pursuant to Section 10.4 of the Stock
Purchase Agreement in connection with the Closing of the sale of the Common
Stock. Capitalized terms not otherwise defined in this opinion letter have the
meanings given them in the Stock Purchase Agreement.

In connection with the opinions expressed herein, we have made such examination
of matters of law and of fact as we considered appropriate or advisable for
purposes hereof. As to matters of fact material to the opinions expressed
herein, we have relied upon the representations and warranties as to factual
matters contained in and made by the Company pursuant to the Stock Purchase
Agreement and upon certificates and statements of government officials and of
officers of the Company. With respect to our opinion in paragraph 3 regarding
issued and outstanding capital stock of the Company, such opinion is based
solely on our review of a certificate of the Company and of the Company's stock
records and resolutions of the Company's Board of Directors relating to such
issuances. We have also examined originals or copies of such corporate documents
or records of the Company as we have considered appropriate for the opinions
expressed herein. We have assumed for the purposes of this opinion letter the
genuineness of all signatures, the legal capacity of natural persons, the
authenticity of the documents submitted to us as originals, the conformity to
the original documents of all documents submitted to us as certified, facsimile
or photostatic copies, and the authenticity of the originals of such copies.

In rendering this opinion letter we have also assumed: (A) that the Stock
Purchase Agreement and the Schedules attached thereto (the "Schedule"), the
Right of Purchase Agreement, the Second Amended and Restated Voting Agreement,
and the Written Consent and Termination Agreement (collectively, the
"Transaction Agreements"), have been duly and validly executed and delivered by
you or on your behalf, that you have the power to enter into and perform all
your obligations thereunder and have taken any and all necessary corporate,
partnership or other relevant action to authorize the Transaction Agreements,
and that the Transaction Agreements constitute valid, legal, binding and
enforceable obligations upon you; (B) that the representations
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

and warranties made in the Stock Purchase Agreement by you are true and correct;
(C) that any wire transfers, drafts or checks tendered by you will be honored;
and (D) that you have filed any required state franchise, income or similar tax
returns and have paid any required state franchise, income or similar taxes.

As used in this opinion letter, the expression "we are not aware" or the phrase
"to our knowledge," or any similar expression or phrase with respect to our
knowledge of matters of fact, means as to matters of fact that, based on the
actual knowledge of individual attorneys within the firm principally responsible
for handling current matters for the Company (and not including any constructive
or imputed notice of any information), and after an examination of documents
referred to herein and after inquiries of certain officers of the Company, no
facts have been disclosed to us that have caused us to conclude that the
opinions expressed are factually incorrect; but beyond that we have made no
factual investigation for the purposes of rendering this opinion letter.
Specifically, but without limitation, we have not searched the dockets of any
courts and we have made no inquiries of securities holders or employees of the
Company, other than such officers. No inference as to our knowledge of the
existence or absence of any fact should be drawn from our representation of the
Company or the rendering of the opinions set forth below.

This opinion letter relates solely to the laws of the State of California, the
General Corporation Law of the State of Delaware and the federal law of the
United States, and we express no opinion with respect to the effect or
application of any other laws. Special rulings of authorities administering such
laws or opinions of other counsel have not been sought or obtained. We have not
examined the question of what law would govern the interpretation or enforcement
of the Transaction Agreements, and our opinion with regard to the validity,
binding nature and enforceability of the Transaction Agreements is based upon
the assumption that the internal laws of the State of California would govern
the provisions thereof.

Based upon our examination of and reliance upon the foregoing and subject to the
limitations, exceptions, qualifications and assumptions set forth below and
except as set forth in the Stock Purchase Agreement or the Schedule thereto, we
are of the opinion that as of the date hereof:

      The Company is a corporation duly incorporated, validly existing and in
good standing under the laws of the State of Delaware, and the Company has the
requisite corporate power and authority to own its properties and to conduct its
business as, to our knowledge, it is presently conducted The Company is
qualified to do business as a foreign corporation in the state of California.

      The Company has the requisite corporate power and authority to execute,
deliver and perform the Transaction Agreements. Each of the Transaction
Agreements has been duly and validly authorized by the Company, duly executed
and delivered by the Company and constitutes a legal, valid and binding
obligation of the Company, enforceable by you against the Company in accordance
with its terms.

      The capitalization of the Company is as follows:

                                       -2-
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            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

            Preferred Stock. The Company has Eighteen Million Two Hundred Fifty
Thousand (18,250,000) authorized shares of Preferred Stock, par value $0.001 per
share (the "Preferred Stock"), of which (i) *** shares have been designated
Series A Preferred Stock, of which, to our knowledge, all are currently issued
and outstanding, and (ii) *** shares have been designated Series B Preferred
Stock of which, to our knowledge, *** shares are currently issued and
outstanding. Such *** shares of outstanding Series A Preferred Stock have been
duly authorized and validly issued, are nonassessable and, to our knowledge, are
fully paid. Such *** shares of outstanding Series B Preferred Stock have been
duly authorized and validly issued, are nonassessable and, to our knowledge, are
fully paid. Pursuant to the Restated Certificate all issued and outstanding
shares of Series A Preferred Stock and Series B Preferred Stock will be
converted to Common Stock pursuant to the automatic and mandatory conversion
provisions contained in the Company's Amended and Restated Certificate of
Incorporation (the "Restated Certificate").The respective changes to the rights,
privileges, restrictions and preferences of the Series A and Series B Preferred
Stock are as stated in the Company's Restated Certificate as filed with the
Secretary of State of Delaware.

            Common Stock. The Company has One Hundred Twenty Five Million
(125,000,000) authorized shares of Common Stock, par value $0.001 per share (the
"Common Stock"), of which *** shares are currently issued and outstanding and of
which up to *** of which may be purchased pursuant to the Stock Purchase
Agreement. Such *** shares of outstanding Common Stock have been duly authorized
and validly issued, are nonassessable, and, to our knowledge, are fully paid.

            The Common Stock issuable upon conversion of the Series A Preferred
Stock and the Series B Preferred Stock have been duly and validly reserved for
issuance and, when and if issued upon such conversion in accordance with the
Company's Restated Certificate, will be validly issued, fully paid and
nonassessable. The Common Stock to be purchased at the Closing has been duly and
validly reserved for issuance and, when and if issued upon such purchase in
accordance with the Company's Restated Certificate and the Transaction
Agreements, will be validly issued, fully paid and nonassessable.

            There are no statutory or charter preemptive rights nor, to our
knowledge, are there any options, warrants, conversion privileges or other
rights (or agreements for any such rights) outstanding to purchase or otherwise
obtain from the Company any of the Company's equity securities, except for (i)
the conversion privileges of the Series A Preferred Stock, (ii) the conversion
privileges of the Series B Preferred Stock, (iii) warrants to purchase ***
shares of Preferred Stock, (iv) outstanding options to purchase *** shares of
Common Stock pursuant to the Company's 2000 Stock Option/Stock Issuance Plan.

      Other than in connection with any securities laws (with respect to which
we direct you to paragraph 6 below), the Company's execution and delivery of,
and its performance and compliance as of the date hereof with the terms of, the
Transaction Agreements do not violate any provision of any federal, Delaware
corporate or California law, rule or regulation applicable to the Company or any
provision of the Company's Restated Certificate or Bylaws and do not conflict
with or constitute a default under the provisions of any judgment, writ, decree
or order

                                      -3-
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            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

specifically identified in the Schedule or the material provisions of any of the
material agreements specifically identified in the Schedule.

      Other than in connection with any securities laws (with respect to which
we direct you to paragraph 6 below), all consents, approvals, permits, orders or
authorizations of, and all qualifications by and registrations with, any federal
or Delaware corporate or California state governmental authority on the part of
the Company required in connection with the execution and delivery of the Stock
Purchase Agreement and consummation at the Closing of the transactions
contemplated by the Stock Purchase Agreement have been obtained, and are
effective, and we are not aware of any proceedings, or written threat of any
proceedings, that question the validity thereof.

      On the assumption that the representations of the Purchaser in the Stock
Purchase Agreement are correct, the offer and sale of the Common Stock to the
Purchaser pursuant to the terms of the Stock Purchase Agreement are exempt from
the registration requirement of Section 5 of the Securities Act of 1933, as
amended, and from the qualification requirement of the California Corporate
Securities Law of 1968, as amended, and from the registration requirements of
the applicable securities laws of the state of California, and, under such
securities laws as they presently exist, the issuance of Common Stock to you
upon conversion of the Preferred Stock would also be exempt from such
registration and qualification requirements.

      We are not aware that there is any action, proceeding or governmental
investigation pending, or overtly threatened in writing, against the Company
which questions the validity of the Transaction Agreements or the right of the
Company to enter into the Transaction Agreements.

Our opinions expressed above are specifically subject to the following
limitations, exceptions, qualifications and assumptions:

      The legality, validity, binding nature and enforceability of the Company's
obligations under the Transaction Agreements may be subject to or limited by (1)
bankruptcy, insolvency, reorganization, arrangement, moratorium, fraudulent
transfer and other similar laws affecting the rights of creditors generally; (2)
general principles of equity (whether relief is sought in a proceeding at law or
in equity), including, without limitation, concepts of materiality,
reasonableness, good faith and fair dealing, and the discretion of any court of
competent jurisdiction in awarding specific performance or injunctive relief and
other equitable remedies; and (3) without limiting the generality of the
foregoing, (a) principles requiring the consideration of the impracticability or
impossibility of performance of the Company's obligations at the time of the
attempted enforcement of such obligations, and (b) the effect of California
court decisions and statutes which indicate that provisions of the Transaction
Agreements which permit any of you to take action or make determinations may be
subject to a requirement that such action be taken or such determinations be
made on a reasonable basis in good faith or that it be shown that such action is
reasonably necessary for your protection.

      We express no opinion as to the Company's or this transaction's compliance
or noncompliance with applicable federal or state antifraud or antitrust
statutes, laws, rules and

                                      -4-
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            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

regulations or Section 721 (as amended by Section 5021 of the Omnibus Trade and
Competitiveness Act of 1988: the so-called "Exon-Florio" provision) of the
Defense Production Act of 1950 and the regulations thereunder.

      We express no opinion concerning the past, present or future fair market
value of any securities.

      We express no opinion as to the enforceability under certain circumstances
of any provisions indemnifying a party against, or requiring contributions
toward, that party's liability for its own wrongful or negligent acts, or where
indemnification or contribution is contrary to public policy or prohibited by
law. In this regard, we advise you that in the opinion of the Securities and
Exchange Commission, provisions regarding indemnification of directors, officers
and controlling persons of an issuer against liabilities arising under the
Securities Act of 1933, as amended, are against public policy and are therefore
unenforceable.

      We express no opinion as to the enforceability under certain circumstances
of any provisions prohibiting waivers of any terms of the Transaction Agreements
other than in writing, or prohibiting oral modifications thereof or modification
by course of dealing. In addition, our opinions are subject to the effect of
judicial decisions which may permit the introduction of extrinsic evidence to
interpret the terms of written contracts such as the Transaction Agreements.

      We express no opinion as to the effect of Section 1670.5 of the California
Civil Code or any other California law, federal law or equitable principle which
provides that a court may refuse to enforce, or may limit the application of, a
contract or any clause thereof which the court finds to have been unconscionable
at the time it was made or contrary to public policy.

      We express no opinion as to the effect of Sections 1203 and 1102(3) of the
California Uniform Commercial Code or any other California law, federal law or
equitable principle, providing for an obligation of good faith in the
performance or enforcement of contracts and prohibiting disclaimer of such
obligation.

      Our opinions in paragraphs 4 and 5 are limited to laws and regulations
normally applicable to transactions of the type contemplated in the Transaction
Agreements and do not extend to licenses, permits and approvals necessary for
the conduct of the Company's business. In addition and without limiting the
previous sentence, we express no opinion herein with respect to the effect of
any land use, safety, hazardous material, environmental or similar law, or any
local or regional law. Further, we express no opinion as to the effect of or
compliance with any state or federal laws or regulations applicable to the
transactions contemplated by the Transaction Agreements because of the nature of
the business of any party thereto other than the Company. Also, we express no
opinion with respect to any patent, copyright, trademark or other intellectual
property matter, or as to the statutes, regulations, treaties or common laws of
any nation, state or jurisdiction with regard thereto.

      In connection with our opinion in paragraph 4 relating to the agreements
listed on the Schedule, we have not reviewed, and express no opinion on, (i)
financial covenants or similar provisions requiring financial calculations or
determinations to ascertain whether there is any

                                      -5-
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

such conflict or (ii) provisions relating to the occurrence of a "material
adverse event" or words of similar import. In addition, our opinion relating to
the agreements listed on the Schedule is subject to the effect of judicial
decisions which may permit the introduction of extrinsic evidence to interpret
the terms of written contracts or allow non-written modifications of written
contracts. Moreover, to the extent that any of the agreements listed on the
Schedule are governed by the laws of any jurisdiction other than the State of
California our opinion relating to those agreements is based solely upon the
plain meaning of their language without regard to interpretation or construction
that might be indicated by the laws governing those agreements.

      We express no opinion as to your compliance with any Federal or state law
relating to your legal or regulatory status or the nature of your business.

      We express no opinion as to the effect of subsequent issuances of
securities of the Company, to the extent that further issuances which may be
integrated with the Closing may include purchasers that do not meet the
definition of "accredited investors" under Rule 501 of Regulation D and
equivalent definitions under state securities or "blue sky" laws.

      We assume that the approval by the Company's Board of Directors of the
Transaction Agreements and the transactions contemplated thereby did not violate
the business judgment rule and we further assume that the Transaction Agreements
and the transactions contemplated thereby were entirely fair as to the Company
as of the time the Company's Board of Directors approved them, and in each
instance, to our knowledge we are not aware of any facts that would contradict
our assumption.

      Our opinions with regard to each respective Transaction Agreement do not
extend to other agreements or instruments (or forms of agreements or
instruments) which may be attached thereto as exhibits.

      We express no opinion as to:

            The effect on the liquidation provisions of the Restated Certificate
of applicable state law, federal law or equitable principles restricting in
certain circumstances distributions by a corporation to its shareholders,
relating to dissenters' rights or relating to involuntary dissolution;

            The enforceability under certain circumstances of provisions
expressly or by implication waiving broadly or vaguely stated rights, unknown
future rights, or defenses to obligations or rights granted by law, when such
waivers are against public policy or prohibited by law;

            The enforceability under certain circumstances of provisions to the
effect that rights or remedies may be exercised without notice, or that failure
to exercise or delay in exercising rights or remedies will not operate as a
waiver of any such right or remedy;

            The enforceability under certain circumstances of provisions to the
effect that rights or remedies are not exclusive, that every right or remedy is
cumulative and may be

                                      -6-
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

exercised in addition to or with any other right or remedy, or that election of
a particular remedy or remedies does not preclude recourse to one or more
remedies;

            Any provision providing for the exclusive jurisdiction of a
particular court or purporting to waive rights to trial by jury, service of
process or objections to the laying of venue or to forum on the basis of forum
non conveniens, in connection with any litigation arising out of or pertaining
to the Transaction Agreements;

            Any provision or section of any of the Transaction Agreements to the
extent that such provisions or sections purport to exclude conflict of law
principles;

            The effect of any law, federal law or equitable principles which
limit the amount of attorneys' fees that can be recovered under certain
circumstances;

            The effect of Section 1717 of the California Civil Code, which
provides that, among other things, where a contract permits one party to the
contract to recover attorneys' fees, the prevailing party in any action to
enforce any provision of the contract shall be entitled to recover its
reasonable attorneys' fees; and

This opinion letter is rendered as of the date first written above solely for
your benefit in connection with the Stock Purchase Agreement and may not be
delivered to, quoted or relied upon by any person other than you, or for any
other purpose, without our prior written consent. Our opinion is expressly
limited to the matters set forth above and we render no opinion, whether by
implication or otherwise, as to any other matters relating to the Company. We
assume no obligation to advise you of facts, circumstances, events or
developments which hereafter may be brought to our attention and which may
alter, affect or modify the opinions expressed herein.

We advise you that our firm, and some of our attorneys are among the investors
in the Company.

                                                 Very truly yours,

                                                 BROBECK, PHLEGER & HARRISON LLP

                                      -7-
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                                  Exhibit 10.5
                              Company's Certificate

                               SIMPLEDEVICES, INC.

                             COMPLIANCE CERTIFICATE

      The undersigned, Louis S. Hughes, III, does hereby certify that he has
been duly elected and qualified as, and at this date is, President and Chief
Executive Officer of SimpleDevices, Inc. (the "Company"), a Delaware
corporation, and that:

      1.    The representations and warranties contained in Section 6 of the
            Company's Stock Purchase Agreement, dated as of the date hereof (the
            "Stock Purchase Agreement") by and among the Company and the
            investors listed on SCHEDULE A attached thereto, are true and
            correct in all material respects as of the date hereof, except as
            provided in the Schedule of Exceptions attached thereto.

      2.    The Company has performed and complied with all agreements,
            obligations and conditions contained in the Stock Purchase Agreement
            that are required to be performed by or complied with it on or
            before the date hereof.

      3.    No consents, approvals, filings, qualifications and/or registrations
            were required to be obtained or effected under any applicable state
            of provincial securities laws prior to the Closing.

      4.    The representations and warranties of the Company in Section 5 of
            the Stock Purchase Agreement are true and correct in all respects on
            and as of the Closing Date with the same force and effect as though
            such representations and warranties had been made on and as of the
            date of the Agreement.

      5.    The Company has performed and complied with all agreements,
            obligations, and conditions contained in the Agreement that are
            required to be performed or complied with by it on or before the
            date hereof. The undersigned confirms that in the Closing the
            Company is receiving aggregate proceeds of $*** in the amounts and
            from the Purchasers as listed on Exhibit A hereto.

      6.    There has been no adverse change in the business, affairs,
            operations, properties, assets or condition of the Company from that
            described in the Agreement.

      The foregoing shall be deemed to be representations of the Company and not
of the undersigned personally.
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

      IN WITNESS WHEREOF, the undersigned has executed this Compliance
Certificate this 16th day of October, 2002.

                                           _____________________________________
                                           Louis S. Hughes, III
                                           President and Chief Executive Officer

2
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                                  Exhibit 11.4
                         Opinion of Purchaser's Counsel

October 16, 2002

Simple Devices, Inc.
 2121 El Camino Real
San Mateo, CA  94403

      Re:   Stock Purchase Transaction (the "Transaction") between Rockford
            Corporation, an Arizona corporation ("Buyer"), and Simple Devices,
            Inc., a Delaware corporation ("Company")

Ladies and Gentlemen:

      We have acted as counsel to Buyer in connection with the Transaction
evidenced by the Documents (as defined below). You have requested our opinion
about certain matters pursuant to Section 11.4 of the Agreement (as defined
below). Capitalized terms used and not otherwise defined in this letter shall
have the meanings given to them in the Documents.

      For purposes of this opinion, we have examined such questions of law and
fact as we have deemed necessary or appropriate, and have examined the following
documents (collectively, the "Documents"):

      a. Stock Purchase Agreement, dated as of October 16, 2002, between Seller
and Buyer (the "Agreement"); and

      b. Form of Employment and Non-Competition Agreement, to be entered into by
Buyer the Key Employees (as defined in the Agreement).

      c. Invention Agreement to be entered into by Buyer and the Other Employees
(as defined in the Agreement).

      We have further examined:
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

      i. The Articles of Incorporation and bylaws of Buyer, as amended to date;
and

      ii. A Certificate of Good Standing with respect to Buyer, dated as of
October 16, 2002.

      Based on the foregoing, and subject to the qualifications set forth below,
it is our opinion that:

      1. Buyer is a corporation duly organized, validly existing, and in good
standing under the laws of the State of Arizona.

      2. Buyer has the requisite corporate power and corporate authority (i) to
own and operate its properties and assets; (ii) to carry out its business as
such business is currently being conducted; and (iii) to carry out the terms and
conditions applicable to it under the Documents. The execution, delivery, and
performance of the Documents by Buyer have been duly authorized by all requisite
corporate action on the part of Buyer and the applicable Documents have been
duly executed and delivered by Buyer.

      3. The execution and delivery of the Documents and consummation of the
Transaction by the Buyer will not conflict with or result in a violation of
Buyer's Articles of Incorporation or bylaws.

      4. The Documents constitute legal, valid, and binding obligations of
Buyer, enforceable in accordance with their terms.

      In rendering the foregoing opinions we have assumed:

      (i) The genuineness of the signatures not witnessed, the authenticity of
documents submitted as originals, and the conformity to originals of documents
submitted as copies;

      (ii) The legal capacity of all natural persons executing the Documents;

      (iii) That the Documents accurately describe and contain the mutual
understanding of the parties, and that there are no oral or written statements
or agreements that modify, amend, or vary, or purport to modify, amend, or vary,
any of the terns of the Documents; and

      (iv) That Buyer owns all of the property, assets, and rights purported to
be owned by it.

2
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

      The opinions set forth above are subject to the following qualifications
and limitations:

      a. The enforceability of the Documents may be subject to or limited by
bankruptcy, insolvency, reorganization, arrangement, moratorium, or other
similar laws relating to or affecting the rights of creditors generally;

      b. The enforceability of the Documents is subject to general principles of
equity; and

      c. The enforceability of the Documents is further subject to the
qualification that certain waivers, procedures, remedies, and other provisions
of the Documents may be unenforceable under or limited by the law of the State
of Arizona; however, such law does not, in our opinion, substantially prevent
the practical realization of the benefits intended by the Documents.

      We are qualified to practice law in the State of Arizona, and we do not
purport to be experts on, or to express any opinion concerning, any law other
than the law of the State of Arizona and applicable federal law.

      The opinions expressed in this letter are based upon the law in effect on
the date hereof, and we assume no obligation to revise or supplement this
opinion should such law be changed by legislative action, judicial decision, or
otherwise.

      This opinion is being furnished to you solely for your benefit and only
with respect to the Transaction. Accordingly, it may not be relied upon by,
quoted in any manner to, or delivered to, any person or entity without, in each
instance, our prior written consent.

                                              Very truly yours,

                                              Steptoe & Johnson LLP

3
<PAGE>
            CONFIDENTIAL TREATMENT REQUESTED BY ROCKFORD CORPORATION

                                  EXHIBIT 11.5

                            CERTIFICATE OF PURCHASER

      This Certificate is issued pursuant to the Stock Purchase Agreement
("Agreement") dated October 16, 2002, between Rockford Corporation ("Purchaser")
and Simple Devices, Inc. ("Company"). Defined terms used in this Certificate
have the same meaning given in the Agreement.

      THE PURCHASER CERTIFIES THAT:

      1.    THE CONDITIONS STATED IN SECTION 11 OF THE AGREEMENT HAVE BEEN
            COMPLETELY MET IN ALL MATERIAL RESPECTS;

      2.    THE REPRESENTATIONS AND WARRANTIES OF PURCHASER IN SECTION 7 OF THE
            AGREEMENT ARE TRUE AND CORRECT WHEN MADE AND ON THE CLOSING DATE;
            AND

      3.    PURCHASER HAS PERFORMED ALL MATERIAL COVENANTS, AGREEMENTS, AND
            OBLIGATIONS REQUIRED OF IT BY THE AGREEMENT, AND EXECUTED AND
            DELIVERED TO COMPANY'S SHAREHOLDERS ALL DOCUMENTS REQUIRED TO BE
            DELIVERED AT OR PRIOR TO THE CLOSING.

                                                 ROCKFORD CORPORATION

                                                 BY:___________________________
                                                 PRINT NAME:
                                                 TITLE:

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