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                                                                   EXHIBIT 10.15

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

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

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

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

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

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

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

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

                                    ARTICLE I
                                   DEFINITIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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                                    ARTICLE II
                                     LICENSE

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

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

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

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

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

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

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

                                   ARTICLE III
                         PRODUCTS; SERVICES; EXCLUSIVITY

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

      (b) Directed shall not provide any sales, distribution or related services
with respect to satellite radio products offered by a Competitor.

                                   ARTICLE IV
                           FINANCIAL MATTERS; REPORTS

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

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

      SECTION 4.02. Activation Payments. (a) Sirius shall pay Directed an
activation fee of [***] (an "Activation Fee") and a dealer payment of [***] (a
"Dealer Payment") for the initial activation by a Subscriber of any Product that
is a Sirius Receiver and was sold by Directed to an Approved Dealer, provided
that Sirius shall not pay any Activation Fees or Dealer Payments for activations
of Sirius Receivers sold by Directed to any of the dealers set forth on Exhibit
A hereto (as amended from time to time in accordance with Section 3.02) or any
other dealer that receives a commission or similar payment directly from Sirius.
Directed shall use each Dealer Payment to fund a [***] commission to the
Approved Dealer that sold the applicable Sirius Receiver. Sirius may change the
amount of the Activation Fee and Dealer Payment at any time upon ninety days
prior written notice to Directed (such ninetieth

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day, the "Change Date"); provided that (i) such new Activation Fees and Dealer
Payments shall be paid only with respect to activations of Products that occur
on or after the Change Date and (ii) Directed may terminate this Agreement by
providing written notice to Sirius within thirty days of receiving notice of
such change.

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

Cancellation, Disconnection or                     Chargeback percentage:
Nonpayment Occurs:

Within first [***] days of activation              [***]
Between [***] days of activation
Between [***] days of activation

      (c) Subject to Directed providing the reports described in Section 4.01 in
a timely manner Sirius shall pay Activation Fees and Dealer Payments to
Directed, net of any chargebacks pursuant to Section 4.02(b), within [***] days
of the end of the month in which the applicable activation occurs. Together with
such payment, Sirius shall provide a report setting forth (i) the electronic
serial number of each Product that is a Sirius Receiver and for which Sirius is
charging back payments pursuant to Section 4.02(b); (iii) the name of the
Approved Dealer that sold such Sirius Receiver, (iv) the Sirius corporate
identification number for such Approved Dealer, and (v) and the amount paid or
charged back.

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

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

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

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

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

      SECTION 4.05. Extraordinary Expenses. (a) Sirius shall fully reimburse
Directed for all reasonable out-of-pocket costs incurred by Directed in
connection with excessive Product failure, including but not limited to costs
related to Product rework, Product recalls and Product shipping, to the extent
such costs were approved in writing by Sirius prior to being incurred by
Directed. Directed shall invoice Sirius for such costs, together with reasonable
supporting documentation, and Sirius shall pay such invoices within thirty days.
Sirius shall use commercially reasonable efforts to expedite remittance of such
invoices.

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

                                    ARTICLE V
                           TRAINING; TECHNICAL SUPPORT

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

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

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

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

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

                                   ARTICLE VI
                                   PROMOTIONS

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

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

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

                                   ARTICLE VII
                              INTELLECTUAL PROPERTY

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

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

                                      -11-

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

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

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

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

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

                                  ARTICLE VIII
                                      TERM

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

                                      -12-
<PAGE>
                                   ARTICLE IX
                                   TERMINATION

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

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

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

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

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

                                    ARTICLE X
                         REPRESENTATIONS AND WARRANTIES

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

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

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

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

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

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

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

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

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

                                   ARTICLE XI
                    CONFIDENTIALITY; DELIVERY OF INFORMATION

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

                                      -14-

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

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

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

                                   ARTICLE XII
               INDEMNIFICATION; LIMITATION ON LIABILITY; INSURANCE

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

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

                                      -15-

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

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

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

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

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

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

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

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

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

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

                                      -16-
<PAGE>

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

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

                                  ARTICLE XIII
                                  MISCELLANEOUS

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

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

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

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

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

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

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

                                      -17-

<PAGE>

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

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

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

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

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

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

                                      -18-

<PAGE>

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

SIRIUS SATELLITE RADIO INC.                        DIRECTED ELECTRONICS, INC.

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

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

                                                                       EXHIBIT A

                                Approved Dealers
                                ________________

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

                                                                       EXHIBIT B

                          Directed Electronics Pricing
                                ________________

<Table>
<Caption>
                                         PnPs                                               DLPs
                 ---------------------------------------------------------  ------------------------------------
                             Sportster                     Starmate
                 ----------------------------------  ---------------------   Alpine   Kenwood     JVC     Sirius
Production       SP-TK1  SP-R1  SP-C1  SP-H1  SP-B1   ST-1    ST-1   ST-H1  SIR-ALP1  SIR-KEN1  SIR-JVC1  SCFM-1
                 ------  -----  -----  -----  -----   ----    ----   -----  --------  --------  --------  ------
<S>              <C>     <C>    <C>    <C>    <C>    <C>     <C>     <C>    <C>       <C>       <C>       <C>
                                                       (on or
                                                       before  (after
                                                       4/2/05) 4/2/05)
Cost (FOB
location of
manufacturer)    [***]   [***]  [***]  [***]  [***]  [***]   [***]   [***]  [***]     [***]     [***]     [***]

Transportation   [***]   [***]  [***]  [***]  [***]  [***]   [***]   [***]  [***]     [***]     [***]     [***]
Duties           [***]   [***]  [***]  [***]  [***]  [***]   [***]   [***]  [***]     [***]     [***]     [***]
Additional Fees  [***]   [***]  [***]  [***]  [***]  [***]   [***]   [***]  [***]     [***]     [***]     [***]

Landed Cost      [***]   [***]  [***]  [***]  [***]  [***]   [***]   [***]  [***]     [***]     [***]     [***]
</Table>

<Table>
<Caption>
                                            Accessories
                 ------------------------------------------------------------------
                  Recep Tec     Dot      Home Int.  Home Ext.     FM      Extension
Production       Car Antenna   Antenna   Antenna    Antenna    Modulator    Cable
                 -----------   -------   -------    ---------  ---------  ---------
<S>              <C>           <C>       <C>        <C>        <C>        <C>

                    Part #     Part #    Part #       Part #     Part #     Part #
                 -----------   -------   -------    ---------  ---------  ---------
                   14105        14120     14215       14210      14110      14230

Cost (FOB
location of
manufacturer)    [***]         [***]     [***]      [***]      [***]      [***]

Transportation   [***]         [***]     [***]      [***]      [***]      [***]
Duties           [***]         [***]     [***]      [***]      [***]      [***]
Additional Fees  [***]         [***]     [***]      [***]      [***]      [***]

Landed Cost      [***]         [***]     [***]      [***]      [***]      [***]
</Table><PAGE>
                                                                   EXHIBIT 10.16

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

                                VENDOR AGREEMENT

              Between:

              BEST BUY CO., INC.                DIRECTED ELECTRONICS, INC.
                                                --------------------------
              7075 Flying Cloud Drive    and    One Viper Way
                                                --------------------------
              Eden Prairie, MN 55344            Vista, CA 92085
                                                --------------------------

1.    LICENSE TO SELL PRODUCTS

Vendor grants Best Buy Co., Inc., and its affiliates and subsidiaries ("Best
Buy"), a non-exclusive license to distribute all products Vendor makes available
to Best Buy (the "Products"), to end users and commercial buyers in the United
States, and other territories as agreed from time to time, through its sales
channels including but not limited to its present and future stores, Internet
Website, (www.BestBuy.com), distribution centers and mail order distribution
centers.

2.    PRICING AND TAXES

-     PRICES: Vendor will sell the Products to Best Buy at the prices then in
      effect on its current price list, as may be changed from time to time, or
      as otherwise agreed between the parties. Prices exclude freight and
      insurance. Vendor guarantees competitive pricing.

-     TAXES: Vendor's prices do not include sales, use, excise, or similar
      taxes. The amount of any valid present or future sales, use, excise, or
      other similar tax which is attributable to Best Buy shall be paid by Best
      Buy; or in lieu thereof, Best Buy shall provide Vendor with a tax
      exemption certificate acceptable to the taxing authorities.

3.    PAYMENT

Vendor shall electronically submit an invoice to Best Buy on the same day
Product is shipped. Invoice credit terms will be set forth in the Vendor Program
Agreement as further described in Section 11. The designated credit term shall
commence on the date Best Buy verifies receipt of Product at the FOB point (e.g.
distribution center or store in the case of FOB destination shipping terms; or
by the Best Buy-assigned center in the case of FOB origin shipping terms). Best
Buy's policy is to cut and mail checks on the due date or first workday
thereafter. Thus, if the credit terms are net 60 days, Best Buy will send
payments 60 days after Best Buy verifies receipt of Product at the FOB
destination point. No additional charges of any type beyond the price of the
Products shall be added to an invoice without Best Buy's express written
consent. Vendor may not charge interest on any past due amounts as a result of
audits, claims or disputed deductions. All transactions must be valued and paid
in U.S. currency. Best Buy may offset against amounts payable to the Vendor all
present and future indebtedness of the Vendor to Best Buy arising from any
transaction.

Vendor will send invoices to Best Buy electronically as provided in Section 10
(Electronic Data Interchange; Web-Based Electronic Commerce). All invoices not
sent electronically should be sent to Best Buy Purchasing LLC, Attn: Accounts
Payable, P.O. Box 9331, Minneapolis, MN 55440-9331. Best Buy Purchasing LLC is a
controlled subsidiary of Best Buy Co., Inc. Best Buy Purchasing LLC will pay
Vendor invoices in accordance with this Section 3 and shall initially assume
title to all Products. Best Buy Purchasing LLC will resell and transfer title to
such Products to Best Buy Co., Inc.'s other affiliates and subsidiaries to
distribute the Products through the sales channels provided in Section 1. Best
Buy Co., Inc. guarantees the performance required of Best Buy Purchasing LLC
under this Agreement.

4.    SHIPPING

-     SELECT SHIPPING TERMS: One of the following ground shipment terms shall be
      agreed upon at the time this Agreement is executed by checking the
      applicable box. No other ground shipment terms other than the two options
      described below may be used.

[ ]   Best Buy's preferred method of shipping for domestic shipments is F.O.B.
      Origin, Freight Collect and Allowed. Best Buy shall be responsible for
      carrier selection routing instructions and pick-up appointments at
      Vendor's domestic origin facility. In addition, Best Buy is responsible
      for carrier freight payments except as otherwise specified in this
      Agreement, submitting freight claims for loss and damage, scheduling
      appointments at destination, and tracking and tracing freight in transit.
      Title and risk of loss passes to Best Buy Purchasing LLC upon delivery to
      Best Buy at Vendor's domestic origin shipping dock. Vendor agrees to have
      Products in "ship-ready" condition by the ship date as specified in the PO
      and further, provide 48-hour notice to Best Buy for truckload shipments
      and 24-hour notice to Best Buy for less-than-truckload shipments. Vendor
      will pay a freight allowance to Best Buy pursuant to the attached
      Collaborative Transportation Agreement, as amended from time to time by
      the parties.

[X]   Alternatively, Vendor shall ship Product to Best Buy FOB Destination,
      Freight Prepaid by Vendor to the location specified by Best Buy, including
      but not limited to its stores, distribution centers, and third-party
      fulfillment providers. Vendors are encouraged to utilize Best Buy's
      Preferred Carriers, as listed in the attached Routing and Shipping Guide.
      Because such Preferred Carriers are electronically linked with Best Buy's
      systems, Vendor's adherence to this request will improve tracking
      capability and on-time performance while producing shorter transit times
      and minimizing the need for Expedited Shipments, as defined below, to Best
      Buy's distribution centers and stores.

                                  Page 1 of 8
<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

-     EXISTING VENDOR CONVERSION TO FOB ORIGIN, FREIGHT COLLECT AND ALLOWED
      TERMS: In the event Vendor currently ships Product to Best Buy FOB
      Destination, Freight Prepaid by Vendor, Vendor may be converted to the
      preferred FOB Origin, Freight Collect and Allowed terms as described
      above, via its Collaborative Transportation Management Program ("CTM").
      Under CTM, Best Buy will receive a negotiated freight allowance from the
      vendor in exchange for assuming the expenses associated with inbound
      carrier freight previously borne by Vendor. Freight allowance to be paid
      to Best Buy with respect to FOB Origin, Freight Collect and Allowed terms
      will be agreed between the parties in a writing and attached hereto as the
      Collaborative Transportation Agreement. For example, the negotiated
      freight allowance can reflect a flat percentage of invoice value, (ad
      valorem), or dollars and/or cents per pound, or dollars and/or cents per
      box or as actual freight expense incurred. Freight allowances and/or
      expenses will be reconciled after each Best Buy fiscal month.

-     EXPEDITED SHIPMENTS: Terms for expedited shipments will be FOB Origin,
      Freight Collect. Vendor will pay any additional freight expenses incurred
      in connection with an expedited shipment arising from a shipment delay
      caused by Vendor. The parties will determine responsibility for expedited
      shipment expenses in other situations on a case by case basis. In the
      event current shipping terms are FOB Origin, Freight Collect and Allowed,
      and the parties determine that the need for an expedited shipment was not
      the fault of Vendor, Vendor shall still be responsible for reimbursing
      Best Buy for the agreed Freight Allowance expense.

-     SHIPPING AND ROUTING GUIDE: Vendor shall follow the terms and conditions
      stated in Best Buy's Shipping and Routing Guide, which may be accessed at
      WWW.EXTENDINGTHEREACH.COM.

-     OTHER CHARGES: Any and all charges related to special requests of Vendor
      to carrier, including loading assistance, detention, or any other
      instructions, prior to title passage, are the responsibility of the
      Vendor.

-     DIRECT IMPORT AGREEMENT: Terms for directly Imported Products will be set
      forth in a Direct Import Agreement, which may be attached hereto.

-     BILL OF LADING: Vendor shall use Best Buy's standard Bill of Lading form,
      which may be accessed at WWW.EXTENDINGTHEREACH.COM.

5.    SHIPPING PERFORMANCE MANAGEMENT

-     RIGHT TIME: Vendor agrees to deliver Product on a timely basis to Best Buy
      at the FOB point in accordance with the prearranged delivery and/or
      pick-up dates the parties agree upon from time to time. For FOB Origin,
      Freight Collect terms, Product must be ready for delivery to Best Buy on
      the pick-up date committed to by Vendor. For FOB Destination, Freight
      Prepaid terms, Product must be delivered to Best Buy within two days of
      the delivery date committed to by Vendor. In the event Vendor is in breach
      of this "Right Time" shipping commitment, Vendor shall pay to Best Buy, or
      Best Buy may offset against Vendor invoice, in each instance of breach,
      [***] subject to the breach, as identified on the corresponding PO for
      each day early or late, as the case may be, [***]. Such amount shall be
      considered liquidated damages, as it is reasonable in light of Best Buy's
      anticipated loss for Vendor's non-conformance.

-     RIGHT QUANTITY: Vendor agrees to deliver the right quantity of Product to
      Best Buy in accordance with an accepted PO. However, Best Buy shall
      consider a PO-SKU quantity [***] a conforming delivery. If Vendor delivers
      a non-conforming quantity, Vendor shall pay to Best Buy, or Best Buy may
      offset against Vendor Invoice, an amount equal to the quantity
      non-conformance percentage multiplied by the total cost of the particular
      SKU subject to the non-conformity, as identified on the corresponding PO
      [***]. Such amount shall be considered liquidated damages, as it is
      reasonable in light of Best Buy's anticipated loss for Vendor's
      non-conformance.

-     PROGRAM IMPLEMENTATION: Vendor agrees to comply with Best Buy's
      implementation schedule for the Shipping Performance Management Program,
      as described above (Right Time; Right Quantity). Upon notice to Vendor of
      the commencement of the Program, Best Buy will provide information
      concerning Vendor's shipping performance to Vendor for [***]
      ("Implementation Period"). Vendor will not be subject to charges for
      shipping non-conformance during the Implementation Period. Following the
      Implementation Period, Vendor will be subject to the charges for shipping
      non-conformance as specified in this Section 5. Best Buy will identify and
      report incidents of Vendor's non-conforming shipments and make available
      information concerning each incident for 4 weeks prior to the date that
      any charge hereunder will be assessed so that Vendor may investigate and
      determine the validity of each incident of shipping non-conformance
      reported by Best Buy.

-     ACHIEVING SHIPPING PERFORMANCE STANDARDS: If Vendor maintains shipping
      conformance for Right Time and Right Quantity at a rate of [***] based
      upon the aggregate of all PO-SKU orders in such period Best Buy will
      suppress future charges for non-conformance, provided that Vendor
      continues to maintain weekly shipping performance at or above [***]
      conformance. In the event unforeseen circumstances prevent Vendor from
      maintaining this [***] threshold, in Best Buy's sole discretion, Vendor
      will be permitted to perform below [***] for [***] of a rolling 6-week
      period without reinstatement of charges for non-conformance. If Vendor
      first qualifies for suppression of charges but then later fails to
      maintain the [***] threshold performance standard or its limited exception
      for unforeseen circumstances, Vendor must reestablish shipping standards
      of [***] or greater for 13 consecutive weeks before non-conformance
      charges will again be suppressed.

6.    [***] Notice of Price Increases

      [***] Best Buy will receive [***] as per the current Vendor Program
      Agreement upon the effective date of a [***] to the Products with respect
      to Best Buy's [***] which shall include [***]. Best Buy will determine its
      [***] as of the effective date of [***] and will submit [***] to
      in-transit Product shall be reflected on the purchase orders prior to them
      being received into Best Buy distribution centers. Subject to Best Buy's
      audit rights herein, Best Buy will make commercially reasonable efforts to
      submit documentation to Vendor [***] after the effective date of the
      [***].

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

-     NOTICE OF PRICE INCREASES: Vendor will give Best Buy 90 days prior written
      notice of the effective date of any increases to the cost of Product to
      Best Buy. Price increases are based on the purchase order date, not the
      shipment date.

7.    RETURNS

Best Buy shall have the right to return at Vendor's expense, and for full credit
or refund of Best Buy's cost (which is Best Buy's last purchase price) any
Products (i) against which an allegation is made that the use of such Products
infringes on any patent, trademark, trade secret, copyright, right of privacy or
publicity, or any other tangible or intangible proprietary or intellectual
property right; (ii) are not manufactured, packaged, or labeled in accordance
with industry standards and/or all applicable laws, ordinances, rules, and
regulations; and (iii) that are damaged or defective, or where use of such
Products has caused injury to person or property.

For the purposes of this Agreement, the term "defective," when referring to the
Products, shall include the following:

-     Product that is visually or operationally defective;

-     Product that has been returned by a customer in accordance with Best Buy's
      return policy after the customer has opened the Product (i.e. the
      wrapping, seal, or box has been opened), regardless of whether the Product
      is otherwise defective; and

Additional return rights that supplement the foregoing may be specified in the
Vendor Program Agreement.

Vendor agrees to provide a return authorization ("RA") within 48 hours of
request. Vendor also agrees to allow delivery of return product as of the day
the RA is issued to Best Buy. If an appointment is required for Best Buy's
return delivery, Vendor agrees to provide an appointment within 3 days of the
carrier's expected time of arrival. Any and all changes to Vendor contact
personnel must be communicated immediately to the following address:

            Best Buy Co., Inc.
            Returns Department
            7275 Flying Cloud Drive
            Eden Prairie, MN  55344

Vendor agrees to issue and send to Best Buy a credit memo within 60 days from
the date of the check upon which Best Buy deducted the amount specified in its
Return goods Memo ("RGM") to Vendor. Such credit memo shall reference either
Best Buy's RGM number or the RA number.

If Vendor receives Product from Best Buy that Vendor believes is non-returnable,
Vendor will return such Product to Best Buy's originating Product returns
location within 90 days of Vendor's determination. In this case, the shipment
cartons must reference the original return shipment's RA or RTV number.

8.    DEBIT BALANCES

If Vendor has a "Debit Balance" (defined as any balance due and owing from
Vendor to Best Buy, whether or not related to the performance of this Agreement)
with Best Buy, the amount owed will be deducted by Best Buy from the next
payment to Vendor. If there is no outstanding balance due Vendor, then Vendor
shall pay the debit balance to Best Buy in full, [***]. If the amount owed is
disputed, Vendor agrees to reconcile the account and remit payment to Best Buy
[***]. Payment shall be made in the form of check or wire; payment via a credit
memo is not acceptable. Best Buy may charge the Vendor interest [***], whichever
is greater, commencing as of the date of notification by Best Buy, for any debit
balances not reconciled and paid [***] from Best Buy.

9.    DISCONTINUED PRODUCT

A "Discontinued Product" means any Product that Vendor has stopped manufacturing
or any Product that undergoes a change in appearance or packaging. Vendor agrees
to provide Best Buy with at least 90 days advance written notice of the
occurrence of a Discontinued Product, or as soon as possible in the event that
the discontinuance is caused by actions taken by a component part supplier of
Vendor. Upon notice of such Discontinued Product, Best Buy may, without penalty
or liability, cancel any outstanding purchase orders pertaining to the
Discontinued Product. With respect to Best Buy's [***], Vendor and Best Buy
shall negotiate in good faith [***] so that Best Buy may still [***].

10.   ELECTRONIC DATA INTERCHANGE; WEB-BASED ELECTRONIC COMMERCE

As a condition to entering into this Agreement, the parties agree to exchange
certain documents electronically via (i) traditional Electronic Data Interchange
("EDI"); or (ii) Web-Based Electronic Commerce ("EC"). In particular, the
parties shall exchange the following documents via either EDI or EC:

Required:

-     Purchase Order ("PO"): EDI850. Vendor must be compliant with EDI or EC
      [***] of its receipt of the first PO from Best Buy (Vendor will not accept
      verbal purchase orders unless confirmed by an EDI850).

-     Electronic Invoices: EDI810. Vendor must be compliant on EDI or EC [***]
      of its receipt of the first PO from Best Buy.

-     Purchase Order Changes: EDI860. Vendor must be compliant on EDI or EC
      [***] of its receipt of the first PO from Best Buy.

-     Advance Ship Notice ("ASN"): EDI856, including UCC128 barcode direct to
      store orders. Vendor must be ready to test for ASN compliance on EDI or

                                  Page 3 of 8
<PAGE>
[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

      EC [***] of its receipt of the first PO from Best Buy, or upon Best Buy's
      request thereafter based upon Best Buy's priority schedule.

-     Functional Acknowledgement: EDI997. Vendor shall send EDI997 so that it is
      received [***] days of Best Buy's PO.

Optional:

Along with the required documents identified above, Vendor must use reasonable
efforts to explore the possibilities of implementing the following documents:

-     Product Activity: EDI852 (sales and inventory information, delivered
      weekly to Vendor by Best Buy).

-     Store Text Message: EDI864 (store addresses).

-     Other EDI documents as they become available.

Additional Requirements:

-     Prior to its acceptance of a Best Buy PO, Vendor must ensure all Products
      will be marked with a valid UPC number, as well as ensuring that such
      Products are set up in the Best Buy system.

-     Best Buy reserves the right to charge a reasonable fee for drop shipments
      when Best Buy stores are required to detail-receive Vendor shipments due
      to an invalid ASN/UCC128.

-     At Best Buy's request, Vendor must re-send all electronic documents using
      a new EDI ISA control number. Vendor must ensure duplicate transmissions
      are not fed into Vendor's database. Best Buy will not accept duplicate
      shipments and will return such shipments at Vendor's expense (including
      any carrying and handling costs).

-     Traditional EDI must be set up directly with the Vendor, not through a
      third-party service or sales representative.

11.   VENDOR PROGRAM AGREEMENT

Best Buy and Vendor may agree upon additional business terms from time to time
concerning matters such as Products, pricing, Market Development Funds ("MDF"),
invoice credit term, stock rotation, volume rebates, new store allowances, etc.
Such additional terms shall be contained in one or more Vendor Program
Agreements, as amended from time to time by the parties.

12.   COLLABORATIVE PLANNING, FORECASTING AND REPLENISHMENT

Vendor may be requested to participate in Best Buy's Collaborative Planning,
Forecasting and Replenishment ("CPFR") program. If requested and if Vendor
accepts, the parties will enter into a separate, written CPFR agreement that
will be incorporated in this Agreement. Such CPFR agreement will obligate the
parties to share information concerning supply chain processes using the CPFR
standards as developed by the Voluntary Inter-industry Commerce Standards
Association ("VICS").

13.   SERVICE

Best Buy is committed to meeting our customer's high expectations concerning
post-sale service and warranty repairs. A comprehensive Product Service
Agreement between the parties is necessary to ensure customer satisfaction.
Unless otherwise determined by Best Buy, the attached Product Service Agreement
controls the servicing and warranty repairs of the Products and must be signed
simultaneous with or prior to the signing of this Agreement.

14.   PROPRIETARY RIGHTS

Vendor grants Best Buy a license to use, exhibit, excerpt, reproduce, publish,
publicly perform and transmit via the Internet and otherwise use all trade
names, trademarks, service marks and other proprietary information associated
with the Products to promote and sell the Products. Vendor will provide Best Buy
with Product specifications for use by Best Buy in preparing advertising and
promotional materials, and hereby grants Best Buy a license to use, exhibit,
excerpt, reproduce, publish, publicly perform and transmit via the Internet and
otherwise for the purpose of advertising and promotion any and all such Product
specifications and other content provided by Vendor. Upon termination of this
Agreement, Best Buy may continue to advertise and promote the Products, using
the Vendor's trade names, trademarks and service marks, and other proprietary
information until inventory depletion. This Agreement does not grant Vendor any
right or license to use Best Buy's trade names, trademarks or service marks,
promotional material, copy, graphics, themes, strategies, inventions, program,
and files without first obtaining Best Buy's express written approval.

15.   CONFIDENTIALITY

This Agreement and any information marked as confidential or, regardless of form
(written/electronic/oral) or marking, is of the nature that a reasonable person
would understand its owner would not want It disclosed to the public will be
considered to be Confidential Information. Further, Confidential Information
shall also include (i) any document or data transaction between the parties;
(ii) matters of a technical nature such as trade secret processes or devices,
know-how, data, formulas, inventions (whether or not patentable or copyrighted),
specifications and characteristics of products or services planned or being
developed, and research subjects, methods and results, (iii) matters of a
business nature such as information about costs, profits, pricing, policies,
markets, sales, suppliers, customers, product plans, and marketing concepts,
plans or strategies, (iv) matters relating to project initiatives and designs,
(v) matters of a human resources nature such as employment policies and
practices, personnel, including individual names, addresses, and telephone
numbers; compensation and employee benefits, (vi) other information of a similar
nature not generally disclosed to the public. Each party agrees not to disclose
Confidential Information except to employees, or a third party subject to a
similar confidentiality agreement, which have a need to know to perform their
responsibilities. Each party agrees to take at least the same precautions to
protect Confidential Information as such party would utilize to ensure the
protection, confidentiality and security of its own confidential information.
Each Party, at its own expense, will properly use security

                                  Page 4 of 8
<PAGE>
procedures which are reasonably sufficient to ensure that all transmissions of
documents are authorized and to protect its business records and data from
improper access.

Upon the expiration or earlier termination of this Agreement, a party may, in
writing, request either the prompt return or destruction, and a written
certification of such destruction, of any Confidential Information provided to
the other party.

Each party further acknowledges that monetary damages may not alone be a
sufficient remedy for unauthorized disclosure of Confidential Information and
that the non-disclosing party shall be entitled to seek all remedies and damages
available in law and equity, including but not limited to such injunctive relief
as may be deemed proper by a court of competent jurisdiction.

16.   REPRESENTATIONS AND WARRANTIES

Vendor represents and warrants to Best Buy that:

-     Vendor has the authority to enter into this Agreement and to sell the
      Products to Best Buy, free and clear of all liens, charges, encumbrances,
      or other restrictions, and that the persons signing this Agreement on
      behalf of Vendor are authorized to sign.

-     The Products shall be free from defects in material and workmanship, and
      shall be fit and safe for the use(s) normally and reasonably intended.

-     The Products are of merchantable quality and shall perform in conformance
      with specifications.

-     Vendor shall provide to Best Buy, at no charge, adequate copies of any
      necessary training and product information brochures, and will assist with
      the training of Best Buy personnel on Best Buy's premises, at no charge,
      as reasonably necessary so that Best Buy's sales and service personnel
      will be adequately knowledgeable with respect to the Products.

-     Vendor will warrant to the end user the Products in accordance with
      Vendor's applicable standard Product warranty.

-     Vendor will comply with all applicable laws and regulations in performing
      its obligations under this Agreement, including but not limited to laws
      and regulations pertaining to product design, manufacture, packaging and
      labeling; and, if applicable, importation, the Foreign Corrupt Practices
      Act, and laws and treaties designed to protect human rights.

-     If Vendor receives notice from a governmental authority of any material
      non-compliance with applicable laws, or receives notice of claim(s) from
      consumer(s) (which, individually or in the aggregate, may reasonably be
      expected to result in material liability to Vendor and/or Best Buy) that a
      Product is defective or does not comply with all applicable laws, it shall
      notify Best Buy within 10 days regarding the existence and nature of such
      claim(s).

-     Vendor shall provide detailed, accurate product specification information
      and manufacturer's warranty information for all Products. Vendor must
      provide this information to its buyer representative 6 weeks before the
      first Product ship date or promptly upon Best Buy's request. Failure to
      provide such information in a timely manner may, in Best Buy's sole
      discretion, result in a delay in Product placement.

-     Vendor shall deliver samples of Product on a timely basis and upon the
      reasonable request of Best Buy.

-     Vendor shall comply with Best Buy's security source tagging requirement,
      which is subject to change from time to time upon reasonable notice to
      Vendor.

Best Buy represents and warrants to Vendor that:

-     Best Buy has the authority to enter into this Agreement, and that the
      persons signing this Agreement on behalf of Best Buy are authorized to
      sign.

-     Best Buy agrees to exert commercially reasonable efforts to promote and
      sell the Products consistent with Best Buy's sales, marketing and
      merchandising plans, as may be amended from time to time in Best Buy's
      sole and absolute discretion.

17.   TERM AND TERMINATION

TERM: This Agreement will commence upon the effective date, which shall be the
date when it has been fully executed by authorized representatives of both
parties, and shall continue until it is terminated according to its terms.

TERMINATION: Either party may terminate this Agreement at any time without cause
upon 90 days written notice to the other party. In the event of a material
breach of this Agreement, this Agreement may be terminated immediately by the
non-breaching party, provided that notice describing the breach has been
provided to the breaching party and the breaching party has failed to cure such
breach within 30 days of receipt of notice.

EVENTS ON TERMINATION: Upon expiration or the termination of this Agreement
without cause, the parties shall agree to either (i) completion by Best Buy of
sell-through of the remaining Product inventory or (ii) return of the remaining
Product inventory to Vendor, for which Best Buy shall receive a refund, at cost,
minus one-half (1/2) of the return freight charges (freight shall be arranged by
Best Buy). Unless Best Buy elects to sell through the remaining Product
inventory with the permission of Vendor, the breaching party shall be
responsible for all return freight charges and the return shipment of all
remaining Product inventory to Vendor. Best Buy shall receive a refund, at cost,
for all returned Product inventory.

18.   INDEMNIFICATION

Vendor will indemnify, defend, and hold Best Buy harmless from and against any
and all claims, actions, liabilities, losses, costs and expenses ("Claims")
arising from or in connection with Vendor's (i) breach of this Agreement,
including but limited to its representations and warranties; (ii) acts or
omissions of Vendor relating to the Products which includes, but is not limited
to Claims relating to alleged infringement of third party intellectual property
or proprietary rights; Claims that the Products, or use thereof, caused personal
injury, death, or real or personal property damage; (iii) false or misleading
Product specifications or other content provided to Best Buy to promote and sell
the Products; and (iv) failure to promptly perform its obligations in connection
with a manufacturer's rebate offer.

Further, Vendor agrees to fully indemnify, defend and hold harmless against any
Claims resulting from a product recall, whether such recall is initiated by
Vendor prior to or after consumer complaints, or regardless of the existence of
consumer complaints.

                                  Page 5 of 8
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[***] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

Best Buy agrees to give Vendor prompt written notice of any claims, to tender
the defense to Vendor, and to grant Vendor the right to control settlement and
resolution. Vendor agrees to pay all costs of liability, settlement and defense,
including attorney fees and costs.

19.   INSURANCE

Within 10 business days of the effective date of this Agreement, Vendor agrees
to procure and maintain a minimum amount of $5,000,000 of appropriate insurance
against the types of claims for which Vendor has agreed to indemnify Best Buy,
to name Best Buy as an Additional Insured, and to supply Best Buy with a
Certificate of Insurance that names Best Buy as an Additional Insured, and which
also provides that such insurance will not be canceled or changed unless at
least thirty (30) days prior written notice has been given to Best Buy of such
changes. Best Buy does not represent or warrant that the coverage of insurance
specified herein is sufficient or adequate to protect Vendor's interests or
liabilities. If Vendor fails to procure or at any time fails to maintain
insurance as required by this section, Best Buy may terminate this Agreement
immediately and without notice.

20.   ASSIGNMENT

This Agreement may not be assigned by either party without first obtaining the
other party's express written consent, which consent shall not be unreasonably
withheld; provided, however, that Best Buy may assign this Agreement, without
obtaining Vendor's express written consent, to (i) a successor corporation
resulting from a merger, consolidation, or non-bankruptcy consolidation or to a
purchaser of all or substantially all of Best Buy's assets or a majority, or
controlling interest in Best Buy's voting stock, provided that the purchaser's
net worth at the time of purchase is equal to or greater than that of Best Buy,
and further provided that the purchaser is not a competitor of Vendor; and (ii)
a present or future subsidiary or affiliate. Any attempted assignment in
violation of this Agreement shall be null and void.

If Vendor assigns payments to an assignee/factor, Vendor understands and agrees
that Vendor and the assignee/factor will be required to sign Best Buy's standard
acknowledgment form to assure Best Buy that assignee/factor understands the
rights being assigned (e.g., that deductions from invoice payments may be made
in accordance with this Agreement between Best Buy and Vendor.

21.   AUDIT RIGHTS; CLAIMS AND CHARGE-BACKS

-     AUDIT RIGHTS: Each party shall have the right to, upon reasonable prior
      written notice and at reasonable times during regular business hours,
      audit the other party to assure compliance with the terms and conditions
      of this Agreement. If the audit reveals that a party is not performing in
      material compliance with the terms of this Agreement, then, in addition to
      any other legal and equitable rights and remedies available, the party not
      in compliance shall reimburse the other for the reasonable costs of the
      audit.

-     CLAIMS: Neither party hereto may raise a claim of any nature relative to
      this Agreement [***] after the date of any such cause of action accrued.

-     CHARGE-BACKS: Vendor has [***] from date of deduction (check date) to
      provide written denial of charge-backs, including all supporting
      documentation. If no denial is received by Best Buy [***], Best Buy will
      assume the deductions were accepted by the Vendor, and Vendor hereby
      agrees not to contest such deductions. Rejected charge-backs must be
      returned using the Dispute Control Document, which may be accessed at
      www.extendingthereach.com.

22.   AVOIDANCE OF CONFLICT OF INTEREST; CODE OF CONDUCT STANDARDS

Vendor agrees to respect and abide by Best Buy's conflict of interest and code
of conduct policies, which may be amended from time to time and which will be
made available to Vendor upon request. Vendor agrees to contact Best Buy's Open
Line (1-800-520-1132) for information concerning Best Buy's policies and to
discuss any ethical or conduct concerns that they may have as a result of their
contact with Best Buy personnel. Vendor understands and acknowledges that Best
Buy's conflict of interest and code of conduct policies address Vendor-paid
travel, gifts and gratuities, offering and accepting bribes, family members and
close personal relationships involving employees of both parties, personal
investments in the other party, Vendor-sponsored charitable and other events,
Vendor product samples, Vendor promotional copies, direct personal purchases
from Vendors by Best Buy employees, and awards, incentives and other spiffs from
vendors. Vendor agrees to avoid conflict of interest situations with Best Buy,
to deal in arms length negotiations with Best Buy, and to contact Best Buy's
Open Line to address Vendor's concerns. Best Buy similarly agrees to abide by
Vendor's policies concerning this subject matter.

23.   FORCE MAJEURE

Neither party shall be in breach of this Agreement solely due to causes beyond
the control and without the fault or negligence of such party. Such causes may
include, but are not restricted to, acts of God or of a public enemy, acts of
the government in either its sovereign or contractual capacity, fires, floods,
epidemics, quarantine restrictions, strikes, freight embargoes, power failure,
or failure of the U.S. postal system, but in every case the failure to perform
must be beyond the control and without fault or negligence of the party failing
to perform. The Vendor also agrees to inform Best Buy of any Force Majeure event
within 48 hours of its occurrence. Failure to notify Best Buy of such an event
within 48 hours will result in forfeiture, by Vendor, to claim that such an
event had occurred.

24.   NOTICES

                                  Page 6 of 8
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All notices, requests, demands and other communications which are required or
may be given under this Agreement shall be in writing and shall be deemed to
have been duly given if hand-delivered or mailed by either registered or
certified mail, return receipt requested, or by nationally recognized overnight
courier service, receipt confirmed. In the case of notices via first-class mail
or courier service, notices shall be deemed effective upon the date of receipt
or upon the date returned for non-delivery. Notices shall be addressed to the
parties as set forth below, unless either party notifies the other of a change
of address, in which case the latest noticed address shall be used:

<TABLE>
<CAPTION>
Notices to Vendor:                 Notices To Best Buy:
-----------------                  -------------------
<S>                                <C>
Directed Electronics, Inc.         Best Buy Co., Inc.
One Viper Way                      Attn:
Vista, California  92085           Copy To: General Counsel, Legal Department
                                   7075 Flying Cloud Drive
                                   Eden Prairie, Minnesota  55344
</TABLE>

25.   GENERAL

RELATIONSHIP OF THE PARTIES: The relationship between the parties shall be that
of independent contractor. Nothing herein shall be construed as creating or
constituting the relationship of employer/employee, franchisor/franchisee,
principal/agent, partnership, or joint venture between the parties.

GOVERNING LAW; JURISDICTION: This Agreement shall be governed by and interpreted
under the laws of the State of Minnesota. Vendor and Best Buy expressly consent
and submit to the exclusive jurisdiction of the state and federal district
courts located In Minneapolis, Minnesota.

ENFORCEABILITY: If any provision of this Agreement is held to be unenforceable
by a court of competent jurisdiction, such provision shall be more narrowly and
equitably construed so that it becomes legal and enforceable, and the entire
Agreement shall not fail on account thereof and the balance of the Agreement
shall continue in full force and effect.

NO WAIVER: Any of the provisions of this Agreement may be waived by the party
entitled to the benefit thereof. Neither party will be deemed, by any act or
omission, to have waived any of its rights or remedies hereunder unless such
waiver is in writing and signed by the waiving party, and then only to the
extent specifically set forth in such writing. A waiver with reference to one
event will not be construed as continuing or as a bar to or waiver of any other
right or remedy, or as to a subsequent event.

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

ENTIRE AGREEMENT; AMENDMENT: This Agreement, including the exhibits attached
hereto, contains the entire Agreement between the parties with respect to the
subject matter hereof, supersedes all prior agreements, negotiations and oral
understandings, if any, and may not be amended, supplemented, or modified in any
way, except by an amendment in writing and signed by authorized officers of the
parties hereto. No amendment shall be affected by the acknowledgement or
acceptance of a purchase order, invoice, or other forms stipulating different
terms. This Agreement shall inure to the benefit of and be binding upon each of
the parties and their respective successors, assigns, heirs, executors,
administrators, trustees and legal representatives.

RESERVATION OF RIGHTS: Duties and obligations imposed by this Agreement and
rights and remedies available hereunder shall be in addition to and not a
limitation of duties, obligations, rights and remedies otherwise imposed or
available by law.

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

DRAFTSMANSHIP: Each of the parties hereto has been represented by its own
counsel. In the event of a dispute, no provision of this Agreement shall be
construed in favor of one party and against the other by reason of the
draftsmanship of this Agreement.

SURVIVAL: The expiration or termination of this Agreement shall not terminate
vested rights of either party from any liabilities or obligations incurred under
this Agreement prior to and which by their nature are intended to survive
expiration or termination, including but not limited to provisions relating to
confidentiality, indemnification, returns, and proprietary rights.

                                  Page 7 of 8
<PAGE>

ADDENDA (CHECK IF APPLICABLE)

Each checked Addendum is hereby incorporated into and made a part of this
Agreement:

[X]   Vendor Program Agreement

[X]   Product Service Agreement

[ ]   Collaborative Transportation Agreement

[ ]   Solution Plus Rebate Agreement

[ ]   Direct Import Agreement

[ ]   Configure to Order Agreement

[ ]   Consignment Agreement

THIS AGREEMENT SHALL BE EFFECTIVE WHEN (i) FULLY EXECUTED BY THE PARTIES; AND
(ii) EACH NECESSARY ADDENDUM IS ATTACHED HERETO:

BEST BUY CO., INC.

Authorized Officer:        /s/ Michael London
                    ------------------------------------
                              (Signature)

Name: Michael London
      --------------------------------------
                   (Please Print)

Title: EVP, General Merch. Mgr

Date: April 11, 2001

BEST BUY PURCHASING LLC

Authorized Officer:        /s/ Michael London
                    -----------------------------------
                             (Signature)

Name: Michael London
      --------------------------------------
                   (Please Print)

Title: EVP, General Merch. Mgr

Date: April 11, 2001

VENDOR: DIRECTED ELECTRONICS, INC.

Authorized Officer:       /s/ James E. Minarik
                    --------------------------------
                               (Signature)

Name: James E. Minarik
      --------------------------------------
                   (Please Print)

Title: President & CEO

Date: March 30, 2001

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}]]