Document:

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                                                                   Exhibit 10.21

                           DIRECTED ELECTRONICS, INC.

                                JAMES E. MINARIK
                        SALE BONUS CANCELLATION AGREEMENT

      This Sale Bonus Cancellation Agreement (the "Agreement") is made and
entered into by James E. Minarik (the "Employee") and Directed Electronics,
Inc., a Florida corporation formerly known as "DEI Holdings, Inc." (the
"Company").

                                    RECITALS

      A. The Employee and the Company are parties to that certain Sale Bonus
Agreement, dated as of December 7, 2004, a copy of which is attached as Exhibit
A (the "Sale Bonus Agreement"), which provides the Employee with certain
compensation in the event of a Company "Sale Event" for consideration in excess
of certain specified amounts (as described in the Sale Bonus Agreement).

      B. The Company has filed a registration statement (the "Registration
Statement") on Form S-1 (File No. 333-127823) pursuant to the Securities Act of
1933, as amended.

      C. The Sale Bonus Agreement provides in Section 3 that in the event of the
Company's initial public offering of common stock, the Company and the Employee
will negotiate a fair compensation arrangement.

                                    AGREEMENT

      In consideration of the mutual covenants and premises herein contained,
the parties agree as follows:

      1. Termination of Sale Bonus Agreement and Related IPO Awards.

         (a) Schedule 1 Definitions. Attached as Schedule 1 are certain
definitions which are incorporated herein by reference. Unless otherwise
provided herein, capitalized terms used in this Agreement have the meanings
attributed thereto on Schedule 1.

         (b) Employee's Applicable Percentage. The Sale Bonus Agreement provides
that, upon the consummation of any "Sale Event" that results in more than
$83,750,000 of net proceeds distributable to the Company's common shareholders,
the Employee shall receive an amount equal to the sum of (x) $2,235,973, plus
(y) 5.0% of the "Net Equity Proceeds" (as such terms are defined in the Sale
Bonus Agreement). Such 5.0% figure is referred to herein as "Employee's
Applicable Percentage."

         (c) IPO Closing. The consummation of the initial public offering of the
Company's common stock pursuant to the Registration Statement is referred to
herein as the "IPO Closing." Upon the IPO Closing, the Sale Bonus Agreement
shall be null and void and of no further effect.

         (d) IPO Awards. Upon the IPO Closing, and in consideration of the
related termination of the Sale Bonus Agreement, the Company shall:

            (i) pay to the Executive an amount (the "Cash Amount") equal to the
sum of (1) $2,235,973, plus (2) the product of (x) the Employee's Applicable
Percentage, multiplied by (y) twenty percent (20%), multiplied by (z) the
"Deemed Company Value" (as defined on Schedule 1); and

            (ii) grant to the Employee a Restricted Stock Unit Award, pursuant
to the agreement in the form attached hereto as Exhibit B (the "RSU"), for the
number of shares of Company common stock equal to the quotient of (1) the
product of (x) the Employee's Applicable Percentage,
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multiplied by (y) eighty percent (80%), multiplied by (z) the "Deemed Company
Value," divided by (2) the "IPO Price" (as defined on Schedule 1).

      2. Effectiveness. If the IPO Closing does not occur by May 15, 2006, this
Agreement shall be null and void.

      3. Payment Dates. The Cash Payment shall be made within thirty (30) days
of the IPO Closing; provided, however, that if the IPO Closing is in 2006, the
Cash Payment shall be made in January 2007. The RSUs shall be granted within
thirty (30) days of the IPO Closing pursuant to the form attached hereto as
Exhibit B.

      4. Tax Provisions.

         (a) Tax Consequences. Employee has reviewed with Employee's own tax
advisors the federal, state, local and foreign tax consequences of the
transactions contemplated by this Agreement. Employee is relying solely on such
advisors and not on any statements or representations of the Company or any of
its agents. Employee understands that Employee (and not the Company) shall be
responsible for any tax liability that may arise as a result of the transactions
contemplated by this Agreement.

         (b) Withholding Obligations. Employee hereby authorizes withholding
from the amounts paid hereunder, as well as any payroll and any other amounts
payable to Employee, and otherwise agrees to make adequate provision for, any
sums required to satisfy the federal, state, local and foreign tax withholding
obligations of the Company, if any, which arise in connection with the payments
to be made under this Agreement.

      5. Amendment, Modification and Entire Agreement. No provision of this
Agreement may be modified, waived or discharged unless that waiver, modification
or discharge is agreed to in writing and signed by the Employee and the
President and Chief Executive Officer of the Company. No waiver by either party
of any breach by the other party to this Agreement of any condition or provision
of this Agreement shall be deemed a waiver of any other conditions or provisions
of this Agreement. This Agreement and the Restricted Stock Units Award Agreement
constitute the entire contract between the parties hereto with regard to the
subject matter hereof. Employee further acknowledges that as of the Effective
Date, this Agreement sets forth the entire understanding between Employee and
the Company regarding the cancellation of the Sale Bonus Agreement and
supersedes all prior oral and written agreements on that subject. No agreements
or representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not set forth
expressly in this Agreement.

      6. Transferability and Assignment. The rights and obligations under this
Agreement are not assignable or transferable by the Employee in whole or in part
otherwise than by will or under the applicable laws of descent and distribution.
In addition, the payments due under this Agreement shall not be assigned,
negotiated, pledged or hypothecated in any way (whether by operation of law or
otherwise), and the payments shall not be subject to execution, attachment or
similar process. The provisions of this Agreement shall inure to the benefit of,
and be binding upon, the Company and its successors and assigns and upon
Employee, Employee's assigns and the legal representatives, heirs and legatees
of Employee's estate, whether or not any such person shall have become a party
to this Agreement and have agreed in writing to join herein and be bound by the
terms hereof. The Company may assign its rights and obligations under this
Agreement to any person or entity selected by the Board.

      7. Employment At Will. Nothing in this Agreement shall confer upon
Employee any right to continue in the service of the Company or its affiliates
for any period of specific duration or interfere with or otherwise restrict in
any way the rights of the Company (or its affiliates employing or retaining
Employee) or of Employee, which rights are hereby expressly reserved by each, to
terminate Employee's service at any time for any reason, with or without cause.
If Employee's employment with the Company or any affiliate is terminated prior
to the IPO Closing for "Cause" (as defined in that certain Amended and

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Restated Employment Agreement, dated as of January 1, 2004, between the
Employee and DEI Sales, Inc., a subsidiary of the Company formerly known as
"Directed Electronics, Inc."), or if Employee voluntarily terminates his
employment with the Company prior to the IPO Closing, this Agreement and the
Sale Bonus Agreement shall be automatically terminated, and Employee shall not
be entitled to receive any payment or other compensation hereunder or
thereunder.

      8. Notices. Any notice required to be given under this Agreement shall be
in writing and shall be deemed effective upon personal delivery or upon deposit
in the U.S. mail, registered or certified, postage prepaid and properly
addressed to the party entitled to such notice at the address indicated below
such party's signature line on this Agreement or at such other address as such
party may designate by ten (10) days' advance written notice under this
paragraph to all other parties to this Agreement.

      9. No Trust or Fund Created. Neither this Agreement nor the grant of the
RSUs shall create or be construed to create a trust or separate fund of any kind
or a fiduciary relationship between the Company and the Employee or any other
person. The payments subject to this Agreement represent only the Company's
unfunded and unsecured promise. To the extent that the Employee or any other
person acquires a right to receive payments from the Company pursuant to this
Agreement, that right shall be no greater than the right of any unsecured
general creditor of the Company.

      10. Employee Undertaking. Employee hereby agrees to take whatever
additional action and execute whatever additional documents the Company may deem
necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed on either Employee or the shares of Company
Common Stock deliverable pursuant to the RSUs.

      11. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of California without regard to the
conflict-of-laws rules thereof or of any other jurisdiction.

      12. Interpretation. The Employee accepts this payments made under this
Agreement subject to all the terms and provisions of this Agreement. The
undersigned Employee hereby accepts as binding, conclusive and final all
decisions or interpretations of the Company's Board of Directors upon any
questions arising under this Agreement.

      13. Section 409A Amendments. The Company agrees to cooperate with Employee
to amend this Agreement to the extent either the Company or Employee deems
necessary to avoid imposition of any additional tax or income recognition prior
to actual payment to Employee under Code Section 409A and any temporary or final
Treasury Regulations and Internal Revenue Service guidance thereunder, but only
to the extent such amendment would not have an adverse effect on the Company and
would not provide Employee with any additional rights, in each case as
determined by the Company, in its sole discretion.

      14. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument.

      15. Headings. Headings are given to the Paragraphs and Subparagraphs of
this Agreement solely as a convenience to facilitate reference. The headings
shall not be deemed in any way material or relevant to the construction or
interpretation of this Agreement or any provision thereof.

      16. Representations. Employee acknowledges and agrees that Employee has
reviewed this Agreement in its entirety, has had an opportunity to obtain the
advice of counsel prior to executing this Agreement, and fully understands all
provisions of this Agreement. Without limiting the generality of the foregoing,
Employee also represents and warrants to the Company as follows:

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         (a) Authorization of Transaction; Agreement Binding. Employee has full
power and authority to execute and deliver, and to perform his obligations
under, this Agreement. This Agreement constitutes the valid and legally binding
obligation of Employee, enforceable in accordance with its terms, except as such
enforcement may be limited by general equitable principles or by applicable
bankruptcy, insolvency or similar laws which affect creditors' rights generally.

         (b) No Conflict. The execution, delivery and performance of this
Agreement by Employee do not and will not violate, conflict with, or result in a
breach of or default under: (A) any applicable law, order, judgment or decree;
or (B) any agreement, contract or other obligation to which Employee is a party,
in each case except to the extent that such violation, conflict, default or
breach could not reasonably be expected to impair Employee's ability to perform
its obligations hereunder.

         (c) Opportunity to Ask Questions. Employee has had an opportunity to
ask questions and receive answers concerning the capitalization of the Company,
the terms of this Agreement, the Registration Statement, and the financial
condition and results of operations of the Company, and has had full access to
such other information concerning the Company as Employee has requested.

         (d) Certain Risk Factors. Employee has reviewed, or has had an
opportunity to review, copies of the Registration Statement and the "Risk
Factors" set forth therein. Employee has also reviewed, or has had an
opportunity to review, such other documents and information requested by
Employee to Employee's satisfaction. Employee understands the speculative nature
of and risks involved in the proposed investment in the Company, and all matters
relating to the structure and the operations of the Company have been discussed
and explained to Employee's satisfaction, including the risks described in the
Registration Statement.

         (e) Deemed Company Value. Employee understands and acknowledges that
the "Deemed Company Value" reflects the deduction of various expense amounts
that might not be applicable in connection with a Company "Sale Event."

EMPLOYEE:                                   DIRECTED ELECTRONICS, INC.:

/s/ James E. Minarik                   /s/ Troy D. Templeton
------------------------------         -----------------------------------------
James E. Minarik                       Troy D. Templeton,
                                       Chairman of the Board

12-01-2005                             12-01-2005
------------------------------         -----------------------------------------
Date                                   Date
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                                   Schedule 1

                                   DEFINITIONS

      "Associate Gain Program Amount" means $2,000,000.

      "Base Equity Value" means the sum of (i) the Starting Value plus (ii) the
Share Price Increase minus (iii) the Share Price Decrease, minus (iv) the Shares
Issued Decrement.

      "Deemed Company Value" means the remainder of (i) the Equity for Gain
Share Program, minus (ii) $89,750,000.

      "Equity for Gain Share Program" means the remainder of (i) the product of
(x) the Base Equity Value multiplied by (y) 93% minus (ii) the Estimated IPO
Payments, minus (iii) the Warrant Value.

      "Estimated IPO Payments" means the sum of (i) the Minarik Catch Up
Payment, plus (ii) the Sub Debt Payment, plus (iii) the Trivest Termination
Payment, plus (iv) the Miscellaneous Estimated IPO Expenses, plus (v) the
Associate Gain Program Amount (i.e., a total of $84,975,973).

      "IPO Price" means the initial public offering price per share reflected in
the final Rule 430A prospectus included in the Registration Statement.

      "Minarik Catch Up Payment" means $2,235,973.

      "Miscellaneous Estimated IPO Expenses" means $2,500,000.

      "Shares Issued Decrement" means the product of (x) the excess, if any, of
5,937,500 over the number of shares of Company Common Stock actually sold by the
Company (and not the "Selling Shareholders") pursuant to the Registration
Statement, multiplied by (y) the IPO Price.

      "Share Price Decrease" means the product of (x) the excess, if any, of
$16.00 over the IPO Price multiplied by (y) $25,937,500.

      "Share Price Increase" means the product of (x) the excess, if any, of the
IPO Price over $16.00 multiplied by (y) $25,937,500.

      "Starting Value" means $415,000,000, which is based on an anticipated IPO
Price of $16.00 and the Company's anticipated sale of 5,937,500 shares pursuant
to the Registration Statement.

      "Sub Debt Payment" means $74,740,000.

      "Trivest Termination Payment" means $3,500,000.

      "Warrant Value" means the product of (x) 1,420,037, multiplied by (y) the
IPO Price.
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                                    EXHIBIT A

                              SALE BONUS AGREEMENT
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                                    EXHIBIT B

                      RESTRICTED STOCK UNIT AWARD AGREEMENT<PAGE>
                                                                   EXHIBIT 10.22

                                     FORM OF
                            INDEMNIFICATION AGREEMENT

         This Indemnification Agreement (this "Agreement"), dated as of
__________, 2005, is made by and between Directed Electronics, Inc., a Florida
corporation (the "Company"), and the undersigned who is either a director, an
officer, or both a director and officer of the Company (the "Indemnitee").

                                    RECITALS

         A. The Company is aware that competent and experienced persons are
reluctant to serve as directors or officers of corporations unless they are
protected by comprehensive liability insurance and/or indemnification, due to
the exposure to litigation costs and risks resulting from their service to such
corporations, and due to the fact that the exposure frequently bears no
reasonable relationship to the compensation of such directors and officers;

         B. The Board of Directors of the Company (the "Board") has concluded
that, to retain and attract talented and experienced individuals to serve as
officers and directors of the Company, it is necessary for the Company
contractually to indemnify officers and directors and to assume for itself
maximum liability for expenses and damages in connection with claims against
such officers and directors in connection with their service to the Company;

         C. Section 607.0850 of the Florida Business Corporation Act ("Section
607") empowers the Company to indemnify by agreement its present and former
officers, directors, employees, and agents and persons who serve, at the request
of the Company, as directors, officers, employees, or agents of other
corporations, partnerships, joint ventures, trusts, or other enterprises and
expressly provides that the indemnification provided by Section 607 is not
exclusive; and

         D. The Company desires and has requested the Indemnitee to serve or
continue to serve as a director or officer of the Company free from undue
concern for claims for damages arising out of or related to such services to the
Company.

         NOW, THEREFORE, the parties hereto, intending to be legally bound,
hereby agree as follows:

         1.       DEFINITIONS

                  1.1 Agent. For the purposes of this Agreement, "agent" of the
Company means any person who is or was a director or officer of the Company or a
subsidiary of the Company; or is or was serving at the request of, for the
convenience of, or to represent the interest of the Company or a subsidiary of
the Company as a director or officer of another foreign or domestic corporation,
partnership, joint venture, trust, or other enterprise or an affiliate of the
Company; or was a director or officer of another enterprise or affiliate of the
Company at the request of, for the convenience of, or to represent the interests
of such predecessor corporation. The term "enterprise" includes any employee
benefit plan of the Company, its subsidiaries, affiliates, and predecessor
corporations.

                  1.2 Expenses. For the purposes of this Agreement, "expenses"
includes all direct and indirect costs of any type or nature whatsoever
(including, without limitation, all attorneys' fees and related disbursements
and other out-of-pocket costs) actually and reasonably incurred by the
Indemnitee in connection with the investigation, defense, or appeal of a
proceeding or establishing or enforcing a right to indemnification or
advancement of expenses under this Agreement, Section 607 or otherwise;
provided, however, that expenses shall not include any judgments, fines, ERISA
excise taxes or penalties, or amounts paid in settlement of a proceeding.

                  1.3 Proceeding. For the purposes of this Agreement,
"proceeding" means any threatened, pending, or completed action, suit, or other
type of proceeding, whether civil, criminal, administrative, investigative, or
any other type whatsoever.
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                  1.4 Subsidiary. For purposes of this Agreement, "subsidiary"
means any corporation of which more than 50% of the outstanding voting
securities is owned directly or indirectly by the Company, by the Company and
one or more of its subsidiaries, or by one or more of the Company's
subsidiaries.

                  1.5 Company. For purposes of this Agreement, the "Company"
shall include, in addition to the resulting corporation, any constituent
corporation (including any constituent of a constituent) absorbed in a
consolidation or merger, so that any person who is or was a director, officer,
employee, or agent of such constituent corporation, or is or was serving at the
request of such constituent corporation as a director, officer, employee, or
agent of another corporation, partnership, joint venture, trust, or other
enterprise, shall stand in the same position under this Agreement with respect
to the resulting or surviving corporation as such person would have with respect
to such constituent corporation if its separate existence had continued.

                  1.6 Other Enterprises. For purposes of this Agreement, "other
enterprises" shall include employee benefit plans.

                  1.7 Fines. For purposes of this Agreement, references to
"fines" shall include any excise taxes assessed on a person with respect to any
employee benefit plan.

                  1.8 Serving at the Request of the Company. For purposes of
this Agreement, "serving at the request of the Company" shall include any
service as a director, officer, employee, or agent of the Company that imposes
duties on, or involves services by, such director, officer, employee, or agent
with respect to an employee benefit plan, its participants or beneficiaries; and
a person who acted in good faith and in a manner such person reasonably believed
to be in the interest of the participants and beneficiaries of an employee
benefit plan shall be deemed to have acted in a manner "not opposed to the best
interests of the Company" as referred to in this Agreement.

         2. AGREEMENT TO SERVE. The Indemnitee agrees to serve and/or continue
to serve as an agent of the Company, at the will of the Company (or under
separate agreement, if such agreement exists), in the capacity the Indemnitee
currently serves as an agent of the Company, faithfully and to the best of the
Indemnitee's ability, so long as the Indemnitee is duly appointed or elected and
qualified in accordance with the applicable provisions of the charter documents
of the Company or any subsidiary of the Company; provided, however, that the
Indemnitee may at any time and for any reason resign from such position (subject
to any contractual obligation that the Indemnitee may have assumed apart from
this Agreement), and the Company and any subsidiary shall have no obligation
under this Agreement to continue the Indemnitee in any such position.

         3. DIRECTORS' AND OFFICERS' INSURANCE. The Company shall, to the extent
that the Board determines it to be economically reasonable, maintain a policy of
directors' and officers' liability insurance ("D&O Insurance"), on such terms
and conditions as may be approved by the Board.

         4. MANDATORY INDEMNIFICATION. Subject to Section 9 below, the Company
shall indemnify the Indemnitee pursuant to this Section 4.

                  4.1 Third-Party Actions. If the Indemnitee is a person who was
or is a party to any proceeding (other than an action by or in the right of the
Company) by reason of the fact that the Indemnitee is or was a director,
officer, employee, or agent of the Company, or by reason of anything done or not
done by the Indemnitee in any such capacity, against any and all expenses and
liabilities of any type whatsoever (including, but not limited to, judgments,
fines, ERISA excise taxes or penalties, and amounts paid in settlement) actually
and reasonably incurred by the Indemnitee in connection with the investigation,
defense, settlement, or appeal of such proceeding if the Indemnitee acted in
good faith and in a manner the Indemnitee reasonably believed to be in, or not
opposed to, the best interests of the Company and, with respect to any criminal
action or proceeding, had no reasonable cause to believe the Indemnitee's
conduct was unlawful; and

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                  4.2 Derivative Actions. If the Indemnitee is a person who was
or is a party to any proceeding by or in the right of the Company to procure a
judgment in its favor by reason of the fact that the Indemnitee is or was a
director, officer, employee, or agent of the Company, or by reason of anything
done or not done by the Indemnitee in any such capacity, against any amounts
paid in settlement of any such proceeding and all expenses actually and
reasonably incurred by the Indemnitee in connection with the investigation,
defense, settlement, or appeal of such proceeding, not exceeding, in the
judgment of the Board, the estimated expense of litigating the proceeding to
conclusion, if the Indemnitee acted in good faith and in a manner the Indemnitee
reasonably believed to be in, or not opposed to, the best interests of the
Company; except that no indemnification under this subsection shall be made in
respect of any claim, issue, or matter as to which such person shall have been
finally adjudged to be liable to the Company unless, and only to the extent
that, the court in which such proceeding was brought, or any other court of
competent jurisdiction, shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, such
person is fairly and reasonably entitled to indemnity for such amount which such
court shall deem proper; and

                  4.3 Exception for Amounts Covered by Insurance.
Notwithstanding the foregoing, the Company shall not be obligated to indemnify
the Indemnitee for expenses or liabilities of any type whatsoever (including,
but not limited to, judgments, fines, ERISA excise taxes or penalties, and
amounts paid in settlement) to the extent such have been paid to the Indemnitee
by D&O Insurance.

         5.       PARTIAL INDEMNIFICATION AND CONTRIBUTION.

                  5.1 Partial Indemnification. If the Indemnitee is entitled
under any provision of this Agreement to indemnification by the Company for some
or a portion of any expenses or liabilities of any type whatsoever (including,
but not limited to, judgments, fines, ERISA excise taxes or penalties, and
amounts paid in settlement) incurred by the Indemnitee in the investigation,
defense, settlement, or appeal of a proceeding but is not entitled, however, to
indemnification for all of the total amount thereof, then the Company shall
nevertheless indemnify the Indemnitee for such total amount except as to the
portion thereof to which the Indemnitee is not entitled to indemnification.

                  5.2 Contribution. If the Indemnitee is not entitled to the
indemnification provided in Section 4 for any reason other than the statutory
limitations set forth in the Florida Business Corporation Act, then in respect
of any threatened, pending, or completed proceeding in which the Company is
jointly liable with the Indemnitee (or would be if joined in such proceeding),
the Company shall contribute to the amount of expenses (including attorneys'
fees), judgments, fines, and amounts paid in settlement actually and reasonably
incurred and paid or payable by the Indemnitee in such proportion as is
appropriate to reflect (i) the relative benefits received by the Company on the
one hand and the Indemnitee on the other hand from the transaction from which
such proceeding arose and (ii) the relative fault of the Company on the one hand
and of the Indemnitee on the other hand in connection with the events that
resulted in such expenses, judgments, fines, or settlement amounts, as well as
any other relevant equitable considerations. The relative fault of the Company
on the one hand and of the Indemnitee on the other hand shall be determined by
reference to, among other things, the parties' relative intent, knowledge,
access to information, and opportunity to correct or prevent the circumstances
resulting in such expenses, judgments, fines, or settlement amounts. The Company
agrees that it would not be just and equitable if contribution pursuant to this
Section 5 were determined by pro rata allocation or any other method of
allocation which does not take account of the foregoing equitable
considerations.

         6.       MANDATORY ADVANCEMENT OF EXPENSES.

                  6.1 Advancement. Subject to Section 9 below, the Company shall
advance all expenses incurred by the Indemnitee in connection with the
investigation, defense, settlement, or appeal of any proceeding to which the
Indemnitee is a party or is threatened to be made a party by reason of the fact
that the Indemnitee is or was a director, officer, employee, or agent of the
Company or by reason of anything done or not done by the Indemnitee in any such
capacity. The Indemnitee hereby undertakes to promptly repay such amounts
advanced only if, and to the extent that, it shall ultimately by determined that
the Indemnitee is not entitled to be indemnified by the Company under the
provisions of this

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Agreement, the Articles of Incorporation or Bylaws of the Company, the Florida
Business Corporation Act, or otherwise. The advances to be made hereunder shall
be paid by the Company to the Indemnitee within thirty (30) days following
delivery of a written request therefor by the Indemnitee to the Company.

                  6.2 Exception. Notwithstanding the foregoing provisions of
this Section 6, the Company shall not be obligated to advance any expenses to
the Indemnitee arising from a lawsuit filed directly by the Company against the
Indemnitee if an absolute majority of the members of the Board reasonably
determines in good faith, within thirty (30) days of the Indemnitee's request to
be advanced expenses, that the facts known to them at the time such
determination is made demonstrate clearly and convincingly that the Indemnitee
acted in bad faith. If such a determination is made, the Indemnitee may have
such decision reviewed in the manner set forth in Section 8.5 hereof, with all
references therein to "indemnification" being deemed to refer to "advancement of
expenses," and the burden of proof shall be on the Company to demonstrate
clearly and convincingly that, based on the facts known at the time, the
Indemnitee acted in bad faith. The Company may not avail itself of this Section
6.2 as to a given lawsuit if, at any time after the occurrence of the activities
or omissions that are the primary focus of the lawsuit, the Company has
undergone a change in control. For this purpose, a change in control shall mean
a given person or group of affiliated persons or groups increasing their
beneficial ownership interest in the Company by at least twenty (20) percentage
points without advance Board approval.

         7.       NOTICE AND OTHER INDEMNIFICATION PROCEDURES.

                  7.1 Notification. Promptly after receipt by the Indemnitee of
notice of the commencement of or the threat of commencement of any proceeding,
the Indemnitee shall, if the Indemnitee believes that indemnification with
respect thereto may be sought from the Company under this Agreement, notify the
Company of the commencement or threat of commencement thereof.

                  7.2 Insurance. If, at the time of the receipt of a notice of
the commencement of a proceeding pursuant to Section 7.1 hereof, the Company has
D&O Insurance in effect, the Company shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of the Indemnitee, all amounts payable as a result of such proceeding in
accordance with the terms of such D&O Insurance policies.

                  7.3 Defense. In the event the Company shall be obligated to
advance the expenses for any proceeding against the Indemnitee, the Company, if
appropriate, shall be entitled to assume the defense of such proceeding, with
counsel approved by the Indemnitee (which approval shall not be unreasonably
withheld), upon the delivery to the Indemnitee of written notice of its election
to do so. After delivery of such notice, approval of such counsel by the
Indemnitee and the retention of such counsel by the Company, the Company will
not be liable to the Indemnitee under this Agreement for any fees of counsel
subsequently incurred by the Indemnitee with respect to the same proceeding,
provided that (a) the Indemnitee shall have the right to employ the Indemnitee's
own counsel in any such proceeding at the Indemnitee's expense; (b) the
Indemnitee shall have the right to employ the Indemnitee's own counsel in
connection with any such proceeding, at the expense of the Company, if such
counsel serves in a review, observer, advice, and counseling capacity and does
not otherwise materially control or participate in the defense of such
proceeding; and (c) if (i) the employment of counsel by the Indemnitee has been
previously authorized by the Company, (ii) the Indemnitee shall have reasonably
concluded that there may be a conflict of interest between the Company and the
Indemnitee in the conduct of any such defense, or (iii) the Company shall not,
in fact, have employed counsel to assume the defense of such proceeding, then
the fees and expenses of the Indemnitee's counsel shall be at the expense of the
Company.

         8.       DETERMINATION OF RIGHT TO INDEMNIFICATION.

                  8.1 Success on Merits. To the extent the Indemnitee has been
successful on the merits or otherwise in defense of any proceeding referred to
in Section 4.1 or 4.2 of this Agreement or in the defense of any claim, issue,
or matter described therein, the Company shall indemnify the Indemnitee

                                       4
<PAGE>
against expenses actually and reasonably incurred by the Indemnitee in
connection with the investigation, defense, or appeal of such proceeding, or
such claim, issue, or matter, as the case may be.

                  8.2 Proof by Company. In the event that Section 8.1 is
inapplicable, or does not apply to the entire proceeding, the Company shall
nonetheless indemnify the Indemnitee unless the Company shall prove by clear and
convincing evidence to a forum listed in Section 8.3 below that the Indemnitee
has not met the applicable standard of conduct required to entitle the
Indemnitee to such indemnification.

                  8.3 Applicable Forums. The Indemnitee shall be entitled to
select the forum in which the validity of the Company's claim under Section 8.2
hereof that the Indemnitee is not entitled to indemnification will be heard from
among the following, except that the Indemnitee can select a forum consisting of
the shareholders of the Company only with the approval of the Company and, if
the Indemnitee is a director or officer at the time of such determination, the
determination shall be made in accordance with (a), (b), (c) or (d) below at the
election of the Company:

                           (a)      A majority vote of a quorum consisting of
directors who are not parties to the proceeding for which indemnification is
being sought;

                           (b)      If such a quorum is not obtainable, or even
if obtainable, by majority vote of a committee of directors designated by the
Board who are not parties to the proceeding for which indemnification is being
sought;

                           (c)      By independent legal counsel (i) selected by
the Board described in subsection (a) above or the committee described in
subsection (b) above, or (ii) if the conditions of either subparagraph (a) or
(b) cannot be satisfied, selected by the full Board;

                           (d)      The majority vote of the shareholders of
the Company; or

                           (e)      The court having jurisdiction of subject
matter and the parties.

                  8.4 Submission. As soon as practicable, and in no event later
than thirty (30) days after the forum has been selected pursuant to Section 8.3
above, the Company shall, at its own expense, submit to the selected forum its
claim that the Indemnitee is not entitled to indemnification, and the Company
shall act in the utmost good faith to assure the Indemnitee a complete
opportunity to defend against such claim.

                  8.5 Appeals. If the forum selected in accordance with Section
8.3 hereof is not a court, then after the final decision of such forum is
rendered, the Company or the Indemnitee shall have the right to apply to the
court in which the proceeding giving rise to the Indemnitee's claim for
indemnification is or was pending, or any other court of competent jurisdiction,
for the purpose of appealing the decision of such forum, provided that such
right is executed within sixty (60) days after the final decision of such forum
is rendered. If the forum selected in accordance with Section 8.3 hereof is a
court, then the rights of the Company or the Indemnitee to appeal any decision
of such court shall be governed by the applicable laws and rules governing
appeals of the decision of such court.

                  8.6 Expenses for Interpretation. Notwithstanding any other
provision in this Agreement to the contrary, the Company shall indemnify the
Indemnitee against all expenses incurred by the Indemnitee in connection with
any hearing or proceeding under this Section 8 involving the Indemnitee and
against all expenses incurred by the Indemnitee in connection with any other
proceeding between the Company and the Indemnitee involving the interpretation
or enforcement of the rights of the Indemnitee under this Agreement unless a
court of competent jurisdiction finds that each of the material claims and/or
defenses of the Indemnitee in any such proceeding was frivolous or not made in
good faith.

                                       5
<PAGE>
         9. EXCEPTIONS. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of
this Agreement for the following:

                  9.1 Claims Initiated by Indemnitee. To indemnify or advance
expenses to the Indemnitee with respect to proceedings or claims initiated or
brought voluntarily by the Indemnitee and not by way of defense, except with
respect to proceedings specifically authorized by the Board or brought to
establish or enforce a right to indemnification and/or advancement of expenses
arising under this Agreement, the charter documents of the Company or any
subsidiary, or any statute or law or otherwise, but such indemnification or
advancement of expenses may be provided by the Company in specific cases if the
Board finds it to be appropriate; or

                  9.2 Unauthorized Settlements. To indemnify the Indemnitee
hereunder for any amounts paid in settlement of a proceeding unless the Company
consents in advance in writing to such settlement, which consent shall not be
unreasonably withheld; or

                  9.3 Securities Law Actions. To indemnify the Indemnitee on
account of any suit in which judgment is rendered against the Indemnitee for an
accounting of profits made from the purchase or sale by the Indemnitee of
securities of the Company pursuant to the provisions of Section 16(b) of the
Securities Exchange Act of 1934 and amendments thereto or similar provisions of
any federal, state, or local statutory law; or

                  9.4 Unlawful Indemnification. To indemnify the Indemnitee if a
final decision by a court having jurisdiction in the mater shall determine that
such indemnification is not lawful. In this respect, the Company and the
Indemnitee have been advised that the Securities and Exchange Commission takes
the position that indemnification for liabilities arising under the federal
securities laws is against public policy and is, therefore, unenforceable and
that claims for indemnification should be submitted to appropriate courts for
adjudication.

         10. NON-EXCLUSIVITY. The provisions for indemnification and advancement
of expenses set forth in this Agreement shall not be deemed exclusive of any
other rights that the Indemnitee may have under any provision of law, the
Company's Articles of Incorporation or Bylaws, the vote of the Company's
shareholders or disinterested directors, other agreements, or otherwise, both as
to action in the Indemnitee's official capacity and to action in another
capacity while occupying the Indemnitee's position as an agent of the Company,
and the Indemnitee's rights hereunder shall continue after the Indemnitee has
ceased acting as an agent of the Company and shall inure to the benefit of the
heirs, executors, and administrators of the Indemnitee.

         11.      GENERAL PROVISIONS.

                  11.1 Interpretation of Agreement. It is understood that the
parties hereto intend this Agreement to be interpreted and enforced so as to
provide indemnification and advancement of expenses to the Indemnitee to the
fullest extent now or hereafter permitted by law, except as expressly limited
herein.

                  11.2 Severability. If any provision or provisions of this
Agreement shall be held to be invalid, illegal, or unenforceable for any reason
whatsoever, then: (a) the validity, legality, and enforceability of the
remaining provisions of this Agreement (including, without limitation, all
portions of any paragraphs of this Agreement containing any such provision held
to be invalid, illegal, or unenforceable that are not themselves invalid,
illegal, or unenforceable) shall not in any way be affected or impaired thereby;
and (b) to the fullest extent possible, the provisions of this Agreement
(including, without limitation, all portions of any paragraphs of this Agreement
containing any such provision held to be invalid, illegal, or unenforceable,
that are not themselves invalid, illegal, or unenforceable) shall be construed
so as to give effect to the intent manifested by the provision held invalid,
illegal, or unenforceable and to give effect to Section 11.1 hereof.

                                       6
<PAGE>
                  11.3. Entire Agreement. This Agreement contains the entire
understanding among the parties hereto with respect to the subject matter hereof
and supersedes all prior and contemporaneous agreements and understandings,
inducements, or conditions, express or implied, oral or written, except as
herein contained.

                  11.4 Modification and Waiver. No supplement, modification, or
amendment of this Agreement shall be binding unless executed in writing by the
parties hereto. No waiver of any of the provisions of this Agreement shall be
deemed or shall constitute a waiver of any other provision hereof (whether or
not similar), nor shall such waiver constitute a continuing waiver.

                  11.5 Subrogation. In the event of full payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of the Indemnitee, who shall execute all documents
required and shall do all acts that may be necessary or desirable to secure such
rights and to enable the Company effectively to bring suit to enforce such
rights.

                  11.6 Counterparts. This Agreement may be executed in one or
more counterparts, which shall together constitute one agreement.

                  11.7 Successors and Assigns. The terms of this Agreement shall
bind, and shall inure to the benefit of, the successors and assigns of the
parties hereto. The indemnification and advancement of expenses provided by, or
granted pursuant to, this Agreement shall, unless otherwise provided when
authorized or ratified, continue as to a person who has ceased to be a director,
officer, employee, or agent and shall inure to the benefit of the heirs,
executors, and administrators of such a person.

                  11.8 Notice. All notices, requests, demands, and other
communications under this Agreement shall be in writing and shall be deemed duly
given (a) if delivered by hand and receipted for by the party addressee, or (b)
if mailed by certified or registered mail, with postage prepaid, on the third
business day after the mailing date. Addresses for notice to either party are as
shown in the records of the Company or as subsequently modified by written
notice.

                  11.9 Governing Law. This Agreement shall be governed
exclusively by and construed according to the laws of the state of Florida, as
applied to contracts between Florida residents entered into and to be performed
entirely within Florida.

                  11.10 Consent to Jurisdiction. The Company and the Indemnitee
each hereby irrevocably consent to the jurisdiction of the courts of the state
of Florida for all purposes in connection with any action or proceeding which
arises out of or relates to this Agreement.

                  11.11 Attorneys' Fees. In the event the Indemnitee is required
to bring any action to enforce rights under this Agreement (including, without
limitation, the expenses of any proceeding described in Section 4), the
Indemnitee shall be entitled to all reasonable fees and expenses in bringing and
pursuing such action, unless a court of competent jurisdiction finds each of the
material claims of the Indemnitee in any such action was frivolous and not made
in good faith.

         IN WITNESS WHEREOF, the parties hereto have entered into this
Indemnification Agreement effective as of the date first written above.

DIRECTED ELECTRONICS, INC., a Florida       INDEMNITEE:
corporation

By:                                         By:
   ---------------------------------           ---------------------------------
Name:                                       Name:
      ---------------------                      ---------------------
Title:
      ---------------------

                                       7
<PAGE>
Schedule to Exhibit 10.22: The form of Indemnification Agreement was executed by
the following persons:

James E. Minarik
Glenn R. Busse
John D. Morberg
Richard J. Hirshberg
Mark E. Rutledge
Kevin P. Duffy
Michael N. Smith
KC Bean
Troy D. Templeton
Earl W. Powell
Jon E. Elias
Darrell E. Issa
Andrew D. Robertson
S. James Spierer
Kevin B. McColgan
Edmond S. Thomas
Victor J. Orler

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