I think as long as its aimed away for anything that could be burned you'll be fine. Doesn't necessarily have to be aimed at the ground hit that'd be a good idea.
QTP » Electric Exhaust Cutouts
I think this is the one my buddy just maybe a different flange or something but it already has a pipe attached to it as well. You would just bolt on your exhaust (that's not cutout) to where the pipe is and once the cutout is closed it will have the exhaust sound and if you open that then it will be the loud cutout exhaust sound if I'm not mistaken.