Document:

<PAGE>

                                                                    EXHIBIT 4.10

                       XM SATELLITE RADIO HOLDINGS INC.
                                    ISSUER

                                 $___________

                                   INDENTURE

                           Dated as of ______, ____

                            [_______________________]
                                    Trustee
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                      Page
                                                                                                      ----

<S>                                                                                                   <C>
ARTICLE 1.  DEFINITIONS AND INCORPORATION BY REFERENCE...............................................    1
      Section 1.01.  Definitions.....................................................................    1
      Section 1.02.  Other Definitions...............................................................    4
      Section 1.03.  Incorporation by Reference of Trust Indenture Act...............................    4
      Section 1.04.  Rules of Construction...........................................................    5
ARTICLE 2.  THE SECURITIES...........................................................................    5
      Section 2.01.  Issuable in Series..............................................................    5
      Section 2.02.  Establishment of Terms of Series of Securities..................................    5
      Section 2.03.  Execution and Authentication....................................................    7
      Section 2.04.  Registrar and Paying Agent......................................................    8
      Section 2.05.  Paying Agent to Hold Money in Trust.............................................    8
      Section 2.06.  Securityholder Lists............................................................    8
      Section 2.07.  Transfer and Exchange...........................................................    8
      Section 2.08.  Mutilated, Destroyed, Lost and Stolen Securities................................    9
      Section 2.09.  Outstanding Securities..........................................................    9
      Section 2.10.  Treasury Securities.............................................................    10
      Section 2.11.  Temporary Securities............................................................    10
      Section 2.12.  Cancellation....................................................................    10
      Section 2.13.  Defaulted Interest..............................................................    10
      Section 2.14.  Global Securities...............................................................    10
      Section 2.15.  CUSIP Numbers...................................................................    11
ARTICLE 3.  REDEMPTION AND PREPAYMENT................................................................    12
      Section 3.01.  Notices to Trustee..............................................................    12
      Section 3.02.  Selection of Securities to Be Redeemed..........................................    12
      Section 3.03.  Notice of Redemption............................................................    12
      Section 3.04.  Effect of Notice of Redemption..................................................    13
      Section 3.05.  Deposit of Redemption Price.....................................................    13
      Section 3.06.  Securities Redeemed in Part.....................................................    13
ARTICLE 4.  COVENANTS................................................................................    14
      Section 4.01.  Payment of Securities...........................................................    14
      Section 4.02.  Compliance Certificate..........................................................    14
      Section 4.03.  Taxes...........................................................................    14
      Section 4.04.  Corporate Existence.............................................................    14
ARTICLE 5.  SUCCESSORS...............................................................................    14
      Section 5.01.  Merger, Consolidation or Sale of Assets.........................................    14
      Section 5.02.  Successor Corporation Substituted...............................................    15
ARTICLE 6.  DEFAULTS AND REMEDIES....................................................................    15
      Section 6.01.  Events of Default...............................................................    15
      Section 6.02.  Acceleration....................................................................    16
      Section 6.03.  Other Remedies..................................................................    16
      Section 6.04.  Waiver of Past Defaults.........................................................    17
      Section 6.05.  Control by Majority.............................................................    17
      Section 6.06.  Limitation on Suits.............................................................    17
      Section 6.07.  Rights of Holders of Securities to Receive Payment..............................    17
      Section 6.08.  Collection Suit by Trustee......................................................    18
      Section 6.09.  Trustee May File Proofs of Claim................................................    18
      Section 6.10.  Priorities......................................................................    18
      Section 6.11.  Undertaking for Costs...........................................................    18
ARTICLE 7.  TRUSTEE..................................................................................    19
</TABLE>

                                      -i-
<PAGE>

<TABLE>
<S>                                                                                                     <C>
      Section 7.01.  Duties of Trustee...............................................................    19
      Section 7.02.  Rights of Trustee...............................................................    20
      Section 7.03.  Individual Rights of Trustee....................................................    20
      Section 7.04.  Trustee's Disclaimer............................................................    20
      Section 7.05.  Notice of Defaults..............................................................    20
      Section 7.06.  Reports by Trustee to Holders of the Securities.................................    21
      Section 7.07.  Compensation and Indemnity......................................................    21
      Section 7.08.  Replacement of Trustee..........................................................    21
      Section 7.09.  Successor Trustee by Merger, etc................................................    22
      Section 7.10.  Eligibility; Disqualification...................................................    22
      Section 7.11.  Preferential Collection of Claims Against Company...............................    22
ARTICLE 8.  LEGAL DEFEASANCE AND COVENANT DEFEASANCE.................................................    23
      Section 8.01.  Option to Effect Legal Defeasance or Covenant Defeasance........................    23
      Section 8.02.  Legal Defeasance and Discharge..................................................    23
      Section 8.03.  Covenant Defeasance.............................................................    23
      Section 8.04.  Conditions to Legal or Covenant Defeasance......................................    24
      Section 8.05.  Deposited Money and Government Securities to be Held in Trust; Other
                     Miscellaneous Provisions........................................................    25
      Section 8.06.  Repayment to Company............................................................    25
      Section 8.07.  Reinstatement...................................................................    25
ARTICLE 9.  AMENDMENT, SUPPLEMENT AND WAIVER.........................................................    26
      Section 9.01.  Without Consent of Holders of Securities........................................    26
      Section 9.02.  With Consent of Holders of Securities...........................................    26
      Section 9.03.  Compliance with Trust Indenture Act.............................................    27
      Section 9.04.  Revocation and Effect of Consents...............................................    28
      Section 9.05.  Notation on or Exchange of Securities...........................................    28
      Section 9.06.  Trustee to Sign Amendments, etc.................................................    28
ARTICLE 10. MISCELLANEOUS............................................................................    28
      Section 10.01.  Trust Indenture Act Controls...................................................    28
      Section 10.02.  Notices........................................................................    28
      Section 10.03.  Communication by Holders of Securities with Other Holders of Securities........    29
      Section 10.04.  Certificate and Opinion as to Conditions Precedent.............................    29
      Section 10.05.  Statements Required in Certificate or Opinion..................................    30
      Section 10.06.  Rules by Trustee and Agents....................................................    30
      Section 10.07.  No Personal Liability of Directors, Officers, Employees and Stockholders.......    30
      Section 10.08.  Governing Law..................................................................    30
      Section 10.09.  No Adverse Interpretation of Other Agreements..................................    30
      Section 10.10.  Successors.....................................................................    30
      Section 10.11.  Severability...................................................................    31
      Section 10.12.  Counterpart Originals..........................................................    31
      Section 10.13.  Table of Contents, Headings, etc...............................................    31
</TABLE>

                                      -ii-
<PAGE>

                            CROSS-REFERENCE TABLE*

Trust Indenture
Act Section                                                    Indenture Section
-----------                                                    -----------------
310  (a)(1)................................................          7.10
(a)(2).....................................................          7.10
(a)(3).....................................................          N.A.
(a)(4).....................................................          N.A.
(a)(5).....................................................          7.10
(b)........................................................          7.10
(c)........................................................          N.A.
311 (a)....................................................          7.11
(b)........................................................          7.11
(c)........................................................          N.A.
312 (a)....................................................          2.06
(b)........................................................          10.03
(c)........................................................          10.03
313 (a)....................................................          7.06
(b)(1).....................................................          N.A.
(b)(2).....................................................          7.07
(c)........................................................          7.06;10.02
(d)........................................................          7.06
314 (a)....................................................          4.03;10.02
(b)........................................................          N.A.
(c)(1).....................................................          10.04
(c)(2).....................................................          10.04
(c)(3).....................................................          N.A.
(d)........................................................          N.A.
(e)........................................................          10.05
(f)........................................................          N.A.
315 (a)....................................................          7.01
(b)........................................................          7.05;10.02
(c)........................................................          7.01
(d)........................................................          7.01
(e)........................................................          6.11
316 (a) (last sentence)....................................          2.10
(a)(1)(A)..................................................          6.05
(a)(1)(B)..................................................          6.04
(a)(2).....................................................          N.A.
(b)........................................................          6.07
(c)........................................................          2.13
317 (a)(1).................................................          6.08
(a)(2).....................................................          6.09
(b)........................................................          2.05
318 (a)....................................................          10.01
(b)........................................................          N.A.
(c)........................................................          10.01

N.A. means not applicable.
* This Cross Reference Table is not part of the Indenture.
<PAGE>

         INDENTURE dated as of _______ between XM Satellite Radio Holdings Inc.,
a Delaware corporation (the "Company"), and ______, as trustee (the
"Trustees").

         The Company and the Trustee agree as follows for the benefit of each
other and for the equal and ratable benefit of the Holders of the Securities
issued under this Indenture (the "Securities").

                                  ARTICLE 1.

                  DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01.  Definitions.

         Certain terms used herein and not defined herein shall have the
meanings assigned to them in a Board Resolution, an Officer's Certificate or a
supplemental Indenture. The following terms shall have the following meanings:

         "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For purposes of this definition, "control"
(including, with correlative meanings, the terms "controlling," "controlled by"
and "under common control with"), as used with respect to any Person, shall mean
the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise; provided that
beneficial ownership of 10% or more of the Voting Stock of a Person shall be
deemed to be control.

         "Agent" means any Registrar, Paying Agent or co-registrar.

         "Bankruptcy Law" means Title 11, U.S. Code or any similar federal or
state law for the relief of debtors.

         "Board of Directors" means the Board of Directors of the Company, or
any authorized committee of the Board of Directors.

         "Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been adopted by the
Board of Directors or pursuant to authorization by the Board of Directors and to
be in full force and effect on the date of the certificate and delivered to the
Trustee.

         "Business Day" means any day other than a Legal Holiday.

         "Clearstream" means Clearstream Bank, S.A.

         "Company" means XM Satellite Radio Holdings Inc., and any and all
successors thereto.

         "Company Order" means a written order signed in the name of the Company
by two Officers, one of whom must be the Company's principal executive officer,
principal financial officer or principal accounting officer.

         "Corporate Trust Office of the Trustee" shall be at the address of the
Trustee specified in Section 10.02 hereof or such other address as to which the
Trustee may give notice to the Company.

         "Custodian" means the Trustee, as Custodian with respect to the
Securities in global form, or any successor entity thereto.

         "Default" means any event that is, or with the passage of time or the
giving of notice or both would be, an Event of Default.

         "Definitive Security" means a certificated Security registered in the
name of the Holder thereof and issued in accordance with Section 2.07 hereof,
substantially in the form of Exhibit A hereto except that such Security shall
not bear the Global Security Legend and shall not have the "Schedule of
Exchanges of Interests in the Global Security" attached thereto.

         "Depositary" means, with respect to the Securities issuable or issued
in whole or in part in global form, the Person specified in Section 2.04 hereof
as the Depositary with respect to the Securities, and any and all successors
<PAGE>

thereto appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

         "Discount Security" means any Security that provides for an amount less
than the stated principal amount thereof to be due and payable upon declaration
of acceleration of the maturity thereof pursuant to Section 6.02.

         "ECU" means the European Currency Unit as determined by the Commission
of the European Union.

         "Euroclear" means Morgan Guaranty Trust Company of New York, Brussels
office, as operator of the Euroclear system.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "Foreign Currency" means any currency or currency unit issued by a
government other than the government of The United States of America.

         "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession, which are in effect on the date hereof.

         "Global Security Legend" means the legend set forth in Section 2.14(3),
which is required to be placed on all Global Securities issued under this
Indenture.

         "Government Securities" means direct obligations of, or obligations
guaranteed by, the United States of America, and the payment for which the
United States pledges its full faith and credit.

         "Guarantee" means a guarantee (other than by endorsement of negotiable
instruments for collection in the ordinary course of business), direct or
indirect, in any manner (including, without limitation, by way of a pledge of
assets or through letters of credit or reimbursement agreements in respect
thereof), of all or any part of any Indebtedness. The term "Guarantor" shall
mean any Person Guaranteeing any obligation.

         "Holder" means a Person in whose name a Security is registered.

         "Indebtedness" means with respect to any specified Person, any
indebtedness of such Person, whether or not contingent, in respect of borrowed
money, bonds, notes, debentures or similar instruments or letters of credit,
banker's acceptances, or the balance deferred and unpaid of the purchase price
of any property except any such balance that constitutes an accrued expense or
trade payable.

         "Indenture" means this Indenture, as amended or supplemented from time
to time.

         "Indirect Participant" means a Person who holds a beneficial interest

         "Legal Holiday" means a Saturday, a Sunday or a day on which banking
institutions in the City of New York or at a place of payment are authorized by
law, regulation or executive order to remain closed. If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue on
such payment for the intervening period.

         "Lien" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law
(including any conditional sale or other title retention agreement, any lease in
the nature thereof, any option or other agreement to sell or give a security
interest in and any filing of or agreement to give any financing statement under
the Uniform Commercial Code (or equivalent statutes) of any jurisdiction).

                                      -2-
<PAGE>

         "Maturity," when used with respect to any Security or installment of
principal thereof, means the date on which the principal of such Security or
such installment of principal becomes due and payable as therein or herein
provided, whether at the stated maturity or by declaration of acceleration, call
for redemption, notice of option to elect repayment or otherwise.

         "Obligation" means any principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation governing any Indebtedness.

         "Offering" means the offering of the Securities by the Company.

         "Officer" means, with respect to any Person, the Chairman of the Board,
the Chief Executive Officer, the President, the Chief Operating Officer, the
Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller,
the Secretary or any Vice-President of such Person.

         "Officers' Certificate" means a certificate signed on behalf of the
Company by two Officers of the Company, one of whom must be the principal
executive officer, the principal financial officer, the treasurer or the
principal accounting officer of the Company, that meets the requirements of
Section 10.04 hereof.

         "Opinion of Counsel" means an opinion from legal counsel who is
reasonably acceptable to the Trustee, that meets the requirements of Section
10.04 hereof. The counsel may be an employee of or counsel to the Company, any
Subsidiary of the Company or the Trustee.

         "Participant" means, with respect to the Depositary, Euroclear or
Clearstream, a Person who has an account with the Depositary, Euroclear or
Clearstream, respectively (and, with respect to DTC, shall include Euroclear and
Clearstream).

         "Person" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, limited
liability company, or government or agency or political subdivision thereof
(including any subdivision or ongoing business of any such entity or
substantially all of the assets of any such entity, subdivision or business).

         "Responsible Office" with respect to the Trustee, means any officer
within the Corporate Trust Administration of the Trustee (or any successor group
of the Trustee) or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his knowledge of and
familiarity with the particular subject.

         "SEC" means the Securities and Exchange Commission.

         "Securities" has the meaning assigned to it in the preamble to this
Indenture.

         "Securities Act" means the Securities Act of 1933, as amended.

         "Series" or "Series of Securities" means each series of debentures,
notes or other debt instruments of the Company created pursuant to Sections 2.01
and 2.02 hereof.

         "Significant Subsidiary" means any Subsidiary that would be a
"significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such Regulation is in effect on
the date hereof.

         "Subsidiary" means, with respect to any Person:

         (1)   any corporation, association or other business entity of which
               more than 50% of the total voting power of shares of Capital
               Stock entitled (without regard to the occurrence of any
               contingency) to vote in the election of directors, managers or
               trustees thereof is at the time owned or controlled,

                                      -3-
<PAGE>

               directly or indirectly, by such Person or one or more of the
               other Subsidiaries of that Person (or a combination thereof); and

         (2)   any partnership:

               (a)  the sole general partner or the managing general partner of
         which is such Person or a Subsidiary of such Person; or

               (b)  the only general partners of which are such Person or of one
         or more Subsidiaries of such Person (or any combination thereof).

         "TIA" means the Trust Indenture Act of 1939 (15 U.S.C. (S)(S) 77aaa-
77bbbb) as in effect on the date on which this Indenture is qualified under the
TIA.

         "Trustee" means the party named as such above until a successor
replaces it in accordance with the applicable provisions of this Indenture and
thereafter means the successor serving hereunder.

         "U.S. Person" means a U.S. person as defined in Rule 902(o) under the
Securities Act.

Section 1.02.  Other Definitions.

<TABLE>
<CAPTION>
                                                                   Defined
         Term                                                      in Section
         ----                                                      ----------
         <S>                                                       <C>
         "Covenant Defeasance"..................................     8.03
         "Event of Default".....................................     6.01
         "Legal Defeasance".....................................     8.02
         "Paying Agent"    .....................................     2.04
         "Payment Default" .....................................     6.01
         "Registrar"............................................     2.04
         "Service Agent"   .....................................     2.04
</TABLE>

Section 1.03.  Incorporation by Reference of Trust Indenture Act.

         Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture.

         The following TIA terms used in this Indenture have the following
meanings:

         "indenture securities" means the Securities;

         "indenture security Holder" means a Holder of a Security;

         "indenture to be qualified" means this Indenture;

         "indenture trustee" or "institutional trustee" means the Trustee; and

         "obligor" on the Securities means the Company and any successor obligor
upon the Securities.

         All other terms used in this Indenture that are defined by the TIA,
defined by the TIA's reference to another statute or defined by SEC rule under
the TIA have the meanings so assigned to them.

                                      -4-
<PAGE>

Section 1.04.  Rules of Construction.

         Unless the context otherwise requires:

         (a)   a term has the meaning assigned to it;

         (b)   an accounting term not otherwise defined has the meaning assigned
               to it in accordance with GAAP;

         (c)   "or" is not exclusive;

         (d)   words in the singular include the plural, and in the plural
               include the singular;

         (e)   provisions apply to successive events and transactions; and

         (f)   references to sections of or rules under the Securities Act shall
               be deemed to include substitute, replacement or successor
               sections or rules adopted by the SEC from time to time.

                                  ARTICLE 2.

                                THE SECURITIES

Section 2.01.  Issuable in Series.

         The Securities may be issued in one or more Series. All Securities of a
Series shall be identical except as may be set forth in a Board Resolution, a
supplemental indenture or an Officers' Certificate detailing the adoption of the
terms thereof pursuant to the authority granted under a Board Resolution. In the
case of Securities of a Series to be issued from time to time, the Board
Resolution, Officers' Certificate or supplemental indenture may provide for the
method by which specified terms (such as interest rate, maturity date, record
date or date from which interest shall accrue) are to be determined. Securities
may differ between Series in respect of any matters, provided that all Series of
Securities shall be equally and ratably entitled to the benefits of the
Indenture.

Section 2.02.  Establishment of Terms of Series of Securities.

         At or prior to the issuance of any Securities within a Series, the
following shall be established (as to the Series generally, in the case of
Subsection 2.02(1) and either as to such Securities within the Series or as to
the Series generally in the case of Subsections 2.02(2) through 2.02(21)) by a
Board Resolution, a supplemental indenture or an Officers' Certificate pursuant
to authority granted under a Board Resolution:

         (1)   the title of the Series (which shall distinguish the Securities
               of that particular Series from the Securities of any other
               Series);

         (2)   the price or prices (expressed as a percentage of the principal
               amount thereof) at which the Securities of the Series will be
               issued;

         (3)   any limit upon the aggregate principal amount of the Securities
               of the Series which may be authenticated and delivered under this
               Indenture (except for Securities authenticated and delivered upon
               registration of transfer of, or in exchange for, or in lieu of,
               other Securities of the Series);

         (4)   the date or dates on which the principal of the Securities of the
               Series is payable;

         (5)   the rate or rates (which may be fixed or variable) per annum or,
               if applicable, the method used to determine such rate or rates
               (including, but not limited to, any commodity, commodity index,

                                      -5-
<PAGE>

               stock exchange index or financial index) at which the Securities
               of the Series shall bear interest, if any, the date or dates from
               which such interest, if any, shall accrue, the date or dates on
               which such interest, if any, shall commence and be payable and
               any regular record date for the interest payable on any interest
               payment date;

         (6)   the place or places where the principal of and interest, if any,
               on the Securities of the Series shall be payable, or the method
               of such payment, if by wire transfer, mail or other means;

         (7)   if applicable, the period or periods within which, the price or
               prices at which and the terms and conditions upon which the
               Securities of the Series may be redeemed, in whole or in part, at
               the option of the Company;

         (8)   the obligation, if any, of the Company to redeem or purchase the
               Securities of the Series pursuant to any sinking fund or
               analogous provisions or at the option of a Holder thereof and the
               period or periods within which, the price or prices at which and
               the terms and conditions upon which Securities of the Series
               shall be redeemed or purchased, in whole or in part, pursuant to
               such obligation;

         (9)   the dates, if any, on which and the price or prices at which the
               Securities of the Series will be repurchased by the Company at
               the option of the Holders thereof and other detailed terms and
               provisions of such repurchase obligations;

         (10)  if other than denominations of $1,000 and any integral multiple
               thereof, the denominations in which the Securities of the Series
               shall be issuable;

         (11)  the forms of the Securities of the Series in bearer or fully
               registered form (and, if in fully registered form, whether the
               Securities will be issuable as Global Securities);

         (12)  if other than the principal amount thereof, the portion of the
               principal amount of the Securities of the Series that shall be
               payable upon declaration of acceleration of the maturity thereof
               pursuant to Section 6.02;

         (13)  the currency of denomination of the Securities of the Series,
               which may be Dollars or any Foreign Currency, including, but not
               limited to, the ECU, and if such currency of denomination is a
               composite currency other than the ECU, the agency or
               organization, if any, responsible for overseeing such composite
               currency;

         (14)  the designation of the currency, currencies or currency units in
               which payment of the principal of and interest, if any, on the
               Securities of the Series will be made;

         (15)  if payments of principal of or interest, if any, on the
               Securities of the Series are to be made in one or more currencies
               or currency units other than that or those in which such
               Securities are denominated, the manner in which the exchange rate
               with respect to such payments will be determined;

         (16)  the manner in which the amounts of payment of principal of or
               interest, if any, on the Securities of the Series will be
               determined, if such amounts may be determined by reference to an
               index based on a currency or currencies or by reference to a
               commodity, commodity index, stock exchange index or financial
               index;

         (17)  the provisions, if any, relating to any security provided for the
               Securities of the Series;

         (18)  any addition to or change in the Events of Default which applies
               to any Securities of the Series and any change in the right of
               the Trustee or the requisite Holders of such Securities to
               declare the principal amount thereof due and payable pursuant to
               Section 6.02;

                                      -6-
<PAGE>

         (19)  any addition to or change in the covenants set forth in Articles
               4 or 5 which applies to Securities of the Series;

         (20)  any other terms of the Securities of the Series (which terms
               shall not be inconsistent with the provisions of this Indenture,
               except as permitted by Section 9.01, but which may modify or
               delete any provision of this Indenture insofar as it applies to
               such Series); and

         (21)  any depositories, interest rate calculation agents, exchange rate
               calculation agents or other agents with respect to Securities of
               such Series if other than those appointed herein.

         All Securities of any one Series need not be issued at the same time
and may be issued from time to time, consistent with the terms of this
Indenture, if so provided by or pursuant to the Board Resolution, supplemental
indenture or Officers' Certificate referred to above, and the authorized
principal amount of any Series may not be increased to provide for issuances of
additional Securities of such Series, unless otherwise provided in such Board
Resolution, supplemental indenture or Officers' Certificate.

Section 2.03.  Execution and Authentication.

         Two Officers shall sign the Securities for the Company by manual or
facsimile signature.

         If an Officer whose signature is on a Security no longer holds that
office at the time the Security is authenticated, the Security shall
nevertheless be valid.

         A Security shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent. The signature shall be
conclusive evidence that the Security has been authenticated under this
Indenture.

         The Trustee shall at any time, and from time to time, authenticate
Securities for original issue in the principal amount provided in the Board
Resolution, supplemental indenture hereto or Officers' Certificate, upon receipt
by the Trustee of a Company Order. Such Company Order may authorize
authentication and delivery pursuant to oral or electronic instructions from the
Company or its duly authorized agent or agents, which oral instructions shall be
promptly confirmed in writing. Each Security shall be dated the date of its
authentication unless otherwise provided by a Board Resolution, a supplemental
indenture hereto or an Officers' Certificate.

         The aggregate principal amount of Securities of any Series outstanding
at any time may not exceed any limit upon the maximum principal amount for such
Series set forth in the Board Resolution, supplemental indenture hereto or
Officers' Certificate delivered pursuant to Section 2.02, except as provided in
Section 2.08.

         Prior to the issuance of Securities of any Series, the Trustee shall
have received and (subject to Section 7.02) shall be fully protected in relying
on: (a) the Board Resolution, supplemental indenture hereto or Officers'
Certificate establishing the form of the Securities of that Series or of
Securities within that Series and the terms of the Securities of that Series or
of Securities within that Series, (b) an Officers' Certificate complying with
Section 10.04, and (c) an Opinion of Counsel complying with Section 10.04.

         The Trustee shall have the right to decline to authenticate and deliver
any Securities of such Series: (a) if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken; or (b) if the Trustee in
good faith by its board of directors or trustees, executive committee or a trust
committee of directors and/or vice-presidents shall determine that such action
would expose the Trustee to personal liability to Holders of any then
outstanding Series of Securities.

         The Trustee may appoint an authenticating agent acceptable to the
Company to authenticate Securities. An authenticating agent may authenticate
Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with the Company or
an Affiliate.

                                      -7-
<PAGE>

Section 2.04.  Registrar and Paying Agent.

         The Company shall maintain, with respect to each Series of Securities,
at the place or places specified with respect to such Series pursuant to Section
2.02, an office or agency where Securities of such Series may be presented or
surrendered for payment ("Paying Agent"), where Securities of such Series may be
surrendered for registration of transfer or exchange ("Registrar") and where
notices and demands to or upon the Company in respect of the Securities of such
Series and this Indenture may be served ("Service Agent"). The Registrar shall
keep a register with respect to each Series of Securities and to their transfer
and exchange. The Company will give prompt written notice to the Trustee of the
name and address, and any change in the name or address, of each Registrar,
Paying Agent or Service Agent. If at any time the Company shall fail to maintain
any such required Registrar, Paying Agent or Service Agent or shall fail to
furnish the Trustee with the name and address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands.

         The Company may also from time to time designate one or more co-
registrars, additional paying agents or additional service agents and may from
time to time rescind such designations; provided, however, that no such
designation or rescission shall in any manner relieve the Company of its
obligations to maintain a Registrar, Paying Agent and Service Agent in each
place so specified pursuant to Section 2.02 for Securities of any Series for
such purposes. The Company will give prompt written notice to the Trustee of any
such designation or rescission and of any change in the name or address of any
such co-registrar, additional paying agent or additional service agent. The term
"Registrar" includes any co-registrar; the term "Paying Agent" includes any
additional paying agent; and the term "Service Agent" includes any additional
service agent.

         The Company hereby appoints the Trustee the initial Registrar, Paying
Agent and Service Agent for each Series unless another Registrar, Paying Agent
or Service Agent, as the case may be, is appointed prior to the time Securities
of that Series are first issued.

Section 2.05.  Paying Agent to Hold Money in Trust.

         The Company shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent will hold in trust, for the benefit of
Securityholders of any Series of Securities, or the Trustee, all money held by
the Paying Agent for the payment of principal of or interest on the Series of
Securities, and will notify the Trustee of any default by the Company in making
any such payment. While any such default continues, the Trustee may require a
Paying Agent to pay all money held by it to the Trustee. The Company at any time
may require a Paying Agent to pay all money held by it to the Trustee. Upon
payment over to the Trustee, the Paying Agent (if other than the Company or a
Subsidiary) shall have no further liability for the money. If the Company or a
Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust
fund for the benefit of Securityholders of any Series of Securities all money
held by it as Paying Agent.

Section 2.06.  Securityholder Lists.

         The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Securityholders of each Series of Securities and shall otherwise comply with TIA
(S) 312(a). If the Trustee is not the Registrar, the Company shall furnish to
the Trustee at least ten days before each interest payment date and at such
other times as the Trustee may request in writing a list, in such form and as of
such date as the Trustee may reasonably require, of the names and addresses of
Securityholders of each Series of Securities.

Section 2.07.  Transfer and Exchange.

         Where Securities of a Series are presented to the Registrar or a co-
registrar with a request to register a transfer or to exchange them for an equal
principal amount of Securities of the same Series, the Registrar shall register
the transfer or make the exchange if its requirements for such transactions are
met. To permit registrations of transfers and exchanges, the Trustee shall
authenticate Securities at the Registrar's request. No service charge

                                      -8-
<PAGE>

shall be made for any registration of transfer or exchange (except as otherwise
expressly permitted herein), but the Company may require payment of a sum
sufficient to cover any transfer tax or similar governmental charge payable in
connection therewith (other than any such transfer tax or similar governmental
charge payable upon exchanges pursuant to Sections 2.11, 3.06 or 9.05).

         Neither the Company nor the Registrar shall be required (a) to issue,
register the transfer of, or exchange Securities of any Series for the period
beginning at the opening of business fifteen days immediately preceding the
mailing of a notice of redemption of Securities of that Series selected for
redemption and ending at the close of business on the day of such mailing, or
(b) to register the transfer of or exchange Securities of any Series selected,
called or being called for redemption as a whole or the portion being redeemed
of any such Securities selected, called or being called for redemption in part.

Section 2.08.  Mutilated, Destroyed, Lost and Stolen Securities.

         If any mutilated Security is surrendered to the Trustee, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same Series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

         If there shall be delivered to the Company and the Trustee (i) evidence
to their satisfaction of the destruction, loss or theft of any Security and (ii)
such security or indemnity as may be required by them to save each of them and
any agent of either of them harmless, then, in the absence of notice to the
Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and upon its request the Trustee shall
authenticate and make available for delivery, in lieu of any such destroyed,
lost or stolen Security, a new Security of the same Series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

         In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Security, pay such Security.

         Upon the issuance of any new Security under this Section, the Company
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

         Every new Security of any Series issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that Series duly issued hereunder.

         The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities.

Section 2.09.  Outstanding Securities.

         The Securities outstanding at any time are all the Securities
authenticated by the Trustee except for those canceled by it, those delivered to
it for cancellation, those reductions in the interest on a Global Security
effected by the Trustee in accordance with the provisions hereof and those
described in this Section as not outstanding.

         If a Security is replaced pursuant to Section 2.08, it ceases to be
outstanding until the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

         If the Paying Agent (other than the Company, a Subsidiary or an
Affiliate of any thereof) holds on the Maturity of Securities of a Series money
sufficient to pay such Securities payable on that date, then on and after that
date such Securities of the Series cease to be outstanding and interest on them
ceases to accrue.

                                      -9-
<PAGE>

         A Security does not cease to be outstanding because the Company or an
Affiliate holds the Security.

         In determining whether the Holders of the requisite principal amount of
outstanding Securities have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, the principal amount of a Discount Security
that shall be deemed to be outstanding for such purposes shall be the amount of
the principal thereof that would be due and payable as of the date of such
determination upon a declaration of acceleration of the Maturity thereof
pursuant to Section 6.02.

Section 2.10.  Treasury Securities.

         In determining whether the Holders of the required principal amount of
Securities of a Series have concurred in any request, demand, authorization,
direction, notice, consent or waiver Securities of a Series owned by the Company
or an Affiliate shall be disregarded, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
request, demand, authorization, direction, notice, consent or waiver only
Securities of a Series that the Trustee knows are so owned shall be so
disregarded.

Section 2.11.  Temporary Securities.

         Until definitive Securities are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Securities upon a Company
Order. Temporary Securities shall be substantially in the form of definitive
Securities but may have variations that the Company considers appropriate for
temporary Securities. Without unreasonable delay, the Company shall prepare and
the Trustee upon request shall authenticate definitive Securities of the same
Series and date of maturity in exchange for temporary Securities. Until so
exchanged, temporary securities shall have the same rights under this Indenture
as the definitive Securities.

Section 2.12.  Cancellation.

         The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee
any Securities surrendered to them for registration of transfer, exchange or
payment. The Trustee shall cancel all Securities surrendered for transfer,
exchange, payment, replacement or cancellation and shall destroy such canceled
Securities (subject to the record retention requirement of the Exchange Act) and
deliver a certificate of such destruction to the Company, unless the Company
otherwise directs. The Company may not issue new Securities to replace
Securities that it has paid or delivered to the Trustee for cancellation.

Section 2.13.  Defaulted Interest.

         If the Company defaults in a payment of interest on a Series of
Securities, it shall pay the defaulted interest in any lawful manner, plus, to
the extent permitted by law, any interest payable on the defaulted interest, to
the persons who are Securityholders of the Series on a subsequent special record
date. The Company shall fix the record date and payment date. At least 15 days
before the record date, the Company shall mail to the Trustee and to each
Securityholder of the Series a notice that states the record date, the payment
date and the amount of interest to be paid. The Company may pay defaulted
interest in any other lawful manner.

Section 2.14.  Global Securities.

         (1) Terms of Securities. A Board Resolution, a supplemental indenture
             -------------------
hereto or an Officers' Certificate shall establish whether the Securities of a
Series shall be issued in whole or in part in the form of one or more Global
Securities and the Depositary for such Global Security or Securities.

         (2) Transfer and Exchange. Notwithstanding any provisions to the
             ---------------------
contrary contained in Section 2.07 of the Indenture and in addition thereto, any
Global Security shall be exchangeable pursuant to Section 2.07 of the Indenture
for Securities registered in the names of Holders other than the Depositary for
such Security or its

                                      -10-
<PAGE>

nominee only if (i) such Depositary notifies the Company that it is unwilling or
unable to continue as Depositary for such Global Security or if at any time such
Depositary ceases to be a clearing agency registered under the Exchange Act,
and, in either case, the Company fails to appoint a successor Depositary within
90 days of such event, (ii) the Company executes and delivers to the Trustee an
Officers' Certificate to the effect that such Global Security shall be so
exchangeable or (iii) an Event of Default with respect to the Securities
represented by such Global Security shall have happened and be continuing. Any
Global Security that is exchangeable pursuant to the preceding sentence shall be
exchangeable for Securities registered in such names as the Depositary shall
direct in writing in an aggregate principal amount equal to the principal amount
of the Global Security with like tenor and terms.

         Except as provided in this Section 2.14(2) a Global Security may not be
transferred except as a whole by the Depositary with respect to such Global
Security to a nominee of such Depositary, by a nominee of such Depositary to
such Depositary or another nominee of such Depositary or by the Depositary or
any such nominee to a successor Depositary or a nominee of such a successor
Depositary.

         (3)   Legend.  Any Global Security issued hereunder shall bear a legend
               ------
in substantially the following form:

         "THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
INDENTURE GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF
THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY
BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (II) THIS GLOBAL SECURITY
MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07 OF THE
INDENTURE, (III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.12 OF THE INDENTURE AND (IV) THIS GLOBAL
SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF XM SATELLITE RADIO HOLDINGS INC."

         (4)   Acts of Holders. The Depositary, as a Holder, may appoint agents
               ---------------
and otherwise authorize participants to give or take any request, demand,
authorization, direction, notice, consent, waiver or other action which a Holder
is entitled to give or take under the Indenture.

         (5)   Payments.  Notwithstanding the other provisions of this
               --------
Indenture, unless otherwise specified as contemplated by Section 2.02, payment
of the principal of and interest, if any, on any Global Security shall be made
to the Holder thereof.

         (6)   Consents, Declaration and Directions.  Except as provided in
               ------------------------------------
Section 2.14(5), the Company, the Trustee and any Agent shall treat a person as
the Holder of such principal amount of outstanding Securities of such Series
represented by a Global Security as shall be specified in a written statement of
the Depositary with respect to such Global Security, for purposes of obtaining
any consents, declarations, waivers or directions required to be given by the
Holders pursuant to this Indenture.

Section 2.15.  CUSIP Numbers.

         The Company in issuing the Securities may use "CUSIP" numbers (if then
generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices
of redemption as a convenience to Holders; provided that any such notice may
state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other elements of
identification printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers.

                                      -11-
<PAGE>

                                  ARTICLE 3.

                           REDEMPTION AND PREPAYMENT

Section 3.01.  Notices to Trustee.

         The Company may, with respect to any Series of Securities, reserve the
right to redeem and pay the Series of Securities or may covenant to redeem and
pay the Series of Securities or any part thereof prior to the stated maturity
thereof at such time and on such terms as provided for in such Securities. If a
Series of Securities is redeemable and the Company wants or is obligated to
redeem prior to the stated maturity thereof all or part of the Series of
Securities pursuant to the terms of such Securities, it shall notify the Trustee
of the redemption date and the principal amount of Series of Securities to be
redeemed. The Company shall give the notice at least 30 but no more that 60 days
before the redemption date (or such shorter notice as may be acceptable to the
Trustee).

Section 3.02.  Selection of Securities to Be Redeemed.

         Unless otherwise indicated for a particular Series by a Board
Resolution, a supplemental indenture or an Officer's Certificate, if less than
all of the Securities are to be redeemed or purchased in an offer to purchase at
any time, the Trustee shall select the Securities to be redeemed as follows:

         (1)      if the Securities are listed on any national securities
                  exchange, in compliance with the requirements of the principal
                  national securities exchange, if any, on which the Securities
                  are listed; or

         (2)      if the Securities are not listed on any national securities
                  exchange, on a pro rata basis, by lot or by such other method
                  as the Trustee shall deem fair and appropriate.

         No Securities of $1,000 of principal amount or less will be redeemed in
part. Except as provided in the preceding sentence, provisions of this Indenture
that apply to Securities called for redemption also apply to portions of
Securities called for redemption. Notices of redemption will be mailed by first
class mail at least 30 but not more than 60 days before the redemption date to
each Holder of Securities to be redeemed at its registered address. Notices of
redemption may not be conditional.

         If any Security is to be redeemed in part only, the notice of
redemption that relates to such Security shall state the portion of the
principal amount of that Security to be redeemed. A new Security in principal
amount equal to the unredeemed portion of the original Security presented for
redemption will be issued in the name of the Holder thereof upon cancellation of
the original Security. Securities called for redemption become due on the date
fixed for redemption. On and after the redemption date, interest ceases to
accrue or accrete on Securities or portions of them called for redemption.

Section 3.03.  Notice of Redemption.

         Unless otherwise indicated for a particular Series by a Board
Resolution, a supplemental indenture or an Officers' Certificate, at least 30
days but not more than 60 days before a redemption date, the Company shall mail
or cause to be mailed, by first class mail, a notice of redemption to each
Holder whose Securities are to be redeemed at its registered address.

         The notice shall identify the Securities to be redeemed and shall
state:

         (1)      the redemption date;

         (2)      the redemption price;

                                      -12-
<PAGE>

         (3)      if any Security is being redeemed in part, the portion of the
                  principal amount of such Security to be redeemed and that,
                  after the redemption date upon surrender of such Security, a
                  new Security or Securities in principal amount equal to the
                  unredeemed portion shall be issued upon cancellation of the
                  original Security;

         (4)      the name and address of the Paying Agent;

         (5)      that Securities called for redemption must be surrendered to
                  the Paying Agent to collect the redemption price;

         (6)      that, unless the Company defaults in making such redemption
                  payment, interest on Securities called for redemption ceases
                  to accrue on and after the redemption date;

         (7)      the paragraph of the Securities and/or provision of an
                  indenture pursuant to which the Securities called for
                  redemption are being redeemed; and

         (8)      that no representation is made as to the correctness or
                  accuracy of the CUSIP number, if any, listed in such notice or
                  printed on the Securities.

         At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense; provided, however, that the
Company shall have delivered to the Trustee, at least 45 days prior to the
redemption date, an Officers' Certificate requesting that the Trustee give such
notice and setting forth the information to be stated in such notice as provided
in the preceding paragraph.

Section 3.04.  Effect of Notice of Redemption.

         Once notice of redemption is mailed in accordance with Section 3.03
hereof, Securities called for redemption become irrevocably due and payable on
the redemption date at the redemption price. A notice of redemption may not be
conditional.

Section 3.05.  Deposit of Redemption Price.

         One Business Day prior to the redemption date, the Company shall
deposit with the Trustee or with the Paying Agent money sufficient to pay the
redemption price of and accrued interest on all Securities to be redeemed on
that date. The Trustee or the Paying Agent shall promptly return to the Company
any money deposited with the Trustee or the Paying Agent by the Company in
excess of the amounts necessary to pay the redemption price of, and accrued
interest on, all Securities to be redeemed.

         If the Company complies with the provisions of the preceding paragraph,
on and after the redemption date, interest shall cease to accrue on the
Securities or the portions of Securities called for redemption. If a Security is
redeemed on or after an interest record date but on or prior to the related
interest payment date, then any accrued and unpaid interest shall be paid to the
Person in whose name such Security was registered at the close of business on
such record date. If any Security called for redemption shall not be so paid
upon surrender for redemption because of the failure of the Company to comply
with the preceding paragraph, interest shall be paid on the unpaid principal,
from the redemption date until such principal is paid, and, to the extent
lawful, on any interest not paid on such unpaid principal, in each case at the
rate provided in the Securities.

Section 3.06.  Securities Redeemed in Part.

         Upon surrender of a Security that is redeemed in part, the Company
shall issue and, upon the Company's written request, the Trustee shall
authenticate for the Holder at the expense of the Company a new Security equal
in principal amount to the unredeemed portion of the Security surrendered.

                                      -13-
<PAGE>

                                  ARTICLE 4.

                                   COVENANTS

Section 4.01.  Payment of Securities.

         The Company covenants and agrees for the benefit of the Holders of each
Series of Securities that it will duly and punctually pay the principal of and
interest, if any, on the Securities of that Series in accordance with the terms
of such Securities and this Indenture.

Section 4.02.  Compliance Certificate.

         The Company will deliver to the Trustee, within 180 days after the end
of each fiscal year, a brief certificate from its principal executive officer,
principal financial officer or principal accounting officer as to his or her
knowledge of the Company's compliance with all conditions and covenants under
this Indenture, and in the event of any noncompliance, specifying such
noncompliance and the nature and status thereof. For purposes of this Section
4.02, such compliance shall be determined without regard to any period of grace
or requirement of notice under this Indenture.

Section 4.03.  Taxes.

         The Company shall pay, and shall cause each of its Subsidiaries to pay,
prior to delinquency, all material taxes, assessments, and governmental levies
except such as are contested in good faith and by appropriate proceedings or
where the failure to effect such payment is not adverse in any material respect
to the Holders of the Securities.

Section 4.04.  Corporate Existence.

         Subject to Article 5 hereof, the Company shall do or cause to be done
all things necessary to preserve and keep in full force and effect:

         (1)      its corporate existence, and the corporate, partnership or
                  other existence of each of its Subsidiaries, in accordance
                  with the respective organizational documents (as the same may
                  be amended from time to time) of the Company or any such
                  Subsidiary and

         (2)      the rights (charter and statutory), licenses and franchises of
                  the Company and its Subsidiaries; provided, however, that the
                  Company shall not be required to preserve any such right,
                  license or franchise, or the corporate, partnership or other
                  existence of any of its Subsidiaries, if the Board of
                  Directors shall determine that the preservation thereof is no
                  longer desirable in the conduct of the business of the Company
                  and its Subsidiaries, taken as a whole, and that the loss
                  thereof is not adverse in any material respect to the Holders
                  of the Securities.

                                   ARTICLE 5.

                                   SUCCESSORS

Section 5.01.  Merger, Consolidation or Sale of Assets.

         Unless otherwise indicated for a particular Series by a Board
Resolution, a supplemental indenture or an Officer's Certificate, the Company
shall not:

         (1)      consolidate or merge with or into (whether or not the Company
                  is the surviving corporation); or

                                      -14-
<PAGE>

         (2)      sell, assign, transfer, lease, convey or otherwise dispose of
                  all or substantially all of its properties or assets in one or
                  more related transactions, to another corporation, Person or
                  entity, unless:

                  (a)      either (A) the Company is the surviving corporation;
                           or (B) the entity or the Person formed by or
                           surviving any such consolidation or merger (if other
                           than the Company) or to which the sale, assignment,
                           transfer, lease, conveyance or other disposition
                           shall have been made is a corporation organized or
                           existing under the laws of the United States, any
                           state thereof or the District of Columbia;

                  (b)      the entity or Person formed by or surviving any such
                           consolidation or merger (if other than the Company)
                           or the entity or Person to which the sale,
                           assignment, transfer, lease, conveyance or other
                           disposition shall have been made assumes all the
                           Obligations of the Company under the Securities and
                           this Indenture pursuant to a supplemental indenture
                           in a form reasonably satisfactory to the Trustee; and

                  (c)      immediately after such transaction no Default exists.

Section 5.02.  Successor Corporation Substituted.

         Upon any consolidation or merger, or any sale, assignment, transfer,
lease, conveyance or other disposition of all or substantially all of the assets
of the Company in accordance with Section 5.01 hereof, the successor corporation
formed by such consolidation or into or with which the Company is merged or to
which such sale, assignment, transfer, lease, conveyance or other disposition is
made shall succeed to, and be substituted for (so that from and after the date
of such consolidation, merger, sale, lease, conveyance or other disposition, the
provisions of this Indenture referring to the "Company" shall refer instead to
the successor corporation and not to the Company), and may exercise every right
and power of the Company under this Indenture, as modified or supplemented by an
Officer's Certificate, a Board Resolution or a supplemental indenture with the
same effect as if such successor Person had been named as the Company herein;
provided, however, that the predecessor Company shall not be relieved from the
obligation to pay the principal of and interest on the Securities except in the
case of a sale of all of the Company's assets that meets the requirements of
Section 5.01 hereof.

                                    ARTICLE 6

                              DEFAULTS AND REMEDIES

Section 6.01.  Events of Default.

         Unless otherwise indicated for a particular Series by a Board
Resolution, a supplemental indenture, or an Officer's Certificate, each of the
following constitutes an Event of Default:

         (1)      default for 30 days in the payment when due of interest on the
                  Securities;

         (2)      default in payment when due of the principal of or premium, if
                  any, on the Securities;

         (3)      failure by the Company for 60 days after notice by the Trustee
                  or the Holders of at least 25% in the aggregate principal
                  amount of the Securities then outstanding, voting as a single
                  class, to comply with any of its other agreements in the
                  Indenture or the Securities;

         (4)      default under any mortgage, indenture or instrument under
                  which there may be issued or by which there may be secured or
                  evidenced any Indebtedness (as defined in the Board
                  Resolution, a supplemental indenture, or an Officer's
                  Certificate for a particular Series) for money borrowed by the
                  Company (or the payment of which is guaranteed by the

                                      -15-
<PAGE>

                  Company) whether such Indebtedness or guarantee now exists, or
                  is created after the date of this Indenture, which default:

                  (a)      is caused by a failure to pay principal of or
                           premium, if any, or interest on the Indebtedness
                           prior to the expiration of the grace period provided
                           in such Indebtedness on the date of the default (a
                           "Payment Default"); or

                  (b)      results in the acceleration of the Indebtedness prior
                           to its express maturity and, in each case, the
                           principal amount of any such Indebtedness, together
                           with the principal amount of any other such
                           Indebtedness under which there has been a Payment
                           Default or the maturity of which has been so
                           accelerated, aggregates $20.0 million or more;

         (5)      the Company pursuant to or within the meaning of Bankruptcy
                  Law:

                  (a)      commences a voluntary case,

                  (b)      consents to the entry of an order for relief against
                           it in an involuntary case,

                  (c)      consents to the appointment of a Custodian of it or
                           for all or substantially all of  its property,

                  (d)      makes a general assignment for the benefit of its
                           creditors, or

                  (e)      generally is not paying its debts as they become due;
                           or

         (6)      a court of competent jurisdiction enters an order or decree
                  under any Bankruptcy Law that:

                  (a)      is for relief against the Company in an involuntary
                           case;

                  (b)      appoints a Custodian of the Company or for all or
                           substantially all of the property of the Company; or

                  (c)      orders the liquidation of the Company;

                  and the order or decree remains unstayed and in effect for 90
                  consecutive days.

Section 6.02.  Acceleration.

         If any Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Securities
may declare all the Securities to be due and payable immediately. Upon any such
declaration, the principal of, and accrued and unpaid interest if any, on such
Securities shall become due and payable immediately. Notwithstanding the
foregoing, if an Event of Default specified in clause (7) or (8) of Section 6.01
hereof occurs with respect to the Company, all outstanding Securities shall be
due and payable immediately without further action or notice. The Holders of a
majority in aggregate principal amount of the then outstanding Securities by
written notice to the Trustee may on behalf of all of the Holders rescind an
acceleration and its consequences if the rescission would not conflict with any
judgment or decree and if all existing Events of Default (except nonpayment of
principal, interest or premium that has become due solely because of the
acceleration) have been cured or waived.

Section 6.03.  Other Remedies.

         If an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy to collect the payment of principal of, premium, if any,
and interest on the Securities or to enforce the performance of any provision of
the Securities or this Indenture.

                                      -16-
<PAGE>

         The Trustee may maintain a proceeding even if it does not possess any
of the Securities or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Holder of a Security in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

Section 6.04.  Waiver of Past Defaults.

         Holders of not less than a majority in aggregate principal amount of
the then outstanding Securities by notice to the Trustee may on behalf of the
Holders of all of the Securities waive an existing Default or Event of Default
and its consequences hereunder, except a continuing Default or Event of Default
in the payment of the principal of, premium, if any, or interest on, the
Securities (including in connection with an offer to purchase) (provided,
however, that the Holders of a majority in aggregate principal amount of the
then outstanding Securities may rescind an acceleration and its consequences,
including any related payment default that resulted from such acceleration).
Upon any such waiver, such Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other
Default or impair any right consequent thereon.

Section 6.05.  Control by Majority.

         Holders of a majority in principal amount of the then outstanding
Securities may direct the time, method and place of conducting any proceeding
for exercising any remedy available to the Trustee or exercising any trust or
power conferred on it. However, the Trustee may refuse to follow any direction
that conflicts with law or this Indenture that the Trustee determines may be
unduly prejudicial to the rights of other Holders of Securities or that may
involve the Trustee in personal liability.

Section 6.06.  Limitation on Suits.

         A Holder of a Security may pursue a remedy with respect to this
Indenture or the Securities only if:

         (1)      the Holder of a Security gives to the Trustee written notice
                  of a continuing Event of Default;

         (2)      the Holders of at least 25% in principal amount of the then
                  outstanding Securities make a written request to the Trustee
                  to pursue the remedy;

         (3)      such Holder of a Security or Holders of Securities  offer and,
                  if requested, provide to the Trustee indemnity satisfactory to
                  the Trustee against any loss, liability or expense;

         (4)      the Trustee does not comply with the request within 60 days
                  after receipt of the request and the offer and, if requested,
                  the provision of indemnity; and

         (5)      during such 60-day period the Holders of a majority in
                  principal amount of the then outstanding Securities do not
                  give the Trustee a direction inconsistent with the request.

         A Holder of a Security may not use this Indenture to prejudice the
rights of another Holder of a Security or to obtain a preference or priority
over another Holder of a Security.

Section 6.07.  Rights of Holders of Securities to Receive Payment.

         Notwithstanding any other provision of this Indenture, the right of any
Holder of a Security to receive payment of principal of, premium, if any, and
interest on the Security, on or after the respective due dates expressed in the
Security (including in connection with an offer to purchase), or to bring suit
for the enforcement of any such payment on or after such respective dates, shall
not be impaired or affected without the consent of such Holder.

                                      -17-
<PAGE>

Section 6.08.  Collection Suit by Trustee.

         If an Event of Default specified in Section 6.01(a) or (b) occurs and
is continuing, the Trustee is authorized to recover judgment in its own name and
as trustee of an express trust against the Company for the whole amount of
principal of, premium, if any, and interest remaining unpaid on the Securities
and interest on overdue principal and, to the extent lawful, interest and such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

Section 6.09.  Trustee May File Proofs of Claim.

         The Trustee is authorized to file such proofs of claim and other papers
or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders of the Securities allowed in any judicial proceedings relative to the
Company (or any other obligor upon the Securities), its creditors or its
property and shall be entitled and empowered to collect, receive and distribute
any money or other property payable or deliverable on any such claims and any
Custodian in any such judicial proceeding is hereby authorized by each Holder to
make such payments to the Trustee, and in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.07 hereof. To the extent that the
payment of any such compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07 hereof out of the estate in any such proceeding, shall be denied
for any reason, payment of the same shall be secured by a Lien on, and shall be
paid out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding
whether in liquidation or under any plan of reorganization or arrangement or
otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder, or to authorize the Trustee to vote in respect of
the claim of any Holder in any such proceeding.

Section 6.10.  Priorities.

         If the Trustee collects any money pursuant to this Article, it shall
pay out the money in the following order:

         First:  to the Trustee, its agents and attorneys for amounts due under
         -----
Section 7.07 hereof, including payment of all compensation, expense and
liabilities incurred, and all advances made, by the Trustee and the costs and
expenses of collection;

         Second:  to Holders of Securities for amounts due and unpaid on the
         ------
Securities for principal, premium, if any, and interest, ratably, without
preference or priority of any kind, according to the amounts due and payable on
the Securities for principal, premium, if any and interest, respectively; and

         Third:  to the Company or to such party as a court of competent
         -----
jurisdiction shall direct.

         The Trustee may fix a record date and payment date for any payment to
Holders of Securities pursuant to this Section 6.10.

Section 6.11.  Undertaking for Costs.

         In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as a Trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party litigant.
This Section does not apply to a suit by the Trustee, a

                                      -18-
<PAGE>

suit by a Holder of a Security pursuant to Section 6.07 hereof, or a suit by
Holders of more than 10% in principal amount of the then outstanding Securities.

                                    ARTICLE 7

                                     TRUSTEE

Section 7.01.  Duties of Trustee.

         (1)      If an Event of Default has occurred and is continuing, the
                  Trustee shall exercise such of the rights and powers vested in
                  it by this Indenture, and use the same degree of care and
                  skill in its exercise, as a prudent person would exercise or
                  use under the circumstances in the conduct of such person's
                  own affairs.

         (2)      Except during the continuance of an Event of Default:

                  (a)      the duties of the Trustee shall be determined solely
                           by the express provisions of this Indenture and the
                           Trustee need perform only those duties that are
                           specifically set forth in this Indenture, as modified
                           or supplemented by an Officer's Certificate, a Board
                           Resolution or a supplemental indenture, and no
                           others, and no implied covenants or obligations shall
                           be read into this Indenture against the Trustee; and

                  (b)      in the absence of bad faith on its part, the Trustee
                           may conclusively rely, as to the truth of the
                           statements and the correctness of the opinions
                           expressed therein, upon certificates or opinions
                           furnished to the Trustee and conforming to the
                           requirements of this Indenture. However, the Trustee
                           shall examine the certificates and opinions to
                           determine whether or not they conform to the
                           requirements of this Indenture.

         (3)      The Trustee may not be relieved from liabilities for its own
                  negligent action, its own negligent failure to act, or its own
                  willful misconduct, except that:

                  (a)      this paragraph does not limit the effect of paragraph
                           (b) of this Section;

                  (b)      the Trustee shall not be liable for any error of
                           judgment made in good faith by a Responsible Officer,
                           unless it is proved that the Trustee was negligent in
                           ascertaining the pertinent facts; and

                  (c)      the Trustee shall not be liable with respect to any
                           action it takes or omits to take in good faith in
                           accordance with a direction received by it pursuant
                           to Section 6.05 hereof.

         (4)      Whether or not therein expressly so provided, every provision
                  of this Indenture that in any way relates to the Trustee is
                  subject to paragraphs (a), (b), and (c) of this Section.

         (5)      No provision of this Indenture shall require the Trustee to
                  expend or risk its own funds or incur any liability. The
                  Trustee shall be under no obligation to exercise any of its
                  rights and powers under this Indenture at the request of any
                  Holders, unless such Holder shall have offered to the Trustee
                  security and indemnity satisfactory to it against any loss,
                  liability or expense.

         (6)      The Trustee shall not be liable for interest on any money
                  received by it except as the Trustee may agree in writing with
                  the Company. Money held in trust by the Trustee need not be
                  segregated from other funds except to the extent required by
                  law.

                                      -19-
<PAGE>

Section 7.02.  Rights of Trustee.

         (1)      The Trustee may conclusively rely upon any document believed
                  by it to be genuine and to have been signed or presented by
                  the proper Person. The Trustee need not investigate any fact
                  or matter stated in the document.

         (2)      Before the Trustee acts or refrains from acting, it may
                  require an Officers' Certificate or an Opinion of Counsel or
                  both. The Trustee shall not be liable for any action it takes
                  or omits to take in good faith in reliance on such Officers'
                  Certificate or Opinion of Counsel. The Trustee may consult
                  with counsel and the written and oral advice of such counsel
                  or any Opinion of Counsel shall be full and complete
                  authorization and protection from liability in respect of any
                  action taken, suffered or omitted by it hereunder in good
                  faith and in reliance thereon.

         (3)      The Trustee may act through its attorneys and agents and shall
                  not be responsible for the misconduct or negligence of any
                  agent appointed with due care.

         (4)      The Trustee shall not be liable for any action it takes or
                  omits to take in good faith that it believes to be authorized
                  or within the rights or powers conferred upon it by this
                  Indenture.

         (5)      Unless otherwise specifically provided in this Indenture, any
                  demand, request, direction or notice from the Company shall be
                  sufficient if signed by an Officer of the Company.

         (6)      The Trustee shall be under no obligation to exercise any of
                  the rights or powers vested in it by this Indenture at the
                  request or direction of any of the Holders unless such Holders
                  shall have offered to the Trustee reasonable security or
                  indemnity against the costs, expenses and liabilities that
                  might be incurred by it in compliance with such request or
                  direction.

Section 7.03.  Individual Rights of Trustee.

         The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities and may otherwise deal with the Company or any
Affiliate of the Company with the same rights it would have if it were not
Trustee. However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the SEC for
permission to continue as trustee or resign. Any Agent may do the same with like
rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof.

Section 7.04.  Trustee's Disclaimer.

         The Trustee shall not be responsible for and makes no representation as
to the validity or adequacy of this Indenture, as modified or supplemented by an
Officer's Certificate, a Board Resolution or a supplemental indenture, or the
Securities, it shall not be accountable for the Company's use of the proceeds
from the Securities or any money paid to the Company or upon the Company's
direction under any provision of this Indenture, as modified or supplemented by
an Officer's Certificate, a Board Resolution or a supplemental indenture, it
shall not be responsible for the use or application of any money received by any
Paying Agent other than the Trustee, and it shall not be responsible for any
statement or recital herein or any statement in the Securities or any other
document in connection with the sale of the Securities or pursuant to this
Indenture other than its certificate of authentication.

Section 7.05.  Notice of Defaults.

         If a Default or Event of Default occurs and is continuing and if it is
known to the Trustee, the Trustee shall mail to Holders of Securities a notice
of the Default or Event of Default within 90 days after it occurs. Except in the
case of a Default or Event of Default in payment of principal of, premium, if
any, or interest on any Security, the Trustee may withhold the notice if and so
long as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of the Holders of the Securities.

                                      -20-
<PAGE>

Section 7.06.  Reports by Trustee to Holders of the Securities.

     Within 60 days after each May 15, beginning with the May 15 for so long as
Securities remain outstanding, the Trustee shall mail to the Holders of the
Securities a brief report dated as of such reporting date that complies with TIA
(S) 313(a) (but if no event described in TIA (S) 313(a) has occurred within the
twelve months preceding the reporting date, no report need be transmitted). The
Trustee also shall comply with TIA (S) 313(b). The Trustee shall also transmit
by mail all reports as required by TIA (S) 313(c).

     A copy of each report at the time of its mailing to the Holders of
Securities shall be mailed to the Company and filed with the SEC and each stock
exchange on which the Securities are listed in accordance with TIA (S) 313(d).
The Company shall promptly notify the Trustee when the Securities are listed on
any stock exchange.

Section 7.07.  Compensation and Indemnity.

     The Company shall pay to the Trustee from time to time reasonable
compensation for its acceptance of this Indenture and services hereunder. The
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company shall reimburse the Trustee promptly
upon request for all reasonable disbursements, advances and expenses incurred or
made by it in addition to the compensation for its services. Such expenses shall
include the reasonable compensation, disbursements and expenses of the Trustee's
agents and counsel.

     The Company shall indemnify the Trustee against any and all losses,
liabilities or expenses incurred by it arising out of or in connection with the
acceptance or administration of its duties under this Indenture, including the
costs and expenses of enforcing this Indenture against the Company (including
this Section 7.07) and defending itself against any claim (whether asserted by
the Company or any Holder or any other person) or liability in connection with
the exercise or performance of any of its powers or duties hereunder, except to
the extent any such loss, liability or expense may be attributable to its
negligence or bad faith. The Trustee shall notify the Company promptly of any
claim for which it may seek indemnity. Failure by the Trustee to so notify the
Company shall not relieve the Company of its obligations hereunder. The Company
shall defend the claim and the Trustee shall cooperate in the defense. The
Trustee may have separate counsel and the Company shall pay the reasonable fees
and expenses of such counsel. The Company need not pay for any settlement made
without its consent, which consent shall not be unreasonably withheld.

     The obligations of the Company under this Section 7.07 shall survive the
satisfaction and discharge of this Indenture.

     To secure the Company's payment obligations in this Section, the Trustee
shall have a Lien prior to the Securities on all money or property held or
collected by the Trustee, except that held in trust to pay principal and
interest on particular Securities. Such Lien shall survive the satisfaction and
discharge of this Indenture.

     When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.01(g) or (h) hereof occurs, the expenses and the
compensation for the services (including the fees and expenses of its agents and
counsel) are intended to constitute expenses of administration under any
Bankruptcy Law.

     The Trustee shall comply with the provisions of TIA (S) 313(b)(2) to the
extent applicable.

Section 7.08.  Replacement of Trustee.

     A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee's acceptance of
appointment as provided in this Section.

     The Trustee may resign in writing at any time and be discharged from the
trust hereby created by so notifying the Company. The Holders of a majority in
principal amount of the then outstanding Securities may

                                      -21-
<PAGE>

remove the Trustee by so notifying the Trustee and the Company in writing. The
Company may remove the Trustee if:

     (1)  the Trustee fails to comply with Section 7.10 hereof;

     (2)  the Trustee is adjudged a bankrupt or an insolvent or an order for
          relief is entered with respect to the Trustee under any Bankruptcy
          Law;

     (3)  a Custodian or public officer takes charge of the Trustee or its
          property; or

     (4)  the Trustee becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the office
of Trustee for any reason, the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders
of a majority in principal amount of the then outstanding Securities may appoint
a successor Trustee to replace the successor Trustee appointed by the Company.

     If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company, or
the Holders of at least 10% in principal amount of the then outstanding
Securities may petition any court of competent jurisdiction for the appointment
of a successor Trustee.

     If the Trustee, after written request by any Holder who has been a Holder
for at least six months, fails to comply with Section 7.10, such Holder may
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company. Thereupon, the resignation or
removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to
Holders. The retiring Trustee shall promptly transfer all property held by it as
Trustee to the successor Trustee, provided all sums owing to the Trustee
hereunder have been paid and subject to the Lien provided for in Section 7.07
hereof. Notwithstanding replacement of the Trustee pursuant to this Section
7.08, the Company's obligations under Section 7.07 hereof shall continue for the
benefit of the retiring Trustee.

Section 7.09.  Successor Trustee by Merger, etc.

     If the Trustee consolidates, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor Trustee.

Section 7.10.  Eligibility; Disqualification.

     There shall at all times be a Trustee hereunder that is a corporation
organized and doing business under the laws of the United States of America or
of any state thereof that is authorized under such laws to exercise corporate
trustee power, that is subject to supervision or examination by federal or state
authorities and that has a combined capital and surplus of at least $75 million
as set forth in its most recent published annual report of condition.

     This Indenture shall always have a Trustee who satisfies the requirements
of TIA (S) 310(a)(1), (2) and (5). The Trustee is subject to TIA (S) 310(b).

Section 7.11.  Preferential Collection of Claims Against Company.

     The Trustee is subject to TIA (S) 311(a), excluding any creditor
relationship listed in TIA (S) 311(b). A Trustee who has resigned or been
removed shall be subject to TIA (S) 311(a) to the extent indicated therein.

                                      -22-
<PAGE>

                                   ARTICLE 8

                   LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01.  Option to Effect Legal Defeasance or Covenant Defeasance.

     The Company may, at the option of its Board of Directors evidenced by a
resolution set forth in an Officers' Certificate, at any time, elect to have
either Section 8.02 or 8.03 hereof be applied to all outstanding Securities upon
compliance with the conditions set forth below in this Article Eight.

Section 8.02.  Legal Defeasance and Discharge.

     Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, the Company shall, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be deemed to have been
discharged from its obligations with respect to all outstanding Securities on
the date the conditions set forth below are satisfied (hereinafter, "Legal
Defeasance"). For this purpose, Legal Defeasance means that the Company shall be
deemed to have paid and discharged the entire Indebtedness represented by the
outstanding Securities, which shall thereafter be deemed to be "outstanding"
only for the purposes of Section 8.05 hereof and the other Sections of this
Indenture referred to in (1) and (2) below, and to have satisfied all its other
obligations under such Securities and this Indenture (and the Trustee, on demand
of and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which shall survive
until otherwise terminated or discharged hereunder:

     (1)  the rights of Holders of outstanding Securities to receive solely from
          the trust fund described in Section 8.04 hereof, and as more fully set
          forth in such Section, payments in respect of the principal of,
          premium, if any, and interest on such Securities when such payments
          are due;

     (2)  the Company's obligations with respect to such Securities under
          Article 2 hereof;

     (3)  the rights, powers, trusts, duties and immunities of the Trustee
          hereunder and the Company's obligations in connection therewith; and

     (4)  this Article Eight.

     Subject to compliance with this Article Eight, the Company may exercise its
option under this Section 8.02 notwithstanding the prior exercise of its option
under Section 8.03 hereof.

Section 8.03.  Covenant Defeasance.

     Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.03, the Company shall, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be released from its
obligations under the covenants contained in an Officer's Certificate, a Board
Resolution or a supplemental indenture and clause (4) of Section 5.01 hereof
with respect to the outstanding Securities on and after the date the conditions
set forth in Section 8.04 are satisfied (hereinafter, "Covenant Defeasance"),
and the Securities shall thereafter be deemed not "outstanding" for the purposes
of any direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed "outstanding" for all other purposes hereunder (it being
understood that such Securities shall not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect to the
outstanding Securities, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to
comply shall not constitute a Default or an Event of Default under Section 6.01
hereof, but, except as specified above, the remainder of this Indenture and such
Securities shall be unaffected thereby. In addition, upon the Company's exercise
under Section 8.01 hereof of the option applicable

                                      -23-
<PAGE>

to this Section 8.03 hereof, subject to the satisfaction of the conditions set
forth in Section 8.04 hereof, Sections 6.01(3) through 6.01(6) hereof shall not
constitute Events of Default.

Section 8.04.  Conditions to Legal or Covenant Defeasance.

     The following shall be the conditions to the application of either Section
8.02 or 8.03 hereof to the outstanding Securities:

     In order to exercise either Legal Defeasance or Covenant Defeasance:

     (1)  the Company must irrevocably deposit with the Trustee, in trust, for
          the benefit of the Holders, cash in United States dollars, non-
          callable Government Securities, or a combination thereof, in such
          amounts as will be sufficient, in the opinion of a nationally
          recognized firm of independent public accountants, to pay the
          principal of, premium, if any, and interest on the outstanding
          Securities on the stated date for payment thereof or on the applicable
          redemption date, as the case may be;

     (2)  in the case of an election under Section 8.02 hereof, the Company
          shall have delivered to the Trustee an Opinion of Counsel in the
          United States reasonably acceptable to the Trustee confirming that:

          (a)  the Company has received from, or there has been published by,
               the Internal Revenue Service a ruling; or

          (b)  since the date of this Indenture, there has been a change in the
               applicable federal income tax law, in either case to the effect
               that, and based thereon such Opinion of Counsel shall confirm
               that, the Holders of the outstanding Securities will not
               recognize income, gain or loss for federal income tax purposes as
               a result of such Legal Defeasance and will be subject to federal
               income tax on the same amounts, in the same manner and at the
               same times as would have been the case if such Legal Defeasance
               had not occurred;

     (3)  in the case of an election under Section 8.03 hereof, the Company
          shall have delivered to the Trustee an Opinion of Counsel in the
          United States reasonably acceptable to the Trustee confirming that the
          Holders of the outstanding Securities will not recognize income, gain
          or loss for federal income tax purposes as a result of such Covenant
          Defeasance and will be subject to federal income tax on the same
          amounts, in the same manner and at the same times as would have been
          the case if such Covenant Defeasance had not occurred;

     (4)  no Default or Event of Default shall have occurred and be continuing
          either:

          (a)  on the date of such deposit (other than a Default or Event of
               Default resulting from the borrowing of funds to be applied to
               such deposit); or

          (b)  insofar as Sections 6.01(7) or 6.01(8) hereof are concerned, at
               any time in the period ending on the 91st day after the date of
               deposit;

     (5)  such Legal Defeasance or Covenant Defeasance shall not result in a
          breach or violation of, or constitute a default under, any material
          agreement or instrument (other than this Indenture) to which the
          Company is a party or by which the Company is bound;

     (6)  the Company shall have delivered to the Trustee an Opinion of Counsel
          (which may be subject to customary exceptions including, but not
          limited to the assumption that there is no intervening bankruptcy of
          the Company between the date of deposit and the 91/st/ day following
          the deposit and the assumption that no Holder is an "insider" of the
          Company under applicable bankruptcy law) to the effect that on the
          91st day following the deposit, the trust funds will not be subject to
          the effect

                                      -24-
<PAGE>

          any applicable bankruptcy, insolvency, reorganization or similar laws
          affecting creditors' rights generally;

     (7)  the Company shall have delivered to the Trustee an Officers'
          Certificate stating that the deposit was not made by the Company with
          the intent of preferring the Holders over any other creditors of the
          Company or with the intent of defeating, hindering, delaying or
          defrauding any other creditors of the Company or others; and

     (8)  the Company shall have delivered to the Trustee an Officers'
          Certificate and an Opinion of Counsel, each stating that all
          conditions precedent provided for or relating to the Legal Defeasance
          or the Covenant Defeasance have been complied with.

Section 8.05.  Deposited Money and Government Securities to be Held in Trust;
               Other Miscellaneous Provisions.

     Subject to Section 8.06 hereof, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 8.05, the
"Trustee") pursuant to Section 8.04 hereof in respect of the outstanding
Securities shall be held in trust and applied by the Trustee, in accordance with
the provisions of such Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as Paying
Agent) as the Trustee may determine, to the Holders of such Securities of all
sums due and to become due thereon in respect of principal, premium, if any, and
interest, but such money need not be segregated from other funds except to the
extent required by law.

     The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the cash or non-callable Government
Securities deposited pursuant to Section 8.04 hereof or the principal and
interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding
Securities.

     Anything in this Article Eight to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon the request of the
Company any money or non-callable Government Securities held by it as provided
in Section 8.04 hereof which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under Section
8.04(a) hereof), are in excess of the amount thereof that would then be required
to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

Section 8.06.  Repayment to Company.

     Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of, premium, if any, or
interest on any Security and remaining unclaimed for two years after such
principal, and premium, if any, or interest has become due and payable shall be
paid to the Company on its request or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter
look only to the Company for payment thereof, and all liability of the Trustee
or such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment,
may at the expense of the Company cause to be published once, in the New York
Times and The Wall Street Journal (national edition), notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such notification or publication, any
unclaimed balance of such money then remaining will be repaid to the Company.

Section 8.07.  Reinstatement.

     If the Trustee or Paying Agent is unable to apply any United States dollars
or non-callable Government Securities in accordance with Section 8.02 or 8.03
hereof, as the case may be, by reason of any order or judgment of

                                      -25-
<PAGE>

any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Company's obligations under this
Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to Section 8.02 or 8.03 hereof until such time as
the Trustee or Paying Agent is permitted to apply all such money in accordance
with Section 8.02 or 8.03 hereof, as the case may be; provided, however, that,
if the Company makes any payment of principal of, premium, if any, or interest
on any Security following the reinstatement of its obligations, the Company
shall be subrogated to the rights of the Holders of such Securities to receive
such payment from the money held by the Trustee or Paying Agent.

                                   ARTICLE 9

                       AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01.  Without Consent of Holders of Securities.

     Notwithstanding Section 9.02 of this Indenture, the Company and the Trustee
may amend or supplement this Indenture or the Securities without the consent of
any Holder of Securities:

     (1)  to cure any ambiguity, defect or inconsistency;

     (2)  to provide for uncertificated Securities in addition to or in place of
          certificated Securities;

     (3)  to provide for the assumption of the Company's obligations to the
          Holders of the Securities by a successor to the Company pursuant to
          Article 5 hereof;

     (4)  to make any change that would provide any additional rights or
          benefits to the Holders of the Securities or that does not adversely
          affect the legal rights hereunder of any Holder of Securities;

     (5)  to comply with requirements of the SEC in order to effect or maintain
          the qualification of this Indenture under the TIA; or

     (6)  as provided in Section 2.02 hereof.

     Upon the request of the Company accompanied by a resolution of its Board of
Directors authorizing the execution of any such amended or supplemental
Indenture, and upon receipt by the Trustee of the documents described in Section
7.02 hereof, the Trustee shall join with the Company in the execution of any
amended or supplemental Indenture authorized or permitted by the terms of this
Indenture and to make any further appropriate agreements and stipulations that
may be therein contained, but the Trustee shall not be obligated to enter into
such amended or supplemental Indenture that affects its own rights, duties or
immunities under this Indenture or otherwise.

Section 9.02.  With Consent of Holders of Securities.

     Except as provided below in this Section 9.02, the Company and the Trustee
may amend or supplement this Indenture and the Securities with the consent of
the Holders of at least a majority in principal amount of the Securities then
outstanding, voting as a single class (including, without limitation, consents
obtained in connection with a tender offer or exchange offer for, or purchase
of, the Securities), and, subject to Sections 6.04 and 6.07 hereof, any existing
Default or Event of Default (other than a Default or Event of Default in the
payment of the principal of, premium, if any, or interest on the Securities,
except a payment default resulting from an acceleration that has been rescinded)
or compliance with any provision of this Indenture or the Securities may be
waived with the consent of the Holders of a majority in principal amount of the
then outstanding Securities, voting as a single class (including consents
obtained in connection with a tender offer or exchange offer for, or purchase
of, the Securities). Section 2.09 hereof shall determine which Securities are
considered to be "outstanding" for purposes of this Section 9.02.

                                      -26-
<PAGE>

     Upon the request of the Company accompanied by a resolution of its Board of
Directors authorizing the execution of any such amended or supplemental
Indenture, and upon the filing with the Trustee of evidence satisfactory to the
Trustee of the consent of the Holders of Securities as aforesaid, and upon
receipt by the Trustee of the documents described in Section 7.02 hereof, the
Trustee shall join with the Company in the execution of such amended or
supplemental Indenture unless such amended or supplemental Indenture directly
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion, but shall not be
obligated to, enter into such amended or supplemental Indenture.

     It shall not be necessary for the consent of the Holders of Securities
under this Section 9.02 to approve the particular form of any proposed amendment
or waiver, but it shall be sufficient if such consent approves the substance
thereof.

     After an amendment, supplement or waiver under this Section becomes
effective, the Company shall mail to the Holders of Securities affected thereby
a notice briefly describing the amendment, supplement or waiver. Any failure of
the Company to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such amended or supplemental
Indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the Holders of a
majority in aggregate principal amount of the Securities then outstanding,
voting as a single class, may waive compliance in a particular instance by the
Company with any provision of this Indenture or the Securities. However, without
the consent of each Holder affected, an amendment or waiver under this Section
9.02 may not (with respect to any Securities held by a non-consenting Holder):

     (1)  reduce the principal amount of Securities whose Holders must consent
          to an amendment, supplement or waiver;

     (2)  reduce the principal of or change the fixed maturity of any Security
          or alter or waive any of the provisions with respect to the redemption
          of the Securities;

     (3)  reduce the rate of or change the time for payment of interest,
          including default interest, on any Security;

     (4)  waive a Default or Event of Default in the payment of principal of or
          premium, if any, or interest on the Securities (except a rescission of
          acceleration of the Securities by the Holders of at least a majority
          in aggregate principal amount of the then outstanding Securities and a
          waiver of the payment default that resulted from such acceleration);

     (5)  make any Security payable in money other than that stated in the
          Securities;

     (6)  make any change in the provisions of this Indenture relating to
          waivers of past Defaults or the rights of Holders of Securities to
          receive payments of principal of, or premium, if any, or interest on
          the Securities;

     (7)  waive a redemption payment with respect to any Security;

     (8)  except as provided under Article Eight hereof or in accordance with
          the terms of any Security Guarantee, release any Guarantor from any of
          its obligations under its Security Guarantee or make any change in a
          Security Guarantee that would adversely affect the Holders of the
          Securities; or

     (9)  make any change in Section 6.04 or 6.07 hereof or in the foregoing
          amendment and waiver provisions.

Section 9.03.  Compliance with Trust Indenture Act.

     Every amendment or supplement to this Indenture or the Securities shall be
set forth in an amended or supplemental Indenture that complies with the TIA as
then in effect.

                                      -27-
<PAGE>

Section 9.04.  Revocation and Effect of Consents.

     Until an amendment, supplement or waiver becomes effective, a consent to it
by a Holder of a Security is a continuing consent by the Holder of a Security
and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder's Security, even if notation of
the consent is not made on any Security. However, any such Holder of a Security
or subsequent Holder of a Security may revoke the consent as to its Security if
the Trustee receives written notice of revocation before the date the waiver,
supplement or amendment becomes effective. An amendment, supplement or waiver
becomes effective in accordance with its terms and thereafter binds every
Holder.

Section 9.05.  Notation on or Exchange of Securities.

     The Trustee may place an appropriate notation about an amendment,
supplement or waiver on any Security thereafter authenticated. The Company in
exchange for all Securities may issue and the Trustee shall, upon receipt of an
Authentication Order, authenticate new Securities that reflect the amendment,
supplement or waiver.

     Failure to make the appropriate notation or issue a new Security shall not
affect the validity and effect of such amendment, supplement or waiver.

Section 9.06.  Trustee to Sign Amendments, etc.

     The Trustee shall sign any amended or supplemental Indenture authorized
pursuant to this Article Nine if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. The Company
may not sign an amendment or supplemental Indenture until the Board of Directors
approves it. In executing any amended or supplemental indenture, the Trustee
shall be entitled to receive and (subject to Section 7.01 hereof) shall be fully
protected in relying upon, in addition to the documents required by Section
10.04 hereof, an Officer's Certificate and an Opinion of Counsel stating that
the execution of such amended or supplemental indenture is authorized or
permitted by this Indenture.

                                  ARTICLE 10

                                 MISCELLANEOUS

Section 10.01.  Trust Indenture Act Controls.

     If any provision of this Indenture limits, qualifies or conflicts with the
duties imposed by TIA (S)318(c), the imposed duties shall control.

Section 10.02.  Notices.

     Any notice or communication by the Company or the Trustee to the others is
duly given if in writing and delivered in Person or mailed by first class mail
(registered or certified, return receipt requested), telex, telecopier or
overnight air courier guaranteeing next day delivery, to the others' address:

     If to the Company:

          XM Satellite Radio Holdings Inc.
          1500 Eckington Place, N.E.
          Washington, D.C. 20002
          Telecopier No.: (202) 380-4500
          Attention: General Counsel

                                      -28-
<PAGE>

     With a copy to:

          Hogan & Hartson L.L.P.
          555 13/th/ Street, N.W.
          Washington, D.C. 20004
          Telecopier No.: (202) 637-5910
          Attention: Steven M. Kaufman, Esq.

     If to the Trustee:

     The Company or the Trustee, by notice to the others, may designate
additional or different addresses for subsequent notices or communications.

     All notices and communications (other than those sent to Holders) shall be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt acknowledged,
if telecopied; and the next Business Day after timely delivery to the courier,
if sent by overnight air courier guaranteeing next day delivery.

     Any notice or communication to a Holder shall be mailed by first class
mail, certified or registered, return receipt requested, or by overnight air
courier guaranteeing next day delivery to its address shown on the register kept
by the Registrar. Any notice or communication shall also be so mailed to any
Person described in TIA (S) 313(c), to the extent required by the TIA. Failure
to mail a notice or communication to a Holder or any defect in it shall not
affect its sufficiency with respect to other Holders.

     If a notice or communication is mailed in the manner provided above within
the time prescribed, it is duly given, whether or not the addressee receives it.

     If the Company mails a notice or communication to Holders, it shall mail a
copy to the Trustee and each Agent at the same time.

Section 10.03.  Communication by Holders of Securities with Other Holders of
                Securities.

     Holders may communicate pursuant to TIA (S) 312(b) with other Holders with
respect to their rights under this Indenture or the Securities. The Company, the
Trustee, the Registrar and anyone else shall have the protection of TIA (S)
312(c).

Section 10.04.  Certificate and Opinion as to Conditions Precedent.

     Upon any request or application by the Company to the Trustee to take any
action under this Indenture, the Company shall furnish to the Trustee:

     (1)  an Officers' Certificate in form and substance reasonably satisfactory
          to the Trustee (which shall include the statements set forth in
          Section 10.05 hereof) stating that, in the opinion of the signers, all
          conditions precedent and covenants, if any, provided for in this
          Indenture relating to the proposed action have been satisfied; and

     (2)  an Opinion of Counsel in form and substance reasonably satisfactory to
          the Trustee (which shall include the statements set forth in Section
          10.05 hereof) stating that, in the opinion of such counsel, all such
          conditions precedent and covenants have been satisfied.

                                      -29-
<PAGE>

Section 10.05.  Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA (S) 314(a)(4)) shall comply with the provisions of TIA (S)
314(e) and shall include:

     (1)  a statement that the Person making such certificate or opinion has
          read such covenant or condition;

     (2)  a brief statement as to the nature and scope of the examination or
          investigation upon which the statements or opinions contained in such
          certificate or opinion are based;

     (3)  a statement that, in the opinion of such Person, he or she has made
          such examination or investigation as is necessary to enable him to
          express an informed opinion as to whether or not such covenant or
          condition has been satisfied; and

     (4)  a statement as to whether or not, in the opinion of such Person, such
          condition or covenant has been satisfied.

Section 10.06.  Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions; provided that no such rule shall
conflict with the terms of this Indenture or the TIA.

Section 10.07.  No Personal Liability of Directors, Officers, Employees and
                Stockholders.

     No past, present or future director, officer, employee, incorporator or
stockholder of the Company, as such, shall have any liability for any
obligations of the Company under the Securities, this Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their creation.
Each Holder by accepting a Security waives and releases all such liability. The
waiver and release are part of the consideration for issuance of the Securities.

Section 10.08.  Governing Law.

     THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE
AND PERFORMED WITHIN THE STATE OF NEW YORK.

Section 10.09.  No Adverse Interpretation of Other Agreements.

     This Indenture may not be used to interpret any other indenture, loan or
debt agreement of the Company or its Subsidiaries or of any other Person. Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

Section 10.10.  Successors.

     All agreements of the Company in this Indenture and the Securities shall
bind its successors. All agreements of the Trustee in this Indenture shall bind
its successors.

                                      -30-
<PAGE>

Section 10.11.  Severability.

     In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

Section 10.12.  Counterpart Originals.

     The parties may sign any number of copies of this Indenture. Each signed
copy shall be an original, but all of them together represent the same
agreement.

Section 10.13.  Table of Contents, Headings, etc.

     The Table of Contents, Cross-Reference Table and Headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part of this Indenture and shall in no way
modify or restrict any of the terms or provisions hereof.

                        [Signatures on following page]

                                      -31-
<PAGE>

                                  SIGNATURES

Dated as of_______________________

                                        XM Satellite Radio Holdings Inc.

                                        By:____________________________
                                        Name:__________________________
                                        Title:_________________________

Attest:

Name:______________________
Title:_____________________

                                        [_________________________]

                                        By:____________________________
                                        Name:__________________________
                                        Title:_________________________

Attest:

___________________________
Authorized Signatory

Date:______________________

                                      -32-<PAGE>

                                                               EXHIBIT NO. 10.25

                              EMPLOYMENT AGREEMENT

     This Employment Agreement ("Agreement") is made this 17th day of July,
2000, between PROSOFTTRAINING.COM, a Nevada corporation (the "Company"), and
Robert G. Gwin ("Employee").

     WHEREAS:

     A.  The Company is engaged in the provision of Internet and intranet
training and other computer training and services.

     B.  The Company and Employee desire to enter into an Employment Agreement
to memorialize the terms of employment.

     C.  NOW, THEREFORE, in consideration of the promises and mutual covenants
herein set forth, the parties do hereby agree and promise as follows:

     1.  Employment.  The Company hereby employs Employee and Employee hereby
         ----------
accepts employment under the terms and conditions set forth below.  The
Employee's title shall be Chief Financial Officer. Employment will commence
August 1, 2000; the contract shall conclude on July 31, 2002.

     2.  Duties.
         ------

         2.1   The Employee shall perform such managerial, supervisory,
development or executive duties in connection with the business of the Company
as the Company may from time to time assign consistent with Employee's title of
Chief Financial Officer. Notwithstanding the foregoing the company expects that
employee shall perform the following tasks which shall not be conclusive:
Supervise Finance and Accounting department personnel, manage or assist the
Chief Executive Officer in all matters relating to presenting company
information and be a contact person for contacts with, and presentation to
investment bankers, Wall Street analysts and other functions relating to
disclosure of information as is required of a publicly-traded company, assist
diligence related to mergers and acquisitions, strategic alliances and major
contracts, and assist the Chief Executive Officer, and Chief Operating Officer
as is necessary.

         2.2   Employee will report and be responsible to the Chief Executive
Officer, and take strategic direction from the Chief Operating Officer.

         2.3   Employee agrees to devote his full business time, energy and
skills to such employment subject to absences and customary vacations and for
temporary illnesses.

         2.4   Employee will not engage in other gainful occupation during the
term of this Agreement without prior written consent of the Company; provided,
<PAGE>

however, that nothing contained herein shall be construed to prevent the
Employee from trading for his own account and benefit in stocks, bonds,
securities, real estate, commodities and other forms of investments.

     3.   Term.  The term of this Agreement shall begin on August 1, 2000 and
          ----
shall continue until July 31, 2002, unless earlier terminated pursuant to the
provisions hereof.

     4.   Compensation.
          ------------

          4.1  Employee shall receive a base salary of $175,000 per year payable
in equal installments on the Company's regular payroll dates ("Base Salary"),
which Base Salary the Company shall continue to pay during the term of this
Agreement until the Company is no longer obligated to pay the same pursuant to
the provisions of Section 6 hereof.

          4.2  Employee shall be entitled to an award of options under the
Company's plan, which may be in place. The Company will recommend to the Board
of Directors that Employee shall be granted 175,000 options which shall be
vested under the Company's normal vesting procedures over a period of four
years. The options shall be issued when approved by the Board; Employee shall
receive his options at the strike price when awarded.

          4.3  In addition, the Employee is to receive relocation and moving
expenses of $30,000 which shall be paid upon commencement of employment or
thereafter when requested by the Employee.

          4.4  The Company shall pay Employee's reasonable expenses in
maintaining his professional standing.

          4.5  In addition to Employee's Base Salary, Employee shall be entitled
to receive an annual bonus each calendar year of up to $70,000, to be determined
as follows:

               (a)  $10,500 shall be earned if the closing bid price for the
Company's Common Stock, as reported by NASDAQ (the "Company Closing Price"), is
equal to or greater than $20 for five consecutive business days during that
calendar year after commencement of employment;

               (b)  An additional $10,500 shall be earned if the Company Closing
Price is equal to or greater than $25 for five consecutive business days during
that calendar year after commencement of employment;

               (c)  An additional $7,000.00 per fiscal quarter in which gross
revenue of the Company equals or exceeds $7,000,000, up to a maximum of three
quarters per calendar year ($21,000 maximum per calendar year) after
commencement of employment;

                                       2
<PAGE>

               (d)  Up to an additional $28,000 to be determined by the Company,
in its sole and absolute discretion, taking into account whatever factors it
considers appropriate, including but not limited to the Company's ability to
have a successful secondary offering and/or the Company's success in mergers and
acquisitions. The bonus structure may be changed by agreement as the Company may
implement "team goals" for the Management Team.

               (e)  The bonus for each calendar year shall be payable on August
1 of the following year. The bonus shall be paid in cash or, at the option of
the Company, in shares of Common Stock of the Company valued at the Closing
Price on that August 1 (or, if August 1 is not a business day, the first
business day prior to that date). If the bonus is paid in Common Stock, the
Company will also pay Federal and state income taxes incurred as a result of the
payment in this manner.

     5.   Termination.
          -----------

          5.1  The Company may terminate this Agreement for cause by giving the
Employee written notice. "Cause" shall mean gross negligence or willful
misconduct in the performance of Employee's duties hereunder, willful breach or
habitual neglect of duties, defalcation, fraud, conviction of a felony, or
incarceration for not less than 30 consecutive days, all as determined by the
Board of Directors. If the Employee disputes the Company's right to terminate
this Agreement for Cause, the dispute shall be resolved in accordance with
Section 11 hereof.

          5.2  The Company may terminate this Agreement if Employee is mentally
or physically disabled and such disability renders him unable to perform his
duties under this Agreement for 90 consecutive days in any 12-month period.
During the term of this Agreement, the Company will take out a disability
insurance policy providing Employee commensurate compensation in the event of
such a disability.

          5.3  This Agreement may be terminated voluntarily by the Employee by
providing the Company with written notice specifying the date of such
termination not less than 90 days prior to the effective date of termination.

          5.4  The Company without Cause may terminate this Agreement by
providing Employee with written notice specifying the date of such termination
not less than 30 days prior to the effective date of termination.

     6.   Effect of Termination.
          ---------------------

          6.1  If Employee's employment hereunder is terminated without Cause
pursuant to Section 5.4, the Company shall (i) pay to Employee an amount equal
to Employee's cash compensation from the Company for the previous 12 months,
plus the value of any accrued or unused vacation and (ii) provide acceleration
and immediate vesting of all of Employee's stock options from the Company which
have not yet vested at that time, and such accelerated options as well as any
other options which have vested and are then exercisable shall be exercisable
for a period of three (3) months following the date of termination and shall
then expire and be of no further force or effect. The

                                       3
<PAGE>

Company shall also pay to Employee any bonus actually earned under section 4.5
that is determined by the achievement of a specific goal or event set forth in
section 4.5 (a), (b) and (c). The Company shall thereafter have no further
obligations under this Agreement.

          6.2  If Employee's employment hereunder is terminated pursuant to
Sections 5.1, 5.2 or 5.3, the Company shall pay to Employee the Base Salary
through the date of such termination, plus the value of any accrued or unused
vacation, and the Company shall thereafter have no further obligations to
Employee under this Agreement.

          6.3  If Employee's employment is terminated as a result of the
expiration of the term of this Agreement, then the Company shall pay to Employee
the Base Salary through the expiration date, plus the value of any accrued or
unused vacation, and the Company shall thereafter have no further obligations
under this Agreement.

     7.   Change of Control.
          -----------------

          7.1  For purposes of this Agreement, a "Change of Control" shall mean
the occurrence of either one of the following events:

               (i)  any corporation, partnership, person, other entity or group
(as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended) (collectively, a "Person"), acquires shares of capital stock of the
Company representing more than fifty percent (50%) of the total number of shares
of capital stock that may be voted for the election of directors of the Company;
or

               (ii) a merger, consolidation or other business combination of the
Company with or into another Person is consummated, or all or substantially all
of the assets of the Company are acquired by another Person, as a result of
which the stockholders of the Company immediately prior to the consummation of
such transaction own, immediately after consummation of such transaction, equity
securities possessing less than fifty percent (50%) of the voting power of the
surviving or acquiring Person (or any Person in control of the surviving or
acquiring Person), the equity securities of which are issued or transferred in
such transaction.

          7.2  Upon the occurrence of a Change of Control during the term of
this Agreement, a portion of the outstanding employee stock options then held by
Employee shall accelerate and immediately vest, as follows: If there is a Change
of Control within six months of Employee commencing his employment 75,000
options shall vest; if there is a Change of Control within one year of Employee
commencing his employment 125,000 options shall vest, if there is a Change of
Control after one year of Employee commencing employment all options held by
Employee shall immediately vest, and such accelerated options as well as any
other options which have vested and which are then exercisable shall remain
exercisable until expiration or earlier termination pursuant to the terms of the
respective original option agreements.

          7.3  If upon the completion of a Change of Control Employee is not
Chief Financial Officer of the ultimate parent organization of which the Company
is a

                                       4
<PAGE>

part, then the Company shall immediately make a payment to Employee equal to
$200,000. Notwithstanding the foregoing, should the Chief Executive Officer, and
the Chief Operating Officer of the Company agree to waive their payment upon
Change of Control Employee shall not be entitled to the payment. Should the
Chief Executive Officer and the Chief Operating Officer agree to reduce the
payments to which they are entitled to on a change of control, Employee agrees
that his payment shall be reduced by an equal percentage. In such event Employee
shall be entitled to have additional options that have not vested under section
7.2 during the first year of employment vest up to the amount that would allow
Employee to realize a total payment equal to $200,000. By way of example, should
the CEO and COO agree to reduce their payment by half, Employee would receive a
cash payment under this section of $100,000, and, if the event occurs during the
first year of employment, vest unvested options which would result in economic
value equal to the difference between the option strike price and option
exercise price of an additional $100,000.

          7.4    Withholding Taxes and Other Deductions.  To the extent
                 --------------------------------------
required by law, the Company shall withhold from any payments due Employee under
this Agreement any applicable Federal, state or local taxes and such other
deductions as are prescribed by law or Company policy, except in the case where
a bonus is paid in Common Stock.

     8.   Proprietary Information.
          -----------------------

          8.1    Employee understands that the Company possesses and will
continue to possess information that has been created, discovered, developed or
otherwise become known to the Company (including, without limitation,
information created, discovered, developed or made known by Employee during the
period of or arising out of his employment by the Company, whether prior to or
after the date hereof) or in which property rights have been assigned or
otherwise conveyed to the Company, which information has commercial value in the
business in which the Company is engaged. All such information is hereinafter
called "Proprietary Information." By way of illustration, but not limitation,
Proprietary Information includes processes, formulas, codes, data, programs,
know-how, improvements, discoveries, developments, designs, inventions,
techniques, marketing plans, strategies, forecasts, new products, unpublished
financial statements, budgets, projections, licenses, prices, costs, contracts
and customer and supplier lists.

          8.2    In consideration of the compensation received by the Employee
from the Company and the covenants contained in this Agreement, Employee agrees
as follows:

          8.2.1  All Proprietary Information shall be the sole property of the
Company and its assigns, and the Company and its assigns shall be the sole owner
of all patents, copyrights, and other rights in connection therewith.  Employee
hereby assigns to the Company rights he may have or acquire in such Proprietary
Information.  At all times, both during his employment by the Company and after
its termination, Employee will keep in strictest confidence and trust all
Proprietary Information and will not use or

                                       5
<PAGE>

disclose any Proprietary Information without the written consent of the Company,
except as may be necessary in the ordinary course of performing his duties under
this Agreement.

          8.2.2     All documents, records, equipment and other physical
property, whether or not pertaining to Proprietary Information, furnished to
Employee by the Company or produced by Employee or others in connection with
Employee's employment with the Company shall be and remain the sole property of
the Company. In the event of the termination of his employment by him or the
Employee for any reason, Employee will deliver to the Company all documents,
notes, drawings, specifications, programs, data, customer lists and other
materials of any nature pertaining to his work with the Company and Employee
will not take with him or use any of the foregoing, any reproduction of any of
the foregoing, or any Proprietary Information that is embodied in a tangible
medium of expression.

          8.2.3     Employee recognizes that the Company is engaged in a
continuous program of development and marketing respecting its present and
future business. Employee understands that as part of his employment by the
Company he has been and is expected to make new contributions of value to the
Company and that his employment has created a relationship of confidence and
trust between him and the Company with respect to certain information applicable
to the business of the Company or applicable to the business of any customer of
the Company, which has been or may be made known to Employee by the Company or
by any customer of the Company or which may have been or may be learned by
Employee during the period of his employment by the Company.

     9.   Covenant Not to Compete.
          -----------------------

          9.1       In consideration for the payments to be made under this
Agreement, Employee shall, for the greater of (a) a period of two years or (b)
such period as Employee may be employed by the Company, refrain from, either
alone or in conjunction with any other person, or directly or indirectly through
its present or future affiliates :

                    (i)    employing, engaging or seeking to employ or engage
any person who within the prior twenty-four (24) months had been an officer or
employee of the Company;

                    (ii)   causing or attempting to cause (A) any client,
     customer or supplier of the Company to terminate or materially reduce its
     business with the Company, or (B) any officer, employee or consultant of
     the Company to resign or sever a relationship with the Company;

                    (iii)  disclosing (unless compelled by judicial or
administrative process) or using any confidential or secret information relating
to the Company or any of their respective clients, customers or suppliers; or

                    (iv)   Participating or engaging in (other than through the
ownership of five percent (5%) or less of any class of securities registered
under the

                                       6
<PAGE>

Securities Exchange Act of 1934, as amended), or otherwise lending assistance
(financial or otherwise) to any person participating or engaged in, any of the
lines of business in which the Company is participating or engaged on the date
of termination in any jurisdiction in which the Company participates or engages
in such line of business on the date of termination.

Notwithstanding the foregoing, the restrictive covenants set forth in this
Section 9 shall terminate immediately upon a termination of this Agreement by
the Company without Cause.

          9.2  The parties hereto recognize that the laws and public policies of
the various states of the United States may differ as to the validity and
enforceability of covenants similar to those set forth in this Section. It is
the intention of the parties that the provisions of this Section be enforced to
the fullest extent permissible under the laws and policies of each jurisdiction
in which enforcement may be sought, and that the unenforceability (or the
modification to conform to such laws or policies) of any provisions of this
Section shall not render unenforceable, or impair, the remainder of the
provisions of this Section. Accordingly, if any provision of this Section shall
be determined to be invalid or unenforceable, such invalidity or
unenforceability shall be deemed to apply only with respect to the operation of
such provision in the particular jurisdiction in which such determination is
made and not with respect to any other provision or jurisdiction.

          9.3  The parties hereto acknowledge and agree that any remedy at law
for any breach of the provisions of this Section would be inadequate, and
Employee hereby consents to the granting by any court of an injunction or other
equitable relief, without the necessity of actual monetary loss being proved, in
order that the breach or threatened breach of such provisions may be effectively
restrained.

          9.4  The Company and the Employee acknowledge that the foregoing
restrictive covenants in this Section 9 are essential elements of this Agreement
and that, but for the agreement of the Employee to comply with those covenants,
the Company would not have agreed to enter into this Agreement. The covenants by
the Employee shall be construed as agreements independent of any other provision
in this Agreement.

          9.5  The Company and the Employee intend that the covenants contained
in this Section 10 shall be construed as a series of separate covenants, one for
each county of the State of Texas and one for each State of the United States
other than Texas.

          9.6  The Company and the Employee understand and agree that, if any
portion of the restrictive covenants set forth in this Section 9 is held to be
unreasonable, arbitrary, or against public policy, then that portion of those
covenants shall be considered divisible as to time and geographical area.  The
Company and the Employee agree that, if any court of competent jurisdiction
determines that the specified time period or the specified geographical area of
application in any covenant is unreasonable, arbitrary, or against public
policy, then a lesser time period, geographical area, or both,

                                       7
<PAGE>

that is determined to be reasonable, nonarbitrary, and not against public policy
may be enforced against Employee. The Company and the Employee agree and
acknowledge that they are familiar with the present and proposed operations of
the Company and believe that the restrictive covenants set forth in this Section
10 are reasonable with respect to their subject matter, duration, and
geographical application.

          9.7  The parties acknowledge that the status of the Employee in this
business and industry is unique and the success of the Company in said business
is materially and substantially dependent upon the continued employment of the
Employee, and in the event the employment of the Employee is terminated for any
reason, such business of the Company will be substantially and irrevocably
damaged. In view thereof, the parties acknowledge that monetary damages alone
will not fully compensate the Company in the event the Employee fails or refuses
to comply with the terms of this Section 9 above when applicable, and agree that
the Company, in addition to all other remedies provided in law and in equity,
shall have the remedy of injunctive relief and specific performance to enforce
the terms of said Section.

     10.  Arbitration.  Except as otherwise provide herein, any controversies
          -----------
or claims arising out of, or relating to this Agreement or the breach thereof,
shall be settled by arbitration in Austin, Texas in accordance with the rules
of, but not subject to the jurisdiction of, the American Arbitration
Association, which decision shall be final and binding on the parties, and
judgment upon the award rendered may be entered in any court having jurisdiction
thereof. For these purposes the arbitrator shall be an individual who has
demonstrated that such individual is familiar with and has experience in the
legal issues involving employer-employee relationships and has had no prior
prejudicial contacts with either party. In addition to all other remedies
provided in law or in equity, the arbitrator is hereby authorized to assess
costs and attorneys' fees against either party if the arbitrator finds, based on
all the facts and circumstances, that the conduct of or the claims made by such
party were unreasonable or substantially without merit.

     11.  Notice.  All notices, requests and other communications hereunder must
          ------
be in writing and will be deemed to have been duly given only if delivered
personally or by facsimile transmission or mailed (first class postage prepaid)
to the parties at the following addresses or facsimile numbers:

               If to Employee:     Robert G. Gwin

                                   5422 Merrimac Avenue

                                   Dallas, Texas 75206

                                   (214) 828-1069 telephone
                                   (214) 828-1204 fax

               If to the Company:  ProsoftTraining.com
                                   3001 Bee Caves Road, Suite 100
                                   Austin, TX  78746
                                   Facsimile No:  (512) 328-5239
                                   Attn: Jeffrey G. Korn, General Counsel

                                       8
<PAGE>

All such notices, requests and other communications will (i) if delivered
personally to the address as provided in this Section, be deemed given upon
delivery, (ii) if delivered by facsimile transmission to the facsimile number as
provided in this Section, be deemed given upon receipt, and (iii) if delivered
by mail in the manner described above to the address as provided in this
Section, be deemed given upon receipt (in each case regardless of whether such
notice, request or other communication is received by any other person to whom a
copy of such notice, request or other communication is to be delivered pursuant
to this Section). Any party from time to time may change its address, facsimile
number or other information for the purpose of notices to that party by giving
notice specifying such change to the other party hereto.

     12.  Invalid Provision.  The invalidity or unenforceability of any
          -----------------
particular provision of this Agreement in any jurisdiction shall not affect the
other provisions hereof or the validity of that particular provision in any
other jurisdiction, and the Agreement shall be construed in all respects as
though such invalid or unenforceable provisions were omitted only in the
jurisdiction in which the case is held to be invalid or unenforceable.

     13.  Interpretation.  This Agreement shall be interpreted in accordance
          --------------
with the laws of the State of Texas.

     14.  Successors.  This Agreement shall be binding upon and shall inure to
          ----------
the benefit of the parties hereto and their respective successors, assigns,
heirs, and legal representatives, including any person, firm, corporation or
other business entity which at any time, by merger, purchase or otherwise,
acquires substantially all of the assets or business of the Company.  The duties
and covenants of Employee under this Agreement, being personal, may not be
delegated.

     15.  Entire Agreement; Modification.  This Agreement replaces in its
          ------------------------------
entirety the Existing Employment Agreement, which agreement shall be of no
further force and effect.  This Agreement constitutes the entire agreement
between the parties, and may be changed only by an agreement in writing signed
by the parties.

     16.  Headings.  Sections and other headings contained in this Agreement are
          --------
for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

     17.  Counterparts.  This Agreement may be executed in two or more
          ------------
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.  Signatures may be
exchanged by telecopy, with original signatures to follow.  Each of the parties
hereto agrees that it will be bound by its own telecopied signature and that it
accepts the telecopied signatures of the other parties to this Agreement.  The
original signature pages shall be forwarded to the Company or its counsel and
the Company or its counsel will provide all of the parties hereto with a copy of
the entire Agreement.

                                       9
<PAGE>

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by
the duly authorized officer of each party hereto as of the date first above
written.

                              "COMPANY"

                              PROSOFTTRAINING.COM, a Nevada corporation

                              By:   ___________________________________
                                    Name:______________________________
                                    Title:_____________________________

                              "EMPLOYEE"

                              _________________________________________
                              Robert G. Gwin

                                       10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]