Document:

Exhibit 4.1

     

    
      

      

    

    Execution
      Copy

    

     

    EXHIBIT
      4.1

     

    

     

    CANADIAN
      SATELLITE RADIO HOLDINGS INC.

     

    AND
      THE
      GUARANTORS
      PARTY
      HERETO

     

    12.75%
      SENIOR NOTES DUE 2014

     

    
      
        
 

    

    INDENTURE

     

    Dated
      as
      of February 10, 2006

     

    
      
  

     

    

    THE
      BANK
      OF NOVA SCOTIA TRUST COMPANY OF NEW YORK

     

    Trustee

     

    

     

    
      

      

    

    

    

 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    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) 

            	
              2.05

            
	
              (b)

            	
              12.03

            
	
              (c)

            	
              12.03

            
	
              313(a) 

            	
              7.06

            
	
              (b)(2)

            	
              7.06;
                7.07

            
	
              (c)

            	
              7.06;
                12.02

            
	
              (d)

            	
              7.06

            
	
              314(a) 

            	
              4.03;12.02;
                12.05

            
	
              (c)(1)

            	
              12.04

            
	
              (c)(2)

            	
              12.04

            
	
              (c)(3)

            	
              N.A.

            
	
              (d)

            	
              N.A.

            
	
              (e)

            	
              12.05

            
	
              (f)

            	
              N.A.

            
	
              315(a) 

            	
              7.01

            
	
              (b)

            	
              7.05;
                12.02

            
	
              (c)

            	
              7.01

            
	
              (d)

            	
              7.01

            
	
              (e)

            	
              6.11

            
	
              316(a)
                (last sentence) 

            	
              2.09

            
	
              (a)(1)(A)

            	
              6.05

            
	
              (a)(1)(B)

            	
              6.04

            
	
              (a)(2)

            	
              N.A.

            
	
              (b)

            	
              6.07

            
	
              (c)

            	
              2.12

            
	
              317(a)(1) 

            	
              6.08

            
	
              (a)(2)

            	
              6.09

            
	
              (b)

            	
              2.04

            
	
              318(a) 

            	
              12.01

            
	
              (b)

            	
              N.A.

            
	
              (c)

            	
              12.01

            

    

    

    N.A.
      means not applicable.

    *
      This
      Cross Reference Table is not part of the Indenture.

     

    

    
      
        
           

        

        
        

      

      
        2

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF
      CONTENTS

     

    Page   
      

    
      	 	 	
               ARTICLE
                1

            	 
	 	 	
               DEFINITIONS
                AND INCORPORATION

            	 
	 	 	
               BY
                REFERENCE

            	 
	 	 	 	 
	 Section
              1.01	 	Definitions.	
              1 

            
	 Section
              1.02	 	Other
              Definitions. 	
              19

            
	 Section
              1.03	 	Incorporation
              by Reference of Trust Indenture Act. 	
               20

            
	 Section
              1.04	 	Rules
              of Construction. 	
               20

            
	 	 	 	 
	 	 	
               ARTICLE
                2

            	 
	 	 	
               THE
                NOTES

            	 
	 	 	 	 
	 Section
              2.01	 	Form
              and Dating.	
               21

            
	 Section
              2.02	 	Execution
              and Authentication.	
               21

            
	 Section
              2.03	 	Registrar
              and Paying Agent. 	
               22

            
	 Section
              2.04	 	Paying
              Agent to Hold Money in Trust. 	
               22

            
	 Section
              2.05	 	Holder
              Lists. 	
               22

            
	 Section
              2.06	 	Transfer
              and Exchange. 	
               22

            
	 Section
              2.07	 	Replacement
              Notes. 	
               34

            
	 Section
              2.08	 	Outstanding
              Notes. 	
               34

            
	 Section
              2.09	 	Treasury
              Notes. 	
               34

            
	 Section
              2.10	 	Temporary
              Notes. 	
               35

            
	 Section
              2.11	 	Cancellation. 	
               35

            
	 Section
              2.12	 	Defaulted
              Interest. 	
               35

            
	 	 	 	 
	 	 	
              ARTICLE
                3

            	 
	 	 	
               REDEMPTION
                AND PREPAYMENT

            	 
	 	 	 	 
	Section
              3.01 	 	Notices
              to Trustee. 	
               35

            
	Section
              3.02 	 	Selection
              of Notes to Be Redeemed or Purchased. 	
               36

            
	Section
              3.03 	 	Notice
              of Redemption. 	
               36

            
	Section
              3.04 	 	Effect
              of Notice of Redemption. 	
               37

            
	Section
              3.05 	 	Deposit
              of Redemption or Purchase Price. 	
              37

            
	Section
              3.06 	 	Notes
              Redeemed or Purchased in Part. 	
               37

            
	Section
              3.07 	 	Optional
              Redemption. 	
               37

            
	Section
              3.08 	 	Mandatory
              Redemption. 	
               38

            
	Section
              3.09 	 	Offer
              to Purchase by Application of Excess Proceeds. 	
               38

            
	Section
              3.10 	 	Redemption
              for Changes in Withholding Taxes. 	
               40

            
	 	 	 	 
	 	 	
               ARTICLE
                4

            	 
	 	 	
               COVENANTS

            	 
	 	 	 	 
	Section
              4.01  	 	Payment
              of Notes.	
               40

            
	Section
              4.02 	 	Maintenance
              of Office or Agency.	
               40

            
	Section
              4.03  	 	Reports.	
               41

            
	Section
              4.04  	 	Compliance
              Certificate.	
               42

            
	Section
              4.05  	 	Taxes. 	
               43

            
	Section
              4.06  	 	Stay,
              Extension and Usury Laws. 	
               43

            
	Section
              4.07	 	Restricted
              Payments. 	
               43

            
	Section
              4.08  	 	Dividend
              and Other Payment Restrictions Affecting Subsidiaries. 	
               46

            
	Section
              4.09  	 	Incurrence
              of Indebtedness and Issuance of Preferred Stock. 	
               47

            
	Section
              4.10  	 	Asset
              Sales. 	
               50

            
	Section
              4.11  	 	Transactions
              with Affiliates. 	
               52

            
	Section
              4.12  	 	Liens. 	
               53

            
	Section
              4.13  	 	Business
              Activities. 	
               53

            
	Section
              4.14  	 	Corporate
              Existence. 	
               53

            
	Section
              4.15  	 	Offer
              to Repurchase Upon Change of Control. 	
               54

            
	Section
              4.16	 	Limitation
              on Sale and Leaseback Transactions. 	
               55

            
	Section
              4.17  	 	Payments
              for Consent. 	
               56

            
	Section
              4.18	 	Additional
              Note Guarantees. 	
               56

            
	Section
              4.19  	 	Designation
              of Restricted and Unrestricted Subsidiaries. 	
               56

            
	Section
              4.20  	 	Payment
              of Additional Amounts 	
               57

            
	 	 	 	 
	 	 	
               ARTICLE
                5

            	 
	 	 	
               SUCCESSORS

            	 
	 	 	 	 
	Section
              5.01 	 	Merger,
              Consolidation, or Sale of Assets. 	
               58

            
	Section
              5.02 	 	Successor
              Corporation Substituted.	
               59

            
	 	 	 	 
	 	 	
               ARTICLE
                6

            	 
	 	 	
               DEFAULTS
                AND REMEDIES

            	 
	 	 	 	 
	Section
              6.01 	 	Events
              of Default.	
               60

            
	Section
              6.02	 	Acceleration. 	
               62

            
	Section
              6.03 	 	Other
              Remedies. 	
               62

            
	Section
              6.04 	 	Waiver
              of Past Defaults. 	
               63

            
	Section
              6.05 	 	Control
              by Majority. 	
               63

            
	Section
              6.06 	 	Limitation
              on Suits.	
               63

            
	Section
              6.07 	 	Rights
              of Holders of Notes to Receive Payment.	
               63

            
	Section
              6.08 	 	Collection
              Suit by Trustee. 	
               64

            
	Section
              6.09 	 	Trustee
              May File Proofs of Claim. 	
               64

            
	Section
              6.10 	 	Priorities. 	
              64

            
	Section 6.11 	
            	Undertaking for Costs.  	
               64

            
	 	 	 	
               65

            
	 	 	
               ARTICLE
                7

            	 
	 	 	
               TRUSTEE

            	 
	 	 	 	 
	Section
              7.01  	 	Duties
              of Trustee. 	
              65

            
	Section
              7.02	 	Rights
              of Trustee. 	
               66

            
	Section
              7.03  	 	Individual
              Rights of Trustee. 	
               66

            
	Section
              7.04  	 	Trustee’s
              Disclaimer. 	
               67

            
	Section
              7.05  	 	Notice
              of Defaults. 	
               67

            
	Section
              7.06  	 	Reports
              by Trustee to Holders of the Notes. 	
               67

            
	Section
              7.07  	 	Compensation
              and Indemnity. 	
               67

            
	Section
              7.08  	 	Replacement
              of Trustee. 	
               68

            
	Section
              7.09  	 	Successor
              Trustee by Merger, etc. 	
               69

            
	Section
              7.10  	
            	Eligibility; Disqualification.	
               69

            
	Section 7.11  	 	Preferential Collection of Claims Against
              Company. 	
               69

            
	 	 	 	 
	 	 	
               ARTICLE
                8

            	 
	 	 	
               LEGAL
                DEFEASANCE AND COVENANT
                DEFEASANCE

            	 
	 	 	 	 
	Section
              8.01 	 	Option
              to Effect Legal Defeasance or Covenant Defeasance.	
              69

            
	Section
              8.02	 	Legal
              Defeasance and Discharge.	
               70

            
	Section
              8.03 	
            	Covenant Defeasance. 	
               70

            
	Section 8.04 	 	Conditions to Legal or Covenant
              Defeasance.	
               71

            
	Section 8.05 	 	Deposited Money and Government Securities
              to
              be Held in Trust; Other Miscellaneous Provisions. 	
               72

            
	Section 8.06 	 	Repayment to Company. 	
               72

            
	Section 8.07 	 	Reinstatement. 	
               73

            
	 	 	 	 
	 	 	
               ARTICLE
                9

            	 
	 	 	
               AMENDMENT,
                SUPPLEMENT AND
                WAIVER

            	 
	 	 	 	
               

            
	Section
              9.01 	 	Without
              Consent of Holders of Notes. 	
               73

            
	Section
              9.02	 	With
              Consent of Holders of Notes. 	
               74

            
	Section
              9.03	 	Compliance
              with Trust Indenture Act.	
               75

            
	Section
              9.04 	 	Revocation
              and Effect of Consents.	
               75

            
	Section
              9.05 	 	Notation
              on or Exchange of Notes. 	
               75

            
	Section
              9.06 	 	Trustee
              to Sign Amendments, etc. 	
               76

            
	 	 	 	 
	 	 	
               ARTICLE
                10

            	 
	 	 	
               NOTE
                GUARANTEES

            	 
	 	 	 	 
	Section
              10.01  	 	Guarantee.	
               76

            
	Section
              10.02  	 	Limitation
              on Guarantor Liability. 	
               77

            
	Section
              10.03  	 	Execution
              and Delivery of Note Guarantee. 	
               77

            
	Section
              10.04  	 	Guarantors
              May Consolidate, etc., on Certain Terms.	
               78

            
	Section
              10.05  	 	Releases. 	
               78

            
	 	 	 	 
	 	 	
               ARTICLE
                11

            	 
	 	 	
               SATISFACTION
                AND DISCHARGE

            	 
	 	 	 	 
	Section
              11.01 	 	Satisfaction
              and Discharge. 	
               79

            
	Section
              11.02 	 	Application
              of Trust Money.	
               80

            
	 	 	 	 
	 	 	
              ARTICLE
                12 

            	 
	 	 	
               MISCELLANEOUS

            	 
	 	 	 	 
	Section
              12.01  	 	Trust
              Indenture Act Controls	
               80

            
	Section
              12.02	 	Notices.	
               80

            
	Section
              12.03  	 	Communication
              by Holders of Notes with Other Holders of Notes. 	
               82

            
	Section
              12.04  	 	Certificate
              and Opinion as to Conditions Precedent. 	
               82

            
	Section
              12.05  	 	Statements
              Required in Certificate or Opinion.	
               82

            
	Section
              12.06  	 	Rules
              by Trustee and Agents. 	
               82

            
	Section
              12.07  	 	No
              Personal Liability of Directors, Officers, Employees and
              Stockholders. 	
               82

            
	Section
              12.08  	 	Governing
              Law. 	
               83

            
	Section
              12.09  	 	No
              Adverse Interpretation of Other Agreements. 	
               83

            
	Section
              12.10	 	Successors.	
               83

            
	Section
              12.11  	 	Severability. 	
               83

            
	Section
              12.12  	 	Counterpart
              Originals.	
               83

            
	Section
              12.13  	 	Table
              of Contents, Headings, etc. 	
               83

            
	Section
              12.14	 	Consent
              to Jurisdiction 	
               83

            
	Section
              12.15  	 	Obligation
              Currency	
               84

            
	 	 	 	 
	 	 	
               EXHIBITS

            	 
	 	 	 	 
	Exhibit
              A 	 	FORM
              OF NOTE 	 
	Exhibit B 	 	FORM
              OF CERTIFICATE OF TRANSFER 	
            
	Exhibit C 	 	FORM OF CERTIFICATE OF
              EXCHANGE 	 
	Exhibit D 	 	FORM OF CERTIFICATE OF ACQUIRING
              INSTITUTIONAL ACCREDITED INVESTOR 	 
	Exhibit E 	 	FORM OF NOTATION OF GUARANTEE 	 
	Exhibit F 	 	FORM OF SUPPLEMENTAL
              INDENTURE 	 

    

     

    
      
        
          
 

        

      

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

        
        

      

    

    INDENTURE
      dated as of February 10, 2006 among Canadian Satellite Radio Holdings Inc.,
      a
      corporation organized under the laws of the Province of Ontario, Canada, the
      Guarantors (as defined) and The Bank of Nova Scotia Trust Company of New York,
      as trustee.

     

    The
      Company, the Guarantors and the Trustee agree as follows for the benefit of
      each
      other and for the equal and ratable benefit of the Holders (as defined) of
      the
      12.75% Senior Notes due 2014 (the “Notes”):

     

    ARTICLE
      1

    DEFINITIONS
      AND INCORPORATION

    BY
      REFERENCE

     

    Section
      1.01  Definitions.

     

    “144A
      Global Note”
      means a
      Global Note substantially in the form of Exhibit A hereto bearing the Global
      Note Legend and the Private Placement Legend and deposited with or on behalf
      of,
      and registered in the name of, the Depositary or its nominee that will be issued
      in a denomination equal to the outstanding principal amount of the Notes sold
      in
      reliance on Rule 144A.

     

    “Acquired
      Debt”
      means,
      with respect to any specified Person:

     

    (1)
      Indebtedness of any other Person existing at the time such other Person is
      merged with or into or became a Subsidiary of such specified Person, whether
      or
      not such Indebtedness is incurred in connection with, or in contemplation of,
      such other Person merging with or into, or becoming a Restricted Subsidiary
      of,
      such specified Person; and 

     

     
 (2)
      Indebtedness secured by a Lien encumbering any asset acquired by such specified
      Person.

     

    “Additional
      Notes”
      means
      additional Notes (other than the Initial Notes) issued under this Indenture
      in
      accordance with Sections 2.02 and 4.09 hereof, as part of the same series as
      the
      Initial Notes.

     

    “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,” as used with respect to any
      Person, means 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 will be
      deemed to be control. For purposes of this definition, the terms “controlling,”
      “controlled
      by”
and
      “under
      common control with”
have
      correlative meanings.

     

    “Agent”
      means
      any Registrar, co-registrar, Paying Agent or additional paying
      agent.

     

    “Applicable
      Procedures”
      means,
      with respect to any transfer or exchange of or for beneficial interests in
      any
      Global Note, the rules and procedures of the Depositary, Euroclear and
      Clearstream that apply to such transfer or exchange.

     

    “Asset
      Sale”
      means:

     

    (1)  the
      sale,
      lease, conveyance or other disposition of any assets or rights; provided
      that the
      sale, lease, conveyance or other disposition of all or substantially all of
      the
      assets of the Company and its Restricted Subsidiaries taken as a whole will
      be
      governed by the provisions of Section 4.15 hereof and/or Section 5.01 hereof
      and
      not by the provisions of Section 4.10 hereof; and

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (2)  the
      issuance of Equity Interests in any of the Company’s Restricted Subsidiaries or
      the sale of Equity Interests in any of its Restricted Subsidiaries.

     

    Notwithstanding
      the preceding, none of the following items will be deemed to be an Asset Sale:
      

     

    (3)  any
      single transaction or series of related transactions that involves assets having
      a Fair Market Value of less than US$1.0 million; 

     

    (4)  a
      transfer of assets between or among the Company and its Restricted Subsidiaries
      (including any Persons that become a Restricted Subsidiary in connection with
      such transaction); 

     

    (5)  an
      issuance of Equity Interests by a Restricted Subsidiary of the Company to the
      Company or to a Restricted Subsidiary of the Company; 

     

    (6)  the
      sale
      or lease of inventory, equipment, products, services or accounts receivable
      in
      the ordinary course of business and any sale or other disposition of damaged,
      worn-out or obsolete assets in the ordinary course of business;

     

    (7)  the
      sale
      or maturity or other disposition of cash or Cash Equivalents; 

     

    (8)  a
      Restricted Payment that does not violate the provisions of Section 4.07 hereof;
      

     

    (9)  a
      Permitted Investment; and

     

    (10)  any
      sale
      or disposition deemed to occur in connection with creating, granting or
      enforcing any Permitted Lien.

     

    “Attributable
      Debt”
      in
      respect of a sale and leaseback transaction means, at the time of determination,
      the present value of the obligation of the lessee for net rental payments during
      the remaining term of the lease included in such sale and leaseback transaction
      including any period for which such lease has been extended or may, at the
      option of the lessor, be extended. Such present value shall be calculated using
      a discount rate equal to the rate of interest implicit in such transaction,
      determined in accordance with GAAP; provided,
      however,
      that if
      such sale and leaseback transaction results in a Capital Lease Obligation,
      the
      amount of Indebtedness represented thereby will be determined in accordance
      with
      the definition of “Capital Lease Obligation.”

     

    “Bankruptcy
      Law”
      means
      the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement
      Act (Canada), or Title 11, U.S. Code, each as amended, or any similar bankruptcy
      or insolvency law, and other laws concerning formal or informal moratoria of
      debt or compositions with creditors, and proceedings seeking reorganization,
      arrangement, or other relief of debtors.

     

    “Beneficial
      Owner”
has
      the
      meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange
      Act, except that in calculating the beneficial ownership of any particular
      “person” (as that term is used in Section 13(d)(3) of the Exchange Act), such
“person” will be deemed to have beneficial ownership of all securities that such
“person” has the right to acquire by conversion or exercise of other securities,
      whether such right is currently exercisable or is exercisable only after the
      passage of time. The terms “Beneficially Owns” and “Beneficially Owned” have a
      corresponding meaning.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “Board
      of Directors”
      means:

     

    (1)  with
      respect to a corporation, the board of directors of the corporation or any
      committee thereof duly authorized to act on behalf of such board;

     

     (2) 
with
      respect to a partnership, the Board of Directors of the general partner of
      the
      partnership; 

     

     (3)  with
      respect to a limited liability company, the managing
      member or members or any controlling committee of managing members thereof;
      and

     

     (4)  with
      respect to any other Person, the board or committee of such Person serving
      a
      similar function.

     

    “Broker-Dealer”
      has the
      meaning set forth in the Registration Rights Agreement.

     

    “Business
      Day”
      means
      any day other than a Legal Holiday.

     

    “Capital
      Lease Obligation”
      means,
      at the time any determination is to be made, the amount of the liability in
      respect of a capital lease that would at that time be required to be capitalized
      on a balance sheet prepared in accordance with GAAP.

     

    “Capital
      Stock”
      means:

     

    (1)  in
      the
      case of a corporation, corporate stock;

     

    (2)  in
      the
      case of an association or business entity, any and all shares, interests,
      participations, rights or other equivalents (however designated) of corporate
      stock;

     

    (3)  in
      the
      case of a partnership or limited liability company, partnership interests
      (whether general or limited) or membership interests; and 

     

    (4)  any
      other
      interest or participation that confers on a Person the right to receive a share
      of the profits and losses of, or distributions of assets of, the issuing Person,
      but excluding from all of the foregoing any debt securities convertible into
      Capital Stock, whether or not such debt securities include any right of
      participation with Capital Stock.

     

    “Cash
      Equivalents”
      means,
      as at any date of determination:

     

    (1)  United
      States dollars;

     

    (2)  Canadian
      dollars;

     

    (3)     
      marketable securities (a) issued or directly and unconditionally guaranteed
      as
      to interest and principal by the United States or Canada and maturing within
      one
      year of the date of acquisition thereof or (b) issued by any agency of the
      United States or Canada the obligations of which are backed by the full faith
      and credit of the United States or Canada, in each case maturing within one
      year
      after the date of acquisition thereof; 

     

    (4)  marketable
      direct obligations issued by any state of the United States of America or
      province of Canada or any political subdivision of any such state or province
      or
      any public instrumentality thereof, in each case maturing within one year after
      the date of acquisition thereof and having a rating of at least A-2 from S&P
      or at least P-2 from Moody’s; 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (5)  commercial
      paper maturing no more than one year from the date of acquisition thereof and
      having a rating of at least A-2 from S&P, at least P-2 from Moody’s or at
      least R-2 (high) from Dominion Bond Rating Services Limited; 

     

    (6)  certificates
      of deposit, time deposits or bankers’ acceptances maturing within one year after
      the date of acquisition thereof and issued or accepted by any commercial bank
      organized under the laws of the United States of America or any state thereof
      or
      the District of Columbia that is at least “adequately capitalized” (as defined
      in the regulations of its primary Federal banking regulator) and has Tier 1
      capital (as defined in such regulations) of not less than US$100.0 million;
      

     

    (7)  financial
      instruments maturing within one year after the date of acquisition thereof
      and
      issued by any Canadian chartered bank which has a long-term debt rating of
      at
      least A+ by S&P, A2 by Moody’s or A (high) by Dominion Bond Rating Services
      Limited; 

     

    (8)  repurchase
      agreements with a term of not more than 30 days for underlying securities of
      the
      types described in clause (1) or (2) entered into with any bank meeting the
      qualifications specified in clause (4) or (5), which repurchase obligations
      are
      secured by a perfected first priority security interest in the underlying
      securities; and

     

    (9)  shares
      of
      any money market mutual fund that has at least 95% all of its assets invested
      continuously in the types of investments referred to in clauses (1) and (5)
      above.

     

    “Change
      of Control”
      means
      the occurrence of any of the following:

     

    (1)  the
      direct or indirect sale, lease, transfer, conveyance or other disposition (other
      than by way of merger, amalgamation or consolidation), in one or a series of
      related transactions, of all or substantially all of the properties or assets
      of
      the Company and its Subsidiaries taken as a whole to any “person” (as that term
      is used in Section 13(d)(3) of the Exchange Act) other than a Principal or
      a
      Related Party of a Principal; 

     

    (2)  the
      adoption of a plan relating to the liquidation or dissolution of the
      Company;

     

    (3)  the
      consummation of any transaction (including, without limitation, any merger,
      amalgamation or consolidation), the result of which is that any “person” (as
      defined in clause (1) above), other than the Principals and their Related
      Parties, becomes the Beneficial Owner, directly or indirectly, of more than
      50%
      of the Voting Stock of the Company, measured by voting power rather than number
      of shares; or

     

    (4)  the
      Company consolidates with, amalgamates with, or merges with or into, any Person,
      or any Person consolidates with, amalgamates with, or merges with or into,
      the
      Company, in any such event pursuant to a transaction in which any of the
      outstanding Voting Stock of the Company or such other Person is converted into
      or exchanged for cash, securities or other property, other than any such
      transaction where the Voting Stock of the Company outstanding immediately prior
      to such transaction is converted into or exchanged for Voting Stock (other
      than
      Disqualified Stock) of the surviving or transferee Person constituting a
      majority of the outstanding shares of such Voting Stock of such surviving or
      transferee Person (immediately after giving effect to such issuance);

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (5)  the
      first
      day on which a majority of the members of the Board of Directors of the Company
      are not Continuing Directors; or

     

    (6)  the
      direct or indirect sale, lease, transfer, conveyance or other disposition of
      effective control of the satellite broadcasting undertaking to any “person” (as
      that term is used in Section 13(d) of the Exchange Act), or a material
      change in the CRTC License, which directly results in the termination by XM
      of
      their obligations pursuant to the XM License Agreement or renders Holdings
      or
      any of its Restricted Subsidiaries incapable of conducting business as conducted
      on the date hereof.

     

    “Clearstream”
      means
      Clearstream Banking, S.A.

     

    “Company”
      means
      Canadian Satellite Radio Holdings Inc., a corporation organized under the laws
      of the Province of Ontario, Canada and any and all successors
      thereto.

     

    “Consolidated
      Cash Flow”
      means,
      with respect to any specified Person for any period, the Consolidated Net Income
      of such Person for such period plus,
      without
      duplication:

     

    (1)  an
      amount
      equal to any extraordinary loss plus any net loss realized by such Person or
      any
      of its Restricted Subsidiaries in connection with an Asset Sale, to the extent
      such losses were deducted in computing such Consolidated Net Income;
plus 

     

    (2)  provision
      for taxes based on income or profits of such Person and its Restricted
      Subsidiaries for such period, to the extent that such provision for taxes was
      deducted in computing such Consolidated Net Income; plus

     

    (3)  the
      Consolidated Interest Expense of such Person and its Restricted Subsidiaries
      for
      such period, to the extent that such Consolidated Interest Expenses were
      deducted in computing such Consolidated Net Income; plus 

     

    (4)  depreciation,
      amortization (including amortization of goodwill and other intangibles but
      excluding amortization of prepaid cash expenses that were paid in a prior
      period) and other non-cash expenses (excluding any such non-cash expense to
      the
      extent that it represents an accrual of or reserve for cash expenses in any
      future period or amortization of a prepaid cash expense that was paid in a
      prior
      period) of such Person and its Restricted Subsidiaries for such period to the
      extent that such depreciation, amortization and other non-cash expenses were
      deducted in computing such Consolidated Net Income; minus

     

    (5)  non-cash
      items increasing such Consolidated Net Income for such period, other than the
      accrual of revenue in the ordinary course of business

     

                     in
      each case, on an consolidated basis and determined in accordance with
      GAAP

     

    Notwithstanding
      the preceding, the provision for taxes based on the income or profits of, and
      the depreciation and amortization and other non-cash expenses of, a Restricted
      Subsidiary of the Company shall be added to Consolidated Net Income to compute
      Consolidated Cash Flow of the Company only to the extent that a corresponding
      amount would be permitted at the date of determination to be dividended to
      the
      Company by such Restricted Subsidiary without prior governmental approval (that
      has not been obtained), and without direct or indirect restriction pursuant
      to
      the terms of its charter and all agreements, instruments, judgments, decrees,
      orders, statutes, rules and governmental regulations applicable to that
      Restricted Subsidiary or its stockholders. 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    “Consolidated
      Indebtedness”
means,
      at any date of determination, with respect to any Person as of any date of
      determination, the sum, without duplication, of (i) the total amount of
      Indebtedness of such Person and its Restricted Subsidiaries, plus (ii) the
      total
      amount of Indebtedness of any other Person, to the extent that such Indebtedness
      has been Guaranteed by the referent Person or one or more of its Restricted
      Subsidiaries, plus (iii) the aggregate liquidation value of all Disqualified
      Stock of such Person and all preferred stock of Restricted Subsidiaries of
      such
      Person, in each case, determined on a consolidated basis in accordance with
      GAAP.

     

    “Consolidated
      Interest Expense”
means,
      with respect to any Person for any period, the sum without duplication of (i)
      the consolidated interest expense of such Person and its Restricted Subsidiaries
      for such period, whether paid or accrued (including, without limitation,
      amortization of debt issuance costs and original issue discount, non-cash
      interest payments, the interest component of any deferred payment obligations,
      the interest component of all payments associated with Capital Lease
      Obligations, imputed interest with respect to Attributable Debt, commissions,
      discounts and other fees and charges incurred in respect of letter of credit
      or
      bankers’ acceptance financings, and net payments (if any) pursuant to Hedging
      Obligations) and (ii) the consolidated interest expense of such Person and
      its
      Restricted Subsidiaries that was capitalized during such period, and (iii)
      any
      interest expense on Indebtedness of another Person that is guaranteed by such
      Person or one of its Restricted Subsidiaries or secured by a Lien on assets
      of
      such Person or one of its Restricted Subsidiaries (whether or not such Guarantee
      or Lien is called upon) and (iv) the product of (a) all dividend payments on
      any
      series of preferred stock of such Person or any of its Subsidiaries, times
      (b) a
      fraction, the numerator of which is one and the denominator of which is one
      minus the then current combined federal, provincial, state and local or other
      statutory Canadian or United States tax rate of such Person, expressed as a
      decimal, in each case, on a consolidated basis and in accordance with
      GAAP.

     

    “Consolidated
      Leverage Ratio”
means,
      as of any date of determination, the ratio of (a) the Consolidated Indebtedness
      of the Company as of such date to (b) two times the Consolidated Cash Flow
      of
      the Company for the two most recent full fiscal quarter ending immediately
      prior
      to such date for which internal financial statements are available, determined
      on a pro forma basis after giving effect to all acquisitions or dispositions
      of
      assets made by the Company and its Restricted Subsidiaries from the beginning
      of
      such two-quarter period through and including such date of determination
      (including any related financing transactions) as if such acquisitions and
      dispositions had occurred at the beginning of such two-quarter period. In
      addition, for purposes of making the computation referred to above, (i)
      acquisitions that have been made by the Company or any of its Subsidiaries,
      including through mergers, amalgamations or consolidations and including any
      related financing transactions and including increases in ownership of
      Restricted Subsidiaries, during the two-quarter reference period or subsequent
      to such reference period and on or prior to the Calculation Date shall be deemed
      to have occurred on the first day of the reference period and Consolidated
      Cash
      Flow for such reference period shall be calculated without giving effect to
      clause (3) of the proviso set forth in the definition of Consolidated Net
      Income, and (ii) the Consolidated Cash Flow attributable to discontinued
      operations, as determined in accordance with GAAP, and operations or businesses
      disposed of prior to the Calculation Date, shall be excluded. 

     

    “Consolidated
      Net Income”
means,
      with respect to any specified Person for any period, the aggregate of the Net
      Income of such Person and its Restricted Subsidiaries for such period, on a
      consolidated basis, determined in accordance with GAAP; provided
      that:

     

    (1)  the
      Net
      Income (but not loss) of any Person that is not a Restricted Subsidiary or
      that
      is accounted for by the equity method of accounting will be included only to
      the
      extent of the amount of dividends or similar distributions paid in cash to
      the
      specified Person or a Restricted Subsidiary of the Person;

     

    (2)  the
      Net
      Income of any Restricted Subsidiary will be excluded to the extent that the
      declaration or payment of dividends or similar distributions by that Restricted
      Subsidiary of that Net Income is not at the date of determination permitted
      without any prior governmental approval (that has not been obtained) or,
      directly or indirectly, by operation of the terms of its charter or any
      agreement, instrument, judgment, decree, order, statute, rule or governmental
      regulation applicable to that Restricted Subsidiary or its stockholders,
      members, managers or partners, as applicable; 

     

    (3)  the
      cumulative effect of a change in accounting principles will be excluded;
      and

     

    (4)  notwithstanding
      clause (1) above, the Net Income of any Unrestricted Subsidiary will be
      excluded, whether or not distributed to the specified Person or one of its
      Subsidiaries.

     

    “Continuing
      Directors”
      means,
      as of any date of determination, any member of the Board of Directors of the
      Company who:

     

     
       (1)  was
      a
      member of such Board of Directors on the date of this Indenture; or

     

      
      (2)  was
      nominated for election or elected to such Board of Directors with the approval
      of a majority of the Continuing Directors who were members of 

    such
      Board of Directors at the time of such nomination or election.

     

    “Corporate
      Trust Office of the Trustee”
      will be
      at the address of the Trustee specified in Section 12.02 hereof or such other
      address as to which the Trustee may give notice to the Company.

     

    “Credit
      Agreement”
      means
      that certain agreement dated as of November 17, 2005 between CSR, Inc., the
      Company and XM Satellite Radio Holdings, Inc. as amended, extended, renewed,
      restated, replaced, supplemented or otherwise modified (in whole or in part,
      and
      without limitation as to amount, terms, conditions, covenants and other
      provisions) from time to time, and any agreement (and related document or
      instrument) governing Indebtedness incurred to Refinance, in whole or in part,
      the borrowings and commitments then outstanding or permitted to be outstanding
      under such Credit Agreement or a successor Credit Agreement, whether by the
      same
      or any other lender or group of lenders.

     

    “Credit
      Facilities”
      means,
      one or more debt facilities (including, without limitation, the Credit
      Agreement) or commercial paper facilities, in each case with banks or other
      institutional lenders providing for revolving credit loans, term loans,
      receivables financing (including through the sale of receivables to such lenders
      or to special purpose entities formed to borrow from such lenders against such
      receivables) or letters of credit, in each case, as amended, restated, modified,
      renewed, refunded, replaced (whether
      upon or after termination or otherwise) or
      refinanced
      (including by means of sales of debt securities to institutional investors)
      in
      whole or in part from time to time.

     

    “CRTC
      License”
      means
      the broadcasting license to carry on a satellite subscription radio undertaking
      granted to CSR pursuant to the Broadcasting Act in Broadcasting Decision CRTC
      2005-246, as amended or renewed from time to time.

     

    “CSR
      Inc.” means
      Canadian Satellite Radio Inc., a corporation organized under the laws of the
      Province of Ontario, Canada.

     

    “Custodian”
      means
      the Trustee, as custodian with respect to the Notes in global form, or any
      successor entity thereto.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    “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
      Note”
      means a
      certificated Note registered in the name of the Holder thereof and issued in
      accordance with Section 2.06 hereof, substantially in the form of Exhibit A
      hereto except that such Note shall not bear the Global Note Legend and shall
      not
      have the “Schedule of Exchanges of Interests in the Global Note” attached
      thereto.

     

    “Depositary”
      means,
      with respect to the Notes issuable or issued in whole or in part in global
      form,
      the Person specified in Section 2.03 hereof as the Depositary with respect
      to
      the Notes, and any and all successors thereto appointed as depositary hereunder
      and having become such pursuant to the applicable provision of this
      Indenture.

     

    “Disqualified
      Stock”
      means
      any Capital Stock that, by its terms (or by the terms of any security into
      which
      it is convertible, or for which it is exchangeable, in each case, at the option
      of the holder of the Capital Stock), or upon the happening of any event, matures
      or is mandatorily redeemable, pursuant to a sinking fund obligation or
      otherwise, or redeemable at the option of the holder of the Capital Stock,
      in
      whole or in part, on or prior to the date that is 91 days after the date on
      which the Notes mature. Notwithstanding the preceding sentence, any Capital
      Stock that would constitute Disqualified Stock solely because the holders of
      the
      Capital Stock have the right to require the Company to repurchase such Capital
      Stock upon the occurrence of a change of control or an asset sale will not
      constitute Disqualified Stock if the terms of such Capital Stock provide that
      the Company may not repurchase or redeem any such Capital Stock pursuant to
      such
      provisions unless such repurchase or redemption complies with Section 4.07
      hereof. The amount of Disqualified Stock deemed to be outstanding at any time
      for purposes of this Indenture will be the maximum amount that the Company
      and
      its Restricted Subsidiaries may become obligated to pay upon the maturity of,
      or
      pursuant to any mandatory redemption provisions of, such Disqualified Stock,
      exclusive of accrued dividends.

     

    “Equity
      Interests”
      means
      Capital Stock and all warrants, options or other rights to acquire Capital
      Stock
      (but excluding any debt security that is convertible into, or exchangeable
      for,
      Capital Stock).

     

    “Euroclear”
      means
      Euroclear Bank, S.A./N.V., as operator of the Euroclear system.

     

    “Exchange
      Act”
      means
      the Securities Exchange Act of 1934, as amended.

     

    “Exchange
      Notes”
      means
      the Notes issued in the Exchange Offer pursuant to Section 2.06(f) hereof.
      

     

    “Exchange
      Offer”
      has the
      meaning set forth in the Registration Rights Agreement. 

     

    “Exchange
      Offer Registration Statement”
      has the
      meaning set forth in the Registration Rights Agreement. 

     

    “Existing
      Indebtedness”
      means
      Indebtedness of the Company and its Subsidiaries in existence on the date of
      this Indenture, until such amounts are repaid.

     

    “Fair
      Market Value” means
      the
      value that would be paid by a willing buyer to an unaffiliated willing seller
      in
      a transaction not involving distress or necessity of either party, determined
      in
      good faith by the Board of Directors of the Company (unless otherwise provided
      in this Indenture).

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    “GAAP”
      means
      generally accepted accounting principles consistently applied as in effect
      in
      Canada as of the date of this Indenture

     

    “Global
      Note Legend”
      means
      the legend set forth in Section 2.06(g)(2) hereof, which is required to be
      placed on all Global Notes issued under this Indenture.

     

    “Global
      Notes”
      means,
      individually and collectively, each of the Restricted Global Notes and the
      Unrestricted Global Notes deposited with or on behalf of and registered in
      the
      name of the Depository or its nominee, substantially in the form of Exhibit
      A
      hereto and that bears the Global Note Legend and that has the “Schedule of
      Exchanges of Interests in the Global Note” attached thereto, issued in
      accordance with Section 2.01, 2.06(b)(3), 2.06(b)(4), 2.06(d)(2) or 2.06(f)
      hereof.

     

    “Government
      Securities”
      means
      direct obligations of, or obligations guaranteed by, the United States of
      America (including any agency or instrumentality thereof) for the payment of
      which obligations or guarantees the full faith and credit of the United States
      of America is pledged and which are not callable or redeemable at the issuer’s
      option.

     

    “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 (whether arising by virtue of partnership arrangements, or by
      agreements to keep-well, to purchase assets, goods, securities or services,
      to
      take or pay or to maintain financial statement conditions or
      otherwise).

     

    “Guarantors”
      means
      each of:

     

    (1)  Canadian
      Satellite Radio Inc. and

     

    (2)  any
      other
      Subsidiary of the Company that executes a Note Guarantee in accordance with
      the
      provisions of this Indenture, 

     

    and
      their
      respective successors and assigns, in each case, until the Note Guarantee of
      such Person has been released in accordance with the provisions of this
      Indenture.

     

    “Hedging
      Obligations”
      means,
      with respect to any specified Person, the obligations of such Person
      under:

     

    (1)  interest
      rate swap agreements (whether from fixed to floating or from floating to fixed),
      interest rate cap agreements and interest rate collar agreements; 

     

    (2)  other
      agreements or arrangements designed to manage interest rates or interest rate
      risk; and

     

    (3)  other
      agreements or arrangements designed to protect such Person against fluctuations
      in currency exchange rates.

     

    “Holder”
      means a
      Person in whose name a Note is registered.

     

    “IAI
      Global Note”
      means a
      Global Note substantially in the form of Exhibit A hereto bearing the Global
      Note Legend and the Private Placement Legend and deposited with or on behalf
      of
      and registered in the name of the Depositary or its nominee that will be issued
      in a denomination equal to the outstanding principal amount of the Notes sold
      to
      Institutional Accredited Investors.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    “Immaterial
      Subsidiary”
means,
      as of any date, any Restricted Subsidiary whose total assets, as of that date,
      are less than US$250,000 and whose total revenues for the most recent 12-month
      period for which financial statements are available do not exceed US$250,000;
      provided
      that a
      Restricted Subsidiary will not be considered to be an Immaterial Subsidiary
      if
      it, directly or indirectly, guarantees or otherwise provides direct credit
      support for any Indebtedness of the Company.

     

    “Indebtedness”
      means,
      with respect to any specified Person, any indebtedness of such Person (excluding
      accrued expenses and trade payables), whether or not contingent:

     

    (1)  in
      respect of borrowed money;

     

    (2)  evidenced
      by bonds, notes, debentures or similar instruments or letters of credit (or
      reimbursement agreements in respect thereof);

     

    (3)  in
      respect of banker’s acceptances;

     

    (4)  representing
      Capital Lease Obligations or Attributable Debt in respect of sale and leaseback
      transactions;

     

    (5)  representing
      the balance deferred and unpaid of the purchase price of any property or
      services due more than six months after such property is acquired or such
      services are completed, except any such balance that constitutes an accrued
      exposure or trade payable; or 

     

    (6)  representing
      any Hedging Obligations, 

     

    if
      and to
      the extent any of the preceding items (other than letters of credit,
      Attributable Debt and Hedging Obligations) would appear as a liability upon
      a
      balance sheet of the specified Person prepared in accordance with GAAP. In
      addition, the term “Indebtedness” includes all Indebtedness of others secured by
      a Lien on any asset of the specified Person (whether or not such Indebtedness
      is
      assumed by the specified Person) and, to the extent not otherwise included,
      the
      Guarantee by the specified Person of any Indebtedness of any other Person.
      

    

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

     

    “Indirect
      Participant”
      means a
      Person who holds a beneficial interest in a Global Note through a
      Participant.

     

    “Initial
      Notes”
      means
      the first $100,000,000 aggregate principal amount of Notes issued under this
      Indenture on the date hereof. 

     

    “Institutional
      Accredited Investor”
      means an
      institution that is an “accredited investor” as defined in Rule 501(a)(1), (2),
      (3) or (7) under the Securities Act, who are not also QIBs.

     

    “Interest
      Reserve Account”
      has the
      meaning set forth in the Interest Reserve and Security Agreement.

     

    “Interest
      Reserve Agent”
      has the
      meaning set forth in the Interest Reserve and Security Agreement.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    “Interest
      Reserve and Security Agreement”
      means
      the Interest Reserve and Security Agreement, dated as of the date hereof, among
      the Company, the Guarantor, the Trustee and the Interest Reserve Agent, as
      such
      agreement may be amended, modified or supplemented from time to
      time.

     

    “Interest
      Reserve Property”
      has the
      meaning set forth in the Interest Reserve and Security Agreement.

     

    “Investments”
      means,
      with respect to any Person, all direct or indirect investments by such Person
      in
      other Persons (including Affiliates) in the forms of loans (including Guarantees
      or other obligations), advances or capital contributions (excluding commission,
      travel and similar advances to officers, directors and employees made in the
      ordinary course of business), purchases or other acquisitions for consideration
      of Indebtedness, Equity Interests or other securities, together with all items
      that are or would be classified as investments on a balance sheet prepared
      in
      accordance with GAAP. If the Company or any Restricted Subsidiary of the Company
      sells or otherwise disposes of any Equity Interests of any direct or indirect
      Restricted Subsidiary of the Company such that, after giving effect to any
      such
      sale or disposition, such Person is no longer a Restricted Subsidiary of the
      Company, the Company will be deemed to have made an Investment on the date
      of
      any such sale or disposition equal to the Fair Market Value of the Company’s
      Investments in such Restricted Subsidiary that were not sold or disposed of
      in
      an amount determined as provided in the final paragraph of Section 4.07 hereof.
      The acquisition by the Company or any Restricted Subsidiary of the Company
      of a
      Person that holds an Investment in a third Person will be deemed to be an
      Investment by the Company or such Restricted Subsidiary in such third Person
      in
      an amount equal to the Fair Market Value of the Investments held by the acquired
      Person in such third Person in an amount determined as provided in the final
      paragraph of Section 4.07 hereof. Except as otherwise provided in this
      Indenture, the amount of an Investment will be determined at the time the
      Investment is made and without giving effect to subsequent changes in
      value.

     

    “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.

     

    “Letter
      of Transmittal”
      means
      the letter of transmittal to be prepared by the Company and sent to all Holders
      of the Notes for use by such Holders in connection with the Exchange
      Offer.

     

    “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.

     

    “Liquidated
      Damages”
      means
      all liquidated damages then owing pursuant to the Registration Rights
      Agreement.

     

    “Moody’s”
      means
      Moody’s Investors Service, Inc.

     

    “Net
      Income”
      means,
      with respect to any specified Person, the net income (loss) of such Person,
      determined in accordance with GAAP and before any reduction in respect of
      preferred stock dividends, excluding, however:

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (1)  any
      gain
      or loss, together with any related provision for taxes on such gain or loss,
      realized in connection with:

     

    (a)  any
      Asset
      Sale; or

     

    (b)  the
      disposition of any securities by such Person or any of its Restricted
      Subsidiaries or the extinguishment of any Indebtedness of such Person or any
      of
      its Restricted Subsidiaries; and

     

    (2)  any
      extraordinary gain or loss, together with any related provision for taxes on
      such extraordinary gain or loss.

     

    “Net
      Proceeds”
      means
      the aggregate cash proceeds received by the Company or any of its Restricted
      Subsidiaries in respect of any Asset Sale (including, without limitation, any
      cash received upon the sale or other disposition of any non-cash consideration
      received in any Asset Sale), net of the direct costs relating to such Asset
      Sale, including, without limitation, legal, accounting and investment banking
      fees, and sales commissions, and any relocation or severance expenses incurred
      as a result of the Asset Sale, taxes paid or payable as a result of the Asset
      Sale, in each case, after taking into account any available tax credits or
      deductions and any tax sharing arrangements, and amounts required to be applied
      to the repayment of Indebtedness secured by a Lien on the asset or assets that
      were the subject of such Asset Sale or other transaction and any reserve for
      adjustment in respect of the sale price of such asset or assets established
      in
      accordance with GAAP.

     

    “Non-Recourse
      Debt”
means
      Indebtedness:

     

    (1)  as
      to
      which neither the Company nor any of its Restricted Subsidiaries (a) provides
      credit support of any kind (including any undertaking, agreement or instrument
      that would constitute Indebtedness), (b) is directly or indirectly liable as
      a
      guarantor or otherwise, or (c) constitutes the lender; 

     

    (2)  no
      default with respect to which (including any rights that the holders of the
      Indebtedness may have to take enforcement action against an Unrestricted
      Subsidiary) would permit upon notice, lapse of time or both any holder of any
      other Indebtedness of the Company or any of its Restricted Subsidiaries to
      declare a default on such other Indebtedness or cause the payment of the
      Indebtedness to be accelerated or payable prior to its Stated Maturity;
      and

     

    (3)  as
      to
      which the lenders have been notified in writing that they will not have any
      recourse to the stock or assets of the Company or any of its Restricted
      Subsidiaries.

     

    “Non-U.S.
      Person”
      means a
      Person who is not a U.S. Person.

     

    “Note
      Guarantee”
      means
      the Guarantee by each Guarantor of the Company’s obligations under this
      Indenture and the Notes, executed pursuant to the provisions of this
      Indenture.

     

    “Notes”
      has the
      meaning assigned to it in the preamble to this Indenture. The Initial Notes
      and
      the Additional Notes shall be treated as a single class for all purposes under
      this Indenture, and unless the context otherwise requires, all references to
      the
      Notes shall include the Initial Notes and any Additional Notes.

     

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

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    “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 12.05 hereof.

     

    “Operating
      Documents”
      means
      the XM License Agreement, XM Programming Agreement, XM Repeater Purchase
      Agreement, XM Technical Services Agreement, XM Trademark License Agreement,
      XM
      Operational Letter Agreement and the GMCL Distribution Agreement, as the same
      may by amended or modified from time to time, in each case on terms that are
      not
      materially adverse to the Holders of Notes.

     

    “Opinion
      of Counsel”
      means an
      opinion from legal counsel who is reasonably acceptable to the Trustee, that
      meets the requirements of Section 12.05 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).

     

    “Permitted
      Business” means
      any
      business conducted by the Company or any Restricted Subsidiary on the date
      of
      this Indenture and any businesses that, in the good faith judgment of the Board
      of Directors of the Company, are similar, reasonably related, ancillary or
      complementary thereto, or reasonable extensions or expansions thereof, including
      in connection with the Company existing and future technology, trademarks,
      patents or licenses.

     

    “Permitted
      Investments”
      means:

     

    (1)  any
      Investment in the Company or in a Restricted Subsidiary of the
      Company;

     

    (2)  any
      Investment in Cash Equivalents; 

     

    (3)  any
      Investment by the Company or any Restricted Subsidiary of the Company in a
      Person, if as a result of such Investment:

     

    (a)  such
      Person becomes a Restricted Subsidiary of the Company; or 

     

    (b)  such
      Person is merged, consolidated or amalgamated with or into, or transfers or
      conveys substantially all of its assets to, or is liquidated into, the Company
      or a Restricted Subsidiary of the Company;

     

    (4)  any
      Investment made as a result of the receipt of non-cash consideration from an
      Asset Sale that was made pursuant to and in compliance with Section
      4.10;

     

    (5)  any
      acquisition of assets or Capital Stock solely in exchange for the issuance
      of
      Equity Interests (other than Disqualified Stock) of the Company;

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (6)  any
      Investments received in compromise or resolution of (A) obligations of trade
      creditors or customers that were incurred in the ordinary course of business
      of
      the Company or any of its Restricted Subsidiaries, including pursuant to any
      plan of reorganization or similar arrangement upon the bankruptcy or insolvency
      of any trade creditor or customer; or (B) litigation, arbitration or other
      disputes with Persons who are not Affiliates;

     

    (7)  Investments
      represented by Hedging Obligations;

     

    (8)  loans
      or
      advances to officers, directors and employees of the Company or any Restricted
      Subsidiary of the Company made in the ordinary course of business in an
      aggregate principal amount not to exceed US$2.0 million at any one time
      outstanding;

     

    (9)  repurchases
      of the Notes; 

     

    (10)  Investments
      in existence on the date of this Indenture and modifications thereof, including
      investments made or to be made pursuant to the Operating Documents; and

     

    (11)  other
      Investments in any Person having an aggregate Fair Market Value (measured on
      the
      date each such Investment was made and without giving effect to subsequent
      changes in value), when taken together with all other Investments made pursuant
      to this clause (11) that are at the time outstanding not to exceed US$10.0
      million.

     

    “Permitted
      Liens”
      means:

     

    (1)  Liens
      in
      favor of the Company or the Guarantors; 

     

    (2)  Liens
      on
      property, or on shares of Stock or Indebtedness, of a Person existing at the
      time such Person is merged with or into, amalgamated with, or consolidated
      with
      the Company or any Subsidiary of the Company; provided
      that
      such Liens were in existence prior to the contemplation of such merger,
      amalgamation or consolidation and do not extend to any assets other than those
      of the Person merged into, amalgamated with, or consolidated with the Company
      or
      the Subsidiary; 

     

    (3)  Liens
      on
      property (including Capital Stock) existing at the time of acquisition of the
      property by the Company or any Subsidiary of the Company; provided
      that
      such Liens were in existence prior to, and not incurred in contemplation of,
      such acquisition; 

     

    (4)  Liens
      to
      secure the performance of bids, tenders, leases, statutory obligations, surety
      or appeal bonds, performance bonds or other obligations of a like nature
      incurred in the ordinary course of business; 

     

    (5)  Liens
      to
      secure Indebtedness (including Capital Lease Obligations) permitted by Section
      4.09(b)(7);

     

    (6)  Liens
      existing on the date of this Indenture; 

     

    (7)  Liens
      for
      taxes, assessments or governmental charges or claims that are not yet delinquent
      or that are being contested in good faith by appropriate proceedings promptly
      instituted and diligently concluded; provided
      that any
      reserve or other appropriate provision as is required in conformity with GAAP
      has been made therefor;

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (8)  Liens
      imposed by law, such as carriers’, warehousemen’s, landlord’s and mechanics’
Liens, in each case, incurred in the ordinary course of business;

     

    (9)  survey
      exceptions, easements or reservations of, or rights of others for, licenses,
      rights-of-way, sewers, electric lines, telegraph and telephone lines and other
      similar purposes, or zoning or other restrictions as to the use of real property
      that were not incurred in connection with Indebtedness and that do not in the
      aggregate materially adversely affect the value of said properties or materially
      impair their use in the operation of the business of such Person;

     

    (10)  Liens
      created for the benefit of (or to secure) the Notes or the Note
      Guarantees;

     

    (11)  Liens
      to
      secure any Permitted Refinancing Indebtedness permitted to be incurred under
      this Indenture; provided,
      however,
      that:

     

    (a)  the
      new
      Lien shall be limited to all or part of the same property and assets that
      secured or, under the written agreements pursuant to which the original Lien
      arose, could secure the original Lien (plus improvements and accessions to,
      such
      property or proceeds or distributions thereof); and

     

    (b)  the
      Indebtedness secured by the new Lien is not increased to any amount greater
      than
      the sum of (x) the outstanding principal amount, or, if greater, committed
      amount, of the Permitted Refinancing Indebtedness and (y) an amount necessary
      to
      pay any fees and expenses, including premiums, related to such renewal,
      refunding, refinancing, replacement, defeasance or discharge; 

     

    (12)  Liens
      to
      secure Indebtedness permitted by Section 4.09(b)(4) covering only the assets
      acquired with or financed by such Indebtedness

     

    (13)  Liens
      to
      secure Indebtedness (including Hedging Obligations) permitted by Section
      4.09(b)(11);

     

    (14)  Liens
      in
      connection with sale and leaseback transactions permitted by Section 4.16
      hereof.

     

    (15)  Liens
      incurred in the ordinary course of business of the Company or any Subsidiary
      of
      the Company with respect to obligations that do not exceed US$5.0 million at
      any
      one time outstanding. 

     

    “Permitted
      Refinancing Indebtedness”
means
      any Indebtedness of the Company or any of its Restricted Subsidiaries issued
      in
      exchange for, or the net proceeds of which are used to extend, renew, refund,
      refinance, replace, defease or discharge other Indebtedness of the Company
      or
      any of its Restricted Subsidiaries (other than intercompany Indebtedness);
      provided
      that:

     

    (1)  the
      principal amount (or accreted value, if applicable) of such Permitted
      Refinancing Indebtedness does not exceed the principal amount (or accreted
      value, if applicable) of the Indebtedness extended, renewed, refunded,
      refinanced, replaced, defeased or discharged (plus all accrued interest on
      the
      Indebtedness and the amount of all fees and expenses, including premiums,
      incurred in connection therewith); 

     

    (2)  such
      Permitted Refinancing Indebtedness has a final maturity date later than the
      final maturity date of, and has a Weighted Average Life to Maturity equal to
      or
      greater than the Weighted Average Life to Maturity of, the Indebtedness being
      extended, renewed, refunded, refinanced, replaced, defeased or discharged;
      

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (3)  if
      the
      Indebtedness being extended, renewed, refunded, refinanced, replaced, defeased
      or discharged is subordinated in right of payment to the Notes, such Permitted
      Refinancing Indebtedness is subordinated in right of payment to, the Notes
      on
      terms at least as favorable to the Holders of Notes as those contained in the
      documentation governing the Indebtedness being extended, renewed, refunded,
      refinanced, replaced, defeased or discharged; and 

     

    (4)  such
      Indebtedness is incurred either by the Company or by the Restricted Subsidiary
      who is the obligor on the Indebtedness being extended, renewed, refunded,
      refinanced, replaced, defeased or discharged. 

     

    “Person”
      means
      any individual, corporation, partnership, joint venture, association,
      joint-stock company, trust, unincorporated organization, limited liability
      company or government or other entity.

     

    “Principals”
      means XM
      Satellite Radio Holdings, Inc., General Motors of Canada Limited, John I. Bitove
      and CSR Investments Inc.

     

    “Private
      Placement Legend”
      means
      the legend set forth in Section 2.06(g)(1) hereof to be placed on all Notes
      issued under this Indenture except where otherwise permitted by the provisions
      of this Indenture.

     

    “QIB”
      means a
“qualified institutional buyer” as defined in Rule 144A.

     

    “Registration
      Rights Agreement”
      means
      the Registration Rights Agreement, dated as of February __, 2006, among the
      Company, the Guarantor party thereto and the other parties named on the
      signature pages thereof, as such agreement may be amended, modified or
      supplemented from time to time and, with respect to any Additional Notes, one
      or
      more registration rights agreements among the Company, the Guarantors and the
      other parties thereto, as such agreement(s) may be amended, modified or
      supplemented from time to time, relating to rights given by the Company to
      the
      purchasers of Additional Notes to register such Additional Notes under the
      Securities Act.

     

    “Regulation
      S”
      means
      Regulation S promulgated under the Securities Act.

     

    “Regulation
      S Global Note”
      means a
      Global Note substantially in the form of Exhibit A hereto bearing the Global
      Note Legend and the Private Placement Legend and deposited with or on behalf
      of
      and registered in the name of the Depositary or its nominee, issued in a
      denomination equal to the outstanding principal amount of the Notes sold in
      reliance on Rule 903 of Regulation S.

     

    “Refinance”
means,
      in respect of any Indebtedness, to refinance, extend, renew, refund, repay,
      prepay, redeem, replace, defease or retire, or to issue other Indebtedness
      in
      exchange or replacement for, such Indebtedness. “Refinanced” and “Refinancing”
shall have correlative meanings.

     

    “Related
      Party” means:

     

    (1)  any
      controlling stockholder, 80% (or more) owned Subsidiary, or immediate family
      member (in the case of an individual) of any Principal; or

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (2)  any
      trust, corporation, partnership, limited liability company or other entity,
      the
      beneficiaries, stockholders, partners, members, owners or Persons beneficially
      holding an 80% or more controlling interest of which consist of any one or
      more
      Principals and/or such other Persons referred to in the immediately preceding
      clause (1).

     

    “Responsible
      Officer,”
      when
      used 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.

     

    “Restricted
      Definitive Note”
      means a
      Definitive Note bearing the Private Placement Legend.

     

    “Restricted
      Global Note”
      means a
      Global Note bearing the Private Placement Legend.

     

    “Restricted
      Investment”
      means an
      Investment other than a Permitted Investment.

     

    “Restricted
      Subsidiary”
of
      a
      Person means any Subsidiary of the referent Person that is not an Unrestricted
      Subsidiary.

     

    “Rule
      144”
      means
      Rule 144 promulgated under the Securities Act.

     

    “Rule
      144A”
      means
      Rule 144A promulgated under the Securities Act.

     

    “Rule
      903”
      means
      Rule 903 promulgated under the Securities Act.

     

    “Rule
      904”
      means
      Rule 904 promulgated under the Securities Act.

     

    “S&P”
      means Standard & Poor’s Ratings Group.

     

    “SEC”
      means
      the Securities and Exchange Commission.

     

    “Securities
      Act”
      means
      the Securities Act of 1933, as amended.

     

    “Shelf
      Registration Statement”
      means
      the Shelf Registration Statement as defined in the Registration Rights
      Agreement. 

     

    “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 of this Indenture.

     

    “Stated
      Maturity”
means,
      with respect to any installment of interest or principal on any series of
      Indebtedness, the date on which the payment of interest or principal was
      scheduled to be paid in the documentation governing such Indebtedness as of
      the
      date of this Indenture, and will not include any contingent obligations to
      repay, redeem or repurchase any such interest or principal prior to the date
      originally scheduled for the payment thereof.

     

    “Subsidiary”
      means,
      with respect to any specified 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 and after giving effect to any voting agreement
      or
      stockholders’ agreement that effectively transfers voting power) to vote in the
      election of directors, managers or trustees of the corporation, association
      or
      other business entity is at the time owned or controlled, directly or
      indirectly, by that Person or one or more of the other Subsidiaries of that
      Person (or a combination thereof); and

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    (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 that Person or one or more Subsidiaries of that Person
      (or
      any combination thereof).

     

    “TIA”
      means
      the Trust Indenture Act of 1939, as amended (15 U.S.C.
§§ 77aaa-77bbbb).

     

    “Total
      Incremental Equity”
means
      100% of the aggregate net cash proceeds received by the Company since the date
      of this Indenture as a contribution to its common equity capital or from the
      issue or sale of Equity Interests (other than Disqualified Stock) of the Company
      or from the issue or sale of convertible or exchangeable Disqualified Stock
      or
      convertible or exchangeable debt securities or other debt obligations of the
      Company or CSR Inc. that have been converted into or exchanged for such Equity
      Interests (other than Disqualified Stock) (other than Equity Interests (other
      than Disqualified Stock) (or Disqualified Stock or debt securities) sold to
      a
      Subsidiary of the Company) or the Fair Market Value of the consideration (if
      other than cash) from the issue or sale of Equity Interests (other than
      Disqualified Stock) of the Company.

     

    “Trustee”
      means
      The Bank of Nova Scotia Trust Company of New York until a successor replaces
      it
      in accordance with the applicable provisions of this Indenture and thereafter
      means the successor serving hereunder.

     

    “Unrestricted
      Definitive Note”
      means a
      Definitive Note that does not bear and is not required to bear the Private
      Placement Legend.

     

    “Unrestricted
      Global Note”
      means a
      Global Note that does not bear and is not required to bear the Private Placement
      Legend.

     

    “Unrestricted
      Subsidiary”
means
      any Subsidiary of the Company that is designated by the Board of Directors
      of
      the Company as an Unrestricted Subsidiary pursuant to a resolution of the Board
      of Directors, but only to the extent that such Subsidiary:

     

    (1)  has
      no
      Indebtedness other than Non-Recourse Debt;

     

    (2)  except
      as
      permitted by Section 4.11 hereof, is not party to any agreement, contract,
      arrangement or understanding with the Company or any Restricted Subsidiary
      of
      the Company unless the terms of any such agreement, contract, arrangement or
      understanding are no less favorable to the Company or such Restricted Subsidiary
      than those that might be obtained at the time from Persons who are not
      Affiliates of the Company;

     

    (3)  is
      a
      Person with respect to which neither the Company nor any of its Restricted
      Subsidiaries has any direct or indirect obligation (a) to subscribe for
      additional Equity Interests or (b) to maintain or preserve such Person’s
      financial condition or to cause such Person to achieve any specified levels
      of
      operating results; and

     

    (4)  has
      not
      guaranteed or otherwise directly or indirectly provided credit support for
      any
      Indebtedness of the Company or any of its Restricted Subsidiaries.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    “U.S.
      Person”
      means a
      U.S. Person as defined in Rule 902(k) promulgated under the Securities
      Act.

     

    “Voting
      Stock”
      of any
      specified Person as of any date means the Capital Stock of such Person that
      is
      at the time entitled to vote in the election of the Board of Directors of such
      Person.

     

    “Weighted
      Average Life to Maturity”
      means,
      when applied to any Indebtedness at any date, the number of years obtained
      by
      dividing:

     

    (1)  the
      sum
      of the products obtained by multiplying (a) the amount of each then remaining
      installment, sinking fund, serial maturity or other required payments of
      principal, including payment at final maturity, in respect of the Indebtedness,
      by (b) the number of years (calculated to the nearest one-twelfth) that will
      elapse between such date and the making of such payment; by

     

    (2)  the
      then
      outstanding principal amount of such Indebtedness.

     

     

    Section
      1.02  Other
      Definitions.

     

    
      	 	
               

            
	
               

              Term

            	
               

              Defined
                in 

              Section

            
	
              “Additional
                Amounts”

            	
              4.20

            
	
              “Affiliate
                Transaction”

            	
              4.11

            
	
              “Asset
                Sale Offer”

            	
              3.09

            
	
              “Authentication
                Order”

            	
              2.02

            
	
              “Authorized
                Agent”

            	
              12.14

            
	
              “Change
                in Law”

            	
              3.10

            
	
              “Change
                of Control Offer”

            	
              4.15

            
	
              “Change
                of Control Payment”

            	
              4.15

            
	
              “Change
                of Control Payment Date”

            	
              4.15

            
	
              “Covenant
                Defeasance”

            	
              8.03

            
	
              “Documentary
                Taxes”

            	
              4.20

            
	
              “DTC”

            	
              2.03

            
	
              “Event
                of Default”

            	
              6.01

            
	
              “Excess
                Proceeds”

            	
              4.10

            
	
              “Excluded
                Taxes”

            	
              4.20

            
	
              “incur”

            	
              4.09

            
	
              “Legal
                Defeasance”

            	
              8.02

            
	
              “Offer
                Amount”

            	
              3.09

            
	
              “Offer
                Period”

            	
              3.09

            
	
              “owner”

            	
              4.20

            
	
              “Paying
                Agent”

            	
              2.03

            
	
              “Permitted
                Debt”

            	
              4.09

            
	
              “Payment
                Default” 

            	
              6.01

            
	
              “Purchase
                Date”

            	
              3.09

            
	
              “Related
                Proceedings”

            	
              12.14

            
	
              “Related
                Judgment”

            	
              12.14

            
	
              “Relevant
                Taxing Jurisdiction”

            	
              4.20

            
	
              “Registrar”

            	
              2.03

            
	
              “Restricted
                Payments”

            	
              4.07

            
	
              “Specified
                Courts”

            	
              12.14

            
	
              “Taxes”

            	
              4.20

            

    

     

    
 

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    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 Notes;

     

    “indenture
      security Holder”
      means a
      Holder of a Note;

     

    “indenture
      to be qualified”
      means
      this Indenture;

     

    “indenture
      trustee”
      or
“institutional
      trustee”
      means
      the Trustee; and

     

    “obligor”
      on the
      Notes and the Note Guarantees means the Company and the Guarantors,
      respectively, and any successor obligor upon the Notes and the Note Guarantees,
      respectively.

     

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

     

    Section
      1.04  Rules
      of Construction.

     

    Unless
      the context otherwise requires:

     

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

     

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

     

    (3)  “or”
is
      not exclusive;

     

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

     

    (5)  “will”
      shall be interpreted to express a command; 

     

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

     

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

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    ARTICLE
      2

    THE
      NOTES

     

    Section
      2.01  Form
      and Dating.

     

    (a)  General.
      The
      Notes and the Trustee’s certificate of authentication will be substantially in
      the form of Exhibit A hereto. The Notes may have notations, legends or
      endorsements required by law, stock exchange rule or usage. Each Note will
      be
      dated the date of its authentication. The Notes shall be in minimum
      denominations of US$2,000 and integral multiples of US$1,000.

     

    The
      terms
      and provisions contained in the Notes will constitute, and are hereby expressly
      made, a part of this Indenture and the Company, the Guarantors and the Trustee,
      by their execution and delivery of this Indenture, expressly agree to such
      terms
      and provisions and to be bound thereby. However, to the extent any provision
      of
      any Note conflicts with the express provisions of this Indenture, the provisions
      of this Indenture shall govern and be controlling.

     

    (b)  Global
      Notes.
      Notes
      issued in global form will be substantially in the form of Exhibit A hereto
      (including the Global Note Legend thereon and the “Schedule of Exchanges of
      Interests in the Global Note” attached thereto). Notes issued in definitive form
      will be substantially in the form of Exhibit A hereto (but without the Global
      Note Legend thereon and without the “Schedule of Exchanges of Interests in the
      Global Note” attached thereto). Each Global Note will represent such of the
      outstanding Notes as will be specified therein and each shall provide that
      it
      represents the aggregate principal amount of outstanding Notes from time to
      time
      endorsed thereon and that the aggregate principal amount of outstanding Notes
      represented thereby may from time to time be reduced or increased, as
      appropriate, to reflect exchanges and redemptions. Any endorsement of a Global
      Note to reflect the amount of any increase or decrease in the aggregate
      principal amount of outstanding Notes represented thereby will be made by the
      Trustee or the Custodian, at the direction of the Trustee, in accordance with
      instructions given by the Holder thereof as required by Section 2.06
      hereof.

     

    Section
      2.02  Execution
      and Authentication.

     

    At
      least
      one Officer must sign the Notes for the Company by manual or facsimile
      signature. 

     

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

     

    A
      Note
      will not be valid until authenticated by the manual signature of the Trustee.
      The signature will be conclusive evidence that the Note has been authenticated
      under this Indenture.

     

    The
      Trustee will, upon receipt of a written order of the Company signed by at least
      one Officer (an “Authentication
      Order”),
      authenticate Notes for original issue that may be validly issued under this
      Indenture, including any Additional Notes. The aggregate principal amount of
      Notes outstanding at any time may not exceed the aggregate principal amount
      of
      Notes authorized for issuance by the Company pursuant to one or more
      Authentication Orders, except as provided in Section 2.07 hereof. 

     

    The
      Trustee may appoint an authenticating agent acceptable to the Company to
      authenticate Notes. An authenticating agent may authenticate Notes 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 Holders or an Affiliate of the
      Company.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    Section
      2.03  Registrar
      and Paying Agent.

     

    The
      Company will maintain an office or agency where Notes may be presented for
      registration of transfer or for exchange (“Registrar”)
      and an
      office or agency where Notes may be presented for payment (“Paying
      Agent”).
      The
      Registrar will keep a register of the Notes and of their transfer and exchange.
      The Company may appoint one or more co-registrars and one or more additional
      paying agents. The term “Registrar” includes any co-registrar and the term
“Paying Agent” includes any additional paying agent. The Company may change any
      Paying Agent or Registrar without notice to any Holder. The Company will notify
      the Trustee in writing of the name and address of any Agent not a party to
      this
      Indenture. If the Company fails to appoint or maintain another entity as
      Registrar or Paying Agent, the Trustee shall act as such. The Company or any
      of
      its Subsidiaries may act as Paying Agent or Registrar.

     

    The
      Company initially appoints The Depository Trust Company (“DTC”)
      to act
      as Depositary with respect to the Global Notes.

     

    The
      Company initially appoints the Trustee to act as the Registrar and Paying Agent
      and to act as Custodian with respect to the Global Notes.

     

    Section
      2.04  Paying
      Agent to Hold Money in Trust.

     

    The
      Company will require each Paying Agent other than the Trustee to agree in
      writing that the Paying Agent will hold in trust for the benefit of Holders
      or
      the Trustee all money held by the Paying Agent for the payment of principal,
      premium or Liquidated Damages, if any, or interest on the Notes, 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) will have no further
      liability for the money. If the Company or a Subsidiary acts as Paying Agent,
      it
      will segregate and hold in a separate trust fund for the benefit of the Holders
      all money held by it as Paying Agent. Upon any bankruptcy or reorganization
      proceedings relating to the Company, the Trustee will serve as Paying Agent
      for
      the Notes.

     

    Section
      2.05  Holder
      Lists.

     

    The
      Trustee will preserve in as current a form as is reasonably practicable the
      most
      recent list available to it of the names and addresses of all Holders and shall
      otherwise comply with TIA § 312(a). If the Trustee is not the Registrar,
      the Company will furnish to the Trustee at least seven Business 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 the Holders of Notes and the Company
      shall
      otherwise comply with TIA § 312(a).

     

    Section
      2.06  Transfer
      and Exchange.

     

    (a)  Transfer
      and Exchange of Global Notes.
      A
      Global Note may not be transferred except as a whole by the Depositary to a
      nominee of the Depositary, by a nominee of the Depositary to the Depositary
      or
      to another nominee of the Depositary, or by the Depositary or any such nominee
      to a successor Depositary or a nominee of such successor Depositary. All Global
      Notes will be exchanged by the Company for Definitive Notes if:

     

    (1)  the
      Company delivers to the Trustee notice from the Depositary that it is unwilling
      or unable to continue to act as Depositary or that it is no longer a clearing
      agency registered under the Exchange Act and, in either case, a successor
      Depositary is not appointed by the Company within 120 days after the date of
      such notice from the Depositary; 

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    (2)  the
      Company in its sole discretion determines that the Global Notes (in whole but
      not in part) should be exchanged for Definitive Notes and delivers a written
      notice to such effect to the Trustee; or

     

    (3)  there
      has
      occurred and is continuing a Default or Event of Default with respect to the
      Notes.

     

    Upon
      the
      occurrence of either of the preceding events in (1) or (2) above, Definitive
      Notes shall be issued in such names as the Depositary shall instruct the
      Trustee. Global Notes also may be exchanged or replaced, in whole or in part,
      as
      provided in Sections 2.07 and 2.10 hereof. Every Note authenticated and
      delivered in exchange for, or in lieu of, a Global Note or any portion thereof,
      pursuant to this Section 2.06 or Section 2.07 or 2.10 hereof, shall be
      authenticated and delivered in the form of, and shall be, a Global Note. A
      Global Note may not be exchanged for another Note other than as provided in
      this
      Section 2.06(a), however, beneficial interests in a Global Note may be
      transferred and exchanged as provided in Section 2.06(b), (c) or (f)
      hereof.

     

    (b)  Transfer
      and Exchange of Beneficial Interests in the Global Notes.
      The
      transfer and exchange of beneficial interests in the Global Notes will be
      effected through the Depositary, in accordance with the provisions of this
      Indenture and the Applicable Procedures. Beneficial interests in the Restricted
      Global Notes will be subject to restrictions on transfer comparable to those
      set
      forth herein to the extent required by the Securities Act. Transfers of
      beneficial interests in the Global Notes also will require compliance with
      either subparagraph (1) or (2) below, as applicable, as well as one or more
      of
      the other following subparagraphs, as applicable:

     

    (1)  Transfer
      of Beneficial Interests in the Same Global Note.
      Beneficial interests in any Restricted Global Note may be transferred to Persons
      who take delivery thereof in the form of a beneficial interest in the same
      Restricted Global Note in accordance with the transfer restrictions set forth
      in
      the Private Placement Legend. Beneficial interests in any Unrestricted Global
      Note may be transferred to Persons who take delivery thereof in the form of
      a
      beneficial interest in an Unrestricted Global Note. No written orders or
      instructions shall be required to be delivered to the Registrar to effect the
      transfers described in this Section 2.06(b)(1).

     

    (2)  All
      Other Transfers and Exchanges of Beneficial Interests in Global
      Notes.
      In
      connection with all transfers and exchanges of beneficial interests that are
      not
      subject to Section 2.06(b)(1) above, the transferor of such beneficial interest
      must deliver to the Registrar either:

     

    (A)  both:
      

     

    (i)  a
      written
      order from a Participant or an Indirect Participant given to the Depositary
      in
      accordance with the Applicable Procedures directing the Depositary to credit
      or
      cause to be credited a beneficial interest in another Global Note in an amount
      equal to the beneficial interest to be transferred or exchanged;
      and

     

    (ii)  instructions
      given in accordance with the Applicable Procedures containing information
      regarding the Participant account to be credited with such increase; or

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    (B)  both:

     

    (i)  a
      written
      order from a Participant or an Indirect Participant given to the Depositary
      in
      accordance with the Applicable Procedures directing the Depositary to cause
      to
      be issued a Definitive Note in an amount equal to the beneficial interest to
      be
      transferred or exchanged; and

     

    (ii)  instructions
      given by the Depositary to the Registrar containing information regarding the
      Person in whose name such Definitive Note shall be registered to effect the
      transfer or exchange referred to in (1) above;

     

    Upon
      consummation of an Exchange Offer by the Company in accordance with Section
      2.06(f) hereof, the requirements of this Section 2.06(b)(2) shall be deemed
      to
      have been satisfied upon receipt by the Registrar of the instructions contained
      in the Letter of Transmittal delivered by the Holder of such beneficial
      interests in the Restricted Global Notes. Upon satisfaction of all of the
      requirements for transfer or exchange of beneficial interests in Global Notes
      contained in this Indenture and the Notes or otherwise applicable under the
      Securities Act, the Trustee shall adjust the principal amount of the relevant
      Global Note(s) pursuant to Section 2.06(h) hereof.

     

    (3)  Transfer
      of Beneficial Interests to Another Restricted Global Note.
      A
      beneficial interest in any Restricted Global Note may be transferred to a Person
      who takes delivery thereof in the form of a beneficial interest in another
      Restricted Global Note if the transfer complies with the requirements of Section
      2.06(b)(2) above and the Registrar receives the following:

     

    (A)  if
      the
      transferee will take delivery in the form of a beneficial interest in the 144A
      Global Note, then the transferor must deliver a certificate in the form of
      Exhibit B hereto, including the certifications in item (1) thereof;

     

    (B)  if
      the
      transferee will take delivery in the form of a beneficial interest in the
      Regulation S Global Note, then the transferor must deliver a certificate in
      the
      form of Exhibit B hereto, including the certifications in item (2) thereof;
      and

     

    (C)  if
      the
      transferee will take delivery in the form of a beneficial interest in the IAI
      Global Note, then the transferor must deliver a certificate in the form of
      Exhibit B hereto, including the certifications, certificates and Opinion of
      Counsel required by item (3) thereof, if applicable.

     

    (4)  Transfer
      and Exchange of Beneficial Interests in a Restricted Global Note for Beneficial
      Interests in an Unrestricted Global Note.
      A
      beneficial interest in any Restricted Global Note may be exchanged by any holder
      thereof for a beneficial interest in an Unrestricted Global Note or transferred
      to a Person who takes delivery thereof in the form of a beneficial interest
      in
      an Unrestricted Global Note if the exchange or transfer complies with the
      requirements of Section 2.06(b)(2) above and:

     

    (A)  such
      exchange or transfer is effected pursuant to the Exchange Offer in accordance
      with the Registration Rights Agreement and the holder of the beneficial interest
      to be transferred, in the case of an exchange, or the transferee, in the case
      of
      a transfer, certifies in the applicable Letter of Transmittal that it is not
      (i)
      a Broker-Dealer, (ii) a Person participating in the distribution of the Exchange
      Notes or (iii) a Person who is an affiliate (as defined in Rule 144) of the
      Company;

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    (B)  such
      transfer is effected pursuant to the Shelf Registration Statement in accordance
      with the Registration Rights Agreement;

     

    (C)  such
      transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
      Registration Statement in accordance with the Registration Rights Agreement;
      or

     

    (D)  the
      Registrar receives the following:

     

    (i)  if
      the
      holder of such beneficial interest in a Restricted Global Note proposes to
      exchange such beneficial interest for a beneficial interest in an Unrestricted
      Global Note, a certificate from such holder in the form of Exhibit C hereto,
      including the certifications in item (1)(a) thereof; or

     

    (ii)  if
      the
      holder of such beneficial interest in a Restricted Global Note proposes to
      transfer such beneficial interest to a Person who shall take delivery thereof
      in
      the form of a beneficial interest in an Unrestricted Global Note, a certificate
      from such holder in the form of Exhibit B hereto, including the certifications
      in item (4) thereof;

     

    and,
      in
      each such case set forth in this subparagraph (D), if the Registrar so requests
      or if the Applicable Procedures so require, an Opinion of Counsel in form
      reasonably acceptable to the Registrar to the effect that such exchange or
      transfer is in compliance with the Securities Act and that the restrictions
      on
      transfer contained herein and in the Private Placement Legend are no longer
      required in order to maintain compliance with the Securities Act.

     

    If
      any
      such transfer is effected pursuant to subparagraph (B) or (D) above at a time
      when an Unrestricted Global Note has not yet been issued, the Company shall
      issue and, upon receipt of an Authentication Order in accordance with Section
      2.02 hereof, the Trustee shall authenticate one or more Unrestricted Global
      Notes in an aggregate principal amount equal to the aggregate principal amount
      of beneficial interests transferred pursuant to subparagraph (B) or (D)
      above.

     

    Beneficial
      interests in an Unrestricted Global Note cannot be exchanged for, or transferred
      to Persons who take delivery thereof in the form of, a beneficial interest
      in a
      Restricted Global Note.

     

    (c)  Transfer
      or Exchange of Beneficial Interests for Definitive Notes.

     

    (1)  Beneficial
      Interests in Restricted Global Notes to Restricted Definitive
      Notes.
      If any
      holder of a beneficial interest in a Restricted Global Note proposes to exchange
      such beneficial interest for a Restricted Definitive Note or to transfer such
      beneficial interest to a Person who takes delivery thereof in the form of a
      Restricted Definitive Note, then, upon receipt by the Registrar of the following
      documentation:

     

    (A)  if
      the
      holder of such beneficial interest in a Restricted Global Note proposes to
      exchange such beneficial interest for a Restricted Definitive Note, a
      certificate from such holder in the form of Exhibit C hereto, including the
      certifications in item (2)(a) thereof;

     

    (B)  if
      such
      beneficial interest is being transferred to a QIB in accordance with Rule 144A,
      a certificate to the effect set forth in Exhibit B hereto, including the
      certifications in item (1) thereof;

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    (C)  if
      such
      beneficial interest is being transferred to a Non-U.S. Person in an offshore
      transaction in accordance with Rule 903 or Rule 904, a certificate to the effect
      set forth in Exhibit B hereto, including the certifications in item (2)
      thereof;

     

    (D)  if
      such
      beneficial interest is being transferred pursuant to an exemption from the
      registration requirements of the Securities Act in accordance with Rule 144,
      a
      certificate to the effect set forth in Exhibit B hereto, including the
      certifications in item (3)(a) thereof;

     

    (E)  if
      such
      beneficial interest is being transferred to an Institutional Accredited Investor
      in reliance on an exemption from the registration requirements of the Securities
      Act other than those listed in subparagraphs (B) through (D) above, a
      certificate to the effect set forth in Exhibit B hereto, including the
      certifications, certificates and Opinion of Counsel required by item (3)
      thereof, if applicable;

     

    (F)  if
      such
      beneficial interest is being transferred to the Company or any of its
      Subsidiaries, a certificate to the effect set forth in Exhibit B hereto,
      including the certifications in item (3)(b) thereof; or

     

    (G)  if
      such
      beneficial interest is being transferred pursuant to an effective registration
      statement under the Securities Act, a certificate to the effect set forth in
      Exhibit B hereto, including the certifications in item (3)(c)
      thereof,

     

    the
      Trustee shall cause the aggregate principal amount of the applicable Global
      Note
      to be reduced accordingly pursuant to Section 2.06(h) hereof, and the Company
      shall execute and the Trustee shall authenticate and deliver to the Person
      designated in the instructions a Definitive Note in the appropriate principal
      amount. Any Definitive Note issued in exchange for a beneficial interest in
      a
      Restricted Global Note pursuant to this Section 2.06(c) shall be registered
      in
      such name or names and in such authorized denomination or denominations as
      the
      holder of such beneficial interest shall instruct the Registrar through
      instructions from the Depositary and the Participant or Indirect Participant.
      The Trustee shall deliver such Definitive Notes to the Persons in whose names
      such Notes are so registered. Any Definitive Note issued in exchange for a
      beneficial interest in a Restricted Global Note pursuant to this Section
      2.06(c)(1) shall bear the Private Placement Legend and shall be subject to
      all
      restrictions on transfer contained therein.

     

    (2)  Beneficial
      Interests in Restricted Global Notes to Unrestricted Definitive
      Notes.
      A holder
      of a beneficial interest in a Restricted Global Note may exchange such
      beneficial interest for an Unrestricted Definitive Note or may transfer such
      beneficial interest to a Person who takes delivery thereof in the form of an
      Unrestricted Definitive Note only if:

     

    (A)  such
      exchange or transfer is effected pursuant to the Exchange Offer in accordance
      with the Registration Rights Agreement and the holder of such beneficial
      interest, in the case of an exchange, or the transferee, in the case of a
      transfer, certifies in the applicable Letter of Transmittal that it is not
      (i) a
      Broker-Dealer, (ii) a Person participating in the distribution of the Exchange
      Notes or (iii) a Person who is an affiliate (as defined in Rule 144) of the
      Company;

     

    (B)  such
      transfer is effected pursuant to the Shelf Registration Statement in accordance
      with the Registration Rights Agreement;

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    (C)  such
      transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
      Registration Statement in accordance with the Registration Rights Agreement;
      or

     

    (D)  the
      Registrar receives the following:

     

    (i)  if
      the
      holder of such beneficial interest in a Restricted Global Note proposes to
      exchange such beneficial interest for an Unrestricted Definitive Note, a
      certificate from such holder in the form of Exhibit C hereto, including the
      certifications in item (1)(b) thereof; or

     

    (ii)  if
      the
      holder of such beneficial interest in a Restricted Global Note proposes to
      transfer such beneficial interest to a Person who shall take delivery thereof
      in
      the form of an Unrestricted Definitive Note, a certificate from such holder
      in
      the form of Exhibit B hereto, including the certifications in item (4)
      thereof;

     

    and,
      in
      each such case set forth in this subparagraph (D), if the Registrar so requests
      or if the Applicable Procedures so require, an Opinion of Counsel in form
      reasonably acceptable to the Registrar to the effect that such exchange or
      transfer is in compliance with the Securities Act and that the restrictions
      on
      transfer contained herein and in the Private Placement Legend are no longer
      required in order to maintain compliance with the Securities Act.

     

    (3)  Beneficial
      Interests in Unrestricted Global Notes to Unrestricted Definitive
      Notes.
      If any
      holder of a beneficial interest in an Unrestricted Global Note proposes to
      exchange such beneficial interest for a Definitive Note or to transfer such
      beneficial interest to a Person who takes delivery thereof in the form of a
      Definitive Note, then, upon satisfaction of the conditions set forth in Section
      2.06(b)(2) hereof, the Trustee will cause the aggregate principal amount of
      the
      applicable Global Note to be reduced accordingly pursuant to Section 2.06(h)
      hereof, and the Company will execute and the Trustee will authenticate and
      deliver to the Person designated in the instructions a Definitive Note in the
      appropriate principal amount. Any Definitive Note issued in exchange for a
      beneficial interest pursuant to this Section 2.06(c)(3) will be registered
      in
      such name or names and in such authorized denomination or denominations as
      the
      holder of such beneficial interest requests through instructions to the
      Registrar from or through the Depositary and the Participant or Indirect
      Participant. The Trustee will deliver such Definitive Notes to the Persons
      in
      whose names such Notes are so registered. Any Definitive Note issued in exchange
      for a beneficial interest pursuant to this Section 2.06(c)(3) will not bear
      the
      Private Placement Legend.

     

    (d)  Transfer
      and Exchange of Definitive Notes for Beneficial Interests.

     

    (1)  Restricted
      Definitive Notes to Beneficial Interests in Restricted Global
      Notes.
      If any
      Holder of a Restricted Definitive Note proposes to exchange such Note for a
      beneficial interest in a Restricted Global Note or to transfer such Restricted
      Definitive Notes to a Person who takes delivery thereof in the form of a
      beneficial interest in a Restricted Global Note, then, upon receipt by the
      Registrar of the following documentation:

     

    (A)  if
      the
      Holder of such Restricted Definitive Note proposes to exchange such Note for
      a
      beneficial interest in a Restricted Global Note, a certificate from such Holder
      in the form of Exhibit C hereto, including the certifications in item (2)(b)
      thereof;

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    (B)  if
      such
      Restricted Definitive Note is being transferred to a QIB in accordance with
      Rule
      144A, a certificate to the effect set forth in Exhibit B hereto, including
      the
      certifications in item (1) thereof;

     

    (C)  if
      such
      Restricted Definitive Note is being transferred to a Non-U.S. Person in an
      offshore transaction in accordance with Rule 903 or Rule 904, a certificate
      to
      the effect set forth in Exhibit B hereto, including the certifications in item
      (2) thereof;

     

    (D)  if
      such
      Restricted Definitive Note is being transferred pursuant to an exemption from
      the registration requirements of the Securities Act in accordance with Rule
      144,
      a certificate to the effect set forth in Exhibit B hereto, including the
      certifications in item (3)(a) thereof;

     

    (E)  if
      such
      Restricted Definitive Note is being transferred to an Institutional Accredited
      Investor in reliance on an exemption from the registration requirements of
      the
      Securities Act other than those listed in subparagraphs (B) through (D) above,
      a
      certificate to the effect set forth in Exhibit B hereto, including the
      certifications, certificates and Opinion of Counsel required by item (3)
      thereof, if applicable;

     

    (F)  if
      such
      Restricted Definitive Note is being transferred to the Company or any of its
      Subsidiaries, a certificate to the effect set forth in Exhibit B hereto,
      including the certifications in item (3)(b) thereof; or

     

    (G)  if
      such
      Restricted Definitive Note is being transferred pursuant to an effective
      registration statement under the Securities Act, a certificate to the effect
      set
      forth in Exhibit B hereto, including the certifications in item (3)(c)
      thereof,

     

    the
      Trustee will cancel the Restricted Definitive Note, increase or cause to be
      increased the aggregate principal amount of, in the case of clause (A) above,
      the appropriate Restricted Global Note, in the case of clause (B) above, the
      144A Global Note, in the case of clause (C) above, the Regulation S Global
      Note,
      and in all other cases, the IAI Global Note.

     

    (2)  Restricted
      Definitive Notes to Beneficial Interests in Unrestricted Global
      Notes.
      A Holder
      of a Restricted Definitive Note may exchange such Note for a beneficial interest
      in an Unrestricted Global Note or transfer such Restricted Definitive Note
      to a
      Person who takes delivery thereof in the form of a beneficial interest in an
      Unrestricted Global Note only if:

     

    (A)  such
      exchange or transfer is effected pursuant to the Exchange Offer in accordance
      with the Registration Rights Agreement and the Holder, in the case of an
      exchange, or the transferee, in the case of a transfer, certifies in the
      applicable Letter of Transmittal that it is not (i) a Broker-Dealer, (ii) a
      Person participating in the distribution of the Exchange Notes or (iii) a Person
      who is an affiliate (as defined in Rule 144) of the Company;

     

    (B)  such
      transfer is effected pursuant to the Shelf Registration Statement in accordance
      with the Registration Rights Agreement;

     

    (C)  such
      transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
      Registration Statement in accordance with the Registration Rights Agreement;
      or

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    (D)  the
      Registrar receives the following:

     

    (i)  if
      the
      Holder of such Definitive Notes proposes to exchange such Notes for a beneficial
      interest in the Unrestricted Global Note, a certificate from such Holder in
      the
      form of Exhibit C hereto, including the certifications in item (1)(c) thereof;
      or

     

    (ii)  if
      the
      Holder of such Definitive Notes proposes to transfer such Notes to a Person
      who
      shall take delivery thereof in the form of a beneficial interest in the
      Unrestricted Global Note, a certificate from such Holder in the form of Exhibit
      B hereto, including the certifications in item (4) thereof;

     

    and,
      in
      each such case set forth in this subparagraph (D), if the Registrar so requests
      or if the Applicable Procedures so require, an Opinion of Counsel in form
      reasonably acceptable to the Registrar to the effect that such exchange or
      transfer is in compliance with the Securities Act and that the restrictions
      on
      transfer contained herein and in the Private Placement Legend are no longer
      required in order to maintain compliance with the Securities Act.

     

    Upon
      satisfaction of the conditions of any of the subparagraphs in this Section
      2.06(d)(2), the Trustee will cancel the Definitive Notes and increase or cause
      to be increased the aggregate principal amount of the Unrestricted Global
      Note.

     

    (3)  Unrestricted
      Definitive Notes to Beneficial Interests in Unrestricted Global
      Notes.
      A Holder
      of an Unrestricted Definitive Note may exchange such Note for a beneficial
      interest in an Unrestricted Global Note or transfer such Definitive Notes to
      a
      Person who takes delivery thereof in the form of a beneficial interest in an
      Unrestricted Global Note at any time. Upon receipt of a request for such an
      exchange or transfer, the Trustee will cancel the applicable Unrestricted
      Definitive Note and increase or cause to be increased the aggregate principal
      amount of one of the Unrestricted Global Notes.

     

    If
      any
      such exchange or transfer from a Definitive Note to a beneficial interest is
      effected pursuant to subparagraphs (2)(B), (2)(D) or (3) above at a time when
      an
      Unrestricted Global Note has not yet been issued, the Company will issue and,
      upon receipt of an Authentication Order in accordance with Section 2.02 hereof,
      the Trustee will authenticate one or more Unrestricted Global Notes in an
      aggregate principal amount equal to the principal amount of Definitive Notes
      so
      transferred.

     

    (e)  Transfer
      and Exchange of Definitive Notes for Definitive Notes.
      Upon
      request by a Holder of Definitive Notes and such Holder’s compliance with the
      provisions of this Section 2.06(e), the Registrar will register the transfer
      or
      exchange of Definitive Notes. Prior to such registration of transfer or
      exchange, the requesting Holder must present or surrender to the Registrar
      the
      Definitive Notes duly endorsed or accompanied by a written instruction of
      transfer in form satisfactory to the Registrar duly executed by such Holder
      or
      by its attorney, duly authorized in writing. In addition, the requesting Holder
      must provide any additional certifications, documents and information, as
      applicable, required pursuant to the following provisions of this Section
      2.06(e).

     

    (1)  Restricted
      Definitive Notes to Restricted Definitive Notes.
      Any
      Restricted Definitive Note may be transferred to and registered in the name
      of
      Persons who take delivery thereof in the form of a Restricted Definitive Note
      if
      the Registrar receives the following:

     

    
      
        
        

      

      
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    (A)  if
      the
      transfer will be made pursuant to Rule 144A, then the transferor must deliver
      a
      certificate in the form of Exhibit B hereto, including the certifications in
      item (1) thereof;

     

    (B)  if
      the
      transfer will be made pursuant to Rule 903 or Rule 904, then the transferor
      must
      deliver a certificate in the form of Exhibit B hereto, including the
      certifications in item (2) thereof; and

     

    (C)  if
      the
      transfer will be made pursuant to any other exemption from the registration
      requirements of the Securities Act, then the transferor must deliver a
      certificate in the form of Exhibit B hereto, including the certifications,
      certificates and Opinion of Counsel required by item (3) thereof, if
      applicable.

     

    (2)  Restricted
      Definitive Notes to Unrestricted Definitive Notes.
      Any
      Restricted Definitive Note may be exchanged by the Holder thereof for an
      Unrestricted Definitive Note or transferred to a Person or Persons who take
      delivery thereof in the form of an Unrestricted Definitive Note if:

     

    (A)  such
      exchange or transfer is effected pursuant to the Exchange Offer in accordance
      with the Registration Rights Agreement and the Holder, in the case of an
      exchange, or the transferee, in the case of a transfer, certifies in the
      applicable Letter of Transmittal that it is not (i) a Broker-Dealer, (ii) a
      Person participating in the distribution of the Exchange Notes or (iii) a Person
      who is an affiliate (as defined in Rule 144) of the Company;

     

    (B)  any
      such
      transfer is effected pursuant to the Shelf Registration Statement in accordance
      with the Registration Rights Agreement;

     

    (C)  any
      such
      transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
      Registration Statement in accordance with the Registration Rights Agreement;
      or

     

    (D)  the
      Registrar receives the following:

     

    (i)  if
      the
      Holder of such Restricted Definitive Notes proposes to exchange such Notes
      for
      an Unrestricted Definitive Note, a certificate from such Holder in the form
      of
      Exhibit C hereto, including the certifications in item (1)(d) thereof;
      or

     

    (ii)  if
      the
      Holder of such Restricted Definitive Notes proposes to transfer such Notes
      to a
      Person who shall take delivery thereof in the form of an Unrestricted Definitive
      Note, a certificate from such Holder in the form of Exhibit B hereto, including
      the certifications in item (4) thereof;

     

    and,
      in
      each such case set forth in this subparagraph (D), if the Registrar so requests,
      an Opinion of Counsel in form reasonably acceptable to the Registrar to the
      effect that such exchange or transfer is in compliance with the Securities
      Act
      and that the restrictions on transfer contained herein and in the Private
      Placement Legend are no longer required in order to maintain compliance with
      the
      Securities Act.

     

    (3)  Unrestricted
      Definitive Notes to Unrestricted Definitive Notes.
      A Holder
      of Unrestricted Definitive Notes may transfer such Notes to a Person who takes
      delivery thereof in the form of an Unrestricted Definitive Note. Upon receipt
      of
      a request to register such a transfer, the Registrar shall register the
      Unrestricted Definitive Notes pursuant to the instructions from the Holder
      thereof.

     

    
      
        
        

      

      
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    (f)  Exchange
      Offer.
      Upon the
      occurrence of the Exchange Offer in accordance with the Registration Rights
      Agreement, the Company will issue and, upon receipt of an Authentication Order
      in accordance with Section 2.02 hereof, the Trustee will
      authenticate:

     

    (1)  one
      or
      more Unrestricted Global Notes in an aggregate principal amount equal to the
      principal amount of the beneficial interests in the Restricted Global Notes
      accepted for exchange in the Exchange Offer by Persons that certify in the
      applicable Letters of Transmittal that (A) they are not Broker-Dealers, (B)
      they
      are not participating in a distribution of the Exchange Notes and (C) they
      are
      not affiliates (as defined in Rule 144) of the Company; and 

     

    (2)  Unrestricted
      Definitive Notes in an aggregate principal amount equal to the principal amount
      of the Restricted Definitive Notes accepted for exchange in the Exchange Offer
      by Persons that certify in the applicable Letters of Transmittal that (A) they
      are not Broker-Dealers, (B) they are not participating in a distribution of
      the
      Exchange Notes and (C) they are not affiliates (as defined in Rule 144) of
      the
      Company. 

     

    Concurrently
      with the issuance of such Notes, the Trustee will cause the aggregate principal
      amount of the applicable Restricted Global Notes to be reduced accordingly,
      and
      the Company will execute and the Trustee will authenticate and deliver to the
      Persons designated by the Holders of Definitive Notes so accepted Unrestricted
      Definitive Notes in the appropriate principal amount. Unrestricted Global Notes
      and Unrestricted Definitive Notes evidence the same continuing indebtedness
      as
      evidenced by the Restricted Global Notes and the Restricted Definitive Notes,
      and the consummation of the Exchange Offer is not a discharge, rescission,
      extinguishment, repayment, novation or substitution of such
      indebtedness.

     

    (g)  Legends.
      The
      following legends will appear on the face of all Global Notes and Definitive
      Notes issued under this Indenture unless specifically stated otherwise in the
      applicable provisions of this Indenture.

     

    (1)  Private
      Placement Legend.

     

    (A)  Except
      as
      permitted by subparagraph (B) below, each Global Note and each Definitive Note
      (and all Notes issued in exchange therefor or substitution thereof) shall bear
      the legend in substantially the following form:

     

    “THE
      SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A
      TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY
      EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
      ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
      PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER
      MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
      SECURITIES ACT. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE
      BENEFIT OF THE ISSUER THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE
      TRANSFERRED ONLY (1) (a) IN THE UNITED STATES TO A PERSON WHO THE SELLER
      REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE
      144A
      UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
      144A, (b) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE
      WITH RULE 904 UNDER THE SECURITIES ACT, (c) IN A TRANSACTION MEETING THE
      REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (d) TO AN INSTITUTIONAL
      “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE
      SECURITIES ACT (AN “INSTITUTIONAL ACCREDITED INVESTOR”) THAT, PRIOR TO SUCH
      TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
      REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH CAN BE OBTAINED FROM THE
      TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT
      OF
      NOTES LESS THAN US$250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY
      THAT
      SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT OR (e) IN ACCORDANCE
      WITH
      ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
      (AND
      BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO REQUESTS), (2) TO THE COMPANY
      OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN
      ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH
      SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY
      EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE.”

    

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    (B)  Notwithstanding
      the foregoing, any Global Note or Definitive Note issued pursuant to
      subparagraphs (b)(4), (c)(2), (c)(3), (d)(2), (d)(3), (e)(2), (e)(3) or (f)
      of
      this Section 2.06 (and all Notes issued in exchange therefor or substitution
      thereof) will not bear the Private Placement Legend.

     

    (2)  Global
      Note Legend.
      Each
      Global Note will bear a legend in substantially the following form:

     

    “THIS
      GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
      THIS NOTE) 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 (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT
      TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN
      WHOLE
      BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL
      NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11
      OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
      DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

     

    UNLESS
      AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM,
      THIS
      NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE
      OF
      THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
      NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
      SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
      CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST
      COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS
      AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
      ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE
      REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
      CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
      OR
      OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
      HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    (h)  Cancellation
      and/or Adjustment of Global Notes.
      At such
      time as all beneficial interests in a particular Global Note have been exchanged
      for Definitive Notes or a particular Global Note has been redeemed, repurchased
      or canceled in whole and not in part, each such Global Note will be returned
      to
      or retained and canceled by the Trustee in accordance with Section 2.11 hereof.
      At any time prior to such cancellation, if any beneficial interest in a Global
      Note is exchanged for or transferred to a Person who will take delivery thereof
      in the form of a beneficial interest in another Global Note or for Definitive
      Notes, the principal amount of Notes represented by such Global Note will be
      reduced accordingly and an endorsement will be made on such Global Note by
      the
      Trustee or by the Depositary at the direction of the Trustee to reflect such
      reduction; and if the beneficial interest is being exchanged for or transferred
      to a Person who will take delivery thereof in the form of a beneficial interest
      in another Global Note, such other Global Note will be increased accordingly
      and
      an endorsement will be made on such Global Note by the Trustee or by the
      Depositary at the direction of the Trustee to reflect such
      increase.

     

    (i)  General
      Provisions Relating to Transfers and Exchanges.

     

    (1)  To
      permit
      registrations of transfers and exchanges, the Company will execute and the
      Trustee will authenticate Global Notes and Definitive Notes upon receipt of
      an
      Authentication Order in accordance with Section 2.02 hereof or at the
      Registrar’s request.

     

    (2)  No
      service charge will be made to a Holder of a beneficial interest in a Global
      Note or to a Holder of a Definitive Note for any registration of transfer or
      exchange, 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 taxes or similar governmental charge payable
      upon
      exchange or transfer pursuant to Sections 2.10, 3.06, 3.09, 4.10, 4.15 and
      9.05
      hereof). 

     

    (3)  The
      Registrar will not be required to register the transfer of or exchange of any
      Note selected for redemption in whole or in part, except the unredeemed portion
      of any Note being redeemed in part.

     

    (4)  All
      Global Notes and Definitive Notes issued upon any registration of transfer
      or
      exchange of Global Notes or Definitive Notes will be the valid obligations
      of
      the Company, evidencing the same debt, and entitled to the same benefits under
      this Indenture, as the Global Notes or Definitive Notes surrendered upon such
      registration of transfer or exchange.

     

    (5)  Neither
      the Registrar nor the Company will be required:

     

    (A)  to
      issue,
      to register the transfer of or to exchange any Notes during a period beginning
      at the opening of business 15 days before the day of any selection of Notes
      for
      redemption under Section 3.02 hereof and ending at the close of business on
      the
      day of selection;

     

    (B)  to
      register the transfer of or to exchange any Note selected for redemption in
      whole or in part, except the unredeemed portion of any Note being redeemed
      in
      part; or 

     

    (C)  to
      register the transfer of or to exchange a Note between a record date and the
      next succeeding interest payment date.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    (6)  Prior
      to
      due presentment for the registration of a transfer of any Note, the Trustee,
      any
      Agent and the Company may deem and treat the Person in whose name any Note
      is
      registered as the absolute owner of such Note for the purpose of receiving
      payment of principal of and interest on such Notes and for all other purposes,
      and none of the Trustee, any Agent or the Company shall be affected by notice
      to
      the contrary.

     

    (7)  The
      Trustee will authenticate Global Notes and Definitive Notes in accordance with
      the provisions of Section 2.02 hereof.

     

    (8)  All
      certifications, certificates and Opinions of Counsel required to be submitted
      to
      the Registrar pursuant to this Section 2.06 to effect a registration of transfer
      or exchange may be submitted by facsimile.

     

    Section
      2.07  Replacement
      Notes.

     

    If
      any
      mutilated Note is surrendered to the Trustee or the Company and the Trustee
      receives evidence to its satisfaction of the destruction, loss or theft of
      any
      Note, the Company will issue and the Trustee, upon receipt of an Authentication
      Order, will authenticate a replacement Note if the Trustee’s requirements are
      met. If required by the Trustee or the Company, an indemnity bond must be
      supplied by the Holder that is sufficient in the judgment of the Trustee and
      the
      Company to protect the Company, the Trustee, any Agent and any authenticating
      agent from any loss that any of them may suffer if a Note is replaced. The
      Company may charge for its expenses in replacing a Note.

     

    Every
      replacement Note is an additional obligation of the Company and will be entitled
      to all of the benefits of this Indenture equally and proportionately with all
      other Notes duly issued hereunder.

     

    Section
      2.08  Outstanding
      Notes.

     

    The
      Notes
      outstanding at any time are all the Notes authenticated by the Trustee except
      for those canceled by it, those delivered to it for cancellation, those
      reductions in the interest in a Global Note effected by the Trustee in
      accordance with the provisions hereof, and those described in this Section
      2.08
      as not outstanding. Except as set forth in Section 2.09 hereof, a Note does
      not
      cease to be outstanding because the Company or an Affiliate of the Company
      holds
      the Note; however, Notes held by the Company or a Subsidiary of the Company
      shall not be deemed to be outstanding for purposes of Section 3.07(a)
      hereof.

     

    If
      a Note
      is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding unless
      the Trustee receives proof satisfactory to it that the replaced Note is held
      by
      a protected purchaser.

     

    If
      the
      principal amount of any Note is considered paid under Section 4.01 hereof,
      it
      ceases to be outstanding and interest on it ceases to accrue.

     

    If
      the
      Paying Agent (other than the Company, a Subsidiary or an Affiliate of any
      thereof) holds, on a redemption date or maturity date, money sufficient to
      pay
      Notes payable on that date, then on and after that date such Notes will be
      deemed to be no longer outstanding and will cease to accrue
      interest.

     

    Section
      2.09  Treasury
      Notes.

     

    In
      determining whether the Holders of the required principal amount of Notes have
      concurred in any direction, waiver or consent, Notes owned by the Company or
      any
      Guarantor, or by any Person directly or indirectly controlling or controlled
      by
      or under direct or indirect common control with the Company or any Guarantor
      will be disregarded and considered as though not outstanding, except that for
      the purposes of determining whether the Trustee will be protected in relying
      on
      any such direction, waiver or consent, only Notes that the Trustee actually
      knows are so owned will be so disregarded.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    Section
      2.10  Temporary
      Notes.

     

    Until
      certificates representing Notes are ready for delivery, the Company may prepare
      and the Trustee, upon receipt of an Authentication Order, will authenticate
      temporary Notes. Temporary Notes will be substantially in the form of
      certificated Notes but may have variations that the Company considers
      appropriate for temporary Notes and as may be reasonably acceptable to the
      Trustee. Without unreasonable delay, the Company will prepare and the Trustee
      will authenticate definitive Notes in exchange for temporary Notes.

     

    Holders
      of temporary Notes will be entitled to all of the benefits of this
      Indenture.

     

    Section
      2.11  Cancellation.

     

    The
      Company at any time may deliver Notes to the Trustee for cancellation. The
      Registrar and Paying Agent will forward to the Trustee any Notes surrendered
      to
      them for registration of transfer, exchange or payment. The Trustee and no
      one
      else will cancel all Notes surrendered for registration of transfer, exchange,
      payment, replacement or cancellation and will destroy canceled Notes (subject
      to
      the record retention requirement of the Exchange Act). Certification of the
      destruction of all canceled Notes will be delivered to the Company. The Company
      may not issue new Notes to replace Notes that it has paid or that have been
      delivered to the Trustee for cancellation.

     

    Section
      2.12  Defaulted
      Interest.

     

    If
      the
      Company defaults in a payment of interest on the Notes, it will pay the
      defaulted interest in any lawful manner plus, to the extent lawful, interest
      payable on the defaulted interest, to the Persons who are Holders on a
      subsequent special record date, in each case at the rate provided in the Notes
      and in Section 4.01 hereof. The Company will notify the Trustee in writing
      of
      the amount of defaulted interest proposed to be paid on each Note and the date
      of the proposed payment. The Company will fix or cause to be fixed each such
      special record date and payment date; provided
      that no
      such special record date may be less than 10 days prior to the related payment
      date for such defaulted interest. At least 15 days before the special record
      date, the Company (or, upon the written request of the Company, the Trustee
      in
      the name and at the expense of the Company) will mail or cause to be mailed
      to
      Holders a notice that states the special record date, the related payment date
      and the amount of such interest to be paid.

     

    ARTICLE
      3 

    REDEMPTION
      AND PREPAYMENT

     

    Section
      3.01  Notices
      to Trustee.

     

    If
      the
      Company elects to redeem Notes pursuant to the optional redemption provisions
      of
      Section 3.07 hereof, it must furnish to the Trustee, at least 10 days but not
      more than 60 days before a redemption date, an Officers’ Certificate setting
      forth:

     

    (1)  the
      clause of this Indenture pursuant to which the redemption shall
      occur;

     

    (2)  the
      redemption date;

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    (3)  the
      principal amount of Notes to be redeemed; and 

     

    (4)  the
      redemption price.

     

    Section
      3.02  Selection
      of Notes to Be Redeemed or Purchased.

     

    If
      less
      than all of the Notes are to be redeemed or purchased in an offer to purchase
      at
      any time, the Trustee will select Notes for redemption or purchase on a
pro
      rata
      basis
      unless otherwise required by law or applicable stock exchange
      requirements.

     

    In
      the
      event of partial redemption or purchase by lot, the particular Notes to be
      redeemed or purchased will be selected, unless otherwise provided herein, not
      less than 30 nor more than 60 days prior to the redemption or purchase date
      by
      the Trustee from the outstanding Notes not previously called for redemption
      or
      purchase.

     

    The
      Trustee will promptly notify the Company in writing of the Notes selected for
      redemption or purchase and, in the case of any Note selected for partial
      redemption or purchase, the principal amount thereof to be redeemed or
      purchased. Notes and portions of Notes selected will be in amounts of $1,000
      or
      whole multiples of $1,000; except that if all of the Notes of a Holder are
      to be
      redeemed or purchased, the entire outstanding amount of Notes held by such
      Holder, even if not a multiple of $1,000, shall be redeemed or purchased. Except
      as provided in the preceding sentence, provisions of this Indenture that apply
      to Notes called for redemption or purchase also apply to portions of Notes
      called for redemption or purchase.

     

    Section
      3.03  Notice
      of Redemption.

     

    Subject
      to the provisions of Section 3.07 and 3.09 hereof, at least 10 days but not
      more
      than 60 days before a redemption date, the Company will mail or cause to be
      mailed, by first class mail, a notice of redemption to each Holder whose Notes
      are to be redeemed at its registered address, except that redemption notices
      may
      be mailed more than 60 days prior to a redemption date if the notice is issued
      in connection with a defeasance of the Notes or a satisfaction and discharge
      of
      this Indenture pursuant to Articles 8 or 11 hereof.

     

    The
      notice will identify the Notes to be redeemed and will state:

     

    (1)  the
      redemption date;

     

    (2)  the
      redemption price;

     

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

     

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

     

    (5)  that
      Notes 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
      Notes
      called for redemption ceases to accrue on and after the redemption
      date;

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    (7)  the
      paragraph of the Notes and/or Section of this Indenture pursuant to which the
      Notes 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 Notes.

     

    At
      the
      Company’s request, the Trustee will give the notice of redemption in the
      Company’s name and at its expense; provided,
      however,
      that
      the Company has 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, Notes
      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 or Purchase Price.

     

    One
      Business Day prior to the redemption or purchase date, the Company will deposit
      with the Trustee or with the Paying Agent money sufficient to pay the redemption
      or purchase price of and accrued interest and Liquidated Damages, if any, on
      all
      Notes to be redeemed or purchased on that date. The Trustee or the Paying Agent
      will 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 or purchase price of, and accrued interest and Liquidated Damages,
      if
      any, on, all Notes to be redeemed or purchased.

     

    If
      the
      Company complies with the provisions of the preceding paragraph, on and after
      the redemption or purchase date, interest will cease to accrue on the Notes
      or
      the portions of Notes called for redemption or purchase. If a Note is redeemed
      or purchased 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 Note was registered at the close of business on such
      record date. If any Note called for redemption or purchase is not so paid upon
      surrender for redemption or purchase because of the failure of the Company
      to
      comply with the preceding paragraph, interest shall be paid on the unpaid
      principal, from the redemption or purchase 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 Notes and in Section 4.01
      hereof.

     

    Section
      3.06  Notes
      Redeemed or Purchased in Part.

     

    Upon
      surrender of a Note that is redeemed or purchased in part, the Company will
      issue and, upon receipt of an Authentication Order, the Trustee will
      authenticate for the Holder at the expense of the Company a new Note equal
      in
      principal amount to the unredeemed or unpurchased portion of the Note
      surrendered.

     

    Section
      3.07  Optional
      Redemption.

     

    (a)  At
      any
      time prior to February 15, 2009, the Company may on any one or more occasions
      redeem up to 25% of the aggregate principal amount of Notes issued under this
      Indenture at a redemption price of 112.750% of the principal amount thereof,
      plus accrued and unpaid interest and Liquidated Damages, if any, to the
      redemption date, with the net cash proceeds from the sale or issuance of Equity
      Interests (other than Disqualified Stock); provided
      that:

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    (1)  at
      least
      75% of the aggregate principal amount of Notes originally issued under this
      Indenture (excluding Notes held by the Company and its Subsidiaries) remains
      outstanding immediately after the occurrence of such redemption; and

     

    (2)  the
      redemption occurs within 90 days of the date of the closing of such sale or
      issuance of Equity Interests (other than Disqualified Stock).

     

    (b)  Except
      pursuant to the preceding paragraph and as described in Section 3.10 hereof,
      the
      Notes will not be redeemable at the Company’s option prior to February 15,
      2010.

     

    (c)  On
      or
      after February 15, 2010, the Company may redeem all or a part of the Notes
      upon
      not less than 30 nor more than 60 days’ notice, at the redemption prices
      (expressed as percentages of principal amount) set forth below plus accrued
      and
      unpaid interest and Liquidated Damages, if any, on the Notes redeemed to the
      applicable redemption date, if redeemed during the twelve-month period beginning
      on February 15 of the years indicated below, subject to the rights of Holders
      on
      the relevant record date to receive interest on the relevant interest payment
      date:

     

    
      	
              Year

            	 	
              Percentage

            	 
	
              2010

            	 	 	
              106.375

            	
              %

            
	
              2011

            	 	 	
              103.188

            	
              %

            
	
              2012
                and thereafter

            	 	 	
              100.000

            	
              %

            

    

    

    Unless
      the Company defaults in the payment of the redemption price, interest will
      cease
      to accrue on the Notes or portions thereof called for redemption on the
      applicable redemption date.

     

    (d)  Any
      redemption pursuant to this Section 3.07 shall be made pursuant to the
      provisions of Sections 3.01 through 3.06 hereof.

     

    Section
      33.08  Mandatory
      Redemption.

     

    The
      Company is not required to make mandatory redemption or sinking fund payments
      with respect to the Notes.

     

    Section
      3.09  Offer
      to Purchase by Application of Excess Proceeds.

     

    In
      the
      event that, pursuant to Section 4.10 hereof, the Company is required to commence
      an offer to all Holders to purchase Notes (an “Asset
      Sale Offer”),
      it
      will follow the procedures specified below.

     

    The
      Asset
      Sale Offer shall be made to all Holders and all holders of other Indebtedness
      that is pari
      passu
      with the
      Notes containing provisions similar to those set forth in this Indenture with
      respect to offers to purchase or redeem with the proceeds of sales of assets.
      The Asset Sale Offer will remain open for a period of at least 20 Business
      Days
      following its commencement and not more than 30 Business Days, except to the
      extent that a longer period is required by applicable law (the “Offer
      Period”).
      No
      later than three Business Days after the termination of the Offer Period (the
      “Purchase
      Date”),
      the
      Company will apply all Excess Proceeds (the “Offer
      Amount”)
      to the
      purchase of Notes and such other pari
      passu
      Indebtedness (on a pro
      rata
      basis,
      if applicable) or, if less than the Offer Amount has been tendered, all Notes
      and other Indebtedness tendered in response to the Asset Sale Offer. Payment
      for
      any Notes so purchased will be made in the same manner as interest payments
      are
      made.

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    If
      the
      Purchase Date is on or after an interest record date and on or before the
      related interest payment date, any accrued and unpaid interest and Liquidated
      Damages, if any, will be paid to the Person in whose name a Note is registered
      at the close of business on such record date, and no additional interest will
      be
      payable to Holders who tender Notes pursuant to the Asset Sale
      Offer.

     

    Upon
      the
      commencement of an Asset Sale Offer, the Company will send, by first class
      mail,
      a notice to the Trustee and each of the Holders, with a copy to the Trustee.
      The
      notice will contain all instructions and materials necessary to enable such
      Holders to tender Notes pursuant to the Asset Sale Offer. The notice, which
      will
      govern the terms of the Asset Sale Offer, will state:

     

    (1)  that
      the
      Asset Sale Offer is being made pursuant to this Section 3.09 and Section 4.10
      hereof and the length of time the Asset Sale Offer will remain
      open;

     

    (2)  the
      Offer
      Amount, the purchase price and the Purchase Date;

     

    (3)  that
      any
      Note not tendered or accepted for payment will continue to accrue
      interest;

     

    (4)  that,
      unless the Company defaults in making such payment, any Note accepted for
      payment pursuant to the Asset Sale Offer will cease to accrue interest after
      the
      Purchase Date;

     

    (5)  that
      Holders electing to have a Note purchased pursuant to an Asset Sale Offer may
      elect to have Notes purchased in integral multiples of $1,000 only;

     

    (6)  that
      Holders electing to have Notes purchased pursuant to any Asset Sale Offer will
      be required to surrender the Note, with the form entitled “Option of Holder to
      Elect Purchase” attached to the Notes completed, or transfer by book-entry
      transfer, to the Company, a Depositary, if appointed by the Company, or a Paying
      Agent at the address specified in the notice at least three days before the
      Purchase Date;

     

    (7)  that
      Holders will be entitled to withdraw their election if the Company, the
      Depositary or the Paying Agent, as the case may be, receives, not later than
      the
      expiration of the Offer Period, a telegram, telex, facsimile transmission or
      letter setting forth the name of the Holder, the principal amount of the Note
      the Holder delivered for purchase and a statement that such Holder is
      withdrawing his election to have such Note purchased;

     

    (8)  that,
      if
      the aggregate principal amount of Notes and other pari
      passu
      Indebtedness surrendered by holders thereof exceeds the Offer Amount, the
      Company will select the Notes and other pari
      passu
      Indebtedness to be purchased on a pro
      rata
      basis
      based on the principal amount of Notes and such other pari
      passu
      Indebtedness surrendered (with such adjustments as may be deemed appropriate
      by
      the Company so that only Notes in denominations of $1,000, or integral multiples
      thereof, will be purchased); and

     

    (9)  that
      Holders whose Notes were purchased only in part will be issued new Notes equal
      in principal amount to the unpurchased portion of the Notes surrendered (or
      transferred by book-entry transfer).

     

    On
      or
      before the Purchase Date, the Company will, to the extent lawful, accept for
      payment, on a pro
      rata
      basis to
      the extent necessary, the Offer Amount of Notes or portions thereof tendered
      pursuant to the Asset Sale Offer, or if less than the Offer Amount has been
      tendered, all Notes tendered, and will deliver or cause to be delivered to
      the
      Trustee the Notes properly accepted together with an Officers’ Certificate
      stating that such Notes or portions thereof were accepted for payment by the
      Company in accordance with the terms of this Section 3.09. The Company, the
      Depositary or the Paying Agent, as the case may be, will promptly (but in any
      case not later than five days after the Purchase Date) mail or deliver to each
      tendering Holder an amount equal to the purchase price of the Notes tendered
      by
      such Holder and accepted by the Company for purchase, and the Company will
      promptly issue a new Note, and the Trustee, upon written request from the
      Company, will authenticate and mail or deliver (or cause to be transferred
      by
      book entry) such new Note to such Holder, in a principal amount equal to any
      unpurchased portion of the Note surrendered. Any Note not so accepted shall
      be
      promptly mailed or delivered by the Company to the Holder thereof. The Company
      will publicly announce the results of the Asset Sale Offer on the Purchase
      Date.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    Other
      than as specifically provided in this Section 3.09, any purchase pursuant to
      this Section 3.09 shall be made pursuant to the provisions of Sections 3.01
      through 3.06 hereof.

     

    Section
      3.10  Redemption
      for Changes in Withholding Taxes.

     

    The
      Company may redeem all, but not less than all, of the Notes at any time, upon
      not less than 30 nor more than 60 days’ notice, at 100% of the aggregate
      principal amount of the Notes, together with accrued and unpaid interest and
      Liquidated Damages, if any, on the Notes redeemed to the redemption date, if
      the
      Company has become or would become obligated to pay, on the next date on which
      any amount would be payable with respect to the Notes, any Additional Amounts
      as
      a result of a change in the laws or treaties (including any regulations
      promulgated thereunder) of a Relevant Taxing Jurisdiction, or any change in
      any
      official position of any governmental agency, taxing authority or regulatory
      authority regarding the application or interpretation of such laws or
      regulations, which change is announced or becomes effective on or after the
      date
      of this offering memorandum (a “Change
      in Law”).

     

    ARTICLE
      4

    COVENANTS

     

    Section
      4.01  Payment
      of Notes.

     

    The
      Company will pay or cause to be paid the principal of, premium, if any, and
      interest and Liquidated Damages, if any, on, the Notes on the dates and in
      the
      manner provided in the Notes. Principal, premium, if any, and interest and
      Liquidated Damages, if any will be considered paid on the date due if the Paying
      Agent, if other than the Company or a Subsidiary thereof, holds as of 10:00
      a.m.
      Eastern Time on the due date money deposited by the Company in immediately
      available funds and designated for and sufficient to pay all principal, premium,
      if any, and interest then due. The Company will pay all Liquidated Damages,
      if
      any, in the same manner on the dates and in the amounts set forth in the
      Registration Rights Agreement. 

     

    The
      Company will pay interest (including post-petition interest in any proceeding
      under any Bankruptcy Law) on overdue principal at the rate equal to 1% per
      annum
      in excess of the then applicable interest rate on the Notes to the extent
      lawful; it will pay interest (including post-petition interest in any proceeding
      under any Bankruptcy Law) on overdue installments of interest and Liquidated
      Damages (without regard to any applicable grace period) at the same rate to
      the
      extent lawful. 

     

    Section
      4.02  Maintenance
      of Office or Agency. 

     

    The
      Company will maintain in the Borough of Manhattan, the City of New York, an
      office or agency (which may be an office of the Trustee or an affiliate of
      the
      Trustee, Registrar or co-registrar) where Notes may be surrendered for
      registration of transfer or for exchange and where notices and demands to or
      upon the Company in respect of the Notes and this Indenture may be served.
      The
      Company will give prompt written notice to the Trustee of the location, and
      any
      change in the location, of such office or agency. If at any time the Company
      fails to maintain any such required office or agency or fails to furnish the
      Trustee with the address thereof, such presentations, surrenders, notices and
      demands may be made or served at the Corporate Trust Office of the
      Trustee.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    The
      Company may also from time to time designate one or more other offices or
      agencies where the Notes may be presented or surrendered for any or all such
      purposes and may from time to time rescind such designations; provided,
      however,
      that no
      such designation or rescission will in any manner relieve the Company of its
      obligation to maintain an office or agency in the Borough of Manhattan, the
      City
      of New York 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
      location of any such other office or agency.

     

    The
      Company hereby designates the Corporate Trust Office of the Trustee as one
      such
      office or agency of the Company in accordance with Section 2.03 hereof.

     

    Section
      4.03  Reports. 

     

    (a)  Whether
      or not required by the rules and regulations of the SEC, so long as any Notes
      are outstanding, the Company will furnish to the Trustee and the Holders of
      Notes or cause the Trustee to furnish to the Holders of Notes, within the time
      periods specified in the SEC’s rules and regulations:

     

    (1)  (a)   
      all
      annual financial and other information that would be required to be contained
      in
      a filing with the SEC on Forms 20-F or 40-F, as applicable (or any successor
      forms), containing the information required therein (or required in such
      successor form); and

     

    (b) for
      the
      first three quarters of each year, all quarterly financial and other information
      that would be required to be contained in a filing with the SEC on Form 6-K
      (or
      any successor form) containing, at a minimum, the information that would be
      required to be provided in quarterly reports under the laws of Ontario to
      securityholders of a company with securities listed on the Toronto Stock
      Exchange, whether or not the Company has any of its securities so listed, in
      each case including a “Management's Discussion and Analysis of Financial
      Condition and Results of Operations” and, with respect to the annual information
      only, a report on the annual financial statements by the Company’ certified
      independent accountants; and

     

    (2)  all
      current reports that would otherwise be required to be filed with the SEC on
      Form 6-K if the Company were required to file such reports. 

     

    In
      addition, following the consummation of the Exchange Offer contemplated by
      the
      Registration Rights Agreement, the Company will file a copy of each of the
      reports referred to in clauses (1) and (2) above with the SEC for public
      availability within the time periods specified in the rules and regulations
      applicable to such reports (unless the SEC will not accept such a filing) and
      will post the reports on its website within those time periods. The Company
      will
      at all times comply with TIA § 314(a).

     

    If,
      at
      any time after consummation of the Exchange Offer contemplated by the
      Registration Rights Agreement, the Company is no longer subject to the periodic
      reporting requirements of the Exchange Act for any reason, the Company will
      nevertheless continue filing a copy of each of the reports referred to in
      clauses (1) and (2) above with the SEC for public availability within the time
      periods specified in the rules and regulations applicable to such reports
      (unless the SEC will not accept such a filing) . The Company will not take
      any
      action for the purpose of causing the SEC not to accept any such filings. If,
      notwithstanding the foregoing, the SEC will not accept the Company’s filings for
      any reason, the Company will post the reports referred to in clauses (1) and
      (2)
      above on its website within the time periods that would apply if the Company
      were required to file those reports with the SEC. The Company will at all times
      comply with TIA § 314(a). 

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    (b)  If
      the
      Company has designated any of its Subsidiaries as Unrestricted Subsidiaries,
      then the quarterly and annual financial information required by paragraph (a)
      of
      this Section 4.03 will include a reasonably detailed presentation, either on
      the
      face of the financial statements or in the footnotes thereto, and in
      Management’s Discussion and Analysis of Financial Condition and Results of
      Operations, of the financial condition and results of operations of the Company
      and its Restricted Subsidiaries separate from the financial condition and
      results of operations of the Unrestricted Subsidiaries of the
      Company.

     

    (c)  For
      so
      long as any Notes remain outstanding, if at any time it is not required to
      file
      with the SEC the reports required by paragraphs (a) and (b) of this Section
      4.03, the Company will furnish to the Holders and to securities analysts and
      prospective investors, upon their request, the information required to be
      delivered pursuant to Rule 144A(d)(4) under the Securities Act. 

     

    (d)  If
      at any
      time the Notes are Guaranteed by a parent company of the Company, the
      obligations of the Company set forth in this Section 4.03 will be deemed
      satisfied if such parent company complies instead with the terms of this Section
      4.03 by providing all reports and information (including, without limitation,
      financial information on a consolidated basis) that would otherwise be required
      to be provided by the Company. 

     

    (e)  Delivery
      of reports, information and documents as required by this Section 4.03 to the
      Trustee is for informational purposes only and the Trustee’s receipt of such
      shall not constitute constructive notice of any information contained therein
      or
      determinable from information contained therein, including the Company’s
      compliance with any of its covenants hereunder (as to which the Trustee is
      entitled to rely exclusively on Officers’ Certificates).

     

    Section
      4.04  Compliance
      Certificate. 

     

    (a)  The
      Company and each Guarantor (to the extent that such Guarantor is so required
      under the TIA) shall deliver to the Trustee, within 90 days after the end of
      each fiscal year, an Officers’ Certificate stating that a review of the
      activities of the Company and its Subsidiaries during the preceding fiscal
      year
      has been made under the supervision of the signing Officers with a view to
      determining whether the Company has kept, observed, performed and fulfilled
      its
      obligations under this Indenture and the Interest Reserve and Security
      Agreement, and further stating, as to each such Officer signing such
      certificate, that to the best of his or her knowledge the Company has kept,
      observed, performed and fulfilled each and every covenant contained in this
      Indenture and the Interest Reserve and Security Agreement and is not in default
      in the performance or observance of any of the terms, provisions and conditions
      of this Indenture and the Interest Reserve and Security Agreement (or, if a
      Default or Event of Default has occurred, describing all such Defaults or Events
      of Default of which he or she may have knowledge and what action the Company
      is
      taking or proposes to take with respect thereto) and that to the best of his
      or
      her knowledge no event has occurred and remains in existence by reason of which
      payments on account of the principal of or interest, if any, on the Notes is
      prohibited or if such event has occurred, a description of the event and what
      action the Company is taking or proposes to take with respect
      thereto.

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    (b)  So
      long
      as not contrary to the then current recommendations of the American Institute
      of
      Certified Public Accountants, the year-end financial statements delivered
      pursuant to Section 4.03 above shall be accompanied by a written statement
      of
      the Company’s independent public accountants (who shall be a firm of established
      national reputation) that in making the examination necessary for certification
      of such financial statements, nothing has come to their attention that would
      lead them to believe that the Company has violated any provisions of Article
      4
      or Article 5 hereof or, if any such violation has occurred, specifying the
      nature and period of existence thereof, it being understood that such
      accountants shall not be liable directly or indirectly to any Person for any
      failure to obtain knowledge of any such violation.

     

    (c)  So
      long
      as any of the Notes are outstanding, the Company will promptly deliver to the
      Trustee, forthwith upon any Officer becoming aware of any Default or Event
      of
      Default, an Officers’ Certificate specifying such Default or Event of Default
      and what action the Company is taking or proposes to take with respect thereto.
      

     

    Section
      4.05  Taxes. 

     

    The
      Company will pay, and will 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 Notes. 

     

    Section
      4.06  Stay,
      Extension and Usury Laws. 

     

    The
      Company and each of the Guarantors covenants (to the extent that it may lawfully
      do so) that it will not at any time insist upon, plead, or in any manner
      whatsoever claim or take the benefit or advantage of, any stay, extension or
      usury law wherever enacted, now or at any time hereafter in force, that may
      affect the covenants or the performance of this Indenture; and the Company
      and
      each of the Guarantors (to the extent that it may lawfully do so) hereby
      expressly waives all benefit or advantage of any such law, and covenants that
      it
      will not, by resort to any such law, hinder, delay or impede the execution
      of
      any power herein granted to the Trustee, but will suffer and permit the
      execution of every such power as though no such law has been enacted.

     

    Section
      4.07  Restricted
      Payments. 

     

    (a)  The
      Company will not, and will not permit any of its Restricted Subsidiaries to,
      directly or indirectly:

     

    (1)  declare
      or pay any dividend or make any other payment or distribution on account of
      the
      Company’s or any of its Restricted Subsidiaries’ Equity Interests (including,
      without limitation, any payment in connection with any merger, amalgamation
      or
      consolidation involving the Company or any of its Restricted Subsidiaries)
      or to
      the direct or indirect holders of the Company’s or any of its Restricted
      Subsidiaries’ Equity Interests in their capacity as such (other than dividends
      or distributions payable in Equity Interests (other than Disqualified Stock)
      of
      the Company and other than dividends or distributions payable to the Company
      or
      a Restricted Subsidiary of the Company);

     

    (2)  purchase,
      redeem or otherwise acquire or retire for value (excluding, for the avoidance
      of
      doubt, any exchange of Class B Voting Shares of the Company for Class A Voting
      Shares of the Company, but including without limitation, in connection with
      any
      merger, amalgamation or consolidation involving the Company) any Equity
      Interests of the Company or any direct or indirect parent of the Company (other
      than any such Equity Interests owned by the Company or any Restricted Subsidiary
      of the Company); 

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    (3)  make
      any
      payment on or with respect to, or purchase, redeem, defease or otherwise acquire
      or retire for value any Indebtedness of the Company or any Guarantor that is
      contractually subordinated to the Notes or to any Note Guarantee (excluding
      any
      intercompnay Indebtedness between or among the Company and any of its Restricted
      Subsidiaries), except a payment of interest or principal at the Stated Maturity
      thereof; or 

     

    (4)  make
      any
      Restricted Investment 

     

    all
      such
      payments and other actions set forth in these clauses (1) through (4) above
      being  collectively
      referred to as “Restricted
      Payments”),
      

     

    unless,
      at the time of and after giving effect to such Restricted Payment:

     

    (1)  no
      Default or Event of Default has occurred and is continuing or would occur as
      a
      consequence of such Restricted Payment; 

     

    (2)   the
      Company would, at the
      time of such Restricted Payment and after giving pro forma effect thereto as
      if
      such Restricted Payment had been made at the beginning of the applicable
      two-quarter period, have been permitted to incur at least US$1.00 of additional
      Indebtedness pursuant to the Consolidated Leverage Ratio test set forth in
      Section 4.09(a) hereof; and

     

    (3)  such
      Restricted Payment, together with the aggregate amount of all other Restricted
      Payments made by the Company and its Restricted Subsidiaries since the date
      of
      this Indenture (excluding Restricted Payments permitted by clauses (2), (3),
      (4), (5), (6) and (7) of paragraph (b) of this Section 4.07), is less than
      the
      sum, without duplication of:

     

    (A)  the
      difference between (i) Consolidated Cash Flow of the Company for the period
      (taken as one accounting period) from the beginning of the first fiscal quarter
      commencing after the date of this Indenture to the end of the Company’s most
      recently ended fiscal quarter for which internal financial statements are
      available at the time of such Restricted Payment and (ii) 200% of the
      Consolidated Interest Expense of the Company for the period (taken as one
      accounting period) from the beginning of the first fiscal quarter commencing
      after the date of this Indenture to the end of the Company’s most recently ended
      fiscal quarter for which internal financial statements are available at the
      time
      of such Restricted Payment; plus 

     

    (B)  Total
      Incremental Equity; plus 

     

    (C)  to
      the
      extent that any Restricted Investment that was made after the date of this
      Indenture is sold for cash or otherwise liquidated or repaid for cash, the
      cash
      return of capital with respect to such Restricted Investment (less the cost
      of
      disposition, if any); plus

     

    (D)  50%
      of
      any dividends received by the Company or a Restricted Subsidiary of the Company
      after the date of this Indenture from an Unrestricted Subsidiary of the Company,
      to the extent that such dividends were not otherwise included in the
      Consolidated Net Income of the Company for such period; plus

     

    (E)  to
      the
      extent that any Unrestricted Subsidiary of the Company designated as such after
      the date of this Indenture is redesignated as a Restricted Subsidiary after
      the
      date of this Indenture, the Fair Market Value of the Company’ Investment in such
      Subsidiary as of the date of such redesignation; minus

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    (F)  100%
      of
      the aggregate principal amount of Indebtedness then outstanding, which was
      incurred pursuant to Section 4.09(b)(2) hereof.

     

    (b)  So
      long
      as no Default has occurred and is continuing or would be caused thereby, the
      provisions of Section 4.07(a) hereof will not prohibit:

     

    (1)  the
      payment of any dividend or distribution or the consummation of any irrevocable
      redemption within 60 days after the date of declaration of the dividend,
      distribution or giving of the redemption notice, as the case may be, if at
      the
      date of declaration or notice, the dividend, distribution or redemption payment
      would have complied with the provisions of this Indenture; 

     

    (2)  the
      making of any Restricted Payment in exchange for, or out of the net cash
      proceeds of the substantially concurrent sale (other than to a Subsidiary of
      the
      Company) of Equity Interests of the Company (other than Disqualified Stock)
      or
      from the substantially concurrent contribution of common equity capital to
      the
      Company; provided
      that the
      amount of any such net cash proceeds that are utilized for any such Restricted
      Payment will be excluded from clause (3)(B) of Section 4.07(a) hereof;

     

    (3)  the
      repurchase, repayment, prepayment, redemption, defeasance or other acquisition
      or retirement for value of Indebtedness of the Company or any Guarantor that
      is
      contractually subordinated to the Notes or to any Note Guarantee with the net
      cash proceeds from a substantially concurrent incurrence of Permitted
      Refinancing Indebtedness; 

     

    (4)  the
      payment of any dividend (or, in the case of any partnership or limited liability
      company, any similar distribution) by a Restricted Subsidiary of the Company
      to
      the holders of its Equity Interests on a pro
      rata
      basis;

     

    (5)  the
      repurchase, redemption or other acquisition or retirement for value of any
      Equity Interests of the Company or any Restricted Subsidiary of the Company
      held
      by any current or former officer, director or employee of the Company or any
      of
      its Restricted Subsidiaries pursuant to any equity subscription agreement,
      stock
      option agreement, shareholders’ agreement or similar agreement; provided
      that the
      aggregate price paid for all such repurchased, redeemed, acquired or retired
      Equity Interests may not exceed US$1,000,000 in any twelve-month
      period;

     

    (6)  the
      repurchase of Equity Interests deemed to occur upon the exercise of stock
      options to the extent such Equity Interests represent a portion of the exercise
      price of those stock options;

     

    (7)  payments
      made to purchase, redeem, defease or otherwise acquire or retire for value
      any
      Indebtedness of the Company or a Guarantor that is contractually subordinated
      to
      the Notes or to any Guarantee, in each case, pursuant to provisions requiring
      such Person to offer to purchase, redeem, defease or otherwise acquire or retire
      for value such subordinated Indebtedness upon the occurrence of a “change of
      control” or with the proceeds of “asset sales” as defined in the agreements or
      instruments governing such subordinated Indebtedness; provided
      however,
      that a Change of Control Offer or Asset Sale Offer, as applicable, has been
      made
      and the Company has purchased all Notes validly tendered in connection with
      that
      Change of Control Offer or Asset Sale Offer; 

     

    
      
        
        

      

      
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    (8)  the
      declaration and payment of regularly scheduled or accrued dividends to holders
      of any class or series of Disqualified Stock of the Company or any Restricted
      Subsidiary of the Company issued on or after the date of this Indenture in
      accordance with the Consolidated Leverage Ratio test described in Section 4.09
      hereof;

     

    (9)  payments
      or distributions to dissenting stockholders pursuant to applicable law pursuant
      to or in connection with a consolidation, merger or transfer of assets that
      complies with the provisions of this Indenture applicable to mergers,
      consolidations and transfers of all or substantially all of our property or
      assets; and

     

    (10)  other
      Restricted Payments in an aggregate amount not to exceed US$5.0 million since
      the date of this Indenture.

     

    The
      amount of all Restricted Payments (other than cash) will be the Fair Market
      Value on the date of the Restricted Payment of the asset(s) or securities
      proposed to be transferred or issued by the Company or such Restricted
      Subsidiary, as the case may be, pursuant to the Restricted Payment. The Fair
      Market Value of any assets or securities that are required to be valued by
      this
      Section 4.07 will be determined in good faith (a) in the case of assets or
      securities valued at US$5.0 million or less, by a senior financial officer
      of
      the Company set forth in a certificate to the Trustee from such officer, and
      (b)
      in the case of assets or securities valued at more than US $10.0 million, by
      the
      Company’s Board of Directors and set forth in an Officers’ Certificate delivered
      to the Trustee. The Board of Directors’ determination must be based upon an
      opinion or appraisal issued by an accounting, appraisal or investment banking
      firm of national standing if the Fair Market Value exceeds US$20.0 million.
      

     

    Section
      4.08  Dividend
      and Other Payment Restrictions Affecting Subsidiaries. 

     

    (a)  The
      Company will not, and will not permit any of its Restricted Subsidiaries to,
      directly or indirectly, create or permit to exist or become effective any
      consensual encumbrance or restriction on the ability of any Restricted
      Subsidiary to:

     

    (1)  pay
      dividends or make any other distributions on its Capital Stock to the Company
      or
      any of its Restricted Subsidiaries or, with respect to any other interest or
      participation in, or measured by, its profits, or pay any indebtedness owed
      to
      the Company or any of its Restricted Subsidiaries;

     

    (2)  make
      loans or advances to the Company or any of its Restricted Subsidiaries;
      or

     

    (3)  sell,
      lease or transfer any of its properties or assets to the Company or any of
      its
      Restricted Subsidiaries.

     

    (b)  However,
      the restrictions in Section 4.08(a) hereof will not apply to encumbrances or
      restrictions existing under or by reason of:

     

    (1)  agreements
      governing Existing Indebtedness as in effect on the date of this Indenture
      and
      any amendments, restatements, modifications, renewals, supplements, refundings,
      replacements or refinancings of those agreements; provided
      that the
      amendments, restatements, modifications, renewals, supplements, refundings,
      replacements or refinancings are not materially more restrictive, taken as
      a
      whole, with respect to such dividend and other payment restrictions than those
      contained in those agreements on the date of this Indenture;

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    (2)  this
      Indenture, the Notes and the Note Guarantees;

     

    (3)  applicable
      law, rule, regulation or order;

     

    (4)  any
      agreement or instrument governing Indebtedness or Capital Stock of a Person
      acquired by, or merged, consolidated or otherwise combined with or into, the
      Company or any of its Restricted Subsidiaries as in effect at the time of such
      acquisition, merger, consolidation or other combination (except to the extent
      such Indebtedness or Capital Stock was incurred in connection with or in
      contemplation of such acquisition), which encumbrance or restriction is not
      applicable to any Person, or the properties or assets of any Person, other
      than
      the Person, or the property or assets of the Person, so acquired; provided
      that, in
      the case of Indebtedness, such Indebtedness was permitted by the terms of this
      Indenture to be incurred;

     

    (5)  customary
      non-assignment provisions in leases, contracts and licenses or related documents
      entered into in the ordinary course of business;

     

    (6)  purchase
      money obligations for property acquired in the ordinary course of business
      and
      Capital Lease Obligations that impose restrictions on the property purchased
      or
      leased of the nature described in clause (3) of Section 4.08(a)
      hereof;

     

    (7)  any
      agreement for the sale or other disposition of a Restricted Subsidiary that
      restricts distributions by that Restricted Subsidiary pending the sale or other
      disposition;

     

    (8)  Permitted
      Refinancing Indebtedness; provided
      that the
      restrictions contained in the agreements governing such Permitted Refinancing
      Indebtedness are not materially more restrictive, taken as a whole, than those
      contained in the agreements governing the Indebtedness being
      refinanced;

     

    (9)  Liens
      permitted to be incurred under the provisions of Section 4.12 hereof that limit
      the right of the debtor to dispose of the assets subject to such
      Liens;

     

    (10)  provisions
      limiting the disposition or distribution of assets or property in joint venture
      agreements, asset sale agreements, sale-leaseback agreements, stock sale
      agreements and other similar agreements entered into with the approval of the
      Company’s Board of Directors, which limitation is applicable only to the assets
      that are the subject of such agreements; and

     

    (11)  restrictions
      on cash or other deposits or net worth imposed by customers under contracts
      entered into in the ordinary course of business. 

     

    Section 4.09  Incurrence
      of Indebtedness and Issuance of Preferred Stock. 

     

    (a)  The
      Company will not, and will not permit any of its Restricted Subsidiaries to,
      directly or indirectly, create, incur, issue, assume, guarantee or otherwise
      become directly or indirectly liable, contingently or otherwise, with respect
      to
      (collectively, “incur”)
      any
      Indebtedness (including Acquired Debt), and the Company will not issue any
      Disqualified Stock and will not permit any of its Restricted Subsidiaries to
      issue any shares of preferred stock; provided,
      however,
      that
      the Company may incur Indebtedness (including Acquired Debt) or issue
      Disqualified Stock, and any Guarantor may incur Indebtedness (including Acquired
      Debt) or issue shares of preferred stock, if the Company’s Consolidated Leverage
      Ratio at the time of incurrence of such Indebtedness or the issuance of such
      Disqualified Stock or preferred stock, after giving pro forma effect to such
      incurrence or issuance as of such date and to the use of proceeds therefrom
      as
      if the same had occurred at the beginning of the most recently ended two full
      fiscal quarters of the Company for which internal financial statements are
      available, would have been no greater than 5.5 to 1.

     

    
      
        
        

      

      
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    (b)  The
      provisions of Section 4.09(a) hereof will not prohibit the incurrence of any
      of
      the following items of Indebtedness (collectively, “Permitted
      Debt”):

     

    (1)  the
      incurrence by the Company or any Guarantor of additional Indebtedness, including
      under the Credit Agreement, in an aggregate principal amount at any one time
      outstanding under this clause (1) not to exceed US$50.0 million; 

     

    (2)  the
      incurrence by the Company and any Guarantor of Indebtedness in an aggregate
      principal amount at any one time outstanding under this clause (2) of up to
      200%
      of Total Incremental Equity; provided
      that the
      total amount of Indebtedness outstanding at any one time under this clause
      (2)
      may not exceed US$50.0 million; provided
      further
      that
      the amount of any such net cash proceeds that are utilized for purposes of
      incurring Indebtedness under this clause (2) will be excluded from clause (3)(B)
      of Section 4.07(a).

     

    (3)  the
      incurrence by the Company and any Guarantor of Indebtedness that is
      contractually subordinated in right of payment to the Notes;

     

    (4)  the
      incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness,
      incurred for the purpose of financing all or any part of the purchase price
      or
      cost of inventory used in the business of the Company or any of its Restricted
      Subsidiaries, in an aggregate principal amount, including all Permitted
      Refinancing Indebtedness incurred to renew, refund, refinance, replace, defease
      or discharge any Indebtedness incurred pursuant to this clause (4), not to
      exceed US$5.0 million at any time outstanding;

     

    (5)  the
      incurrence by the Company and its Restricted Subsidiaries of the Existing
      Indebtedness;

     

    (6)  the
      incurrence by the Company and the Guarantors of Indebtedness represented by
      the
      Notes and the related Note Guarantees to be issued on the date of this Indenture
      and continued to be represented by the exchange Notes and the related Note
      Guarantees to be issued pursuant to the Registration Rights
      Agreement;

     

    (7)  the
      incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
      represented by Capital Lease Obligations, mortgage financings or purchase money
      obligations, in each case, incurred for the purpose of financing all or any
      part
      of the purchase price or cost of design, construction, installation or
      improvement of property, plant or equipment used in the business of the Company
      or any of its Restricted Subsidiaries, in an aggregate principal amount,
      including all Permitted Refinancing Indebtedness incurred to renew, refund,
      refinance, replace, defease or discharge any Indebtedness incurred pursuant
      to
      this clause (7), not to exceed US$5.0 million at any time
      outstanding;

     

    (8)  the
      incurrence by the Company or any of its Restricted Subsidiaries of Permitted
      Refinancing Indebtedness in exchange for, or the net proceeds of which are
      used
      to renew, refund, refinance, replace, defease or discharge any Indebtedness
      (other than intercompany Indebtedness) that was permitted by this Indenture
      to
      be incurred under the first paragraph of this covenant or clauses (4), (5),
      (6),
      (7) or (15) of this paragraph; 

     

    
      
        
        

      

      
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    (9)  the
      incurrence by the Company or any of its Restricted Subsidiaries of intercompany
      Indebtedness between or among the Company and any of its Restricted
      Subsidiaries; provided,
      however,
      that:

     

    (a)  if
      the
      Company or any Guarantor is the obligor on such Indebtedness and the payee
      is
      not the Company or a Guarantor, such Indebtedness must be expressly subordinated
      to the prior payment in full in cash of all Obligations then due with respect
      to
      the Notes, in the case of the Company, or the Note Guarantee, in the case of
      a
      Guarantor; and 

     

    (b)  (i)
      any
      subsequent issuance or transfer of Equity Interests that results in any such
      Indebtedness being held by a Person other than the Company or a Restricted
      Subsidiary of the Company and (ii) any sale or other transfer of any such
      Indebtedness to a Person that is not either the Company or a Restricted
      Subsidiary of the Company, will be deemed, in each case, to constitute an
      incurrence of such Indebtedness by the Company or such Restricted Subsidiary,
      as
      the case may be, that was not permitted by this clause (9);

     

    (10)  the
      issuance by any of the Company’s Restricted Subsidiaries to the Company or to
      any of its Restricted Subsidiaries of shares of preferred stock; provided,
      however,
      that:

     

    (a)  any
      subsequent issuance or transfer of Equity Interests that results in any such
      preferred stock being held by a Person other than the Company or a Restricted
      Subsidiary of the Company; and 

     

    (b)  any
      sale
      or other transfer of any such preferred stock to a Person that is not either
      the
      Company or a Restricted Subsidiary of the Company, 

     

    will
      be
      deemed, in each case, to constitute an issuance of such preferred stock by
      such
      Restricted Subsidiary that was not permitted by this clause (10); 

     

    (11)  the
      incurrence by the Company or any of its Restricted Subsidiaries of Hedging
      Obligations in the ordinary course of business; 

     

    (12)  the
      Guarantee by the Company or any of the Guarantors of Indebtedness of the Company
      or a Restricted Subsidiary of the Company that was permitted to be incurred
      by
      another provision of this covenant; provided
      that if
      the Indebtedness being guaranteed is subordinated to or pari
      passu
      with the
      Notes, then the Guarantee shall be subordinated or pari
      passu,
      as
      applicable, to the same extent as the Indebtedness guaranteed;

     

    (13)  the
      incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
      in respect of workers’ compensation claims, self-insurance obligations, bankers’
acceptances, performance or surety bonds or other reimbursement obligations
      in
      the ordinary course of business; 

     

    (14)  the
      incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
      arising from the honoring by a bank or other financial institution of a check,
      draft or similar instrument inadvertently drawn against insufficient funds,
      so
      long as such Indebtedness is covered within five Business Days; and

     

    
      
        
        

      

      
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    (15)  the
      incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
      to the extent the net proceeds thereof are promptly deposited to defease all
      outstanding Notes as described in Article 8 hereof.

     

    The
      Company will not incur, and will not permit any Guarantor to incur, any
      Indebtedness (including Permitted Debt) that is contractually subordinated
      in
      right of payment to any other Indebtedness of the Company or such Guarantor
      unless such Indebtedness is also contractually subordinated in right of payment
      to the Notes and the applicable Note Guarantee on substantially identical terms;
      provided,
      however,
      that no
      Indebtedness will be deemed to be contractually subordinated in right of payment
      to any other Indebtedness solely by virtue of being unsecured or by virtue
      of
      being secured on a first or junior Lien basis.

     

    For
      purposes of determining compliance with this Section 4.09, in the event that
      an
      item of proposed Indebtedness meets the criteria of more than one of the
      categories of Permitted Debt described in clauses (1) through (15) above or
      is
      entitled to be incurred pursuant to Section 4.09(a) hereof, the Company will
      be
      permitted to classify such item of Indebtedness on the date of its incurrence,
      or later reclassify all or a portion of such item of Indebtedness, in any manner
      that complies with this Section 4.09, including by allocation to more than
      one
      other type of Indebtedness. Other Indebtedness ranking equal in right of payment
      with the Notes outstanding on the date on which Notes are first issued and
      authenticated under this Indenture will initially be deemed to have been
      incurred on such date in reliance on the exception provided by clause (1) of
      the
      definition of Permitted Debt. The outstanding principal amount of any particular
      Indebtedness shall be counted only once and any obligations arising under any
      Guarantee, Lien, letter of credit or similar instrument supporting such
      Indebtedness shall not be double counted. Notwithstanding any other provision
      of
      this Section 4.09(b), the maximum amount of Indebtedness that the Company or
      any
      Restricted Subsidiary may incur pursuant to this Section 4.09(b) shall not
      be
      deemed to be exceeded solely as a result of fluctuations in exchange rates
      or
      currency values.

     

    The
      amount of any Indebtedness outstanding as of any date will be:

     

    (1)  the
      accreted value of the Indebtedness, in the case of any Indebtedness issued
      with
      original issue discount;

     

    (2)  the
      principal amount of the Indebtedness, in the case of any other Indebtedness;
      and

     

    (3)  in
      respect of Indebtedness of another Person secured by a Lien on the assets of
      the
      specified Person, the lesser of:

     

    (A)  the
      Fair
      Market Value of such assets at the date of determination; and

     

    (B)  the
      amount of the Indebtedness of the other Person.

     

    Section 4.10  Asset
      Sales.

     

    The
      Company will not, and will not permit any of its Restricted Subsidiaries to,
      consummate an Asset Sale unless:

     

    (1)  the
      Company (or the Restricted Subsidiary, as the case may be) receives
      consideration at the time of the Asset Sale at least equal to the Fair Market
      Value of the assets or Equity Interests issued or sold or otherwise disposed
      of;
      and

     

    
      
        
        

      

      
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    (2)  at
      least
      75% of the consideration received in the Asset Sale by the Company or such
      Restricted Subsidiary is in the form of cash or Cash Equivalents. For purposes
      of this provision, each of the following will be deemed to be cash:

     

    (A)  any
      liabilities, as shown on the Company’s most recent consolidated balance sheet,
      of the Company or any Restricted Subsidiary (other than contingent liabilities
      and liabilities that are by their terms subordinated to the Notes or any Note
      Guarantee) that are assumed by the transferee of any such assets pursuant to
      a
      customary novation agreement that releases the Company or such Restricted
      Subsidiary from further liability; 

     

    (B)  any
      securities, Notes or other obligations received by the Company or any such
      Restricted Subsidiary from such transferee that are within 60 days converted
      by
      the Company or such Restricted Subsidiary into cash or Cash Equivalents, to
      the
      extent of the cash or Cash Equivalents received in that conversion;
      and

     

    (C)  any
      stock
      or assets of the kind referred to in clauses (2) or (4) of the next paragraph
      of
      this Section 4.10.

     

    Within
      360 days after the receipt of any Net Proceeds from an Asset Sale, the Company
      (or the applicable Restricted Subsidiary, as the case may be):

     

    (x)   may
      apply
      such Net Proceeds at its option:

     

    (3)  to
      acquire all or substantially all of the assets of, or any Capital Stock of,
      another Permitted Business, if, after giving effect to any such acquisition
      of
      Capital Stock, the Permitted Business is or becomes a Restricted Subsidiary
      of
      the Company;

     

    (4)  to
      make a
      capital expenditure; or

     

    (5)  to
      acquire other assets that are not classified as current assets under GAAP and
      that are used or useful in a Permitted Business.

     

    (y)   to
      repay
      secured Indebtedness; or

     

    (z)   enter
      into a legally binding agreement to apply such Net Proceeds as described in
      the
      preceding clause (x) within six months after such agreement is entered into
      and
      apply such Net Proceeds in accordance with the terms of such agreement or the
      provisions of clause (x) above; provided that if such agreement terminates
      the
      Company shall have until the earlier of (i) 90 days after the date of such
      termination and (ii) six months after the date of the Asset Sale resulting
      in
      such Net Proceeds to effect such an application. 

    

    Pending
      the final application of any Net Proceeds, the Company or any Restricted
      Subsidiary may temporarily reduce revolving credit borrowings or otherwise
      invest the Net Proceeds in any manner that is not prohibited by this Indenture.
      

     

    Any
      Net
      Proceeds from Asset Sales that are not applied or invested as provided in the
      second paragraph of this Section 4.10 will constitute “Excess
      Proceeds.”
When
      the aggregate amount of Excess Proceeds exceeds US$10.0 million, within five
      days thereof, the Company will make an Asset Sale Offer to all Holders of Notes
      and all holders of other Indebtedness that is pari
      passu
      with the
      Notes containing provisions similar to those set forth in this Indenture with
      respect to offers to purchase or redeem with the proceeds of sales of assets
      in
      accordance with Section 3.09 hereof to purchase the maximum principal amount
      of
      Notes and such other pari
      passu Indebtedness
      that may be purchased out of the Excess Proceeds. The offer price in any Asset
      Sale Offer will be equal to 100% of the principal amount plus accrued and unpaid
      interest and Liquidated Damages, if any, to the date of purchase, and will
      be
      payable in cash. If any Excess Proceeds remain after consummation of an Asset
      Sale Offer, the Company or any Restricted Subsidiary may use those Excess
      Proceeds for any purpose not otherwise prohibited by this Indenture. If the
      aggregate principal amount of Notes and other pari
      passu
      Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
      Proceeds, the Trustee will select the Notes and such other pari
      passu
      Indebtedness to be purchased on a pro
      rata
      basis.
      Upon completion of each Asset Sale Offer, the amount of Excess Proceeds will
      be
      reset at zero.

     

    
      
        
        

      

      
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    The
      Company will comply with the requirements of Rule 14e-1 under the Exchange
      Act
      and any other securities laws and regulations thereunder to the extent such
      laws
      and regulations are applicable in connection with each repurchase of Notes
      pursuant to an Asset Sale Offer. To the extent that the provisions of any
      securities laws or regulations conflict with the provisions of Section 3.09
      hereof or this Section 4.10, the Company will comply with the applicable
      securities laws and regulations and will not be deemed to have breached its
      obligations under Section 3.09 hereof or this Section 4.10 by virtue of such
      compliance.

     

    Section 4.11  Transactions
      with Affiliates. 

     

    (a)  The
      Company will not, and will not permit any of its Restricted Subsidiaries to,
      make any payment to, or sell, lease, transfer or otherwise dispose of any of
      its
      properties or assets to, or purchase any property or assets from, or enter
      into
      or make or amend any transaction, contract, agreement, understanding, loan,
      advance or guarantee with, or for the benefit of, any Affiliate of the Company
      (each an “Affiliate
      Transaction”),
      unless: 

     

    (1)  the
      Affiliate Transaction is on terms that are no less favorable to the Company
      or
      the relevant Restricted Subsidiary than those that would have been obtained
      in a
      comparable transaction by the Company or such Restricted Subsidiary with an
      unrelated Person; and

     

    (2)  the
      Company delivers to the Trustee:

     

    (A)  with
      respect to any Affiliate Transaction or series of related Affiliate Transactions
      involving aggregate consideration in excess of US$5.0 million, a resolution
      of
      the Board of Directors of the Company set forth in an Officers’ Certificate
      certifying that such Affiliate Transaction complies with clause (1) of this
      Section 4.11(a) and, if an opinion meeting the requirements set forth in clause
      (b) below has not been obtained, that such Affiliate Transaction has been
      approved by a majority of the members of the Board of Directors of the Company
      who have no direct financial interest in such Affiliate Transaction (other
      than
      as a stockholder of the Company and the Guarantor); 

     

    (B)  with
      respect to (x) any Affiliate Transaction or series of related Affiliate
      Transactions involving aggregate consideration in excess of US$20.0 million,
      (y)
      an Affiliate Transaction or series of related Affiliate Transactions involving
      aggregate consideration in excess of US$5.0 million where none of the members
      of
      the Board of Directors qualify as having no direct financial interest in such
      Affiliate Transaction (other than as a stockholder of the Company), an opinion
      as to the fairness to the Company or such Subsidiary of such Affiliate
      Transaction from a financial point of view issued by an accounting, appraisal
      or
      investment banking firm of national standing in the United States or
      Canada.

     

    
      
        
        

      

      
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    (b)  The
      following items will not be deemed to be Affiliate Transactions and, therefore,
      will not be subject to the provisions of Section 4.11(a) hereof:

     

    (1)  Any
      transaction by the Company or any Restricted Subsidiary with an Affiliate
      related to the purchase, sale or distribution of products in the ordinary course
      of business, which as been approved by a majority of the members of the Board
      of
      Directors who are disinterested with respect to such transaction;

     

    (2)  any
      employment agreement, employee benefit plan, officer or director indemnification
      agreement or any similar arrangement entered into by the Company or any of
      its
      Restricted Subsidiaries in the ordinary course of business and payments pursuant
      thereto;

     

    (3)  transactions
      between or among the Company and/or its Restricted Subsidiaries;

     

    (4)  transactions
      with a Person (other than an Unrestricted Subsidiary of the Company) that is
      an
      Affiliate of the Company solely because the Company owns, directly or through
      a
      Restricted Subsidiary, an Equity Interest in, or controls, such
      Person;

     

    (5)  payment
      of reasonable compensation or fees to directors or officers of the Company
      and
      its Subsidiaries;

     

    (6)  any
      sale
      or issuance of Equity Interests (other than Disqualified Stock) of the Company
      to Affiliates of the Company; 

     

    (7)  Restricted
      Payments that do not violate Section 4.07 hereof; and

     

    (8)  transactions
      or agreements in existence on the date of this Indenture, including pursuant
      to
      the Operating Documents (and extensions or amendments thereof on terms which
      are
      not materially less favorable to the Company than the terms of any such
      transaction or agreement as in existence on the date of this
      Indenture).

     

    In
      addition, arms length transactions with XM Satellite Radio Holdings, Inc. and
      General Motors of Canada Limited, and any of their respective affiliates,
      undertaken in the ordinary course of business will not be subject to provisions
      of Section 4.11(a)(2)(B) set forth above.

     

    Section 4.12  Liens. 

     

    The
      Company will not, and will not permit any of its Restricted Subsidiaries to,
      directly or indirectly create, incur, assume or suffer to exist any Lien of
      any
      kind securing Indebtedness on any asset now owned or hereafter acquired, except
      Permitted Liens.

     

    Section 4.13  Business
      Activities. 

     

    The
      Company will not, and will not permit any of its Restricted Subsidiaries to,
      engage in any business other than Permitted Businesses, except to such extent
      as
      would not be material to the Company and its Restricted Subsidiaries taken
      as a
      whole.

     

    Section 4.14  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:

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

    (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 Notes. 

     

    Section 4.15  Offer
      to Repurchase Upon Change of Control. 

     

    (a)  Upon
      the
      occurrence of a Change of Control, the Company will make an offer (a
“Change
      of Control Offer”)
      to each
      Holder to repurchase all or any part (equal to a minimum of US$1,000 or an
      integral multiple of US$1,000) of that Holder’s Notes at a purchase price in
      cash equal to 101% of the aggregate principal amount of Notes repurchased plus
      accrued and unpaid interest and Liquidated Damages, if any, on the Notes
      repurchased to the date of purchase, subject to the rights of Holders on the
      relevant record date to receive interest due on the relevant interest payment
      date the (“Change
      of Control Payment”).
      Within
      30 days following any Change of Control, the Company will mail a notice to
      each
      Holder describing the transaction or transactions that constitute the Change
      of
      Control and stating:

     

    (1)  that
      the
      Change of Control Offer is being made pursuant to this Section 4.15 and that
      all
      Notes tendered will be accepted for payment; 

     

    (2)  the
      purchase price and the purchase date, which shall be no earlier than 10 days
      and
      no later than 60 days from the date such notice is mailed (the “Change
      of Control Payment Date”);
      

     

    (3)  that
      any
      Note not tendered will continue to accrue interest; 

     

    (4)  that,
      unless the Company defaults in the payment of the Change of Control Payment,
      all
      Notes accepted for payment pursuant to the Change of Control Offer will cease
      to
      accrue interest after the Change of Control Payment Date;

     

    (5)  that
      Holders electing to have any Notes purchased pursuant to a Change of Control
      Offer will be required to surrender the Notes, with the form entitled “Option of
      Holder to Elect Purchase” attached to the Notes completed, or transfer by
      book-entry transfer, to the Paying Agent at the address specified in the notice
      prior to the close of business on the third Business Day preceding the Change
      of
      Control Payment Date;

     

    (6)  that
      Holders will be entitled to withdraw their election if the Paying Agent
      receives, not later than the close of business on the second Business Day
      preceding the Change of Control Payment Date, a telegram, telex, facsimile
      transmission or letter setting forth the name of the Holder, the principal
      amount of Notes delivered for purchase, and a statement that such Holder is
      withdrawing his election to have the Notes purchased; and

     

    (7)  that
      Holders whose Notes are being purchased only in part will be issued new Notes
      equal in principal amount to the unpurchased portion of the Notes surrendered,
      which unpurchased portion must be equal to $1,000 in principal amount or an
      integral multiple thereof.

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

    The
      Company will comply with the requirements of Rule 14e-1 under the Exchange
      Act
      and any other securities laws and regulations thereunder to the extent those
      laws and regulations are applicable in connection with the repurchase of the
      Notes as a result of a Change in Control. To the extent that the provisions
      of
      any securities laws or regulations conflict with the provisions of Sections
      3.09
      or 4.15 hereof, the Company will comply with the applicable securities laws
      and
      regulations and will not be deemed to have breached its obligations under
      Section 3.09 hereof or this Section 4.15 by virtue of such
      compliance.

     

    (b)  On
      the
      Change of Control Payment Date, the Company will, to the extent
      lawful:

     

    (1)  accept
      for payment all Notes or portions of Notes properly tendered pursuant to the
      Change of Control Offer;

     

    (2)  deposit
      with the Paying Agent an amount equal to the Change of Control Payment in
      respect of all Notes or portions of Notes properly tendered; and

     

    (3)  deliver
      or cause to be delivered to the Trustee the Notes properly accepted together
      with an Officers’ Certificate stating the aggregate principal amount of Notes or
      portions of Notes being purchased by the Company.

     

    The
      Paying Agent will promptly mail (but in any case not later than five days after
      the Change of Control Payment Date) to each Holder of Notes properly tendered
      the Change of Control Payment for such Notes, and the Trustee will promptly
      authenticate and mail (or cause to be transferred by book entry) to each Holder
      a new Note equal in principal amount to any unpurchased portion of the Notes
      surrendered, if any. The Company will publicly announce the results of the
      Change of Control Offer on or as soon as practicable after the Change of Control
      Payment Date.

     

    (c)  Notwithstanding
      anything to the contrary in this Section 4.15, the Company will not be required
      to make a Change of Control Offer upon a Change of Control if (1) a third party
      makes the Change of Control Offer in the manner, at the times and otherwise
      in
      compliance with the requirements set forth in this Section 4.15 and Section
      3.09
      hereof and purchases all Notes properly tendered and not withdrawn under the
      Change of Control Offer, or (2) notice of redemption has been given pursuant
      to
      Section 3.07 hereof, unless and until there is a default in payment of the
      applicable redemption price.

     

    Section 4.16  Limitation
      on Sale and Leaseback Transactions. 

     

    The
      Company will not, and will not permit any of its Restricted Subsidiaries to,
      enter into any sale and leaseback transaction; provided
      that the
      Company and any Guarantor may enter into a sale and leaseback transaction
      if:

     

    (1)  the
      Company or that Guarantor, as applicable, could have (a) incurred Indebtedness
      in an amount equal to the Attributable Debt relating to such sale and leaseback
      transaction under the Consolidated Leverage Ratio test in Section 4.09(a) hereof
      and (b) incurred a Lien to secure such Indebtedness pursuant to the provisions
      of Section 4.12 hereof; and

     

    (2)  the
      transfer of assets in that sale and leaseback transaction is permitted by,
      and
      the Company applies the proceeds of such transaction in compliance with, Section
      4.10 hereof.

     

    
      
        
        

      

      
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    Section 4.17  Payments
      for Consent. 

     

    The
      Company will not, and will not permit any of its Restricted Subsidiaries to,
      directly or indirectly, pay or cause to be paid any consideration to or for
      the
      benefit of any Holder of Notes for or as an inducement to any consent, waiver
      or
      amendment of any of the terms or provisions of this Indenture or the Notes
      unless such consideration is offered to be paid and is paid to all Holders
      of
      the Notes that consent, waive or agree to amend in the time frame set forth
      in
      the solicitation documents relating to such consent, waiver or
      agreement.

     

    Section 4.18  Additional
      Note Guarantees. 

     

    If
      the
      Company or any of its Restricted Subsidiaries acquires or creates another
      Restricted Subsidiary after the date of this Indenture, then that newly acquired
      or created Restricted Subsidiary will become a Guarantor and execute a
      supplemental indenture in form and substance satisfactory to the Trustee and
      deliver an Opinion of Counsel to the Trustee to the effect that such
      supplemental indenture has been duly authorized, executed and delivered by
      that
      Restricted Subsidiary and constitutes a legal, valid, binding and enforceable
      obligation of that Domestic Subsidiary, within 10 business days of the date
      on
      which it was acquired or created; provided
      that
      any
      Restricted Subsidiary that constitutes an Immaterial Subsidiary need not become
      a Guarantor until such time as it ceases to be an Immaterial Subsidiary. The
      form of such Note Guarantee is attached as Exhibit E hereto. 

     

    Section 4.19  Designation
      of Restricted and Unrestricted Subsidiaries.

     

    The
      Board
      of Directors of the Company may designate any Restricted Subsidiary to be an
      Unrestricted Subsidiary if that designation would not cause a Default. If a
      Restricted Subsidiary is designated as an Unrestricted Subsidiary, the aggregate
      Fair Market Value of all outstanding Investments owned by the Company and its
      Restricted Subsidiaries in the Subsidiary designated as Unrestricted will be
      deemed to be an Investment made as of the time of the designation and will
      reduce the amount available for Restricted Payments under Section 4.07 hereof
      or
      under one or more clauses of the definition of Permitted Investments, as
      determined by the Company. That designation will only be permitted if the
      Investment would be permitted at that time and if the Restricted Subsidiary
      otherwise meets the definition of an Unrestricted Subsidiary. The Board of
      Directors of the Company may redesignate any Unrestricted Subsidiary to be
      a
      Restricted Subsidiary if that redesignation would not cause a
      Default.

     

    Any
      designation of a Subsidiary of the Company as an Unrestricted Subsidiary will
      be
      evidenced to the Trustee by filing with the Trustee a certified copy of a
      resolution of the Board of Directors giving effect to such designation and
      an
      Officers’ Certificate certifying that such designation complied with the
      preceding conditions and was permitted by Section 4.07 hereof. If, at any time,
      any Unrestricted Subsidiary would fail to meet the preceding requirements as
      an
      Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted
      Subsidiary for purposes of this Indenture and any Indebtedness of such
      Subsidiary will be deemed to be incurred by a Restricted Subsidiary of the
      Company as of such date and, if such Indebtedness is not permitted to be
      incurred as of such date under Section 4.09 hereof, the Company will be in
      default of such covenant. The Board of Directors of the Company may at any
      time
      designate any Unrestricted Subsidiary to be a Restricted Subsidiary of the
      Company; provided
      that
      such
      designation will be deemed to be an incurrence of Indebtedness by a Restricted
      Subsidiary of the Company of any outstanding Indebtedness of such Unrestricted
      Subsidiary and such designation will only be permitted if (1) such Indebtedness
      is permitted under Section 4.09 hereof, calculated on a pro forma basis as
      if
      such designation had occurred at the beginning of the two-quarter reference
      period; and (2) no Default or Event of Default would be in existence following
      such designation.

     

    
      
        
        

      

      
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    Section 4.20  Payment
      of Additional Amounts

     

    (a)  All
      amounts paid or credited by the Company under or with respect to the Notes,
      or
      by any Guarantor pursuant to the Guarantees, will be made free and clear of
      and
      without withholding or deduction for or on account of any present or future
      tax,
      duty, levy, impost, assessment or other governmental charge (including
      penalties, interest and other liabilities or expenses related thereto)
      (hereinafter, “Taxes”)
      imposed or levied by or on behalf of the Government of Canada or the United
      States or of any province, territory, state or other political subdivision
      thereof or by any authority or agency therein or thereof having power to tax
      (each, a “Relevant
      Taxing Jurisdiction”),
      unless the Company or such Guarantor, as the case may be, is required to
      withhold or deduct any amount for or on account of Taxes by law or by the
      interpretation or administration thereof. If the Company or any Guarantor is
      required to withhold or deduct any amount for or on account of any such Taxes
      from any amount paid or credited under or with respect to the Notes or the
      Guarantees, the Company or such Guarantor will pay such additional amounts
      (the
“Additional
      Amounts”)
      as may
      be necessary so that the net amount received by each owner of a beneficial
      interest in the Notes (an “owner”
for
      the
      purposes of this Section 4.20) (including Additional Amounts) after such
      withholding or deduction (including any withholding or deduction in respect
      of
      Additional Amounts) will not be less than the amount such owner would have
      received if such Taxes had not been withheld or deducted; provided,
      however,
      that
      Additional Amounts will not be payable to an owner or Holder of Notes with
      respect to any Taxes to the extent such Taxes (“Excluded
      Taxes”)
      would
      not have been imposed but for such owner or Holder being an owner or
      Holder:

     

    (1)  in
      the
      case of Canadian Taxes, with which the Company or such Guarantor does not deal
      at arm’s length (within the meaning of the Income Tax Act (Canada)) at the time
      of making a payment;

     

    (2)  which
      is
      subject to such Taxes by reason of such owner or Holder being connected with
      the
      Relevant Taxing Jurisdiction other than solely by reason of the mere acquisition
      or holding of Notes, the receipt of payments thereunder or the enforcement
      of
      the Holder’s or owner’s rights thereunder;

     

    (3)  which
      failed to duly and timely comply with a timely and reasonable request of the
      Company to provide information, documents, certification or other evidence
      concerning such owner’s or Holder’s nationality, residence, entitlement to
      treaty benefits, identity or connection with a Relevant Taxing Authority, but
      only if such owner or Holder is legally entitled to comply with such request
      and
      only to the extent that due and timely compliance with such request would have
      resulted in the reduction or elimination of the Taxes in question;
      or

     

    (4)  which
      is
      a fiduciary, a partnership or other Holder that is not the beneficial owner
      of a
      note, if and to the extent that any beneficiary or settlor of such fiduciary,
      any partner in such partnership or the beneficial owner of such note (as the
      case may be) would not have been entitled to receive Additional Amounts with
      respect to the payment in question if such beneficiary, settlor, partner or
      beneficial owner had been the Holder of such Note (but only if there is no
      material cost or expense associated with transferring such note to such
      beneficiary, settlor, partner or beneficial owner and no restriction on such
      transfer that is outside the control of such beneficiary, settlor, partner
      or
      beneficial owner).

     

    (b)  The
      Company or such Guarantor will also (a) make such withholding or deduction
      and
      (b) remit the full amount deducted or withheld to the relevant authority in
      accordance with and in the time required under applicable law.

     

    
      
        
        

      

      
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    (c)  The
      Company or the Guarantor will furnish the Holders of the Notes, within 30 days
      after the date the payment of any Taxes is due pursuant to applicable law,
      evidence of such payment by the Company or such Guarantor. The Company and
      the
      Guarantors will indemnify and hold harmless each Holder and owner from and
      against (x) any Taxes (other than Excluded Taxes) levied or imposed on such
      Holder or owner as a result of payments or credits made under or with respect
      to
      the Notes or the Guarantees, and (y) any Taxes (other than Excluded Taxes)
      so
      levied or imposed with respect to any indemnification payments under the
      foregoing clause (x) or this clause (y) such that the net amount received by
      such Holder or owner after such indemnification payments will not be less than
      the net amount the Holder or owner would have received if the Taxes described
      in
      clauses (x) and (y) above had not been imposed.

     

    (d)  At
      least
      30 days prior to each date on which any payment under or with respect to the
      Notes is due and payable, if the Company or any Guarantor will be obligated
      to
      pay Additional Amounts with respect to such payment, the Company or such
      Guarantor will deliver to the Trustee an Officer’s Certificate stating the fact
      that such Additional Amounts will be payable and the amounts so payable and
      will
      set forth such other information necessary to enable the Trustee to pay such
      Additional Amounts to Holders or owners on the payment date. Whenever in this
      Indenture or in this “Description of Notes” there is mentioned, in any context,
      the payment of principal, premium, if any, redemption price, Change of Control
      Payment, Asset Sale Offer purchase price, interest or any other amount payable
      under or with respect to any note, such mention shall be deemed to include
      mention of the payment of Additional Amounts or indemnification payments to
      the
      extent that, in such context, Additional Amounts or indemnification payments
      are, were or would be payable in respect thereof.

     

    (e)  The
      Company and the Guarantors will pay any present or future stamp, court,
      documentary or other excise or property Taxes, charges or similar levies that
      arise in any Relevant Taxing Jurisdiction from the execution, delivery or
      registration of, or enforcement of rights under, the Notes, this Indenture,
      any
      Guarantee or any related document (“Documentary
      Taxes”).

     

    (f)  The
      obligation to pay any Additional Amounts (and any associated indemnification
      payments) and Documentary Taxes under the terms and conditions described in
      this
      Section 4.20 will survive any termination, defeasance or discharge of this
      Indenture.

     

    ARTICLE 5 

    SUCCESSORS

     

    Section 5.01  Merger,
      Consolidation, or Sale of Assets.

     

    The
      Company shall not, directly or indirectly: (i) consolidate, amalgamate or merge
      with or into another Person (whether or not the Company is the surviving
      corporation); or (2) sell, assign, transfer, convey or otherwise dispose of
      all
      or substantially all of the properties or assets of the Company and its
      Restricted Subsidiaries taken as a whole, in one or more related transactions,
      to another Person, unless:

     

    (1)  either:

     

    (A)  the
      Company is the surviving corporation; or 

     

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

     

    
      
        
        

      

      
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    (2)  the
      Person formed by or surviving any such consolidation, amalgamation or merger
      (if
      other than the Company) or the Person to which such sale, assignment, transfer,
      conveyance or other disposition has been made assumes all the obligations of
      the
      Company under the Notes, this Indenture, the Registration Rights Agreement
      and
      the Interest Reserve and Security Agreement, pursuant to agreements reasonably
      satisfactory to the Trustee; 

     

    (3)  immediately
      after such transaction, no Default or Event of Default exists; and

     

    (4)  the
      Company or the Person formed by or surviving any such consolidation,
      amalgamation or merger (if other than the Company), or to which such sale,
      assignment, transfer, conveyance or other disposition has been made would,
      on
      the date of such transaction after giving pro forma effect thereto and any
      related financing transactions as if the same had occurred at the beginning
      of
      the applicable two-quarter period, either

     

    (A)  be
      permitted to incur at least US$1.00 of additional Indebtedness pursuant to
      the
      Consolidated Leverage Ratio test set forth in the Section 4.09(a) hereof;
      or

     

    (B)  have
      a
      Consolidated Leverage Ratio equal to or less than the Consolidated Leverage
      Ratio of the Company immediately preceding such transaction. 

     

    In
      addition, the Company will not, directly or indirectly, lease all or
      substantially all of the properties and assets of it and its Restricted
      Subsidiaries taken as a whole, in one or more related transactions, to any
      other
      Person.

     

    This
      Section 5.01 will not apply to:

     

    (1)  a
      merger
      of the Company with an Affiliate solely for the purpose of reincorporating
      the
      Company in another jurisdiction; or

     

    (2)  any
      consolidation, amalgamation or merger, or any sale, assignment, transfer,
      conveyance, lease or other disposition of assets between or among the Company
      and its Restricted Subsidiaries.

     

    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 properties or assets of
      the
      Company in a transaction that is subject to, and that complies with the
      provisions of, Section 5.01 hereof, the successor Person 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, assignment, transfer, lease, conveyance or other
      disposition, the provisions of this Indenture referring to the “Company” shall
      refer instead to the successor Person and not to the Company), and may exercise
      every right and power of the Company under this 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 Notes except in the case of a sale of all
      of
      the Company’s assets in a transaction that is subject to, and that complies with
      the provisions of, Section 5.01 hereof.

     

    
      
        
        

      

      
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    ARTICLE 6  

    DEFAULTS
      AND REMEDIES

     

    Section 6.01  Events
      of Default.

     

    Each
      of
      the following is an “Event
      of Default”:

     

    (1)  default
      for 30 days in the payment when due of interest on, or Liquidated Damages,
      if
      any, with respect to, the Notes;

     

    (2)  default
      in the payment when due (at maturity, upon redemption or otherwise) of the
      principal of, or premium, if any, on, the Notes;

     

    (3)  failure
      by the Company or any of its Restricted Subsidiaries to comply with the
      provisions of Sections 4.15, 4.20 or 5.01 hereof; 

     

    (4)  failure
      by the Company or any of its Restricted Subsidiaries for 60 days after notice
      to
      the Company by the Trustee or the Holders of at least 25% in aggregate principal
      amount of the Notes including any Additional Notes, if any then outstanding
      voting as a single class to comply with any of the other agreements in this
      Indenture or the Interest Reserve and Security Agreement or the Notes;

     

    (5)  default
      under any mortgage, indenture or instrument under which there may be issued
      or
      by which there may be secured or evidenced any Indebtedness for money borrowed
      by the Company or any of its Restricted Subsidiaries (or the payment of which
      is
      guaranteed by the Company or any of its Restricted Subsidiaries), whether such
      Indebtedness or Guarantee now exists, or is created after the date of this
      Indenture, if that default:

     

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

     

    (B)  results
      in the acceleration of such 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
      US$10.0 million or more;

     

    (6)  failure
      by the Company or any of its Restricted Subsidiaries to pay final non-appealable
      judgments for the payment of money entered by a court or courts of competent
      jurisdiction aggregating in excess of US$10.0 million, which judgments are
      not
      paid, discharged or stayed for a period of 60 days;

     

    (7)  the
      Company or any of its Restricted Subsidiaries that is a Significant Subsidiary
      or any group of Restricted Subsidiaries of the Company that, taken together,
      would constitute a Significant Subsidiary pursuant to or within the meaning
      of
      Bankruptcy Law:

     

    (A)  commences
      a voluntary case,

     

    
      
        
        

      

      
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    (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;

     

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

     

    (A)  is
      for
      relief against the Company or any of its Restricted Subsidiaries that is a
      Significant Subsidiary or any group of Restricted Subsidiaries of the Company
      that, taken together, would constitute a Significant Subsidiary in an
      involuntary case;

     

    (B)  appoints
      a custodian of the Company or any of its Restricted Subsidiaries that is a
      Significant Subsidiary or any group of Restricted Subsidiaries of the Company
      that, taken together, would constitute a Significant Subsidiary or for all
      or
      substantially all of the property of the Company or any of its Restricted
      Subsidiaries that is a Significant Subsidiary or any group of Restricted
      Subsidiaries of the Company that, taken together, would constitute a Significant
      Subsidiary; or

     

    (C)  orders
      the liquidation of the Company or any of its Restricted Subsidiaries that is
      a
      Significant Subsidiary or any group of Restricted Subsidiaries of the Company
      that, taken together, would constitute a Significant Subsidiary;

     

    and
      the
      order or decree remains unstayed and in effect for 60 consecutive days;
      or

     

    (9)  breach
      by
      the Company or any of its Restricted Subsidiaries of any material representation
      or warranty or agreement in the Interest Reserve and Security Agreement, the
      repudiation by the Company or any of its Restricted Subsidiaries of any of
      its
      obligations under the Interest Reserve and Security Agreement or the
      unenforceability of the Interest Reserve and Security Agreement against the
      Company or any of its Restricted Subsidiaries for any reason; 

     

    (10)  except
      as
      permitted by this Indenture, any Note Guarantee is held in any judicial
      proceeding to be unenforceable or invalid or ceases for any reason to be in
      full
      force and effect, or any Guarantor, or any Person acting on behalf of any
      Guarantor, denies or disaffirms its obligations under its Note
      Guarantee;

     

    (11)  failure
      by the Company to comply with any material term of the Interest Reserve
      Agreement that is not cured within 10 days; and

     

    (12)  the
      Interest Reserve and Security Agreement or any other securities document or
      Lien
      purported to be granted thereby on the interest reserve account or the case
      or
      Government Securities there is held in any judicial proceeding to be
      unenforceable or invalid, in whole or in part, or ceases for any reasons (other
      than pursuant to a release that is delivered or becomes effective as set forth
      in this Indenture) to be fully enforceable and perfected.

     

    
      
        
        

      

      
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    Section 6.02  Acceleration.

     

    In
      the
      case of an Event of Default specified in clause (7) or (8) of
      Section 6.01 hereof, with respect to the Company, any Restricted Subsidiary
      of
      the Company that is a Significant Subsidiary or any group of Restricted
      Subsidiaries of the Company that, taken together, would constitute a Significant
      Subsidiary, all outstanding Notes will become due and payable immediately
      without further action or notice. If any other Event of Default occurs and
      is
      continuing, the Trustee or the Holders of at least 25% in aggregate principal
      amount of the then outstanding Notes may declare all the Notes to be due and
      payable immediately.

     

    Upon
      any
      such declaration, the Notes shall become due and payable immediately.

     

    The
      Holders of a majority in aggregate principal amount of the then outstanding
      Notes 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 or Liquidated Damages,
      if
      any, that has become due solely because of the acceleration) have been cured
      or
      waived.

     

    If
      an
      Event of Default occurs on or after February 15, 2010 by reason of any willful
      action (or inaction) taken (or not taken) by or on behalf of the Company with
      the intention of avoiding payment of the premium that the Company would have
      had
      to pay if the Company then had elected to redeem the Notes pursuant to Section
      3.07 hereof, then, upon acceleration of the Notes, an equivalent premium shall
      also become and be immediately due and payable, to the extent permitted by
      law,
      anything in this Indenture or in the Notes to the contrary notwithstanding.
      If
      an Event of Default occurs prior to February 15, 2010 by reason of any willful
      action (or inaction) taken (or not taken) by or on behalf of the Company with
      the intention of avoiding the prohibition on redemption of the Notes prior
      to
      such date, then, upon acceleration of the Notes, an additional premium shall
      also become and be immediately due and payable, to the extent permitted by
      law,
      in an amount, for each of the years beginning on February 15 of the years set
      forth below, as set forth below (expressed as a percentage of the principal
      amount of the Notes on the date of payment that would otherwise be due but
      for
      the provisions of this sentence):

     

    
      	
              Year

            	 	
              Percentage

            	 
	
              2006

            	 	 	
              12.750
                

            	
              %

            
	
              2007

            	 	 	
              11.156

            	
              %

            
	
              2008

            	 	 	
              9.562

            	
              %

            
	
              2009

            	 	 	
              7.968

            	
              %

            

    

    

    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, premium and Liquidated Damages,
      if
      any, and interest on the Notes or to enforce the performance of any provision
      of
      the Notes or this Indenture.

     

    The
      Trustee may maintain a proceeding even if it does not possess any of the Notes
      or does not produce any of them in the proceeding. A delay or omission by the
      Trustee or any Holder of a Note 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.

     

    
      
        
        

      

      
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    Section 6.04  Waiver
      of Past Defaults.

     

    Holders
      of not less than a majority in aggregate principal amount of the then
      outstanding Notes by notice to the Trustee may on behalf of the Holders of
      all
      of the Notes 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 and Liquidated Damages, if any, or interest on, the Notes
      (including in connection with an offer to purchase); provided,
      however,
      that
      the Holders of a majority in aggregate principal amount of the then outstanding
      Notes 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 aggregate principal amount of the then outstanding Notes 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 Notes or that may involve the Trustee in
      personal liability.

     

    Section 6.06  Limitation
      on Suits.

     

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

     

    (1)  such
      Holder gives to the Trustee written notice that an Event of Default is
      continuing;

     

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

     

    (3)  such
      Holder or Holders offer and, if requested, provide to the Trustee security
      or
      indemnity reasonably 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 of security or indemnity; and

     

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

     

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

     

    Section 6.07  Rights
      of Holders of Notes to Receive Payment.

     

    Notwithstanding
      any other provision of this Indenture, the right of any Holder of a Note to
      receive payment of principal, premium and Liquidated Damages, if any, and
      interest on the Note, on or after the respective due dates expressed in the
      Note
      (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.

     

    
      
        
        

      

      
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    Section 6.08  Collection
      Suit by Trustee.

     

    If
      an
      Event of Default specified in Section 6.01(1) or (2) hereof 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 and Liquidated Damages, if any, and interest remaining
      unpaid on, the Notes 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
      Notes allowed in any judicial proceedings relative to the Company (or any other
      obligor upon the Notes), 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 Notes 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 6, 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, expenses and liabilities incurred, and
      all advances made, by the Trustee and the costs and expenses of
      collection;

     

    Second: to
      Holders of Notes for amounts due and unpaid on the Notes for principal, premium
      and Liquidated Damages, if any, and interest, ratably, without preference or
      priority of any kind, according to the amounts due and payable on the Notes
      for
      principal, premium and Liquidated Damages, 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
      Notes pursuant to this Section 6.10.

     

    
      
        
        

      

      
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    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 6.11 does not
      apply to any suit by the Trustee, any suit by a Holder of a Note pursuant to
      Section 6.07 hereof, or any suit by Holders of more than 10% in aggregate
      principal amount of the then outstanding Notes.

     

    ARTICLE 7

    TRUSTEE

     

    Section
      7.01  Duties
      of Trustee.

     

    (a)  If
      an
      Event of Default has occurred and is continuing, the Trustee will 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.

     

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

     

    (1)  the
      duties of the Trustee will 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 and no others, and no implied covenants
      or obligations shall be read into this Indenture against the Trustee;
      and

     

    (2)  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 will examine the
      certificates and opinions to determine whether or not they conform to the
      requirements of this Indenture (but need not confirm or investigate the accuracy
      of mathematical calculations or other facts stated therein).

     

    (c)  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:

     

    (1)  this
      paragraph does not limit the effect of paragraph (b) of this Section
      7.01;

     

    (2)  the
      Trustee will 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

     

    (3)  the
      Trustee will 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.

     

    Subparagraphs (c)(1),
      (2) and (3) shall be in lieu of Sections 315(d)(1), 315(d)(2) and 315(d)(3)
      of the TIA and such Sections 315(d)(1), 315(d)(2) and 315(d)(3) are hereby
      expressly excluded from this Indenture, as permitted by the TIA.

     

    
      
        
        

      

      
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    (d)  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 7.01.

     

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

     

    (f)  The
      Trustee will 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.

     

    Section 7.02  Rights
      of Trustee.

     

    (a)  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.

     

    (b)  Before
      the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel or both. The Trustee will 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 advice of such counsel or any Opinion of Counsel will 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.

     

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

     

    (d)  The
      Trustee will 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.

     

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

     

    (f)  The
      Trustee will 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 have offered to the Trustee reasonable indemnity or security
      against the losses, liabilities and expenses that might be incurred by it in
      compliance with such request or direction.

     

    (g)  The
      permissive rights of the Trustee to do things enumerated in this Indenture
      shall
      not be construed as a duty.

     

    Section
      7.03  Individual
      Rights of Trustee.

     

    The
      Trustee in its individual or any other capacity may become the owner or pledgee
      of Notes 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
      (if this Indenture has been qualified under the TIA) 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.

     

    
      
        
        

      

      
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    Section
      7.04  Trustee’s
      Disclaimer.

     

    The
      Trustee will not be responsible for and makes no representation as to the
      validity or adequacy of this Indenture or the Notes, it shall not be accountable
      for the Company’s use of the proceeds from the Notes or any money paid to the
      Company or upon the Company’s direction under any provision of this Indenture,
      it will not be responsible for the use or application of any money received
      by
      any Paying Agent other than the Trustee, and it will not be responsible for
      any
      statement or recital herein or any statement in the Notes or any other document
      in connection with the sale of the Notes 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 actually
      known
      to the Trustee, the Trustee will mail to Holders of Notes a notice of the
      Default or Event of Default within 90 days after it occurs unless such Default
      or Event of Default shall have been cured or waived before the giving of such
      notice. Except in the case of a Default or Event of Default in payment of
      principal of, premium or Liquidated Damages, if any, or interest on, any Note,
      the Trustee may withhold the notice if and so long as a committee of its
      directors and/or Responsible Officers in good faith determines that withholding
      the notice is in the interests of the Holders of the Notes. The second sentence
      of this Section 7.05 shall be in lieu of the proviso to Section 315(b) of the
      TIA and such proviso is hereby expressly excluded from this Indenture, as
      permitted by the TIA.

     

    Section
      7.06  Reports
      by Trustee to Holders of the Notes.

     

    (a)  Within
      60
      days after each May 15 beginning with the May 15 following the date of this
      Indenture, and for so long as Notes remain outstanding, the Trustee will mail
      to
      the Holders of the Notes a brief report dated as of such reporting date that
      complies with TIA § 313(a) (but if no event described in TIA § 313(a)
      has occurred within the twelve months preceding the reporting date, no report
      need be transmitted). The Trustee also will comply with TIA § 313(b)(2).
      The Trustee will also transmit by mail all reports as required by TIA
§ 313(c).

     

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

     

    Section
      7.07  Compensation
      and Indemnity.

     

    (a)  The
      Company will pay to the Trustee from time to time reasonable compensation for
      its acceptance of this Indenture and services hereunder as shall be agreed
      to in
      writing between the Company and the Trustee. The Trustee’s compensation will not
      be limited by any law on compensation of a trustee of an express trust. The
      Company will 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 will include the reasonable
      compensation, disbursements and expenses of the Trustee’s agents and
      counsel.

     

    (b)  The
      Company and the Guarantors will jointly and severally indemnify the Trustee,
      or
      any predecessor Trustee, (and its officers, agents, directors and employees)
      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 and the Guarantors (including this Section 7.07) and
      defending itself against any claim (whether asserted by the Company, the
      Guarantors, 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 will notify the Company promptly of any claim for
      which it may seek indemnity. Failure by the Trustee to so notify the Company
      will not relieve the Company or any of the Guarantors of their obligations
      hereunder. The Company or such Guarantor will defend the claim and the Trustee
      will cooperate in the defense. The Trustee may have separate counsel and the
      Company will pay the reasonable fees and expenses of such counsel. Neither
      the
      Company nor any Guarantor need pay for any settlement made without its consent,
      which consent will not be unreasonably withheld.

     

    
      
        
        

      

      
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    (c)  The
      obligations of the Company and the Guarantors under this Section 7.07 will
      survive the satisfaction and discharge of this Indenture.

     

    (d)  To
      secure
      the Company’s and the Guarantors’ payment obligations in this Section 7.07, the
      Trustee will have a Lien prior to the Notes on all money or property held or
      collected by the Trustee, except that held in trust to pay principal and
      interest on particular Notes. Such Lien will survive the satisfaction and
      discharge of this Indenture.

     

    (e)  When
      the
      Trustee incurs expenses or renders services after an Event of Default specified
      in Section 6.01(7) or (8) 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.

     

    (f)  The
      Trustee will comply with the provisions of TIA § 313(b)(2) to the extent
      applicable.

     

    Section
      7.08  Replacement
      of Trustee.

     

    (a)  A
      resignation or removal of the Trustee and appointment of a successor Trustee
      will become effective only upon the successor Trustee’s acceptance of
      appointment as provided in this Section 7.08.

     

    (b)  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
      aggregate principal amount of the then outstanding Notes may 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.

     

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

     

    
      
        
        

      

      
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    (d)  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 aggregate principal amount of the then outstanding Notes may
      petition any court of competent jurisdiction for the appointment of a successor
      Trustee.

     

    (e)  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 hereof, such Holder may petition
      any court of competent jurisdiction for the removal of the Trustee and the
      appointment of a successor Trustee.

     

    (f)  A
      successor Trustee will deliver a written acceptance of its appointment to the
      retiring Trustee and to the Company. Thereupon, the resignation or removal
      of
      the retiring Trustee will become effective, and the successor Trustee will
      have
      all the rights, powers and duties of the Trustee under this Indenture. The
      successor Trustee will mail a notice of its succession to Holders. The retiring
      Trustee will 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 will
      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 will be the successor Trustee.

     

    Section
      7.10  Eligibility;
      Disqualification.

     

    There
      will 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 trust powers,
      that is subject to supervision or examination by federal or state authorities
      and that has a combined capital and surplus of at least $100.0 million as set
      forth in its most recent published annual report of condition.

     

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

     

    Section
      7.11  Preferential
      Collection of Claims Against Company.

     

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

     

    ARTICLE 8  

    LEGAL
      DEFEASANCE AND COVENANT DEFEASANCE

     

    Section
      8.01  Option
      to Effect Legal Defeasance or Covenant Defeasance.

     

    The
      Company may at any time, at the option of its Board of Directors evidenced
      by a
      resolution set forth in an Officers’ Certificate, elect to have either Section
      8.02 or 8.03 hereof be applied to all outstanding Notes upon compliance with
      the
      conditions set forth below in this Article 8.

     

    
      
        
        

      

      
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    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 and each of the Guarantors will, subject to the
      satisfaction of the conditions set forth in Section 8.04 hereof, be deemed
      to
      have been discharged from their obligations with respect to all outstanding
      Notes (including the Note Guarantees) on the date the conditions set forth
      below
      are satisfied (hereinafter, “Legal
      Defeasance”).
      For
      this purpose, Legal Defeasance means that the Company and the Guarantors will
      be
      deemed to have paid and discharged the entire Indebtedness represented by the
      outstanding Notes (including the Note Guarantees), which will 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 clauses (1) and (2) below,
      and
      to have satisfied all their other obligations under such Notes, the Note
      Guarantees 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 will survive until otherwise terminated
      or
      discharged hereunder:

     

    (1)  the
      rights of Holders of outstanding Notes to receive payments in respect of the
      principal of, or interest or premium and Liquidated Damages, if any, on, such
      Notes when such payments are due from the trust referred to in Section 8.04
      hereof;

     

    (2)  the
      Company’s obligations with respect to such Notes under Article 2 and Section
      4.02 hereof;

     

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

     

    (4)  this
      Article 8.

     

    Subject
      to compliance with this Article 8, 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 and each of the Guarantors will, subject to the
      satisfaction of the conditions set forth in Section 8.04 hereof, be released
      from each of their obligations under the covenants contained in Sections 4.07,
      4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.17, 4.18, 4.19 and 4.20 hereof
      and clause (4) of Section 5.01 hereof with respect to the outstanding Notes
      on
      and after the date the conditions set forth in Section 8.04 hereof are satisfied
      (hereinafter, “Covenant
      Defeasance”),
      and
      the Notes will 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 will
      continue to be deemed “outstanding” for all other purposes hereunder (it being
      understood that such Notes will not be deemed outstanding for accounting
      purposes). For this purpose, Covenant Defeasance means that, with respect to
      the
      outstanding Notes and Note Guarantees, the Company and the Guarantors may omit
      to comply with and will 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 will 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 Notes and Note Guarantees will be
      unaffected thereby. In addition, upon the Company’s exercise under Section 8.01
      hereof of the option applicable to this Section 8.03, subject to the
      satisfaction of the conditions set forth in Section 8.04 hereof, Sections
      [6.01(3) through 6.01(5)] hereof will not constitute Events of
      Default.

     

    
      
        
        

      

      
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    Section
      8.04  Conditions
      to Legal or Covenant Defeasance.

     

    In
      order
      to exercise either Legal Defeasance or Covenant Defeasance under either Section
      8.02 or 8.03 hereof:

     

    (1)  the
      Company must irrevocably deposit with the Trustee, in trust, for the benefit
      of
      the Holders, cash in U.S. dollars, non-callable Government Securities, or a
      combination thereof, in such amounts as will be sufficient, in the opinion
      of a
      nationally recognized investment bank in the United States or Canada, appraisal
      firm, or firm of independent public accountants, to pay the principal of,
      premium and Liquidated Damages, if any, and interest on, the outstanding Notes
      on the stated date for payment thereof or on the applicable redemption date,
      as
      the case may be, and the Company must specify whether the Notes are being
      defeased to such stated date for payment or to a particular redemption
      date;

     

    (2)  in
      the
      case of an election under Section 8.02 hereof, the Company must deliver to
      the
      Trustee an Opinion of Counsel 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 U.S. 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 Notes will not recognize income, gain
      or
      loss for U.S. federal income tax purposes as a result of such Legal Defeasance
      and will be subject to U.S. 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 must deliver to
      the
      Trustee an Opinion of Counsel confirming that the Holders of the outstanding
      Notes will not recognize income, gain or loss for U.S. federal income tax
      purposes as a result of such Covenant Defeasance and will be subject to U.S.
      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)  in
      the
      case of Legal Defeasance or Covenant Defeasance, the Company must deliver to
      the
      Trustee an Opinion of Counsel confirming that the Holders and beneficial owners
      of the outstanding Notes will not recognize income, gain or loss for Canadian
      federal, provincial, territorial income tax or other tax purposes as a result
      of
      such Legal Defeasance or Covenant Defeasance, as applicable, and will be subject
      to Canadian federal, provincial or territorial income tax and other tax on
      the
      same amounts, if any, in the same manner and at the same times as would have
      been the case if such Legal Defeasance or Covenant Defeasance, as the case
      may
      be, had not occurred (which condition may not be waived by any Holder of
      outstanding Notes or the Trustee);

     

    (5)  no
      Default or Event of Default shall have occurred and be continuing 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) and the deposit will not
      result in a breach or violation of, or constitute a default under, any other
      instrument to which the Company or any Guarantor is a party or by which the
      Company or any Guarantor is bound;

     

    
      
        
        

      

      
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    (6)  such
      Legal Defeasance or Covenant Defeasance will 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 or any of its Subsidiaries is a party
      or by which the Company or any of its Subsidiaries is bound;

     

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

     

    (8)  the
      Company must deliver to the Trustee an Officers’ Certificate and an Opinion of
      Counsel, each stating that all conditions precedent 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 Notes will be
      held
      in trust and applied by the Trustee, in accordance with the provisions of such
      Notes 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 Notes of all sums due and to become due
      thereon in respect of principal, premium and Liquidated Damages, if any, and
      interest, but such money need not be segregated from other funds except to
      the
      extent required by law.

     

    The
      Company will 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 Notes.

     

    Notwithstanding
      anything in this Article 8 to the contrary, the Trustee will 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(1) 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 or Liquidated Damages, if
      any, or interest on, any Note and remaining unclaimed for two years after such
      principal, premium or Liquidated Damages, 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) will be discharged from such trust; and the Holder of such Note will
      thereafter be permitted to 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, will 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 will
      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.

     

    
      
        
        

      

      
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    Section
      8.07  Reinstatement.

     

    If
      the
      Trustee or Paying Agent is unable to apply any U.S. 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 any court or governmental
      authority enjoining, restraining or otherwise prohibiting such application,
      then
      the Company’s and the Guarantors’ obligations under this Indenture and the Notes
      and the Note Guarantees will 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 or Liquidated Damages,
      if any, or interest on, any Note following the reinstatement of its obligations,
      the Company will be subrogated to the rights of the Holders of such Notes 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 Notes.

     

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

     

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

     

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

     

    (3)  to
      provide for the assumption of the Company’s or a Guarantor’s obligations to the
      Holders of the Notes and Note Guarantees by a successor to the Company or such
      Guarantor pursuant to Article 5 or Article 10 hereof;

     

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

     

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

     

    (6)  to
      conform the text of this Indenture, the Note Guarantees, the Interest Reserve
      and Security Agreement or the Notes to any provision of the “Description of
      Notes” section of the Company’s Offering Memorandum dated February 7, 2006,
      relating to the initial offering of the Notes, to the extent that such provision
      in that “Description of Notes” was intended to be a verbatim recitation of a
      provision of this Indenture, the Note Guarantees, the Interest and Security
      Agreement or the Notes;

     

    (7)  to
      provide for the issuance of Additional Notes in accordance with the limitations
      set forth in this Indenture as of the date hereof; or

     

    
      
        
        

      

      
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    (8)  to
      allow
      any Guarantor to execute a supplemental indenture and/or a Note Guarantee with
      respect to the Notes.

     

    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 will join with the Company and the Guarantors 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 will 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 Notes.

     

    Except
      as
      provided below in this Section 9.02, the Company and the Trustee may amend
      or
      supplement this Indenture (including, without limitation, Section 3.09, 4.10
      and
      4.15 hereof) and the Notes and the Note Guarantees with the consent of the
      Holders of at least a majority in aggregate principal amount of the then
      outstanding Notes (including, without limitation, Additional Notes, if any)
      voting as a single class (including, without limitation, consents obtained
      in
      connection with a tender offer or exchange offer for, or purchase of, the
      Notes), 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 or Liquidated Damages, if any, or interest on, the Notes,
      except a payment default resulting from an acceleration that has been rescinded)
      or compliance with any provision of this Indenture or the Notes or the Note
      Guarantees may be waived with the consent of the Holders of a majority in
      aggregate principal amount of the then outstanding Notes (including, without
      limitation, Additional Notes, if any) voting as a single class (including,
      without limitation, consents obtained in connection with a tender offer or
      exchange offer for, or purchase of, the Notes). Section
      2.08 hereof shall determine which Notes are considered to be “outstanding” for
      purposes of this Section 9.02.

     

    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 Notes as aforesaid, and upon receipt by the Trustee
      of
      the documents described in Section 7.02 hereof, the Trustee will join with
      the
      Company and the Guarantors 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 will not be obligated to,
      enter into such amended or supplemental Indenture.

     

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

     

    After
      an
      amendment, supplement or waiver under this Section 9.02 becomes effective,
      the
      Company will mail to the Holders of Notes affected thereby a notice briefly
      describing the amendment, supplement or waiver. Any failure of the Company
      to
      mail such notice, or any defect therein, will 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 Notes 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 Notes or the Note Guarantees. However, without the consent
      of each Holder affected, an amendment, supplement or waiver under this Section
      9.02 may not (with respect to any Notes held by a non-consenting
      Holder):

     

    
      
        
        

      

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

     

    (2)  reduce
      the principal of or change the fixed maturity of any Note or alter or waive
      any
      of the provisions with respect to the redemption of the Notes (except as
      provided above with respect to Sections 3.09, 4.10 and 4.15
      hereof);

     

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

     

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

     

    (5)  make
      any
      Note payable in money other than that stated in the Notes;

     

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

     

    (7)  waive
      a
      redemption payment with respect to any Note (other than a payment required
      by
      Sections 3.09, 4.10 or 4.15 hereof);

     

    (8)  release
      any Guarantor from any of its obligations under its Note Guarantee or this
      Indenture, except in accordance with the terms of this Indenture; 

     

    (9)  release
      any Interest Reserve Property as contemplated by the Interest Reserve and
      Security Agreement; or

     

    (10)  make
      any
      change in the preceding amendment and waiver provisions.

     

    Section
      9.03  Compliance
      with Trust Indenture Act.

     

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

     

    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 Note is a continuing consent by the Holder of a Note and every subsequent
      Holder of a Note or portion of a Note that evidences the same debt as the
      consenting Holder’s Note, even if notation of the consent is not made on any
      Note. However, any such Holder of a Note or subsequent Holder of a Note may
      revoke the consent as to its Note if the Trustee receives written notice of
      revocation before the date the amendment, supplement or waiver 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 Notes.

     

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

     

    
      
        
        

      

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

     

    Section
      9.06  Trustee
      to Sign Amendments, etc.

     

    The
      Trustee will sign any amended or supplemental indenture authorized pursuant
      to
      this Article 9 if the amendment or supplement does not adversely affect the
      rights, duties, liabilities or immunities of the Trustee. The Company may not
      sign an amended or supplemental indenture until the Board of Directors of the
      Company approves it. In executing any amended or supplemental indenture, the
      Trustee will be entitled to receive and (subject to Section 7.01 hereof) will
      be
      fully protected in relying upon, in addition to the documents required by
      Section 12.04 hereof, an Officers’ 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

    NOTE
      GUARANTEES

     

    Section
      10.01  Guarantee.

     

    (a)  Subject
      to this Article 10, each of the Guarantors hereby, jointly and severally,
      unconditionally guarantees to each Holder of a Note authenticated and delivered
      by the Trustee and to the Trustee and its successors and assigns, irrespective
      of the validity and enforceability of this Indenture, the Notes or the
      obligations of the Company hereunder or thereunder, that:

     

    (1)  
      the
      principal of, premium and Liquidated Damages, if any, and interest on, the
      Notes
      will be promptly paid in full when due, whether at maturity, by acceleration,
      redemption or otherwise, and interest on the overdue principal of and interest
      on the Notes, if any, if lawful, and all other obligations of the Company to
      the
      Holders or the Trustee hereunder or thereunder will be promptly paid in full
      or
      performed, all in accordance with the terms hereof and thereof; and

     

    (2)  in
      case
      of any extension of time of payment or renewal of any Notes or any of such
      other
      obligations, that same will be promptly paid in full when due or performed
      in
      accordance with the terms of the extension or renewal, whether at stated
      maturity, by acceleration or otherwise.

     

    Failing
      payment when due of any amount so guaranteed or any performance so guaranteed
      for whatever reason, the Guarantors will be jointly and severally obligated
      to
      pay the same immediately. Each Guarantor agrees that this is a guarantee of
      payment and not a guarantee of collection.

     

    (b)  The
      Guarantors hereby agree that their obligations hereunder are unconditional,
      irrespective of the validity, regularity or enforceability of the Notes or
      this
      Indenture, the absence of any action to enforce the same, any waiver or consent
      by any Holder of the Notes with respect to any provisions hereof or thereof,
      the
      recovery of any judgment against the Company, any action to enforce the same
      or
      any other circumstance which might otherwise constitute a legal or equitable
      discharge or defense of a Guarantor. Each Guarantor hereby waives diligence,
      presentment, demand of payment, filing of claims with a court in the event
      of
      insolvency or bankruptcy of the Company, any right to require a proceeding
      first
      against the Company, protest, notice and all demands whatsoever and covenant
      that this Note Guarantee will not be discharged except by complete performance
      of the obligations contained in the Notes and this Indenture.

     

    (c)  If
      any
      Holder or the Trustee is required by any court or otherwise to return to the
      Company, the Guarantors or any custodian, trustee, liquidator or other similar
      official acting in relation to either the Company or the Guarantors, any amount
      paid by either to the Trustee or such Holder, this Note Guarantee, to the extent
      theretofore discharged, will be reinstated in full force and
      effect.

     

    (d)  Each
      Guarantor agrees that it will not be entitled to any right of subrogation in
      relation to the Holders in respect of any obligations guaranteed hereby until
      payment in full of all obligations guaranteed hereby. Each Guarantor further
      agrees that, as between the Guarantors, on the one hand, and the Holders and
      the
      Trustee, on the other hand, (1) the maturity of the obligations guaranteed
      hereby may be accelerated as provided in Article 6 hereof for the purposes
      of
      this Note Guarantee, notwithstanding any stay, injunction or other prohibition
      preventing such acceleration in respect of the obligations guaranteed hereby,
      and (2) in the event of any declaration of acceleration of such obligations
      as
      provided in Article 6 hereof, such obligations (whether or not due and payable)
      will forthwith become due and payable by the Guarantors for the purpose of
      this
      Note Guarantee. The Guarantors will have the right to seek contribution from
      any
      non-paying Guarantor so long as the exercise of such right does not impair
      the
      rights of the Holders under the Note Guarantee.

     

    Section
      10.02  Limitation
      on Guarantor Liability.

     

    Each
      Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that
      it
      is the intention of all such parties that the Note Guarantee of such Guarantor
      not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy
      Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer
      Act
      or any similar federal or state law to the extent applicable to any Note
      Guarantee. To effectuate the foregoing intention, the Trustee, the Holders
      and
      the Guarantors hereby irrevocably agree that the obligations of such Guarantor
      will be limited to the maximum amount that will, after giving effect to such
      maximum amount and all other contingent and fixed liabilities of such Guarantor
      that are relevant under such laws, and after giving effect to any collections
      from, rights to receive contribution from or payments made by or on behalf
      of
      any other Guarantor in respect of the obligations of such other Guarantor under
      this Article 10, result in the obligations of such Guarantor under its Note
      Guarantee not constituting a fraudulent transfer or conveyance.

     

    Section
      10.03  Execution
      and Delivery of Note Guarantee.

     

    To
      evidence its Note Guarantee set forth in Section 10.01 hereof, each Guarantor
      hereby agrees that a notation of such Note Guarantee substantially in the form
      attached as Exhibit E hereto will be endorsed by an Officer of such Guarantor
      on
      each Note authenticated and delivered by the Trustee and that this Indenture
      will be executed on behalf of such Guarantor by one of its
      Officers.

     

    Each
      Guarantor hereby agrees that its Note Guarantee set forth in Section 10.01
      hereof will remain in full force and effect notwithstanding any failure to
      endorse on each Note a notation of such Note Guarantee.

     

    If
      an
      Officer whose signature is on this Indenture or on the Note Guarantee no longer
      holds that office at the time the Trustee authenticates the Note on which a
      Note
      Guarantee is endorsed, the Note Guarantee will be valid
      nevertheless.

     

    The
      delivery of any Note by the Trustee, after the authentication thereof hereunder,
      will constitute due delivery of the Note Guarantee set forth in this Indenture
      on behalf of the Guarantors.

     

    
      
        
        

      

      
        78

        
          

        

      

      
        
        

      

    

    In
      the
      event that the Company or any of its Restricted Subsidiaries creates or acquires
      any Domestic Subsidiary after the date of this Indenture, if required by Section
      4.18 hereof, the Company will cause such Domestic Subsidiary to comply with
      the
      provisions of Section 4.18 hereof and this Article 10, to the extent
      applicable.

     

    Section
      10.04  Guarantors
      May Consolidate, etc., on Certain Terms.

     

    Except
      as
      otherwise provided in Section 10.05 hereof, no Guarantor may sell or otherwise
      dispose of all or substantially all of its assets to, or consolidate with,
      amalgamate with or merge with or into (whether or not such Guarantor is the
      surviving Person) another Person, other than the Company or another Guarantor,
      unless:

     

    (1)  immediately
      after giving effect to such transaction, no Default or Event of Default exists;
      and

     

    (2)  either:

     

    (a)  subject
      to Section 10.05 hereof, the Person acquiring the property in any such sale
      or
      disposition or the Person formed by or surviving any such consolidation or
      merger unconditionally assumes all the obligations of that Guarantor under
      this
      Indenture, its Note Guarantee, the Registration Rights Agreement and the
      Interest Reserve and Security Agreement on the terms set forth herein or
      therein, pursuant to a supplemental indenture in form and substance reasonably
      satisfactory to the Trustee; or

     

    (b)  the
      Net
      Proceeds of such sale or other disposition are applied in accordance with the
      applicable provisions of this Indenture, including without limitation, Section
      4.10 hereof.

     

    In
      case
      of any such consolidation, merger, sale, amalgamation or conveyance and upon
      the
      assumption by the successor Person, by supplemental indenture, executed and
      delivered to the Trustee and satisfactory in form to the Trustee, of the Note
      Guarantee endorsed upon the Notes and the due and punctual performance of all
      of
      the covenants and conditions of this Indenture to be performed by the Guarantor,
      such successor Person will succeed to and be substituted for the Guarantor
      with
      the same effect as if it had been named herein as a Guarantor. Such successor
      Person thereupon may cause to be signed any or all of the Note Guarantees to
      be
      endorsed upon all of the Notes issuable hereunder which theretofore shall not
      have been signed by the Company and delivered to the Trustee. All the Note
      Guarantees so issued will in all respects have the same legal rank and benefit
      under this Indenture as the Note Guarantees theretofore and thereafter issued
      in
      accordance with the terms of this Indenture as though all of such Note
      Guarantees had been issued at the date of the execution hereof.

     

    Except
      as
      set forth in Articles 4 and 5 hereof, and notwithstanding clauses 2(a) and
      (b)
      above, nothing contained in this Indenture or in any of the Notes will prevent
      any consolidation or merger of a Guarantor with or into the Company or another
      Guarantor, or will prevent any sale or conveyance of the property of a Guarantor
      as an entirety or substantially as an entirety to the Company or another
      Guarantor.

     

    Section
      10.05  Releases.

     

    (a) In
      the
      event of any sale or other disposition of all or substantially all of the assets
      of any Guarantor, by way of merger, consolidation or otherwise, or a sale or
      other disposition of all of the Capital Stock of any Guarantor, in each case
      to
      a Person that is not (either before or after giving effect to such transactions)
      the Company or a Restricted Subsidiary of the Company, then such Guarantor
      (in
      the event of a sale or other disposition, by way of merger, consolidation or
      otherwise, of all of the Capital Stock of such Guarantor) or the corporation
      acquiring the property (in the event of a sale or other disposition of all
      or
      substantially all of the assets of such Guarantor) will be released and relieved
      of any obligations under its Note Guarantee; provided
      that the
      Net Proceeds of such sale or other disposition are applied in accordance with
      the applicable provisions of this Indenture, including without limitation
      Section 4.10 hereof. Upon delivery by the Company to the Trustee of an Officers’
Certificate and an Opinion of Counsel to the effect that such sale or other
      disposition was made by the Company in accordance with the provisions of this
      Indenture, including without limitation Section 4.10 hereof, the Trustee will
      execute any documents reasonably required in order to evidence the release
      of
      any Guarantor from its obligations under its Note Guarantee.

     

    
      
        
        

      

      
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    (b) Upon
      designation of any Guarantor as an Unrestricted Subsidiary in accordance with
      the terms of this Indenture, such Guarantor will be released and relieved of
      any
      obligations under its Note Guarantee.

     

    (c) Upon
      Legal Defeasance in accordance with Article 8 hereof or satisfaction and
      discharge of this Indenture in accordance with Article 11 hereof, each Guarantor
      will be released and relieved of any obligations under its Note
      Guarantee.

     

    Any
      Guarantor not released from its obligations under its Note Guarantee as provided
      in this Section 10.05 will remain liable for the full amount of principal of
      and
      interest and premium and Liquidated Damages, if any, on the Notes and for the
      other obligations of any Guarantor under this Indenture as provided in this
      Article 10.

     

    ARTICLE 11

    SATISFACTION
      AND DISCHARGE

     

    Section
      11.01   Satisfaction
      and Discharge.

     

    This
      Indenture will be discharged and will cease to be of further effect as to all
      Notes issued hereunder, when:

     

    (1)  either:

     

    (a)  all
      Notes
      that have been authenticated, except lost, stolen or destroyed Notes that have
      been replaced or paid and Notes for whose payment money has theretofore been
      deposited in trust and thereafter repaid to the Company, have been delivered
      to
      the Trustee for cancellation; or

     

    (b)  all
      Notes
      that have not been delivered to the Trustee for cancellation have become due
      and
      payable by reason of the mailing of a notice of redemption or otherwise or
      will
      become due and payable within one year and the Company or any Guarantor has
      irrevocably deposited or caused to be deposited with the Trustee as trust funds
      in trust solely for the benefit of the Holders, cash in U.S. dollars,
      non-callable Government Securities, or a combination thereof, in such amounts
      as
      will be sufficient, without consideration of any reinvestment of interest,
      to
      pay and discharge the entire Indebtedness on the Notes not delivered to the
      Trustee for cancellation for principal, premium and Liquidated Damages, if
      any,
      and accrued interest to the date of maturity or redemption;

     

    (2)  no
      Default or Event of Default has occurred and is continuing 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) and the deposit will not result in
      a
      breach or violation of, or constitute a default under, any other instrument
      to
      which the Company or any Guarantor is a party or by which the Company or any
      Guarantor is bound;

     

    
      
        
        

      

      
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    (3)  the
      Company or any Guarantor has paid or caused to be paid all sums payable by
      it
      under this Indenture; and

     

    (4)  the
      Company has delivered irrevocable instructions to the Trustee under this
      Indenture to apply the deposited money toward the payment of the Notes at
      maturity or on the redemption date, as the case may be.

     

    In
      addition, the Company must deliver an Officers’ Certificate and an Opinion of
      Counsel to the Trustee stating that all conditions precedent to satisfaction
      and
      discharge have been satisfied.

     

    Notwithstanding
      the satisfaction and discharge of this Indenture, if money has been deposited
      with the Trustee pursuant to subclause (b) of clause (1) of this Section 11.01,
      the provisions of Sections 11.02 and 8.06 hereof will survive. In addition,
      nothing in this Section 11.01 will be deemed to discharge those provisions
      of
      Section 7.07 hereof, that, by their terms, survive the satisfaction and
      discharge of this Indenture.

     

    Section
      11.02   Application
      of Trust Money.

     

    Subject
      to the provisions of Section 8.06 hereof, all money deposited with the Trustee
      pursuant to Section 11.01 hereof shall be held in trust and applied by it,
      in
      accordance with the provisions of the Notes and this Indenture, to the payment,
      either directly or through any Paying Agent (including the Company acting as
      its
      own Paying Agent) as the Trustee may determine, to the Persons entitled thereto,
      of the principal (and premium and Liquidated Damages, if any) and interest
      for
      whose payment such money has been deposited with the Trustee; but such money
      need not be segregated from other funds except to the extent required by
      law.

     

    If
      the
      Trustee or Paying Agent is unable to apply any money or Government Securities
      in
      accordance with Section 11.01 hereof by reason of any legal proceeding or by
      reason of any order or judgment of any court or governmental authority
      enjoining, restraining or otherwise prohibiting such application, the Company’s
      and any Guarantor’s obligations under this Indenture and the Notes shall be
      revived and reinstated as though no deposit had occurred pursuant to Section
      11.01 hereof; provided
      that if
      the Company has made any payment of principal of, premium or Liquidated Damages,
      if any, or interest on, any Notes because of the reinstatement of its
      obligations, the Company shall be subrogated to the rights of the Holders of
      such Notes to receive such payment from the money or Government Securities
      held
      by the Trustee or Paying Agent.

     

    ARTICLE 12

    MISCELLANEOUS

     

    Section
      12.01   Trust
      Indenture Act Controls.

     

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

     

    Section
      12.02   Notices.

     

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

     

    
      
        
        

      

      
        81

        
          

        

      

      
        
        

      

    

    If
      to the
      Company and/or any Guarantor:

     

    

     

    Canadian
      Satellite Radio Holdings Inc.

    Suite
      2300, Canada Trust Tower

    BCE
      Place, 161 Bay Street

    Toronto,
      Ontario M5J 2S1

    Canada

    Facsimile
      No.: (416) 361-6018

    Attention:
      Chief Financial Officer

     

    With
      a
      copy to:

     

    Stikeman
      Elliott LLP

    5300
      Commerce Court West

    199
      Bay
      Street

    Toronto,
      Ontario M5L 1B9

    Canada

    Facsimile
      No.: (416) 947-0866

    Attention:
      Dee Rajpal

     

    If
      to the
      Trustee:

    The
      Bank
      of Nova Scotia Trust Company of New York

    One
      Liberty Plaza 

    New
      York,
      New York 10006

    Facsimile
      No.: (212) 225-5436

    Attention:
      Corporate Trust Administration

    

    The
      Company, any Guarantor 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) will 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 receipt acknowledged, if transmitted by facsimile; 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 will 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 will also be so mailed to any Person
      described in TIA § 313(c), to the extent required by the TIA. Failure to
      mail a notice or communication to a Holder or any defect in it will 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 will mail a copy to
      the
      Trustee and each Agent at the same time.

     

    
      
        
        

      

      
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    Section
      12.03   Communication
      by Holders of Notes with Other Holders of Notes.

     

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

     

    Section
      12.04   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 must include the statements set forth in Section 12.05 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 must include the statements set forth in Section 12.05 hereof) stating
      that, in the opinion of such counsel, all such conditions precedent and
      covenants have been satisfied.

     

    Section
      12.05   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 § 314(a)(4)) must comply with the provisions of TIA § 314(e) and
      must 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 or her 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
      12.06  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.

     

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

     

    No
      past,
      present or future director, officer, employee, incorporator or stockholder
      of
      the Company or any Guarantor, as such, will have any liability for any
      obligations of the Company or the Guarantors under the Notes, this Indenture,
      the Note Guarantees, the Interest Reserve and Security Agreement or for any
      claim based on, in respect of, or by reason of, such obligations or their
      creation. Each Holder of Notes by accepting a Note waives and releases all
      such
      liability. The waiver and release are part of the consideration for issuance
      of
      the Notes. The waiver may not be effective to waive liabilities under the
      federal securities laws.

     

    
      
        
        

      

      
        83

        
          

        

      

      
        
        

      

    

    Section
      12.08  Governing
      Law.

     

    THE
      INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS
      INDENTURE, THE NOTES AND THE NOTE GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE
      PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
      OF
      ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     

    Section
      12.09  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
      12.10  Successors.

     

    All
      agreements of the Company in this Indenture and the Notes will bind its
      successors. All agreements of the Trustee in this Indenture will bind its
      successors. All agreements of each Guarantor in this Indenture will bind its
      successors, except as otherwise provided in Section 10.05 hereof.

     

    Section
      12.11  Severability.

     

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

     

    Section
      12.12  Counterpart
      Originals.

     

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

     

    Section
      12.13  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 will in no way modify or restrict
      any
      of the terms or provisions hereof.

     

    Section
      12.14  Consent
      to Jurisdiction

     

    Each
      of
      the Company and the Guarantors irrevocably agree that any legal suit, action
      or
      proceeding arising out of or based upon this Indenture or the transactions
      contemplated hereby (“Related
      Proceedings”)
      may be
      instituted in the federal courts of the United States of America located in
      the
      City of New York or the courts of the State of New York in each case located
      in
      the Borough of Manhattan in the City of New York (collectively, the
“Specified
      Courts”),
      and
      irrevocably submits to the exclusive jurisdiction (except for proceedings
      instituted in regard to the enforcement of a judgment of any such court (a
      “Related
      Judgment”),
      as to
      which such jurisdiction is non-exclusive) of such courts in any such suit,
      action or proceeding. The Company and the Guarantors further agree that service
      of any process, summons, notice or document by mail to such party’s address set
      forth above shall be  effective  service o f process  for any
      lawsuit, action or other proceeding brought  in any such  court.
      The Company and the Guarantors hereby irrevocably and unconditionally

     

    
      
        
        

      

      
        84

        
          

        

      

      
        
        

      

       

      waive
        any
        objection to the laying of venue of any lawsuit, action or other proceeding
        in
        the Specified Courts, and hereby further irrevocably and unconditionally
        waive
        and agree not to plead or claim in any such court that any such lawsuit,
        action
        or other proceeding brought in any such court has been brought in an
        inconvenient forum. Each of the Company and the Guarantors not located in
        the
        United States hereby irrevocably appoints CT Corporation System of New York,
        New
        York, which currently maintains a New York City office at 111 Eighth Avenue,
        New
        York, New York 10011, United States of America, as its authorized agent (the
        “Authorized
        Agent”)
        to
        receive service of process or other legal summons for purposes of any such
        action or proceeding that may be instituted in any state or federal court
        in the
        City and State of New York. The Company and each of the Guarantors agree
        that
        service of process upon the Authorized Agent and written notice of such service
        to the Company shall be deemed, in every respect, effective service of process
        upon the Company and/or the Guarantors, as the case may be.

    

     

     

    Section
      12.15  Obligation
      Currency

     

    The
      obligation of the Company or the Guarantors in respect of any sum due to any
      Holder shall, notwithstanding any judgment in a currency other than U.S.
      dollars, not be discharged until the first Business Day, following receipt
      by
      such Holder of any sum adjudged to be so due in such other currency, on which
      (and only to the extent that) such Holder may in accordance with normal banking
      procedures purchase U.S. dollars with such other currency; if the U.S. dollars
      so purchased are less than the sum originally due to such Holder hereunder,
      the
      Company and the Guarantors agree, as a separate obligation and notwithstanding
      any such judgment, to indemnify such Holder against such loss. 

     

    [Signature
      Pages Follow]

     

    

    
      
        
           

        

        
        

      

      
        85

        
          

        

      

      
        
        

        
        

      

    

    SIGNATURES

     

    Dated
      as
      of February 10, 2006

     

    CANADIAN
      SATELLITE RADIO HOLDINGS INC.

     

    By: /s/
      Michael Washinushi

    
      
        

      

    

    Name:
      Michael Washinushi

     

    Title:
      Chief Financial Officer

     

    CANADIAN
      SATELLITE RADIO INC.

     

    By: /s/
      Michael Washinushi

    
      

    

    Name:
      Michael Washinushi

     

    Title:
      Chief Financial Officer

     

    THE
      BANK
      OF NOVA SCOTIA TRUST COMPANY OF NEW YORK

     

    By: /s/
      Warren A. Goshine

    
      

    

    Name:
      Warren A. Goshine

    Title:
      Vice President

    

    
      
        
        

      

      
        86

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      A

    

    [Face
      of Note]

     

      
        

      

    

    

     

    CUSIP/CINS
      ____________

     

    12.75%
      Senior Notes due 2014

     

    No.
      ___$____________

     

    CANADIAN
      SATELLITE RADIO HOLDINGS INC.

     

    promises
      to pay to [              ]
      or
      registered assigns, 

     

    the
      principal sum of __________________________________________________________
      DOLLARS on _____________, 20___.

     

    Interest
      Payment Dates: ____________ and ____________

     

    Record
      Dates: ____________ and ____________

     

    Dated:
      _______________, 200_

     

    CANADIAN
      SATELLITE RADIO HOLDINGS INC.

     

    

     

    

     

    By:____________________________________________

    Name:
      

    Title:
      

     

    This
      is
      one of the Notes referred to

    in
      the
      within-mentioned Indenture:

     

    

     

    THE
      BANK
      OF NOVA SCOTIA

    TRUST
      COMPANY OF NEW YORK,

    as
      Trustee

     

    

     

    

     

    By:
      ___________________________________

            Authorized
      Signatory

     

    

    
      
        
        

      

      
        87

        
          

        

      

      
        
        

      

    

    

    [Back
      of
      Note]

    12.75%
      Senior Notes due 2014

     

    [Insert
      the Global Note Legend, if applicable pursuant to the provisions of the
      Indenture]

     

    [Insert
      the Private Placement Legend, if applicable pursuant to the provisions of the
      Indenture]

     

    Capitalized
      terms used herein have the meanings assigned to them in the Indenture referred
      to below unless otherwise indicated.

     

    (1)  Interest.
      Canadian Satellite Radio Holdings Inc., a corporation organized under the laws
      of the Province of Ontario, Canada (the “Company”),
      promises to pay interest on the principal amount of this Note at 12.75% per
      annum from ________________, 20__ until maturity and shall pay the Liquidated
      Damages, if any, payable pursuant to Section 5 of the Registration Rights
      Agreement referred to below. The Company will pay interest and Liquidated
      Damages, if any, semi-annually in arrears on February 15 and August 15 of each
      year, or if any such day is not a Business Day, on the next succeeding Business
      Day (each, an “Interest
      Payment Date”).
      Interest on the Notes will accrue from the most recent date to which interest
      has been paid or, if no interest has been paid, from the date of issuance;
      provided
      that if
      there is no existing Default in the payment of interest, and if this Note is
      authenticated between a record date referred to on the face hereof and the
      next
      succeeding Interest Payment Date, interest shall accrue from such next
      succeeding Interest Payment Date; provided
      further
      that the
      first Interest Payment Date shall be _____________, 20__ The Company will pay
      interest (including post-petition interest in any proceeding under any
      Bankruptcy Law) on overdue principal and premium, if any, from time to time
      on
      demand at a rate that is 1% per annum in excess of the rate then in effect
      to
      the extent lawful; it will pay interest (including post-petition interest in
      any
      proceeding under any Bankruptcy Law) on overdue installments of interest and
      Liquidated Damages, if any, (without regard to any applicable grace periods)
      from time to time on demand at the same rate to the extent lawful. Interest
      will
      be computed on the basis of a 360-day year of twelve 30-day months.

     

    (2)  Method
      of Payment.
      The
      Company will pay interest on the Notes (except defaulted interest) and
      Liquidated Damages, if any, to the Persons who are registered Holders of Notes
      at the close of business on the February 1 and August 1 next preceding the
      Interest Payment Date, even if such Notes are canceled after such record date
      and on or before such Interest Payment Date, except as provided in Section
      2.12
      of the Indenture with respect to defaulted interest. The Notes will be payable
      as to principal, premium and Liquidated Damages, if any, and interest at the
      office or agency of the Company maintained for such purpose within or without
      the City and State of New York, or, at the option of the Company, payment of
      interest and Liquidated Damages, if any, may be made by check mailed to the
      Holders at their addresses set forth in the register of Holders; provided
      that
      payment by wire transfer of immediately available funds will be required with
      respect to principal of and interest, premium and Liquidated Damages, if any,
      on, all Global Notes and all other Notes the Holders of which will have provided
      wire transfer instructions to the Company or the Paying Agent. Such payment
      will
      be in such coin or currency of the United States of America as at the time
      of
      payment is legal tender for payment of public and private debts.

     

    (3)  Paying
      Agent and Registrar.
      Initially The Bank of Nova Scotia Trust Company of New York, the Trustee under
      the Indenture, will act as Paying Agent and Registrar. The Company may change
      any Paying Agent or Registrar without notice to any Holder. The Company or
      any
      of its Subsidiaries may act in any such capacity.

     

    
      
        
        

      

      
        88

        
          

        

      

      
        
        

      

    

    (4)  Indenture.
      The
      Company issued the Notes under an Indenture dated as of February 10, 2006 (the
      “Indenture”)
      among
      the Company, the Guarantors and the Trustee. The terms of the Notes include
      those stated in the Indenture and those made part of the Indenture by reference
      to the TIA. The Notes are subject to all such terms, and Holders are referred
      to
      the Indenture and such Act for a statement of such terms. To the extent any
      provision of this Note conflicts with the express provisions of the Indenture,
      the provisions of the Indenture shall govern and be controlling. Except to
      the
      extent provided in the Interest Reserve and Security Agreement dated as of
      February 10, 2006 (the “Interest
      Reserve and Security Agreement”),
      among
      the Company, CSR Inc., the Trustee and the Interest Reserve Agent, the Notes
      are
      the unsecured obligations of the Company. The Interest Reserve and Security
      Agreement provides that funds will be deposited in an account in the United
      States and invested in U.S. government securities, for which the Company is
      the
      beneficial owner, and such funds will be pledged to secure the payment and
      performance when due of the Company’s obligations under the Indenture and will
      also grant to the Trustee for the benefit of itself and then Holders of the
      Notes a first priority security interest in the such account. Such funds will
      be
      used for the first six payments of interest on the Notes. The Indenture does
      not
      limit the aggregate principal amount of Notes that may be issued
      thereunder.

     

    (5)  Optional
      Redemption.

     

    (a)  Except
      as
      set forth in subparagraph (b) of this Paragraph 5, the Company will not have
      the
      option to redeem the Notes prior to February 15, 2010. On or after February
      15,
      2010, the Company will have the option to redeem all or a part of the Notes
      upon
      not less than 30 nor more than 60 days’ notice, at the redemption prices
      (expressed as percentages of principal amount) set forth below plus accrued
      and
      unpaid interest and Liquidated Damages, if any, on the Notes redeemed to the
      applicable redemption date, if redeemed during the twelve-month period beginning
      on February 15 of the years indicated below, subject to the rights of Holders
      on
      the relevant record date to receive interest on the relevant interest payment
      date:

     

    
      	
              Year

            	 	
              Percentage

            	 
	
              2010

            	 	 	
              106.375

            	
              %

            
	
              2011

            	 	 	
              103.188

            	
              %

            
	
              2012
                and thereafter

            	 	 	
              100.000

            	
              %

            

    

     

    Unless
      the Company defaults in the payment of the redemption price, interest will
      cease
      to accrue on the Notes or portions thereof called for redemption on the
      applicable redemption date. 

     

    (b)  Notwithstanding
      the provisions of subparagraph (a) of this Paragraph 5, at any time prior to
      February 15, 2009, the Company may on any one or more occasions redeem up to
      25%
      of the aggregate principal amount of Notes issued under the Indenture with
      the
      net cash proceeds from the sale or issuance of Equity Interests (other than
      Disqualified Stock) at a redemption price equal to 112.750% of the aggregate
      principal amount thereof, plus accrued and unpaid interest and Liquidated
      Damages, if any, to the redemption date; provided
      that at
      least 75% of the aggregate principal amount of the Notes originally issued
      under
      the Indenture (excluding Notes held by the Company and its Subsidiaries) remains
      outstanding immediately after the occurrence of such redemption and that such
      redemption occurs within 90 days of the date of the closing of such sale or
      issuance of Equity Interests (other than Disqualified Stock).

     

    
      
        
        

      

      
        89

        
          

        

      

      
        
        

      

    

    (6)  Mandatory
      Redemption.

     

    The
      Company is not be required to make mandatory redemption or sinking fund payments
      with respect to the Notes.

     

    (7)  Repurchase
      at
      the Option of Holder.

     

    (a)  If
      there
      is a Change of Control, each Holder of Notes will have the right to require
      the
      Company to make an offer (a “Change
      of Control Offer”)
      to
      such Holder to repurchase all or any part (equal to US$1,000 or an integral
      multiple thereof) of such Holder’s Notes at a purchase price in cash equal to
      101% of the aggregate principal amount thereof plus accrued and unpaid interest
      and Liquidated Damages, if any, thereon to the date of purchase, subject to
      the
      rights of Holders on the relevant record date to receive interest due on the
      relevant interest payment date (the “Change
      of Control Payment”).
      Within 30 days following any Change of Control, the Company will mail a notice
      to each Holder setting forth the procedures governing the Change of Control
      Offer as required by the Indenture.

     

    (b)  If
      the
      Company or a Restricted Subsidiary of the Company consummates any Asset Sales,
      within five days of each date on which the aggregate amount of Excess Proceeds
      exceeds US$10.0 million, the Company will commence an offer to all Holders
      of
      Notes and all holders of other Indebtedness that is pari
      passu
      with the
      Notes containing provisions similar to those set forth in the Indenture with
      respect to offers to purchase or redeem with the proceeds of sales of assets
      (an
“Asset
      Sale Offer”)
      pursuant to Section 3.09 of the Indenture to purchase the maximum principal
      amount of Notes (including any Additional Notes) and such other pari
      passu
      Indebtedness that may be purchased out of the Excess Proceeds at an offer price
      in cash in an amount equal to 100% of the principal amount thereof plus accrued
      and unpaid interest and Liquidated Damages, if any, thereon to the date of
      purchase, in accordance with the procedures set forth in the Indenture. To
      the
      extent that the aggregate amount of Notes (including any Additional Notes)
      and
      other pari
      passu
      Indebtedness tendered pursuant to an Asset Sale Offer is less than the Excess
      Proceeds, the Company (or such Restricted Subsidiary) may use such deficiency
      for any purpose not otherwise prohibited by the Indenture. If the aggregate
      principal amount of Notes and other pari
      passu
      Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
      Proceeds, the Trustee shall select the Notes and such other pari
      passu
      Indebtedness to be purchased on a pro
      rata
      basis.
      Holders of Notes that are the subject of an offer to purchase will receive
      an
      Asset Sale Offer from the Company prior to any related purchase date and may
      elect to have such Notes purchased by completing the form entitled “Option
      of Holder to Elect Purchase”
      attached to the Notes.

     

    (8)  Notice
      of Redemption.
      Notice
      of redemption will be mailed at least 10 days but not more than 60 days before
      the redemption date to each Holder whose Notes are to be redeemed at its
      registered address, except that redemption notices may be mailed more than
      60
      days prior to a redemption date if the notice is issued in connection with
      a
      defeasance of the Notes or a satisfaction or discharge of the Indenture. Notes
      in denominations larger than $1,000 may be redeemed in part but only in whole
      multiples of $1,000, unless all of the Notes held by a Holder are to be
      redeemed. 

     

    (9)  Denominations,
      Transfer, Exchange.
      The
      Notes are in registered form without coupons in denominations of $2,000 and
      integral multiples of $1,000. The transfer of Notes may be registered and Notes
      may be exchanged as provided in the Indenture. The Registrar and the Trustee
      may
      require a Holder, among other things, to furnish appropriate endorsements and
      transfer documents and the Company may require a Holder to pay any taxes and
      fees required by law or permitted by the Indenture. The Company need not
      exchange or register the transfer of any Note or portion of a Note selected
      for
      redemption, except for the unredeemed portion of any Note being redeemed in
      part. Also, the Company need not exchange or register the transfer of any Notes
      for a period of 15 days before a selection of Notes to be redeemed or during
      the
      period between a record date and the corresponding Interest Payment
      Date.

     

    
      
        
        

      

      
        90

        
          

        

      

      
        
        

      

    

    (10)  Persons
      Deemed Owners.
      The
      registered Holder of a Note may be treated as its owner for all
      purposes.

     

    (11)  Amendment,
      Supplement and Waiver.
      Subject
      to certain exceptions, the Indenture or the Notes or the Note Guarantees may
      be
      amended or supplemented with the consent of the Holders of at least a majority
      in aggregate principal amount of the then outstanding Notes including Additional
      Notes, if any, voting as a single class, and any existing Default or Event
      or
      Default or compliance with any provision of the Indenture or the Notes or the
      Note Guarantees may be waived with the consent of the Holders of a majority
      in
      aggregate principal amount of the then outstanding Notes including Additional
      Notes, if any, voting as a single class. Without the consent of any Holder
      of a
      Note, the Indenture or the Notes or the Note Guarantees may be amended or
      supplemented to cure any ambiguity, defect or inconsistency, to provide for
      uncertificated Notes in addition to or in place of certificated Notes, to
      provide for the assumption of the Company’s or a Guarantor’s obligations to
      Holders of the Notes and Note Guarantees in case of a merger or consolidation,
      to make any change that would provide any additional rights or benefits to
      the
      Holders of the Notes or that does not adversely affect the legal rights under
      the Indenture of any such Holder, to comply with the requirements of the SEC
      in
      order to effect or maintain the qualification of the Indenture under the TIA,
      to
      conform the text of the Indenture, the Interest Reserve and Security Agreement
      or the Notes to any provision of the “Description of Notes” section of the
      Company’s Offering Memorandum dated February 7, 2006, relating to the initial
      offering of the Notes, to the extent that such provision in that “Description of
      Notes” was intended to be a verbatim recitation of a provision of the Indenture,
      the Note Guarantees, the Interest Reserve and Security Agreement or the Notes;
      to provide for the issuance of Additional Notes in accordance with the
      limitations set forth in the Indenture, or to allow any Guarantor to execute
      a
      supplemental indenture to the Indenture and/or a Note Guarantee with respect
      to
      the Notes.

     

    (12)  Defaults
      and Remedies.
      Events
      of Default include: (i) default for 30 days in the payment when due of interest
      on, or Liquidated Damages, if any, with respect to the Notes; (ii) default
      in
      the payment when due (at maturity, upon redemption or otherwise) of the
      principal of, or premium, if any, on, the Notes; (iii) failure by the Company
      or
      any of its Restricted Subsidiaries to comply with the provisions of Sections
      4.15, 4.20 or 5.01 of the Indenture; (iv) failure by the Company or any of
      its
      Restricted Subsidiaries for 60 days after notice to the Company by the Trustee
      or the Holders of at least 25% in aggregate principal amount of the Notes,
      including any Additional Notes, if any then outstanding voting as a single
      class
      to comply with any of the other agreements in the Indenture or the Notes; (v)
      default under certain other agreements relating to Indebtedness of the Company
      which default results in the acceleration of such Indebtedness prior to its
      express maturity; (vi) certain final judgments for the payment of money that
      remain undischarged for a period of 60 days; (vii) certain events of bankruptcy
      or insolvency with respect to the Company or any of its Restricted Subsidiaries
      that is a Significant Subsidiary or any group of Restricted Subsidiaries that,
      taken together, would constitute a Significant Subsidiary; (viii) the breach
      of
      certain covenants or any material representation or warranty or agreement in
      the
      Interest Reserve and Security Agreement or failure by the Company to comply
      with
      any material term in the Interest Reserve and Security Agreement that is not
      cured within 10 days or the Interest Reserve and Security Agreement is held
      in
      any judicial proceeding to be unenforceable or invalid or ceases for any reason
      to be in full force and effect; (ix) the Interest Reserve and Security Agreement
      or any other securities document or Lien purported to be granted thereby is
      held
      in any judicial proceeding to be unenforceable or invalid, in whole or in part,
      or ceases for any other reason to be fully enforceable and perfected and (x)
      except as permitted by the Indenture, any Note Guarantee is held in any judicial
      proceeding to be unenforceable or invalid or ceases for any reason to be in
      full
      force and effect or any Guarantor or any Person acting on its behalf denies
      or
      disaffirms its obligations under such Guarantor’s Note Guarantee. If any Event
      of Default occurs and is continuing, the Trustee or the Holders of at least
      25%
      in aggregate principal amount of the then outstanding Notes may declare all
      the
      Notes to be due and payable immediately. Notwithstanding the foregoing, in
      the
      case of an Event of Default arising from certain events of bankruptcy or
      insolvency, all outstanding Notes will become due and payable immediately
      without further action or notice. Holders may not enforce the Indenture or
      the
      Notes except as provided in the Indenture. Subject to certain limitations,
      Holders of a majority in aggregate principal amount of the then outstanding
      Notes may direct the Trustee in its exercise of any trust or power. The Trustee
      may withhold from Holders of the Notes notice of any continuing Default or
      Event
      of Default (except a Default or Event of Default relating to the payment of
      principal or interest or premium or Liquidated Damages, if any,) if it
      determines that withholding notice is in their interest. The Holders of a
      majority in aggregate principal amount of the then outstanding Notes by notice
      to the Trustee may, on behalf of the Holders of all of the Notes, rescind an
      acceleration or waive any existing Default or Event of Default and its
      consequences under the Indenture except a continuing Default or Event of Default
      in the payment of interest or premium or Liquidated Damages, if any, on, or
      the
      principal of, the Notes. The Company is required to deliver to the Trustee
      annually a statement regarding compliance with the Indenture, and the Company
      is
      required, upon becoming aware of any Default or Event of Default, to deliver
      to
      the Trustee a statement specifying such Default or Event of
      Default.

     

    
      
        
        

      

      
        91

        
          

        

      

      
        
        

      

       

      (13)  Additional
        Amounts.
        Any
        reference in this Note to the payment of principal, premium or Liquidated
        Damages, if any, redemption price, Change of Control Payment, purchase price,
        interest or any other amount payable under or with respect to such Note,
        will be
        deemed to including mention of the payment of Additional Amounts to the extent
        that, in such context, Additional Amounts are, were or would be payable in
        respect thereof. The Company’s obligation to make payments of Additional Amounts
        will survive any termination of this Note or the defeasance of any rights
        thereunder.

    

     

    (14)  Trustee
      Dealings with Company.
      The
      Trustee, in its individual or any other capacity, or its affiliates or ultimate
      parent may make loans to, accept deposits from, and perform services for the
      Company or its Affiliates, and may otherwise deal with the Company or its
      Affiliates, as if it were not the Trustee.

     

    (15)  No
      Recourse Against Others.
      A
      director, officer, employee, incorporator or stockholder of the Company or
      any
      of the Guarantors, as such, will not have any liability for any obligations
      of
      the Company or the Guarantors under the Notes, the Note Guarantees or the
      Indenture or for any claim based on, in respect of, or by reason of, such
      obligations or their creation. Each Holder by accepting a Note waives and
      releases all such liability. The waiver and release are part of the
      consideration for the issuance of the Notes.

     

    (16)  Authentication.
      This
      Note will not be valid until authenticated by the manual signature of the
      Trustee or an authenticating agent.

     

    
      
        
        

      

      
        92

        
          

        

      

      
        
        

      

    

    (17)  Abbreviations.
      Customary abbreviations may be used in the name of a Holder or an assignee,
      such
      as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT
      TEN
      (= joint tenants with right of survivorship and not as tenants in common),
      CUST
      (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

     

    (18)  Additional
      Rights of Holders of Restricted Global Notes and Restricted Definitive
      Notes.
      In
      addition to the rights provided to Holders of Notes under the Indenture, Holders
      of Restricted Global Notes and Restricted Definitive Notes will have all the
      rights set forth in the Registration Rights Agreement dated as of February
      10,
      2006, among the Company, the Guarantors and the other parties named on the
      signature pages thereof or, in the case of Additional Notes, Holders of
      Restricted Global Notes and Restricted Definitive Notes will have the rights
      set
      forth in one or more registration rights agreements, if any, among the Company,
      the Guarantors and the other parties thereto, relating to rights given by the
      Company and the Guarantors to the purchasers of any Additional Notes
      (collectively, the “Registration
      Rights Agreement”).

     

    (19)  CUSIP
      Numbers.
      Pursuant to a recommendation promulgated by the Committee on Uniform Security
      Identification Procedures, the Company has caused CUSIP numbers to be printed
      on
      the Notes, and the Trustee may use CUSIP numbers in notices of redemption as
      a
      convenience to Holders. No representation is made as to the accuracy of such
      numbers either as printed on the Notes or as contained in any notice of
      redemption, and reliance may be placed only on the other identification numbers
      placed thereon.

     

    (20)  GOVERNING
      LAW. THE
      INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE
      INDENTURE, THIS NOTE AND THE NOTE GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE
      PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
      OF
      ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     

    (21)  Obligation
      Currency.
      The
      obligation of the Company in respect of any sum due to any Holder shall,
      notwithstanding any judgment in a currency other than U.S. dollars, not be
      discharged until the first business day, following receipt by such Holder of
      any
      sum adjudged to be so due in such other currency, on which (and only to the
      extent that) such Holder may in accordance with normal banking procedures
      purchase U.S. dollars with such other currency; if the U.S. dollars so purchased
      are less than the sum originally due to such Holder hereunder, the Company
      agrees, as a separate obligation and notwithstanding any such judgment, to
      indemnify such Holder against such loss.

     

    The
      Company will furnish to any Holder upon written request and without charge
      a
      copy of the Indenture and/or the Registration Rights Agreement. Requests may
      be
      made to:

     

    Canadian
      Satellite Radio Holdings Inc.

    Suite
      2300, Canada Trust Tower

    BCE
      Place, 161 Bay Street

    Toronto,
      Ontario M5J 2S1

    Canada

    Attention:
      Chief Financial Officer

    
 

    
      
        
        

      

      
        93

        
          

        

      

      
        
        

      

    

    Assignment
      Form

     

    To
      assign
      this Note, fill in the form below:

     

    (I)
      or
      (we) assign and transfer this Note to:
      ___________________________________________________________________________________________________________

    (Insert
      assignee’s legal name)

     

     

      
        

      

    

    (Insert
      assignee’s soc. sec. or tax I.D. no.)

     

     

      

      

    

    
      
        
(Print
        or
        type assignee’s name, address and zip code)

    

     

    and
      irrevocably appoint
      _________________________________________________________________________________________________________________________

    to
      transfer this Note on the books of the Company. The agent may substitute another
      to act for him.

     

    Date:
      _______________

     

    Your
      Signature: _______________________________________________

    (Sign
      exactly as your name appears on the face of this Note)

    

    Signature
      Guarantee*: _________________________

    

    * Participant
      in a recognized Signature Guarantee Medallion Program (or other signature
      guarantor acceptable to the Trustee).

    
 

    
      
        
        

      

      
        94

        
          

        

      

      
        
        

      

    

     

    
 

    Option
      of
      Holder to Elect Purchase

    If
      you
      want to elect to have this Note purchased by the Company pursuant to Section
      4.10 or 4.15 of the Indenture, check the appropriate box below:

     

    ØSection
      4.10  ØSection
      4.15

     

    If
      you
      want to elect to have only part of the Note purchased by the Company pursuant
      to
      Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to
      have purchased:

     

    $_______________

    

    Date:
      _______________

     

    Your
      Signature: _______________________________________________

    (Sign
      exactly as your name appears on the face of this Note)

     

    Tax
      Identification No.: _________________________________

    

    Signature
      Guarantee*: _________________________

    

    * Participant
      in a recognized Signature Guarantee Medallion Program (or other signature
      guarantor acceptable to the Trustee).

    

    
      
        
        

      

      
        95

        
          

        

      

      
        
        

      

    

    Schedule
      of Exchanges of Interests in the Global Note *

     

    The
      following exchanges of a part of this Global Note for an interest in another
      Global Note or for a Definitive Note, or exchanges of a part of another Global
      Note or Definitive Note for an interest in this Global Note, have been
      made:

     

    

    
      	
              Date
                of Exchange

            	
              Amount
                of decrease in Principal Amount of 

              this
                Global Note

            	
              Amount
                of increase in Principal Amount of 

              this
                Global Note

            	
              Principal
                Amount of this Global Note following such decrease 

              (or
                increase)

            	
              Signature
                of authorized officer of Trustee or Custodian

            
	 	 	 	 	 

    

    

     

     

     

     

     

    
 

    * This
      schedule should be included only if the Note is issued in global
      form. 

    

    
      
        
        

      

      
        96

        
          

        

      

      
        
        

      

    

    

    

    EXHIBIT
      B

     

    FORM
      OF
      CERTIFICATE OF TRANSFER

     

    Canadian
      Satellite Radio Holdings Inc.

    Suite
      2300, Canada Trust Tower

    BCE
      Place, 161 Bay Street

    Toronto,
      Ontario M5J 2S1

    Canada

     

    [Registrar
      address block]

     

    Re:
      __%
      Senior Notes due 2014

     

    Reference
      is hereby made to the Indenture, dated as of February __, 2006 (the
“Indenture”),
      among
      Canadian Satellite Radio Holdings Inc., as issuer (the “Company”),
      the
      Guarantors party thereto and The Bank of Nova Scotia Trust Company of New York,
      as trustee. Capitalized terms used but not defined herein shall have the
      meanings given to them in the Indenture.

     

    ___________________,
      (the “Transferor”)
      owns
      and proposes to transfer the Note[s] or interest in such Note[s] specified
      in
      Annex A hereto, in the principal amount of $___________ in such Note[s] or
      interests (the “Transfer”),
      to
      ___________________________ (the “Transferee”),
      as
      further specified in Annex A hereto. In connection with the Transfer, the
      Transferor hereby certifies that:

     

    [CHECK
      ALL THAT APPLY]

     

    1.r  Check
      if Transferee will take delivery of a beneficial interest in the 144A Global
      Note or a Restricted Definitive Note pursuant to Rule
      144A.
      The
      Transfer is being effected pursuant to and in accordance with Rule 144A under
      the Securities Act of 1933, as amended (the “Securities
      Act”),
      and,
      accordingly, the Transferor hereby further certifies that the beneficial
      interest or Definitive Note is being transferred to a Person that the Transferor
      reasonably believes is purchasing the beneficial interest or Definitive Note
      for
      its own account, or for one or more accounts with respect to which such Person
      exercises sole investment discretion, and such Person and each such account
      is a
“qualified institutional buyer” within the meaning of Rule 144A in a transaction
      meeting the requirements of Rule 144A, and such Transfer is in compliance with
      any applicable blue sky securities laws of any state of the United States.
      Upon
      consummation of the proposed Transfer in accordance with the terms of the
      Indenture, the transferred beneficial interest or Definitive Note will be
      subject to the restrictions on transfer enumerated in the Private Placement
      Legend printed on the 144A Global Note and/or the Restricted Definitive Note
      and
      in the Indenture and the Securities Act.

     

    2.r  Check
      if Transferee will take delivery of a beneficial interest in the Regulation
      S
      Global Note or a Restricted Definitive Note pursuant to Regulation
      S.
      The
      Transfer is being effected pursuant to and in accordance with Rule 903 or Rule
      904 under the Securities Act and, accordingly, the Transferor hereby further
      certifies that (i) the Transfer is not being made to a Person in the United
      States and (x) at the time the buy order was originated, the Transferee was
      outside the United States or such Transferor and any Person acting on its behalf
      reasonably believed and believes that the Transferee was outside the United
      States or (y) the transaction was executed in, on or through the facilities
      of a
      designated offshore securities market and neither such Transferor nor any Person
      acting on its behalf knows that the transaction was prearranged with a buyer
      in
      the United States, (ii) no directed selling efforts have been made in
      contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation
      S
      under the Securities Act and, (iii) the transaction is not part of a plan or
      scheme to evade the registration requirements of the Securities Act. Upon
      consummation of the proposed transfer in accordance with the terms of the
      Indenture, the transferred beneficial interest or Definitive Note will be
      subject to the restrictions on Transfer enumerated in the Private Placement
      Legend printed on the Regulation S Global Note and/or the Restricted Definitive
      Note and in the Indenture and the Securities Act.

     

    
      
        
        

      

      
        97

        
          

        

      

      
        
        

      

    

    3.
r Check
      and complete if Transferee will take delivery of a beneficial interest in the
      IAI Global Note or a Restricted Definitive Note pursuant to any provision of
      the
      Securities Act other than Rule 144A or Regulation S.
      The
      Transfer is being effected in compliance with the transfer restrictions
      applicable to beneficial interests in Restricted Global Notes and Restricted
      Definitive Notes and pursuant to and in accordance with the Securities Act
      and
      any applicable blue sky securities laws of any state of the United States,
      and
      accordingly the Transferor hereby further certifies that (check
      one):

     

    (a)r 
      such
      Transfer is being effected pursuant to and in accordance with Rule 144 under
      the
      Securities Act;

     

    or

     

    (b)r 
      such
      Transfer is being effected to the Company or a subsidiary thereof;

     

    or

     

    (c)
r
      such
      Transfer is being effected pursuant to an effective registration statement
      under
      the Securities Act and in compliance with the prospectus delivery requirements
      of the Securities Act;

     

    or

     

    (d)
      r
      such
      Transfer is being effected to an Institutional Accredited Investor and pursuant
      to an exemption from the registration requirements of the Securities Act other
      than Rule 144A, Rule 144, Rule 903 or Rule 904, and the Transferor hereby
      further certifies that it has not engaged in any general solicitation within
      the
      meaning of Regulation D under the Securities Act and the Transfer complies
      with
      the transfer restrictions applicable to beneficial interests in a Restricted
      Global Note or Restricted Definitive Notes and the requirements of the exemption
      claimed, which certification is supported by (1) a certificate executed by
      the
      Transferee in the form of Exhibit D to the Indenture and (2) if such Transfer
      is
      in respect of a principal amount of Notes at the time of transfer of less than
      $250,000, an Opinion of Counsel provided by the Transferor or the Transferee
      (a
      copy of which the Transferor has attached to this certification), to the effect
      that such Transfer is in compliance with the Securities Act. Upon consummation
      of the proposed transfer in accordance with the terms of the Indenture, the
      transferred beneficial interest or Definitive Note will be subject to the
      restrictions on transfer enumerated in the Private Placement Legend printed
      on
      the IAI Global Note and/or the Restricted Definitive Notes and in the Indenture
      and the Securities Act.

     

    4.
r
Check
      if Transferee will take delivery of a beneficial interest in an Unrestricted
      Global Note or of an Unrestricted Definitive Note.

     

    (a) r
Check
      if Transfer is pursuant to Rule 144.
      (i) The
      Transfer is being effected pursuant to and in accordance with Rule 144 under
      the
      Securities Act and in compliance with the transfer restrictions contained in
      the
      Indenture and any applicable blue sky securities laws of any state of the United
      States and (ii) the restrictions on transfer contained in the Indenture and
      the
      Private Placement Legend are not required in order to maintain compliance with
      the Securities Act. Upon consummation of the proposed Transfer in accordance
      with the terms of the Indenture, the transferred beneficial interest or
      Definitive Note will no longer be subject to the restrictions on transfer
      enumerated in the Private Placement Legend printed on the Restricted Global
      Notes, on Restricted Definitive Notes and in the Indenture.

     

    
      
        
        

      

      
        98

        
          

        

      

      
        
        

      

    

    (b)
r  Check
      if Transfer is Pursuant to Regulation S.
      (i) The
      Transfer is being effected pursuant to and in accordance with Rule 903 or Rule
      904 under the Securities Act and in compliance with the transfer restrictions
      contained in the Indenture and any applicable blue sky securities laws of any
      state of the United States and (ii) the restrictions on transfer contained
      in
      the Indenture and the Private Placement Legend are not required in order to
      maintain compliance with the Securities Act. Upon consummation of the proposed
      Transfer in accordance with the terms of the Indenture, the transferred
      beneficial interest or Definitive Note will no longer be subject to the
      restrictions on transfer enumerated in the Private Placement Legend printed
      on
      the Restricted Global Notes, on Restricted Definitive Notes and in the
      Indenture.

     

    (c)
      r Check
      if Transfer is Pursuant to Other Exemption.
      (i) The
      Transfer is being effected pursuant to and in compliance with an exemption
      from
      the registration requirements of the Securities Act other than Rule 144, Rule
      903 or Rule 904 and in compliance with the transfer restrictions contained
      in
      the Indenture and any applicable blue sky securities laws of any State of the
      United States and (ii) the restrictions on transfer contained in the Indenture
      and the Private Placement Legend are not required in order to maintain
      compliance with the Securities Act. Upon consummation of the proposed Transfer
      in accordance with the terms of the Indenture, the transferred beneficial
      interest or Definitive Note will not be subject to the restrictions on transfer
      enumerated in the Private Placement Legend printed on the Restricted Global
      Notes or Restricted Definitive Notes and in the Indenture.

     

    This
      certificate and the statements contained herein are made for your benefit and
      the benefit of the Company.

     

     

    _____________________________

    [Insert
      Name of Transferor]

     

     

    

     

    By:
      _____________________________________________

    Name:

    Title:

     

    Dated:
      _______________________

     

    

    
      
        
        

      

      
        99

        
          

        

      

      
        
        

        
        

      

    

    ANNEX
      A
      TO CERTIFICATE OF TRANSFER

     

    1. The
      Transferor owns and proposes to transfer the following:

     

    [CHECK
      ONE OF (a) OR (b)]

     

    (a)   ̈ 
      a
      beneficial interest in the:

     

    (i)       r
      144A
      Global Note (CUSIP _________), or

     

    (ii)       r
Regulation
      S Global Note (CUSIP _________), or

     

    (iii)     
      rI AI Global Note (CUSIP _________);
      or

     

    (br)
a
      Restricted Definitive Note.

     

    2. After
      the
      Transfer the Transferee will hold:

     

    [CHECK
      ONE]

     

    (a)ra
      beneficial interest in the:

     

    (i)r
      144A
      Global Note (CUSIP _________), or

     

    (ii)r
Regulation
      S Global Note (CUSIP _________), or

     

    (iii)r
 IAI
      Global Note (CUSIP _________); or

     

    (iv)r
 Unrestricted
      Global Note (CUSIP _________); or

     

    (b)r
a
      Restricted Definitive Note; or

     

    (c)r
an
      Unrestricted Definitive Note,

     

    in
      accordance with the terms of the Indenture.

     

    

    
      
        
        

      

      
        100

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      C

     

    FORM
      OF
      CERTIFICATE OF EXCHANGE

     

    Canadian
      Satellite Radio Holdings Inc.

    Suite
      2300, Canada Trust Tower

     

    BCE
      Place, 161 Bay Street

     

    Toronto,
      Ontario M5J 2S1

     

    Canada

     

    [Registrar
      address block]

     

    Re:
      __%
      Senior Notes due 2014

     

    (CUSIP
      ____________)

     

    Reference
      is hereby made to the Indenture, dated as of February __, 2006 (the
“Indenture”),
      among
      Canadian Satellite Radio Holdings Inc., as issuer (the “Company”),
      the
      Guarantors party thereto and The Bank of Nova Scotia Trust Company of New York,
      as trustee. Capitalized terms used but not defined herein shall have the
      meanings given to them in the Indenture.

     

    __________________________,
      (the “Owner”)
      owns
      and proposes to exchange the Note[s] or interest in such Note[s] specified
      herein, in the principal amount of $____________ in such Note[s] or interests
      (the “Exchange”).
      In
      connection with the Exchange, the Owner hereby certifies that:

     

    1.r Exchange
      of Restricted Definitive Notes or Beneficial Interests in a Restricted Global
      Note for Unrestricted Definitive Notes or Beneficial Interests in an
      Unrestricted Global Note

     

    (a)rCheck
      if Exchange is from beneficial interest in a Restricted Global Note to
      beneficial interest in an Unrestricted Global Note.
      In
      connection with the Exchange of the Owner’s beneficial interest in a Restricted
      Global Note for a beneficial interest in an Unrestricted Global Note in an
      equal
      principal amount, the Owner hereby certifies (i) the beneficial interest is
      being acquired for the Owner’s own account without transfer, (ii) such Exchange
      has been effected in compliance with the transfer restrictions applicable to
      the
      Global Notes and pursuant to and in accordance with the Securities Act of 1933,
      as amended (the “Securities
      Act”),
      (iii)
      the restrictions on transfer contained in the Indenture and the Private
      Placement Legend are not required in order to maintain compliance with the
      Securities Act and (iv) the beneficial interest in an Unrestricted Global Note
      is being acquired in compliance with any applicable blue sky securities laws
      of
      any state of the United States.

     

    (b)rCheck
      if Exchange is from beneficial interest in a Restricted Global Note to
      Unrestricted Definitive Note.
      In
      connection with the Exchange of the Owner’s beneficial interest in a Restricted
      Global Note for an Unrestricted Definitive Note, the Owner hereby certifies
      (i)
      the Definitive Note is being acquired for the Owner’s own account without
      transfer, (ii) such Exchange has been effected in compliance with the transfer
      restrictions applicable to the Restricted Global Notes and pursuant to and
      in
      accordance with the Securities Act, (iii) the restrictions on transfer contained
      in the Indenture and the Private Placement Legend are not required in order
      to
      maintain compliance with the Securities Act and (iv) the Definitive Note is
      being acquired in compliance with any applicable blue sky securities laws of
      any
      state of the United States.

     

    
      
        
        

      

      
        101

        
          

        

      

      
        
        

      

    

    (c)rCheck
      if Exchange is from Restricted Definitive Note to beneficial interest in an
      Unrestricted Global Note.
      In
      connection with the Owner’s Exchange of a Restricted Definitive Note for a
      beneficial interest in an Unrestricted Global Note, the Owner hereby certifies
      (i) the beneficial interest is being acquired for the Owner’s own account
      without transfer, (ii) such Exchange has been effected in compliance with the
      transfer restrictions applicable to Restricted Definitive Notes and pursuant
      to
      and in accordance with the Securities Act, (iii) the restrictions on transfer
      contained in the Indenture and the Private Placement Legend are not required
      in
      order to maintain compliance with the Securities Act and (iv) the beneficial
      interest is being acquired in compliance with any applicable blue sky securities
      laws of any state of the United States.

     

    (d)
rCheck
      if Exchange is from Restricted Definitive Note to Unrestricted Definitive
      Note.
      In
      connection with the Owner’s Exchange of a Restricted Definitive Note for an
      Unrestricted Definitive Note, the Owner hereby certifies (i) the Unrestricted
      Definitive Note is being acquired for the Owner’s own account without transfer,
      (ii) such Exchange has been effected in compliance with the transfer
      restrictions applicable to Restricted Definitive Notes and pursuant to and
      in
      accordance with the Securities Act, (iii) the restrictions on transfer contained
      in the Indenture and the Private Placement Legend are not required in order
      to
      maintain compliance with the Securities Act and (iv) the Unrestricted Definitive
      Note is being acquired in compliance with any applicable blue sky securities
      laws of any state of the United States.

     

    2. Exchange
      of Restricted Definitive Notes or Beneficial Interests in Restricted Global
      Notes for Restricted Definitive Notes or Beneficial Interests in Restricted
      Global Notes

     

    (a)rCheck
      if Exchange is from beneficial interest in a Restricted Global Note to
      Restricted Definitive Note.
      In
      connection with the Exchange of the Owner’s beneficial interest in a Restricted
      Global Note for a Restricted Definitive Note with an equal principal amount,
      the
      Owner hereby certifies that the Restricted Definitive Note is being acquired
      for
      the Owner’s own account without transfer. Upon consummation of the proposed
      Exchange in accordance with the terms of the Indenture, the Restricted
      Definitive Note issued will continue to be subject to the restrictions on
      transfer enumerated in the Private Placement Legend printed on the Restricted
      Definitive Note and in the Indenture and the Securities Act.

     

    (b)rCheck
      if Exchange is from Restricted Definitive Note to beneficial interest in a
      Restricted Global Note.
      In
      connection with the Exchange of the Owner’s Restricted Definitive Note for a
      beneficial interest in the [CHECK ONE] 144A
      Global Note, Regulation
      S Global Note, IAI
      Global Note with an equal principal amount, the Owner hereby certifies (i)
      the
      beneficial interest is being acquired for the Owner’s own account without
      transfer and (ii) such Exchange has been effected in compliance with the
      transfer restrictions applicable to the Restricted Global Notes and pursuant
      to
      and in accordance with the Securities Act, and in compliance with any applicable
      blue sky securities laws of any state of the United States. Upon consummation
      of
      the proposed Exchange in accordance with the terms of the Indenture, the
      beneficial interest issued will be subject to the restrictions on transfer
      enumerated in the Private Placement Legend printed on the relevant Restricted
      Global Note and in the Indenture and the Securities Act.

     

    This
      certificate and the statements contained herein are made for your benefit and
      the benefit of the Company.

     

     

    _______________________________________

    [Insert
      Name of Transferor]

     

    

     

    

     

    By:___________________________________________ 

    Name:

    Title:

     

    Dated:
      ______________________

     

    

    
      
        
        

      

      
        102

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      D

     

    FORM
      OF
      CERTIFICATE FROM

     

    ACQUIRING
      INSTITUTIONAL ACCREDITED INVESTOR

     

    Canadian
      Satellite Radio Holdings Inc.

    Suite
      2300, Canada Trust Tower

    BCE
      Place, 161 Bay Street

    Toronto,
      Ontario M5J 2S1

    Canada

    [Registrar
      address block]

     

    Re:
      __%
      Senior Notes due 2014

     

    Reference
      is hereby made to the Indenture, dated as of February __, 2006 (the
“Indenture”)
      among
      Canadian Satellite Radio Holdings Inc., as issuer (the “Company”),
      the
      guarantors party thereto and The Bank of Nova Scotia Trust Company of New York,
      as trustee. Capitalized terms used but not defined herein shall have the
      meanings given to them in the Indenture.

     

    In
      connection with our proposed purchase of $____________ aggregate principal
      amount of:

     

    (a)
      a
      beneficial interest in a Global Note, or

     

    (b)
      a
      Definitive Note,

     

    we
      confirm that:

     

    1. We
      understand that any subsequent transfer of the Notes or any interest therein
      is
      subject to certain restrictions and conditions set forth in the Indenture and
      the undersigned agrees to be bound by, and not to resell, pledge or otherwise
      transfer the Notes or any interest therein except in compliance with, such
      restrictions and conditions and the Securities Act of 1933, as amended (the
      “Securities
      Act”).

     

    2. We
      understand that the offer and sale of the Notes have not been registered under
      the Securities Act, and that the Notes and any interest therein may not be
      offered or sold except as permitted in the following sentence. We agree, on
      our
      own behalf and on behalf of any accounts for which we are acting as hereinafter
      stated, that if we should sell the Notes or any interest therein, we will do
      so
      only (A) to the Company or any subsidiary thereof, (B) in accordance with Rule
      144A under the Securities Act to a “qualified institutional buyer” (as defined
      therein), (C) to an institutional “accredited investor” (as defined below) that,
      prior to such transfer, furnishes (or has furnished on its behalf by a U.S.
      broker-dealer) to you and to the Company a signed letter substantially in the
      form of this letter and, if such transfer is in respect of a principal amount
      of
      Notes, at the time of transfer of less than $250,000, an Opinion of Counsel
      in
      form reasonably acceptable to the Company to the effect that such transfer
      is in
      compliance with the Securities Act, (D) outside the United States in accordance
      with Rule 904 of Regulation S under the Securities Act, (E) pursuant to the
      provisions of Rule 144(k) under the Securities Act or (F) pursuant to an
      effective registration statement under the Securities Act, and we further agree
      to provide to any Person purchasing the Definitive Note or beneficial interest
      in a Global Note from us in a transaction meeting the requirements of clauses
      (A) through (E) of this paragraph a notice advising such purchaser that resales
      thereof are restricted as stated herein.

     

    
      
        
        

      

      
        103

        
          

        

      

      
        
        

      

    

    3. We
      understand that, on any proposed resale of the Notes or beneficial interest
      therein, we will be required to furnish to you and the Company such
      certifications, legal opinions and other information as you and the Company
      may
      reasonably require to confirm that the proposed sale complies with the foregoing
      restrictions. We further understand that the Notes purchased by us will bear
      a
      legend to the foregoing effect.

     

    4. We
      are an
      institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
      (7) of Regulation D under the Securities Act) and have such knowledge and
      experience in financial and business matters as to be capable of evaluating
      the
      merits and risks of our investment in the Notes, and we and any accounts for
      which we are acting are each able to bear the economic risk of our or its
      investment.

     

    5. We
      are
      acquiring the Notes or beneficial interest therein purchased by us for our
      own
      account or for one or more accounts (each of which is an institutional
“accredited investor”) as to each of which we exercise sole investment
      discretion.

     

    You
      and
      the Company are entitled to rely upon this letter and are irrevocably authorized
      to produce this letter or a copy hereof to any interested party in any
      administrative or legal proceedings or official inquiry with respect to the
      matters covered hereby.

     

     

    _____________________________________

    [Insert
      Name of Accredited Investor]

     

    

     

    

     

    By:______________________________________  

    Name:

    Title:

     

    Dated:
      _______________________

     

    

    
      
        
        

      

      
        104

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      E

     

    FORM
      OF
      NOTATION OF GUARANTEE

     

    For
      value
      received, each Guarantor (which term includes any successor Person under the
      Indenture) has, jointly and severally, unconditionally guaranteed, to the extent
      set forth in the Indenture and subject to the provisions in the Indenture dated
      as of February __, 2006 (the “Indenture”)
      among
      Canadian Satellite Radio Holdings Inc., (the “Company”),
      the
      Guarantors party thereto and The Bank of Nova Scotia Trust Company of New York,
      as trustee (the “Trustee”),
      (a)
      the due and punctual payment of the principal of, premium and Liquidated Damages
      and Additional Amounts, if any, and interest on, the Notes, whether at maturity,
      by acceleration, redemption or otherwise, the due and punctual payment of
      interest on overdue principal of and interest on the Notes, if any, if lawful,
      and the due and punctual performance of all other obligations of the Company
      to
      the Holders or the Trustee all in accordance with the terms of the Indenture
      and
      (b) in case of any extension of time of payment or renewal of any Notes or
      any
      of such other obligations, that the same will be promptly paid in full when
      due
      or performed in accordance with the terms of the extension or renewal, whether
      at stated maturity, by acceleration or otherwise. The obligations of the
      Guarantors to the Holders of Notes and to the Trustee pursuant to the Note
      Guarantee and the Indenture are expressly set forth in Article 10 of the
      Indenture and reference is hereby made to the Indenture for the precise terms
      of
      the Note Guarantee. Capitalized terms used but not defined herein have the
      meanings given to them in the Indenture.

     

     

    [Name
      of
      Guarantor(s)]

     

    

     

    

     

    By:________________________________________  

    Name:

    Title:

    

    
      
        
        

      

      
        105

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      F

     

    FORM
      OF
      SUPPLEMENTAL INDENTURE

     

    TO
      BE
      DELIVERED BY SUBSEQUENT GUARANTORS

     

    Supplemental
      Indenture
      (this
“Supplemental
      Indenture”),
      dated
      as of ________________, 20__, among __________________ (the “Guaranteeing
      Subsidiary”),
      a
      subsidiary of ____________________ (or its permitted successor), a [Delaware]
      corporation (the “Company”),
      the
      Company, the other Guarantors (as defined in the Indenture referred to herein)
      and The Bank of Nova Scotia Trust Company of New York, as trustee under the
      Indenture referred to below (the “Trustee”).

     

    W
      I T N E
      S S E T H

     

    WHEREAS,
      the Company has heretofore executed and delivered to the Trustee an indenture
      (the “Indenture”),
      dated
      as of February 10, 2006 providing for the issuance of 12.75% Senior Notes due
      2014 (the “Notes”);

     

    WHEREAS,
      the Indenture provides that under certain circumstances the Guaranteeing
      Subsidiary shall execute and deliver to the Trustee a supplemental indenture
      pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee
      all of the Company’s Obligations under the Notes and the Indenture on the terms
      and conditions set forth herein (the “Note
      Guarantee”);
      and

     

    WHEREAS,
      pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute
      and deliver this Supplemental Indenture.

     

    NOW,
      THEREFORE, in consideration of the foregoing and for other good and valuable
      consideration, the receipt of which is hereby acknowledged, the Guaranteeing
      Subsidiary and the Trustee mutually covenant and agree for the equal and ratable
      benefit of the Holders of the Notes as follows:

     

    1. Capitalized
      Terms.
      Capitalized terms used herein without definition shall have the meanings
      assigned to them in the Indenture.

     

    2. Agreement
      to Guarantee.
      The
      Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee
      on
      the terms and subject to the conditions set forth in the Note Guarantee and
      in
      the Indenture including but not limited to Article 10 thereof.

     

    4. No
      Recourse Against Others.
      No
      past, present or future director, officer, employee, incorporator, stockholder
      or agent of the Guaranteeing Subsidiary, as such, shall have any liability
      for
      any obligations of the Company or any Guaranteeing Subsidiary under the Notes,
      any Note Guarantees, the Indenture or this Supplemental Indenture or for any
      claim based on, in respect of, or by reason of, such obligations or their
      creation. Each Holder of the Notes by accepting a Note waives and releases
      all
      such liability. The waiver and release are part of the consideration for
      issuance of the Notes. Such waiver may not be effective to waive liabilities
      under the federal securities laws and it is the view of the SEC that such a
      waiver is against public policy.

     

    5. NEW
      YORK
      LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE
      USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE
      PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
      OF
      ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     

    
      
        
        

      

      
        106

        
          

        

      

      
        
        

      

    

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

     

    7. Effect
      of
      Headings.
      The
      Section headings herein are for convenience only and shall not affect the
      construction hereof.

     

    8. The
      Trustee.
      The
      Trustee shall not be responsible in any manner whatsoever for or in respect
      of
      the validity or sufficiency of this Supplemental Indenture or for or in respect
      of the recitals contained herein, all of which recitals are made solely by
      the
      Guaranteeing Subsidiary and the Company.

     

    9. Consent
      to Jurisdiction.
      Each of
      the Company, the Guarantors and the Guaranteeing Subsidiary irrevocably agree
      that any legal suit, action or proceeding arising out of or based upon this
      Supplemental Indenture or the transactions contemplated hereby (“Related
      Proceedings”)
      may be
      instituted in the federal courts of the United States of America located in
      the
      City of New York or the courts of the State of New York in each case located
      in
      the Borough of Manhattan in the City of New York (collectively, the
“Specified
      Courts”),
      and
      irrevocably submits to the exclusive jurisdiction (except for proceedings
      instituted in regard to the enforcement of a judgment of any such court (a
      “Related
      Judgment”),
      as to
      which such jurisdiction is non-exclusive) of such courts in any such suit,
      action or proceeding. The Company, the Guarantors and the Guaranteeing
      Subsidiary further agree that service of any process, summons, notice or
      document by mail to such party’s address set forth above shall be effective
      service of process for any lawsuit, action or other proceeding brought in any
      such court. The Company, Guarantors and the Guaranteeing Subsidiary hereby
      irrevocably and unconditionally waive any objection to the laying of venue
      of
      any lawsuit, action or other proceeding in the Specified Courts, and hereby
      further irrevocably and unconditionally waive and agree not to plead or claim
      in
      any such court that any such lawsuit, action or other proceeding brought in
      any
      such court has been brought in an inconvenient forum. Each of the Company,
      the
      Guarantors and the Guaranteeing Subsidiary not located in the United States
      hereby irrevocably appoints CT Corporation System of New York, New York, which
      currently maintains a New York City office at 111 Eighth Avenue, New York,
      New
      York 10011, United States of America, as its authorized agent (the “Authorized
      Agent”)
      to
      receive service of process or other legal summons for purposes of any such
      action or proceeding that may be instituted in any state or federal court in
      the
      City and State of New York. The Company, the Guarantors and the Guaranteeing
      Subsidiary agree that service of process upon the Authorized Agent and written
      notice of such service to the Company, the Guarantors and the Guaranteeing
      Subsidiary shall be deemed, in every respect, effective service of process
      upon
      the Company, the Guarantors and the Guaranteeing Subsidiary. 

     

    10. Obligation
      Currency.
      The
      obligation of the Guaranteeing Subsidiary in respect of any sum due to any
      Holder shall, notwithstanding any judgment in a currency other than U.S.
      dollars, not be discharged until the first business day, following receipt
      by
      such Holder of any sum adjudged to be so due in such other currency, on which
      (and only to the extent that) such Holder may in accordance with normal banking
      procedures purchase U.S. dollars with such other currency; if the U.S. dollars
      so purchased are less than the sum originally due to such Holder hereunder,
      the
      Guaranteeing Subsidiary agree, as a separate obligation and notwithstanding
      any
      such judgment, to indemnify such Holder against such loss.

     

    
 

    
      
        
        

      

      
        107

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture
      to
      be duly executed and attested, all as of the date first above
      written.

     

    Dated:
      _______________, 20___

     

    [Guaranteeing
      Subsidiary]

     

    

     

    By:
      _______________________________

    Name:

    Title:

     

    [Company]

     

    By:
      _______________________________

    Name:

    Title:

     

    [Existing
      Guarantors]

     

    By:
      _______________________________

    Name:

    Title:

     

    [Trustee],

     

    as
      Trustee

     

    By:
      _______________________________

    Authorized
      SignatoryExhibit 4.2

    EXHIBIT
      4.2

     

    [Face
      of Note]

     

    
      
        

    

     

    CUSIP/CINS
      

     

    12.75%
      Senior Notes due 2014

     

    No.                                                                                                        US$

     

    CANADIAN
      SATELLITE RADIO HOLDINGS INC.

     

    promises
      to pay to CEDE & CO. or registered assigns, 

     

    the
      principal sum
      of                    
on February 15, 2014.

     

    Interest
      Payment Dates: February 15 and August 15

     

    Record
      Dates: February 1 and August 1

     

    
      	 	 	 
	 	
              CANADIAN
                SATELLITE RADIO HOLDINGS INC.

            
	 
 	 
 	 
 
	
              Dated:
                February 10, 2006

            	By:  	 
	 	
              
Name:
	 	Title 

    

     

     

    This
      is
      one of the Notes referred to

     

    in
      the
      within-mentioned Indenture:

     

    

     

    THE
      BANK
      OF NOVA SCOTIA

    TRUST
      COMPANY OF NEW YORK,

    as
      Trustee

    
 

     

    By:_____________________________________
       

        Authorized
      Signatory

     

    
      
        

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [Back
      of Note]

    12.75%
      Senior Notes due 2014

     

        THIS
      GLOBAL
      NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS
      NOTE)
      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 (1) THE
      TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION
      2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT
      IN
      PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY
      BE
      DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
      INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY
      WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

     

    UNLESS
      AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM,
      THIS
      NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE
      OF
      THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
      NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
      SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
      CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST
      COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS
      AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
      ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE
      REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
      CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
      OR
      OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
      HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     

    THE
      SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A
      TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY
      EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
      ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
      PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER
      MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
      SECURITIES ACT. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE
      BENEFIT OF THE ISSUER THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE
      TRANSFERRED ONLY (1) (a) IN THE UNITED STATES TO A PERSON WHO THE SELLER
      REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE
      144A
      UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
      144A, (b) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE
      WITH RULE 904 UNDER THE SECURITIES ACT, (c) IN A TRANSACTION MEETING THE
      REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (d) TO AN INSTITUTIONAL
      “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE
      SECURITIES ACT (AN “INSTITUTIONAL ACCREDITED INVESTOR”) THAT, PRIOR TO SUCH
      TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
      REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH CAN BE OBTAINED FROM THE
      TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT
      OF
      NOTES LESS THAN US$250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY
      THAT
      SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT OR (e) IN ACCORDANCE
      WITH
      ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
      (AND
      BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO REQUESTS), (2) TO THE COMPANY
      OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN
      ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH
      SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY
      EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Capitalized
      terms used herein have the meanings assigned to them in the Indenture referred
      to below unless otherwise indicated.

     

    (1)  INTEREST.
      Canadian Satellite Radio Holdings Inc., a corporation organized under the laws
      of the Province of Ontario, Canada (the “Company”),
      promises to pay interest on the principal amount of this Note at 12.75% per
      annum from February 10, 2006 until maturity and shall pay the Liquidated
      Damages, if any, payable pursuant to Section 5 of the Registration Rights
      Agreement referred to below. The Company will pay interest and Liquidated
      Damages, if any, semi-annually in arrears on February 15 and August 15 of each
      year, or if any such day is not a Business Day, on the next succeeding Business
      Day (each, an “Interest
      Payment Date”).
      Interest on the Notes will accrue from the most recent date to which interest
      has been paid or, if no interest has been paid, from the date of issuance;
      provided
      that if
      there is no existing Default in the payment of interest, and if this Note is
      authenticated between a record date referred to on the face hereof and the
      next
      succeeding Interest Payment Date, interest shall accrue from such next
      succeeding Interest Payment Date; provided
      further
      that the
      first Interest Payment Date shall be August 15, 2006. The Company will pay
      interest (including post-petition interest in any proceeding under any
      Bankruptcy Law) on overdue principal and premium, if any, from time to time
      on
      demand at a rate that is 1% per annum in excess of the rate then in effect
      to
      the extent lawful; it will pay interest (including post-petition interest in
      any
      proceeding under any Bankruptcy Law) on overdue installments of interest and
      Liquidated Damages, if any, (without regard to any applicable grace periods)
      from time to time on demand at the same rate to the extent lawful. Interest
      will
      be computed on the basis of a 360-day year of twelve 30-day months.

     

    (2)  METHOD
      OF PAYMENT.
      The
      Company will pay interest on the Notes (except defaulted interest) and
      Liquidated Damages, if any, to the Persons who are registered Holders of Notes
      at the close of business on the February 1 and August 1 next preceding the
      Interest Payment Date, even if such Notes are canceled after such record date
      and on or before such Interest Payment Date, except as provided in Section
      2.12
      of the Indenture with respect to defaulted interest. The Notes will be payable
      as to principal, premium and Liquidated Damages, if any, and interest at the
      office or agency of the Company maintained for such purpose within or without
      the City and State of New York, or, at the option of the Company, payment of
      interest and Liquidated Damages, if any, may be made by check mailed to the
      Holders at their addresses set forth in the register of Holders; provided
      that
      payment by wire transfer of immediately available funds will be required with
      respect to principal of and interest, premium and Liquidated Damages, if any,
      on, all Global Notes and all other Notes the Holders of which will have provided
      wire transfer instructions to the Company or the Paying Agent. Such payment
      will
      be in such coin or currency of the United States of America as at the time
      of
      payment is legal tender for payment of public and private debts.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (3)  PAYING
      AGENT AND REGISTAR.
      Initially The Bank of Nova Scotia Trust Company of New York, the Trustee under
      the Indenture, will act as Paying Agent and Registrar. The Company may change
      any Paying Agent or Registrar without notice to any Holder. The Company or
      any
      of its Subsidiaries may act in any such capacity.

     

    (4)  INDENTURE.
      The
      Company issued the Notes under an Indenture dated as of February 10, 2006 (the
      “Indenture”)
      among
      the Company, the Guarantors and the Trustee. The terms of the Notes include
      those stated in the Indenture and those made part of the Indenture by reference
      to the TIA. The Notes are subject to all such terms, and Holders are referred
      to
      the Indenture and such Act for a statement of such terms. To the extent any
      provision of this Note conflicts with the express provisions of the Indenture,
      the provisions of the Indenture shall govern and be controlling. Except to
      the
      extent provided in the Interest Reserve and Security Agreement dated as of
      February 10, 2006 (the “Interest
      Reserve and Security Agreement”),
      among
      the Company, CSR Inc., the Trustee and the Interest Reserve Agent, the Notes
      are
      the unsecured obligations of the Company. The Interest Reserve and Security
      Agreement provides that funds will be deposited in an account in the United
      States and invested in U.S. government securities, for which the Company is
      the
      beneficial owner, and such funds will be pledged to secure the payment and
      performance when due of the Company’s obligations under the Indenture and will
      also grant to the Trustee for the benefit of itself and then Holders of the
      Notes a first priority security interest in the such account. Such funds will
      be
      used for the first six payments of interest on the Notes. The Indenture does
      not
      limit the aggregate principal amount of Notes that may be issued
      thereunder.

     

    (5)  OPTIONAL
      REDEMPTION.

     

    (a)  Except
      as
      set forth in subparagraph (b) of this Paragraph 5, the Company will not have
      the
      option to redeem the Notes prior to February 15, 2010. On or after February
      15,
      2010, the Company will have the option to redeem all or a part of the Notes
      upon
      not less than 30 nor more than 60 days’ notice, at the redemption prices
      (expressed as percentages of principal amount) set forth below plus accrued
      and
      unpaid interest and Liquidated Damages, if any, on the Notes redeemed to the
      applicable redemption date, if redeemed during the twelve-month period beginning
      on February 15 of the years indicated below, subject to the rights of Holders
      on
      the relevant record date to receive interest on the relevant interest payment
      date:

     

    
      	
              Year

            	 	
              Percentage

            	 
	
              2010

            	 	 	
              106.375

            	
              %

            
	
              2011

            	 	 	
              103.188

            	
              %

            
	
              2012
                and thereafter

            	 	 	
              100.000

            	
              %

            

    

     

    Unless
      the Company defaults in the payment of the redemption price, interest will
      cease
      to accrue on the Notes or portions thereof called for redemption on the
      applicable redemption date. 

     

    (b)  Notwithstanding
      the provisions of subparagraph (a) of this Paragraph 5, at any time prior to
      February 15, 2009, the Company may on any one or more occasions redeem up to
      25%
      of the aggregate principal amount of Notes issued under the Indenture with
      the
      net cash proceeds from the sale or issuance of Equity Interests (other than
      Disqualified Stock) at a redemption price equal to 112.750% of the aggregate
      principal amount thereof, plus accrued and unpaid interest and Liquidated
      Damages, if any, to the redemption date; provided
      that at
      least 75% of the aggregate principal amount of the Notes originally issued
      under
      the Indenture (excluding Notes held by the Company and its Subsidiaries) remains
      outstanding immediately after the occurrence of such redemption and that such
      redemption occurs within 90 days of the date of the closing of such sale or
      issuance of Equity Interests (other than Disqualified Stock).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (6)  MANDATORY
      REDEMPTION.

     

    The
      Company is not be required to make mandatory redemption or sinking fund payments
      with respect to the Notes.

     

    (7)  REPURCHASE AT THE OPTIONS OF
      HOLDERS.

     

    (a)  If
      there
      is a Change of Control, each Holder of Notes will have the right to require
      the
      Company to make an offer (a “Change
      of Control Offer”)
      to
      such Holder to repurchase all or any part (equal to US$1,000 or an integral
      multiple thereof) of such Holder’s Notes at a purchase price in cash equal to
      101% of the aggregate principal amount thereof plus accrued and unpaid interest
      and Liquidated Damages, if any, thereon to the date of purchase, subject to
      the
      rights of Holders on the relevant record date to receive interest due on the
      relevant interest payment date (the “Change
      of Control Payment”).
      Within 30 days following any Change of Control, the Company will mail a notice
      to each Holder setting forth the procedures governing the Change of Control
      Offer as required by the Indenture.

     

    (b)  If
      the
      Company or a Restricted Subsidiary of the Company consummates any Asset Sales,
      within five days of each date on which the aggregate amount of Excess Proceeds
      exceeds US$10.0 million, the Company will commence an offer to all Holders
      of
      Notes and all holders of other Indebtedness that is pari
      passu
      with the
      Notes containing provisions similar to those set forth in the Indenture with
      respect to offers to purchase or redeem with the proceeds of sales of assets
      (an
“Asset
      Sale Offer”)
      pursuant to Section 3.09 of the Indenture to purchase the maximum principal
      amount of Notes (including any Additional Notes) and such other pari
      passu
      Indebtedness that may be purchased out of the Excess Proceeds at an offer price
      in cash in an amount equal to 100% of the principal amount thereof plus accrued
      and unpaid interest and Liquidated Damages, if any, thereon to the date of
      purchase, in accordance with the procedures set forth in the Indenture. To
      the
      extent that the aggregate amount of Notes (including any Additional Notes)
      and
      other pari
      passu
      Indebtedness tendered pursuant to an Asset Sale Offer is less than the Excess
      Proceeds, the Company (or such Restricted Subsidiary) may use such deficiency
      for any purpose not otherwise prohibited by the Indenture. If the aggregate
      principal amount of Notes and other pari
      passu
      Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
      Proceeds, the Trustee shall select the Notes and such other pari
      passu
      Indebtedness to be purchased on a pro
      rata
      basis.
      Holders of Notes that are the subject of an offer to purchase will receive
      an
      Asset Sale Offer from the Company prior to any related purchase date and may
      elect to have such Notes purchased by completing the form entitled “Option
      of Holder to Elect Purchase”
      attached to the Notes.

     

    (8)  NOTICE OF
      REDEMPTION.
      Notice
      of redemption will be mailed at least 10 days but not more than 60 days before
      the redemption date to each Holder whose Notes are to be redeemed at its
      registered address, except that redemption notices may be mailed more than
      60
      days prior to a redemption date if the notice is issued in connection with
      a
      defeasance of the Notes or a satisfaction or discharge of the Indenture. Notes
      in denominations larger than $1,000 may be redeemed in part but only in whole
      multiples of $1,000, unless all of the Notes held by a Holder are to be
      redeemed. 

     

    (9)  DEMNIFICATION,
      TRANSFER, EXCHANGE.
      The
      Notes are in registered form without coupons in denominations of $2,000 and
      integral multiples of $1,000. The transfer of Notes may be registered and Notes
      may be exchanged as provided in the Indenture. The Registrar and the Trustee
      may
      require a Holder, among other things, to furnish appropriate endorsements and
      transfer documents and the Company may require a Holder to pay any taxes and
      fees required by law or permitted by the Indenture. The Company need not
      exchange or register the transfer of any Note or portion of a Note selected
      for
      redemption, except for the unredeemed portion of any Note being redeemed in
      part. Also, the Company need not exchange or register the transfer of any Notes
      for a period of 15 days before a selection of Notes to be redeemed or during
      the
      period between a record date and the corresponding Interest Payment
      Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (10) 
PERSONS
      DEEMED OWNERS.
      The
      registered Holder of a Note may be treated as its owner for all
      purposes.

     

    (11)  AMENDMENTS,
      SUPPLEMENT AND WAIVER.
      Subject
      to certain exceptions, the Indenture or the Notes or the Note Guarantees may
      be
      amended or supplemented with the consent of the Holders of at least a majority
      in aggregate principal amount of the then outstanding Notes including Additional
      Notes, if any, voting as a single class, and any existing Default or Event
      or
      Default or compliance with any provision of the Indenture or the Notes or the
      Note Guarantees may be waived with the consent of the Holders of a majority
      in
      aggregate principal amount of the then outstanding Notes including Additional
      Notes, if any, voting as a single class. Without the consent of any Holder
      of a
      Note, the Indenture or the Notes or the Note Guarantees may be amended or
      supplemented to cure any ambiguity, defect or inconsistency, to provide for
      uncertificated Notes in addition to or in place of certificated Notes, to
      provide for the assumption of the Company’s or a Guarantor’s obligations to
      Holders of the Notes and Note Guarantees in case of a merger or consolidation,
      to make any change that would provide any additional rights or benefits to
      the
      Holders of the Notes or that does not adversely affect the legal rights under
      the Indenture of any such Holder, to comply with the requirements of the SEC
      in
      order to effect or maintain the qualification of the Indenture under the TIA,
      to
      conform the text of the Indenture, the Interest Reserve and Security Agreement
      or the Notes to any provision of the “Description of Notes” section of the
      Company’s Offering Memorandum dated February 7, 2006, relating to the initial
      offering of the Notes, to the extent that such provision in that “Description of
      Notes” was intended to be a verbatim recitation of a provision of the Indenture,
      the Note Guarantees, the Interest Reserve and Security Agreement or the Notes;
      to provide for the issuance of Additional Notes in accordance with the
      limitations set forth in the Indenture, or to allow any Guarantor to execute
      a
      supplemental indenture to the Indenture and/or a Note Guarantee with respect
      to
      the Notes.

     

    (12)  DEFAULTS
      AND REMEDIES.
      Events
      of Default include: (i) default for 30 days in the payment when due of interest
      on, or Liquidated Damages, if any, with respect to the Notes; (ii) default
      in
      the payment when due (at maturity, upon redemption or otherwise) of the
      principal of, or premium, if any, on, the Notes; (iii) failure by the Company
      or
      any of its Restricted Subsidiaries to comply with the provisions of Sections
      4.15, 4.20 or 5.01 of the Indenture; (iv) failure by the Company or any of
      its
      Restricted Subsidiaries for 60 days after notice to the Company by the Trustee
      or the Holders of at least 25% in aggregate principal amount of the Notes,
      including any Additional Notes, if any then outstanding voting as a single
      class
      to comply with any of the other agreements in the Indenture, Interest Reserve
      and Security Agreement or the Notes; (v) default under certain other agreements
      relating to Indebtedness of the Company which default results in the
      acceleration of such Indebtedness prior to its express maturity; (vi) certain
      final judgments for the payment of money that remain undischarged for a period
      of 60 days; (vii) certain events of bankruptcy or insolvency with respect to
      the
      Company or any of its Restricted Subsidiaries that is a Significant Subsidiary
      or any group of Restricted Subsidiaries that, taken together, would constitute
      a
      Significant Subsidiary; (viii) the breach of certain covenants or any material
      representation or warranty or agreement in the Interest Reserve and Security
      Agreement or failure by the Company to comply with any material term in the
      Interest Reserve and Security Agreement that is not cured within 10 days or
      the
      Interest Reserve and Security Agreement is held in any judicial proceeding
      to be
      unenforceable or invalid or ceases for any reason to be in full force and
      effect; (ix) the Interest Reserve and Security Agreement or any other securities
      document or Lien purported to be granted thereby is held in any judicial
      proceeding to be unenforceable or invalid, in whole or in part, or ceases for
      any other reason to be fully enforceable and perfected and (x) except as
      permitted by the Indenture, any Note Guarantee is held in any judicial
      proceeding to be unenforceable or invalid or ceases for any reason to be in
      full
      force and effect or any Guarantor or any Person acting on its behalf denies
      or
      disaffirms its obligations under such Guarantor’s Note Guarantee. If any Event
      of Default occurs and is continuing, the Trustee or the Holders of at least
      25%
      in aggregate principal amount of the then outstanding Notes may declare all
      the
      Notes to be due and payable immediately. Notwithstanding the foregoing, in
      the
      case of an Event of Default arising from certain events of bankruptcy or
      insolvency, all outstanding Notes will become due and payable immediately
      without further action or notice. Holders may not enforce the Indenture or
      the
      Notes except as provided in the Indenture. Subject to certain limitations,
      Holders of a majority in aggregate principal amount of the then outstanding
      Notes may direct the Trustee in its exercise of any trust or power. The Trustee
      may withhold from Holders of the Notes notice of any continuing Default or
      Event
      of Default (except a Default or Event of Default relating to the payment of
      principal or interest or premium or Liquidated Damages, if any,) if it
      determines that withholding notice is in their interest. The Holders of a
      majority in aggregate principal amount of the then outstanding Notes by notice
      to the Trustee may, on behalf of the Holders of all of the Notes, rescind an
      acceleration or waive any existing Default or Event of Default and its
      consequences under the Indenture except a continuing Default or Event of Default
      in the payment of interest or premium or Liquidated Damages, if any, on, or
      the
      principal of, the Notes. The Company is required to deliver to the Trustee
      annually a statement regarding compliance with the Indenture, and the Company
      is
      required, upon becoming aware of any Default or Event of Default, to deliver
      to
      the Trustee a statement specifying such Default or Event of
      Default.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (13)  ADDITIONAL
      AMOUNTS.
      Any
      reference in this Note to the payment of principal, premium or Liquidated
      Damages, if any, redemption price, Change of Control Payment, purchase price,
      interest or any other amount payable under or with respect to such Note, will
      be
      deemed to including mention of the payment of Additional Amounts to the extent
      that, in such context, Additional Amounts are, were or would be payable in
      respect thereof. The Company’s obligation to make payments of Additional Amounts
      will survive any termination of this Note or the defeasance of any rights
      thereunder.

     

    (14)  TRUSTEE
      DEALINGS WITH COMPANY.
      The
      Trustee, in its individual or any other capacity, or its affiliates or ultimate
      parent may make loans to, accept deposits from, and perform services for the
      Company or its Affiliates, and may otherwise deal with the Company or its
      Affiliates, as if it were not the Trustee.

     

    (15)  NO
      RECOURSE AGAINST OTHERS.
      A
      director, officer, employee, incorporator or stockholder of the Company or
      any
      of the Guarantors, as such, will not have any liability for any obligations
      of
      the Company or the Guarantors under the Notes, the Note Guarantees or the
      Indenture or for any claim based on, in respect of, or by reason of, such
      obligations or their creation. Each Holder by accepting a Note waives and
      releases all such liability. The waiver and release are part of the
      consideration for the issuance of the Notes.

     

    (16)  AUTHENTIFICATION.
      This
      Note will not be valid until authenticated by the manual signature of the
      Trustee or an authenticating agent.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (17)  ABBREVIATIONS.
      Customary abbreviations may be used in the name of a Holder or an assignee,
      such
      as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT
      TEN
      (= joint tenants with right of survivorship and not as tenants in common),
      CUST
      (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

     

    (18)  ADDITIONAL
      RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED DEFINITIVE
      NOTES.
      In
      addition to the rights provided to Holders of Notes under the Indenture, Holders
      of Restricted Global Notes and Restricted Definitive Notes will have all the
      rights set forth in the Registration Rights Agreement dated as of February
      10,
      2006, among the Company, the Guarantors and the other parties named on the
      signature pages thereof or, in the case of Additional Notes, Holders of
      Restricted Global Notes and Restricted Definitive Notes will have the rights
      set
      forth in one or more registration rights agreements, if any, among the Company,
      the Guarantors and the other parties thereto, relating to rights given by the
      Company and the Guarantors to the purchasers of any Additional Notes
      (collectively, the “Registration
      Rights Agreement”).

     

    (19)  CUSIP
      NUMBERS.
      Pursuant to a recommendation promulgated by the Committee on Uniform Security
      Identification Procedures, the Company has caused CUSIP numbers to be printed
      on
      the Notes, and the Trustee may use CUSIP numbers in notices of redemption as
      a
      convenience to Holders. No representation is made as to the accuracy of such
      numbers either as printed on the Notes or as contained in any notice of
      redemption, and reliance may be placed only on the other identification numbers
      placed thereon.

     

    (20)  GOVERNING
      LAW. THE
      INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE
      INDENTURE, THIS NOTE AND THE NOTE GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE
      PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
      OF
      ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     

    (21)  OBLIGATION
      CURRENCY.
      The
      obligation of the Company in respect of any sum due to any Holder shall,
      notwithstanding any judgment in a currency other than U.S. dollars, not be
      discharged until the first business day, following receipt by such Holder of
      any
      sum adjudged to be so due in such other currency, on which (and only to the
      extent that) such Holder may in accordance with normal banking procedures
      purchase U.S. dollars with such other currency; if the U.S. dollars so purchased
      are less than the sum originally due to such Holder hereunder, the Company
      agrees, as a separate obligation and notwithstanding any such judgment, to
      indemnify such Holder against such loss.

     

    The
      Company will furnish to any Holder upon written request and without charge
      a
      copy of the Indenture and/or the Registration Rights Agreement. Requests may
      be
      made to:

     

    Canadian
      Satellite Radio Holdings Inc.

    Suite
      2300, Canada Trust Tower

    BCE
      Place, 161 Bay Street

    Toronto,
      Ontario M5J 2S1

    Canada

    Attention:
      Chief Financial Officer

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Assignment
      Form

     

    To
      assign
      this Note, fill in the form below:

     

    (I)
      or
      (we) assign and transfer this Note
      to:___________________________________________________________________________________________________________

    (Insert
      assignee’s legal name)

     

     

      
        

      

    

    (Insert
      assignee’s soc. sec. or tax I.D. no.)

     

    
      

      

    

    
      

    

    (Print
      or
      type assignee’s name, address and zip code)

     

    and
      irrevocably
      appoint_________________________________________________________________________________________________________________________
      

    to
      transfer this Note on the books of the Company. The agent may substitute another
      to act for him.

     

    Date:
      _______________

     

     Your
      Signature:
      __________________________________________________

     (Sign
      exactly as your name appears on the face of this Note)

    

    Signature
      Guarantee*: _________________________

    

    * Participant
      in a recognized Signature Guarantee Medallion Program (or other signature
      guarantor acceptable to the Trustee).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Option
      of
      Holder to Elect Purchase

     

    If
      you
      want to elect to have this Note purchased by the Company pursuant to Section
      4.10 or 4.15 of the Indenture, check the appropriate box below:

     

    -Section
      4.10  -Section
      4.15

     

    If
      you
      want to elect to have only part of the Note purchased by the Company pursuant
      to
      Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to
      have purchased:

     

    $_______________

    

    Date:
      _______________

     

     Your
      Signature:
      _______________________________________________

     (Sign
      exactly as your name appears on the face of this Note)

     

    Tax
      Identification No.: __________________________________________

    

    Signature
      Guarantee*: _________________________

    

    * Participant
      in a recognized Signature Guarantee Medallion Program (or other signature
      guarantor acceptable to the Trustee).

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      of Exchanges of Interests in the Global Note 

     

    The
      following exchanges of a part of this Global Note for an interest in another
      Global Note or for a Definitive Note, or exchanges of a part of another Global
      Note or Definitive Note for an interest in this Global Note, have been
      made:

     

    

    
      	
              Date
                of Exchange

            	
              Amount
                of decrease in Principal Amount of 

              this
                Global Note

            	
              Amount
                of increase in Principal Amount of 

              this
                Global Note

            	
              Principal
                Amount of this Global Note following such decrease 

              (or
                increase)

            	
              Signature
                of authorized officer of Trustee or Custodian

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