Document:

Exhibit 10.2

     

    
      EXHIBIT
        10.2

      EXECUTION
        VERSION

    

    

      XM
        SYSTEM LICENCE AGREEMENT

       

      

       

      THIS
        XM SYSTEM LICENCE AGREEMENT
        (the
“Agreement”) made as of the 17th day of November 2005 (the “Effective
        Date”).

       

      B
        E T W E
        E N: 

       

      XM
        SATELLITE RADIO INC.

       

      (hereinafter
        referred to as “XM”)

       

      and

       

      CANADIAN
        SATELLITE RADIO HOLDINGS INC.

       

      (hereinafter
        referred to as the “CSR Parent”)

       

      and

       

      CANADIAN
        SATELLITE RADIO INC.

       

      (hereinafter
        referred to as “CSR”)

       

      

       

      WHEREAS,
        pursuant
        to the Memorandum of Agreement (“MOA”) dated August 7, 2003 among XM Satellite
        Radio Holdings Inc. (“XM Parent”), XM, CSR Parent and CSR, CSR has applied to
        the Canadian Radio-television and Telecommunications Commission (“CRTC”) for and
        has received a licence award, the licence to come into effect when certain
        conditions are met, to provide satellite digital audio radio services (“SDARS”)
        within Canada (the “CRTC Licence”) and Industry Canada intends to make available
        to all radio spectrum authorizations that are necessary to provide SDARS
        (the
“IC Rights”, which, together with the CRTC Licence, constitutes the “Canadian
        Licences”). 

       

      WHEREAS,
        pursuant
        to the MOA, it was agreed that following receipt of the Canadian Licences
        XM
        would grant to CSR the licence and would provide such related information,
        expertise, and ancillary services that are the subject of Technical Services
        Agreement and this XM System Licence Agreement, subject to the terms set
        forth
        herein.

       

      NOW
        THEREFORE in
        consideration of the premises and the mutual agreements and covenants contained
        herein and other good and valuable consideration, the receipt and sufficiency
        of
        which are hereby acknowledged, the parties hereto agree as follows:

       

      1. Grant
        of Licence.
        XM
        hereby grants to the CSR an exclusive, non-transferable right and licence,
        on
        the terms set forth herein, to do the following throughout Canada:

       

      
        	
                1.1

              	
                to
                  offer and provide to Subscribers (as defined in Article 1.2 below)
                  the XM
                  CPackage Basic Channels listed in Part 1 of Schedule A, as updated
                  from
                  time to time as provided herein (“XM CPackage Basic Channels”), in
                  combination with those channels CSR supplies to XM pursuant to
                  the
                  Programming Agreement as defined below (the “CSR Channels”), as part of
                  the basic services (the XM CPackage Basic Channels and CSR Channels
                  in the
                  basic service being referred to collectively as the “Basic Canadian
                  Service”) for the purposes of making the Basic Canadian Service available
                  to Subscribers in Canada for a periodic subscription fee, along
                  with the
                  XM CPackage Premium Channels listed in Part 2 of Schedule A, as
                  updated
                  from time to time as provided herein (“XM CPackage Premium Channels,” (and
                  together with XM CPackage Basic Channels, the “XM CPackage Channels”)),
                  that are offered by XM as part of its premium SDARS in the United
                  States
                  and made available to Subscribers for additional fees over and
                  above the
                  periodic subscription fee for the Basic Canadian Service (“Premium
                  Canadian Services”); and

              

      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
        	
                1.2

              	
                to
                  sell subscriptions within Canada to the Basic Canadian Service
                  and Premium
                  Canadian Services (collectively, the “Services”) solely as transmitted by
                  XM’s satellites (the “XM Satellites”) to paying customers (except that CSR
                  may provide the Basic Canadian Service on a short-term promotional
                  basis
                  to prospective non-paying Canadian Subscribers) who reside in Canada
                  and
                  provide CSR with appropriate Canadian residence information (including
                  address and phone number) when activating an XM receiver or otherwise
                  becoming a self-paying subscriber (each, a “Subscriber”) electing to
                  subscribe to the Services; and

              

      

       

      
        	
                1.3

              	
                to
                  retransmit the signal received within Canada from the XM Satellites
                  in
                  mutually agreed locations within Canada using terrestrial repeaters
                  located in Canada; and

              

      

       

      
        	
                1.4

              	
                to
                  record the XM CPackage Channels so long as it is required by the
                  CRTC.
                  

              

      

       

      2. Licence
        Restrictions.
        The
        licence is subject to the following restrictions: 

       

      
        	
                2.1

              	
                The
                  parties acknowledge and agree that it is not technically or commercially
                  feasible at this time for XM to tailor packages for individual
                  CSR
                  subscribers in Canada beyond one basic service package and specific
                  premium services. Accordingly, CSR must offer the Basic Canadian
                  Service
                  package in its entirety to each Subscriber that elects to receive
                  the
                  Services (subject to individual Subscriber channel blocking as
                  may be
                  implemented pursuant to the Technical Services Agreement). CSR
                  may only
                  offer Premium Canadian Services to persons or entities who are
                  subscribers
                  to the Basic Canadian Service package. In the event that in the
                  future XM
                  offers different or more tailored packages other than a single
                  basic
                  service and add-on premium services to its subscribers within the
                  U.S. as
                  part of its general service offering, the parties will negotiate
                  in good
                  faith to enable CSR to offer such other packages within Canada,
                  to the
                  extent such offering would be practical and commercially reasonable
                  given
                  any relevant regulatory, contractual and economic considerations.
                  

              

      

       

      
        	
                2.2

              	
                CSR
                  may not intentionally or knowingly offer or provide any portion
                  of the
                  Services to non-residents of Canada, and may only offer the Services
                  in
                  compliance with the Canadian Licences.

              

      

       

      
        	
                2.3

              	
                The
                  only Service that CSR is presently authorized to offer to Subscribers
                  is
                  SDARS programming that is broadcast by XM included in the Basic
                  Canadian
                  Service and Premium Canadian Services, as transmitted by the XM
                  Satellites
                  or as retransmitted within Canada using terrestrial repeaters located
                  in
                  Canada. CSR may not deliver the Services via any other method of
                  transmission, whether by terrestrial or wireless transmission,
                  via the
                  Internet or otherwise, without XM’s prior written consent, which it may
                  withhold in its sole discretion. 

              

      

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	
                2.4

              	
                The
                  Services must be offered on a nation-wide basis, within the coverage
                  of
                  the XM Satellites and the CSR terrestrial repeater network to retransmit
                  the signal received within Canada from the XM Satellites.
                  

              

      

       

      3. Other
        Definitive Agreements.
        Concurrently with the execution of this Agreement, the parties hereto, along
        with CSR Parent and XM Parent in certain cases, are entering into the following
        agreements dated on or about the date hereof, among others (all such agreements
        and documents, whether or not listed below, being referred to herein as the
        “Transaction Documents”): 

       

      (i)
        the
        XM Trade-mark Licence Agreement, under which CSR shall be permitted to use
        certain trademarks, service marks and other intellectual property and goodwill
        associated with XM and XM shall be permitted to use certain trademarks, service
        marks and other intellectual property and goodwill associated with CSR, in
        each
        case for the purposes specified therein (the “Trade-Mark Agreement”);

       

      (ii)
        the
        Programming Agreement (the “Programming Agreement”), which shall prescribe the
        terms by which XM shall broadcast the CSR Channels via the XM Satellites;
        

       

      (iii)
        the
        Technical Services Agreement (the “Technical Services Agreement”), pursuant to
        which XM will provide (1) certain technical support in connection with the
        installation and roll-out of terrestrial repeaters used to extend the reach
        of
        the Services within Canada and (2) other services, including technical
        assistance with interfaces between CSR and XM systems and operational support;
        and

       

      (iv)
        the
        Share Issuance Agreement, providing for the issuance to XM Parent of shares
        representing an agreed interest in CSR Parent, and the Shareholders Agreement,
        containing certain agreements on governance matters among CSR Parent, XM
        Parent
        and Canadian Satellite Radio Investments Inc.

       

      4. Licence
        to Distribute the XM CPackage Channels in Canada.

       

      
        	
                4.1

              	
                The
                  XM CPackage Offering.
                  The channels comprising the Services to be distributed in Canada
                  consist
                  of the XM CPackage Channels and the CSR Channels. The terms for producing
                  and distributing the CSR Channels are set forth in the Programming
                  Agreement. The “XM CPackage Channels” shall mean 72 SDARS programming
                  channels and four (4) specified part time channels broadcast by
                  XM from
                  time to time via the XM Satellites selected mutually by XM and
                  CSR from
                  the channels that are offered by XM as part of its basic SDARS
                  in the
                  United States. XM reserves the right to withdraw any channels from
                  the XM
                  CPackage Channels that XM is withdrawing from its U.S. service
                  or for
                  which neither XM nor CSR has Canadian distribution rights despite
                  their
                  efforts to acquire such rights. XM and CSR agree that approximately
                  50 of
                  the XM CPackage Channels will be music channels. XM shall have
                  the right
                  to determine the format, nature, content and quality of the XM
                  CPackage
                  Channels chosen by XM and CSR, taking into account Canadian regulatory
                  limitations and CSR’s desire for a marketable offering. If either party
                  wishes to increase the number of XM CPackage Channels beyond 72
                  channels
                  and four part time channels, the parties shall negotiate in good
                  faith
                  whether and on what terms to increase the number of CSR Channels
                  beyond
                  the initial nine (9) channels provided for in the Programming Agreement.
                  However, XM will not be obligated to increase the number of XM
                  CPackage
                  Channels beyond an aggregate of 72 channels and four part time
                  channels at
                  a time when the terms of the CRTC Licence prohibit more than 9
                  non-Canadian channels for each Canadian channel and the number
                  of CSR
                  Channels provided under the Programming Agreement still consists
                  of the
                  initial nine (9) channels. 

              

      

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	
                4.2

              	
                Changes
                  to the XM CPackage Offering.
                  If
                  (i) the CRTC determines that a particular XM CPackage Channel may
                  not be
                  distributed in Canada or attaches a condition prohibiting distribution
                  of
                  a particular XM CPackage Channel, or (ii) XM no longer has the
                  right to
                  distribute such XM CPackage Channel in Canada, the affected XM
                  CPackage
                  Channel shall not be included in the Services offered by CSR in
                  Canada and
                  Schedule A shall be deemed revised to reflect the same. In the
                  event of
                  the foregoing, CSR shall seek reconsideration from the CRTC to
                  permit
                  transmission of any such prohibited XM CPackage Channels as part
                  of the
                  Services offered by CSR within Canada. If the CRTC subsequently
                  approves
                  transmission of any such XM CPackage Channel and XM is continuing
                  to
                  broadcast that XM CPackage Channel, the XM CPackage Channel shall
                  thereafter be included in the Services offered by CSR in Canada
                  and
                  Schedule A shall be deemed revised to reflect such development.
                  All
                  replacement channels to be included in the XM CPackage Channels
                  shall be
                  mutually chosen by XM and CSR. 

              

      

       

      
        	
                4.3

              	
                Delivery
                  of Modified XM CPackages.
                  If one or more XM CPackage Channels are no longer included in the
                  Services, XM shall make commercially reasonable efforts in coordination
                  with CSR to disable reception of such XM CPackage Channels by Subscribers.
                  CSR acknowledges and agrees that XM will only be able to use commercially
                  reasonable efforts to restrict reception of such XM CPackage Channels
                  to
                  the extent XM receives the required information from CSR, and such
                  Subscriber and radio-related information including radio identification
                  data as may be reasonably requested by XM. XM will have no liability
                  to
                  CSR for any transmissions received by any Subscriber for which
                  CSR has
                  failed to provide accurate and complete information.
                  

              

      

       

      
        	
                4.4

              	
                Cross
                  Border Issues; Gray Market Subscribers.
                  The parties acknowledge that under present regulations and licences
                  XM may
                  not market its SDARS service to Canadian residents, and CSR may
                  not market
                  its SDARS service to U.S. residents. The parties further acknowledge
                  that
                  XM currently cannot prevent the reception of such XM CPackage Channels
                  or
                  any other XM channels and/or services in Canada by radios sold
                  with a U.S.
                  identification or configured to receive the U.S. service, including
                  radios
                  sold in the U.S. but transported to Canada, and cannot prevent
                  U.S.-based
                  subscribers from subscribing for CSR’s subscription offerings. The parties
                  also acknowledge that XM can only implement reception blocking
                  or package
                  swapping (replacing a U.S. package of channels for a Canadian package)
                  in
                  radios that are operating when XM broadcasts the signals that implement
                  such blocking or swapping, and cannot accept any liability to CSR
                  or to
                  any third party for any unauthorized receptions or for radios that
                  were
                  not operating when blocking or swapping signals were broadcast.
                  Within the
                  12 month period commencing on the effective date XM and CSR will
                  evaluate
                  the cost effectiveness of methods or technology that use credit
                  card
                  billing addresses from databases to identify “gray market” subscribers and
                  at CSR’s option will work in good faith to implement the same within such
                  12 month period. The cost of any changes to XM’s billing system to use
                  Canadian credit card billing addresses from databases to identify
“gray
                  market” subscribers shall be borne by CSR. If XM implements one or more
                  methods of or technologies for minimizing the number of or eliminating
                  “gray market” subscribers, it shall make the methods or technologies
                  available to CSR, and CSR shall implement the same to identify
                  Subscribers
                  with U.S. credit card billing addresses.

              

      

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	
                4.5

              	
                XM’s
                  Third Party Programming.
                  XM shall have sole responsibility for maintaining relationships
                  and
                  negotiating agreements with third party programming providers to
                  acquire
                  Canadian distribution rights for the XM CPackage Channels throughout
                  the
                  term of this Agreement. 

              

      

       

      
        	
                4.6

              	
                Performance
                  Rights Royalties.
                  With respect to the XM CPackage Channels, CSR shall be responsible
                  for all
                  costs and expenses incurred to obtain, maintain, and report on
                  all
                  performance rights, including all required payments to the Canadian
                  equivalents of ASCAP, BMI, SESAC, and the RIAA (i.e.,
                  SOCAN) and to all Canadian regulatory tribunals or ratemaking bodies
                  in
                  respect of the copyright rates that may be set for reproduction
                  or
                  retransmission of the Services in Canada, and all analogous amounts
                  payable as a result of the Canadian
                  Licences.

              

      

       

      
        	
                4.7

              	
                XM
                  CPackage Channels Compliance with Laws.
                  CSR will bring to XM’s attention any concerns that the programming content
                  of one or more of the XM CPackage Channels may not be permitted
                  by or be
                  consistent with Canadian law. The parties will work cooperatively
                  to
                  ensure that the XM CPackage Channels comply with all applicable
                  Canadian
                  laws, including any Canadian laws regarding programming content
                  that is
                  obscene, indecent, pornographic, defamatory, libelous, slanderous,
                  or
                  infringing of any third party’s intellectual property or other rights,
                  including without limitation, privacy, publicity or personality
                  rights.
                  

              

      

       

      
        	
                4.9

              	
                Licence
                  Expectations.
                  XM and CSR acknowledge
                  the expectation
                  of
                  the CRTC Licence
                  that
                  60% of the original Canadian-produced channels distributed by satellite
                  subscription radio undertakings in Canada be music channels,
                  and that failure to meet this
                  expectation
                  may impact the ability of CSR to renew the CRTC
                  Licence. XM
                  and CSR acknowledge
                  that CSR has committed that
                  7% of all new musical selections added to the playlists of the
                  XM CPackage
                  Channels each week shall be Canadian selections (the “CSR New Musical
                  Selections Commitment”). XM agrees to use reasonable commercial efforts,
                  at CSR’s sole cost and with CSR’s assistance in obtaining the requisite
                  programming, to add musical selections
                  to the playlists of the
                  XM CPackage
                  Channels in a manner that would enable CSR to meet the CSR New
                  Musical
                  Selections Commitment. 

              

      

       

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      
 

      
        	
                4.10

              	
                Insurance.
                  Each party
                  shall maintain, at its own cost and expense, commercial insurance
                  that is
                  reasonable and customary for a company of its size and circumstances,
                  including insurance covering the third party liability aspects
                  of its
                  obligations under this Agreement under an “errors and omissions” or
                  similar commercially available policy. The insurance requirement
                  in the
                  prior sentence shall apply to
                  the extent such insurance is available at a commercially reasonable
                  cost
                  in the commercial (as distinguished from specialty) insurance market.
                  Nothing in this Agreement or the other Transaction Documents shall
                  require
                  either party to obtain any special or unusual insurance coverage.
                  Such
                  insurance shall remain in force at all times during the Term hereof
                  and
                  for a period of five (5) years thereafter. Upon the reasonable
                  request of
                  one party, the requested party shall provide the requesting party
                  with a
                  certificate of insurance evidencing this coverage, or other appropriate
                  proof of continuing insurance coverage.

              

      

      

      5. Consideration.
        

       

      
        	
                5.1

              	
                As
                  consideration for the licence granted hereunder and
                  such related information, expertise, and ancillary services that
                  are the
                  subject of this XM System Licence Agreement,
                  CSR shall pay to XM the following fees.
                  

              

      

       

      
        	 	
                5.1.1

              	
                Subject
                  to Article 5.1.2 below, CSR will pay to XM, on a monthly basis,
                  15.0% of
                  all Subscriber revenue earned
                  by
                  CSR or any of its Affiliates with respect to each month for the
                  Basic
                  Canadian Service (the
                  “Basic
                  Canadian Service Fees”),
                  as determined in
                  accordance with Canadian generally accepted accounting principles,
                  applied
                  on a consistent basis.
                    

              

      

       

      
        	 	
                5.1.2

              	
                If
                  in any month CSR provides the Basic Canadian Service to persons
                  or
                  entities (which for such month shall be based upon the number of
                  cumulative activations, less the number of cumulative deactivations)
                  for a
                  per subscriber amount that is less than 70% of the amount XM then
                  is
                  charging on average per subscriber per month for its basic satellite
                  radio
                  service (comparing family plan, multi-year or other prepayment
                  plans and
                  other special groups of subscribers charged separate rates by XM
                  to
                  comparable plans for or groups of Subscribers), as converted into
                  Canadian
                  dollars based upon the average Bank of Canada noon spot rate for
                  such
                  month (the “Base Per Subscriber Amount”), then CSR shall be deemed to have
                  received, for purposes (and only for such purposes) of determining
                  the
                  Basic Canadian Service Fees, from each such person or entity Subscriber
                  fees in an amount equal to the Base Per Subscriber Amount; provided,
                  however, that to the extent that CSR provides the Basic Canadian
                  Service
                  for free or nominal amount on a short-term promotional basis to
                  prospective Canadian Subscribers, such persons shall be excluded
                  for
                  purposes of the Basic Canadian Service Fees calculation.
                  

              

      

       

      
        	 	
                5.1.3

              	
                For
                  greater certainty, CSR shall be entirely free to determine the
                  actual
                  prices and charges for the Services, activations, and other items
                  sold to
                  its Subscribers and other customers, and nothing in this Agreement
                  shall
                  limit CSR's ability to do so. 

              

      

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      
        	 	
                5.1.4

              	
                CSR
                  will pay to XM,
                  on a monthly basis, 50.0% of the net revenues earned by CSR or
                  any of its
                  Affiliates from any Premium Canadian Services (“Premium Canadian Service
                  Fees”), where “net revenues” shall be determined in accordance with
                  Canadian generally accepted accounting principles, applied on a
                  consistent
                  basis, but after excluding licensing, production, promotional and
                  distribution costs associated with such Premium Canadian Services.
                  The
                  parties acknowledge that this approach is being agreed to prior
                  to any
                  determination of how CSR will offer and market Premium Canadian
                  Services,
                  and that in the event XM notifies CSR that the 50.0% of net revenue
                  approach will not provide a meaningful economic return to XM, the
                  parties
                  shall negotiate in good faith a different approach to determining
                  XM’s
                  fees for the Premium Canadian
                  Services.

              

      

       

      
        	 	
                5.1.5

              	
                The
                  parties acknowledge that the Basic Canadian Service Fees are determined
                  on
                  a gross basis, without any deductions, based on the understanding
                  that
                  costs are to be borne in the manner specified in this Agreement.
                  In the
                  event that the parties agree that XM is to bear a portion of the
                  costs
                  allocated to CSR under this Agreement, the
                  parties shall
                  negotiate in good faith an
                  increase in the percentage specified in Article 5.1.1. Similarly,
                  the parties acknowledge that such percentage was negotiated based
                  upon an
                  understanding that approximately 50 of the XM CPackage Channels
                  would be
                  music channels and/or would not have any significant fees or other
                  amounts
                  being payable to third party costs programming providers. To the
                  extent
                  that the percentage of music or other no-fee channels is at any
                  time below
                  such range (other than for failure of CSR to agree to the selection
                  for
                  the XM CPackage Channels from music channels comprising part of
                  XM’s U.S.
                  service), the parties shall negotiate in good faith a reduction
                  in the
                  percentage specified in Article 5.1.1. The parties agree that the
                  percentage specified in Article 5.1.1 for the Basic Canadian Service
                  Fees
                  will not increase in the event the parties mutually agree that
                  the number
                  of XM CPackage Channels is to be increased beyond 72 channels and
                  four
                  part time channels.

              

      

       

      
        	 	
                5.1.6

              	
                CSR
                  shall pay XM
                  an
                  activation charge each time XM
                  activates
                  a Subscriber’s radio identification at the request of CSR, including costs
                  associated with reception blocking or package swapping efforts
                  by XM (each
                  an “Activation Charge”). 

              

      

       

      
        	
                5.2

              	
                For
                  purposes of this Agreement, an “Affiliate” is any entity that controls, is
                  controlled by or under common control with a party hereto; except
                  that
                  Affiliates of XM shall not include CSR, CSR Parent or any direct
                  or
                  indirect subsidiary of either (“CSR Entity”), and Affiliates of CSR shall
                  not include XM, XM Parent or any direct or indirect subsidiary
                  of either
                  that is not a CSR Entity.

              

      

       

      
        	
                5.3

              	
                CSR
                  shall be entitled to retain all advertising fees attributable to
                  advertising placed on any of the CSR Channels. CSR shall have no
                  rights to
                  share in any advertising fees attributable to advertising placed
                  on any of
                  the XM CPackage Channels. CSR acknowledges that under the Programming
                  Agreement channels with advertisements cannot be considered music
                  channels
                  or placed within the lineup of music channels included in the Services
                  (so
                  long as XM applies this policy to its
                  channels).

              

      

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      
        	
                5.4

              	
                CSR
                  shall pay the Basic Canadian Service Fees and Premium Canadian
                  Service
                  Fees to XM on a monthly basis in arrears, with payment for each
                  month to
                  be due by the tenth business day of the following month. CSR shall
                  provide
                  to XM, together with such payment, a report specifying the total
                  number of
                  Subscribers (on both a gross addition and ending Subscriber basis)
                  for
                  each of the Basic Canadian Service and the various Premium Canadian
                  Services (including also the number of family plan, multi-year
                  prepayment
                  plan and other pre-paid subscriptions), the number of Subscribers
                  from the
                  previous reporting period who cancelled or did not renew their
                  subscriptions, the number of Subscribers from the previous reporting
                  period who did not convert from trial or promotional programs (upon
                  conclusion of such trial or promotional programs) into self-paying
                  Subscribers, the total number of Subscribers on trial or promotional
                  programs, the total amount invoiced or otherwise charged to Subscribers,
                  the total amount actually collected, the amount of licensing, production,
                  promotional and distribution costs that were deducted from the
                  amounts
                  collected for Premium Canadian Services, the total amount of the
                  Basic
                  Canadian Service Fees and Premium Canadian Service Fees due to
                  XM for such
                  month and any other similar information reasonably requested by
                  XM from
                  time to time. The CSR subscriber information CSR provides to XM
                  shall be
                  at least as detailed as that reflected in the XM Daily Subscriber
                  Report
                  template provided by XM to CSR (including breakdowns of activity
                  by OEM
                  partner, retail partner, etc.). CSR will work with XM to provide
                  any
                  additional subscriber information, subject to privacy and personal
                  information regulation constraints, that may be requested by XM
                  from time
                  to time. All obligations of CSR to provide CSR subscriber information
                  are
                  subject to applicable provisions of Canadian law, including all
                  Canadian
                  privacy and personal information protection legislation, provided
                  that if
                  certain information cannot be provided as a result of such provisions
                  or
                  legislation, XM shall be entitled to require CSR to deliver other
                  CSR
                  subscriber information in lieu thereof that can be provided consistent
                  with such provisions or
                  legislation.

              

      

       

      
        	
                5.5

              	
                XM
                  shall invoice CSR on a monthly basis in arrears for all Activation
                  Charges
                  incurred during each month. CSR shall pay the amount set forth
                  in each
                  such invoice within ten (10) business days after receipt of such
                  invoice.

              

      

       

      
        	
                5.6

              	
                CSR
                  acknowledges and understands that XM currently has and in the future
                  will
                  obtain licenses for certain technology used to manufacture XM radios
                  and
                  similar devices from third party technology providers. In consideration
                  for XM sublicensing such technology to radio manufacturers or others
                  for
                  the benefit of CSR, such fees will be included in the Activation
                  Charge.

              

      

       

      
        	
                5.7

              	
                All
                  amounts to be paid by either party to the other hereunder shall
                  be paid by
                  wire transfer in immediately available funds to an account designated
                  in
                  writing by the party receiving such payment. Unless otherwise agreed
                  in
                  writing by the parties, all amounts payable by CSR for the fees
                  specified
                  above shall be payable in Canadian Dollars. To
                  the extent CSR is obligated to reimburse XM hereunder for amounts
                  paid by
                  XM in U.S. Dollars, CSR shall pay such amounts in U.S. Dollars
                  or in the
                  Canadian Dollar equivalent obtained by multiplying the applicable
                  U.S.
                  Dollar amount by the noon spot rate as listed by the Bank of Canada
                  two
                  business days prior to the date such payment is due, or if paid
                  prior to
                  such date, two business days prior to the date of payment (the
“Conversion
                  Rate”). All
                  amounts payable by XM shall be payable in U.S. Dollars, except
                  that to the
                  extent XM is obligated to reimburse CSR hereunder for amounts paid
                  by CSR
                  in Canadian Dollars, XM shall pay such amounts in Canadian Dollars.
                  

              

      

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      
        	
                5.8

              	
                XM
                  and CSR, respectively, shall be entitled to impose a late payment
                  charge
                  of one and one-half percent (1.5%) per month or the maximum amount
                  permitted by law (whichever is less) on all past due amounts owed
                  by CSR
                  or XM hereunder. In the event that XM or CSR has to proceed with
                  collection efforts to collect any past due amount, such party shall
                  be
                  entitled to be reimbursed for all costs of collection (including
                  reasonable attorneys’ fees) incurred as a result of such collection
                  efforts.

              

      

       

      
        	
                5.9

              	
                Neither
                  CSR nor XM will setoff or offset against the other any undisputed
                  amounts
                  that are claimed to be due to it. Each of CSR and XM waives any
                  right to
                  setoff, offset or withhold payment of amounts payable to the other
                  based
                  on any claims for any undisputed amounts that are due to it under
                  this
                  Agreement or otherwise.

              

      

       

      
        	
                5.10

              	
                CSR
                  shall maintain accurate and complete books and records of its financial
                  activities under this Agreement sufficient to enable XM to verify
                  CSR's
                  performance under this Agreement and the fees and other amounts
                  payable by
                  CSR to XM hereunder. Such books and records shall include, without
                  limitation, all records relating to the number of Subscribers,
                  the sale of
                  Services to Subscribers, the amounts collected therefrom, and the
                  fee
                  shares and other amounts payable by CSR to XM hereunder, and any
                  other
                  matters described in this Agreement as being subject to verification
                  and
                  audit. CSR shall maintain all such books and records at its principal
                  administrative office in Canada, or at an offsite provider of data
                  storage
                  services, throughout the term of this Agreement and for a period
                  of seven
                  (7) years thereafter. Such books and records shall be maintained
                  in
                  accordance with prudent standards of good record keeping and in
                  accordance
                  with applicable Canadian generally accepted accounting principles
                  (“GAAP”).

              

      

       

      
        	
                5.11

              	
                CSR
                  shall provide to XM, its auditors (including internal and external
                  auditors), inspectors, regulators and other representatives as
                  XM may from
                  time to time designate in writing, access at all reasonable times
                  to CSR’s
                  principal administrative office in Canada, and to books and records
                  and
                  other data relating to the Services, all as reasonably necessary
                  for the
                  purpose of enabling XM to perform audits and/or inspections thereof
                  in
                  order to: (1) verify the accuracy of the amounts paid by CSR to
                  XM under
                  this Agreement; and (2) CSR’s compliance with the other applicable terms
                  of this Agreement. All financial/accounting audits shall be conducted
                  during CSR's normal business hours and shall be conducted so as
                  to
                  reasonably avoid disruption to CSR’s business operations. Nothing in the
                  Agreement shall limit or restrict either party's rights in discovery
                  proceedings pursuant to any civil litigation. Such audits shall
                  be
                  conducted no more frequently than once per year, unless a prior
                  audit has
                  found material discrepancies or irregularities, in which case such
                  audits
                  may be conducted on a more frequent basis as is reasonable under
                  the
                  circumstances. In the event any audit indicates an underpayment,
                  the
                  discrepancy shall be paid within ten (10) business days from receipt
                  of
                  notice of such underpayment from the auditing party. If any audit
                  finds
                  material discrepancies or irregularities, CSR shall reimburse XM
                  for the
                  cost of such audit and all subsequent audits until one audit is
                  completed
                  without identifying any material discrepancies or irregularities.
                  For
                  purposes of this Article only, discrepancies or irregularities
                  shall be
                  considered material if they involve aggregate adjustments of 5%
                  or more.
                  

              

      

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
        	
                5.12

              	
                As
                  part of the consideration for the licence granted hereunder, CSR
                  Holding agrees to guarantee the payment and performance by CSR
                  of all
                  amounts due and all obligations of CSR hereunder. 

              

      

       

      6. Repeater
        Network; Broadcast Facilities; Technology.
        

       

      
        	
                6.1

              	
                CSR
                  has developed and provided to XM its master repeater plan, with
                  roll-out
                  schedules, for installing the terrestrial repeaters needed to extend
                  the
                  XM Satellite transmissions to mutually agreed locations within
                  Canada. The
                  parties understand that this master repeater plan will be revised
                  from
                  time to time based upon inputs from XM and CSR’ s authorized
                  repeater-related vendors. CSR shall use reasonable commercial efforts
                  to
                  implement the master repeater plan, taking into account the guidance
                  provided by XM’s engineers on coverage of the XM Satellites over the major
                  metropolitan areas of Canada and the design and engineering support
                  provided by XM. Notwithstanding the above, the Parties understand
                  that a
                  99.3% Service availability will be required along pre-determined
                  and
                  mutually agreed drive test routes within the mutually agreed market
                  area
                  for each city in which a repeater network shall be designed, deployed
                  and
                  maintained for such city network to be deemed complete and ready
                  for
                  launch of Services. Any changes to the master repeater plan affecting
                  Service availability, Service quality or timing of commencement
                  of
                  Services (including any modification to the 99.3% Service availability
                  requirement over time) shall be subject to the approval of
                  XM.

              

      

       

      
        	
                6.2

              	
                The
                  master repeater plan contains roll-out phases, including phases
                  relating
                  to initial launch of the Services and phases for the extension
                  and
                  expansion of the repeater network over time following launch. CSR
                  shall
                  use reasonable commercial efforts to implement the master repeater
                  plan
                  diligently and in accordance with the pre-launch and post-launch
                  roll-out
                  schedules.

              

      

       

      
        	
                6.3

              	
                CSR
                  shall use reasonable commercial efforts to cause the retransmissions
                  of
                  the Services within Canada of content via such repeaters to make
                  the
                  Services available to Subscribers twenty-four hours a day, seven
                  days a
                  week.

              

      

       

      
        	
                6.4

              	
                CSR
                  shall use reasonable commercial efforts to provide operations and
                  maintenance services, or ensure that such services are contracted
                  for and
                  provided for each repeater site in the repeater network throughout
                  the
                  Term of this Agreement. Such operations and maintenance services
                  will be
                  provided at a level substantially similar to that of XM’s operations and
                  maintenance services within the U.S. and shall include both preventive
                  and
                  corrective maintenance. 

              

      

       

      
        	
                6.5

              	
                CSR
                  shall monitor, or cause to be monitored, each repeater site for
                  performance and troubleshooting purposes on a twenty-four by seven,
                  three
                  hundred sixty five day per year basis and in a manner substantially
                  similar to how XM conducts such monitoring.

              

      

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        	
                6.6

              	
                CSR
                  has developed and provided to XM its master plan for its broadcast
                  operations infrastructure, including studio facilities, related
                  hardware
                  and software requirements and procurement of dedicated connectivity
                  between any and all CSR broadcast facilities and XM, with roll-out
                  schedules, for constructing and deploying these facilities. The
                  parties
                  agree and understand that this master broadcast operations infrastructure
                  plan will be revised from time to time based upon inputs from XM
                  and CSR’
                  s authorized repeater-related vendors.

              

      

       

      
        	
                6.7

              	
                XM
                  shall, in coordination with CSR, have primary responsibility for
                  maintaining relationships and negotiating agreements with third
                  party
                  technology providers to acquire intellectual property rights required
                  to
                  enable radios or other devices to receive the Services within Canada
                  throughout the term of this Agreement. Prior to obtaining such
                  rights from
                  any such third party technology provider, CSR and XM shall discuss
                  the
                  revenue share or other payment to be paid to each such provider
                  for such
                  rights, such payments to be set by reference to then-prevailing
                  market
                  practices with respect to sales of similar types of rights and
                  to the
                  payments paid by XM with respect to obtaining such rights within
                  the U.S.
                  Any resulting agreement will be entered into between CSR and such
                  provider. CSR agrees to enter into any such agreement that is a
                  reasonable
                  business proposition, which shall be determined by CSR using a
                  cost-benefit analysis based upon the CSR business plan, looking
                  to the
                  expected impact on CSR’s ability to obtain future Subscribers of obtaining
                  such distribution rights, the costs of the same and CSR’s ability to fund
                  such costs with its current or expected financial resources. CSR
                  will
                  provide to XM promptly all of the cost-benefit analyses performed
                  by CSR
                  regarding acquisition of intellectual property rights, and will
                  consult
                  with XM concerning each of these analyses prior to finalization.
                  XM agrees
                  to assist CSR with such cost-benefit analyses and CSR will use
                  reasonable
                  efforts to take into account XM’s views regarding such cost-benefit
                  analyses.

              

      

       

      
        	
                6.8

              	
                If
                  at any time there is a disruption in the satellite transmission
                  of the
                  Services in the Canadian footprint of the XM Satellites for a period
                  of
                  greater than five minutes as a result of an error, problem or failure
                  with
                  or originating with the XM Satellites or XM’s satellite network system,
                  and not, for greater certainty, CSR’s terrestrial repeater network (a
                  “Service Disruption”), CSR will immediately notify XM, and XM shall keep
                  CSR advised of XM’s efforts to resolve the Service Disruption (provided
                  that XM shall have no obligation to provide technical data to
                  CSR). 

              

      

       

      
        	
                6.9

              	
                XM
                  agrees that in the event of a decision by XM to discontinue, in
                  whole or
                  in substantial part, offering U.S.-based SDARS, it shall provide
                  CSR with
                  such prior written notice that is reasonable under the
                  circumstances.

              

      

       

      7. Responsibilities
        for Activations and Deactivations, Billing and Customer Service, and System
        Coordination.

       

      
        	
                7.1

              	
                To
                  activate new Subscribers, CSR shall provide XM, or direct that
                  its
                  distribution partners provide XM as mutually agreed, with an activation
                  request, together with all information reasonably requested by
                  XM or
                  specified in any standard procedures prepared by XM and delivered
                  to CSR.
                  Activation requests to XM will be sent via computer system interface
                  or
                  other electronic transmission in a form reasonably requested by
                  XM or
                  specified in any standard procedures prepared by XM and delivered
                  to CSR.
                  XM will send notice to CSR via computer system interface or other
                  electronic transmission after each Subscriber activation becomes
                  effective. XM can only confirm that XM’s business and uplink systems have
                  successfully processed the request and that over-the-air activation
                  signals are being transmitted. The business systems and uplink
                  systems
                  will indicate that the state of the device is “activated”. Activation of
                  the device requires reception of the "activation signal". Reception
                  can be
                  affected by a multitude of issues. XM shall have the right to assign
                  or
                  allocate radio identification codes to activate Subscribers, and
                  to
                  control all encryption and security functions related to receipt
                  of
                  service from the XM Satellites.

              

      

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	
                7.2

              	
                CSR
                  shall be responsible for advising XM of the need to deactivate
                  Subscribers. CSR shall adopt (in consultation with XM) a policy
                  of when to
                  deactivate non-paying Subscribers, but agrees to provide a copy
                  of such
                  policy and any updates to such policy to XM and to implement such
                  policy
                  vigorously. The parties acknowledge that CSR shall be entitled
                  for a
                  credit for the period after it has advised XM in accordance with
                  this
                  Agreement of the need to deactivate Subscribers until a Subscriber
                  is
                  deactivated for purposes of the Subscriber fee formula in Article
                  5.1
                  above if, but only if, CSR submits to XM reasonably detailed information
                  regarding the Subscribers that were deactivated and the time period
                  between notification and deactivation. CSR shall indemnify and
                  hold XM
                  harmless from any and all loss, liability, cost, damages and expenses
                  suffered, including reasonable legal fees and expenses, with respect
                  to
                  any third party claim based on any deactivation by XM based upon
                  a
                  deactivation request from CSR. To deactivate Subscribers, CSR shall
                  provide XM with a deactivation request, together with all information
                  reasonably requested by XM or specified in any standard procedures
                  prepared by XM and delivered to CSR. Deactivation requests to XM
                  will be
                  sent via computer system interface or other electronic transmission
                  in a
                  form reasonably requested by XM or specified in any standard procedures
                  prepared by XM and delivered to CSR. XM will send notice to CSR
                  via
                  computer system interface or other electronic transmission to notify
                  CSR
                  after each Subscriber deactivation becomes effective. The parties
                  acknowledge that XM can only confirm that XM’s business and uplink systems
                  have successfully processed the request and that over-the-air deactivation
                  signals are being transmitted. The business systems and uplink
                  systems
                  will indicate that the state of the device is “deactivated”. Deactivation
                  of the device requires reception of the "deactivation signal,"
                  and
                  reception can be affected by a multitude of issues outside of the
                  control
                  of XM. There are situations where XM will seek to deactivate to
                  limit
                  fraud. Examples of this situation are "factory activated" devices
                  that
                  have been installed for more than a certain period of time but
                  have never
                  been activated by CSR, even after the vehicle in which the device
                  is
                  installed has been sold to a consumer.

              

      

       

      
        	
                7.3

              	
                Information
                  needed for Subscriber activation
                  and deactivation shall
                  be in the format reasonably requested by XM and in accordance with
                  Article
                  7.1 and Article 7.2, which may include computer data files formatted
                  as
                  specified by XM, and transmitted via computer system interface
                  or other
                  electronic transmission in a form reasonably requested by XM or
                  specified
                  in any standard procedures prepared by XM and delivered to CSR.
                  Once
                  information complying with the foregoing is received by XM, it
                  will
                  activate or deactivate Subscribers consistent with the level of
                  effort and
                  with the timing as XM uses for its own U.S.-based subscribers.
                  XM shall
                  have no liability to CSR for failures to activate or deactivate
                  Subscribers within any specified period, and CSR shall be responsible
                  for
                  re-notifying XM if CSR has not received notice from XM confirming
                  the
                  Subscriber activation or
                  deactivation.

              

      

       

      
        	
                7.4

              	
                The
                  parties shall conduct a reconciliation of activated and deactivated
                  Subscribers on at least a quarterly basis, or on such other basis
                  as the
                  parties may agree upon. Information needed for the reconciliation
                  shall be
                  in the format reasonably requested by XM, which may include computer
                  data
                  files formatted as specified by XM, and transmitted via computer
                  system
                  interface or other electronic transmission in a form reasonably
                  requested
                  by XM or specified in any standard procedures prepared by XM and
                  delivered
                  to CSR. When the reconciliation is completed, XM will send notice
                  to CSR
                  via computer system interface or other electronic transmission
                  to notify
                  CSR of any discrepancies identified by XM in the reconciliation.
                  Following
                  receipt of this notice, the parties shall promptly address whether
                  additional Subscriber activation or deactivation requests need
                  to be
                  submitted to XM, or whether
                  XM needs to process previously submitted activation or deactivation
                  requests, and will report to each other on the resolution of such
                  discrepancies.
                  

              

      

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      
        	
                7.5

              	
                XM
                  shall be responsible for managing Subscriber-related and partner-related
                  data generated by the XM system only for the purposes of activating
                  and
                  deactivating or otherwise enabling Subscribers and/or Services.
                  CSR shall
                  have control over and be responsible for all other Subscriber management,
                  and Subscriber lists including, but not limited to, all billing
                  and
                  collections with respect to Subscribers, and shall account to XM
                  for the
                  same as provided above in Article 5.09 and 5.10. XM shall not be
                  liable to
                  CSR for any failure to bill or collect from Subscribers, whether
                  or not
                  such failure is alleged to have arisen from information provided
                  or not
                  provided by XM. CSR shall be responsible for maintaining systems
                  for
                  financial, billing and collection (including credit card processing)
                  matters, tax monitoring and other tax matters, settling revenue
                  share or
                  similar payments with distribution partners, human resources, vendor
                  payments and the like. For greater certainty, the parties acknowledge
                  that
                  all Subscribers are CSR’s subscribers, and CSR has sole responsibility for
                  such Subscribers.

              

      

       

      
        	
                7.6

              	
                CSR
                  shall be responsible for providing to Subscribers information via
                  email or
                  other methods regarding new channels and programming, special events
                  and
                  the like. XM shall provide emails of information relating to the
                  XM
                  CPackage Channels to CSR, and CSR shall be responsible for tailoring
                  this
                  information for the Canadian market and for distribution of the
                  relevant
                  information, and information relating to the CSR Channels, to Subscribers.
                  CSR shall be responsible for administering the websites relating
                  to the
                  Services. If XM provides to CSR promotional materials from third
                  parties
                  that are subject to terms and conditions concerning usage, XM shall
                  notify
                  CSR of such terms and conditions, and CSR shall comply with the
                  same.

              

      

       

      
        	
                7.7

              	
                CSR
                  shall be responsible for providing all first-level listener care
                  and
                  customer and technical support to its Subscribers to handle
                  account-related issues, technical support issues and other issues
                  that
                  arise in connection with the Services. CSR and XM shall coordinate
                  on the
                  resolution of technical quality issues affecting Subscriber reception
                  of
                  the Services. XM shall be available to assist CSR in correcting
                  technical
                  problems relating to the terrestrial repeaters and elements of
                  the overall
                  transmission system located within Canada to the extent provided
                  in the
                  Technical Services Agreement. 

              

      

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      
        	
                7.8

              	
                CSR
                  shall adopt (in consultation with XM) policies and procedures regarding
                  Subscriber management, listener care, billing, collections, activations
                  and deactivations and other Subscriber-related functions. CSR agrees
                  to
                  provide a copy of each such policy to XM and any updates to such
                  policy,
                  and in general to comply with such policies.

              

      

       

      
        	
                7.9

              	
                CSR
                  acknowledges that XM will have certain data fields in its music
                  libraries
                  and other databases intended to capture data regarding the content
                  of
                  certain channels or selections being Canadian originated, and other
                  specific data designed to evidence compliance with the Canadian
                  Licences.
                  Except as provided below, CSR agrees to furnish such data in accordance
                  with the terms of this Article 7. However, to the extent requested
                  by XM,
                  CSR agrees to input any such data directly into the XM database
                  system to
                  populate the Canadian content or other Canadian Licence information
                  data
                  fields. Unless otherwise mutually agreed, all data entry shall
                  be made
                  through a computer system interface developed or specified by
                  XM,
                  and to the extent XM has or acquires the rights needed to do so,
                  XM hereby
                  grants CSR a royalty free license to proprietary technology in
                  the
                  interface to the extent necessary for, and solely for the limited
                  purpose
                  of, making such
                  data entry.
                  CSR shall be solely responsible for the accuracy and completeness
                  of any
                  data it enters into the system. CSR shall not have the right to
                  access or
                  update any data fields in the XM database system that XM does not
                  specifically authorize. CSR shall indemnify and hold XM harmless
                  from any
                  and all loss, liability, cost, damages and expenses suffered, including
                  reasonable legal fees and expenses, with respect to any claim based
                  on or
                  arising out of CSR’s access and updates to the XM database
                  system.

              

      

       

      
        	
                7.10

              	
                The
                  parties shall coordinate from time to time with regard to computer
                  system
                  interfaces in order to maintain compatibility and expedite the
                  activation
                  and deactivation processes, transfer information needed for billing
                  and
                  like matters. XM will make available to CSR rights to generally
                  commercially available technology licenses relating to the matters
                  covered
                  by this Article 7 to the extent permitted by the terms of such
                  licenses.
                  CSR will bear a proportional share of the cost of any such licenses
                  used
                  by CSR, and shall abide by all terms and conditions of such technology
                  licenses. CSR shall be responsible for obtaining rights to all
                  other
                  technology licenses it needs for the matters covered by this Article
                  7.
                  CSR acknowledges that XM must maintain a single, unified system
                  for both
                  U.S. and Canadian subscribers, that it is incumbent on CSR to choose
                  (in
                  consultation with XM, if appropriate) systems that are compatible
                  with
                  those currently deployed by XM or that may be deployed from time
                  to time
                  in the future by XM and that any failure to coordinate or maintain
                  compatibility (and any resulting loss of or inability to process
                  data
                  transmitted by XM) shall be at CSR’s sole risk and expense.
                  

              

      

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      
 

      
        	
                7.11

              	
                In
                  addition to the Subscriber information required under Article 5.4,
                  CSR
                  shall provide to XM such aggregated anonymous information as XM
                  may
                  reasonably request regarding Subscribers to the Services, including
                  demographic information, the distribution channel through which
                  the
                  Subscriber was originated and Subscriber churn, and agrees that,
                  subject
                  to applicable Canadian privacy and protection of personal information
                  laws, XM may use such information for planning purposes and public
                  disclosures regarding the users of XM’s satellite radio system. CSR shall
                  be responsible for obtaining all approvals and consents from Subscribers
                  necessary under applicable Canadian data and other privacy and
                  protection
                  of personal information laws for CSR to transmit the data outside
                  Canada
                  and into the U.S., for XM to receive data and process it in the
                  manner
                  discussed in this Article 7, and shall notify XM from time to time
                  of the
                  requirements of all such laws relevant to XM processing data in
                  the manner
                  discussed in this Article 7.

              

      

       

      8. Launch
        of Service.
        

       

      
        	
                8.1

              	
                Each
                  party shall expeditiously complete those activities assigned to
                  it in this
                  Agreement and in the other Transaction Documents as required to
                  enable CSR
                  to launch the Services within Canada as soon as practicable. CSR
                  shall
                  give XM at least 30 days prior written notice of the expected launch
                  date,
                  which launch date shall not be earlier than 30 days after CSR has
                  all of
                  the necessary facilities in place and ready for testing. If based
                  on the
                  testing XM reasonably concludes that the Services cannot be provided
                  with
                  a quality level both in accordance with Article 6.1 and substantially
                  similar to the quality level of XM’s service within the U.S., XM shall
                  have the right to provide a detailed written notice of the same
                  to CSR.
                  Following receipt of any such notice, CSR shall defer the launch
                  of
                  Services until it has adequately addressed XM’s concerns as set forth in
                  the notice, and CSR shall comply again with the provisions of this
                  paragraph with respect to the deferred launch of
                  services.

              

      

       

      
        	
                8.2

              	
                With
                  respect to CSR, such activities shall include the
                  following:

              

      

       

      
        	 	
                8.2.1

              	
                Taking
                  any further steps required with respect to the Canadian Licences
                  required
                  to provide the Services. 

              

      

       

      
        	 	
                8.2.2

              	
                Installing
                  the terrestrial repeaters contemplated by CSR’s master repeater plan to be
                  installed and in service prior to launch of the Services.
                  

              

      

       

      
        	 	
                8.2.3

              	
                Establishing
                  all processes, procedures and systems,
                  including but not limited to development, implementation and operation
                  of
                  information technology infrastructure and customer care operation,
                  needed
                  by CSR in order to perform its Subscriber-related functions as
                  described
                  in Article 7, including procuring and installing all necessary
                  hardware
                  and software, and providing XM with all the information it reasonably
                  requests in a ready-to-process, compatible form based on XM’s reasonable
                  specifications, as provided further in Article 7.
                  

              

      

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      
        	 	
                8.2.4

              	
                Providing
                  the CSR Channels as contemplated by the Programming Agreement and
                  commencing delivery of the CSR Channels to XM’s ground uplink facilities
                  as described in the Programming
                  Agreement.

              

      

       

      
        	 	
                8.2.5

              	
                Successfully
                  completing such tests of all terrestrial repeaters, broadcast operations,
                  provisioning (including both activation and deactivation), Subscriber
                  management, customer care and other systems and the Services as
                  reasonably
                  specified by and with results reasonably satisfactory to XM.
                  

              

      

       

      
        	 	
                8.2.6

              	
                Completing
                  the marketing plan contemplated by Article 9 and performing the
                  pre-launch marketing and promotional activities in that plan.
                  

              

      

       

      
        	 	
                8.2.7

              	
                Completing
                  the build-out of broadcast operations infrastructure in accordance
                  with
                  the broadcast operations infrastructure plan, including studio
                  facilities,
                  related hardware and software requirements and procurement of dedicated
                  connectivity between any and all CSR broadcast facilities and XM.
                  

              

      

       

      
        	 	
                8.2.8

              	
                Entering
                  into hardware agreements with XM-licenced hardware providers, including,
                  but not limited to Delphi, to ensure adequate supply of XM radios
                  in
                  Canada, provided that the same can be obtained on commercially
                  reasonable
                  terms.

              

      

       

      
        	 	
                8.2.9

              	
                Entering
                  into agreements with automobile manufacturers, radio manufacturers
                  and
                  other original equipment manufacturers (“OEMs”), including but not limited
                  to General Motors of Canada Limited, for the installation of radios
                  in
                  automobiles, provided that such agreements are on commercially
                  reasonable
                  terms.

              

      

       

      
        	 	
                8.2.10

              	
                Entering
                  into retail distribution agreements with national and regional
                  retailers,
                  including retailers required to ensure a CSR presence in the province
                  of
                  Quebec.

              

      

       

      
        	 	
                8.2.11

              	
                Acquire
                  or create the content required under the Programming
                  Agreement.

              

      

       

      
        	 	
                8.2.12

              	
                Completing
                  updates to XM’s music library, in a manner reasonably acceptable to XM, as
                  required to address Canadian content requirements and all conditions
                  of
                  the Canadian Licences and any requirements of performance rights
                  organizations in the footprint of the XM Satellites (including
                  in the U.S.
                  and Canada) if precipitated by CSR’s business in Canada and/or the
                  broadcast of the CSR Channels. 

              

      

       

      
        	 	
                8.2.13

              	
                Completing
                  a current version of CSR’s business plan as described in Article 11.1
                  below.

              

      

       

      
        	 	
                8.2.14

              	
                Having
                  in place the personnel and expertise required to support the build-out,
                  launch and continued operations of the business.
                  

              

      

       

      
        	 	
                8.2.15

              	
                Fulfilling
                  its obligations under the other Transaction Documents.
                  

              

      

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      
        	
                8.3

              	
                With
                  respect to XM, such activities shall include completing the radio
                  frequency design and engineering work described in the Technical
                  Services
                  Agreement, setting up the processes and procedures required to
                  provide
                  Subscriber activation, channel blocking/package swapping and other
                  support
                  described in Article 7, putting in place the procedures required
                  to
                  broadcast the CSR Channels described in Article 4.1 and fulfilling
                  its
                  obligations under the other Transaction Documents, including the
                  provisioning of terrestrial repeaters as required by such Transaction
                  Documents. 

              

      

       

      
        	
                8.4

              	
                CSR
                  shall use reasonable commercial efforts to have an initial launch
                  (defined
                  as 4 cities) of the Services as soon as practicable after CSR has
                  received
                  sufficient authority to do so under the Canadian Licences, or on
                  such
                  other date as is mutually agreed upon between the parties (the
“Launch
                  Date”). 

              

      

       

      
        	
                8.5

              	
                Subject
                  to written approval by XM, CSR may implement an early entry market
                  strategy under which CSR would provide Services on a limited geographic
                  basis prior to the Launch Date. CSR will be responsible for developing
                  an
                  early entry plan and presenting such plan to XM. Any early entry
                  plan will
                  require CSR to have obtained all necessary regulatory approvals
                  and
                  licenses, including any licenses that are required to carry out
                  the early
                  entry plan that are in addition to the Canadian Licences. If CSR
                  does not
                  have all of the necessary operations and facilities in place and
                  ready for
                  testing within at least 30 days prior to any mutually agreed to
                  early
                  entry date, or if based on the testing XM reasonably concludes
                  that the
                  Services cannot be provided with a quality level substantially
                  similar to
                  that of XM’s service within the U.S., XM shall have the right to provide
                  written notice of the same to CSR. Following receipt of any such
                  notice,
                  CSR shall defer the early entry commencement of Services until
                  it has
                  adequately addressed XM’s concerns as set forth in the notice, and CSR
                  shall comply again with the provisions of this paragraph with respect
                  to
                  the early entry commencement of Services.

              

      

       

      9. Promotion,
        Marketing and Distribution.
        

       

      
        	
                9.1

              	
                From
                  and after the Launch Date, CSR shall vigorously promote the sales
                  of the
                  Services to Subscribers within Canada, and to maximize such sales.
                  CSR
                  will aggressively advertise the Services within Canada in accordance
                  with
                  a marketing plan to be developed in consultation with XM within
                  sixty (60)
                  days after the Effective Date (or within 30 days after the Effective
                  Date
                  for the relevant portion of the marketing plan applicable to any
                  early
                  entry plan), which marketing plan shall be based upon the business
                  plan of
                  CSR concerning the expected ability of CSR to fund such costs with
                  its
                  current or expected financial resources.

              

      

       

      
        	
                9.2

              	
                CSR
                  will develop, at its expense, promotional or other written materials
                  relating to the Services (including, at CSR’s option, adapting materials
                  supplied by XM for use in Canada). CSR will obtain XM’s prior written
                  consent to each reference in its promotional materials to XM, other
                  than
                  those supplied by XM to CSR. CSR will not use advertisements referring
                  to
                  XM or XM’s satellite radio service, its content or its
                  features,
                  other than those supplied by XM to CSR,
                  that have not been pre-approved in writing by XM. CSR hereby assigns
                  to XM
                  (or waives, as necessary) all its right, title and interest in
                  all such
                  modified materials, including but not limited to all related copyrights
                  and moral rights therein.

              

      

       

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      
        	
                9.3

              	
                CSR
                  will at its expense: (i) upon the reasonable request of XM, attend
                  and
                  promote the Services jointly with XM in up to six of the industry
                  trade
                  shows, conventions and exhibits each year; (ii) attend significant
                  sales
                  meetings held by XM to which XM invites CSR with reasonable notice;
                  and
                  (iii) provide XM personnel periodic opportunities to provide sales
                  and
                  promotion information and make presentations in CSR's sales meetings.
                  CSR
                  will confer with XM from time to time at the request of XM on matters
                  relating to market conditions, sales forecasting and product planning
                  relating to the Services.

              

      

       

      
        	
                9.4

              	
                CSR
                  will have primary responsibility, in consultation with XM, for
                  maintaining
                  relationships and negotiating distribution agreements for Canada
                  with
                  U.S.-based retailers that sell XM’s satellite radio services within the
                  U.S. (such as the Canadian operations of Best Buy, Circuit City
                  and
                  Wal-Mart) and that have retail sales operations within Canada for
                  such
                  retailers to sell the Services offered by CSR within Canada. Prior
                  to CSR
                  authorizing any such retailer to sell the Services, CSR and XM
                  shall
                  discuss the commission, revenue share or other payment to be paid
                  to each
                  such retailer for generating any new Subscribers for the Services,
                  with
                  reference to then-prevailing market practices with respect to sales
                  of
                  similar types of services and to the commissions or other payments
                  paid by
                  XM with respect to sales of its satellite radio services within
                  the U.S.
                  Any resulting agreement will be entered into between CSR and such
                  retailer, and will not (without the prior approval of XM) address
                  arrangements outside of Canada. CSR agrees to accept any order
                  for
                  Services placed by a Subscriber in Canada through any such authorized
                  retailer, and to thereafter provide Services to such Subscriber
                  in
                  accordance with this Agreement, and CSR’s standard Subscriber
                  Agreement.

              

      

       

      
        	
                9.5

              	
                CSR
                  will have primary responsibility, in consultation with XM, for
                  maintaining
                  relationships and negotiating strategic marketing agreements for
                  Canada
                  with U.S.-based airlines, hotels, cable companies and similar entities
                  that wish to incorporate XM’s satellite radio services within the services
                  offered by such entities to their patrons or customers in Canada.
                  Prior to
                  CSR authorizing any such retailer to sell the Services, CSR and
                  XM shall
                  discuss the commission, revenue share or other payments to be made
                  in such
                  agreement, with reference to then-prevailing market practices with
                  respect
                  to similar types of services and amounts paid in similar agreements
                  to
                  which XM is a party with respect to the U.S. Any resulting agreement
                  will
                  be entered into between CSR and such strategic marketing entity,
                  and will
                  not (without the prior approval of XM) address arrangements outside
                  of
                  Canada. 

              

      

       

      
        	
                9.6

              	
                CSR
                  shall, upon XM’s written instructions, authorize one or more automobile
                  manufacturers, radio manufacturers and other OEMs to distribute
                  the
                  Services within Canada throughout the term of this Agreement. XM
                  will have
                  primary responsibility for maintaining relationships and negotiating
                  distribution agreements for Canada with such OEMs, and CSR will
                  have
                  primary responsibility for negotiating joint or co-marketing arrangements
                  with such OEMs in consultation with XM. Prior to authorizing any
                  such OEM
                  to distribute the Services, CSR and XM shall mutually agree with
                  respect
                  to the revenue share or other payment to be paid to each such OEM
                  for
                  generating any new Subscribers for the Services, such payments
                  to be set
                  by reference to then-prevailing market practices with respect to
                  sales of
                  similar types of services and to the payments paid by XM with respect
                  to
                  sales of its satellite radio services within the U.S. Any resulting
                  agreement will be entered into among XM, CSR and such OEM. CSR
                  agrees to
                  accept any order for Services placed by a Subscriber in Canada
                  through any
                  such authorized OEM, and to thereafter provide Services to such
                  Subscriber
                  in accordance with this Agreement, and CSR’s standard Subscriber
                  Agreement. 

              

      

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      
        	
                9.7

              	
                The
                  parties acknowledge and agree that many of the parties with which
                  CSR
                  needs to enter into arrangements, agreements or relationships relating
                  to
                  the Services, including radio manufacturers, retail distributors,
                  strategic marketing entities, technology providers and others,
                  also have
                  or will have arrangements, agreements or relationships with XM
                  relating to
                  XM’s U.S. service (a “Shared Relationship”). With respect to any existing
                  or proposed Shared Relationship, since the Shared Relationship
                  relates to
                  a single service, distributed in the United States and Canada,
                  CSR agrees
                  to cooperate and coordinate with XM to the extent and in the manner
                  reasonably requested by XM to enable XM to maintain a successful
                  relationship with such person or entity for the benefit of both
                  XM’s U.S.
                  service, and to coordinate the terms and conditions for the Canadian
                  Service with those of XM’s U.S. service to obtain volume discounts and
                  consistent arrangements for particular technologies, joint advertising
                  and
                  marketing, and the like. 

              

      

       

      
        	
                9.8

              	
                CSR
                  will enter into a subscriber agreement with each Subscriber that
                  purchases
                  Services from CSR (each a “Subscriber Agreement”). Each Subscriber
                  Agreement will contain provisions, reasonably satisfactory to XM,
                  providing generally that (i) XM makes no warranty, and shall have no
                  liability, with respect to the provision or non-provision of the
                  Services,
                  the content of the Services or any other matter relating to CSR’s business
                  or operations within Canada, and (ii) the Services are offered
                  by CSR, not
                  XM, and XM is not responsible for any commitments, agreements,
                  representations or warranties by CSR.

              

      

       

      
        	
                9.9

              	
                Each
                  party will: (i) conduct business in a manner that reflects favorably
                  at
                  all times on the Services and the good name, good will and reputation
                  of
                  the other; (ii) avoid deceptive, misleading or unethical practices
                  that
                  are or might be detrimental to the other, the Services or the public;
                  (iii) make no false or misleading representations with regard to
                  the other
                  or the Services; (iv) not publish or employ, or cooperate in the
                  publication or employment of, any misleading or deceptive advertising
                  material with regard to the other or the Services; (v) make no
                  representations, warranties or guarantees to customers or to the
                  trade
                  with respect to the specifications, features or capabilities of
                  the
                  Services that are inconsistent with the literature distributed
                  by the
                  other describing its satellite radio services; and (vi) not enter
                  into any
                  contract or engage in any practice detrimental to the interests
                  of the
                  other in the Services.

              

      

       

      
        	
                9.10

              	
                CSR
                  will comply with all applicable national, state, regional, provincial
                  and
                  local laws and regulations in performing its duties hereunder and
                  in any
                  of its dealings with respect to the
                  Services.

              

      

       

      
        	
                9.11

              	
                CSR
                  will not seek to place U.S.-focused advertisements on the CSR Channels
                  without coordinating with XM in advance and obtaining XM’s approval to do
                  so, except as may be specifically contemplated by the Programming
                  Agreement. However,
                  in the event that CSR refers to XM any customer that purchases
                  advertising
                  from XM for placement in any of the XM CPackage Channels, XM shall
                  pay to
                  CSR a referral fee consistent with commissions paid by XM to its
                  advertising sales force generally,
                  provided that consent to payment of such fee is obtained from the
                  customer
                  after appropriate disclosure
                  (and XM agrees to provide such disclosure and seek such consent).
                  Similarly, in the event that XM refers to CSR any customer that
                  purchases
                  advertising from CSR for placement in any of the CSR Channels,
                  CSR shall
                  pay to XM a referral fee consistent with commissions paid by CSR
                  to its
                  advertising sales force generally, provided that consent to payment
                  of
                  such fee is obtained from the customer after appropriate disclosure
                  (and
                  CSR agrees to provide such disclosure and seek such consent).
                  

              

      

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      10. 
        Other Regulatory Filings.
        XM
        shall consult and coordinate with CSR from time to time regarding filings
        with
        US or Canadian regulatory tribunals or ratemaking bodies in respect of the
        copyright rates that may be set for reproduction or retransmission of the
        Services in Canada.
        

       

      11. 
        Business Plan, Compliance.
        

       

      
        	
                11.1

              	
                The
                  current version of CSR’s business plan has been provided to XM prior to
                  execution of this Agreement, and CSR will provide to XM promptly
                  all
                  amended or updated versions of such business
                  plan.

              

      

       

      
        	
                11.2

              	
                CSR
                  will be responsible for ensuring that all financing of CSR’s business will
                  be consistent with the requirements of the Canadian Licences, including
                  all orders, decisions, rulings and policies of the CRTC requiring
                  holders
                  of CRTC licences to maintain a minimum investment from Canadian
                  sources.
                  

              

      

       

      12.  XM’s
        Representations, Warranties and Covenants.
        XM
        represents, warrants and covenants to CSR that:

       

      
        	
                12.1

              	
                XM
                  owns or has sufficient rights in and to the XM Satellites, the
                  satellite
                  transmission spectrum, the associated regulatory licences, permits
                  and
                  regulatory approvals needed to operate the XM Satellites to grant
                  the
                  licence herein and enter into this
                  Agreement.

              

      

       

      
        	
                12.2

              	
                XM
                  has the full power and authority and has obtained all necessary
                  rights
                  and/or permissions to grant the licences contemplated in this Agreement.
                  Without limiting the generality of the foregoing, XM has secured
                  all
                  necessary rights from talent or other third parties in order to
                  grant CSR
                  the licence to use the XM CPackage Channels and advertising included
                  therein as described in this Agreement, and upon request from CSR,
                  shall
                  furnish appropriate documentation
                  evidencing such rights. The XM
                  CPackage Channels and
                  XM advertising
                  in
                  the form delivered by XM when used for the purpose and in the manner
                  contemplated by this Agreement: (i) do not and will not infringe
                  upon any
                  United States, Canadian, or other foreign copyright, trade name,
                  trademark, service mark, trade secret, literary or dramatic right
                  or other
                  proprietary right of any third person (including the right of privacy
                  and
                  publicity) in connection with the transmission of the XM CPackage
                  Channel
                  within the XM footprint; (ii) will not violate the terms of any
                  music
                  performance rights licence of XM (compulsory or otherwise); and
                  (iii) will
                  comply with all applicable governmental laws and regulations. XM
                  shall
                  comply with all applicable reporting processes and royalty payment
                  requirements with respect to all applicable U.S. performance rights
                  societies. 

              

      

       

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      
        	
                12.3

              	
                XM
                  shall use reasonable commercial efforts to make the XM CPackage
                  Channels
                  and CSR Channels available to CSR for distribution to its Subscribers
                  via
                  broadcast over XM’s satellites throughout the footprint of the XM
                  Satellites within Canada twenty-four hours a day, seven days a
                  week;
                  provided that XM shall have no obligations or liability with respect
                  to
                  any satellite or other failures that cause the Services to be unavailable
                  within Canada for any period.

              

      

       

      
        	
                12.4

              	
                XM
                  shall use reasonable commercial efforts to make the signal quality
                  and
                  strength for the XM CPackage Channels and CSR Channels transmitted
                  between
                  the XM Satellites and the ground of high quality throughout the
                  coverage
                  beam of such satellites within Canada twenty-four hours a day,
                  seven days
                  a week; provided that CSR acknowledges that the XM Satellites do
                  not cover
                  the entire land area of Canada and that as with any satellites
                  the quality
                  of coverage declines with decreases in the “look angle” of the satellites
                  below certain levels, and provided further that XM shall have no
                  obligations or liability with respect to the quality of the
                  re-transmissions from CSR’s terrestrial repeaters to other locations
                  within Canada.

              

      

       

      Subject
        to the exclusion set forth in Article 18.1, XM shall indemnify and hold CSR
        harmless from any and all loss, liability, cost, damages and expenses suffered
        including reasonable legal fees and expenses, with respect to any third party
        claim based on: (i) any breach or violation by XM or any of its agents of
        any of
        its obligations contained in this Agreement; or (ii) any negligence or willful
        misconduct by XM in connection with this Agreement that results in personal
        injury, death or tangible property damage. XM shall also defend CSR against
        such
        claims and pay all costs plus awards and damages or settlement amounts incurred
        by CSR as a result of such claims. XM shall have sole control of the defense
        and
        settlement of any such claim, and CSR shall cooperate with and assist XM,
        at
        XM’s expense in connection with such defense.

       

      In
        addition, subject to the exclusion set forth in Article 18.1, XM shall indemnify
        and hold CSR harmless from any and all loss, liability, cost, damages and
        expenses suffered including reasonable legal fees and expenses with respect
        to
        any third party claim that the technology XM licenses to a manufacturer of
        radios that receive the Services in Canada (whether XM owns or licenses such
        technology) infringes
        any copyright, patent or trade secret, provided that CSR promptly notifies
        XM in
        writing of the claim. XM
        shall
        also defend CSR against such claims and pay all costs plus awards and damages
        or
        settlement amounts incurred by CSR as a result of such claims. XM shall have
        sole control of the defense and settlement of any such claim, and CSR shall
        cooperate with and assist XM, at XM’s expense in connection with such defense.
        In consideration for this indemnification, CSR agrees to reimburse XM on
        a
        pro-rata basis for all costs, losses and liabilities incurred by XM in defending
        such claim, based on the pro-rata use of the applicable technology in Canada,
        except where the costs, losses or liabilities resulted from XM’s gross
        negligence or willful misconduct. Notwithstanding the foregoing, the parties
        agree that to the extent XM is able to reach agreements with third party
        technology providers specifying that CSR is obtaining license rights directly
        from providers and that XM is not incurring a cost for inclusion of the
third
        party technology in XM
        radios
        sold to Subscribers, (i) XM shall not include any such cost in the
        Activation Charge, and (ii) the indemnity and other agreements by XM in
        this paragraph shall not apply with respect to the technology licensed by
        CSR
        directly from the provider.

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      13. 
        CSR’s Representations, Warranties and Covenants.
        CSR
        Parent and CSR jointly and severally represent, warrant and covenant to XM
        that:

       

      
        	
                13.1

              	
                The
                  Canadian Licences constitute all of the material licences, permits
                  and
                  approvals required by any national, provincial or local governmental,
                  regulatory or other authority within Canada in order for CSR to
                  provide
                  the Services and to otherwise fulfill its obligations under this
                  Agreement.

              

      

       

      
        	
                13.2

              	
                CSR
                  has or will have, prior to making the Services available to Subscribers
                  within Canada, the rights to distribute the Services within Canada
                  as
                  contemplated by Article 4.

              

      

       

      
        	
                13.3

              	
                CSR
                  shall use reasonable commercial efforts to implement the marketing
                  and
                  business plans and to promote Subscriber growth.
                  

              

      

       

      
        	
                13.4

              	
                Subject
                  to the exclusion set forth in Article 18.1, CSR and CSR Parent
                  shall
                  indemnify and hold XM harmless from any and all loss, liability,
                  cost,
                  damages and expenses suffered including reasonable legal fees and
                  expenses, with respect to any third party claim based on: (i) any
                  breach
                  or violation by CSR or CSR Parent or any of their agents of any
                  of its
                  obligations contained in this Agreement; (ii) any negligence or
                  willful
                  misconduct by CSR or CSR Parent in connection with this Agreement
                  that
                  results in personal injury, death or tangible property damage;
                  or (iii)
                  any Subscriber claim due to the provision, non-provision, interruption,
                  degradation or use of the Services by any Subscriber not arising
                  from a
                  failure by XM to transmit the XM CPackage Channels and the CSR
                  Channels
                  within Canada at an acceptable quality level. CSR and CSR Parent
                  shall
                  also defend XM against such claims and pay all costs plus awards
                  and
                  damages or settlement amounts incurred by XM as a result of such
                  claims.
                  CSR shall have sole control of the defense and settlement of any
                  such
                  claim, and XM shall cooperate with and assist CSR, at CSR’s expense in
                  connection with such defense.

              

      

       

      14. Term
        and Termination

       

      
        	
                14.1

              	
                Term.
                  Unless it is terminated at an earlier time pursuant to this Article
                  14,
                  this Agreement shall commence on the Effective Date and shall continue
                  in
                  effect for a period of ten (10) years (the “Initial Term”). At
                  least one year prior to termination of the Initial Term, provided
                  that
                  CSR’s CRTC Licence has been renewed at the end of the current licence
                  term
                  without any Adverse Modification (as defined below) and provided
                  that CSR
                  is not in breach of any provision of this Agreement and has not
                  failed to
                  cure any breach of a provision of this Agreement in accordance
                  with its
                  terms, CSR
                  shall have the right to extend the Initial Term for a further five
                  years
                  on
                  the same terms
                  and conditions as this Agreement. The parties agree that if CSR’s CRTC
                  Licence is renewed at the end of the current licence term but with
                  an
                  Adverse Modification, then
                  the parties shall negotiate
                  in
                  good faith whether to extend the Initial Term. (The Initial Term
                  and any
                  extension(s) thereto are referred to collectively as the
                  “Term.”)

              

      

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      
        	
                14.2

              	
                Termination
                  by CSR.
                  CSR may, in its sole discretion, terminate this Agreement upon
                  written
                  notice to XM in the event that:

              

      

       

      
        	 	
                14.2.1

              	
                XM
                  materially breaches this Agreement and such breach is not remedied
                  within
                  sixty (60) days after XM receives from CSR a notice identifying
                  the breach
                  and requiring it to be remedied or longer if nature of the cure
                  requires
                  longer, provided XM is diligently pursuing the cure.
                  

              

      

       

      
        	 	
                14.2.2

              	
                Any
                  of the other Transaction Documents (excluding the Share Issuance
                  Agreement) expire or are terminated for any reason (other than
                  material
                  default by CSR or expiration in accordance with its terms after
                  performance by XM has been
                  completed).

              

      

       

      
        	 	
                14.2.3

              	
                XM
                  is no longer transmitting the XM CPackage Channels and the CSR
                  Channels
                  within Canada due to (i) loss or damage (including natural end
                  of life) or
                  technical problems with respect to the XM Satellites or any other
                  element
                  of XM’s satellite network system (including space and/or ground segments)
                  reasonably needed to make such transmissions; (ii) loss of applicable
                  governmental licences or other required regulatory approvals needed
                  for XM
                  to continue operating its satellite network system and/or to continue
                  transmitting within Canada, or (iii) a decision by XM to discontinue,
                  in
                  whole or in substantial part, offering a U-S.-based SDARS
                  service.

              

      

       

      
        	 	
                14.2.4

              	
                CSR
                  can no longer provide the Services within Canada due to loss of
                  applicable
                  governmental
                  licences or
                  other required regulatory approvals, other than on a brief interim
                  basis,
                  or CSR has publicly announced a decision that due to changes to
                  its
                  governmental licences or regulatory requirements it is forced to
                  discontinue providing the Services and will cease to carry on its
                  business.

              

      

       

      
        	 	
                14.2.5

              	
                Any
                  of the Trade-Mark Agreement, Technical Services Agreement or Programming
                  Agreement expire or are terminated for material default by XM,
                  or XM
                  materially breaches the Shareholders
                  Agreement.

              

      

       

      
        	 	
                14.2.6

              	
                XM
                  has filed a petition in or has been assigned into bankruptcy or
                  becomes an
                  insolvent person within the meaning of any applicable bankruptcy
                  or
                  insolvency legislation, or makes any assignment for the benefit
                  of
                  creditors or makes any arrangements or otherwise becomes subject
                  to any
                  proceedings under applicable bankruptcy laws or insolvency laws
                  with a
                  trustee, or receiver appointed in respect of a substantial portion
                  of the
                  property of XM, or in the event XM liquidates or winds up its daily
                  operations for any reason
                  whatsoever.

              

      

       

      
        	
                14.3

              	
                Termination
                  by XM.
                  XM may, in its sole discretion, terminate this Agreement, by written
                  notice to CSR in the event that:

              

      

       

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      
        	 	
                14.3.1

              	
                CSR
                  materially breaches this Agreement other than a payment breach
                  and such
                  breach (if capable of being remedied) is not remedied within sixty
                  (60)
                  days after CSR receives from XM a written notice identifying the
                  breach
                  and requiring it to be remedied or longer if nature of the cure
                  requires
                  longer, provided CSR is diligently pursuing the cure.
                  

              

      

       

      
        	 	
                14.3.2

              	
                CSR
                  fails to pay any material amount payable hereunder when due and
                  such
                  failure is not remedied within thirty (30) days after CSR receives
                  from XM
                  a written notice identifying the failure and requiring it to be
                  remedied,
                  unless CSR has, in good faith, disputed in writing to XM the obligation
                  to
                  pay such amount and deposited the amount specified in such notice
                  in an
                  escrow under a customary agreement providing for release of such
                  amount to
                  the prevailing party, and such dispute has not been finally
                  resolved.

              

      

       

      
        	 	
                14.3.3

              	
                Any
                  of the Trade-Mark Agreement, Technical Services Agreement or Programming
                  Agreement expire or are terminated for any reason (other than material
                  default by XM or expiration in accordance with its terms after
                  performance
                  by CSR has been completed), or CSR materially breaches the Share
                  Issuance
                  Agreement or the Shareholders Agreement with respect to XM.
                  

              

      

       

      
        	 	
                14.3.4

              	
                CSR
                  fails to obtain distribution rights as needed to meet its CSR Channel
                  commitments specified in the Programming Agreement by the Launch
                  Date or
                  subsequent to that date during the term of this Agreement, and
                  such
                  failure is not remedied within sixty (60) days (one hundred twenty
                  (120)
                  days in the case of the Launch Date) after CSR receives from XM
                  a written
                  notice identifying such failure and requiring it to be remedied.
                  

              

      

       

      
        	 	
                14.3.5

              	
                The
                  Launch Date does not occur by March 1,
                  2006.

              

      

       

      
        	 	
                14.3.6

              	
                CSR
                  fails to capture and maintain during the one year period commencing
                  on the
                  later to occur of the second anniversary of the Effective Date
                  and the OEM
                  Condition Date (as defined below) and each subsequent one year
                  period
                  during the Term (each, a “Contract Year”), on average during such Contract
                  Year, at least thirty-three percent (33%) of the actual SDARS subscribers
                  within Canada, assuming there are only two SDARS providers in Canada,
                  or
                  at least twenty-five percent (25%) of the actual SDARS subscribers
                  within
                  Canada, assuming there are three or more subscription radio providers
                  in
                  Canada, (and, in each case, if less, 15 percentage points less
                  than the
                  percentage of actual SDARS subscribers within the U.S. held by
                  XM on
                  average during such Contract Year,) where the parties will measure
                  the
                  percentage of SDARS or subscription radio subscribers (as the case
                  may be)
                  at any given time using the subscriber numbers reported as of the
                  end of
                  each calendar quarter, or if no such numbers are reported, a reputable,
                  independent, mutually agreed upon source of market share statistics
                  for
                  such matters; provided, however, that with respect to the first
                  (and only
                  the first) time CSR fails to meet the applicable subscriber requirements
                  above in this paragraph (which, for greater certainty, shall not
                  be
                  earlier than the later of one year following the second anniversary
                  of the
                  Effective Date and the OEM Condition Date),
                  CSR shall have a period of one Contract Year to seek to cure
                  such default,
                  and if during the immediately succeeding Contract Year CSR subscribers
                  exceed the applicable threshold in this paragraph, XM shall not
                  have the
                  right to terminate for the prior failure. The OEM Condition Date
                  shall be
                  the first date on which CSR with the assistance of XM has entered
                  into,
                  has been offered the opportunity to enter into or is a party to
                  agreements
                  with automobile manufacturers with an aggregate thirty-three percent
                  (33%)
                  market share in Canada for the installation of satellite radios
                  in
                  automobiles. 

              

      

       

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      
        	 	
                14.3.7

              	
                CSR
                  undergoes a change of control, which shall mean for purposes of
                  this
                  Agreement (i) CSR Parent owning less than 100% of the equity of
                  CSR, (ii)
                  Canadian Satellite Radio Investments Inc. owning less than 15%
                  of the
                  voting shares or equity of CSR Parent, or (iii) John Bitove and
                  Bitove
                  Affiliates (as defined below) holding, directly or indirectly,
                  less than
                  50.01% of the voting rights of Canadian Satellite Radio Investments
                  Inc.
                  (“CSR InvestCo”) or less than the lower of (x) 33-1/3% of the equity
                  of CSR InvestCo or (y) 50%
                  of the number of shares of
                  CSR InvestCo that John Bitove and Bitove Affiliates own
                  on the date hereof (as adjusted for any recapitalization), treating
                  in the
                  case of both (x) and (y) any portion of the equity of or shares
                  in
                  CSR
                  InvestCo subject to a Hedge (as defined below) as not being held
                  by John
                  Bitove or Bitove Affiliates. “Bitove Affiliates” means John Bitove’s
                  Family Members or a custodian, trustee (including an RRSP, RIF,
                  IRA or
                  similar retirement or investment fund) or other fiduciary for John
                  Bitove
                  and/or his Family Members or a corporation wholly owned by Bitove
                  and/or
                  other Bitove Affiliates, where “Family Members” means, in respect of an
                  individual, any parent, spouse, child, spouse of a child, grandchild
                  and/or sibling. “Hedge” means a forward sale, swap, cap or collar
                  agreements, or other agreement or arrangement designed to protect
                  against
                  fluctuations in the value of equity or shares or under which a
                  counterparty or person other than John Bitove or Bitove Affiliates
                  has the
                  primary economic interest in such equity or shares or any appreciation
                  in
                  the value thereof.

              

      

       

      
        	 	
                14.3.8

              	
                XM
                  is no longer transmitting the XM CPackage Channels and the CSR
                  Channels
                  within Canada due to (i) loss or damage (including natural end
                  of life) or
                  technical problems with respect to the XM Satellites or any other
                  element
                  of XM’s satellite network system (including space and/or ground segments)
                  reasonably needed to make such transmissions; (ii) loss of applicable
                  governmental licences or other required regulatory approvals needed
                  for XM
                  to continue operating its satellite network system and/or to continue
                  transmitting within Canada, or (iii) a decision by XM to discontinue,
                  in
                  whole or in substantial part, offering a U-S.-based SDARS
                  service.

              

      

       

      
        	 	
                14.3.9

              	
                Any
                  Canadian Licence, or any portion thereof, that is required for
                  CSR to
                  provide the Services within Canada expires or is terminated, or
                  is
                  challenged and overturned by the Governor in Council or the Federal
                  Court
                  of Canada or any other governmental or regulatory authority with
                  jurisdiction over such matters, or is modified by the CRTC or Industry
                  Canada in any material manner, including without limitation any
                  manner
                  that adversely affects the ability of CSR or XM to carry out the
                  arrangements made under this Agreement, or that increases the Canadian
                  content requirements or imposes additional conditions of licence
                  beyond
                  those specified in the
                  licence award received by CSR from the CRTC in June 2005
                  (as modified to reflect the September 7, 2005 application to the
                  CRTC
                  submitted by CSR to the extent such application is approved by
                  the CRTC)
                  that, in XM’s reasonable determination, makes it technically less feasible
                  or economically less attractive in any significant respect to perform
                  under this Agreement (an “Adverse Modification”); provided, that before
                  terminating under this paragraph following a Canadian License
                  modification, XM must seek to conduct good faith negotiations with
                  CSR to
                  address any such modification that primarily has economic consequences
                  with appropriate changes to this Agreement. Any differences between
                  a new
                  or renewed CRTC Licence and the licence award received by CSR from
                  the
                  CRTC in June 2005 as modified to reflect the September 7, 2005
                  application
                  to the CRTC submitted by CSR to the extent such application is
                  approved by
                  the CRTC) would be considered a modification for purposes of this
                  paragraph.

              

      

       

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      
        	 	
                14.3.10

              	
                CSR's
                  business operations are curtailed by decisions or rulings under
                  applicable
                  law in Canada and in consequence CSR ceases carrying on or is compelled
                  to
                  discontinue all or substantially all of its business in Canada
                  within a
                  period of sixty (60) days or less. 

              

      

       

      
        	 	
                14.3.11

              	
                CSR
                  has filed a petition in or has been assigned into bankruptcy or
                  becomes an
                  insolvent person within the meaning of any applicable bankruptcy
                  or
                  insolvency legislation, or makes any assignment for the benefit
                  of
                  creditors or makes any arrangements or otherwise becomes subject
                  to any
                  proceedings under applicable bankruptcy laws or insolvency laws
                  with a
                  trustee, or receiver appointed in respect of a substantial portion
                  of the
                  property of CSR, or in the event CSR liquidates or winds up its
                  daily
                  operations for any reason whatsoever.

              

      

       

      
        	
                14.4

              	
                Arbitration.
                  In the event that notice is provided by either CSR or XM as outlined
                  in
                  Articles 14.2 or 14.3 above, and the recipient of such notice disputes
                  the
                  right to terminate this Agreement pursuant to the same notice,
                  then upon
                  written demand at any time within the applicable notice period,
                  such
                  dispute shall be submitted to arbitration in accordance with Article
                  20 of
                  this Agreement. 

              

      

       

      
        	
                14.5

              	
                Reasonable
                  Withdrawal of Services.
                  In the event that XM has the right to terminate this Agreement
                  pursuant to
                  this Article 14, then XM and CSR shall consult, each acting reasonably,
                  regarding a mutually acceptable schedule for CSR to cease distributing
                  the
                  Services and/or using the XM Satellite service and the manner by
                  which CSR
                  shall discontinue such distribution and use, which period shall
                  not exceed
                  ninety (90) days following notice of termination by XM and expiration
                  of
                  any cure periods. 

              

      

       

      
        	
                14.6

              	
                Transfer
                  in Lieu of Termination.
                  In the event notice of termination of this Agreement by XM is given
                  to CSR
                  (other than under Article 14.3.8), the parties shall consult in
                  good faith
                  concerning whether it would be in their mutual best interest, in
                  lieu of
                  such a termination, for CSR Parent to transfer its interest in
                  CSR (or
                  effect another change of ownership of CSR Parent or CSR). If the
                  parties
                  reach a written agreement that such a transfer or change of ownership
                  would be in their mutual best interest (assuming such transfer
                  is approved
                  by the CRTC), the termination of this Agreement hereunder shall
                  be
                  deferred for a period of one hundred twenty (120) days or such
                  other
                  period as may be agreed by the parties in writing, during which
                  time CSR
                  Parent and CSR will use all reasonable efforts to effect such a
                  transfer
                  (including engaging a nationally-recognized investment banker to
                  conduct a
                  sale process, if no transferee reasonably acceptable to XM has
                  been
                  identified by CSR Parent or CSR within the first sixty (60) days
                  of the
                  deferral period),
                  subject to such prior approval as may be required from the
                  CRTC.
                  XM may propose one or more transferees eligible under the Broadcasting
                  Act
                  to acquire the interest in CSR. If any purchaser or transferee
                  resulting
                  from such process is not reasonably acceptable to XM or the CRTC,
                  or if XM
                  proposes eligible transferees and CSR Parent and CSR do not use
                  all
                  reasonable efforts to effect a transfer to one or more of such
                  transferees
                  within sixty (60) days after such transferees are proposed by XM,
                  the
                  deferral period shall accelerate and the termination by XM shall
                  be
                  effective immediately. If such process results in a transferee
                  (or entity
                  legally committed to become transferee subject only to conditions
                  related
                  to XM and the transferee entering into mutually acceptable agreements)
                  reasonably acceptable to XM and the CRTC, and if the termination
                  event has
                  been cured (or in XM’s reasonable judgment is likely to be cured within a
                  reasonably acceptable period) and no other events permitting termination
                  by XM have occurred and are continuing, the deferral period shall
                  be
                  extended for up to an additional one hundred twenty (120) days,
                  during
                  which time XM and the resulting transferee will negotiate in good
                  faith an
                  assignment of CSR’s rights and obligations under this Agreement and other
                  applicable Transaction Documents to the transferee (subject to
                  consummation of the transfer), with modifications that are agreed
                  upon by
                  XM and such transferee. 

              

      

       

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      
        	
                14.7

              	
                Other
                  Remedies.
                  Nothing in this Article 14 is intended to replace or derogate from
                  any
                  other remedy that a party hereto may have at law or in equity in
                  consequence of any breach of or failure to observe and perform,
                  any
                  covenant, representation or warranty in this Agreement by the other
                  party
                  hereto.

              

      

       

      15. 
        Other S-DARS Services.
        During
        the Term, CSR shall not provide satellite radio services or digital terrestrial
        radio services in Canada by means of any other satellite radio or other
        transmission system without the prior written consent of XM. During such
        period
        XM shall not licence any other person or entity to provide SDARS in Canada,
        or
        provide Canada-focused marketing or promotion of XM’s satellite radio services,
        without the prior written consent of CSR.

       

      16. Distribution
        of CSR’s Channels to XM’s Subscribers.
        

       

      
        	
                16.1

              	
                Pursuant
                  to the Programming Agreement, and as partial consideration for
                  the licence
                  granted by XM hereunder, CSR is granting to XM a licence to distribute
                  the
                  CSR Channels on the terms and conditions set forth in the Programming
                  Agreement. 

              

      

       

       

      
        	
                16.2

              	
                Save
                  and except for the licence and other fees set forth in Article
                  5 hereto or
                  as set forth in the Programming Agreement, there shall be no fees
                  payable
                  by CSR to XM or by XM to CSR for the transmission of the CSR Channels
                  by
                  the XM Satellites. The parties acknowledge that CSR will be obligated
                  to
                  deliver the CSR Channels in an agreed format for uplinking to the
                  XM
                  Satellites, and that any technical support provided by XM relating
                  to the
                  processing of the CSR Channels in preparation for uplinking may
                  be the
                  subject of an invoice and chargeable to CSR under the Technical
                  Services
                  Agreement.

              

      

       

      17.  Warranty
        Disclaimers.

       

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      
        	
                17.1

              	
                EXCEPT
                  AS EXPRESSLY PROVIDED FOR HEREIN, XM MAKES NO REPRESENTATIONS OR
                  WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, RELATED TO THIS AGREEMENT,
                  THE
                  CPACKAGE CONTENT, THE XM SATELLITES, THE SERVICES OR ANY OTHER
                  MATTERS
                  ARISING UNDER THIS AGREEMENT, AND XM EXPRESSLY DISCLAIMS ANY IMPLIED
                  WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
                  PURPOSE, TITLE, NON-INFRINGEMENT OR OTHERWISE THAT MIGHT OTHERWISE
                  APPLY.

              

      

       

      
        	
                17.2

              	
                CSR
                  HAS CONDUCTED DUE DILIGENCE ON THE POTENTIAL RISKS AND REWARDS
                  OF ENTERING
                  INTO THIS AGREEMENT, AND OF PROVIDING THE SERVICES WITHIN CANADA.
                  CSR
                  ACKNOWLEDGES AND AGREES THAT XM HAS MADE NO REPRESENTATION OR WARRANTY
                  REGARDING THE ACTUAL OR LIKELY RETURNS TO BE OBTAINED BY CSR FROM
                  THIS
                  RELATIONSHIP, AND CSR ASSUMES ALL RISK RELATING TO SUCH
                  MATTERS.

              

      

       

      18. 
        Limitations of Liability.

       

      
        	
                18.1

              	
                NO
                  PARTY HERETO SHALL BE LIABLE TO ANY OTHER PARTY HERETO FOR ANY
                  INDIRECT,
                  INCIDENTAL, CONSEQUENTIAL, SPECIAL, OR PUNITIVE DAMAGES OF ANY
                  NATURE
                  ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER ARISING IN
                  TORT,
                  CONTRACT OR OTHERWISE, AND INCLUDING LOST REVENUES, LOST PROFITS,
                  INTERRUPTION OF BUSINESS OR OTHERWISE, EVEN IF THE POSSIBILITY
                  OF SUCH
                  DAMAGES WERE FORESEEABLE.

              

      

       

      19. 
        Confidentiality.
        

       

      
        	
                19.1

              	
                “Confidential
                  Information” includes, but is not limited to any information which any
                  party hereto considers to be of a proprietary and confidential
                  nature and
                  includes, without limitation, know-how, data, process, technique,
                  program,
                  design, formula, marketing, advertising, financial, sales, customer
                  or
                  programming matter, compositions, drawings, diagrams, computer
                  programs,
                  studies, work in process, visual demonstrations, concepts, and
                  other data,
                  whether oral, written, graphic, or electronic form, which may be
                  exchanged
                  between the parties. For the purposes of this Agreement, “Confidential
                  Information” shall include, without limitation, the existence or contents
                  of this Agreement. Confidential Information does not include the
                  following
                  information: 

              

      

       

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (i)

              	
                information
                  which is now or which hereafter becomes publicly known or available
                  through no act or failure on the part of the receiving
                  party;

              

      

       

      
        	 	
                (ii)

              	
                information
                  which is actually known to the receiving party at the time of the
                  receipt
                  of such Confidential Information without obligation of confidentiality;
                  and

              

      

       

      
        	 	
                (iii)

              	
                information
                  which is hereafter furnished to the receiving party by a third
                  party
                  without obligation of confidentiality.

              

      

      

      
        	
                19.2

              	
                Each
                  party hereto will not use the Confidential Information of the other
                  party
                  for any purpose other than to perform this Agreement, will not
                  disclose
                  the Confidential Information of another party hereto to third parties,
                  except: 

              

      

       

       

      
        	 	
                (i)

              	
                to
                  those third parties who have a need to know such information in
                  order for
                  the receiving party to perform this Agreement, and who have executed
                  a
                  written non-disclosure agreement with substantially similar protections
                  to
                  those contained herein; will protect the Confidential Information
                  of the
                  other parties hereto with at least the same degree of care as it
                  uses in
                  protecting its own confidential information; and will not copy
                  the
                  Confidential Information of any other party hereto without first
                  getting
                  the other’s written consent; or

              

      

       

      
        	 	
                (ii)

              	
                disclosure
                  as may be required by law, regulation, court of government agency
                  of
                  competent jurisdiction (however, if required to make such a disclosure,
                  the receiving party agrees to give the disclosing party prompt
                  notice
                  prior to disclosure and make a reasonable effort to assist disclosing
                  party in obtaining a protective order or in redacting specified
                  information to the extent reasonably permitted by applicable law
                  or
                  regulation). 

              

      

      

      These
        obligations remain in effect after expiry or termination of this Agreement.
        

       

      
        	
                19.3

              	
                After
                  termination or expiry of the term of this Agreement, any party
                  hereto may
                  require any other party hereto to return immediately
                  or, as the applicable parties may agree, destroy all copies of
                  its
                  Confidential Information the other then has and certify to it the
                  other
                  has taken these steps. 

              

      

       

      
        	
                19.4

              	
                In
                  the event of breach of the confidentiality provisions of this Agreement
                  by
                  the receiving party, it acknowledges that the disclosing party
                  will be
                  irreparably harmed, and that the disclosing party shall, in addition
                  to
                  any other available remedies, be entitled to obtain equitable relief
                  to
                  prevent further disclosures without resorting to the dispute resolution
                  procedures set forth below. 

              

      

      

      20. Dispute
        Resolution.

       

      
        	
                20.1

              	
                Subject
                  to and in accordance with the provisions of this Article, any and
                  all
                  differences, disputes, claims or controversies arising out of or
                  in any
                  way connected with this Agreement, whether arising before or after
                  the
                  expiration or termination of this Agreement, and including without
                  limitation, its negotiation, execution, delivery, enforceability,
                  performance, breach, discharge, interpretation and construction,
                  existence, validity and any damages resulting therefrom or the
                  rights,
                  privileges, duties and obligations of the parties under or in relation
                  to
                  this Agreement (including any dispute as to whether an issue is
                  arbitrable) shall be referred to binding arbitration under the
                  International Chamber of Commerce rules in effect at the time of
                  the
                  arbitration. 

              

      

       

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      
        	
                (b)
                  

              	
                The
                  right to seek to arbitrate any matter hereunder or to seek any
                  remedy
                  which may have been available pursuant to an arbitration hereunder
                  shall
                  be brought within 2 years from the date at which the facts giving
                  rise to
                  the subject matter proposed to be arbitrated were known or ought
                  to have
                  been known with reasonable diligence by the party seeking to invoke
                  the
                  arbitration or seeking the remedy.

              

      

      

      
        	
                (c)

              	
                A
                  party desiring arbitration hereunder shall give written notice
                  of
                  arbitration to the other party containing a concise description
                  of the
                  matter submitted for arbitration (“Notice of Arbitration”). Within 10 days
                  after a party gives a Notice of Arbitration, the parties shall
                  each
                  appoint a single arbitrator and the two nominated arbitrators shall
                  select
                  the third arbitrator (the “Arbitration Tribunal”). If there is a dispute
                  concerning the choosing or an arbitrator, an arbitrator(s) shall
                  be
                  designated by a judge of the Ontario Superior Court of Justice
                  upon
                  application by either party.

              

      

      

      
        	
                (d)
                  

              	
                The
                  Arbitration Tribunal may determine: all questions of law, fact
                  and
                  jurisdiction with respect to the dispute or the arbitration (including
                  questions as to whether a dispute is arbitrable) and all matters
                  of
                  procedure relating to the arbitration. The Arbitration Tribunal
                  may grant
                  legal and equitable relief (including injunctive relief and specific
                  performance), award costs (including legal fees and the costs of
                  the
                  arbitration), and award interest and, without limiting the generality
                  of
                  the foregoing or the Arbitration Tribunal’s jurisdiction at law, may: (i)
                  determine any question of good faith, dishonesty or fraud arising
                  in the
                  dispute; (ii) order any party to furnish further details of that
                  party’s
                  case, in fact or in law; (iii) proceed in the arbitration notwithstanding
                  the failure or refusal of any party to comply with these Rules
                  or with the
                  Arbitration Tribunal’s orders or directions, or to attend any meeting or
                  hearing, but only after giving that party written notice that the
                  Arbitration Tribunal intends to do so; (iv) receive and take into
                  account
                  written or oral evidence tendered by the parties that the Arbitrator
                  determines is relevant, whether or not strictly admissible in law;
                  (v)
                  make one or more interlocutory determinations in the nature of
                  interlocutory injunctions, including, but not limited to, restraining
                  the
                  continuation of any breach or default or to compel compliance with
                  any
                  provisions of this Agreement; (vi) make interim damages awards
                  and/or make
                  interim orders to secure all or part of any amount in dispute in
                  the
                  arbitration; (vi) make one or more determinations in the nature
                  of
                  mandatory orders, including, but not limited to, restraining the
                  continuation of any breach or default or to compel compliance with
                  any
                  provisions of this Agreement; (vii) hold meetings and hearings,
                  and make a
                  decision (including a final decision) in New York City (or elsewhere
                  with
                  the concurrence of the parties to the arbitration); (viii) order
                  the
                  parties to produce to the Arbitration Tribunal, and to each other
                  for
                  inspection, and to supply copies of, any documents or classes of
                  documents
                  in their possession or power that the Arbitration Tribunal determines
                  to
                  be relevant; and (ix) order the preservation, storage, sale or
                  other
                  disposal of any property or thing under the control of any of the
                  parties.

              

      

       

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      
 

      
        	
                (e)

              	
                The
                  arbitration shall take place in New York City at such place therein
                  and
                  time as the Arbitration Tribunal may fix. The arbitration shall
                  be
                  conducted in English. Within 20 days of the appointment of the
                  Arbitration
                  Tribunal, the parties shall either agree on the procedure to be
                  followed
                  for the arbitration or the Arbitration Tribunal shall determine
                  the
                  appropriate procedure, in accordance with the principles of natural
                  justice, to be followed. It is agreed that the arbitration and
                  all matters
                  arising directly or indirectly (including all documents exchanged,
                  the
                  evidence and the award) shall be kept strictly confidential by
                  the parties
                  and shall not be disclosed to any third party except as may be
                  compelled
                  by law.

              

      

      

      
        	
                (f)

              	
                No
                  later than 20 Business Days after hearing the representations and
                  evidence
                  of the parties, the Arbitration Tribunal shall make its determination
                  in
                  writing and deliver one copy to each of the parties. The decision
                  of the
                  Arbitration Tribunal shall be final and binding upon the parties
                  in
                  respect of all matters relating to the arbitration, the conduct
                  of the
                  parties during the proceedings, and the final determination of
                  the issues
                  in the arbitration.

              

      

      

      
        	
                (g)

              	
                There
                  shall be no appeal from the determination of the Arbitration Tribunal
                  to
                  any court of competent jurisdiction, whether in New York, United
                  States,
                  Canada, Ontario or elsewhere. Judgment upon any award rendered
                  by the
                  Arbitration Tribunal may be entered in any court having jurisdiction
                  thereof.

              

      

      

      
        	
                (h)

              	
                The
                  costs of any arbitration hereunder shall be borne by the parties
                  in the
                  manner specified by the Arbitration Tribunal in his or her
                  determination.

              

      

      

      
        	
                (i)

              	
                Submission
                  to arbitration under this Article is intended by the parties to
                  preclude
                  any action in matters, which may be arbitrated hereunder, save
                  and except
                  for enforcement of any arbitral award hereunder.
                  

              

      

      

      21. 
        Publicity.
        All
        public notices to third parties and all other publicity concerning the
        transactions contemplated by this Agreement or the business of the other
        party
        hereto shall be jointly planned and coordinated by the parties hereto. No
        party
        shall act unilaterally in this regard, unless required by law or regulation
        to
        do so, and any party required to act within a particular time frame under
        applicable law or regulation will afford the other party such opportunity
        to
        consult as such time frame permits. 

       

      22.  Force
        Majeure.
        Neither
        party shall be liable for any delay or failure in the performance of its
        obligations (excluding payment obligations) hereunder to the extent caused
        by
        any fire, weather, earthquake or other act of God, act of any governmental
        or
        regulatory agency, strike, lockout, shortage of labor, terrorist act, act
        of the
        common enemy or any other event beyond such party’s reasonable control, unless
        caused by the negligence or willful misconduct of the party seeking to be
        relieved from its obligations; provided that the affected party continues
        to use
        reasonable efforts to recommence performance as soon as possible and to mitigate
        the impact of the event.

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

      23. 
        Costs and Expenses.
        Except
        as expressly provided herein or agreed to in writing by XM and CSR, each
        party
        will pay all costs and expenses incurred in the performance of its obligations
        under this Agreement. To the extent CSR has not previously reimbursed XM
        or XM
        Parent for certain costs associated with obtaining the Canadian Licences
        as
        provided in Article 2(b) of the Memorandum of Agreement (as defined below),
        CSR
        will make such reimbursement promptly. 

       

      24. 
        Law.
        This
        Agreement shall be governed by and interpreted in accordance with the laws
        of
        the State of New York, provided that any matters regarding the requirements
        of
        Canadian laws shall be governed by and interpreted in accordance with the
        laws
        of the Province of Ontario and the federal laws of Canada applicable therein,
        except that regulatory matters relating to licences awarded by the government
        of
        Canada to CSR which shall be governed by and interpreted in accordance with
        the
        federal laws of Canada.

       

      25. 
        Successors/Assigns.
        This
        Agreement shall inure to the benefit of and shall be binding upon the successors
        and permitted assigns of the parties hereto. No party shall be entitled to
        assign this Agreement without the prior written consent of the other parties.
        Notwithstanding the foregoing, each party shall be entitled to assign this
        Agreement without such consent to a successor in interest (other than a direct
        competitor of XM) arising through merger, acquisition, reorganization or
        sale of
        all or substantially all of its assets or business, or to a lender as security
        for financing. Any attempted assignment made contrary to this Article shall
        be
        void.

       

      26. 
        Further Assurances.
        The
        parties hereto shall do, execute and deliver such further and other agreements,
        assurances, undertakings, acknowledgements or other documents in connection
        with
        this Agreement as may reasonably be required to give full force and effect
        to
        this Agreement. The parties acknowledge and agree that there are many instances
        in this Agreement in which items are specified by the delivery of notices,
        numbers are fixed based upon developments and such numbers may be recorded
        in
        further documents, schedules are revised or deemed revised to accurately
        reflect
        actions being taken by XM or CSR consistent with this Agreement, and so on.
        The
        parties agree that all such notices, acknowledgements, other documents,
        schedules and so on are considered part of this Agreement, rather than
        amendments or modifications hereof. 

       

      27. 
        Notices.
        Any
        notice or other communication required or permitted to be given by this
        Agreement to a party hereto shall be in writing and shall be delivered by
        hand
        or registered mail to the recipient at the following addresses:

       

      
        	
                27.1

              	
                To
                  XM:

              

      

       

      XM
        SATELLITE RADIO INC.

      1500
        Eckington Place, NE

      Washington,
        DC 20002

      

      Attention:   Joseph
        Titlebaum

                         Executive
        Vice President,
        General Counsel

                         Joseph
        Verbrugge

                         Vice
        President,
        International Operations 

       

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

      
 

      (c) To
        CSR:

      

      CANADIAN
        SATELLITE RADIO INC.

      Suite
        2300, P.O. Box 222

      Canada
        Trust Tower, BCE Place

      161
        Bay
        Street

      Toronto,
        Ontario M5J 2S1

      

      Attention: Legal
        Department

       

      (d) To
        CSR
        Parent:

       

      CANADIAN
        SATELLITE RADIO HOLDINGS INC. 

      Suite
        2300, P.O. Box 222

      Canada
        Trust Tower, BCE Place

      161
        Bay
        Street

      Toronto,
        Ontario M5J 2S1

      

      Attention: Legal
        Department

      

      or
        at
        such other address of which that party shall have given notice. Proof of
        delivery by hand or registered mail shall constitute proof of
        receipt.

       

      28. 
        Independent Parties.
        This
        Agreement does not constitute and shall not be construed as constituting
        a
        partnership or joint venture between CSR and XM. Neither party shall have
        the
        right to obligate or bind the other in any manner whatsoever, save as herein
        specifically provided and nothing contained in this Agreement shall give
        or is
        intended to give any rights of any kind to persons not party to this
        Agreement.

       

      29. 
        Entire Agreement.
        This
        Agreement and the other Transaction Documents contain the entire agreement
        between the parties hereto with respect to the subject matter hereof, and
        expressly supersedes all prior or contemporaneous agreements, whether oral
        or
        written, relating to such subject matter. As of the Effective Date of this
        Agreement, (i) that certain Memorandum of Agreement (the “Memorandum of
        Agreement”) among John Bitove, CSR Parent, CSR, XM Parent and XM dated August 7,
        2003, and (ii) that certain letter dated November 7, 2004 among XM or XM
        Parent,
        CSR and CSR Parent shall both automatically terminate. No modification of
        this
        Agreement shall be valid unless made in writing and duly executed by each
        of the
        parties hereto. 

       

      30. 
        Execution in Counterpart.
        This
        Agreement may be executed in one or more counterparts, which counterparts
        may be
        executed and delivered by electronic facsimile. Each counterpart when so
        executed shall be deemed to be an original, and such counterparts together
        shall
        constitute a single instrument.

       

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

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

       

      

      
        	 	
                XM
                  SATELLITE RADIO INC.

                 

                /s/
                  Gary M. Parsons

              
	 	
                Name:
                  Gary M. Parsons

                Title:
                  Chairman

              
	 	 
	 	
                CANADIAN
                  SATELLITE RADIO

                HOLDINGS
                  INC. 

                 

                 

                /s/
                  John I. Bitove

              
	 	
                Name:
                  John I. Bitove

                Title:
                  Chairman and CEO

              
	 	 
	 	
                CANADIAN
                  SATELLITE RADIO INC.

                 

                /s/
                  John I. Bitove

              
	 	
                Name:
                  John I. Bitove

                Title:
                  Chairman and CEO

              

      

      

      

      

      
        
          
             

          

          
          

        

        
          34

          
            

          

        

        
          
          

          
            

          

        

      

      SCHEDULE
        A

      

        

        Part
          1

        	 	
                    No.        Name 

              

        	1.  	
                    4          
                  The
                  40s

              

        	2.  	
                    5          
                  The
                  50s

              

        	3.  	
                    6          
                  The 60s

              

        	4.  	
                    7          
                  The 70s

              

        	5.  	
                    8        
The
                  80s

              

        	6.  	
                    9          
                  The
                  90s

              

        	7.  	
                    10     
America

              

        	8.  	
                    11      Nashville

              

        	9.  	
                    12      X
                  Country

              

        	10.  	
                    13      Hank’s
                  Place

              

        	11.  	
                    14      Bluegrass
                  Junction

              

        	12.  	
                    15      The
                  Village

              

        	13.  	
                    16      Highway
                  16

              

        	14.  	
                    20      20
                  on 20

              

        	15.  	
                    21      KISS

              

        	16.  	
                    22      MIX

              

        	17.  	
                    23      The
                  Heart

              

        	18.  	
                    24      Sunny

              

        	19.  	
                    25      The
                  Blend

              

        	20.  	
                    27      Cinemagic

              

        	21.  	
                    28      On
                  Broadway

              

        	22.  	
                    29      U
                  Pop

              

        	23.  	
                    32      The
                  Fish

              

        	24.  	
                    33      Spirit

              

        	25.  	
                    40      Deep
                  Tracks

              

        	26.  	
                    41      Boneyard

              

        	27.  	
                    43      XMU

              

        	28.  	
                    44      Fred

              

        	29.  	
                    45      XM
                  Café

              

        	30.  	
                    46      Top
                  Tracks

              

        	31.  	
                    47      Ethel

              

        	32.  	
                    48      Squizz

              

        	33.  	
                    50      The
                  Loft

              

        	34.  	
                    51      Musiclab

              

        	35.  	
                    53      Fungus

              

        	36.  	
                    54      Lucy

              

        	37.  	
                    60      Soul
                  Street

              

        	38.  	
                    62      Suite
                  62

              

        	39.  	
                    65      The
                  Rhyme

              

        	40.  	
                    66      Raw

              

        	41.  	
                    67      The
                  City

              

        	42.  	
                    70      Real
                  Jazz

              

        	43.  	
                    71      Watercolors

              

        	44.  	
                    72      Beyond
                  Jazz

              

        	45.  	
                    73      Frank’s
                  Place

              

        	46.  	
                    74      Bluesville

              

        	47.  	
                    75      Hear
                  Music

              

        	48.  	
                    76      Fine
                  Tuning

              

        	49.  	
                    77      Audio
                  Visions

              

        	50.  	
                    80      The
                  Move

              

        	51.  	
                    81      BPM

              

        	52.  	
                    82      The
                  System

              

        	53.  	
                    83      Chrome

              

        	54.  	
                    90      Alegria

              

        	55.  	
                    94      Caliente

              

        	56.  	
                    101        The
                  Joint

              

        	57.  	
                    110       
XM
                  Classics

              

        	58.  	
                    113        XM
                  Pops

              

        	59.  	
                    116        XM
                  Kids

              

        	60.  	
                    121        FOX
                  News

              

        	61.  	
                    122        CNN

              

        	62.  	
                    127        CNBC

              

        	63.  	
                    131        BBC
                  World Service

              

        	64.  	
                    133        XM
                  Public Radio

              

        	65.  	
                    142        Fox
                  Sports Radio

              

        	66.  	
                    175        MLB
                  Home Plate

              

        	67.  	
                    206        NHL
                  Hockey Play-by-Play

              

        	68.  	
                    207        NHL
                  Hockey Play-by-Play

              

        	69.  	
                    208        NHL
                  Hockey Play-by-Play

              

        	70.  	
                    209        NHL
                  Hockey Play-by-Play

              

        	71.  	
                    150        XM
                  Comedy

              

        	72.  	
                    151        Laugh
                  USA

              

        	73.  	
                    155        Take
                  5

              

        	74.  	
                    164        Radio
                  Classics

              

        	75.  	
                    171        Open
                  Road

              

        	76.  	
                    202        High
                  VoltageExhibit 10.3

     

    
      EXHIBIT
        10.3

    

     

    
 

    EXECUTION
      VERSION

    PROGRAMMING
      AGREEMENT

     

     

    THIS
      PROGRAMMING AGREEMENT
      (this“Agreement”)
      made as of the 17th
      day of
      November 2005.

     

     B
      E
      T W E E N: 

     

    XM
      SATELLITE RADIO INC.

     

    (hereinafter
      referred to as “XM”)

     

    and

     

    CANADIAN
      SATELLITE RADIO HOLDINGS INC.

     

    (hereinafter
      referred to as the “CSR
      Parent”)

     

    and

     

    CANADIAN
      SATELLITE RADIO INC.

     

    (hereinafter
      referred to as “CSR”)

     

    

    WHEREAS,
      XM
      operates a satellite system along with a terrestrial repeater network (the
“XM
      System”) that presently provides digital audio radio service (“DARS”) in the
      United States pursuant to authorizations issued by the Federal Communications
      Commission (the “FCC”); and

     

    WHEREAS,
      CSR has
      received a licence
      award from the Canadian Radio-television and Telecommunications Commission
      (“CRTC”) to operate and provide DARS in Canada, the licence to come into effect
      when certain conditions are met (the “CRTC Licence”), and Industry Canada
      intends to make available all radio spectrum necessary to provide DARS in Canada
      (collectively, the “Canadian Licences”) for all radio spectrum authorizations
      that are necessary to provide DARS in Canada (the “CSR System”); and

     

    WHEREAS,
      as part
      of its strategic partnership and option to invest in CSR, XM is effectively
      providing a portion of its capacity to CSR to distribute certain CSR audio
      channels within the footprint of its satellite system, subject to the terms
      and
      conditions set forth herein; and 

     

    WHEREAS,
      CSR
      desires to develop, produce, deliver and licence to XM certain programs (the
      “CSR Programs”) at no charge to be distributed over such audio channels as
      described in this Agreement (“CSR Channels”) of the XM System and the CSR System
      all on the terms and conditions set forth herein; and

     

    WHEREAS,
      subject
      to and at such time as CSR commences commercial delivery of a subscription-based
      package of digital audio radio services using the CSR System, XM desires to
      carry the CSR Channels on the XM System, subject to the terms and conditions
      set
      forth herein. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NOW,
      THEREFORE,
      in
      consideration of the foregoing and the mutual promises contained herein, the
      parties, intending to be legally bound, hereby agree as follows:

     

    ARTICLE
      ONE:
      PROGRAMS

     

    1.1  Program
      Supply and Carriage; Availability.
      

     

    (a)  CSR
      shall, at its own cost and expense, develop, produce, deliver and licence the
      CSR Channels to XM, and XM shall be authorized to carry such CSR Channels which
      initially shall be comprised of nine (9) CSR Channels, subject to the provisions
      of Exhibit A. Each of the CSR Channels shall be distinctive, of high quality
      and, at all times during the Term, meet the content requirements and guidelines
      set forth in
      the
      Canadian Licences
      and
      applicable CRTC decisions (the present conditions of the CRTC Licence being
      set
      forth in Exhibit B),
      CSR’s
      broadcast standards and practices
      as
      amended from time to time (CSR’s current standards and practices being attached
      as Exhibit C,
      as well
      as Section 1.3 and Exhibits
      A
of
      this
      Agreement. CSR
      shall
      commence delivery of the CSR Channels to XM no later than fourteen
      (14)
      days
      prior to the date XM is to commence pre-launch testing of the Services
(as
      such
      term is defined in the XM System Licence Agreement) to be provided in Canada,
      as
      specified in the XM System Licence Agreement dated
      as
      of the date hereof by
      and
      among XM, CSR, CSR Parent
      (the “XM
      System Licence Agreement”). 

     

    (b)  CSR
      shall
      have complete and sole technical authority over the terrestrial repeaters
      located in Canada, and shall have the sole and exclusive right to authorize
      reception of the CSR Channels as well as the XM CPackage Channels (as defined
      in
      the XM System Licence Agreement) for CSR’s Canadian subscribers to the Services.
      The parties acknowledge that in keeping with U.S. regulatory requirements,
      XM
      shall have complete and sole technical authority over the XM
      System, including upload and broadcast of all CSR Channels, as well as the
      right
      to control, designate and modify the location and
      bandwidth allocation of
      the
      CSR Channels over which the CSR Programs are to be carried. XM will provide
      CSR
      with reasonable notice in the event of a change in channel placement of the
      CSR
      channels. Changes implemented by XM shall not impair the audio quality of CSR’s
      music-based channels relative the audio quality of XM’s music-based channels in
      comparable music formats, or impede CSR’s ability to provide the CSR Channels in
      accordance with the terms of the licence issued by the CRTC. 

     

    (c)  So
      long
      as CSR is in compliance with its obligations under this Agreement and the XM
      System Licence Agreement, XM shall carry the CSR Channels as part of its
DARS
      service
      made available to subscribers in
      the
      United States during
      the Term (as defined below). 

     

    (d)  In
      the
      event XM wishes to increase the number of XM CPackage Channels as
      defined and provided
      under the XM System Licence Agreement beyond an aggregate of seventy-two
      (72)
      channels, plus four (4) part time channels consisting of play-by-play broadcasts
      corresponding to the seventh channel on Exhibit A, a time when the terms of
      the
      Canadian Licences prohibit more than nine
      (9)
      non-Canadian channels for each Canadian channel, the parties shall negotiate
      in
      good faith whether and on what terms to increase the number of CSR Channels
      beyond the initial nine (9) channels provided for herein. If the parties agree
      in writing to add additional
      channels
      to
      this
      Agreement,
      then
      such additional channels
      shall be
      considered part of the CSR Channels and as such subject to the same provisions
      of this Agreement as the initial CSR Channels.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.2  Grant
      of Rights to XM.

    

    (a)  CSR
      hereby grants to XM, its agents and contractors during the Term the right and
      licence (i) to transmit, distribute, use, receive and authorize XM subscribers
      to receive the CSR Programs over the XM System in the United States, the CSR
      System in Canada and other areas within the footprint of the XM satellites
      (the
“Territory”), and (ii) to retransmit the CSR Channels, or certain CSR Programs
      selected by XM, over satellite television, cable television, on XM’s
internet
      web streams and
      in
      any other manner in which XM
      programming is
      being
      transmitted or retransmitted,
      in each
      case as part of or in conjunction with XM’s basic
      SDARS (as such term is defined in the XM System Licence Agreement) in the United
      States.
      Such
      licence shall include reception by XM System subscribers and CSR System
      subscribers in the Territory. Without limiting the foregoing and subject to
      Section 1.2(b) below, none of the CSR Channels or any of the CSR Programs
      contained therein shall be made available for distribution or transmission
      in
      the Territory by any means or media other than as part of the Services under
      the
      XM System Licence Agreement without XM’s prior written consent (i.e., XM’s
      rights shall be exclusive in the Territory), which consent may be withheld
      or granted in XM’s sole discretion. 

     

    

    (b)  During
      the Term, CSR shall not licence or permit the transmission of any of the CSR
      Channels or any CSR Programs comprising the CSR Channels in Canada via digital
      terrestrial radio, any Canadian DARS system, or any other media except for
      the
      CSR System owned and operated by CSR as part of or in conjunction with the
      Services under the XM System Licence Agreement. 

     

    1.3  Program
      Content.
      

     

    (a)  CSR,
      at
      its sole expense, shall deliver to XM in accordance with Section 1.4
      the CSR
      Channels, currently consisting of nine (9) channels, each of which shall be
      programmed twenty-four (24) hours per day, seven (7) days per week,
      subject
      to any limitations set forth in Exhibit A.
      All
      creative control with respect to the CSR Channels shall remain with CSR so
      long
      as the CSR Channels meet
      the
      content requirements and guidelines set forth in
      the
      Canadian Licences, CSR’s broadcast standards and practices as amended from time
      to time as well as in this Section 1.3 and Exhibits A and B (as amended from
      time-to-time as permitted by the CRTC) to this Agreement. Given that the CSR
      Channels may be broadcast in the United States under the XM brand to XM
      subscribers,
      CSR
      agrees to consult with XM regarding general creative direction, concerns and
      issues in connection with the nature, subject and production of the CSR
      Channels.
      Any
      audio feed by which the CSR Channels are delivered shall include or be
      accompanied by the programming
      associated data
      (i.e.,
      PAD) required
      by XM from time to time to
      be
      broadcast with its audio channels (such as song title, artist and record label)
      in a format reasonably specified by XM from a technical
      perspective.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)  Consistent
      with XM’s broadcast standards and practices as applied to XM’s third party
      programmers, on
      each CSR
      Channel, one 30-second liner shall be reserved for XM’s use at both the top and
      the bottom of each clock hour for
      channel
      identifications and non-commercial promotional announcements relating to the
      Service, the CSR Channels
      and/or
      other XM products and services available in Canada.
      In
      addition, in the event of any unsold commercial availabilities on any CSR
      Channels, CSR may offer XM, at its discretion, non-commercial promotional
      announcements during such unused availabilities. XM may also air two (2)
      additional 30-second promotional liners per hour on each CSR Channel, provided
      that they do not preempt any paid advertising. XM shall furnish CSR with these
      non-commercial promotional announcements at least three (3) days in advance,
      and
      CSR shall include the announcements within the CSR Channels. CSR shall only
      identify the XM System and the channels included in XM broadcasts consistent
      with XM’s own standards as developed and modified from time to time.

     

    (c)  As
      the
      CSR Programs and the CSR Channels will also be included as part of XM service
      in
      the United States, name branding of the CSR Programs and the CSR Channels and
      any related slogans (collectively, the “Channel Brand Names”) by CSR shall be
      subject to the approval of XM, not to be unreasonably withheld. CSR shall own
      the rights to the Channel Brand Names with respect to Canada, and XM shall
      own
      the rights to the Channel Brand Names with respect to all areas outside of
      Canada. CSR’s and XM’s respective rights in the Channel Brand Names shall be
      licensed to the other party under, and on the terms agreed to in, the Trademark
      Licence Agreement.

     

    1.4  Delivery
      of CSR Channels/Programs.
      

     

    (a)  During
      the Term, CSR shall, at its sole cost and expense cause the CSR Channels (the
      foregoing programming to the extent included on the Service, is referred to
      herein as the “CSR Programming”), to be digitized, compressed, transmitted and
      received in digital signal(s) format via satellite (or other means acceptable
      to
      XM) at a satellite uplink facility identified in writing by XM from time to
      time
      (“Uplink Facility”); and the signal(s) and facilities used in connection with
      the delivery of the CSR Programming to the Uplink Facility shall fully comply
      with all applicable technical and other requirements of XM and the FCC,
      including without limitation the technical specifications as required by XM
      (collectively, the “Technical Standards”). XM reserves the right to change such
      Technical Standards from time to time, upon reasonable notice to CSR.

     

    (b)  If
      CSR
      fails, for any reason, to comply with the Technical Standards, CSR shall
      immediately take all actions necessary to correct the deficiency. In
      circumstances of a failure to meet the XM Technical Standards within a
      reasonable time frame, CSR shall bear all reasonable expenses of XM relating
      to
      its monitoring or enhancement of CSR’s signal(s). In addition, during any period
      in which CSR shall fail to deliver (an) acceptable signal(s) to XM, CSR shall,
      subject to the provisions of Section 8.1 below, reimburse XM for any costs
      attributable to such failure. 

     

    (c)  CSR
      shall, at its own cost and expense, provide to XM all data requested by XM
      for
      reporting to applicable performance rights organizations with respect to
      programming provided by CSR to XM for broadcast over the XM system. Such
      requirements currently include the
      following information
      for each
      piece of music included in the CSR Program:
      the
      artist name, track name, CD or album title, record label name, catalog number
      of
      CD or album, International Sound Recording Code, track label (P-Line), UPC
      code,
      applicable performance rights society, and date and time of transmissions.
      CSR
      shall deliver such data through use of equipment specified by XM, or by use
      of
      music cue sheets, as XM may require from time to time.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      TWO: 
      TERM

     

    2.1  Term.
       Subject
      to earlier termination in accordance with the terms of Sections 5.1, 5.2, 5.4
      and 5.5 of this Agreement, this Agreement shall commence on the date set forth
      above and
      shall
      continue in effect for
      the
      term of the XM
      System
      Licence Agreement (the “Term”);
      provided that if the term of the XM
      System
      Licence Agreement (or
      successor agreement) is extended, this Agreement shall continue on the same
      terms (unless the parties agree otherwise) for the revised term, plus any
      further extensions or continuations thereof.

     

    ARTICLE
      THREE: 
      MARKETING AND PROMOTION OF SERVICE

     

    3.1  Marketing
      and Promotion. The
      parties agree to comply with the provisions regarding marketing and promotion
      in
      the XM System Licence Agreement

     

    3.2  Programming
      Research. CSR,
      in
      consultation and coordination with XM, may conduct programming research
      regarding the Services in Canada, the results of which it shall provide to
      XM on
      a quarterly basis. CSR may undertake any research
      regarding
      the Services
      outside
      of
      Canada
      only with XM’s prior written consent, which consent may be withheld in XM’s sole
      discretion. 

     

    ARTICLE
      FOUR:
       SALE OF ADVERTISING; COMPENSATION

     

    4.1  Sale
      of Advertising.
      In
      consideration of CSR’s full performance of its obligations hereunder, CSR shall
      be entitled to sell all advertising included on each CSR Channel (the
“Advertising”) and to retain all revenues collected from such sales except as
      specified in Exhibit A, provided that (i)
      the
      amount of Advertising that can be included in each hour shall be consistent
      with
      the content requirements and guidelines set forth in Exhibits
      A and B hereto, and (ii) each music-oriented CSR Channel shall not include
      any
      Advertising
      inconsistent with XM’s commercial-free music policies.
      CSR
      shall be solely responsible, at its expense, for billing, collection and
      trafficking of all Advertising, and the insertion of the Advertising in each
      CSR
      Channel prior to delivery of each such CSR Channel to XM as provided in Section
      1.4. Subject to the conditions of its CRTC Licence
      and
      applicable Canadian law,
      CSR’s
      sale of Advertising is subject to compliance with XM’s standards and policies,
      including without limitation, XM’s then-current standard advertising
      guidelines.
      CSR
      shall include as part of any advertisement or promotion that sells or promotes
      products or services available only in Canada a disclaimer disclosing such
      limited availability
      as
      required by applicable laws.
      Without
      limiting the foregoing, subject to the next sentence, in no event shall
      Advertising included on the CSR Channels be used (i) to advertise or promote
      goods or services that are intended to be used or consumed primarily in the
      United States, its territories or possessions (i.e., “US-focused”) without
      coordinating with XM in advance and obtaining XM’s approval to do so, except as
      may be specifically contemplated in Exhibit A hereto, or (ii)
      to
      advertise or promote other satellite radio broadcasters, or goods or services
      that could reasonably be deemed detrimental to the image of the Services or
      XM.
CSR
      shall, be entitled to place U.S. focused advertisements on the NHL Talk Channel
      (Home Ice), the sixth channel on Exhibit A, so long as it forms part of the
      Services, without the consent or approval of XM. XM shall, be entitled to place
      U.S. focused advertisements on the NHL Play-by-Play Channel, the seventh channel
      on Exhibit A, so long as it forms part of the Services, without the consent
      or
      approval of CSR.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.2  XM
      Commissions. In
      the
      event XM refers to CSR any customer that purchases Advertising from CSR for
      placement
      in any
      or more CSR Channels, then CSR shall pay XM a referral fee consistent
      with commissions
      paid by CSR to its advertising
      sales
      force
      generally,
      provided
      that consent to payment of such fee is obtained from the customer after
      appropriate disclosure (and CSR agrees to provide such disclosure and seek
      such
      consent).
      

     

    4.3  Advertising
      Clearance.  CSR
      shall
      clear and shall be responsible for all costs and expenses incurred to clear
      the
      rights to (including paying any talent royalties or payments for) all
      Advertising for broadcast in the United States and Canada. 

     

    4.4  Performance
      Rights. CSR
      shall
obtain
      and maintain and shall be
      responsible for all costs and expenses incurred to obtain and maintain all
      performance rights, including all required payments to the Canadian equivalent
      of ASCAP, BMI, SESAC, and the RIAA and to all Canadian regulatory tribunals
      or
      ratemaking bodies in respect of the copyright rates that may be set for
      reproduction or retransmission of the XM CPackage in Canada. XM shall be
      responsible for such costs and expense with respect to broadcast of the Programs
      and the CSR Channels in the U.S.

     

    ARTICLE
      FIVE:
       TERMINATION

     

    5.1  Termination.
      Either
      party may terminate this Agreement (the “Terminating Party”) upon written notice
      to the other party (the “Defaulting Party”) in the event the Defaulting Party
      fails to perform any of its covenants or obligations hereunder in all material
      respects or makes any material misrepresentation hereunder, which failure or
      misrepresentation is not cured within sixty (60) days (or longer if CSR is
      diligently trying to cure) after written notice thereof is given by the other
      party,
      or in
      the event the Defaulting Party liquidates or winds up its daily operations
      for
      any reason whatsoever. 

     

    5.2  Termination
      of XM System Licence Agreement.
      This
      Agreement shall terminate immediately upon the expiration or termination for
      any
      reason of the XM System Licence Agreement.

     

    5.3  Other
      Remedies.
      If this
      Agreement is terminated in accordance with the provisions set forth in Section
      5.1 above, the non-Defaulting Party shall be entitled to exercise all remedies
      which may be available to it, either at law or in equity, or both, but subject
      to the limitation contained in Section 5.4.

     

    5.4  Limitations
      of Liability.
      NO PARTY
      HERETO SHALL BE LIABLE TO THE OTHER PARTY HERETO FOR ANY INDIRECT, INCIDENTAL,
      CONSEQUENTIAL, SPECIAL, OR PUNITIVE DAMAGES OF ANY NATURE ARISING OUT OF OR
      RELATED TO THIS AGREEMENT, WHETHER ARISING IN TORT, CONTRACT OR OTHERWISE,
      AND
      INCLUDING LOST REVENUES, LOST PROFITS, INTERRUPTION OF BUSINESS OR OTHERWISE,
      EVEN IF THE POSSIBILITY OF SUCH DAMAGES WERE FORESEEABLE.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      SIX:  REPRESENTATIONS,
      WARRANTIES AND COVENANTS

     

    6.1  CSR’s
      Representations, Warranties and Covenants.
      CSR
      Parent and CSR jointly and severally represent, warrant and covenant to XM,
      as
      of the date hereof and throughout the Term, as follows:

     

    (a)  CSR
      has
      obtained or will obtain all necessary rights and/or permission to grant the
      licences contemplated in this Agreement and to perform fully its obligations
      hereunder. Without limiting the generality of the foregoing, CSR has secured
      or
      will secure all necessary rights from talent or other third parties in order
      to
      grant XM the licence to use the CSR Programming and
      Advertising as
      described in this Agreement, and upon request of XM, CSR shall furnish
      appropriate documentation evidencing such rights. The CSR
      Programming
      and Advertising,
      including each of the CSR Programs, in the form delivered by CSR to XM when
      used
      for the purpose and in the manner contemplated by this Agreement: (i) do not
      and
      will not infringe upon any United States, Canadian, or other foreign copyright,
      trade name, trademark, service mark, trade secret, literary or dramatic right
      or
      other proprietary right of any third person (including the right of privacy
      and
      publicity) in connection with the transmission of the CSR Channel within the
      XM
      footprint; and (ii) will comply with all applicable governmental laws and
      regulations. CSR shall comply with all applicable reporting processes and
      royalty payment requirements with respect to all applicable Canadian performance
      rights societies. 

     

    (b)  CSR
      shall
      maintain, at its own cost and expense, commercial insurance that is reasonable
      and customary for a company of its size and circumstances, including insurance
      covering the third party liability aspects of its obligations under this
      Agreement under an “errors and omissions” or similar commercially available
      policy. The insurance requirement in the prior sentence shall apply
      to
      the
      extent such insurance is available at a commercially reasonable cost in the
      commercial (as distinguished from specialty) insurance market. Nothing in this
      Agreement shall require CSR to obtain any special or unusual insurance coverage.
      Such
      insurance shall remain in force at all times during the Term hereof and for
      a
      period of five (5) years thereafter. Upon the reasonable request of XM, CSR
      shall provide XM with a certificate of insurance evidencing this coverage,
      or
      other appropriate proof of continuing insurance coverage. 

     

    6.2  XM’s
      Representations, Warranties and Covenants.
      XM
      represents, warrants and covenants to CSR Parent and CSR, as of the date hereof
      and throughout the Term, that XM
      has
      obtained and will maintain all material FCC authorizations or other government
      approvals for the provision of the Services.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      SEVEN:
       INDEMNIFICATION

     

    7.1  Breach
      or Default.
      XM and
      CSR shall each indemnify, defend and forever hold harmless the other and the
      other’s affiliated companies and each of the other’s (and the other’s affiliated
      companies’) respective present and former officers, shareholders, directors,
      employees, partners and agents, from and against any and all losses,
      liabilities, claims, costs, damages, expenses, including without limitation,
      fines, forfeitures, attorneys’ fees, disbursements and court and/or
      administrative costs (collectively, “Loss and Expense”), arising out of any
      third-party claim based on its breach of or default under any term, warranty,
      covenant, representation or other obligation contained herein. 

     

    7.2  Program
      or Mark-Related Indemnities. 

     

    (a)  Without
      limiting the provisions of Section 7.1, CSR shall indemnify, defend and forever
      hold harmless XM and XM’s affiliated companies and each of XM’s (and its
      affiliated companies’) respective present and former officers, shareholders,
      directors, employees, partners and agents, from and against all Loss and Expense
      arising directly or indirectly out of: (i) the development, production or supply
      of, or negotiation for, the CSR Programming by CSR; or (ii) the content of
      the
      CSR Programming, including the Advertising, provided by CSR and/or any data
      or
      material included therein or arising out of CSR's delivery and XM's transmission
      of the CSR Programming pursuant to this Agreement, including without limitation,
      any alleged or proven libel, slander, defamation, invasion of the right of
      privacy or publicity, violation, infringement or misappropriation of any
      performance right, copyright, trade name, trademark, trade secret, patent right,
      literary or dramatic right, or obscenity or indecency contained in the CSR
      Programming as provided by CSR, including the Advertising; or (iii) the
      negligent or willful acts or omissions of CSR or its equipment and/or service
      vendors.

     

    (b)  Without
      limiting the provision of Section 7.1, XM shall indemnify, defend and forever
      hold harmless CSR and CSR’s affiliated companies and each of CSR’s (and its
      affiliated companies’) respective present and former officers, shareholders,
      directors, employees, partners and agents, from and against all Loss and Expense
      arising directly or indirectly out of: (i) the development, production or supply
      of, or negotiation for the XM programming; or (ii) the content of the XM
      programming, including the advertising, provided by XM and/or any data or
      material included therein or arising out of XM's transmission of the XM
      programming pursuant to this Agreement, including without limitation, any
      alleged or proven libel, slander, defamation, invasion of the right of privacy
      or publicity, violation, infringement or misappropriation of any performance
      right, copyright, trade name, trademark, trade secret, patent right, literary
      or
      dramatic right, or obscenity or indecency contained in the XM programming as
      provided by XM, including advertising; or (iii) the negligent or willful acts
      or
      omissions of XM or its equipment and/or service vendors.

     

    (c)  CSR
      and
      XM agree
      to
      notify the other in the event that either party discovers an unauthorized
      third-party’s retransmission the programming.

     

    7.3  Indemnification
      Procedures. Each
      party seeking indemnity hereunder (the “Indemnified Party”) shall give prompt
      written notice to the other party (the “Indemnifying Party”) of any
      circumstances which may give rise to any Loss or Expense under this Article
      7 as
      soon as the Indemnified Party knows of such circumstances; provided, however,
      that unless prejudiced by the failure to give such notice, such failure shall
      not relieve the Indemnifying Party of its obligation to indemnify the
      Indemnified Party under this Article 7. The Indemnifying Party shall, at its
      own
      cost and expense and using counsel reasonably acceptable to the Indemnified
      Party, contest and assume responsibility for the defense of such litigation,
      provided that the Indemnified Party may, at the Indemnifying Party’s own cost
      and expense, participate in the defense of any such claim, action or suit.
      The
      Indemnifying Party shall have the right to control the defense and any
      settlement of such claim, action or suit. The Indemnifying Party shall pay
      all
      expenses and satisfy all judgments, including reasonable attorneys’ fees and
      litigation expenses, which may be incurred by or rendered against the
      Indemnified Party in connection therewith.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7.4  Survival
      of Indemnification Obligation.
      The
      indemnification obligations of the parties under this Article 7 shall survive
      the expiration or termination of this Agreement.

     

    ARTICLE
      EIGHT:
       FORCE MAJEURE

     

    8.1  Force
      Majeure.
      Neither
      XM nor CSR shall have any rights against the other for any failure of or delay
      in performance due to causes beyond its control, including without limitation,
      failure of the XM System or any element thereof (including general satellite,
      transponder, repeater or radio failures), acts of God, fires, floods or other
      catastrophes; national emergencies, terrorism, insurrections, riots or wars;
      strikes, lockouts, work stoppages or other labor difficulties; and any law,
      order, regulation or other action of any governing authority or agency thereof.
      Carriage of the CSR Channels on the XM System may be preempted, interrupted
      or
      suspended due to unusual, abnormal or other unforeseen situations, or conditions
      or for reasons beyond XM’s control, including without limitation, maintenance
      requirements or emergency conditions experienced by XM; or to protect the XM
      System, its personnel, facilities or services (collectively, “Emergency
      Preemption”). Upon notice of or otherwise becoming aware of an Emergency
      Preemption, CSR shall, upon the request of XM, immediately cease transmission
      of
      the CSR Programming. XM may cause such Emergency Preemption to occur without
      liability to CSR; provided, however, that XM shall, to the extent possible,
      give
      reasonable notice thereof and use commercially reasonable efforts to restore
      full carriage as soon as practicable.

     

    ARTICLE
      NINE:
       CONFIDENTIALITY; PUBLICITY

     

    9.1  Confidentiality. 

     

    (a)  “Confidential
      Information” includes, but is not limited to any information which any party
      hereto considers to be of a proprietary and confidential nature and includes,
      without limitation, know-how, data, process, technique, program, design,
      formula, marketing, advertising, financial, sales, customer or programming
      matter, compositions, drawings, diagrams, computer programs, studies, work
      in
      process, visual demonstrations, concepts, and other data, whether oral, written,
      graphic, or electronic form, which may be exchanged between the parties. For
      the
      purposes of this Agreement, “Confidential Information” shall include, without
      limitation, the existence or contents of this Agreement. Confidential
      Information does not include the following information: 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (i)

            	
              information
                which is now or which hereafter becomes publicly known or available
                through no act or failure on the part of the receiving
                party;

            

    

     

    
      	 	
              (ii)

            	
              information
                which is actually known to the receiving party at the time of the
                receipt
                of such Confidential Information without obligation of confidentiality;
                and

            

    

     

    

     

    
      	 	
              (iii)

            	
              information
                which is hereafter furnished to the receiving party by a third party
                without obligation of confidentiality.

            

    

    (b)  Each
      party hereto will not use the Confidential Information of the other party for
      any purpose other than to perform this Agreement, will not disclose the
      Confidential Information of another party hereto to third parties, except:
      

     

     

    
      	 	
              (i)

            	
              to
                those third parties who have a need to know such information in order
                for
                the receiving party to perform this Agreement, and who have executed
                a
                written non-disclosure agreement with substantially similar protections
                to
                those contained herein; will protect the Confidential Information
                of the
                other parties hereto with at least the same degree of care as it
                uses in
                protecting its own confidential information; and will not copy the
                Confidential Information of any other party hereto without first
                getting
                the other’s written consent; or

            

    

     

    
      	 	
              (ii)

            	
              disclosure
                as may be required by law, regulation, court of government agency
                of
                competent jurisdiction (however, if required to make such a disclosure,
                the receiving party agrees to give the disclosing party prompt notice
                prior to disclosure and make a reasonable effort to assist disclosing
                party in obtaining a protective order or in redacting specified
                information to the extent reasonably permitted by applicable law
                or
                regulation). 

            

    

    

    These
      obligations remain in effect after expiry or termination of this Agreement.
      

     

    (c)  After
      termination or expiry of the term of this Agreement, any party hereto may
      require any other party hereto to return immediately
      or, as the applicable parties may agree, destroy all copies of its Confidential
      Information the other then has and certify to it the other has taken these
      steps. 

     

    (d)  In
      the
      event of breach of the confidentiality provisions of this Agreement by the
      receiving party, it acknowledges that the disclosing party will be irreparably
      harmed, and that the disclosing party shall, in addition to any other available
      remedies, be entitled to obtain equitable relief to prevent further disclosures
      without resorting to the dispute resolution procedures set forth below.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9.2  Publicity.
      All
      public notices to third parties and all other publicity concerning the
      transactions contemplated by this Agreement shall be jointly planned and
      coordinated by the parties hereto. No party shall act unilaterally in this
      regard, unless required by law or regulation to do so, and any party required
      to
      act within a particular time frame under applicable law or regulation will
      afford the other party such opportunity to consult as such time frame
      permits.

     

    9.3  Survival.
      The
      parties’ obligations under this Article 9 shall survive the expiration or
      termination of this Agreement. 

     

    ARTICLE
      TEN:
       MISCELLANEOUS

     

    10.1  Assignment.
      This
      Agreement shall inure to the benefit of and shall be binding upon the successors
      and permitted assigns of the parties hereto. No party shall be entitled to
      assign this Agreement
      without
      the prior written consent of the
      other
      parties. Notwithstanding the foregoing, each party shall be entitled to assign
      this Agreement without such consent to a successor in interest (other than
      a
      direct competitor of XM) arising through merger, acquisition, reorganization
      or
      sale of all or substantially all of its assets or business, or to a lender
      as
      security for financing. Any attempted assignment made contrary to this Article
      shall be void.

     

    10.2  Notices.

     

    (a)  Any
      notice or other communication required or permitted to be given by this
      Agreement to a party hereto shall be in writing and shall be delivered by hand
      or registered mail to the recipient at the following addresses: 

     

    To
      XM:

     

    XM
      SATELLITE RADIO INC.

    1500
      Eckington Place, NE

    Washington,
      DC 20002

    

    Attention: Joseph
      Titlebaum

                       
      Executive Vice President, General Counsel

                       
      Joseph Verbrugge

                       
      Vice President, International Operations

    

     

    To
      CSR:

    

    CANADIAN
      SATELLITE RADIO INC.

    Suite
      2300, P.O. Box 222

    Canada
      Trust Tower, BCE Place

    161
      Bay
      Street

    Toronto,
      Ontario M5J 2S1

    

    Attention:
       Legal
      Department

     

    or
      at
      such other address of which that party shall have given notice. Proof of
      delivery by hand or registered mail shall constitute proof of
      receipt.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10.3  Law;
      Dispute Resolution. 

     

    (a)  This
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the State of New York, provided that any matters regarding the requirements
      of
      Canadian laws shall be governed by and interpreted in accordance with the laws
      of the Province of Ontario and the federal laws of Canada applicable therein,
      except that regulatory matters relating to licences awarded by the government
      of
      Canada to CSR which shall be governed by and interpreted in accordance with
      the
      federal laws of Canada. 

     

    (b)  The
      parties agree that upon either party giving notice to the other, the matter
      shall be subject to arbitration. In case of any controversy or claim arising
      out
      of or related to this Agreement, the parties agree to meet to resolve such
      dispute in good faith. Should such a resolution not be reached, the parties
      further agree that the matter (other than claims for which injunctive relief
      is
      sought) shall be settled by arbitration in accordance with the provisions set
      forth in the XM System Licence Agreement.

     

    10.4  Waiver
      and Severability.
      Neither
      the waiver by either of the parties hereto of a breach of, or a default under,
      any of the provisions of this Agreement, nor the failure of either of the
      parties, on one or more occasions, to enforce any of the provisions of this
      Agreement or to exercise any right or privilege hereunder shall thereafter
      be
      construed as a waiver of any preceding or subsequent breach or default of the
      same or any other obligation, or as a waiver of any provision, right, or
      privilege hereunder. Any waiver under this Agreement must be in writing. In
      the
      event that any one or more of the provisions of this Agreement shall be held
      by
      a court of competent jurisdiction to be invalid or unenforceable in any respect,
      such invalidity and unenforceability shall not affect any other provision of
      this Agreement, and the Agreement shall be construed as though such invalid
      and/or unenforceable provision(s) had never been contained herein.

     

    10.6  CSR
      Parent Guarantee.
      CSR
      Parent hereby guarantees performance by CSR of all obligations of CSR
      hereunder.

     

    10.7  Entire
      Agreement; Modification.
      This
      Agreement together with the Transaction Documents (as defined in the XM System
      Licence Agreement) contains the entire agreement between the parties hereto
      with
      respect to the subject matter hereof, and expressly supersedes all prior or
      contemporaneous agreements, whether oral or written, relating to such subject
      matter. No amendment of or modification to this Agreement shall be valid unless
      made in writing and signed by the authorized representative(s) of the parties.
      

     

    10.8  Attorneys’
      Fees.
      If any
      suit, appeal, or other action is commenced by a party to establish, maintain,
      or
      enforce any right or remedy arising from this Agreement, the prevailing party
      shall be entitled to reimbursement from the other party of its reasonable
      attorneys’ fees and litigation or appeal expenses incurred therein.

    

      10.9  Headings.
        The
        headings and numbering of articles and sections in this Agreement are for
        convenience only and shall not be construed to define or limit any of the
        terms
        herein or affect the meaning or interpretation hereof. Any reference in this
        Agreement to an "Article," "Section" or an "Exhibit" shall, unless the context
        expressly requires otherwise, be a reference to an "Article," or "Section"
        in,
        or an "Exhibit" to, this Agreement.

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    10.10  Further
      Assurances.
      The
      parties hereto shall do, execute and deliver such further and other agreements,
      assurances, undertakings, acknowledgements or other documents in connection
      with
      this Agreement as may reasonably be required to give full force and effect
      to
      this Agreement. The
      parties acknowledge and agree that there are instances in this Agreement in
      which items are specified by the delivery of notices, numbers are fixed based
      upon developments and such numbers may be recorded in further documents,
      schedules are revised or deemed revised to accurately reflect actions being
      taken by XM or CSR consistent with this Agreement, and so on. The parties agree
      that all such notices, acknowledgements, other documents, schedules and so
      on
      are considered part of this Agreement, rather than amendments or modifications
      hereof. 

     

    10.11  Independent
      Parties.
      This
      Agreement does not constitute and shall not be construed as constituting a
      partnership or joint venture between CSR and XM. Neither party shall have rights
      to obligate or bind the other party in any manner whatsoever, save as herein
      specifically provided and nothing contained in this Agreement shall give or
      is
      intended to give any rights of any kind to persons not party to this
      Agreement.

     

    10.12  Counterparts.
      This
      Agreement may be executed either original or facsimile in one or more
      counterparts, each of which shall be deemed an original, but all of which
      together shall constitute one and the same instrument.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    

    
      	 	
              XM
                SATELLITE RADIO INC.

               

              /s/
                Gary M. Parsons

              
                

              

              Name:
                Gary M. Parsons

              Title:
                Chairman

            
	 	
               

            
	 	
              CANADIAN
                SATELLITE RADIO

              HOLDINGS
                INC. 

               

              /s/
                John I. Bitove

              
                

              

              Name:
                John I. Bitove

              Title:
                Chairman and CEO

            
	 	 
	 	
              CANADIAN
                SATELLITE RADIO INC.

               

              /s/
                John I. Bitove

              

              Name:
                John I. Bitove

              Title:
                Chairman and CEO

               

            

    

    

     

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT A:
      CHANNEL DESCRIPTIONS*

     

    1)
      Music Channel (Unsigned): This
      English-language commercial-free, channel for 18-49 adults will showcase
new
      and
      emerging
      music
      in the
      genres of rock.. 

    

    2)
      Music Channel (Air
      Musique):
      This
      French-language youth-oriented commercial-free, music channel will focus on
      popular Canadian musical artists performing in French. 

    

    3) Music
      Channel (Sur
      la route):
      A French-language
      adult-oriented commercial-free music channel.

     

    4)
      Comedy Talk Channel (Laugh
      Attack):
      This
      comedy channel will showcase comedians and comedy segments from the most popular
      comedians from the past and present with a special emphasis on Canadian comic
      talent. 

     

    5)
      French Talk Channel (Franc
      Parler):
      This
      French talk channel will target male listeners18-54 years of age focusing
      sports, news, business, health and technology. 

    

    6)
      **NHL Talk Channel (Home
      Ice):
      This
      magazine style, sports talk channel will be a dedicated full
      time
      (24/7) radio
      channel featuring original programming that will focus on all aspects of
      hockey.

    

    7)
      ***NHL Info
      Play-by-Play: This
      channel provides daily play-by-play coverage with games and channel numbers,
      as
      well as providing
      the
      latest in hockey news, including news, scores and statistics, across North
      America. 

     

    8)
      ****Canadian National News, Business, Sports, Entertainment and Weather
      (Canada
      360):
      A 24/7
English
      language information
      channel that delivers
      news,
      business, sports, entertainment and national weather with a Canadian
      perspective, updated every hour.  

     

    9)
      ****French Canadian Cultural News and Entertainment (Quoi
      de Neuf):
      A 24/7
      French language information channel that delivers
      the
      latest arts and entertainment news.  

    

    

    

    *The
      channels described above will comply with all CRTC programming rules and
      regulations. Talk channels may include advertising. Channel names are subject
      to
      change in accordance with Section 1.3(c) of the Agreement to which this Exhibit
      is attached. 

     

    **When
      this channel is airing, U.S. focused advertisements are permitted. 

     

    ***This
      channel initially will air only during the NHL hockey season. XM reserves the
      right to withdraw this channel from the CSR Channels upon written notice to
      CSR,
      following which there shall only be eight (8) CSR Channels. Following such
      notice the parties will negotiate in good faith about whether
      to continue the production of the channel in an alternative format that may
      be
      desirable at that time, but such negotiations shall be without prejudice to
      XM’s
      right to withdraw the channel.
      This
      channel shall not be subject to any requirement that the audio quality be
      comparable to that of any other channel. CSR
      shall
      make available on
      such
      channel to
      XM 6
      minutes per hour (or more if allowable by the CRTC) of advertising time for
      XM
      sale or XM Programming promotions. XM
      shall
      be entitled to sell advertisements on such channel and retain
      all revenues collected from all sales of U.S.
      focused advertisements on this channel. 

     

    ****Comparable
      to a traffic and weather channel for audio quality purposes.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    Appendix
      to Broadcasting Decision CRTC 2005-246

    

    Conditions
      of licence for the satellite subscription radio undertaking licenced to Canadian
      Satellite Radio Inc. (“licensee”)*

    

    

    1. (a) The
      licensee shall provide a national satellite subscription radio undertaking
      consisting of original Canadian-produced channels and non-Canadian channels.
      The
      licensee is authorized to distribute the services of XM Satellite Radio Inc.
      in
      accordance with the terms of the conditions of licence set out
      below.

    

    (b) The
      licensee shall distribute a minimum of eight original Canadian-produced
      channels.

    

    (c) The
      licensee may distribute, to any Canadian subscriber, a maximum of nine
      non-Canadian-produced channels for each original Canadian-produced channel
      that
      it distributes.

    

    (d) In
      no
      case may a subscriber receive a package of channels where original
      Canadian-produced-channels constitute less than 10 percent of total channels
      received.

    

    For
      purposes of this condition of licence, an "original Canadian-produced channel"
      is a channel produced in Canada that consists of programming not less than
      50%
      of which is produced for and broadcast for the first time on that
      channel.

    

    2. The
      licensee shall, in a week, devote a minimum of 85% of the total musical
      selections broadcast on all Canadian-produced channels, considered together,
      to
      Canadian selections as defined in section 2.2(2) of the
      Radio Regulations, 1986.

    

    3. The
      licensee shall, in a week, devote at least 85% of the total spoken word
      programming broadcast on all Canadian-produced channels, considered together,
      to
      Canadian spoken word programming.

    

    For
      purposes of this condition of licence "Canadian spoken word programming" means
      programming other than musical selections or commercial messages that is
      produced in Canada and where a Canadian is the primary performer or
      speaker.

    

    4. (a) The
      licensee shall distribute a minimum of three French-language original
      Canadian-produced channels.

    

    (b) Not
      less
      than 25% of the original Canadian-produced channels distributed by the licensee
      shall consist of French-language original Canadian-produced
      channels.

    

    For
      purposes of this condition of licence, an "original Canadian-produced channel"
      is a channel produced in Canada that consists of programming not less than
      50%
      of which is produced for and broadcast for the first time on that
      channel.

    

    5. The
      licensee shall, during a week, on each French-language channel, devote 65%
      or
      more of its vocal musical selections from content category 2 to musical
      selections in the French language and schedule them in a reasonable manner
      throughout each day.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6. The
      licensee shall devote, between 6 a.m. and midnight each week on each Canadian
      music channel, a minimum of 25% of the musical selections broadcast to new
      Canadian musical selections, and a minimum of 25% of the musical selections
      broadcast to Canadian selections by artists who have not had a musical selection
      that has reached a position on one or more of the charts identified in the
      list
      set out in Circular 445, 14 August 2001, as may be amended from time to
      time.

    

    For
      the
      purposes of this condition of licence, a "new Canadian musical selection" is
      a
      Canadian selection that has been released in the 6 months prior to the date
      that
      the musical selection is broadcast. The
      Eastern time zone will be used for purposes of determining compliance with
      this
      condition of licence. The
      licensee will also be responsible for specifying on the music lists it provides
      to the Commission, the release date of all musical selections it
      broadcasts.

     

    7. The
      licensee shall not broadcast any original local programming on a
      Canadian-produced channel. For
      the
      purposes of this condition of licence "original local programming" means
      programming produced by the licensee for broadcast on the satellite subscription
      radio undertaking that targets a particular geographic community and includes,
      but is not limited to, commercial messages, news, weather and traffic
      information.

    

    8. The
      licensee shall broadcast no more than six minutes of national commercial
      messages during any clock hour on any Canadian-produced channel. For
      purposes of this condition of licence a "national commercial message" is a
      commercial message that is purchased at a national rate and receives national
      distribution on the service.

    

    9. The
      licensee shall adhere to sections 3, 4, 6,10.1 (with respect to its terrestrial
      transmitters) and 11 of the Radio
      Regulations,
      1986.

    

    10. The
      licensee shall adhere to the guidelines on gender portrayal set out in the
      Canadian Association of Broadcasters’ (CAB) Sex-Role
      Portrayal Code for Television and Radio Programming,
      as
      amended from time to time and approved by the Commission. The
      application of the foregoing condition of licence will be suspended as long
      as
      the licensee is a member in good standing of the Canadian Broadcast Standards
      Council.

    

    11. The
      licensee shall adhere to the provisions of the CAB’s Broadcast
      Code for Advertising to Children,
      as
      amended from time to time and approved by the Commission.

    

    12. The
      licensee shall, for each Canadian-produced channel, adhere to the provisions
      of
      sections 8(1), (2), (3), (4), (5) and (6) of the Radio
      Regulations, 1986.

    

    13. The
      licensee shall, for any non-Canadian-produced channel that may be identified
      by
      the Commission from time to time, adhere to the provisions of sections 8(5)
      and
      (6) of the Radio
      Regulations, 1986.

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    14. (1) For
      the
      purposes of this condition of licence,

    

    
      	 	 	
              "Canadian
                musical selection" means a musical selection that meets the criteria
                set
                out in subsection 2.2(2) of the Radio
                Regulations, 1986.

            

    

    

    
      	 	
              (2)

            	
              On
                or before November 30 of each year, the licensee shall submit to
                the
                Commission a statement of accounts, on the annual return of broadcasting
                licensee form, for the year ending on the previous August
                31.

            

    

    

    
      	 	
              (3)

            	
              For
                any Canadian-produced channel, the licensee shall, at the request
                of the
                Commission, submit for any period specified by the Commission in
                its
                request

            

    

    

    
      	 	
              (a)

            	
              the
                information required by the most recent Station Self-assessment Report
                form issued by the Commission; and

            

    

    

    
      	 	
              (b)

            	
              a
                list of the musical selections in the order in which they are broadcast
                by
                the licensee during that period that includes the title and performer
                of
                each musical selection and a legend that
                identifies

            

    

    

    (i) any
      Canadian musical selection,

    

    (ii) any
      instrumental selection,

    

    
      	 	
              (iii)

            	
              any
                category 3 musical selection within the meaning of Public Notice
                CRTC
                1991-19 of 14 February 1991 entitled Implementation
                of the FM Policy
                and published in the Canada Gazette Part I on 23 February 1991,
                and

            

    

    

    
      	 	
              (iv)

            	
              the
                language of the musical selection, where the musical selection is
                not an
                instrumental selection.

            

    

     

    
      	 	
              (4)

            	
              For
                any non-Canadian produced channel, the licensee shall, at the request
                of
                the Commission, submit for any period specified by the Commission
                in its
                request, the following information for each musical selection
                broadcast:

            

    

    

    (i) the
      name
      of the artist;

    

    
      	 	
              (ii)

            	
              the
                name of the album from which the musical selection is taken and the
                number
                of the track;

            

    

    

    
      	 	
              (iii)

            	
              the
                year that the musical selection was released;
                and

            

    

    

    
      	 	
              (iv)

            	
              the
                version of the track, where multiple versions
                exist.

            

    

    

    
      	 	
              (5)

            	
              At
                the request of the Commission, the licensee shall provide the Commission
                with a response to any inquiry regarding the licensee’s programming,
                ownership or any other matter within the Commission's jurisdiction
                that
                relates to the licensee's
                undertaking.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    15. For
      the
      purposes of all the conditions of licence set out above, the terms "broadcast
      day," "broadcast week," "commercial message," "content category," "content
      subcategory," "ethnic program," "licensed," and "musical selection," shall
      have
      the meaning set out in section 1 of the Radio
      Regulations, 1986. 
      "Day"
      means the total number of hours devoted to broadcasting for a period beginning
      at 12:00 in the forenoon and ending at midnight of the same day. "Week" means
      seven consecutive days beginning on Sunday.

    

    

    _____________________

    

    CSR
      has
      also submitted an application,
      dated
      September 7, 2005 to the CRTC, which as of the date of this Agreement has not
      been
      approved
      by the
      CRTC or become part of the licence requirements.
      However,
      if that application is approved by the CRTC on terms substantially as applied
      for by CSR, the conditions of licence will be amended to require that:

    

    1. From
      the
      date of service launch (planned for December 2005), a minimum of four of the
      eight Canadian programming channels to be provided by CSR will be French
      language programming channels.

    

    2. From
      the
      date of service launch, a minimum of two of the four French language programming
      channels offered by CSR will be musical programming channels.

    

    3. If,
      during the thirty-six (36) month period following service launch CSR is able
      to
      add additional Canadian programming channels, it will honour the principle
      of
      equality of linguistic service in respect of any additional Canadian programming
      channels it is able to offer.

    

    4. If
      within
      that thirty-six (36) month period from the date of service launch CSR has
      exceeded by 25% or more its subscriber projections, as filed in its licensing
      application, but has been unable to introduce in that period at least two
      additional Canadian programming channels (i.e., one English language, one French
      language), CSR will commit from that date forward to provide 6% of its gross
      service revenues (rather than 5%) to the support of Canadian Talent Development
      (“CTD”) initiatives. Such additional funding for CTD initiatives shall be
      divided equally between French and English language CTD
      initiatives.

    

    5. CSR
      will
      work closely with the relevant Canadian agencies in the field of emergency
      preparedness, and will be an active participant in Canada’s Public Safety and
      Emergency Preparedness programs.

    

    

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

    

    CSR’S
      CODE OF BROADCAST STANDARDS AND PRACTICES

     

     

    All
      employees of CSR must adhere to the provisions of the Canadian Association
      of
      Broadcaster’s (the “CAB”) Broadcast Code for Advertising to Children, and the
      CAB’s Sex Role Portrayal Code for Television and Radio Programming, as these
      codes may be amended from time to time and approved by the CRTC. All employees
      of CSR shall also adhere to the CAB’s Code of Ethics, as approved by the CRTC. A
      copy of each of these codes is appended hereto and each forms a part of CSR’s
      Code of Broadcast Standards and Practices. CSR shall become a member in good
      standing of the Canadian Broadcast Standards Council (“CBSC”) and shall abide by
      any Code for subscription satellite radio broadcasters that it may develop.
      In
      addition, employees of CSR shall in the performance of their duties comply
      with
      the following policies relating to broadcast standards and practices.

    

    All
      policies are subject to change.

    

    Broadcast
      of Obscene Material: Obscene
      material may not be broadcast at any time. Broadcast material is "obscene"
      if
      (i) the average person, applying contemporary community standards, would find
      that the material applies to the prurient interest, (ii) the material describes
      or depicts sexual conduct in a patently offensive manner, or (iii) taken as
      a
      whole, the material lacks serious literary, artistic, political, or scientific
      value. The broadcast of obscene material is a very serious offence.
      Violators of this policy are subject to disciplinary action, including up to
      immediate termination of employment.

    

    Broadcast
      of Indecent Material: The
      airing of indecent material is prohibited between the hours of 6 a.m. and 10
      p.m. on those channels not designated as containing explicit language. Broadcast
      material is "indecent" if it depicts or describes, in terms patently offensive
      (as measured by contemporary community standards) sexual or excretory activities
      and organs. If any on-air talent is uncertain whether its intended broadcast
      may
      be deemed indecent or obscene, the station should immediately consult with
      the
      relevant CSR employee prior
      to
      broadcasting the programming.

    

    Falsehoods:
      Any
      on-air talent that broadcasts falsehoods that injure a person’s reputation may
      be subject to disciplinary action, including up to termination of employment.
      All of the following are prohibited:
      any libel,
      slander, defamation, invasion of the right of privacy or publicity, violation,
      infringement or misappropriation of any performance right, copyright, trade
      name, trademark, trade secret, literary or dramatic right.

    

    Invasion
      of Privacy: Any
      on-air talent that broadcasts a private and intimate fact about a person without
      a newsworthy reason for doing so may be subject to disciplinary action,
      including up to termination of employment.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Recording
      and Broadcasting of Telephone Conversations: Prior
      to
      recording a telephone conversation for broadcast or broadcasting such a
      conversation live on the air (in whole or in part), the station must notify
      all
      parties to the call of the station's intention to broadcast the conversation.
      The only time prior express notification is not required is when the other
      party
      to the call is associated with CSR or XM (e.g.,
      an
      employee or part-time reporter), or where the other party originates the call
      and it is obvious that the call is in connection with a program in which the
      station customarily broadcasts telephone conversations (e.g.,
      a
      call-in show). A "conversation" begins whenever a party answers the telephone.
      Therefore, the prior notification requirement is violated when the party called
      answers the phone by saying "Hello" - even if the station announcer immediately
      informs the party called of the announcer's identity and the fact that the
      telephone conversation is being recorded for later broadcast or is being
      broadcast live. Live broadcast use of a telephone conversation prior to
      informing the other party of the station's intention to broadcast it, even
      with
      the intent of, and/or actually obtaining the party's permission during the
      broadcast, is unacceptable. The brevity of the conversation, even if it is
      as
      short as one word, is immaterial.

    

    If
      CSR
      fails to notify a party of its intention to broadcast a telephone conversation
      prior
      to
      recording and/or broadcasting the conversation, it may be subject to civil
      lawsuits, and the Program Director or on-air talent responsible for such failure
      may be subject to disciplinary action, including up to immediate termination
      of
      employment.

    

    Broadcast
      Hoaxes: It
      is
      prohibited to broadcast false information concerning a crime or a catastrophe
      if
      (i) the channel Program Director or on-air talent knows that the information
      is
      false, (ii) it is foreseeable that broadcast of the information will cause
      substantial public harm, and (iii) broadcast of the information does in fact
      directly cause substantial public harm. "Public harm" is defined as harm that
      causes direct and actual damage to property or to the health or safety of the
      general public or diverts law enforcement or other public health and safety
      authorities from their duties. Public harm is "foreseeable" if it can be
      expected with a significant degree of certainty that such harm will
      occur.

    

    Listener
      Contests and Prizes: No
      contests, sweepstakes, giveaways, or similar prize-based initiatives may be
      conducted prior to their being approved by the [insert title] of CSR and the
      Vice President of Marketing and the Senior Vice President of Business Affairs
      of
      XM. 

    

    Payola/Plugola:
      FCC
      payola/plugola regulations prohibit receipt of money or other consideration
      by
      radio stations or employees thereof in exchange for playing specific programming
      or making favorable comments about products or services, unless the stations
      disclose on air the fact that such consideration was paid. Relevant
      CSR employees will be required to execute affidavits periodically confirming
      that
      no
      violations of this policy have occurred. Violators of this policy will be
      subject to disciplinary action, including up to immediate termination of
      employment.

    

    Particular
      care must be taken where XM or
      CSR
has
      an
      agreement or understanding with a record company, concert promoter, or program
      supplier that involves promotional announcements and/or airplay of records.
      With
      record company promotions and marketing programs, it is not always apparent
      whether consideration received by the station is in return for putting program
      matter on the air or is in return for something else. For that reason, any
      agreements or arrangements between stations and record companies, concert
      promoters or their representatives that in any way involve station airplay
      or
      concert performances must be submitted to the [insert title] of CSR and to
      the
      Vice President of Business Affairs
      of
      XM
for
      review
      and approval before
      they
      are
      entered into.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Sponsor
      Identification: A
      sponsorship identification announcement must be made with any commercial spot,
      political spot, or other program matter for which CSR is paid valuable
      consideration. The announcement must: (a) state that the matter is sponsored,
      paid for, or furnished; and (b) fully and fairly disclose the true identity
      of
      the person(s) or entity(ies) by whom or on whose behalf the payment is made.
      In
      the case of commercial advertising spots, this requirement is deemed to be
      satisfied if the sponsor's corporate name, trade name, or product name is stated
      in the spot in a context where it is clear that the mention of the name
      constitutes a sponsorship identification (for example, "Drink ice-cold
      Coca-Cola"), and in such cases no additional sponsorship identification
      announcement is needed. But if the station is paid to broadcast a spot that
      promotes a commercial product generically, such as a spot touting the health
      benefits of drinking milk, then the sponsoring entity (e.g.,
      the
      Dairy Farmers) must be specifically identified. Also,
      a
      paid spot that is in the nature of a public service announcement (PSA)
      must
      identify the sponsoring entity. The same is true for "teaser" announcements
      where the sponsor's identity is not otherwise apparent, such as an announcement
      that says "it's coming soon" without saying what "it" is.

    

    Performance
      Complement: All
      programming must adhere to the broadcast restrictions unless the appropriate
      waiver is obtained in the U.S. Digital
      Millennium Copyright Act as follows:

    

    
      	·  	
              On
                a particular channel, within any three hour period, the programming
                can
                contain no more than three selections from any one album or CD, and
                no
                more than two such selections can be played consecutively.
                

            

    

    
      	·  	
              On
                a particular channel, within any three hour period, the programming
                can
                contain no more than four different selections by the same featured
                artist
                or from any set or compilation, and no more than three such selections
                can
                be played consecutively.

            

    

    

    Describing
      the Service:
      The
      Services of CSR and XM should be described in ways that are consistent with
      the
      marketing messages of CSR and XM and in ways that do not misrepresent the
      capabilities of those Services to consumers. Use the printed marketing and
      advertising materials of CSR and XM for characterizations of the Services.
      

    

    Chat
      Room Participation:
      CSR
      employees are prohibited from participating in any chat room, message board
      or
      other on-line communication forum relating to CSR
      or
XM,
      even if
      such participation
      is
      conducted under a fictitious name.
      Online
      forum communications are public statements. Only
      authorized individuals are
      permitted to make public statements about or on behalf of CSR
      or
XM.
      In
      addition, unauthorized online forum communications may inadvertently expose
      CSR
      or
XM
      to
      legal liability based on, among other things, infractions of securities
      laws, company contract violations, or torts based on misinformation, regardless
      of whether or not intentional. Any CSR employee found violating this policy
      will
      be subject to disciplinary action up to and including immediate
      dismissal.

    

    CSR
      employees
      may post
      promotional material about CSR
      channels
      on
      websites, such as artist fan sites and other relevant sites. These postings
      must
      follow the same guidelines as those postings made to CSR
      or
      XM
      website
      channel pages.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Non-Program
      Related Communication with Subscribers:
      Programming staff communicates with subscribers over the air, on-line, and
      on
      the phone. Like chat room participation, these communications are public
      statements and must follow these guidelines: 

    

    No
      corporate information (e.g., relating
      to
      financing activities) other than what has been disclosed in securities
      filings.
      If there is an event that results in numerous listener inquiries, senior
      management will advise as to what, if any, answer is authorized. These answers
      will be consistent with LCC statements.

    No
      technical information regarding CSR’s
      or
      XM’s
      broadcast operations, satellites, radio,
      or
      other technology.

    
      	·  	
              No
                information about our business partners, business projects (whether
                consummated or in negotiations).

            

    

    
      	·  	
              Other
                company confidential information à
                when in doubt, do not discuss.

            

    

    

    

    Respectful
      of Faiths:
      The
      subject of religion and references to particular faiths and tenets shall be
      treated with respect at all times.

    

    Donation
      Solicitations:
      Requests
      for donations in the form of a specific amount shall not be made if there is
      any
      suggestion that such donation will result in miracles, physical cures or
      life-long prosperity. 

    

    Compliance
      with Laws: The
      channels produced by CSR are broadcast both in Canada and the United States.
      It
      is necessary, therefore, for CSR’s employees to comply with the advertising and
      broadcasting laws of both countries. If you are uncertain of the law, ask your
      [manager] for instructions and guidance before taking any action.

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